Impact of Motivation on Employees Performance in Pakistan

This paper aims to study the effects of intrinsic and extrinsic motivation on employee’s performance. Employees obviously work for the organization for monetary benefits but these monetary compensations and rewards are not the sole requirement of all employees. Some of them need salary increment and bonuses to get themselves motivated while others need recognition and non-monetary benefits. The study was aimed to discuss how the extrinsic and intrinsic motivation can hinder or increase the motivation level of employees. Several motivational theories have also been discussed in this paper that helps in better understanding of why and how employees are motivated. Intrinsic and extrinsic motivation is said to have significant impact on employee’s performance. Our study examined 60 female and 143 male respondents (n=203) of banking sector to study the effects of intrinsic and extrinsic motivation on employee’s performance. There was a positive relationship of intrinsic and extrinsic motivation of employees with their performance. With the increase in intrinsic and extrinsic motivation, employee’s performance tends to increase as well. We also have discussed some of the future directions and recommendations so that it can help future researchers to study the other constructs that can affect employee’s performance.