Study of Influential Motivational Factors on the Performance of Employees in Construction Company

Abstract

The objective of this research work is to assess and verify the effects of motivational factors (extrinsic, intrinsic, monetary and non-monetary) on employee’s performance in Indian construction company. A sample space of 50 employees of company was considered for the study. A well-structured questionnaire was prepared and delivered to employees with the help of google forms for data collection purpose. Data analysis was done through SPSS software and the results were analyzed in terms of descriptive statistic followed by regression and correlation analysis to test the hypothesis whether motivational factors have influential effect on performance of employees or not. The final finding shown that them exist significant a relationship between employee performance and motivational factors. Healthcare emerged as most important motivating factor for employees.

Introduction

I. INTRODUCTION

At the present time of world of globalization, tough competitiveness and rapid technological advancement organizations needs to stay in market along with consistent growth and success and employee retention challenges.

Every organization has latest technology, infrastructure, machinery, money, human resource then what make it different from others to be more successful that is performance of its human resources and it depends on their motivational level and commitment to work. After the emergence and spread of covid-19 the world scenario was changed many employees lost their job and companies are also faced employee retention challenge. Covid-19 also affected the performance of employees in negative way.

Management role is to manage the available resources effectively in accordance with the organizational goal. This goal is achieved when employees are satisfied and motivated.

Therefore, management have to find out the various motivating factors which enhance the employee performance and increased productivity. Several studies have been done in India as well as in foreign countries on motivational factors and their effects on job performance in industry like banking, construction, government institutes, academic staff etc. but they all conducted before pre covid period.

A. Before Start the Research Work, the Following Questions Were Raised

1.  Why employees should be motivated?

2. . Do motivational factors affect job performance of employees?

3. . Which incentive factor motivates them most?

B. Objective and Research work

1. To establish a relationship between motivational factors and performance of employees.
2. To assess the relationship between monetary factors and employee motivation.
3. To assess the relationship between non-monetary factors and employee’s motivation.
4. If motivational factors are present or if introduced then how these factors affect the employee performance.
5. To determine the incentive factor which motivates the employee most.

C. Hypothesis considered in research work

The following hypothesis were considered before start the research work-

1. There is no significant relationship between motivational factors and job performance of employees.
2. There is no significant relationship between monetary factors and job performance of employees.
3. There is no significant relationship between nonmonetary factors and job performance of employees.

II. LITERATURE REVIEW

Surya Prakash Tripathi (2014) [10] concluded that performance of employee improves when there is an increase in motivational factors and if motivational factors are absent, they tend to express their displeasure by non-commitment to their work and poor performance. Ester Manik and Iwan Sidartha (2017) [7] observed that the motivational, ability, role perception and situational factors have significant effect on employee performance with the motivation variable as the biggest contributor to employee performance. Allen and Meyer (1991) [16] identified a link between organizational commitment and employee turnover, and concluded that employees who are strongly committed to their work are less likely to leave it.

Lathika Krishan Wijesundera (2018) [5] identified in her research that employee motivation and employee performance are positively correlated. And also found that salary as the highest financial motivating indicator and good working condition as the most important non-financial indicator.

III. MOTIVATION

According to Robbins and Judge [11] Motivation is the process that account for one’s intensity, direction, and persistence of effort towards attaining a goal it may be individual or organizational goal.

Psychologist have given many motivational theories which are Maslow hierarchy of needs, Herzberg two factor theory, McClelland’s theory, Expectancy Theory etc.

A. Maslow Motivation Theory

Maslow theory [18] has classified need as lower order needs (satisfied externally, such as psychological and safety needs) and higher order needs (satisfied internally, such as social, esteem, and self-actualization needs). In this theory once lower need is satisfied, the next need becomes dominant.

B. Herzberg Two-Factor Theory

This two-factor theory also called motivation-hygiene theory [17]. It states that opposite of “satisfaction” is “no satisfaction” and the opposite of “dissatisfaction” is “no dissatisfaction”. If hygiene factors were adequately present in organization they act as preventer of dissatisfaction but not act as motivators for employees.

This theory relates extrinsic factors to dissatisfaction and associates intrinsic factors with job satisfaction.

Hygiene factors: Working condition, relationship with other, policies and rules, quality and supervision.

Motivational factors: Achievement, responsibility, recognition, advancement and personal growth.

C. McClelland’s Theory of Needs

This theory states that achievement, power, and affiliation are three important needs that help explain motivation [11].

Need for achievement: The drive to excel, to achieve in relationship to set standards, and to strive to succeed.

Need for power: The need to cause others to act in a manner by which they would not have acted in any case.

Need for affiliation: The longing for amicable and close relational connections.

D. Expectancy Theory

It states that the energy of a bent to behave in a positive way relies upon at the power of an expectation that the act will be followed by using a given final results and on the attractiveness of the outcome to the individual [11]. The theory focuses on three relationships

1. Effort-performance relationship
2. Performance-reward relationship
3. Rewards-personal goals relationship

IV. IMPORTANCE OF MOTIVATION

Motivation act as a driver for employees to do their job effectively and inspire them to give their best and it increase their productivity. Therefore, employee motivation has direct impact on their productivity. And a motivated employee generates higher value and considerable level of achievement. Motivation can also be defined as channelizing once energy and efforts towards a task fulfilment with active, dedicated and less time-consuming manner and plays a key role in success of organization. So, the output is high which result of once enhanced performance is and this higher-level performance is related to high productivity which helps organization to achieve its goal. Motivating factors vary from person to person or within the same person from time to time. They may be monetary or non-monetary.

V. METHODOLOGY

The present study is an effort to find out the effect of motivation factors i.e., extrinsic and intrinsic on performance of employee.

This study is based on primary data which has been collected by using self-designed questionnaire in the form of google form from the different 50 respondents. The designed questionnaire consists of three section A, B & C. The section A consist of 7 questions related to personal demographic information, section B consist of 7 questions related to extrinsic motivational factors, section C consist 5 questions related to intrinsic motivational factors. The responses are collected using 5-point Likert scale range from 1 as “highly important” to 5 as “highly not important”. The questionnaire was sent amongst the employees of the company. From the staff of 250 employee a sample space of 50 employee were selected for study. Pearson correlation and linear regression statistical techniques were used to test the hypotheses and statistical package of SPSS version 21.0 was used for data analysis.

VI. DEMOGRAPHIC FACTORS OF THE EMPLOYEES

This section presented the demographic profile of respondents. Socio-demographic and economic characteristic of respondents are shown in table 1. It is clearly evident from the table that majority of respondents were male 98% (49) and female 2% (1) and most of respondents fall in age group below 30 years followed by 30-40 years. Further analysis shows that most of them were graduates 84% (42) and have work experience below 5 years, 68% (34) followed by 5-10 years, 26% (13). Similarly, on the basis of monthly income most of them reflected in 10-30 monthly followed by 30-50. Furthermore, the table reveals that majority of respondents were permanent and belongs to mechanical department followed by civil department.

Table 1: Demographic Data of Employee

VII. DESCRIPTIVE STATISTICS ON RESEARCH QUESTIONS

The descriptive statistic for intrinsic and extrinsic motivational factors are shown in table 2&3. Thus, this section presented the mean scores, standard deviation, skewness and kurtosis of the items of the questionnaire. The maximum mean score was 4 while the minimum was 1 based on 5-point Likert scale that was used to draw the questionnaire.

Table 2: Intrinsic Motivational Factors

For intrinsic motivational factor the variable with highest mean score was “Self determination to work” with mean score of 4.80 and standard deviation of 0.404 thus this factor emerged as highest motivating factor for employees. The next high mean score was for “Recognition for doing good job” with mean score of 4.74, standard deviation of 0.443. The variable with least mean score was “Participation in decision making activities”. This factor has mean score of 4.60 and standard deviation of 0.571.

Table 3: Extrinsic Motivational Factors

For extrinsic factors the variable with highest mean score was “trustful and cooperative environment” and “periodic increment in salary” both has a mean score of 4.76 with standard deviation 0.555 and 0.476. The next high mean score was for variable “security and continuity of job” with mean score 4.70 and standard deviation 0.544.

The variable that has least mean score was “Regular inspection and guidance from boss”. This variable has mean score of 4.42 and standard deviation of 0.609.

VIII. RELIABILITY TEST

Cronbach’s alpha method is used to determine the reliability of the scales for data. This method measures the average of measurable items and its correlation, and result above 50% considered to be reliable. Analysis concluded from table 4 shows that extrinsic and intrinsic motivational factors was reliable by 79.9% and 83.2% and performance by 79.7%.

Table 4: Reliability coefficient of the research variables

IX. INCENTIVES EFFECT ON PERFORMANCE

Organizations provide financial and non-financial incentives to motivate the employees, this incentive has direct impact on motivation and performance of the employees. The incentives considered in the present study was salary, healthcare, bonus, accommodation and food which are represented by horizontal axis and vertical axis represent the number of respondents as shown in figure 1.

Most of the respondents choose healthcare as the most motivating factor with 36% followed by salary with 28%, accommodation and food by 20% and bonus by 16% the result revealed that healthcare has significant impact on performance then other incentives.

X. SUMMARY ON TEST OF HYPOTHESIS

This section presents the various tests which are done in SPSS to test the hypothesis and establish relationship between dependent variable (job performance) and independent variables (motivational factors, monetary factors and non-monetary factors).

Correlation coefficient measures linear correlation between two sets of data, the value tending towards 1 indicate perfect relationship while 0 indicate no relationship. The p value help to determine whether the relationship that observed in sample also exist in larger population. The smaller the p-value less than 0.05 reject the null hypothesis and accept the alternate hypothesis.

The proportion of variance in the dependent variable can be predicted from independent variable with the help of F-value (ANOVA) and R2 value determined from the test. The estimation results obtained from this test are shown in table 5.

Table 5:  Correlation between dependent and independent variables

XI. REGRESSION ANALYSIS AND HYPOTHESIS TESTING

Regression analysis results are presented below

1. Hypothesis 1: This section presents the test of the first hypothesis. The tests are conducted with correlation statistic which indicate whether there is relationship between motivational factors and job performance of employees in L&T, India as case study. Table 5 shows the Pearson correlation coefficient which is 0.809, while the p value is (0.000) which is less than 0.05 this   shows that there is significant relationship between motivational factors and job performance of employees hence the null hypothesis (Ho) that there is no significant relationship between motivational factors and job performance of employees is rejected. The slope value of 0.809 reveals that for a unit change in motivating factors, the probability of improved performance increased by 80.9% and R2 value 64.7% of the variance in performance is explained by motivational factors.
2. Hypothesis 2: The second hypothesis states that there is no significant relationship between monetary factors and job performance of employees. The hypothesis was checked by ANOVA test. Table 5 shows F value 44.532, P value 0.000, Pearson correlation 0.862 and R2 0.727 hence null hypothesis (Ho) is rejected and alternate hypothesis (H2) is accepted. This implies that there is significant relationship between monetary factors and job performance of employees.
3. Hypothesis 3: The third hypothesis states that there is no significant relationship between non-monetary factors and job performance of employees. The hypothesis was checked by ANOVA test. Table 5 shows F value 11.78, P value 0.000, Pearson correlation 0.757 and R2 0.524 hence null hypothesis (Ho) is rejected and alternate hypothesis (H3) is accepted. This implies that there is positive relationship between non-monetary factors and job performance of employees.

Conclusion

There is highly significant and positive correlation between independent variable that are motivational factors, monetary factors, nonmonetary factors with the dependent variable job performance of employees. It is clear from the results that if hygiene factors are absent then employee feel dissatisfies which results in noncommitment to work and lesser performance, and in the absence of motivating factors performance remain stable and the introduction of motivating factors will enhance performance of employees. The incentive which motivates employs most is healthcare and it emerged as most important motivating factor than salary, bonus, food and accommodation. The result of this research shifted from previous researches done in this field which shows salary as the highest motivating factor. As present research is done post covid spread it shows that employees give greater importance to their health as compared to other incentives. So, the organization should consider the above motivational factors and prepare a plan to enhance employees’ performance which is beneficial for both organization as well as employees of organization.

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Copyright

Copyright © 2022 Ram Anjana, Dr. Hemant Parmar. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.