Employee Motivation and Engagement as a Business Strategy

Organizational behavior has been systematically studied since the Industrial Revolution in an effort to create normative theories about human behavior. As demands and expectations of employees and companies have changed over time, so has the popularity of various theories over others. Still, many of the demands of today’s workplaces are the same as they have always been, namely reducing employee turnover rates to save costs, attracting and retaining talented employees, and increasing employee productivity, motivation, and engagement levels. This Bachelor’s thesis explores how theories of motivation have influenced and continue to influence HRM practices and processes designed to motivate and engage employees. Based on results from both secondary and primary research, the author will propose a new model of employee motivation and engagement that is designed to be universally applicable. A qualitative research approach was selected for this thesis, as it best supported the thesis objective. Data was collected from a combination of relevant secondary sources, such as content and process based theories and models of employee motivation, and primary research, after which the findings of the data were interpreted and analyzed. An extensive employee survey was conducted at Majoituspalvelu Forenom Oy to measure the current levels of motivation among employees, and to ascertain the factors of employee motivation and engagement. The findings of this qualitative research-oriented thesis suggest that even though there is no single model that best suits the demands of today’s workplaces, an integrated model combining both content and process based theories of motivation is likely to yield best results. A model for this, entitled Simple Divergent Model of Employee Motivation, is proposed in the thesis. Recommendations for further study and a reflection of the author’s personal learning concludes the thesis