Literature Review
Leadership and management are two concepts central to organizational performance. Azad (2017) argues that leading and managing are complementary and similar because they describe varied levels of organizational administration (p. 1). The leadership and management literature emphasizes that successful organizational leaders share particular leadership and management qualities. One of these qualities is the ability to influence others. However, leaders and managers demonstrate different skill sets. While leaders are charismatic and have a sense of mission, managers demonstrate organizational, delegation, and negotiation skills. Therefore, effective organizational leadership and management entails influencing employees to enhance productivity by giving them a sense of mission and organizing their work. Algahtani (2014) emphasizes that organizations need effective leadership and management for optimal success (p. 72). The most studied phenomenon in organizational leadership and management is motivation. Igbashangev (2023) defines motivation as a set of psychological processes that arouses and directs a person’s behavior toward attaining a defined goal (p. 3). This definition suggests that motivation is psychological. One of the strategies that leaders and managers use to motivate employees is creating the right work conditions (Igbashangev, 2023, p. 3). These conditions include safe work environments, supportive managers, competitive or satisfactory remuneration, and personal and professional development opportunities. Under these conditions, employees demonstrate job satisfaction and a desire to optimize their productivity.
The Conceptualization of Employee Motivation
Motivation has varied implications for the human population. From the organizational perspective, motivation drives leaders, managers, and employees towards greater productivity that leads to the attainment of strategic goals. While motivation is internal, people externalize it through behavior. Therefore, the best way to know whether an organization has motivated employees is to examine employee behavior in diverse settings.
The organizational literature documents varied conceptualizations of motivation. One conceptualization is that motivation entails forces within individuals that propel them to satisfy basic needs or wants (Acquah et al., 2021, p. 25). From this understanding, motivation is internal. As an internal state, motivation is only observable through outward manifestation, meaning behavior. Another conceptualization is that motivation is a process that begins with a need that activates behavior aimed at a goal (Osemeke & Adegboyega, 2017, p. 162). This definition suggests that motivation is physiological or psychological. Another conceptualization is that motivation is the willingness to exert effort to achieve organizational goals while satisfying individual needs (Osemeke & Adegboyega, 2017, p. 162). In other words, motivation can be contextualized to the organization or individual. Another conceptualization of motivation is that it is an outcome of processes that are internal or external to the individual that arouses enthusiasm in the pursuit of a goal (Osemeke & Adegboyega, 2017, p. 162). From this understanding, motivation can be internal or external. Another conceptualization of motivation is psychological processes that initiate and direct intensified and persistent behavior (Osemeke & Adegboyega, 2017, p. 163). This understanding suggests that motivation entails some intensity and persistence in effort. Employees must find a reason to exert such effort in the organizational setting.
Leadership and management experts reason that motivation can be intrinsic and extrinsic. Intrinsic motivation entails emotions and feelings that make people attached to needs or defined goals, while extrinsic motivation entails external forces that inspire action or effort (Osemeke & Adegboyega, 2017, p. 163). This understanding suggests an interaction between an individual and the environment. The literature defines intrinsic motivation as the degree to which individuals exert effort in the workplace to achieve intrinsic values, such as job satisfaction (Osemeke & Adegboyega, 2017, p. 163). As such, intrinsic motivation refers to individuals’ inner drive to accomplish a goal that delivers some satisfaction. On the other hand, extrinsic motivation refers to external forces that propel action, effort, or behavior (Osemeke & Adegboyega, 2017, p. 163). From this understanding, extrinsic motivation comes from the environment. Therefore, intrinsic and extrinsic motivations are essential in optimizing individual efforts toward a defined course of action.
In essence, the different conceptualizations above suggest that motivation is a force that drives individuals to exert effort to accomplish a goal or satisfy a need. Exerting effort entails demonstrating behaviors in tandem with the desired outcome, such as completing tasks within defined timelines to ensure timely product or project delivery. Therefore, from an organizational perspective, motivation is goal-directed, outlines the pursuit and achievement of defined goals, and is environmentally dependent. The environment that influences motivation is leadership and management.
Abraham Maslow’s Hierarchy-of-Needs Theory
Abraham Maslow’s hierarchy of needs theory is essential in understanding how leaders and managers can motivate employees to optimize their productivity to achieve set organizational goals. The theory proposes three tenets: human beings are motivated by needs, the order of these needs is not rigid, and most human behavior is multi-motivated (McCleskey & Ruddell, 2020, p. 7). In short, some needs drive individuals by influencing varied behaviors but are also influenced by external circumstances. There are five basic human needs in Maslow’s hierarchy, from physiological at the bottom to safety, social (love and belonging), esteem, and self-actualization higher in the hierarchy (Johnson, 2019, p. 183). Ideally, one must satisfy the basic needs at the bottom of the hierarchy before the more complex needs that are higher in the hierarchy. In short, one must meet physiologic needs before thinking of self-actualization.
Physiological needs, which are at the bottom of the hierarchy, represent basic human needs, such as food, drink, and air. As such, these needs are critical for survival. Organizational leaders help employees meet physiologic needs by ensuring remuneration is responsive to the economic times. Doing so ensures employees can afford food and shelter. On the other hand, managers should ensure adequate breaks in a workday to allow workers to take lunch and meet other needs like visiting the bathroom.
Safety needs represent the need for basic security, including feeling safe and having the freedom to discover one’s life’s purpose. Leaders and managers in an organization help employees meet these needs by ensuring the work environment is free of hostility, defined by a structure that clarifies rules and protocols and facilitates the expression of ideas.
Social needs represent needs that make people feel loved and have a sense of belonging, such as family, friends, and intimacy. This level of needs is difficult to satisfy in the organizational setting. Nonetheless, leaders and managers should help employees meet the need for love and belonging by appreciating every employee regardless of their background or performance. Additionally, they should encourage teamwork and promote a spirit of comradeship in the workplace to create cohesion and harmony in the context of behavioral and cultural differences.
Esteem needs represent needs that give individuals a sense of self-worth and belief in their ability to succeed. Naturally, people have deficiencies that undermine their sense of self-worth. Hence, they adopt coping behaviors to enhance self-esteem. In essence, coping mechanisms help people to perform at their peak because they make someone believe in themselves. Besides developing their sense of purpose and self-worth, leaders and managers should encourage employees to believe in their capabilities. They can do this by modeling behavior and establishing support mechanisms, including coaching, mentorship, and training.
Self-actualization needs represent the ability to live to the fullest potential and fulfil life’s purpose. Evidence of self-actualization includes autonomy, creativity, deep interpersonal connections, emotional intelligence and maturity, and strong character. These traits enable individuals to perform at their peak and demonstrate unique personal values, such as integrity and trustworthiness. Therefore, leaders and managers should aim at self-actualization through personal and professional development, enabling them to exhibit traits and values worthy of authentic and effective leaders and managers. Additionally, they should ensure the work environment gives employees a mission that gives them a purpose for living and working. One strategy for achieving this outcome is investing in employees through training that equips them with essential knowledge and skill sets. Through this empowerment, employees can perform to their fullest potential.
Management
Management is critical to organizational performance because it defines short-term goals and uses different approaches to achieve them. One of these approaches is performance management, the practice of establishing goals, regulating standards, ascribing and appraising work, and meting out rewards (Mansaray, 2019, p. 184). As such, organizations use it to develop teams and mechanisms for developing employees and evaluating performance, such as employee supervision. These mechanisms enable managers to monitor employees closely to ensure no barriers undermine work processes that help attain the defined organizational or departmental goals.
Maslow’s theory of motivation helps managers understand what they must do to motivate employees to exert effort in performing their duties. Based on the theory, employees are more productive in a work environment that supports their attainment of varied needs (Durmuş, 2024, p. 138). Performance management is critical in managing a workplace defined by various work activities. Some features of such a workplace include role conflict and conflicts between managers and employees and among employees themselves. These problems are likely to demotivate employees. Therefore, managers should motivate employees to remain focused on the defined goals. There are several outcomes that managers should aim at when motivating employees: a reason to stay in the organization, a reason to come to work regularly, performance management, and good citizenship (Mansaray, 2019, p. 184). When giving employees reasons to remain in the organization and come to work regularly, managers should create a work environment that attracts and energizes people. Performance management entails empowering employees to exert intense, sustained effort to achieve high-quality output. Good citizenship involves employees committing to the organization and owning the defined goals.
Leadership
Leadership is critical to organizational performance because it defines long-term goals and sets out a framework of behaviors necessary to achieve them. The organizational literature emphasizes different leadership styles, including autocratic, charismatic, democratic, servant, and transformational (Johnson, 2019, p. 183). The concept that underpins effective leadership is authenticity, meaning being true to oneself and authentic in action. Proponents of authentic leadership argue that authenticity determines the success of any leadership style (Johnson, 2019, p. 183). Since authenticity is the true mark of successful leadership, leadership styles should not be a concern when motivating employees to achieve organizational goals. Authentic leaders possess distinguishing characteristics, including believing that humans are the most important asset (Johnson, 2019, p. 183). This human resource framing ensures the leader focuses on the needs of the employees, leads with purpose, builds authentic relationships, and makes balanced and objective decisions.
Relational leadership styles closely connected to authenticity are the servant and transformational styles. A servant leader is defined by a high sense of morality and selflessness, as well as a strong desire to put the needs of others before their own (Johnson, 2019, p. 183). Servant leadership is about doing what is right for the followers by listening to their needs and doing what it takes to meet them. Servant leaders know they must develop followers to be the next generation of leaders. Authenticity in servant leadership is exhibited through altruism and a desire to help others develop personally and professionally. Transformational leadership enhances followers’ consciousness about the desired outcomes and how to achieve them. In short, the mark of a transformational leader is to inspire followers to prioritize the organization’s needs before themselves. As such, these leaders use Maslow’s theory of motivation to facilitate employees’ self-actualization through attaining full potential (Johnson, 2019, p. 183). Authenticity enables transformational leaders to focus on the follower’s abilities and skill sets and develop them to perform optimally. Authentic leadership theory encourages leaders to adopt a unique leadership style if it aligns with their character and personal values (Johnson, 2019, p. 183). Therefore, while servant and transformational leadership exhibit authenticity the strongest, organizational leaders can demonstrate authenticity through other leadership styles. In essence, the leader should aim at a leadership style that allows them to motivate employees by identifying their needs and facilitating their attainment.
Work Performance
Work performance determines whether an organization achieves its strategic goals and objectives. Organizations measure work performance by evaluating employees’ level of work qualitatively and quantitatively (Bridgman et al., p. 81). The aspect of quality measures the extent to which employees’ work performance is per the assigned duties and responsibilities. An employee can do much work but fail to execute their primary assignments. This phenomenon is the leading contributor to work conflicts. According to the literature, role ambiguity occurs when employees are unsure who should do what. Therefore, an organization can create conditions that contribute to employees doing so much outside their job description. The quantity aspect measures the amount of work employees do in any given period. Therefore, the top leadership in an organization should collaborate with managers in all the departments to design work and assign it to employees based on their job descriptions (Bridgman et al., p. 81). They should do this in a manner that allows employees to satisfy their needs, attain job satisfaction, and commit to the organization and its strategic goals. In short, leaders and managers should collaborate to motivate employees to remain in the organization, come to work regularly and exert high levels of effort toward the organization’s strategic goals.
Various factors affect employee work performance. Izzah et al. (2020) identify leadership style, compensation, motivation, and work discipline as some of these factors (p. 324). In particular, motivation plays a critical role in facilitating the optimal execution of duties and responsibilities because it focuses on employees’ needs as outlined in Maslow’s hierarchy. Further, Izzah et al. (2020) note the importance of psychological factors in motivating employees (p. 324). These factors include employees’ abilities, including potential (IQ) and real (knowledge) abilities. These factors are critical in developing a mental attitude in employees that strives for optimal work performance. The scholars conclude that leaders and managers should strive to promote employees’ abilities and skill sets, attitudes, behaviors, perceptions, and the right personality (Izzah et al., 2020, p. 324). In this respect, leadership and management support organizational performance by focusing on factors that optimize employee productivity. These factors include authentic leadership, competitive compensation, conflict management, job design, and personal and career development (Izzah et al., 2020, p. 324). A work environment that addresses these factors benefits from a motivated workforce that exerts high levels of effort toward the defined organizational goals. Diligence and discipline are the notable features of work performance in this environment.
The above factors suggest that leaders and managers should address internal and external factors to motivate employees toward optimal productivity. Internal factors that underpin intrinsic motivation include employees’ intellectual ability, emotional intelligence, job stress, and job satisfaction. External factors that underpin extrinsic motivation include a safe work environment, competitive compensation, and authentic leadership and management systems.
Case Study
The study by Izzah et al. (2020) explored the impact of motivation on employee work performance by examining the factors that undermined employee performance while working from home (WFH) during the COVID-19 pandemic. The study sample included staff from two categories of university staff in Jakarta: Category A, comprising staff from the top 10 best universities, and Category B, comprising staff from universities not in the top 10 rankings. The researchers found several differences in employee work performance. When asked about the obstacles they faced while working from home, Category A staff stated an unstable internet network and complex team coordination (Izzah et al., 2020, p. 330). However, they emphasized that the university leadership and management team responded to these hardships by making improvements that allowed smooth execution of work. In contrast, Category B staff stated they experienced more obstacles and received minimal support from university leadership and management to facilitate smooth work execution (Izzah et al., 2020, p. 330). The different experiences of Category A and B staff confirm that leading universities benefit from effective leadership and management that believes in motivating employees to optimize work performance. In short, the top 10 universities in Jakarta prioritize organizational factors that motivate employees to maximize their productivity, such as employee support and quick resolution of issues that undermine optimal work performance.
The researcher also found the implication of motivation in the two staff categories. They established that Category A staff were adequately motivated when working from home, just like when working from the office before the pandemic (Izzah et al., 2020, p. 324). In this respect, the university leadership and management had ingrained motivation into the organizational culture. Ganta (2014) confirms that motivated employees remain calm and feel comfortable and secure despite unpleasant internal or external circumstances (p. 223). In other words, motivated employees stay focused on their work, whether an organization is reporting losses or there is a pandemic. One Category A employee stated:
Before starting WFH, the management provided guidance through circulars and meetings via Zoom regarding changes in the work system. The leader always motivates all employees to continue working as usual and not to worry about things they are afraid of, such as layoffs or reduced salaries, so that employees still feel safe and comfortable even though they have to work from home, and staff remain enthusiastic and show good performance considering that the institution has shown its concern for employees (Izzah et al., 2020, p. 330).
This statement confirms that the leadership and management of the top 10 universities in Jakarta value employee motivation because of its positive impact on employee performance. The statement contrasts sharply with that of a Category B employee:
Before starting WFH, employees were not briefed by the leadership regarding changes in the work system. Leaders never communicate that all employees continue to work as usual and do not have to worry about things they fear, such as layoffs or salary reductions. Many employees feel insecure and comfortable while working at home. And this makes employee morale decrease with a lack of attention from institutions to employees (Izzah et al., 2020, p. 330).
This statement shows that the leadership and management teams in universities not ranked in the top 10 in Jakarta do not value employee motivation as a factor contributing to optimal work performance. In essence, while the top 10 universities believe in guiding employee work performance through motivating strategies, those not ranked in the top 10 are casual about employee motivation. Indeed, this difference in approach to employee motivation distinguishes some universities as the best and others as average or poor in leadership and management. Eventually, the difference separates leaders and followers in Jakarta’s higher education industry or market.
The study established the essence of intrinsic and extrinsic motivation in influencing employees to optimize productivity. The researchers found that Category A staff have intrinsic motivation that compels them to maximize work performance without close supervision by managers or supervisors (Izzah et al., 2020, p. 330). In other words, the staff from the leading top 10 universities found reasons within themselves to exert higher levels of effort to execute their work. These reasons include a strong desire for job satisfaction. Meanwhile, the researcher found that Category B staff exhibited extrinsic motivation (Izzah et al., 2020, p. 330). As such, they relied on the university leadership and management team to give them reasons to exert effort in executing their duties. These reasons include attractive compensation, a safe working environment, and strong leadership.
The researchers established that Category A staff received more support than their Category B counterparts. Category A staff stated that the university leadership and management team offered more motivation if one could not complete their work on time (Izzah et al., 2020, p. 331). This motivation came in the form of showing concern about the factor(s) that could have caused such a problem and trying to find a solution. Meanwhile, the researchers found that Category B staff often received reprimands and sanctions from superiors if they did not perform as expected (Izzah et al., 2020, p. 331). Moreover, the superiors did not try to understand the reason(s) for such performance. One Category A staff noted:
Each division leader monitors his staff regularly by communicating via WhatsApp, Email, and telephone. Coordination is also carried out through meetings with Zoom. The supervisor asks the staff if there are difficulties in carrying out their duties. If there is a boss trying to discuss to find a solution. If all the work has been done well, the boss gives praise. The boss provides more motivation so that employees remain enthusiastic about working and have a sense of security and comfort. (Izzah et al., 2020, p. 331).
The differences in Category A and B staff experiences underscore the fact that successful organizations have leaders and managers who value employee motivation. The leadership and management team in the leading top 10 universities in Jakarta inspire employees to do their best by addressing issues that undermine productivity. In this respect, they demonstrate authenticity by arousing employees’ enthusiasm through motivating behavior. As a result, their staff have every reason to exert higher levels of effort in executing work, thereby propelling the universities to greater heights of success in the Jakarta higher education market. One can conclude that the top 10 universities in Jakarta benefit from servant leadership that prioritizes staff welfare and personal and professional development. They also benefit from transformational leadership that develops employees’ abilities and skill sets so they can do their best to help the universities accomplish strategic goals. In contrast, the universities that are not ranked in the top 10 have transactional leaders who see employees’ value in terms of what they give back to the university. As such, leaders and managers reward employees when they produce expected results and punish them when they fail to meet expectations. Instead of seeking to know why employees are not producing optimally and offering solutions, the leaders and managers reprimand and sanction them for lackluster performance. Such a work environment is demotivating because it does not inspire employees to do and give their best.
Employee Retention
Besides inspiring employees to exert higher levels of effort towards organizational goals, Maslow’s motivation theory plays a crucial role in retaining employees. As one of the most critical resources in an organization, employees are vital to an organization’s competitiveness. In this respect, organizations do their best to attract and retain talented employees through attractive compensation and continuous training to develop their abilities and skill sets. Nonetheless, no organization can force employees to remain employed if they find better personal and professional development opportunities elsewhere. This reality underscores the efforts of human resource (HR) departments to provide an attractive work environment that compels an employee to remain employed. Kossivi et al. (2016) note that a competitive business environment, a job-hopping mindset, and attractive job opportunities are among the factors affecting employee retention in organizations (p. 262). Therefore, HR managers aim to ensure that the organization gives employees sufficient reasons to remain employed. These reasons are the factors that motivate employees to stay.
Organizations have devised different strategies for retaining employees. One strategy is using slogans to communicate the organization’s commitment to and value of its employees. For example, Tesco’s slogan is “It is our people who make the difference where it matters most…” and Kellogg’s slogan is “…we believe that competitive advantage is achieved through our people…” However, these slogans can only be meaningful if they are accompanied by the practical motivation of employees to commit to the organization. Hussainy (2020) emphasizes that organizational leaders must proactively design retention-focused practices by measuring and evaluating their relationship with employees from time to time (p. 40). Maslow’s theory of motivation is a tool that these leaders can use to give employees a reason to stay because it addresses the needs vital to employees. To ensure new and young employees stay, organizational leadership should provide a means to meet physiological, security, and social needs, including food, clothing, shelter, safety, family, and friends.
However, as these employees mature in employment, their needs change to esteem needs, such as seeking identity in the organization and community. As a result, they begin looking for job opportunities that would help them meet this need, such as an employer willing to give them a managerial position. As such, organizational leaders should facilitate employees’ personal and professional development through promotions as they mature in employment (Hussainy, 2020, p. 42). Promoting employees to managerial positions allows them to meet esteem needs. In turn, these employees commit to the organization because they can see that it cares about their personal and career growth. In other words, meeting employees’ needs early in employment and as they mature in the organization breeds loyalty and commitment. As they stay longer in employment, these employees become an integral part of the organization and use their abilities and skills to help achieve organizational goals.
However, organizational leadership should know that the ultimate goal of any person is self-actualization. As such, they should create opportunities that enable loyal and committed employees to self-actualize. They can do this by considering employees for top positions that allow one to demonstrate self-actualizing behavior, including autonomy in decision-making and innovative thinking and leadership. The benefit of ensuring employees attain this level of need is that organizations can retain talent developed through the ranks. Such talent is crucial in creating and maintaining an organizational culture defined by unique leadership and management.
In sum, Maslow’s hierarchy of needs underpins a motivation theory that emphasizes five needs that determine employees’ behavior, including work performance and commitment to the organization. Organizational leaders and managers are critical in influencing employees to optimize productivity and remain loyal and committed to the organization. They do this by motivating employees when they create conditions that allow them to meet physiological, safety, security, social, and self-actualization needs.
References
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