Effects
of Motivation on the Performance of Employees in the banking Sector
The motivation of a bank’s employee plays a major role in achieving high levels of satisfaction among its customers (Petcharack, 2004). Every employee or worker has his or her own set of motivations and personal incentives that ginger him or her to work hard or not as the case may be. Some are motivated by recognition whilst others are motivated by cash incentives. Whatever the form of employee motivation, the key to promoting that motivation as an employer, is understanding and incentives (McCoy, 2000). Employees need to be motivated to actualize their potential and there are several ways of enabling them and empowering them to do so. These include the role of reward systems in motivating employees according to their needs for extrinsic or external motivation and by providing them opportunities that appeal to their intrinsic or internal motivation needs. Motivation is the key to creating an enabling environment where optimal performance is possible. This leads to the question how then ensure that individual motivation is at its peak within the organization or workplace (Chapman, 2004).
The other factors that motivate employees are the kind of job that they are asked to perform, the added benefits like extended vacations and perquisites like company provided accommodation and funding for kids schooling as well as provision of medical insurance coverage for the employees and their families. In recent years, there has been lot of emphasis on motivating employees by organizing offsite events and fun and recreation events where the employees let their hair down and indulge in the much-needed stress relieving activities. In the nutshell, Motivation does not only encourage productive performance but also show employees how much the company cares. Perhaps the most vital impact of employee motivation is that of increased productivity or performance. This according to literature on the subject is the central aim of adopting employee motivational programmed thus, if you can increase employee motivation, Productivity inevitably will follow suit (Ryan, 2011).
Statement
of the Problem
The need to increase productivity and efficiency in the work place or any organization has led to increasing academic interest in the area of motivation over the years. Scholars have been keenly interested in knowing what factors are responsible for stimulating the will to work. Thus, motivation has become an issue of concern for both scholars and practitioners of personnel management. From productivity and profitability to recruiting and retention, hardworking and happy employees lead to harmony and organizational triumph (Ryan, 2012). The performance of organization and employee motivation has been the focus of intensive research effort in recent times. Employees are motivated in order to achieve their mission and vision which is of paramount concern. Employees in both public and private sector organization are becoming increasingly aware that motivation increases productivity. Lack of proper motivation may result in losses which may eventually lead to low staff turnover, poor attitude towards work, low output level and low profitability (Sarpong, 2016).
Enew et al. (2007), contend that commercial banking started developing significantly from the 19th Century onwards. Banks grew in response to the need for services such as loans, safe deposit and financing of consignments of exported and imported goods. The services rendered by banks can be grouped into two broad headings:
(i)
lending and credit
(ii)
saving and investing.
In simple terms, a loan represents the
granting of a specific sum of money to an individual or organization for them
to spend personally in respect of some specific, previously agreed item.
Credit, on the other hand, refers to a means of financing an item or items of
expenditure whereby the funds are transferred to the product provider directly
by source of credit. Saving and investing are the reciprocal of lending and
credit. Saving and investing concern the sacrificing of present consumption in
order to provide for some future event or requirement. The term “savings” is
used to describe a process associated with the accumulation of a larger fund
through regular contributions, while the term “investment” is used to describe
the process of managing a lump-sum for the purpose earning recurrent income or
for capital growth (Enew et al., 2007). The three-pillar banking structure in
the country has been replaced with a universal banking system where there are
no barriers in the business areas of operation. Indeed Ghana adopted its
current system of universal banking from the developed countries whose banking
industries are far advanced (Bank of Ghana, 2010).
Recommendations Based on the findings of the study
(Sarpong, 2016):
1)
The study entreats management to make job security their top priority and there
must be awareness of how secured workers are on the job to ensure the retention
of hardworking and experienced employees.
2) The researcher entreats the management to
ensure that equity prevails in all facets of their activities especially when
dealing with issues concerning the employees.
3)
Management is also entreated to involve all the employees in all decisions
especially ones concerning their lives.
4) Respect and recognition should be accorded
employees to promote cordial relationship amongst themselves as well as
management to foster cooperation in achieving the organizational strategic
goal.
5)
Employees’ development to enhance their performance as well as promoting
self-fulfillment and self-actualization should be entreated as a matter of
urgency.
6) The study entreats the management to review
its motivational packages in order to incorporate other packages that are also
important to gain competitive advantage.
Conclusion
It is evident from the findings of the study (Sarpong, 2016):
That the best mechanism for an organization to
attain its strategic goals is nothing more than good motivational packages that
really meet the needs of the employees. It is undisputable fact that,
motivation plays a very significant role for any organization which wins
competitive advantage. Therefore, an organization without motivational packages
is bound to bankruptcy. It is due to this reason that this study was undertaken
by the researcher to assess motivation and its effect on performance at Ecobank
Limited-KNUST Branch and Stadium Branch. The findings of the study showed that
when employees are motivated, they enjoy going to work every working day. They
also perform at their best and as well assist the bank to meet its strategic
objectives when motivated. Besides, the study revealed that view that
motivational packages influence employees to report to work early; to stay on
the job; to have inner satisfaction and become loyal to the bank. Again, the
study proved with every reasonable doubt that employees’ involvement in the
formulation of motivational packages is very crucial for the packages to be
effective. Also, findings of the study revealed a number of positive effects of
motivation such as work output, profitability, staff retention, enhancement of
customer base and efficiency to the advantage of the organization. It can
therefore be concluded that the findings of the research have excellently
fulfilled the objectives of the study and validated the research questions put
forward by the researcher. The results of the study are extremely essential
since they show how motivation is the basic need for employees to be able to
reach self-actualization. The fact that motivation is noted as a major factor
to enhance employees’ performance
References
Enew,
C, & Nigel, W 2007. Financial Services Marketing, An International Guide to
Principles and Practices. Elsevier Limited. Financial Institutions. New York,
Vintage Press Inc.
Management
Vol. 1. Retrieved from http://www.Aibuma.Org/Journal/Index.Htm
McCoy,2012.
Putting, Employee Motivation’ in its place. Women’s media: U.S.A.
Petcharack, P 2014. A Comparative Analysis of
factors determining motivational level of employees working in commercial banks
in Kohat. International journal of business and management, 5(12), 1833-3850.
Retrieved from http://www.ccsenet.org/ijbm
Ryan,
RM 2000. Self-determination theory and the facilitation of intrinsic
motivation, social development and well. American psychologist, 55(1), 68-79.
Sarpong, L 2016, Effects of
Motivation on the Performance of Employees of Ecobank Ghana Limited. Knust
Branch and Stadium Branch Journal of Business Theory and Practice ISSN
2372-9759 (Print) ISSN 2329-2644 (Online) 4(1).
Excellent effort Janaka in discussing the employee motivation within the banking industry. A research carried out to investigate the financial and non financial factors impacting the employee performance and motivation in a Dubai based semi-government commercial bank respondents considered promotion, training, recognition, employee engagement and performance appraisal as the most important indicators effecting the employee motivation and employee performance relationship (Wijesundera, 2018). According to Porter & Kramer (2011),an organization which has more interest in employee engagement will have low rate of employee turnover, fewer job related accidents, high customer satisfaction, absenteeism and improvement in organization productivity.
ReplyDeleteHi Mihiran, There are two types of benefits basically –financial and moral benefits. Every incentive plan, and any good organization has such a program in place, should provide for the right balance between these two advantages. The effective incentive scheme as individual employees have individual preferences, can not ignore these two motivation aspects (Armstrong and Murlis, 2007).
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ReplyDeletePeople with more motivation can aim for greater achievement and be more successful than people with less motivation in their efforts (Cadwallader, Jarvis, Bitner & Ostrom, 2009). Many forms of studies have shown that employee motivation is closely related to employee engagement and less dedicated workers are less attached to their businesses emotionally. Hence, keeping workers motivated is very necessary.
ReplyDeleteAgreed. Employee motivation and efficiency are important tools of successful organization. Employees are not satisfied with their work and are not willing to accomplish their work their goal, the organization cannot be successful (Jakobi,2013).
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Hi Janaka, Shahzadi et al. (2014) confirm the significant positive relationship between Employee motivation and Employee performance. Performance of the employee is considered as what an employee does and what he doesn’t do. organizations can use direct bonuses and rewards based on individual performance if employee performance is noticeable.
ReplyDeleteHi Supun, as you explained according to Dugguh (2014), motivated employees enhance the productivity of their performance and it will lead to enhance the profitability of the organizations. But there is a potential drawback of financial rewards is that they can lead to burn out. Employees may work long days, nights and weekends in an effort to boost their chances of receiving rewards, but this may cause employees to feel overworked. Overwork can lead to problems like low morale and lower productivity per hour spent at work. Therefore organizations should careful on above matter.
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ReplyDeleteThere are numerous motivation theories that have influenced the way organisations manage employees to achieve a motivated work force. These theories attempt to explain why people behave the way they do and advice on factors and strategies which when employed can get the best out of employees in terms of their commitment to work. Notwithstanding, because of the complex nature of the issues, worth considering when motivating people, it is always not an easy task when it comes to organisations motivating workers for effective performance. Vroom and Deci (1970) put it: "The question of what motivates workers to perform effectively is not an easy one to answer". Indeed, a motive is something, which impels a person to act, a reason for behaviour. Motivation refers to the forces within an individual that account for the level, direction and persistence of effort expended at work Schermerhorn et al (1985).
ReplyDeleteAgreed. Employee motivation also will benefit the organization in the manner of retention. Recruitment and training is an expensive process in the enterprise A company that retains skilled employees and minimizes turnover will reduce this expense and increase its profits. The best way is to create a corporate culture and cultivate proactive employees. Businesses have a good reputation in good or bad places. If you manage to gain the reputation of the former, you will have a constant stream of people who want to work for the organization, and those who are working now will hesitate to leave. These factors will contribute to the development of a stable and productive corporate culture(McKee, 2018).
DeleteAgree with you Janaka, If employees are not satisfied with their work and are not willing to accomplish their work the organization cannot achieve the goal. Companies must build strong and positive relationships with employees and turn to solution fulfillment (Dobre,2013).The most successful motivation is self motivation therefore, Employee can apply this for personal life or organization to achieve objects and targets (Diamond and Diamond, 2010)
ReplyDeleteAgreed. Organizational success depends on employees Motivation further, motivation help employees towards achieving goals, gaining positive perspective, improve their development and helping others(Osabiya,2015).
DeleteSubramanyam (2016) stated that considering the definitions of motivation, three common denominators has identified which help bank managers in understanding the human behavior at work which are;
ReplyDeleteArousal – Needs to originate arousal or stimulation.
Direction of Behavior - What is the behavior that an individual chooses to
perform in an organization?
Level of Persistence - How difficult is it for a person to try to
successfully perform a chosen behavior when faced with obstacles?
Motivation drives people to their job satisfaction pleasure. In addition, it combines the psychological and environmental impact of people's work with their happiness (Saleem, Mahmood and Mahmood, 2010).
DeleteWhile agreeing with your statement it can be added that motivation of an employee can be taken in to account as internal and external energy. Latham and Pinder’s (2005).Motivation make employee to complete task within organizational mission. Motivation also determines the three characteristics of such effort: direction, intensity, and persistence (Latham and Pinder 2005). People with more motivation will aspire to greater achievement and be more successful in their efforts than people with less motivation (Cadwallader, Jarvis, Bitner & Ostrom, 2009). Adding to more on motivation that motivated employees can be described as a way to reflect employee patience, their direction and strength, and motivated employees provide the greatest commitment to work(Pinder,2008).
ReplyDeleteAn employees work doesn't solely depends on his qualifications but also the need to do the job. therefore, the need has to be triggered through motivation where all the other factors will improve accordingly like productivity and efficiency (Adi, 2000).
DeleteWhile I agree on your statements and arguments on motivation, I see motivation as the driving force behind all the actions of an individual. The influence of an individual's needs and desires both have a strong impact on the direction of their behavior. Motivation is based on your emotions and achievement-related goals. There are different forms of motivation including extrinsic, intrinsic, physiological, and achievement motivation. There are also more negative forms of motivation. Achievement motivation can be defined as the need for success or the attainment of excellence. Individuals will satisfy their needs through different means, and are driven to succeed for varying reasons both internal and external (Harackiewicz, Barron, Carter, Lehto, & Elliot, 1997)
ReplyDeleteYes, To reach the organizational goals, keep employees motivated should not be enough, helping employees to achieve their individual personal career goals is a significant part of their motivation (Naile and Selesho, 2014). According to Bobre (2013) only few organizations consider the human capital as being their key strength. employees are not satisfied with their roles and not motivated to achieve their tasks and goals; the organizations cannot achieve success.
DeleteMotivation is the result of conscious and unconscious factors such as intensity of the desire or need, incentive or reward value of the goal and expectations of the individual. These factors play a vital role to promote the individual towards the specific goal (Akhtar,2014).
ReplyDeleteAlso organizations today have realized the importance of motivated and satisfied employees as important contributors towards long term objectives. It has made organizations to cater to the expectations and needs of the employees and could expect the similar response. Motivation also positively influences performance at individual and group level ultimately affecting the organizational performance (Risambessy et al 2012).
DeleteAdding more to you post, motivation is playing a significant role toward enhance the employees productivity and the organization or any institution. Moreover, a successful management in organization is one that looks at the human needs as the basis when developing a company strategic plan. Thus, employee’s knowledge requires human resources to implement great reward systems as a way to motivate them. Therefore, motivation is important for successful companies because it refers the underlie behavior which is characterized by willingness and volition that intrinsic motivation is animated by personal enjoyment, interest, or job satisfaction (Guay et al, 2010).
ReplyDeleteYes, It has been long thought that learning new things and competency development opportunities raises the morale and satisfaction of the employees but it is also realized that the significant effect on the motivation and job satisfaction is created by goal achievement (Lather and Jain, 2005).
DeleteMotivation is considered as a key drive of performance because it is linked to numerous benefits at work (Pinder 2008). Motivated employees are more engaged in their work (Rich 2006), their performance is of higher quality (Cerasoli et al. 2014) and they profit more from occupational training (Massenberg et al. 2015). Additionally, they are more strongly committed to their work, work longer hours, pick more challenging goals to achieve (Becker et al. 2015), and are more willing to share knowledge at the workplace (Lin2007).
ReplyDeleteYes, Organizations today have realized the importance of motivated and satisfied employees as important contributors towards long term objectives. It has made organizations to cater to the expectations and needs of the employees and could expect the similar response. Motivation also positively influences performance at individual and group level ultimately affecting the organizational performance (Risambessy et al 2012).
DeleteThe main purpose of employee motivation is to engage employees in their work and motivate them when they are committed to their organization. Improving employee performance only contributes to the success of the organization. Employee motivation should be deeply respected by people and they should recognize that employees are the most important resource (Iqbal, 2013).
ReplyDeleteMaslow believed that there are at least five sets of goals which can be referred to as basic needs and are physiological, safety, love, esteem, and self-actualization. Maslow (1943) stated that people, including employees at organizations, are motivated by the desire to achieve or maintain the various conditions upon which these basic satisfactions rest and by certain more intellectual desires. Humans are a perpetually wanting group. Ordinarily the satisfaction of these wants is not altogether mutually exclusive, but only tends to be. The average member of society is most often partially satisfied and partially unsatisfied in all of one’s wants (Maslow, 1943).
ReplyDelete