Paste your tThe aim of this section is to present the theories and empirical findings relevant to the research. This chapter begins with a review of employee motivation and customer satisfaction followed by the relationship between those two variables which will help to develop the conceptual frame work of the study.
Guba (2010) recommendes that studying literature permits the researcher to build a platform of current knowledge and ideas. Aveyard (2010) recognized that this method does not only give the researcher a chance to question the current state of literature on the subject, but also the researcher is able to identify the gaps in the literature. The researcher is also able to demonstrate the scientific and social significance of the research problem and why the answer is worth exploring. Reviewing literature prior to the study is more time and cost saving and it helps to serve the purpose better . It is an excepted format of oral and written debate. An outstanding systematic review is known to expose the biases of various other studies under review (rhoades 2011, 353).
2.2 Theoretical under-pinning
The established theories by various other authors and management gurus which is related to the identified problem is critically examined in this section with the purpose of evaluating the relevance of theories and their interrelationships and to develop a new hypothesis subsequently.
2.2.1 Job Motivation
The motivation is the important factor and which identified many decades ago. In ths organization managers have to understand the motivation factors and should direct them towards attaining organizational goals and objectives (Mullins,2011). Managers are still difficult to understand the factors for employee motivation due to complexity of human behaviour.
Iqbal et al. (2012), stated that employee’s motivation and their capability jointly contribute into employee’s performance and in their hard responsibilities given by the manger are to purpose get maximum productivity. Motivation is the one of the greatest significant term of psychology and most of mangers who wants full output and productivity. They challenge this is with a good method and motivate their employee in batter way. And also increase the cooperation among employee and mangers, it also encourage their responsibilities. And also encourage participation their sub ordinates, to take their responsibilities in batter way and also help to overseas other employee and monitor their performance. And motivate get their maximum interaction toward work and knowing employee’s working capacity and assign work according to their capability to get maximum productivity (Ali, Abrar and Haider, 2012). There is other method used to monitor employee performance is Performance Appraisal.by performance appraisal can monitor quality of performance of an employee. Monitor performance by using these wider performance management system that links: 1. Organization objective; 2. Day by day performance; 3. Professional development; 4. Rewards and incentives. Employees show significant role in the customer awareness about the company. Company expend huge amount of money to improvement customer loyalty but they forget the Employees motivation. Customers interacts with the employees and also carry out company image in their mind through the behavior and attitude. So company should be moving their courtesy toward the employee motivation. Now the era of globalization companies face competition in the market, if company could not effectively motivate their employee. Company didn’t exist in competitive environment of business (Ahmad, 2012).
Mitchell(1982) explains motivation as the determination of employees to select one action over another. Further he defines motivation as ‘the grade to which a person needs to involve in a certain specific behaviour’ (Mitchell,1982, p80). Today business environment is very dynamic and to survive in this constantly changing dynamic environment organizations require motivated employees. Employees who are motivated are more productive than others. Organizations prosper through them. Motivation doesn’t merely increase performance it also reduces error rates, lower employee absenteeism and turnover (Jurkiewicz, Massey, Brown,1998). Therefore motivated employees are the utmost wealth of any organization.
Human behaviour is a complex phenomenon. Individuals will behave differently based on their needs. These needs will vary from one individual to another. The various needs and expectations that the employees will have at work can be categorized as intrinsic and extrinsic motivators (Mullins, 2011). The employee motivation is determined by the fulfillment of above needs. Armstrong (2009) explains extrinsic motivators as external factors which influence employee behaviour. These are increased pay, rewards incentives, praise, or promotion and punishments, such as disciplinary action, with holding pay, or criticism’ (Armstrong, 2009, p318). Mullins (2011) explains extrinsic motivators as tangible advantages which are certain by the organization such as ‘salary and fringe benefits, promotion, security, contract of service, work environment and situations of work’ (Mullins (2011,p472). These features have the capability to bring instant action but it will not sustain (Armstrong, 2009).
Armstrong (2009, p.318) states ‘Intrinsic motivation can rise from the self-generated features that influence people behaviour. It is not formed by external incentives.’ This factor is self-developed and it can be shaped when person’s feeling their work is fascinating and challenging and when they feel their work is significant and considered that they can grow their skills and knowledge. The individuals are motivated as they enjoy the task itself (Mullins, 2011). As intrinsic motivators are innate, it will have a long term consequence (Armstrong, 2009).
Empirical study done by Johnson (1997) on motivational factors for restaurant employees, states the intrinsic factor which motivates the employee the most is the relationship between managers & employees. Gratitude for job well done, interesting work and feeling of been involved play a moderate role in motivating them. The utmost extrinsic motivator is the good working condition. This research revealed that tactful discipline and monetary incentives has a very low influence over motivating the employees.
Samuel and Chipunza (2009) have done a study to identify intrinsic and extrinsic motivation variables which can influence the public and private organization employees in South Africa. A survey was done for 145 employees in two private and public organizations. The recognized variables are training and development, Recognition/Reward for good performance and competitive salary and job security.
Kirstien (2010) in his study done to find out factors to motivate future professionals, states employees are satisfied at work due to intrinsic motivators such interesting job role, sense of achievement, recognition and growth opportunities. They will get dissatisfied at work due to company policies, interpersonal relationship, supervision, working conditions and salary.
Even though most of the researchers have suggested that financial inducements are not the best method to motivate employees, most organizations practice it. Therefore many organizations adopt performance based pay (Frey & Osterloch, 2002). Many organizations that practiced this mantra were greatly in trouble as they had to cut down employee salaries and bonuses to reduce cost during financial crisis. This gave rise to the organizations to look for more cost effective ways of motivating their employees.
Factors that determine Job Motivation
2.2.2 Customer Satisfaction
2.3 Empirical Research
2.4 Models
2.5 Critical Analysis of Literature
2.6 Relating Literature to the aim of the Study
2.7 Conclusion
2.2.1 Motivational Theories
The motivational theories are based on fulfilling the needs and expectations of employees at work. The managers in the organization should have a good understanding of these theories in order to see how best they could apply them to improve employee motivation to enhance the productivity (Ritchie,1999).
Maslow’s Hierarchy of Needs
According to Maslow’s theory, human needs arranged in hierarchy of importance and once an employee fulfills a lower level need, providing the same factor will not motivate him any longer. Therefore, managers will have to concentrate on satisfying higher levels of needs. When the needs are fulfilled, employees will experience satisfaction, which will ultimately lead to job satisfaction. Champagne and McAfee identified employee needs based on Maslow’s hierarchy (Johnson, 1997). Those identified needs can be categorized to intrinsic and extrinsic motivators.
Alderfer’s ERG Theory
Maslow’s Hierarchy model was improved and modified by Alderfer’s in 1973. This has reduced the Maslow’s five levels of needs into three levels. This model is identified as ERG model.
‘ Existence Needs ‘ physiological and safety needs
‘ Relatedness Needs – relationship to the social environment; love or belonging and affiliation
‘ Growth Needs ‘ development of potential; self-esteem and self- actualization
Based on the Maslow’s theory, Alderfer suggested individuals need progress from existence, relatedness to growth needs. But, Alderfer suggested the needs should not be satisfied in an order. Also needs can arise simultaneously. The ERG theory also states if a higher level need remains unsatisfied individuals may settle for a lower level need which can be satisfied easily. This is known as ‘Frustration-Regression’ principal. If the individuals are unable to fulfill the desired need, attention should be drawn to satisfy lower level needs.
Herzberg’s two factor theory
Herzberg’s theory is based on two categories, motivation and job satisfaction. He found out factors causing job satisfaction is different to the factors causing job dissatisfaction. The factors causing job satisfaction is recognized as ‘development’ or ‘motivators’ factors and the factors causing job dissatisfaction is known as ‘hygiene’ or ‘maintenance’ factors. The ‘motivators’ are success, challenges and career advancement opportunities. The ‘hygiene factors’ are company policies and administration, poor co-worker relationship, lack of job security and less salary.
Herzberg emphasized managers should give equal attention to both motivators and hygiene factors at work. These are interrelated. Hygiene supports to the good working environment. Motivators will help to enhance the quality performance of the individuals (Mullins, 2011).
Adam’s Equity Theory of motivation
Adams (1965) based his theory on how individuals build perception about how they are treated comparatively to others. It is all about comparative process of feelings and perception of individuals at work. In order to deal with equitably, individuals should be treated equally in comparison to others. Equity theory states people will be motivated if they are treated equal to other and they will feel demotivated if they are treated differently (Armstrong, 2009).
According to the Adam’s theory, inputs and outputs will vary from one singular to another. Individuals will see fairness in the relationship between inputs and outputs. They will also make a social comparison with other people. If individuals feel they are treated differently to another, they will try to minimize it by changing their behaviour to reduce or increase performance. The inequity may finally lead to ’employee simply determining to withdraw from a company’ (Kirestien, 2010, p16).
McClelland’s Achievement Inspiration Philosophy
He recognized the idea of motivation on human need for achievement. This essential to reach has been reduced as n-ach. He says this essential is satisfied by people to evade failure and convincing desire for success such person must have succeeding qualities. He sets sensibly tough but possible goal:
‘ He takes ‘planned perils’;
‘ He likes reply on his performance;
‘ He likes exact and swift response on how he is doing;
‘ He wants talented co-workers in spite of personal feelings.
He declares that this can be taught to undersized persons. According to him there are three requirements of human that are very significant and necessary. (a) need for attainment; an cultured need to outrival and show in life, (b) need for influence, an erudite need to lead and change the conducts and dogmas of others, (c) essential for connection, a hypothetical need for social communication with others.
2.3 Customer Satisfaction
Customer satisfaction is definite by an author as ‘the consumer’s response to the assessment of the professed inconsistency among prior prospects and the definite performance of the product or service as professed after its consumption’ (Tse& Wilton, 1988, p. 204) hence seeing satisfaction as a total post-purchase appraisal by the consumer’ (Fornell, 1992, p. 11). Some authors specified that there is no exact definition of customer satisfaction, and after their studies of numerous definitions they distinct customer satisfaction as ‘customer satisfaction is recognized by a reply (cognitive or affective) that relates to a specific focus (i.e. a purchase experience and/or the associated product) and happens at a sure time (i.e. post-purchase, post-consumption)’ (Giese & Cote, 2000, p. 15). This definition is protected by some other authors, who think that consumer’s level of satisfaction is strong-minded by his or her growing knowledge at the point of contact with the supplier (Sureshchander et al., 2002, p. 364).
Satisfaction differs from one person to another because it is a value. ‘One man’s meal is another man’s poison,’ an old adage stated labeling utility; thus prominence the element that it is occasionally very hard to content everybody or to determine satisfaction between groups of individuals. Client happiness, which is a symbol of customer satisfaction, is and has continuously been the best vital thing for any organization.
2.4 Training and Development
Human resource management has several functions and one of the functions is Training and Development. Training is mentioned to as a sequence of practice for increasing the employees’ effective, cognitive and psychomotor skills support the organizations to have a vital method of growing the employee towards improving his productivity (Ezeani & Oladele, 2013). Manpower training and development is one of the best significant organizational dynamics. It creates the pivot in which organizational existence is run. The training process is one of the best universal methods for improving the productivity of individuals and cooperating organizational goals to personnel (Ekaterini, 2009). Manpower is the foundation of all resources and it is the crucial means of changing other resources to man kind’s use and benefits. Manpower is the pivot of every organization. Even in the developed and industrial nations of the world where the use of machines and technology is at an advanced stage, manpower is still very essential (Comma, 2008). Training therefore embraces the importance to solve the prospective progress and development prospects to accomplish a competitive edge. Organizations train and develop their employees in order to improve organizational performance (Devi & Shaik, 2012). The significance of training and development function as a dominant role and as a responsibility of the management has long been accepted by business professionals and by management gurus (Irene, 2013).
Training and Development is vital in enabling not only the level of efficiency of employees but also the development of employees in any organization socially, physically, intellectually and mentally (Olusanya et al, 2012). Further, to gain profits every organization must have capable personnel on board. Therefore, training should be observed as an essential part of the total quality management process. Beardwell and Holden (1993) state that over the years that the significance of training function has come in to the spotlight as organizations are trying win the competitive edge through their human capital. Training plays a leading role in achieving organizational goals by integrating the interests of both organization and workforce (Stone, 2002). Further training is considered as one of the most significant features in the business world since the provision of adequate training leads to development of employees and success of the organization.
Training and Development is very important for organizations in achieving the optimal performance of employees (Armstrong, 2000). A training plan should be given to each and every employee (Ginsberg, 1997rganizatio). Organizations which have comprehensive TNAs (Training Need Analysis) designed according to the needs of the employees as well as the organization will always get a good return on investment (Partlow, 1996; Tihanyi et al., 2000; Boudreau et al., 2001).
On-the-job training enables employees to enhance the knowledge of their job in a better way than class room trainings or experiential learning programs (Deming, 1982). People learn from their everyday experience much better than learned knowledge. On-the-job training reduce the cost and saves time (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Therfore,it is healthier for organizations to provide on-the-job training for employees.
Trained employees perform well as compared to untrained employees (Partlow, 1996). It is very important for any organization to provide necessary trainings for employees to achieve goals of the organization (Kaynak, 2003). Training and development improve the overall performance of the organization (Shepard, Jon et al., 2003). Training is a cost to the organization but it’s an investment in the long run (Flynn et al., 1995; Kaynak, 2003; Heras, 2006). Each organization should develop its employees to meet current and future operational requirements so that they could contest with their competitors (Carlos A. Primo Braga, 1995).
Dessler (2006) recognizes ‘training’ as a provision of new and diverse skills for employees to perform their jobs. Armstrong (2009) states training is an exercise which inculcate knowledge, skills, and capabilities in employees with the goal of developing employee competencies and organizational performance. He further states that training motivates employees thereby enhancing organizational performance.
Laing (2009) describes training as a tool to improve knowledge, skills, competencies and behavior of employees that consequently improve their performance.
Massod (2010) and Khanfar (2011) described that training is an effective way of enabling individuals to make use of their competencies up to the maximum potential. Some employees desire training programs to improve their skills to work more competently.
Tharenou, Alan and Celia (2007) stated the aim of training is to improve the organization’s effectiveness. Aguinis and Kraiger (2009) described that training improves the organizational effectiveness, profitability, productivity, revenue whilst improving the quality of products and services.
2.6 Working Environment
Working environment can be separated into behavioral and physical components. The physical environment contains of essentials that link employee’s capability to physically attach with the office environment. The behavioral environment contains of mechanisms that describes how well the employees attach with each other. Haynes (2008) describes that physical environment consists of two key areas such as office layout and office comfort and the behavioral environment consists of two key mechanisms such as interaction and distraction.
The features of the work environment influence on employees’ performance either positively or negatively (Chandrasekar, 2001). Over the years, features of the work environment had transformed in to information technology, social environment, and the flexible methods of work processes (Hasun & Makhbul, 2005). Boles et al. (2004) states if employees have emotionally and physically strong work environment, then their performance could be improved. They further stated that an appropriate workplace environment will reduce absenteeism and turnover thereby improving employees’ performance. Some researchers had observed a positive impact on organizational performance after implementing workplace environment strategies such as the job design, machine design, environment and facilities design (Burri & Halander, 1991).
Chandrasekar (2011) found out that workplace and tools of work plays a significant role on employees’ work itself. In this research some features of workplace environment that had been identified such as job aid, supervisor support or relationship, chance to get encouraged, goal setting, performance feedback, mentoring, workplace incentives, coaching and also the physical work environment.
Leaman (1995) defines that those employees who have their performance exaggerated by the organization environments are those who continually grievances on the uneasiness and dissatisfaction at the workplace. Some variables such as ventilation, lightings and also noise could lead towards unrest of employees (Evans & Cohen, 1987). The practical comfort can be defined as the level that employees can accomplish their task in their present factors of workplace environment (Visher, 2008).
Employees’ work performance is influenced by the tasks they are agreed to do and also by the environment they work. Therefore by having a supportive and healthy work environment in place, employees could apply their maximum strength and attention to their work (Visher, 2007).
2.7 Rewards
According to Baratton (1999) rewards is considered as all means of financial returns and tangible services & benefits which employees obtain as a part of the employment contract. ‘Reward is the benefit that results from execution of a task, rendering a service or clearing a responsibility’ (Colin, 1995). Searle (1990), rewards can be considered into two broad areas, namely extrinsic rewards and intrinsic rewards.
Extrinsic rewards are typically financial or tangible rewards which contain promotion, pay, interpersonal rewards, bonuses and benefits (Zaman, 2011). Stoner and Freeman (1992) distinct intrinsic rewards as the psychological reward that is knowledgeable directly by an employee. Ajila and Abiola (2004) exposed that reward package can effect on employee performance. Base on their findings they concluded that reward system supports to increase employee performance by improving employee knowledge, skills, and abilities in order to attain organizational objectives.
According to the Allen and Kilmann (2001), reward performs play a vigorous role in refining employee performance and to attain organizational goals. Eisenberger, (2011) identifies that : if organization fails to reward employees, it will straight touch to decline employee performance and an effectual reward system can be a good motivator but an incompetent reward system can lead to demotivate the employees in terms of low productivity, absenteeism, internal conflicts, lack of commitment and loyalty, high turnover, lateness and felling grievances. Therefore, organization requirements to grow strategic reward system for employees in order to hold competent employees which outcome to obtain sustainable competitive advantage.
Reward can be generally considered in to two groups namely, intrinsic rewards and extrinsic rewards. Extrinsic rewards are typically financial or tangible rewards. Ajils (1997) defined that intrinsic rewards are characteristic in the job itself and which the individual appreciates as a result of effectively completing the task of reaching his or her goal. He further clarified that extrinsic rewards are those external to the task of the job such as work condition, pay, fringe benefits, security, contract of service, promotion, and the work environment.
Abiola and Ajila’s (2004) findings, intrinsic rewards can be terms as ‘psychological rewards and examples are chance to use one’s ability, a logic of achievement and challenges getting positive recognition, appreciation, and being preserved in a considerate and considerate manner. Also Yapa (2004) categorized pay, interpersonal rewards, promotion, status, and fringe benefits as extrinsic rewards and achievement, responsibility, autonomy, challenge, personal growth, complex work and feedback characteristics of the job as intrinsic rewards. According to the
Armstrong (2008), performance management is a methodical procedure for refining organizational performance by emerging the performance of individuals and teams. He additional clarified it is means of receiving better results by understanding and managing performance inside an decided framework of planned goals, normal and competency requirements. Further Armstrong and Murlis (1994) describe performance management as ‘a procedure or set of procedures for creating shared understanding about what is to be attained, and of handling and developing persons in a method which rises the prospect that it will be achieved in the short and longer term.’
To measure employee performance organization s use presentation assessment in order to confirm of accomplishment of goals. Organizations extent it’s under employee performance employee productivity, job accomplishment, job quality, willingness to exert extra effort, commitment and goal achievement. (Yapa, 2002: Dharmasiri and Wickramasinghe, 2006: Taljaard, 2003) Mehmood (2013) points out rewards show a vital role on growing employee rewards and change the behavior of dissatisfies employees. A well as he clarifies a fair reward system could build job satisfaction and productive behavior in employees. Reward system helps to improve organizational performance as well as it achieves other objectives such as labor cost control, legal compliance, perceived fairness towards employees and enhancement of employee performance to achieve high level of productivity and customer satisfaction. (Maire & Nick, 2002). Carraher et al (2006) believer that there should be an effective reward system to hold the high performers in the organization and reward should be related with their productivity.
Hartle (1995) points out that reward is a significant part of the response loop in performance management. Mehmood (2013) explains reward system is the obligation of any organization to recall and hire the most appropriate employee to improvement competitive edge in a competitive environment. He further clarifies that reward system exciting the employee to work harder and faster because employee needs motivation to put additional effort on their task. Lastly he accomplishes that reward system should match with the organizational culture and the strategy in order to achieve sustainable competitive advantage.
Organizational Culture
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