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RESEARCH DRAFT PROPOSAL

THE IMPACT OF MOTIVATION ON EMPLOYEE LOYALTY

SUBMITTED BY,

KARUNAPRABHA T GEORGE

I MSW HRDM
INTRODUCTION
Employee loyalty has long been a concern of employers because of its link to behaviours such
as attendance, turnover and organizational citizenship (Schalk & Freese, 1997). The level of
motivation and commitment an employee exhibits towards one’s organization varies from
employee to employee. The outlook one has about their employer, their work, their peers,
salary, recognition or promotion potential can greatly impact on employee’s motivation and
loyalty. The committed and motivated workforce belongs among key factors affecting
company success. The employee motivation depends on stimuli, which are present in the
individual’s environment or used by other people in order to reach desired change in
individuals behaviour. The way of motivation became especially important in industrial
companies in recent years, because of economic decline. Well-motivated employees willingly
qualitatively and timely perform the task conferred. In consideration of the aforementioned
prospective factors, the focus of this research will be on motivation and its impact on employee
loyalty and commitment.
STATEMENT OF THE PROBLEM
Workplace motivation is a widespread topic that everyone can take a stance on. Whether it is
good, bad, positive or negative each factor that either aids in or helps diminish employee
motivation can greatly impact one’s loyalty and commitment. In order to prevent qualified,
committed and talented employers from leaving, employers need to consistently recruit and
retain. In order to recruit and retain good employees, employers need to reassess their current
employee. It is therefore necessary for the manager to spot, what can motivate every individual
and use those motives and motivations for the team or in favour of the company. These research
addresses about the factors affecting employee motivation and its impact on employee loyalty.
SCOPE OF THE STUDY
The scope of study is determine the impact of motivation on employee loyalty. Employee
loyalty and their motivation becomes one of the major challenge currently facing most
companies in the present world. This study could help the employers to get an understanding
of the factors that helps in motivation and how it contribute to the employee loyalty. This study
help the employers in the organisation to retain employee’s in the organisation.
AIM
The aim of the study is to determine the impact of motivation on employee loyalty
OBJECTIVE OF THE STUDY
To examine the factors affecting employee motivation in the organisation
Identify the level of impact of motivation on employee loyalty
To analyse the existing level of loyalty among employees in the organization
LITERATURE REVIEW
The concept of loyalty has passed through different evolutionary stages. At one time, it meant
living up to the end of the employee-employer bargain. One should be loyal to the company
and the company would be loyal to their employee. Rampant downsizing, corporate
restructuring and poorly managed organizational change have resulted in a broken trust bond
with employees and therefore less employee loyalty. This traditional “trust bond” relationship
was based on the premise that an employee’s loyalty could be measured by the amount of time
he or she spent on and in the job. Long hours and long service meant a loyal employee-one
who was willing to make personal sacrifices for the betterment of the organization. It won’t
come as a surprise to know that this model of employee loyalty has dramatically changed.
Today, employee loyalty means that I give my full commitment to the job- while I’m on the
job. Progressive leaders do not equate loyalty with longevity and hold the view that it is quite
possible that someone who has been with you for 20 months can make a greater contribution
than an employee who has been employed by the organization for 20 years.
A study conducted by (Steers, 1977) define employee loyalty as the relative strength of
individuals identification with the involvement in a particular organization. Loyalty is viewed
as an employee’s positive connection to the organization and a willingness to contribute toward
the accomplishment of organizational goals (Bou and Beltran, 2005).
Motivation is one of the top priorities which organisations should successfully deal with in
order to tap on human capital and retain skilled and talented employees (Bennett, 2000)
Several researchers have proposed a positive relationship between motivation and loyalty or
organizational commitment (i.e. Orphen, 1997: Mak and Sockel, 2001; Karatepe and Uludag,
2007). Mak and Sockel (2001) empirically found that motivation has an impact on retention of
IS workers and loyalty as one of its indicators. Furthermore, conceptual reasoning as well as
empirical evidence has indicated that intrinsically motivated employees are inclined to be more
connected and loyal to the organisation ( Miller 2002; Mathieu and Zajac, 1990; Eby et al.,
1999; Low wt al., 2001; Karatepe and Uludag, 2007; Miao et al., 2007). Thus high committed
individuals are more likely to employ actions and behaviours supporting the achievement of
firm’s strategic goals and shared purposes due to intrinsic rather than extrinsic motivations (
Porter et al., 1974)

RATIONALE OF THE STUDY


The rationale behind the study was to conceptualise factors that determine employee
motivation and its contribution to employee loyalty. Employee loyalty and highly motivated
employee have attracted much attention due to expectation that motivated and loyal employee
will act in the best interest of an organisation.
SIGNIFICANCE OF THE STUDY
In this tight labour market, keeping good employees and developing employee loyalty becomes
increasingly important and a continuing challenge. Employers will receive insight and
feedback on how an employee feels and what an employer can do to employees’ motivation.
The information gathered from this study will provide employers with vital information about
the factors that contribute employees motivation to remain loyal and committed to their
company, organization, association, job or position.
METHDOLOGY
Research design
Quantitative research design will be used to explore how motivation might impact the
employee loyalty. By utilizing questionnaire with close ended questions I will seek to
understand the factors affecting motivation and how its contribute to employee loyalty
Population
The study population consists of employees in KNK Construction company
SAMPE
For this research study, a sample size of 100 employees from the KNK Construction company,
Bangalore is chosen
UNIT OF ANALYSIS
The unit of analysis for this research is an individual as one individual will fill one
questionnaire and these one respondent questionnaire will help in knowing the views of each
person
Tools for data collection
A structured questionnaire will be used as the tool for data collection in the study.
Likert Scale
Likert Scale is a psychometric scale that is commonly involved in research that employs in
questionnaires. It is a rating scale used in the survey model.
Each item was scored on a five- point Likert scale.
Methods of data collection
The collection of data for the study is through two sources
1. Primary sources: the questionnaire will be distributed to the study of sample size
2. Secondary sources where will refer to books and scientific literature on the subject of
study.
Data collection period
The period of data collection will be from January 2019 to February 2019
Tools and techniques of data analysis
The filled in questionnaires will be scored and interpreted according to the norms. The SPSS
tool will be used for analysing purpose

THEORETICAL DEFINITION
MOTIVATION

Motivation has been defined as: the psychological process that gives behavior
purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive
manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an
internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve
(Bedeian, 1993). For this paper, motivation is operationally defined as the inner
force that drives individuals to accomplish personal and organizational goals.
Employee loyalty
According to Kaisiarz (2011), the term loyalty is referred to employees who are committed to
the success of the organization and believe that working for this organization is their best
option.
Bidwell(2011) divides the term loyalty into two parts. “The first piece is having the employer’s
best interest at heart. The second piece is when an employee remains with the same employer
rather than moving on”
Employee loyalty is an organisational citizenship behaviour that reflects allegiance to the
organisation through the promotion of its interests and image to outsiders (Bettencourt,
Gwinner, & Meuter, 2001)
OPERATIONAL DEFINITION
Employee loyalty
Employee loyalty can be understood as an effective commitment among employee. An
affective commitment means as an employee’s desire to continue a relationship with a specific
employer or organisation because of the enjoyment of the relationship for its own sake, apart
from the instrumental worth and because this employee experience a sense of loyalaty and
belongingness.
MOTIVATION
Employee motivation is the level of energy, commitment, and creativity that a company's
workers bring to their jobs.

Inclusion criteria
Employees working in KNK Construction Company
Employees who can comprehend with English language
Exclusion criteria
Employees working in other organisation
Employees who cannot understand English language
TIMELINE
The timeline for conducting the research will be for 2 months (Jan 2019 – Feb 2019)

REFERENCE
Trivellas, P., Kakkos, N., & Reklitis, P. (2010). Investigating the impact of motivation on loyalty and
performance intentions in the Greek banking sector, 16.

Smith-Marquita-Final-Version-4_25_15.pdf. (n.d.). Retrieved from

https://www.trinitydc.edu/bgs/files/2015/01/Smith-Marquita-Final-Version-4_25_15.pdf

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