




































 

  

Effect of Employees' Motivation on Performance in 

Organizations 

Dr. Almas Sabir and Dr. Shoeb Ahmad 

 

 

 

 

 



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Effect of Employees' Motivation on Performance in Organizations 

Dr. Almas Sabir1* and Dr. Shoeb Ahmad2 
1Department of Management, College of Business Administration, University of Hail, Saudi 

Arabia. 

Email: almas.sabir083@gmail.com 

2College of Business and Management, Fahad Bin Sultan University, Tabuk, Saudia Arabia. 

Email: shoebahmad09@gmail.com 

Abstract 

Purpose: This study aims to capture the effect of staff motivation in the organization and one form 

of motivation.  

Findings: The main findings of the paper is to find out what motivates employees to do top work 

for the organization's benefit. Research also allows agencies to discover how employees think about 

their jobs or perceive their current job. 

Methodology: This article analyzes one-on-one payment systems and how they use by businesses 

and looks at the organization's lifestyle and how it affects employee behavior. 

Unique contribution to theory, practice and policy: An organization's progress is directly related 

to the people willing to work there. This article discusses how employee motivation affects 

company performance and overall organizational progress. 

Keywords: Employee, Motivation, Performance, Organization, Lifestyle, Behavior. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mailto:almas.sabir083@gmail.com


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1.0 Introduction 

The topic of motivation has been discussed. By the middle of the 20th century, domination of the 

most intellectual and credible theories, especially the Maslow (1943) management class, Herzberg's 

Tenny theory (1959), and the Vroom's Expectancy Theory (1964), expanded. Theories focus on the 

promotion of general energy efficiency and performance. It is generally agreed that employee 

motivation can play an important role in internal and external motivation. Staw (1976) suggests that 

one of the first attempts to make this difference led to Herzberg's vision. However, discourses on 

internal and external motivations have grown in recent years.   

The relationship between job motivation and the performance of the whole process has been studied 

in the past. However, excessive statistical advertising between the two is now being abandoned. 

However, a subsequent study found that employee motivation was undoubtedly associated with the 

effectiveness of the whole process. These relationships are discussed in this article, and the purpose 

is to provide management with helpful information on how internal or external motivation can 

improve employee performance. 

Workplace diversity has given management many benefits from the issues. The big difference 

between employees in any organization is that there is no standard way to deal with workplace 

problems. The whole motivation of some employees can be a big problem for modern management, 

as it can discourage others. In addition to controlling regular operation and a unique praise system, 

this function also addresses the lifestyle that governs human resources. In the middle of the 20th 

century, some fundamental motivational theories emerged, including Maslow's Hierarchy of Needs 

(1943), Herzberg's Two Factor Theory (1959), and Vroom's Expectancy Theory (1964). This study 

focused on general motivation and staff motivation.  

2.0 Staff Motivation 

The motivation of employees for many things, such as the environment, large sums of money, and 

staff, affects the organization's performance. However, human resources are considered to impact 

the organization's activities significantly. Therefore, it is legal to say that an organization should 

encourage its employees to achieve the declared goal and objectives. In this study, the motive is 

clearly defined. Motivation is manifested in many ways. Many researchers have tried to develop a 

concise theory of motivation, but all have come up with incredible ideas. Research has been done 

on this topic, and many hypotheses have been put forward that profoundly affect the organization's 

ethics. For example, Herzberg's (1959) theory of motivation is still used today. According to Staw 

(1976), Herzberg was one of the first to distinguish between internal and external stimuli. This 

distinction becomes apparent and helps motivate employees in the workplace (Staw, 1976). 

2.1 The Concept of Motivation  

The concept of motivation can be defined as a management process that encourages people to serve 

the general interests of the organization better, giving them motives based on their unmet needs. 

The question is, "Why should a manager raise employees?" (Herzberg, 1959). According to Smith 

(1994), it is because of the existence of society. As Amabile (1993) asserted, leaders and managers 

must learn to comprehend and manage the efficiency of their employees. In today's world, one's 

employees are the backbone of an organization. Future developments will reveal how unscrupulous 

employees plan and execute as many low-level tasks as possible from their actual jobs. When 

employees are motivated, they help organizations thrive and survive in rapidly changing 



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workplaces (Lindner, 1998).Lindner also points out that the most challenging role for managers is 

to motivate employees because staff motivation is constantly changing (Bowen & Radhakrishna, 

1991). The term motivation was coined in the early 1880s before the term "will of power" was used 

by prominent philosophers and social scientists who were more concerned with moral issues than 

human motives (Noguera, 2013). According to them, the motive will be; a business that needs 

action. Recently, many researchers have come up with different explanations for motivation. The 

term is defined as psychological processes that provide purpose and serve as guidelines for behavior 

and morality (Bobocel, Kay, Zanna, Olson, 2018). Voluntary behavior corresponds to unmet needs 

(Dorian, Peters, Rafael & Richard, 2018); and internal efforts to meet those needs. Management 

must motivate employees to achieve the outcomes required by the organization. It can also be said 

that there is a consensus that the motive is personal development, which is defined as meaningful, 

multifaceted, and valuable. 

2.2 Maslow and Herzberg Theory of Motivation 

Herzberg (1959) introduced a two-dimensional theory, a well-known theory of motivation. It is 

explained from the perspective between incentives and hygiene. He emphasized that the issue could 

be a one-size-fits-all solution, but it could not be the same as shown in figure 1. The most important 

motivators are rewarding work, awareness, and commitment. Hygiene promotion encourages 

external factors such as status, employment security, and income. Motivational factors can lead to 

dissatisfaction and dissatisfaction when hygiene factors are not present, but two factors cannot be 

treated as contradictory to each other (Saiyadain, 2009). 

 

Figure 1:  Hygiene and motivation factors 

Source: https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory 

https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory


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Herzberg's Two-Factor Theory is related to Maslow's motivation theory, and Maslow, in his book, 

outlines his motivational Theory. In his field of service leadership, Maslow says there is at least a 

set of five goals called basic needs. 

1. Physical needs: These needs are directly related to a person's health. Sets are usually physical 

necessities such as food, clothing, and bedding. Lack of these requirements can cause the body 

to degenerate, and the body's needs are considered very important and must be met first. 

2. Safety requirements: This is a type of safety measure against various threats, and if a person's 

safety requirements are met satisfactorily, his or her safety needs are paramount, and they 

govern behavior. When there is no security in the aftermath of war, natural disaster, family 

violence, or child abuse, people may suffer post-traumatic stress disorder. Lack of economic 

security, insecurity due to the economic crisis, and unemployment, these security needs will 

manifest themselves in ways such as choosing job security. 

3. Social need to be in a group: It exposes the social size of a person who needs to feel accepted 

by the groups in his or her family, work, closeness, friendship, and friends. According to 

Maslow, humanity needs to feel and feel part and accepted among the social groups in life who 

choose to be a part of it or find themselves in it. These groups can be large or small; other 

prominent groups may include religious groups, colleagues, professional organizations, sports 

teams, or criminal gangs, while small groups may include romantic relationships, family 

members, counselors, colleagues, and confidants. 

4. Requirements for Respect and Trust: A person needs to feel respected; this includes the need 

for confidence and trust. Esteem expresses a normal human desire to be accepted and 

appreciated by others. People often get involved in work or hobbies to gain recognition. These 

activities give a person a sense of recognition or worth. 

5. Personal development: According to Maslow, this need aims to get out of this situation to 

achieve fulfillment. This level of need is a desire to achieve all that one can do. 

In 1943, Maslow argued that people have an inner need that compels them to fulfill themselves and 

elevate themselves. He then came up with the idea that there are five different positions of need, 

and if we are satisfied with meeting the need in one place, it will affect our attitude. When 

employees reach such a stage, their attitude begins to deteriorate, and now we place a strong 

emphasis on working for what is beyond the levels. 



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Figure 2: Abraham Maslow’s hierarchy of need. 

Source: https://www.linkedin.com/pulse/business-application-maslows-hierarchy-needs-suzy-

jurist  

2.2.1 Internal and External Motives 

Motivation can be divided into internal motivation and external motivation. These two motivations 

vary from one source of stress to another. Amabile (1993) elaborates on people are deeply 

motivated when seeking happiness, interest, curiosity, self-expression, or personal challenge at 

work and people are encouraged unless they work to get a goal outside of the work itself. 

2.2.1.1 Internal/Intrinsic motivation 

Motivation, derived from personal happiness or interest in work, does not involve the rewards of 

employment outside the workplace but instead requires an inner sense of enjoyment. It can be seen 

as a force that involves performing tasks without external motivation. According to Amabile (1993), 

people are motivated when they seek pleasure, interest, curiosity, self-expression, or personal 

challenge in the workplace (Amabile, 1993). 

2.2.1.2 External/Extrinsic motivation 

Contrary to popular belief, it is about taking action to gain external rewards. The source of external 

motivation comes from the individual's environment. Additional job benefits, higher wages, 

compensation, and job promotion are some of the rewards that lead to external motivation. (Kendra 

Cherry, 2021) External motivation is money and oral reward negotiated without a person; on the 

other hand, internal motivation is linked internally to a person. A person can have a deep motivation 

to do work if there is no apparent reward for the work done without the work itself or the feelings 

that come out of work. Amabile (1993) states that employees can have internal or external 

motivation. Internal and external motivations work differently for people. Vroom (1964) points out 

that some employees focus on internal outcomes while others focus on external outcomes. 

https://www.linkedin.com/pulse/business-application-maslows-hierarchy-needs-suzy-jurist
https://www.linkedin.com/pulse/business-application-maslows-hierarchy-needs-suzy-jurist


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According to Deci (2005), people with high internal motivation prefer challenging mental activities 

and can control their behavior. Therefore, rewarding and setting external goals or deadlines will not 

do them any less unless they are also high on external motivation. For highly motivated employees, 

emphasis can be placed on the type of work involved and the promotion of personal goals and 

deadlines. Almas (2017) argue that introverts are highly recommended externally, and extraverts 

are highly recommended. However, not only do people seem to have different motives, but internal 

and external motivation also affects each other.  

Employees work for jobs to get external rewards, but instead, they need an inner sense of fun that 

comes from the jobs themselves. It can be seen as a functional force without external stimuli. 

According to Almas (2017), people are motivated when they seek happiness, interest, curiosity, 

self-expression, or personal challenges in the workplace. 

2.2.2 Relationships between Internal and External Motives 

The difference between intrinsic and extrinsic motivation is clear, but researchers argue that 

intrinsic and isolation also impact each other. Almas (2017) states that external influences can 

reduce internal motivations in some cases. He says automatic money management reduces internal 

motivations. Nevertheless, if money is still misused, this will not happen. Amabile (1993) responds 

to this argument by saying that external motives may contradict internal intentions, but that may 

have a cooling effect. Satisfaction and performance. Furthermore, in his research, internal and 

external systems may motivate employees to work, but internal and external motivations can 

significantly affect employees. In short, employees may have an internal or external interest in 

performing a particular task (Amabile, 1993) and may reinforce their external and internal 

motivations. However, in some cases, external influences can weaken the inside. In addition, 

researchers say that not everyone has the same interests, some employees are highly motivated 

internally, and some are highly motivated externally.  

Motivation is a well-studied topic. The earliest work was done by the founders of their work, 

Maslow (1943) and Herzberg (1959). Many definitions have been created. Herzberg's workplace 

motivation is to do it because it seeks to perform work-related behaviors (Herzberg, 1959). There 

is some variation on the importance of a particular factor. However, motivation is an individual 

process that is defined as purposeful and multifaceted, and the purpose of motivating the idea is to 

predict behavior. There is consensus. External inspiration is also described. People are deeply 

moved when they seek happiness, interest, satisfaction, pleasure, curiosity, self-expression, or 

personal challenges in the workplace. There is also an external purpose in the workplace to achieve 

a purpose other than the work itself (Amabile, 1993). Staff mobilization requires both internal and 

external motivation (Herzberg, 1959). According to Herzberg (1959), managers need to work on 

all aspects of hygiene and motivation to motivate their employees.  

3.0 Employee Motivation, Performance and Organizational Performance  

3.1 Performance of Employees 

Effective management is an essential tool for motivating employees to perform well. However, it 

is not a sufficient condition for effective management. Ferreira, Aldonio, Otley, and David (2009) 

state that the most critical issue in any performance management system is how critical it is and 

how dedicated it is by management and staff. Performance management is about completeness, 

harmonization, and development to build value from the customer due to economic value building 



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to shareholders and owners. The expansion of performance management is enormous, so 

performance management should be considered within the business as a tool to enhance employees 

'motivation for high performance. Effective performance management requires an in-depth 

understanding of the working environment. Taking on responsibilities and projects is part of a 

company or organizational job description. It is the basis for evaluating how to improve 

performance when knowing the skills required to do the job. Businesses can evaluate and improve 

their performance based on their knowledge. Additionally, there is a disconnect between employee 

performance appraisals and opportunities to improve employee performance. In addition, there is 

no link to evaluate an employee's work based on the performance of other partners in the same job 

description. 

3.2 Organizational Performance 

According to Otley (1999), an organization's performance depends on other factors such as 

employee performance and the nature of the organization. The difference between organizational 

performance and professionalism is clear. An effective organization has achieved its goals 

successfully. In other words, an organization uses sound systems, and its performance results from 

an employee's work. In addition, the high performance of the work is the skill of the work itself, 

and the worker must be able to produce better results and be more productive (Hunter, 1986). An 

organization needs good employee performance because the success of an organization depends on 

employee awareness, innovation, and commitment. Efficiency and increased productivity are also 

important in stabilizing the economy. With improved living conditions, higher wages, and increased 

availability of consumer goods. Therefore, he also points out that performance surveys for each 

employee are essential to the whole community. 

Performance of employees and the ability of employees to do their job are related. Generally, 

however, productivity is associated with terms that focus on production (e.g., profit and sales), and 

performance is associated with efficiency or recognition-oriented goals (e.g., oversight and 

achievement of objectives. In any organization, decisions to develop, retain, or dismiss employees 

must be consistent. These decisions are made through relative selection and support, and personal 

relationships within the organization profoundly affect employee promotions and dismissal 

decisions. Relationships are still meaningful today, but many companies constantly evaluate 

employee performance to be more productive and profitable. According to Almas (2017), 

standardized approaches are not available, but the performance of most employees can be measured.  

Performance measures are defined as "standard measurements of results and efficiency of a service 

or program." It means a continuous measure of progress towards achieving accurate results (this is 

an integral part of the effort towards results). The customization process maximizes customer 

benefits for services and programs and reduces negative costs. If performance is measured by 

mistake or not, the user may be given incorrect information and make poor decisions. Therefore, 

the adage "garbage coming out of the trash" enhances credibility (Hatry, 2006). Performance 

measures provide general information that can be used for decision-making purposes for managers 

and employees at all levels. The power measurement system can be a dashboard. This instrument 

panel is used for strategic implementation, planning, development, and transformation. 

 The organization's standard operating standards are based on financial and accounting. Currently, 

it is switching to the latest multi-functional system. First, financial indicators have been used to 

manage the company's financial resources to support organizational policies. Second, financial 



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performance metrics act as a barometer to show results related to key business objectives. Third, 

they also serve as motivators for future operations. Moreover, they were viewed as windows of the 

past as factors influencing future success. Despite the advantages of financial measures and 

accounting measures in performance testing, they were re-operated on a cost basis provides little 

motivation. Traditional inadequate capital is primarily based on overall performance levels and has 

further enhanced the appearance of the most appropriate metrics to reach the overall performance 

level. Financial professionals have taken such steps that preferences are based mainly on total value, 

spot prices, and average scorecards. It has been gratefully accepted and attracted a great deal of 

interest in international trade—economic income due to widely published designs in 1998, 2000, 

and 2002. A function-based primarily on total cost is a way to capture sports, processes, products, 

and business services. The ABC highlights the regions of purposeful drawing managers with a 

timely movement that can positively impact revenue or value. Managers should try to reassemble 

the product, which means sales costs create greater resource demand and produce less. 

Costs towards the most aggressive categories with an excessive level of services and products that 

support a decline in sales reduce global resources to reduce the number of times a sport is spent to 

reap the same results or reduce re-purchases and provide the current combination of sales and 

customers. It will promote production software and continuous development to improve quality, 

reduce set-up time and improve production facility facilities. When targeted designs are placed, 

managers see that they have achieved a point where they can achieve an equitable result with a 

small group of participating staff or small equipment. They can reduce spending on a single source. 

The agency will conduct a recreational activity based primarily on total cost calculations to 

determine the actual value associated with each product and supplier produced by the agency. 

Instead of taking advantage of the limited opportunities to charge, ABC binds to disclose the reason 

and improve the relationship between costs and sport to fairly allocate charges. ABC can make 

precious regions in line with unique sales units, donations, or customers. The divisive price that 

does not load prices is focused on caring for the strongest ones. However, ABC is more expensive 

to set up and maintain than the standard cost system. For example, an ABC system with 25 cost 

pools is used in 100 different products. ABC is used to develop more expensive products. Total 

costs include allocating fixed costs (depreciation and administrative salaries). The cost per unit 

provided by the ABC system does not include the growing costs required for production; additional 

information is required for decisions (Khan & Jain, 2009). 

An investment is an asset or an asset that we purchase in the hope that it will generate income or 

inform us in the future. The difference between what we put in and what we receive is in return. 

Therefore, companies invest in a return on investment. The return of a financial asset includes both 

the profits of the companies when they eventually sell to another person when they are mature and 

the revenue earned between the purchase and sale. Reimbursement is the return on current 

investment ROI = (Profit from the investment - Investment costs). With so much investment 

initially, we cannot be sure of the value of income and the profits we will make. The range of tools 

we can invest in provides a deviant level of return for uncertainty (Feibel, 2003). The most 

convincing way to evaluate HRM is to compare the cost of HRM programs with the benefits, In 

many cases, the cost of HRM systems can be improved or monitored. Although confused, 

sometimes there are ways to allocate certain costs, and the total program costs can usually be 

expressed (Feibel, 2003). However, if there is a small investment in the ROI, it may result in very 

short-term gains but a long-term decline, as the ROI ignores events outside the current period. ROI 



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can be determined by past investments that have not been fully reduced, thus undermining the 

impact of current actions. In addition, ROI is not a reliable rate of reduced cash flow rate, both in 

single and complete corporate projects.  

A balanced scorecard is planning system businesses use to direct business operations and company 

vision and strategies and monitor an organization's performance. The balanced scorecard usually 

includes customer service performance measurements, innovation and learning, and internal 

processes. Practical steps for learning and innovation often revolve around the company's research 

and development efforts. For example, the number of new products developed during the year and 

their time to reach the market is practical innovations steps. Learning measures can include the 

number of staff training sessions and the number of employees trained in various skills. Customer 

service action measures include the number of customer complaints and the number of repeat 

customers. A customer survey can also measure customer satisfaction in a company compared to 

competitors. The performance measures of internal processes take into account the length of time 

it takes to produce a product. The amount of waste is a measure of the efficiency of the company's 

production processes. Customer Return Value measures the fulfillment of production orders and 

custom orders. Financial measures include revenue from performance, investment interest rate, and 

residual interest (Warren et al., 2008). 

4.0 Employee Compensation Program 

The Employee Compensation Plan contains policies, procedures, and procedures built into the 

organization that reward employees for sharing their contributions, skills, abilities, and market 

value. The Employee Compensation System provides benefits in procedures, procedures, 

frameworks, and procedures that provide and maintain appropriate forms and levels of 

remuneration, benefits, and other forms of compensation. Compensation schemes include monetary 

compensation (fixed and flexible compensation) and employee benefits, including the total amount 

of compensation. The award system to support staff re-employment is an appropriate mechanism 

but is still a practical management approach. The move to bring financial and non-financial rewards 

to individuals and groups that develop new ideas is crucial for organizations. However, it is equally 

important to avoid punishing intelligence when it does not succeed in establishing the most 

successful. 

Properly distributed, an award-winning program can create an attractive atmosphere for an 

organization. Managers in this province should consider that potential candidates can be used for 

various companies. The effective compensation plan aims to increase competition with other 

companies seeking specific skills and abilities particularly prominent in future candidates. 

According to Warren, Carl, James Duchac, and Jonathan (2008), business leaders can create a 

reward system to reduce absenteeism by combining bonuses with travel rates. Financial Rewards 

Incentive management rewards can be famous for helping employees complete a project or task. 

The number of companies distributing cash prizes is increasing, but only 7% use revenues. Big 

companies use financial compensation schemes to motivate their employees. 

5.0 Conclusion 

The first conclusion reached is that employees can be encouraged to do good work in the 

organization, which is an essential management function. There seems to be a self-serving cycle 

between employee performance, satisfaction, and motivation. Employees get better performance, 



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which creates inner satisfaction, and employees are encouraged to continue working in the future. 

It is said that high performance can be achieved if an organization meets specific performance 

criteria. Second, it has been found that employees are encouraged to perform both internally and 

externally at the same time very efficiently. Many activities are promoted internally and externally 

(Amabile, 1993). In conclusion, it can be argued that internal factors may or may not be a factor in 

motivating employees for longer than external factors. Many researchers argue that enhancing 

external factors alone does not improve performance. Research shows that in order to motivate 

employees, organizations need to value five aspects of work. 

On the other hand, organizations need to commit to their managers, colleagues, salaries, and 

employment security to motivate outside workers. The supervisor needs to provide all aspects of 

the job, as this provides a way for maximum performance of employees. However, it is necessary 

to argue that this relationship does not end. The employee is not happy with how he or she is 

working as usual, or one of the three levels of mental functioning may no longer be available. 

Therefore, organizations should ensure that their profits are constantly changing. It is now possible 

to argue that there are many ways to improve the performance of employees within an organization 

(e.g., diversity, leadership). Therefore, managers should not focus only on motivation. It can be 

concluded that the most important factors can significantly improve the workforce's productivity. 

6.0 Recommendations 

 Employee motivation is not easy to measure. However, there are three common ways that 

companies can use: First, we can use performance evaluation. Not only can this help you motivate 

your employees, but it can also be a good indicator. Poor performance reviews can be a strong 

indicator of low employee motivation and engagement. Once poor performance has been identified, 

employers should work to identify the cause of low motivation levels. The second important 

consideration will be employee motivation and engagement surveys. Surveys are one of the most 

popular ways to measure employee motivation. However, employers should be very careful when 

choosing survey questions. It is extremely important that employee engagement surveys be 

anonymous. In addition, it is good to use a combination of different types of questions such as open-

ended and scaled questions. Finally, there is customer satisfaction. It usually depends on employee 

satisfaction. In addition, satisfied employees are more motivated and committed employees. 

Therefore, measuring customer satisfaction helps determine the level of employee motivation. It is 

especially true when employees are in direct contact with customers. This technique is commonly 

used by salespeople and has been successful with customers. To motivate your employees, you 

must truly understand what motivates them. According to Maslow's Hierarchy of Needs theory, 

motivation results from a person's efforts to meet five basic needs: physiological, safety, social, 

self-esteem, and self-actualization. These needs exist in a hierarchical order. That is, lower-level 

needs must be met before higher-level needs are met. This theory also helps us understand employee 

motivation in the workplace. Applying this theory to understand better employee motivation can 

help companies design strategies that use financial incentives more effectively. 

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Vol.6, Issue 2, pp 18 - 29, 2022                                                                  www.ajpojournals.org 
                                                                                                                                 

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