Dimensions of Correlation between Profitability, Motivation, Inflation and a Human Motivation Theory

Construction industry highly relies upon the human resources to complete construction tasks. Thereby, overall profitability of the company may affect the human motivation and vice versa. Further, the inflation of a country can have pernicious implications to the profitability. This project presents the empirical findings and the correlation between stakeholder motivation and profitability in relation to the inflation in these macro-economic conditions and come up with a human motivation theory. Qualitative and quantitative methods were used for stakeholders with both open ended and closed ended questions for the survey. Year-end financial data statements were analysed as quantitative data. The data of exchange rates were analysed as quantitative data of secondary data collection. Cronbach's alpha (α) test was carried-out to measure the internal consistency. Principle components analysis (PCA) was done to reduce the redundancy of variables of questionnaires and define the major scales. The Kaiser-Meyer-Olkin (KMO) and Bartlett's test of sphericity to measure the sampling adequacy and Shapiro-Wilk (SW) test was done to test the null hypothesis ‘data distribution is equal to a normal distribution'. Pearson's correlation test was executed to test the null hypothesis ‘the population correlation coefficient (ρ) is equal to zero' to determine correlation and strength between exchange rates and the primary cost of the construction contractors. Based upon the findings, a strong correlation between profitability and stake holder motivation induced by inflation were visible. Further, the motivation theory “pentagon of motivation” was developed which defines five major dimensions which the humans are motivated, satisfactory work schedule, good working environment, proper training programs, proper resources to do the job well, good benefits package. Low gross profits have a major correlation to the high inflation of a country and low gross profits are caused by twelve major factors to trigger the “profitability spiral” in an organization