Abdullah et al (2011) considered some factors such as promotion, employee loyalty and acknowledgment of work which have an effect on employee satisfaction, but he found wages as the main factors for job satisfaction. Additionally, calisir (2010) maintained that encouragement and salaries are the most important determinant of job satisfaction. Ahmed and Ali (2009) emphasized that due to fact that identification or reward has been changed a lot, therefore, work motivation and satisfaction will be change parallel, so that greater focus on incentives and acknowledgment, the greater positive impact on the job satisfaction level. In addition, Hunjra (2010) found positive and meaningful relationship between employee satisfaction and management behavior such as group work, leadership and independence
McCoy, Campbell and Cuedeck as cited in Milkovich and Newman (2004, p.258) states that the employee performance depends on three conventional factors which are skills, knowledge and motivation. The latter factor, motivation has an important role in increasing the individual performance because of linking pay with performance. Perry, Engbers and Jun (2009) state that the employees would work harder because their financial rewards could result from their rising efforts. This argument is based on several motivational theories which agree that increasing salaries or bonuses are one instrument to encourage each employees performing well. This is also supported by Huselid as cited in Milkovich and Newman (2004, p.277) who found that there are a credible evidence of increasing performance from the implementation of pay-for-performance system in 3,000 companies.
Research shows that motivated employees tend to display more positive work attitudes than employees who are not motivated. Therefore it is important that organizations identify these factors that affect employee motivation. The first section analyses the summary of purpose, rationale and related literature of this study. The
Due to the high organizational expectations, the right people are being hired to fill strategic positions (IIona and Evelina, 2013). Employees that are more devoted to their organizations are well equipped and aware of necessary knowledge, skills and experience to create unique solutions for customers (Harris, 2000). The productivity of every employee in an industry is the ratio to measure how well an organization or country converts its input resources into goods and services. These individual input resources are determined by the working conditions faced by such employees in the organization. This is why Ali, Abdiaziz and Abdiqani, (2013) argue that the working conditions of employees is the determining factor to increase productivity in organizations.
The qualitative portion of the study aims to delve more thoroughly into the issue of performance as a concept and how performance can be related to pay. Also describe the factors that develop workplace environment and impact positively on employees productivity and explain results for validating the proposed framework. 1.3 RESEARCH QUESTIONS This study will attempt to answer the following research questions. Which are : i. How is an individual 's performance is evaluated in the modern environment ?
1.3 Ways to improve efficiency Employee Morale To improve efficiency of the organisational chart, the organisation have to keep the employee morale high. This helps to keep the structure together as productivity will elevate and employees may come up with new ideas to increase efficiency. To sustain high morality, incentive plans could be implemented to individuals who perform above expectations. Salaries should also be competitive within other companies in the same industry. To ensure loyalty of employees to the company.
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. In fact, research suggests that even if we let people decide how much they should earn, they would probably not enjoy their job more. A sound concept in principle, however, in reality most people don’t consider money to be the main motivator. In fact, research has shown that the association between salary and job satisfaction is very weak.
These factors are achievement, recognition, challenging work, advancement and growth in the job.  Motivated personnel’s performance will be good and hence result in good ratings in performance appraisal. According to Lyman W. Porter and Edward E. Lawler there is a complex relationship between motivation, satisfaction and performance. According to them, performance is a function of three important factors, viz: 1. If an employee wants to perform, he must be motivated.
Teamwork: Teamwork in a company is vital for the success of a company. Financial incentives like bonuses can inhibit teamwork since under such schemes, individuals may be rewarded rather than teams. For example, several firms give bonus on bases of the amount of work performed by the individual (Roland, 2003). This means that employees would eventually learn to hoard work than to share it for the welfare of the organisation and in this way, the overall productivity of the company may be affected. Burn-out of employees: Another disadvantage associated with the financial reward system is that it may lead to physical and moral burnout where the employees may work extra hours to earn the money and may eventually be frustrated by the monotony of the work situation.
Abstract: The purpose of this paper is to identify the factors that effects employee motivation and examining the relationship between organizational effectiveness and employee motivation. A mold was designed based on the literature, linking factors of employee motivation with employee motivation and organizational effectiveness. The literature and various studies concluded that factors. Empowerment and recognition have positive effect on employee motivation. More the empowerment and recognition of employees in an organization is increased, more will their motivation to work will enhance.