Herzbergs Theory Of Motivation Management Essay

After describing research background, problem statement, research question and objective, and significant of study in chapter 1, in this chapter provide the literature review of the past empirical studies. It is discuss about the theoretical foundation, review of the prior empirical studies of the independent variables, research model and hypotheses development.

2.1 Theoretical Foundation

The main contribution of this research is Herzberg’s theory of motivation. This theory is also known as the two-factor theory. Herzberg’s motivation-hygiene theory is developed by Professor Frederick Irving Herzberg in year 1959 (Herzberg, 1966). It divides into two groups of factors known as the motivator factors and hygiene factors. Table 2.1 shows the factors of motivator and hygiene which are lead to job satisfaction or job dissatisfaction.

Source: Chen. K. (2005). Factors affecting job satisfaction of public sector employees in Taiwan. ProQuest Dissertations and Theses.

Under hygiene factors, lower level of employees’ needs will lead to de-motivate if they do not meet the factors but not necessarily motivate. When higher level of employees’ needs is met, therefore true motivation only exists (La Motta, 1995). According to Herzberg (1966) motivators are the real factors that motivate employees that can create job satisfaction and achieve the organization’s goal.

In prior research, Tan and Waheed (2011) are examined that what can motivate employees and their level of job satisfaction in the retail industry by using Herzberg’s motivation-hygiene theory. They founded that working conditions are the most significant in motivating sales personnel. The second is recognition and followed by company policy and salary. These were the factors that improved level of job satisfaction.

Other than using Herzberg’s motivation-hygiene theory in the retail industry, Azash, Safare and Kumar (2011) are made a study about the motivational factors and job satisfaction on selected public and private sector bank employees in India. In Malaysia, these are some researchers done a study by examines the relationship between motivator and hygiene factors of the two-factor theory and job satisfaction of Gen-Y (Golshan et al., 2011).

Table 2.2: Brief Definitions for the Factors of Herzberg’s Motivation-Hygiene Theory

Factors

Definition

Recognition

Acts of praise, notice, or blame complete by one or more peer, superior, colleague, client, management person, and the general public.

Achievement

Accomplishment of actions including instances where failures were incurred. Similarly, instances were included whether success or failures were incurred.

Work Itself

The actual job performance connected to job satisfaction.

Responsibility

Satisfaction resulting that being given power of personal work or new job responsibilities and the work of others.

Advancement

Selected an actual change in job status.

Possibility of growth

A possible where was change in status, in fact, the change could be downward or upward in status.

Supervision

The supervisor’s willingness to teach subordinates and willingness or unwillingness to delegate responsibility.

Policy and administration

Events of the organization which included some aspects were related to job satisfaction.

Working condition

Quality of work, physical working conditions, and facilities which are related to job satisfaction.

Interpersonal relations

Relationships between subordinates, superiors and peers.

Job security

Feeling that person feel have an appropriate job and also guarantee its persistence as well as absence of threatening matter in the future.

Salary

All sequences of actions in which major role is compensation.

Source: Castillo, J. X., & Cano, J. (2004). Factors explaining job satisfaction among faculty. Journal of Agricultural Eduction, 45(3).

According to Tripathi (2001) employees can be motivated by economic reward, job security, recognition, promotion and training to enhance job satisfaction. Robbins (2005) also shows work itself were most important factors that influence job satisfaction. In this research, Herzberg’s motivation-hygiene theory will mainly be undertaken to investigate on the significance of factors such as commission pay, job security, opportunities for advancement and development and work itself in affecting job satisfaction among insurance agents in Malaysia.

2.2 Review of the Prior Empirical Studies

2.2.1 Commission Pay

According to Cheng (2011) commissions is a sum of money based on individual capacity and performance upon completion of a task that generally paid as percentage of the sales based on sales volume, not for the period of time that individual work.

Pathak and Tripathi (2010) exploratory a study to investigate the relationship between monetary benefit associated with the job satisfaction of the Indian insurance field. A survey was conducted among 350 employees who had worked in or left insurers. Based on this study, it can conclude that monetary benefit is primary need for employees and is a variable that important to job satisfaction.

Besides, past researcher Tan et al. (2011) conducted a study to investigate the relationship between pay and its influences on the level of job satisfaction in the retail industry. Questionnaire had allocated to 152 respondents among the employees and conclude that pay have influence on the job satisfaction of employees. Therefore, pay was significantly and positively related to job satisfaction. Individual when receive high monetary payment are satisfied with their job.

Moreover, Parvin and Kabir (2011) also conducted a study to investigate the relationship between pay affecting the job satisfaction of pharmaceutical field. Researchers conducted research with survey method by closed-ended interview-schedule to collect primary data. The research concluded that pay is a significant factor that can influence job satisfaction among employees.

These few research shows the positive and significant relationship among the pay and job satisfaction. Thus, this research assumes that there is significant relationship between commissions pay and job satisfaction among insurance agents.

2.2.2 Job Security

According to Lacy and Sheehan (1997) indicated that an obvious relationship subsists between job security and satisfaction of employees in work. A forecaster of employees’ job satisfaction is security of services which bring out the meaning of a function that has a substantial connected to the job satisfaction of employees (Siddique, Malik & Abbass, 2002).

A study has been done by Noble (2008) to investigate how job security will influence the job satisfaction among sales managers. Questionnaires were randomly distributed to 292 sales managers of a national car rental chain in the United States. The findings demonstrated that there are positive relationships between job security and job satisfaction.

In addition, Gazioglu and Tansel (2006) carry out a research exploring the relationships between job security and job satisfaction within workplace employees. A total of 28,240 questionnaires were allocated to a sample of British employees from the Workplace Employee Relations Survey. The study concluded that job security is significant related to the job satisfaction.

Furthermore, Nikolaou, Theodossiou and Vasileiou (2006) conducted a finding to survey the relationships between job security and job satisfaction in European countries. In this study, a sample of 6,326 workers from Denmark, Finland, France, Greece, The Netherlands, Spain and The United Kingdom was selected and sent out the questionnaires. This research points out there is significant of associations between job security and job satisfaction.

Based on the three past studied above, this research proposes that job security is significantly related to the job satisfaction of insurance agents. Therefore, this study suggests that job security can help to improve job satisfaction among insurance agents.

2.2.3 Opportunities for Advancement and Development

Wong and Wong (2005) stated that opportunities for advancement and development is one of the vital motivation factors that may be used by employer to motivate the employees on their job satisfaction. According Robbins (1998) opportunities for advancement and development provide the employees’ opportunities for personal growth in their current workplace, greater responsibility and social status.

Lim (2008) conducted a study exploring the relationship between promotion opportunities due to technical expertise and job satisfaction of library IT workers. This research give some details about IT workers satisfy on their jobs compare with others. Data was collected using a random sampling technique which is out of 443 mail surveys were sent to IT workers of 30 libraries that were randomly selected from the 99 university member libraries of Association of Research Libraries in the United States and 202 surveys were returned by target respondents in result of 45.6%. From this research, the findings showed that there is a positive relationship between promotion opportunities and job satisfaction.

A research was done by Ch’ng, Chong and Nakesvari (2010) to investigate the relationship between promotion opportunities that influence job satisfaction of private college lecturers in Penang. Questionnaires were allocated to three colleges which is 180 sets among 19 private colleges. The questionnaires of this research collected back 135 sets from respondents. Based on this study, the result concluded that there is significant relationship between promotion opportunities with job satisfaction.

Naveed, Usman and Bushra (2011) carried out a study to investigate the relationship between promotion and job satisfaction in employees of glass industry in Lahore, Pakistan. The data collection showed that 156 sets of questionnaires were received back out of 200 questionnaires which were randomly selected from 1,500 employees. The findings of this research indicate that there is a moderate and positive relationship between promotion and job satisfaction.

Thus, this research assumes that an opportunity for advancement and development is positively related to job satisfaction among insurance agents according to three past studies. Nowadays, insurance agents are more emphasize in opportunities for advancement and development.

2.2.4 Work Itself

According to Robbins, Odendaal and Roodt (2003) work itself is the degree to which the job provides human being with stimulating tasks, the chances of learning and personal growth, and the opportunity to be responsible and accountable for the outcomes.

Shah, Rehman, Akhtar, Zafar and Riaz (2012) carried out a study investigating the relationship between the natures of work itself and job satisfaction of teachers in Public Educational Institutions in Rawalpindi area. The questionnaires of this study distributed to 379 respondents and 294 surveys were received. The findings of this research indicate that there is a significant relationship between work itself and job satisfaction.

In the report done by Chuang, Yin and Jenkins (2009) to examine the relationship between the work itself and job satisfaction of casino hotel chefs in Las Vegas. The surveys were conducted by interview 25 major casino hotel chefs and one chef from academic field. From the research conducted it was evident that there is positively relationship between the work itself and job satisfaction.

The research done by Castillo and Cano (2004) to inspect the relationship between the nature of job itself and job satisfaction of faculty members at the College of Food, Agricultural, and Environmental Sciences in The Ohio State University. Questionnaires of this research were distributed to 172 respondents and 148 questionnaires were returned from respondents. This research concludes that there is significant relationship between work itself and job satisfaction.

Based on three past studies above, the researchers propose that work itself is positively related to the job satisfaction of insurance agents. Thus, this study recommends that the work itself can help to improve the job satisfaction of insurance agents.

2.3 Proposed Conceptual Framework/Research Model

Figure 2.1: Theoretical Framework

Independent Variables Dependent Variable

Commission Pay

Job Satisfaction

Job Security

Work Itself

Opportunities for Advancement and Development

Source: Castillo, J. X., & Cano, J. (2004). Factors explaining job satisfaction among faculty. Journal of Agricultural Education, 45(3).

2.4 Hypotheses Development

Commission Pay

H0: There is no significant relationship between commission pays and job satisfaction among insurance agents.

H1: There is a significant relationship between commission pay and job satisfaction among insurance agents.

Job Security

H0: There is no significant relationship between job security and job satisfaction among insurance agents.

H2: There is a significant relationship between job security and job satisfaction among insurance agents.

Opportunities for Advancement and Development

H0: There is no significant relationship between opportunities for advancement and development and job satisfaction among insurance agents.

H3: There is a significant relationship between opportunities for advancement and development and job satisfaction among insurance agents.

Work Itself

H0: There is no significant relationship between work itself and job satisfaction among insurance agents.

H4: There is a significant relationship between work itself and job satisfaction among insurance agents.

2.5 Conclusion

From the past studies review in this chapter, it found that all the independent variables has significant relationship between the dependent variable. Research model and hypotheses were developed from the review of past studies. The research methodology will be providing in chapter 3.