Ito-Bayesian Employee Output Modelling for Corporate FinancialPerformance-driven motivation in Kenyan Credit Unions: Introducing theEntropy Motivation Model

Abstract

In Kenya, human resource office normally reports to the finance office. The finance manager allocates resources to horn the human resource asset; but has no way of measuring the expected output from his/her own end. This paper attempts to provide a metric for setting expectations for the human resource officer by the finance office; first by demonstrating that extrinsic motivation plays a more important role than intrinsic motivation, secondly, to show that corporate financial performance stimulus can be used to measure extrinsic motivation; and lastly, to show that activity based staffing maximizes employee output to optimally take care of high decision volume positions. Key motivation theories are revised and their components fitted around the concept of entropy from the second law of thermodynamics; information theory version. Entropy motivation theory that derives from binomial Bayesian decision model driven by geometric Brownian motion model is introduced. Subjective probability data were transformed into objective probability through cumulative prospect theory decision weights function. Two time-point longitudinal data were analysed. The results show that where low intrinsic motivation exists, strong corporate financial performance can stimulate extrinsic motivation. Total motivation obtains as a sum of intrinsic and extrinsic motivation.