1.1 BACKGROUND OF THE STUDY
The researcher interested in investigating how
employees and management in this critical sector view motivation. Based on
experience, Researcher believes that there is an excessive emphasis on monetary
rewards which implies that other critical factors may be overlooked. By
conducting this study, hope to gain further insights into staff motivation job
performance and develop a better understanding of this critical part. It
considers that such an understanding will help me develop better motivation and
job performance in the future.
1.2. PROBLEM STATEMENT
motivation is a topic that has received very significant attention by managers
and researchers alike (Gautam, Mandal and Dalal, 2006). It is acknowledged with
certainty that no organization may possibly thrive without their employees.
Employees are the main reason any organization might have the potential to keep
in existence for a long time.
to HSBC, employees are the ones who play the major roles and make significant
contributions to the organization. Well motivated employees would influence the
efficiency of the organization and could lead to achieving the organization’s
vision and goals (Hussin, 2011)
studies on employee motivation mainly focused on the factors that contributed to
it being attained. On the other hand, not much research on its impact towards
performance was made (Dinler, 2008). Studies on employee motivation have been
carried out over the years but they are largely based on the western
organizations and very few studies on motivation have been done in Srilanka
organizations let alone particularly. An example of such studies is one carried
out by Grant, Fried, and Juillerat in 2010 on bankers in the UK. This brings
about a great gap that needs to be filled with tremendous research considering
the fact that employees in different environments and who are affiliated to
different cultures cannot attain motivation from the same factors.
has been a great challenge on the part of managers in HSBC in srilanka on determining
how exactly they can attain maximum motivation for their employees whom they
believe would go a very long way to improve on the organizational performance.
managers have tried to attain motivation of their employees by trying to use
methods that were successful in other areas around the world and have
desolately been disappointed, but the reason is simply because this research
was not directly relevant to their own employees. It is for that reason that
this research intend to fill in the knowledge gap.
1.3. RESEARCH QUESTION
How to Motivate
Employees in organizations?
What are the
intrinsic factors/ extrinsic factors that influence employee motivation at
What impact does
employee motivation have on employee performance at HSBC in island wide?
1.4. RESEARCH OBJECTIVE
To review the
literature to explain the topic of training and to evaluate its appropriateness
of employee performance and motivation.
discuss through a literature review the expectations of employees to identify
areas that drive employee motivation using training.
To carry out
primary research by means of questionnaires to gain quantitative data relating
to training in HSBC.
theoretical literature and practical research to establish a conclusion and to
make recommendations on how to improve on the training process of employees at
1.5. SIGNIFICANCE OF THE STUDY
Employee motivation plays a key role in HSBC since
only highly motivated employees can deliver superior customer service which contributes
to corporate growth and profitability under such conditions it is important for
companies to understand the factors that can motivate their employees to higher
levels of performance.
This study will enable the management of HSBC to
understand the factors that affect the motivation of their employees.
Furthermore, this study contributes to existing motivational literature since
it investigates HSBC motivation under conditions of low economic growth. Only a
limited number of research studies have focused on this issue in the past since
the majority of research was carried out during periods of high economic
1.6. LIMITATION OF THE STUDY
This research limitation to examine the motivation
level and factors that can be used to motivate workers in HSBC to find out what
managers in this type of organisation should do to motivate them to work with
their best effort. Motivating employees to work with their best effort is
important to the success of small and medium sized firms as it relates to organizational
outcome and operations management. At the same time, investigating factors that
can motivate workers in this type of organisation should also help to find out
strategies that can help employees in this segment to reduce the rate of staff
turnover, or prevent headhunting practice of larger firms.
2.0. LITERATURE REVIEW
2.1. KEY LITERATURE POINTS
Prior literature on organizations hourly tipped and
non-violent organizations demonstrate that these staff members serve an
important role in organisation profitability. Given the important function that
staff provides to the daily operation of organisation it is concluded that
employee motivation and staff commitment to the organisation are instrumental
components of organizations performance. Furthermore, it is assumed that an
individual’s motivation and level of organizational commitment is different for
tipped versus non-tipped hourly employees.
Therefore, the theoretical frame work of this study is
based on a review relevant literature pertaining to existing theories
concerning employee motivation, the psychology of hourly tipped and non-tipped
employees working in organizations and organizational commitment of the
Leadership is about influencing people to do things
the right way. To achieve that you need people to follow and to have them trust
you. And if you want them to trust you and do things for you and the
organization, they need to be motivated. Theories imply that leader and
followers raise one another to higher levels of morality and motivation.
Motivation is purely and simply a leadership behavior. It stems from wanting to
do what is right for people as well as for the organization. Leadership and
motivation are active processes in management (Rukhman, 2010).
2.3. THE MEANING OF JOB PERFORMANCE
According to Motowidlo (2003), job performance is the
total expected value of the organization of the discrete behavioural episodes
that an individual carries out over a standard period of time. While for Rashidpoor
(2000), job performance is that set of behaviour which a person shows in
relation to his job or, in other words, amount of efficiency gained due to the
person’s job type.
One thing is pertinent about the definitions above,
namely, the fact that performance is a property of behaviour; it is an
aggregated property of multiple, discrete behaviours that occur over a period
of time. The second idea is that the property of behaviour to which performance
refers is its expected value to the organization. Thus, the performance
construct of this definition is a variable that distinguishes between set of
behaviours carried out by the same individual at different times. The
distinction is based on how much the sets of behaviours are likely to
contribute to or detract from organizational effectiveness. In a word, variance
in performance is variance in the expected organizational value of behaviour
(Motowidlo; Brownlee and Schmit, 1997). Job performance is divided into two
categories: task performance and dispositional performance. Task performance is
defined as tasks and responsibilities of each person and related directly to
all things that must be done by that person such as monitoring absent or
present employee. The other performance is dispositional, which helps
organizational and social network to survive (Motowidlo, 2003)
2.4. THE RELATIONSHIP BETWEEN
EMPLOYEE MOTIVATION AND JOB PERFORMANCE:
There is a general perception that motivation of
employees has a relationship with job performance and the notion that employees
who are highly motivated are much more likely to be high performers is
widespread in management literature. Lawler (1994) and Buchanan and Huczynski
(1997) submit that motivation is the single most important determinant of
individual job performance. According to Nelson and Quick (2003), a job high in
motivation and hygiene factors lead to high performance and few complaints
among employees, which makes motivation to be a fundamental instrument for
regulating work behaviour of employees. No wonder, Olawoyin (2000) concludes
that the optimization of work behaviour can best be achieved by motivating the
Empirical studies by Abejirinde (2009) investigate the
relationship between motivation and work performance within private and public
enterprises in HSBC and found that promotion (as a motivator) and employees’
performance are positively correlated. It was also revealed that job growth (as
a motivator) has significant relationship with employees’ performance. Another
study by Baibaita (2010) reveals that motivation exerts positive impact on the
employees’ performance in the HSBC banking industry.
Based on the above reviews; the following null
hypotheses are developed to investigate the relationships between the study variables:
H01: There is no significant relationship between
motivation and job performance in HSBC.
H02: There is no significant relationship between
intrinsic motivation and job performance in HSBC.
H03: There is no significant relationship between
extrinsic motivation and job performance in HSBC Service.