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Employee Motivation Factors in an Organisation


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Motivating employees to perform well is important for business productivity; researchers have linked motivation to increased persistence, performance, and productivity. Feedback from performance evaluations, if constructive, can affect future motivation and performance (Jawahar, 2010). Researchers have discovered that morale, motivation, and performance are positively affected if employees have significant input into their evaluation. Researching what motivates people has been going on for decades; it is a complex topic because not all employees are motivated by the same factors so it is difficult to find one theory that covers all situations. Jay (2010) believed that in order to be motivators, managers must first be motivated and suggested that they can increase their own motivation by staying connected to their work, knowing the requirements for improvement, finding a good support system, and maintaining a balance between their home and their work life. One rationale for conducting performance evaluations is that the results often form the basis for decisions regarding training and development, as well as promotions and compensation. During the early twentieth century, emphasis in PM focused on measuring the work of individuals with the objective of improving their efficiency (Martinez & Radnor, 2007). Pay incentives were usually offered to individual workers in order to indicate the importance of good performance. Performance management can be an effective tool for employers to help them improve performance (Nankervis & Compton, 2006). According to AsmuB (2008), company executives are increasingly looking for ways to improve internal communication in order to increase organizational effectiveness. The performance evaluation process can take many forms and the form used may be significantly related to whether the feedback obtained through the process does increase motivation and improve employee performance. Employee motivation significantly affects the business achievement of the companies. Personal loyalty to the companies should not be expected. With the exception of financial packages, the way companies recruit or retain talent employees is very important. It is vital to create a good environment to motivate the employees.



Executive Summary1

Holiday Inn1

Revenue and Turnover2

Location of Holiday Inn Victoria Sheffield2

Background of the Problem3

Problem Statement4



Performance Management Systems10

Performance Evaluation Methods12


Research Questions16


Royal Victoria Holiday Inn Sheffield Case Study18

Training and Development19

Study Design and Rationale20

Sampling Methods, Population and Access21

Data Collection Methods22


Data Analysis23

Quality Assurance24

Ethical Issues25




Appendix A33

Appendix B36


Executive Summary

Performance evaluations are one means that managers use to increase employee motivation because motivated employees are likely to perform better (Brencic & Norris, 2010). In some cases, the performance evaluation process may not increase motivation due to the stress it engenders for both the employer and the employee (Messmer, 2007; Nickols, 2007; Vardi, 2001). The process may create stress because it often focuses on negative aspects of performance and may not offer employees development to change these negative aspects (Nickols, 2007). The purpose of this study was to examine the effect of one method of performance evaluation-the forced distribution (FD) method on employee motivation in a manufacturing environment. The FD system often creates stress because ...
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