ABSTRACT
The purpose of this study is to attempt an
evaluation of the effect of motivation on productivity improvement. It is a case
study of Nigeria’s oldest and major security documents corporation, the
Nigerian Security Printing and Minting Company Plc. The manner in which an
organization selects its employees and the reward system adopted to compensate
them, total pay and benefits paid, opportunities for personal development on
the job as well as the recognition they enjoy in terms of enhanced pay, status
and prestige can go a very long way in enhancing their morale and satisfaction
on the job. Performing employees can fast track the growth and development of
their organization. In this study, three hypothesis were posed and tested. It
has long been known that specific components of overall performance, individual
behavior and actions of employees tend to be driven by needs, values and the
extent to which they are being addressed. Based on the findings of this study,
it could be stated tentatively and within the framework of the research design
and methodology, that there is a positive relationship between motivation and
workers’ productivity.
Consequently, whatever a business enterprise
can do in order to boost the morale of the employees and keep them motivated
would generally enhance their performance. One of the three hypotheses posed
and tested in this study clearly shows that there is a strong and positive
relationship between leadership style and employee morale. How employees feel
about the work place and how they perceive the leadership style of their
supervisors can impact strongly on the business bottom-line because people are
largely responsible for nearly all the problems of the business enterprise.
Similarly, the solutions must come from people.
Employees are undoubtedly the most important
assets of the organization and this is particularly true of the business
enterprise. Managers and supervisors therefore need to understand how to vary
their managerial styles in order to respond to the changing requirements of
their subordinates. However, performance depends on many factors. In this
context, ability, effort, organizational resources, leadership style and
organizational climate/environment are vital in inducing good performance.
Furthermore, managers should never ignore the needs of their subordinates so
that the most appropriate set of incentives could be applied to motivate
different categories of employees. This is very important in building and
sustaining good performance.
The three hypotheses posed and tested in
this study tend to support the long held view that workers’ productivity can be
enhanced by influencing their behaviour since high employee morale is a
pre-requisite for motivating higher output and improved performance.
Furthermore, in the context of the research design and methodology, the study
found that there is a positive relationship between employee morale and
employee productivity. In addition, it was discovered that there is a positive
and strong relationship between motivation and workers’ productivity.
TABLE OF CONTENT
Content Page
Title
Page
Certification i
Dedication ii
Acknowledgement iii
Abstract iv
Table of
Content vi
CHAPTER ONE
Introduction 1
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Purpose of the Study 4
1.4 Research Questions 5
1.5 Research
Hypothesis 5
1.6 Significance
of the study 6
1.7 Scope of the Research 6
1.8 Definition of terms 7
References 8
CHAPTER TWO: Review of Literature
2.1 Introduction 9
2.2 Productivity 9
2.2.1 Management Prerequisite 10
2.2.2 Employees Pre-requisite 11
2.3 The Nigeria Worker and Productivity 11
2.4 Productivity Measurement 12
2.5 Motivation 12
2.6 Studies on Motivation 14
2.6.1 Abraham Maslow’s Hierarchy of needs 15
2.6.2 Herzberg’s Two-factor theory of Motivation. 17
2.6.3 Other Theories, such as Expectancy/Valence/Instrumentality
Theories 18
2.6.4 Perceiving that action will result in
performance 19
(Expectancy)
2.6.5 Valence 19
2.6.6 Practical Job Design 22
2.7 Implications for people management 25
2.8 Lesson for Managers and Workers Alike 25
2.9 Interaction
of Key Variables in Strategy and Compensation 29
2.10 The Human Capital Value Circle 31
References 32
CHAPTER THREE: Research Methodology
3.1 Introduction 33
3.2 Research Questions (Restated) 33
3.3 Research Hypothesis (Restated) 33
3.4 Population of Study 34
3.5 Sampling Method 34
3.6 Data Analysis Technique 35
3.7 Limitation of the methodology 36
References
37
CHAPTER FOUR: Data Analysis
4.1 Introduction 38
4.2 Personal Profile 38
4.3 Reward Profile 39
4.4 Training Profile 40
4.5 Supervisory Profile 41
4.6 Communication 43
4.7 Hypothesis Testing and Finding 44
4.8 Implications of Finding 47
CHAPTER
FIVE: Summary
Recommendation and Conclusion
5.1 Summary 48
5.2 Recommendation 48
5.3 Suggestions for further studies 49
5.4 Conclusion 49
Bibliography 50
Appendix 52
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
Human motives have a way of being driven by
needs although the process may be somewhat complex and subconscious. Some are
primary needs such as physiological requirements for water, air, food, sleep
and shelter. Other needs may be regarded as secondary, such as self-esteem.
Status, affiliation with other affection, accomplishment and self-assertion.
People participate in an organized
enterprise and indeed in all kinds of groups in order to achieve some goal that
they cannot attain as individuals. The question arises as to what activities
will people be willing to take up at any point in time and why? This is where
motivation comes in.
According to Berlson and Steiner (1964)
motive “is an inner state that energizes, activates moves (here motivation) and
directs or channels behaviour towards specific goals. In other words,
motivation is a general term applying to the entire class of desire, needs,
wishes and similar forces. There are things, which satisfy these drives and
desires, they may include higher pay; a prestigious title, and a name on the
office door and a host of other things, including a reserved space in the car
park or company’s parking lot.
To be sure, while motivation reflects wants,
it is perceived reward or incentive that sharpens the drive to satisfy these
wants. It is also the means by which conflicting needs may be reconciled or one
need may be accentuated so that it will be given priority over another. An
incentive that is designed to motivate therefore is something that influences
an individual’s behaviour. It makes a difference in what a person will do.
Obviously in any organized enterprise, managers must be concerned about
motivation and incentives.
A manager is anyone who gets results through
people. The need to attain higher levels of labour productivity is generally
accepted in all economies and by employers and trade unions alike. It is only
in this way that returns to the enterprise investment can be maximized that
wages can be sustained in real terms and economic benefit achieved at national
level.
A reasonable manager is expected to give
special attention to his employee through whom the envisaged results are to be
accomplished. The employee must be adequately motivated.
At this point, a little background into our
case study – This Nigeria Security Printing and Minting Company Limited,
otherwise known as “the MINT”, becomes relevant. The MINT, which was established
in 1963, commenced production in 1965. During its 35 years of operational
existence, the MINT had grown from a one-product line company to a sizable
multi-product security printing, self-financing and self-sustaining
organization with staff strength of about 2000 indigenous. Highly qualified and
experienced technical and professional men and women. The company has continued
to fully satisfy the country’s security printing and minting needs, in further
exploring the larger foreign market.
The MINT is a private limited liability
company incorporated in 1963 with the Federal Republic of Nigeria represented
by the Ministry of Finance incorporated as the majority shareholders. Thomas De
la Rue Plc. Technical Partners and Central Bank of Nigeria as the third
shareholder. The current shareholding is as follows:-
v Ministry of Finance Incorporated 55%
v Thomas De La Rue Plc 25%
v Central Bank of Nigeria 20%
The primary objectives of the company is to
supply to government and various ministries of government, and to the Central
Bank of Nigeria, all printed materials including (but limited to) banknotes,
coins, postage stamps, postal and money orders and other security printing
requirement. A 9 – man Board of Directors is responsible for the overall strategic
policy decisions of the company. The day to day affairs of the company is
managed by a top management team comprised of Managing Directors, 3 Executive
Directors and 6 General Managers.
As part of its expansion strategy, the
company identified the local sourcing of its raw materials as logical first
step. It accordingly embarked on the establishment of two companies in
partnership with selected technical partners for the production of security
inks and papers in Nigeria. The ink factory, Tawada Limited, has been completed
and was commissioned in 1997. the MINT in 1988, also acquired a majority
interest in Pacific Printers (Nig.) Limited (PPNL), a company that has been
engaged in commercial printing since 1935. The acquisition was aimed at complementing
the capacity and in keeping with Federal Government decision to move the
Federal capital to Abuja; the Company commenced the construction of a new
office/factory complex and residential quarters in the new Federal Capital. The
corporate headquarters of the company has since been relocated to Abuja.
Despite all these laudable innovations and colossal investment by the
Management of the MINT, productivity of worker started dwindling in 1991
occasioned by industrial unrest. Since 1991, there has been study decline in
productivity leading to inability to meet customer’s demand.
The company has laudable objectives that
will be of immense benefit to the growth of the country’s economy if labour
productivity is given its pride in the scheme of things.
Therefore, this study is to find out the
effect of declining productivity on a sample of workers of the MINT, identify
the cause and give suggestions and recommendations aimed at enhancing labour
productivity based on the tools of MOTIVATION.
1.2 STATEMENT
OF THE PROBLEM
The decline in labour productivity of the
staff of the MINT has been an embarrassing issue to the Management, workers,
customers and interested observers and industrial analyst, for the purpose of
this study, the cause of decrease in labour productivity of the workers would
be thoroughly examined. This canker-worm posses a sort of threat to the
company’s economic viability as well as its future development. Therefore, this
research paper focuses on the issue of human motivation as a tool of enhancing
labour productivity within the organization of the MINT. The key factors
responsible for this downwards trend can be classified into three categories;
changes in company’s policy, ineffective leadership style and management
workers communication gap.
The fluctuations in company’s policy since
1991, when the management initiated some unprecedented changes into its
policies like indiscriminating retrenchment of workers, cancellation of in
incentives and suspension of the joint consultative committee (JCC). Tasks of
workers were thus increased within the organization within corresponding
adjustment of financial rewards and other extrinsic benefits. Some of the
cancelled incentives are the staff canteen. Staff bus facilities, services of
staff hospital to some staff, no more overtime payment to administrative senior
staff. The suspension of Joint Consultative Committee, the only means of
management – workers dialogue, brought about a wide communication gap. Thus,
the problem of this study is to know the effect of motivation on the success of
the MINT.
1.3 PURPOSE
OF THE STUDY
The purpose of this study is to evaluate the
role of motivation as a tool for inducing employee productivity. It is a case
study of the Nigerian Security Printing and Minting Company (NSPMC) Limited,
also known as MINT. People make and implement decisions which influence the
course of the destiny of organizations where they have the opportunity to
serve. However, Emerson (1962), Belcher (1984) and Fajana (2002) among other
notable researchers and Scholars have noted that the relationship between
employees and employers is an exchange process because the employer exchanges
pay for the services of the employees. In other words, the employee offers his
services to the employer in exchange for the pay and benefits received from the
employer.
Consequently, the extent to which employees
commit to the strategic objectives and short-term goals of their organizations
may, in fact, be influenced by the level of remuneration and other benefits
enjoyed as well as the way they perceive such remuneration as equitable and
commensurate with the quality of services provided by them. As a result, the
satisfaction enjoyed by the employee may, in fact, depend on many factors but
especially, the degree of motivation and other incentives that go with the job.
Apart from their compensation (salaries and benefits), employee performance and
behaviour have been found to be susceptible to the leadership style and
organizational climate.
Among the objectives of the study are the
following:
i) Identify the mission of the Nigerian
Security Printing and Minting Company (NSPMC) Ltd.
ii) Identify
the vision of the NSPMC Ltd
iii) Identify
the importance attached to motivation by the MINT.
iv) Assess how employees perceive their pay
and other incentives as part of management’s approach to motivation.
v) Assess
the relationship between employee morale and workers’ productivity.
vi) Assess
the relationship between employee motivation and productivity.
vii) Evaluate
the relationship between motivation and employee productivity.
viii) Identify any weaknesses in MINT’s current
approach to motivation and the use of incentives.
ix) Make useful and relevant suggestions,
based on the findings of the study, as to what improvements could be made in
the area of motivation and employee productivity.
x) Based on the findings of the study, to
make recommendations to the management of the company as to those specific
areas where improvements are likely.
1.4 RESEARCH QUESTIONS
i) What is the mission of the MINT?
ii) What
is the vision of the MINT?
iii) Does
INT have a formal program that keeps employees motivated?
iv) Is
there a relationship between Motivation and Workers’ Productivity?
v) Is
there a relationship between employee morale and productivity?
vi) Hoe
effective is MINT’s reward system in inducing workers’ productivity?
vii) Does
leadership style influence workers’ morale?
viii) If
indeed it does, to what extent does leadership style workers’ morale?
1.5 RESEARCH
HYPOTHESIS
Hypothesis
One:
H0: Null Hypothesis: There is no relationship
between Motivation and workers productivity.
H1: Alternative Hypothesis: There is a relationship between
Motivation and workers productivity.
Hypothesis Two:
H0: Null Hypothesis: There is no relationship between Leadership
Style and employee morale.
H1: Alternative Hypothesis: There is a relationship between
Leadership Style and employee moral.
Hypothesis Three:
H0: Null Hypothesis: There is no relationship
between employee morale and Productivity.
H1: Alternative Hypothesis: There is a relationship between
employee morale and Productivity.
1.6 SIGNIFICANCE OF THE STUDY
The MINT has been having serious and
seemingly insurmountable headache about the decline in workers’ productivity
and efficiency for more than a decade. Many reasons could be adduced for this
sad turn of events; however, it has not been possible to date to put a finger
on the specific issues despite the fact that successive managements of the
company have made spirited efforts at resolving the problem.
They have not gone to the grass-root to
pinpoint the specific issues as they affect the workers as part of the
concerted efforts aimed at resolving this critical situation, the Board of
Directors of the MINT have held various meetings with a view to finding
enduring solutions to this problem. The workers’ representatives, management
and consultants have met several times on this issue in order to banish this
canker worm that has eaten so deeply into the fabrics of the company. In spite
of the several meetings and strategies adopted, achievement so far has been
next to nothing, mainly because. This is the challenge of this study and
constitutes one of the boldest attempts that have been made in this regard.
Consequently, the recommendations, based on
the findings of the study would make significant and very useful contributions
to the existing literature. Not only htat, it would prove invaluable to the
management of the MINT as it actively seeks to provide a workplace that
employees find conducive and a place that workers can look forward to on an
ongoing basis.
This study will make positive contributions
as it will attempt an empirical evaluation of the relationship between
motivation and workers’ productivity. It will also attempt to examine the type
and strength of relationship between employee morale and productivity. Needless
to state, these factors impact the capacity of the employee to perform to the
desired standards in the workplace.
1.7 SCOPE
OF THE RESEARCH
This research is limited to the effect of
motivation on workers’ productivity in the MINT. The research is based on a
sample which consisted mainly of respondents taken from among workers of the
MINT as well as a small sample of respondents purposively selected from a group
of knowledgeable and experienced professionals and managers.
There is the possibility that the same set
of respondents may provide a completely different set of responses at a later
date, especially if there was a change in management. The study is limited in
scope to the employees of the MINT and a small sample which comprised of a few
other managers and professionals, as earlier described. However, motivation as
a concept has almost universal application.
1.8 DEFINITION
OF TERMS
- Work: Refers to a
continued physical or mental exertion or activity directed to some
purpose.
- Motivation: This
consists of a set of driving forces or an identifiable state of need which
could incline a person to behave in a particular manner or to develop a
capacity for certain types of behaviour.
- Motivating: Refers to
the act of creating and maintaining employee attitudes capable of
influencing them to subordinate their personal objectives, however,
significant such objectives may be, to the super ordinate goals of the
organization.
- Productivity: Refers
to the units of goods/services produced per worker in a given period of
time.
v.
Organization: A number of individuals
systematically united for some end, or work as a business partners to achieve a
designated objective.
- Motive: This is the
why and reasons for every behaviour. There is always a reason behind
whatever we do.
- Fringe Benefit: This
means added favour or services given with a job besides wages and
salaries. For examples, free health services, free accident insurance,
free luncheon vouchers etc.
- Bonus: This is payment made to
employee at the discretion of the management in questions. It has no laid
principle but it may be as a result of profit made at the end of the year or
based on the quality and quantity of work.
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