14-Article Text-21-2-10-20200628
14-Article Text-21-2-10-20200628
14-Article Text-21-2-10-20200628
ISSN: 2707-8892
Available atwww.ijssa.com
Abstract: The purpose of this study was to determine the factors of Motivation. Intrinsic and Extrinsic factors
of motivation were identified. And their relationship with employee motivation was analyzed. For this study,
descriptive analysis technique was used, in which data was collected from the banking industry. A sample of
215 individuals were selected from the population. For the selection of sample, convenient sampling technique
was used. During this technique data was collected from those employees of the banking industry who
assessable. The data was collected through questionnaire, which was made for the study. The collected data was
then analyzed through SPSS software, where different analysis was run on the data. For this study, demographic
analysis was used in order to find the demographics of the respondents, descriptive analysis was run to analyses
the normality of the data and inferential analysis was used to test the hypothesis of the study. the results of the
data were presented in the form of tables and graphs. The findings showed that both the intrinsic and extrinsic
factors have significant relationship with employee level of motivation.
1. Introduction
Mudar and Tokon (2011)[1], stated that because of highly competitive environment, every organization is
seeking to be successful as much as possible. Regardless of market and size, every organization is struggling to
grip the best and competitive employees, admitting their important role and their positive effect on effectiveness
and efficiency of the organization. For the sake of overcoming the challenges, every organization should build a
positive and strong relationship with the employees and must ensure that the employees are having satisfaction
in their jobs [2]. Organizations follow different strategies to compete in exceedingly competitive environment,
to achieve their goals and objectives and to enhance their effectiveness and efficiency. However, just a few of
the organizations think that the human capital as their important resource, prepared for the driving the
organization towards progress or if not managed rightly can prompt to failure for the organization and also can
lead to staff turnover[2].
Managers are confronted with the duty of employees’ motivation and also making their employees
highly satisfied. In order to satisfy the employee and to motivate them, managers needs to develop policies and
programs that needs energy and time. At the time when managers comprehend the rewards of motivating in the
working atmosphere, the investment in policies concerned with employee will be easily advocated. With having
the situation that the workers are not contented with the occupation and are not roused to fulfill their activities
and achieve their goals and objectives, organization that cannot reach success.
Each worker has its motivational features and factors which keep them motivate to accomplish their
work professionally and with effectiveness. Recognition can be the motivational factor for some employees
International Journal of Social Science Archives | Vol 1 • Issue 1 • June, 2018 Page 42
Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
while for others, rewards can serve as the motivational factor. Organizations should be aware of the needs and
requirements of the individuals. According to the literature, everyone has different standards and values and the
motivational factors of one individual cannot necessarily serve as the motivational factors of another individual.
Some individuals can be motivated by formal status and can enjoy recognition, other individuals like a reward in
monetary terms even some feel motivated by knowing that they have role stability. Therefore, management
should understand that what are different motivational factors and how they are related to the individuals in
order the enhance the capability of the employees and to maintain their performance. Even though the means
through which motivation is essential to choose worker’s capability, there are different factors, for case, the
resources supplied to execute her/his activity. Consequently, different motives can serve as the factors of
motivation for efficient performance of the individual. For example, two individuals doing similar tasks can
both efficient and successful for different motives and reasons. One sales representative may have convinced
through incentives made on contracts, meanwhile for someone else, sales target can be the concern. This creates
a well modification in the subject of motivation to improve individual performance can differ from individual
to individual[3]. Thought, determination of the motivational factors of induvial and what are the ways to
motivate them have been researched extensively. But still there is limitation of evidence that what are different
intrinsic and the extrinsic factors of motivation and how they impact employee’s motivation especially within
the banking industry. Therefore,the present study explored different extrinsic and the intrinsic factors that
impact motivation of employees in the banking industry.
2. Literature Review
2.1. Definition of Motivation
Numerous researchers had attempted to characterize motivation and it's a very much contemplated field which
has establishes in numerous scholastic disciplines, for example education, economics, sociology, psychology
and political science. Numerous specialists have defined motivation in the area of psychology as the
psychological powers of the individual that decide, controls and keeps up the situated practices which comprise
of the two arrangements of external and internal factors[4]. Numerous authors stated that motivation comprises
of two significant elements; extrinsic and the intrinsic factors. As per the theory of self-determination proposed
by [5], two kinds of motivation exist that are extrinsic and the intrinsic factors of motivation that impact the
execution of responsibilities of the individuals inside an association.
This type of motivation regards to tangible rewards like fringe, pay, benefits, coworkers, personal life, job
security supervision and work conditions. The plethora of the literature suggests the following shows extrinsic
factors of motivation. Not anybody work without compensation and nor anybody should do. Everyone works for
benefits, salaries and payments, and every employee want that the employers for whom they are working feel
this desire. The plethora of the research has suggested the rewards given to the individuals motivate the
individuals and cause them to work more productively [6]. The motivational level of the employees is also
inclined by the working atmosphere and its quality. Both the physical of characteristics andequal to which it
hows work effectively. While a contented bodily setting is linked with worker inspiration, the association is not
just as solid as the connotation amid motivation and administrative conduct[7]. Environment of the work has a
vital part meanwhile it effects worker motivation. Workforces are linked with a contented bodily working
condition that will eventually deliver additional hopeful motivational level.
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
This type of inspiration is a kind of wish of the employee to accomplish the duties and work in such a manner to
get the fulfillment of intrinsic needs. It can be said that, an individual has a responsibility keeping in mind the
end goal to achieve several kinds of inward conditions, that he or she happenstances as distinguishing
motivation recognizes psychological benefits, like, the gratification of an assignment completed. Prizes, benefits
and acknowledgment are the important features in advancement of workers employment fulfillment and their
inspiration in work that is straightforwardly related to the accomplishment of the organization. [9], carried an
examination and in that study, he examined the association between recognition and the acknowledgment and
workers inspiration in the banks located of Pakistan. This study focused on different four kinds of prizes one of
which was acknowledgment that he analyzed with Pearson analysis. The conclusions confirmed that
acknowledgment corresponds overall (0.65) with worker motivation level.
Kalpana (2013) [10] guaranteed that in assessment of fairness in organization, people initially assess
the quantity of their commitment (contribution) to the succeeding monetary or reward (yield) and after that the
contrast the amount and the referent others. Getting the similarly both of excessively (overcompensation) and
little (under-pay) is assessed as unfair treatment, as stated by equity theory. Training makes opportunities for
employee’s development and improves their vision and aptitudes for effective growth. Prepared and trained
employees are more propelled with their activity when associated with untrained workforces. These preparation
programs decidedly raise employees‟ progression that is valuable for abilities. As indicated by Lai (2011)[11],
participation of employees may upgrade inspiration and profession fulfillment through allocation of power, and
prolonged duty. Herzberg’ theory indorses that characteristic work factors, for example, duty held by worker
and abilities improvement may expand work fulfillment[11].
Based on the above discussion the following hypotheses have developed for the study;
3. Research Methodology
After studying about different kind of research designs, it was recognized that descriptive design of research is
much suitable for this research. The reason behind is that this study aims to know that what are the factors of
motivation and how these factors are related to motivation. For this reason, data was collected and analyzed and
that is why descriptive design of research was adopted for this study.
For the current study banking industry was selected as the target population for data collection. Data was
collected from the employees of public and private sector Banks. For the current study, Non-probability
sampling technique was selected. Convenient sampling technique was adopted for the current study because all
the participant meets the criteria of the research. So, based on convenient sampling technique, total of 215
employees were selected as a sample from the Managerial and the Non-managerial staff of private and public
Banks.
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
The questionnaire was segmented into two parts. The fist part of questionnaire was structured to gather data
about the demographics like age, gender and education of the respondent. While second part indented to
measure the variables of the study for analysis. A total of 250 questionnaires were distributed among the
employees of the private and public sectors Banks. Out of 250 questionnaires only 215 questionnaires were
selected to include in the study.
4. Analysis
The descriptive analysis comprises of descriptive statistical techniques. This analysis measures the central
tendency and the dispersion of the given data that is collected from the respondents of the study.
The maximum value, minimum value, standard deviation, mean, kurtosis and skewness for the intrinsic factors
are given in the table below;
The above table shows the values for intrinsic factors. According to the table the mean value was 3.42 which is
above 3, which indicates that the respondents of the questionnaire were impartial and neutral and were unbiased
towards the agreeableness of the questions asked in the questionnaire. Similarly, the table shows that the value
of standard deviation is 0.682. as the value is above 0.6, it indicates that the normal distribution of the
data.According to the above table the minimum value for intrinsic factors in the questionnaire was 1.34 and the
maximum value was 5.00. As, the values are within the range of 1 and 5 for minimum and maximum
respectively, this indicates that the data was correctly entered. Also, the value of skewness i.e. 0.23 and the
value of kurtosis i.e. -.732 shows the normal distribution of the data.
The maximum value, minimum value, standard deviation, mean, kurtosis and skewness for the Extrinsic factors
are given in the tablebelow;
Table2:ExtrinsicFactors
The above table shows the values for extrinsic factors. According to the table the mean value was 3.78 which is
above 3, which indicates that the respondents of the questionnaire were impartial and neutral and were unbiased
towards the agreeableness of the questions asked in the questionnaire. Similarly, the table shows that the value
of standard deviation is 0.622. as the value is above 0.6, it indicates that the normal distribution of the
data.According to the above table the minimum value for intrinsic factors in the questionnaire was 1.03 and the
maximum value was 5.01. As, the values are within the range of 1 and 5 for minimum and maximum
respectively, this indicates that the data was correctly entered. Also, the value of skewness i.e. 0.08 and the
value of kurtosis i.e. 0.454 shows the normal distribution of the data.
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
The maximum value, minimum value, standard deviation, mean, kurtosis and skewness for the
Employee motivation are given in the table below;
The above table shows the values for employee motivation. According to the table the mean value was 3.56
which is above 3, which indicates that the respondents of the questionnaire were impartial and neutral and were
unbiased towards the agreeableness of the questions asked in the questionnaire. Similarly, the table shows that
the value of standard deviation is 0.698. as the value is above 0.6, it indicates that the normal distribution of the
data. According to the above table the minimum value for employee motivation in the questionnaire was 1.80
and the maximum value was 5.03. As, the values are within the range of 1 and 5 for minimum and maximum
respectively, this indicates that the data was correctly entered. Also, the value of skewness i.e. -0.619and the
value of kurtosis i.e. 1.322 shows the normal distribution of the data.
Correlation analysis is caleed statistical technique which shows the relationship among the study variables.
Correlation analysis is run between the independent variable and the dependent variable of the study. The results
of the analysis are shown in the following sections.
Variables 1 2 3 4 5
1. Employee Motivation 1
The above table shows the correlation analysis between the Extrinsic factors and employee motivation. The
correlation coefficient values are given which shows the association among the variables. The value of
correlation coefficient between Monetary compensation and Employee Motivation is 0.54, which shows that a
significant positive relation exits between both the variables. The value also shows that the relation between the
variables is strong. Similarly, the value of correlation coefficient between work environment and employee
motivation is 0.23, which shows that a positive relation exists between the variables, and the relation between
them is weak. Likewise, the correlation coefficient between Good managerial relations and Employee
Motivation is 0.39, showing a moderate positive relation between the given variables. And finally, the value of
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
correlation coefficient between Promotion opportunities and Employee motivation i.e. 0.46 shows that a
significant positive relationship exists between both the variables and that the relationship is strong.
4.2.2. Correlation Between the Intrinsic Factors and the Employee Motivation
Variables 1 2 3 4 5
1. Employee Motivation 1
The above table illustrates the relationships that exists among the variables of the study. The correlation
coefficient values are given which shows the association among the variables. The correlation coefficient value
between Employee recognition and employee motivation is given as 0.32, this value shows that there is a
positive relationship between both the variables and that the relation in moderate. Similarly, the value of
coefficient between Fairness of treatment and employee motivation is 0.12, showing that a positive relation
exists between the variables. The value also depicts that the relation between the variable is weak. Likewise, the
value of coefficient between the Training and development and Employee motivation is 0.41, which shows a
positive strong relationship between both the variables. Finally, the value of coefficient between Responsivity
and employee motivation, which is .22, shows that the relation between both the variables is positive and
moderate.
Regression analysis was also run in this study. Regression analysis is used to find that the level of change that
one variable is causing in other. In the following sections the regression analysis for both intrinsic factors and
extrinsic factors are given separately.
The below table depicts the Model summary for the regression analysis between Extrinsic factors and employee
motivation.
The above table shows the model summary of the regression analysis between the Extrinsic factors and
motivation. The value of R2 shows that how much independent variable predicts the dependent variable of the
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
study. according to the given information the value of R 2 is 0.46, which means that the intrinsic factors predicts
46 percent variation in employee motivation.
Similarly, the following table represents ANOVA, which depicts the good fitness of the study model.
Total 39.338 98
Table 7: ANOVA 1
a: Predictors: monetary compensation, work environment, good managerial relations and promotion opportunities
The above table shows that the value of regression is less than the value of the residual, and the value of F is
17.15 which shows the good fitness of the study model to describe the relationship.
The value of beta for all the variables is shown in the table below;
Table 8: Coefficient
Unstandardized Standardized
Coefficients Coefficient
The above table depicts the Beta value for all of the study variables i.e. monetary compensation, Work
environment, Good managerial relations and promotion opportunities. When the value of t is higher at the level
of significance (<. o5) it would show that the variable is contributing more to the dependent variable i.e.
Employee motivation. The table shows that the value of t is highest for monetary compensation which is
significant at 0.001. Thus, it means that monetary compensation contributes more to employee motivation.
Similarly, the value of beta for work environment, good managerial relations and promotion opportunities are
0.138, 0.124 and 0.201 respectively, which shows significant relationship and contribute to employee
motivation.
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
The below table depicts the Model summary for the regression analysis between Intrinsic factors and employee
motivation.
The above table shows the model summary of the regression analysis between the Intrinsic factors and
Std. Error of the
Adjusted R
Model R R Square Square Estimate Durbin-Watson
motivation.
The value of R2 shows that how much independent variable predicts the dependent variable of the study.
according to the given information the value of R2 is 0.386, which means that the intrinsic factors predicts 38
percent variation in employee motivation. Similarly, the following table represents ANOVA, which depicts the
good fitness of the study model.
a: Predictors: Employee Recognition, Fairness of Treatment, Training and Development and Responsibility
Total 37.85 96
The above table shows that the value of regression is less than the value of the residual, and the value of F is
17.023 which shows the good fitness of the study model to describe the relationship.
The value of beta for all the variables is shown in the table below;
Table 11:Coefficient 2
Unstandardized Standardized
Coefficients Coefficient
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Shah, Khan & Noor; Exploring Intrinsic and Extrinsic Factors That Affect Employee’s Motivation: A Case
Study of Banking Industry
The above table depicts the Beta value for all of the study variables i.e. Employee Recognition Fairness of
Treatment, Training and Development and Responsibility. When the value of t is higher at the level of
significance (<. o5) it would show that the variable is contributing more to the dependent variable i.e. Employee
motivation.The table shows that the value of t is highest for Training and Development which is significant at
0.001. Thus, it means that monetary compensation contributes more to employee motivation. Similarly, the
value of beta for Employee Recognition, Fairness of Treatment and Responsibility are 0.203, 0.153 and 0.300
respectively, which shows significant relationship and contribute to employee motivation. The following
analysis leads to the acceptance of the proposed hypothesis of the study.
5. Discussion
This study concluded that the extrinsic factors of motivation i.e. Monetary Compensation, the Work
Environment, the Good Managerial Relations and Promotion Opportunities have a positive relationship with the
employee level of motivation. These are those kinds of factors that originate external from the work or job. A
study conducted by [6]also analyzed in his research that work environment is extrinsic factor of motivation and
has and impact of employee level of motivation. The reason behind this is that in good working environment the
employees feels more satisfied, do their jobs wholeheartedly and feels confident. As indicated by[7], the
administrators have the duty of creating a good motivating environment to make the individuals feels satisfied
and motivated. Furtherer it was argued that the extrinsic factors have significant role in persuading the
employees of the organization. [8]also indicated that Extrinsic factors have a relation with the employee
motivation level, and that the managers should keep the employees motivated by focusing on such factors.
The research recognized gratefulness of workers by the association. By studying the literature, it was identified
that Employee Recognition, the Fairness of Treatment, their Training and Development and Responsibility are
some of the intrinsic factors influencing employee motivation. This study concluded that these factors were
having a positive relation with the employee motivation. As indicated in a study by[9], training and the
development is the factors which motivate the employee towards better performance. Similarly, [10]argued that
the managers should give priority to factors like fair treatment and training and development to make a good
working condition for the employees of the organization.
5.3. Recommendations
Organizations must grow the significance of extrinsic and intrinsic factors of motivation for the better
performance of the employees. The managers should acknowledge the position of extrinsic factors of the
motivation and should consider these factors when making strategies for employee motivation. Addressing the
extrinsic factors can be costly for the organization but looking to the importance of these factors, they must be
given importance. Similarly, the importance of intrinsic factors should also be acknowledged. The organization
should motivate their employees through the intrinsic factors like fairness of treatment and training and
development. In future, it is recommended that, research should be done in different sections. Also, the different
other intrinsic and extrinsic factors should be explored in order to extent the area of study.
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