Exploring the role of HR to manage employee motivation and its impact on performance — FAW automobiles

Chapter 1: Introduction

1.1 Research Background

The role of the human resource department to promote motivation among the workforce is broadly acknowledged to increase the performance of the employee. Moreover, the impact of the human resource practices and combination of the incentives is useful to encourage performance among the workforce. An organisation objective is to improve the performance of the employee through motivation and this has become a significant challenge.

Motivation is considered an investment which could benefit the future of the organisation. However, the work pattern and human resource practices in the Chinese organisation context is less evident especially the relationship of motivation and performance of the employee. (Sheldon, et al., 2014)

Therefore, the purpose of this study is to conduct the critical analysis of the performance of the employee in the context of motivation investment in the Chinese organisations. The research examines how the HR practices are deployed in the Chinese organisation which result in motivation and consequently affect the performance of the employee.

The research will use the framework through linking the intrinsic and extrinsic factors and their relationship with performance management approach which affect the employee performance in the Chinese organisations. The specific Chinese organisation select to conduct the research is FAW automobiles. (Horwitz & Budhwar, 2015)

1.2 Context of Employee Motivation and Performance

Agency theory is useful to analyse the conflict between the agents (Leaders in the company) and principals (shareholders/owner of the company). The objective of the agent is to achieve the aims and objectives of the organisation and in return, the agent gets rewards such as payment and incentive. (Miller, et al., 2014)

The payment and rewards are important to ensure that employees’ remains motivated and continuous sustain their performance. The agents of the business have a duty and interest to fulfil the contracts and this is achieved through goal congruence. Human capital is considered as a source of competitive advantage and i.e. it is a critical aspect to manage the human behaviour to ensure the performance of the business. (Cuevas‐Rodriguez, et al., 2012; Armstrong & Taylor, 2014)

The relationship between the performance of the firm and human resource management is critical for performance and strategic integration is of the business and HRM is critical. This helps the business the achieve employee motivation and retention through deploying measures such as rewards and payments through meeting objectives of the organisation. (Robbins, et al., 2013)

1.3 Justification of research

China has experienced tremendous economic growth in recent years and adapting to market socialism. The workforce in china is made of large migrations from countryside which has resulted in the diverse workforce because of the societal and economic. The productivity and motivation of the Chinese workforce are affected by labour force bureaux and nascent of job choice. (Wang, 2012)

Employees are an important resource to an organisation and their commitment and motivation is imperative to ensure that company achieve its objectives through delivering product and services. The purpose of the employment is to confirm efficient transaction between the both parties (agent and Principal) to fulfil each other needs.

However, in the organisation that employees needs are complex and which result in goal congruence problem. A recent challenge in the china is to build highly skilled workforce based on qualified and professional employees. (Ulrich, 2013)

Therefore, in these challenging condition and environment, it is vital for the companies to keep the employees motivated and maximise their performance for productivity. This research is focused on the employee motivation and performance in the Chinese context that how companies manage their employee motivation to ensure the productivity as well as the performance of the employee. (Warner, 2014)

Therefore, it is critical for HR to maintain the motivation of the employee to achieve desired results through reward system and payments. This study examines the motivation aspect of the employees and its contribution towards the performance of the employees. The motivation of the employees based on the instinct and extrinsic factors as well as the impact on the employee performance will be examined. (Zairi, 2012; Rodell, 2013)

1.4 Research Objectives

The fundamental objective of the research is to determine the approach and constraints which affect the performance of the workers in the Chinese organisations. The objectives are

  • To determine the approach of HR in terms of motivational measures deployed and effectiveness of these measures in FAW.
  • To analyse the way in HR practices improve the motivation and performance of the employees in FAW.
  • To appraise the relationship between the motivation measure deployed by HR and performance of the employee.

1.4.1 Research Questions

The aim of the research is to explore how HR manages the motivation and performance of the employee. The motivation and performance are examined and reviewed in the Chinese context because of the recent social and economic changes in the Chinese society based on migration which has impacted upon the workforce availability and composition.

The purpose of the study is an attempt to investigate the HR role and factors in the Chinese company to examine how employees are motivated and their performance is managed and sustained. (Sheldon, et al., 2014) The specific research question includes

  • How effective is the HR motivation measure to achieve employee performance in FAW?
  • What are the motivation measures in place and how successful they are to achieve motivation?

1.5 Scope and limitation of study

The study is focused on the FAW to determine the HR practices to achieve motivation and impact on the performance of the employees. The study examines the motivation measures used by the Chinese organisation to impact the performance of the employee. The limitation of the research is size and time associated with this study.

The research is intended to examine the FAW and based on the social challenges in might not reflect the border perspective of the Chinese HR practices.

Moreover, the size of FAW it enormous it has 18 product facilities and 120K employees which make it difficult for this study to analyse and evaluate. There are a number of external factors which affect the company and employees such technology development, workforce availability as well as political changes which affect the workforce and these variables are not part of this study.

Chapter 2.0: Literature Review

This chapter review the literature on the motivation theories to develop an understanding on the HR practices and perspective on the employee motivation in the light of motivation theories. Moreover, human resource paradigm and important concept of the motivation (intrinsic and extrinsic) as well as performance management approaches are examined and how it linked and affects the employee as well as organisation performance. To support the objective of the research, the literature is focused on what needs to done to motivate the performance of the work which contribute towards the employee performance and organisational objective.

2.1 Human Resource paradigm

The employee motivation and satisfaction are critical to contribute towards the performance of the organisation and therefore, the role of HR to deploy strategies and techniques is important to achieve the objectives of the organisation.

In today’s competitive world, HR is an important function to support the performance of the organisation. The employees are critical to achieving the objectives of the organisation and meet the current and future need of the customers. Organisation need and capabilities to create, manage and sustain a knowledgeable workforce ensure the objectives of the organisation are achieved as well as it positioned itself as high-performance organisation. (Horwitz & Budhwar, 2015)

Therefore, human resource management (HRM) is function of organisation which contributes towards the success of the organisation through developing and managing the human capital need of the organisation through measuring the workforce need of organisation, designing the reward and payment structures, measure the performance of the employees and create balance which create win-win situation for the employees as well as organisation. (Kaufman, 2015)

Goal congruence is important in an organisation to integrate the mission and objectives of the employee and organisation. HRM ensures that goal congruence is achieved between the employees and organisation which deliver the product and services which meet customer needs, company retain and improve profitability and innovation is continuous as well as employee received financial and non-financial rewards. (Decenzo & Robbins, 2015; Punnett, 2015)

To summarise, the role of HRM in an organisation is to recruit and develop the workforce to support the organisation strategy, design training and development programme, measure performance, reward performance and integrate feedback through appraising employee and organisation workforce needs to support its strategic choices.

2.2 Empirical literature on employee motivation

The focus of the empirical literature is establishing the employee motivation and measures (intrinsic vs. extrinsic factor) and how they contribute towards the performance of the employee and organisation objective. There has been significant research on employee motivation and different studied to evaluate a range of factors. The monetary benefits are the extrinsic factors whereas non-monetary are extrinsic benefits.

The extrinsic motivation occurs when the behaviour of the employee is motivated to earn the reward or avoid the punishment. On the other hand, intrinsic motivation is the behaviour of the employee which affects the performance of organisation for personal benefit rather seeking external rewards. (Reiss, 2012)

The number of surveys has been used to evaluate the job satisfactions of the industrial employees in terms of job rewards, personal preference as well as the organisation. There are a number of a survey on the motivation and job satisfaction of the employee which examines the job security, bonus, salary, interest in work, promotion as well as working conditions. (Tims, et al., 2016; Harpaz, 1990; Katz, 2005; Herzberg, 2003)

The objective of large number studied conducted is to examine the motivation of the employees and impact of monetary and non-monetary variables to analyse and evaluate their contribution towards the motivation in terms how they contribute to the employee motivation and affect the performance of the employee and job satisfaction of employee. (Bowen, 2016)

The studies which examine the perspective and practices of the HRM to effective manage and sustain the motivation among the workforce is relatively limited in the Chinese context.

Therefore, the purpose of this research is to analyse and evaluate the role of the intrinsic and extrinsic factors in the light of motivation theories and their contribution employee motivation and organisation performance in Chinese context. Moreover, the HRM studies which examine the HRM perspective on motivation in the Chinese context are few. Therefore, this study contributes towards the HRM practices to manage the employee motivation and performance in the Chinese context. (Cooke, 2009; Vivares, et al., 2016)

2.3 Motivation Theories

Motivation is a force and driving factor which encourage people to put their best effort to do things  and motivation is viewed as the accumulation of processes which affect the behaviour of the employee directly to achieve the specific goals. The motivation is set of the forces which originate within and beyond the individual to direct its work behaviour. It encourages the individual to attain and achieve goals. (Minbaeva, 2009)

In other words, these are defined as invisible forces which direct and maintain human behaviour through providing personal and psychological comfort to the employees. The challenge for the organisation is to create motivation among the employee and despite knowledge, skills and abilities, a less motivated workforce is likely to underperform. (Miner, 2015)

2.3.1 Maslow hierarchy of needs

According to Maslow (1943) hierarchy, the needs of the employees are based on five level which are psychological, safety, social, ego as well as self-actualization. Maslow stated that lower level of need should be met before higher level need would motivate the employees. Self-actualization is the highest point embedded in the Maslow theory of motivation and at this point, the desire of the individual is to achieve full potential. This point defines that need of the individual is never satisfied as individual psychologically want to grow. (Deci & Ryan, 2014)

Therefore, Maslow stated that few people in the organisation attain the pint of self-actualisation. Once an individual develops the sense of belonging, then the next stage is to develop a degree of importance. This involves evaluation of oneself as well as attracting the attention of other (esteem needs). The next stage involve is the psychological need in which attention is a shift to safety and security. (Taormina & Gao, 2013)

The argument put forward by the Maslow theory is that self-fulfilment cannot be satisfied  and therefore, in order to motivate the individual, it is important to fulfil the dominate need which motivate the individual in a particular way. The manager and leaders in the organisation should understand the need of the individual which motivate the employees. (Baumeister, 2016)

Maslow hierarchy of needs

Figure 1: Maslow hierarchy of needs

Source: (Maslow, 1943)

2.3.1.1 Application and Critics of Maslow hierarchy

In the light Maslow theory, then it is the role of the management to promote motivation in the workplace. The psychological motivation can be achieved through providing some basic need such as salaries and lunch break. The safety need could be achieved through health and safety and job security and self-esteem needs can achieve through providing a sense of acceptance and belonging. The esteem motivators are recognition for the employees and providing a special assignment to the employee which makes them feel valued and appreciated. (Patrick, 2014)

The self-actualization can be achieved through providing a challenging task to stimulate the motivation and progress should be made in accordance with the achievement of the organisation objectives. The critics of the Maslow theory are that it is based on the rigid structure whereas people in the organisation have a varied need and therefore, it is difficult to follow the hierarchy and make progress. For example, in the Chinese culture social and esteem needs are more distinct compared to other factors in the pyramid. (Jerome, 2013)

2.3.2 Herzberg Hygiene Theory

Herzberg (1959) categorises the employee motivating into two factors which are hygiene factors and motivators. Hygiene factors are the extrinsic factors which are job security and wages as well as motivators are the intrinsic factors which are an achievement, job satisfaction and recognition. The theory is similar to an extent with a Maslow hierarchy of needs but significantly focused towards the workplace environment of the organisation.

The hygiene factors are the dissatisfiers at the workplace whereas motivators are the satisfier at the workplace. (DuBrin, 2013) The ranges of factors which are classified as hygiene factor in an organisation are the working condition, policies, salary and benefits job security and personal need of the employee. (Reiss, 2012)

On the other, motivators in an organisation are recognition, achievement, responsibility and growth in the organisation. The motivators are useful to create motivation in employee and dissatisfiers define the working environment. The hygiene factors are the dissatisfiers in an organisation because the individual in an organisation tries to adjust with the environment of the organisation.

Herzberg evaluated that hygiene factors in an organisation are critical before the motivator’s are used to stimulate the job and create a sense of motivation. (Herzberg, 2003)

Herzberg Hygiene Theory

Figure 2: Herzberg Hygiene Theory

Source: (Herzberg, 1966)

2.3.2.1 Application and critics of Herzberg theory

The managers and leadership in an organisation should ensure the distinct issues related to the employees which consequently boost the performance of the employee. The dissatisfiers in an organisation are working conditions and environment, salaries, policies and administrative practices, job types and responsibilities, job security, the dynamic of the teamwork as well as the social and personal life space for the employees. (Cuevas‐Rodriguez, et al., 2012)

The satisfiers include the recognition is given to the employee, aspiration and energy provided by the leader to achieve the goal congruence, advancement in the job, job enrichment and enlargement, responsibility and degree of challenges which make the employee feel valuable.  (Ansen & Samuel, 2014)

To summarise, the extrinsic and intrinsic benefits are linked in the organisation. The extrinsic benefits are offered by the leadership of the organisation to encourage the employee and intrinsic benefits are used to develop a relationship with the employee. The Herzberg theory is useful which enable the managers to manipulate the workers to deliver positive performance. The critics of the theory argue that theory is focused on the workplace environment but ignore the motivation problem stem from the family and extended to the workplace. (Bratton, 2013)

The social structure and social needs in the Chinese culture are more integrated and affect the employee. The achievement of the hygiene factors which result in motivation among the employee present significant problem because human behaviour is complex and hygiene factors might not result in motivation among the employee and thus it ignore the time and change processes associated with the management and employees in an organisation. (Browne, 2013)

 2.4 Performance Management

Performance management system in an organisation is critical process and tool to ensure motivation of the employee in an organisation. The objective of the performance management system is that performance management reflects intensity and effort deployed by the manager and employees to achieve the task. This helps the organisation to measure the performance of the employee in terms of value creation for the customers and organisation. (De Waal, 2013)

The role of the performance management in association with the employee is that when employee understands and delivers product and service then it is important to measure whether it meet the needs and expectation of the stakeholders. The performance parameters in an organisation are mix of the financial and non-financial measures which measure and evaluate the performance of the employee in border context. The performance of the employee reflects its motivation and interest in the job and allows the management to achieve its goals. (Redmon, et al., 2013)

2.5 Conceptual Framework

2.5.1 Extrinsic and Intrinsic Motivation

This highlights the needs and wants of the employee which make them act in a particular way.  The extrinsic motivation is the sources of employee satisfaction in an organisation and associated with job security, working condition, salary, promotion and tangible rewards. These are not determined at the individual level but rather viewed and benchmarked at the organisation level.

Moreover, the intrinsic motivation defines the relationship of the individual with the job itself and linked to motivation and aspiration of the individual such as responsibility, recognition, achievement and advancement. Moreover, the performance management system in an organisation is defined through agency relationship which improves the effectiveness of the organisation which results in the achievement of the mission and goal of the organisation. The HR role is plan work and set expectation which develop capacity to perform, monitor and reward performance of the employee. (Georgeon, et al., 2012; Cho & Perry, 2012)

Figure 3: Conceptual Framework

Source: Author 

Chapter 3: Research Methodology

In this chapter, research methodology, research instruments, design of the research as well as method of data collected along with sampling technique used is discussed and evaluated. The design of the research is referred to the arrangement and conditions used to collect and analyse data which result in achievement of research objectives. The purpose of the research is to explore how HR manages the motivation and performance of the employee. The motivation and performance are examined and reviewed in the Chinese organisation FAW. (Teddlie & Tashakkori, 2009)

3.1 Research approach

The three types of approaches to research are descriptive, exploratory and explanatory research. Explanatory research is used to connect idea with the theory through analysis and evaluation of the scenario which helps to understand what is happening in certain environment. The descriptive research is useful to explore and define the problem to understand what is happening and expanding the existing scenario in detail. The descriptive research is useful to understand and evaluate what question rather why scenario. (Maxwell, 2012)

The exploratory approach is more useful to develop understanding and ground to investigate the how and why scenario in deeper perspective. In this study, exploratory approach is used to develop an initial understanding on the HR practices in the FAW. The purpose of the researcher is to develop an understanding from the HR manager perspective to manage the motivation in the Chinese social context in the organisation. The exploratory research would allow exploring the HR practices in the light of motivation theories. (Creswell, 2013)

3.2 Research strategy and FAW context

The research strategy used in this research is case study because of the flexibility it offers to understand the scenario and develop a holistic perspective attached to a real life event. A case study is useful to analyse and evaluate the contemporary phenomena in real life scenario. The objective of the study is to examine the social scenario and develop a descriptive account of the HR practices in the FAW. The flexibility offered by the case study would allow to examine the wide range of question in what and how context. (Johnson, 2004)

The descriptive case study would allow developing border perspective from the interview because there is a lack of existing knowledge on the HR practices and motivation among the Chinese workforce. The question design is largely based on what and how scenario which could elaborate effectively through conducting the interviews. The descriptive case study would allow overcoming the inconsistencies during the research process and allowing the social practices in the light of motivation theory. (Bernard, 2012)

3.3 Design of Research — Qualitative vs. Quantitative approach

The quantitative approach is used to identify the relationship of the variables thought to analyse the reason of the problem. The quantitative approach is associated with numeric data collected through analysing the variables relationship. Moreover, qualitative approach highlights the social event by exploring the relationship between variables through examining the problem directly. (Edgar, 2004)

A qualitative approach is useful to analyse the relationship between variables in social construct through evaluation of the human action in the situation. The qualitative approach is useful to analyse the action and practices of the HR in the FAW. The interviews conducted would allow to analyse and develop the social event and case study approach would offer the flexibility to examine the HR practices and motivation factors. (Miles, et al., 2013)

3.4 Inductive vs. deductive research

The inductive approach involves developing new theory based on the generalisation of data whereas deductive approach is useful to test the hypothesis through testing the theory. The inductive approach starts research question and narrows down the scope study whereas deductive approach involves testing the hypothesis. The inductive approach is useful to explore the new phenomena whereas deductive approach allows the generality on the causality based on the scenario. In this study, inductive approach is used starting with the research and narrow down the finding of the study. (Drummond & Embree, 2013)

3.5 Data Collection

To develop a broader perspective on the HR practise as well as extrinsic and intrinsic motivation both primary and data will be collected and evaluated. To develop a perspective on the satisfiers and hygiene factors range of studies will be explored whereas the integration and application of these factors in FAW will be elaborated through conducting interview of the HR manager.

The secondary data collected is based on the number studies whereas the primary data is conducted through semi-structure of the HR manager. The reason behind selection of HR manager is because of their contribution towards the design and deployment of strategies in an organisation. (Mukherji & Albon, 2009)

3.5.1 Secondary Data

The secondary data is known as data already collected by some else. This type of data collected for other purposes rather conducting existing research. The secondary data is useful and valid source of information and allows developing wider perspective on existing knowledge. The secondary data collected will be fully utilised to analyse the motivation and hygiene factors which contribute towards the motivation of the employee and consequently affect the performance of the employees.

The past research and case studies accessed from the journals, books and published sources would allow to examine and elaborate the motivation and performance of the employee in the organisation perspective. (Denzin & Lincoln, 2011)

3.5.1.1 Secondary data – Employee motivation and Performance

Motivation is a critical factor to ensure productivity and performance in modern business environment. The motivation of the employee is a complex function for the management in the continuously changing business environment. (Punnett, 2015)

The commonly used method to motivate the employee is reward and recognition program based on a number of financial and non-financial incentives. The financial incentives include competitive salary, fair bonus scheme, medical allowance and other financial benefits whereas non-financial incentives include promotions, recognition (e.g employee of the month) as well as good working condition. (Redmon, et al., 2013)

The range of studies has highlighted motivation factors which are an appreciation for work, interesting work, wages and job security.  The studies during the 2000s have highlighted the motivation factors which are wages and appreciation, job security, relationship with management, job rotation and training and skill development program for the employees. (Minbaeva, 2009)

The study of the ocler (2007) examine the motivation factors and highlighted that social development, group work, working environment, safe working environment, harassment policy for women and recognition were critical factors which contribute to the motivation and performance of the employee. The recent studies on the motivation are conducted by (Sheldon, et al., 2014; Wang, 2012; Hossain and Hossain, 2011) has highlighted the career growth and development, performance evaluation system, flexible working hours, challenging work, recognition, good wages, job security as well as wages were important indicator of the motivation among employees. (Miner, 2015; Reiss, 2012)

3.5.2 Primary data

Primary data is known as data collected specifically for the research. The advantage of the primary data is that it allow to collect data which is specifically associated with research whereas limitation of primary data is time and resources involved in the data collection. The primary data collected for this research is based on the qualitative approach and semi-structured interviews.

The interviews are a useful instrument to collected data from the individual based on the beliefs, practices as well as the opinion of the respondent. Interview of the HR manager would allow exploring the HR perspective and approaching on motivation and performance management. (Miller & Holstein, 2009)

3.5.2.1 Semi-structured interview – HR Manager FAW

Interviews are useful to gather and evaluate the knowledge and practices. The interviews are concerned with gathering background and expert knowledge and, therefore, the way in which question is asked does not matter. There are three types of interviews which are unstructured, semi-structure and structured interview based on the degree of control required by the researcher. The unstructured interview allows the interview to have minimum control over the respondent answer. This could lead conservation in many directions rather discovering the specific phenomena. (Holstein & Gubrium, 2013)

The semi-structure interviews a guideline is used which is based on the questions and topics of the research. These types of interview are rather conversational in a specific context and allow developing a deeper perspective on the problems. The structured interviews are rather based on fixed questions and respondent does not flexibility to answer the question other than the context of the question. The semi-structure interviews are used in this research which allows developing an outline for the question but offer flexibility to the respondent.  (Wrenn, et al., 2013)

Figure 4: Kind of interviews

Source: (Wrenn, et al., 2013)

3.5.2.2 Target population and quota Sampling

An important aspect of the research is sampling which define the target population and reason as well as logical behind the selection of the sample population. There are many types of sampling which could be used based on the demographic and distribution of the study population. In this research quota sampling is used to determine the size of the study population in which researcher have flexibility to select the size of a population based on fixed quota. (Flick, 2014)

The practical limitation of the study which are that it is difficult to access and conduct the interview of HR managers at production facilities. Therefore, the production facilities chosen is based on the access and availability of the HR manager in the area of ‘Qingdao’. The HR manager of the facility is reached using the personal contact and therefore, only sample available to conduct the interview. The interview is conducted over the skype which offers the greater flexibility to conduct the interview in available time of the respondent. (Brace, 2013)

Table 1: Target population and quota sampling

The advantage of using the quota sampling is that it facilitates the data collection when researcher is unable to obtain the probability sample but it represent the population being studied. The quota sampling is useful to represent particular groups and in this research, it is used to HR department of the FAW. Nevertheless, the problem associated with quota sampling is that does not allow to examine the sampling error which might result in generalisation of the problems. (Flick, 2014)

3.6 Organisation assessment and HR practices in FAW

3.6.1 Fist Automobile Vehicle (FAW)

First Automobile vehicle (FAW) is one of the largest local car manufacturers in china which produced wide of products which include passenger and commercial vehicle. Company employees estimated 120,000 employees and have annual sales of 19 million vehicles. The production facilities of the company are based in the province of Jilin and operate and manage manufacturing plants in 18 locations in the china.

The company product line includes passenger car, trucks, buses, transit coaches, mini vehicles as well as components. Moreover, the multiple departments of the company include finance and accounts, engineering, research and development and production team. Therefore, integration and motivation of employees along with performance and productivity are challenging task in such large company. (FAW Group Corporation , 2015)

3.6.2 HR function in FAW

The HR department in FAW is composed of nine employees in total which have different responsibilities. The HR department has a number of responsibilities which includes the management of the training function, Payroll, recruitment and exit of employees, setting policies and procedures,  recruitment and retention planning as well as dealing the heath and safety matter of the workplace. The training and induction of employee are a critical aspects to ensure employee have required skills and knowledge. The clear responsibilities and accounts are not defined and enclosed because of the confidential nature of data which result in limited access to data. The overview the performance function is

Figure 5: HR function in FAW

3.7 Framework of interview questions

Figure 6: Framework of interview question

3.8 Ethical Consideration

The personal information of the HR is not collected or disclosed during any part of the study. Moreover, the respondent was informed about the usage of the data and consent was asked before data collection. The data collected represent strict confidential and information about technical and engineering staff and processes was not collected because of the competitive nature and confidentiality of data. The data is kept in strict confidential and no personal or organisational information is collected to ensure privacy and confidentiality of the data. (Babbie, 2015)

 Chapter 4: Finding and Discussion

4.1 Analysis of Finding

This chapter involves analysis and discussion of the results which is based on the response from the interview. The interview conducted based on the motivation theories and secondary data which highlight the potential factors of the satisfiers and dissatisfiers among the employees. The design of the interview was based on the extrinsic motivators as well as intrinsic motivator and their impact on the performance of the employee. The objective of the interviews was to determine the HR practices and perception of motivation and employee in the FAW. The literature has highlighted the role of HR and motivators to determine the motivation of the employee which contributes towards the objectives of organisation. The questionnaire attempts to determine the motivations into sections which are the hygiene factors and satisfiers.

4.2 Hygiene Factors

Hygiene factors are the extrinsic factors which are job security and wages as well as motivators are the intrinsic factors which are an achievement, job satisfaction and recognition. The theory is similar to extent with Maslow hierarchy of needs but significantly focused towards the workplace environment of the organisation

4.2.1 Payroll structure

Question no. 1: How do you set the salary for each role and do you believe salary level is adequate to achieve employee motivation.

The first question asked was to determine how HR used the basic factor of salary in the FAW. The psychological need (Maslow theory) of the employees is basic factors towards the motivation of the employee. The response of the HR was that company is using the competitive pay structure especially for the production which ensures the employee retention because of better salary structure.

Manager mentioned that “The salary for each role and believe salary level is adequate to achieve employee motivation.  To summarise, the HR manager agreed that salary is important incentive which contribute towards motivation and performance of the employee. In the light of the Herzberg theory, competitive salary is important motivator and contributes towards the performance of employee.

4.2.2 Health and Safety

Question no. 2: How important is the working conditions to contribute towards the motivation of employee and do you existing working contribute towards the motivation and performance of employee?

The purpose of the question was to determine the important of the working condition and safety of the employee. The safety need of the employees (Maslow hierarchy) is an important contributor towards the motivation of the employee. HR stated that working condition is important especially because of the high risk nature of the production and assembly area. The results of discussion highlighted that HR actively deploy the effective working conditions to increase the performance and productivity of employee.

HR manager mentioned that “working conditions making employments all the more fascinating and is vital for fulfilling employee needs, as well as it is imperative for keeping up efficiency and guaranteeing the long haul survival of the company”.

To conclude, the results of discussion highlighted that facilities, working relations and organisation capacity is direct effect by the Health and safety and consequently affect the motivation of the employee. The Herzberg theory is useful which enable the managers to manipulate the workers to deliver positive performance. Therefore, controlling the working conditions has been valued by the HR manager towards employee motivation and performance.

4.2.3 Design of facilities and employee performance

Question no. 3: What contributions you thing existing facilities have towards the motivation of employee and do you believe FAW physical environment affect the motivation and performance of employees.

The new production facilities were highlighted by the HR has resulted in significant increase in productivity and performance of the employee. The objectives of the organisation were highly valued by the HR manager to impact the performance and productivity of the employee. The design of the assembly line was referenced by the HR as well as office facilities which resulted in improvement of facilities and working condition at FAW.

According to Maslow, the safety need could be achieved through health and safety and job security and self-esteem needs can achieve through providing sense of acceptance and belonging.

Therefore, the HR manager highlighted “physical environment systems being utilized are said to be viable in light of the fact that their utilization has enhanced the worker performance the importance of facilities towards the motivation and performance of the employee”.

4.2.4 Security of job and autonomy

Question no. 4: Do you believe that job security at FAW is the major contributor toward the motivation and performance of an employee?  And how important you believe the job is critical for employee motivation?

The purpose of this question was to determine how HR policies contribute towards the job security of the employee. The esteem motivators are recognition for the employees and providing the special assignment to the employee which makes them feel valued and appreciated. The esteem can be achieved through providing a challenging task to stimulate the motivation and progress should be made in accordance with the achievement of the organisation objectives.

The HR manager responded that “unique connection in the middle of pay, job security and performance perceives a worker for a particular level of achievement and employee motivation is effective based on the social interaction and teamwork at FAW”. Nevertheless, HR manager highlighted that segregation of duties and autonomy is the significant challenge based on the knowledge and social structure of the Chinese society. The satisfiers include the recognition is given to the employee; aspiration and energy provided by the leader to achieve the goal congruence and degree of challenges which make the employee feel valuable.

4.2.5 Employee supervision and relations

Question no. 5: What are your opinion on the supervision level and motivation of employee at FAW? How you value the impact of supervision and work relation on employee performance and motivation?

The Maslow hierarchy highlight the two top points which contribute towards the motivation of the employee and the degree of self-actualization is important contributors towards satisfaction and motivation of the employee. Therefore, the hygiene question was based on the Maslow theory which adds to the performance of the employee. The HR manager responded that relations are not beneficial because of the social style in the Chinese culture. The relationship adds little value towards the motivation and performance of the employee.

The employee supervision is highly valued by the HR manager which affects the performance of the employee. Moreover, the HR manager emphasised that “supervision of the employees is an important aspect and this achieved through effective supervision, team leadership and regulation and policies”. Moreover, he added that supervision level and motivation ought to advance employee in the event that they have exceptional performance execution.

The leadership and management believe in strong supervision and control of the employee which contribute towards the performance of the employee. The critics of the Maslow theory are that it is based on the rigid structure whereas people in the organisation have the varied need and therefore, it is difficult to follow the hierarchy and make progress. For example, in the Chinese culture social and esteem needs are more distinct compared to other factors in the pyramid. To summarise, the Maslow hierarchy is proved to have rigid and the social context of the FAW requires a relative different control environment.

Figure 7: Hygiene Factors – FAW

4.3 Motivation factors

Motivators in an organisation are recognition, achievement, responsibility and growth in the organisation. The motivators are useful to create motivation in employee and dissatisfiers define the working environment. The hygiene factors are the dissatisfiers in an organisation because individual in an organisation tries to adjust with the environment of the organisation.

4.3.1 Degree of accountability and achievement

Question no. 6: How do you believe autonomy and achievement contribute towards the motivation of employees and does it contribute towards the performance of employee?

The purpose of this question was to determine the role of accountability towards the motivation and achievement towards the motivation and performance of employee. The HR manager emphasised less on the accountability and achievement to improve the performance of the employee. Nevertheless, the degree of accountability is varied according to the gender and position of the employee.

HR manager emphasised that “the inspiration and autonomy and achievement of your better performers and workers trusted that their manager and thus, accountability is less valuable in the Chinese context and employees with position in the organisation when compare with lower level of employees in FAW”.

The self-actualisation need is relatively lower in Chinese context. The social structure and social needs in the Chinese culture are more integrated and affect the employee. The achievement of the hygiene factors which result in motivation among the employee present significant problem because human behaviour is complex and hygiene factors might not result in motivation among the employee.

4.3.2 Recognition

Question no. 7: Do you believe recognition increase the motivation of employees and increase their productivity.

The purpose of the study is to determine the value of the recognition in the Chinese context and HR used the recognition to increase the motivation and performance of the employees. The HR manager responded that recognition is an important contributor towards the esteem need of the employee. HR manager added that “Recognition increase the motivation of employees and employees are persuaded through feeling a feeling of achievement and accomplishment for meeting individual and expert objectives”.

The employee recognition such as employee of the month and offering financial incentives significantly contribute towards the motivation and performance of the employee. The recognition of the employees by the management is important and motivates the employee in wider context. The two important variables based on the Maslow hierarchy need of belonging and esteem need is important variable in Chinese context.

4.2.3 Training

Question no. 8: How actively training programs are managed by the FAW HR and what impact do you think training have on motivation and performance of the employees?

The next important examined the value of training towards the motivation and performance of the employee in the FAW. Training is an important aspect when evaluating the performance of the employee in the organisation. The objective is to determine how HR value the importance of the training in terms of motivation and performance of the employee. The training contributes towards the recognition and performance of the employee.

The HR manager underlined that “Employees training have on motivation and performance of the employees based on information, aptitudes, and capacities expected to accomplish the objective through Training programs at senior level” and the importance of the training but the results highlighted that training importance varied based on the role of the employee and position.

The technical workforce and especially the engineering team have a high emphasis on the training but employees with the general role are concerned with training and performance. The motivators are useful to create motivation in employee and dissatisfiers define the working environment. Therefore, training is viewed as motivator based on the job and role of the employee.

4.2.4 Job enrichment and enlargement

Question no. 9: Do job enrichment and enlargement offer FAW opportunity to increase the motivation and performance of an employee?

The last question is designed to determine the impact of the job enrichment and enlargement impact on the performance of the employee. The motivator factors are the satisfiers in an organisation because individual in an organisation tries to adjust with the environment of the organisation. HR manager responded that job enrichment is crucial based on the position and role of the employee of the organisation. “Job enrichment and enlargement offer FAW opportunity to increase the motivation and performance of an employee“.

Therefore, the motivator’s factors are relatively linked to the position of the employee rather deployed at the broader level in the FAW. The motivators are useful to offer benefit to the employee based on the performance measured and this allows achieving the balance between the employee and organisation expectation varied at organisation level.

Figure 8: Motivation factors – FAW

4.4 Discussion of results

The motivation is set of the forces which originate within and beyond the individual to direct its work behaviour and encourages the individual to attain and achieve goals. According to Reiss (2012) intrinsic motivation is the behaviour of the employee which affects the performance of organisation for personal benefit rather seeking external rewards. HR response has highlighted that the intrinsic motivation factors are associated with the job role and focused is given to technical role rather providing measures such advancement and training to wider stakeholders in the organisation.

Moreover, the extrinsic motivation occurs when the behaviour of the employee is motivated to earn the reward or avoid the punishment. The psychological motivation can be achieved through providing some basic need such as salaries and lunch break. The hygiene factors which satisfied the basic factors as defined by Maslow is largely emphases and focused by the HR in FAW.

According to Maslow (1943) individual develops the sense of belonging, then the next stage is to develop a degree of importance. This involves evaluation of oneself as well as attracting the attention of other. This aspect of the Maslow theory is ignored based on the social and cultural aspect and focus is given to provide the monetary which belief to deliver motivation and increase the performance of the employees.

According to Baumeister (2016), The argument put forward by the Maslow theory is that self-fulfilment cannot be satisfied  and therefore, in order to motivate the individual, it is important to fulfil the dominate need which motivate the individual in a particular way.  The results show that one size fit all approach is applicable in the FAW and extrinsic rewards are set and deployed at organisation a key contributor of the motivation.

According to Patrick (2014), the esteem motivators are recognition for the employees and providing a special assignment to the employee which makes them feel valued and appreciated. The intrinsic rewards are not associated with all roles and training programme and advancement is based on the job characteristic. There is a lack of esteem value and focus on implementation strict control through supervision and less degree of autonomy.

According to Herzberg (1959) categorises the employee motivating into two factors which are hygiene factors and motivators. Hygiene factors are the extrinsic factors which are job security and wages as well as motivators are the intrinsic factors which are an achievement, job satisfaction and recognition. The leadership and management believe in strong supervision and control of the employee which contribute towards the performance of the employee. The HR manager responded that relations are not beneficial because of the social style in the Chinese culture.

According to Ansen & Samuel (2014), the dissatisfiers in an organisation are working conditions and environment, salaries, policies and administrative practices, job types and responsibilities, job security, the dynamic of the teamwork. To an extent, this hygiene are effective managed and maintain at the FAW but no emphasis are given to achieve motivation but rather implement the policies at the organisation level.

Motivators in an organisation are recognition, achievement, responsibility and growth in the organisation. The achievement of the hygiene factors which result in motivation among the employee present significant problem because human behaviour is complex and hygiene factors might not result in motivation among the employee. The employee recognition such as an employee of the month and offering financial incentives significantly contribute towards the motivation and performance of the employee.

The commonly used method to motivate the employee is reward and recognition program based on a number of financial and non-financial incentives. The financial incentives include competitive salary, fair bonus scheme, medical allowance and other financial benefits whereas non-financial incentives include promotions, recognition. The HR manager highlighted that segregation of duties and autonomy is the significant challenge based on the knowledge and social structure of the Chinese society.

The satisfiers include the recognition is given to the employee; aspiration and energy provided by the leader to achieve the goal congruence. The HR manager emphasised the importance of the training but the results highlighted that training importance varied based on the role of the employee and position. The extrinsic motivation is the sources of employee satisfaction in an organisation and associated with job security, working condition, salary, promotion and tangible rewards. These are not determined at the individual level but rather viewed and benchmarked at the organisation level at FAW.

The hygiene factors at FAW is viewed and deployed at the organisation to achieve motivation. The intrinsic motivation defines the relationship of the individual with the job itself and linked to motivation and aspiration of the individual such as responsibility, recognition, achievement and advancement. Nevertheless, FAW reviewed this specific to individual and job specific.

Chapter 5: Conclusion and Recommendation

5.1 Conclusion

This chapter enclosed the conclusion and recommendation of the study. The objective of the study was to determine how HR uses the motivators and satisfiers (motivation theories) to achieve the motivation and performance of the employee. The objectives were to determine motivation measures among the Chinese workforce as well as relationship of these variables to determine the how HR views these as performance and motivators in the FAW. The motivation assumption was that motivated workers deliver good performance whereas dissatisfied employee has poor performance. The two motivation theories which are used to study the employee motivation which consequently impact the performance based on the extrinsic and intrinsic motivators.

Objective 1: To determine the approach of HR in terms of motivational measures deployed and effectiveness of these measures in FAW.

The first objective of the study was to determine the HR approach towards the motivation development in the FAW. The commonly used method to motivate the employee is reward and recognition programme based on a number of financial and non-financial incentives. The financial incentives include competitive salary; include promotions as well as good working condition. The result of the study has highlighted that the psychological and safety needs are effectively part of the HR practices in FAW.

The two evident differences in the Chinese context is that autonomy is considered as relative low factors towards the employee motivation whereas self-actualisation is concerned with position and designation of the employees in the organisation. To summarise, the hygiene factors are an important part of the HR practices to develop motivation among the workforce in FAW whereas motivator is relative deployed for the specific role.

The motivation based on the hygiene factors recognised and encouraged by the HR at FAW. The interview highlighted that factors such as salaries are adequate whereas the motivators and self-actualisation are considered for the specific job role in the organisation. The lack of training provision for all level of employees’ shows that subordinates are treated based on their role and responsibility. The training programme is relative weaker for the employees at all level which hinder the performance.

Objective 2: To analyse the way in HR practices improve the motivation and performance of the employees in FAW.

The study has highlighted that there is a positive relationship between the performance and motivation measures in the FAW. However, the social context has highlighted the differences between the level and interaction of the HR practices to develop and deploy motivators and hygiene factors in FAW.  The HR practices in FAW are limited in practice and to the extent do not fully support the employee motivations. The range of measures and motivator factors are deployed based on the need and position of the employee.

Therefore, the HR practices believe there is no positive relationship and effect of a motivator and rather use hygiene factors to motivate the employee. The limited applicability and satisfaction of the self-actualisation represent the limited approach of HR in FAW. The range of hygiene measures largely related to the monetary measure is used to satisfy the psychological and safety need of the employees.

The value of the employee relation is relatively lower and HR believes that financial incentives are significant for good performance. The intrinsic motivations are significant such as training and recognition are used at the organisational level. Therefore, the motivator factors are poorly practices by the HR and therefore, require the improvement to enhance the motivation of the employee.

Objective 3: To appraise the relationship between the motivation measure deployed by HR and performance of the employee.

The study has highlighted the relationship of the motivation and performance of the employee has a limited perspective in FAW. The HR practices are relatively focused on the monetary benefits and employees who have a less technical role are viewed less important. The motivators’ factors and self-actualization needs are associated with aspiration and plans of the job, focusing on recognition and sense of responsibility is associated with the position and job enrichment as well as career advance is associated with specific roles.

The satisfiers include the recognition is given to the employee, aspiration and energy provided by the leader to achieve the goal congruence, advancement in the job, job enrichment and enlargement, responsibility and degree of challenges which make the employee feel valuable are associated with senior roles. the motivation of the employees and impact of monetary and non-monetary variables to analyse and evaluate their contribution towards the motivation in terms how they contribute to the employee motivation and affect the performance of the employee and job satisfaction of employee.

The study has highlighted that HR practices are largely associated with hygiene factors whereas motivators are not viewed as motivators for all employees in the organisation which hinder the result in the limited applicability of the motivators approach in the Chinese context and organisation such as FAW.

The hygiene factors have viewed as success factors to achieve motivation in the FAW but self-actualisation needs and esteem needs are relatively ignored by the HR. The results have highlighted that hygiene factors such working condition, salary and job security are largely deployed and meet to develop the motivation among the workforce. This present a dilemma whether HR viewed motivators less valuable and alone hygiene factors are useful to develop motivation among the employees.

The HR practices are relatively limited in scope and HR is less concerned with the performance of the overall organisation rather focused on the specific role. The results show that monetary benefits are relatively valued as motivation factors.

5.2 Probable motivators and Recommendations

  • The conclusion of the study highlighted that the range of possible measures could be used to increase motivation and performance through HR practices. The training program should be developed and deployed for larger population rather focused for specific roles.
  • The degree of autonomy and responsibilities should be delegated to employees rather exercising strict control and supervision. The motivators such job enrichment and enlargement should be based on the skills and capabilities of the employee rather job specific.
  • The HR should develop and deploy training programs for a large number of employees to improve skills and capabilities of the employee and support self-actualization need of the employee.
  • The employee should be given more responsibility and accountability rather practices strict control and supervision.
  • The job enrichment, employee relation and autonomy should be encouraged to increase the motivation and satisfaction of the employee.
  • The hygiene factors are relatively focused and HR should focus on the motivators to increase the motivation of employee at all levels rather for senior roles only.
  • The satisfiers include the recognition is given to the employee; aspiration and energy provided by the leader to achieve the goal congruence and degree of challenges which make the employee feel valuable.

 

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