Motivation And Its Impact On Employee Loyalty And Commitment: A .
Motivation and its Impact on Employee Loyalty and Commitment: A Qualitative AnalysisMarquita Chanel SmithTrinity Washington UniversityI have adhered to the university policy regarding academic honesty in completing thisassignmentSubmitted to Dr. Kelley Wood on behalf of the faculty of the School of Business and GraduateStudies in partial fulfillment of the degree requirement for the Master of Science Administrationin Organizational Development and Human Resource ManagementSpring 2015
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT2AbstractMotivation, employee loyalty and commitment are crucial to the success of any business.Regardless of one’s likes and dislikes, every employer has to stay on top of the needs of theiremployees in order to limit high rates of employee turnover. Although it is at the discretion ofthe employee to choose how long they will remain with one employer, it is the employer who hasthe ability to impact such decisions. This study will provide insight into what the averageemployee feels is important and how the presence or absence of intrinsic and or extrinsic factorscan impact their motivation to remain loyal and committed to their current company,organization, association, job or position. Most employees remain loyal and committed to theiremployers because of diverse intrinsic and extrinsic motivational factors which include belief inthe mission and vision; due to job security; because of job satisfaction, because of the workenvironment; promotion potential; pay and benefits; and recognition.Through qualitativeinterviews, I examined employee perceptions of job satisfaction and whether the presence orabsence of intrinsic and or extrinsic incentives or factors might impact their motivation to remainloyal and committed to an employer.Through descriptive coding, pattern coding andtriangulation, I was able to cluster similar words or phrases into categories or themes, whichrevealed that employees place high value on intrinsic and or extrinsic factors. Though thesefactors relate to the employee’s ability to have a job that is fulfilling, gratifying, convenient andflexible, financially stable and allows them to help others, it also encompasses their employer’sability to provide a positive work environment that has advancement opportunities, and learningand enrichment programs.Keywords: loyalty, employee loyalty, commitment, employee commitment, motivation,work motivation, intrinsic motivation, and extrinsic motivation.
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT3Table of ContentsPageIntroduction . 5Statement of the Problem . 5Purpose and Significance of the Study . 5Theoretical Perspective . 6Definition of Key Terms . 6Research Method . 8Assumptions and Limitations . 8Summary. 9Literature Review . 10Motivation . 11Maslow’s Hierarchy of Needs Theory . 12Herzberg’s Motivator-Hygiene Theory . 13Employee Commitment . 15Organizational Commitment . 17Loyalty . 18Job Satisfaction . 19Theoretical Construct . 21Summary. 23Research Methods . 25Research Questions . 25Setting . 27Population . 27Ethical Considerations . 28Research Design . 29Interview Instrument . 30Data Analysis Strategy . 32Summary. 34Findings . 35Participants . 35
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT4Data Analysis and Coding . 40Summary. 47Discussion. 48Research Questions . 48Conclusions . 51Recommendations and Implications. 53Summary. 54References . 56Appendices . 62Appendix A: Recruitment Letter . 62Appendix B: Informed Consent Form . 63Appendix C: Interview Instrument for Non-Retirees . 65Appendix D: Interview Instrument for Retirees . 67List of TablesTable 1. Descriptive Categories, Themes, or Findings . 42Table 2. Meta-codes: Factors that impact motivation . 44List of FiguresFigure 1. The theoretical construct model of motivation, loyalty, and commitment . 23Figure 2. Background of Participants . 35
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT5IntroductionEmployee loyalty and commitment is the cornerstone to any organization’s success(Shahid & Azhar, 2013). Without employee loyalty, commitment, and the ongoing work they dothat is critical to a business’s infrastructure, organizations and companies alike would not be ableto achieve its mission, vision, or goals. The level of motivation and commitment an employeeexhibits towards one’s organization varies from employee to employee. The outlook one hasabout their employer, their work, their peers, salary, recognition or promotion potential cangreatly impact an employee’s motivation, loyalty and commitment. In consideration of theaforementioned prospective factors, the focus of this research will be on motivation and itsimpact on employee loyalty and commitment.Statement of the ProblemWorkplace motivation is a widespread topic that everyone can take a stance on. Whetherit is good, bad, positive or negative each factor that either aids in or helps diminish employeemotivation can greatly impact one’s loyalty and commitment. In order to prevent qualified,committed and talented employees from leaving, employers need to consistently recruit andretain. In order to recruit and retain good employees, employers need to reassess their currentemployee engagement practices so they can implement new strategies that will positively impactcurrent and prospective employees. As such, this study will provide insight into what intrinsicand or extrinsic factors the average employee feels is important and how such factors can impacttheir motivation to remain loyal and committed to their company, organization, association, jobor position.Purpose and Significance of the StudyThe purpose of this study is to examine whether employee motivation reflects how loyaland committed they are to their employer. Employers will receive insight and feedback on how
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT6an employee feels and what an employer can do to either improve or maintain an employee’smotivation. In general, the information gathered from this study will provide employers withvital information that might be used to establish or improve upon an employer’s employeerecognition program, professional development opportunities, and or employee merit basedbenefits programs.Theoretical PerspectiveAccording to Bernard, Mills, Swenson and Walsh (2005) motivation is theorized as a“purposeful behavior that is ultimately directed toward the fundamental goal of inclusive fitness”(p. 129). Bernard et al., (2005) propose that due to the randomness of behaviors and interests, anindividual’s differences may be guided by motives. Based on this theory, the study will attemptto define what guiding factors or motives, employees use to motivate themselves and whatimpact if any it may have on the feelings of loyalty and commitment shown to one’s employer.Every employee has differing motivational factors that can potentially impact their degree ofloyalty and commitment. As such, I theorize that if an employee is satisfied with his or her workenvironment, then he or she will be loyal and committed to one’s employer. Similarly, if anemployee is motivated to achieve a goal, receive recognition, or has an expectation to receive apromotion, he or she in turn will also be loyal and committed to one’s employer.Definition of Key TermsLoyalty as defined by Logan (1984) is “a strong tie that binds an employee to his [or her]company even when it may not be economically sound for him [or her] to stay there” (p. 150).Employee Loyalty is “is a deliberate commitment to further the best interests of one’semployer, even when doing so may demand sacrificing some aspect of one’s self-interest beyondwhat would be required by one’s legal and other moral duties” (Elegido, 2013, p. 496).
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT7Commitment, according to Anderson and Weitz (1992) and Morgan and Hunt (1994),“is a long-term relational perspective [that] encourages parties to resist the short-term benefitsoffered by other [companies] in favor of the benefits associated with remaining in a relationship”(as cited in Dagger, David & Ng, 2011, p. 276).Employee Commitment has three levels. If an employee falls within the affectivecommitment level, they identify with and are emotionally attached to their organization so muchso that they remain with the same employer because they want to (Pepe, 2010). If an employeefalls within the continuance commitment level, they remain with the same employer fornumerous years because they are aware of the expenses connected with leaving, so they chooseto remain not because they want to, but because they need to (Pepe, 2010). Finally, if anemployee exhibits normative commitment, they opt to stay with an organization, not becausethey want to, or because they have to but it’s alternatively because they feel they ought to (Meyer& Allen, 1991 as cited in Pepe, 2010).Motivation can be “defined as purposeful behavior that is ultimately directed toward [a]fundamental goal ” which “may be measured in terms of individual difference in covaryingcategories of behaviors and interest” (Bernard, Mills, Swenson & Walsh , 2005, p. 129).Work Motivation “is the steering of human activity towards a desired objective bymeans of motives generated internally in a person or in his or her environment, on the basis ofhis or her needs” (Peklar & Bostjancic, 2012, p. 57).Intrinsic Motivation “refers to a desire to work primarily because the work itself isinteresting, challenging and satisfying to the person ” (Cantania & Randall, 2013, p. 32).Extrinsic Motivation occurs when an employee “performs an activity with the intentionof attaining some separable consequence, such as receiving an award, avoiding guilt, or gainingapproval” (Deci, Ryan, & Williams, 1996 as cited in Dysvik & Kuvaas, 2013, p. 413).
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT8Research MethodA qualitative study will be used to explore how motivation might impact the loyalty andcommitment an employee shows toward an employer. By utilizing face-to-face interviews withopen-ended and semi-structured qualitative questions, I will seek to understand what intrinsicand or extrinsic factors motivate employees and how their motivation or lack thereof impacts theloyalty and commitment they feel towards their company, organization, or association.Assumptions and LimitationsThis study will examine how intrinsic and extrinsic motivational factors impact employeeloyalty and commitment. Although the study does not examine external economic factors orpersonal situational influences that may impact an employee’s decision to stay or quit, this studywill however draw on previous literature to reveal what attributes describe an employeecommitted and loyal to one’s employer and what if anything should an employer expect from theaverage employee who is loyal and committed. Participation in this study is restricted toemployees who are 18 years of age and over, has previous or current work experience with thesame employer for two (2) or more consecutive years, and who are willing to voluntarilyparticipate. This study will be limited to the analysis of employees who have two or moreconsecutive years with the same employer. Individuals can be currently working or currentlyretired. If individuals do not meet the aforementioned criteria, they will be excluded from thestudy.Due to potential time constraints and the limited sample in which participants will befound, there is a possibility that the size of my sample may not amount to or be greater than 12participants. Simply put, due to the time constraints and the small size of my sample, thefindings of this study will only be used to provide general information on what motivates theaverage employee to remain with the same employer for more than five years.
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT9SummaryThis chapter provides the reader with an overview of the research topic, a statement ofthe problem, the purpose and significance of the study, the theoretical perspective, and theresearch methodology, definitions of key terms, delimitations, and limitations of the study.Using the aforementioned sections as a starting point, the reader will begin to understand whatmotivation is and how it can play a role in the level of loyalty and commitment an employee hastoward an employer. Throughout the subsequent chapter, I will do a review of related research,discuss my qualitative theoretical construct and describe the theoretical framework in an effort toexpose the audience to what intrinsic and extrinsic factors can impact an employee’s loyalty andcommitment.
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT10Literature ReviewIn the following literature review I discuss the attributes of employee commitment andloyalty to an employer, and what if anything should an employer expect from an employee whois loyal and committed. Regardless of size, all companies, organizations, associations and orbusinesses aim to fill their workforce with employees who are loyal and committed (Pepe, 2010).Individuals, who perform their duties because of their loyalty, do so because they are committedto doing the work and achieving the mission and vision of their employer. Their actions,intentions, and motives are pure and untainted (Pffeiffer, 1992). For example, according toPffeiffer (1992), loyal and committed employees do not perform tasks “in order to promotepersonal gain”, but instead according to Michalos (1981) as referenced by Pffeiffer (1992)complete tasks because they endeavor to promote and advance the interests of their employer (p.535).According to Peklar and Bostjancic (2012) work motivation is the steering force behindwhether or not an employee opts to promote or advance personal or professional interests. Workmotivation according to Peklar and Bostjancic (2012) “is the steering of human activity towardsa desired objective by means of motives generated internally in a person or in his or herenvironment, on the basis of his or her needs” (p. 57). Regardless of intention, many employee’swill base their decisions or choices on their personal or professional need to either achieve agoal, promotion potential, job satisfaction, and or they seek recognition for the work they do.Regardless of the position one holds, the title one possess, or the salary one earns,workplace motivation is an important and engaging topic that involves everyone. Whether youare ethical, unethical, positive or negative, the behavior of every employee regardless of rank orstature is influenced either because of intrinsic or extrinsic factors. As a result of the previouslymentioned reasons, I will investigate how the presence of motivation, whether intrinsic or
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT11extrinsic can impact the degree of loyalty and commitment an employee shows an employer.Although the behavior of employees can be influenced by intrinsic or extrinsic factors, Ihypothesize that more often than not, the reason an employee chooses to remain loyal andcommitted to an employer for several years, is due to the presence or possibility of attainingextrinsic factors such as receiving a promotion; getting an increase in pay, the existence of goodbenefits, and the potential to receive positive recognition.In general, this study will provide insight into what the average employee feels isimportant and how the presence or absence thereof can impact their motivation to remain loyaland committed to their current company, organization, association, job or position. Throughoutthe literature, motivation, intrinsic motivation, extrinsic motivation, employee commitment,loyalty, and job satisfaction have all been described and defined in various ways. The followingdescriptions and definitions are some of the existing characterizations of what theaforementioned terms denote.MotivationMotivation, regardless of reason is an important driver used by employees. In fact,according to Mitchell (1982) motivation is so important that it is often recognized as a“psychological process that causes the arousal, direction, and persistence of voluntary actionsthat are goal directed” (p. 81). Consequently, although Park and Rainey (2012) and Peklar andBostjancic (2012) assert motivation can be intrinsic and extrinsic, Clark, Varadaraajan and Pride(1994) on the other hand theorize motivation can be used to attain a goal (as cited in Ward,1997). Motivation that is intrinsic occurs when people participate in an activity when they trulyfind them enjoyable and interesting, whereas extrinsic motivation arises when individuals engagein activities where they anticipate receiving a reward or other incentives (Eccles & Wigfield,2002).
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT12According to Wiley (1997) today’s research on human motivation is guided by thefollowing acknowledged assumptions and due to fact that (1) motivation is contingent upon theprecise examination of personal, task, and environmental characteristics that have the ability toinfluence the behavior and job performance of an employee; (2) motivation is not a permanentattribute; it can change and be influenced by personal and situational factors and (3) motivationaffects behavior not performance. Similar to Wiley (1997) are Kreitner and Kinicki, (1995) whostated that “motivation is [a] psychological force that directs employees’ behavior towardsachievement of organizational goals ” (as cited in Dar, Bashir, Ghazanfar, & Abrar, 2014, p.230).Maslow’s Hierarchy of Needs TheoryAbraham H. Maslow’s (1943) Hierarchy of Needs theory provides insight into thefundamental needs of human beings (Conforti, 1972). According to Maslow (1943), in order forone to achieve self-actualization where they “find fulfillment and realize [their] own potential”,one must first meet the primary needs associated with psychological, security, social, and selfesteem (as cited in Brown & Cullen, 2006, p. 100). During level one of the psychological needstage individuals must be able to meet the physical requirements for survival such as eating,sleeping, drinking and taking care of oneself (Conforti, 1972; Brown & Cullen, 2006). Onlyafter a person is successfully able to survive and provide for oneself, are they able to progress tolevel two of the security needs, which is comprised of one being able to “feel physically andemotionally safe in [the] present and the future” (Conforti, 1972, p. 11). Once people feelsecure, they are able to advance to level three, which consists of one’s social needs. Throughoutthe social needs level, people must be able to socialize and communicate with others (Conforti,1972). Subsequent to the social needs level is the self-esteem needs level. During level four ofthe self-esteem needs, individuals should be able “to respect one’s self and receive respect from
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENTothers” (Conforti, 1972, p. 11).13Lastly, only after successfully fulfilling the needs in thepreviously mentioned four levels can one reach their full potential and become level five selfactualizers (Conforti, 1972).According to O'Connor and Yballe (2007), it is only when someone reaches level fiveand achieves self-actualization are they then able to extend themselves to the point where theynot only seek to improve the well-being of their personal or professional groups, but also thewell-being of their communities.In general, because self-actualizers are “guided by theunderstanding [they have] of their own unique talents, preferences, values, and meaning”, theyare able to make choices “in what to do and how to do it” (O'Connor & Yballe, 2007, p. 748).Herzberg’s Motivator-Hygiene TheoryAccording to Herzberg (1959) the following two factors influence people’s motivation atwork; (1) hygiene factors which can discourage or demotivate people when they are off-puttingor inappropriate and (2) “motivators that sustain effort” (as cited in Bassett-Jones & Lloyd, 2005,p. 932). According to Bassett-Jones and Lloyd (2005), Herzberg’s (1959) two-factor theorysuggests that individuals remain in a neutral state between satisfaction and dissatisfaction andcan only be swayed in the direction of increased satisfaction when there is “an improvementin pay, supervision, and prospects for [a] promotion ” (Bassett-Jones & Lloyd, 2005, p. 932).Conversely, when there is decline in pay; when supervision is bad; or when the prospects of apromotion do not exist, individuals will move from feelings of neutrality to feelings ofdissatisfaction (Bassett-Jones & Lloyd, 2005).Motivation according to Herzberg “is like an internal self-charging battery” whichrequires energy and desire (Bassett-Jones & Lloyd, 2005, p. 933). According to Herzberg(1959), in order “for an employee to become motivated, the energy of desire to move must comefrom within” (as cited in Bassett-Jones & Lloyd, 2005, p. 933). Employees who seek upward
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT14mobility in an organization or an increase in pay have to be willing to put in the work (energy)and remain dedicated (desire), regardless of the situation. In general, if employees want toachieve satisfaction, they must be motivated not because of “externally-stimulated incentives”,but because of “internally-generated drives” (Bassett-Jones & Lloyd, 2005, p. 933).Intrinsic Motivation. Intrinsic motivation occurs when an individual does something notbecause there may be a reward at the end, but because they find satisfaction in the activity itself(Park & Rainey, 2012; Eccles & Wigfield, 2002). In fact, according to Deci (1975) and Deci andRyan (1985), not only can intrinsic motivation be “based on positively valued (rewarding)experiences that a person gets directly from their work tasks” (as cited in Quigley & Tymon,2006, p. 527), but it can also be a passionate or positive feeling an employee can experience as aresult of the work they do (Quigley & Tymon, 2006). Although Deci and Ryan (1987) believeintrinsic motivation “is one of the most powerful forms of motivation” (as cited in Bumpus,Olbeter, & Glover, 1998, p. 451), it can oftentimes go untapped, whether because of situationalwork constraints or due to bad task characteristics (Bumpus, et al., 1998). In general, if anemployer wants an employee to engage in activities purely because of personal enjoyment andnot because they feel coerced, that employer must first and foremost ensure that the needs of theemployee “are being met in a specific environment” (Ryan & Deci, 2006 as cited in Dysvik &Kuvaas, 2013, p. 414).Extrinsic Motivation. Extrinsic motivation refers to the behavior or action an individualexhibits or takes because of an anticipated reward (Park & Rainey, 2012; Eccles & Wigfield,2002). Furthermore, employees who are extrinsically motivated tend to work harder for one ofthree reasons; either (1) because they are striving to attain something they desire; (2) becausethey are working towards something of significance; or (3) so they can avoid something negative
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT15(Deci & Ryan, 2000 as cited in Dysvik & Kuvaas, 2013; Deci & Ryan, 2000 as cited in WongOn-Wing, Guo, & Lui, 2010).Employee CommitmentThe commitment an employee shows to their employer and to their work is an importantquality that can often determine whether or not an organization will be successful (Shahid &Azhar, 2013).Although committed employees, according to Porter, Steers, Mowday andBoulian (1974) are loyal and productive (as cited in Pepe, 2010), they also tend to have positiveoutcomes for both the individual and the employer (Rosanas & Velilla, 2003). In fact, accordingto Mathieu and Zajac (1990, for a review) commitment to organization not only has a positiveassociation with work outcomes, such as employee satisfaction, motivation, and performance,but it also has a negative association to absenteeism and turnover (as cited in Chen, Tsui, & Farh,2002).According to Pepe (2010) affective commitment, continuance commitment, andnormative commitment are the three types of commitment levels all employees experience.Employees that experience affective commitment not only emotionally attach themselves to theirorganization, but they also identify with and become involved in the organization (Pepe, 2010).Because affectively committed employees will identify with, involve themselves in and becomeemotionally attached to their organizations, they will consequently have strong outlooks that willenable them to continue working for the same employer, not because they have to, but becausethey want to (Pepe, 2010). Continuance commitment according to Pepe (2010) “refers to [anemployee’s] awareness of the costs associated with leaving the organization” (p. 99). Whileaffective commitment employees stay with an employer because they want to, continuancecommitment employees stay with the same employer because they need to, and normative
EMPLOYEE MOTIVATION, LOYALTY, AND COMMITMENT16commitment employees remain with the organization not because they need to or want to, butbecause they feel they ought to (Meyer & Allen, 1991 as cited in Pepe, 2010).According to the beliefs of Meyer and Herscovitch (2001), because affective committedemployees accept and internalize the goals and values of their organization,
The level of motivation and commitment an employee exhibits towards one's organization varies from employee to employee. The outlook one has about their employer, their work, their peers, salary, recognition or promotion potential can greatly impact an employee's motivation, loyalty and commitment. In consideration of the
ANALYSIS OF MOTIVATION IN THE PROFESSIONAL ENVIRONMENT. For our study and for a better understanding of the relationship professional identity-motivation, we considered relevant the presentation of aspects regarding motivation, be it economical or professional. 3.1 Economic motivation . The financial motivation is based on financial stimulus.
The motivation structure analysis will be based on the general knowledge of the theory of motivation, together with the analysis of the employees’ motivation profiles. The fundamental tool used in this process is a cluster analysis and its usage in the creation of motivation programs. The analysis of motivation factors and their order will be
motivation for all of their daily activities - including reading! Motivation can be intrinsic or extrinsic. Intrinsic motivation: behavior that is driven by internal rewards. Intrinsic motivation is a type of motivation that arises from within the individual because the activity is naturally satisfying to him/her. Examples of intrinsic .
motivation, compared to extrinsic motivation, improves crowdsourcing performance such as work accuracy and output accuracy. Compared to extrinsic motivation, intrinsic motivation has a more significant impact on both job and organizational performance (Dobre, 2013). From the explanation above, we propose to examine the following
Motivation has a deep impact on the performance of employees. Smithers & Walker (2000) have the viewpoint that motivation has a big contribution in improving productivity. According to Malik (2010), motivation improves the performance of employees and in return employee motivation develops the organization.
The impact of motivation and job satisfaction on employee performance is a heavily researched area in general, but in Kosovo there has been no studies of any filed related to motivation, job satisfaction or employee performance before. The aim of this research is to investigate: i) how does motivation impact employee in their performance and ii)
Motivation is a critical variable in educational institutions as it upgrades staff performance and efficiency. The current study aimed to explore the impact of motivation on teachers' job performance. In order to investigate the impact of motivation on job performance of university teachers, a descriptive survey design
motivation and integrative and instrumental motivation is ambiguous (Carreira 40). For Carreira and Dörnyei, intrinsic motivation is directly linked to an individuals pleasure and satisfaction when they perform an activity (1998 121). Carreira states that intrinsic motivation means doing an activity for its own sake (2005 55). Additionally,
