01. Introduction

Figure 1

The concepts of employee motivation is described as the enthusiasm, commitment, strength level, and sum of creativity that an employee earns to the business daily (Souders, 2021). In another word, motivation is a sociological and psychological concept as it links to human behavior and human connections (Mitchell, 1982). It is the more basic and all-pervasive idea of psychology. Motivation correlates basically to human needs, desires, and expectations (Souders, 2021). Motivation is close to the concept of directing or leading. Motivating employees implies encouraging humans to get higher initiative and interest in the work allowed. It is the art of making things done willingly by others (Souders, 2021).

Employees are the more significant factor in the success and defeat of any business organization. Motivational factors perform an essential part in improving employee job satisfaction (Souders, 2021). Satisfied employees in results can support increasing organizational performance. In this blog, motivation as one of the very important portions potentially according to the review of employees will examine in connection to the banking sector. It is valuable for both the private and public sectors (Varma, 2018). 

Various kinds of motivation are frequently named as being either extrinsic or intrinsic:

• Extrinsic motivations are those that start from outside of the employee and frequently include rewards such as prizes, money, social recognition, or praise (Triola, 2021).

• The concept of intrinsic motivation is the motivation that starts from within the employee, such as performing complex crossword puzzles purely to solve the problem of personal satisfaction (Triola, 2021).

According to psychologists, the concept of self-realization is a truly personal thing (Varma, 2018). It is human primary physics to nurture something and understand it prosper, it applies to the greatest things humans do in their day-to-day life. Whether it is about developing employee selves or their organization’s achievement (Dugguh, 2014). Motivated employees do not need to explain how to arrange work. They are proactive and eager to take on other responsibilities. They are innovative and positive people (Dugguh, 2014). Therefore, motivation plays a more important role and ensures that employees remain effective and provide the most reliable service to the organization. In addition, a high level of motivation will lead to a reduction in employee turnover (Policy, 2021). Motivation avoids disputes and non-cooperation and draws unity, unity, and cooperative expectation among employees (Steers and Shapiro, 2014). For this, effective communication, a fitting appreciation of the job done, and positive encouragement are important and helpful. This builds a favorable situation because of which employees take more attention and lead in the task and perform their duties effectively (Steers and Shapiro, 2014). Motivation is a method of generating attraction for the job.

The banking sector in Sri Lanka, which includes Licensed Commercial Banks (LCBs) and Licenced Specialised banks (LSBs), governs the financial system and accounts for the largest share of the total assets in the financial system. Bank perform an important function in Sri Lanka’s financial system because they participate in the overall economy’s demand for liquidity and at the same time change the risk characteristics of assets (Lanka, 2018).

As per Badiu & Susanu (2010) from past studies, banking is the oldest of all financial service jobs. In more countries, after a comprehensive history that involved a totalitarian government, banking regulations have been widely deregulated to open up the private sector domestic entities and also foreign industry to access into the local entities. This deregulation has caused intense competition in the industry as evidenced in the case of higher commercial banks in Japan in the 1980s (Koji,2004) and Sri Lanka at today. Hence the significance of having a well-managed, skilled, and motivated workforce has become a vital component, in the banking sector.

Figure 2. Application of five forces model to the banking industry of Sri Lanka.

Source:  (Porter, 2008)

These factors have increased severe completion among banks and thus like in any other counties, motivating and retaining employees is a crucial concern for the banking sector in sri lanka.

List of References:

Central Bank of Sri Lanka (2018). https://www.cbsl.gov.lk/en/financial-system/financial-system-stability/banking-sector.

Dugguh, S.I. (2014).Using Motivation Theories to Enhance Productivity in Cement Manufacturing Companies in Nigeria: An Overview. The International Journal of Social Science, 20 (1).

Mitchell, T. R. (1982). Motivation: New directions for theory, research, and practice. Academy of Management Review, 7, 80–88

Steers RM and Shapiro DL (2004) The future of work motivation theory. Acad Manag Rev 29(3):379–387

02. Maslow’s Hierarchy of Needs Theory

Maslow regarded human needs as a hierarchy, with the lowest requirements at the bottom and the highest needs at the top. When one set of wants is met, it no longer serves as a motivator; instead, the hierarchy's unmet demands serve as a source of drive (Chartered Management Institute, 2012). To explain these equilibrium, I'll look at Maslow's hierarchy of needs in further depth in this blog.

Figure 1: Maslow hierarchy of needs.

Source: (McLeod, 2018)

Maslow's ideas began as generic descriptions of human behavior, but they immediately became a substantial contribution to working environment motivation theory, and they are being utilized by managers to know, anticipate, and affect employee motivation today (Chartered Management Institute, 2012). According to Maslow, five major need categories apply to human beings:

1.    Physiological needs

This relates to biological wants, which are the most powerful, because if a person is denied of all other needs, such as the need for oxygen, food, drink, and a reasonably steady body temperature, they will perish. These are basic biological requirements for people to function at their best biologically (Chartered Management Institute, 2012). 

2.    Safety Needs

When all physiological requirements are met and thoughts and behaviors are no longer controlled by them, the need for security can become active. According to the notion, this is the second most significant need that a human has (Chartered Management Institute, 2012).

3.    Social Needs

According to Maslow, humans want to alleviate emotions of loneliness and alienation by giving and winning love, affection, and a sense of belonging (Chartered Management Institute, 2012). 

4.    Esteem Needs

The requirements for esteem might become dominant as soon as the first three levels of Maslow's pyramid are met. These include both self-esteem and the esteem that one receives from others (Chartered Management Institute, 2012). 

5.    Self-actualization Needs

Self-actualization, according to Maslow, is a person's need to be and achieve what they were "born to do." "A musician must compose music, and a poet must compose poetry." These requirements manifest as indicators of restlessness (Jerome, 2013).

2.1. Application of Maslow’s Hierarchy of needs theory to a commercial bank in Sri Lanka.

Banks are service-oriented businesses, they are highly customer-focused. Banking items are nearly equivalent to one another within the business and provide about the same value to customers. Individuals that supply services that are unique to some degree to one person to another have a competitive advantage (American Banker, 2018).

A positive organizational culture promotes employee work satisfaction and, more importantly, avoids the types of dangerous activities that led to the financial crisis. Banks, on the other hand, have the concept of making their employees happier at their disposal as a tool for boosting the image of their firm (American Banker, 2018).

According to Maslow's psychology theory, once a person's basic psychological and safety requirements are addressed, the idea states, he or she will develop a need to belong, then gain respect, and finally realize their full potential (McLeod, 2018). For example, while top management is in charge of ensuring that a bank's process for opening current accounts is efficient and uses cutting-edge technology, a bank employee will almost certainly become engaged at some point during the process.

By observing the culture of one of Sri Lanka's most prominent commercial banks, it is clear that the processes within its culture place higher importance on the organization's "People." Employees are referred to as "Family" in the culture, and they feel a sense of connection to the institution. People who feel like they have a place in the world are generally happier (Hatton National Bank PLC, 2018). Happier people are more likely to do their jobs with enthusiasm and to transfer that happiness to others, especially consumers. Happy people are also less inclined to change jobs.

According to Maslow's hierarchy of needs theory, Banks has practically completed all components of the theory to encourage its personnel to achieve its aims. For its employees, this is enhanced with both monetary and non-monetary benefits. For example, to improve the living standards of their employees and their families, the bank offers low-interest loan schemes such as housing loans, furniture loans, consumer loans, pilgrimage loans, educational loans, motor vehicle loans, funeral loans and bicycle loans (Hatton National Bank PLC, 2018).

As a result, it is clear that commercial banks in Sri Lanka have a Bank's culture in which their employees are more engaged and happy. Whereas the bank claims to be one of the island's major organizations, has received numerous accolades from reputable authorities, and thrives in the sector due to its competitive benefits where "people" are engaged.

 

List of References 

American Banker (2018) what banks can learn from Maslow’s hierarchy of needs,[online] Available from https://www.americanbanker.com/opinion/what-banks-can-learn-from-maslows-hierarchy-of-needs [Accessed 30 September 2018].  

Chartered Management Institute (2012) Abraham Maslow the Hierarchy of Needs Thinker. Corby, UK: Chartered Management Institute.

Explore Psychology (2018) Maslow’s Hierarchy of Needs, [online] Available from https://www.explorepsychology.com/maslows-hierarchy-of-needs [Accessed 30 September 2018].

Hatton National Bank PLC (2018) corporate web site,[online] Available from https://www.hnb.net/about-the-bank/our-profile [Accessed 30 September 2018].

Jerome, N. (2013) ’Application of the Maslow’s hierarchy of need theory; impacts and implications on organizational culture, human resource and employee’s performance’. International Journal of Business and Management Invention 2013: Department of Economics Taraba State University Jaling, Nigeria 2 (3) pp.39-45.

McLeod, S. (2018). Maslow’s Hierarchy of Needs. 3-10-19. Simply Psychology.

03. Theory X and Theory Y

The goal of any company is not only to make money, but also to keep and grow through improved employee performance. While McGregor proposed his well-known X and Y theories, the X and Y theories are still widely used in the field of motivation and management (Schein, 2011). Most managers in the organization employ Theory X, which leads to poor results, whereas teachers and enlightened managers use Theory Y, which leads to improved performance and outcomes, as well as opportunities for people to develop (Kayode, 2013).

Theory X managers believe that their employees will avoid taking on new responsibilities, are lazy, and would rather just get by. According to Theory X, workers must be frightened and controlled through punishment (Allio , 2009). To bolster these claims, Theory Y assumptions are proving to be more beneficial to decision-making and, as a result, to the business (Russ, 2011).

Figure 1

Source: (Otokiti, 2006)

Managers in Theory X are focused on data and figures. They are uninterested in human problems. As a result, appealing to their sense of morality or humanity is illogical (Mgbere , 2009). It is prudent to keep promises and obligations (Moore K., Cruickshank M., Haas M.,, 2006). Even if an employee is given an impossible job or deadline, a theory X manager should be helpful rather than negative, giving the reasons why it is unrealistic (Morden, 2004).

The Theory X supervision style is based on a pessimistic view of human nature and assumes the following (Kayode, 2013):

·         Work is something that the ordinary individual despises and will try to avoid if at all feasible.

·         Because people dislike working, they must be coerced, instructed, or threatened with a penalty in order to force them to do it.

·         The person favors to be guided, avoids taking on responsibility, is rather unambitious, and prioritizes security.

People can enjoy work while exercising significant self-control given favorable conditions, according to the assumptions of theory Y (Peterson , 2007). Theory Y managers provide greater results and performance, allowing individuals to develop and evolve (Schein, 2011).

The Theory Y supervision style assumes the following and is based on a more positive understanding of human nature (Kayode, 2013):

·         Work, like leisure and rest, is a natural part of life. People desire to be self-directed and self-controlled, and they will work hard to attain organizational goals that they believe in.

·         Positive incentives can drive employees, and they will work hard to achieve corporate goals if they believe they will be rewarded for it.

·         Under the right circumstances, the common individual not only accepts but actively seeks out responsibility.

Thus, Theory X portrays a pessimistic view of employee nature and behavior at work, whereas Theory Y portrays an optimistic view of employee nature and behavior at work.

3.1. Theory X and Theory Y Implications in the Banking Sector

All organizations have people, and it's crucial to understand what motivates them. As a result, it's crucial to figure out what motivates bank employees.

Today, Theory X is used by a very few number of banks. Theory X advocates for a high level of control and oversight. Employees are averse to banks changes, according to this statement. As a result, it discourages innovation.

Theory Y strategies are used by a lot of banks. According to Theory Y, managers should develop and foster a work climate that allows individuals to exercise initiative and self-direction. Employees should be provided an opportunity to contribute to the success of the bank. In a bank, Theory Y promotes decentralization of authority, cooperation, and participatory decision-making. Theory Y investigates and identifies the various ways in which an employee might make a substantial contribution to a bank. It aligns and matches the needs and aspirations of employees with the needs and aspirations of the enterprise.

List of References

Allio, R.J. (2009) “Leadership-The Five big ideas”, Strategy & Leadership, Vol.37, No.2, pp.4-12

Moore K., Cruickshank M., Haas M., 2006, “Job satisfaction in occupational therapy: A qualitative investigation in urban Australia”, Australian Occupational Therapy Journal, 53 (1) (2006), pp. 18-26

Morden, T. (2004) Principles of Management. 2nd edn. Aldershot: Ashgate Publishing Limited.

Kayode, O. (2013)” APPLICATION OF THEORY X AND Y IN CLASSROOM MANAGEMENT’, International Journal of Education and Research, Vol.1, No.5.

Peterson T.M.  ,2007, “Motivation: How  to increase  project team  performance”, Project Management  Journal, 38 (4) (2007), pp. 60-69.

Russ, T.L. (2011) “Theory X/Y assumptions as predictors of managers’ propensity for participative decision making”, Management Decision, Vol.49, No.5, pp.823-83

04. Alderfer's ERG theory

ERG is a motivational framework aimed at determining what factors affect human behavior. It's a content-based strategy that addresses the underlying factors that lead to a person's behavior (Ivancevich, J., Konopaske, R., &Matteson, M. T, 2008).  Such knowledge will aid practitioners who wish to better understand and improve workplace performance. ERG can be used to explain and forecast professional issues, relationship paradigms, and personal development decisions. It is based on Maslow's Hierarchy of Needs (Jane , 2012).

There are three categories of basic requirements, according to Alderfer's ERG theory: existence (E), relatedness (R), and development (G), as denoted by the word ERG. Maslow's physiological, social, and self-actualization needs are represented by these three groups (Jane , 2012).

Existence needs : Our basic material necessities for survival are referred to as existence needs. Physiological needs (such as oxygen, food, drink, and shelter) and safety-related needs are among them, according to Maslow ( health, secure employment, and property).

Relatedness needs : The necessity of maintaining interpersonal ties are reflected in relatedness needs. These requirements are focused on interpersonal relationships and correspond to Maslow's levels of love/belonging-related needs.

growth needs : Finally, our innate desire for personal progress is described by growth needs. These requirements correspond to the rest of Maslow's esteem-related needs as well as the self-actualization requirements.

Multiple needs are active at the same time, according to the ERG theory, and these needs do not exist in a hierarchy, but rather on a continuum (Spector, 2003). Alderfer's ERG idea is depicted in Figure 1.

Figure 1: Alderfer's ERG theory

Source: (Spector, 2003)

Maslow thought that if a person can meet a need, they would continue to do so. However, according to Alderfer (1969), a person will forego such a desire, improvise, and concentrate on a more basic need. Alderfer's ERG theory has a more intuitive appeal than Maslow's hierarchy of needs theory and is more directly applicable to employee motivation. It also has more empirical backing (Schultz, D. P., & Schultz, S. E., 1998).

4.1. Employee Motivation in the Banking Sector and Alderfer's ERG Theory

We've talked about how motivation drives human behavior in order to reach some level of achievement. In the banking industry, the success of the bank is largely determined by the employees' dedication. According to Alderfer's ERG theory, an employee expects to be met on three basic needs, and when each need is met, it functions as a motivator to meet other needs.

Managers should remember that not everyone is motivated by the very same elements. It depends on the position of the bankers in the hierarchy. The needs hierarchy is likely to resemble the bank's hierarchy in several ways: those at the top are more likely to be motivated by self-actualization/growth needs than by survival requirements.

Employees will be dissatisfied if the bank fails to meet their necessities. For example, one of these basic requirements is safety, and if employees do not feel safe in their workplace, they have no room to be motivated. Morever, all bankers desire to have good relationships. It will be tough for employees to feel motivated if they do not get along with their employer. Similarly, if bankers have a negative relationship with their co-bankers, their motivation is likely to be poor. Not only that, bankers have a desire to advance their careers. Bankers will find it difficult to keep motivated if they work hard year after year and everything remains the same. Bankers require expansion. This could include recognition of their accomplishments, peer regard, wage raises, additional responsibilities, or enhanced peer respect.

List of references

Ivancevich, J., Konopaske, R., &Matteson, M. T.(2008). Organizational Behavior and Management(8thed.). New York:McGraw-Hill Higher Education.

Jane R. 2012. The Development and Use of the Theory of ERG, Emerging Leadership Journeys, Vol. 5 Iss. 1, pp. 2- 8.

Schultz, D. P., & Schultz, S. E. (1998). Psychology and work today: An introduction to industrial and organisational psychology (7th ed.). Upper Saddle River, NJ: Prentice Hall.

Spector, P. E. (2003). Industrial and organisational psychology: Research and practice (3rd ed.). New York, NY: Wiley.

 

05. Herzberg's Two-factor Theory

Herzberg defined two factors as motivation and hygiene factors that determine employees' working attitudes and level of performance. Factors that increase employee job satisfaction are motivational factors and, external factors that prevent employee dissatisfaction are hygiene factors (Kian, 2013).

According to Herzberg (1968), only removing the source of discontent (through hygiene considerations) just wouldn't result in a condition of satisfaction (Islam, R; Ahmad Z H, 2008).  The two-factor theory is similarly connected to Maslow's hierarchy of interests and has added other portions to measure how employees in the workplace are motivated. This theory shows that humans do not make an effort to meet the lower-level needs but prevent them from becoming dissatisfied (Kian, 2013). In order to motivate employees, management must focus on providing high-level requirements.

Managers are responsible for creating an environment that allows employees to reach their maximum potential. Failure to create such an environment might raise employee dissatisfaction, leading to reduced performance, lower job satisfaction, and increasing departure from the company (Kovach, 1995). Employers make the most of these hygiene factors to create a work environment that makes it apply for employees to work. Employees will be free of unpleasant external working conditions that will banish their feelings of dissatisfaction when all of these external factors are met, but they will remain neutral in terms of satisfaction and motivation; however, when employers fail to meet employees' hygiene factors needs, employees' job dissatisfaction will originate (Weerasinghe, 2017).

5.1. Applying the theory

There are different ways to adapt banks policy to include Herzberg's concepts and introduce new regulations that improve workplace hygiene and motivation. Banks consider as service sector financial institutions. While bankers' responsibilities vary based on the structure of different financial organizations, their primary responsibility is to engage closely with clients in evaluating and satisfying their banking needs. Here are a few examples:

5.1.1. Increase employee autonomy. Employees will have a greater feeling of success in their work if they believe they are responsible and autonomous. Autonomy is a strong motivator, and the more a bank can encourage people to take ownership of their job responsibly, the more engaged the workforce will be. Having a smaller number of micromanagers in the bank may be inconvenient, but it is unlikely to jeopardize the bank's success. Having a bank full of micromanagers and, as a result, minimal employee liberty poses a far more serious threat to the bank's future.

5.1.2. Provide feedback. It's critical to implement meaningful and valuable feedback to employees to let them understand how they're performing. Giving valuable criticism or praise to a team member should be very simple if an employer has taken the time to create trusting interpersonal ties in the workplace. Giving staff feedback on how they may improve is a crucial step in boosting their drive (KPMG, 2020). For example, in the banking sector in Sri Lanka, The development in ICT has enabled banks to give more diversified and convenient financial services, even without adding physical branches. Positive feedback in this regard has been a great boost to banking employees and customers under this covid 19 pandemic situation.

5.1.3. Improve the working environment. Implementing a reliable, safe, and aesthetically pleasant environment is one of the most manageable ways to improve work hygiene. The banking sector is arranges training with new employee onboarding, management development, new ideas for a workgroup, team development, and how to produce a new computer system.

5.1.4. Employees should be polled. Conducting a survey is an excellent approach to get a sense of what inspires staff in the bank. Checking in with banking employees will provide managers an idea of what areas they need to work on and which job elements they prefer over others.

                                       

List of References 

Dissanayake, D., & Wickremasinghe, M. (2011). An empirical study on the impact of Hygiene and Motivation factors on job satisfaction of Bank Executives in Western Province, Sri Lanka. 1-21.

Kovach, K.A. (1995), “Employee motivation: addressing a crucial factor in your organizationalperformance”, Employment Relations Today, Vol. 22, pp. 93-107.

KPMG.2020. [online] Available at: <https://assets.kpmg/content/dam/kpmg/lk/pdf/2020/11/sri-lanka-banking-report november-2020.pdf>[Accessed 11/2020].

Rafikul Islam & Ahmad Zaki Hj. Ismail (2008). Employee Motivation: A Malaysian Perspective, International Journal of Commerce and Management, Vol. 18 (4), pp. 344-362

Tan Shen Kian, T.S. 2013, HERZBERG’S TWO FACTORS THEORY ON WORK MOTIVATION: DOES ITS WORK FOR TODAYS ENVIRONMENT?,  Global Journal of Commerce and Management Perspective, G.J.C.M.P.,Vol. 2(5):18-22

Weerasinghe, IMS. 2017, Factors Affecting to Job Satisfaction of Banking Employees in Sri Lanka. Business and Management Horizons, 2017, Vol. 5, No. 1

06. Motivation Incentives

One of the primary functions of senior management in every firm is to increase organizational productivity. Corporate culture, training and development, communications, systems and tools, motivation and incentives, control and reporting, structure, planning and programmers, staffing, process, strategy, goals and objectives are all factors that influence and determine organizational productivity (Cording, et al., 2014). However, managers believe that employee motivation is critical (Becker, et al., 2018).

All individual has his or her wishes and desires and they always try to fulfill their wishes. It is not enough for a person to be content on a materially; non-material factors are just as important, and an employee must be satisfied on both levels (Bonner, et al., 2000). His pay, incentives, allowances, job stability, and other benefits are considered material. While non-material factors such as leaves, pleasant working conditions, and good communication among coworkers and upper management are important, all of these factors have a role in employee motivation ( Mamdani & Minhaj, 2016).

Employees are usually the ones that determine an organization's fate, therefore it makes sense to learn how they might be motivated. Employee motivating incentive programs are the most widely used method in firms when it comes to employee motivation ( Mamdani & Minhaj, 2016).

The goal of a motivation plan is to reward productive achievement, reinforce positive behavior and stir employee interest ( Mamdani & Minhaj, 2016). Performance and how it could be enhanced is central to the concern of businesses and organizations, therefore many organizational experts, are very much involved in various schemes and methods linked to performance and its increased incentives are one of those methods used in workplaces to stimulate employees in order to get the desired performance (Aziri, 2019). Although money is thought to be the universal motivator, various financial and non-financial incentives and advantages create a unique relationship between the firm and its personnel. Employees perform specific activities and meet targets in exchange for monetary and other incentives (Bonner, et al., 2000).

6.1. Monetary incentives- Those incentives gratify subordinates by providing them with monetary benefits. Money has long been acknowledged as a primary source of meeting people's needs (Garbers & Konradt, 2014). Money can also be used to meet social demands by acquiring a variety of material objects. As a result, money satisfies not only psychological but also security and societal requirements. As a result, various wage plans and bonus programs are implemented in many firms to inspire and stimulate workers (Garbers & Konradt, 2014).

6.2. Non-monetary incentives- In addition to monetary incentives, non-monetary incentives may be used to assist employees in meeting their ego and self-actualization needs. The term "non-monetary incentives" refers to any inducement that cannot be measured in monetary terms. When managers wish to address the psychological needs of their employees, they use non-monetary incentives ( Mamdani & Minhaj, 2016). Non-monetary incentives can take the following forms (Shaw & Gupta, 2015):-

·         Security of service

·         Praise or recognition

·         Suggestion scheme

·         Job enrichment

·         Promotion opportunities 

6.3. Motivation Incentives in Banking Sector

Bankers in any bank require something to keep them motivated. Most of the time, a banker's wage serves as a motivator; however, various incentive packages and programs are required to keep him or her working for a bank consistently. A banker must be motivated to work for a bank; otherwise, the quality of that employee's work, or all work in general, will suffer. In today's competitive era, it is necessary and mandatory to provide various desired benefits and incentives to bankers in order to keep their target achievement on track.

As a result, incentives can help a bank achieve its objectives. Some of a bank's incentive requirements include:

1. To improve productivity

2. To run a stimulus activity

3. To improve commitment in job performance

4. To mentally satisfy a banker

5. To develop the behavior and object of bank's subordinate towards job improving efficiency

6. To instill a sense of zest and enthusiasm for work

7. To make the most of a banker's abilities so that they can be fully utilized and exploited in order to achieve personal and bank's objects.

List of Reference

Aziri, J., 2019, Employee Motivation Incentives and Their impact on the Organization's Productivity. Texila International Journal of Management, Volume 5, Issue 2, Aug 2019

Becker, T.E., Kernan, M.C., Clark, K.D. and Klein, H.J., 2018. Dual commitments to organizations and professions: Different motivational pathways to productivity. Journal of Management, 44(3), pp.1202-1225.

Bonner, S. E., Hastie, R., Sprinkle, G. B., & Young, S. M. (2000). A review of the effects of financial incentives on performance in laboratory tasks: Implications for management accounting. Journal of Management Accounting Research, 12(1), 19- 64.

Cording, M., Harrison, J.S., Hoskisson, R.E. and Jonsen, K., 2014. Walking the talk: A multitask holder exploration of organizational authenticity, employee productivity, and post-merger performance. Academy of Management Perspectives, 28(1), pp.38-56.

Garbers, Y &  Konradt, U, 2014. The effect of financial incentives on performance: A quantitative review of individual and team‐based financial incentives. Journal of occupational and organizational psychology, 87(1), pp.102-137

Mamdani, K.F. & Minhaj, S., 2016. EFFECTS OF MOTIVATIONAL INCENTIVES ON EMPLOYEES’ PERFORMANCE: A CASE STUDY OF BANKS OF KARACHI, PAKISTAN. South East Asia Journal of Contemporary Business, Economics and Law, Vol. 9, Issue 2 (Apr.) ISSN 2289-1560

07. Job satisfaction and motivation

Job satisfaction and motivation are critical in the workplace, especially in the twenty-first century, since workers have grown more aware of their rights in the workplace as a result of education (Baah, 2010). According to Fredrick Hertzberg's Job Satisfaction model, there are elements both inside and outside an organization that influence how satisfied employees are. The structure of the organization, the culture of the organization, and the internal politics that exist within the organization are all examples of this (MULLINS, 2005).         

7.1. Job satisfaction

Job satisfaction refers to a person's good attitude about his or her work (Daft , 2003). An employee that is content with their employment feels fulfilled while at work. It could, for example, be linked to a quantitative or qualitative sense of personal accomplishment (MULLINS, 2005).

7.2. Motivation

Motivation is explained as "a process of decision-making through which an individual selects desired objectives and initiates the behaviors necessary to achieve them" (HUCZYNSKI & BUCHANAN, 1991). The assumptions and attitudes that managers hold about motivation are likely to influence how they use it to encourage and reward their people (Baah, 2010).

7.3. Importance of Job Satisfaction and Motivation in the Banking Sector in Sri Lanka

The banking sector is one of the most important industries in any country for economic growth (Praveena, 2015). Sri Lanka's banking sector is one of the most profitable in the country. In the country, there are two sorts of banks: privately held commercial banks and publicly owned commercial banks. Private Banks are those that are owned and controlled by private boards of directors and investors, whereas public commercial banks are those that operate to meet the needs of clients under the direct supervision of the Sri Lankan Central Bank. There are only few public commercial banks in the country, despite the fact that there are many privately owned commercial banks.

Banks were once seen to be inefficient since their systems were primarily manual and took a long time to complete. However, thanks to technological improvements, Sri Lankan consumers can now execute banking activities without ever having to visit a bank, and depositing and withdrawing cash can be done at any time of day through machines. Nonetheless, the bank's front and back end activities are seen to be tedious and never-ending. Banks' success is determined by how well they manage their customers through great customer service and personalized financial solutions. As one of the most important strategic resources in any bank, creating a sustained competitive advantage through a firm's people is regarded the finest strategy (Praveena, 2015).

The banking sector provides a wide range of services, including accepting monetary savings, providing credit through loans and credit cards, issuing Treasury Bills and Bonds as a form of investment, representing customers in international transactions, and many other custom-tailored services for individuals and businesses. Thus, bank employees are expected to serve customers who could be a company executive, a farmer in need of micro financing, a businessman in need of financial support for his business, an entire business conglomerate in need of an investment for a new building or a new business venture, or a person in need of a vehicle imported from Japan via a Letter of Credit. As a result, the demands that banking workers must meet are diverse, complicated, and frequently difficult. As a result, bank managers must be capable of ensuring that their subordinates are extremely satisfied in their work, as satisfied employees are a critical factor in determining the performance of the banking industry in any area of the world (Awan & Asghar, 2014). Leaders with emotional intelligence competencies are more likely to succeed in the workplace than those without (San & O’Higgins , 2012). Emotional intelligence, a noncognitive skill of leaders, is critical in strengthening and improving work-related behavior and, as a result, employee job performance, which leads to organizational success (Groves, et al., 2008). Understanding that emotional intelligence has a direct impact on employee performance and productivity, on the other hand, may help firms discover the talents and competences that their managers and subordinates demand (Mina & Melika, 2011).

Employees with higher levels of job satisfaction and psychological well-being are predicted to be more efficient and productive in their particular fields of work. Only satisfied staff would remain loyal to their employer and bring in high-value deposits and well-known clients, but unsatisfied employees may not (Awan & Asghar, 2014).

List of References

Awan, A G, Asghar, A, 2014, Impact of Employee Job Satisfaction on their Performance: A case study of banking sector in muzaffargarh district, pakistan, Global Journal of Human Resource Management Vol.2, No.4, pp.71-94

Daft, R.L. (2003) Management (6th Ed.).Thomson Learning.

Groves, K S, McEnrue, M P, Shen, W, 2008, Developing and measuring the emotional intelligence of leaders, Journal of Management Development, 27(2), pp. 225-250.

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