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37 Chapter II Review of Literature The earlier chapter presented the introduction to the study. This chapter is devoted to present the review of literature on motivation and job satisfaction. 2.1 MOTIVATION Meaning of Motivation The globalization of businesses and the advancement of information technologies have brought changes that are reshaping the world of work. They alter the way business is done, the way employees behave and the way managers manage their employees. Motivating and retaining employees has become an important and complex task for the managers. The key to performing this task well is to find out more about the factors that motivate employees. It has become important to establish the correlation between management and motivation of employees. To have a sound human resource management strategy that attracts retains and motivates the valuable employees, it is important that the organizations find out what the employees are looking for from their jobs. The organization should constantly assess the employees’ motivation levels and also what they need, want or expect from their work. In the age of Scientific Management, forwarded by Frederick Winslow Taylor in the 1890’s, only monetary rewards were considered to be important to employees. This rather limited view of employees’ needs and rewards gave way in the 1920’s when a series of experiments at the Western Electric Company’s Hawthorne plant led to a new paradigm of worker motivation. The Hawthorne experiments, as they came to be known, led to a view that saw employees motivated more by social needs rather than by purely economic ones. This viewpoint, known as the Human Relations Movement, attempted to identify and satisfy the social needs of the worker in the belief that a satisfied worker worked
Transcript
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Chapter II

Review of Literature

The earlier chapter presented the introduction to the study. This chapter is devoted to

present the review of literature on motivation and job satisfaction.

2.1 MOTIVATION

Meaning of Motivation

The globalization of businesses and the advancement of information technologies have

brought changes that are reshaping the world of work. They alter the way business is

done, the way employees behave and the way managers manage their employees.

Motivating and retaining employees has become an important and complex task for the

managers. The key to performing this task well is to find out more about the factors that

motivate employees.

It has become important to establish the correlation between management and motivation

of employees. To have a sound human resource management strategy that attracts retains

and motivates the valuable employees, it is important that the organizations find out what

the employees are looking for from their jobs. The organization should constantly assess

the employees’ motivation levels and also what they need, want or expect from their

work.

In the age of Scientific Management, forwarded by Frederick Winslow Taylor in the

1890’s, only monetary rewards were considered to be important to employees. This rather

limited view of employees’ needs and rewards gave way in the 1920’s when a series of

experiments at the Western Electric Company’s Hawthorne plant led to a new paradigm

of worker motivation. The Hawthorne experiments, as they came to be known, led to a

view that saw employees motivated more by social needs rather than by purely economic

ones. This viewpoint, known as the Human Relations Movement, attempted to identify

and satisfy the social needs of the worker in the belief that a satisfied worker worked

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38

harder than an unsatisfied worker. Rewards under the Human Relations viewpoint,

therefore, also included the relationships employees form with their fellow workers. It

was thus seen to be in the organization’s interest to provide an environment that allows

and encourages social relationships to develop. Finally, the Human Resources Movement

began to concentrate more on the needs of the individual rather than the interactions

within working groups.

The Human Resources Movement views the worker as being largely ‘pre-motivated’ to

perform to the best of their abilities and it becomes the task of management to provide

conditions whereby workers can meet their own individual goals at the same time as

meeting those of the organization. Rewards under the Human Resources Movement

therefore include a wide range of factors, such as money, affiliation, achievement and

performing a meaningful job.

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

and services. What perhaps changed this way of thinking about employees was research,

referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 found

that employees are not motivated solely by money and employee behavior is linked to

their attitudes.

The amount of research on motivation has varied through time. During the 1930s and

1940s, work motivation became prevalent through drive theories i.e. reinforcement or

need theories. While the 1950s and 1960s showed a decrease in the amount of attention

on work motivation, however further theories were developed based on the cognitive

perspective which provided the basis for future theories in the 1960s such as Vroom

(1964) and Locke (1968).

Motivation by definition refers to what activates, directs human behavior and how this

behavior is sustained to achieve a particular goal. Also it can be defined as the set of

processes that arouse, direct and maintain human behavior towards attaining some goals.

Motivating the workforce of an organization to work more effectively towards the

organization’s goals is perhaps the most fundamental task of management. Organizations

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motivate their workforce to perform effectively by offering those rewards for satisfactory

performance and perhaps punishing them for unsatisfactory performance. Over the past

hundred years or so there has been an evolution in the view of what the term ‘rewards’

actually means in an organizational context. According to psychologists, people can also

be motivated to do things even though there is no external reward but the behaviour itself.

In this case people are said to be intrinsically motivated Deci (1975).

According to McCormick and Tifflin (1979), motivation can be either intrinsic or

extrinsic. Intrinsic motivation stems from motivations that are inherent in the job itself

and which the individual enjoys as a result of successfully completing the task or

attaining his goals. While extrinsic motivations are those that are external to the task of

the job, such as pay, work condition, fringe benefits, security, promotion, contract of

service, the work environment and conditions of work. Such tangible motivations are

often determined at the organizational level, and may be largely outside the control of

individual managers. Intrinsic motivation on the other hand are those rewards that can be

termed “psychological motivations” and examples are opportunity to use one’s ability, a

sense of challenge and achievement, receiving appreciation, positive recognition, and

being treated in a caring and considerate manner.

According to Dessler (1980) motivation is both one of the simplest and most

complex of management jobs. It is simple because people are basically motivated or

driven to behave in a way which will lead to rewards. Daschler and Ninemeier (1984)

said “Motivation is a state or force within an individual that makes the employee act in a

way designed to achieve some goal. Taking this broad definition and putting it into the

context of supervision, motivation is what the supervisor does to encourage and influence

other people to take necessary action”.

Kovach (1987) stated that motivation is the force within a person that makes him/her act

in a certain way to achieve some goal. Motivation is, in fact, an internally generated

forces or drive within the individual which provides an incentive for the employee to act.

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Research suggests that as employees' income increases, money becomes less of a

motivator and as employees get older, interesting work becomes more of a motivator.

The changing view of organisational rewards and employee motivation has led to a

multitude of theories of exactly how the job rewards influence the motivation and

performance of employees. Steers (1987) stated that “a comprehensive theory of

motivation at work must address itself to at least three important sets of variables which

constitute the work situation” i.e. the characteristics of the individual, the characteristics

of the job and the characteristics of the work environment. Steers points out that, at

present, no model exists that accounts for variables from each of the three major areas.

According to Drummond (1990) motivation is in the individual and helps to explain

behavior. Motivation is an intricate inside process with three components: what drives the

individual to behave in certain ways, what steers the behavior, and what maintains the

behavior. To satisfy the employees’ need is very difficult because each employee has

different characteristics that affect behavior. The factors that organizations have to be

concerned with are self-concept, attitudes, values, interests, feelings, personality, and life

experiences. They have to encourage employees through a positive organizational climate

that is motivating. This is due, in part, to the fact that what motivates employee changes

constantly Bowen & Radhakrishna (1991). It is not possible to understand, explain or

predict human behavior without some knowledge of motivation” Cai (1993). The

Hawthorne Studies began the human relations approach to management, whereby the

needs and motivation of employees become the primary focus of managers Bedeian

(1994).

Bong (1996) generally, motivation models may be classed as belonging to one of two

theoretical orientation groups – cognitive models and social-cognitive models. Cognitive

models of motivation “place greater weight on understanding learners’ covert thought

processes, often overlooking the impact of social and contextual variables” i.e. they focus

on the individual characteristics at the expense of the job and work environment

characteristics. A social-cognitive approach focuses on formulating and testing specific

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hypotheses regarding the nature and direction of influence from social and contextual

variables. These different theoretical orientations often lead academic motivation

researchers to different conclusions as to which potentially relevant variables to include

in or exclude from their conceptualizations.

Bong, in a paper highlighting the problems in academic motivation research, stated that

the fact that no single model has been able to capture the full dynamics of motivated

behaviours was due to “different theoretical orientations of investigators working in the

field, who tend to emphasize a particular dimension of motivational phenomena over the

others”. He suggests that there are two solutions to the formulation of a broader model of

motivation. One possible solution for integrating numerous motivational constructs and

findings is to create a general model.

An intrinsically motivated individual, according to Ajila (1997) will be committed to his

work to the extent to which the job inherently contains tasks that are rewarding to him or

her. An extrinsically motivated person will be committed to the extent that he can gain or

receive external rewards for his or her job. He further suggested that for an individual to

be motivated in a work situation there must be a need, which the individual would have

to perceive a possibility of satisfying through some reward. If the reward is intrinsic to

the job, such desire or motivation is intrinsic. But, if the reward is described as external to

the job, the motivation is described as extrinsic.

The social-psychological model of the interaction between extrinsic and intrinsic

motivation is introduced in economics as the crowding theory by Frey (1997). Frey

assumes, in line with Deci that intrinsic motivation increases when individuals perceive

an external intervention as supportive. In this case, a crowding-in effect is said to occur.

An attempt has been made for a better understanding of what the theoretical construct of

intrinsic motivation in the context of paid work comes down to. Even though the

theoretical importance of intrinsic motivation is widely accepted currently, in practice

organizations don’t seem to pay much attention to intrinsic motivation but focus mainly

on extrinsic stimuli in their attempt to motivate their employees. Motivation is

operationally defined as the inner force that drives individuals to accomplish personal and

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organizational goals. Frey’s definition of intrinsic motivation, therefore, also includes

feelings of obligation, such as work morale. However, if individuals perceive an external

intervention as controlling, intrinsic motivation decreases and a crowding-out effect is

said to occur. Why do we need motivated employees? The answer is survival Smith

(1998). Motivated employees are needed in our rapidly changing workplaces. Motivated

employees help organizations survive. Motivated employees are more productive.

Kreitner (1995), Bedeian &Linder (1995), Higgins (1994) all cited in Linder (1998)

defined motivation as “the psychological process that gives behavior purpose and

direction, a predisposition to behave in a purposive manner to achieve specific unmet

needs, an unsatisfied need that will to achieve respectively.

The assumption that certain activities provide their own inherent reward raises the

question of how external rewards will affect people’s intrinsic motivation for these

activities Deci, Koestner and Ryan (1999). To be effective, managers need to understand

what motivates employees within the context of the roles they perform. Of all the

functions a manager performs, motivating employees is arguably the most complex.

Motivation is probably one of the most important human resource management

responsibilities Jerris (1999). Considerable research has been conducted regarding the

definition of motivation. The amount of effort people are willing to put in their work

depends on the degree to which they feel their motivational needs will be satisfied. On

the other hand, individuals become de-motivated if they feel something in the

organization prevents them from attaining good outcomes. It can be observed from the

above definitions that, motivation in general, is more or less basically concern with

factors or events that moves, leads, and drives certain human action or Inaction over a

given period of time given the prevailing conditions.

Young (2001) suggests that motivation can be defined in a variety of ways, depending on

who you ask. Ask someone on the street, you may get a response like “it’s what drives

us” or “it’s what makes us do the things we do.” Therefore motivation is the force within

an individual that account for the level, direction, and persistence of effort expended at

work.” It is important to note, however, that Frey uses the term external intervention.

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According to Frey, intrinsic motivation is not only influenced by external rewards but

also by regulations and commands. In Frey’s definition, intrinsic motivation has

‘acquired the meaning of being motivated to do something without being forced by

commands and without being paid to do it’. In order to be able to understand how

changes in organizations may affect employee performance it is of great importance to

understand the effects that changes in the organization may have on employee

motivation. While employees might be able to perform a certain job, if they aren’t willing

to give their utmost while doing this, employee performance will be low. Employee

motivation, therefore, is an important determinant of performance at the workplace

Houkes (2001).

The concept of employee motivation has been the subject of study in many different

disciplines. However, within each discipline different theories prevail about what

motivates people to go to work each day and how these motivations can be affected by

changing the rewards of working. While economic theory attributes changes in behaviour

to changes in relative prices, psychology generally focuses on people’s preferences Frey

et al (2001). The term motivation is derived from the Latin term ‘movere’, which means

‘to move’ Baron, Henley, McGibbon & McCarthy (2002). Moreover, the research

performed so far is primarily based on activities for which people typically don’t expect

to be paid, such as puzzle solving or volunteer work. In situations in which people do

expect to receive a financial reward, external interventions may have a different or no

impact on intrinsic motivation. Because financial rewards are typically expected in

economic contexts, additional research is needed to make the point that in the context of

paid work external interventions may affect the intrinsic motivation of employees also.

The extrinsic and intrinsic rewards employees derive from their job as well as the

productivity of these rewards therefore influence the level of well-being and thus the

level of extrinsic and intrinsic motivation employee’s display within their job. Therefore,

changes in the possibilities of producing well-being affect the level of employee

motivation. External interventions are assumed to affect extrinsic and intrinsic motivation

by influencing the extrinsic and intrinsic rewards employees derive from their job. In

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addition, the intrinsic motivation of the employees is assumed to be influenced by the

way in which an external intervention is perceived. If, on one hand, an external

intervention is perceived as controlling, the productivity of the intrinsic rewards that are

derived from performing the activity decrease and intrinsic motivation will be crowded-

out. On the other hand, if an external intervention is perceived as supportive, the

productivity of the intrinsic rewards that are derived from performing the activity

increase and intrinsic motivation will be crowded-in. In social psychology, the

phenomenon of crowding out is known as ‘the hidden cost of reward’ or ‘the over

justification effect’ Frey and Osterloh (2002).

A great many definitions of the motivation construct have been postulated over the

several decades during which this multi-faceted concept has been researched. Greenberg

et al (2003) defines motivation as ‘the set of processes that arouse, direct, and maintain

human behavior towards attaining some goal”. Bassett-Jones &Lloyd (2005) presents

those two views of human nature underlay early research into employee motivation. The

first view focuses on Taylors, which viewed people as basically “lazy and work –shy”

and thus held that these set of employees can only be motivated by external stimulation.

The second view was based on Hawthorn findings, which held the view that employees

are motivated to work well for “its own sake” as well as for the social and monetary

benefits this type of motivation according to this school was internally motivated.

2.2. Historical development of the employee motivation concept

The traditional model of thought on motivation dominated during the period 1900 to

1930. This manner of conceptualizing motivation is connected mostly to the thinking of

Frederick Winslow Taylor and the scientific school of management. Their rather

mechanistic point of departure was that workers generally do not want to work, and need

to be motivated by financial reward. In other words, people are willing to work, but only

if they get paid for it.

The traditional model made way for the human relations model that dominated between

1930 and 1960. Over time it became evident that the traditional model of motivation was

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not applicable to all circumstances or people, as workers appeared to be able to motivate

themselves in many cases, and to not require constant supervision and control. At the

same time, workers became increasingly suspicious of management, as their

remuneration started losing equitability with their productivity. Worker dissatisfaction led

to the establishment of the first trade and labour unions. Gradually, the mechanistic ‘man-

machine’ idea of the previous movement made way for a better understanding of the

nature of people, and especially of the importance of social relationships in the workplace

on people’s motivation to work, and the human relations model of motivation was

established.

Around the 1960s it became popular to look upon motivation in terms of human

potential. Although the human relations school represented a considerable advancement

on traditional thinking, it could also not provide a complete explanation for of behaviour

in the workplace. It gradually made way for the human potential model. According to

theorists like McGregor, Maslow, Argyris and Likert, the human relations view simply

allowed for a more sophisticated way than financial reward to manipulate the worker.

They maintained that a worker is motivated by much more than just money or satisfying

social relationships, and that especially a sense of achievement resulting from performing

meaningful and challenging work is a potent employee need. They also argued that

people are already motivated to perform their tasks effectively, and do not necessarily

regard work as unwanted or unpleasant. This school of thought remains dominant in

motivation theorising and application today.

Cofer and Appley (1968) provided an interesting account of the early historical

development of the employee motivation concept. They dated interest in motivational

phenomena back to Darwin and Freud, and held that it is probably true that the form of

the early dominant motivation questions stemmed largely from concepts relating to

Darwinian evolution. Freud, and various others, was influenced by these concepts.

However, most of the concepts in vogue have pre-Darwinian origins, such as the notion

of evolution, instinct, hedonism, rationality and irrationality, unconscious processes,

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active mental forces, and mechanism and determinism. Primitive man, in his comparison

of himself to animals, must have discovered that a spiritual difference existed. This

represented the earliest thoughts on dualism in humans, i.e. the belief in the co-existence

of body and spirit or soul, which remained an important field of study and debate in

Western philosophy, from Aristotle through the Church philosophers, such as Augustine

and Aquinas, to Descartes and beyond. The manner in which the antecedents of

behaviour were conceptualised at any particular time in history has given rise to the

establishment of many theories on the motivation behind behaviour. Van Niekerk (1987)

and Du Toit (1990) provide a brief account of how the thinking of the various schools of

thought, from the religious theorists to the philosophers and social scientists, has evolved

over time.

2.3. Definitions of employee motivation

Campbell and Pritchard (1976) defined as “a label for the determinants of the choice to

initiate effort on a certain task, the choice to expend a certain amount of effort, and the

choice to persist in expending effort over a period of time”. Motivation, therefore, closes

the satisfaction-performance loop, and has to do with a set of interrelated factors that

explain an individual’s behaviour, holding constant the variables controlled or influenced

by management, as well as by individual skills, abilities and knowledge.

Beach (1980) saw motivation as a willingness to expend energy to achieve a goal or

reward. This author took somewhat of a behaviourist approach in stating that behaviour

that is perceived to be rewarding will be repeated, whereas behaviour that goes

unrewarded or is punished, tends to be extinguished. He recognizes intrinsic motivation

related to the job content, and that which occurs when people perform an activity from

which they derive satisfaction from simply engaging in the activity itself. Further he

regarded extrinsic motivation as related to the job environment, which provides a person

with the incentives and rewards he or she receives after having performed the work.

Churchill (1985) stated that studies over the years have shown little relationship between

measures of job satisfaction and performance outputs. Highly satisfied workers may be

poor performers, whereas highly dissatisfied workers may be good performers. Several

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variables influence the relationship between job satisfaction and job performance;

although no direct causal relationships between these have been identified as yet.

However, it appears that motivation might account for much of the link between an

employee’s job satisfaction and job performance. In practice, proponents of this view

would focus on establishing an environment conducive to satisfying and maintaining

social interrelationships at work. From the perspective of self-actualizing man, people are

intrinsically motivated, and take pride in their work, and derive satisfaction from their

accomplishments. Within this approach, workplace reward systems are highly

performance-oriented. Lastly, the complex man view recognizes that people are

motivated by a great variation of motives, emotions, experiences and abilities, and that

these change over time as new motives are learnt, and new skills change their attitudes

towards their jobs. Organizations supporting this perspective offer highly individualized

reward structures, and environments and ways in which employees are allowed to

perform their duties.

The fundamental point of departure should be a thorough understanding of the nature of

the individual, e.g. his or her needs, values, beliefs, expectancies, drive levels and habits.

It is interesting to note that the concept of organizational commitment has come to partly

replace that of motivation within the field of organizational behaviour Lewicki (1981).

While the concept of motivation is linked to individualistic and task-centered reward

systems, commitment seems to be linked to the identification of employees with a

collective, that is, in terms of corporate values and norms. As such, management is

concerned with cultivating motivation towards realizing the mission and goals of the

organization, which are far above the ambitions and goals of any individual in it.

Employee motivation was viewed as an innate force, shaped and maintained by a set of

highly individualized factors that may change from time to time, depending on the

particular needs and motives of the employee. Environmental forces, such as those

related to the job itself and to the organization, do not have a causal link with motivation,

but impact on the level of motivation experienced by the employee. Together, the innate

and environmental forces determine an employee’s behaviour at work. Motivation was

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also regarded as a multi-dimensional concept that manifests in behaviours that may be

observed, measured and, to some extent at least, predicted. As mentioned earlier the

concept of motivation is very important in terms of organizational effectiveness, as it

constitutes the crucial link between employee job satisfaction and employee performance,

which in turn determines organizational profitability and success. In their quest to

maintain an optimally motivated workforce, management’s focus should therefore be on

attending to the myriad of job-specific, as well as organizational factors which have been

shown to contribute towards employee job satisfaction and motivation.

Beck (1983) expressed a similar view, and stated that motivation is concerned with

explaining the variation in behaviour, such as why some people work harder than others.

Work characteristics in this regard refer to specific characteristics of a person’s job, for

example its task variety, whereas personal characteristics include those determined by a

person’s personality, for example an intrinsic need for achievement.

Van Niekerk (1987) saw work motivation as the creation of work circumstances that

influence workers to perform a certain activity or task of their own free will, in order to

reach the goals of the organization, and simultaneously satisfy their own needs. In the

field of organization psychology, work motivation is clearly approached from several

angles. As a result, a single comprehensive definition of motivation, which covers all

purposes in the field, is not possible.

Du Toit (1990) added that three groups of variables influence work motivation, namely

individual characteristics, such as people’s own interests, values and needs, work

characteristics, such as task variety and responsibility, and organizational characteristics,

such as its policies, procedures and customs. The concept of motivation is therefore

particularly useful in its ability to increase general understanding and prediction of

behaviour. Gouws (1995) defined motivation as an inner wish or urge that originates with

an individual, either consciously or unconsciously, to complete a task successfully

because it is enjoyable, and not necessarily for what will be received in return.

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Petri (1996) also regarded motivation as the forces acting on or within a person to initiate

and direct behaviour. It explains differences in intensity of behaviour, and why behaviour

occurs in one situation, but not in another. Pinder (1998) contended that an essential

feature of this definition is that work motivation is an invisible, internal and hypothetical

construct, and that researchers therefore have to rely on established theories to guide

them in the measurement of observable manifestations of work motivation. In terms of

equity theory for example, work motivation is expected to manifest in both attitudinal

(e.g. job satisfaction) and behavioural (e.g. performance) measures, whereas in terms of

goal-setting theory the primary manifestation of motivation is behavioural (e.g. enhanced

performance when ability remains unchanged).

Pinder (1998) described work motivation as the set of internal and external forces that

initiate work-related behaviour, and determine its form, direction, intensity and duration.

The concept focuses on events and phenomena of the work context only, and includes the

influence on work behaviour of both environmental forces and those inherent in the

person. Schultz and Schultz (1998), regarded motivation as simply the personal and

workplace characteristics that explain why people behave the way they do on the job.

In an age where retaining talent is crucial to their prosperity, organisations realize that

they need to do a better job at letting employees know that their work matters, by

stepping up employee recognition Clarke (2001). Fortunately there also appears to be

acknowledgement of the fact that people are inspired in dramatically different ways, and

that employee motivation should never take a one-size-fits-all approach Terez (2001).

Baron et al. (2002) concurred, and added that motivation is a complex phenomenon best

understood within a multivariate systems framework. Such a comprehensive view should,

at the very least, include the following aspects. A considerable field of interest covers the

relationship of extrinsic reward and work motivation, and many organisations have

responded strongly to its findings. Successful organizations often attribute much of their

success to a corporate culture that focuses on employee recognition Wiscombe (2002).

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Spector (2003) described motivation as an internal state that induces a person to engage

in particular behaviours, and held that motivation may be viewed from two angles. On the

one hand, motivation encompasses direction, where a particular behaviour is selected

from a choice of behaviours. It refers to the amount of effort put into a task, and

persistence, which denotes the person’s continuing engagement in the selected behaviour.

On the other hand, motivation is also concerned with a desire to achieve a certain goal,

which derives from the particular individual’s own needs and desires.

2.4. Theories of Motivation

Even though much research has been conducted on the field of financial motivation and

many researchers and writers have proposed theories on the concept of financial

motivation, and its role in enhancing employee’s performance in every organization some

of these models have been widely used and accepted by today’s organizations leaders.

According to Petri (1996) the vast array of motivation theories are based on differing

approaches to the origins or sources of motivation. These can be energy, heredity,

learning, social interaction, cognitive processes, activation of motivation, hedonism or

growth motivation.

Motivation research draws on a large number of theoretical perspectives. Although some

of these appear to be less influential than when they were originally postulated, such as

Maslow’s hierarchy of needs theory Wicker & Wiehe (1999). Their contributions as

foundation layers and inspirations for subsequent theories are still evident and

acknowledged. Cognitive theories do not focus directly on work as a potential source of

motivation. They rather focus on the cognitive processes, such as thoughts, beliefs and

values, which people use to make choices regarding their behaviour at work Schultz &

Schultz (1998). For this reason these theories are also referred to as process theories.

Examples include equity, expectancy and goal-setting theories.

Needs-based theories, also referred to as content theories due to their explanation of the

content of motivation Hadebe (2001). He proposes that internal states within individuals

energise and direct their behaviour. These internal states are typically referred to as

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drives, needs or motives in these theories, of which those of Maslow, McGregor and

Herzberg are well-known examples. Drive and reinforcement theories are based on

behaviouristic approaches, which argue that reinforcement conditions behavior. A

behaviour that has been rewarded in the past will tend to be repeated, and behaviour that

has been punished previously, will tend to be extinguished. Depending on the particular

approach adopted, motivation theories are generally classified into three categories,

namely needs-based, cognitive, and drive and reinforcement theories Baron et al. (2002).

2.4.1 Needs-based theories

2.4.1. a. Maslow’s hierarchy of needs theory

One of the most often-quoted motivation theories is that of Abraham Maslow, which he

introduced in 1943 Van Niekerk (1987). The basic tenet of the theory is that people are

motivated by their quest to satisfy their needs, or deficiencies, which may be grouped in

five categories, and that these needs occur in a specific hierarchy, where lower order

needs have to be satisfied before those of a higher order Gouws (1995). Maslow (1968)

asserted that “gratification of one basic need opens consciousness to domination by

another”. Physiological needs are related to basic survival, e.g. hunger or thirst. Safety

needs do not only apply to physical safety and security, but also to a person’s striving for

personal security, such as a steady job. Social needs refer to friendship, love and social

acceptance and support, whereas egotistical needs refer to recognition, respect and

achievement. Self-actualisation, Egotistical needs or Esteem needs, Social needs, Safety

needs and Physiological needs involve a person’s desire to be respected by others and by

him- or herself. Self-actualisation occurs at the pinnacle of the needs hierarchy, as it

represents a person’s striving towards the full development of his potential, which is

essentially never completely attained Gouws (1995). In addition, one of its main

constructs, the self-actualisation concept, has become very popular with especially

managers and executives who have accepted this high-level need as a potent motivator

Schultz & Schultz (1998).

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Over time, little empirical evidence has been produced to support the idea of a needs

hierarchy. It developed an idea that as needs are satisfied, their importance diminishes

Baron et al. (2002). These shortcomings have been addressed in Alderfer’s Existence-

Relatedness-Growth (ERG) theory, which is an expansion of Maslow’s theory. Alderfer

condensed Maslow’s five needs into three, which were termed ‘Existence’ (physical

survival needs), ‘Relatedness’ (social needs) and ‘Growth’ (need for personal growth and

development). Alderfer emphasised that these needs do not occur in a hierarchy, but

rather on a continuum Spector (2003). They may in fact be experienced simultaneously

Alderfer (1969). His theory has intuitive appeal, and is more directly applicable to

employee motivation than Maslow’s needs hierarchy theory. Despite the limited

empirical support, needs hierarchy theory has had a positive impact on organizations, as

it has focused attention on the importance of addressing employees’ needs at work.

2.4.1. b. Herzberg’s two-factor theory

Frederick Herzberg’s well-known theory of motivation was postulated in 1954, and

developed from his work to determine the attitude of workers towards their jobs. The

basic assumption of Herzberg’s theory is that motivation originates from the job itself,

and not from other external characteristics. The factors leading to job satisfaction

(‘motivators’) are separate and distinct from those leading to job dissatisfaction

(‘hygiene/maintenance’ factors) Herzberg (1966).

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Herzberg’s Motivation-Hygiene Theory

Motivation Factors are those factors that Hygiene Factors are those Factors that deal

that deal with job content and lead to job with job context and lead to dissatisfaction.

satisfaction.

Growth Company policies and Administration

Work Itself Supervision

Responsibility Interpersonal Relations

Achievement Status

Advancement Working Conditions

Recognition Security

Salary

The hygiene factors, which may be equated with Maslow’s lower order needs, are placed

along a continuum, from a state of dissatisfaction, to no dissatisfaction. These factors

involve circumstances surrounding the task which do not lead to job satisfaction, but

prevent dissatisfaction, if maintained adequately. Examples of these maintenance factors

include the level of supervision, job status, work circumstances, service conditions,

remuneration and interpersonal relationships. Motivators, on the other hand, have a direct

positive effect on the work situation, and lead to improved productivity. They may be

equated with Maslow’s higher order needs, and are also placed along a continuum – from

a highly motivated to a highly unmotivated state. Aspects of the job itself, e.g. level of

recognition, pleasure of performance, increased responsibility, and opportunities for

advancement and promotion, serve as motivators Herzberg (1966).

The assumed independence of motivators and hygiene factors is a matter of some

controversy in the field, and the theory in general has accumulated little empirical

support. Nevertheless, the theory has had a major impact on organizational psychology

Baron et al (2002). It has led to the re- design of many jobs to allow for greater

participation of employees in planning, performing and evaluating their own work,

referred to as job enrichment Schultz and Schultz (1998). Motivation/hygiene theory has

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been very successful in focusing attention on the importance of providing employees with

work that is meaningful to them Spector (2003).

Bassett-Jones & Lloyd (2005) suggests that the “content theorists led by Herzberg,

assumed a more complex interaction between both internal and external factors. It

explored the circumstances in which individuals respond to different internal and external

stimuli.

2.4.1. c. McGregor’s Theory X and Theory Y

Douglas McGregor’s (1960) Theory X and Theory Y represent his ideas on motivation to

the direction and control of employees in the workplace. According to McGregor’s

Theory X, which articulates the traditional approach to motivation, people are not keen

on work, and try to avoid it where possible. As a result, employees must be coerced and

controlled by punitive measures to perform effectively. The average person is believed to

lack ambition, avoid responsibility, and strive for security and financial compensation

only. They are egocentric, and not at all mindful of organisational goals. Theory Y, in

contrast, reflects a more modern approach to motivation. People seek responsibility, and

are capable of creative problem solving. McGregor regarded Theory Y as a more accurate

and realistic portrayal of human behaviour, since it represents the integration of

individual and organisational goals. McGregor did, however, recognise that the theory

does not offer a complete explanation for employee motivation.

Gouws (1995) noted that McGregor’s theory closely resembles that of Maslow, in that

the factors McGregor believed act as motivators to people at work, are arranged and

satisfied in a similar hierarchy. McGregor also placed physiological needs first, followed

by physical and social needs. Egotistical needs are sub-categorised as self-regard needs

on the one hand, which involve self-respect, self-confidence, autonomy, achievement,

competence and knowledge. On the other hand needs such as the status, recognition,

respect and appreciation a person enjoys. The highest level of need is that of self-

fulfillment, which people attempt to satisfy through continued self-development and

creativity.

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2.4.1. d. McClelland’s learned needs theory

McClelland’s theory, also referred to as the ‘Three-Needs’ theory Gouws (1995) or the

‘Achievement Motivation’ theory Schultz & Schultz (1998), was introduced in 1967. The

theory is based on the view that achievement-oriented people share three major needs.

These are not innate, but acquired through learning and experience McClelland (1966).

McClelland assigned a specific code to each of the three needs, which include:

The need for Power (n/PWR), which denotes the need to control others, influence

their behaviour and be responsible for them;

The need for Affiliation (n/AFF), which refers to the desire to establish and

maintain satisfying relationships with other people;

The need for Achievement (n/ACH), viewed as behaviour directed towards

competition with standards of excellence.

Although not highly influential, McClelland’s theory of motivation was certainly

instrumental in focusing attention on the unusual needs of employees with a strong need

to achieve Beach (1980).

2.4.1. e. Hackman and Oldham’s task enrichment theory

Richard Hackman and Greg Oldham’s model, which was introduced in 1980 is also

known as the ‘job characteristics’ theory The theory is based on the premise that three

psychological states in particular are necessary to enhance a person’s motivation and job

satisfaction. They are

The experience of work as meaningful

The experience of work responsibility, i.e. the level of personal responsibility for

a person’s work

Insight in job performance, i.e. how much insight a person has in how well or

how poorly he is performing on his job.

The more intense the experience of these three states, the higher the person’s motivation

level will be Porter, Lawler & Hackman (1975). The concept of task enrichment has

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proven to be very meaningful and useful in the workplace. Therefore Hackman and

Oldham’s theory continues to stimulate investigation Tyagi (1985).

A meta-analysis of 200 studies, confirmed the positive relationship between job

characteristics, job satisfaction and performance Fried & Ferris (1987). Hackman and

Oldham also identified five task characteristics believed to lead to the above motivational

states. Fundamental to this theory is the notion that the need for personal development,

creativity and challenge has a very significant impact on the successful execution of a

meaningful task. In addition, due to differing individual drives and needs, different

people will respond differently to the same task Van Niekerk (1987). It developed out of

the authors’ research on objective measures of job characteristics that correlated with job

satisfaction and work attendance Schultz & Schultz (1998).

2.4.2 Cognitive theories

2.4.2. a. Equity theory

Equity theory was first introduced by Stacy Adams in 1965. Its basic tenet is that people

are motivated to achieve a condition of equity / fairness in their dealings with other

people, and with the organizations they work for. This theory helped to provide the basis

for studying the motivational implications of perceived unfairness and injustice in the

workplace. It also laid the foundation for more recent theories on distributive (how much

is allocated to each person) and procedural justice (how rewards and job requirements are

determined) Cropanzano & Folger (1996).

In a meta-analysis of many of these theories, Cohen-Charash and Spector (2001) found

that both distributive and procedural justice were related to job performance, job

satisfaction and the intention to quit.

People make judgements or comparisons between their own inputs at work, e.g. their

qualifications, experience and effort, and the outcomes they receive, e.g. pay and fringe

benefits, status and working conditions. They then assign weights to these inputs and

outputs according to their relevance and importance to themselves. The summed total

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produces an output / input ratio, which is the key issue in terms of motivation. If a

person’s output / input ratio is equal to that of another person, equity exists. A state of

inequity leads to tension, which the individual tries to reduce by changing one or more

elements of the ratio, e.g. increase or reduce his effort. Perceived inequity by the person

is therefore the basis for motivation Baron et al. (2002).

Equity theory has stimulated much research, but there has been a decline in interest of

late because of its inability to predict people’s perception of the equitability of their

specific situation. Nevertheless, it has served to direct attention to the importance of

treating employees fairly, and the consequences of failing to do so Spector (2003).

2.4.2. b. Goal-setting theory

Goal-setting theory was first proposed by Edwin Locke in 1968. He described motivation

as the assumption that people’s behaviour is motivated by their internal intentions,

objectives or goals. In other words, by what people consciously want to achieve.

According to Locke and Henne (1986) goals affect behaviour in four ways:

They direct attention and action to those behaviours which a person believes will

achieve a particular goal;

They mobilise effort towards reaching the goal;

They increase the person’s persistence, which results in more time spent on the

behaviours necessary to attain the desired goal;

They motivate the person’s search for effective strategies for goal attainment.

There are several prerequisites for the goal-directed behaviour to effectively improve job

performance Locke & Henne (1986):

a thorough commitment to the specific goal;

regular feedback on the person’s performance towards attaining the goal;

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the more challenging the goal is perceived to be, the better the person’s

performance is likely to be;

specific goals are more effective than vague goals, e.g. “do your best”;

Self-set goals are preferred over organisationally set goals. If this is not entirely

possible, a person needs to at least have input into his own goals.

A meta-analysis of 72 on-the-job studies pointed out that goal setting produces

substantial increases in employee output Locke (1976). It is well supported by empirical

research evidence Locke & Latham (1990). This theory has an intuitive appeal because of

its clear relevance to the workplace Schultz & Schultz (1998).It is currently one of the

most popular theories informing organisational approaches to employee motivation

Spector (2003).

2.4.2. c. Expectancy theory

The original thinking behind what has come to be known as expectancy theory, or

Vroom’s Expectancy-Valence-Instrumentality (VIE) theory can be traced back to the

theorizing of Tolman and Levin in 1932 and 1938 respectively Petri (1996). Vroom was,

however, the first scholar to elaborate on this thinking in a motivational context in 1964

Gouws (1995). Since its origin in the psychological theorising of some 60 years ago, the

expectancy theory has been presented in many variations. Common to all versions is the

basic tenet that people base their behaviour on their beliefs and expectations regarding

future events, namely those maximally advantageous to them Baron et al., (2002).

Vroom’s original theory (1964) posits that motivation or force is a mathematical function

of three types of cognitions, Force = Expectancy x Σ (Valences x Instrumentalities).

Essentially, the theory explains how rewards lead to behaviour, through focusing on

internal cognitive states that lead to motivation. In other words, people are motivated to

action if they believe those behaviours will lead to the outcomes they want. The said

cognitive states are termed ‘expectancy’, ‘valence’ and ‘instrumentality’ Spector (2003).

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Force is the person’s motivation to perform. Expectancy is the perceived probability that

a person has regarding his ability to perform the behaviour required to lead to a desired

outcome, e.g. working hard enough to secure a promotion. This aspect is similar to self-

esteem or self-confidence, which relates to a person’s belief that he can perform at the

required level. Valence is the value or the attractiveness of the outcome to the person.

Instrumentality is the perceived probability that a given behaviour will lead to the desired

outcome. There may be more than one outcome for each behavior. According to Vroom’s

formula, for each outcome a valence and instrumentality are multiplied, and each

resulting product then summed (Σ), and multiplied by the person’s expectancy, to

produce an overall force or motivation score Spector (2003).

Criticism

Expectancy theory has represented a popular and influential approach since its

introduction, but has been criticised for its assumption that people are as calculating and

rational in their decision-making. According to Hadebe (2001) the theory has limited use,

and is more valid for prediction of behaviour where effort–performance–rewards linkages

may be clearly perceived by the individual. It has also been criticised for failing to take

adequate account of people’s cognitive limitations Baron et al. (2002). Consequently,

there has been mixed levels of support for the theory’s usefulness in the workplace.

2.4.3. Reinforcement theories

Reinforcement theories, assume that people’s behaviour is determined by its perceived

positive or negative consequences. It is based on the ‘Law of Effect’ idea, which was first

postulated by Thorndike (1911), and further developed by Woodworth (1918) and Hull

(1943). Hull’s drive theory elaborated on this idea and suggested that effort was the

mathematical product of drive, multiplied by habit, and that habit was derived from

behaviour reinforcement.

According to Wiley (1997) “Modern approaches to motivation may be organized into

three related clusters: (1) personality-based views (2) cognitive choice or decision

approaches and (3) goal or self-regulation perspective. Personality-based views

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emphasize the influence of enduring personal characteristics as they affect goal choice

and striving. Once employees have met the requirements of their own jobs, and attained

certain goals, they expect certain rewards to follow. In this regard, reinforcement theories

have contributed much towards the establishment of a wide array of reward and

performance incentives systems applied in organizations all over the world today Beach

(1980). As such, it provided the basis for the notion that rewards should be contingent

with individual units of productivity Schultz & Schultz (1998).

The term motivation has been used in numerous and often contradictory ways. Goal

directed behavior distinguishes employee’s motivated behaviors from other behavior. The

core of motivating individuals lies in the goal directed aspect of behavior. As a

motivation theory, reinforcement theory has fallen somewhat out of favour, as it merely

describes relations between reinforcement and behavior. This gives little insight into

motivational processes, e.g. whether or not a person wanted a specific reward, or why he

requires. Nevertheless, its relative popularity in the workplace is maintained by research

that has shown that rewards can be highly effective in the enhancement of job

performance. The consequences of behaviour may be tangible, such as money, or

intangible, such as praise Spector (2003).

Benner et al (1995) suggested “motivation is concern with how behavior gets started, is

energized, is Sustained, is directed, is stopped and what kind of subjective re-action is

present in the organization while this is going on. The primary focus was on how and

why questions of motivation, how a certain behavior starts, developed and sustained over

time. It is true that human behavior in general is dynamic and could affect the

individual’s personal altitude as well as factors surrounding that individual. These

exogenous factors eminent from the environment in which the individual operates

generate stimuli to employees. It is my belief that employees in general are goal seeking

and look for challenges and expect positive re-enforcement at all times. Hence it could

only be of benefit if organizations could provide these rewards and factors. Though

employees are financially motivated, motivation could be seen as a moving target, as

what Motivates differs among different people. They may even change from the same

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person over a given period of time. Developments within the modern organization has

probably made motivating employees even more difficult due to the nature of every

individual, behavior increasing the complexity of what can really motivate employees.

According to Bassette-Jones & Lloyd (2005) “expectancy, equity, goal setting and

reinforcement theory have resulted in the development of a simple model of motivational

alignment. The model suggests that once the needs of employees are identified and

aligned in tune with organizational objectives that will lead to high motivation. If poorly

aligned, and then low motivation will be the outcome.For decades, organizational

scientists and practitioners alike have been fascinated by the happy productive worker

thesis. According to this hypothesis, happy employees exhibit higher levels of job-related

performance behaviors than do unhappy employees. However, despite years of research,

support for the happy productive worker thesis remains equivocal. These ambiguous

findings result from the variety of ways in which happiness has been operationalized.

Researchers have operationalized happiness as job satisfaction, as the presence of

positive effect, as the absence of negative effect, as the lack of emotional exhaustion, and

as psychological well-being. Some of these measures exhibit appreciable associations

with job performance; others do not. The circumflex framework is offered as a potentially

useful taxonomy for researchers interested in better understanding and promoting a happy

and productive workforce.

2.5. Job Satisfaction

Employee satisfaction over years has been a key area of research among industrial and

organizational psychologists. There are important reasons why organization should be

concerned with employee job satisfaction. This can be classified according to the focus

on the employee or the organization.

First, the humanitarian perspective is that people deserve to be treated fairly and

with respect. Job satisfaction is the reflection of a good treatment. It also can be

considered as an indicator of emotional well-being or psychological health.

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Second, the utilitarian perspective is that job satisfaction can lead to behavior by

an employee that affects organizational functioning. Furthermore, job satisfaction

can be a reflection of organizational functioning.

Vroom (1964), need/value fulfilment theory, states that job satisfaction is negatively

related to the discrepancy between individual needs and the extent to which the job

supplies these needs. On the other hand, Porter and Lawler (1968) collect the influences

on job satisfaction in two groups of internal and external satisfactory factors. According

to them, internal satisfactory factors are related the work itself such as feeling of

independence, feeling of achievement, feeling of victory, self-esteem, feeling of control

and other similar feeling obtained from work. External satisfactory factors are not

directly related to work itself such as good relationships with colleagues, high salary,

good welfare and utilities.

According to the study conducted by Friedlander and Margulies (1969), it was discovered

that management & friendly staff relationships contribute to the level of job satisfaction.

However, this result contradicts with view of Herzberg (1966) who supported the view

that supervision is irrelevant to the level of job satisfaction. On the other hand, Arvey and

Dewhirst (1976), took 271 scientists as a study sample, and found that the degree of job-

satisfaction of the workers with high achievement motivation exceeded that of workers

with low achievement motivation. Also autonomy is an important concern for employees’

job satisfaction.

Job satisfaction has been defined as “feelings or affective responses to facets of the

(workplace) situation”Smith, Kendall, & Hulin (1969). Wanous and Lawler (1972) refers

job satisfaction is the sum of job facet satisfaction across all facets of a job. The

importance attached to job satisfaction was already significant during the first part of the

20th century. Locke (1976) reported, over 3000 articles and research studies which were

published between 1935 and 1976 – on an average of one publication every five days.

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Locke (1976) defined job satisfaction as “a pleasurable or positive emotional state,

resulting from the appraisal of one’s job experiences.” In general, therefore, job

satisfaction refers to an individual’s positive emotional reactions to a particular job. Job

satisfaction has been one of the most extensively researched topics in the field of "why

we work."

Job Satisfaction has been playing a protagonist role in management research, namely

regarding the job satisfaction-job performance relationship Petty et al (1984). Job

satisfaction comprises employee feelings regarding multiple aspects of the job. There is

also a cognitive component to job satisfaction. This cognitive component is made up of

judgments and beliefs about the job whereas the affective component comprises feelings

and emotions associated with the job. Job satisfaction is also believed to be dispositional

in nature. Another study that has supported the dispositional nature of job satisfaction

found a strong and consistent relationship in attitudes over time as well as a relationship

in attitudes across different situations or settings Staw & Ross (1985).

The concept of job satisfaction enjoys increasing attention from organizations these days,

as it leads to organisational effectiveness. Managers now feel morally responsible for

maintaining high levels of job satisfaction among their staff, most probably primarily for

its impact on productivity, absenteeism and staff turnover, as well as on union activity

Arnold & Feldman (1986). Furthermore, it is the degree to which employees enjoy their

jobs McCloskey and McCain (1987

Rusbult and et al (1983) made a significant contribution to understanding employee-

employer exchange relationships by outlining and testing a model of responses to low job

satisfaction. They suggested primary exchange variables would affect the propensity for

an employee to exhibit a particular type of response behavior. Among these were the

level of overall job satisfaction, and the quality of job alternatives. Behavioral responses

were categorized as exit, voice, loyalty, and neglect. Types of behavior that fall into each

category are illustrated as follows: exit or quit, transfer, search for a different job, think

about quitting; voice or discuss problems with the supervisor or co-workers, suggest

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solutions, seek help from an outside agency; loyalty or waiting and hoping for

improvement, trusting the organization to do the right thing; neglect or reduced interest or

effort, chronic lateness or absenteeism, using company time for personal business,

increased error rate. The responses relate to one another systematically by differing along

the dimensions of constructiveness versus destructiveness and activity versus passivity.

Hence the influences on job satisfaction can be also divided into work-related and

employee-related factors Glisson and Durick (1988).

One reason for this dispositional nature of job satisfaction could come from an

individual’s genetic makeup. Arvey, Bouchard, Segal, and Abraham (1989) found

support for a genetic component to job satisfaction in their study of monozygotic, or

identical, twins reared apart. They found that even when they were not raised together,

identical twins tended to have job satisfaction levels that were significantly correlated.

Because identical twins have the same genetic makeup but are reared apart and as such

do not have the same environmental influences, this similarity in job satisfaction ratings

is argued to represent a genetic component. Job satisfaction, therefore, is seen by many as

fundamental in the world of work. Rosenthal (1989).Given the extensive volume of

research on the topic, little is known about what causes job satisfaction and how the

causal processes have actually worked Jewell (1990).

Reilly (1991) defines job satisfaction as the feeling that a worker has about his job or a

general attitude towards work or a job and it is influenced by the perception of one’s job.

Why do people work? While conventional wisdom dictates that people work for money,

other factors should also be considered. There are psychological, sociological, religious

and cultural reasons to explain why people work. Also consider the role of family,

gender, age, personal beliefs and attitudes regarding why people work (or don't work)

McDaniels (1992). Job satisfaction has an affective or emotional response towards

various aspects of an employee’s work. Judge and Watanabe (1993) reinforced this idea

by stating that there exists a positive and reciprocal relationship between job and life

satisfaction in the short term, and that over time, general life satisfaction becomes more

influential in a person’s life. Some people like to work and they find working an

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important part of their lives. Some people on the other hand find work unpleasant and

work only because they have to.

Job satisfaction tells how much people like their jobs. Job satisfaction is the most studied

field of organizational behavior. It is important to know the level of satisfaction at work

for many reasons and the results of the job satisfaction studies affect both the workers

and the organization. In the workers’ point of view it is obvious that people like to be

treated fairly. If workers feel respected and satisfied at work it could be a reflection of a

good treatment. In the organization’s point of view good job satisfaction can lead to

better performance of the workers which affects the result of the company. Employee

satisfaction is generally considered as the driver of the employee retention and employee

productivity. Satisfied employees are a precondition for increasing productivity,

responsiveness, quality, and customer service Kaplan (1996).

The search for a relationship between job satisfaction and job performance has been

referred to as the ‘Holy Grail’ of organizational behavior research Weiss and Cropanzano

(1996). Companies typically measure employee satisfaction with an annual survey, or a

rolling survey in which a specified percentage of randomly chosen employees is surveyed

each month. Interviews would give wider and better answers but they are time and money

consuming, and questionnaires are easier to compose, deliver and analyze. Elements in an

employee satisfaction survey could include involvement with decision making,

recognition for doing a good job, access to sufficient information to do the job well,

active encouragement to be creative and use initiative, support level from staff functions

and overall satisfaction with company Kaplan (1996). Arnold and Feldman (1986),

promoted factors such as temperature, lighting, ventilation, hygiene, noise, working

hours, and resources as part of working conditions.

Spector, (1997) says job satisfaction is simply how people feel about their jobs and

different aspects of their jobs. It is the extent to which people like (satisfaction) or dislike

(dissatisfaction) their jobs. As is generally assessed, job satisfaction is an attitudinal

variable. In this context, job satisfaction can be considered as a global feeling about the

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job or as a related constellation of attitudes about various aspects or facets of the job.

Each reason is sufficient to justify concern with job satisfaction. Combined they explain

and justify the attention that is paid to this important variable. Managers in many

organizations share the concerns of researches for the job satisfaction of employees. The

assessment of job satisfaction is a common activity in many organizations where

management feels that employee well-being is important.

Spector refers to job satisfaction in terms of how people feel about their jobs and

different aspects of their jobs. Individualism and collectivism are perhaps the most useful

and powerful dimensions of cultural variation in explaining a diverse array of social

behavior. Despite being conducted at widely different times, with different samples, and

using different methods the results of major studies of national variation in value

orientations all feature the cultural dimensions of individualism and collectivism. This

convergence suggests these dimensions are broad cultural syndromes encompassing more

basic elements. They are particularly appropriate in this context because the nature of the

exchange that individual's have with their employer involves the extent to which

individuals perceive themselves to be part of the larger organization, and individualism

and collectivism can be described to what extent they want to contribute to the

organization and what benefits they are looking for. Cultural factors include underlying

attitudes, beliefs and values. The organization that is searching for improvements and

greater work performance from the workers it is highly important to take in notice

cultural factors of the workforce. With the under-standing of cultural diversity the

company can construct successful strategies, management styles, and keep the employees

motivated and satisfied.

Spector’s monograph on job satisfaction related a story about how IBM has conducted

employee opinion surveys which, among other things, attempted to measure job

satisfaction. The high level of job satisfaction at IBM has been equated to an effective

business climate, low turnover rate and an outstanding company reputation. In addition,

Spector reported that this high level of employee satisfaction at IBM has resulted in

attracting high-quality job applicants. By identifying the elements of job satisfaction, and

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then making the necessary changes in corporate policies, procedures and benefits, it is

reasoned that organizations can duplicate the IBM experience.

Schultz and Schultz (1998) emphasized that people spend one third to one half of their

waking hours at work, for a period of 40 to 45 years, and that this is a very long time to

be frustrated, dissatisfied and unhappy, especially since these feelings carry over to

family and social life, and affect physical and emotional health. A concept with such

tremendous effect on personal and organizational life clearly deserves a corresponding

amount of attention. In other words, it is an affective reaction to a job that results from

the comparison of perceived outcomes with those that are desired. Job satisfaction is an

attitude of an employee over a period of his/her job so the factors of job satisfaction and

dissatisfaction changes over the period of time. However, in today's business climate of

continuous changes and uncertainty, the importance of job satisfaction to organizational

performance and individual can be “pay”. Job satisfaction is an attitude and measuring

attitudes at workplace is not an easy task.

Job satisfaction studies have provided substantial evidence that organizational outcomes

such as the profitability of a business unit, turnover, absenteeism, performance and

grievances can be traced directly to how satisfied employees are with their company and

their jobs. "Several very large organizations, such as Sears, Southwest Air and USAA

Insurance Co., have taken measures aimed expressly at increasing job satisfaction of their

employees" Starkweather & Steinbacher (1998). Lower convenience costs, higher

organizational and social and intrinsic reward will increase job satisfaction Mulinge and

Mullier (1998).

Apart from the bread and butter the organization used to act as their sanctuary and no one

was much concerned about the job itself or job satisfaction. Over the period of time

employees have witnessed several eras in modern business history and the concept of

treating humans as assets of the organization has flourished and has done wonders around

the world in terms of growth of companies. The concept of job satisfaction has emerged

and now there are several factors contributing to it which are monetary and non-

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monetary. Job satisfaction is the favorableness or un-favorableness with which

employees view their work and it is affected by both the internal and external

environment of the organization.

Job satisfaction has significance towards human health both physical and mental and is

positively or negatively correlated. Employees spend a major part of their lives at the

workplace hence the factors related to job satisfaction and employee behavior and their

implications are important to measure Oshagbemi (1999). Job design affect the job

satisfaction, as jobs that are rich in behavioral elements such as variety autonomy, task

importance and feedback contribute to employee’s satisfaction. Similarly the employee’s

acceptance by the work group is important to job satisfaction. To sum up each element of

the organization environment and system can contribute to or detract from job

satisfaction William & Keith (2000).

According to Gibson et al (2000) job satisfaction may be defined as an individual’s

expression of personal well-being associated with doing the job assigned. Job satisfaction

depends on the level of intrinsic and extrinsic outcomes and how the jobholder views

those outcomes. These outcomes have different values for different people. For some

people, responsible and challenging work may have neutral or even negative value

depending on their education and prior experience to work providing intrinsic outcomes.

For other people, such work outcomes may have high positive values. People differ in the

importance they attach to the job outcomes. Those differences would account for

different levels of job satisfaction for essentially the same job tasks.

Job satisfaction is simply defined as the affective orientation that an employee has

towards his or her work Price (2001). The importance of job satisfaction in the workplace

is underscored by its inextricable connection to a person’s entire life. Since a person’s job

is an important part of his life, it follows that job satisfaction is part of life satisfaction.

The nature of the environment outside of the job directly influences a person’s feelings

and behaviour on the job Hadebe (2001).

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Researchers have acknowledged that job satisfaction is a phenomenon best described as

having both cognitive (thoughts) and affective (feelings) character. Opkara(2002)

suggested that employee reports of affect at work can be used to measure job satisfaction.

Those affective experiences while on the job are also a cause of job satisfaction. In other

words, employee job satisfaction is the affective state of employees regarding multiple

facets of their jobs. It is an affective reaction to a job that results from the person’s

comparison of actual outcomes with those that are desired, anticipated, or deserved.

Organizations recognise that having a workforce that derives satisfaction from their work,

contributes hugely towards organisational effectiveness and ultimate survival. Job

satisfaction is regarded as related to important employee and organisational outcomes,

ranging from job performance to health and longevity Spector (2003). The dispositional

source of job satisfaction has been supported by studies that show stability in job

satisfaction, both over time and over different situations Ilies & Judge (2004).

The study of job satisfaction is a topic of wide interest to both people who work in

organizations and people who study them. Job satisfaction has been closely related with

many organizational phenomena such as motivation, performance, leadership, attitude,

conflict, moral etc. Researchers have attempted to identify the various components of job

satisfaction, measure the relative importance of each component of job satisfaction and

examine what effects these components have on employees’ productivity. In research, job

satisfaction has been assessed using global aspects as well as multiple facets like salary,

career progression, supervisor, etc Fisher et al (2003).

During the literature review various models have been followed by different researchers

which included various theories. Frederick Hertzberg’s motivation-hygiene theory

proposes that intrinsic factors are related to job satisfaction and motivation, whereas

extrinsic factors are associated with job dissatisfaction. This theory is not much used by

researchers because of its simplicity as the environment have changed a lot yet many

organizations uses their job design techniques based on this theory. The higher the

education level the lower is the job satisfaction Nguyen, Taylor, & Bradley (2003).

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Work conditions are defined as an employee’s work place, work instruments, the work

itself, organization policy, and organizational rules. The dispositional approach of job

satisfaction is not a mirage and individual dispositions do indeed affect job satisfaction

Staw & Cohen-Charash (2005). Variables of encouragement, feedback, a widening pay

scale and clear job description, career development opportunity, supportive leadership

style, easy communication with colleagues and social interaction positively affect job

satisfaction, whereas role stress has a negative influence on it Mrayyan (2005)

The level of job satisfaction is affected by intrinsic and extrinsic motivating factors. The

research showed that the key factors affecting job satisfaction are career opportunities;

job influence, teamwork and job challenge Armstrong (2006). This notion that satisfied

employees will perform their work more effectively is the basis of many theories of

performance, reward, job design and leadership Shipton et al. (2006). Job satisfaction

describes the feelings, attitudes or preferences of individuals regarding work Chen

(2006).

Job satisfaction consists of a number of separate dimensions. The level of job satisfaction

is affected by a wide range of variables relating to individual, social, cultural,

organizational and environmental factors. Rarely can organizations guarantee uniformly

high job satisfaction among members. Thus, behavioral responses of employees to low

job satisfaction, such as absenteeism, turnover, and dissent, are of continuing interest.

Also, increased globalization and changing work force demographics increased the

complexities associated with managing workers. These factors suggest a practical

concern for understanding cultural differences in the nature of exchange relationships

which employees have with their employer and their responses to low job satisfaction in

particular Mullins (2007).

Job satisfaction and dissatisfaction not only depends on the nature of the job, it also

depend on the expectation what’s the job supply to an employee Hussami (2008).

Consequently, numerous researches have been going on job satisfaction for many years.

It is common thought that job satisfaction influences organizational behavior, namely it

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positively affects employee working performance and organizational commitment, and

negatively influences employee turnover Agarwal and Ferrat, 2001; Poulin (1994); Chen

(2006).

Job satisfaction is an attitude that relates to overall attitudes towards life, or life

satisfaction as well as to service quality Illies et al. (2009). Regardless of the success

scholars are proving the connection between Job Satisfaction and Performance, the latter

remains one of the most prominent variables in study in business science and

organizational behavior Spagnoli et al (2012). This subject seems to be relevant for

scholars, managers and employees alike. It is relevant for scholars interested in the

subjective evaluation of work conditions.

2.6. Theories of Job Satisfaction

To help understand the antecedents of job satisfaction, it is informative to examine the

theories of job satisfaction. A recent review of the literature on this subject suggested that

there are four commonly discussed theories on job satisfaction. These include Herzberg,

Mausner and Snyderman's Two-factor Theory (1959), and the Instrumentality Theory

Porter & Lawler (1968).

2.6.1. Two-Factor Theory

The two-factor theory or motivation-hygiene theory was the result of research done in

1957 that led to the belief that job satisfaction and job dissatisfaction are entirely separate

issues. Herzberg et al. (1959) postulated that job satisfaction and job dissatisfaction are

not two extremes of the same continuum but are separate entities, and the factors that

produce job satisfaction have no impact whatsoever on job dissatisfaction.

Herzberg’s two-factor theory postulates that Maslow's lower level needs are a separate

issue as compared to the higher needs in the Maslow theory-of-need hierarchy Maslow

(1943). The physiological and safety needs are considered to be "maintenance" or

hygiene and a lack of fulfillment of these needs results in job dissatisfaction.

Interestingly, the two-factor theory suggests that job satisfaction is not produced when

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these maintenance needs are met. These lower level needs are necessary but are not

sufficient to qualify as agents of job satisfaction. The two-factor theory stipulates that job

satisfaction is indicated only when Maslow's higher level needs have been met. These

higher needs are affection, social standing, esteem and self-actualization, and are known

as intrinsic factors of job satisfaction Herzberg et al (1959).

The two-factor theory has stimulated much research but little empirical support. A

notable exception to this lack of support is a journal article that was written by Brockman

(1971). Brockman defended Herzberg’s theory and concluded that the data available at

the time supported the two-factor theory. Similarly, Moreno's (1998) dissertation on the

job satisfaction of health care workers concluded that there is general support to

Herzberg’s two-factor theory of job satisfaction. Health care workers whose hygiene

needs had been met experienced less dissatisfaction and those who experienced higher

levels of community integration reported more job satisfaction.

2.6.2. Instrumentality Theory

The instrumentality theory is derived from a generic set of principles called the general

expectancy theory. The general expectancy theory is a cognitive approach to work

motivation first proposed by Vroom (1964). The general expectancy theory was modified

by Porter and Lawler (1968) into what is known as the instrumentality theory. This

theory posits that it is the worker's expectation that if a job is done in a satisfactory

manner, the payoff will be automatic and that job satisfaction will inevitably follow. In

addition, the theory holds that there is a correlation between the amount of effort

expended on a job and the reward expected. There is little support in the literature for this

theory. One notable exception to the criticisms of the instrumentality theory is a study

that was done by Arvey (1972). Arvey’s participants were divided into two groups: high

expectancy participants who were told that they were among the top performers in the

company, and low-expectancy participants who were not told this. As predicted,

participants in the high-expectancy condition (likelihood of 75%) performed better on an

experimental production test than did participants in the low-expectancy condition.

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2.6.3. Need Discrepancy Theory

Lyman Porter's 1961 study examined how Abraham Maslow's needs hierarchy would

predict the job satisfaction of business people and professionals. Porter’s theory suggests

that most business professionals' basic needs have already been met, and that satisfaction

comes about as the person achieves higher levels in the need hierarchy. Satisfaction also

results from low discrepancy between what a person needs and what the job offers.

Woods’ (1998) study of empowerment and the job satisfaction of Navy/Marine officers

confirmed elements of Porter’s theory. Results of the Woods’ study show that job

satisfaction is strongly related to empowerment. The findings also showed that intrinsic

job satisfaction is more closely related to empowerment than is extrinsic job satisfaction.

Additional support for the need discrepancy theory came from a study done by

Szymanski & Parker (1995). Counseling professionals who hired-on or stayed with their

respective agencies due to autonomy and challenge were most likely to be satisfied with

their job and more likely to stay.

2.6.4. Facet Satisfaction Theory

The facet satisfaction theory posits that the concept of job satisfaction is not one

dimensional. Job satisfaction must be taken apart so that its elements can be examined.

The general idea is that each element can be measured and that the concept of job

satisfaction is simply the sum of its parts. Some of the facets that might be examined are

compensation, working conditions, security, variety, independence, advancement,

responsibility, and achievement.

2.7. Studies on employee job satisfaction

Previous research on job satisfaction variables can be organized into four groups

Topolosky (2000).

The first group includes some earlier work identifying the elements of job

satisfaction and the effect of personal factors such as age, gender, and experience

of employees. Mottaz’s (1987) research showed that worker satisfaction varies

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directly with age and that older workers tend to be more satisfied with their jobs

than younger workers (as cited in Topolosky, 2000).

The second group focuses on the impact of social dynamics on employee

satisfaction and individual performance, such as communication, participation,

recognition, development, leadership, and commitment. Ludeman (1989) asserted

that it is a basic psychological. People who receive attention, recognition, and

praise from others become more cooperative and hard working (as cited in

Topolosky (2000).

The third group includes studies that researched relationships between employee

satisfaction and organizational processes, such as compensation systems and

innovative work practices. According to Berlet and Cravens (1991), employee

compensation systems can enhance job satisfaction and create high levels of

motivation which could translate into productivity (as cited by Philips, 1996).

Finally, the fourth group includes studies investigating the impact of employee

satisfaction on organizational performance. The research by Bartel (1994)

demonstrated a link between the adoption of training programs and firm financial

performance as well as productivity growth (as cited in Topolosky (2000).

2.8. Employee Job Satisfaction and Job Performance

Job performance is most commonly referred to whether a person performs their job well.

Despite the confusion over how it should be exactly defined, performance is an extremely

important criterion that relates to organizational outcomes and success. Some people

argue that performance can be thought of as actual results vs. desired results. Campbell

(1990) defined performance as individual behavior, which differentiates from outcome,

because there are more factors that determine outcomes than just an employee’s

behaviors and actions. He also pointed out that job performance must be directed towards

organizational goals that are relevant to the job or role. He conceptualized it as a

multidimensional construct consisting of more than one kind of behavior.

In the service industry, employee job performance is extremely critical to the success of

an organization. Because of the unique characteristics of service compared to goods, such

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as intangibility, heterogeneity, simultaneous production and consumption, “employees

are service and the brand” Zeithaml et al. (2006). In the service sector, one of the

“conventional wisdom” is that high employee satisfaction results in good service. Many

researchers studied on the linkage between employee satisfaction and its possible service

outcome such as customer satisfaction and service performance.

2.9. Job Satisfaction in banks

The paradigm of the banking sector changed with the emergence of plastic money and

online transfers etc. Thus the technological pay and breakthroughs affected the banking

sector and numerous career opportunities were created in this sector in all disciplines.

The paradigm shifted from a financial sector to a services sector where providing quality

service to the customer became the ultimate goal of the bank. Due to heavy inflow of

multinational banks, a new culture was emerging in the banking sector which was based

on performance based rewards and compensations. This has brought higher employment

opportunities, increases in income level, and changes in consumption pattern and

consequently there emerges a competitive environment in the industry.

The following paragraphs present the brief review of literature on the job satisfaction of

employees at banks, A few research studies Srivastava et al (1980); Srivastava and Locke

(2001) report that private sector employees in general have higher job satisfaction as

compared to those of public sector organization while certain other studies reported the

reverse trend. Though, a few research studies indicate a positive relationship between job

satisfaction and occupational level, some studies however Anantharaman et al (1982)

found no relationship between job satisfaction and occupational level.

Hoque et al (1992) has examined the job satisfaction and job behavior of Private sector

industrial workers and supervisors. The results reveal that job satisfaction score of the

workers was higher than that of the supervisors. The study also indicates that job

satisfaction has significant impact on performance of the enterprise. Moreover Job

insecurity poor salary has been considered as the most important cause of job

dissatisfaction of the employees. Purohit and Belal (1996) have conducted a study on job

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satisfaction of professional accountants. The results of the study has showed that the

professional accountants are moderately satisfied with their job. The results also show

that there is a positive correlation between age and job satisfaction.

Islam (2004) has made a study to assess and compare the job satisfaction, absenteeism

and turnover of workers of the Textile Industry. One of the main finding of the study is

that job satisfaction has significantly negative correlation with absenteeism and turnover.

Saari and Judge (2004) have examined the relationship between employee attitude and

job satisfaction. In this study they have identified the causes of employee attitude, the

results of positive or negative job satisfaction and also measuring influence of employee

attitude.

Karami and Mallick (2005) made a study on job satisfaction level and the impact of

education on industrial workers. The main finding of the study is that there exist no

relationship between monthly income and job satisfaction of the workers. A weak

relationship exists between designation and job satisfaction and between education and

income of workers. Another study conducted on factors influencing the job satisfaction of

faculty members showed that the faculty members are generally satisfied with their job;

however male faculty members were less satisfied than female faculty members. A

number of studies Srivastava (1980); Srivastava and Locke (2001); Hoque (1992);

Prabhu (2003) and Islam (2004)) focus on the job satisfaction of different private and

corporate sector, industry workers, managers, university employees and different

government employees.

Summary

Motivating the workforce of an organization to work more effectively towards the

organization’s goals is perhaps the most fundamental task of management. Organizations

motivate their workforce to perform effectively by offering those rewards for satisfactory

performance and perhaps punishing them for unsatisfactory performance. Over the past

hundred years or so there has been an evolution in the view of what the term ‘rewards’

actually means in an organizational context.

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Summary of the Motivation theories

Each of the theories covered has contributed substantially towards current perspectives

on and understanding of the concept of motivation in the workplace. The needs theories

are largely responsible for organizations’ recognition that people’s behaviour at work is

motivated by highly individualized innate needs and desires. Achievement-orientated

people are, driven by a much stronger need for power, affiliation and achievement than

most other people. For this reason, employers need to ensure that they invest the

necessary time and effort to assess the personal needs of individual employees, and

customize their jobs and working environments accordingly. Due to their innate need to

produce good work and develop themselves, most employees do not need constant

supervision and direction and may, in fact, find such actions very de motivating. In

addition, people need to experience their work as meaningful and challenging, and

therefore require considerable input on the part of management to ensure a high degree of

job enrichment on a continual basis.

The cognitive theories of motivation have helped employers to understand that, apart

from their motivation being driven by innate needs, employees also apply deliberate

conscious thought to their behavior at work. Organizations’ are aware that people

evaluate their inputs on the job against what they receive in return, and that they should

therefore pay attention to the equitability between employee delivery and reward. It is

also prudent for organizations to offer a range of benefits, which may be acquired

through different levels of performance, to allow employees to set themselves

challenging goals that they may attain via differing means they may perceive as

instrumental towards those goals.

ERG theory states that there are three basic human needs: Existence, relatedness and

growth, which must be meet by an employee to enable him, increase performance.

Maslow suggests that human needs can be classified into five categories and that these

categories can be arranged in a hierarchy of importance. These include physiological,

security, belongings, esteem and self-actualization needs. According to the theory, a

person is motivated first and foremost to satisfy physiological needs. As long as the

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employees remain unsatisfied, they turn to be motivated only to fulfill them. When

physiological needs are satisfied they cease to act as primary motivational factors and the

individual moves “up” the hierarchy and seek to satisfy security needs. This process

continues until finally self actualization needs are satisfied. According to Maslow, the

rationale is quite simple because employees who are too hungry or too ill to work will

hardly be able to make much a contribution to productivity hence difficulties in meeting

organizational goals.

Vroom proposes that people are motivated by how much they want something and how

likely they think they are to get it he suggest that motivation leads to efforts and the

efforts combined with employees ability together with environment factors which

interplay’s resulting to performance. This performance interns lead to various outcomes,

each of which has an associated value called Valence.

Adams, on his part suggests that people are motivated to seek social equity in the

Rewards they receive for high performance. According to Adams, the outcome from job

includes; pay, recognition, promotion, social relationship and intrinsic reward .to get

these rewards various inputs needs to be employed by the employees to the job as time,

experience, efforts, education and loyalty. He suggests that, people tend to view their

outcomes and inputs as a ratio and then compare these ratios with others and turn to

become motivated if this ratio is high.

Taylor observed the soldering by employees, which is a situation whereby workers work

less than full capacity. He argued that soldering occurs due to the fact employee’s fear

that performing high will lead to increasing productivity, which might cause them to lose

their jobs. This slow paces of work where promoted by faulty systems however this

situation is not what prevails with contemporary employees who organizations evaluate

them through their performance. Herzberg suggested that there are factors in a job, which

causes satisfaction. These he called intrinsic factors (motivators) and other factor he

refers to as dissatisfies (hygiene factors). According to him if the motivational factors are

met, the employee becomes motivated and hence performs higher.

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Mac Gregory suggested that there exist two sets of employees (lazy and ambitious

employees) with lazy employees representing theory X, hard and ambitious workers

representing Y. According to him the lazy employee should be motivated to increase

performance in an organization. Geogopalaus path Goal theory of motivation states that,

if a worker sees high productivity as a path leading to the attainment of one or more of

his personal goals, he will turn to be a high producer. But if he sees low productivity as

the path leading to the attainment of his goal he will turn to be a low producer and hence

needs to be motivated. This discussion on the above motivational theories explains the

fact that the concept of employee’s motivation has been a critical factor addressed by

previous authors as what determines the core competence of every organization in

achieving a competitive position. Skinner who propounded that any behavior that is

rewarded tends to be repeated supported this view.

Job satisfaction studies have provided substantial evidence that organizational outcomes

such as the profitability of a business unit, turnover, absenteeism, performance and

grievances can be traced directly to how satisfied employees are with their company and

their jobs. Job satisfaction represents one of the most complex areas when it comes to

managing their employees. Although thousands of papers and research have been

conducted on job satisfaction all over the world, many studies have demonstrated an

unusually large impact on the job satisfaction on the motivation of workers, while the

level of motivation has an impact on productivity, and hence also on performance of

organizations.

Studies on employee job satisfaction reflected that job satisfaction can be organized in

four groups; the first group includes some earlier work identifying the elements of job

satisfaction and the effect of personal factors such as age, gender, and experience of

employees. The second group focuses on the impact of social dynamics on employee

satisfaction and individual performance, such as communication, participation,

recognition, development, leadership, and commitment. The third group includes studies

that researched relationships between employee satisfaction and organizational processes,

such as compensation systems and innovative work practices and the fourth group

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includes studies investigating the impact of employee satisfaction on organizational

performance.

The paradigm of the banking sector changed with the emergence of plastic money and

online transfers etc. Thus the technological pay and breakthroughs affected the banking

sector and numerous career opportunities were created in this sector in all disciplines.

The paradigm shifted from a financial sector to a services sector where providing quality

service to the customer became the ultimate goal of the bank. Due to heavy inflow of

multinational banks, a new culture was emerging in the banking sector which was based

on performance based rewards and compensations. This has brought higher employment

opportunities, increases in income level, and changes in consumption pattern and

consequently there emerges a competitive environment in the industry. A few research

studies reported that private sector employees in general have higher job satisfaction as

compared to those of public sector organizations while certain other researches study

reported the reverse trend. Though, a few research studies indicate a positive relationship

between job satisfaction and occupational level, some studies however found no

relationship between job satisfaction and occupational level.

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Alderfer, C.P. (1969). An empirical test of a new theory of human needs.

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Anantharaman, and shamsad Begum, (1982), “Job Involvement among Bank

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Armstrong Michael (2006). A Handbook of Human Resource Management

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Arnold, H.J. & Feldman, D.C. (1986). Organizational behavior. New York:

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Arvey, R. D, and Dewhirt, H.D. (1976), “Relationships between goal clarity,

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