EMPLOYEE MOTIVATION AND PERFORMANCE OF MANUFACTURING FIRMS IN MALAYSIA
Purpose of the study: The purpose of the study was to examine the impact of employee motivation on performance of manufacturing firms in Malaysia.
Statement of the problem: The performance of some of the manufacturing firms in Malaysia has been reporting losses. In 2018, the overall performance of the manufacturing firms declined by 10% and in 2019, it further declined by 11.7% and 14.1% in 2020. The persistent decrease in performance is a concern that needs to be addressed, given that the country's manufacturing sector contributes to around 19.7% of the GDP annually.
Findings: Motivation plays a vital role in improving staff's efficiency and effectiveness. There are two types of motivation extrinsic and intrinsic. Extrinsic or external motivational can include income, bonus offer, reward, good working environment while intrinsic or internal motivation is the act of doing something without anticipating anything in return. The motivation of the employees can increase their commitment and feel to be part and parcel of the organization.
Conclusion: The motivated workers have a positive effect on organizational performance. Recognizing what motivates workers in a particular firm is essential because it aids in decision-making. It becomes imperative for the organization to keep the employees motivated if they want to achieve tremendous success and be competitive. The organization cannot meet its objectives and goals if the organization's employees feel not to be motivated.
Recommendations: The management should better recognize and concentrate on their workers' motivation factors to increase productivity. Managers of the manufacturing firms should determine the proper motivation strategy for their firm before proceeding with the motivation approaches. Policies and methods that positively promote worker motivation need to be considered by the firms. Firms are expected to develop a safe and cooperative environment for workers.
Keywords: Employee motivation, performance, manufacturing firms, Malaysia
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