Significance of Motivation on Employee Optimal Performance: A Study of Amendu Manufacturing Industry in Mthatha, Eastern Cape, South Africa

Abstract

The objective of this study was to investigate the significance of motivation on employee optimal performance in Amendu manufacturing industry in Eastern Cape, South Africa. To achieve this objective, quantitative research method was employed to test the hypothesized model formulated in the study. Inferential analysis was conducted using SmartPLS, while structural equation modeling was used to test and evaluate multivariate causal relationships among the variables. The empirical findings revealed that after testing the formulated model, it was ascertained that there is a significant positive impact of financial motivation, which include salary increase, cash allowance, bonus, retirement benefit on employee’s optimal performance. Similarly, non-financial motivations such as position promotion, award for recognition, training and development, involvement in decision making, were also ascertained to have significant positive impact on employee’s optimal performance in Amendu manufacturing industry. Previous literature was also found to have an agreement that many employees agreed award of recognition can stimulates employees to perform optimally in their job deliverables. It was recommended that organisations such as Amendu manufacturing industry should employ both financial and non- financial motivations to enhance employee optimal performance.  

Received: 10 April 2023 / Accepted: 13 July 2023 / Published: 5 September 2023