Employees Intrinsic Motivation and Incentives in Penguin Travel

Petya Naydenova

Student thesis: Master thesis

Abstract

The current thesis discusses the topic of employees’ motivation in a contemporary business setting. There are numerous works on motivation in psychology, sociology and economic literature. This broad theoretical knowledge was narrowed down to discussion of literature on intrinsic motivation and the influence it has over employees’ engagement in company’s activities. Main argument in the beginning of the thesis is that one of the important prerequisites for competitive advantage nowadays is motivated and committed workforce. The thesis provides an answer to the question: Why is it important for companies to increase their employees’ motivation and how can companies close to bankruptcy enlarge motivation and retain diligent workforce? Penguin Travel is experiencing financial difficulties, which may lead to the firm’s bankruptcy. Therefore complicated performance measurement and incentive system cannot be created and used for employees’ motivation. The work begins with drawing the link between employees’ motivation, performance and value creation. I argue that motivated employees will provide more efforts, thereby increasing their performance, which leads to better financial results in the company and value creation. Principle- agent theory is presented, as well as theories on intrinsic motivation such as need satisfaction and job design. The thesis analyzes the current motivational situation in the firm, gives an insight to the existing employees’ problems and provides suggestions for solving those problems based on alternative motivational literature and ideas for inspiring commitment. It shows that employees’ interests can be aligned with company’s interests by the means of tools such as: Communication, Empowerment, Trust building, Feedback and Partnership.

EducationsMSc in Accounting, Strategy and Control, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2011
Number of pages83