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Impact of Motivation on Employees Performance in Pakistan

Author

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  • Danish Ahmed Siddiqui
  • Noor ul Rida

Abstract

This paper aims to study the effects of intrinsic and extrinsic motivation on employee’s performance. Employees obviously work for the organization for monetary benefits but these monetary compensations and rewards are not the sole requirement of all employees. Some of them need salary increment and bonuses to get themselves motivated while others need recognition and non-monetary benefits. The study was aimed to discuss how the extrinsic and intrinsic motivation can hinder or increase the motivation level of employees. Several motivational theories have also been discussed in this paper that helps in better understanding of why and how employees are motivated. Intrinsic and extrinsic motivation is said to have significant impact on employee’s performance. Our study examined 60 female and 143 male respondents (n=203) of banking sector to study the effects of intrinsic and extrinsic motivation on employee’s performance. There was a positive relationship of intrinsic and extrinsic motivation of employees with their performance. With the increase in intrinsic and extrinsic motivation, employee’s performance tends to increase as well. We also have discussed some of the future directions and recommendations so that it can help future researchers to study the other constructs that can affect employee’s performance.

Suggested Citation

  • Danish Ahmed Siddiqui & Noor ul Rida, 2019. "Impact of Motivation on Employees Performance in Pakistan," Business Management and Strategy, Macrothink Institute, vol. 10(1), pages 1-22, December.
    • Handle: RePEc:mth:bmsmti:v:10:y:2019:i:1:p:1-22
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    References listed on IDEAS

    as
    1. Tsai, Philip Cheng-Fei & Yen, Yu-Fang & Huang, Liang-Chih & Huang, Ing-Chung, 2007. "A study on motivating employees' learning commitment in the post-downsizing era: Job satisfaction perspective," Journal of World Business, Elsevier, vol. 42(2), pages 157-169, June.
    2. Kuvaas, Bård & Buch, Robert & Weibel, Antoinette & Dysvik, Anders & Nerstad, Christina G.L., 2017. "Do intrinsic and extrinsic motivation relate differently to employee outcomes?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 244-258.
    3. Samuel Bowles & Sandra Polania-Reyes, 2012. "Economic Incentives and Social Preferences: Substitutes or Complements?," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 368-425, June.
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    Cited by:

    1. Uresha Saif & Danish Ahmed Siddiqui, 2019. "Tangible Rewards or Intangible Rewards - Which Play Most Significant Role in Increasing Job-Hopping Behavior in Generation Y Employees in Pakistan?," International Journal of Human Resource Studies, Macrothink Institute, vol. 9(4), pages 275-305, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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