MOTIVATIONAL FACTORS AND THEIR IMPACT ON EMPLOYEE PERFORMANCE IN SOUTH AFRICAN MANUFACTURING FIRMS

Abstract

This study examines the relationship between employee motivation and optimal performance in the manufacturing industry in South Africa. An exploratory literature review methodology was adopted, drawing on local and international scholarly publications to investigate the effects of both financial and non-financial motivators. Findings indicate that financial incentives—including salary increases, cash allowances, bonuses, and retirement benefits—positively influence employees’ optimal performance. Similarly, non-financial motivators such as promotions, recognition awards, training and development, and participation in decision-making were also found to have a significant positive impact on performance outcomes. Consistent with previous literature, recognition awards were highlighted as particularly effective in stimulating employees to achieve optimal job performance. The study recommends that manufacturing organizations implement a balanced approach combining both financial and non-financial motivation strategies to enhance employee performance, productivity, and organizational effectiveness.