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Impact of Workplace Motivation on Performance

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Submitted By ist2237
Words 12034
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CHAPTER ONE
INTRODUCTION

1.1: Introduction /Background Day by day business world is becoming more competitive, its environment changes rapidly and the introduction of new technologies and techniques make it even a worse scenario for the organizations in order to survive. These challenges compel organizations to have more motivated workforce in order to stay in the competition and to face the challenges successfully. Organization needs the employees more than ever to produce outstanding result and maximize their effectiveness and efficiency. Organizations have realized that to motivate their employees they have to introduce reward system. A system where these organizations appreciate the performance of their employees and encourage them toward more quality work. Organizations have relies that it is not the punitive actions for bad performance which will bring the motivated employees but this reward system will do. This new thinking is driving away the organizations from “command and control” approach towards the “advice and consent” to motivate their employees. Analyzing the factors that affect job satisfaction, motivation and employee performance Agency theory could be helpful. Agency theory indicates the limits to which the organizations can hold their employees responsible for the organization performance.
Agency theory can be use to solve the problems arise under conditions of incomplete and asymmetric information when a principal hires an agent. According to the agency theory the principal (owner or owners) must give delegate full authority to the agents (employees or managers) to work on their behalf and run the organization. Harrison R and Kessels J. (2004, Pp 25-26)
The base behind this theory is that during the work for the organization the employee hired by the owner will try to achieve his own goals as will as owner’s goals. But according to Williamson

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