Bengal, Past and Present (UGC Care Listed Journal)
ISSN: 0005-8807
Vol-139, No-2, 2021 (July-December)
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A STUDY OF MOTIVATIONAL VARIABLES AND THEIR IMPACT ON EMPLOYEE RETENTION
1Gaurav Bhati,
2Dr. Rajeev Gupta
1Research Scholar, 2Research Guide and
Associate Professor Dept. of Commarce, Lingaya’s
Vidyapeeth, Haryana-121004
 |
Abstract
This paper aims to define the
motivational variables that influence insurance personnel in NCR-Faridabad. The study starts with
background information to explain the role of human resource management. In light of this background information, the study defines the important
role played by HR managers in an insurance institution. The research context is
in NCR-Faridabad as it is intended to
study the existing motivational factors for insurance employees in NCR-Faridabad and their influence on employee
performance will be studied. Employee
motivation is one of the most important factors that can help the employer to improve the performance of the employees
and the company. Different theories of motivation are discussed. The paper concludes that employee retention can
be improved by motivating employees
in the following areas: Open communication, employee reward programs, career development program, performance-based bonus, recreational opportunities, and gifts on specific occasions.
The study's general objective is
to help researchers define some motivational variables that affect employee performance and
productivity. In essence, this theoretical paper examines the motivational factors that influence
employee retention and explores their effects on both organizations and employees. This paper argues that the
motivational factors that are critical to employee
retention are financial
rewards, job characteristics, career development, recognition, management, and work-life
balance. Therefore, in order to reduce turnover rates, companies should develop
appropriate employee retention strategies that require
employers to make a certain commitment, but one that pays
off in the long run.
Keywords: employee motivation, employee
retention, insurance institutions, rewards, motivational variables.
INRTODUCTION
People are one of the most
valuable assets in 21st-century organizations. Chris (2012) states that human resource
management (HRM) is considered critical
for any organization. However,
motivating employees in insurance companies is still remains a common problem faced by HR managers. According to Hsieh
(2007), some academic managers in insurance companies who fail to recognize the complexity of motivation can damage employees' morale, potentially affecting their performance. Conversely,
motivation can have a positive effect on employee productivity (Weightman,
2008).
Therefore, employee motivation has
been found significantly impact on productivity and performance. Understanding these influencing factors
is critical to understanding the mechanisms
underlying employee motivation. Employees stay or leave companies for many reasons, which can be personal or
professional. Employees who are satisfied and happy with their jobs are more engaged and committed to the growth of the
company.
Employee retention (ER) is about encouraging employees to stay with the company as long as possible or until the project is
completed. Even though employee retention has become a difficult task, it is
beneficial to both the company and the
employee.
WHAT IS MOTIVATION?
Most authors define motivation as
an inner force that drives people to achieve organizational and individual goals. Motivation is also described
as an energetic force that stimulates behavior. In organizations, motivation
is an essential aspect of human resource management because it is associated with increased productivity and
performance. Hosseini (2014) defines motivation as the ability to move people toward a
specific goal.
Motivation is divided
into two categories: intrinsic and extrinsic.
Intrinsic motivation is defined as the subjective satisfaction and
pleasure that drives people (Chun, 2012). This type of incentive
is intrinsic, and the source is in the nature of the work. In an organizational setting, intrinsic
motivation comes from the desire to achieve set goals and objectives.
e.g.:-
1 Self-confidence 2 Interest and
curiosity influence performance 3 Classroom anxiety 4 Sense of accomplishment and employee
performance 5 Sense of responsibility 6 Contribution to society
In contrast, extrinsic motivation is defined as being tied to external
factors, such as
1
Promotion 2 Financial
reward 3 Good salary 4 Job security
5 Recognition by colleagues and society 6 Employeess' relationship
with colleagues 7 Total number of
employees 8 Facilities and their influence 9 Performance appraisal
10 Professional development 11 Participation in decision making 12 Administrative policies
13 Nepotism
Theories such as Maslow's
hierarchy of needs, Herzberg's two-factor theory, Locke's goal- setting theory, and Adams' equity theory
have been formulated to determine the role of
motivation in the organizational environment (Levitt, List, Neckerma and
Sadoff, 2016). These have established
the relationship between motivation and its influence on behavior. In Insurance
companies, motivation demonstrates the desire to achieve the organizational
goals.
IMPORTANCE OF MOTIVATION
Motivation is primarily related to the achievement of goals. Organizations that consider various aspects of motivation are able to
improve the performance level of their employees. Aspects of motivation
such as reward and punishment influence morale.
A
study conducted by Levitt, List, Neckermann, and Sadoff (2016) showed the role motivation plays in influencing a team's
productivity. It became clear that motivation directly affects the desire to effectively complete a given task within the allotted
time. When academic investments were combined with
motivational aspects, overall performance and
employee morale improved. A quantitative study conducted by Feather
(2005) also confirmed the role of
motivation. The study looked at 1,000 professionals and found
that 54% of professionals were not adequately motivated, resulting in
incomplete tasks and employees not completing their regular
duties effectively.
When employees are not motivated,
they can become stressed and disinterested in completing their assigned tasks. Employee turnover is also associated
with lower motivation. Lower turnover affects
performance and productivity. Motivation cannot be ignored as it is associated
with improved employee performance and productivity. Individual motivation is associated with the desire
to improve an employee's performance with minimal supervision.
HOW TO ARE PEOPLE MOTIVATED?
Presently, a portion of
foundations have recognized that privileged inspirational knowledge motivates personnel to fulfill their
obligations. Several establishments have recognized the significance of personal consideration and are concentrating on
unique inspiration by taking away the
opportunity for staff to address them alone. This makes them feel more valued.
To know how people are motivated, some theories are mentioned below
- Maslow's theory
- Herzberg's two-factor theory
- Locke's theory of
goal setting
- Adams' theory
of justice
In conclusion, it is essential for
insurance companies/institutions in NCR-Faridabad to study the motivation of their employees in order
to identify the effective motivational factors. This will ultimately lead them
to improve their performance and achieve their
goals.
OBJECTIVES
The objective of this study is to
examine the existing factors for motivating employees in insurance companies in NCR-Faridabad region and their impact on
employee performance. A review of
the available literature revealed
that there is limited research on motivational factors and their impact on employee performance in the
insurance sector. Consistent with the stated purpose
of the study, three specific
objectives are presented below
- To identify the factors that influence employee
motivation.
- To examine their impact
on performance.
- To make suggestions and recommendations to policy makers.
SCOPE OF THE STUDY
This study will examine the role
of intrinsic and extrinsic factors in motivating employees in the insurance sector in NCR-Faridabad. In
addition, the study will examine the factors that affect the performance of employees and whether there is a
positive or negative influence on performance.
This study will make several
contributions to the areas of motivation and performance at both theoretical and practical levels. It
will be useful for managers responsible for reviewing and updating policies and legislation. The
research findings suggest that managers in insurance companies should use various tactics, strategies, and measures
to motivate employees. This study
examines the effects of various factors at different levels of employees and
highlights different aspects needed
to motivate different employees to improve their performance. To specify the nature of employee motivation
and performance, human resource managers (HR)
are recommended to highlight the suggestions received
from the company's
employees. These
recommendations will help to develop systematic motivational strategies to
improve employee performance.
RESEARCH METHODOLOGY
This chapter presents the data
collection and analysis methods used in the study. Ethical considerations and the validity and
reliability of the information provided are also discussed. The first section of this chapter begins
by examining the role of the motivational system in improving the performance of academic staff in Saudi higher
education. To achieve this goal, numerous empirical
studies were used to answer
several questions. First,
the study
investigates the factors that affect the motivation of employees in
insurance companies. Second, the study aims to define the
motivational measures that affect the job performance of employees in insurance companies. Using an online
questionnaire, the study collected data on
gender, age group, and
work motivators.
Research Design
The research relies on an
inductive approach that starts from specific observations derived from general theories. Al-Eisa and Smith
(2013) state that the inductive method is appropriate for a small sample size in a specific context. The study uses
a questionnaire design that takes into
account the different responses of the employees involved in the study. This
study includes a population of 300
people (170 men and 130 women). The research design used in the study mainly consists of primary and
secondary data that will be integrated and analysed. The secondary data is primarily obtained from the literature
review, in which numerous theories and principles related
to motivation are mentioned. The literature review and conceptual framework will work together to
define the meaning and concepts of motivation,
inspiration in Saudi universities, and the importance of motivation.
Secondary data will be collected
through questionnaires and interviews to define the role of motivation in
improving academic performance of employees.
DATA COLLECTION
The required data are collected
using questionnaires. This method of data collection is called triangulation research. The use of surveys
is one of the most commonly used methods of data collection. This approach
saves time because,
unlike formal interviews, informants can answer the questionnaire questions at their
own pace. According to Eskildsen,
Kristensen, and Westlund
(2004), questionnaire surveys
are the most appropriate method of data collection
in this case. It is easy to collect information from specific groups of people
by simply counting the people with
the desired characteristics. In the study, the main reason for designing the questionnaire is to identify
the characteristics of the employees and the factors that affect their performance and productivity at work. Gender
is not the main focus in the design of the
questionnaire because the study does not focus on gender diversity.
Findings and Implications
Analysis of the data collected and evaluated reveals
a number of associations and correlations.
The sample size required 285 participants; however, my sample size is 300 (170 men and 130 women). The confidence
interval for this study is 5%. The actual value of the data is likely to be within 5% precision. Most participants were
between 30 and 39 years old, and the
smallest age group was 50-59 years old. Other participants were between 20and
29 years old. Currently, there are a
number of job titles that were included in the study. This information was taken from the first section of the questionnaire.
SUGGESTION FOR
FUTURE RESEARCH
Future surveys should be conducted
with multiple insurance carriers to ensure the collection of reliable and valid data. The centrality
of the data collection method limits the results of the study. Future studies should also address the strong regional
focus by focusing on working beyond
this limitation by examining a large and widely dispersed population. A larger
and more random sample size will
reduce the limitations associated with the regional focus. The topic of motivation can be re-examined
with a focus on intrinsic motivation. This would be valuable because intrinsic motivation has not been focused on by
most researchers, who believe that
extrinsic motivations are the primary source of motivation. Most importantly, future studies and research should focus
on establishing a more solid general evidence base. This dissertation has provided an introduction to various aspects of motivation. Essentially, it
has defined intrinsic and extrinsic
motivational factors and their influence
on employee performance. It is clear that the issue
of motivation cannot be ignored as it directly affects the production and productivity of
employees. Employees should be at a point where they feel a balance
between input and output so that they can perform
at their best in the tasks assigned
to them. Companies should evaluate their employees to understand what
types of motivation can be applied.
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