The Relationship between Employee Motivation and Organizational Productivity with Cost Cutting as a Moderating Variables

Abstract

This descriptive survey study primarily aims to determine the moderating influence of cost cutting in the relationship between employee motivation and organizational productivity among the employees of the CAMANABA-Manila Area of Security Bank Corporation (SBC). This research also aims to discover the dominant age, sex, and length of employment of the respondents. The study tries to know the level of cost cutting the employees have experienced, and the organization’s level of productivity. It also aims to identify the relationships between employee intrinsic motivation and organizational productivity, cost cutting and organizational productivity towards employee intrinsic motivation, employee intrinsic motivation and organizational productivity, and cost cutting and intrinsic motivation towards organizational productivity. The researcher conceptualized an appropriate framework from for this study by integrating three concepts - Herzeberg’s Hygiene Motivation Theory, and the General Systems theory. The study makes use of the descriptive study design based on a survey of respondents. It is also based on the purposive census of the employees of the CAMANABA-Manila Area of SBC. Since a survey questionnaire was utilized as the instrument, this study uses the quantitative approach. Frequency analysis and mean difference was used to measure ihc demographic factors of the study, while Spearman’s Rank Correlation Coefficient R was used to determine the relationships between the variables. The Wilcoxon Whitney Mann test was also used to compare the variables. The study discovered that the employees of the organization have experienced a moderately high amount of cost cutting and that the same employees perceived a high level of organizational productivity. The study also found a weak positive correlation between cost cutting and organizational productivity, a weak negative correlation between cost cutting and employee intrinsic motivation, and a weak positive correlation between employee intrinsic motivation and organizational productivity. It was also found that there is a significant difference in the answers of the employees affected by cost cutting and those who were not in organizational productivity, while there was no significant difference between the two groups in motivation. Finally, it was found that whether there is a moderating influence or not, employee motivation and organizational productivity have no significant relationship. It is recommended that future research include the extrinsic motivation of the employees as another variable to look at, and to look at alternative variables that might have a moderating influence on the relationship between employee motivation and organizational productivity. It is also recommended that an organization that has undergone cost cutting at a more extreme degree be observed as to gain more pronounced results. Finally, a qualitative approach should be instigated to broaden the scope of the study.