ENEMS MICROSYSTEMS RESEARCH SPOT: employee motivation

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Sunday 12 March 2023

EFFECT OF MOTIVATION ON THE PRODUCTIVITY OF EMPLOYEES IN THE HIGHER INSTITUTION OF LEARNING

EFFECT OF MOTIVATION ON THE PRODUCTIVITY OF EMPLOYEES IN THE HIGHER INSTITUTION OF LEARNING

(A case study of School of Business Studies Federal Polytechnic Nasarawa)

ABSTRACT

This project work explores the effect of motivation on the productivity of employees in the higher institution of learning. The study is to ascertain the motivational activities of Federal Polytechnic Nasarawa, the application of the motivational techniques by School of Business Studies Federal Polytechnic Nasarawa and to know the problems inhibiting the success of the employees’ motivation in the institution. The researcher used both primary and secondary source to collect data, questionnaire and personal interviews were used in getting some relevant data that can be of help during the course of the research. Chi-square method was adopted in analyzing the data collected, the researcher also present the data in a tabular form and test the hypothesis. The result of this study has shown that staff can be motivated to boast their productivity financially, through training and promotion, the institution provides staff welfare such as transportation and accommodation and motivation serves as a solution provider for some of the institutional problems such as low productivity. It was recommended that the institution should continuously embark on recruitment and training of staff in response to their needs and management of the institution should consider the employment of more female staff since naturally, it will serve as motivation for the male counterpart in interacting with opposite sex, producing social liveliness that also encourage efficiency and effectiveness in an institution.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Motivation is concerned with why people do what they do. It answers such questions as why do managers or workers go to work and do a good job. This tries to explain what motivates people to act the way they do, with primary focus on the work place. It is the primary task of the manager to create and maintain an environment in which employees can work efficiently to realize the objectives of the institution.

Employees differ not only in their ability to work but also in their will to do so (motivation). To motivate is to induce, persuade, stimulate, even compel, an employee to act in a manner which fulfills the objectives of an institution. The motivation of employees depends on the strength of their motives. Motives are needs, wants, drives, or impulses within the individual, and these determine human behaviour.

Motivation then is the process of:

Arousing behaviour
Sustaining behaviour in progress, and
Channeling behaviour into a specific course of action.

Thus, motives (needs, desires) induce employees to act. Motivation, therefore, is the inner state that energies, channels, and sustains human behaviour.
Since it has been established that all behaviour except involving responses are goals directed, manager can apply motivational theories of management in their attempt to direct the job behaviour of employees towards the goal of their establishment.

Inyang (1995) defined productivity as the output and input ratio within a given time frame and with special attention to quality and the efficient use of resources. The National Productivity Centre in the information booklet defines productivity as doing the right things the right way, getting more output within less input, getting more output with the same input, punctuality and promptness, elimination of wastes in all forms, justifying your pay, improvement in all aspects of life, producing more and more of better quality. The summary of all definitions of productivity is the balance between all factors of production that will give the greatest returns for the smallest efforts.

1.2 STATEMENT OF THE PROBLEM

Workers leave institution due to the fact that they are not motivated enough. Some are not willing to leave because they are enjoying some benefit in terms of promotion which leads to increase in salaries and wages, bonuses and some other incentives.

Institution must improve the work performance, productivity, skills and ability of its employees. This study seeks to fashion out how to motivate workers to achieving higher productivity.

1.3 OBJECTIVES OF THE STUDY

The study is to ascertain the motivational activities of School of Business Studies Federal Polytechnic Nasarawa

To ascertain the application of the motivational techniques by Federal Polytechnic Nasarawa.
To know the problem inhibiting the success of the employees’ motivation in School of Business Studies Federal Polytechnic Nasarawa.
To know the response of the employees to motivational techniques adopted by School of Business Studies Federal Polytechnic Nasarawa.
To provide solutions and recommendations where necessary on the best and effective motivational techniques used in School of Business Studies Federal Polytechnic Nasarawa.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this study cannot be over-emphasized. It will be based on the examination of the motivation practice in Federal Polytechnic Nasarawa, and to know the extent to which it is being carried out, the effects on the workers, the institution and the country at large. More so, to acquaint the various managers and different categories of employees to the need to embrace motivation which will go a long way in achieving higher productivity.

Besides, those students in the field of administration will find it educative, interesting and challenging in that, the various activities and techniques of motivation are revealed and logically analyzed.

Lastly, this project will be of value to those who may want to carry out similar research in the nearest future.

1.5 RESEARCH QUESTIONS

Some of the research questions are:

To what extent does the personnel policy implemented by School of Business Studies Federal Polytechnic Nasarawa affect your productivity?
How often does School of Business Studies Federal Polytechnic Nasarawa embark on staff training and development?
Does School of Business Studies Federal Polytechnic Nasarawa clearly/respect staff union position of its employees?
Are there differences in the way staff and workers are treated in School of Business Studies Federal Polytechnic Nasarawa?
Is joint consultation practiced positively, as a method of obtaining employees views on problems and proposed charges before final decisions are taken?

1.6 RESEARCH HYPOTHESES

The research hypotheses are:

Hypothesis I:

H_O (Null Hypothesis): The more effective motivation, the less morale of employees.

H_I (Alternative Hypothesis): The more motivation, the more morale of employees.

Hypothesis II:

H_O (Null Hypothesis): Adoption of motivational techniques will automatically decrease the workers’ productivity.

H_I (Alternative Hypothesis): Adoption of motivational techniques will automatically increase the workers’ productivity.

1.7 SCOPE AND LIMITATIONS OF THE STUDY

This project covers the aspect of motivation in persuading, stimulating and compelling an employee to act in a manner which fulfills the objectives of the organization.

One cannot but say that data collection is the most tedious of writing the project.

Another limitation is that the researcher being a student who has to read other courses as well as to take normal lectures during the period of the research may be limited by time given for the study being too short.

Lastly, the fund constraint in carrying out this research project, the cost of getting materials and information as well as their adequacies will also constitute the limitation of the study.

1.8 DEFINITION OF TERMS

Motivation: This is the process of arousing behaviour, sustaining behaviour in progress, and channeling behaviour into a specific course of action.
Management: This is the process of getting things done through people. It involves planning, organizing, staff, directing, coordinating and controlling both human and material resources for the purpose of achieving a set goal.
Responsibility: This is the subordinate’s obligation to perform a duty which has been assigned to him.

Leadership: Is a process of using non-coercive influence to direct and coordinate the activities of group members towards goals’ accomplishment.

Manager: Is one who performs the functions of management (planning, organizing, staffing, etc.) and occupiers a formal position in an organization.
Organization: This has to do with determination and provision of capital, material, equipment and personnel that may be required in an enterprise in order to achieve the set goals.

Organizational Structure: This is the established pattern of relationships among the components of the organization.

Organizational Chart: It is a diagram that shows the arrangement, positions and interrelationship of various component parts of company.
Employee: This is a person who is paid to work for an organization or business enterprise.

Behaviour: Is the manner that someone, an animal, a plant etc. do things in a particular way.

Department: Any of the division or unit of a government, business, school or college and so on.

Employees’ Services: This is the maintaining of the general welfare of employees on the job and assisting with problems related to their security and personal wellbeing e.g. medical services and insurance protection.
REFERENCES

Ajayi Nelson (1991): Managerial Planning and Control, Ibadan: U.I. Press Limited.

Akintunde, A.D. (2005): How to Motivate Workers to Achieve Higher Productivity, Unpublished ND Business Studies Polytechnic Ibadan, Oyo State.

Donely Gibson (1984): Fundamental of Management Plan, New York: Texas Business Company.

Friday 31 December 2021

THE EFFECT OF COMPENSATION ON EMPLOYEE MOTIVATION

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Motivation can be defined as the set of factors that cause people to behave in certain ways (Schwartz, 2006). Motivation is derived from the term motive which is a reason for doing something (Amstrong, 2008), the reason can either be internal (intrinsic) or external (extrinsic) factors (Herzberg et al, 1957). Motivation can be described as goal-oriented behavior (Amstrong, 2008). Drafke (2002) defines motivation as simply an incentive to act.

Motivation is among the key concerns of organizations in the modern business environment, as it has been identified to be critical in achieving business goals and objectives. This means giving close attention to how individuals can best be motivated to achieve objectives set for them (Amstrong, 2008). Amstrong (2008) continues to say that motivation can be through incentives, rewards, and positions all aimed at ensuring that the individuals deliver results in accordance with expectation of management.

Motivation determines how a person will exert his or her effort. It represents the effort will be exerted (DeNisi and Griffins, 2008). Because of motivation’s role in understand and to structure the work environment to encourage productive behaviors and discourage those that are unproductive. (Jex and Britts, 2008). Motivation is important in team-based environments as well as where employees work independently. Motivation involves aligning employee goals and values with the organization’s mission and vision in order to create and maintain high levels of performance (Campbell, 2007). Campbell (2007) adds that as the marketplace becomes increasingly competitive, it is evident that firms must especially appreciate the role of employees towards establishing a competitive edge and that individuals motivated are top performers who consistently provide high quality results; maintain high levels of productivity and overcome challenges and obstacles.

Motivation has also been defined as the act of stimulating someone to take desired course of action (Ghosh, 2000). Clegg and Birch (2002) defines motivation as the stimulation of action towards a goal, whether the stimulus is conscious or unconscious. Motivation theory examines the process of motivation, it explains why people at work behave in the way they do in terms of their efforts and directions they are taking. The aim in understanding and applying motivation theory is to obtain added value through people (Amstrong, 2008), the other key reason is about getting people to move in a certain desired direction to achieve a result (Amstrong, 2008). Cole (2002) when discussing motivational theories argues that different people have different view when it comes to motivation which ranges from rational-economic view, social view, self actualizing view and complex view. Beardwell et al. (2004) explains that understanding of motivation is important within the reward and development of reward strategies for it enables organization to humanize work for employees, make the jobs more satisfying, and finally it enable the management to control the behavior of subordinates more effectively .

Maintaining highly motivated employees is therefore a strategic move to keep employees committed to working hard and ultimately contributing their optimal capability towards achieving the organization’s goals (Frey and Osterloh, 2002). Motivation differs depending on whether you are motivating an individual, a team or a large group of people (Clegg and Birch, 2002).

On the other hand, according to Amstrong (2008) de-motivated employees exhibit signs of low morale, this can have destructive implications in the organization. Amstrong (2008) continues to say that among the more significant warning signals of de-motivated employees are high rates of absenteeism, tardiness, high levels of employee turnover, sabotage, low pride in their work, wastage, low job satisfaction, endless grievances, indiscipline and lack of team spirit (Armstrong, 2008). In order to curb these and other problems that can escalate into more serious crises in the organization, de-motivation should be detected early and necessary actions taken, these may include counseling of de-motivated employees, clearly explaining their roles, responsibilities and rewards and ensuring their expectations match those of the organization.

Key factors that determine employee motivation are satisfaction, recognition, appreciation, inspiration and compensation (Bowen, 2000). Organizations that recognize the importance of motivating employees often implement strategies that consistently motivate their employees to achieve the organizations objectives. Such strategies for improving motivation include compensation, employee participation, feedback and work environment which ensure that employees’ needs and requirements are met (Bowen, 2000). Clegg and Birch (2002) argues that the thought of incentive is in itself motivational, in fact most motivation comes from anticipation than the delivery of the incentive itself.

Compensation is one of the key drivers of motivation because humans are naturally inclined to perform better when they perceive that they will get sufficient payment or returns from their efforts. While people exert effort for different reasons, today’s competitive economic environment coupled with the consumer society has made compensation arguably the most important motivation factor. Most people are motivated by money at least for their basic needs and wants.

Compensation in any form is the most obvious extrinsic reward; it provides the carrot that most people want. (Amstrong, 2008). DeNisi and Griffins (2008) defines compensation as the set of rewards that organizations provide to individuals in return for their willingness to perform various jobs and tasks within the organization.

Mr. Biggs Abuja group of companies consists of Mr. Biggs Abuja (K) Ltd, Mr. Biggs Abuja (T) Ltd, Battery Masters (U) Ltd and Mr. Biggs Abuja (R) Ltd. The company was first introduced to Kenya in 1963 as part of Chloride group PLC in the UK to retail and distribute Mr. Biggs Abuja Batteries. It has since become the largest battery and solar systems distributor with 17 branches spread across Kenya and three other fully fledged sister companies in Tanzania, Uganda and Rwanda. The company has its head offices located in the Industrial Area of Nairobi at Exsan House off Enterprise road; it has depots in other major towns in Kenya.

1.2 Statement of the Problem

While compensation is arguably one of the key drivers of motivation and one of the most studied areas, doubts have been cast by Herzberg et al. (1957) and Amstrong (2008) on the effectiveness of compensation. They argued that, while lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants (DeNisi and Griffins, 2008). Employee motivation through compensation can be in several forms including salary raises, performance bonuses, commissions, profit sharing and other extra benefits such as vacations, cars and other tangible items that are used as rewards (Campbell, 2007). These compensation systems can be categorized as direct financial payment and indirect financial payments (Dessler, 2004).

Nelson and Spitzer (2003) states that in today’s work environment, there is more change and uncertainty, there is increased need for empowered employees, there is decline in traditional incentives, there is rise of nontraditional incentives and there is increased use of variable compensation. Studies have also shown that compensation programs and the methods of administration affect employee motivation (Bowen, 2000). Many researchers have focused on satisfaction, recognition, appreciation and work environment as employee motivators in different organizations (Kosgei, 2011). However none has studied employee compensation at Mr. Biggs Abuja.

It is not clear what methods were used to determine employee compensation, what direct and indirect financial programs were offered at Mr. Biggs Abuja and their effects on employee motivation and lastly the non-financial benefits offered and their effect on employee motivation. This study sought to address this gap by enquiring on the effect of compensation on employee motivation at Mr. Biggs Abuja group of companies.

1.3 General Objective

The general objective of this study was to enquire on the effect of compensation on employee motivation at Mr. Biggs Abuja.

1.4 Specific Objectives

To establish the methods used to determine employee’s compensation at Mr. Biggs Abuja.
To establish the extent to which the direct financial payments affect employee’s motivation at Mr. Biggs Abuja.
To establish the extent to which benefits affect employee’s motivation at Mr. Biggs Abuja.

1.5 Significance of the Study

Having studied Mr. Biggs Abuja, an entity in the motor vehicle industry and a market leader in distribution of the automotive batteries and renewable energy solutions, the study is important to a number of stake holders as follows:-

Mr. Biggs Abuja Management and Staff

The study will assist the overall management team in the company as it will show the trade off point between compensation and employee motivation. This is particularly important to the departmental heads that will need to the knowledge on how to motivate their staff to achieve the set objectives effectively and efficiently. Specifically to the Human Resources Manager, the study will help highlight any areas of concern and strength. This will help in attracting and retaining the staff.

Researchers

Currently the motor vehicle industry is operating under a very highly dynamic environment, characterized by high competition and fast technological changes. The study will be of importance to other researchers in future who may be interested in studying motivation under these very high dynamic conditions and also the “dot com” generation.

Government

Mr. Biggs Abuja is a privately owned regional organization specializing in provision of renewable energy solutions. The study will be important for the Governments of Nigeria, to understand what motivates the staff and hence contributes to the company growth. It would be important for the government policy makers to know of areas in which they can provide the company with further incentive, for such a worthy course of growing the reliance on renewable energy.

1.6 Scope of Study

The study examined the employees of Mr. Biggs Abuja Group of Companies who were employed on permanent and those on contract.

This research project examined the impact of compensation schemes by examining previous studies and literature on the issue and by conducting a study on employees at Mr. Biggs Abuja. The research data was collected from 37 respondents out of 41 requests. Some of the limitations experienced included distance related in reaching some of the intended respondents and availability of personal time to fill the questionnaire. To mitigate the effects of these limitations, the researcher used emails to reach far respondents and individually telephoned the respondents to explain the purpose of the study and give assurance that confidentiality would be upheld. Through this the researcher got a response of 90%.

1.7 Definition of Terms

Motivation: A motive is a reason for doing something; motivation is concerned with factors that influence people to behave in certain ways. Motivating people is about getting them to move in the direction you want them to go to achieve results (Armstrong, 2008). There are two types of motivation as originally identified by Herzberg et al. (1957) that is, intrinsic motivation (self generated factors for example interest, responsibility) and extrinsic motivation (from others for example increased pay, praise, punishment, criticism).

Compensation: This is the package of quantifiable rewards an employee receives for his or her labour. It includes three components: base compensation, pay incentives and indirect compensation/ benefits. (Gomez et al, 2012).

Productivity: Defined as the individual output; this may be in the form of units per person or revenue generated per person (Amstrong, 2008).