Effect Of Motivation On The Productivity Of Employees In The Nigerian Insurance Industry

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Effect Of Motivation On The Productivity Of Employees In The Nigerian Insurance Industry


Abstract


This study was carried out on the effect of motivation on the productivity of employees of insurance companies using AIICO Insurance Nig Plc. as case study. To achieve this 6 research objectives were formulated. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of all the staff of AIICO Insurance Lagos State. In determining the sample size, the researcher conveniently selected 285 respondents while 250 respondents were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage, while the hypotheses were tested using Pearson Correlation Statistical Tool SPSS v23. The result of the findings reveals that motivation has effect on the productivity of employees of insurance companies; reward system has effect on employee performance; job incentives correlates with commitment of workers to the organisations as it; increases employees productivity, creates a culture of high performance by employees, motivates employees to go extra miles, encourages team work/collaboration among staff and increases employees turnover; motivation has effect on organizational profitability; the participation of employees in decision making gives the employees the privilege to voice their opinion, bounds the relationship among employees and employers, enables the knowledge of the employees to count, resolves conflicts and strike action by employees and increases employees turnover; there is a significant relationship between motivation and productivity of employees in insurance companies, there is a significant relationship between reward system and employee performance in AIICO Insurance Nig Plc. and there is a significant relationship between job incentives and commitment in AIICO Insurance Nig. PLc. The study recommends that management should be concerned with the welfare of the workers and their families. This will give the workers a sense of belonging and being appreciated will make them to be focused and completely committed to their work, trust and respect should be accorded staff to create a harmonious relationship amongst them to foster collaboration; staff development to enhance performance and promote self fulfilment and actualisation should be encouraged as a matter of deliberate policy management should do well to adopt on the spot praise as a medium for recognition and appreciation for hard work for promptness equal effectiveness, management should set career advancement paths within the organisation to promote from within rather look out for talent outside; job security should be of top priority to management to ensure the retention of their hardworking and experience employees.


Table of Content


  • TITLE PAGE
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research Question
  • 1.5 Research Hypotheses
  • 1.6 Significance of the Study
  • 1.7 Limitation of the Study
  • 1.8 Scope of the study
  • 1.9 Definition of Terms

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Chapter Summary

Chapter Three:

Research Methodology

  • 3.1 Area of Study
  • 3.2 Research Design
  • 3.3 Population of the Study
  • 3.4 Sample Size Determination
  • 3.5 Sample Size Selection Technique and Procedure
  • 3.6 Research Instrument And Administration
  • 3.7 Method of Data Collection
  • 3.8 Method of Data Analysis
  • 3.9 Validity of the Study
  • 3.10 Reliability of the Study
  • 3.11 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2. Test of Hypothesis

Chapter Five:

Summary Conclusion and Recommendation

  • 5.0 Summary
  • 5.1 Conclusion
  • 5.2 Recommendation
  • REFERENCES
  • APPENDIX 

Chapter One


Introduction

1.1 Background to the Study:

The role of motivation on the productivity of employees in any organization cannot be overemphasized. Now, research on the subject of motivation has advanced greatly in western countries; this cannot be said for developing economies like Nigeria (Ituma et al, 2011).

The goal of employee motivation is to achieve organizations goals through employee creativity. Since one of the organization’s goals is customer satisfaction, it is important that in this era of globalization, where intense competition is rife, there is need to motivate employees in order to be able to respond quickly to changes in the business environment.

Motivation is a basic psychological process along with perception, personality, attitudes, and learning (Tella et al, 2007; Aworemi et al, 2011); Motivating is the management process of influencing behaviour based on the knowledge of what make people encouraged to work. Effective motivation is way of stimulating people such that they become satisfied with and committed to their jobs (Inyang, 2011).

It is however agued that, insurance service being an intangible, heterogeneous, perishable, service product, produced and consumed simultaneously, only motivated employees can seek to differentiate themselves from their rivals by treating customers in the way they would want to be treated, thereby attaining the quality service that enhance organizational performance.

To many customers and potential insurance consumers in Nigeria, whom insurance service is a technical product, the first contact persons (employees) represent the insurance company. If these employees are able and satisfactorily meet their needs, they are not only satisfied, but would become emotionally attached to the company. Insurance is a variable service product, where customers are involved in the production and consumption of the service. Imagine frontline employees in Nigerian insurance industry, such as sales representatives, underwriters, claim handlers, being motivated to use their initiative in decisions regarding work schedules, terms and conditions of cover, risk exceptions and exclusions, underwriting requirements and claim settlement, there would be increased trust, customer-employee positive relationship, customer satisfaction and increased productivity.

Motivation is an art targeted to getting people work willingly, and an art of inducing one to behave in a particular manner to achieve a task. Mee-Edoiye and Andawei (2002) viewed motivation as a human engineering approach being triggered by the individual needs. Flippo (1982) defined motivation as a psychological process initiated by the emergence of needs involving a goal directed action and behavior aimed at satisfying a particular desire. It is the inducement given to workers for higher output. Motivated behaviour has three basic characteristics:

  1. It is sustained – it is maintained for a long time until satisfied.
  2. It is goal-directed – it seeks to achieve an objective.
  3. It results from a felt need – an urge directed towards a need.

Employee productivity according to Akindele (2003) is defined as labour output per day (man-day). This is often reduced by delayed, unclear or inadequate instructions, provision of poor tools and equipment, unbalanced work gangs, use of working method, lack of incentives, and failure to delegate authority from senior to lower level supervisors (Heap 1987). The productivity of individual employee, which in turn affects the productivity of a company, is a very important parameter to watch as it measures an insurance company’s competitive power. It is an indicator of a firm’s profit margin, a measure of the firm’s survival in business, a yardstick for remuneration of employees, and a means of recognition of hard work. It against this backdrop that this research study will examine the “effect of Motivation on the Productivity of Employee of Insurance Companies” with a special reference to AIICO Insurance Company Nigeria Plc.


1.2 Statement of the Problem:

There are divergent opinions on employee attitude towards motivation and the impact on employee performance. In the past, employers of labour have been complaining that employees perform their work efficiently when they are newly employed but with time, their efficiency and productivity decreases. Based on literature review, employees have attributed decrease in efficiency and productivity to the fact that employers do not provide adequate motivation to enable them put in their best.

Productivity suffers a lag if motivations are poor or inappropriately used. The use of various incentives to motivate staff should be adequate and appropriate to enable employees put in their best, in order to survive in a profitable way in the highly challenging and competitive Nigerian insurance market.

Among the factors of production the human resource constitutes the biggest challenge because unlike other inputs employee management calls for accomplished handling of thoughts, feelings and emotions to ensure highest productivity. Sometimes employers in the insurance industry in Nigeria fail to implement a tactical tool built on motivation in accomplishing their mission and vision. Even when they understand the significance of motivation, they lack the skill and knowledge to provide a work environment that fosters employee motivation.

It is in the view of this, that this research is being carried out to examine the “Effect of Motivation on the Productivity of Employees of Insurance Companies” with a special reference to AIICO Insurance Nig Plc.


1.3 Objectives of the Study:

The major objective of this study is to examine the effect of Motivation on the Productivity of Employees of Insurance Companies. While other specific objectives include;

  1. To assess the effect of motivation on the productivity of employees of insurance companies.
  2. To examine the effect of reward system on employee performance.
  3. To determine the effect of job incentives on the commitment of workers to their organisations.
  4. To examine the relationship between motivation and organizational profitability.
  5. To find out the effect of employees participation in decision making on organizational efficiency.
  6. To provide plausible recommendations on the effect of motivation on the productivity of employees of insurance companies.

1.4 Research Questions:

The undertaking of this research project will beam a searchlight on the following research questions;

  1. Does motivation has effect on the productivity of employees of insurance companies?
  2. Does reward system have any effect on employee performance?
  3. What is the relationship between job incentives and the commitment of workers to their organisations?
  4. Does motivation has effect on organizational profitability?
  5. What is the effect of employees participation in decision making on organizational efficiency?

1.5 Research Hypotheses:

The researcher intends to test the following hypotheses at 0.05 level of significance;

Hypothesis One:
  • Ho; There is no significant relationship between motivation and productivity of employees in insurance companies.
  • Hi; There is a significant relationship between motivation and productivity of employees in insurance companies.
Hypothesis Two:
  • Ho; There is no significant relationship between reward system and employee performance in AIICO Insurance Nig Plc.
  • Hi; There is a significant relationship between reward system and employee performance in AIICO Insurance Nig Plc.
Hypothesis Three:
  • Ho; There is no significant relationship between job incentives and commitment in AIICO Insurance Nig. PLC.
  • Hi; There is a significant relationship between job incentives and commitment in AIICO Insurance Nig. PLC.

1.6 Scope of the Study

The study will focus on the interaction of employee motivation and productivity. The study will be carried out in AIICO Insurance Plc, Ikeja, Lagos State, Nigeria. The choice of AIICO Insurance plc, Ikeja, Lagos State is based on the number of employee of the organization being one of the highest among insurance companies in the nation. The headquarters of the organization is also located in Lagos, hence, the choice of Lagos State.


1.8 Significance of the Study

This study will help policy formulation. Outcome of the study will enlighten the government and policy makers on how employee motivation can be used as a tool fpr improving organizational productivity in the insurance sector.
Insurance industry will improve their services through the outcome of this study. This study will be relevant to the sector as it will make stakeholders to know the needs of employees in terms of motivation and also to know how effective their current motivation techniques are. Furthermore, the study results will also enable the industry to upgrade in their motivation strategy.

This study will also be significant to academics and scholars It will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.


1.9 Definition of Operational Terms

Employee Commitment:

An employee’s positive emotional attachment to the organization (Bhatti & Qureshi, 2007)

Employee Engagement:

It is an employee who is fully absorbed by and enthusiastic about their work and so takes positive action to further the organization’s reputation and interests.

Employee Motivation:

Employee motivation is the level of energy, commitment, and creativity that a company’s workers bring to their jobs (Muogbo, 2017).

Employee Participation:

Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders (Bhatti & Qureshi, 2007)..

Employment Performance:

Employee Performance Management is about aligning the organisational objectives with the employees’ agreed measures, skills, competency requirements, development plans and the delivery of results (Ezulike, 2011).

Job Security:

It is an assurance that an individual will keep his or her job without the risk of becoming unemployed

Salary:

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis (Ezulike, 2011).

Work Relationship:

A relationship with a colleague, boss or employee (Cummins, 2010)

Work-Life Balance:

Work–life balance is a concept including the proper prioritization between work (career and ambition) and lifestyle (health, pleasure, leisure, family) (Cummins, 2010).

Work Quality:

Work quality is the value of work delivered by an individual, team or organization (Cummins, 2010)


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the effect of motivation on the productivity of employees of insurance companies using AIICO Insurance Nig Plc. as case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine the effect of motivation on the productivity of employees of insurance companies using AIICO Insurance Nig Plc. The study is was specifically focused on assessing the effect of motivation on the productivity of employees of insurance companies, examining the effect of reward system on employee performance, determining the effect of job incentives on the commitment of workers to their organisations, examining the relationship between motivation and organizational profitability, finding out the effect of employees participation in decision making on organizational efficiency and providing plausible recommendations on the effect of motivation on the productivity of employees of insurance companies.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 250 responses were validated from the enrolled participants where all respondent are staff of AIICO Insurance Lagos State.


5.3 Conclusions

With regard to the findings of the study, the following conclusions emerged.

  1. Motivation has effect on the productivity of employees of insurance companies.
  2. Reward system has effect on employee performance.
  3. Job incentives correlates with commitment of workers to the organisations as it; increases employees productivity, creates a culture of high performance by employees, motivates employees to go extra miles, encourages team work/collaboration among staff and increases employees turnover
  4. Motivation has effect on organizational profitability.
  5. The participation of employees in decision making gives the employees the privilege to voice their opinion, bounds the relationship among employees and employers, enables the knowledge of the employees to count, resolves conflicts and strike action by employees and increases employees turnover.
  6. There is a significant relationship between motivation and productivity of employees in insurance companies.
  7. There is a significant relationship between reward system and employee performance in AIICO Insurance Nig Plc.
  8. There is a significant relationship between job incentives and commitment in AIICO Insurance Nig. PLC.

5.4 Recommendation

Based on the findings the researcher recommends that;

  1. Management should be concerned with the welfare of the workers and their families. This will give the workers a sense of belonging and being appreciated will make them to be focused and completely committed to their work.
  2. Trust and respect should be accorded staff to create a harmonious relationship amongst them to foster collaboration.
  3. Staff development to enhance performance and promote self fulfilment and actualisation should be encouraged as a matter of deliberate policy.
  4. Management should do well to adopt on the spot praise as a medium for recognition and appreciation for hard work for promptness equal effectiveness.
  5. Management should setcareer advancement paths within the organisation to promote from within rather look out for talent outside. •
  6. Job security should be of top priority to management to ensure the retention of their hardworking and experience employees.
  7. There should be good interpersonal relationship between management and staff to facilitate communication and the lending of assistance to colleagues who may need on.
  8. Management should monitor closely the attitude, lifestyle and leadership qualities of employees in the organisation who for and can handle additional responsibilities be encouraged to promote increased performance and efficiency. In doing so should identify who they are and match responsibilities to their strengths and desires.
  9. The management should do everything within their capacity to create a better good working environment and conducive atmosphere that can promote efficiency and enhance performance.

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