International Journal of Human Resource Studies ISSN 2162-.docx

International Journal of Human Resource Studies
ISSN 2162-3058
2014, Vol. 4, No. 3
www.macrothink.org/ijhrs 50
Determinants of Employee Motivation and its impact
on Knowledge Transfer and Job Satisfaction
Nida Zafar
Department of Management Sciences, The Islamia University of
Bahawalpur, Pakistan
Email: [email protected]
Sana Ishaq
Shaista Shoukat

Muhammad Rizwan
Lecturer, Department of Management Sciences
The Islamia University of Bahawalpur, Pakistan
E-mail: [email protected]
Doi:10.5296/ ijhrs.v4i3.5874 URL: http://dx.doi.org/10.5296/
ijhrs.v4i3.5874
Abstract
This study specifically examines the impact of different
variables like extrinsic reward (Pay),
intrinsic reward (Appreciation), training and expectancy on
employee motivation and impact
of employee motivation on job satisfaction and knowledge
transfer. The general purpose of
this study is to motivate employees. If employees are motivated,
they will be satisfied by
their jobs and if they are satisfied by their job then they will
work hard to attain
organizational goals and if goals are achieved then organization
will get profit. The current
research is descriptive in its nature. We select the sample from
different sectors in Pakistan.
We select the sample of 200 respondents from population for

the collection of data and to
check the response of different employees. For this purpose, we
structured a self-
administrated questionnaire and filled it from the right
respondent for true results. We use
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2014, Vol. 4, No. 3
Regression analysis in this study. This analysis is very
important to check the confidence of
the study from different respondents. Due to this analysis, we
found that Pay and
Appreciation are not directly effecting the employee motivation.
Job satisfaction also has no
direct link with employee motivation but training of employee,
expectancy and knowledge
transfer have direct relationship with employee motivation.
These three variables help a lot to
motivate an employee.
Keywords: Pay, Appreciation, Expectancy, Training, Job

Satisfaction and Knowledge
Transfer.
1. Introduction
Now a day, because of competition in businesses, organizations
are facing many challenges.
From these challenges, keeping their human resource is of most
importance. Today, humans
are considered to be the most important resources of an
organization. Employee motivation is
compulsory for getting efficiency. Motivation is a group of
different items which effects
employee‟s behavior for getting required goal. Motivation is
important to boost up employees
to perform well in long run and helps an organization to grow
for excellence. Motivating
the people is not an easy step.
The general purpose of this study is to motivate employees.
Motivated employees help
organization to survive. Motivating employees is more fruitful
for an organization. Managers
have to understand which thing will help much to motivate
employees. Among all the roles of

a manager, motivating employees is uncertainly very
complicated. If employees are
motivated, they will be satisfied by their jobs and if they are
satisfied by their job then they
will work hard to attain organizational goals and if goals are
achieved then organization will
get profit. Specifically, this study describes the impact of
different rewards (extrinsic rewards
and intrinsic rewards), expectancy and training on employee
motivation and impact of
employee motivation on knowledge transfer and job
satisfaction. Rewards are of 2 types:
1. Extrinsic rewards
2. Intrinsic rewards
Extrinsic rewards are tangible in nature. They can be in the
form of salary/pay, incentives and
bonuses. Intrinsic rewards are intangible like appreciation,
caring attitudes from employer
and job rotation. Rewards have also been defined as monetary
and non-monetary rewards.
Monetary rewards are tangible like promotion, bonuses etc.
Non-monetary rewards are
intangible like praise and person‟s recognitions. Many authors
argue that monetary and

non-monetary rewards are considered as extrinsic rewards.
Intrinsic non-monetary rewards
refer to the rewards that are intangible in nature and extrinsic
non-monetary rewards are
tangible like social rewards.
The opinion of performance management has given a reward
system which know the needs
of employees and goals which an organization wants to get. The
system also said that training
and development of employees is needed to motivate them. This
training or development
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opinion of employees gives them intrinsic motivation. An
organization must have a reward
system to appraise the performance of employees and then
rewarding them. For employees to
work together efficiently knowledge transfer is also important.
To generate extrinsic and

intrinsic motivation managers are motivated to make best use of
knowledge transfer. When
economy expands, it moves towards globalization. In the global
economy enormous number
of competitor organization need many kinds of solution. Many
factors create difficulty for the
organization when global crisis arise, firms need to change the
organization system. The main
focus of organization is to invest their employees in form of
rewards in search of
development, motivation and increase in the performance of
human resources. According to
the Barber and Bretz (2000) the reward management system has
impact on to motivation to
retain the employees to perceive high level of performance.
Expectancy is defined as that effort will lead to good
performance. Expectancy is that one‟s
effort will take to better performance is based on past
knowledge and self-confidence. In the
global economy to meet the competitor manager involves highly
train workforce to acquire
the goals. There must be HR practice motivate and provide best
place to the work. According

to (Meyer and Allen, 1991) training directly or indirectly effect
the motivation and loyalty of
an employee for his organization .Companies invest their
employees to assure the skills
which help out not in present but also in future.
Increasing competition forces companies need to have highly
skilled, motivated and loyal
employees who work for the success of the company. So
motivation of these employees is
requirement of the company. Committed and loyal employees
work at their best for
organization‟ success. Job satisfaction is the employee‟s
opinion that how much they are
satisfied with their job. It is positive and emotional state
resulting from evaluation of one‟s
job. Existence of enterprises and their success are affected by
quality of human resources.
Therefore motivation of employees is necessary for developing
an organization.
2. Literature review
Employee motivation
Reflection of level of energy, commitment and creativity that a
company‟s workers bring to

their jobs. Motivation is an emotional feature that encourages
an employee to act towards a
desired goal. Employee motivation means to motivate
employees by giving rewards to them
to attain the organizational goals.
The individual motivation of employees plays an important role
in getting high level
satisfaction (Petcharak, 2004). Motivation is a process in which
people are influenced to
move onwards for performing something especially to fulfill
their needs and get satisfaction
(Butkus and Green, 1999). Baron (1893) defined motivation in
his own right. He says
“motivation is a collection or arrangements of procedures
involved in push and pull forces
that makes the actions stronger towards success”. Kinicki and
Kreitner (2001) assume that
motivation corresponds to such emotional processes that cause
the inspiration and
determination of voluntary actions that helps to attain the goals.
Rutherford (1990) found in
his research that motivation is the effective agent in an
organization because; motivated

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employees are always innovative in their jobs. It is task for the
organization to appreciate and
understand the procedures necessary to have an effect on
encouragement of their workers.
The majority of theorists in the area of motivation argue that,
there is an unquestionable link
between motivation and job satisfaction and motivation with
employee loyalty to the
organization (Basset-Jones and Lloyd, 2005; Chen et al., 2004;
Lok and Crawford, 2004;
Pool and Pool, 2007). Sirotaet al. (2005), in a major study of
motivation and job satisfaction,
involving 135,000 respondents from different countries and
groupings, found that
organizations employing motivation strategies, that include
three major things, i.e. justice,
companionship and achievement. Barber and Bretz (2000)
mentioned that reward

management systems have major impact on organizations ability
to catch, retain and motivate
high potential employees and as a result getting the high levels
of performance.
Extrinsic reward
Extrinsic rewards are tangible and are exterior to work and
efficiency of the employees.
Salary/pay, incentives and bonuses are the types of extrinsic
rewards. Pay has direct link with
efficiency of the employee (Bishop, 1987). There must be a
successful extrinsic reward
system to get better performance and high efficiency of the
employees (Carraher, 2006).
Extrinsic rewards as tangible rewards obtained due to doing the
job, such as pay and
promotion (Porter and Lawler, 1968). Mottaz (1985) says that
extrinsic rewards are also
defined as social and organizational rewards. Organizational
rewards are like pay, bonuses
and fringe benefits which can be seen (Katz & Van Maanen,
1977; Malhotra et al., 2007;
Mottaz, 1985). Whilst Kuvaas (2006) said that employee‟s
loyalty depends upon pay and
bonuses given to them. Social rewards help employees to create

interest for achieving
company‟s objective (Burke, 2002). Reio and Callahon (2004)
conclude that extrinsic
rewards motivate the employee and obtain high efficiency from
them. Many researches were
conducted by Professor Elton Mayo who said that motivating
employees is the main work of
an organization. Frey (1997) argues that pay plays an important
role in motivating the
employees. He also argues that if bonuses and incentives are
given to the employees, they
will be satisfied and motivated and work hard to obtain the
organizational goal.
H1: There is a positive impact of extrinsic rewards (Pay) on
employee motivation.
Intrinsic rewards
Intrinsic rewards are intangible in nature. We cannot touch them
with our hands but only feel
them such as appreciation, caring attitudes from employer and
job rotation. Intrinsic rewards
are the rewards within the job itself such as satisfaction from
completing a task, appreciation

from employer (Ajila, 2004). Loyalty of employees depends
upon rewards and recognition
(Andrew, 2004). Porter and Lawler (1968) said that the
satisfaction which an employee gains
by doing his work is intrinsic reward. Mottaz (1985) said that
intrinsic rewards are of
different kinds. Task rewards are example of it and they refer
duties and responsibility of an
employee. Intrinsic non-monetary rewards can also be defined
as the appreciation which an
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employee gets by his or her efforts by completing his job
(Porter & Lawler, 1968). Malhotra
et al. (2007) explained that intrinsic non-monetary rewards
influence the loyalty of an
employee more effectively than extrinsic rewards. Adeyemo and
Aremu (1999), said that
employer who is more helpful to his employees is also a big
reason of employee loyalty.

Burke (2002) said that if controllers are loyal to their
employees and behave nicely with them
than employees will be more loyal to their employers and their
jobs. Reio and Callahon (2004)
argued that intrinsic rewards are used to motivate employees for
higher efficiency. Dee prose
(1994) said that intrinsic rewards are very effective for getting
motivation and efficiency of
employees. So, they will work better for organization. The
overall success of an organization
depends on how an organization motivates its employees and
how they differentiate their
performance. Lawler (2003) said that success of the
organizations depends on how they
motivate their employees. Many researches were conducted by
Professor Elton Mayo who
said that motivating employees is the main work of an
organization.
H2: There is a positive impact of intrinsic rewards
(Appreciation) on employee
motivation.
Training effectiveness

On Organization commitment and employee motivation the
training producers used by
companies both have direct and indirect effect (Meyer and
Allen, 1991) “A intrusion system
is developed to increase the job performance on individual
basis” (Chiaburu and Tekleab,
2005, p. 29).
According to Swart et al. (2005) the motivation of the
individual, the individual‟s needs and
training system are the source of individual improvement. The
mainstream of theorists in the
area of motivation argue that, there is an undeniable link
between motivation with employee
commitment to the organization and motivation.(Basset-Jones
and Lloyd, 2005; Chen et al.,
2004;The fear occur during job performance due to lack of
skills unfavorable causes ,lack of
communication skill ,annoyance and other factors to control
situations and increase work
productivity training is much important (Chen et al., 2004).
Row den and Connie (2005),
through training the organization employee know well how to
satisfy their customer. Tsai et

al. (2007), when employees are trained and satisfy their jobs
and loyal to their organization
will show a positive effect on organizational goals. According
to Harrison (2000), training is
main component and his key factor learning also help the
organization to achieve their
objective and goals would create a positive effect. In general, it
can be argued that the
outcome or results the organization is expected usually are low.
According to few studies
employee‟s thoughts moreover change through training. Lang
(1992) argued the training
system developed by the organization help to increase the
productivity of employees and
achieve goals. Another survey, conducted by Gaertner and
Nollen (1989) in manufacturing
firms, concealed employee loyalty linked with the concealed
HRM methods. These methods
were inner encouragement, and training opportunity.
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H3: There is a positive impact of perceived training
effectiveness on employee
motivation.
Expectancy
Expectancy is the apparent chance that effort goes to good
presentation; variables affecting
the individual‟s expectancy discernment include self-efficacy,
goal difficulty, and perceived
control. We get the targeted performance through expectancy
the basis of experience and
knowledge. Expectancy usually is supported by tentative
verification (Tien, 2000;
Vansteenkiste et al., 2005) and it is normally used theories of
motivation in the
workplace/organization (Campbell and Pritchard, 1976;
Henemne and Schwab, 1972;
Mitchell and Biglan, 1971) employee motivation play important
role in job performance, both
the academy and hotel industry be renowned with the
significance of motivating.
The organization are aware of key factors that motivate their

employees and give them long
term benefits which help in present and future both. (Simons
and Enz, 1995; Siu et al., 1997;
Wong et al., 1999). Through expectancy we made general
criteria for evaluating, check the
employee performance toward employee behavior to perform
certain job, making decision
and achieving goals. (Chen and Lou, 2002).However, Mitchell
(1974) the components of
expectancy will help to learn about validity. In concurrence
with expectancy many different
methods, producer statistical tools are used, but a main alarm
remains: that the validity of the
expectancy remains unclear and vague (Van Eerde and Thierry,
1996). Landy and Becker
(1990) suggested that the factors to improve the prediction of an
expectancy model capacity
stretch out in variables such as the number of outcomes or
results ,the valence of the
outcomes, and the particular reliant changeable selected for
learning.
H4: There is a positive impact of expectancy on employee
motivation.

Job satisfaction
Job satisfaction is the pleasant or positive state that one has
from his/her job experience. It is
employees perception that how much their expectations have
fulfilled they have from their
job (Locke, 1976). Job satisfaction is the state that how much
output meets or exceeds our
expectations and it represents the most important attitudes like
work itself, salary, promotion
opportunities, supervision and coworkers and people show
positive responce about it(Luthans,
1998).Absence of job satisfaction can be reason of lack of
interest and organizational
commitment (Moser, 1997). Dissatisfaction is the big cause for
employees to leave the job
and they are more absent than satisfied employees (Rusbultet al,
1988).Job satisfaction can be
linked with employee motivation. Satisfied employees spend
more time to understand their
work. The employees who are satisfied with the job adapt both
changes in circumstances
either bad or good. As result those who enjoy their jobs are
expected to have strong

motivation or vice versa.
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H5: There is a positive impact of employee motivation on job
satisfaction.
Knowledge transfer
To enable employees to work together efficiently knowledge
transfer is essential. To increase
the organization efficiency managers should encourage their
employees. Employee
motivation cannot be controlled on profit. Employees transfer
their knowledge related to their
individual learning when they are intrinsically motivated
(Huysman and de Wit,
2004).Employee motivation has two important roles in
knowledge transfer. First it is reward
of process itself and second it is the source of enhancing
individual participation of

knowledge (Lucas and Ogilvie, 2006).
H6: There is a positive impact of employee motivation on
knowledge transfer process.
Research Model
Figure.1
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3. Research methodology
This study is descriptive in nature. Descriptive research is
defined as anything that is
interesting for the observer. Descriptive research nature is used
to explain or describe the

existing situation with some scales and proofs rather than using
judgment and perception
about the situation (Creswell, 1994). Descriptive research is
mainly used for the conformation
of newly developed model or hypothesis. This hypothesis will
reflect existing situation.
Researchers use this research to explain present phenomenon
and will kept focus on past
research or modern thinking.
Sample &Data
The main purpose of this study is to explain the current
situation of different variables on
employee motivation. We select the sample from different
sectors in Pakistan. This study is
purely conducted from employees. We select the sample of 200
from population for
collection of data and to check the response of different
employees. For this purpose, we
structured a self- administrated questionnaire and filled it from
the right respondent for true
results.
For true results, we use the non-probability sampling which also
known as convenience

sampling. Purpose of sampling method is to acquire and gather
the appropriate information
from relevant sample according to availability which is known
as “convenience sampling”
(Zikmund, 1997). This technique is usually used to cover a
large no. of population to see the
overall impact of variables (Lym et al, 2010).
Before collection of data and filling the questionnaire, we made
conditions for our selected
sample which are as follows:
organization.
Our sample should have to follow these conditions to participate
in self-administrated
questionnaire. It will reduce the biasness in result and also
increase the reliability of results.
We select our sample from different sectors of Pakistan. The
response rate of respondents was
80 percent which is a good rate and reliable for results as
compare to the several previous
studies on the similar topic. Our sample was mostly employee
of middle level and low level

in organization hierarchy. The survey was conducted through
personal visits. We also assure
from respondent about his willingness to take part in activity
before handing over the
questionnaire to them.
We select this sample from different public or private
organizations and institutes of Pakistan.
The selection of employees is based on the previous results of
the studies on employee
motivation. Motivation is a process in which people are
influenced to move onward for
performing something especially to fulfill their needs and get
satisfaction (Butkus and Green,
1999). Baron (1893) defined motivation in his own way. He
says “motivation is a collection
or arrangements of procedures involved in push and pull forces
that makes the actions
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stronger towards success”.
Instruments and measures
The item of each variable are taken from previous highly
authenticate and proof researches.
The related instruments for currently study focus on major
intentions which are as follows:
Main use of this study is to see the relationships between
different variables to see the
motivation of employees in reality.
The questionnaire contains two sections:
Section 1: It contains personal and demographic information of
different respondents. This
information is all about gender, age, income and type of
organization.
Section 2: It contains the questions about employee motivation
in any organization. This
section consists of latent variables which are basic measures in
current study. The variables

are employee motivation, extrinsic reward (Pay), intrinsic
reward (appreciation), training,
expectancy, job satisfaction and knowledge transfer. We
developed this section with the help
of past literature and we used questionnaire.
Every item of this questionnaire is taken by past literature and
also published researches. The
main variables of the model and their references are given in
this table.
Table 1: Scales of study
No. Variables
Items
References
1 Employee
Motivation
1. I feel a sense of personal motivation when I do this
job well.
2. My opinion of myself goes down when I do the job
badly.
3. I take pride in doing my job as well as I can.

4. I feel unhappy when my work is not up to my usual
standard.
5. I like to look back at a day‟s work with a sense of a
job well done.
6. I try to think ways of doing my job effectively.
Butkus and
Green, 1999
Baron , 1893
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2 Pay 1. I am satisfied with the existing salary structure of the
company.
2. I am satisfied with the compensation I get & I think it
matches with my responsibility.

3. My salary structure is revised annually.
4. I get salary according to the duties I perform on the
job.
Bishop, 1987
3 Appreciation 1. I am happy with my work responsibilities.
2. I am happy with the recognition and rewards for my
outstanding work and contribution.
3. I am appreciated by my boss for any extra work
which I do.
Ajila, 2004
4 Training 1. My company provides me the opportunity to
improve
my skills.
2. There is lot of chance to learn new things in this
company.
3. My company frequently arranges training programs
for the employees.
4. Doing job in this company will benefit me in the

future.
Chiaburu &
Tekleab, 2005
5 Expectancy 1. If I work very hard, my job performance will
significantly improve.
2. If I work very hard, I will get a lot more accomplish.
3. If I put more effort into my job, my productivity will
improve significantly.
4. If I put more effort into my job, I will definitely be
regarded as effective employees.
Vroom , 1964
6 Job Satisfaction 1. My basic salary is sufficiently paid
according to my
daily working hours and workload.
2. I am satisfied with my chances for salary increases.
3. The work I do is appreciated.
4. I believe those that do well on the job have fair
Luthans, 1998

Moser, 1997
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chances of being promoted.
5. It is possible to get promoted fast in my job.
7 Knowledge
Transfer
1. I feel secure when sharing information and
know-how with my colleagues.
2. I know precisely who in the company has the specific
know-how that can help me with my work.
3. I have access to people who have the tacit know-how
I require, irrespective of their hierarchal level.
4. The company rewards the results of teamwork
performed.

5. When I need to obtain specific know-how, the
company designates a specialist to assist me.
6. When I need some know-how, the company
encourages me to attempt to obtain it from other
employees.
7. When I need some know-how, the company
encourages me to attempt to obtain the company
possesses.
8. Know-how is not the source of power in the
company.
9. The in-company culture favors questioning the work
of colleagues.
10. My colleagues and superiors appreciate the
suggestions and ideas that I put forward based on my
own know-how, even when I don‟t have sufficient
information to back them up.
11. A medium that I use most to interact with people in
the company whose know how is important for my

work is personal conversation.
Lucas and
Ogilvie, 2006
Procedure
The structured questionnaire was distributed among 200
respondents in Lahore, Bahawalpur,
Sadiq Abad, Haroon Abad, Multan and Karachi. The entire
respondents were selected on their
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willingness and on their ease. These respondents were also
fulfilling the features of above
mentioned variables and their items. Firstly, we explain the
whole criteria and all questions to
the respondents for their conveniences and easiness for filling
the questionnaire. We also told
the purpose of this study and its impact was positive. We select

160 questionnaires for future
procedure and reject 40 questionnaires for some confusion or
incomplete response. After
collection and arranging the questionnaire, we started entering
the data into SPSS for final
analysis and results.
Reliability analysis
This analysis is very important to check the assurance of the
study from different respondents.
In reliability, we will check the cronbach‟s alpha of every
variable separately. The limits of
cronbach‟s alpha decided by Nunally (1970) which is 0.50.
After this Moss et al (1998)
decide the limit for every variable 0.60. The cronbach‟s alpha
of every variable is as follow:
Table 2: Reliability of measurement instruments
Scales Items Cronbach’s alpha
Employee Motivation
Pay
Appreciation
Training

Expectancy
Job Satisfaction
Knowledge Transfer
6
4
3
4
4
5
11
0.621
0.703
0.676
0.742
0.696
0.767
0.819
By seeing table, we can conclude that all variables have

cronbach‟s alpha more than limit of
reliability. Every variable is acceptable and their reliability is
ideal for further results. This
table shows that all the 37 items of different variables are valid
and much suitable to measure
the attitude of employee towards motivation in organizations.
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4. Result and Analysis
Profiles of the respondents
Here is the table of personal information about respondent. This
respondent selection was
according to our requirements and specifications.

Table 3: Profile of Respondents
Category Frequency Percentage
Variables
Gender Male
Female
91
69
56.9
43.1
Age Below 20 years
20-30 years
30-40 years
Above 40 years
28
90
32
10
17.5

56.3
20.0
6.3
Income Below 10,000
10,000-20,000
20,000-30,000
30,000-40,000
Above 40,000
56
48
41
2
13
35.0
30.0
25.6
1.3
8.1

Organization Public
Private
89
71
55.6
44.4
Hypotheses Testing
Pay and employee motivation
According to the Regression results of the study, there is a
positive insignificant relationship
between pay and employee motivation. Pay has ß=0.001 and
p=0.995. Therefore, H1 is
rejected.
Appreciation and employee motivation
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between appreciation and employee motivation. Appreciation
has ß=0.060 and p=0.498.
Therefore, H2 is rejected.
Training and employee motivation
positive significant relationship
between training and employee motivation. Training has
ß=0.185 and p=0.045. Therefore, H3
is accepted.
Expectancy and employee motivation
between expectancy and employee motivation. Expectancy has
ß=0.220 and p=0.018.
Therefore, H4 is accepted.
There is 12.7% variation in employee motivation due to Pay,
Appreciation, Training and
Expectancy.
Job Satisfaction and employee motivation

According to the regression results of the study, there is a
between employee motivation and job satisfaction. Job
satisfaction has ß=0.105 and p=0.188.
Therefore, H5 is rejected. There is 0.5% variation in job
satisfaction due to employee
motivation.
Knowledge Transfer and employee motivation
According to the regression results of the study, there is a
between employee motivation and Knowledge Transfer.
Knowledge Transfer has ß=0.259
and p=0.001. Therefore, H6 is accepted. There is 6.1% variation
in knowledge transfer due to
employee motivation.

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Table 4: Regression Results
Research Model Results
Figure.2
Hypot
hesis
Model
variables
Estimate
s
S.E
C.R
P Results

H1 Employee Motivation
Pay
0.001 0.053 0.007 0.995 Not
supported
H2 Employee Motivation
Appreciation
0.060 0.062 0.679 0.498 Not
supported
H3 Employee motivation
Training
0.185 0.066 2.023 0.045 Supported
H4 Employee motivation
Expectancy
0.220 0.072 2.382 0.018 Supported
H5 Job Satisfaction
Employee Motivation
0.105 0.116 1.321 0.188 Not
supported

H6 Knowledge Transfer
Employee Motivation
0.259 0.088 3.372 0.001 Supported
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5. Discussion and Conclusion
The main purpose of this study is to observe the relationship of
employee motivation with
pay, appreciation, training, expectancy, job satisfaction and
knowledge transfer. Employee
motivation is the main variable of this study which is affected
by some specific factors as
specified above this section. The literature review of all
variables based on the previous
theories of some known and qualified researchers. The model is
truly developed by us but the

bases was taken by the study of these researchers: Butkus and
Green (1999), Baron (1893),
Bishop (1987), Chiaburu & Tekleab (2005) Luthans (1998),
Moser (1997), Lucas and Ogilvie
(2006), Vroom (1964), Ajila (2004). After developing
hypothesis on the bases of literature
review, in this study we develop a self-administrated
questionnaire on the bases of prior
published studies and qualified researches. For collection of
data, survey was done by us. We
distributed 200 questionnaires in Pakistan and from these 160
questionnaires were selected
for final analysis. This study is truly based on employees from
Pakistan.
This study supports the results of the hypothesis. Results show
that employee motivation has
influenced by some particular factors. Employee thinking,
perception and feelings have much
influence on motivation inside the organization. Employee will
perceive his motivation by
expectations of job and organization.
Rewards are not directly effecting the employee motivation in
some organizations.
Employees have no concern with rewards. Reward has an

insignificant impact on employee
motivation. As results shows; extrinsic reward (pay) and
intrinsic reward (appreciation) have
insignificant relationship with employee motivation. Reward
system should be based on
individual performance not in totality.
Training has positive impact on employee motivation. It has
significant relation and impact
on employee motivation. Employee will more motivate in
presence of training. In training
organizations have to teach them about their job and
organization culture. It will create
confidence in employees and they will do their work with full
interest. It will create a positive
influence as hypothesis result shows. Expectancy is the apparent
chance that effort goes to
good presentation; variables affecting the individual‟s
expectancy discernment include
self-efficacy, goal difficulty, and perceived control. We get the
targeted performance
through expectancy the basis of experience and knowledge.
Expectancy usually is supported
by tentative verification (Tien, 2000; Vansteenkiste et al.,
2005)and it is normally used

theories of motivation in the workplace/organization (Campbell
and Pritchard, 1976;
Henemne and Schwab, 1972; Mitchell and Biglan, 1971)
employee motivation play
important role in job performance, So result shows, expectancy
will create a positive
significant relationship with employee motivation.
Job satisfaction is employee‟s perception that how their job
provide them with those things
they consider important for them. Job satisfaction has no direct
impact to motivate employees.
As results shows, job satisfaction has an insignificant
relationship with employee motivation.
Knowledge transfer is necessary for efficient management as
knowledge transfer enable
employees to work together efficiently. As knowledge transfer
is the source of enhancing
organization1s efficiency so managers should encourage their
employees. Knowledge
ISSN 2162-3058

2014, Vol. 4, No. 3
transfer has a direct impact on employee motivation. As results
shows, knowledge transfer
has a positive significant relationship with employee
motivation.
6. Limitations / future study
If employee will be more attach with his job and his
performance will be positively influence
the organizational performance. The variation in results can be
due to change in worth, social
circle, expectations and country. As our sample size is small so
deviation takes place. There
were some limits in study but we can say that it is a good
addition in the field of this research.
And these limits can be reduced by future study on all these
variables.
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Reproduced with permission of the copyright owner. Further
reproduction prohibited without
permission.
Article ISSN: 2348-3784
HemaMalini P H, Research Scholar, Department of Management

Studies, Anna University, Chennai.
E-Mail: [email protected]
Dr. Anthea Washington, Senior Lecturer, Department of
Educational & Professional Development,
Caledonian College of Engineering, P.O Box 2322, CPO Seeb
111, Sultanate of Oman. E-Mail:
[email protected], Phone: 00968 24536165/ 968 97101468, Fax:
00968 24535675
(Corresponding Author)
Employees’ Motivation and Valued Rewards as a Key
to Effective QWL- from the Perspective of
Expectancy Theory
HemaMalini PH and Anthea Washington
Abstract
Employees around the world are motivated to work and perform
effectively based on the
kind of positive rewards they expect to earn as a result of their
performance. This paper is
an attempt to relate quality of work life with the Expectancy
theory proposed by Victor
Vroom. The three factors of the theory are associated and
viewed from the perspective of
various work related components such as working environment,
amenities and resources
with reference to an educational institution in Oman. The paper
supports the idea that
employees’ efforts propelled by positive behavior and valued
goals are instrumental in
increasing the QWL.
Key Words: Quality of Work life, expectancy theory,

motivation, rewards
1. Introduction
Quality of Work Life (QWL) has gained the attention of people
worldwide, particularly in
the last two decades and has been an interesting area of study
for researchers,
academicians, managers and experts who have looked at it as a
core indicator for job
satisfaction, employee motivation, performance management
and enhanced productivity.
Numerous studies have reported that QWL is an important
factor for employee retention
and improving the productivity of the organization. It is indeed
true that work – life
balance is imperative for an organization to be successful.
Employees need to be provided
the right kind of work atmosphere and facilities to enhance the
effectiveness of the
organization. This has made organizations worldwide to look
into the finer aspects of
developing healthy QWL for the employees.
It is generally believed that it is the organisation’s
responsibility to take initiatives for
improving the QWL for their employees. Several studies have
reported that the
organization need to provide job security, safe and healthy
working conditions, fair
46 Employees’ Motivation and Valued Rewards as a Key to
Effective QWL-
from the Perspective of Expectancy Theory

TSM Business Review, Vol. 2, No. 2, December 2014
compensation, career opportunities and welfare facilities for the
employees in order to
improve the QWL. While this is largely necessary, it also takes
initiatives from the
employees themselves to enhance the QWL. In this paper the
authors have taken efforts
to show how employees’ efforts propelled by positive behavior
and valued goals are
instrumental in increasing the QWL. The authors have presented
a model showing
effectiveness of QWL among staff in an educational institution
in Oman by adapting the
Victor Vroom’s Expectancy theory.
2. Definitions
According to J. Richard and J. Loy, "QWL is the degree to
which members of a work
organization are able to satisfy important personal needs
through their experiences in the
organization". Society for Training and Development defined
QWL as “a process of work
organization which enables its members at all levels to actively
participate in shaping the
organization’s environments, methods and outcomes.
Robbins (1989) defined QWL as "a process by which an
organization responds to
employee needs by developing mechanisms to allow them to
share fully in making the
decisions that design their lives at work”. Furthermore, Guest
(Saklani, 2004) has referred
to QWL as the measure of the quality of human experience in

the organization. Similarly,
Skinner and Ivancevich (2008) urged that QWL is associated
with adequate and fair
compensation, safe & healthy working conditions, opportunities
to develop human
capacities, opportunities for continuous growth and job security,
more flexible work
scheduling and job assignment, careful attention to job design
and workflow, better
union-management cooperation, and less structural supervision
and development of
effective work teams. From the above definitions, it can be
inferred that quality of work
life is a concept driven by factors associated with organizational
inputs as well as
something which is intrinsic in a person; something that relates
to a person’s attitudes
and experiences (Ayesha Tabassum, 2011).
3. Literature Review
Numerous studies have been made by different authors and
experts on QWL. Many
studies have focused on the components of QWL and the factors
adding up to positive
quality of work life. To quote few of these studies- Mirvis and
Lawler (1984) found in
their study that quality of working life was related with
satisfaction with wages, hours
and working conditions, describing the “essentials of a good
quality of work life” as; safe
work environment, equitable wages, equal employment
opportunities and opportunities
for advancement. Quality of working life is a holistic concept,
which not only considers
work-based factors such as job satisfaction, satisfaction with
pay and relationships with

work colleagues, but also includes factors that predict life
satisfaction and general
feelings of well-being (Danna & Griffin, 1999).
Employees’ Motivation and Valued Rewards as a Key to
Effective QWL-
47
Gnanayudam and Dharmasiri (2007) have viewed QWL as the
employee’s overall
satisfaction with work life leading to develop work-life balance.
A meta-analysis study
concerning nurses and QWL conducted by Knox and Irving
(Lewis, 2001) indicated that
autonomy is significantly associated with QWL. The feeling of
career achievement is
reflected in the willingness to spend extra time at job. It was
observed that positive QWL
acts as a motivation behind willingly working for long hours
that was enjoyed by the
executives (Cannings & Montmarquette, 1991).
Ellis and Pompli (2002) in their study on nurses identified
numerous factors resulting in
job dissatisfaction and quality of working life, including: Poor
working environments,
resident aggression, workload, unable to deliver quality of care
expected, balance of work

and family, shift work, non-involvement in decision making,
professional isolation, non-
recognition of work, unhealthy relationships with
supervisor/peers, role conflict, absence
opportunity to learn new skills. It has also been observed that,
work-related stress and
balancing work and non-work life domains (Loscocco &
Roschelle, 1991) affect QWL
significantly and should conceptually be considered as
determinant of quality of working
life. However a general conception is that quality of working
life fundamentally relates to
well-being of employees but it is differentiated from job
satisfaction which solely
represents the workplace domain (Lawler, 1982).
Royuela et al. (2007), European Commission (EC) proposed ten
dimensions for QWL,
which are (1) intrinsic job quality, (2) skills, life-long learning
and career development,
(3) gender equality (4) health and safety at work, (5) flexibility
and security, (6) inclusion
and access to the labor market, (7) work organization and work-
life balance, (8) social
dialogue and worker involvement, (9) diversity and non-
discrimination, and (10) overall
work performance(Tabassum, 2011).
Hend Al Muftah and HananLafi (2011) in their paper titled,
“Impact of QWL on employee
satisfaction case of oil and gas industry in Qatar” report that the
physical, psychological
and social factors’ centrality has a significant relationship with
QWL which indirectly
influence employees’ satisfaction. It was also indicated that
individual’s family life

correlated significantly with his/her level of QWL.
Chaudhary (2014) observed that there was an increase in level
of performance of
employees when the more motivational environment was
established. He also reported
that there was an increase in the self-confidence of employees
when the supervision was
directed and Facilities provided by the work place like
education, training, welfare, wages
and bonus time increased the morale of employee.
Ukaejiofo Rex Uzonna (2013) in his study reported that
majority of respondents agreed
that recognition and authority were the most important of
expected non-monetary
rewards. When it comes to bringing out the best performance of
employees, growth
Effective QWL-
opportunities and challenges, recognition and non-cash rewards
are more effective
motivators than money.
Tripathy (2006) is of the view that employee reward covers how
people are rewarded in
accordance with their value to an organization, which is a both

financial and non-financial
reward.
Monis H and Sreedhara TN (2011) in their study have reported
interesting findings such
as the statement “If I do good work, I can count on making more
money” has obtained
64.86 per cent in the Indian MNCs and 64.79 per cent in foreign
MNCs. Similarly the
statement “If I do good work, I can count on being promoted”
has secured 71.77 percent
in the Indian MNCs and 72.02 percent in the foreign MNCs
Taylor (1979) more pragmatically identified the essential
components of quality of
working life as basic extrinsic job factors of wages, hours and
working conditions, and the
intrinsic job notions of the nature of the work itself. He
suggested that a number of other
aspects could be added, including: individual power, employee
participation in the
management, fairness and equity, social support, use of one’s
present skills, self-
development, a meaningful future at work, social relevance of
the work or product, effect
on extra work activities. Taylor suggests that relevant quality of
working life concepts
may vary according to organisation and employee group.
To sum up, it stands to reason that with the diversified
workforce, different people are
motivated differently and the terms ‘happy’ employee,
‘motivated’ employee, ‘satisfied’
employee are more figurative than a proven fact. Job
satisfaction, motivation, quality of
work life etc. are largely dependent on the individual himself

than on organizational or
environmental factors. It is the individual employee himself /
herself who has to be
motivated to work towards attaining a healthy QWL.
An employee’s performance is tied to the rewards expected as
an outcome of doing the
work and the value placed on the rewards. Therefore, a better
performer and an achiever
will enjoy a healthy QWL.
4. Objectives
• To show the link between personal motivation and perceived
rewards for
deriving QWL
• To present the factors that lead to quality of work life among
employees in an
educational institution from the perspective of expectancy
theory.
Effective QWL-
49
5. Methodology

This is a descriptive study based on secondary data. The paper
looks into the factors that
lead to quality of work life among staff members in an
engineering college in Oman. The
paper is based on the assumption that personal motivation is
imperative for improved
efforts and better performance which will lead to expected
perceived rewards. Secondary
data such as reports, feedback from staff, survey results from
quality office and e-mails
have been taken as inputs for the study.
6. Application of Expectancy Theory
The three components of Victor Vroom’s expectancy theory are
Expectancy,
Instrumentality and Valence. Expectancy refers to the
probability perceived by the
individual that exerting a given amount of effort will lead to
performance (Robbins,
2003). It is the belief that one’s effort will affect performance
(Greenberg, 2005).
Instrumentality refers to the belief that one’s performance will
be rewarded. Valence
refers to the perceived value of the expected rewards
(Greenberg, 2005).
The following model (Figure- 1) explains how quality of work
life is attained among the
staff in the institution in light of the expectant theory.
The Expectancy theory suggests that people put in their efforts
on the perception that
their efforts will lead to performance and that effective
performance will result in
obtaining positive rewards. Taking this as a basis, figure1

depicts that efforts lead to
performance which in turn is believed to be rewarded and that
these rewards are valued
by the employees. The authors believe and suggest that efforts
are largely based on goals.
The goals could be both individual goals as well as
organizational goals. Both these goals
will have to be balanced and pursued upon so that an individual
is able to put in the
required efforts. These efforts lead to performance by the
individuals.
In the above figure, the factors that enable performance by the
individuals (staff
members) to be effective at work place are depicted under
performance. That is, these
factors are instrumental for effective performance by the
employees who perceive that
their performance will be rewarded. These factors include
working environment – in
terms of office atmosphere, availability of resources, smart
classrooms, communication
strategies, protocol and ergonomics, open door policy – the staff
have easy access to
heads of the respective departments to discuss issues and share
opinions; problems are
heard and solutions are given quickly, interpersonal relationship
– strong bond is
promoted among staff through working groups, team work in
research and departmental
activities, common lunch and celebrations, innovative
programme design & delivery – the
institution is constantly committed to improving the teaching
and learning strategies,
introducing new initiatives in teaching methods, introducing
new programmes and

modules, revamping existing modules and taking up challenges
in academic areas,
Effective QWL-
portfolio & college representation – staff members are
encouraged to contribute to
college wide activities through their representation in various
committees, departmental
boards & specialized centers, individual portfolio and
performance evaluation systems,
involvement in funded projects, extra-curricular activities and
events of the college,
policies & procedures – the educational institution has clear and
transparent systems and
policies, standardized procedures by the central quality office,
online forms and formats
and online processing systems that make it easier for the staff,
regular staff development
Figure – 1 Application of expectancy theory to QWL
EFFORT PERFORMANCE REWARDS
Expectancy Instrumentality
Valence

Goals
Fair compensation
Good working environment
Job satisfaction
Opportunities for HR development
Stress management
Healthy IPR
Recognition at work
Career growth
Job security
Staff Promotion
Awards & Recognition
Faculty Development
opportunities
Exchange programme
Scholarships for
higher studies
Research &
publication

Health care & Campus
life
Job enrichment &
enlargement
Working Environment
Open door Policy
Interpersonal
relationship
Portfolio & College
representation
Innovative
programme design &
delivery
Policies & procedures
Staff development
training
IT facilities &
resources
Research bulletin &
in-house magazine
Career growth
QWL

Effective QWL-
51
training and workshops are organized within and outside the
campus by both in-house
and external experts that are aimed at providing the best
opportunities for staff
development, IT facilities & resources – staff have unlimited
access to internet facilities,
latest software, library resources and learning aids.
Since the above factors are conducive for effective
performance, it is believed that this
performance leads to positive rewards (Instrumentality), which
further results in placing
high value on the rewards (Valence). The institution under
discussion provides various
reward mechanisms for its employees in recognition of their
performance. It is believed
that the rewards provided by the institution propel individuals
to deliver effective
performance. These rewards include staff promotion – there is a
clear system for
promotion which is transparent and well utilized by the staff,
awards & recognition – the
college has awards such as the best researcher award, best
teacher award and

recognition of staff with long years of experience in the
institution, faculty development
opportunities –members of staff are encouraged to pursue higher
studies through
extending tie-up with other institutions & supervisory support
and are encouraged to
take up funding projects, scholarship for higher studies – the
college provides monetary
support and scholarships for both nationals and expatriates to
take up further studies,
research bulletin & in-house magazine – staff members are
motivated to contribute to in-
house magazine and their achievements/ research endeavours
are published in the
research bulletin which boosts the profile of the staff., exchange
programme – staff
members are sent to other countries to have an exposure on
latest state-of-art and to
learn in their respective fields. They are also encouraged to
share and apply the rich
experiences gained outside in the college, research &
publication – the college has
research centre and the staff are encouraged to take up research
and laboratory
experiments in varied fields of interest; they are also
encouraged to publish papers in the
journal published by the college, health care & campus life –
staff members have access to
health care facilities and other campus facilities like canteen,
playground, relaxation
room, learning resource centre, etc., job enrichment &
enlargement – The staff are given
ample opportunities to exhibit their abilities and aptitudes
through involving them in
academic support activities. They are encouraged to extend their
services to community

programmes, corporate social responsibility programmes and
other college-wide
activities, career growth – employees are given freedom to plan
their career and the
management supports them through extending funds, provision
of resources and leave.
Employees work towards better performance, since they know
that the institution will
reward the best performers and further, the employees’
performance is boosted based on
their perceived value placed on the rewards.
All the rewards mentioned above enable the employees to enjoy
job satisfaction, job
security, fair compensation and good working environment,
opportunities for continued
HR development, stress management, healthy interpersonal
relationship, career growth
and recognition at work. These things essentially lead to
increased quality of work life.
Effective QWL-
Hence, it is believed that in the work place under study, the
employees enjoy quality of
work life since their performance are rewarded, which are
essentially valued rewards.
This is backed by positive feedback from employees, long and

continuous service in the
institution and prevalent healthy work culture. Therefore, the
relationship between
performance and reward factors & QWL is established.
It can be rightly stated that the employees are able to enjoy
healthy quality of work life in
the institution. To refer to the expectancy theory, it essentially
requires that an employee
has goals which driven by efforts lead to effective performance,
which ultimately results
in rewards.
7. Conclusion
The authors believe that an individual should to have personal
motivation to work. This
motivation leads the person to have specific goals to be
accomplished. It is imperative
that a person is highly motivated enough to set goals to be
accomplished. If goals are to
be attained, the person should put in committed efforts with the
perception that these
efforts will lead to effectual performance. Performance then
leads to rewards as expected
by the individual. Attainment of the rewards leads to goal
satisfaction by the employee.
This is however linked to the value placed by the individual on
the rewards. A person will
be satisfied with the rewards to the extent that they are
attractive and valued by him/her.
Enjoyment the expected and valued reward ultimately leads to
good quality of work life
(Figure – 2).
Figure – 2 QWL and value of rewards chain

Effective QWL-
53
The authors would like to stress the fact that QWL is a resultant
of a motivated employee
having specific goals, which is put into action for getting the
benefits.
Therefore QWL = M x G x E x P x R
Where M is motivation, G is goals, E is expectancy, P is
performance and R is rewards.
Quality of work life can be achieved only if the employee is
motivated to set goals that are
to be accomplished. He / she must further have the expectancy
that the efforts put in for
achieving the goals lead to effective performance, and this
perceived performance leads
to positive rewards. It therefore rests with the employee to
derive maximum quality of
work life through putting in commendable efforts and setting
perceived valued rewards.
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199-211.

permission.
239
Economics, Management, and Financial Markets
Volume 9(4), 2014, pp. 239–246, ISSN 1842-3191
WORK MOTIVATION IN ORGANIZATIONAL BEHAVIOR
LAURENŢIU HAUSER
[email protected]
Bucharest University of Economic Studies
ABSTRACT. In today’s society and economy employees are
well educated and
relatively well off. This fact strongly influences the mechanisms
of motivation.
Therefore, today’s managers have to use a large variety of
motivational instruments.
This text presents the most important mechanisms of motivation
and their role at the

modern workplace.
JEL codes: J28
Keywords: motivation; employee satisfaction; employee
performance
1. Introduction
“Human Capital goes where it’s welcome and stays where it’s
well treated.”
Walter B. Wriston) (Walter 1919-2005, former CEO of
Citybank/Citicorp)
The market economy of a country is constantly moving and is
subject to
ongoing processes of change. The organizations, in turn, are
forced to
keep pace with these changes in order to remain competitive.
At the same time, the increasing life standard largely influences
human
behavior, and underlies all processes conducted in major
organizations.
Globalization, declining birth rates in developed countries and
other factors
force managers to focus on the actual process of motivating
their employees,
which has become indispensable in achieving management
performance.
Motivation leads to self-realization of employees as a way of
his or her
optimal development and personal fulfillment.
In early 2009, the Gallup Institute published a study on the
motivation of

German companies. This study is the result of a survey on a
total of 1,900
employees. The survey was conducted in the months November
and
December 2008.
These are the results of the Gallup Study: Approximately 90%
of
employees surveyed do not consider themselves as owing
anything to their
240
employer and the work at their workplace is strictly limited to
following and
performing the tasks defined by the management. Only 13% of
workers do
their duty diligently and identify with the company, 67% of
staff are strictly
limited to performing their necessary duties and avoid further
efforts and
voluntary activities.
5% of all employees were found to be completely demotivated.
Worrying
is the fact that up to date these results have remained stable,
with a negative
impact on business. The main cause of employee motivation is
desolate
situation of their management, explained by the lack of
professional
competence of employees in positions of responsibility. This
lack of
qualification leads to inappropriate use of the work potential of

employees
and promoting their professional skills, a situation that leads to
a clear result:
DEMOTIVATION OF EMPLOYEES.
Given that the success of an organization depends largely on
human
capital and its motivating factors, there is a need for an actual
analysis on
both motivating factors applied in most developed countries,
and on the
possibility of taking them into the motivation system of
employees in
Romania while taking into account the cultural specificities of
the country.
2. Definitions and Basic Theories
In the Explanatory Dictionary of the Romanian Language (DEX
1998: 656)
these “keywords” are described as follows:
Table 1. Motivating & Motivation & Motive
Motivating is the “action of motivation and its outcome”
Motivation is “all grounds or reasons (conscious or not) that
cause
someone to perform a particular action or to tend to achieve
certain
goals”
Motive is defined as “cause, reason for an action; impulse that
causes or
determines an action”

The increasing higher level of education of employees requires
a behavior
and training of managers to match it. Therefore, they must be
able to manage
and motivate employees, make them meet the requirements in
terms of
qualification and professional experience, attitude towards work
and
particularly high socio-cultural skills. But managers have not
only the task of
motivating employees in order to achieve the objectives set by
the
organization, but also of motivating employees in achieving
their personal
goals.
Therefore, in the future career and income will play a major
role. It is
important for the employee to understand the meaning of the
work activity,
241
to identify itself with it, to perform their activity with passion,
this being the
guarantee for success. Passion can be defined as the founding
element of
commitment and performance.
An important role is the symbiosis of three processes:
recruitment,
training and employees’ keeping processes. Motivation of
employees plays a
key role in all these processes.

“Motivation is what energizes, directs and sustains a behavior”
(Steers
and Porter, 1991: 116); it is “a set of decisions and actions that
determine the
organization’s stakeholders to contribute directly and indirectly
to achieve
higher overall functionality and performance, based on the
correlation of
their interests in the approach and the achievement of the
objectives of the
organization and its subsystems” (Nicolescu and Verboncu,
2008: 291).
Motivation is also targeting the energy and enthusiasm of
people on a
specific objective. It has not only the role of determining people
to work, but
has also the property to determine them to perform their work as
well, which
requires optimum exploitation of physical and intellectual
resources of
employees.
Motivation can be seen as a source of positive energy
influencing
people’s lives, whether at their workplace or in their private
life.
Craig C. Pinder defines work motivation as being “a set of
energetic
forces that originate both within as well as beyond an
individual’s being, to
initiate work-related behavior, and to determine its form
direction intensity
and duration.” (Pinder, 2008: 11)

This definition is one of the most widely accepted definitions.
3. Human Motivation and Motivation at Work
Between these terms there is a general acceptance of their
synonymy:
Human Motivation = Motivation at work
Motivation is characterized by three factors:
• necessities – as an impulse, energizing the employees’
activities;
• current objectives and situations defined by the organization’s
goals;
• trends - emotional relationships and attitudes formed by
various aspects
of the environment and by the person him/herself.
4. Types of Motivation
Nicolescu and Verboncu (2008) have divided the types of
motivation in their
analysis into four pairs thereby showing the contrast between
them:
242
Table 2 Types of Motivations
TYPES OF MOTIVATION:

POSITIVE - NEGATIVE
INTRINSIC - EXTRINSIC
COGNITIVE - AFFECTIVE
ECONOMIC - MORAL SPIRITUAL
4.1 Positive and negative motivation
4.1.1 Positive motivation aims to increase efforts and direct
contribution
of employees in order to achieve the organization’s objectives,
aiming to
amplify their satisfaction; positive results mean:
• increase of employees’ income;
• increase of morale and status of employees according to their
expectations;
• individual development of employees;
• creating an organizational environment proper to work
performance.
4.1.2 Negative motivation aims to increase the efforts and
contributions
of employees for achieving the objectives. Its tools are
elimination,
reduction or threatening with reduction of satisfaction in the
process of
their work, in the event of failure to achieve tasks and
objectives. These
instruments of motivation frequently generate decreases of
income,
morale, status etc. of employees in relation to their
expectations.
4.2 Intrinsic motivation (internal, direct, and individual) and
extrinsic

motivation (external or indirect)
In a study of the determinants of job satisfaction in 1959, the
researchers
Herzberg, Mausner, and Snyderman have defined two types of
work
motivation:
Table 3. Intrinsic and extrinsic motivation
4.2.1 Intrinsic motivation (internal, direct, and individual) and
extrinsic
motivation (external, indirect, and organizational)
Intrinsic motivation (internal, direct, and individual) is the
motivation in
which the person pursues a strictly cognitive activity (or even
more) actions
taken being of personal type. Examples of intrinsic motivators:
• ambition, pleasure, desire for power, etc.
Intrinsic motivation internal direct individual
Extrinsic motivation external indirect organizational
243
4.2.2 Extrinsic motivation (external, indirect, and
organizational) consists
in determining the employee to make efforts in order to obtain
results
generating formal and informal, economic and moral-spiritual
reactions of

the organization, which will produce satisfaction to the
employee. This form
causes the employee to work under the influence of external
factors.
Examples of extrinsic motivators:
• prestige, notoriety, fame, remuneration, status, etc.
In turn, extrinsic motivators (or rewards) can be divided into
artificial
motivators with direct costs and or natural motivators (without
direct costs):
Table 4 Extrinsic motivators: artificial and natural
Extrinsic motivators
artificial (with direct costs): natural (without direct costs)
Music
Salary increases based on merit
Refreshments
Pleasantly furnished offices
Sharing of profit
Cash bonuses
Etc.
Feedback
Questions about own opinions
Compliments
Congratulations
Special tasks
Recognition
Smiles
Etc.
4.3 Cognitive and affective motivation

4.3.1 Cognitive motivation is focused on meeting the needs of
individual
intellectual environment of employees, a tool that gives them
the possibility
to control that environment with means such as knowledge,
learning,
innovation, activity performed, etc.
4.3.2 Affective motivation is focused on meeting personal
sentimental
needs of employees within the organization and is aimed at the
emotional,
strictly human side of the employee.
4.4 Economic and moral-spiritual motivation
4.4.1 Economic motivation is based on economic motivational
factors that
influence directly the economic expectations and aspirations of
employees.
4.4.2 Moral-spiritual motivation is based on motivational
factors of moral
and spiritual nature, primarily aimed at the behavior, attitudes,
and system of
values of the employees.
244
5. Relationship between Motivation, Satisfaction and

Performance in
Work
5.1 Relationship between motivation and satisfaction
One of the common definitions in the literature is that of Locke
(1976):
“Job satisfaction is a pleasurable or positive emotional state
resulting
from the appraisal of one's job or job experiences.” (Fischer,
2006, p.13)
Analyzing this definition, we find an emotional component of
attitudes
regarding work or job.
Mielu Zlate (2009) claimed in his Basics of Psychology the
following:
• state of job satisfaction / dissatisfaction is an indicator of
motivation
(state of satisfaction being in this case an equivalent with
motivation
achievement, by fulfillment of the proposed activity, and
dissatisfaction
representing the failure of motivation);
• from the pair motivation and satisfaction results the
phenomenon of dual
causality: cause and effect (motivation representing the cause
and
satisfaction, the result or the final condition);
• motivation and satisfaction are related to job performance,
their activity
having an influence, either positive or negative.
5.2 Relationship between motivation and job performance

Job performance can be defined as a state of competitiveness,
which has
reached a level of efficiency and optimal productivity.
Performance is based on the following markers:
• economic markers - represented by the factors of profitability
and
competitiveness;
• legal markers - represented by factors related to legal
compliance and
solvency;
• organizational markers - focused on competence and
efficiency factors;
on consistency;
• social markers - which are based on involvement, staff
satisfaction,
potential development, quality of life or work, etc.
Concerning the relationship between motivation and job
performance, we
know that the two phenomena, of sub-motivation and of supra-
motivation,
can be derived depending on employee motivation; motivation
can be
excessive and intensive, or, on the contrary, very low or even
nonexistent.
6. Main Theories and Practices of Motivation
Psychologists widely studied human motivation, the result being
a variety of
numerous theories about what motivates people. Almost all
these theories

245
and practices originate from psychological approaches in the
nineteenth and
twentieth centuries.
These theories and practices are very useful to managers,
helping them
to understand motivation in conceptual terms. At the same time
it helps them
to apply the instruments of motivation, combining them
according to the
needs of the organization and the needs of employees. Using
tools of
motivation is essential for the satisfaction of the employees’
needs and for
the efficient and successful achievement of tasks at their
workplace.
Thus, in the process of motivating employees, managers need to
focus on
issues such as satisfaction, setting objectives, expectations,
performance,
feedback, fairness, commitment.
Here is a scheme of the main theories of motivation:
Figure 1. Theories of Motivations
Source: Author

246
7. Conclusion
Motivating employees is a process of great importance.
Unfortunately not all
managers really understand (or do not consider this issue
important to be
properly concerned with) the concepts, the principles and the
mechanisms of
employees’ motivation. Managers can improve their own rate of
success on
the job offering extrinsic rewards (external, indirect, and
organizational) that
lead to intrinsic motivation (internal, direct, and individual) of
employees
and thus to achievement of desired performance and objectives.
“Motivation is the art of getting people to do what you want
them to do
because they want to do it.” Dwight D. Eisenhower (1890-1969,
former
president of United States of America)
REFERENCES
Fischer, L. (2006), Arbeitszufriedenheit, Emotion und
Identifikation. Goettingen:
Hogrefe: 13.
Nicolescu, O., and I. Verboncu (2008), Managementul
resurselor umane
(Management of Human Resources), Bucharest: University
Publishing House:

291.
Nicolescu, O., and I. Verboncu (2008), Fundamentele
managementului organizației
(Basics of Organization Management). Bucharest: University.
Pinder, C. C. (2008), Work Motivation in Organizational
Behavior. New York:
Psychology Press: 11.
Steers, R. M., and L. W. Porter (1991), Motivation and Work
Behaviour
(Management). McGraw-Hill Inc.: 116.
Zlate, M. (2009), Basics of Psychology. Bucharest: Polirom:
128.
*** DEX (1998), Dicționarul explicativ al limbii române
(Explanatory Dictionary
of the Romanian Language). Bucharest (second edition): 656.
permission.
8th International Scientific Conference on Economic and Social

Development and 4th Eastern European ESD
Conference: Building Resilient Economy, Zagreb, Croatia
2
ORGANIZATIONAL CHANGE RESISTANCE: EXPERIENCE
FROM
PUBLIC SECTOR
Vesna Stojanovic Aleksic
Faculty of Economics, University of Kragujevac
[email protected]
Snezana Zivkovic
Faculty of Occupational Safety , University of Nis
[email protected]
Aleksandra Boskovic
Faculty of Economics, University of Kragujevac
ABSTRACT
The study described in the paper aimed to measure the level of
resistance of public sector
employees to organizational changes, in order to draw a
conclusion on whether the level of

resistance is a risk to the successful implementation of change
or not. The differences between
the resistance of several categories of employees were observed,
depending on age, education
and satisfaction with personal monthly income. In addition, the
most important causes of
resistance to change within the sample were determined, such
as: lack of involvement of
employees in the process of planning change, conviction of
employees about non-existence of
adequate rewards for the accomplishment of change and high
levels of stress at work. The
findings indicate that the level of change resistance in public
sector is within moderate limits,
which means that this issue needs further attention in planning
and management of
organizational change, but, on the other hand, the situation can
not be characterized as
highly risky for the process of change implementation. The
paper also provides a brief
theoretical overview of the most important findings in the field
of organizational changes in
the public sector.

Keywords: organizational change, public sector, motivation,
resistance to change
1. INTRODUCTION
In the modern business environment, characterized by high level
of uncertainty, dynamism
and turbulence, change is the only constant. In these
circumstances, the ability to adapt to
change in the external, as well as initiating and implementing
the necessary changes in the
internal environment, are essential for the growth and
development of organizations, both in
private and public sector. In Serbia, as in many other countries
that were faced with the
transition process, which began in the late twentieth century, it
was necessary to perform a
number of different organizational and other changes in the
public sector. Public sector reform
was one of the key preconditions for successful transition.
There was a need to make public
enterprises to some extent independent, to abolish monopolies
and to improve public sector by
rational organization of operations and changes in management
style. Some of the planned

changes are implemented more or less successfully, while others
represent a plan for the
future. To make the change possible, there has to exist an
adequate level of knowledge and
skills of managers leading the change. The literature discusses
the various factors that
influence the outcome of organizational change. Kotter (1995)
dealt with the reasons why
organizational change fail and identified eight of these various
factors. Other authors have
identified factors which lead to the success of organizational
changes in public sector
(Fernandez, Rainey, 2006), such as, inter alia, the construction
of the internal support to
3
change and overcoming the resistance of employees. Almost
every organizational change
requires that an employees change some of their routine
operations, the way they perform

their work and their behavior (Petković, Janićijević, Bogićević-
Milikić, 2010: 562).
Therefore, it is of great importance to understand the opinions
and views of employees
regarding organizational change in order develop the necessary
tools to motivate employees to
change, so that their resistance can be reduced to the lowest
possible level. The very important
leader’s role in the process of implementing organizational
changes is related to overcoming
resistance to changes, and it represents one of the most
significant as well as most difficult
tasks of a leader in the process of their implementation.
Reducing change resistance is
important because employees’ reactions to change are
considered critical for the success of
change efforts (Van Dam et al. 2008). There is a huge consensus
that a key factor in
determining the success of any organizational change involves
employees acceptance of it
(Oreg and Berson 2011). In this study, we will deal with
measuring the degree of employee’s
resistance to organizational changes in public organizations in
Kragujevac, in order to

highlight the impact that their views have on the risk of the
change implementation process. In
addition, the focus was put on a wide set of variables that
proved to be important for
understanding resistance to change, such as: age of respondent,
level of education, position in
the organization, personal monthly income and satisfaction with
personal monthly income.
2. ORGANIZATIONAL CHANGE MANAGEMENT
More and more organizations are engaged in multiple and
ongoing-change events, such as the
introduction of new top management teams, reorganizations or
restructurings, downsizing,
layoffs, and new strategic initiatives. The potential impacts of
change on people working in
organizations are significant: on the positive side, change can
provide a wealth of
opportunities for growth and development; but, on the negative
side, there can be substantial
costs to having to negotiate new relationships, skills and
patterns of activity (Cartwright,
Cooper, 1992; Kotter, 1995). In order for changes to be
successful and to lead to positive

results, it is necessary to properly manage the process of their
implementation by agents of
change. Agent of change is the individual or group responsible
for managing the changes
actions. They may or may not be managers, the current
employees in the organization, new
employees or external consultants (Robbins, Judge, 2009:646).
There are different models of
change management, all of which consist of certain interrelated
activities that may be called
phases or steps. Different authors recommend different steps in
change management, which
actually represent a kind of instructions or recommendations for
managers who lead this
process. According to (Kotter,1998), mentioned activities can
be classified into ten groups:
Change initiaion - This is the phase where the management of
the organization has to
recognize the need for change, as well as their causes, to
overcome inertia, make the decision
to initiate change, choose an agent of change, define its tasks
and to establish a productive
relationship with him.

Diagnosis of the state of the organization and the causes of
change - This is a group of
activities in the process of change through which a state of
organization and the reasons why
change is necessary are determined. This group of activities is
performed by the diagnostic
model and includes data collection and analysis in order to
determine the causes of changes.
Creating a vision and making a plan for new organization – The
phase includes activities of
planning the desired state of organization to which the change
should lead. This module also
includes the creation of a vision of the new organization, as
well as its expansion throughout
the organization.
4
Planning and organizing the proces of change – This step in the
management of

organizational change involves planning the flow of change, as
well as the building of the
structure which will support realization of change.
Motivation for change - Management to motivates employees to
accept and implement
change and raises the energy needed to successfully implement
changes.
Change implementation - The sixth stage involves the
implementation of a change in the
strict sense. During this phase, managers perform changes in
several cycles. They plan and
implement initial success and support and accelerate the
implementation of change.
Management of power structures and political processes – One
group of activities must be
commited to shaping the power structure in the organization
which will, if not favor, then at
least enable changes.
Management of personal transition – This group of activities is
commited to work with
people. During the implementation of change, management has
to manage emotions and give
support to personal transition of members of the organization.
They have to provide training

and counseling, and the largest possible participation of
employees in changes. Most
importantly, management has to reveal and overcome resistance
to change.
Stabilization of change through their involvement in the
organizational culture – During
this phase, the implemented changes are being frozen, which
means they are being included in
the organizational climate and therefore becoming legitimate
way of organizing and
functioning of enterprise.
Monitoring and control of organizational change – The last
stage in managing
organizational change is to monitor, measure and control the
effects of changes.
It is possible to single out two general objectives of
organizational change. First, the planned
change aims to increase the organization's ability to adapt to
changes in the environment.
Second, it seeks to change the behavior of employees. (Robbins,
Judge, 2009:646). As each
organizational change requires a change in employee behavior,
it is of great importance to

ensure acceptance of change by employees, motivate them to
actively participate in the
change implementation, and reduce the change resistance, as
much as possible.
3. RESISTANCE TO CHANGE
Employee motivation for change is an extremely important task
without which it is not
possible to successfully make organizational changes. They
must be confident that the change
will have a positive impact on themselves and their
organization. Only then, the people will
accept the changes and commit to its implementation. Managers
who act as agents of change
are largely responsible for the motivation of employees. They
must apply the appropriate
techniques and strategies of motivation, but above all, they must
be personally motivated and
willing to change in order to transfer their enthusiasm to the
employees. The literature reveals
two basic strategies to motivate employees to change
(Janićijević, 2008:416):
1. Creating dissatisfaction with the current situation -
Dissatisfaction with the current

situation can be caused by various reasons, such as: informing
about the real situation and
prospects of the company; setting high standards of performance
or disconfirmation of
existing behavior and the development of a sense of guilt.
2. Development of positive expectations of change - Positive
expectations of change can be
created by the development of psychological security and
expectations of gains from the
change. It is necessary to create and present a vision of the new
organization and to
develop positive expectations of the new organization.
Therefore, it is extremely important
to apply the following techniques to motivate employees, such
as: communication with
employees, exposing objective information, teamwork, planning
and control.
5
It is very important to perceive that resistance is a common

phenomenon which follows all
types of changes and it should be seen as a natural and
inevitable occurrence
(Robbins,1992,p.193). It is precisely resistance that can be a
sign of something significant and
unusual happening in a company, and if it is a case of radical,
transformational moves which
bring bigger changes, strong and often dramatic reactions
should be expected.
When faced with changes for the first time, a common human
reaction is fear. The reason for
this is the fact that the change involves abandoning the status
quo and the way in which the
work was previously performed, and the acceptance of the
unknown. Even when the change is
positive, there is always a some sense of uncertainty. Hence,
change agents are often faced
with the problem that concerns not only low motivation, but
also the active or passive
resistance of employees to change.
In order for managers to successfully overcome the resistance,
it is necessary to understand
the cause of this resistance, as well as to develop the proper
tactics by means of which this

problem is solved.
The following four may be pointed out as the most important
causes of change resistance
(Kotter, Schlesinger, 2008:132-134):
1. Parochial self-interest – People think that they will lose
something of value as a result of
the change. In these cases, people focus on their own best
interests and not on those of
total organization.
2. Misunderstanding and lack of trust – People also resist
change when they don’t
understand its implications and perceive that it might cost them
much more than they will
gain. Such situations often occur when trust is lacking between
the person initiating the
change and the employees.
3. Different assesments – Another common reason people resist
organizational change is
that they assess the situation differently from their managers or
those initiating the change
and see more costs than benefits resulting from change, not only
for themselves but for
their company as well.

International Journal of Human Resource Studies ISSN 2162-.docx

International Journal of Human Resource Studies ISSN 2162-.docx

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International Journal of Human Resource Studies ISSN 2162-.docx