1-INTRODUCTION

Employee motivation significantly influences individual performance in the

workplace. When employees are motivated, they exhibit higher levels of commitment,
engagement, and effort towards their tasks and responsibilities, ultimately leading to
improved performance outcomes.

In their seminal work, "The Effect of Employee Motivation on Job Performance: A

Study of Organizational Culture and Individual Factors," Smith et al. (2015) delve into the
intricate relationship between motivation and performance. They highlight how motivational
factors, such as recognition, autonomy, and career development opportunities, impact
individual performance within the organizational context. By understanding and addressing
these motivational factors, organizations can enhance employee satisfaction, productivity,
and overall performance.

In their research paper titled "Employee Motivation and Its Impact on Individual
Performance: A Meta-Analysis," conducted in 2018, Johnson and Smith synthesized existing
literature to explore the multifaceted relationship between motivation and performance. They
found that motivation significantly influences individual performance across various
organizational settings. By examining diverse motivational strategies and their effects on
performance outcomes, Johnson and Smith provide valuable insights for managers and
organizations seeking to enhance employee motivation and improve overall performance.

1.1 Background of the Study

Motivation is one of the most important factors affecting human behaviour.
Motivation not only affects other cognitive factor like perception and learning but also
affects total performance of an individual in organization setting. This is the reason why
managers should attach great importance to motivation in organization (Prasad, 2005).

Motivation seems to be one of the most important tools for retaining employees and
increases productivity. Organizations design motivation systems to encourage employees to
perform in the most effective way and attract potential candidates. One of many ways to
motivate employees is to give rewards and incentives for good performance (Memmott and
Growers, 2012).

Every human being has got a push behind him/her to do something, organization
with wise management should conduct research on such human behaviours as well as
effective and efficient way to achieve organization objective. In such situation motivation
becomes important as it makes better utilization of resources and workers abilities and
capabilities (Scott, 1987).

Motivation is among crucial factor towards increasing the performance so as to

achieve organization goals. Low motivation or complete lack of motivation at any
organization within SFF or across the world leads to high employees’ 2 inefficiency,
turnover, fraud, corruption, absenteeism, and indiscipline at work. Good Supervisors and
Managers maintains positive attitude by valuing employees and treating them fairly through
designing supportive environment which motivates employees. The key to create the
efficient motivation system is by answering the question on what really motivate employees
(Memmott and Growers, 2012).

The significance of employee motivation is influencing employees to behave in a

certain way, motivation can ultimately decide the success or failure of an organisation. If an
organisation knows why its employees come to work on time, stay with an organisation for
their full working lives and are productive, then the organisation may be able to assure that
all of their employees and such understanding is essential to improve productivity. This
imply that organisation success depend heavily on motivation and managers must
understand what motivate their employees to perform better (Matsei, 2008).

Motivation function is among major task that should be handled by every

organisation with better performance dreams. Motivation is a major task for every manager
in creating the will of work among subordinates. Workers in any organization need
something to push and keep him/her working for an organisation therefore an employee
should be motivated to work for an organisation, if no motivation given then the quality of
work or all work in general will be distorted (Mbogo,2013).
 1.2 Statement of the Problem

The motivation of employees is the most challenging and standout characteristics a

manager should possess. There is a growing number of cases that any organization they face
a tough time retaining employees because of the aggressive labour market of today and the
restricted opportunities available. The loss of employees is marked as a great loss of
information, experience and aptitudes which lead to a significant financial effect and cost to
an organization including the impact on the need of customers. Managers having strong
motivation techniques assist the organisation by enhancing employee retention. This study
will investigate the relation between the promotions and rewards on the motivation of
employees with the effects from the performance of employee, more specifically in the
education sector. It also will describe in what manner motivation impacts on the performance
of employees along with the good strategies of motivation for achieving organization success.

The study at SFF aims to identify organizational motivation factors for improving
employee performance and reducing absenteeism. It acknowledges managerial awareness
gaps that affect organizational performance, compounded by sector challenges like workforce
inefficiency and regulatory inconsistencies.

While motivation's impact on performance is well-studied, its applicability varies

across sectors and companies due to its subjective nature. SFF's market position underscores
the importance of employee motivation. The study will evaluate the effectiveness of
motivational initiatives, such as salary incentives and gifts, in enhancing performance and
curbing absenteeism. Overall, proactive management is crucial for addressing motivation
gaps and fostering a more engaged workforce.

1.3 Research Objective

 To identify different motivation techniques adopted in the organization.

 To analyse the effect of motivational techniques among employees.

 To find whether the workers are given incentives or other encouraging things.

 To identify which motivational factor influences the employee performances.

 To identify different type’s motivation offered at SFF.

 To find whether there is good work environment.
  To analyse the employee’s performance.
 To examine the relationship between motivation and employee performance.
 To determine challenges towards effective motivation practice at SFF.

1.4 Significance of the Study

Motivation and employee performance are influenced by various factors catering to

both physical and spiritual needs. Motivated employees are more committed to the
organization, leading to increased productivity and effectiveness. Therefore, it's crucial to
assess the impact of motivation on achieving peak efficiency. The research aims to identify
motivating factors across different divisions and their effect on employee performance.

The primary goal is to highlight the importance of employee motivation, as it directly

influences absenteeism, turnover, and performance. Key attributes of motivation include
rewards, recognition, promotions, and effective communication. Without proper
communication, organizational dynamics suffer.

The secondary objective is to raise awareness about effective motivation mechanisms

that foster enthusiasm among employees. Motivation significantly impacts employee
behaviour, and a lack thereof can lead to demotivation, even for high-performing individuals.

Ultimately, the study findings will aid in evaluating job satisfaction and motivation's
impact on performance within the bank. It will also assist managers in understanding the
intricate link between employee motivation and performance in other organizations. The
theoretical underpinnings and research data will serve as valuable resources for future studies
on the subject.

1.5 Scope of the Study

 Studying employee motivation provides insights into the factors that drive employee
engagement.
 It aids management in devising appropriate policies to enhance employee motivation.
 Assessing employee satisfaction with ventilation and cleanliness facilities offered by
the organization is crucial.
  Implementing effective motivational programs is essential for achieving
organizational goals.
 Enhancing organizational efficiency and fostering a positive organizational culture are
additional benefits of focusing on employee motivation.

2. REVIEW OF LITERATURE

Impact of Employee Motivation on Employee Performance:

Irum Shahzadi and Ayesha Javed (2014). To study factors that are influencing employee
motivation and find the effect of employee motivation on employee performance. The data
was collected based on old questionnaires and literatures. The research aims to conduct a
thorough investigation into the myriad factors affecting employee motivation and their direct
correlation with employee performance. Leveraging a combination of established
questionnaires and comprehensive literature review, the study endeavours to provide an in-
depth analysis of this crucial dynamic within organizational contexts.

Employee empowerment on employee performance:

According to Bateman and Snell (2002) empowerment is the process of sharing power with
employees, thereby enhancing their confidence in their ability to perform their jobs and their
belief that they are influential contributions to the Organization. Empowerment has been
defined by Carver sited in Vikas (2000) as an authority, in terms of encouraging and allowing
individuals to take personal responsibility for improving the way they do their jobs and
contribute to the Organizational goals. Cook and Macaulay’s (1997) defined empowerment as
a change management tool which helps organizations create an environment where every
individual can use his or her abilities and energies to satisfy the customer

Leadership on employee performance:

Leadership is very important in managerial, because with leadership, the management

process will run better and employees will be passionate about doing their job. The definition
of leadership, then the process of influencing in determining organizational goals, motivating
the behavior of subordinates in achieving the goal of influencing to improve the group and
culture. Apart from that, it also influences the interpretation of the events of his subordinates,
achieves goals, maintains cooperative relationships and group work and the cooperation of
people outside the group (Ghazali et al. 2015). Syamsul (2012: 30) says that leadership is a
way for someone to use domination and have self-confidence to influence and display high
morality to their subordinates. Meanwhile, according to Thoha (2010: 259) formulates that
leadership is an activity to influence people to be directed towards achieving organizational
goals. Based on the opinion of the experts above, leadership is an activity to influence the
behavior of others or art to influence human behavior, both individually and in groups. Here,
leadership does not have to be limited by rules of bureaucratic etiquette. Leadership does not
have to be tied up in a particular organization. But leadership can occur anywhere, as long as
someone shows their ability to influence the behavior of others and achieve certain goals
(Thoha, 2010; Iskamto & Yulihardi, 2017)

Salary and increment on employee performance:

Salary is defined as a fixed amount paid to the employees at regular intervals for their
performance and productivity in a day (Surbhi, 2015). It is also the main mechanism for the
organization to reward employees but very less exposure to how does it work in the reward
system. In order to understand how salary can change the performance of an employee, the
organization must understand their preferences in a reward system. Therefore, the salary issue
is very challenging for the managers to handle and they should work hard at communicating
with performance and financial reward connection (Lawler, 1988: 68 - 71). According to
Umar (2012), salary or wages has become important that works as an effective tool in
increasing employee performance. He also added that allowances are not influenced by
employee performance except for the salary. A previous study by Kanzunnudin (2007)
indicated that every organization must determine and decide the amount of salary of the
employees that align with the needs of their life. An effective wage strategy is expected to
contribute on the viability of the unit of work, the realization of the vision and mission, as
well as for the achievement of the targets of work Umar 2012

Organizational Culture on employee performance:

Culture has been called “the way of life for an entire society.” The culture of a group can be
defined as: “A pattern of shared basic assumptions that the group learned as it solved its
problems of external adaptation and internal integration, that has worked well enough to be
considered valid and therefore, to be taught to new members as the correct way to perceive,
think, and feel in relation to those problems” (Schein, 1990). In other words, as groups evolve
over time, they face two basic challenges: integrating individuals into an effective whole, and
adapting effectively to the external environment in order to survive. As groups find solutions
to these problems over time, they engage in a kind of collective learning that creates the set of
shared assumptions and beliefs that are called “culture.” It is the set of shared values, beliefs,
and norms that influence the way employees think, feel, and behave in the workplace
(Schein, 2011). Culture is the social glue that keeps organizations integrated and controlled
through informal, nonstructural means – shared values, beliefs, understandings and norms.
Culture in this sense contributes to the avoidance of fragmentation, conflict and tension.
Culture serves as a sense-vmaking and control-gaining mechanism that can guide and shape
attitudes and behaviors (Alvesson, 2002). It has also been described as a set of values, beliefs,
and behavior patterns that differentiate one organization from other organizations
(OrtegaParra & Sastre-Castillo, 2013). King (2012) defined organizational cultures as a
system of values that subconsciously and silently drive people to make each choice and
decision in the organization. Organizational culture includes the norms that the members of
an organization experience and describe as their work settings (Schneider et al., 2013). Such
norms shape how members behave and adapt to get results in the organization. It has been
describing as how the members of an organization interact with each other and other
stakeholders (Simoneaux & Stroud, 2014). Another successful –and perhaps more specific
definition of organizational culture has been given by Claver, et al (2001), which states that
“organizational culture is a set of values, symbols and rituals, shared by the members of a
specific firm, which describes the way things are done in an organization in order to solve
both internal management problems and those related to customers, suppliers and
environment”

Extrinsic Factors that Influence Employee Motivation:

Kalimullah et al, 2010). Extrinsic motivation, on the other hand, refers to tangible rewards
such as pay, fringe benefits, work environment, work conditions, and job security. Extrinsic
motives cannot only be satisfied by the work itself. That means pleasure comes from
something the task leads to, such as money. As according to the effects of work, as well as its
contributing factors are also of importance for the need satisfaction. As a result, work is seen
as a means to pursue other motives.

Intrinsic Factors that Influence Employee Motivation:

Matthew et al (2009). Intrinsic motivation is the desire of an individual to perform his/her
work well, in order to achieve the satisfaction of intrinsic needs. In other words, an individual
performs a task in order to achieve certain types of internal states, which he/she experiences
as intrinsic motivation relates to psychological rewards such as the recognition of a task
completed. External rewards such as food, money, praise, and so on, are not the main reason
for a person to engage in activities. Intrinsic motives can be satisfied by the work itself. In
other words, the task itself is the main source of motivation, since it provides interest,
stimulation, challenges, and opportunities for personal growth and achievement to the
individual. Intrinsically motivated behaviour is the one that is determined by an individual's
need for feeling competent and self-determining. On the one hand, a person will seek out
challenges that allow him/her to behave in ways that provide him/her with a sense of
competence and self-determination.

2.1 Research Framework

Conceptual Framework

The figure below illustrates the relationship between the independent variables and
dependent variables of the research problem. The independent variables represent motivation
factors, encompassing both extrinsic and intrinsic factors. Extrinsic factors consist of salary,
fringe benefits, free meals, accommodation, medical benefits, while intrinsic factors comprise
job satisfaction, interesting work, career achievement, promotion, recognition, and flexibility
(Hertzberg, 1960).

The dependent variable is employee performance, which includes variables such as

agreed objectives, efficiency, punctuality, employee attendance, responsibility
accomplishment, quality of work, loyalty, and employee competency/innovation (Mustafa,
2013; Miriam, 2014; Lilian et al., 2012).
 Intervening

Independent variables Variable Dependent variable

Employee empowerment

Intrinsic Factors

Leadership Employee
Satisfaction performance

Salary/ salary increment

Extrinsic factor
Organizational culture

3. RESEARCH METHODOLOGY

This chapter contains the research design, research approach, sampling techniques,
sampling size, research instrument, data collection procedures, pilot study, data analysis
tools, reliability and validity analysis.

3.1 RESEARCH DESIGN

The research design used in the study was a descriptive survey. A scientific approach
to inquiry, descriptive research entails gathering and evaluating both quantitative and
qualitative data. According to Mugenda & Mugenda (2008), the descriptive study is a method
that helps the researcher to efficiently and meaningfully condense and synthesize data. This
study's design was deemed appropriate due to the vast amount of employee data that was
gathered. Additionally, the unit of analysis consisted of employees.

3.2 RESEARCH APPROACH

The systematic investigation of phenomena through the collecting of numerical data

and the application of statistical, mathematical, or computer tools is known as quantitative
research (Lee & Slevitch, 2011). A quantitative research method works with quantifying and
analysing variables to obtain results. In order to provide answers, it entails the use and
analysis of numerical data using particular statistical approaches (Leedy & Ormrod 2001;
Williams, 2011). In this study, the quantitative approach method has been used for analysing
the data.

3.3 SAMPLING TECHNIQUES AND SAMPLE SIZE

Convenience sampling, according to Rahi (2017), is the practice of gathering data

from a research population that is easily accessible to the researcher. The term is only used if
a researcher's primary concern in selecting a sample was participant availability, and they
were unable to select from a wide range of communities and research settings (Koerber &
McMichael, 2008). This study adopted convenience sampling method for the data collection
process. This study used a sample size of 191 respondents from Lumina Datamatics.

3.4 RESEARCH INSTRUMENT

The questionnaire is served as the primary research instrument for this study. The
study's questionnaire had two main portions. These are the demographics and research
objectives. Under demographic section A, the variables such as gender of the respondents,
age, marital status, education, work experience, department of working, mode of work and
working hours was asked. The section B on Organizational Culture was also sub-divided into
five sub sections. These five sub-sections were also grouped into the various dimensions of
the Employee Engagement outlined in the conceptual framework. These sub-sections are
Organizational Culture. The study employed a five-point Likert Scale to measure
respondent’s agreement/disagreement with various claims. The Five-Point Likert Scale with
the values "strongly disagree" (1) and "strongly agree" (5) was employed.

3.5 DATA COLLECTION PROCEDURES

 A questionnaire is a systematic series of questions delivered to respondents during the
study, followed by explicit instructions defining the brief introduction and the objective of the
study. This tool is highly adaptable across a wide range of research areas, including survey
research and experimental design, and it provides researchers with a structured framework for
gathering ideas methodically and analysing data Sreejesh (2014). The research questionnaires
were spread among the employees.

3.6 PILOT STUDY

In order check the reliability and validity of the research instrument, the researcher
collected 30 responses from employees of the Lumina Datamatics.

3.7 DATA ANALYIS TOOLS

Partial least squares structural equation modelling (PLS-SEM) was the primary data
analysis technique used in this study. According to Hair et al. (2011), smart PLS-SEM is
deemed suitable for analysing intricate research models that are presented as an estimating
framework integrating relevant theories and empirical data. A non-parametric method called
PLS-SEM takes advantage of explained variance in latent dimensions, which are invisible to
the naked eye (Ringle et al. 2015). Compared to covariance-based SEM, smart PLS-SEM
requires less data on sample sizes, measurement scales, and residual distributions (Hair et al.,
2019; Udin, 2023). A robust and easy-to-use software program for many statistical data
analysis tasks is SPSS (Levesque, 2007). Students and researchers mostly from the following
subjects utilize this program: sociology, psychology, economics, business studies, medicine,
engineering, and other disciplines. According to Vorhies (2017), SPSS is a fantastic option
for marketing and survey firms looking to forecast and analyse consumer behaviour.

4.2 RESEARCH OBJECTIVES ANALYSIS

FORNELL – LARCKER CRITERION (DISCRIMINANT VALIDITY RESULTS)

The bolded elements display the square root of the average variance that was taken from the
diagonal elements. Shared variations are shown for elements that are not on the diagonal. The
findings indicated that the assumptions were conceptually and empirically distinct from one
another, and that the discriminant validity of the model was good. All of the shared variances
among the factors in the framework were found to be smaller than the square root of the
individual factor AVE. To verify the discriminant validity of constructs in structural equation
models, a common method is the Fornell-Larcker criterion (Fornell & Larcker, 1981, p. 41).
A comparison between the squared construct correlations and the average variance extracted
(AVE) serves as the basis for the Fornell-Larcker criterion, which is a decision rule. The
square root of AVE must be higher than the values of its bivariate correlations with each of
the opposing constructs in order to meet the Fornell and Larker criterion.

Fornell – Larcker Criterion (Discriminant Validity Results)

Emp.
Performance
Employee 0.622
empowerment
Leadership 0.358 0.745
Org. culture 0.555 1.000 1.090
Salary and 0.493 0.838 0.710 1.070
Increment
Satisfaction 1.222 0.702 0.371 0.628 0.895
Satisfaction x 0.269 0.075 0.358 0.368 0.319 0.702
Employee
empowerment
Satisfaction x 0.536 0.375 0.285 0.511 0.340 0.561 0.605
Leadership
Satisfaction x 0.090 0.105 0.319 0.439 0.345 0.007 0.847 0.608
Salary and
Increment
Satisfaction x 0.524 0.186 0.398 0.375 0.322 0.478 0.639 0.571 0.646
Org. culture

R2

R-square R-square
adjusted
Employee Performance 0.952 0.951
7 and above – very good

The variance in the endogenous variable explained by the exogenous variable(s) is explained
using R Square statistics. According to Falk and Miller (1992), an endogenous construct's
variance explanation must be assessed acceptable if its R 2 values are equal to or greater than
0.60. Chin (1998) suggested that endogenous latent variables exhibiting R 2 values of 0.67 as
substantial, 0.33 as moderate, and 0.19 as weak. According to Hair et al. (2011) and Hair et
al. (2013), substantial, moderate, and weak can be applied to endogenous latent variables
with R2 values of 0.75, 0.50, and 0.25, respectively, in academic research on analysis-related
concerns. Hence, the criterion of the variables calculated from the structural models, R 2 must
be equivalent or above 0.75 to become validated and substantial for the study.

Based on this above citation, The Employee Engagement is considered as the sustainable
factor as it holds the R2 value of 0.855, which is greater than 0.75. Here, the criterion of
adjusted R2 0.852, also exceeds the determined value of 0.75 to become a substantial factor.

DIRECT EFFECT RESULTS

The direct and indirect effects together make up the overall effect. The impact of exposure on
the result in the absence of a mediator is known as the direct effect. The impact of exposure
on the result that passes through the mediator is known as the indirect pathway. The goal is to
determine how much of an exposure affects the result overall, how much of an exposure
operates through a particular set of relevant mediators (indirect impact), and how much of an
exposure is not explained by those same mediators (direct effect). The conventional method
of doing a mediation analysis involves estimating the direct effect by controlling for the
mediator in conventional regression models (Andrew, 2022).

Constructs β SD T P Hypothesis
Employee empowerment  Emp. Performance 0.404 0.0264 2.528 0.001 Accepted
Leadership  Emp. Performance 0.168 0.0120 21.398 0.001 Accepted
Org. culture  Emp. Performance 0.398 0.0154 12.586 0.009 Accepted
Salary and Increment  Emp. Performance 0.709 0.025 2.83 0.004 Accepted
Satisfaction  Emp. Performance 0.501 0.009 99.3 0.000 Accepted

In table, the results of the path coefficients, standard deviation, t-values, and p-values are
presented to explain the structural model. Supportive Leadership was positively significant
with Employee Engagement (β = 0.070, t = 2.796, and p<0.05). Management Style influences
the significance of Employee Engagement positively (β = 0.216, t = 11.628, and p<0.05).
Employee Captivation positively influences the Employee Engagement (β = 0.264, t =
10.400, and p<0.05). Organizational Strategy positively influences the Employee
Engagement (β = 0.674, t = 27.875, and p<0.05). Work Environment was positively
significant with Employee Engagement (β = 0.097, t = 4.632, and p<0.05). Organizational
Leadership positively influences the significance of the Employee Engagement (β = 0.103, t
= 3.536, and p<0.05).
MODERATION RESULTS

The moderator variable, also known as a third variable, determines the values of the
relationship between two constructs, which is not constant. A relationship between two
constructs in the model can be altered in terms of strength or even direction by the moderator
variable (Larnyo, 2021). In order to test a moderating relationship, which is typically
hypothesized a priori by the researcher, the interaction term (i.e., the product of the moderator
and predictor variable) is evaluated. This allows the researcher to determine whether changes
in the moderator will increase or decrease the strength of the focal relationship (Hair et al,
2022).

Constructs β SD T P Hypothesis
Satisfaction* Employee empowerment 0.034 0.0284 11.209 0.008 Moderated
Emp. Performance 2
Satisfaction * Leadership 0.002 0.0117 3.1872 0.000 Moderated
 Emp. Performance 2
Satisfaction * Salary and Increment 0.077 0.0269 2.87 0.004 Moderated
Emp. Performance 4
Satisfaction * Org. culture 0.053 0.0124 4.2926 0.000 Moderated
Emp. Performance 5

The table are the moderation outcomes of this research: The relationship between
Supportive Leadership and Employee Engagement was strongly moderated by
Organizational Leadership (β = 0.661, t = 2.599, and p<0.05). Management Style influence
on Employee Engagement was strongly moderated by the Organizational Leadership (β =
0.521, t = 12.113, and p<0.05). The effect on Employee Engagement by Employee
Captivation is moderated effectively by the Organizational Leadership (β = 0.428, t = 23.054,
and p<0.05). The Organizational Leadership moderates the relationship between
Organizational Strategy and Employee Engagement (β = 0.621, t = 4.772, and p<0.05). The
Moderation effect of Organizational Leadership is high on the relationship between Work
Environment and Employee Engagement (β = 0.919, t = 5.897, and p<0.05).
STRUCTURAL MODEL RESULTS