Employees Motivation in Knowledge-Based Organizat
Employees Motivation in Knowledge-Based Organizat
Employees Motivation in Knowledge-Based Organizat
ORGANIZATIONS
IN THE IT INDUSTRY
Abstract. Employees’ motivation is, probably, the biggest and most profound concern of managers today.
Considering the constant changes of the marketplace, along with the attrition rates nowadays, we can easily
understand why this matter is of high importance. But how did the study of motivation evolve throughout
time and what stage has it reached today? From Maslow and the Pyramid of Needs to Herzberg and the
Two-Factor Theory, McGregor and the X and Y Theories or McClelland and his Need for Achievement
Theory, the matter of motivation has long been debated and researched. The present scientific paper aims
to analyze how today's employees in knowledge-based organizations find job satisfaction, what helps them
feel motivated and the way in which the management and the organizations can influence the level of job
satisfaction and motivation for the employees working in the IT industry. Generations evolve and so do their
expectations of what a workplace should look like. For the employees working in the IT industry, the
autonomy, and the learning opportunities they could have while doing their job are at least as important,
or perhaps more important than their level of satisfaction with the financial benefits offered by companies.
The research methodology of the present paper is based on literature review, and the objectives are related
to describing the knowledge-based organizations and how they differ from other types of organizations,
analyze the evolution of motivation theories over time, presenting the IT industry and its specifics for the
motivation of employees in this field.
Introduction
The most valuable and at the same time the most complex resource of any organization is the
human resource. The goal of any organization is to maximize the strengths and minimize the
weaknesses of human resources. The purpose of this paper is to study how employees’ motivation
can affect or influence their performance, but also how the IT industry differs from other industries,
in terms of employee motivation methods.
There is no formula for motivation, on the contrary, each person responds differently to
certain motivational factors, however, within organizations, the responsibility regarding the
motivation of each employee is assigned to managers, who must reach the level where they know
their team members very well, so that they manage to know exactly what motivates them. The
human being is the only resource with feelings and emotions, which can think, react, and feel, but
when faced with the lack of motivation, this resource will quickly self-limit.
Knowledge-based organizations
In his paper, “The Coming of the New Organization”, Peter Drucker predicts the emergence of
what we know today as “knowledge-based organizations”, also known as “learning organizations”.
This type of organization is represented by the fact that, in comparison to typical
manufacturing organizations known in the 1950s, their workers are mainly specialists in their field,
capable to self-organize and to adjust based on the feedback received. These employees are also
characterized by the desire to continuously learn in an organizational context that will put great
emphasis on empowering them and giving them all the needed means to become successful.
Other important aspects regarding these organizations are their flat structure, with
decentralized structures for decision making, and the fact that that work is not made identically by
all the employees, but they are filled with specialists that have their own unique way of performing
the work when empowered to do so. (Drucker, 1988)
In his book, “The fifth discipline”, Peter Senge describes an organization that is in a
continuous improvement process, that is capable to adapt, innovate and evolve, based on five key
components: Systems Thinking – the capability to see events as part of a complete system, that
interact and have effects on each other, and not only as small, isolated parts; Personal Mastery –
reaching a high level of proficiency through continuous improvement of personal skills and
abilities, developing patience and the capability to see things objectively and keeping a strong
connection between the personal and organizational learning objectives; Mental Models – a
common understanding for all employees of the organization in which they work, the business
environment and all the other factors that may have a big influence. This refers to people being
able to speak up about their understanding of how things work in order for others to have the same
DOI: 10.2478/picbe-2023-0189, pp. 2161-2171, ISSN 2558-9652
Proceedings of the 17th International Conference on Business Excellence 2023
understanding; Building Shared Vision – the vision related to the future of the organization, its
goals and direction, that should be shared between the people, because when people work for a
common vision, they are brought together by the same dreams and will work towards
accomplishing them with more interest than they would do if just being told to do so by the
management. This nurtures a commitment feeling and buy-in from employees; Team Learning –
the capability of working together to create more valuable outcomes than individually. Like sports PICBE |
teams, in business, working together and producing amazing results must be trained and learned. PAGE \*
An important contributor to team learning is the team communication (or team dialogue),
encouraging collaboration and teamwork, and creating an environment in which individuals can
learn from one another. (Senge, 2006)
Another theory that deepened the subject of motivation is Frederick Herzberg's Dual Factor
Theory (fig. 2). According to Herzberg, there are certain factors that result in satisfaction in the
workplace and there are also other factors that aim to prevent dissatisfaction.
According to Herzberg, the opposite of "Satisfaction" is "non-Satisfaction", and of
"Dissatisfaction" is "non-Dissatisfaction". (Herzberg, 1964)
Herzberg classified these factors into two categories: hygiene factors and motivational
factors.
Hygiene factors represent those factors that are essential for the existence of motivation at
work. They do not lead to positive long-term satisfaction, but if these factors do not exist in the
workplace, they will lead to dissatisfaction. In other words, hygiene factors are those factors,
which, once reasonable in a workplace, tend to “pacify” employees, and keep them away from
dissatisfaction. These factors are extrinsic to work and are also called “maintenance factors”, as
they are necessary to avoid dissatisfaction. These factors describe the work environment and
symbolize the psychological needs that individuals expect to be met. (DeShields, et al., 2005)
Hygiene factors include the salary or the wages, which must be appropriate for the work
performed and must be equal and competitive with those operating in the same industry or field;
company policies and administrative policies, which must be clear and fair; fringe benefits:
employees should be offered employee assistance programs, family benefits, health care plans,
etc.; physical working conditions: work must be carried out in safe, clean and hygienic conditions,
work equipment should be well-maintained and comply with the latest standards; interpersonal
relationships: employees’ relationships with colleagues, superiors and subordinates must be
appropriate and acceptable, there should be no conflicts or humiliating elements; occupational
safety: the organization must ensure occupational safety for all employees. (study.com, 2022)
According to Herzberg, hygiene factors cannot be seen as motivational factors.
Motivational factors are those that give positive satisfaction. These factors are intrinsic to work
and motivate employees to achieve a higher position. They are involved in doing the actual work,
and employees find them satisfying. Motivators symbolize psychological needs that have been
perceived as an additional benefit. These include recognition, a sense of accomplishment,
opportunities for growth and advancement, and the importance of work.
A third view on motivation is found in two theories that can be seen, equally as an analysis
of motivation, but also as a comparison between two different management styles: Douglas
McGregor's Theory X and Theory Y (fig.3).
In these two theories, McGregor draws a parallel between the egocentric man, who is
indifferent to organizational goals, who lacks ambition, dislikes responsibility, and prefers to be
led in his organizational work. This is the typical employee described in Theory X and is by its
nature indolent, chooses to work as little as possible, resistant to change, naive and easily fooled.
There is a clear division between management and workers, with managers having a strong
control over the employees, managers being expected to make all decisions and employees simply
to follow instructions.
In terms of motivation, this employee constantly needs actions from the outside, his activity
is often guided by the management - without which he would be indifferent, even resistant
regarding organizational activity. This type of employee must be constantly convinced and
rewarded, sometimes even punished in cases where it is considered necessary. The approach
associated with this theory can, in practice, lead to low morale, high turnover, and a lack of
Conclusions
Over time, the issue of motivation has been long discussed and debated. Understanding the
motivational factors’ impact on employees’ lives and workplace habits has been for many years
subject to many studies and theories.
There is no key to guessing what external or internal factors motivate everyone, exactly as
there are no secret tools that could help managers find out what the sources of the absence of
motivation are, without clear communication, constant feedback, and support towards their
employees. Of course, there are many factors that can contribute to changes in motivation, but its
complexity is also what gives its beauty.
Along with technological evolution, the organizations have also evolved, being followed
(or even anticipated) by the evolution of the employees.
The purpose of the learning organizations is to constantly encourage and support systems
in which these employees can learn, develop new skills, grow professionally, accept new tasks and
challenges, and adapt to all the business environment changes, technological advances or any other
factors. These organizations must provide learning means, promote cross-functional collaboration,
and regularly provide feedback to their employees, so that they feel motivated and satisfied with
their work and be able to evolve, gather existing knowledge, understand and interpret it, transmit
it to others, with the final purpose of creating new knowledge.
The IT industry is, by excellence, an industry of evolution and innovation, both
technologically and regarding the evolution of people, which must constantly keep pace with
technology, risking that the knowledge that is in vogue today will become obsolete in a short time.