Analysis of Intrinsic and Extrinsic Motivation of Central Government Employees in Kerala

1. An analysis of the relationship between intrinsic and extrinsic motivational states of employees of Central Government organisations in Kerala Manoj. M., Research Scholar, Institute of Management in Kerala University of Kerala Supervised by Dr.K.V.Krishnankutty, Professor (Rtd.), College of Engg., Trivandrum.

2. Introduction • Central government organisations in India have contributed immensely to the socio-economic development of India. • The performance of Public Sector Enterprises (PSEs) has been criticised by many on account of lack of professionalism, low efficiency, and accumulation of wealth . • With a view to increase performance levels of public sector in India, a new Industrial policy was introduced in 1991. • PSEs posted a net profit of Rs.1,03,003 Cr. for 2014-15 despite many inherent issues prevailing in PSEs. • CPSEs employ 12.91 lakh people (excluding contractual workers) in 2014-15.

3. Performance of Central PSEs

4. Performance Management

5. Statement of the problem • Any reform process can be facilitated by placing the HR function at centre stage (Khandelwal , 2014). • There is scarcity of literature on analysing different dimensions of employee motivation in Indian public sector. • Traditionally, in Indian public sector, managers believe that employees are extrinsically motivated (Sangvan,2005; Loganathan,2006; Khan&Mufti,2012; Ramprasad,2013; Singh,2013). • Performance Related Pay (PRP) on early stages of implementation. • There are conflicting views on the relationship between extrinsic and intrinsic motivation. • A thorough study on employee motivation in public sector with special focus on intrinsic and extrinsic motivations and their relationship is beneficial.

6. Traditional Motivation strategy in Public sector Extrinsic Motivation Work Motivation Intrinsic Motivation Work Motivation

7. Motivation- a holistic approach Extrinsic Motivation Work Motivation Intrinsic Motivation

8. Constructs included • Intrinsic Motivation (IM) • Extrinsic motivation (EM) • Aggregate Work Motivation (AWM) Motivation types • Public Service Motivation (PSM) • Autonomous Extrinsic Motivation (AEM) • Demotivation (DM) • Leadership behaviour (LEAD) - Cultural dimension • Bureaucratic characteristics (BCY) – Cultural dimension • Personality – Cultural dimension • Job characteristics

9. Motivation • As a hypothetical construct, motivation usually stands for that which energizes, directs, and sustains behaviour (Perry & Porter, 1982). • Motivation leads to action • Content theories and process theories

10. Intrinsic and Extrinsic motivation • Intrinsic refers to engaging in an activity for itself for the pleasure and satisfaction derived from participation (Vallerand,2004). • When extrinsically motivated , the individual engages in an activity as a means to an end not for the activity’s own sake. (Vallerand,2004).

11. Public Service Motivation (PSM) • An individual's predisposition to respond to motives grounded primarily or uniquely in public institutions and organizations (Perry and Wise,1990) . • Individuals are oriented to act in the public domain for the purpose of doing good for others and society.

12. Demotivation • Demotivation as a condition of damaged or destroyed motivation (Grubišić& Goić ,2003). • Demotivation syndrome includes reduction of effort, conviction, common values importance, expectation of a better future and so on.

13. Autonomous Extrinsic Motivation (AEM) • Self-Determination theory (Ryan and Deci ,2000) • Extrinsic motivation with internalisation of self-determination at the highest level is called integrated external regulation or Autonomous Extrinsic Motivation (AEM).

14. Leadership behaviour(LEAD) • Leadership involves setting direction, aligning people to achieve organisational goals and motivating them (Kotter,2011). • Gives a sense of ‘‘direction and vision, an alignment with the environment, a healthy mechanism for innovation and creativity, and a resource for invigorating the organisational culture’’ (Van Wart, 2003).

15. Bureaucratic characteristics(BCY) • A bureaucratic organisation is characterized by a great hierarchy of superior subordinate relationships in which the person at the top gives the general order that initiates all activity (Thompson,1965). • A well defined hierarchy of authority, a system of rules covering the rights and duties of employees and systematic procedures of dealing with work situation are some of the dimensions of bureaucratic organisations.

16. Personality • Personality refers to cognitive and behavioural patterns that show stability over time and across situations (Bozionelos,2003). • Big five personality model (John, Donahue & Kentle,1991). • Extraversion(EXTV) • Agreeableness(AGREE) • Conscientiousness(CONC) • Neuroticism(NURO) • Openness(OPEN)

17. Job characteristics • Job characteristics are those attributes of the job, which when properly designed, enhance work motivation and job performance (Hackman &Lawler, 1971; Hackman & Oldham, 1975;Oldham, Hackman & Pearce, 1976). • Skill variety(SKILL) • Task identity(TASKID) • Task significance(TASKSG) • Autonomy(AUTO) • Feedback(FEED)

18. Aggregate Work Motivation (AWM)

19. Objectives of the study • To derive the relationship between the intrinsic and extrinsic motivation in Central public sector organisations. • To find out the effect of intrinsic and extrinsic motivations on overall work motivation in Central public sector organisations. • To find out the impact of Public Service Motivation on overall work motivation of employees. • To understand the effect of Demotivation on overall employee motivation. • To develop a comprehensive model for work motivation in organisation settings and empirically testing it.

20. Objectives of the study contd… • To identify the factors which influence the intrinsic motivation and extrinsic motivation states of employees in Central public sector organisations. • To analyse the effect of individual characteristics and organisational characteristics on overall work motivation. • To analyse the influence of personality on work motivation. • To analyse the relationship between job characteristics and intrinsic motivation.

21. Scope of the study • Analysis of the relationships between intrinsic and extrinsic motivations of employees in Central PSEs in Kerala • Effect of other factors such as bureaucracy, leadership, personality and job attributes on employee motivation in Central PSEs in Kerala. • Role of Public Service Motivation and Demotivation in Central public sector organisations. • A comprehensive work motivation model with the above constructs.

22. Simplified Work motivation model EM LEAD AWM IM BCY PSM

23. Hypotheses

24. Hypotheses

25. Research design • Descriptive research • Cross sectional study • Literature review and secondary data • Primary data by Survey method • Population consists of employees of 5 CPSEs in Kerala state • Pilot testing among 38 employees • Sample size is 371 (Cochran,1977) and (Hair et al., 2006) • Multistage Random sampling • Questionnaire comprises of 4 parts • Rating scale with Likert scale used for measuring constructs • A total of 122 items • Missing data substitution and Outliners • Research Ethics

26. Rationale behind Sample size • Sample size based on the finding from pilot study • Sample size estimation based on the SEM (Hair et al., 2006) • The constructs have at least 3 indicators and the values of communalities are expected to be on the higher side. • Sample size between 300 and 500 is justified.

27. Sampling procedure for organisations Ref: (Manolopoulos, 2008; Sekaran, 2006)

28. Sample distribution in five organisations

29. Measuring instruments • Scales to measure motivation constructs - Work Extrinsic and Intrinsic Motivation Scale (WEIMS) (Tremblay, Blanchard, Taylor, Pelletier, & Villeneuve, 2009). • Big Five Indicator (John, Donahue & Kentle ,1991) and (John, Naumann & Soto, ,2008) • Job characteristics scale (Hackman and Oldham, 1976) • Public Service Motivation (Perry,1996) • Leadership behaviour (Ritz, 2009) and Bureaucratic characteristics (Sherman and Smith,1984). • Scale developed for Demotivation

30. Data analyses • Reliability analysis for the constructs • Summated scales • Descriptive statistics • Correlation analysis • Confirmatory Factor Analysis (CFA) including construct validity • Structural Equation Modelling (SEM) for overall model fit

31. Reliability of constructs

32. Sample distribution based on Demographics

33. Sample distribution based on Employment

34. Sample distribution for IM and EM (%)

35. Mean values of indicators of IM and EM constructs based on summated scale

36. Mean values of constructs based on summated scale

37. Steps in Structural Equation Modelling • Specifying the measurement model (CFA) model • Confirmatory Factor Analysis(CFA) for testing model validity • Assessing the model fit • Model respecification, if any. • Specifying the structural model • Assessing Structural model validity • Analysing validity of structural relationships

38. EM-IM-AWM CFA model

39. EM-IM-AWM CFA model-Regression weights

40. EM-IM-AWM CFA model-Standardised Regression Weights

41. EM-IM-AWM CFA model-Correlations and Model Fit Summary

42. EM-IM-AWM Structural model

43. EM-IM-AWM Structural model-Standardised Regression Weights

44. EM-IM-AWM Structural model-Model fit summary

45. IM-EM-BCY-LEAD-STRUCTURAL MODEL

46. IM-EM-BCY-LEAD-STRUCTURAL MODEL-SEM estimates for model fit

47. PERSONALITY-AWM-STRUCTURAL MODEL

48. PERSONALITY-AWM-STRUCTURAL MODEL -SEM estimates for model fit

49. WORK MOTIVATION STRUCTURAL MODEL FOR PUBLIC SECTOR

50. WORK MOTIVATION STRUCTURAL MODEL FOR PUBLIC SECTOR -SEM estimates for model fit