TITLE OF THE STUDY :

A STUDY ON MOTIVATION FACTORS TOWARDS EMPLOYEE COMMITMENT AT BANK ISLAM MALAYSIA BERHAD SOUTHERN REGION

CONTENTS

1. CHAPTER 1 : 2.1 Introduction 2.2 Statement of the problem 2.3 Research questions/objevtives 2.4 Scope of research 2.5 Significant of the study 2.6 Key terms /concepts.

2. CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL 3.7 Literature Review 3.8 Conceptual/research framework 3.9 Hypothesis

3. CHAPTER 3 : RESERCH METHODOLOGY 4.10 Research design 4.11 Sample size 4.12 Sampling technique 4.13 Data collection technique 4.14 Data collection 4.15 Data analysis

4. DATA ANALYSIS AND FINDINGS 5.16 Introduction 5.17 Profile of respondent 5.18 Pilot test 5.19 Tests for normality of data 5.20 Findings

5. DISCUSSION AND CONCLUSION 6.21 Introduction 6.22 Discussion 6.23 Limitation 6.24 Recommendation 6.25 Conclusion

6. REFERENCES 7. LIST OF TABLES
8. APPENDIXES

BACKGROUND OF THE STUDY
1.1 Introduction
At one time, employees were considered just another input into the production of goods and services. What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation of employees become the primary focus of managers (Bedeian, 1993)
Every year establish companies involve their employees in periodical trainings and motivational activities because they have realized that organizational growth and effectiveness depends on the growth of the individuals, and such companies bear millions of rupees per annum on their human resources to foster the organization and to get competitive advantages over others. In developing countries where political, social, economic and technological instability are the major issues that are prevailing in all the circumstances of life and directly hit the performance and effectiveness of the organization in such circumstances a least amount of motivation is found which ultimately affect the employee’s commitment.
Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform.In the exploration of employee’s contribution to organizations, commitment of an employee is alleged to be the most desirable asset that any organization can have in order to attain maximum contribution. Furthermore, upholding the commitment of an employee is another challenge to organization, in which most managers are struggling to identify ways to win commitment from their employees.
According to (Muchinsky, 1997) and (Locke and Latham 1990) the problem of how to manage employees to gain their commitment has been a concerned to many managers. One of reason why this problem seems difficult, if not mysterious, is that motivation ultimately comes from within and therefore cannot be observed openly. As a result, most organizations are trying to shape the competency among employees via range of training and development programs. Alternatively, the use of other motivational approaches can enhance organization performance.
1.2 Problem Statement

As a country living in an era globalization, organization regardless of the size, the use of technology and market are facing low employees’ motivation in the workplace. Motivation gives impact on employees’ performance and it is a key construct in industrial and organizational psychology (Harrell,2008). Employees who face low motivation in their workplace tend to find their jobs more boring simple, ordinary and not creative. As a conclusion, employees prefer more in accepting their daily work environment and fewer enthused with the motivating aspects of their work environment (Paswan, Pelton and True, 2005). Research also shown that, workers who have low task performance, contextual performance and experience low job satisfaction has low commitment are more likely to leave the organization (Lawrence and Jordan,2009). In the exploration of employee’s contribution to organizations, commitment of an employee is alleged to be the most desirable asset that any organization can have in order to attain maximum contribution. Furthermore, upholding the commitment of an employee is another challenge to organization, in which most managers are struggling to identify ways to win commitment from their employees.
In the exploration of employee’s contribution to organizations, commitment of an employee is alleged to be the most desirable asset that any organization can have in order to attain maximum contribution. (Bedeian, 1993). Furthermore, upholding the commitment of an employee is another challenge to organization, in which most managers are struggling to identify ways to win commitment from their employees.
To be a committed employee a positive working environment, appreciation of work in terms of incentives, organizational commitment and job involvement is the physiological need for the organization and it also a key factor that enhances motivational level of the employees. Thus, we decide to conduct a study to know which are the main motivation factors that will impacts of employee’s commitment. We choose to conduct this study at Kulai Municipal Council.

1.3 Research Objectives
The main objective of this study is to investigate the main motivation factors that will impact of employee’s commitment. The objectives are :- 1. To identify the association between better employment opportunity and commitment to organization. 2. To determineassociation the between job involvement and commitment to organization. 3. To analyze associationbetween working environment and commitment to organization. 4. To examine associationbetween incentives and commitment to organization.

1.4 Scope of Research

Level
This research will focus on 4 motivational factors;employment opportunity, job involvement, working of implementation policies such as incentives and good working environment will create and affect employees commitment at Bank Islam Malaysia Berhad Southern Region. Time
The study will be conducted within 2 weeks starting from 27 May 2014. 1.5 Significance of the study
This study will help managers to identify:-
1.5.1 Managers can identify strategic approaches that might improve staff commitment and job satisfaction.
1.5.2 It can establish the perception of management and staff concerning the manner in which motivation is encouraged and developed.
1.5.3 To unlock the secret of what motivate individuals and their attitude towards work.

LITERATURE REVIEW
2.1 Introduction Motivation is a psychological and sociological concept as it relates to human behavior and human relations. It is the most fundamental and all pervasive concept of psychology. For motivation, sweet words are useful but are certainly not adequate. Motivation basically relates to human needs, desires and expectations. In other words, these factors suggest the measures which can be used for the motivation of employees.
This chapter provide a review of the literature on the motivation factors that will impact of employee’s motivation towards the employee’s commitment and to how better employment opportunity, job involvement, working environment, and incentives and rewards factor create and affect employee’s commitment towards an organization. Section 2.1 explain on incentives and reward factor section 2.2 discussing on better employment opportunity on the other hand section 2.3 discussing on job involvement, whereas section 2.4 explain about working environment. Section 2.5 provide conceptual framework and identifies the hypothesis of the study.
2.2 Incentives and reward factor
Flynn (1998) argued that rewards and recognition programs keep high spirits among employees, boosts up their moral and create a linkage between performance and motivation of the employees. The basic purpose of recognition and reward program is to define a system to pay and communicate it to the employees so that they can link their reward to their performance which ultimately leads to employee’s job satisfaction. Where job satisfaction, as defined by Lock (cited in Gruneberg, 1979, p. 3).). According to Legge (2009) and Armstrong (2007) organizations should embrace atotal reward system that incorporates both financial and non-financial incentives. Thisis exactly what Apple has done to date and given its success, this approach hasproven to be effective. 2.3 Better employment opportunity
Specifically, the ‘opportunity for career growth and development’ and ‘resources for career development’ emerged as the main issues in the career development category. (Andrew Simon 2005). Employees want respect and a place where they can grow and use their strengths doing work that matters to them. Employees want respect and a place where they can grow and use their strengths doing work that matters to them. (Deb Magnuson ,2012).

2.4 Job Involvement
Lawler (1986) sees job involvement as significant key factor for creating and increasing motivation of employees in view of organization and motivation play important role in productivity and performance on individual. If we see job involvement from the view of individual it may be believed as significant to individual’s own growth and satisfaction within the work environment as well as motivation and attitude directed to goal (Hackman & Lawler, 1971; Kahn, 1990; Lawler & Hall, 1970).). Employee job involvement has significant relationship with employee commitment. Employees who have high level of job involvement and organizational commitment are the more motivated than those who have low level of job involvement and organizational commitment, because they are fascinated by both job and organization (Blau&Boal, 1987).
2.5 Working environment
Work environment, according to Opperman (2002), is a composite of three major sub-environments via: the technical environment, the human environment and the organisational environment. Technical environment refers to tools, equipment, technological infrastructure and other physical or technical elements. The technical environment creates elements that enable employees perform their respective responsibilities and activities. ). To achieve high levels of employee commitment, organizations must ensure that the physical environment is conducive to organizational needs facilitating interaction and privacy, formality and informality, functionality and cross-disciplinarily. The statistical analysis confirms that confirms that employee well-being mediates the relationship between physical environment and employee commitment (McGuire, D. & McLaren, L. (2007).A more innovative working environment is also associated with increased staff collaboration and higher productivity (Ilozor, Love, &Treloar, 2002) as well as more positive job attitudes, motivation and increased job satisfaction (Lee, 2006; Lee & Brand, 2005).An organization’s physical environment and its design and layout can affect employee behavior in the workplace. Brill (1992) estimates that improvements in the physical design of the workplace may result in a 5-10 percent increase in employee productivity

2.6 BANK ISLAM MALAYSIA BERHAD
Bank Islam, established in 1983, is Malaysia’s maiden Shariah-based institution. ince its inception, it has emerged as the symbol of Islamic banking in Malaysia and its vision to be “A Global Leader in Islamic Banking” illustrates the Bank’s status as the flag bearer of the country’s financial services industry. Bank Islam has been growing from strength to strength as evidenced by its financial performance and paid-up capital, which, in turn, was instrumental in making the growth of its assets. Throughout the year, Bank Islam has been embarking on a number of expansion programme with its involvement in, among others, notable transaction in Sukuk and Corporate Mandates. Living up to its pioneering spirit, the Bank has continued to provide innovative and enhanced products and services which has resulted in a growing number of customers seeing Islamic banking as a true alternative to conventional banking. This growing list of clienteles in addition to truly groundbreaking and quality banking solutions have been recognized by the global industry which is reflected by the Bank's position as one of the top banks in the country. Through a vast expanding network of 133 branches and more than 1200 self-service terminals nationwide, Bank Islam parades a comprehensive list of more than 70 innovative and sophisticated Islamic banking products and services, comparable to those offered by its conventional counterparts.
“To be a Global Leader in Islamic Banking” is Bank Islam Vision. GlobalLeader”is defined as being the ultimate guidance and source of reference for innovative Shariah-based products and services.

2.7 Conceptual/ReserchFramework

From above arguments, following hypotheses emerge.

H1: There is a positive and significant correlation between better Employment Opportunity and employee‘s commitment.

H2: There is a positive and significant correlation between job Involvement and employee‘s commitment.

H3:There is a positive and significant correlation between working environment and employee‘s commitment.

RESEARCH METHODOLOGY
3.1 Research Design
The research will take a quantitative approach.The reason for the quantitative approach is that is less expensive and can provide a high level of measurement precision and statistical power and also ensure a high level of reliability of data, allow the researcher to specify clearly and precisely the independent and dependent variable, last but not the least, allows the researcher to arrive at a more objective conclusion by minimizing subjectivity of judgment (Bell et al, 2007). In a bid to obtain as much responses as possible a well thought out questionnaire and structured interview questionnaire will be sent out to employees of Bank Islam Malaysia Berhad Southern Region to solicit for answers to the research objective.
3.2 Sample size
About 40 questionnaire will be distributed to employees as a review tool for this study which will take the form of 5 point likert scale will be directed to 4head departments of Bank Islam Malaysia Berhad Southern Region to help the researcher to identify the perceptions of the employees.
3.3 Sampling Techniques
The random sampling technique will emphasis on all the workers of Bank Islam Malaysia Southern Region, this would give equal opportunity to all staff irrespective of gender, age, and position.

3.5 Data Collection
The application of questionnaires will be used to distribute among the employees in Bank Islam Malaysia Berhad Southern Region. The use of questionnaires as data collection method is appropriate as it cost less expensive and establishes rapport and motivate respondents. The questionnaires are printed in both Malay and English version is used as a medium of communication in the questionnaires.
3.6 Data Analysis
The study carried out uses SPSS Version 18.0 descriptive statistic which involve transformation raw data into a form that would provide information to describe a set of factor in a situation and this in done through ordering and manipulation of the raw data collected.

CHAPTER 4
FINDING AND ANALYSIS
4.0 INTRODUCTION
This chapter will analyze the finding of study on motivation factors towards employees commitment in Bank Islam Malaysia Berhad Johor Bahru Branch.
This finding are derived from all 15 set of questionair that were distribute to the respondent who were the employees of Bank Islam Malaysia Berhad Johor Bahru Branch.
This chapter will be focuses on the findings of the data that has been analyze by using Microsoft Excel. The data will be presented by using chart, graph and table.

4.1 RESULTS AND DISCUSSION OF RESEARCH FINDINGS 4.1.1 Section A : Respondent Profile
The researcher will discuss in detail the respondent profile for this study. The data are obtained from Section A of the questionnaire.
Section A include seven questionnaire of demography variables of the respondents such as age, gender, marital status, number of years worked in this organization, job status and monthly income. 4.1.1.1 Age
4.1.1.2 Gender
4.1.1.3 Marital Status
4.1.1.4 Number of years worked in this organization
4.1.1.5 Job Status
4.1.1.6 Monthly Income

4.1.2 Section B - Respondent ‘S Motivation Factor 4.1.2.1 Promotion And Career Development 4.1.2.2 Job Involvement 4.1.2.3 Working Environment QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | C1 | Strongly Disagree | 0% | 0 | | Disagree | 13% | 2 | | Neutral | 33% | 5 | | Agree | 40% | 6 | | Strongly Disagree | 13% | 2 |

As shown in the graph above, 8 respondent or 53 % agreed that they are happy in the working hours practice in Bank Islam Malaysia Berhad Johor Branch which is from 9.00 am until 6.00pm. There are about 13% respondent strongly agree that this working hour motivate them to give a commitment to the company . While 33 % is neutral and 13% or 2 respondent is disagree this working hour is the motivator factors that increase their commitment working in Bank Islam Malaysia Berhad Johor Branch. QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | C2 | Strongly Disagree | 7% | 1 | | Disagree | 13% | 2 | | Neutral | 33% | 5 | | Agree | 40% | 6 | | Strongly Disagree | 7% | 1 |

As shown in the pie chart above, Respondents gave 47% (strongly agree and agree) feel that when company provide IT equipment such as computer, printer, scanner, software and internet to them have increase their motivation and commitment to their task given. While 33% is neutral in the IT facilities and 20% or 3 respondent are disagree this IT facilities is motivated them.

QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | C3 | Strongly Disagree | 0% | 0 | | Disagree | 7% | 1 | | Neutral | 33% | 5 | | Agree | 27% | 4 | | Strongly Disagree | 33% | 5 |

As shown in the graph above, 9 respondent or 60 % agreed that they love to work in an organization that practice family working culture. There are about 33% respondent strongly agree that this the family working culture will give a motivation to give a commitment to the company . While 33 % is neutral and 7% or 1 respondent is disagree.

4.1.2.4 Incentives And Recognition QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | D1 | Strongly Disagree | 0% | 0 | | Disagree | 0% | 0 | | Neutral | 20% | 3 | | Agree | 53% | 8 | | Strongly Disagree | 27% | 4 |

QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | D2 | Strongly Disagree | 0% | 0 | | Disagree | 7% | 1 | | Neutral | 33% | 5 | | Agree | 47% | 7 | | Strongly Disagree | 13% | 2 |

QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | D3 | Strongly Disagree | 7% | 1 | | Disagree | 13% | 2 | | Neutral | 33% | 5 | | Agree | 40% | 6 | | Strongly Disagree | 7% | 1 |

QUESTION | RESPONE SCALE | PERCENTAGE (%) | FREQUENCY | D4 | Strongly Disagree | 0% | 0 | | Disagree | 0% | 0 | | Neutral | 0% | 0 | | Agree | 33% | 5 | | Strongly Disagree | 67% | 10 |

A STUDY ON MOTIVATION FACTORS TOWARDS EMPLOYEE COMMITMENT AT BANK ISLAM MALAYSIA BERHAD JOHOR BAHRU BRANCH

Dear Sir/ Madam
Please take a few moments to complete our survey. Your response will help us to conduct a study on motivation factors towards employee commitment at Bank Islam Malaysia Berhad Johor Bahru Branch.To ensure confidentiality, your answers and comments will be added to those of your fellow colleagues and analyzed as a group. Thank you very much for your time and support
SECTION A : RESPONDENT PROFILE Please √ the box representing the most appropriate responses for you in respect of the following items. | | | | | | | | 1. | Age ( Years ) | | | | | | | Under 20 | 20 - 35 | 36 - 50 | >50 | | | | | | | | | | 2. | Gender | | | | | | | Male | Female | | | | | | | | | | | | 3. | Marital status | | | | | | | Single | Married | Divorce | | | | | | | | | | | 4. | Number of years worked in this organization | |

Less than 1 1 - 2 3 – 5 over 5 | | | | | | | | 5. | Job status | |

Top management Executive Non executive | | | | | | | | 6. | Montly Income | | | | | | |

RM 1000- RM 1900 RM2000-RM2900 RM3000-RM3900 RM4000 and above |

SECTION B : RESPONDENT ‘S MOTIVATION FACTOR Strongly Disagree | Disagree | Neutral | Agree | Strongly Agree | 1 | 2 | 3 | 4 | 5 |

A) PROMOTION AND CAREER DEVELOPMENT | 1 | 2 | 3 | 4 | 5 | 1 | Having good prospect for promotion and career development is very important to me | | | | | | 2 | I think I can achieve the best in this organization. | | | | | | 3. | Career development will improve my job | | | | | | 4. | Career development is important because of the beneficial outcomes (eg promotion). | | | | | |

B) JOB INVOLVEMENT | 1 | 2 | 3 | 4 | 5 | 1 | I always get a help when I need it to do my job. | | | | | | 2 | My job is interesting and challenging. | | | | | | 3 | I like supervisor/ manager that give me the authority to participate in decision making | | | | | | 4 | I feel worth with my work. | | | | | |

C) WORKING ENVIRONMENT | 1 | 2 | 3 | 4 | 5 | 1 | I am happy with my working hours (9.00am – 6.00pm) | | | | | | 2 | My organization has the availability of IT equipment (such as computer, printer, scanner, software etc.) to complete our tasks. | | | | | | 3 | I Love to work in an organization that practice family working culture | | | | | |

D) INCENTIVES AND RECOGNITION | 1 | 2 | 3 | 4 | 5 | 1. | My organization provide a better medical and health coverage | | | | | | 2. | The housing loan provided by my organization are much helpful for me to buy a house. | | | | | | 3. | The organizations often organizes social interaction events to build a close report with its employees such as family day, sports and recreational activities, annual dinner, etc | | | | | | 4. | Money would be the best incentive for me | | | | | |

E) THE MOST MOTIVATION FACTORS INFLUENCE TO EMPLOYEE COMMITMENT | RANKING | 1 | Promotion And Career Development | | 2 | Job Involvement | | 3 | Working Environment | | 4 | Incentives And Recognition | |

Prepared By :-
Mohd Halim Ridhauddin Bin Abd Manap Abd Razak Bin Awab Noor Idayu Binti Othman
Hafizah Binti Abd Wahab