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www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962
219 Copyright © 2017. Vandana Publications. All Rights Reserved.
Volume-7, Issue-5, September-October 2017
International Journal of Engineering and Management Research
Page Number: 219-234
Factors Impacting Motivation of Indian Employees with Special Focus
on Older HR Professionals
Varshini Rajesh1, Renuka Kumar
2, Aditya G. Kovvali
3
1,2,3Student, Symbiosis Centre for Management Studies, Pune, INDIA
ABSTRACT Human Resource Management must keep pace
with the changing as well as aging demographic that India
is going to find itself harbouring. It is therefore important
to understand the factors that motivate this new breed of
employees. Factors motivating employees can be
understood through various classifications such as
extrinsic, intrinsic, financial and non-financial. Though
frameworks exist to study how to create optimal
motivational strategies, there is a dearth of work
understanding Indian HR professionals. Administering a
questionnaire on 91 respondents from the field of HR, this
study used factor analysis to find the factors which
influence motivation. By using a combination of
motivation-linked incentives and personal preference a
holistic perspective was found in the form of five distinct
factors that influence motivation in these professionals.
This study also explores some implications for managers
that emerge from the findings which can keep employees
engaged in the firm. The limitations and scope for further
research are also discussed.
Keywords--Motivation, Intrinsic, Extrinsic, HRM, Factor
Analysis
I. INTRODUCTION
Human Resource Management (HRM) plays an
integral role in any organisation, impacting firm
performance in a significant way across the world
(FINANCIAL, 1995; Youndt et al., 1996; Subramony,
2009) and in India (Singh, 2000; Singh, 2004).
Competent HRM, more so. (Huselid, Jackson & Schuler,
1997) One of the key HRM functions is to help maintain
a motivated work force through a combination of various
incentives of varying nature. Though these incentives
may seem to distract the company’s work or even at
times seem to cause apparent loss of productivity and
money, the rewards are often multi-foldthe effort put in.
Take for instance Ujjivan. The micro lender has multiple
HR policies including asking employees to take 10 days
off above and beyond their normal paid leave and
employees are not given job titles. (Dasgupta, 2016)
These actions have created a workforce which is so
motivated to work that it reflected in their IPO, which
was subscribed 40.75 times more than the initial
offering. (Mudgill, 2016) Clearly, even if the investors
do not think too much about the firm’s HR policies, they
clearly see enough value in the company to risk
investing their money in it.
While great HR policies have the capacity to
motivate employees, the tools used to motivate may also
backfire and create an undesirable environment where
employees are not only ‘not motivated’ but also desist
the workplace. Take for instance the case of Uber, the
online cab aggregator whose culture was so competitive
that it forced employees to leave. (Issac, 2017) While the
unchecked culture became toxic over time, it yielded in
promoting behaviours which are not conducive for
positive motivation. Motivating employees is not a one-
pill-for-all kind of task. Motivating individuals is not as
simple as applying the rules of physics to a system.
People are not atoms, they behave in different ways and
respond to different incentives differently. Despite the
large repository of insights driven by hardcore
researchon this topic, it is very surprising to see the
workforce at large being highly disengaged. Take for
instance a Gallup survey in 2013 which showed that
across the world only 13% of individuals feel engaged in
their work(Crabtree, 2013).
In India, there is a long history of both HRM
evolving in the country (Saini & Budhwar, 2004) as well
as the impact to HRM in the country due to the entry of
MNCs(Som, 2006). This evolution in our own
understanding of Indian HRM now stands to great use
given the demographic dividend that India has been
blessed with. In a PwC report titled ‘Indian workplace of
2022’, 62% of CEOs have stated that they plan to invest
in revamping their talent strategy. (PwC India, 2014)
Though we see a relaxation in the baby boom, the
country has been left with a large population that is
aging. It is imperative for organisations to understand the
growing needs of this aging demographic to tailor their
motivational strategies accordingly.
II. LITERATURE REVIEW
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Motivation (for the purposes of this study) is
defined as the driving principles, desires, and wants that
incudes goal oriented behaviours in an individual. Such
said behaviour incites the individual to pursue actions
within and even beyond requirement to aid them in
reaching and achieving their goal. In the context of
organisations, this would be interpreted as employees
taking the initiative to get the work done. One of the key
developments in the study of motivation is the Self
Determination theory.
The self-determination theory is a macro theory
on human motivation which address the key issues of
understanding human self-regulation, aspirations, energy
and vitality etc. (Ryan & Deci, 2008)The theory draws at
its most basic level a key distinction between two types
of motivation: intrinsic and extrinsic motivation. (Ryan
& Deci, 2000; Niemiec & Spence, 2017)
Intrinsic motivation: This is the type of
motivation where the will to perform comes from doing
the task itself. It is the inner drive of the person which
takes them to the level where they are motivated to put
their best foot forward simply for the sake of doing so. A
good example is Google’s 80/20 rule. From around
2007, Google has given its employees the autonomy for
pursue 20% of their time for personal projects which
they believed would benefit Google. While this policy
has been discontinued for various reasons (Ross, 2015) it
did leave an impact, with key Google products such as
Gmail, AdSense and Google News coming out of this
program. (Recruiterbox, 2012)
Extrinsic motivation: This is the type of
motivation where the individual has incentives provided
to him/her to perform the same task. The person is
driven by the allure of an external rewards which
facilitates them to motivate themselves to work in that
direction. In most companies, this comes in the form of
rewarding people with promotions, increase in the pay of
employees, bonuses etc. Some studies have found that
extrinsic motivators have higher impact for lower paying
jobs(Centers & Bugental, 1966) while it is lower or less
relevant for higher paying jobs (Chaves, Ramos &
Santos, 2016)
Both these kinds of motivation have been
subject to much discussion (Chen & Bozeman, 2013;
Cerasoli, Nicklin & Ford, 2014; Landry et al., 2016). It
is however established in academic literature that
between the two, intrinsic motivators tend to be better
indicators of motivators compared to extrinsic
motivators regardless of the incentives. (Cerasoli,
Nicklin & Ford, 2014) In fact extrinsic factors even tend
to undermine behaviour earlier motivated only by
intrinsic facts. (Lepper, Green & Nesbitt, 1973;
Warneken & Tomasello, 2014) and may at times even
have a negative impact on goal achieving behaviour
(Lemos & Verissimo, 2014) It has been noted that
extrinsic motivational factors such as good wages may in
fact be intrinsic in nature if one considers a good wage to
be a source of providing for one’s family or oneself with
a good life. (Wiley, 1997)
III. WORKFORCE IN INDIA
India is currently beginning to accrue the
benefits of its demographic dividend which brings with
itself an increase in the labour force, increased savings
and increase in human capital (Bloom, Canning &
Sevilla, 2007). It has even been said that given the
current context the positives of this demographic
dividend will get amplified. (Chandrasekhar, Ghosh &
Roychowdhury, 2006) For this paper, it is the promise of
this increase in the labour force and increase in human
capital whose implications are relevant. The Indian
workforce has established itself as highly competent in
the world markets (Press Trust of India, 2017)It is
however important to take note that a highly talented
workforce cannot by itself be the engine to the
organisation’s growth. HRM must provide the necessary
frameworks to channel the motivation of these
employees and maximise their engagement and through
that their output. For this study, two demographic groups
have been taken:
YOUNGER EMPLOYEES (25-40)
Managing the younger generation of employees
has always attracted much debatefrom academic circles
(Caudron, 1997; Feji et al., 1999; Raines, 2002; Twenge,
2002). Today with more than 1 million employees
joining the workforce per month in India (Nanda, 2012),
motivational strategies need to cognizant of what are the
requirements of this new breed of young employees.
Among young Indian employees, factors such as
flexibility at work have been established to improve their
motivation. (Gulyani & Bhatnagar, 2017). However, this
demographic is in turn influenced by older employees
who have already spent time in the organisation. It is
important to therefore study them along with their older
peers to gain an insight into the factors that now
motivates them.
MIDDLE AGED EMPLOYEES (40+)
With rapid increase in better healthcare
standards around the world it is now visibly obvious that
people are living for longer now. In fact, in India life
expectancy has gone up by 5 years. (Sampath, 2014)
While this calls for celebration one must be equally
aware that most of these ‘middle aged’ workers will be
competing for jobs. In the United States of America this
demographic shift in the number of people dominating
the workforce is already apparent. (DeSilver, 2016)
In India, while the issue of employment faces a
host of different problems (The Economist, 2013) It is
challenging to find, it would be foolish to miss out the
demographic divide coming full circle and bringing with
an aging workforce. This aged workforce must be dealt
with differently. (L. Nadanwar, Das & M.V. Nadanwar,
2017) They would be a different breed of workers with
different priorities. This matter has been the subject of
much academic research (Hedge, Borman & Lammlein,
2006; Avery, McKay & Wilson, 2007; Baker, Al-
Ghatani & Hubona, 2007; Auerbach, Buerhuas &
Staiger, 2007; Calo, 2008; Mulders, Henkens &
Schippers, 2016). The biggest challenge for such a
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221 Copyright © 2017. Vandana Publications. All Rights Reserved.
demographic is the matter of motivating them to work
and continue to work in the firm. One must adopt a
different framework to tap the aspirations and
requirements of this demographic to ensure the
organisation remains both highly productive, efficient
and competent.
IV. INCENTIVES
While motivation is a tool, it is only through
policies that is can be actualised. Through literature
review and from the experience of the authors, this study
has identified certain incentives which promote
employee productivity and motivation. For the sake of
this study, the incentives have been divided into
financial and non-financial incentives.
Financial incentives
Financial incentives are those types of
incentives which are aimed at providing some material
benefit to the employee usually in the form of tangible
remuneration. Financial incentives have close to 60%
covariation with performance when considering field
experiments, which have been considered as a reliable
setup to test observations. (Jenkins et al., 1998)
Aspect Linking it to employee productivity/motivation
Bonus (Solomon et al., 2012; Ryan, Sutton & Doran, 2014; Barrandale
et al., 2015)
Pay/Salary increase (Trevor, Gerhart & Boudreau, 1997; De Ree, 2015)
Fringe benefits (Leibowitz, 1983; Hafiza et al., 2011)
Paid Holidays (Jha & Misra, 2016; Hilbrecht & Smale, 2016)
Employee Stop Option Plans (Smith & Stulz, 1985; Cheng & Warfield, 2005)
Profit Sharing (Kruse, 1992; Poole & Jenkins, 2013)
NON-FINANCIAL INCENTIVES
Non-financial incentives are those incentives
which make use of non-material benefits to motivate
employees usually in the form of improving intangible
aspects of the job. Though over the short run financial
incentives tend to do better, over time both financial and
non-financial incentives provide similar returns.
(Peterson & Luthans, 2006)
Aspect Linking it to employee productivity/motivation
Job Enrichment (Parker & Wall, 1988; Tim & Bakker, 2014)
Training & Development (Tahir et al., 2014; Elnaga & Imran, 2013)
Promotion (Trevor, Gerhart & Boudreau, 1997)
Employee Recognition (Bradler, Dur & Neckermann, 2016; Burke, Hecht & Stern; 2016)
Status (Porter, 2016)
Job security (Yousef, 1998; Sverke, Hellgren & Näswall, 2002)
V. INDIVIDUAL PREFERENCE FOR
FACTORS
For the sake of the study, certain variables were
considered to study the preference of the participants
when given these choices. The
Aspect Linking it to employee productivity/motivation
Work Environment (Amabile et al., 1996; Vischer & Wifi, 2017)
Organisational Culture (Anitha & Begum, 2016; Valencia, Jiménez, &
Valle, 2016; Schneider et al., 2016)
Relation with Colleagues/ Subordinates (Butler et al., 2016)
Relation with Superiors (Babalola, 2016)
Autonomy/Freedom at workplace (Van Yperen, Wörtler, & De Jonge, 2016)
Comfort Level (From experience)
Sense of Belonging to the Firm (Lasrado, Gomiseck & Uzbeck, 2017)
Financial Perks and Benefits Already discussed
Non - Financial Perks and Benefits Already discussed
VI. RESEARCH GAP
There is inconclusive amount of research on
emerging trends in motivation with emphasis on middle
aged and young Indian employees and factors that
influence what motivates them. Through this study this
paper captures the pulse of contemporary motivators for
employees who are starting out and in the middle stage
of their careers.
Objectives of the paper is to find the factors
which influences the contemporary workplace. This
study also aims to identify through these factors
motivational strategies that firms can use to review and
improve their current motivational strategies.
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222 Copyright © 2017. Vandana Publications. All Rights Reserved.
VII. METHODOLOGY
A sample of 91 Indian HR professionals was
chosen using snowball sampling technique. A structured
questionnaire was administered which had twenty-eight
close-ended and two open ended questions. The close
ended questions were in the form of five-pointLikert
scales. These questions looked at both financial and non-
financial elements in the organisation’s own
motivational policies and then asked the HR
professionals about their own preference of motivating
factors. The data was then coded with different labels
and treated on SPSS. Factor analysis was performed on
the same. It is recommended that the statistically valid
sample size be five-ten times the number of items being
tested. (Nunnally, 1975)For KMO, the values above 0.5
are considered and the significance levels below 0.05 is
taken as indicator of reliability of the factor analysis. The
Cronbach alpha values, a value above 0.7 is taken to be
reliable.(Tavakol & Dennick, 2011) This study’s data set
holds true for this sort of treatment as shown below:
Bartlett’s test of Sphericity
Factor
Analysis of-
Cronbach
Alpha value
KMO
value
Approx. value
of chi sq.
Value of chi sq. Validity of
results
Financial
and non-
financial
benefits
0.89 0.97 341.09 40 Yes
Holistic
analysis
0.91 1.00 818.76 179.392 Yes
As can be seen above, the variables employed in this study are statistically valid.
DEMOGRAPHICS
GENDER
Value Label Frequency Percent
Male 62 68.13 %
Female 29 31.87 %
Total 91 100.0
AGE
Value Label Frequency Percent
18-25 years 1 1.10 %
20-40 years 23 25.27 %
40+ years 67 73.63 %
Total 91 100.0
Table - 2
Figure - 2
Table - 1
Table - 0
Figure - 1
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223 Copyright © 2017. Vandana Publications. All Rights Reserved.
A clear majority of the participants were men
(68.13%), while in terms of age it is dominated by
employees who are 40+ (73.63%).
VIII. RESULTS
FINANCIAL AND NON-FINANCIAL When factors are found based on the
Eigenvalues above 1, two factors can be found.
However, three factors better explain the observations
(67%) than the four factors (59%).
Communalities
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224 Copyright © 2017. Vandana Publications. All Rights Reserved.
TotalVarianceExplained
Component
InitialEigenvalues ExtractionSumsofSquaredLoadings
Total %ofVariance Cumulative% Total %ofVariance Cumulative%
1
2
3
4
5
6
7
8
9
101112
5.72
1.47
.94
.73
.64
.57
.54
.44
.38
.24
.19
.15
47.67
12.22
7.81
6.06
5.37
4.75
4.49
3.68
3.15
1.96
1.56
1.27
47.67
59.89
67.70
73.76
79.13
83.89
88.37
92.05
95.20
97.17
98.73
100.00
5.72
1.47
.94
47.67
12.22
7.81
47.67
59.89
67.70
Component
RotationSumsofSquaredLoadings
Total %ofVariance Cumulative%
Table - 4
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1
2
3
4
5
6
7
89...
3.511.982.6
3
29.2716.5121.92 29.2745.7867.70
ComponentMatrix
Component
1 2 3
Nf1
Nf2
Nf3
Nf4
Nf5
Nf6
F1
F2
F3
F4
F5
F6
.72
.78
.80
.73
.65
.77
.61
.83
.72
.64
.50
.43
.18
.00
- .04
.07
.21
- .02
.31
.21
- .01
.15
- .77
-.79
-.25
-.11
- .16
.31
.53
.22
- .38
-.25
-.19
.40
- .01
-.02
Table – 4 Table - 5
Component
1 2 3
Nf1
Nf2
Nf3
Nf4
Nf5
Nf6
F1
F2
F3
F4
F5
F6
.73
.64
.68
.36
.20
.42
.77
.82
.64
.25
.15
.10
.08
.27
.32
.18
.01
.29
-.07
.10
.26
.07
.90
.89
.27
.37
.34
.68
.84
.62
.13
.33
.27
.72
.14
.08
RotatedComponentMatrix
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226 Copyright © 2017. Vandana Publications. All Rights Reserved.
Unitary benefits Apropos financial benefits Apropos benefits
Bonus ESOP Status
Salary/Pay Raise Profit sharing Job security
Fringe benefits Employee Recognition
Job Enrichment Paid Holidays
T&D
Promotion
HOLISTIC ANALYSIS
When factors are found based on the Eigen
values above 1, fours factors can be found. However,
five factors better explain the observations (71%) than
the four-factor model (66%).
Communalities
TotalVarianceExplained
Component
InitialEigenvalues ExtractionSumsofSquaredLoadings
Total %ofVariance Cumulative% Total %ofVariance Cumulative%
Initial Extraction
F1
F2
F3
F4
F5
F6
Nf1
Nf2
Nf3
Nf4
Nf5
Nf6
I1
I2
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
.66
.77
.55
.57
.76
.82
.70
.65
.71
.61
.67
.67
.81
.64
Initial Extraction
I3
I4
I5
I6
I7
I8
Ik9
Ik10
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
.82
.79
.82
.74
.74
.66
.80
.69
Table - 6
Table - 7
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
8.00
3.64
1.75
1.29
.96
.86
.78
.68
.63
.58
.49
.42
.37
.31
.26
.25
.21
.18
.14
.09
.07
.05
36.34
16.55
7.96
5.85
4.36
3.91
3.57
3.10
2.85
2.64
2.22
1.92
1.67
1.40
1.20
1.13
.97
.80
.61
.41
.30
.24
36.34
52.90
60.86
66.71
71.07
74.98
78.55
81.65
84.50
87.14
89.36
91.28
92.94
94.35
95.55
96.67
97.64
98.44
99.05
99.46
99.76
100.00
8.003.641.7
51.29.96
36.3416.557.965.
854.36
36.3452.9060.8666.
7171.07
Component
RotationSumsofSquaredLoadings
Total %ofVariance Cumulative%
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12345 2.674.052.4
03.952.57
12.1318.3910.92
17.9411.69
12.1330.5241.4459.
3871.07
Component
RotationSumsofSquaredLoadings
Total %ofVariance Cumulative%
6
7
8
9
10
11
1213141516171819202
122
Table - 8
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Component
1 2 3 4 5
F1
F2
F3
F4
F5
F6
Nf1
Nf2
Nf3
Nf4
Nf5
Nf6
I1
I2
I3
I4
I5
I6
I7
I8
Ik9
Ik10
.61
.77
.65
.54
.36
.27
.55
.65
.77
.57
.49
.68
.63
.51
.61
.62
.75
.49
.55
.66
.69
.57
-.06
-.25
-.31
-.35
-.46
-.54
-.39
-.43
-.29
-.45
-.43
-.38
.54
.46
.59
.61
.28
.53
.48
.22
.20
.10
.44
.31
.04
.07
- .52
-.55
.40
.09
.06
.11
.17
-.03
.15
.25
-.04
.00
- .12
.01
- .05
-.41
-.24
-.58
.18
.11
.03
- .34
.38
.36
.22
.13
.19
-.25
-.46
-.19
.15
.31
.13
.15
.04
.00
- .45
-.09
-.24
-.14
.24.05.16
-.19
-.03
.13
.17
-.17
-.04
-.03
-.07
-.12
-.28
.07
- .30
-.01
-.40
.46
.10
- .04
.41
.09
Table – 9 Component Matrix
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RotatedComponentMatrix
Component
1 2 3 4 5
F1
F2
F3
F4
F5
F6Nf1
Nf2
Nf3
Nf4
Nf5
Nf6
I1
I2
I3
I4
I5
.73
.63
.44
.08
.08
.10
.72
.38
.48
.25
.13
.19
.21
.47
.06
.22
.04
.21
.26
.09
.10
.03
-.16
.02
.21
.31
-.01
-.07
.16
.85
.59
.88
.75
.80
-.03
.15
.29
.06
.85
.87
.14
.35
.38
.14
-.03
.27
-.10
-.09
-.01
-.03.18
.25
.52
.46
.74
.18
.13
.39
.57
.49
.72
.80
.72
.08
-.12
.04
- .06
.35
.14
.10
.23
.08
-.01
.05
-.04
-.09
.08
.11
.12
.14
.15
.20
.22
.40
.16
Component
1 2 3 4 5
I6
I7
I8
Ik9Ik10
.34
- .04
-.06
.19
-.15
.34
.43
.49
.22
.29
-.11
-.25
.32
.14
.44
-.15
.26
.25
.25
.23
.69
.65
.49
.79
.59
Table - 10
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Unitaryjob-related
element
Systemelement Apropos financial
element
Unitary benefit-
relatedelement
Latentelement
Bonus Work Environment Profit Sharing Paid Holidays Freedom at the
workplace
Salary/Pay Raise Organisational
culture
ESOP T&D Comfort
Fringe Benefits Relationship with
Colleagues
Employee
Recognition
Financial perks
Job enrichment Relationship with
Subordinates
Promotion Non-Financial
perks
Relationship with
Superiors
Status
Sense of Belonging Job Security
IX. ANALYSIS
From the treatment of the data we can see some
clear trends emerge from the data. For both financial and
non-financial incentives, two kinds of incentives emerge:
1. Unitary: These are incentives restricted to what
the individual and are job related. In terms of
financial incentives, it amounts to bonuses and
fringe benefits while for non-financial
incentives it means T&D as well as job
promotions.
2. Apropos: These are incentives which are with
respect to the organisation. Financial incentives
such as paid holidays and non-financial
incentives such as status come under such type
of incentives.
3. Apropos financial: ESOPs and profit sharing
come under this factor.
When a complete view of the data is taken, the five
factors that emerge are:
1. vUnitary job-related element: This consists of
all the aspects that an employee individually
receives from his/her job. Bonuses, salary
increase etc. come under this.
2. System element: This is the sum of all
interactions in the organisation. It includes
those the employee interacts with as well as the
social structure (organisational structure) which
governs how the employees treat and are treated
by others.
3. Apropos financial element: This element keeps
repeating itself in the same pattern. ESOPs and
profit sharing comprise of this element as they
provide an ‘financial umbilical cord’ between
the employee and the company.
4. Unitary benefit-related element: This consists of
all the aspects that an employee receives from
the organisation as benefits above and beyond
what it provides employees and is inclusive of
fringe benefits, paid holidays, job security etc.
5. Latent element: This is composed of all the
informal benefits that the employee accrues
from the workplace, such as freedom, comfort
as well as financial and non-financial perks.
X. DISCUSSION
From the above analysis, the following is worth
noting:
1. Our study uses both what HR professionals believe are
best practises in their individual respective firms and
their personal preference for certain elements which they
believe keeps them motivated. This holistic analysis
allows us to make a better estimation of how HR
professionals themselves feel about certain practises.
This analysis holds true for other Indian employees in
support or main functions as well.
2. The factor analysis shows a clearly that ESOPs and
profit sharing plans should be treated together as one
strategy separate from the others. This may be due to
their unique predisposition of tying the employee to the
firm financially while providing the sort of intrinsic
motivation to do well (feeling greater accountability for
the success and seeing their hard work being paid off in
directly rather than through some pay-check or bonus) It
must be noted that while ESOPs tend to bring the before
mentioned attachment to the company, it may not be a
good substitute for bonuses like in the case of Twitter.
Twitter would provide all its employees with great stock
option plans instead of high salaries. This backfired as
the company was only selling the potential it could reach
rather than making good on the present efforts of its
employees. (Spross, 2016)
3. Irrespective of being financial or non-financial in
nature, the incentives are clearly differentiated between
whether they impact only the individual (unitary) or are
rewarded with respect to their other colleagues (Status,
job security and even profit sharing where the individual
stands to gain with respect to other fellow employees)
Studies have shown that employee recognition boosts
motivation when provided to only the best performers in
the organisation. (Bradler, Dur & Neckermann, 2016)
4. When analysing the five factors system one can see
that the motivating incentives in the job can be split into
two parts, the incentives which impact work (such as
Table - 11
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bonuses or job enrichment) and the incentives that act as
benefits or add ins (such as paid holidays) Therefore,
policies which add value to employees should not be
‘above and beyond’ what the organisation is offering but
as a strategy on its own which motivates people and
improves their motivation. Also, the systems function
sees all social elements as valuable sources to motivate
employees. Thus (as discussed above) social interactions
and the system enabling it can become points where
employees can be enabled to feel motivated.
XI. MANAGERIAL IMPLICATIONS
The application of this framework should be to
find the different dimensions where HR managers can
implement policies and how those policies should be
treated.
1. When using financial incentives, it is important for the
manager to have a blend of incentives that impact the
individual alone as well as impacts the individual with
respect to the organisation. This paper recognises that
pay for performance (Rosenthal et al., 2005; Starfield &
Mangin, 2016) while guided with awareness of its
potential pitfalls(Gerhart & Fang, 2014)is a great option
going ahead. In terms of using financial incentives which
tie the employees to the company, it is important to note
that they make their own category of incentives in every
case. ESOPs are widely used to create ‘employee owed
organisations’ (Rosen & Klein, 1983) and while there is
much literature about the industry’s use (Frye, 2004;
Wilson, 2016) being a financial incentive, it too has only
a temporary impact on company productivity (Pugh,
Oswald & Jahera, 2000) or may only at times have a
positive impact(Kruse, 2016). This study would like to
propose revenue sharing models, where employee not
only enjoy the profits (like in profit sharing schemes) but
also participate in bearing a distributed part of the losses.
HR professionals may otherwise also consider making
employees an active part of board meetings and financial
discussions within the company to psychologically
increase the sense of ownership the individual may have
to their vested stock and/or accrued profit through the
profit sharing scheme of their organisation.
2. For non-financial incentives, it is interesting to note
that policies to motivate employees may be targeted at
making their jobs or work richer in the form of job
enrichment, promotions etc. which is analogous to the
job characteristics theory. Therefore, HR professionals
may consider things such as mentorship programmes or
sending employees on offshore projects to improve their
quality of work. A mentorship program helps the
employee improve their own productivity by means of
understanding their own shortcomings. It is not
uncommon for employee to look informally for mentors
to guide them (Holt et al., 2016) and there is much
established literature to study and take notes from
(Bramley et al., 2014; Mundia, 2014; Masalimova,
Sadovaya & Flores, 2016) While many companies are
already sending employees abroad (Chan, Yuang &
Chuang, 2013) it should not increasing be used as a tool
to motivate employees. The other is social elements such
as job recognition, status etc. It must be important to
note that fair systems must be kept in place with
emphasis on merit as the sole criteria for such
interventions to be successful.
XII. LIMITATIONS OF THE STUDY
1. The sample size could have been larger.
2. There is under representation of women in the
sample taken.
3. The participants were not asked for the industry
where they work. This puts the study at risk of
not knowing the representation of different
industries in the study.
4. The study was limited to only six items for both
financial and non-financial incentives. More
incentives could have been identified.
XIII. SCOPE FOR FURTHER
RESEARCH
There is scope for further research.
Confirmatory studies could look whether the same
results hold true. Employees of other functions such as
finance, marketing etc. could be studied to understand
motivational strategies that work for them. The
magnitude of strength for each of the identified factors
could be identified for professionals to better strategize
how to implement HR policies which maximise
motivation of employees.
XIV. CONCLUSION
Motivating employees is never an easy task and
with increase in the number of people working in
organisations, it is only poised to get harder. This is
especially true for employees that are getting older. By
looking at what factors are today critical for employees
to design HRM policies around, we can maximise the
impact of all efforts taken to motivate employees. This
study requires more confirmatory studies to strengthen
its claims. However, if this study in its current state can
aim to help the HRM professional in any way, it is
simply to make them more aware of the different
dimensions which need to be considered while framing
policies that aim to motivate this demographic. These
dimensions do not hold new HR policies guaranteed to
provide the HRM professional success but rather help
them understand which policies compliment together.
The factors established in this study may also be used as
a source of inspiration to find other innovative strategies.
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