Report on Employee Motivation and Job Performance (Oman Arab Bank)

Table of Contents

Introduction and Background  3

Background  3

Project Aims  5

Literature Review   5

Research Questions  10

Hypotheses  10

Research Objectives  10

Conceptual Framework  11

Methodology  12

Results and Discussion  14

Frequency Analysis  15

Reliability Testing  17

Descriptive Statistics  18

Correlation  18

Regression Analysis  19

Conclusion and Recommendations  20

Recommendations  20

Timeline  21

References  22

Appendix  24

Employee Motivation and Job Performance (Oman Arab Bank)

Introduction and Background of Employee Motivation and Job Performance (Oman Arab Bank)

In the modern world, the dynamics of business have changed significantly and the need for more effective and capable human resources has increased as well. In each and every nation, there are numerous organizations operating in different sectors. These organizations might have innovative ideas but in the absence of satisfied, efficient, committed, and skilled employees, such ideas cannot be implemented. The same can be said about the banking sector in Oman as well. For the banks to operate effectively in the market, they need skilled and committed employees. In this paper, the effect of employee motivation on job performance and measures for improving employee motivation in Oman Arab Bank will be determined. With the use of quantitative research methods, data will be connected and hypotheses will be tested. In this manner, it will be determined whether employees at Oman Arab Bank are satisfied or not (Shahzadi, et al., 2014).

Background of Employee Motivation and Job Performance (Oman Arab Bank)

In the recent times, it has become quite important for organizations in the banking sector to remain competitive. With the changing dynamics, the need for efficient workforce has also increased. While the need of skilled and committed workers has increased, their management has become difficult. For instance, the process has become quite complex with the introduction of new models. And at the end of the day, employees are the one who will utilize their capabilities and skills for achieving organizational objectives and aims.

It wouldn’t be wrong to say that until the introduction of Human Resources perspective, employees were considered only equipment to be utilized for the benefit of the organization. However, HR perspective enabled organizations to understand that the performance of employees can influence the organization in a significant manner. Gradually, different studies were conducted on the same topic and it was determined that there exist different factors which are capable of affecting the performance and efficiency of an employee. It was also considered that employee satisfaction is vital in ensuring that employees meet the expected performance standards (Dobre, 2013).

Employee satisfaction is considered important in the success and efficiency of any business or bank. It has been determined that employee satisfaction is not only associated with job performance but also with the turnover rate. That is why it is a priority for businesses to ensure the satisfaction of employees with their tasks and responsibilities. In most of the nations including Oman, this fact is ignored even though it is known that an organization can be more efficiency if employees are satisfied. There are actually a number of reasons why employees can be demotivated and can decide to leave. Some of the most important reasons include lack of compensation and appraisal, high stress, and insufficient growth opportunities. It has become quite important in the modern world for the management to concentrate on these factors and decrease the rate of turnover while enhancing employee satisfaction.

In organizations, several factors are involved and some of the most important factors include capital, machinery, and labor. Among these factors, one of the most effective and important is human resources because labor has been determined to be the source for effectiveness in materials, capital, machinery, and other aspects. At present, a significant issue is concerned with the development of techniques which bring the interest and will for success to employees. A primary duty of managers is to make sure that employees are motivated so that highest performance can be yielded by them. It means that employees should be regular in the workplace and utilize their efforts for reaching the decisions and goals of the organization but job performance depends on environment fitness, individual capability, and motivation. For reaching a higher motivation level, it is important for the individual to perform a job with the availability of proper tools and materials. If any tool or aspect is absent then it will adversely influence the performance. Therefore, it should be ensured by the manager that above-explained conditions are offered to the employee (Lăzăroiu, 2015).

Motivation is actually an internal force or state, which encourages the person to take a certain action. And what is considered to be significant as a motivation for a specific group or person might not be as important for another group or person. It means that both the person and the environment in which he works are considered important in influencing motivation. Motivation is one of the most significant tools for making employees achieve effective and efficient results (Hayati & Caniago, 2012).

Project Aims of Employee Motivation and Job Performance (Oman Arab Bank)

This project is concerned with understanding the concepts of employee motivation and job satisfaction, analyzing the relationship that exists between job performance and employee satisfaction in the context of Oman Arab Bank, analyzing whether employees are motivated in Oman Arab Bank or not, and determining the factors which can motivate employees in Oman Arab Bank. In this project, a methodology will also be developed in which different research methods will be explained for finding the information and accomplishing these aims.

Literature Review of Employee Motivation and Job Performance (Oman Arab Bank)

In accordance with Saeed & Shah (2016), at present, the required outcomes can be easily delivered by organizations. The only resources which are not exchangeable are HR or human resources. Therefore, it can be said that a competitive asset is its standardized and efficient human resources. These days, there are numerous discussions centered around motivation and its association with job performance and employee efficiency, and various organizational efficiencies along with the necessary relation between productive and educational efficiency of firms. Generally, motivations are considered energizing factors and the prime cause for the movement of every living being. Motivation is the fact which ensures that people remain committed to his responsibilities and performs his tasks in a serious manner.

One of the reasons for effectiveness of employees is the presence of different motivational factors in organizations. It can be said that the concept of motivation is utilized for explaining the difference between employees that have similar opportunities, abilities, and talents for performing their jobs in the same organization, under same conditions and facilities with different outcomes. Employees who have high motivation levels are consistent in seeking growth opportunities and they attempt to perform better than before to acquire promotions (Saeed & Shah, 2016).

Muogbo (2013) explains that for reaching a higher motivation level, it is important for the person to first decide to perform a task, and the necessary tools and materials must be offered to them for performing the work. It is possible that the absence of these tools which adversely influence the performance. Therefore, the manager should make sure that these tools and equipment are offered to the employees. With regard to different motives, different tasks are performed by people. And even in the case that similar motives are possessed by people, there is a difference between the motivation intensities of these people, which is usually because of personal distinctions.

Feeling pride, job security, honesty in management, and other factors like non-financial and financial incentives and other encouragements are recognized to be significant motivational factors. For achieving optimal efficiency and job performance, different ways are explored by organizations for making an environment which is preferred by its employees for reaching an ability level which can have a significant influence on their work. Job performance has been simplified as values which are carried out by an individual during a specific period of time (Muogbo, 2013).

Generally, motivation is an individual specification or characteristic according to William (2010). However, it can rise from environmental factors and the personality of a person as well. Maximum enhancement and improvement of organizational performance and productivity increment for achieving the efficiency of material and human resources is considered one of the most important and obvious management tasks. Job performance is a multi-dimensional structure which indicates the quality level of performance of an employee along with their innovation level. It can be said that job performance is a group or set of functional and behavioral patterns including cognitive abilities, conscience, managerial competence, skills, and knowledge in the work environment.

There is no doubt that reasonable salaries are desired by employees because the most significant incentive is represented by money when we talk about its influential value. Additionally, financial rewards possess the capability of maintaining and motivating employees towards higher performance and effectiveness, particularly employees in the banking sector. Pay has a large influence in the establishment of commitment and diligence of employees, being the most important motivator for employees. It also been determined that productivity is not boosted by pay on the long term performance is also not significantly improved by money. Additionally, the attitude of employees might be deteriorated by focusing only on this aspect as they might begin to focus on financial gains only.

It has been determined that job satisfaction is led by rewards as well, which in turn affect the performance of employees. It can be said that rewards are an efficient management tool when group or individual performance is attempted to be enhanced for improving the effectiveness of an organization. Numerous organizations utilize bonuses, promotion, pay, and other rewards for motivating employees and increasing their performance. For utilizing pay as a motivator, salary structures have to be developed by managers in accordance with the significance of job, special allowances, and individual performance (William, 2010).

Sokro (2012) explains that it is possible to motivate employees through leadership as well because leadership is concerned with performing responsibilities in the right manner. For achieving these objectives, the trust of employees should be gained by the leader and it should be ensured that employees are following the leader. For making them trust him and perform their tasks in a proper manner, they have to be motivated. For attaining high levels of motivation and morality, employees and leaders help each other.

Empowerment is the approach to leadership which encourages employees as the main element of organizational and managerial effectiveness. In addition, employees are given the freedom and authority for making decisions which play an important role in encouraging them to find and utilize their potential. It can be said that having more control over their jobs can be the key force of empowerment which can not only motivate employees but also serve to increase their productivity. Empowerment plays an important role in making the workforce feel appreciated and their performance is important for the firm. In designing the firm, the contribution of workers is considered important for organizational wellbeing.

Employees are provided with authority and responsibility for acting as if they can control their fates. It is important for a firm to consider and recognize the results and quality of work performed by employees as they will be more efficient the next time. Employee empowerment and participation is about all the contributions which are made by employees in decision-making and administration of strategies, objectives, and policies of the firm. It has been indicated by studies that the perception of employees in terms of norms and goals of the organization are related positively to employee motivation. Considering the fact that high motivation levels can be achieved through employee empowerment, organizational growth is also led by it (Sokro, 2012).

In accordance with Motowidlo & Kell (2012), Employee empowerment can play an important role in driving employee motivation and customer satisfaction. After all, quick decisions are made by employees in the banking sector for resolving the issues without asking the manager for his guidance. Additionally, productivity is increased by high autonomy and the motivation and capabilities of employees are also increased by it for accepting new challenges and overcoming them. Proper empowerment and remuneration are imperative if the firm has a goal of obtaining higher trust and dedication from its employees. Generally, if employees are satisfied with the firm and are highly motivated, superior growth and effectiveness levels can be achieved by the firm. Employee empowerment and involvement are two aspects which shouldn’t be overlooked as understanding, commitment, and motivation are increased by it. That is why there will be a less likelihood of employees being resistant to changes. It will also cause employees to come up with new ideas and utilize their skills for improving their effectiveness.

On one hand, top-down decision-making and autocratic leadership serve to make a rigid working environment for employees where they are given specific orders for achieving tasks. In such firms, motivation is decreased and innovation is suppressed which impacts the organizational performance in an adverse manner. On the other hands, organizational productivity is contributed to by motivated employees. Ultimately, it serves to increase organizational profits (Motowidlo & Kell, 2012).

Research Questions of Employee Motivation and Job Performance (Oman Arab Bank)

Following are the research questions which will be answered in this research:

What is the effect of employee motivation on improving job performance in Oman Arab Bank, Al Khoud Branch?

Is there a link between employee motivation and job performance in Oman Arab Bank, Al Khoud Branch?

How satisfied are current employees with Oman Arab Bank?

Hypotheses of Employee Motivation and Job Performance (Oman Arab Bank)

Following are the hypotheses which will be considered in this research:

H1: There is a positive relationship exists between compensation and employee motivation.

H2: There is a positive relationship exists between encouragement and employee motivation.

H3: There is a positive relationship between employee motivation and job performance.

Research Objectives of Employee Motivation and Job Performance (Oman Arab Bank)

There are a number of steps which will be considered in this project for answering the research questions and accomplishing the research objectives. In order to answer the research questions, both secondary and primary research techniques will be considered. In general, it can be said that primary research is also referred to as quantitative research and it has to be conducted by the researcher for finding information. Meanwhile, secondary research is also referred to as qualitative research and it doesn’t have to be performed by the researcher. There is a significant difference between the two research approaches. For instance, primary research requires the researcher to create new information while the secondary research requires the person to explore the existing information. Both of these research approaches will be considered in this paper for answering the research questions and accomplishing the project aims.

After information has been collected in the context of Oman Arab Bank, Al Khoud Branch, it will be analyzed using a statistical software, referred to as SPSS. This software will be utilized for analyzing the information and determining the results. The information will be analyzed through regression and correlation tests. Once these tests are performed, the results will be discussed and it will be determined whether a link between employee motivation and job satisfaction exists or not. Following are the research objectives:

To explore the concept of employee motivation.

To determine the relationship between employee motivation and job performance in the context of Oman Arab Bank.

To analyze whether employees are motivated in Oman Arab Bank or not.

And to determine the factors which can motivate employees in Oman Arab Bank.

Conceptual Framework of Employee Motivation and Job Performance (Oman Arab Bank)

 

Methodology of Employee Motivation and Job Performance (Oman Arab Bank)

In this paper, both secondary and primary research techniques have been utilize for collecting the relevant data and these methods include literature review and questionnaires. Questionnaires have been chosen to be distributed among the employees of Oman Arab Bank because there is insufficient information available on the topic of employee motivation in the banking sector of Oman. That is the reason why questionnaires have been selected for collecting information in addition to the literature review. The targeted audience is employees of Oman Arab Bank for questionnaires. This study will be quite beneficial for the Omani banking sector as it would offer a clear picture about employee satisfaction and motivation in Omani banks. It will also help in analyzing the current environment within banks.

Questionnaires are considered significant as they are able to offer necessary and relevant information. It is one of the most precise methods of collecting data. Since questionnaires will be distributed among employees, some specific questions will be included in them according to the research questions.

In general, building research and relating it to the information is considered a basic block of different processes related to academic research. However, with time, this process has become quite complex. Within the business field, information and knowledge production is increasing rapidly while at the same time, it remains not only fragmented but also interdisciplinary. And that is the reason why literature review is considered a significant and relevant researching method and has been selected in this study. In addition to literature review, the deductive approach towards research has been adopted in this research because it can help in offering precise results (Galvan & Galvan, 2017).

A literature review is capable of helping in offering a brief description of different areas in which the study is considered disparate. In addition to it, a literature review is considered a significant and reliable technique of synthesizing research findings for uncovering different areas in which more research is required. For instance, it has been determined in this study that even though employee motivation is considered a broad topic, it has yet to be considered in the context of Omani banking sector. The traditional methods of explaining and portraying the literature generally appear to lack thoroughness and description, which results in lack of knowledge of what different studies are explaining and indicating. Due to it, there is a likelihood that erroneous assumptions might be utilized by researchers in conducting their own studies. When researchers require relevant evidence, some issues can be encountered if they ignore the researches which have different views.

It can be said that recognizing prior studies is considered quite important for each and every research project. And in this paper, different studies and previous concepts relating to the motivation and satisfaction of employees are studied. Literature reviews can prove to be quite helpful when the research objective is associated with offering an overview of a specific research problem. Literature reviews can also be helpful if the research objective is associated with engaging in theory development. In such cases, it is a literature review that offers a foundation for creating a new theory and contributing to the exiting information, and it can be critical when the objective is to map the development or evolution of a specific field (Hart, 2018).

Meanwhile, when it comes to questionnaires, there are two types of questionnaires including structured and unstructured. In the former one, questions are structured and are relevant to the topic. However, in the latter one, it is not the same and questions can be irrelevant as well. The former one is selected by researchers who want to save time and ensure that the research is as precise as well. In this study, structured questionnaires have been utilized and employees of Oman Arab Bank were targeted. A sample of 50 employees from the bank were selected and both males and females were included in the sample. In addition to it, simple random sampling was selected for selecting the participants to which questionnaires were distributed. And Likert scale was utilized for evaluating the response of employees.

In addition to distributing questionnaires, SPSS as a statistical software has been selected for analyzing the information and answering the research questions. Two variables have also be selected which include employee motivation and job performance. The former one is the independent variable while the latter one is the dependent variable. With the use of this software, two tests will be applied which include regression and correlation analysis. Both of these tests will help in analyzing the collected information and answering the research questions, and understanding the relationship between variables.

Results and Discussion of Employee Motivation and Job Performance (Oman Arab Bank)

The data is analyzed through the use of SPSS and the value of Cronbach Alpha helped in determining the reliability of the collected data. Descriptive statistics is concerned with regression, correlation, and mean analysis. The main objective behind performing these tests is to analyze the reliability and the relationship between the variables. The questionnaire chosen in the study not only helped in understanding the relationship between variables but also the demographics of people.

Frequency Analysis of Employee Motivation and Job Performance (Oman Arab Bank)

In this section, the frequency analysis for demographics of respondents will be described and different aspects will be explained. The frequency distribution is carried out on the basis of responses obtained from respondents. The pie-charts and frequency tables are given below:

 

Table 1: Frequency for Age

The table given above contains the frequency distribution data together with the percentages for the included respondents. 27 people belong to the 20-25 years, 7 people belong to the category of over 35 years, 7 people belong to the category of 30-35 years, and 9 people belong to the category of 25-30 years. It means that not all of the selected respondents belonged to the same category of age. 54 percent of the respondents were young and belonged to the category of 20-25 years. Meanwhile, the only a few of the respondents belonged to other categories. The representation of this information can be seen below:

Chart 1: Age of Respondents

It can be seen in the above chart that most of the part is blue which is representing the percentage of people in the category of 20-25 years of age. Meanwhile, the red portion of the chart is representing the percentage or portion of respondents who belong to the category of 25-30 years of age and as the years are increasing, the portion is the chart is getting smaller. The orange and green sections are equivalent in size and they mean that respondents are same in the categories of 30-35 and above 35 years.

Table 2: Frequency for Ge       

In accordance with the gender frequency, it can be said that 35 respondents are male while 15 are females in the OAB. It means that 70 percent of the respondents are males while 25 percent are females. Although this percentage indicates that most of the respondents were male, it cannot help in determining whether the bank has more male employees in comparison with female employees or not.

 

Chart 2: Gender of Employees

Reliability Testing of Employee Motivation and Job Performance (Oman Arab Bank)

The dataset was analyzed through the use of SPSS and reliability test was performed on it for determining whether the data was reliable or not.

 

Table 3: Reliability Test for Motivation and Performance

It can be said that Cronbach Alpha as a concept was introduced in 1951 and this test helps in evaluating the reliability of the collected data. In general, its value ranges between 0-1 and this value can determine whether the data collected was reliable or not. For the data to be reliable, it is important for the value of Cronbach Alpha to be more than 0.7. In this case, the value obtained for the dataset is 0.828 which indicates that the data is reliable (Nunnallly, 1978).

Descriptive Statistics of Employee Motivation and Job Performance (Oman Arab Bank)

 

Table 4: Descriptive Analysis for Motivation and Performance

           

In the table above, it can be seen that the mean for employee motivation is greater than 4 and the same can be said about job performance as well. Based on the Likert Scale, this value represents “Agree” which means that positive results have been obtained from respondents. The values of variations for these variables can be understood from the values provided in the column of standard deviation. For instance, for employee motivation, the value of variation is 0.45799 and for job performance, it is 0.521.

Correlation of Employee Motivation and Job Performance (Oman Arab Bank)

            For better understanding the results of correlation analysis, the following table should be considered:

 

**Correlation, at the level of 0.01, is significant.

Table 5: Correlation Analysis for Job Performance and Employee Motivation

In general, the type of relation between the independent and dependent variables is illustrated by the coefficient of Pearson correlation. In accordance with this value, there is a positive relationship between the dependent and independent variables for p<0.01.

Regression Analysis of Employee Motivation and Job Performance (Oman Arab Bank)

 

Table 6: Regression Analysis for Job Performance and Employee Motivation

In the regression model, a goodness-of-fit measure is provided by the value of R-square. For instance, this value depicts the percentage change in the dependent variable which is occurring due to percentage change in independent variable. The value of R-square is 55 percent and it indicates a significant effect of independent variable on the dependent one. The adjusted value of R-square is providing the comparison or difference between the models. This value is 54 percent which is indicating a total variable as narrated by the line regression. It can be said that the percentage of variation is significant. It is indicating that job performance and employee motivation are positively and significantly related to each other.

Conclusion and Recommendations of Employee Motivation and Job Performance (Oman Arab Bank)

Overall, it can be said that a positive and significant relationship exists employee motivation and job performance. In accordance with the research methods, it has been determined that in Oman Arab Bank, Al Khoud branch, there is a positive relationship between motivation of employees and their performance. It means that if employees are motivated then their performance will also be high. Meanwhile, if they are not motivated then it means that their performance will also be low and will not meet the expected standards. In addition to it, it has been determined that a reward system does existing within OAB, Al Khoud Branch but it is based on the performance of employees. In addition to it, the majority of respondents in the sample were not satisfied with current program of OAB. However, they do believe that if they are motivated, it will help them in improving their performance.

In this study, the hypotheses have been tested and through the literature review and questionnaires, it has been determined that all of the hypotheses formed in the study are correct. There is a positive relationship between compensation, encouragement, and employee motivation. In turn, employee motivation serves to enhance the performance of employees. The project aims listed in this research have also been accomplished. It is, however, important to realize that this study cannot be generalized for all the banks because the data considered in this research was specific only to Oman Arab Bank, Al Khoud branch.

Recommendations of Employee Motivation and Job Performance (Oman Arab Bank)

Following are the recommendations which should be considered by OAB for improving the performance of employees:

Ensuring that employees are not only appraised but also encouraged to take a part in the decision making process.

Offering a number of compensation packages to employees which can play an important role in improving not only their motivation but also their performance.

And offering an attractive pay to employees as it is one of the most significant factors which can serve to improve the motivation of employees and their satisfaction.

Timeline of Employee Motivation and Job Performance (Oman Arab Bank)

            The timeline for this project can be seen in the following table:

Figure 1: Gantt chart

References of Employee Motivation and Job Performance (Oman Arab Bank)

Dobre, O.-I., 2013. Employee motivation and organizational performance. Review of applied socio-economic research, 5(1).

Galvan, J. L. & Galvan, M. C., 2017. Writing literature reviews: A guide for students of the social and behavioral sciences. s.l.:Routledge.

Hart, C., 2018. Doing a literature review: Releasing the research imagination. s.l.:Sage.

Hayati, K. & Caniago, I., 2012. Islamic work ethic: The role of intrinsic motivation, job satisfaction, organizational commitment and job performance. Procedia-Social and Behavioral Sciences , Volume 65, pp. 1102-1106.

Lăzăroiu, G., 2015. Employee motivation and job performance. Linguistic and Philosophical Investigations , Volume 14, pp. 97-102.

Motowidlo, S. J. & Kell, H. J., 2012. Job performance. Handbook of Psychology, Volume 12.

Muogbo, U. S., 2013. The impact of employee motivation on organisational performance (a study of some selected firms in anambra state nigeria). The international journal of engineering and science , 2(7), pp. 70-80.

Saeed, S. & Shah, F. M., 2016. Impact of performance appraisal on employees: Motivation in Islamic banking. Oman Chapter of Arabian Journal of Business and Management Review , 36(2646), pp. 1-8.

Shahzadi, I. et al., 2014. Impact of employee motivation on employee performance. European Journal of Business and Management, 6(23), pp. 159-166.

Sokro, E., 2012. Analysis of the relationship that exists between organisational culture, motivation and performance. Problems of Management in the 21st Century , 3(3), pp. 106-199.

William, A. N., 2010. Employee motivation and performance. Ultimate Companion Limited .

Appendix

1: Strongly Disagree / 2: Disagree / 3: Moderate / 4: Agree / 5: Strongly Agree
Age	Gender	Questions	Response
		5	1-5
Employees are not effectively encouraged in OAB to participate in decision-making.
I will be motivated if I am encouraged to participate in decision-making.
I will be motivated if I am financial compensated.
My performance will be effective if I am motivated.
The rewarding system is as per employee’s performance.

 

 

Questionnaire for Employees in OAB