Motivation A Success Factor In Organization

Project and Seminar Material for Business Administration and Management BAM

Abstract

The purpose of this study is to assess motivation as being a success factor in organizations. The study utilized a multiple data collection techniques whilst considering their applicability is relation to: the predictable quality of the collected data, estimated outlay, predicted return rates, expected level of measurement errors, and duration of the data collection method (Kothari, 2008). Thirty (30) questionnaires were distributed to groups of managers to respond. The findings revealed that the two items that demotivate employees at VRM in both occupations, i.e. managers and ordinary employees are: I from time to time sense my job is worthless and the management involves employee in decisions making. It is concluded that appreciation and recognition of employees and employees’ task fulfillment stimulated them towards working with more energy and dedication to the organization. This study has shown that there is some success in the use of intrinsic motivators and extrinsic motivators to improve performance at the VRM. Also, the findings would assist in the development of effective management strategies and policies that can help in improving the administration and realization of organizational goals.

Chapter One

1.0 Introduction

Most organization ignore this drive that motivation is the success factor that we send employees thinking more of organization interest and less of individual interest. Countries like Japan, America, Russia, China, Europe are known for their technological advancement. The secret behind the success of these developed countries is that they have developed a culture of motivating their labour force. It is worthy to mention that a motivated worker is the most productive workers. The worker who sometimes equals or excel in any standard his boss sets or contemplates setting for him. Herzberge defined motivation in a book jointly written by Williams F. Dawling and Leonard R. Sayle titled “How motivates” (1971) as: “An inner desire to make an effort.

This definition implies that there is a reagent that acts as a catalyst that gears or gingers up the effort that make an employee go the extra mile to achieve what he/she would ordinarily not achieve under normal circumstances, the term “motivation” derives from the Latin movere “to move” it is virtually impossible to determine a person’s motivation until that person behaves or literally move. Robert Kreitner in the fifth edition of his book titled “management” (1990) defined motivation as “the psychological process that gives behaviour purpose and direction.

By applying this process, managers attempt to get individuals to willingly pursue organizational objectives. The individual workers behave in a certain manner or toward a certain direction informed by a drive within them and this give them the urge to aspire to satisfy that objective.

The resultant effect of motivation is the attainment of higher productivity by organization (both private and public)

In essence motivation is a function of performance, which eventually leads to sustain the success of organization. A working definition (Cole 1995) of motivation is as follows: “Motivation is the term used to describe those process, both instructive and rations by which people seek to satisfy the basic drives, perceived needs and personal goals which trigger human behaviour”.

It becomes pertinent for all organization to know that motivation is a success factor in order to achieve higher performance.

1.1 Background of the Study

The aims and objectives of every organization is to be successful, and for an organization to be successful, its employees must b properly informed of what is expected of them, how to go about achieving the result; creating enabling environment for them to operate, availability of facilities and material guaranteed job security adequate compensation for hardworking workers, it is globally accepted that motivation plays a fundamental role in enhancing workers performance behaviours. Motivation comes in different forms, since human beings are unpredictable and their needs insatiable, because what could serve as motivation to one worker may not necessary server as motivation to the other. However, the following factors could serve as motivation factors, as theorized by Abraham Maslow.

Job security
Job satisfaction
Self esteem
Self actualization
Spirit of belonging (needs)
Rewards for exceptional performance

Below is a diagrammatic representation of these motivation factors.

High needs emerge as lower needs are fulfilled.

Data from diagram from A. H. Maslow.

Since motivation comes in divert forms, every organization (private or public) has its pattern of motivating its employees to stimulate their moral toward achieving a successful performance.

However, since motivation has been unverically accepted as an inducement to employee to strive to achieve extra ordinary or unique level of performance which they could not ordinarily achieve this worker will endeavour to unearth or unravel those motivational tools available for employers to labour in order to aid them in boosting their organizational performance. In view of the security and exorbitant cost of accommodation in the cosmopolitan cities like Lagos, most employees would feel highly motivated if provided with accommodation at a reasonable cost. A case in point is the centre for management development which has provided accommodation for its staff on essential services and affordable cost with the organization’s premises. There is no doubt that some of them may have gotten offers from somewhere else than what they are receiving from the centre, but for the conducive accommodation they enjoy from the centre, they would prefer the meager salary to receiving the fat one elsewhere and pay so much on rent inside the city, this is a pure case of lean liberty being better than fat salary.

Some organizations choose to motivate their employees by either providing them with housing loans, vehicle or official vehicles. In the late 70s and early 80s some notable companies (mostly in the oil industries) adopted this mode of motivation, by providing most of their senior workers with car loans. In the 60s and 70s all graduates from the universities had ready jobs, car loans and accommodation waiting for them. This form of inducement does not only encourage workers to be dedicated to an organization, but also ensures employees punctuality to work, hence facilitating higher productivity in the organization. Provision of free medical facilities has been discovered to have played a functional role in having some employees fee motivated when their employer consider their health their prime concern. A healthy organization is a productive organization. Monetary motivation of course play a greater role in motivating employees to give out their best. This could come in the form of promotion, transfer, job enlargement; job enrichment, benefits and training involving outside station. With the advent of the present economic downturn, any form of monetary motivation will be very much appreciated by a large number of employees and this will enhance the success of the organization. The reality of monetary motivation cannot be overemphasized as labour union have consistently being at logger-head with the Federal Government over civil servant poor conditions of service, hence the inevitable need for appropriate upward review of wages and salary labour union have always felt unhappy that civil servants in a country of abundance financial resources are not commensurately compensated. This has informed the persistent demand for salary reviews in order not only to caution the economic effect, but to adequately compensate them (employee), which in return will make them to improve their work performance, some organization like Centre for Management Development (CMD) for instance, has a culture of motivating its workers by way of distributing rice, chicken and turkeys to staff at the end of every year in addition to organizing end of year party for the staff children where they are presented with some token souvenirs, the centre also gives long service awards for its workers, where some of them take home gift items such as television sets, sets of cooking utensils; depending on the length of services. These incentives serve as motivational tonic and the trigger employees, and serves as a success factor in the organization by improve performance.

1.2 Statement of Problem

In most organization, with particular reference to the public sector, you find out that workers hardly report to their duty posts as and when due, inspite of Management’s threat; and when one inquires further why they exhibit such laxity or lack a disical attitude to their duties; they will simply tell you that the work is not their “father’s work” and if they drop dead today, someone else would do the work most of the workers in both sectors of the economy are involved in one form of trading or the other within and outside the organization which neglects some sections of the civil service regulation. A visit to some public organization during working hours will reveal a clear case of either truancy or absenteeism as most workers only report to sign attendance register after which they go out to pursue their personal businesses, thereby having divided loyalty with their official function.

1.3 General Objective of the Study

The general objective of the study is to assess motivation as being a success factor in organizations.

1.3.1 Specific Objective

To examine how work itself and the environment can motivate an employee and hence organization performance.
To find out the impact of employee recognition and empowerment motivation on organization performance.
To investigate the outcome of employee pay and benefits on organization performance.

1.4 General Research Question

What is the impact of motivation on work performance in private organizations in Nigeria?

1.4.1 Specific Questions

Can work itself and working environment motivate an employee, hence improve organizational performance?
Do recognition and empowering employees have an effect on organizational performance?
What is the impact of pay and benefits to employees on organization performance?

1.5 Significance of the Study

The study would be of enormous benefit to the ANAMMCO Nigerian Limited, managers and its Board of directors. Bodies and other stakeholders in that it will emphasize how the notion of incentive and job performance are appreciated and understood and the need for all to pay concentration to a variety of enthusiastic issues for employees.

Furthermore, the study will bring to light the different forms of motivation which will inform the design of appropriate measures aimed at bringing out the best in employees with regard to job performance. Again, the factors leading to high performance as well as causes of low performance will inform management and policy makers in their decision making. Administrators will be helped through this study to be able to use motivation not just for the sake of it, but to know how, when and what type of motivation to use so as to achieve maximum performance of staff.

Also, the findings would assist in the development of effective management strategies and policies that can help in improving the administration and realization of organizational goals. The findings of this study have to prompt ideas that can guide to the provision of excellence service delivery at VRM.

1.6 Limitation of the Study

There is a limitation in our empirical study that might limit the external validity of our results and findings cannot be generalized due to the fact of purposeful sampling. The survey population is not sufficient to draw precise conclusions for other private sector organizations leave alone risk venture organizations in Nigeria. As, population in the sample comes from a specific type of industry (i.e. risk management industry), it may not be truly representative of the population in other industries and therefore would be problematic to generalize the results of the study. However, the study is relevant in understanding the situation of private sector organizations in Nigeria with regards to the effectiveness of motivational factors.

1.7 Definition of Terms

1. Success Factor:

Success factor can be defined as “a drive that give the urge to aspire to satisfy that objective, it is also a measure of how ell resources are brought together in organization and utilized for accomplishing a set of results level of performance with the last expenditure or resources” success factor is a combination of effectiveness and efficiency.

Effectiveness related to performance.

Success index = output obtained
Input expenditure = Performance achieve
Resources Consume = Effectiveness

Efficiency

2. Motivation:

Motivation is defined as goals that are sought for an ability to work towards an objective. It is an action that springs up from a result oriented.

3. Performance:

The outcome of executing and assigned task or job to satisfy a set standard.

4. Supervisor:

Head of an assigned group of people who issue directives to the group and ensures that the outcome of the work is in conformity with the expected result.

5. Employer:

A person who employ the services of an employee on agreed terms.

6. Employee:

A person employed to carry out a particular task or job.

1.8 Organization of the Research Report

The research report is arranged in five chapters. The first chapter gives the historical setting of the study, statement of the problem, research goals, study questions, significance of the research, scope of the research and organization of the study. Chapter two provide theoretical definitions of key terms, conjectural and experiential literature review.
It also added the research gap and abstract framework. Chapter three handles research methodology, research design, study area, population as well as the size of the sample and its techniques, types of data, techniques of data collection, data processing and analysis, variables to be measured, and ethical issues. Chapter four dealt with discussion of the result findings. Lastly, chapter five is summary of the findings and their policy implications on government, private sector and Human Resource professionals, conclusion, recommendations, limitation of the study and suggested areas for further studies and chapter summary.

Chapter Five

Conclusion and Recommendation

5.1 Chapter Overview

Motivation tends to be a determining factor of an organization to realize its mission, vision and uphold its values from theory to reality. A research study like this one is vehicle for managers and others to identify areas for improvement of an organization.

This research study, have identified and establish position from which private organization could put in place improvement mechanisms and plan to act upon. The information realized from the study will give assistance in determining opportunities for organizational improvement. Category wise, two statements of the study got higher mean scores of motivation level.

These statements show that, in general, employees at VRM are satisfied with the statement “work itself and environment, and empowerment and recognition. In contrary, workers felt 70 percent satisfaction on 15 statements, and also the overall motivation construct. The findings also enumerated various opportunities for VRM and other private organizations to work on plans of action after identifying specific targets

5.2 Conclusion by Objectives

Recognition and empowerment are important drivers in spearheading worker motivation in an effort of realizing organizational goals or tasks. Generally, an employee is not aggravated by big issues, but by small ones. Things like appreciation for what’s done, giving them, chances of participation in decision making, providing satisfaction internally with the job, providing an appropriate organizational environment and alike, are issues that incentivize an employee. With these enthusiasms and drive employee task enhancement increases.

The relationship between motivation and work performance has been identified by several scholars. For, instance Kalimullah (2010) (0.65), Rizwan (2010) (r=0.13, p<0.05), Reena (2009) (r=0.92, p<0.01) and Salman (2010) (0.251).

Thus, it therefore, one can conclude that employee recognition and appreciation play an important part in enhancing individual and work performance satisfaction, which prompt employee dedication.

The same results of positivity between empowerment and motivation, that drive fulfillment of the firm’s task or goals was also defined by Reena (2009), Mani (2010) and Smith (2001).

5.2.1 Objective on Work itself and Environment

The research study has revealed that, in general motivation of employees at VRM is good for both categories of overall, managers and ordinary employees. The means score for these constructs are 32.55, 39.63 and 33.45 respectively. They are higher than theoretical mean scores of the construct of 27.00. The enhanced motivation has resulted in better work performance.

The study shows that the two items that demotivate employees at VRM in both occupations, i.e. managers and ordinary employees are “I from time to time sense my job is worthless and the management involves employee in decisions making. ”This, therefore pose a setback to good work performance.

On the other hand, managers’ and ordinary employees, their greatest motivators were on statements “I feel a sense of superiority in doing my job; transport support is available here, we have an enjoyable working environment here and there are clear job requirements here” and “I like to undertake the thing I perform at work, I experience a sense of superiority in doing my job, and there is overall job security here respectively.

5.2.2 Objective on Empowerment and Recognition

Recognition and empowerment play an essential part in enhancing motivation towards organizational tasks. By appreciating the employees for their work done and giving them participation in decision making, internal satisfies them with their job, organization and organizational environment. Thus, their enthusiasm and motivation towards accomplishment of tasks increases.

Employee recognition and motivation towards organizational tasks have a positive relationship between them as exhibited by the empirical studies conducted by Kalimullah(2010) (0.65), Rizwan (2010) (r=0.13,p<0.05), Reena (2009) (r=0.92, p<0.01) and Salman (2010) (0.251). Thus, it is concluded that appreciation and recognition of employees and employees’ task fulfillment stimulate them towards working with more energy and dedication to the organization.

Employee empowerment and motivation towards organizational tasks have also direct and positive relationship between them as shown by the studies conducted by Reena (2009), Mani (2010) and Smith (2001).

5.2.3 Objective on Pay and Benefits

Good incentives, therefore, should provide with the aim of attracting and retaining qualified people and motivating them to achieve goals of the organization. However, organization should not rely solely on pay and benefits (salary, bonus or other monetary and nonmonetary) incentives to motivate the diverse workforce due to the limitations it brings (Lai, 2009).”Pay and benefits”, in this study, is indicated to be as a low ranked motivating factor (3rd ranked) on statements “raise are too few and far between, I feel unappreciated by the company when I think about what they pay me and I am not satisfied with the benefits package I receive” lies in the bottom of the overall ranking list of motivating factors.

This result substantiates Herzberg’s two factor theories which state that salary and benefits are the hygiene factor which can prevent employee’s dissatisfaction only but do not necessarily motivate them. However, job security is classified by Maslow as a basic need to guarantee an employee’s safety. The sample respondents graded how different kind of incentives affects their motivation. Result (Table 4.6) suggests that the factor “I feel I am being remunerated a reasonable amount for the job I do followed by “ the benefits package we get is as good compared to most of other business entities and “ I feel satisfied with my chances for salary increase’ does have a significant effect on the employee’s motivation” (ranked 1,2 and 3 respectively).

5.3 Recommendations

The above argument shows that mainly on the hygiene or sanitation factors such as working situation, work security, sense of smugness, transport assistance, working surroundings, understandable requirement, job performance appraisal, work itself, congratulations and appreciation, personal accountability, reimbursement, benefit pack up and possibly for salary raise have been met and for that reason the plans made to motivate employees by the management have succeed. This ending remark is made on the grounds made by Herzberg that is in order to motivate workers need to have hygiene factors in place as a baseline and then the motivators. Lack of hygiene factors at baseline the organization will not possible to achieve the intended results.

Contrary, one of the hygiene factors, that is pay has not been met and this therefore implies that pay in VRM has not been satisfying employees, thus acting as a big hindrance to motivation. Also, there is uncertainty that despite the other hygiene factors met by VRM management, but how employees could drive motivation in absentia of this factor.

Therefore, creates a dilemma as to whether the hygiene factors are sufficient enough to create a solid baseline that can have a solid impact on the motivators. The study has shown that there is some success in the use of intrinsic motivators and extrinsic motivators to improve performance at the VRM. On the other hand, the wrapping up is not definite as there are issues unclear, despite the research end remarks indicate almost the hygiene issues have been met to allow motivation of workers at the VRM to be achieved and hence boost the performance.

Following above, specific recommendations are

VRM should ensure that intrinsic and extrinsic rewards should be related to specific preferences Herzberg’s theory, elucidate that jobs connected factors only prevent dissatisfaction, therefore, called hygiene factors, which are associated with individual preferences.
VRM should be conducting motivation or job satisfaction survey annual to understand their employee need, expectation and alike.
VRM should evaluate current payment systems with respect to the strength of pay-performance relationships. Although most non-public employees are apparently paid on the basis of merit, examination of most companies’ pay systems reveals little differentiation in rising between average and superior performers as evidence by the response to the question, “The roses are too few and far between. Pay-performance contingencies are generally limited by such practices as setting job grade ceilings and paying for no merit considerations (e.g., external equity adjustments or matching competing offers) out of the “merit” pay budget. Similarly, pay-performance contingencies should also be evaluated at the supra-individual level:
The programs existing, are gaining or profit sharing, and which one VRM follows? If one of them, are the payouts large enough, immediate enough, or frequent enough to make a difference to how hard people are willing to work? (For example, deferred profit-sharing plans that are designed as substitutes for defined benefit pensions are unlikely to have a motivational effect.)
At last, look at how intimately pay-increase budgets reflect changes in business entity performance levels. Many employees have become quite used to being told that the annual increase budget will be very modest due to limited ability to pay (i.e., lower corporate profitability). However, the reverse is often not true, with raise pools remaining modest, even in years of high profitability and the remaining money being allocated elsewhere.
VRM to examine the movement of the senior management pay and rates and those of ordinary employees, whether are moving in the same direction
1. The experience of 30 years of the past shows that most organizations reveals that the relation between the top management and non management recompense has greater than before to a very considerable degree in favour of top management.
2. The difference in earnings between management and ordinary employees has existed for several decades (Shulman, 2003), and top-heavy increases in managerial pay in the face of poor organizational performance (Samuelson 2003 and Useem, 2003). As how individual perceive about the pay received is a result of comparative processes, and organizations with the wide discrepancy between management and normal employee pay practice organizations are likely to be populated with workers keenly in anticipation of opportunities to move to other organizations.
VRM should evaluate the Effectiveness of Compensation Systems. The principle governing the way an organization examines the effectiveness of their compensation policy, and practices are and narrated in preceding sections, it’s therefore prudent for VRM to pathway individual employee behaviours and attitudes. On the behavioural area, the three results that are likely to be strongly affected by compensation ways are: attraction, retention, and performance. Each of these outcomes must be intimately monitored to notice inconvenience with the compensation system.

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