Impact of Employee Motivation on Organizational Performance (Empirical Study of Executive Employees in General Insurance Sector of Sri Lanka)

Abstract

Employee motivation is a critical factor in determining the overall performance of an organization. This study provides an overview of the relationship between employee motivation and organizational performance, highlighting key concepts and implications. Motivation and organizational performance are essential tools for the success of any organization in the long run. On the other hand, there is a positive relationship between employee motivation and organizational performance reflected in numerous studies. Identifying research gaps between employee motivation and organizational performance in a specific context like Sri Lanka requires a thorough review of existing literature and an understanding of the country's unique socioeconomic and cultural factors. This research aims to analyze the executive employees' motivations related to the general insurance industry. The study was based on the following three objectives; to determine the factors that increase the motivation of employees; to examine the requirements of a good motivational system and to examine the relationship between employee motivation and organizational performance. This study sought to find the impact between the independent variables (Financial benefits, non-financial benefits, Management and Leadership factors, and Organizational factors), mediation variables, and dependent variable (Organizational Performance) through thirteen different hypotheses. This Primary data was collected from 369 executive employees of eight leading general insurance companies. Data were collected with a structured questionnaire and SPSS software was selected as key software for data analysis. According to the research results Organizational factors and financial factors are statistically positive on Employee Motivation and Organizational Performance. Subsequently, the study highlights the relationship between the mediating variable and each independent variable. In conclusion, employee motivation is highly responsible for overall performance, and organizations that prioritize and nurture employee motivation are more likely to experience sustained success and financial growth.