Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 3

Strategic Analysis of the Motivation on Employees Productivity: A Compensation Benefits, Training and Development Perspective

Irina S. Leonova, University of Granada

Elena V. Pesennikova-Sechenov, Moscow State Medical University

Nikolay M. Legky, MIREA - Russian Technological University

Valeriy I. Prasolov, Federal State Educational Budgetary Institution of Higher Education “Financial University under the Government of the Russian Federation”

Irina A. Krutskikh, Lomonosov Moscow State University

Nurul Mohammad Zayed, Daffodil International University


Employees prefer to work in the workforce to achieve the organization's priorities and expectations. However, the manager's job comprises of several aspects, including teamwork, collaboration, decision-making, communication and organizational inspiration. The biggest obstacle that is being addressed by management is the reinvention of management owing to the demanding job climate and professional capabilities of the supervisors, which have been deemed inadequate to inspire workers in the workforce. Managers also ought to maintain a positive interaction with their workers at work, and that will be achieved by offering assistance and encouragement to improve employee morale at work and increase their efficiency. However, inspiration and dedication are the core human resource in the Company as they will boost the workplace's efficiency and increase worker satisfaction. The research implemented the quantitative and qualitative approach throughout addressing Different retail companies. The sample addressed includes 370 employees. The results were analyzed using the SPSS statistical tool for hypotheses validation. The results proved a direct relationship between compensation benefits, training and development, motivation and empowerment.


Empowerment, Compensation, Motivation, Human Resource, Training and Development.


Employees prefer to work in the workforce to achieve the organization's priorities and expectations. However, the manager's job comprises of several aspects, including teamwork, collaboration, decision-making, communication and organizational inspiration. The biggest obstacle that is being addressed by management is the reinvention of management owing to the demanding job climate and professional capabilities of the supervisors, which have been deemed inadequate to inspire workers in the workforce. Managers also ought to maintain a positive interaction with their workers at work, and that will be achieved by offering assistance and encouragement to improve employee morale at work and increase their efficiency. However, inspiration and dedication are the core human resource in the Company as they will boost the workplace's efficiency and increase worker satisfaction. Today, workplace interactions have been more open and less bureaucratic. Unlike in the past, the individual insists on short-term compensation and not on long-term benefits. There is diversity in the workforce that requires a range of workers from different ages, genders, people's colours and medically disabled individuals (Shatila & Alozian, 2019).

Managers will ensure that workers carry their beliefs, attitudes and variations from the society with which they come to work with them. There are obstacles and problems to recognize the current operating climate, mainly as organizations have managed to introduce and incorporate improvements. The truth is that companies do not realize what shifts have taken place in the workforce and the need to develop and empower staff to optimize efficiency. There are various inspiration and behaviours at work that are relevant to workers and represent job efficiency. Managers should build an atmosphere for workers to feel inspired appropriately. The management must inspire the staff, making them realize they operate for the executive officer rather than with the executive officer. The Retail Sector recently witnessed a significant fluctuation in job efficiency for a variety of factors. Lack of inspiration is one of the critical factors why future workers leave from the Company in pursuit of a better chance. The following inquiries would deal with the effect of encouragement on the success of employees in Company X and particularly in the Customer Care Dept. Ok, how will encouragement impact workplace efficiency in Company X? There are also other approaches that the human resources team wants to incorporate in Companies to improve employee efficiency. Provides performance assessments, financial and non-financial incentives focused on workers ' interests, which include staff in decision-making, promotion and mobilization. Which sort of motivational techniques are the most inspiring workers on the job? (Hunter, 1986).

Inspiration in two types is internal and secondary. The inward incentive of the employee becomes the inspiration because he becomes personally committed to the Company in which he serves. External motivators are motivators that assist workers with the ability and expertise to apply about a position that fits their technical abilities. By comparison, secondary motivators are motivators, such as the senior executives, originating from other sources. This typically takes the shape of benefits, promotions, pay-raises and honours depending on the workforce's accomplishments. So, how many kinds of inspiration occur and what effect do they have on workplace performance? The scope of the study will be on the effect of encouragement and its influence on employee morale and therefore on the outputs of the business In order to improve the effectiveness of employees, and in specific, employees with direct connections to customers, such as sales, customer support, PBRs and team lea, should be introduced in Business X. Motivation is known as a critical activity in the world of human resources to improve workers ' efficiency at work. There are various approaches to improve Company incentive, such as bonus schemes, training and growth, financial incentives, non-financial benefits, appreciation, promotion, etc. HRs will take into consideration that "What inspires Person X, does not inspire Person Y," implying that individual workers require financial incentives such as compensation to be encouraged. In contrast, some workers need an opportunity to carry on more roles in their jobs, based on the need of their employees. Nonetheless, regular preparation and evaluations are essential for the performance and the better utilization of future employees (Higgins, 1994).

Literature Review

Internal and External Motivation

The workforce contains two forms of incentive, and it is personal encouragement and external incentive, often called driving or pulling forces. Inherent motivation is the principal driver to inspire and improve workers on the workforce and therefore, that any driven and professional employee's primary goal is to accomplish productive work. However, internal motivators are motivators, assisting employees with abilities and expertise and calling for a position appropriate for their occupational credentials. Therefore, the absenteeism rate should decline in the workforce and improve efficiency while intrinsic incentive occurs. This improves the team spirit on the job and the productivity of the employees (Pulakos, 2009).

Compensation and Motivation

A variety of research in companies has been carried out in order to develop the connection between pay rewards and employee satisfaction. Research has shown the enthusiasm of the employees and the enhancement of their efficiency on the job for reasons such as salary, advancement, work hours and career growth, thus allowing more attempts throughout the enterprise to accomplish its aims and goals (Stone & Phillips, 2001).

Relationship between Job Satisfaction and Career Development

The efficiency of the workers and corporate output often play a significant role in work satisfaction. Although workers are strongly driven to increase their efficiency at work, their goals and priorities can be met adequately. In order to achieve employee satisfaction at work, there are also different processes to be implemented in the business and communities. The most critical resources to be used in order to maximize employee satisfaction are included when implementing performance evaluations. Performance reviews may be defined as a method to look at the employees ' successes and compensate them with money or non-monetary incentives, while also inspiring them and improve their job efficiency (Pfister, 2009).

Relationship between Motivation and Performance

Motivation must be recognized and correlated with success and rewards by managers. Assuming that incentive requires more than a paycheck, specific action must be taken to empower workers quickly and effectively. Communications is known to be one of the most critical methods for empowering workers at work, and this can be accomplished by performing performance evaluations that can reward and inspire them to successfully and efficiently accomplish the priorities and objectives of the Company. The workers should feel essential to the Company in which they work by adopting this approach. Coaching is another technique to be applied at work. It should increase the emotional standard of workers on the job, applied efficiently and successfully. The primary goal of coaching is to identify the skills of employees and to work to improve their performance. In summarize, coaching is regarded as exceptional because the trained person is highly motivated and strives towards the organization's objectives. Another strategy that can be implemented at work involves staff in the decision-making of the Company. In making decisions, workers should be used as a type of indirect contact between management and workers in the workforce that motivates them. The workers also feel as if they are assets for the business in which they operate (Parker, 2003).

Relationship between Empowerment and Employee Motivation

Employee satisfaction and workforce engagement are closely linked to the productivity of workers. This seeks to participate and engage workers in the decision-making phase to accomplish the organization's objectives. The mobilization of workers at work improves workplace commitment to their organization management, thereby increasing the productivity and development of a business. Empowering workers thus can contribute to higher workplace loyalty, engagement and productivity with the Company in which they operate. Empowering big workers with accountability and authority to monitor other workers and taking corrective measures that improve the organization's efficiency in a meaningful way (Daft et al., 2010).


Each segment contains the sample size, sampling frame, target population, sampling methods, a form of data or process of processing or source of data to be used in the study.

Target Population

The Retail Sector comprises of the target demographic, both workers and executives, and the essential purpose of the study was to investigate the impact on employee success and motivation of human resource growth.

Sampling Technique

The researchers have used the deliberate sampling method with the defined sample structure. Purposeful selection referred to as a selective and biased illustration is a strategy of non-possible sampling that is characterized by a concerted effort by raising the sum by delegate samples by gathering collections and the typical regions of a selection.

Sampling Frame

The top ten retail companies will research the effect on workplace success of human resource activities. The researcher was able to find 370 answers of which the study review was a successful illustration (Shatila & Alozian, 2019).

Sample Size

The sample size of 370 Company employees or managers of the top ten retail companies is calculated by the survey structure. Data were obtained from the HR Department for Human Resources Growth, with eight managers questioned. To order to research the effect of Human Resources Management on employee efficiency, the compilation of sufficient data for analysis of the influence of human capital on employees ' accomplishment or encouragement of 24 questionnaires, taking into account workers endurance, capacity and mimetic isomorphism, has been confidential.

Sources of Data

The researchers use the primary source of consolidated results. The necessary details are comprised of the junior experts, senior experts and executives of the headquarters of Alpha Company.

Data Type and Data Collection

The primary details are collected during the processing of details. The primary source of data from the prepared questionnaire or the scheduled interview was this study. A proposed questionnaire, containing 24 queries, was analyzed or handled with a 5-point Likert answer stage, which involves (a) Strongly Disagree, (b) Disagree, (c)Neutral (d) Agree (e) Strongly Agree. The investigator deals with the Alpha Companys in order to select young consultants, senior professionals or executives indiscriminately. The main reason for the questionnaire was the impact on the achievement and motivation of employees of the climate for human resource development. The semi-structured interview or in the respective departments, the human resources leadership team manager in the HR group, has been performed by departmental management (Shatila &Alozian, 2019).

Data Processing

In order to detect inconsistencies and assumptions or overrides or to check that accurately or reliably answers questions are addressed, or digital communication was conducted by the investigator. Data cleaning is performed by the investigator. By the researcher, Data editing or coding was performed utilizing the mathematical SPSS software to ensure the logical completeness or reliability of responses.

Data Analysis

The researchers have written the data, designed or arranged the specific data based on the sources of knowledge. Information is evaluated qualitatively as well as quantitatively. The comprehensive data analysis was performed through SPSS. Quantitative data analysis was conducted through interactive activities or relationship proportions, which used to decide the number of respondents that choose different responses or to evaluate the connection between the production of human capital or their success or inspiration. Of all the things related to the research question or purposes, this was complete. Evoking mathematical figures in tables or maps is sufficiently convenient to ensure that the case was viewed clearly.

Reliability Test

In a research sample, the constancy and precision of a psychometric test score were usually seen as a criterion. Proportional Cronbach alpha coefficient of durability. Consequently, 0.90 or higher coefficients are almost indefinitely suitable, 0.80 or higher in some instances, or.70 in a few research tests with some Lombard indices.

Research Model

The hypotheses will be constructed based on the above research model (Figure 1).

Figure 1 Performance Model

H10 There is an insignificant relationship between empowerment and performance

H11 There is a significant relationship between empowerment and performance

H20 There is an insignificant relationship between compensation and performance

H21 There is a significant relationship between compensation and performance

H30 There is an insignificant relationship between job satisfaction and performance

H31 There is a significant relationship between job satisfaction and performance

H40 There is an insignificant relationship between motivation and performance

H41 There is a significant relationship between motivation and performance

Results and Discussion


The below regression analysis had been implemented to test the relationship between the research variables based on a standard error of 5%. The regression analysis showed the following results (Table 1):

Table 1 Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.598a 0.358 0.351 0.671

The above regression analysis had been implemented to test the relationship between the research variables based on a standard error of 5%. The regression analysis showed the following results (Table 2):

Table 2 Coefficients
Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
  (Constant) 0.429 0.124   3.462 0.001
  Motivation 0.228 0.064 0.182 3.567 0.008
1 Empowerment 0.158 0.073 0.099 2.151 0.032
  Job Satisfaction 0.337 0.071 0.243 4.741 0.005
  Compensation 0.337 0.063 0.265 5.362 0.007

• There is a direct relationship between motivation and performance (0.008)

• There is a direct relationship between empowerment and performance (0.032)

• There is a direct relationship between job satisfaction and performance (0.005)

• There is a direct relationship between compensation and performance (0.007)

The following regression formula can be validated as follows:

Y = A + BX1 + BX2 + BX3 + BX4

Where, Y = dependent variable, A = constant, B= Coefficient, X= Independent variables
Performance = 0.001 + 0.008 motivation + 0.032 empowerment + 0.005 job satisfaction + 0.007 compensation

This means that:

• For every one unit increase in motivation, performance is affected by 0.008

• For every one unit increase in empowerment, performance is affected by 0.032

• For every one unit increase in job satisfaction, performance is affected by 0.005

• For every one unit increase in compensation, performance is affected by 0.007


Pearson correlations test is a test which aims to study whether the relationship between variables is positive or negative based on an indicator called the Pearson Coefficient. By that, the results will be validated as follows (Table 3):

Table 3 Pearson Correlations
Compensation Pearson Correlation 0.449**
Sig. (2-tailed) 0.000
N 370
Job Satisfaction Pearson Correlation 0.323**
Sig. (2-tailed) 0.000
N 370
Motivation Pearson Correlation 0.482**
Sig. (2-tailed) 0.000
N 370
Empowerment Pearson Correlation 0.480**
Sig. (2-tailed) 0.000
N 370

The statistical results showed a positive relationship between compensation and performance (0.449) in which the higher the compensation is, the higher the employees' performance will be and by that reflecting higher productivity. Furthermore, positive relationship between job satisfaction and performance (0.323) tend to take place between the mentioned two variables, the higher the job satisfaction is in the workplace, the higher the employees' performance will be. This is based on the fact that employees feel more responsible for the tasks that they are dealing with and by that they are willing to exert extra effort to enhance productivity. Furthermore, the research findings showed a positive relationship between motivation and performance (0.482), in which this relationship is known as a proportional relationship, the higher the motivation is, the higher the employees' performance will be in the workplace. At last, the findings showed positive relationship empowerment and performance (0.480), the higher the empowerment rate is, the higher the employees' performance will be in the workplace (Cavale, 2006).

Factor Analysis

The factor analysis had been conducted to study whether the collected data are valid for statistical analysis or not based on an indicator called Cronbach Alpha (Table 4). If this indicator showed a sign above 0.7, this means that the data are valid and ready for statistical analysis. If the indicator was between 0.5 and 0.7, this means that the data can be analyzed, but bias is probable. At last, if the indicator showed a coefficient below than 0.5, this means that the data are not valid and not ready for statistical analysis. Thus, and based on the above results, the findings can be concluded as follows:

Table 4 Component Matrixa
  Cronbach Alpha
Compensation 0.895
Job Satisfaction 0.869
Motivation 0.854
Empowerment 0.883

• The compensation variable showed a valid relation 0.895

• The job satisfaction variable showed a valid relation 0.869

• The motivation variable showed a valid relation 0.854

• The empowerment variable showed a valid relation 0.883

The findings also showed a favorable interaction between morale and efficiency of Company X staff after delivery to Company X managers and employees to gather and interpret data by the usage of an SPSS statistical method. The results have revealed that encouragement has a beneficial impact on Company X's efficiency, which would improve employee output at the workplace by introducing motivating techniques at Company X and thereby enhance their effectiveness and maintain them. Motivated employees are also dedicated and faithful to the Company at which they operate. Other approaches can be introduced in the workforce to empower workers such as rewards, performance reviews, organizational capabilities and much more to have a positive effect on the efficiency of workers in Companying X. At the other side, the results also suggest that employee morale at the Retail Companies has a significant effect on work satisfaction. Satisfied workers continue to be motivated and are willing to do better to improve efficiency in the workforce and to accomplish targets and priorities quickly and effectively. The performance reviews of the business are also of considerable significance to measure employee efficiency and account for their success. This is to add, work satisfaction impacts the efficiency of the Company's workers directly. Performance evaluation is the approach used for evaluating and compensating the success of staff in the workplace. This is an easy way to improve employee efficiency and to inspire them in the workplace. Study results have shown that the introduction of incentive policies in Company X helps to slash employee revenue in the workforce, thus raising payroll and labor expenses borne by the firm. Under other terms, the better the motivating and incentive approaches, the higher the satisfaction rate of workers at work, and therefore the morale and dedication of the companies. Compensation advantages are the financial and non-financial incentives of two forms. In order to evaluate the efficiency, salary incentives will be understood based on the evaluations carried out at the Company, in order to attract workers. Because employees ' needs vary on the job site, it is also the responsibility of the human resources to research employees ' needs and to try to fulfil them. It would inspire workers at work and thereby increasing their efficiency (Hatry, 2006).

Conclusion and Recommendations

The thesis investigated and discussed at length the theory of encouragement and its impact on the efficiency of Company X's employees. In order to validate and affirm the findings of this analysis, the same work will be carried out in a broader sense. Because the study is based on the relationship between reward variables and Company efficiency, the next logical move is to examine the effect on decision-making processes of Company X encouragement and work satisfaction. It is therefore proposed that the human resources team of the Company research carefully the concerns of workers so as to try to meet them quickly and effectively. That can be achieved by the application of positive approaches to address the demands of Maslow's demands principal workers to improve Company workers ' efficiency. Any of the approaches suggested involve periodic performance reviews and employee benefits based on their results. This can inspire workers in the workplace. At the other side, the study results found other variables influencing the efficiency of workers in Company X, such as wage equality, reduced wages, lack of appreciation at work, success assessment and conflicts between employees and their bosses. Such causes often influence pay equity. For this cause, it is advised to inspire and boost employees ' efficiency in the Company to resolve the problems listed above (Geert, 2001).

Future Research Directions

Implementing pay equity strategies in the workplace

Pay equity is characterized as equal compensation of wages based on experience, experience and efficiency for workers at their workplace. Within Company X, pay equity approaches are widely advocated within order to promote and improve business profitability and empower workers in the labor force. It may be done regularly by assessing the efficiency of workers and balancing their abilities with the definition of their job and by rewarding them. In the absence of this policy, workers would become demotivated and try better employment to raise incomes. This plan takes six months in the Company X to enforce both role requirements, efficiency reviews and compensation in the workforce and workers will be reasonably compensated depending on this appraisal (Grin & Griffin, 2006).

Lack of recognition

Recognition is known to be one of the most effective motivating tools to boost job efficiency at work. Unfortunately, Company X does not have that approach, with the executives not assessing their workers ' demands correctly and efficiently. Recognition is deemed a non-financial incentive for enhancing workers ' jobs, such as advancement at work. It takes at least four months in order to incorporate such a plan in Company X to assess workers ' desires, to analyze their success and to use the output to enhance talented and skilled staff to enable them to function more efficiently in the workforce and to improve the overall efficiency of Company X (Gey, 2007).

Problems between employees and their superiors

One of the most significant issues of Company X is that there are conflicts in the workforce between workers and their supervisors as the external intermediaries interact with the workforce. The top management in Company X therefore highly advises tackling this topic by listening to the employees ' concerns and working equally to overcome these issues, to inspire workers and maintain organization's engagement and loyalty in the workplace (Forde & Ferrari, 1998).

Team spirit

The propagation of team spirit on the workforce is known to be one of the key reasons to inspire and improve the efficiency of workers. Team spirit will reduce negative attitudes at work and improve the confidence and openness partnership between workers and their superiors. There is a little competitive spirit in Company X, so the introduction of this approach is highly advised to enable workers to enhance their job efficiency. Nonetheless, it will be focused on the friendship, loyalty and openness between the team member and workers at the workplace to build a thriving team spirit (Forgas et al., 2005).


In order to sustain high morale on the job, inspiring workers are needed at work. Other aspects though, like compensation, job prospects and functional interactions with workers, affect inspiring employees at the workplace. However, managers must understand the importance of communications at work and its influence on the motivation of employees, which are mainly due to the absence of communication. Therefore, good contact in Company X is strongly encouraged in order to improve employee productivity and efficiency (Deci, 1972).


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