JOURNAL OF SECURITY AND SUSTAINABILITY ISSUES

ISSN 2029-7017/ISSN 2029-7025 (online)

2020 Volume 9 January
http://doi.org/10.9770/jssi.2020.9.J(4)

EMPLOYEE MOTIVATION AND PERFORMANCE: DO THE WORK ENVIRONMENT AND THE TRAINING
MATTER?

Luedech Girdwichai1*, Chutikarn Sriviboon2

1, 2
Suan Sunandha Rajabhat University, Bangkok, Thailand,

E-mails: 1*[email protected] (Corresponding author), [email protected]

Received: 10 March 2019; accepted 18 December 2019; published 30 January 2020

Abstract. The prime objective of the current study is to examine the impact of the employee motivation on the employee performance.
Additionally, the study has also examined the mediating role of work environment and training on the relationship between employee
motivation and the employee performance. The study has used the survey-based methodology and the data is gathered form the academic
staff in the ten leading business schools in Indonesia. The data is gathered with the aid of questionnaire and the response rate turned out to
62.3 percent. The SEM-PLS is employed for the data analysis. The results show that there was significant relation between employee
performance and employee motivation. It also reported that training had a positive but moderate relationship to employee performance. The
findings highlighted areas which organizations should focus on in order to enhance employee performance. Healthy and positive working
environment have been found to enhance performance. The work environment fails to mediate the relationship between the employee
motivation and the employee performance. The findings highlighted areas which organizations should focus on in order to enhance employee
performance. Healthy and positive working environment have been found to enhance performance. The findings suggest that the introducing
a relax zone, for instance, can encourage employees to generate ideas and relax their mind. Organizations should find out what really motivate
employees and take necessary action to ensure employees will be constantly motivated at the workplace.

Keywords: employee motivation; training; employee performance; work environment; higher education; Indonesia

Reference to this paper should be made as follows: Girdwichai, L., Sriviboon, C. 2020. Employee motivation and performance: do the work
environment and the training matter? Journal of Security and Sustainability Issues, 9(January), 42-54. http://doi.org/10.9770/jssi.2020.9.J(4)

JEL Classifications: I25

1. Background

Behind any successful organization human resource plays an important role as a backbone (Sriviboon &
Jermsittiparsert, 2019). According to the literature the in organization the competitive advantage can be increased
or sustained by a well-managed human resource (Sriekaningsih & Setyadi, 2015; Kerdpitak & Jermsittiparsert,
2019). With the help of strategic management of HR, the organization can accomplish and use its resources at
optimal level, which will make a contribution in leading the organization towards continues and effective
accomplishment. van Woerkom et al. (2016) has suggested that any organization can achieve its goals by utilizing
its resources at optimal level with a help of good management of human resource. The employee’s performance is
affected by the goals of organization, the organization can accomplish its goals only when its employees are giving
well performance. Different factors including job satisfaction, employee engagement, salary, training, workplace
environment and motivation can influence the employee performance ( Davydenko et al., 2017; Al-Kahtani, 2018;
Kiruja & Mukuru, 2018; Lorincová et al., 2019; Bernardi, 2019).

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Organizations are subsumed in today’s unstable, uncertain and unpredictable environment with long-term
survivability and sustainability in question. The business operations are affected with the interacted volatile
environment which eventually effects the overall performance and profitability of the organization. In global
financial crises of 2008the Malaysian banks and financial sectors were predicted to have a declining performance
but they were not able to decide to the 1997-1998 Asian financial crisis levels(Almeida et al., 2015). On the
performance of financial institutions there is significant impact of the global financial crises, world economy and
thought-provoking economic environment (van Woerkom et al., 2016). In the national economic development and
economic growth of Malaysia there is an important role of its banking industry. The banking industry is aligned
with the nation’s economic scenario because this industry also makes its contribution in the revenue of country. The
distribution of financial resources and efficient and effective of banking system is playing an important role in
transforming the Malaysia in becoming a high-income economy and having a prominent role of intermediation of
funds with in the region and other developing economies (Baskaran et al.,2017). There is a continuous threat to the
overall performance of the banks by the external environment (Tvaronavičienė et al., 2018; Masood et al., 2019). It
must highlight the specific areas and work inside the internal environment, where there is a control of initiative
implementation and strategic planning for the productivity enhancement and should also focus on polices of human
resource for enhancing the work force quality for becoming a more competitive economy (Sriekaningsih & Setyadi,
2015).

For the continuous development the bank must work on aligning the objectives and goals of organization and
employee performance and motivate their employees by developing the positive work environment and proper
trainings. According to the Mayer and Roberta (2017) as mostly internal factors are under controlled by the
organization so the organizations should pay more attention to identify and deal with the internal environment.
According to Kiruja and Mukuru (2018) there are some factors like effective training, employee motivation,
workplace environment, structures, systems and processes can affect the individual performance positively or
negatively. He also stated that the employees who are motivated work hard and always be loyal to their
organizations. And the employees who are trained well will perform better. So, the internal environment must be
planned in this way that it provides opportunity to share ideas and exchange the knowledge, and formal and informal
interactions must be encouraged at work place to increase the performance (Almeida et al.,2015). Best employee
performance lead towards successful business. For the effective job performance, the employees should have
motivation and enough trainings to provide them the important capabilities which will help then to perform their
job. For the performance and development of employees the important factors are satisfiers or motivators (Jalloh &
Jalloh, 2016).

Besides the work environment, employee’s behavior, employee motivation and training the job performance can be
controlled by the organization. (Zhang, 2019), has stated that the opportunity to voice out the concerns of
employees, credible and consistent management, respectful treatment, satisfactory benefits and compensation, job
security, comfortable working conditions a practical workload and a healthy work environment are not motivational
factors rather these are basic requirements. So, this has filled this gap that either training, work environment and
employee motivation are main factors that must be considered by the bank for increasing the employee performance.

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2. Literature Review
2.1 Employee performance

Some evidences are rising that HR management plays an important role for retaining the exiting high-quality work
force. Different studies regarding the practices of HR management have revealed that absenteeism and turn over
can be reduced which ultimately increase the quality work and with high performance with the help of good
practices of HR. (Guest et al., 2017). It is also suggested that there is an important role in employee retention by the
HR management. Boer et al.(2017), had made a study on the issue of high performance and the strategy of
organization related to employee retention was primarily started by Australia, Asia, Europe and US. A business can
never exit without the human capital just as financial capital is important for the establishment of business (Marvel
et al.,2016).The employee work for company and help in performing the important task for the proper functioning
of the company and they also accountable for the growth and required profit of the company (Drucker, 2017).
According to the Chhotray et al.(2018) employee motivation means empower to the employees for leading the
company towards the competitiveness. And for the employees the empowerment and motivation are important to
stay in company for long period of time company (Jacoby, 2018)
2.2 Employee Motivation

As per the study of Mikkelsen et al. (2017), “the motivation concept referred to
internal factors that impel action and to external factors that can act as inducements to action”. They further
suggested that direction, intensity, and duration are the three-action influenced by motivation. Thus, understanding
different employees’ motivational style will help to explain and predict the affect, cognition, and behavior patterns
that are displayed by different employee (Hsiung & Tsai, 2017). Kanfer et al.(2017) argued that some common
words like goals, incentives, needs, aims, wishes, wants or desires are included in motivation. According to
Cameron and Green (2019) the inner force which gives energy to the individuals for the accomplishment of
organizational and personal goals is known as motivation. Hence, work motivation has been referred as the process
that contributes to the initiation and maintaining goal-directed performance(Larsson et al., 2018). The importance
of achievement motivation in work is seen as focusing in intrinsic motivation, the level of the “motivational state
in which individuals is attracted to and energized by the task itself might be obtained (Beal, 2017). This was
supported by Jacoby (2018) who suggested that people can be motivated by the nature of work itself. According to
the Cameron and Green (2019) the acquisition of abilities and skills of people can be affected by the motivation.
Thus, through mastery and performance goals, motivation will prompt a focus on self rather than on task (Durodolu,
2016).

As per the study of Breaugh et al. (2018) employee motivation can be of two types the first type is Extrinsic and
the other one is intrinsic motivation. The people who have extrinsic motivation are the one who never interested in
doing any kind of odd jobs, but they get ready just for the sake of getting some extra incentives such as wages or
promotion, some praises and appreciations (Larsson et al., 2018). Whereas the people with intrinsic motivation are
internally motivated or are self-motivated people, and for the performing their job well they just don’t need extra
praise wage or any other rewards. They actually enjoy doing the challenging jobs and complete their targets
efficiently (Jacoby, 2018). Though the best form of motivation is intrinsic one because it has long term and strong
effects on employees because according to the (Vanek, 2017) the intrinsic motivation cannot be imposed by the
management on employee as it is inherited in employees. According to another study of Froese et al.(2016), the
turnover intention of the employees is also depending on effects of individual background. Through the motivation
the employee turnover can be decreased.

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According to the Cook and Artino Jr (2016) the goals, incentives, needs or wants, aims and wishes or desires are
the common enclosure of words that motivation have. So, for the achievement of goals the individual must be
energetic and motivated effectively and focused on accomplishing their goals, and for the realization of objectives
they agree to utilize their energies for long time period. Moodley and Hove (2018) have found that the employee
turnover can be affected by the employee motivation, and they also stated that the demotivated employee tends to
leave the organization. The organizational commitment job satisfaction and the employee motivation are the
important factors which plays an important role in employee turnover. In an organization the most dedicated
employees can give the best performance. There are different factors which effects the employee performance such
as structure of organization, job security, trainings, compensations, employee satisfaction and motivation and
appraisals, but the current study will focus on employee motivation as the employee performance can be highly
affected by the employee motivation. According to the Froese et al. (2016) in an organization the managers can
increase the effectiveness of job administration among other employees by having the employee motivation as
procedure.

Working Environment
For the explanation of work environment, a lot of studies were conducted in different aspects like employee
retention job satisfaction organizational commitment employee turnover and job involvement. According to the
Kim and Yun (2015) in employee retention the most important factor is the work environment. As per the study of
Abhigna and Subramanyam (2017) we generally discuss the work environment in industrial point of view and
focused on different aspects like heavy lifts the exposure of toxic substances and noise. The different characteristics
of work environment in production and service sector are different which is quite interesting because in service
sector the organizations staff directly deals with the customers or consumers. Interaction with customers depends
on the nature of business or job it may increase or decrease accordingly. And these interactions of employees and
clients ultimately move from physical dimension to psychological. The psychological work environment contains
decision and latitude, stress, support and workload.

In an organization for keeping the employee committed it is very important to recognize the employee needs and
give them healthy work environment. Brum (2007)has stated that when people feel that they are making contribution
in the performance of organization then they stay for long in an organization and strive to work because of positive
work environment. The talented employees of these organizations drag together for achieving the organizational
goals. According to the study of Kim and Yun (2015) in the decision making of employee either to stay in or leave
the job there is an important role of work environment which is also an important factor in employee retention. For
example, for the physical and psychological health of employees the noisy work environment is harmful and reduce
their productivity. The speech isolation shorts are the abundant audio complains like over hearing the discussion of
people and feel the same. Reduction in stress and anxiety are helpful for the environment of an organization.
Recognition of responsibilities, work clarity involvement in making different decisions, work challenges, co-
workers support and efficient managers are included in work environment. The employee leads to look forward for
the new opportunities because the lack of such environment. In this environment the employee feels connected with
organization in all aspects. The employees need an environment where they have continuous learning, improvement
in their skills provision of certification and higher studies etc. The work life balance includes wellness of employees,
free vacations, alteration of work schedule telecommunication and flexible hours, which can be provided by the
organization.
Training
According to Cloutier et al.(2015) employee retention the most important factor is investment in training the
employee. There is an incentive for the organization to invest for training of those employees who can contribute
in increasing the output of organization. For the talented employees’ organizations are the development escalation,

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with the help of proficiency analysis, input of employee interest, and for the formulation of actions and plans the
multisource capabilities appraisal and development s required. According to Riley et al. (2017) in the form of
trainings individuals and firms make investments on human capital. The employee skills can be increased with the
help of trainings. After hiring of new employees, the organization must start a training program to increase their
skills. Kim and Yun (2015) has stated that there is perception that employees want to acquire new knowledge skills
for the job application and share with their colleagues. According to the study of Abhigna and Subramanyam (2017)
employees can get specialized skills and different techniques from trainings which help them in rectifying the
performance deficiencies. Whereas the abilities and skills provided by the development are the one which
organization will need in future. Improvement in basic literacy, problem solving, technological knowledge and
interpersonal communication all are the part of skill development.

According to the Riley et al. (2017) in market for meeting the global challenges of market, it is important for
organizations to provide modern knowledge to their employees to increase their performance. According to the
survey of Kim and Yun (2015) regarding training large manufacturing firm have high tendency to provide trainings
as multinational firms train their employees with high performance or with approach of flexible production.
According to the literature the organizations or companies which spends more on human resources for the
establishment of high performance can easily retain their talented staff. The firms which are more trained to tackle
the advanced technical changes have shown progress in their output as compare to the firms who never face any
competitors in past. Abhigna and Subramanyam (2017) has stated that when organizations give more benefits and
adopt the innovative techniques to train its employees as compare to other firms in the market, they retain their staff
for long time period. According to Achieng’Nyaura and Omwenga (2016), for employees, training is basically a
sign of organizational commitment. It’s the part of agreement in leading firms’ that career and skill development,
and an inclusive range of trainings are the important factors for retention and attraction to form a flexible strategy
of firm for the success of technological and sophisticated employees in an automatic economy. According to the
Brum (2007) trainings are inversely related with the employee turnover ratio means if number of training increased
it will lower the turnover rate. Its means that if a worker stay long in organization will acquire number of trainings.
As per the opinion of workers productivity can be increased with the help of skill related trainings. Organization
will increase employee wages if they have high productivity which ultimately help in employ retention. In employee
retention the main factor is training because it is helpful in reducing the turnover rate. Organizations should give a
chance to their employees to enhance and improve their skills with the help of trainings. A lot of firms be afraid
that when their employees will be well trained, they will start searching other opportunities and quit their job. The
resources on which the organizational success depends should not be limited. Development and carrier growth are
the important part of every one’s career. In employee growth the key factor which an employee looks for himself
or herself is work profile, which must not be too high or too low. With the help of trainings, the employee can
increase their performance with advanced skills (Dhar, 2015). Whereas the development is a process to provide
different capabilities that can be helpful for employees and organization in future (Teece et al., 2016).
Based on the literature reviewed the study has drawn the following hypothesis
H1: EMM has significant impact on the EMP.
H2: EMM has significant impact on the WE.
H3: EMM has significant impact on the TR.
H4: WE have significant impact on the EMP.
H5: TR has significant impact on the EMP.
H6: The WE mediate the relationship between the EMM and EMP.
H7: The TR mediates the relationship between the EMM and EMP.

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3. Methodology

For the purpose of current research, total 300 questionnaires were distributed and subsequently derived 250
questionnaires from the respondents. Due to incomplete questionnaires and missing information we discarded 6
questionnaires, resulting in 244 usable questionnaires, with 81.3% of response rate for carrying out the data analysis.
Since the data has been collected through self-administered method, therefore no test was performed to check the
biasness. The questionnaires were distributed by hand to each survey participant with a one-week time to fill and
send back to the researcher for further data processing. In addition, a conformity test has not been performed to
check for nonconformities between non-respondent and respondent, because of the research methodology chosen
for this study and because all the distributed questionnaires were received within the expected time. The Partial
least square (PLS) was selected for statistical analysis of the data. This method was chosen because, firstly, this
method demands less regarding sample size, as compared to AMOS or other techniques; secondly, it is suitable for
complex models involving multiple constructs, and have no strict requirement for normally distributed data; and
lastly, PLS is considered to be an ideal technique to describe and forecast model constructs using structural equation
modeling (Hair et al., 2014). Thus, PLS-SEM was chosen to examine the collected data and to provide supporting
evidence for the hypotheses. The measurement of the variable of the study is taken from the prior studies

4. Results

Hair et al. (2014) described PLS as a modeling approach which particularly aims at describing as well as maximizing
the variance in the dependent latent construct. Generally, a two-staged approach is used to apply PLS. The first
stage involves assessing reliability and validity of measurement model, and second stage involves structural model
estimation. The measurement model under PLS-SEM context is also termed as the outer-model, which can further
be classified as formative and reflective path-modeling (Becker et al., 2012). The goodness of measurement model
was checked to confirm the validity and reliability of measuring items involved in this research. According to Hair
et al. (2014), the validity and quality of latent constructs is determined by estimating each construct’s convergent
and discriminant validity. A construct’s validity is described as the extent to which a variable’s operational
definition truly reflects and interprets its theoretical meaning. The measurement model of the current study is shown
in the figure 1 below. Outer loading is presented in Table 1.

Figure 1. Measurement Model

Table 1. Outer Loading

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EMM EMP TR WE
EMM2 0.894
EMM3 0.900
EMM4 0.883
EMM5 0.914
EMM6 0.884
EMP1 0.909
EMP2 0.904
EMP3 0.874
EMP4 0.884
EMP5 0.826
EMP6 0.871
EMP7 0.852
TR1 0.878
TR2 0.837
TR3 0.903
TR4 0.909
TR5 0.868
WE1 0.918
WE2 0.873
WE3 0.930
WE4 0.906
WE5 0.925
EMM1 0.888

As previously mentioned, the convergent and discriminant validity of the constructs were established through
performing a confirmatory factor analysis (CFA). The convergent validity is defined as a contract or arrangement
among measures of the similar construct (Bagby et al., 1994). It shows those set of indicators that are regarded as
original constructs which can be determined through their uni-dimensionality. Thus, convergent validity was
assessed by determining the factor loadings, average variance extracted (AVE) and the composite reliability (CR)
(Hair et al., 2011). Finally, the average variance extracted (AVE) was calculated for establishing convergent
validity. Hair et al. (2014) suggest that AVE refers to the extent the latent construct can explain the change in items
of the same construct. Fornell & Larcker (1981) recommend AVE to assess convergent validity, and the AVE>0.50
indicates that more than 50% change in indicator is explained by the respective latent variables (Hair et al.,2014).
Reliability is presented in below in Table 2.

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Table 2. Reliability

Cronbach's Alpha rho_A CR (AVE)

EMM 0.950 0.950 0.960 0.799
EMP 0.949 0.950 0.958 0.765
TR 0.926 0.928 0.944 0.773
WE 0.948 0.950 0.960 0.829

Hair et al.(2014) defined discriminant validity as the degree that a construct is uncorrelated with different measures.
According to Sekaran and Bougie (2011), it refers to a situation where two distinct concepts possessing varied
features are uncorrelated. Thus, the discriminant validity (DV) shows the uniqueness of varied and distinct
constructs. For the purpose of establishing a construct’s adequate discriminant validity, van Woerkomet al. (2016)
suggested two different methods, namely, the cross loadings and the Fornell-Larcker criterion. Discriminant validity
is presented below in Table 3.

Table 3. Discriminant validity

EMM EMP TR WE
EMM 0.894
EMP 0.687 0.875
TR 0.810 0.704 0.879
WE 0.892 0.651 0.816 0.911

Afterwards, a path-analysis was employed to test and validate the set of proposed hypotheses. Therefore, at first
stage of this analysis, the inner model was determined. The partial least square (PLS) is basically a prediction and
variance-based approach that aims to test the hypothesized relationships and the building of supporting theoretical
framework. The structural model of the current study is shown in the figure 2 below.

Figure 3. Structural Model

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Following Wong (2013) suggestion in current research, the structural model was determined through PLS-SEM
algorithm and bootstrapping, where bootstrapping is a non-parametric re-sampling approach that is generally
employed under PLS to analyze the significance of estimated parameters. The purpose of estimating structural
relationships involved in the structural model is to check the relationships between the variables and to test the
proposed hypotheses. Thus, we performed a bootstrapping procedure to obtain the model’s t-statistics, by employing
500 resamples. The findings of the study have highlighted that exp WE -> EMP, all the paths EMM -> EMP, EMM
-> TR, EMM -> WE, and TR -> EMP are significant. Direct Relationships are presented in Table 4.

Table 4. Direct Relationships

(O) (M) (STDEV) (|O/STDEV|) P Values

EMM -> EMP 0.687 0.690 0.069 9.923 0.000
EMM -> TR 0.910 0.910 0.017 53.922 0.000
EMM -> WE 0.892 0.892 0.022 40.869 0.000
TR -> EMP 0.501 0.498 0.153 3.268 0.001
WE -> EMP -0.068 -0.056 0.111 0.610 0.271

The study has also examined the mediating role of the TR, and WE in the relationship between EMM, and EMP.
The findings of the study have revealed the fact that the TR mediates the relationship between EMM, and EMP
whereas the WE fail to mediate the relationship between EMM and EMP. Mediation is presented in Table 5.

Table 5. Mediation

(O) (M) (STDEV) (|O/STDEV|) P Values

EMM -> TR -> EMP 0.456 0.453 0.141 3.243 0.001
EMM -> WE -> EMP -0.060 -0.049 0.099 0.607 0.272

The R-square or coefficient of determination value ranges between 0 and 1, the greater the value i.e. close to 1, the
higher the forecasted accuracy level. The R2 value is considered to be weak if it is equal or less than 0.25, it is
considered as moderate if it is equal to 0.50 and substantial if it exhibits a value equal or above 0.75. R-square is
presented in Table 6.

Table 6. R-square

R Square
EMP 0.509
TR 0.829
WE 0.796

To explain the predictive ability of the conceptual model drawn and proposed in this research we have used the
blindfolding procedures. The blindfolding is mapped in the figure 4 below.

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Figure 4. Blindfolding

The findings of the blindfolding procedures have revealed that there is no issue of predictive relevance in the
currents study as all the value sin the table are above zero. Q-square is presented in Table 7.

Table 7. Q-square

SSO SSE Q² (=1-SSE/SSO)

EMM 1,302.000 1,302.000
EMP 1,519.000 967.143 0.363
TR 1,085.000 427.415 0.606
WE 1,085.000 406.699 0.625

Conclusion

The results show that there was significant relation between employee performance and employee motivation. It
also reported that training had a positive but moderate relationship to employee performance. Similar findings were
found from past studies. Employee motivation was found to have an impact on employee performance(Moodley &
Hove, 2018). They found that demotivated employees tend to be dissatisfied, absent from work or leave the
organizations. Absenteeism affects employees‟ job performance. The best performance is achievable with most
dedicated employees that can only be completed through employee motivation within an organization. Employees
perform well on the job mostly depends on different factors such as depend on many factors like organizational
structure, job security, trainings, compensations, employee satisfaction and motivation appraisals and performance,
but the current study will focus on employee motivation as it affects the employee performance. Vanek (2017) said
that managers can increase the effectiveness of job administration among other employees in the organizations with
having employee motivation as procedure.

The findings highlighted areas which organizations should focus on in order to enhance employee performance.
Healthy and positive working environment have been found to enhance performance. Introducing a relax zone, for
instance, can encourage employees to generate ideas and relax their mind. For example, the management of Google
company office prepared a relax zone for the employees and the theme chosen for the office is so relaxing and there
are no compartments there because the management wanted to create a good environment for the employees. The
relationship between the office mates is also good. The company must be aware of the importance of training for

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the employees. Employees must attend any training that can help in developing their career and getting a good
performance in their work. This will lead to job satisfaction for their management. For example, employees who
attended training should share the knowledge. Motivation is another aspect which the organization must consider
as it affects employees‟ satisfaction and performance. Organizations should find out what really motivate
employees and take necessary action to ensure employees will be constantly motivated at the workplace.

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Luedech GIRDWICHAI is an Associate Professor and the President of Suan Sunandha Rajabhat University, Thailand. His research areas
are Educational Research, Early Childhood Education, and Educational Administration.

Chutikarn SRIVIBOON is a Lecturer of Doctor of Philosophy Program in Development Administration, Suan Sunandha Rajabhat
University, Thailand. Her research areas are Leadership, Human Resources Management, and Innovation Management.
ORCID ID: orcid.org/0000-0002-9667-3730

This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/

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