Introduction

Bunnings Warehouse is Australia and New Zealand’s leading retail store of home improvement and outdoor living goods. The company was established in 1886 in Perth, Australia. After it was acquired by the Australian retail giant Wesfarmers in 1994, the business was expanded in multiple locations in Australia and also in New Zealand, UK and Ireland. It provides hardware supplies to the project builders, housing industry and to the commercial traders. In 2017, the total revenue for Bunnings was $11.5 billion (bunnings.co.nz, 2018). It has around 40000 employees across Australia and New Zealand. The internal and external stakeholders of Bunnings New Zealand are the thousands of employees, suppliers, contractors, distributors and millions of customers across the country. By December 31, 2017, Bunnings had 253 warehouses, 33 trade centers, 77 small stores and 3 frame and truss stores across New Zealand and Australia, and people involved in all these centers are the stakeholders of Bunnings (Garcia, 2017).

Being a multinational company, owned by the retail giant Wesfarmers, Bunnings has almost 50 store locations in New Zealand and has strong employee strength. The business is still expanding in New Zealand. As the business is growing and number of employee is increasing, Bunnings also faces challenges in job satisfaction, motivation and the job performance of the employees. The particular issue of the research is that the warehouse is facing challenges in improving employee job satisfaction and increasing motivation to maintain retention of employees and absenteeism.

Research aim

This study aims to investigate to what level of extent makes employee’s job satisfaction and intrinsic or extrinsic motivation factors impacts on employees’ job performance (Task and Contextual performance) of Bunnings Warehouse, New Lynn.

Research objectives

The objectives of the research paper are:

• To examine the factors contributing in employee motivation and job satisfaction
• To evaluate the impact of employee motivation and job satisfaction on the performances of the employee

Research hypotheses

H1⁰: There is no impact of employee’s job satisfaction on employees’ job performance.

H1: There is a positive or negative impact of employee’s job satisfaction on employees’ job performance.

H2⁰: There is no impact of employee’s motivation on employees’ job performance.

H2: There is a positive or negative impact of employee’s motivation on employees’ job performance

Factors of employee motivation

Employee motivation is a crucial factor that influences the job satisfaction as well as productivity of the employees. It also affects the overall organizational performance to achieve the goals and objectives, and hence, the organizations put high emphasis on increasing the motivation of the employees. There are many factors that contribute in the employee motivation. Maslow’s Hierarchy of Needs is the most applied theory in explaining the motivation of the employees in a work place. The factors for motivations can be arranged in a pyramid, which displays a hierarchy. According to Anderson (2014), people must satisfy their physiological needs first, followed by the safety needs, belongingness or love needs, esteem needs and finally the self-actualization needs for getting motivation. It does not necessarily mean that all these needs must be satisfied for a human being to be motivated, but it implies the order of the needs must be followed while fulfilling the needs.

The employees of any organization can be motivated, if the organization can fulfill their hierarchy of needs. The employees must be provided enough remuneration to be able to have the basic goods and services to meet the physiological needs. Financial security affects the safety needs. The healthy working environment and cooperation and coordination among the employees fulfil the need of love and belongingness with an organization (Lester, 2013). Recognition for good work, respect from the other employees, and importance in the organization meet the need of esteem and lastly, when an employee can achieve his full potential by going through all the other needs, then his need of self-actualization is met, leading to high level of motivation. Hence, following from the theory, it can be said, when an organization suffers from the problem of lack of employee motivation and absenteeism, then it can be inferred that the organization cannot fulfill the needs of security, belongingness and esteem. This makes the employees leave the organization or remain absent from work (Niemela & Kim, 2014).

At the same time, when an employee gets motivation from his organization, he feels motivated to increase his productivity and give the best performance. Miner (2015) says that to get the enough motivation, the hierarchy of needs of the employee has to be fulfilled by the organization. Hence, it is seen that, an employee puts his best effort when he is motivated from his work.

Factors of employee job satisfaction

Job satisfaction is a highly relative factor. Almost every organization faces the challenge of providing job satisfaction to the employees. There are many factors that affect the job satisfaction of the employees of an organization and motivation is one of them. When the employees do not get motivation from their jobs, they do not get the job satisfaction (Ozguner & Ozguner, 2014). Many theories have addressed the factors influencing job satisfaction of the employees and one of the most commonly used theories in this regard is the Two Factor Theory by Herzberg. This is also known as the motivation-hygiene theory or the dual-factor theory. According to this theory, there are two sets of factors in a workplace, one set causes job satisfaction, known as the motivation factors, and the other set, known as the hygiene factors, causes dissatisfaction (Yusoff, Kian & Idris, 2013). Motivations factors are the intrinsic factors, such as, rewards and recognition, value to the organization, sense of achievement, scope for personal growth etc. These give rise to the job satisfaction of the employees. On the other hand, extrinsic factors, such as, salary, fringe benefits, job security, working conditions, paid and unpaid leaves, and organization’s policies, cause dissatisfaction regarding the job (Latham, 2012). These are the hygiene factors. This theory is also relevant for explaining the job satisfaction of the employees.

Hence, increasing the job satisfaction of the employees requires not only the reduction of the hygiene factors, but also increasing the motivation factors. Miner (2015) points out that job satisfaction influences the employees to increase their productivity and perform well. Hence, it is seen that, when an organization takes efforts to increase the motivation factors and reduce the hygiene factors, the job satisfaction of the employees increases and that is reflected in the work performance.

Gap in the literature

The theories on the job satisfaction and motivation have addressed only the specific issues of satisfaction and motivation respectively. However, the combined impact of employee motivation and job satisfaction on the employee job performances was not measured.

Methodology (Paradigm)

Research methodology illustrates the paradigm or philosophy of research. This is the first step of any research study. Research paradigm presents a set of beliefs or assumptions on the process of gathering the data or information about the research topic, its analysis process and presentation of the explanation (Saunders et al., 2015). A research study can follow different ways according to the requirement. The research philosophy exhibits the specific way that would be chosen by the researcher to meet the research objectives, based on the source and nature of the knowledge gathered (Hughes & Sharrock, 2016). Four types of research paradigm are interpretivism, positivism, realism and pragmatism. Interpretivism involves qualitative analysis of the research phenomenon, on the basis of the interpretation skills of the researcher and it is mostly objective in nature. Positivism includes quantitative analysis of the research phenomenon as it allows the researcher to apply statistical method for calculating and analyzing the data. Realism depends on the idea of independence of the reality of the research topic from the human mind and under pragmatism, the researcher uses both qualitative and quantitative method of research to get the outcome (Ryan, 2018).

In the given research study, the researcher needs to identify the factors influencing motivation and job satisfaction of the employees and their impact on the work performances of the employees in Bunnings Warehouse, New Zealand. To test the research hypotheses, the researcher needs to collect primary data and analyze the data using any scientific method to reach to a logical and rational conclusion. Hence, positivism philosophy will be chosen by the researcher for this research.

Research design and methods

A research study consists of many processes, such as, research approach, design, strategy, sampling, data collection and analysis process. The selected methods for this research study are as follows.

Research approach refers to the exploration of the research topic that the researcher adopts. Three types of research approaches are inductive, deductive and abductive. Inductive approach enables the researcher to take the exploratory approach of research, that is, exploring the topic of the research to generate a new theory from the observations. In the deductive approach, the researcher evaluates the research hypothesis based on the established theories. In other words, the inferences are drawn from the theories to get the conclusion (Hughes & Sharrock, 2016). In the abductive approach, the researcher takes the decision to draw the most possible inference among numerous possible explanations, which can generate from the specific set of observations (Walton, 2014). In this study, the researcher will choose the deductive approach, since, the evaluation of the role of employee job satisfaction and motivation on the work performances of the employees of Bunnings Warehouse, New Zealand, will be tested against the theories of motivation and job satisfaction. There is no need to generate new theories or there will not be many possible outcomes to choose one from.

Research design or is the strategy of the researcher about how to go ahead with the research to answer the research questions. It mainly presents the strategy of integrating different components of the research in a logical and coherent way, which ensures the effective addressing to the research problem. It consists of the steps and direction of data collection, their measurement and the analysis process. Various types of research design are case study, causal, action research, cohort, cross-sectional, descriptive, experimental, longitudinal, exploratory, historical, meta-analysis, mixed-method, observational, philosophical and sequential (Lewis, 2015). The researcher will adopt the case study research design for this research study. The research topic is narrowed down to a researchable example and the hypotheses are tested against a real world phenomenon (Hancock & Algozzine, 2016). The researcher has taken Bunnings Warehouse as the case study company and conducted a survey to get the information on the research topic. It helps in getting specific data on the factors, which makes it easy to comprehend.

Research method refers to the steps that are taken to collect, analyze and present the findings to get the desired outcome of the research. Two fundamental research methods are quantitative and qualitative method. Quantitative research is mainly based on explanatory research approach and positivism philosophy of research. It mainly deals with numeric data and statistical functions, applied to them to obtain a scientifically proved result. The behavior of the sample, attitude and opinions are quantified using statistics for the calculation of the data. Large samples are usually considered and surveys, online polls are used for data collection (Hussein, 2015). On the other hand, qualitative research method is mainly followed for exploratory research. It is used to analyze the underlying reasons, motives and opinions of the sample. This method is beneficial for providing insights into the problem of the research. Interpretivism philosophy is applied, sample size is usually taken small, and interview or focus group method is usually followed for data collection under this method (Brannen, 2017). In the given study, the researcher will adopt the quantitative research method as it is easier to comprehend the trend in the data collected from the sample and generate a logical and scientifically proved outcome of the research topic (Bernard, 2017).

The researcher will collect primary data for the given research study. Survey method is chosen for the data collection. The survey will be conducted on the employees of Bunnings Warehouse, New Lynn, New Zealand. The questionnaire will contain approximately 45 close ended questions, focusing on the factors of employee motivation and job satisfaction and its impact on the job performance of the employees. The responses will be collected using 5 point Likert scale.

Sampling is essential for data collection. Sample is a subset of the population displaying the similar characteristics. The researcher will conduct simple random sampling to choose the sample of around 60 employees among the 100 employees in Bunnings, New Lynn.

Data analysis process will include quantitative methods, that is, statistical calculation on the data. The responses of the participants will be converted into numeric values and statistical functions will be performed using SPSS version 20. Mean, Reliability test, Pearson Coefficient, that is, Correlation, and Linear Regression Analysis will be performed on the data to test the research hypotheses.

Ethics

The research work will follow the code of ethics of New Zealand in the workplace. Personal information of the participants will be confidential and the data will be used only for educational purpose. The study will follow ethical means of conducting research and organizational code of ethics by not breaching the privacy and data confidentiality policies, followed in New Zealand. The respondents for the survey must participate voluntarily. Informed consent should be taken before conducting the survey. The government of New Zealand follows some rules of the Treaty of Waitangi in the organizational culture. It was an agreement between the British and the M?ori tribes of New Zealand, signed in 1840. It is not a part of the domestic laws of New Zealand, which focuses on the protection of the M?ori settlements and lands, but it was incorporated in limited manners in the State Owned Enterprises Act 1986 (Nzhistory.govt.nz, 2018). The basic principle of this treaty is the protection of right and the researcher must follow the principle of protection of information while conducting the research.

Significance of the research

The significance of the research is to provide a solution to Bunnings Warehouse, New Lynn, to address the issue of retention of the employees and absenteeism due to lack of employee motivation and job satisfaction. This research will help the organization to understand the specific problem leading to employee dissatisfaction and find out ways to eliminate those problems.

Data analysis

The researcher aims to test two hypotheses to get the knowledge about the whether the employee job motivation and job satisfaction have positive or negative impact on the job performance of the employees of Bunnings Warehouse, New Lynn in New Zealand. To conduct the data analysis, the researcher conducted a survey with 43 questions on 60 employees of Bunnings Warehouse, New Lynn. The questionnaire contains four sections. Section A contained 7 questions, focused on demographic information, Section B addressed factors on job satisfaction. Section C had questions on employee motivation, and the last section, D, contained questions on job performance. The responses of questions in sections B, C and D were collected on a five-point scale, where 1 represents strongly agree and 5 represents strongly disagree. The statistical calculations were performed using SPSS version 20. The explanations of the findings are as follows.

Findings

Section A: Demographic analysis

Section A analyzed the demographic information of the respondents. It included age, gender, employment status, department, income status, size of total employees in the company and number of years working with Bunnings Warehouse. The frequency analysis of the factors is as follows.

Among the respondents, 53.3% are female and 46.7% are male.

Majority of the respondents (23 people) belong to the age group of 18-25 years, followed by 21 respondents within 26-49 years, 11 people in 50-64 years and only 5 are above 65 years and up.

34 respondents work permanently with Bunnings Warehouse, while 16 are casual workers, 8 part-time workers and 2 are in fixed contract with the company.

There are many departments in Bunnings Warehouse stores. The survey was conducted on employees belonging to different departments. 16 are from Admin department, 14 work in the Lifestyle, 7 in Hardware, 5 in Storage, 7 are from the In-home, 2 work in the Paints, 1 from the Plumbing department, 3 from Trade, 1 from Price Integrity, 3 from Merchandising and 1 works in Goods Inwards (GI) department. The range of department is varied and this has allowed the researcher to explore the factors in different departments.

43 respondents reported an annual income of 31,000 to 49,999, 14 have income below 30,000 and 3 have very high income of 50,000 to 69,999.

41 respondents reported that they believe that the total size of employees of the company is 101 to 500 people, while 11 people believe that the workforce consists of 51-100 people. Only 2 think that there are only 0 to 50 employees and 6 people think that there are 501-1000 employees in Bunnings.

Majority, that is, 36 respondents are working in Bunnings for 2 to 4 years, 16 are working for less than 1 year and 8 are working for 5-10 years.

Section B: Job satisfaction analysis

This section contained 13 questions that focused on different aspects of job satisfaction. The responses were converted into numerical values to perform several statistical functions to get the desired result. Descriptive statistics have been performed on the variables and the results are as follows.

From the above table, it can be said that, the mean values of the variables are lying in between 2 to 3. This indicates that, since the response values are represented in a five point scale values, with 1 being strongly agree and 5 being strongly disagree, the mean values between 2 to 3 represent the average inclination of the responses towards being agree or undecided. Hence, it can be said that, the average response rate for all the 13 elements is towards the agreement to the questions.

Section C: Employee motivation analysis

This section included the elements that influence the employee motivation in the organization. It also contained 13 questions, focusing on 13 different types of factors contributing the motivation of the employees.

The descriptive statistics of this section shows that the average response rate is lying from 1.75 to 3.12. This again indicates that the average responses are varying from the options of strongly agree to undecided. Majority of the respondents have strongly agreed to the question of the determination of putting the best effort in work every day, while majority said that they are undecided about whether they frequently think about quitting their jobs. In case of other factors, the respondents have mostly agreed. Hence, it can be said that these factors were well chosen for the analysis.

Section D: Employee performance analysis

This section contained 10 questions, focusing on the employee performance. 10 different elements were chosen that would reflect the perception of the respondents about the performance of the employees and these elements were so chosen that they correspond to the factors of employee motivation and job satisfaction.

In this table of descriptive statistics of the 10 elements reflecting employee performance in Bunnings Warehouse, it is seen from the average rate of the responses that majority of the respondents have agreed and strongly agreed to these factors. This indicates that, the elements are well chosen by the researcher that reflected the factors that can measure the employee performance in Bunnings Warehouse in New Lynn.

Reliability test

Reliability test evaluates the internal consistency of the data. It measures how much the dataset is consistent internally. The score is measured by Cronbach’s Alpha. If the value is 0.7 or more than that, it is considered to be an acceptable score, that is, there is a good level of consistency in the data (Peterson & Kim, 2013). In this given research, the reliability score is 0.777, which is a good score of the reliability and validity test. Hence, it can be said that the responses are quite consistent.

Correlation analysis

Correlation analysis is performed to find out how the variables are related to each other and if there is linear dependency among them. The value of correlation coefficient measures the strength of the relationship between the variables. Pearson’s correlation coefficient is most commonly used in the statistical analyses to find out the correlation between the variables (Sedgwick, 2012).

While performing the bivariate correlation analysis, it is mandatory to take two variables. However, the researcher has designed the questionnaire in a manner that divided it into four sections and each section had more than one variable. All the variables under a particular section of the questionnaire addressed various elements contributing in the total aspect, such as, employee motivation, job satisfaction and employee performance. However, correlation cannot be performed on all the cross-sectional variables to get the desired outcome, as that would make the analysis too complex and robust. Hence, to tackle this problem, the researcher had chosen one variable from each of the three sections to study the hypotheses, formulated earlier. The variables were chosen on the basis of their proximity and relevance with the aspect and topic of the research. For example, from section B, which addressed the aspects of job satisfaction of the employees, the researcher chose the variable of satisfaction with salary package. As it is a fact that, people work to earn their living, hence, job satisfaction is majorly dependent on the salary package. An organization can provide a good working environment, but people will not have job satisfaction if the company pays too little. Following the similar reasoning, the researcher chose the variable of enjoying the appreciation for good work in Bunnings from Section C to represent the employee motivation in the correlation analysis and from section D, the variable that captures the data on meeting all the job performance standards was chosen to represent the relevance under employee performance.  

After three variables were chosen, the researcher performed correlation and the result is presented in the following table.

From the above table, it is seen that, the variable of job satisfaction and employee motivation are positively related with each other, but these have a negative correlation with the variable representing employee performance. In other words, satisfaction with salary package is positively correlated with motivation coming from the appreciation of good work. These factors contribute in increasing both the employee motivation and job satisfaction. However, satisfaction with salary package and enjoying appreciation do not necessarily mean that the employees are meeting all the standards for job performances. The negative value of the Pearson’s correlation coefficient for the relationship between meeting all job standards and satisfaction with salary package and with appreciation with good work indicates that, increase in one leads to decrease in another. This is a contradiction with the theories of employee motivation and job satisfaction and their effect on the employee performance.

It can be possible that the factors chosen for representing each of the section might not be positively correlated with each other and selecting a different factor could have led to positive result (Cohen et al., 2013). However, it can be said that, with the chosen variables for each of the three aspects, it cannot be inferred that employee motivation and job satisfaction are positively correlated with the employee performance in the workplace.

Regression analysis

This analysis is conducted to evaluate the relationship between the dependent and independent variables. This analysis is performed to explain the causal relationship among the dependent and independent variables in a study (Montgomery, Peck & Vining, 2013). Since, the researcher aims to test two different hypotheses, that involves the testing of the positive or negative impact of employee motivation and job satisfaction respectively on the employee performance, it is understood that employee motivation and job satisfaction are two independent variables and employee job performance is the dependent variable. A simple linear regression model is formulated with these factors to test the hypotheses. Satisfaction with the salary package and enjoying the praise for the good work are two variables chosen from section B and C respectively with the same reasoning as in the case of correlation analysis. Since, grouping of variables could not be done as that would increase the complexity of the analysis; the most relevant variable is chosen from the list of variables under each of the three sections. The result of the linear regression analysis is as follows.

From the model summary, it is seen that R-Square value is 0.017. This means that the model is not a good fit and it can only explain 1.7% of the model (c). From the t-values of the model it is seen that, it is negative as well as insignificant for both the independent variables. The t-value ranges from +1.96 to -1.96 at 95% confidence interval (Montgomery, Peck & Vining, 2013). Any value outside this range is insignificant. In the given paper, it is found that, the relationship of the variable, meeting all the job standards with satisfaction with salary and with enjoying praise for good work, is not significant enough to draw any significant conclusion about the hypotheses testing.

Results

From the data analysis it is found that, the results of correlation and regression analysis cannot lead to any specific result for the hypotheses testing. There are 43 questions in the questionnaire, covering various aspects of job satisfaction, employee motivation and job performance of the employees. However, for performing the correlation and regression analysis, the researcher had to select one factor from each of the groups, which was most relevant and had significant impact on the three individual aspects. It is seen that both the correlation analysis and regression analysis resulted in insignificant outcomes, that is, the models cannot explain any proven relationship among the dependent and independent variables (Krämer & Sonnberger, 2012). Although the dataset is consistent internally, yet the outcomes are contradicting to the established theories of job satisfaction and employee motivation and their impact on the job performance. Hence, acceptance or rejection of the null hypotheses cannot be inferred from this data. It is assumed that the problem is generated from the structure of the questionnaire. The groupings were done with too many factors on each aspect, which has made the study complex and robust.

Conclusions

According to the theories on employee motivational and job satisfaction, it can be said that these are two important factors that can have significant impact on the productivity and performance of the employees. The researcher aimed to find out a solution to the job satisfaction and motivational issues of the employees of Bunnings Warehouse, New Lynn in New Zealand that led to employee attrition and absenteeism from work through this research study. Through the survey conducted on 60 employees of Bunnings Warehouse, the researcher also aimed to fulfill the objectives of the research. Some recommendations are also provided in the end that can solve the issues found during the data analysis.

Linking to the objectives

Linking to the first objective

The first objective of this paper was to find out the factors that influence the job satisfaction and employee motivation. The researcher included some factors in the survey questionnaire that address various aspects of the above mentioned factors. These factors were chosen based on the knowledge gained through literature review. Both the job satisfaction and employee motivation depend on many factors, such as, salary package, appreciation, good relationship with supervisors and coworkers, good communication, sense of belongingness, good understanding of the job profile, benefits by the company, chance for promotion, sense of importance in the workplace and many more. These factors were incorporated in the questionnaire and from the pattern of responses, it is seen that the employees of Bunnings consider all these important as contributory factors in job satisfaction and employee motivation.

Linking to the second objective

The second objective of the paper was to evaluate the impact of job satisfaction and employee motivation on the employee performance. According to the literatures, following Maslow’s hierarchy of needs and Herzberg’s motivation-hygiene theory, the employee motivation and job satisfaction are interrelated and have a significant impact on the performance of the employees. However, from the analysis of the collected primary data, it is found that the researcher could not draw an affirmative conclusion on the existence of the relationship among the factors. The factors of job satisfaction and employee motivation are positively correlated but there is no positive correlation with the factors of employee performance. The regression analysis also could not find any significant relationship among the dependent and independent variables. Hence, this is a contradiction to the theories on job satisfaction, motivation and performance of the employees in an organization.

Recommendations

The data analysis could not lead to any inference from the survey data, as the correlation and regression analysis generated insignificant results about the relationship among the factors representing job satisfaction, employee motivation and performance of the employees. To provide recommendations to address the research problem, a significant outcome of the data analysis is required, which is not present in this case. To solve the issues with data collection and analysis, the researcher can adopt certain measures.

• The structure of the questionnaire should be changed and it should include precise format with very few factors that address the job satisfaction and employee motivation, along with performance parameter of the employees.
• Before conducting the research, a pilot test must be conducted to check the validity and reliability of the questionnaire. This would help the researcher to edit the questions as necessary to collect valid responses.
• The variables must be chosen carefully, so that those would address the research problem precisely, and generate a valid outcome from the analysis.

The authorities of Bunnings Warehouse, New Lynn can address the issue of lack of motivation and job satisfaction of the employees and resulting impact on the performance by focusing on the factors that affect these directly, such as, providing good salaries, benefits, good and supportive working environment, appreciation for good work and opportunities for career growth, which can help in address the issues of employee retention and absenteeism.

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