Motivational packages and its effects on employee’s performance: A case of Ghanaian organizations
The study was to ascertain motivational packages and their effects on the performance of employees in selected organizations in Ghana. Specifically, the study sought to ascertain the motivational packages used by organizations to motivate their employees at the workplace, investigate the impacts of these motivational packages on the performance of employees at the workplace and make recommendations on the best and effective motivational packages to be used in organizations. The study made use of descriptive survey as its key research design. A population of two hundred respondents out of which a sample size of one hundred and twenty was selected using the non-probability sampling method, specifically, the purposive sampling technique to select the organizations within the targeted area of study. Also, self-designed questionnaire was used as a research instrument and the data was collected personally and analysed using frequencies and percentages.
The study revealed that there are a number of motivational packages used by organizations to motivate their employees; these packages include (money) increment in salary, recognition, training and development, effective communication and bonuses. All the packages were seen to have influence on the performance of the employees but bonuses was seen to have the greatest influence and employees see it to be more important and more beneficial to them. It was clearly seen that, the motivational packages influences performance in many ways. These ways include: making them complete reports on time, meeting project deadlines, contributing towards projects, meeting established performance standards, exhibiting unique skills, completing task through a manner not as before, confident in making well and educated decisions on their own, solving difficult decisions on the own, arriving for work on time and also helps them stay on the job.
Keywords: organization, employees, motivation, motivational packages, performance, productivity.
Motivation is important to understand because it describes the reasons that drive one’s actions towards the achievement of a goal (Grant,2008). Luthans (1992) defined motivaton a mixture of needs, drives and incentives. Motivation is defined as the process that begins with psychological deficiency or need that activates behaviour or a drive aimed at a goal or incentive”.Huczynski and Buchanan (2007) asserted that motivation is a combination of goals towards which human behaviour is directed; the process through which those goals are pursued and achieved and the social factors involved”. Putting the right employees in the right positions depending on their skills and amount of work they can generate will enhance their ability to use their skills and abilities more frequently which will lead them to concentrate on the business missions and objectives (Yongsun, Barbara, and Christy, 2002).
Anne (1994) defined motivation as a term that refers to a process that draws, controls, and sustains certain behaviors to ensure high performance. Motivation refers to the psychological processes that direct, energize, and sustain action, or can also be better understood as one’s inner desire to make an effort (Grant, 2008, p. 48). Understanding motivation is basic to explain both individual and organisation behavior. ( Finck, 1998) stated that employers must recognize that the human factor is becoming more and more important for the organisation to survive, and that business improvement will only be achieved when employees are excited and motivated by their work. Watson (1994) also asserted that business has come to realize that motivated and satisfied employees can deliver powerfully to the bottom line. Since employee performance is a combined function between ability and motivation, one of management’s primary tasks, therefore, is to motivate employees to perform to the best of their performance and ability (Moorhead & Griffin, 1998).
Pinder (2008) referred that, “Work motivation is a set of energetic forces that originate both within as well as beyond an individual?s being, to initiate work related behavior, and to determine its form, direction, intensity and duration.” According to L. Deckers (2010), Motivation is a person?s internal disposition to be concerned with and approach positive incentives and avoid negative incentives. To further this, an incentive is the anticipated reward or aversive event available in the environment. Allscheid & Cellar (1996) stated that in order to be good in anything at the workplace, the only thing required is motivation.
The big question is whether the motivation really has an influence on employee’s performance or not. Research shows that indeed there is a relationship between motivation and performance Deci ; Gagne, 2005.
This thereby arouses a lot of important academic thoughts within this subject area. Many research literatures from scholars have warranted solving this fascinating academic domain regarding which motivation packages can enhance performance of employees in the organization. Also many organisations have failed along the line in their quest find the best motivational package to improve the performance of their employees in Ghana and around the world. This therefore motivated us to investigate on the topic “motivational packages and its effects on employee performance in the organization”. The significance of this study cannot be over-emphasized. The study is an examination of the motivation practices in organisations, and reveals the extent to which such practices are carried out, and how these packages influence the employee’s performance. This research work is useful to the government, owners of organisations as well as other scholars who will find this paper interesting. The main purpose of this study is to find out the motivation packages and its effects on employees performance. This study is based on the following objectives i. To find out motivational packages organizations use as a mean to motivate their employees. ii. Examine the impact of these motivational packages on employee’s performance at the workplace. In view of the research objectives, the following questions can be asked: i. What packages do organizations use to motivate their employees at the workplace? ii. What are the impacts of these packages of motivation on the performance of employees at the workplace?
There are number of views of literary personalities relating to motivation and motivational theories. Content theories give us an insight regarding individual needs and the things that are necessary for motivation work. Many theories have been propounded regarding the motivation of employees. All the propounded theories are very useful but this paper will make use of three of these theories. The selection of these theories was based on the fact that they provide an in-depth knowledge and understanding about individual and what will motivate the individual at a particular point in time. These are explained below:
Maslow’s Needs Hierarchy;
Frederick Hertzberg – Hygiene Theory;
Maslow’s Hierarchy of Needs Theory;
Maslow’s hierarchy of needs is a theory in psychology recommended by Abraham Maslow in his 1943 research paper “A Theory of Human Motivation” in Psychological Review. Maslow extended the idea to embrace his observations the innate curiosity of humans. His theories were almost equivalent to other theories of human developmental psychology. Maslow used “physiological,” “safety,” “belonging and love,” “esteem,” and “self-actualization” to describe the pattern through which human motivations generally move. The goal of Maslow’s Theory is to attain the fifth level or stage: self-actualization needs.
Maslow’s hierarchy of human needs
Physiological needs are the physical necessities for human survival. If these necessities are not met, the individual can’t function well and will eventually fail. Physiological needs are believed to be the most essential; they must be met first. This is the first and elementary need on the hierarchy of needs. Without them, the other needs can’t be met. Physiological needs include: water, clothing, shelter and food
Once an individual’s physiological needs are reasonably met, their safety needs take primacy and control behavior. This safety needs evident themselves in many ways such as a preference for job security, grievance procedures for protecting the individual from autonomous authority, savings accounts, insurance policies, etc. Safety and security needs are concerned with keeping us harmless. These include job security, shelter, health, and safe environments. If a person does not feel secured in an environment, he/she will seek to find safety before attempting to meet any other higher level of need.
After the physiological and safety needs are satisfied, the next level of the human needs is interpersonal and it involves the feelings of belongingness. Social belonging needs involves: intimacy, friendships and family.
Esteem needs are also called status needs or ego needs.it is concerned with getting recognition, status and respect from others. All individuals have a necessity to be respected; this includes the necessity to have self-respect and self-esteem. Esteem needs present the typical individual with the desire to be valued and accepted by others.
This level of need discusses a person’s full potential and how to realize that potential. Maslow describes this level as the need to achieve everything that one can, to become the best that one can be. Human beings may perceive or focus on this need very specifically.
The Achievement-Motivation Theory was developed by Atkinson, McClelland and Veroff and focuses on aspects of personality traits and presents three forms of motivation or needs in work situations. The three forms of needs of the Achievement-Motivation Theory are achievement, power, and affiliation.
Need for Achievement refers to an individual’s wish for important execution, mastering of skill, control of high standards. Is related to the difficulty of work people decide to undertake. Individuals with low need for achievement may choose very easy task such that a failure will not be humiliating. Those with high need for achievement tend to choose very difficult task feeling that they are challenging but within reach.
Need for Power stalks from an individual’s desire to influence, teach or encourage others. Individuals in this category enjoy work and place a high value on discipline. A person motivated by this need enjoys status recognition, winning argument, competition and influencing others.
Individuals who have a Need for Affiliation work well in areas with public interactions like customer service or client interaction position. They prefer spending time creating and maintaining social relationships, they enjoy being part of groups and have desire to feel loved and accepted.
Hygiene Theory: His theory is similar to that of Abraham Maslow though more practical. He has broken motivation into two; the hygiene/ dissatisfier and the motivators/satisfier. He identifies the lower level needs (Security need and the social needs) as Hygiene factors and the higher level needs (ego/esteem needs and the self-actualization needs) as motivators. Hygiene factors are those absence of which cause dissatisfaction and indifference when present e.g. salary, working condition, inter-personal relation supervision company policy and administration. Motivators are those the absence of which does not demotivate workers while the presence really motivates them; example Responsibility, career growth and advancement, achievement recognition and job enrichment. This is depicted below:
Herzberg’s two factor theory
Motivational packages and their effect on employee satisfaction and performance.Regardless of the multiplicity of number of theories studied by researchers, they have come to stress the importance of different motivation approaches toward employee’s performance. Motivation packages have been defined as tools and techniques which can be used to motivate employees. Some of the packages are:Recognition
It is a useful positive tool where usually people get recognized by their work and job done and based on that they receive recognition. Atkinson, McClelland and Veroff stated that employees work harder when they are recognized and appreciated for their effort toward the work given them. When employees get recognized and appreciated, they do their best to prove their skills, talents and abilities they have. Furthermore, recognizing employees is also considered a way of communication that strengthens and rewards the outcomes people create. For that reason, leaders should develop recognition system which is powerful for both employees and organization Hislop (2003). Employees who feel appreciated and recognized are more positive about themselves and their abilities to contribute. It also guarantees positive, productive and innovative organization environment. Saying thank you as recognition will make the business successful Khodov(2003).
salariesMost of the researches and studies have proved that money and payments are important to employees relative to other motivators as earning a lot of money is an advantage for pushing toward motivation. It clarifies that when employees are satisfied financially, they are motivated at work and work hard. An increase in financial aspects like payments, allowances, salaries and bonuses affect employee’s productivity positively as a result of a study which has been done by Conrad (2015), they have concluded that increasing of individual pay increases productivity rate from 9% to 17%. So, it is obvious that when employees are motivated and satisfied, their performance increases so as productivity. Also, Pulakos (2005), did an analysis on motivation programs and productivity, they found that financial aspects and payments are the largest effect on employee’s productivity. Also, Cokins(2006) stated that paying and salary increments for individuals from the organizations, increases the productivity.
Furthermore, for employees to feel safe in terms of work, they prefer getting good salaries and allowances rather than receiving appreciation Cokins (2006)
On the other hand, when employees get high performance rate and a very good appraisal, they appear to be sensitive to whether their performance will be rewarded by money and pay increase or not Lin (2007). So, money concerns are always there and it is important for employees to work and give.
Bonus Association administration can easily increase the work performance of the workforces with the help of additional benefit. We can say that additional benefit is the above salary gives the employee’s according to their performance. Bonus is an important tool for increasing the productivity (Agwu, 2013).
Communication does not only mean talking to your team but also listening to them. It is important to ensure their understanding of companies? objectives and their individual job roles but it is equally important to show them the importance of their feedback for the achievement of targets and standards (Robbins, 1999; Daniel, 2001).
Training and Development
People can be taught to become more motivated by showing them how to deconstruct tasks and challenges, and how to feel less intimidated by their job roles. Demonstrating to them how to cope in the workplace can lead directly to improved motivation (Daniel, 2001).
Upon reviewing the above literature of the various scholars, there is the urgent need to find the impact of these motivational packages (salaries, recognition, bonuses, enhanced communication and training ; development) on employee’s performance in the selected organisations in order to make a well informed decision.
Performance of the employee can be considered as the job related activities expected of a worker and how those activities were executed. According to the results of the study conducted by Yang (2008) on individual performance showed that performance of the individuals cannot be verified. Similarly he asserts that organizations can use direct bonuses and rewards based on individual performance if employee performance is noticeable (Yang, 2008). In line with Yang (2008), investigation on employee performance and revealed that acknowledgment and recognition and reward of performance of employees direct the discrimination between employee productivity. Morale and productivity of employees is highly influenced by the effectiveness of performance of an organization and its reward management system (Yaz?c?, 2008). To satisfy customers, firms do much effort but do not pay attention to satisfying employees. But the fact is that customers would not be satisfied until and unless employees are satisfied. Because, if employees are satisfied, they will put in much effort on the work and yield good and quality output which makes the customers satisfied (Ahmad, 2012). Employee performance is actually influenced by motivation because if employees are motivated then they will do work with more effort and by which performance will ultimately improve (Azar and Shafighi, 2013)
This study involves motivational packages as independent variables. The independent variables include; salaries, recognition, bonuses, enhanced communication and training and development. Employee’s performance is therefore seen as the independent variable. This conceptual framework as well as the study hypothesis was guided by the literature reviewed.
Study hypothesisH1: Salary has a positive influence on individual performance (? ? 0.05)
H2: Recognition has a positive influence on individual performance (? ? 0.05)
H3: Bonuses has positive influence on individual performance (? ? 0.05).
H4: Enhanced communication has positive influence on individual performance (? ? 0.05).
H5: Training and development has positive influence on individual performance (? ? 0.05)
Research instrument and sample
This study made use of descriptive survey as its key research design. Descriptive survey is dedicated to the collecting of information about prevailing conditions or situations for the purpose of description and interpretation. Descriptive survey is also a process of gathering data that describe events and then organizes, tabulates, depicts, and describes the data. The use of descriptive survey as a major research design helped gain an understanding of the situation at hand and helped clarify, measure the concept, and determine the factors and relationships among the factors that have resulted in the current level of employees’ performance. This research was centered on the various levels of employees of organizations in Ghana as my target population making a total of 150. The accessible population used in this study was selected employees in five organizations in Ghana making a total of 120 respondents.
The selected employees was from all areas of the organizations, of both sexes and have been in the organization for the past two years, since they have been in the organization for quite a long time and have experienced the techniques of motivation that have effect on their performance. Based on the result from the accessible population and their characteristics, a generalization to the target population was made.
Questionnaire was used as the research instrument for collecting the needed data. Questionnaire consist of a list of questions or statements relating to the aims of the study, and the research questions to be verified and answered, to which the respondents are required to answer by writing. A questionnaire was used because it was convenient for the gathering of the data and with respect to the nature of the sample size. Other relative advantages for using this instrument included; economy of time and other expenses, uniformity of questions, and the questions was completed at the respondent’s convenience and they offered greater assurance of secrecy.
The questionnaires comprised open and close ended questions with three sections in all. These sections will included; Section A – demographic features of the respondents and the rest of the two sections each contained questions with respect to the two research questions.
Analysis, Findings and Interpretation of Results
Gender of the respondents
Source: survey data, 2018
Chart one represents the sex distribution of the respondents. Out of the 120 respondents, 55% being the majority were males whilst 45% were females. Hence the responses gathered represent more of a male view than that of females.
Age of the respondents
Source: survey data, 2018
Figure one shows the age distribution of the respondents and it clearly shows that the majority of the respondents were young adults who are eligible to give us the needed responses.
Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .557a .310 .254 .30236 .310 5.492 9 110 .000
a. Predictors: (Constant), YEARS SPENT IN THE ORGANIZATION SALARIES, RECOGNITION, BONUSES, ENHANCED COMMUNICATION AND TRAINING AND DEVELOPMENT, LEVELS IN THE ORGANIZATION, AGE
The table shows that, R value is 0.557. Therefore, this value (0.557) shows that, there is an impact of these nine variables on employee’s performance. This means, there is an associative relationship that exists between employee’s performance and the selected variables. From the table above, it can also observed that the coefficient of determination i.e. the R-square (R2) value is 0.310, which shows that 31.0% variation of the dependent variable (employee’s performance) can be explained by these nine variables. It also indicates that, the strength of associative relationship between employees’ performance and the selected nine independent variables is good.
ANOVAaModel Sum of Squares DfMean Square F Sig.
1 Regression 4.519 9 .502 5.492 .000b
Residual 10.056 110 .091 Total 14.575 119 a. Dependent Variable: PERFORMANCE
b. Predictors: (Constant YEARS SPENT IN THE ORGANIZATION SALARIES, RECOGNITION, BONUSES, ENHANCED COMMUNICATION AND TRAINING AND DEVELOPMENT, LEVELS IN THE ORGANIZATION, AGE
From the table, it was found that, the value of F-stat is 5.492 and the level of significance is 0.000 (less than 5%). This explains the fact that the overall model was reasonably fit and there was a statistically significant association between employees’ performance and the selected independent variables. Hence, it can be concluded that, there is a strong associative relationship between employees’ performance and the selected independent variables.
CoefficientsaModel Unstandardized Coefficients T Sig. 95.0% Confidence Interval for B
B Std. Error Lower Bound Upper Bound
1 (Constant) 2.870 .517 5.549 .000 1.845 3.895
SALARY .121** .050 2.422 .017 .022 .220
RECOGNITION -.177** .068 -2.587 .011 -.312 -.041
TRAINING AND DEVELOPMENT .036** .057 -.626 .533 -.149 .178
ENHANCED COMMUNICATION .078 .063 1.249 .214 -.046 .203
BONUSES .312*** .052 6.053 .000 .210 .414
LEVELS IN THE ORGANIZATION -.032 .054 -.601 .549 -.139 .075
AGE -.016 .036 -.448 .655 -.087 .055
GENDER .042 .059 .708 .481 -.075 .158
YEARS SPENT IN THE ORGANIZATION .060 .077 .770 .443 -.094 .213
*** p;0. 01?** p;0. 05?p;0. 1
In the Table, the unstandardized coefficient depicts partial change in the employees’ performance due to one unit change in each of the independent variables while other things remain constant. It was found that, the Bonuses factor is still the most influential factor for employee’s performance with the highest B value = 0.312. It also indicated that, salary, training and development, enhanced communication, gender, years spent in the organization also have positive impact on employees’ performance whereas Recognition, levels in the organization and age have negative influence on the employees’ performance.
Explanation of the model:
The partial change in the employees’ performance due to one unit change in salary is 0.121 while other things remain constant. The p value = 0.017, this means it is statistically significant at 5% level of significance (Table above). This implies that an increase in salary will lead to an increase in employees’ performance. Therefore H1 will be accepted. This is in accordance with the work of Ching (2015) who came out with the findings that, there is a significant impact of salary increment on performance.
The partial change in the employees’ performance due to one unit change in recognition is -0.177 while other things remain constant. The p value = 0.011. This means that, it is statistically significant at 5% level of significance. This means that an increase in recognition will not have an increase on performance as per the findings of this study. Therefore H2 will be rejected. Lawler (1994) also did a similar work and concluded that recognition is statistically insignificant and has an adverse relationship with performance.
Training and development
The partial change in the employees’ performance due to one unit change in training and development is -0.036 while other things remain constant and the p value = 0.533. This means that it is statistically insignificant at 5% level of significance. It was recognized that, an increase in training and development will decrease the performance of employees. Therefore H5 will be rejected. Neelam (2015) confirmed by that, most workers are not sensitive to training and development as compared to increase in salaries.
The partial change in the employees’ performance due to one unit change in enhanced communication is 0.078 while other things remain constant and the p value = 0.214. This depicts that, it is statistically insignificant at 5% level of significance. Therefore H4 will be accepted. This finding supports the finding of Shaemi(2012) who wrote a book on the effects of communication.
The partial change in the employees’ performance due to one unit change in bonus is 0.312 while other things remain constant. The p value = 0.000 means, bonus is statistically significant at 5% level of significance. Therefore H3 will be accepted. The study conducted by Hameed(2014 ) also revealed that bonuses have a positive impact on performance.
Levels in the organization
The partial change in the employees’ performance due to one unit change in levels in the organization is -0.032 while other things remain constant. The p value = 0.549 means it is statistically insignificant at 5% level of significance.
The partial change in the employees’ performance due to one unit change in age is -0.016 while other things remain constant and the p value = 0.655. This means that it is statistically insignificant at 5% level of significance.
The partial change in the employees’ performance due to one unit change in gender is 0.042 while other things remain constant and the p value (0.481) means it is statistically insignificant at 5% level of significance.
Years spent in the organization
The partial change in the employees’ performance due to one unit change in years spent in the organization is 0.60 while other things remain constant and the p value (0.443) means it is statistically insignificant at 5% level of significance.
It should be noted that, a negative coefficient for a variable (recognition, training and development, levels in the organization as well as age) indicates reverse impact on the employees’ performance in organizations. This means, recognition, levels in the organization and age will not necessarily increase employee’s performance but rather have an adverse impact on the employees’ performance as per the findings of the study.
The study was to ascertain analysis on employees’ performance in Ghana firms based on motivational packages. Specifically, the study sought to ascertain the motivational packages organizations use as a mean to motivate their employees at various levels and to examine the impact of these packages of motivation on employees’ performance in the workplace.
In order to attain these objectives, the following research questions were posed to guide the study: What packages do organizations use to motivate their workers at various levels? What are the impacts of these packages of motivation on the performance of employees at the workplace?
The study made use of the descriptive survey as its key research design. A population of two hundred respondents out of which a sample size of one hundred and twenty was selected using the non-probability sampling method, specifically, the purposive sampling technique to select the organization. Also, self –designed questionnaire was used as a research instrument and the data was collected and analyzed.
Recommendations and Contribution
In view of the findings of the research the following were recommended for any future work:
Organizations should conduct proper, independent and objective assessments of performance before any form of motivation is extended so as to make the motivational package fair. Proper reward systems should be implemented by the organizations whereby outstanding managers are publicly honored and also intensive incentives on productivity should be an important motivational package by organizations. Such findings enhances our understanding of employee motivation and provides a starting point for organisations that may see it fit to design or redesign the employees work or even the organisation as a whole. However, the organizations should intensify this system of reward with a substantive amount of money; building facilities would bring a sense of relief. Furthermore, other researchers who would want to conduct a further research should consider a broader scope of study so as to ascertain findings that can be more generalized.
LimitationsPerhaps observation could have been the most appropriate method for the data collection for this study but due to time constraint, questionnaires were used. The findings were therefore the views of the individual workers, which could differ from what was actually happening in organizations. Also, the findings were not intended to be generalized to the total population due to the small sample size. Though the findings might not represent the whole population, the results are still important in giving signals or informing people about how motivation influences individual performance at different management level.
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