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DOI URL: https://doi.org/10.3126/jbssr.v5i1.30200
An Analysis of Motivational Factors Affecting Employee
Performance
Pooja Dangol1
Article History
Received 20 Jan 2020Marketing Research and Data Analysis
Reviewed 3 March 2020
Revised 20 April 2020
Revised-2nd 06 May 2020
Accepted 27 May 2020
Abstract
It is essential for organisations to pay attention to the
well-being of their employees. The organisation should
create a workplace that is engaging and motivating, where
employees want to stay, grow and contribute their skills,
knowledge and expertise. The present research study
aims to investigate motivational factors (goal-setting,
monetary rewards, recognition programmes and training)
that aids in upsurge of employee performance. The study
adopted a descriptive research design. The population
consists of 130 employees of 30 companies of Nepal.
Data was collected using structured questionnaires.
Statistical tools such as frequency distribution, mean
score, correlation analysis and regression analysis
were used to analyse data and were presented using
tables. The results reveal that there exists a positive and
signifcant relationship between goal-setting, recognition
programmes and training on employee performance. The
fndings suggest that employees value their own personal
growth. Organisations should come up with personal
development programmes to improve performance. The
study results are expected to offer inputs in assessing and
implementing motivational factors in organisations.
Keywords
employee performance;
monetary rewards;
goal-setting; recognition
programmes; trainings
Journal of Business
and Social Sciences
Research (ISSN: 2542-
2812). Vol V, No. 1, June
2020
1. Introduction and Study Objectives
Nowadays, one of the major concerns for any organisation is to motivate
its employees and make best use of human resources. An important role of
management is to help make work more satisfying and rewarding for employees
and to make employee motivation consistent with organisational objectives
(Uzonna, 2013). Employees are considered as one of the most valuable assets
of an organisation who is responsible to perform various organisational tasks.
Organisations expect new innovative ideas, business plans and strategies from
the employees so that it can expand its business with improved performance.
1 Ms. Dangol is an MBA graduate from KUSOM, Kathmandu University and is currently an HR
Professional. She can be contacted at [email protected]
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Journal of Business and Social Sciences Research: Vol. V, No. 1 : June 2020
With knowledge, skill and ability of the employees, any organisation can opt for
new opportunities.
Employee motivation is one of the most important management functions among
the employees, in order to perform in full potential of their abilities (Dell, 2019). The
key to an organisational success depends upon its people. A motivated and goaldriven employee tends to work with full energy and passion to accomplish his/her
goals. S/he will look for opportunities to contribute more in the organisation and
bring a commendable change in the business. Hence, motivation and performance
are linked with each other. Organisations should look for ways to fnd out factors
which makes its employees motivated so that they are willing to contribute in
achieving short and long-term organisational goals. Employee motivation is the
process of stimulating people to actions, further to accomplish goals (Heryati,
2016). Organisations spend a lot of time identifying factors that motivates its
employees. Motivation is seen as one of the four most important factors in issues
related to human resources management (HRM) and organisational behaviour
management (Nelson & Quick, 2013). Motivation is about identifying the need
of human resources and bringing an impact in one’s actions that integrates his/
her behaviour. This research is imperative to identify factors causing hindrance
in employees’ performance. It will help to fgure out proper motivation strategies
that the HR Managers can use to populate its workforce with motivated and
committed employees.
With the increase in the number of competitors in the similar line of business, it is
essential for companies to identify effective motivational strategies and increase
productivity. Performance is a function of job opportunities (such as knowledge,
capabilities, and skills that workers need for the realisation of their duties),
motivation (benefts that workers seek for their motivation) and organisation of
work (how work and organisations are structured that enable employees perform
better) (Boxall & Purcell, 2011). Therefore, research has carried out to fnd out
motivational factors that enhance performance of employees.
The remaining sections of the paper are organised as follows. The second section
deals with reviewing existing literature that primarily deals with discussions and
review of literature related to the concepts of the research. The third section
describes methodology adopted for the study. Fourth section comprises
compilation, analysis and discussion of data collected from research. Fifth section
consists of concluding remarks and the sixth section comprises implications of
the research study.
2. Literature Review
Human Resource Management is a typical new approach to management of
personnel which attempts to obtain competitive advantage through a highly
committed and skilled workforce (Storey, 1992). HRM is managing (planning,
organising, directing and controlling) the functions of employing, developing,
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An Analysis of Motivational Factors Affecting Employee Performance : Dangol
compensating and utilising human resources (Rao, 2009). With more and more
people from diversifed cultures working together in one organisation, it becomes
essential for HR Managers to bring synergy from these multi-talented people and
increase efciency. Human resource management focuses on the people in an
organisation, and is a function of management that deals with hiring, motivating
and retaining people in an organisation (Ismajli, Qosja, & Krasniqi, 2015).
In today’s knowledge-based competitive environment, organisations must mobilise
and motivate its employees to identify their hidden skills and inculcate creative
business ideas which will maximise organisational profts. The available resources for
organisations or institutions are: human, fnancial, physical and information resources
(Banfeld & Kay, 2012). Organisation will have to know values, cultures, personal
goals, skills and competencies of employees to understand the driving factor. Each
individual is unique and it is tough for managers to understand their human behaviour.
In this regard, one question often raised by managers is, “What makes the employees
of an organisation go the extra mile to deliver exemplary performance?”
Human nature is varied and if HR can understand the psychological aspects of
its employees and use motivational techniques accordingly; it will bear long-term
fruitful outcomes through constructive contribution of the workforce. A satisfed
employee does not work because he is forced to, rather because he enjoys
his work (Dell, 2019). While doing so, HR personnel need to keep in mind both
present as well as future requirements of the organisation along the set plans and
objectives that it was identifed for the purpose of attainment of goals. Only after
this, the organisation can move onto the path of growth and development and
reach new heights.
Motivation for the entry level staff would be different from that of managerial level
and the employees of different cultures and values. Various theories of motivation
encompass the tools and techniques that stimulate the desire of human resources
to deliver excellent performance at the workplace. Motivation imposes employee
outcomes for instance performance and productivity (Grant, 2008). He recognised
that motivated employees are more oriented towards autonomy and are more selfdriven in contrast to less motivated employees (Grant, 2008). Further, motivated
employees are highly engaged and involved in their work and jobs and are more
willing to take responsibilities (Kuvaas & Dysvik, 2009).
Employee performance is the activity ofperforming something fruitfullybyknowledge
as famous from simply possessing it (Nasibov, 2015). Managers play a crucial role
in founding a conducive environment where there is presence of cohesive team
members who acknowledge each other for their contribution. Both short and longterm goals of the organisation can be attained if co-ordination and co-operation
takes place simultaneously which can be effectively done through motivation.
Organisations can develop KPIs and KRAs that help to motivate employees to
achieve targets. The incentive awards like medals would be less important than
the process of continuous self-improvement (Saric, 2016).
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The Maslow’s need hierarchy advocates that growth is the most prominent
motivating factor. Young leaders highly value growth careers and are always
looking for ways to move ahead in their career. Organisations should bring career
development programmes and show growth opportunities through rewarding jobs
to bring the best out of the employees. Individual at its initial level of its career
pays high values to intrinsic and extrinsic features related to their job. Moreover,
individuals with the start-up of their careers valued the rewarding towards their
work assessment and environment further the expert and experienced individuals
with high potential and opportunities also provide values (Khan, Ahmed, Paul, &
Alam, 2017).
Organisations spend huge investments in training and development. It is of
utmost importance that employees not only have a good relationship with the
top management, but also, they maintain a healthy and professional relationship
with their co-workers (Nabi, Islam, Dip, & Hossain, 2017). Assessing culture of
the organisation and conducting team building activities help to strengthen bond
with team members. Timely training and development on identifed aspects is
an obligation to the management of the organisation so that err is minimised
and hence there is an increase in productivity of employees. Training and
development play a contributing factor keeping employees motivated throughout.
Workplace motivators consist of monetary and non-monetary incentives (Perrin,
2007). Incentives are highly practised in organisations that have pay-based culture
or high-performance culture. Monetary incentives include proft sharing, project
bonuses, schedule bonuses and additional paid vacation time. Similarly, nonmonetary reward incentives include flexible work hours, training opportunities,
pleasant work environment, and sabbatical leaves. Reward practices (monetary
and non-monetary) have been found to be positively linked to organisational
performance as they help maintain a positive motivational environment relevant
in improving organisational performance (Perrin, 2007).
Since the beginning of the modern management theory, the terms used to
describe the HRM have included personnel and staff, industrial and employee
relations and human resource management (Carbery & Cross, 2013). With
the right amount of organisation looking onto the people management aspect,
organisations can witness engaged and motivated employees at work. It is one
of the most effective ways to create the desired impact which is done through
hard work and admiration which boosts the ability for companies to achieve their
goals. It is crucial for organisations to manage and attract potential and creative
minds.
With the pace in which the world is moving forward, the motivational factors that
were identifed long back would not be applicable at present. Organisations are
operated with the team that includes people with diversifed culture and values.
Young minds would not prefer the same primitive motivational factors that were
used long back. This research is imperative to identify both intrinsic as well as
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extrinsic sources of motivation. This research is aimed to identify improved and
effective sources of motivation that the businesses can practise.
The framework hypotheses linkages between various constructs derived from
different literatures on motivation. The conceptual framework is shown below:

Employee Performance

3. Research Methods
Nature and Collection of Data
The nature of present research is quantitative. Descriptive study was conducted
to identify motivational factors and statistical tools was used to prove and validate
through hypothesis testing. Four motivational factors were concluded to be as
the main principle factors than other remaining factors.
The study setting in which the research was conducted was non-contrived.
The total population of this research is 250. The researcher included only
those employees who were available to participate in the survey. Convenience
sampling method was used for the research. 130 employees of 30 organisations
were taken as a unit of analysis. The total sample size is 130.
The present research work is based on both primary and secondary data. Various
secondary sources used include books and articles, which appeared in journals.
Primary data have been collected with the help of a non-disguised structured
questionnaire. Data collected in this study was by means of a structured
questionnaire.
A carefully ft organised questionnaire was created by the researcher for this
study. There were four constructs for Likert scale questions where respondents
were asked questions related with each construct. Individual employee responses
were collected and data from the sample were analysed to fnd out the result of
the study. Quantitative data were gathered from each employee and each of their
responses were treated as an individual data source.
Descriptive statistics was used in the research to identify and understand the
demographic profle of the respondents. The researcher wanted to check the
relevancy of data and the results generated through the same and varied
An Analysis of Motivational Factors Affecting Employee Performance : Dangol
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demographic profle. Similarly, mean score has been used to identify the average
value of distribution of fgures. The researcher used this tool to compare different
sets of data.
Correlation analysis was used to study if there are possible connections between
variables. The study has checked the degree of a positive and negative relationship
to come into conclusion. The researcher has used regression analysis to examine
the relationship and influence between one or more identifed variables with one
another. Similarly, ANOVA tables have been used to determine the nature of
signifcance between identifed variables.
4. Discussion
The study has employed descriptive analysis for describing the data and
correlation, ANOVA Test and regression analysis among other statistical tools to
analyse data. The results from the statistical tests of signifcance are presented
and analysed in subsequent sections.
Response Rate
Table 1 is indicative of the results which were obtained from the demographic
profle. It consists of four dimensions- gender, age group, level of management
and years of association. It was found that 42.30 per cent of the respondents
were female and 57.70 per cent were male. It shows male respondents higher
than female respondents.
Table 1
Demographic Profle of the Study Variables

Level
of Management
Years of Association
25-30
31-35
36-40
41 and above
Entry Level
Lower Middle Level
Middle Level
Upper Level
Less than 1 year
1-2 years
3-5 years
6-10 years
More than 10 years
48
23
11
15
30
21
42
37
20
32
37
23
18
36.92
17.69
8.46
11.55
23.07
16.15
32.30
28.48
15.38
24.61
28.46
17.69
13.86
Note. From researcher’s survey, 2019
69
It was found that 23.07 per cent of the respondents were from entry level
management, 16.15 percent were lower middle level management, 32.30 per
cent were middle level management and 28.48 per cent of the respondents were
upper level management.
Descriptive statistics for years of association of the respondents showed that
majority of respondents are associated with for 3-5 years, which is 28.46 per cent
of the respondents.
Maximum, Minimum and Mean Values
Table 2
Descriptive Statistics of Study Variables

Note. Calculations based on researcher’s survey, 2019
The result in table 2 shows that employees’ overall means score for Employee
Performance is 3.38 (S.D.= 0.51). It suggests that employee performance in their
workplace is around average. Similarly, mean values for goal-setting, monetary
incentive, reward and recognition, training and development and employee
performance are 3.71, 3.34, 3.45, 3.56 and 3.38 respectively. This shows all the
four factors have mean values around the average.
Gender, Goal Setting, Monetary Incentive, Reward, Training and Employee
Performance
Table 3
Group Statistics- Gender
Variables Gender N Mean Std. D
Goal-setting Female 54 3.82 0.40
Male 76 3.63 0.64
Monetary Rewards Female 54 3.51 0.40
Male 76 3.21 0.51
Recognition Programmes Female 54 3.68 0.49
Male 76 3.28 0.57
Training Female 54 3.55 0.96
Male 76 3.58 0.69
Employee Performance Female 54 3.42 0.46
Male 76 3.36 0.54
Note. Calculations based on researcher’s survey, 2019
An Analysis of Motivational Factors Affecting Employee Performance : Dangol
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Journal of Business and Social Sciences Research: Vol. V, No. 1 : June 2020
The results in table 3 shows mean values of male and female employees with
various other variables. The mean score of female employees in goal-setting is
3.82, monetary rewards is 3.51, recognition programmes is 3.68, training is 3.55 and
employee performance is 3.42. Similarly, mean scores of male employees in goalsetting is 3.63, monetary reward is 3.21, recognition programme is 3.28, training is
3.58 and employee performance is 3.36. It suggests that the mean score of female
employees is higher than male in employee performance. In regards to training and
development, it was higher in male than in female while motivational goal setting,
monetary incentive and reward and recognition were higher in female than in male.
Correlation Analysis
Table 4
Correlation between Dependent and Independent Variable

Goal-setting 0.65** 0.51** 0.45** 0.49**
0.00 0.00 0.00 0.00
Monetary Rewards 1.00 0.75** 0.33** 0.39**
0.00 0.00 0.00
Recognition 1.00 0.31** 0.46**
0.00 0.00
Training 1.00 0.45**
0.00
Employee Performance 1.00
**. Correlation is signifcant at the 0.01 level (2-tailed).
Note. Calculations based on researcher’s survey, 2019
As signifcance level is 0.00 which is less than 0.05, therefore, the alternative
hypothesis is accepted. That means to say, increase or decrease in independent
variables signifcantly relate to increase or decrease in dependent variable –
employee performance.
Regression Analysis
On the basis of the above fnding regression analysis has been developed:
= 1.29 + 0.26 X1 – 0.13 X2 + 0.29 X3 + 0.16 X4
Where,
X1=Goal-setting
X2=Monetary Rewards
X3=Recognition
X4=Training
= Employee Performance
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From Table 5, we can see that the coefcient of determination (R square) is 0.36.
This shows that there is only 36 per cent of variation in the dependent variable
and the remaining 64 per cent is due to other factors.
Table 5
Regression Analysis of Different Variables
B T-Value P-Value VIF
(Constant) 1.29 4.61 0.00
Goal-setting 0.26 2.85 0.01 1.96
Monetary Rewards -0.13 -1.06 0.29 2.93
Recognition 0.29 3.03 0.00 2.30
Training 0.16 3.21 0.00 1.27
R-Square 0.36

b P-value were obtained by two sample t-tests.
Note. Calculations based on researcher’s survey, 2019
Since signifcance value is less than the alpha value of 0.05 (95% confdence
interval), we do not accept the null hypothesis. Therefore, a linear relationship exists
between the dependent variable and at least one of the independent variables.
Hypothesis Testing
At the 5% level of signifcance,
P-value = 0.005 < α = 0.05, hence, we do not accept null hypothesis. This
indicates goal-setting (x1) is a signifcant independent variable for employee
performance (y).
P-value = 0.292 > α = 0.05, hence, we fail to reject null hypothesis. This indicates
monetary rewards (x2) is not a signifcant independent variable for employee
performance (y).
P-value = 0.003 < α = 0.05, hence, we do not accept null hypothesis. This
indicates recognition programmes (x3) is a signifcant independent variable for
employee performance (y).
P-value = 0.002 < α = 0.05, hence, we do not accept null hypothesis. This indicates
training (x4) is a signifcant independent variable for employee performance (y).
5. Conclusion and Implications
The present research study showed that employees valued goal-setting,
recognition programmes and training as a motivating element for better
An Analysis of Motivational Factors Affecting Employee Performance : Dangol
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Journal of Business and Social Sciences Research: Vol. V, No. 1 : June 2020
performance. The results are contrary to initial fndings and speculations of the
researcher during preliminary survey. Previous research works on the motivational
factors expressed monetary rewards as a motivating factor among other factors.
But the results in this study show that employees feel encouraged and motivated
in the workplace after knowing their career growth and development.
Results demonstrate shift towards agile organisations who value skills and
competencies of employees rather than experience, flexible work from home
culture, switch from traditional corporate setting to more casual culture and the
organisations who foster innovation. We can see many IT giants such as Google
have started to adopt such a culture and have initiated a learning academy where
employees can join developmental programmes right from their induction. Such
organisations provide a clear glimpse of career advancements.
The fndings of this research study may help in implementing motivational
strategies to improve organisational effectiveness. This research gives signifcant
contribution to organisations by providing a detailed status of motivational
environment and in what areas does improvement is needed. Overall, The study
results can offer inputs in assessing and implementing motivational factors in
organisations
The present research was conducted in a limited sample population. It includes
employees who work in Nepal. The results that have been generated from
this research may not be applicable in other countries. Motivational factors
are completely unique from one individual to another and it might change with
the passage of time. The results generated may be biased as well since it is
conducted in a one-shot survey.
However, this research acts as a basis for further research on motivational factors.
This study reveals the motivation factors which affect employee performance.
Some unanswered questions have been exposed such as the connection
between development activities with employee performance and change in
organisational culture.
There is the need for future researchers to conduct further research on this topic.
While working in this research, there were a handful of research in existence.
Identifying and coming into conclusion on this rising topic will defnitely bring a
commendable change in the corporate business world.
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Acknowledgements
The author acknowledges the support of Asst. Prof. Seema Singh.
Conflict of interest
All opinions presented in this research belong to the author alone, and not any institution.
The author declares having no conflicting interest.