How Does Motivation Affect Performance?

How Does Motivation Affect Performance? This literature study tries  to examine how work motivation affects the job performance within an organization. Work motivation can be divided in two types of motivation called intrinsic and extrinsic motivation. Intrinsic motivation is motivation that comes from a person within and extrinsic motivation is motivation on materially goals. There are a lot of aspects which can influence / create the work motivation within an organization. Out this research there can be said that interests, enjoyment, salary and power can influence the work motivation of employees. When managers want to measure the motivation, they can use self-reports over time. After a period the managers can compare the two points with each other. Job performance can just like work motivation divided in task and contextual performance. The performance can simply be measured over time. After a specific period they can see if the performance of an employee is increased or decreased. There are found some variables that influence the job performance. The most important variables are enjoy, interests, money and power. All four of these variables have a positive influence on the job performance but all four in another way. In this study there are some aspects which could have influence on the relationship between work motivation and job performance. First off all there can be said that the relation between work motivation and job performance is positive. There are two combinations which are interesting. First, the relation between intrinsic motivation and task performance is interesting. When employees are intrinsically motivated the task performance of employees will increase. Second, the relation between extrinsic rewards and performance is interesting. When employees receive an extrinsic reward like money ore promotion, their performance will also increase. Conclusively, there can be said that motivation has a positive effect on the job performance of employees within an organization. Both intrinsic as extrinsic motivation have a positive influence on the job performance. Managers can use this information within an organization to motivate the employees. This will eventually increases the job performance of those employees Preface Chapter 1: Introduction This thesis will analyze how work motivation can affect the work performance of employees in an organization. There are a large amount of aspects that contributes to the success of an organization. For an organization it is very important that people are motivated. If the employees of an organization are motivated their interests, attitude and performance will improve during work hours (Locke 2004). Furthermore the performance is also an aspect that contributes to the success of an organization. The main goal of an organization is to make profit. An organization can only make profit if the employees of that specific organization can achieve their goals (Beal 2005). This thesis will analyze how employers can influence the job performance of their employees and if this will influence the success of an organization. As said above, this thesis will focus on the connection between work motivation and job performance and how they influence the success of an organization. A large amount of researchers use two different types of motivation. Researchers agree that there is an intrinsic motivation and extrinsic motivation by employees. Intrinsic motivation means acting from inside and this is inherently connected with enjoy and interest (Ryan, R. M., Deci, E. L. 2000b). Extrinsic motivation is acting in specific way that lead to a valuable added value (Ryan, R. M., Deci, E. L. 2000b). This is why this thesis will look at the different types of motivation (especially intrinsic and extrinsic motivation). If the two types of motivation and job performance are discussed the link between work motivation and job performance can be found. Is there a positive or negative link between work performance and job motivation? How does work motivation influences the job performance? Those questions will be answered during this thesis. Problem statement How does work motivation affect the job performance of employees in an organization? Research Questions What are the theoretical approaches of work motivation? Which different perspectives of job performance are developed by researchers? How do work motivation and job performance influence each other? Methodology According to Sekaran and Bougie (2009) there are different ways to collect data. The type of research that will be used for this thesis is a descriptive research. This thesis is a literature study which means that secondary sources will be researched. Analysis of different variables will be the basis for additional empirical research. Recent empirical research will be used to analyze the subjects of this thesis. By using scientifically papers the data can be found. The concepts of this research are work motivation, job performance and the link between work motivation and job performance. Structure The main goal of this paper is to analyze how work motivation affects the job performance of employees within an organization. This paper is subdivided in three chapters. In the first chapter answers will be found about work motivation. What is work motivation and how does motivation influences employees? The main subject of the second chapter will be job performance. For example questions regarding job performance are, what is job performance, what influences job performance within an organization? The third and last chapter will bring work motivation and job performance together. In this chapter work motivation and job performance will be combined. The main question of this chapter will be: Does work motivation influence job performance and what will be the benefits within an organization? Chapter 2: Work motivation Each organization has employees who work for that organization. When employees are motivated, they are enjoyable and they are more interested in their jobs (Ryan, R. M., Deci, E. L. 2000b). A large amount of researchers agree in the concept work motivation. This chapter will provide an analysis of the two types of work motivation. The first part of this chapter work motivation will be discussed. The second part of this chapter intrinsic and extrinsic motivation will be explained and the last part of this chapter provides the effect of those types of motivation. A large amount of researchers researched the concept work motivation. According to Pinder (1998) work motivation is a set of energetic forces that invent both inside as well as outside an individuals being, to initiate work-related behavior and to determine its direction, intensity, and duration. Ambrose Kulik (1999) argues that work motivation is invisible, internal and hypothetical. A complement of the researchers above Pinder (1998) argues that energetic forces have a great influence on the work motivation of employees. Atkinson (1964) agrees with Pinder (1998). Atkinson (1964) argues that work motivation has a lot to do with the psychological process of employees. Seen these researchers there can be said that work motivation has to do with the psychological process. The psychological process of employees is invisible and internal. Intrinsic motivation and extrinsic motivation As said above, work motivation is a psychological process which is invisible and internal, but there is also dichotomy of motivation called intrinsic and extrinsic motivation (Porter and Lawler 1968). This study was developed in 1968 but still these two types of motivation are used in the literature (Steel 2008). In the previous paragraph the two types of motivation are mentioned. Researchers (Porter and Lawler 1968, Steel 2008) have found two different types of work motivation. The following paragraphs will discuss intrinsic and extrinsic motivation. Intrinsic motivation The last decades a large amount of researchers investigated the concepts intrinsic and extrinsic motivation. According to Calder and Staw (1975) motivation is intrinsic if an activity is undertaken for someone who needs immediate satisfaction. Van Yperen and Hagendoorn (2003) argue that motivation is intrinsic when people perform an activity for itself which bring them satisfaction. Van Yperen and Hagendoorn (2003) agree with Calder and Staw (1975) but they add that satisfaction is inherent to enjoy. Steele (2008) argues that intrinsic motivation could include involvement in behavioural patterns, thought processes, action and activity or reaction for its own importance. The previous paragraph describes that intrinsic motivation increases the satisfaction and enjoyment of employees. Deci (1971) argues that there are two ways to measure intrinsic motivation. The first way is to measure the free choice. An example for the free choice is: do what you want to do and dont look to somebody else. The second way of measuring intrinsic motivation is the use of self-reports of interest and enjoyments of a specific activity. An example for the self-report method is a questionnaire under employees. This way of measuring intrinsic motivation is most often used for experimental studies (Ryan, 1982). Loewenstein (1999) agrees with Deci (1971). Loewenstein (1999) also found two ways of measuring intrinsic motivation. Loewenstein (1999) uses almost the same levels just like Deci (1971) does: Through a persons self-report of how interesting and enjoyable the task is. Through the behavioral measures of choice of, and amount of time engaged with, the task during a free-choice period in which there are no extrinsic rewards or incentives associated with choosing or engaging in the task. The two measurement methods of Loewenstein (1999) and Deci (1971) have a positive match. They both have found two ways to measure intrinsic motivation. During this paragraph the researchers mentioned two different ways of methods to measure intrinsic motivation. There can be said that these two measurement methods can be used for intrinsic motivation. If managers use these two methods they can find differences in intrinsic motivation at employees over a period. The outcomes can help managers to understand the intrinsic motivation of his employees. All of the researchers mentioned above agree with the concept that intrinsic motivation is motivation that comes from within a person. Intrinsic motivation also gives people more satisfaction and enjoy. When employees are intrinsically motivated their satisfaction and enjoyment for work increases. Another type of motivation is extrinsic motivation. The following paragraphs will analyze the concepts Extrinsic motivation Where intrinsic motivation is motivation from within a person, extrinsic motivation relates to external values. This is the mean difference with intrinsic motivation. Just like intrinsic motivation, a lot of research has been done about extrinsic motivation. Osterloh (2002) argues that extrinsic motivation occurs when employees are able to satisfy their needs indirectly, most importantly through a financial compensation. Money is a goal which provides satisfaction independent of the actual activity itself. Ryan and Deci (2000) argue that extrinsic motivation is motivation that gives an external value. External values can be salary, holidays and other working conditions. Researchers (Deci Ryan, 2000; Ryan Deci, 2007) have found three types of extrinsic motivation that can be ordered by the self-determination theory. The Self-determination theory (SDT) is a motivational theory that can be used for understanding individuals motivation (Deci Ryan, 2000; Ryan Deci, 2007). By doing research (Pelletier, L. G., Sarrazin, P. 2007) on this framework several studies have shown that extrinsic motivation is significantly related to performance (Boich-e, Sarrazin, Grouzet, Pelletier, Chanal, 2008). There are three levels in the self- determination theory. From lower to higher levels of self-determination, there are: external regulation, introjections and identification. The first level is the external regulation (Deci Ryan, 2000; Ryan Deci, 2007). This is behaviour that is regulated through external means like rewards and constraints. For example I study the night before exams, because my parents force me to. The second level is the introjected regulation (Deci Ryan, 2000; Ryan Deci, 2007). This level explains that the individual begins to acquire the reasons of the persons action. For example: I study the night before exams because thats what good students are supposed to do. The third and last level is Identification (Deci Ryan, 2000; Ryan Deci, 2007) Identification is the behaviour that becomes valued and judged important for the individual, and especially that it is perceived as chosen by oneself. For example: Ive chosen to study tonight because it is something important for me. Seen the analysis given above, there can be said that extrinsic motivation is motivation that points to external rewards like money and holidays. Managers can use this information for their employees. If a manager thinks that his employee isnt motivated enough, he can try to use external rewards to increase the employees extrinsic motivation. Effect of intrinsic and extrinsic motivation The previous paragraphs provided an analysis of intrinsic motivation and extrinsic motivation. The following paragraphs will provide information about the effect of intrinsic and extrinsic motivation. Effect of intrinsic motivation Researchers have found that a positive effect on a persons motivation increases the intrinsic motivation. Kraiger, Billings, Isen (1989) argue that a positive affect increases peoples enjoyment and interest of interesting activities. Another study found that the positive effect increases the valence of moderately desirable rewards (Erez Isen, 2002). Intrinsic motivation does not only affect the enjoyment and interests. It also affects the satisfaction and the performance during working hours (Erez Isen, 2002; Isen, Daubman, Nowicki, 1987; Staw Barsade, 1993). Vansteenkiste (2004) argues that people who are intrinsically motivated during reading material and other work activities achieve a better performance during performance appraisals than people who are extrinsically motivated. Through years scientists have found a positive effect between motivation and the intrinsic motivation. Scientists agree that satisfaction and performance increases the intrinsic motivation. If an employee in an organization is intrinsically motivated, his satisfaction and performance at work will increase. Managers can use this information about the effect of intrinsic motivation. Managers need to motivation employees intrinsically. If they do that the performance and satisfaction will increase (Staw Barsade, 1993). Effect of extrinsic motivation In the previous paragraph the effects of intrinsic motivation are discussed. Managers can use external rewards to increase the extrinsic motivation but what is the effect of those rewards on extrinsic motivation? This paragraph will provide information about the effect of extrinsic motivation on employees of an organization. Research on intrinsic motivation has demonstrated that extrinsic rewards can have a negative effect on intrinsic motivation (Daniel Esser, 1980; deCharms, 1968; Hess, Sandelands, 1980). As we see, this is an older study and researchers from the last decades have found new information about the effect of extrinsic motivation. A large amount of theories in social sciences have found a relationship between extrinsic motivation and human attitude. One of these theories is the Economic Exchange Theory (Constant, (2001) D, Kiesler, S (1998), and Sproull, L. 1994). This theory explains how people shape their attitudes by analyzing the consistencies of their own behaviour. The theory explains that people behave in a specific way because they feel that the consequences of their own behaviour will bring more rewards of a certain benefits and these rewards and benefits will offset their behaviour (Constant, (2001) D, Kiesler, S (1998)., and Sproull, L. 1994). According to Steel (2008) the extrinsic factors that can influence motivation can include circumstances, situations, rewards or punishment. Those influences can be tangible and intangible. Steel (2008) argues that tangible benefits are monetary rewards and prizes. Intangible benefits include recognition, adoration and praise. In the last decades a large amount of researchers researched the effect of extrinsic motivation. In the eighties and nineties researchers found a negative effect between extrinsic rewards and intrinsic motivation. Researchers agreed that for example: a higher salary had a negative effect on the performance or satisfaction. The last decades Kiesler (1998), Sproull (1994) en Steel (2008) have found a positive affect between extrinsic factors that influence extrinsic motivation. External rewards affect the extrinsic motivation. Conclusion To answer the question mentioned in chapter 1, a lot of research has been done during this chapter. During this chapter two different types of motivation were found called intrinsic and extrinsic motivation. The difference between intrinsic and extrinsic motivation is that intrinsic motivation comes from within a person and extrinsic motivation is based on the motivation of external rewards like money and power (Ryan and Deci 2000). Also the effects of intrinsic and extrinsic motivation are discussed. The outcomes during this research were that external rewards increase the intrinsic motivation and that intrinsic motivation influences the motivation and satisfaction. Many studies have found that an extrinsic award can subvert intrinsic motivation for specific tasks (Deci, Koestner, Ryan, 1999). Intrinsic motivation is considered to promote psychological feelings of personal interests but extrinsic motivation can boycott your interests. Extrinsic rewards are for example money and pow er (Deci, Koestner, Ryan, 1999). Both approaches of motivation (intrinsic and extrinsic) have an effect on the work motivation. An employee needs intrinsic motivation to create enough satisfaction and performance but he/she also needs extrinsic motivation to have enough power and to earn enough money. A combination of intrinsic and extrinsic motivation has a positive effect on the work motivation. Chapter 3: Job performance In an organization, job performance is essential for the turnover and profit of an organization. When the performance of the employees from an organization is low, the turnover and profit will be lower than the performance of the employees is high. Mangers can fire employees of the performance is too low and can promote employees if the performance is high. According to Greenhaus Parasuraman (1993) managers from an organization can have influence on the performance of employees. A good manager can make the performance of his employees better so that he does not have to fire employees. Task and contextual performance As mentioned in the introduction of this paper, job performance is the performance of a person at work. The last decades, researchers investigated job performance. First job performance was directly connected with task performance. Borman and Motowidlo (1993, 1997) expanded the domain of job performance to include contextual performance. Gellatly Irving (2001) agree with Borman and Motowidlo (1993, 1997). They found that job performance can be divided in task performance and contextual performance. Nowadays job performance can be divided in both task and contextual performance. According to Motowidlo, Borman, Schmit (1997) job performance is a dynamic multidimensional construct that refers to employees behaviors at work that directly or indirectly support organizational goals. Motowidlo (1997) also argues that job performance is a multidimensional construct which can be divided in two general levels. The first level is task performance and the second level is contextual performance . Williams Anderson (1991) argue that task performance is related to an employees contribution to organizational performance. Gellatyl Irving (2001) agree with Williamson Anderson (1991). Gellatyl Irving (2001) argue that task performance (in-role behaviour) is behaviour that contributes to the organizations core. More specifically, task performance involves behaviour that contributes to the organizations work environment (Borman Motowidlo, 1993). There can be said that task performance contributes directly to the work environment of an organization but how about the second level. The second level is contextual performance (extra-role behaviour). According to Borman Motowidlo (1993) contextual performance can be labeled as behaviour that does not directly contribute to organizational performance but contextual performance supports the psychological and social environment. Gellatly Irving (2001) argue that contextual performance (extra-role behaviour) helps form the organizational, social, and psychological conditions that support task activities. This is why contextual performance is also called extra-role behaviour. This behaviour is additional (extra) to an employees behaviour. Contextual performance helps employees to improve their performance by listening to other colleagues. Beal (2005) developed a theoretical substruction for examining changes in job performance. When examining dynamic performance individuals variability in performance will be measured over time. To find differences in job performance the manager has to select variables to measure the variability over time. A large amount of researchers argue that different variables can find variability over time. However, researchers do not agree which variables that will be. Job performance is an important variable in human resource management and organizational behaviour (Viswesvaran, Schmidt, Ones, 2005). A well known way to measure job performance is by gender. As we know, there are still lots of differences between male and female. An example for the differences between gender at work is payroll and promotion. McKay McDaniel (2006), Roth, Huffcutt, Bobko (2003) argue that there is a sufficient consistent that males receive a more favourable performance evaluation than females receive. Those higher performance evaluations can have a positive influence on promotions within an organization (Greenhaus Parasuraman, 1993). When employees of an organization receive higher evaluations they are a better candidate for promotion than someone who has a lower evaluation. Gender differences in measures of job performance can have influence on many other variables than only promotions. Another variable that can have influences is payment (Robertson, 1986). The differences in payment can have a negative influence on the trust and the satisfaction of an employee. When an employee of an organizati on is getting fewer loan than his colleague with the same job description the trust and satisfaction will decrease (King et al., 2010). A direct effect on loan is lateness, absenteeism, and turnover and achieves goals (Harrison, Newman, Roth, 2006). Influence on job performance The previous paragraphs discussed the task performance and contextual performance. Researchers found that task as contextual performance have influences on job performance. Task performance has a direct effect on the performance. Task performance or in-role behaviour is behaviour that contributes to the core of an organization. Contextual performance indirectly contributes to an organizations performance Gellatyl Irving (2001). Contextual performance (extra-role behaviour) influences the social environment of an employee and not the core of an organization like task performance. Not only task and contextual performance (or in-role or extra-role behaviour) affects the job performance. Stress is also a variable that influences the job performance. Researchers have found a relation between work stressors and job performance. According to Jex (1998) this relationship depends on different factors that determine the stressors. Cavanaugh (2000) found that challenge stressors are positively related with job performance but, hindrance stressors are negatively associated with job performance. A lot of people think that stress always has a negative relationship with job performance but this literature displays the opposite. Stress can be positive in the challenge manner but can also be negative if the stress forces you to do things (Cavanaugh 2000). An example of challenge could be that account managers should reach their goals/targets each month. During this period of time, account managers have positive stress because they want to reach their goals/targets. An example of a hindrance stressor is that somebody wants to book a room in a hotel but all rooms are booked and his flight is tomorrow. This is a hindrance stressor because the b ooker is hampered in his choice and this can have a negative effect on his performance. Stress has a lot to do with emotional feelings. Negative stress like hindrance can cause emotional exhaustion (Cordes Dougherty, 1993). Emotional exhaustion can be measured individually or in groups. During this paper, when we talk about emotional exhaustion, the individual emotional exhaustion is intended. Emotional exhaustion is the moment when employees feel emotionally overwhelmed and drained by their work (Leiter Maslach, 1988; Wilk Moynihan, 2005). Cordes Dougherty (1993) also add that a consequence of emotional exhaustion can cause a lack of energy and a bad feeling to an employee. Emotional exhaustion happens more frequently because organizations are asking more and more from their employees regarding responsibility and job performance (Klein Verbeke 1999). According to Lee Ashforth (1996) emotional exhaustion can have consequences for an organization. When an employee has an emotional exhaustion his withdrawal behaviour can increase. Babakus, Cravens, Johnston Moncrief (1999) add that it also can decrease the job performance. Managers prefer not that their employees get emotionally exhausted. According to Cohen Wills (1985) managers might identify targets more effectively for the emotional support of their employees to enhance the job performance. By using the conservation of resources (COR) theory, researchers can clarify how feelings of emotional exhaustion can influence job performance. According to the COR theory, individuals become more emotionally exhausted when they do not have enough resources to do their job. The resources may include participation in decision making and social support by managers (Cordes Dougherty, 1993). The COR theory also argues that work asks a lot from employees. When demands exceed resources job performance can be reduced (Babakus 1999). Hobfoll Freedy (1993) and Hobfoll (1998) both found a negative relation between emotional exhaustion and job performance by using the COR theory. Conclusion During this chapter two types of job performance are found called task and contextual performance (also known as in-role and extra-role behaviour). Task performance is the performance that has a direct contribution to the operations core. Unlike task performance, contextual performance does not contribute to the operations core but it supports the social environment. These are the two main differences between task performance and contextual performance. These two types of performance have an influence in the job performance and they can be measured. Research has found that different variables can influence the job performance. In this chapter gender and stressors are used to find out how performance can be measured. Nowadays there are still a lot of differences between male and female. Researchers have found that males receive better performance reviews than females. These performance reviews can have an effect on the motivation of that specific employee. Not only performance reviews but also stressors can have an influence on the job performance. There are positive and negative stressors. The negative stressors have a negative influence on the job performance. A negative stressors can for example be a black out. The positive stressors can have a positive effect on the job performance. When employees have a certain pressure to perform the stressors can be positive. The positive stressors can have a positive influence on the job performance. Chapter 4: The relationship between work motivation and job performance The previous chapters discussed work motivation and the job performance separately. This chapter will combine work motivation and job performance. For managers it is essential to know how they can motivate their employees and if this has an influence on the job performance. If there is a positive connection between work motivation and job performance, managers can use information from the analysis mentioned in chapter 2 (work motivation) to improve the job performance. As we know, if the job performance increases the profit and turnover will increase inherently. Work motivation and job performance Researchers have found a positive connection between intrinsic motivation and job performance. According to Humphrey (2007) intrinsic motivation is positively related to work performance, organizational commitment and job satisfaction. Job autonomy is also inherent to intrinsic motivation (Morgeson, Delaney-klinger, Hemingway, 2005). When employees are intrinsically motivated their satisfaction and enjoy is higher than an employee who is extrinsically motivated. Because of the intrinsic motivation of the employee, the autonomy will increase as well (Parker, 1998). This is for managers important data because, the higher autonomy of employees the more individuality the employee has. The manager can give more support to other employees by who the autonomy is lower. Another relationship between motivation and performance has been found. Researchers found a positive connection between intrinsic work motivation and task performance (Morgeson et al. 2005). If employees have a certain pleasure and satisfaction when they are at work, this will have a positive effect on the work activities. According to Grouzet, Vallerand, Thill Provencher (2004) individuals who are intrinsically motivated perform better in their tasks because they find their tasks enjoyable and interesting. They also find that participation in those specific tasks is like a reward (Deci et al. 1989). This is in line with the study of Morgeson (2005). Morgeson (2005) also found that the progress of the work activities is inherent to the job performance (Morgeson et al. 2005). Therefore the better the employees work activities the better the job performance. Finally, Gagnà © and Deci (2005) found that employees who have a high intrinsic motivation are more involved in their jobs and they have a greater goal attainment than employees who have a lower intrinsic motivation. According to Humphrey (2007) employees who are intrinsically motivation not only have a greater goal to attainment but, they also have a greater responsibility and volition to perform better and to be successful in the organization. The connections above are interesting because a large amount of researchers agree in the concept that intrinsic motivation influences the job performance positively. Not only employees who are intrinsically motivated have an influence on the job performance. Researchers have also found that employees who are extrinsically motivated have a positive effect on the job performance. A positive connection betw