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The main purpose of present study is to identify the impact of intrinsic motivation on employee’s performance. This is basically an empirical study and a scale was developed to find out the impact of four variables namely; job security, achievement, job responsibility and work itself (intrinsic motivation). The questionnaire was distributed among the respondents on the basis of simple random sampling. The findings of this study show a significant positive relationship among four variables and employees job satisfaction. The relationships among job security & job satisfaction, achievement & job satisfaction, job responsibility & job satisfaction and work itself and job satisfaction are significant and positive. This research study highlights the areas in which the organizational manager focuses to increase the individual and organizational performance.






Title page

Approval page




Table of content



1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study




3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation













  • Background of the study

In the last two decades the organization moved globally to capture the international market and when an organization moved globally than it must focud on its employees. that’s why organization used the HR policies such as development of competencies, ethics, attractive work and mostly employers are focus on create jobs and conditions that satisfy the employees (nielspors 2002). There are many factors which are effect on job satisfaction. (Dinham and Scott, 1998) stated three factors that effect on job satisfaction intrinsic factors, operating factors and system level factors. Intrinsic motivation is clearly important types of motivation, most of the activities people do are not, strictly speaking, intrinsically motivated. This is especially the case after early childhood, as the freedom to be intrinsically motivated becomes increasingly curtailed by social demands and roles that require individuals to assume responsibility for non essentially interesting tasks. In schools, for example, it appears that intrinsic motivation becomes weaker with each advancing grade(Ryan and Deci 2000). Most consistent finding to emerge from this body of research is that intrinsic motivation is strongly tied to positive performance outcomes(Abuhamdeh, Csikszentmihalyi et al. 2015).  In 1959 the researcher Frederick Herzberg presents a two factor theory. In this theory he argues that there are some factors which lead to satisfaction and other are that inhibit dissatisfaction. He argued that motivational factors (sense of achievement, advancement opportunities, moral values, job security) lead to employee satisfaction (herzberg, 1959). This research is follow the studies (Hancer and George, 2003; smith et al., 1996;simons and Enz, 1995) that use distinct intrinsic factors categories to explore job satisfaction. Job satisfaction is a function of the difference between the amount of some outcome provided by a work role and the strength of a related desire or motive on the part of the person”. “Job satisfaction is the whole matrix of job factors that make a person like his work situation and be willing to head for it without distaste at the beginning of his work day(Srinivasan and Ambedkar 2015). In Pakistan employers focus on extrinsic motivation (cash compensation, incentives,) so industrial employees feel much dissatisfaction on their jobs that’s why they make the decision to turnout from the organization. The objective of present study is to investigate the impact of intrinsic motivation on job satisfaction in Pakistan. What is the impact of intrinsic motivation on job satisfaction? In this study we offer two contributions in a literature. First, we investigate the some confirmation to suggestion that intrinsic motivation may important for employee’s performance (Bonner and Sprinkle, 2002). Second, contribution is investigating the impact of intrinsic motivation on employee’s job satisfaction (Frey, 1997).

Competitive pressures in today’s banking sector in Nigeria demand that players in the field position themselves to cope with the challenges. Several authors (e.g Obicci 2015; Ajmal, Bashir, Abrar, Khan and Saqib 2015 and Ozutku 2012) have studied the effect of intrinsic and extrinsic rewards on employee productivity and organisational performance and how they relate to customer satisfaction. Employee performance is critical to organizations because to a large extent, a firm’s efficiency and survival depends on how well workers carry out their tasks. The extent to which employees render services to their customers are closely tied to the value they have placed on not just the pay they receive, but on the recognition, they get for a job well done and the belief that they would grow in their respective jobs (Njana, Maina, Kibet and Njagi 2013). To achieve high quality of work and effective customer service as a strategy, intrinsic reward in form of recognition, job advancement as well as other non-monetary rewards may play an important role in motivating employees. Recognition of an employee does not just involve a mere thank you or phony praise by managers towards employees; it involves more of empathy from managers towards employee. Employees need to have that feeling that their efforts are valued and they are not just treated as mere objects (Stajkovic, 2000). The role of recognition towards achieving employee performance can never be underestimated as through it, employees would voluntarily want to maximize their potentials towards achieving successful performance, they would be more willing to use their knowledge and skills without fear of insecurity. Recognition can lead to employee citizenship behavior such as altruism, consciousness, civil virtue and sportsmanship and it also provides mechanism to address the emotion and feelings of employee at work which is not merely influenced by monetary rewards (Nyakundi, Karanja, Charles and Nyamwamu 2012). managers are of the view that employees rate pay highest amongst the different types of reward. However, Edirisooriya (2014), Stajkovic (2000) and Nyakondi et al (2012) have pointed out the essence of recognition as a form of reward which would ultimately reflects performance. Job advancement according to Pillay, Dawood and Karodia (2015) is the progression of employees through the various ranks of organizational hierarchy. Career advancement may sometimes come in form of providing alternative needs. One of the ways in which organizations achieve job advancement for employees is through training and development. It is vital for organizations to be competitive in order to meet up global trends, especially in an era of high uncertainties in the banking sector, because failure to do so could threaten the survival of such banks as a result of loss of confidence by its customers and shareholders. The performance that would facilitate growth and development would always come from the human capital of firms because without people, other resources are rarely meaningful (Muda, Rafiki, and Harahap, 2014). Given the effect of reward on employee work outcome, this study examined the correlation between intrinsic reward and employee performance


Both extrinsic and intrinsic rewards motivate us to join and continue contributing to organizational promotion. One size does not fit all and also each individual has its own personal needs and preferences for rewards. This research is conducted to revisit the work of Herzberg on intrinsic motivation and to consider its validity and effectiveness when applied to the direct selling industrial institution. Low motivation in job will lead to low performance, decrease in job satisfaction, and increase in employee turnover and absenteeism. The excessive job dissatisfaction will affect significantly on the overall performance of the organization.


The main objective of this study is to ascertain the impact of intrinsic motivation on employee performance in tertiary institutions; but to aid the completion of the study, the following research hypotheses were formulated by the researcher;

  1. To ascertain the impact of intrinsic motivation on employee performance
  2. To ascertain if there is any relationship between intrinsic motivation and extrinsic motivation
  • To examine the effect of intrinsic motivation on employee job performance
  1. To evaluate the role of government in ensuring employee motivation in tertiary institutions

The following research hypotheses were formulated by the researcher;

H0Intrinsic motivation does not have any impact on employee performance

H1Intrinsic motivation does have an impact on employee performance

H0there is no significant relationship between intrinsic motivation and extrinsic motivation

H2there is a significant relationship between intrinsic motivation and extrinsic motivation


It is believed that at the completion of the study, the findings will be of great importance to the management of higher institution as the study seek to explore the innate attribute that serve as a driver to employee motivation, the study will also be of importance to employers of labor to explore the benefit of intrinsic motivation on employee performance, the study will also be of importance to researcher who intend to embark on a study in a similar topic as the study will serve as a reference point to futher research. Finally the study will be of benefit to students, teachers, researcher, lecturers, student and the general public as the study seek to add to the pool of existing literature.


The scope of the study covers the impact of intrinsic motivation on employee performance in tertiary institutions, but in the cause of the study, there are some factors that limited the scope of the study;


  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Finance: Limited Access to the required finance makes it difficult to get all the necessary and required information concerning the activities.



Motivation is the reason for people’s actions, desires, and needs. Motivation is also one’s direction to behavior, or what causes a person to want to repeat a behavior. An individual’s motivation may be inspired by others or events

Intrinsic motivation

Early in this century, most empirically oriented psychologists believed that all motivation was based in the physiology of a set of non-nervous system tissue needs.

Extrinsic motivation

Extrinsic motivation refers to behavior that is driven by external rewards such as money, fame, grades, and praise. This type of motivation arises from outside the individual, as opposed to intrinsic motivation, which originates inside of the individual.


one employed by another usually for wages or salary and in a position below the executive level


This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter.     Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.


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