Effect of Employee Work Motivation on Organizational Performance: The Mediating Role of Job Satisfaction

Abstract

Purpose/Objectives:
This study investigates the effect of employee work motivation on organizational performance, with job satisfaction as a mediating variable. Conducted in Karnali Province, the research aims to explore how intrinsic and extrinsic motivation, along with job satisfaction, contribute to enhance organizational performance in the insurance sector.
Methodology:
A quantitative research approach was employed, using a structured questionnaire. The study collected data from a sample of 220 employees, selected through stratified random sampling from a total population of 400. Structural equation modeling (SEM) was used to analyze the direct and indirect relationships between work motivation, job satisfaction, and organizational performance.
Findings:
The findings reveal that employee work motivation has a significant positive impact on organizational performance. Furthermore, job satisfaction partially mediated this relationship, underscoring its critical role in translating motivation into improved organizational outcomes. Employees with higher levels of motivation and job satisfaction demonstrated greater productivity and efficiency, which positively influenced overall organizational performance.
Conclusions:
The study concludes that organizations aiming to enhance organizational performance should prioritize fostering a motivating work environment and improving job satisfaction. Strategies such as participative decision-making, recognition programs, and professional development opportunities can further amplify these positive effects.
Implications:
The implications of this research suggest that policymakers and organizational leaders in Karnali Province should focus on implementing workplace policies that enhance employee motivation and job satisfaction to achieve sustainable performance improvements. Future research could expand the scope to different regions and industries to validate and generalize the findings.