Monday, November 15, 2021

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


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28 comments:

  1. AmilaNovember 28, 2021 at 8:16 PM

    Well explained.In according to the (Abbah, 2014) No one works free, money is the main motivational factor, no other benefits come even close to it. Employees want to earn good salary for their workload, money is the fundamental inducement, and no other incentive or motivational technique comes even close to it

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    1. Indika UdayanganaDecember 22, 2021 at 9:19 AM

      Thank your for your valuable comments. How much should people earn? Even if resources were unlimited, it would be difficult to stipulate your ideal salary. Intuitively, one would think that higher pay should produce better results, but scientific evidence indicates that the link between compensation, motivation and performance is much more complex.(Chamorro,2013)

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  2. Dineth PereraNovember 30, 2021 at 6:20 PM

    Hi indika, agree with your points, according to Lakhani and Von Hippel (2003) the current thinking of favors and framework that considers two components of motivation given by intrinsic and extrinsic components. Engaged employees result in a domino effect also its leading to lower staff turnover, increased productivity and profits and increased loyalty (Robins, 2017).

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    1. Indika UdayanganaDecember 22, 2021 at 9:23 AM

      Thank you very much Dineth for your reply. Each and every person in an organization is motivated in a different manner. Workers’ motivation depends on many intrinsic and extrinsic factors like interesting work, job appreciation, satisfaction, stress, job security, promotion and growth, rewards, work environment, punishment and recognition etcetera (Palaniammal, 2013).

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  3. Nirmika FernandoDecember 1, 2021 at 7:54 AM

    Hi Indika, This article covers a significant area. Further, Employees are the main asset in any organization. For this reason, management has to implement different motivation factors to increase productivity (Dugguh, 2014). According to Manzoor (2012), several organizations believe that the employees are their primary asset and they will lead to organizational growth. Coyle-Shapiro and Shore (2007) stated that an organization has a great relationship with employees. Further, both parties exchange the benefits, and they trust each other.

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    1. Indika UdayanganaDecember 22, 2021 at 9:27 AM

      Very happy with your comments. thank you. I appreciate your contribution in adding those points to my topic.

      Delete
  4. Gihan AmaratungaDecember 6, 2021 at 12:38 AM

    Hi Indika. Adding more to your points, In the banking industry, there is no question that employing the best and the brightest can transform products from commodities to value added services (Aidiesert 2011). Simultaneously, Kaur (2013) states that a motivated employee is a valuable asset who creates value for an organization in strengthening the business and revenue growth and high productivity is a long term benefit of employee motivation.

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  5. Sanmuganathan JanakanDecember 10, 2021 at 4:26 AM

    Agree with you Indika, according to Varma (2017), Every successful organization is supported by a dedicated workforce, and dedication is the result of motivation and job satisfaction. It is the energy that drives people to work towards the organization's goals. Without commitment, the company would be unable to create the performance.

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    1. Indika UdayanganaDecember 22, 2021 at 9:45 AM

      Very good concept that you are mentioning. Thank you. Employees who are engaged in their work and committed to their organizations give companies crucial competitive advantages—including higher productivity and lower employee turnover.(SHRM,2004)

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  6. D.P Dileep ErandaDecember 10, 2021 at 10:02 AM

    Hi Indika. Adding to your points, all workers have personal objectives (Alonso and Lewis, 2001), which they strive to obtain. There is a risk that the employees’ individual aspirations and objectives are not in line with the objectives of the organization (Arvidsson, 2005). Since unmotivated workers value their personal aims and objectives more than organization objectives, this may lead to a conflict of aims (Sirin, 2009).

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  7. Isuru PereraDecember 12, 2021 at 5:09 AM

    Hi, Indika. I concur with the preceding content. Employee relations, according to Mike (2008), have become a critical component in improving an organization's performance and productivity. Human activity management and coordination have become critical to accomplishing organizational goals. Furthermore, this achievement makes it easier to safeguard the interests and welfare of employees, which helps to avoid conflict between the company and the employee.

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    1. Indika UdayanganaDecember 22, 2021 at 10:21 AM

      Thank you Isuru. Conflicts are part of any healthy and robust organization. Not everyone always feels the same way, but they need to develop effective working relationships for contributions and productivity.

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  8. Ganith KandanarachchiDecember 16, 2021 at 8:27 PM

    Well Explained Indika, Further every successful organization is backed by a committed employee base, and the commitment is the outcome of motivation and job satisfaction. It is the energy that compels employees towards organizational objective, also it would be impossible for the organization to generate performance without commitment, in order to create a competitive advantage organization need to have a competitive employee policies and practices (Chandrakant V. 2018).

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    1. Indika UdayanganaDecember 22, 2021 at 10:25 AM

      Thank you. Ganith. To your comment collections. They are very important points.

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  9. Upeksha PathiranaDecember 17, 2021 at 6:52 AM

    Well said Indika. Organizations need to encourage employee initiatives and participation as this will help build leadership at different levels. For leadership roles formal authority is not the criteria but the initiatives and innovation are. Employee's at all the level can choose to act as a leader if given an opportunity and this further helps motivating and influencing other employees (Jeffrey L. Herman et al,2011).

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    1. Indika UdayanganaDecember 22, 2021 at 10:38 AM

      Thank you Upeksha. Employee active participation refers to the opportunities for employees to take part in decisions that affect their work, either in their immediate job

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  10. Ravi Dissanayake, PhDDecember 24, 2021 at 1:15 PM

    Managers perceive that intrinsic motivation have a larger influence on the psychological aspects of employee engagement than extrinsic motivation (Habte 2016). Management should know what motivates their workers and manipulate motivational techniques based on employees’s desires. Simple things like creating a new job tittle or positive feedback can motivate employees.

    Habte, A., 2016. The Effect of Reward Management Practice on Employee Engagement: The Case of Commercial Bank of Ethiopia (Cbe) (Doctoral dissertation, St. Mary's University).

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    1. Indika UdayanganaDecember 24, 2021 at 7:50 PM

      Thanks Ravi. Furthermore, employee engagement is one way to make employees have high loyalty (Hermawan et al., 2020), who stated that it makes workers have high loyalty, reducing the desire to voluntarily leave the company. Employees who have high engagement tend to have good performance because they have positive feelings and do not make their work a burden (Muliawan et al., 2017). Hariandja, (2002) revealed that one of the factors that support the success of employee engagement is compensation or rewards.

      Delete
  11. Deshani RodrigoDecember 25, 2021 at 1:57 AM

    Hi Indika, Well explained, further would like to add as per (Dickson, 1973), employee motivation is not only related with the money and rewards as intrinsic motivation but this also being interrelated with the organization culture as well. However it is useful to survive the situation thus this is an internal drive to satisfy needs (Higgins, 1994).

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    1. Indika UdayanganaDecember 25, 2021 at 6:59 AM

      Thank you for the valuable comments and like to add some points. Culture also includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits (Needle, 2004).

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  12. Surangi PereraDecember 25, 2021 at 4:21 PM

    Motivation is an important stimulation that directs human behaviour. No individual has the same attitude or behaviour, Hence, in this diversity, organizations are supposed to frame practices that will satisfy the group and not just an individual (Varma,2018).

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  13. Employee RelationshipDecember 25, 2021 at 6:06 PM

    Hi Indika, Agreed with you, Motivation has been defined as, the psychological process that gives behavior purpose and direction a predisposition to behave in a purposive manner to achieve specific, unmet needs an internal drive to satisfy an unsatisfied need and the will to achieve, (James, R.L.)

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  14. Purnima LiyanageDecember 26, 2021 at 4:47 AM

    Hi Indika,
    Well said. Motivation is defined as thing that activates human behavior to attain a certain achievement. In the banking sector, the success of the organization mainly reflected by the hard works of employees. Therefore, to achieve the organizational goals employee should be motivated by the external and internal factors. (E Aronson, T Wilson, R Akert 2002

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  15. Ijaz FaizDecember 26, 2021 at 4:56 AM

    Hi Indika,
    agreed, With the intense turbulence in the competitive business world, organizations have to confront anumber of challenges. Out of which the utmost challenge is to acquire and retain humanresources. Human resources have proven to be the most precious assets for the organizations.They carry out daily operations and can make and break an organization with the manner withwhich they do work. (Allen 2007)

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  16. Manoj JayasiriDecember 26, 2021 at 6:28 AM

    Hi Indika, with the interests on your points would like to add below as well, Armstrong explained Motivation theory considers the process of motivation. It further illustrate what organization could do to encourage employees to apply their efforts and abilities in ways that will achieve organization’s goals as well as satisfying employees own needs. This is related to job satisfaction as well. It’s directly on employee performance (Armstrong,2006).

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  17. Shazna BasheerJanuary 6, 2022 at 6:12 PM

    Hi Indika, Motivating employees become condemnatory to individual performance and organizational productivity (Subramanyam, 2019).

    ReplyDelete

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01. Introduction

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