Effects Of Motivation On Organizational Performance

Project and Seminar Material for Business Administration and Management BAM

Abstract

This study is aimed at determining the effect of motivation on organizational performance. (A case study of Nigeria Bottling Company). The purpose here is to investigate and identify factors responsible for the current state of affairs and seek to find practical solution for lack of staff motivation and job performance.

The research design is survey research design comprising of opinions, impressions and perceptions of the respondents. The sampling technique was simple random sampling and proportionate stratified random sampling. In sampling opinion to collect data, the questionnaire was used.

In all, a population of 268 staff of NBC comprising, top management middle management and junior staff were administered the questionnaire. Simple percentage and tables were used to analyze the data collected. The result from the test of the hypothesis indicated that Commensurate salaries and allowance paid to employee‟s of Nigeria Bottling Company would motivated them toward higher job performance.

Promotion of employees as at when due will motivate them toward higher job performance.

The researcher recommends that management of Nigeria Bottling Company should try as much as possible to increase satisfaction of the employees who are not satisfied with salaries they are given to increase their inputs in the organization. The effects of this dissatisfaction can hinder the job performance of the organization.

Chapter One

Introduction

1.1 Background to the Study

Motivation is defined as all internal and external driving forces that makes the individual to perform an activity, what determines the limits and forms of activity and which give it its activities oriented towards achieving certain goals [Duică, 2008: 142]. The question is whether the motivation really has an influence on people’s performance at work. Research shows that indeed there is a relationship between motivation and performance [Deci & Gagne, 2005].

Employees make up the workforce of any organization as such they are an integral part of the organization. Aluko (2014), stated that an organization is only as good as the workforce that runs the organization. This is to say that when employees are motivated chances are that their morale would be high as such performance and productivity levels would increase thereby to a large extent boosting overall organizational performance level. In order to achieve high levels of productivity as such boost organizational performance or productivity, managers therefore need to continually seek ways of ensuring that their employees stay motivated. This is because a lack of employee motivation leads to reduced productivity which is harmful to organizational performance and continuous success.

Jennifer and George (2006) defined employee productivity as the level of effort put forth by the workforce of an organization towards achieving organizational goals and objectives. There are several ways by which a workforce can be motivated so as to enhance organizational productivity. George and Jones (2012) states that motivation can be categorized into two classes namely intrinsic and extrinsic. Intrinsic motivation arises from an employee’s internal cravings to execute a task out of self-interest rather than a need or wish for some external reward. External motivation is the type of motivation that arises when an employee is compelled to act in a specific way either as a result of that employee’s desires for external rewards or to avoid punishment.

The success or failure of any organization depends on its employee that how well they were motivated towards their work and with how dedication they are performing. Motivation plays a fundamental role in enhancing the employee productivity and performance. Employee motivation is directly linked to employee commitment, productivity and business profits. An organization should know about their employees that who are its great workers, who need training. Every employee has its own motivational factors that motivate them to perform their work effectively and efficiently. Some employees are motivated by recognition and some are by rewards. Organizations should know the needs of their employees. Motivated employees are productive, happy, committed and satisfied to their jobs. Ouchi (2004) organizations would be more profitable, effective and efficient when its workers are trust over them and this will lead to productivity, high level of involvement. Karen Oman, human beings are reciprocal. If you treat your workers well they will treat you well, if u treat them badly they will treat you bad. This study is designed at looking into the importance of motivation in the management of people at work, no system moves smoothly without it, and no organization achieve its objective without motivating its human resources. Jishi (2009) motivated employees means staff retention and loyalty which in short run will give growth of business. This research however will investigate the effect of motivation on organization using the Nigeria Bottling Company as a case study.

1.2 Statement of the Problem

Business organizations in Nigeria especially manufacturing industries failed to recognize the importance of motivation as a concept be it intrinsic such as employee well-being, relationship with co-workers, relationship with managers, organizational policies etc. or extrinsic such as training and career development, good working conditions, compensation, promotion amongst other factors that enhance or improve employee performance as well as organizational productivity levels and it has cause a major managerial concerns for decades as employee performance is reducing which has been acknowledged as a subject of growing concern in the aspect of business and management research (Akerele, 2001). Although a lot of factors may also be responsible or even cause a decline in productivity such as poor strategic and structural changes in decisions and executions, lack of infrastructure, leadership styles and organizational culture amongst others. Recent research connects the concept of workforce motivation and productivity has laid an emphasis on employee perspective, needs and expectations as factors affecting their performance and productivity levels respectively. Most of the manufacturing industries care more about profit maximization which cannot be possible because unless the employees are willing to work and their performance increased the organization cannot maximize any profit, therefore this research intend to investigates the effect of motivation on organization performance using Nigeria Bottling Company (NBC) as a case study.

1.3 Research Questions

What motivational factors affect employee’s job performance at Nigeria Bottling Company?
What is the relationship between employee’s motivation and job performance at Nigeria Bottling Company?
What is the current level of employee’s motivation at Nigeria Bottling Company?

1.4 Objectives of the Study

The General Objective of the study is to examine the effect of motivation on organization performance in the case of Nigeria Bottling Company. In addition to the main objective, the study is carried out to achieve the following specific objectives:

To find out the motivational factors that affect employee performance in Nigeria Bottling Company?
To determine the relationship between employee motivation and performance?
To find out the current employees’ level of motivation?

1.6 Significance of the Study

This research will be useful in different way, firstly this research will be expose business owners, managers and organizations to the concept of motivation and its effect on productivity. It also gives an insight to managers and business owners on the importance of knowing their employees and ensuring adequate motivation in their organizations, this research will also open the eyes of the government at different levels so as to formulate policies that would enhance the stability, growth and development of businesses throughout the region in matters concerning organizational productivity by seeking ways ensure that employees are adequately motivated in their various organizations thereby increasing overall productivity and performance levels.

And lastly this research will serve as a guide to other researchers that will embark on the same research and also serve as a reference point for other research.

1.7 Scope of the Study

This research will be conducted in Nigeria Bottling Company in Ikeja, Lagos state, therefore the research will be examines employee motivation and its resulting effects on the organization’s performance.

1.8 Delimitation of the Study

Finance and lack of time due to other academic works is a major challenge in the course of this research.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Summary of Major Findings

The study was carried out solely to identify the effect of motivation on employees’ job performance in Nigeria Bottling Company. Accordingly, the major findings were derived from data discussion, analysis and interpretations as follows.
The study clearly depicted that the working environment of the company is conducive and suitable. Majority of the employee’s agreed on its conduciveness, suitability but regarding with providing the materials and equipment’s that are need for the job, the company is very poor in supplying those materials timely 48.11% of employees were not satisfied with the availability of materials.
Almost all the respondents believe that the reward and incentive system is not based on performance and they are highly discouraged by the system. This implies that there is biased system in giving rewards to employees. Majority of the employees 42.2% believed that rewards are not given timely.
When employees get recognized and appreciated, they do their best to prove the skill, talents and abilities they have However, All employees’ replied that there is no recognition and appreciation from their boss.
The majority (81.80%) of employees disagreed that there is unsatisfactory relationship among employees and managers of the company, and also the relationship between employees is also discouraging, 34% of them claim that the relationship is poor. 52.6 % of the respondents indicated that there is no complaint handling mechanism in the company.
30.6 % of respondents strongly agreed that the trainings given in the company improved their skills, knowledge, and encourage them to stay at the company but regarding with the time interval of the training program majority of the respondents (36.9%) take only one training program over the past five years.
45.9% of respondents strongly disagreed that the financial aspects like bonus, allowance are not satisfying. This implies when individuals are motivated there effort towards the job will decrease.
98% of employees believed that the promotion system is not fair that makes the employee’s demotivated.
The majority of respondents claim that the base of promotion in the company is based on the performance of the employee’s. Concerning how the evaluation is conducted, the majority of the respondents are evaluated on semi-annually bases. Regarding with feedback time employees replied that they never get there feedback at all. The study also revealed that the concern of management towards communicating performance standards of the company is very poor.
The results of the descriptive statistical analysis also indicated that, employees were not motivated by the motivational variables. Job security, salary, recognition, management communication style, reward and promotion of the company. However, employees were less motivated with training and working environment.

5.2 Conclusions

Based on the findings, working environment is positively related to employee performance, the researcher conclude that there in fact exists positive relationship between the two. This demonstrates that when working environment is not conducive employee’s motivation to perform the job will reduce. There is a negative and insignificant relationship between Job Security and employee Performance. Employees are not certain that job security contributed to their performance.

There is positive and significant relationship between salary and employee performance. However employees were not motivated by the attractiveness of the salary because of these reason there is high turnover of bus drivers and fare collectors to other transport organizations. The researcher concluded that since the reward and incentive system of the company is not motivating to employees, the employees were forced to search a better opportunity so there is manpower turnover in the company especially bus drivers. Additionally, the reward is not given on time; this negatively affected the performance of the employees. Employees need and want to be appreciated for the work that they do. If they do not feel managers or others are recognizing their contributions, then employees become dissatisfied and unmotivated. Employees will normally put more effort than expected if someone will notice their effort. An under-appreciated employee may do less work. Regarding this motivational variable the company employee’s are not motivated and feel like there is no recognition and appreciation for effective job performance.

Management communication style, it’s not open door style and employees have no chance to easily communicate with the management. Majority of the peoples have no chance to complain and they don’t have the chance to participate in decision making also. There is also unsatisfactory relationship between employees each other. the company is weak in providing adequate training for its employees who have direct interaction with customers and the training is given only on one time basis. For over the past five years, majority of the employees attended only one training program.

Majority of the employees did not agree with the promotion system of the company. Evaluation is done based on performance of the employees, however majority of them indicated it’s based on relationship among employees each other. Regarding with evaluation feedback, the company is not quick to respond. The performance standard is not clearly known by the employees too. The correlation result of the study showed that among the eight motivational factors, management communication style highly affects the performance of employees. Next to that working environment, recognition, reward, promotion, salary, training and job security affect the performance of the employees. The descriptive result of the study indicates that, employees were not motivated with the motivational factors especially job security and salary has the lowest mean value. In conclusion, motivated employees not only influence their work performance but also the whole organization performance and business productivity.

5.3 Recommendations

Based on the literature review, interviews and analysis done and the discussion it is clear that employees are not motivated and hence are not performing well which affecting business performance and productivity.

Management communication motivational factor was considered as one of the most important factors influencing employee performance. However employee of the company were found less motivated in terms of this motivational factor. the company can improve the communication by conducting meetings, performance reviews and feedback on organization performance. Communication can be improved through performance management. Performance Management is not only for measurement of performance but provides feedback to the employees. Recognitions either verbally or formally will enhance the self-esteem of the employee. Therefore, Managers should work hard in maintaining the level of satisfaction of employees by using recognition and mechanisms’ to motivate employees.
Training programmes based on training needs assessment should be implemented at Nigeria Bottling Company.

Human resource management should include elements of employee motivation and employee training and development. Employee training for employees will both equip them and be an excellent source of employee motivation. Salaries should be determined in accordance with the company job grades and salary scale. the company salary structure shall be designed to provide competitive remuneration by market standard and also offer incentive to grow to a higher step.

Every employee shall have the right to air its grievance when treated unfairly by the administration process. the company should provide the employee a way to express its feelings towards the job. For instance suggestion box should be available for employees to express what they felt. the company should focus on different financial packages and allowances for it’s employees. Allowances and various benefits of the company should be given to employees and should be revised.
The company shall provide the required financial, human, material, time and facility resources for the proper implementation of its organizational goals. Promotion system of the company should be given great attention. When promotions are available in the company, everyone should have equal chance of participating. Finally, the management should examine what really motivates its staff in order to enhance employees’ performance and effectiveness.

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