The Correlation Between Motivation and Employee Satisfaction in the Service Industry

This paper aims to analyse the correlation between the two dimensions of motivation (intrinsic and extrinsic), rewards and recognition, and employee performance, being one of the first studies to tackle this problem in the context of the service industry of Southern Romania. The data was colle...

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Main Authors: Laurențiu Stelian Mihai, Florin-Aurelian Birchi
Format: Article
Language:English
Published: Editura ASE 2023-06-01
Series:Proceeding Papers (BASIQ International Conference)
Online Access:https://conference.ase.ro/papers/2023/23012.pdf
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author Laurențiu Stelian Mihai
Florin-Aurelian Birchi
author_facet Laurențiu Stelian Mihai
Florin-Aurelian Birchi
author_sort Laurențiu Stelian Mihai
collection DOAJ
description This paper aims to analyse the correlation between the two dimensions of motivation (intrinsic and extrinsic), rewards and recognition, and employee performance, being one of the first studies to tackle this problem in the context of the service industry of Southern Romania. The data was collected using a quantitative survey of 161 employees from various service industries, such as retail, hospitality, healthcare, and professional services. The results were analysed using partial least square structural equation modelling (PLS-SEM) using SmartPLS4.10 software. Our findings have shown that there is a strong, positive relationship between intrinsic motivation, on the one hand, and extrinsic motivation, on the other hand, and employee satisfaction, as well as between rewards and recognition and extrinsic motivation. Moreover, our research did not find a significant correlation between rewards and recognition and intrinsic motivation, maybe due to the way reward and recognition (RR) was constructed, most items being related to financial, tangible rewards, which tend to have a more significant influence on extrinsic motivation (EM) rather than intrinsic motivation (IM). Our findings might be of use for service managers to better understand how to motivate their employees in order to ensure their maximum performance.
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spelling doaj.art-ae48f5bb3580422a90c2fde115ce1d5d2023-12-30T19:28:55ZengEditura ASEProceeding Papers (BASIQ International Conference)2457-483X2023-06-0131932610.24818/BASIQ/2023/09/012The Correlation Between Motivation and Employee Satisfaction in the Service IndustryLaurențiu Stelian MihaiFlorin-Aurelian Birchi This paper aims to analyse the correlation between the two dimensions of motivation (intrinsic and extrinsic), rewards and recognition, and employee performance, being one of the first studies to tackle this problem in the context of the service industry of Southern Romania. The data was collected using a quantitative survey of 161 employees from various service industries, such as retail, hospitality, healthcare, and professional services. The results were analysed using partial least square structural equation modelling (PLS-SEM) using SmartPLS4.10 software. Our findings have shown that there is a strong, positive relationship between intrinsic motivation, on the one hand, and extrinsic motivation, on the other hand, and employee satisfaction, as well as between rewards and recognition and extrinsic motivation. Moreover, our research did not find a significant correlation between rewards and recognition and intrinsic motivation, maybe due to the way reward and recognition (RR) was constructed, most items being related to financial, tangible rewards, which tend to have a more significant influence on extrinsic motivation (EM) rather than intrinsic motivation (IM). Our findings might be of use for service managers to better understand how to motivate their employees in order to ensure their maximum performance.https://conference.ase.ro/papers/2023/23012.pdf
spellingShingle Laurențiu Stelian Mihai
Florin-Aurelian Birchi
The Correlation Between Motivation and Employee Satisfaction in the Service Industry
Proceeding Papers (BASIQ International Conference)
title The Correlation Between Motivation and Employee Satisfaction in the Service Industry
title_full The Correlation Between Motivation and Employee Satisfaction in the Service Industry
title_fullStr The Correlation Between Motivation and Employee Satisfaction in the Service Industry
title_full_unstemmed The Correlation Between Motivation and Employee Satisfaction in the Service Industry
title_short The Correlation Between Motivation and Employee Satisfaction in the Service Industry
title_sort correlation between motivation and employee satisfaction in the service industry
url https://conference.ase.ro/papers/2023/23012.pdf
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