performance appraisal and employee motivation: a case study of the banking sector of pakistan

7/23/2019 PERFORMANCE APPRAISAL AND EMPLOYEE MOTIVATION: A CASE STUDY OF THE BANKING SECTOR OF PAKISTAN

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Chapter 1Chapter 1INTRODUCTIONINTRODUCTION

CHAPTER 1

INTRODUCTION

In todays fast paced world the competition is getting more complex and fierce

day by day. Every industry all around the world, in its quest to reach the top and

gain the highest profit margin is fighting with its competitors for all kinds of

resources which are obviously less than what the needs are. In such a race to get

the maximum quantity and the best quality of resources the major problem is to

get the required human resource. There are price wars for service people fueled by

the competition for good talent. Not only is it difficult to recruit skilled workers,

but also to retain them. In the past, companies expected job loyalty, but today, we

hear stories of employees accepting other job offers only weeks after being hired.

We have to wonder if a person have changed or is it that employers are not able to

satisfy employees. To win the battle for workforce share, companies must rethink

their strategies to effectively recruit, motivate, and retain committed employees.

If we analyze the most important tool which helps in motivating the employees so

that the employee benefits the company and the nation as a whole is the

performance management system because of a number of reasons. Performance

management is the only part of human resource which enlightens the employee

and gives him/her a chance to learn and to improve his/her performance. It is the

basic human nature that we want to get a feedback for whatever we do. Whether

that is positive or negative is regardless as long as we know that whatever we do is

noticed by others. Ignorance is worse than negative feedback.

The topic under consideration in this thesis is Performance Appraisal and

Employee Motivation: A Case Study of the Banking Sector of Pakistan, in

which the importance of a well established performance appraisal system is

studied and how it is affecting the motivation of employees and the contribution to

the betterment of the banking industry in Pakistan.

Research Report On: Performance Appraisal andResearch Report On: Performance Appraisal and Employee MotivationEmployee Motivation(A Case Study of The Banking Sector of Pakistan)(A Case Study of The Banking Sector of Pakistan)

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1.1 ACADEMIC AND PRACTICAL IMPORTANCE OF THE

TOPIC

Whatever that I have learnt in my academics related to the performance appraisal

systems and how the employees can be motivated to perform their job can be

applied to the topic e.g. what are the methods the banks can use to prevent

employees being demotivated and how the performance appraisal forms can be

customized to meet the demands of the employees so as to motivate them.

This topic has also its practical implications because human resource has recently

started to come into limelight and the shift from the administration to the human

resources is taking place. Among that as well I think that performance appraisals

are the most important and the most complex part which is not getting the

importance that it should be getting. Apart from that most of the people are just

working for the sake of doing a job and are not really satisfied and motivated to do

what they are doing. This aspect can also be improved by the proper use of the

performance appraisal systems if an effort is made in that direction. Banking

sector is one of the ever-changing sectors in Pakistan and it is an issue for them as

well.

This study would help them analyze their position among the other banks and it

would help them motivate their employees by effectively using the performance

appraisal system.

1.2 NEED FOR PERFORMANCE MANAGEMENT SYSTEM

Performance management is the process of creating a work environment or setting

in which people are enabled to perform to the best of their abilities. Performance

management is a whole work system that begins when a job is defined as needed.

It ends when an employee leaves your organization.

Managers cite performance appraisals or annual reviews as one of their most

disliked tasks. Performance management eliminates the performance appraisal or

annual review as the focus and concentrates on the entire spectrum of performance

management and development issues. Employee performance development,

training, cross-training, the provision of challenging assignments and regular


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performance feedback are included in an effective performance management

system.

Performance management system should be thought of in a broader manner. Aperformance management system includes the following actions.

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance standards,

outcomes, and measures.

Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

Design effective compensation and recognition systems that reward people for

their contributions.

Provide promotional/career development opportunities for staff.

Assist with exit interviews to understand WHY valued employees leave the

organization.

1.3 BENEFITS OF THE PERFORMANCE

MANAGEMENT SYSTEM

An effective PMS should provide the following benefits:

Increase in employee involvement and motivation

Fair measurement of performance and potential

Provision of a career development framework

Equitable reward and compensation

With the attainment of the above mentioned benefits, PMS can also act as a tool

which can retain and motivate the employees for the organization.


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1.4 STRATEGIC SHIFT

Until recently, performance appraisals had initiated moderate to little interest in

most of the organizations. The issues related to performance appraisals were more

a matter of routine personnel department records and reports than boardroom

strategizing. Typically, statistical information was dutifully recorded, studied, then

filed.

This is no longer the case anymore. Performance appraisals are now into a

position of priority on executive team and boardroom planning schedules. There is

an increasing need for HR to become more proactive in its participation with top

management to develop a comprehensive performance appraisal system which cancater to the needs of the employees at all levels.

Another issue is that of the motivation of employees. Most of the senior

employees in the banking sector probably were demotivated about their jobs from

the very initial stages but no importance was given to this problem by the

authorities. The shift took place only recently when the lack of motivation on the

part of the employees started affecting the profit margins of the bank. This

scenario is more prevalent and commonly seen at the older banks whoseworkforce comprise majority of the older employees.

The linkage between the performance appraisal system and the motivation of

employees must be viewed as a strategic business issue. The only approach that

has the possibility of a successful outcome is a systemic one. It requires full

commitment of management in addition to full alliance with the Human Resource

Department.

Motivation of employees will require a comprehensive process that aligns

appropriate employee wants and needs with the performance appraisal system.

The internal and external situations that cause the employees to be demotivated

are vast and complex. Organizations can do little to control the country's economy

or an employee's preference for mobility. An enterprise can, however, design

internal culture, structures, strategies, programs and above all an effective

performance appraisal system that motivate employees.


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To accomplish this task it is necessary to determine the major issues which cause

the employees demotivation for the banking industry. Motivation issues are the

result of very complex and multifaceted phenomenon. There is not just one

strategy, methodology or program that is the definitive answer to motivate

employees. But the problems can be reduced to some extent by having a

comprehensive performance appraisal system which is aligned with the needs of

the employees.

1.5 SCOPE OF THE STUDY

There are twenty-four private banks in Pakistan while some other are government

banks but three have been taken as a sample size among them for detailed study

about their employees. Some other banks are also studied broadly and their

features have been highlighted. The banks that are chosen for the research are:

Bank Alfalah Limited

Habib Bank Limited

Allied Bank Limited

1.6 OBJECTIVES OF THE STUDY

The objective of the study is to find the impact of performance appraisals on the

motivation of employees in today's organizations in general and in the banking

sector of Pakistan in particular. To find about the problems that they face and how

they can focus their energy in a proactive manner to motivate them.

Motivating good employees in the banks requires more than just thinking. For

banks to remain competitive, it has to be a reality and for that reality to be

implemented the linkage of the performance appraisal with the motivation of the

employees is essential.

A huge industrialist once commented, Take away my factories, my plants; take

away my railroads, my ships, my transportation, take away my money; strip me of

all of these but leave me my key people (who are motivated), and in two or three

years, I will have them all again.


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The aim of the thesis is to find ways and methods to motivate employees in the

banking sector primarily by improving and designing better performance appraisal

systems.

1.7 LIMITATIONS OF THE RESEARCH

The research has some limitations as well which should be highlighted here for

better understanding of the whole content. Firstly, the sample is relatively small,

which limits the significance of the results. Although maximum efforts were

made to get a large number of responses from each bank but the average size were

about 25 participants from each bank.

Secondly, the biggest problem in the research regarding performance appraisals

was the honestly and integrity of the participants in filling out the forms. As the

research is dependent on questionnaire, so individual concerns in filling out

questionnaire honestly is a limitation. Apart from that in the older banks where

majority of the employees are senior employees were not willing to fill out the

questionnaires and some of them who even did fill were not very interested and

did not take the process very seriously.

Finally, this thesis focused on a fairly broad aspect of motivation. Although a

number of aspects have been defined to find out how motivated an employee is

e.g. learning from the job, communication with the peers, subordinates and

superiors, the level of satisfaction with the whole appraisal process, work

environment and job content etc, but still all the aspects of motivation could not

be taken into consideration. For that reason it is reasonable to believe that there

might be additional moderators operating here that would be worthy of future

investigation

1.8 HYPOTHESIS

Some of the hypothesis which were kept in mind while conducting the research

are as follows:

1. Higher objectivity in questions lead to higher job satisfaction

2. Awareness of the appraiser lead to higher motivation


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3. More time spent at a bank leads to higher motivation

4. Frequent promotions lead to higher motivation of employees

5. Perception of unfairness of the appraisal forms lead to dissatisfaction of the

employees

1.9 RESEARCH QUESTIONS

Some of the key research questions that would be highlighted and studied in this

thesis are as under:

How frequently are the appraisals being carried out at the bank?

What are the major issues which lead to the demotivation of the employees?

Why is the level of job satisfaction and the motivation due to the performance

appraisal system more in the new banks as compared to the older banks?

Is there a linkage between the performance appraisal system and the

promotion of employees?

Are any steps being taken to improve the whole process?

Is there an effective orientation program which gives the employees a clear

insight into why and how the appraisal process takes place?

Is performance being overseen?

Are the employees being offered any development program in accordance to

the performance appraisal process?

Are the banks meeting individual needs?


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Figure 1: Theoretical framework flow

Independent Variables Dependent Variables


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CommunicationAwareness of the

appraiser

Work Environment

Objectivity appraisal

forms

Job Content

Frequent promotions

Perception of unfairness

Motivation of employees

Satisfaction of

employees


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1.10 DATA COLLECTION INSTRUMENTS

Questionnaires were the primary data collection instrument; it is appropriate to

discuss here that other quantitative technique have also been used. In addition to

questionnaires, the banks provided various written information, such as corporate

annual statements, co-worker magazines, and brochures and leaflets describing

corporate policies and philosophies.

1.10a Employees Surveys (Questionnaire)

Most of the data that was received about the performance appraisals and the

motivation of employees at the banks was through the questionnaires. It was

helpful in getting large amount of information in a more quantitative manner. On

the average a sample size of 25 to 30 employees were questioned in each bank to

have a reliable database about the issues related to the motivation of employees.

1.10b Interviews

Interviews help in getting the information that cannot be gathered through the

questionnaires, therefore some of the top executives from each bank are

interviewed as well, to have a two-way communication and to resolve some

untapped areas.

1.10c Secondary Data

As a part of this thesis a detailed literature review is carried out to gather existing

information and research studies about the issue and to analyze the issues through

certain best practices through out the world. Theories, articles and some surveys

are used and highlighted as to gather information about employee satisfaction andretention rate.

1.10d Extensive On-line Search

Internet is used to gather information and literature review as well as to gather

information about how to solve the issue.


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Chapter 2Chapter 2 LITERATURELITERATURE REVIEWREVIEW

CHAPTER 2

LITERATURE REVIEW

MOTIVATIONAL PRESPECTIVES AND THEORIES

2.1 EMPLOYEE PERSPECTIVES ABOUT PERFORMANCE

APPRAISALS

The concept of performance management is a very broad concept with a number

of terms constituting it. One of the major constituents of the performance

management process is the performance appraisal system. These two terms are

often used interchangeably but in reality they are two entirely different processes.

Performance management system is a whole whereas performance appraisal

system just deals with the measurement of the performance of the people. Not just

the meaning, the concept of performance appraisal systems has different

perceptions for the employees and organizations which is where the major

problem lies.

2.1a Definitions

Before going into the details of the concept, some of the definitions of the

performance appraisal process are given below:

Performance appraisal is a method of acquiring and processing the information

needed to improve an individual employees performance and

accomplishments. (Douglass)

It is the process of evaluating the performance of employees, sharing that

information with them and searching for ways to improve their performance.

(Newstorm)

Performance appraisal also known as employee appraisal, is a method by

which thejob performance of an employee is evaluated (generally in terms of

quality, quantity, cost and time). Performance appraisal is a part of career

development. (Thomas F. Patterson (1987)


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http://en.wikipedia.org/w/index.php?title=Job_performance&action=edit&redlink=1http://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Career_developmenthttp://en.wikipedia.org/wiki/Career_developmenthttp://en.wikipedia.org/w/index.php?title=Job_performance&action=edit&redlink=1http://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Career_developmenthttp://en.wikipedia.org/wiki/Career_development


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A face-to-face discussion in which one employee's work is discussed,

reviewed, and appraised by another, using an agreed and understood

framework. Usually, line managers conduct the appraisals of their staff,

although peers can appraise each other, and line managers can themselves be

appraised by their staff through 360 degree appraisal. The appraisal process

focuses on behaviors and outcomes, and strives to improve motivation,

growth, and performance of the appraisee. Performance appraisals should be

conducted at least once a year.(Business definition for performance

appraisal by the BNET Dictionary)

2.1b Employee Perspective

Performance appraisal system is prevalent in each and every organization whether

they want it or not. Clearly, for better or for worse, most governmental (and non-

governmental) organizations employ some type of performance appraisal system.

Although the reasons, the outcomes and the ways in which the performance

appraisal systems are implemented in the organizations may vary, the basic

system lies intact.

2.1c Reasons for Performance Appraisal

According to an article byArcher North mere individual recognition, that is to

say appraising performance, can lead to higher job satisfaction and reduced

absenteeism and turnover rates. In fact, there is evidence that human beings will

even prefer negative recognition in preference to no recognition at all. It gives a

certain direction to the employees and they get to know clearly what is expected

of them and their job and how they can do their work in the best possible manner.

2.1d Problems in the Process

In one of the articles Abolishing performance appraisals by Tom Coens and

Mary Jenkins, Performance appraisals impede genuine feedback, and theres no

solid evidence that it motivates people or lead to meaningful improvement. In fact

it usually produces distorted and unreliable data about the contribution of

employees. This isnt just an opinion. A survey by the Society for Human

Resources Management found that more than 90% of appraisal systems are not


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successful. Hundreds of other studies and surveys also support the gross

inadequacies of performance appraisals.

Some of the reasons for the problems prevalent in the performance appraisalsystems include for example, the lack of skills or training of the rater, the lack of

expertise in designing the performance appraisal, the lack of communication of

the reasons of the appraisal system to the employees etc.

In another article Effects of Performance Appraisal on Employee Attitudes the

author says that One can find opinions varying from performance appraisal being

so inherently flawed that it may be impossible to perfect it, to the most crucial

aspect of organizational life.

To show effects of performance appraisal on employee attitudes, a study by

Gabris and Mitchell, made in an organization with a quarterly performance

appraisal system, which focused on Matthew effect, will be used. Matthew effect

is said to occur where employees tend to keep receiving the same appraisal results,

year in and year out.

Also the article which appeared in the May-June 1997 issue of Corporate

University Review cited that performance appraisals instigated negative emotional

states: worrying, depression, stress, and anguish (on the part of those giving as

well as those receiving appraisals). After first acknowledging the "hard" costs of

performance appraisals, Harry Heflin, an engineer with Intersys who is also

chairman of the IEEE Engineering Management Society in Boston, wrote, "But I

think the real cost is the emotional anguish as everyone anticipates, prepares for,

and works the process."

According to an article Performance Appraisal Tips by Dexter Hansen,one

negative aspect of traditional individual performance appraisals is that they can

make employees compete against one another. How can this be done? If the

ratings are known (or assumed, based on the employees rating given by the

manager and their perceptions of where they stand relative to others), it can create

discord in the work group. TQM is based on teamwork, however, if an employee

asks for help, they can be penalized on their appraisals. When trying to encourage


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a TQM environment, the performance ratings should contain elements relating to

teamwork (i.e. rated between teams instead of individuals).

Finally according to the article which appeared in the May-June 1997 issue of

Corporate University Review, performance appraisal systems could be eliminated

with no harm done and with great economic and emotional benefit. Consequently,

change-minded executives should not listen to pleas to redesign their companys

performance appraisal system but should instead give serious thought to scrapping

it because of the extensive costs of the system mentioned in the article.

Although different authors approached performance appraisals differently, their

research came up with the following comments and findings of the employees

regarding the whole system.

In an article Perspectives on enduring and emerging issues in performance

appraisalby Gary E. Roberts, a quotation from a personnel manager

interviewed for a project was mentioned which stated that In our

organization everyone hates the entire appraisal process. The employee that

gets a good performance appraisal thinks that the system is wonderful; the

employee that gets a bad one thinks that the system is unfair.

In a research paper An expert witness perspective on performance appraisal

in universities and colleges conducted an analysis which proved that the

involvement of the staff in the performance appraisal process should be

increased.

Another paper on "Performance Appraisal Survey Analysis" and similar term

paper topics indicates that the process is not considered fair by over half of

employees.

2.2 MANAGERIAL PERSPECTIVE

If we look at the performance appraisal process from the eyes of the management,

they have a much positive approach and views about it as compared to that of the

employees. Some of the benefits of the performance appraisal process according


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to the article which appeared in the May-June 1997 issue ofCorporate University

Review, the viewpoint of senior executives, performance appraisal systems are

generally regarded as a necessary part of the organizations management system.

This condition seems to exist because of the widely accepted, generally

unquestioned benefits of performance appraisal systems. If asked, a typical

executive might indicate the following benefits:

The system provides employees with an opportunity to receive feedback

regarding their performance, usually at least once a year and often on an

interim basis during the year. This leads to reduced error and waste,

increased productivity, improved quality and service for customers, as well

as enhanced employee motivation, commitment, and a sense of ownership.

The system provides an opportunity for performance related discussions

that include the following aims: setting work objectives for the employee,

aligning individual and organizational goals, identifying training and

development needs, and discussing career progression opportunities.

The system standardizes performance appraisals and makes them objective

by providing uniform processes and criteria. This further results in a fair,

valid, and legally defensible basis for rewarding and recognizing individual

performance.

Perhaps the most significant benefit of appraisal is that, in the rush and

bustle of daily working life, it offers a rare chance for a supervisor and

subordinate to have "time out" for a one-on-one discussion of important

work issues that might not otherwise be addressed.

Appraisal offers a valuable opportunity to focus on work activities and

goals, to identify and correct existing problems, and to encourage better

future performance. Thus the performance of the whole organization is

enhanced.

For many employees, an "official" appraisal interview may be the only time

they get to have exclusive, uninterrupted access to their supervisor. Said

one employee of a large organization after his first formal performance


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appraisal, "In twenty years of work, that's the first time anyone has ever

bothered to sit down and tell me how I'm doing."

Performance appraisal can have a profound effect on levels of employeemotivation and satisfaction - for better as well as for worse.

Performance appraisal offers an excellent opportunity - perhaps the best

that will ever occur - for a supervisor and subordinate to recognize and

agree upon individual training and development needs.

Appraisal data can be used to monitor the success of the organization's

recruitment and induction practices.

Though often understated or even denied, evaluation is a legitimate and

major objective of performance appraisal.

The system affords the corporation legal protection against employee

lawsuits for discrimination and wrongful termination.

A perhaps less typical but more candid executive might add a final benefit: the

formal performance appraisal system shores up an organizations hierarchical

authority system. It gives the supervising manager control over the carrots and

sticks in what is essentially a carrot-and-stick management system.

The list of benefits above, with the exception of the last one, represents an

idealized view of performance appraisal systems, a view that is espoused by many

but achieved by few, if any.

2.3 MOTIVATIONAL THEORIES

There are several early and contemporary motivational theories that are discussed

below. They give an idea about different perspectives and views about motivation

and satisfaction of employees.

2.3a Early Motivation Theories

Management needs to be able to make decisions concerning the employees or

people working under them. Many of these are purely how to get the fullest efforts

from the employees and this is where motivation plays an important role. There


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are many theories that have been written about motivation and these are some

classic ones:

2.3a-1 Theory 'X' Douglas McGregorAccording to Douglas McGregor theory X suggests that people are lazy; they hate

work to the extent that they avoid it; they have no ambition, take no initiative and

avoid taking any responsibility; all they want is security, and to get them to do any

work, they must be rewarded, coerced, intimidated and punished. To get work

done they have to police their staff and monitoring is necessary for them.

2.3a-2 Theory 'Y' Douglas McGregor

This is in sharp contrast to theory 'X'. McGregor believed that people want to

learn and that work is their natural activity to the extent that they develop self-

discipline and self-development. The leader no longer have to use power, he or

she lets people develop freely, and may even enjoy watching the development

and actualizations of people by themselves. Everyone most of all the organization,

gains as a result.

2.3a-3 Maslow's Hierarchy of Needs - Abraham Maslow

Maslow's central theme revolves around the meaning and significance of human

work. Maslow's theory of human motivation is the basis of McGregor's theory 'Y'

briefly described above.

Maslow in 1970 is known for establishing the theory of a hierarchy of needs,

writing that human beings are motivated by unsatisfied needs. A persons

behavior is seen as dominated by his/her unsatisfied needs and when one need is

satisfied he/she aspires for the next higher one.

According to Maslow, there are general types of needs (physiological, safety,

love, and esteem) that must be satisfied before a person can act unselfishly. He

called these needs "deficiency needs." As long as we are motivated to satisfy these

cravings, we are moving towards growth, toward self-actualization.

The five basic human needs, according to Maslow, are: (1) Physiological: hunger,

thirst, bodily comforts, etc.; (2) Safety/security: be out of danger; (3) Belonginess

and Love: affiliate with others, be accepted; (4) Esteem: to achieve, be competent,


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gain approval and recognition and (5) Self-actualization: to find self-fulfillment

and realize one's potential.


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Figure 2: Maslow's Hierarchy of Needs

2.3a-4 Motivation Hygiene Theory - Frederick Herzberg

According to this theory the intrinsic factors are related to job satisfaction and

motivation while the extrinsic factors are related to the job dissatisfaction.

Herzberg suggests that people's needs are of two types: animal needs (hygiene

factors) and human needs (motivators). Hygiene factors are those which are the

basic needs and when they are absent an employee is dissatisfied and demotivated

while when they are present there is no motivation neither there is any

dissatisfaction. While on the other hand the factors which motivated employees

were motivators.

Herzbergs theory was widely accepted during 1960s till 1980s but it faced

certain criticism after that but it is still considered when designing jobs.


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2.3b Contemporary Motivational Theories

The theories that would be discussed now represent the current status of

motivation. Although they are not as famous as the early theories but they hare

based on extensive research.

2.3b-1 Three needs theory - David McClelland

McClelland (1968) argues that there are three needs that are essential factors to

get motivation. These needs are achievement, affiliation and power.

The need of affiliation is the desire for close and friendly interpersonal

relationships at the workplace. While the need of power is the need to make

people behave in the manner which they would not have behaved otherwise

Need of achievement can be described as setting up goals or objectives, and

working with them until you get the desirable outcome even if it takes a long time

and some risks to achieve that, but this makes people even more determined to

accomplish the goal. Achievement-motivated people are concerned more with

their personal achievement rather than the rewards of success. They do not reject

the rewards but they are not as essential as the accomplishment itself. Money for

them is a means to measure their performance and compare their achievement

with those of other people, and they dont seek money for status or economic

security.

The need of achievement has been researched more extensively while other were

also researched upon but less extensively.

2.3b-2 Goal setting theory

This theory states that specific goals tend to increase the performance and difficult

goals when accepted results in higher performance than do easy goals.

Research has proved that specific and hard goals are a motivating factor and they

tend to give a specific direction.

Here there seems to be a contradiction between the need for achievement in the

three need theory and the goal setting theory. According to the need of


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achievement motivation is done by moderately challenging goals while the goals

setting theory depicts that motivation is maximized by difficult goals.

Here the explanation is that the need of achievement differs from economy toeconomy; in the developed countries it is high but very low in the under

developed countries. While the goal setting theory is applied to people in general.

There are certain contingencies in the goal setting theory and that is it presumes

that specific goals will give good performance. There are other factors to it as

well, which supports good performance; they include feedback to the employees

on the achievement of the goal, goal commitment, self efficacy (the belief of a

person that he/she is capable of performing a task), and national culture.

The shortcoming of this theory is that it presumes that every culture supports the

achievement of hard and specific goals but it only applies to the developed

countries. The employees in the under developed countries do not necessarily are

motivated by hard goals.

Figure 3: Goal Setting Theory

2.3b-3 Reinforcement Theory

The theory states that behavior is the function of its consequences. It proposes

that behavior is externally caused. The key to the theory is that it ignores factors

such as goals, expectations and needs, instead it focuses solely on what happens to

the person when he / she takes some action.

Rein forcers shape behavior and help people to learn but the theory is also widely

believed to help motivation. According to BF.Skinner the reinforcement theory

can be explained as follows:


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People will most likely engage in a behavior if they are rewarded for doing so;

these rewards are most effective if they are immediately followed by a desired

behavior, and the behavior that is not rewarded or is punished is less likely to be

repeated.

There are three types of reinforcement

Positive reinforcement

Negative reinforcement

Non - reinforcement

Following reinforcement theory, managers can influence employees behavior

reinforcing actions that are desirable. The emphasis should always be on the

positive reinforcement and not punishment. Even though punishment eliminated

undesired behaviors more quickly than non-reinforcement, its effect is often very

temporary and may have long term negative effects on the employees. It may

increase the turnover rate and the employee absenteeism.

Research has shown that reinforcement is an important influence on the work

behavior. But reinforcement is not the only motivator, goals, levels of motivation,

needs of affiliation, achievement and power also effect motivation.

2.3b-4 Job characteristic model

As managers are interested in motivating the employees as to increase the

productivity, there they need to design jobs in such a way as to motivate

employees. Job deign refers to the way tasks are designed to complete a job.

Some of the ways of designing job are job rotation, job enrichment and job

enlargement.

Job characteristic model (JCM) is a framework for analyzing and designing jobs

that identifies five primary job characteristics, their interrelationships and their

impact on outcomes.


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According to the JCM, any job can be described in terms of the five core

dimensions defined as follows:

Skill Variety

The degree to which a job require a variety of activities so that an employees can

use a number of skills and talents.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of

work.

Task Significance

The degree to which a job has a substantial impact on the lives or work of the

other people.

Autonomy

The degree to which a job provides substantial freedom, independence and

discretion to the individual in scheduling the work and determining the proceduresto be used in carrying it out.

Feedback

The degree to which carrying out work activities required by a job results in the

individuals obtaining direct and clear information about the effectiveness of

his/her performance.

The figure explains the five dimensions. It shows how the first three dimensions

combine to create meaningful work. It means that these three things in a job

increase the importance of the job. The autonomy gives the employees a feeling of

responsibility while the feedback provides how the employee is working and

performing.

Figure 4: Job characteristic model


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Source: JR. Hackman and J.L. Suttle (eds) in improving life at work

From a motivational standpoint the model suggests that internal rewards are

obtained when an employee is given feedback (feedback) and he/she has

personally performed well (autonomy) on the task about which he/ she cares

(experienced meaningfulness of the work). The more of theses three conditions

are present the more motivational the job is and the employees satisfied.

2.3b-5 Equity Theory

It is human beings tendency that they compare themselves with each other all the

time.

This theory developed by J. Stacey Adams, proposes that an employee compare

his/her jobs input / outcomes ratio with that of relevant others and then correct

any inequity.

If an employee perceives his/her input and output to be equal to others the state of

equity remains. However if the ratio is not perceived to be equal and the inequity

exists then the employee views himself /her self as over or under rewarded.

There are certain expected outcomes and behaviors that are displayed by the

employees when they perceive that they are treated unequally as compared to

others.

Change their input and effort

Change others input or outputs

Choose a different person and start comparing themselves with them


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Increase absenteeism

Quit the job

Equity theory is not without its flaws as well. There is the problem that how to

define inputs and outputs, how they change over a period of time, and how do

people choose others to whom, they compare themselves.

2.3b-5-1Equity Theory and Employee Motivation

Is there a relationship between how hard an employee works and how fairly they

have been treated? Some noted economists believe that there is.

In business, the Equity Theory of employee motivation describes the relationship

between how fairly an employee perceives he is treated and how hard he is

motivated to work. Peter Drucker, an author who specialized in economics, first

proposed the link between Equity Theory and employee motivation.

The basic idea behind the Equity Theory is that workers, in an attempt to balance

what they put in to their jobs and what they get from them, will unconsciously

assign values to each of his various contributions.

In addition to their time, workers contribute their experience, their qualifications,

and their capability in addition to their personal strengths such as acumen and

ambition. Money, of course, is the primary motivating outcome for an employee,

but it is not the only, and in some cases not even the most important, factor.

Power and status are also prime motivators, as are flexibility, perquisites and

variety.

According to the Equity Theory, the most highly motivated employee is the one

who perceives his rewards are equal to his contributions. If he feels that he is

working and being rewarded at about the same rate as his peers, then he will judge

that he is being treated fairly.

This doesnt mean that every manager should treat every employee identically,

because every worker does not measure his contributions in the same way. For

example, flexible working hours might motivate a working mother even more than


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a pay raise. Conversely, though an across-the-board wage increase may delight

most employees, the highest producers may become less motivated if they

perceive that they are not being rewarded for their ambition. Research on Equity

Theory and employee motivation has shown that, in general, over-rewarded

employees will produce more and of a higher quality than will under-rewarded,

less motivated employees.

2.3b-6 Expectancy Theory - Victor Vroom

According to Vroom's expectancy theory, it states that an individual tends to act

in a certain manner based on the expectations that the act will be followed by a

given outcome and on the attractiveness of that outcome to the individual.

It includes three variables that are as under:

Expectancy or the Effort Performance Linkage

The expectations of an individual that a certain level of effort put in to

accomplish a job will give a certain level of performance.

Instrumentality or the Performance - Reward Linkage

The degree to which a certain performance will help attain a certain reward.

Valence or the Attractiveness of the Reward

Valence is the degree to which the reward has value to the individual performing

the job. The answer lies in understanding their inner motives and then providing

them with appropriate rewards.

This theory contributes an insight into the study of motivation by explaining how

individual goals influence individual performance.

Figure 5: Expectancy Theory

To sum up, the theories discussed above show that people have inner motives,

needs and desires that drive them. Different authors have different approaches,

some believe in monetary rewards while others suggest non-monetary rewards.


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2.4 EMPLOYEE MOTIVATION: THEORY AND PRACTICE

The job of a manager in the workplace is to get things done through employees.

To do this the manager should be able to motivate employees. But that's easier

said than done! Motivation practice and theory are difficult subjects, touching on

several disciplines.

In spite of enormous research, basic as well as applied, the subject of motivation is

not clearly understood and more often than not poorly practiced. To understand

motivation one must understand human nature itself.

Human nature can be very simple, yet very complex too. An understanding and

appreciation of this is a prerequisite to effective employee motivation in the

workplace and therefore effective management and leadership.

2.4a Why Study and Apply Employee Motivation Principles?

Quite apart from the benefit and moral value of an altruistic approach to treating

colleagues as human beings and respecting human dignity in all its forms,

research and observations show that well motivated employees are more

productive and creative. The inverse also holds true. The schematic below

indicates the potential contribution the practical application of the principles this

paper has on reducing work content in the organization.

2.4a-1 Motivation is the Key to Performance Improvement

There is an old saying you can take a horse to the water but you cannot force it to

drink; it will drink only if it's thirsty - so with people. They will do what they want

to do or otherwise motivated to do. Whether it is to excel on the workshop floor or

in the 'ivory tower' they must be motivated or driven to it, either by themselves or

through external stimulus.

Are they born with the self-motivation or drive? Yes and no. If no, they can be

motivated, for motivation is a skill which can and must be learnt. This is essential

for any business to survive and succeed.

Performance is considered to be a function of ability and motivation, thus:

Job Performance = f (Ability)(Motivation)


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Ability in turn depends on education, experience and training and its improvement

is a slow and long process. On the other hand motivation can be improved

quickly. There are many options and an uninitiated manager may not even know

where to start. As a guideline, there are broadly seven strategies for motivation.

Positive reinforcement

Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs Base rewards on job performance

These are the basic strategies, though the mix in the final 'recipe' will vary from

workplace situation to situation. Essentially, there is a gap between an individuals

actual state and some desired state and the manager tries to reduce this gap.

Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing

others in a specific way towards goals specifically stated by the motivator.

Naturally, these goals as also the motivation system must conform to the corporatepolicy of the organization. The motivational system must be tailored to the

situation and to the organization.

In one of the most elaborate studies on employee motivation, involving 31,000

men and 13,000 women, the Minneapolis Gas Company sought to determine what

their potential employees desire most from a job. This study was carried out

during a 20 year period from 1945 to 1965 and was quite revealing. The ratings

for the various factors differed only slightly between men and women, but both

groups considered security as the highest rated factor. The next three factors were;

advancement

type of work

company - proud to work for


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Surprisingly, factors such as pay, benefits and working conditions were given a

low rating by both groups. So after all, and contrary to common belief, money is

not the prime motivator. (Though this should not be regarded as a signal to reward

employees poorly or unfairly.)

2.4b Application of Employee Motivation Theory to the Workplace

Management literature is replete with actual case histories of what does and what

does not motivate people. Presented here is a tentative initial broad selection of

the various practices that have been tried in order to draw lessons for the future.


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2.4b-1'Stick' or 'Carrot' Approach

The traditional Victorian style of strict discipline and punishment has not only

failed to deliver the goods, but it has also left a mood of discontent amongst the

"working class".

Punishment appears to have produced negative rather than positive results and has

increased the hostility between 'them' (the management) and 'us' (the workers). In

contrast to this, the 'carrot' approach, involving approval, praise and recognition of

effort has markedly improved the work atmosphere, leading to more productive

work places and giving workers greater job satisfaction.

2.4b-2 Manager's Motivation 'Toolkit'

The manager's main task is to develop a productive work place, with and through

those he or she is in charge of. The manager should motivate his or her team, both

individually and collectively so that a productive work place is maintained and

developed and at the same time employees derive satisfaction from their jobs.

This may appear somewhat contradictory, but it seems to work. The main tools in

the manager's kitbag for motivating the team are:

approval, praise and recognition

trust, respect and high expectations

loyalty, given that it may be received

removing organizational barriers that stand in the way of individual and

group performance

job enrichment

good communications

financial incentives

These are arranged in order of importance and it is interesting to note that cash is

way down the ladder of motivators. Given below are some of the examples taken

from real life situations.

The Swedish shipbuilding company, Kockums, turned a 15 million dollar loss into

a 100 million dollar profit in the course of ten years due entirely to a changed

perception of the workforce brought about by better motivation. At Western


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Electric there was a dramatic improvement in output after the supervisors and

managers started taking greater interest in their employees.

2.4b-3 Don't Coerce - Persuade

Persuasion is far more powerful than coercion, just as the pen is mightier than the

sword. Managers have a much better chance of success if they use persuasion

rather than coercion. The former builds morale, initiative and motivation, whilst

the latter quite effectively kills such qualities. The three basic components in

persuasion are:

suggest;

play on the person's sentiments; and

appeal to logic.

Once convinced, the person is so motivated as to deliver the 'goods'. The manager

will have achieved the goal quietly, gently and with the minimum of effort. It is,

in effect, an effortless achievement.

2.5 MOTIVATION

Motivation is the reason why employees want to work hard and effectively for thebusiness. People work for a variety of reasons, some want to earn money while

other do it to fulfill their inner needs. There is a wide range of motivators to

motivate people and they differ from individual to individual. Highly motivated

employees increase the productivity level and thus the profits are increased and

vice versa.

Figure 6: Motivation and Profit

There is always a chance that the output is increased due to new technology and

improved external conditions but the quality of the output always relies on how

well motivated the employees are and how satisfied they are with their job.


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2.6 SOURCES OF MOTIVATION

When an employee is satisfied he/she is motivated to work and thus he/she is

retained There can be number of motivating factors as shown in the figure which

can be put into main sources of motivation which are:

Monetary

Non-monetary

Therefore, they can be termed as rewards given to employees that may result in

their satisfaction and retention. They are as under:

Intrinsic rewards these rewards are related to the internal satisfaction of

the employee e.g. it includes recognition, awards, moral satisfaction etc.

Extrinsic rewards- theses rewards are related to the external factors of

satisfaction of the employee e.g. bonuses, promotion, benefits etc.

Figure 7: Motivating Factors

2.7 DETERMINANTS OF PERFORMANCEEmployees are the most important assets of any organization. The success of any

organization depends on the achievements and the performance of its employees.

If they are not enthusiastic about their jobs and are not achieving the performance

benchmarks, then the success of the organization itself is at stake. One major

challenge that is faced by the employers is how to improve the performance of its

employees which makes it mandatory for them to take into account the

determinants of performance some of which are as follows:


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Do the employees have a clear understanding of their job roles

One of the most important determinants of the performance of the employees in

any organization is the job description and the job design. It determines the level

of knowledge and awareness that the employee has regarding his/her job. If they

are not aware of what is expected of them, how will they ever achieve the

performance levels and the performance benchmarks that have been set for them?

How routine are the tasks performed

Another very vital determinant of performance is the frequency of the task or the

job being done. If the job is conducted very frequently on a daily basis, the

employees would know their job better and would lead to very good performancebut on the other hand if the job is done once a year or very rarely, then the

employees themselves would be uncertain about what to do and would eventually

lead to average or below average results or outcomes.

Self perception

If a persons perception about him/her is accurate that would lead to a positive

performance and has been found out to be the most critical factor in determining

performance.

The Experience of the Employee

The experience of the employee also plays a very important role in determining

their performance. If an employee is more experienced and has more know how

about the proceedings of the job, he would be able to reach higher performance

standards while on the other hand if an employee is doing a certain task which

requires a lot of expertise which he/she does not possess, it would make it difficultfor him to reach the performance benchmarks that has been set.

Culture of the Organization

The culture of the organization also affects the performance of the individuals

working in it. Some of the organizations have the concept of a very open culture

in which the structure is relatively flatter and no hierarchical levels from top to

bottom. This approach makes the employees more comfortable and their

performance is affected and influenced in a positive way. On the other hand in


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highly beurucratic organizations very tall structures and lack of openness between

the employees lead to lack of flexibility and rigidness which has an adverse affect

on their performance.

Supervisor feedback and acknowledgements

The feedback that the employees receive from their employees also adds to their

positive performance and determines their performance. Organizations should

have informal sessions with the employees behind closed doors not in front of the

whole crowd about their performance and general work habits. This is a

determinant of their performance and leads to positive work ethics.

Psychographics

The working condition of the employees also is a determinant of their

performance. If not on the obvious conscious level, on the subconscious level, the

physical comforts that an employee has contributes a lot to his/her performance

otherwise ten people would have been stuffed inside one room. If we take the

example ofMicrosoft, it gives each and every employee a fully enclose 9 x 12

office with a door so that they have the solitude and the privacy to sit and think.

They were even given the leverage to decorate their offices according to their own

will and desire so that they have a feeling that they are in a place which is

according to them and have full comfort.

All the determinants and many others like the intelligence quotient, emotional

quotient, motivation, willingness to work and job satisfaction etc have a collective

influence on the overall performance of the employees and should be thoroughly

taken into account for the better working of the employee and the organization as

a whole.

2.8 APPRAISAL AS A MOTIVATING MECHANISM

Keeping in mind the growing attrition rates and the employee dissatisfaction

among the employees, the HR professionals are approaching and using the

performance appraisal as a fuel to motivate employees. The latest trend being

followed by the HR professionals is to use the performance appraisal and review


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process as a motivating mechanism. Various surveys and studies have testified the

relationship between performance review, pay and motivation.

Other than the traditional goal of accessing the performance of the employees,Performance appraisals and reviews can be used as a tool to reinforce the desired

behaviour and competent performance of the employees.

One of the most motivating factors for the employees, in the Performance

appraisal processes is to receive a fair an accurate assessment of their

performance. Inaccurate evaluation is one reason because of which most

employees dread going through performance appraisals. An employee always

expects his appraiser to recognize and appreciate his achievements, support him toovercome the problems and failures.

The discrepancies and the inaccuracies in the performance review can demotivate

the employees, even if there has been an increase in the salary. Such inaccuracies

can kill the innovating and risk taking enthusiasm and spirit in the employees.

Similarly, inaccurate reviews with no hike in compensation can increase the

attrition rate in the organization, forcing the employees to look out for other

options.

An employee prefers an accurate performance review with no increase in the

salary over inaccurate performance review with an increase in salary.

Employees, who receive both accuracy and a pay increase during their

performance review, are likely to be the most motivated. Therefore, performance

appraisal (review and its consequence in the form of compensation adjustments)

has the potential of motivating employees and increasing their job satisfaction.

2.9 SURVEYS AND RESEARCHES

There are certain important surveys carried out which are related to performance

appraisals and motivation of employees. The statistical information gives a certain

direction about the topic.

Understanding Employee MotivationJames R. Lindner

Research and Extension Associate

The Ohio State University


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Piketon Research and Extension Center

Piketon, Ohio


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2.9-a Introduction to Motivation

At one time, employees were considered just another input into the production of

goods and services. What perhaps changed this way of thinking about employees

was research, referred to as the Hawthorne Studies, conducted by Elton Mayo

from 1924 to 1932 (Dickson, 1973). This study found employees are not

motivated solely by money and employee behavior is linked to their attitudes

(Dickson, 1973). The Hawthorne Studies began the human relations approach to

management, whereby the needs and motivation of employees become the

primary focus of managers (Bedeian, 1993).

2.9-b Motivation Theories

Understanding what motivated employees and how they were motivated was the

focus of many researchers following the publication of the Hawthorne Study

results (Terpstra, 1979). Five major approaches that have led to our understanding

of motivation are Maslow's need-hierarchy theory, Herzberg's two- factor theory,

Vroom's expectancy theory, Adams' equity theory, and Skinner's reinforcement

theory.

According to Maslow, employees have five levels of needs (Maslow, 1943):

physiological, safety, social, ego, and self- actualizing. Maslow argued that lower

level needs had to be satisfied before the next higher level need would motivate

employees. Herzberg's work categorized motivation into two factors: motivators

and hygienes (Herzberg, Mausner, & Snyderman, 1959). Motivator or intrinsic

factors, such as achievement and recognition, produce job satisfaction. Hygiene or

extrinsic factors, such as pay and job security, produce job dissatisfaction.

Vroom's theory is based on the belief that employee effort will lead to

performance and performance will lead to rewards (Vroom, 1964). Rewards may

be either positive or negative. The more positive the reward the more likely the

employee will be highly motivated. Conversely, the more negative the reward the

less likely the employee will be motivated.


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Adams' theory states that employees strive for equity between themselves and

other workers. Equity is achieved when the ratio of employee outcomes over

inputs is equal to other employee outcomes over inputs (Adams, 1965).

Skinner's theory simply states those employees' behaviors that lead to positive

outcomes will be repeated and behaviors that lead to negative outcomes will not

be repeated (Skinner, 1953). Managers should positively reinforce employee

behaviors that lead to positive outcomes. Managers should negatively reinforce

employee behavior that leads to negative outcomes.

2.9-c Motivation Defined

Many contemporary authors have also defined the concept of motivation.

Motivation has been defined as: the psychological process that gives behavior

purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive

manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an

internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to

achieve (Bedeian, 1993). For this paper, motivation is operationally defined as the

inner force that drives individuals to accomplish personal and organizational

goals.

2.9- d The Role of Motivation

Why do we need motivated employees? The answer is survival (Smith, 1994).

Motivated employees are needed in our rapidly changing workplaces. Motivated

employees help organizations survive. Motivated employees are more productive.

To be effective, managers need to understand what motivates employees within

the context of the roles they perform. Of all the functions a manager performs,

motivating employees is arguably the most complex. This is due, in part, to the

fact that what motivates employees changes constantly (Bowen & Radhakrishna,

1991). For example, research suggests that as employees' income increases,

money becomes less of a motivator (Kovach, 1987). Also, as employees get older,

interesting work becomes more of a motivator.

2.9-e Purpose


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The purpose of this study was to describe the importance of certain factors in

motivating employees at the Piketon Research and Extension Center and

Enterprise Center. Specifically, the study sought to describe the ranked

importance of the following ten motivating factors: (a) job security, (b)

sympathetic help with personal problems, (c) personal loyalty to employees, (d)

interesting work, (e) good working conditions, (f) tactful discipline, (g) good

wages, (h) promotions and growth in the organization, (i) feeling of being in on

things, and (j) full appreciation of work done. A secondary purpose of the study

was to compare the results of this study with the study results from other

populations.

2.9-f Methodology

The research design for this study employed a descriptive survey method. The

target population of this study included employees at the Piketon Research and

Extension Center and Enterprise Center (centers). The sample size included all 25

employees of the target population. Twenty-three of the 25 employees participated

in the survey for a participation rate of 92%. The centers are in Piketon, Ohio.

The mission of the Enterprise Center is to facilitate individual and community

leader awareness and provide assistance in preparing and accessing economic

opportunities in southern Ohio. The Enterprise Center has three programs:

alternatives in agriculture, small business development, and women's business

development. The mission of the Piketon Research and Extension Center is to

conduct research and educational programs designed to enhance economic

development in southern Ohio. The Piketon Research and Extension Center has

five programs: aquaculture, community economic development, horticulture,forestry, and soil and water resources.

From a review of literature, a survey questionnaire was developed to collect data

for the study (Bowen & Radhakrishna, 1991; Harpaz, 1990; Kovach, 1987). Data

was collected through use of a written questionnaire hand-delivered to

participants. Questionnaires were filled out by participants and returned to an

intra-departmental mailbox. The questionnaire asked participants to rank the

importance of ten factors that motivated them in doing their work: 1=most


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important . . . 10=least important. Face and content validity for the instrument

were established using two administrative and professional employees at The

Ohio State University. The instrument was pilot tested with three similarly

situated employees within the university. As a result of the pilot test, minor

changes in word selection and instructions were made to the questionnaire.

2.9-g Results and Discussion

The ranked order of motivating factors were: (a) interesting work, (b) good wages,

(c) full appreciation of work done, (d) job security, (e) good working conditions,

(f) promotions and growth in the organization, (g) feeling of being in on things,

(h) personal loyalty to employees, (i) tactful discipline, and (j) sympathetic helpwith personal problems.

A comparison of these results to Maslow's need-hierarchy theory provides some

interesting insight into employee motivation. The number one ranked motivator,

interesting work, is a self-actualizing factor. The number two ranked motivator,

good wages, is a physiological factor. The number three ranked motivator, full

appreciation of work done, is an esteem factor. The number four ranked

motivator, job security, is a safety factor. Therefore, according to Maslow (1943),

if managers wish to address the most important motivational factor of Centers'

employees, interesting work, physiological, safety, social, and esteem factors must

first be satisfied. If managers wished to address the second most important

motivational factor of centers' employees, good pay, increased pay would suffice.

Contrary to what Maslow's theory suggests, the range of motivational factors are

mixed in this study. Maslow's conclusions that lower level motivational factors

must be met before ascending to the next level were not confirmed by this study.

The following example compares the highest ranked motivational factor

(interesting work) to Vroom's expectancy theory. Assume that a Centers employee

just attended a staff meeting where he/she learned a major emphasis would be

placed on seeking additional external program funds. Additionally, employees

who are successful in securing funds will be given more opportunities to explore

their own research and extension interests (interesting work). Employees who do

not secure additional funds will be required to work on research and extension


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programs identified by the director. The employee realizes that the more research

he/she does regarding funding sources and the more proposals he/she writes, the

greater the likelihood he/she will receive external funding.

Because the state legislature has not increased appropriations to the centers for the

next two years (funds for independent research and extension projects will be

scaled back), the employee sees a direct relationship between performance

(obtaining external funds) and rewards (independent research and Extension

projects). Further, the employee went to work for the centers, in part, because of

the opportunity to conduct independent research and extension projects. The

employee will be motivated if he/she is successful in obtaining external funds andgiven the opportunity to conduct independent research and extension projects. On

the other hand, motivation will be diminished if the employee is successful in

obtaining external funds and the director denies the request to conduct

independent research and Extension projects.

The following example compares the third highest ranked motivational factor (full

appreciation of work done) to Adams's equity theory. If an employee at the

centers feels that there is a lack of appreciation for work done, as being too low

relative to another employee, an inequity may exist and the employee will be dis-

motivated. Further, if all the employees at the centers feel that there is a lack of

appreciation for work done, inequity may exist. Adams (1965) stated employees

will attempt to restore equity through various means, some of which may be

counter- productive to organizational goals and objectives. For instance,

employees who feel their work is not being appreciated may work less or

undervalue the work of other employees.

This final example compares the two highest motivational factors to Herzberg's

two-factor theory. The highest ranked motivator, interesting work, is a motivator

factor. The second ranked motivator, good wages is a hygiene factor. Herzberg,

Mausner, & Snyderman (1959) stated that to the degree that motivators are

present in a job, motivation will occur. The absence of motivators does not lead to

dissatisfaction. Further, they stated that to the degree that hygienes are absent

from a job, dissatisfaction will occur. When present, hygienes prevent


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dissatisfaction, but do not lead to satisfaction. In our example, the lack of

interesting work (motivator) for the centers' employees would not lead to

dissatisfaction. Paying centers' employees lower wages (hygiene) than what they

believe to be fair may lead to job dissatisfaction. Conversely, employees will be

motivated when they are doing interesting work and but will not necessarily be

motivated by higher pay.

The discussion above, about the ranked importance of motivational factors as

related to motivational theory, is only part o

performance appraisal and employee motivation: a case study of the banking sector of pakistan

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