How can intrinsic motivation contribute towards the increase in employee performance in the retail sector?

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TABLE OF CONTENTS

LITERATURE REVIEW1

1.1.Employee Motivation1

1.2.Intrinsic Motivation3

1.3.Theories of Motivation4

1.4.Intrinsic Motivation and Performance6

1.5.Highly Motivated and Engaged Employees Positively Impact Firm Performance8

1.6.Relationship between Motivation and Performance9

1.7.Intrinsic motivation and the Performance of Employees in the retail sector11

Conclusion12

Questionnaire20

LITERATURE REVIEW

This chapter provides a literature review of the relevant studies that have already been conducted before by other researchers. In order to understand the impact of intrinsic motivation on improving the performance of the employees working in the retail sector, this chapter aims to discuss the concept of employee motivation and various theroies related to it.

1.1.Employee Motivation

To be successful at work, individuals need to be productive. To be productive, environmental factors such proper equipment and abilities must be present, but employees must also possess some level of motivation to perform tasks correctly. Motivation is the degree to which an individual wants and chooses to engage in certain specified behaviors. Both elements, the wanting and choosing, must be present for motivation to be enacted. For example, a person may want to start an exercise program or a vacation fund, but until he or she takes the initiative to exercise or save money, he or she is not truly motivated (Deleon and Taher, pp. 401, 1996).

One of the most studied, but least understood, theories of motivation is Maslow's Hierarch Theory of Needs. Although frequently oversimplified and often misunderstood, Maslow created what is perhaps one of the most recognised, classic explanations of motivation with his hierarchy of needs. This hierarchy is set up like a pyramid as each level builds on the previous level(s) so once one need is fulfilled other needs come into play. The model does not say that the needs disappear completely or go away as some who explain the model believe. The needs operate so that they are never satisfied completely and the needs come in different degrees of urgency (Vecchio, pp. 470,1981). The needs, building from bottom to top are physiological needs, safety needs, love needs, esteem needs, and self-actualization needs. The bottom four needs, all except self-actualization, are considered D-needs (Deficit). If a person does not have enough of something, there is a deficit-a need is felt, but once the need is fulfilled, that need ceases to be motivating. D-Needs are in-born (Smyth, 2005, pp.19).

Starting at the bottom of Maslow's pyramid, the physiological need includes the need for having adequate food, water, and vitamins, engaging in activity, getting rid of waste, maintaining a comfortable temperature, having sex, and avoiding pain. As these needs are mostly fulfilled, the second layer of needs, safety and security comes into play. This includes finding safe circumstances, stability, protection, structure, and order. Love and belonging needs, the third level, involve feeling included, having friends/significant others, and wanting children. Esteem needs are broken down further into lower and higher esteem needs. The lower esteem needs are the need for others' respect, including status, glory, attention and dignity; the higher esteem needs are the need ...