THE RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION, JOB .

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THE RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION,JOB SATISFACTION AND CORPORATE CULTUREbyWANDA ROOSsubmitted in part fulfilment of the requirementsfor the degree ofMASTER OF SCIENCEin the subjectPSYCHOLOGYat theUNIVERSITY OF SOUTH AFRICASUPERVISOR: MS R VAN EEDENJUNE 2005

Student number:3381-990-4I declare thatThe relationship between employee motivation, job satisfaction and corporate cultureis my own work and that all the sources that I have used or quoted have beenindicated and acknowledged by means of complete references.Mrs W RoosJune 2005

ACKNOWLEDGEMENTSI wish to thank:-my supervisor, Mrs R Van Eeden, for her competent guidance;-the host organisation for the participation of their staff in the study;-SHL for the processing of the data and assisting with its interpretation;-RAU Statcon for the statistical analysis of the data;-my Mother for editing the research report in her professional capacity;-my parents, brother and sister for their wonderful encouragement andsupport;but most of all, my gratitude is to God, for carrying me through one of the mostdifficult undertakings of my life.

SUMMARYThe aim of the study was two-fold: Firstly, the relationships of job satisfaction withthe dimensions of employee motivation (energy and dynamism, synergy, intrinsicand extrinsic motives) and the domains of corporate culture (performance, humanresources, decision-making and relationships) was investigated.Secondly, therelationships of employee motivation, job satisfaction and corporate culture with anumber of demographic variables (age, gender, tenure, education level andseniority) were explored. The findings indicated a statistically significant three-wayrelationship between employee motivation, job satisfaction and corporate culture,within which several aspects of these constructs contributed more powerfullytowards the relationship than others. The age, gender, tenure, education level andseniority of employees were also shown to influence employee motivation, jobsatisfaction and corporate culture.

CONTENTSLIST OF FIGURESLIST OF TABLESSUMMARY1.CHAPTER 1: INTRODUCTION11.1Problem statement21.2Brief definitions of the employee motivation, job satisfaction andcorporate culture constructs41.3Organisational challenges in the marketing research industry51.4Objectives61.5Research paradigm71.6Research methodology81.7Layout of the dissertation91.8Chapter summary92.CHAPTER 2: THEORIES ON MOTIVATION, JOB SATISFACTIONAND CORPORATE CULTURE102.1Motivation122.1.1Historical development of the employee motivation concept122.1.2Definitions of employee motivation162.1.3Theories of motivation212.1.3.1Needs-based theories232.1.3.2Cognitive theories302.1.3.3Reinforcement theories342.1.4Motivation theories: Composite summary352.2Job satisfaction372.2.1Definitions of job satisfaction382.2.2The determinants of job satisfaction402.2.3Theories on job satisfaction46iv

2.2.4Job satisfaction: Composite summary482.3Corporate culture492.3.1Historical development of the corporate culture perspective502.3.2Definitions of corporate culture542.3.3Corporate culture : Composite summary582.4Relationships between the constructs of employee motivation, jobsatisfaction and corporate culture582.5Chapter summary633.CHAPTER 3: LITERATURE REVIEW ON THE RELATIONSHIPSBETWEEN EMPLOYEE MOTIVATION, JOB SATISFACTION ANDCORPORATE CULTURE3.164Relationships between demographic variables and employeemotivation and job satisfaction3.1.164Relationships between demographic variables and employeemotivation653.1.2Relationships between demographic variables and job satisfaction693.1.3Correspondence in the relationships between demographic variablesand employee motivation and job satisfaction3.274Relationships between employee motivation, job satisfaction andcorporate culture763.2.1Relationships between employee motivation and job satisfaction773.2.2Relationships between job satisfaction and corporate culture853.2.3The three-way relationship between employee motivation, jobsatisfaction and corporate culture933.3Chapter summary944.CHAPTER 4: RESEARCH METHODOLOGY954.1Research design954.1.1Research aims964.1.2Sample964.1.3Measurement instruments964.2Sampling and sample structure97v

4.2.1Sampling974.2.2Sample structure984.3Measurement instruments1004.3.1The Motivation Questionnaire (MQ)1004.3.2The Experience of Work and Life CircumstancesQuestionnaire (WLQ)1064.3.3The Corporate Culture Lite Questionnaire (CCQ Lite)1104.4Data collection and processing1204.5Data analysis and interpretation1214.6Chapter summary1225CHAPTER 5: PRESENTATION OF RESULTS1235.1Reliability of the measurement instruments1235.1.1Reliability of the Motivation Questionnaire (MQ)1245.1.2Reliability of the Experience of Work and Life CircumstancesQuestionnaire (WLQ)1265.1.3Reliability of the Corporate Culture Lite Questionnaire (CCQ Lite)1265.1.4Summary1285.2Descriptive statistics of the measurement instruments1285.2.1Descriptive statistics for the MQ1285.2.2Descriptive statistics for the WLQ1315.2.3Descriptive statistics for the CCQ Lite1325.2.4Summary1345.3The influence of demographic variables on employee motivation,job satisfaction and corporate culture1345.3.1Age1355.3.2Gender1365.3.3Job tenure / Years of service1395.3.4Education tions within and between dimensions, domains and scalesof the questionnaires145vi

5.4.1Correlations within the MQ1465.4.2Correlations within the WLQ1495.4.3Correlations within the CCQ Lite1505.4.4Correlations between the MQ, WLQ and CCQ Lite1525.4.5Canonical correlations between the MQ, WLQ and CCQ Lite1545.4.5.1Correlation between the MQ dimensions and WLQ scales1545.4.5.2Correlation between the WLQ scales and CCQ Lite domains1565.4.5.3Correlation between the MQ dimensions and CCQ Lite domains1585.4.6Summary1595.5Chapter summary1616CHAPTER 6: DISCUSSION OF RESULTS1626.1Reliability of the measurement instruments1626.2Descriptive statistics of the measurement instruments1626.3The influence of demographic variables on employee motivation,job satisfaction and corporate .3.4Education tions within and between the dimensions, scales anddomains of the questionnaires6.5172Relationships between employee motivation, job satisfaction andcorporate culture1736.5.1Relationships between employee motivation and job satisfaction1746.5.2Relationships between job satisfaction and corporate culture1756.5.3Relationships between employee motivation and corporate culture1776.5.4Summary1786.6Chapter summary179vii

7CHAPTER 7: CONCLUSIONS AND RECOMMENDATIONS1807.1Problem statement1807.2Brief overview of research methodology1817.3Conclusions and recommendations regarding the influence ofdemographic variables on, and the three-way relationship betweenemployee motivation, job satisfaction and corporate culture7.3.1The relationship between demographic variables and employeemotivation, job satisfaction and corporate culture7.3.2182182The relationship between employee motivation, job satisfaction andcorporate culture1867.3.3Summary1877.4Contribution of the study towards psychological and organisationalknowledge1887.5Limitations of the study1887.6Further research1897.7Chapter summary189REFERENCES190ANNEXURE AANNEXURE BANNEXURE CANNEXURE Dviii

CHAPTER 1INTRODUCTIONCompanies are made up of individuals organised in functional groups to attend to thebusiness at hand. Some companies are successful and some are not. In their studyof numerous American companies, Peters and Waterman (1982) found that a tight,culturally driven set of properties, which included rigidly shared values, invariablymarked the 43 successful companies they focused on. They pointed out that thecommitment of these companies’ employees to their organisations’ values andbeliefs constituted a crucial factor in the success of these companies. Becker (1975in Peters & Waterman, 1982) provided some theoretical underpinning to thisphenomenon, by stating that people are motivated by an essential “dualism”, whichsimultaneously drive them to need to be conforming members of a winning team,and to want to be stars in their own right. From Peters and Waterman’s (1982) workit appeared that winning organisations display cultures that satisfy thesedichotomous needs of the individuals who together make up those companies.The idea of the centrality of culture to organisations has been given considerablecredence by the highly successful application of the Mc Kinsey 7-S model ofcorporate excellence in business management.The model was developed byPeters and Waterman (1982), and placed culture (shared beliefs) in the centre ofwhat they believed to be seven crucial factors to organisational success. The otherfactors included structure, systems, style, staff, skills and strategy. Numerous otherauthors, such as Alvesson (2002), Alvesson and Berg (1992), and Cooper,Cartwright and Earley (2001) regard the cultural perspective as an inspiring way tostudy and understand organisational functioning.Taking its inspiration from the work of authors such as those mentioned above, thisstudy aimed to explore the marketing research type of organisation from a culturalangle, with the specific purpose of assessing the relationship between anorganisation’s culture and the levels of job satisfaction and work motivation1

experienced by those who ultimately render it successful or unsuccessful, namely itsemployees.1.1Problem statementA myriad of studies have been conducted on employee motivation, job satisfactionand corporate culture, as well as on various combinations thereof. As far as couldbe ascertained, the relationship between all of these constructs has, however, notbeen reported on in the same study as yet. In this regard, this study aimed to add tothe body of knowledge in this particular domain of organisational psychology.According to Schofield (1998), an authoritative study conducted by the SheffieldEffectiveness Programme (a joint research project between the Centre ForEconomic Performance at the London Stock Exchange and the Institute For WorkPsychology at the University Of Sheffield) between 1991 and 1998 has showndecisively that the way people are managed has a powerful impact on bothproductivity and profitability. The study, which included measurement of levels of jobsatisfaction and organisational commitment of employees of 67 firms, found that fivepercent of the profitability variance, and 16 percent of the productivity variancebetween companies may be attributed to corresponding variance in job satisfactionlevels between their employees.Furthermore, differences in corporate cultureaccounted for ten percent and 29 percent of variance in profitability and productivityrespectively between firms.This study demonstrated the importance of jobsatisfaction, employee motivation and commitment, and corporate culture inorganisational capability and effectiveness. According to Watson (1994) businesshas come to realise that a motivated and satisfied workforce can deliver powerfully tothe bottom lorganisationalcompetitiveness it is crucial for any organisation, and particularly for those indeveloping countries with limited skills resources, such as South Africa, to ensurethat it develops and retains a loyal, dedicated, committed and able workforce on aconsistent basis.A loyal, dedicated, committed and able staff complement2

presupposes employees who are satisfied with the work that they do, and with theculture of the organisation they are employed by, and who are consequentlymotivated to continue their relationship with that organisation.A great manyemployees all over the world do not enjoy this level of job satisfaction and workmotivation, and as a result often opt for seeking alternative employment where theymay be able to experience a higher degree of job satisfaction. Such actions have anadverse effect on an organisation’s ability to be profitable and successful over anextended period of time. Finck, Timmers and Mennes (1998) emphasised that onlywhen employees are excited and motivated by what they do, will businessexcellence be achieved.A variety of factors motivate people at work, some of which are tangible, such asmoney, and some of which are intangible, such as a sense of achievement (Spector,2003). Although employees derive satisfaction from their work, or places of work, fordifferent reasons, this study was concerned specifically with the investigation of therelationship between levels of satisfaction and factors associated with the culture ofthe organisation, and with relating this relationship to the motivation of employees atwork. The primary point of departure is that the success of any organisation isheavily dependent on the inputs of its workforce, and that such inputs aredetermined to a large extent by personal characteristics, and by those facets ofpeople’s work environments that motivate them to invest more physical and mentalenergy into their work. In this way the organisation’s objectives are pursued andmet. Motivation and job satisfaction are therefore regarded as key determinants oforganisational success, both of which are influenced by aspects of corporate culture.A thorough understanding of the nature and significant sources of employeesatisfaction and motivation, insofar as these concepts are related to corporateculture, will enable employers to effect the required positive strategic changes, suchas adapt their strategic human resource and organisational development planningand implementation towards optimal employee loyalty and retention. Examples ofsuch strategies may include selecting incumbents with a high degree of potential fitwith the organisation’s culture, and to adapt certain of its human resource policiesand practices, where these have been shown to hamper employee motivation andsatisfaction.3

1.2Brief definitions of the employee motivation, job satisfaction andcorporate culture constructsAccording to Pinder (1998 in Ambrose & Kulik, 1999) work motivation may beregarded as a set of internal and external forces that initiate work-related behaviour,and determine its form, direction, intensity and duration. The concept relates to thework context specifically, and includes the influence on work behaviour of bothenvironmental forces, and those inherent in the person. In the workplace, workmotivation presents as an invisible, personal and hypothetical construct thatmanifests itself in the form of observable, and therefore measurable, behaviours.Sempane, Rieger and Roodt (2002) hold that job satisfaction relates to people’s ownevaluation of their jobs against those issues that are important to them.Sinceemotions and feelings are involved in such assessments, employees’ levels of jobsatisfaction may impact significantly on their personal, social and work lives, and assuch, also influence their behaviour at work.Much controversy exists regarding the general nature of corporate culture as aconstruct (Cooper et al., 2001) and as a result several different definitions of theconcept have been formulated, each from the unique perspective of its author.Schein (1985 in Cooper et al., 2001) offered a rather comprehensive and complexdefinition. He described corporate culture as the pattern of basic assumptions that agiven group has invented, discovered or developed in learning to cope with itsproblems of external adaptation and internal integration, and that have worked wellenough to be considered valid, and therefore to be taught to new members as thecorrect way to perceive, think and feel in relation to these problems.Alvesson(2002) supported this view by stating that a set of common, taken for granted ideas,beliefs and meanings among employees is necessary for continued organisedactivity, as it obviates the need for continual interpretation and re-interpretation ofmeanings.4

1.3Organisational challenges in the marketing research industryWith regard to employee motivation and job satisfaction, the typical South Africanmarketing research environment poses several significant challenges to employers.It is by nature a fast-paced and highly pressured environment, due to a high degreeof intricate process interdependence between work teams, stringent deadlines, highwork volumes, and long work hours (Bard & Moore, 2000). In addition, marketingresearch analysts are also required to demonstrate a combination of analytical,writing and people skills, on top of a propensity for both a detailed and a conceptualapproach to their work (Deetlefs, 2003). Very few individuals are able to combinesuch often incongruent but essential attributes comfortably, which may impact ontheir work satisfaction and motivation. The necessity for performing consistently tointernal and external expectations in such a broad fashion is in itself highly stressful.In addition, the marketing research arena is not generally associated with highlylucrative employment benefit packages that offer suitable reward, especially withrespect to the bulk of employees, who operate on the lower rungs of suchorganisations. All of these factors add to the difficulty that employers in the SouthAfrican marketing research industry have in recruiting suitable employees,developing them to levels where they make a significant contribution to theprofitability of the organisation, and ultimately in retaining them as intellectual andbusiness capital over the long term.Apart from the potential impact on the organisation, loyalty and retention of valueadding human resources in the marketing research arena also have economicimplications on both a national, and increasingly on an international level.Thisfollows from the fact that marketing research in South Africa is a huge, fast growingand highly competitive industry upon which several other industries rely for theirshort- and long-term strategic and operational directives.In addition, more andmore South African marketing research companies are being commissioned toconduct major studies by, or in association with, international organisations. In orderto be able to perform to international standards, these companies need to have theiroperations running smoothly on a consistent basis, but perhaps more importantly,require a professional, well trained and optimally productive human resource base.5

The study at hand was based on a sample of 118 employees of a prominent SouthAfrican marketing research company, who have been in its employ for at least sixmonths. The sample represented a wide range of selected demographic variables,and included the entire scope of seniority levels in the company, from directors tojunior researchers.It was deemed important to assess whether significantdifferences existed between the subgroups of employees, in their experience of workmotivation and job satisfaction, and their perceptions of the organisation’s corporateculture.The main objective was to investigate the concepts of job satisfaction,employee motivation and corporate culture as they related to this particularenvironment, to determine whether any significant differences were evident in theperceptions and experiences of the different subgroups of employees, and whetherany significant relationships could be drawn between the dimensions of employeemotivation, job satisfaction, and the perceived corporate culture of the organisation.Although this study sampled employees in the marketing research field specifically, itis believed that its findings could be equally relevant to most other industries whereorganisational performance is largely dependent on the performance delivery by itsstaff. Despite their individual differences, the motivation theories show that by andlarge, people at work, wherever that may be, are motivated and satisfied by many ofthe same, or similar key characteristics of the workplace.1.4ObjectivesAs mentioned earlier, the study set out to investigate two sets of relationships,namely that between the constructs of employee motivation, job satisfaction andcorporate culture, as well as the relationships between these constructs and thedemographic variables of age, gender, tenure, education level and seniority.6

1.5Research paradigmThe study adopted a quantitative approach. Mouton and Marais (1988) have citedseveral characteristics of a quantitative research paradigm. With reference to theoperational specificity of the concepts upon which the research is based, precise andunambiguous definition is required, in addition to operationalisability, to makeaccurate measurement possible. As main guiding elements of the research, one ormore explicit hypotheses are stated upfront, and in such a manner that they may berejected or accepted, depending on the results of the study. The literature surveyindicated a large number of possible hypotheses, and the current study consequentlyopted for a broader objective providing for all options.Quantitative researchobservation may be characterised as “objectifying”, in contrast to the subjectifyingobservation commonly applied in qualitative research, in that the researcher remainsexternal to the process, and that observations are pre-planned and highly structuredaccording to anticipated outcomes, within a context that is controlled as far aspossible.A quantitative research methodology, as opposed to a qualitative approach, wasselected for this project, for a number of reasons.Firstly, the research wasconcerned with describing the concepts at hand and the relationships between them,and not with exploring, with the purpose of understanding surplus meanings of theseconstructs. Secondly, the nature of the main objective of the research, namely toinvestigate relationships between a number of clearly defined and operationalisedconstructs, called for precise measurement of these constructs, as they were beingexperienced and perceived by a representative sample of the target population ofmarketing research employees. Thirdly, the research pursued an explicitly statedobjective, which was formulated at the start of the research process. This objectiveguided the research process. Finally, considerations surrounding convenience, timeand cost also influenced the decision to adopt a quantitative research approach.The use of a survey research technique to obtain the required data was consideredmore convenient, as well as more time- and cost-effective against the background ofthe researcher’s specific circumstances than a qualitative approach.7

1.6Research methodologyIn brief, the quantitative research process unfolded as follows.The central aim was set, namely to investigate the relationship between theconstructs of job satisfaction, employee motivation and corporate culture, andbetween the demographic profiles of the respondents and their levels of motivation,job satisfaction and corporate culture perceptions.After determination of the mostappropriate segmentation for the study, with the assistance of the Human ResourcesDepartment of the organisation, three assessment instruments were selected andadministered to a sample of 118 employees (87% of the total staff complement) overa period of seven weeks.The assessment instruments included the MotivationQuestionnaire (MQ), the Experience Of Work And Life Circumstances Questionnaire(WLQ), and the Corporate Culture Questionnaire (Lite) (CCQ Lite).Theseinstruments were applied to assess the constructs of work motivation, jobsatisfaction and corporate culture respectively.A maximum of 20 personnelparticipated in each of ten assessment sessions that lasted up to 90 minutes each.The MQ and CCQ answer sheets were computer-scored by Saville and HoldsworthLimited (SHL), who designed and supplied the instruments.The WLQ answersheets were captured and scored by the researcher. The WLQ was developed bythe Human Sciences Research Council (HSRC). The data from all three instrumentswas consolidated in MS Excel format by SHL in preparation for analysis. In additionto a comprehensive set of reliability and descriptive statistics on the threemeasurement instruments, Pearson and canonical correlations were performed byRAU Statcon to analyse and interpret the data.ANOVA and the T-test forindependent means were used to determine significant differences between thedemographic groups selected for the study. The results were interpreted against thetheoretical background pertaining to the constructs around which the study revolved,and were referenced to the literature in each case. The inferences made followed aninductive reasoning approach, since the generalisations made stemmed from dataextracted from a relatively small sample.8

The findings of the research study are presented in this dissertation, which has beencopied to the host organisation, as well as to the two organisations that provided theassessment material, namely SHL and the HSRC. An article on the project has alsobeen prepared for publication.1.7Layout of the dissertationThe remainder of the dissertation is structured as follows:Chapter 2:Theories on motivation, job satisfaction and corporate cultureChapter 3:Literature review on the relationships between employee motivation,job satisfaction and corporate cultureChapter 4:Research methodologyChapter 5:Presentation of resultsChapter 6:Discussion of resultsChapter 7:Conclusions and recommendationsReferencesAnnexures1.8Chapter summaryThis chapter has provided a brief introduction to, and overview of the research study.The context and rationale of the study were set, and the constructs at hand weredefined by means of reference to the literature. The chapter was concluded by adescription of the objectives and methodology of the study. In Chapter 2 the theoryunderlying the constructs at hand are presented and discussed.9

CHAPTER 2THEORIES ON MOTIVATION, JOB SATISFACTION AND CORPORATECULTUREAccording to Khan (1997), in the current business environment, organisations inall industries are experiencing rapid change, which is accelerating at enormousspeed.To be successful in a borderless, competitive global environment,companies must be sure to work hard on especially the people side of theirbusiness.This view is supported by Finck et al. (1998), who stated thatcompanies must recognise that the human factor is becoming much moreimportant for organisational survival, and that business excellence will only beachieved when employees are excited and motivated by their work. In addition,difficult circumstances, such as violence, tragedy, fear and job insecurity createsevere stress in employees and result in reduced workplace performance (Klein,2002). South Africa is no stranger to these types of daily stressors, and Swift(1999) therefore emphasised that corporate survival in present day South Africahinges on management ability to motivate and inspire the workforce to pursueand take pride in both their own and corporate achievements.To this end,successful people management is especially important. There is much empiricalevidence that effective people management and behaviour drive organisationalprofitability (Riskin, 2002).The issue of what motivates employees has set a practical and theoreticalagenda for organisational psychologists since the start of the 20th century(Haslam, Powell & Turner, 2000). Baron (1991, p.9) described motivation as“one of the most pivotal concerns of modern organisational research”.VanNiekerk (1987) emphasised this point by stating that productivity is a function ofboth the motivation and the ability of an employee.equals zero, so does productivity.Therefore, if motivationSince employee performance is a jointfunction of ability and motivation, one of management’s primary tasks, therefore,10

is to motivate employees to perform to the best of their ability (Moorhead &Griffin, 1998).In the field of organisational psychology, work motivation is approached fromseveral angles.For example, some researchers feel work motivation studyshould start with an examination of the values of employees, since their valuesdetermine their needs, and their needs ultimately determine their behaviour(Osteraker, 1999). A crucial problem for others in contemporary organisationtheory and research is how best to conceptualise and assess individualdifferences in motivational tendencies (Kanfer & Ackerman, 2000).Sempane et al. (2002) noted that organisations represent highly complex socialstructures because of their dynamic nature. Employees, who are role players inthem, render them competitive through their involvement and commitment. Therelationship between organisation and employee is characterised by a high levelof mutual interdependence, as both parties impact on the other’s potential forsuccess. Employee motivation and job satisfaction become crucial elements inthis relationship. Extensive research has shown that employee motivation andjob satisfaction are not brought about in isolation, but rather respond toorganisational variables such as structure and working conditions (Schneider &Snyder, 1975). According to Sempane et al. (2002) organisational culture maytherefore be promoted to ensure job satisfaction, with the ultimate aim ofreaching the organisation’s goals. The starting point is the measurement of theorganisation’s culture.Corporate culture has emerged as a central theme in organisational psychologyin recent years, and its initiatives are widely recognised as a legitimate source ofcorporate success (Bagraim, 2001). The term corporate culture has become adominant feature in popular and academic literature since the 1980s, where it isoften positioned as important in corporate competitiveness, in that a ‘strong’culture ensures greater employee commitment, improved quality, more efficient11

production, and increased responsiveness to customer needs (Peters &Waterman, 1982). The authors defined a strong culture as that where a highlevel of cultural alignment exists a

relationship between employee motivation, job satisfaction and corporate culture, within which several aspects of these constructs contributed more powerfully towards the relationship than others. The age, gender, tenure, education level and seniority of employees were also shown to influence employee motivation

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