ABSTRACT
The issue of motivation has
continually posed a big challenge to business organizations around the globe
especially in the manufacturing industries where high levels of productivity
affect or play a major role in determining the profitability, growth, development,
stability and future success of an organization. Therefore an organization in a
bid to achieve success in maintaining a competitive edge over its rival as well
as avoid a steady decline in the productivity levels of its employees, must
ensure members of the workforce are adequately motivated. The primary purpose
of this study is to examine the effect of employee motivation on organizational
productivity. This study adopted a descriptive and causal research design as
well as the survey method in investigating the effects of motivation on
organizational productivity levels. The entire population of the study was 475
as a result the sample size determined is 217. A well- structured
self-administered questionnaire was used as the main tool for data collection
and was administered to 217 respondents out of which 185 were retrieved and
appropriately filled. Reliability of the research instrument was calculated and
the Cronbach’s alpha coefficient was 0.868. Data were analyzed using multiple
regression analysis. From the hypotheses tested, the result indicated that
there is a significant relationship between employee motivation and
organizational productivity. Findings also revealed that 35.8% of the
variations in productivity can be explained by employee motivation in the
organization used as a study in this research. The results also revealed that
extrinsic factors were considered to have more significant effects on
organizational productivity than intrinsic factors. The study concluded that
although both intrinsic and extrinsic factors are significant predictors of
productivity, extrinsic factors appear to be more significant or valued by
respondents in the organization used as a study. Furthermore this study also
recommended that management of organizations should take appropriate measures
in figuring out those factors that motivate their employees and seek ways of
ensuring that they are adequately motivated in order to improve their
performance and productivity levels. Finally the study also suggested that
future studies should focus on other industries apart from the pharmaceutical
manufacturing sector.
KEYWORDS: Motivation, Productivity,
Organization, Employees.
TABLE OF CONTENTS
Cover Page
Title
page………………………...……………………………………………………………….…….….i
Declaration
…….……………………………………………………………………………………….…ii
Acceptance……………………………………………………………………………………………..…iii
Certification
…….……………………………………………………………………………………..…iv
Dedication……………………………………………………………………………………………...….v
Acknowledgement…………..…………………………………………………………………………....vi
Abstract………………………………...……………………………………………………….….…....viii
Table of
contents…............................................................................................ix
List of
tables…………………………………………………….……………………………………….xii
List of
Figures………………………………………………………………………………………...…xiii
CHAPTER ONE: INTRODUCTION
1.1 Background
of the study………………...….…………………………………….…………….…1
1.2 Statement
of research problem……………………………………….…....2
1.3 Objectives
of the
study.......................................................................................3
1.4 Research
questions………………………………..………………………………….……………4
1.5 Research
hypothesis............................................................................…...4
1.6 Significance
of the study……………………………………………….………………….………5
1.7 Scope
of the study………………………………………………………………………...….……6
1.8 Limitations
of the
study.......................................................................…...6
1.9 Outline
of chapters……………………………………………………………………...…………7
1.10 Operationalization
of research variables …………….……8
1.11 Schematic
model of the study …………………………………….....9
1.12 Definition
of terms……………………………………………………………………….............10
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction……………………………………………………………………………………....11
2.1 Conceptual
Framework……………………………………………………………………..……11
2.1.1
Motivation………………………………………………………………………..………………11
2.1.2 Types of
Motivation……………………………………………………...………………………13
2.1.3 Intrinsic Motivational
Factors……………………………………………………………………14
2.1.3.1 Employee
Well-being……………………………………………………………………………14
2.1.3.2 Relationship with
Co-workers………………………………………………...……………16
2.1.3.3 Relationship with
Managers………………………………………………………………..……17
2.1.4 Extrinsic Motivational
Factors……………………………………………...……………………19
2.1.4.1 Work Environment…………………………………………………...…………………………19
2.1.4.2
Compensation……………………………………………………………………………………20
2.1.4.3 Training and Career
Development…………………………………….………………22
2.1.5 Factors Affecting
Motivation…………………………………………………….………………24
2.1.6 Dilemma Managers Face in Motivating
Employees……………………25
2.1.7
Productivity…………………………………………………………...……….…………………27
2.1.7.1 Employee
Productivity………………………………………...…………………………………27
2.1.7.2
Effectiveness……………………………………………………………..………………………28
2.1.7.3
Efficiency……………………………………………………………………………...…………29
2.1.8 The Nexus between Motivation and
Productivity……………………………29
2.2 Theoretical
Framework……………………………………………………………..……………30
2.2.1 Abraham Maslow’s Hierarchy of Need’s
Theory…………………….……….31
2.2.2 Frederick Herzberg’s Two-Factor
Theory…………………………………………………….…37
2.2.3 Victor Vroom’s Expectancy
Theory……………………………………..………………41
2.3 Empirical
Framework……………………………………………………………………………47
2.4 Gaps
in Literature…………………………………………………………………………….….50
2.5 Summary
of the chapter………………………………………………………………………….50
CHAPTER THREE: RESEARCH METHODS
3.0 Introduction……………………………………………………………………………………....53
3.1 Research
Design………..…………...……………………………………………………….…...53
3.2 Population
of study………………………………………...………..………………...………....53
3.3 Sample
frame ………………….………….………………………...………………….…….….54
3.4 Determination
of sample size …………………………………….………………..54
3.5 Sampling
technique………………………………………………………………………………54
3.6 Types
and Sources of data collection …...……………………………………………55
3.7 Instrument
for data collection…...………………….…………..………….55
3.8 Validity
of research instrument ….…………………………….…………...…….55
3.9 Reliability
of research instrument ….…….……………………….……….……56
3.10 Method
of Data Analysis ……………..………...…………...…...………………...57
3.11 Ethical Considerations ……………..………...………...…………………………………...…...57
CHAPTER FOUR: DATA PRESENTATION,
ANALYSIS AND INTERPRETATION
4.0 Introduction……………………..………………………..……………………………...……….58
4.1 General
response rate ….……………………...…………….…….……………….58
4.2 Socio
demographic profile of respondents ………………..…………..……...59
4.3 Descriptive
analysis of data on relevant variables ……………..….………61
4.4 Test
of hypothesis ………………..……………………………………………………………...77
CHAPTER FIVE: DISCUSSION OF FINDINGS
5.0 Introduction………………………………………….……………….……………………...…...89
5.1 Discussion
of Findings …....………………….………….………………..………….….89
5.1.1 Theoretical
Findings.…………………………………………….………………..………….….89
5.1.2 Empirical
Findings……...…………………………………………….………...………………..90
5.1.3 Discussion of findings (objectives)
……...……………………..…………...…………..91
CHAPTER
SIX: CONCLUSION AND RECOMMENDATIONS
6.0 Introduction…………………………………………..………………………………….……….96
6.1 Summary
of Research Work………………….…….……………………………………96
6.2 Conclusion
…………………..………………………………………………….…………...…..97
6.3 Recommendation
…………………………………………………..……………..……………..98
6.4 Limitation
of Studies……………….…………………………..………………..…………….....99
6.5 Suggestion
for Further Studies……………….………………………………......100
6.6 Contribution to
knowledge.…………………………..………………….......100
References…….…………………………………………………………......................................102
PART C: APPENDICES
APPENDIX
I……………………………………………………………………………..…………….120
APPENDIX
II………………………………………………………………..…………………………121
LIST OF TABLES
3.9.1 Table on reliability
statistics………………………………………………………….57
4.1 Table
on general response rate……………...………...………………….58
4.2.1 Table on gender of
respondents……………...………...…………..………….59
4.2.2 Table on age group of the
respondents……………………………..……....59
4.2.3 Table on academic qualifications
………...………………………………...60
4.2.4 Table on marital status of the
respondents……………………..….………...…..60
4.2.5 Table on job status
……….…………………………............................................….61
4.3.1 Table on employee
well-being..…………………..…………………………………...62
4.3.2
Table on relationship with co-workers………………………………….64
4.3.3 Table on relationship with
managers……………………………………..66
4.3.4 Table on work environment
…………………………………………………………..…...68
4.3.5 Table on
compensation…………………….………………………………….…..……..70
4.3.6 Table on training and career
development……………………………………..72
4.3.7
Table on effectiveness……………………………………………………………..……..74
4.3.8 Table on efficiency
…...……………………..………………..……………………………76
4.4.1a: Table on model summary hypothesis
1…..………………………………....78
4.4.1b
Table on anova hypothesis
1…..................................................……….78
4.4.1c Table on coefficient hypothesis
1…………………………………..……………79
4.4.2a Table on model summary hypothesis
2…………………..……….. 80
4.4.2b Table on anova hypothesis 2
…..………………………………………....80
4.4.2c Table on coefficient hypothesis 2
………..………………………………...81
4.4.3a Table on model summary hypothesis
3…………………………….....82
4.4.3b Table on anova hypothesis 3
………………………………….……………………82
4.4.3c Table on coefficient hypothesis 3
…………………………………………….....83
4.4.4a: Table on model summary hypothesis
4 ...………………………………….……84
4.4.4b Table on anova hypothesis 4
…………………………………………………….84
4.4.4c Table on coefficient hypothesis
4………..………………………………….....85
4.4.5a Table on model summary hypothesis
5……………………………….......86
4.4.5b Table on anova hypothesis 5
………………………………………………..……86
4.4.5c Table on coefficient hypothesis
5……………………………………….…….....87
LIST OF
FIGURES
Fig 1 Schematic model of the
study………………………………………………………………..……9
Fig 2 Abraham Maslow’s hierarchy of needs
theory model…………………...32
Fig 3 Frederick Herzberg’s two-factor
theory model…………………………..…38
Fig 5 Victor Vroom’s expectancy theory
model………………………………………….42
Fig 6 Schematic model of the study
(Hypotheses)……………………………….…...101
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Generally most businesses, organizations and their
managers are faced with numerous challenges. One of such challenges is in the
area of management which refers to the utilization of resources effectively and
efficiently in order to achieve an organizations goals and objectives. Some of
these managerial challenges are obvious in matters concerning employees such as
reimbursement, recruitment, performance management, training and career
development, health and safety, benefits, motivation and administration amongst
others. The human resource is the most vital of all resources among other
factors of production and the human capital is what distinguishes one
organization from the other (Maimuna & Rashad, 2013). Therefore, for
organizations to survive and remain relevant and competitive, it is essential
for them to be able to entice and maintain efficient and effective employees in
a bid to enhance productivity (Sunia, 2014). This study however is centered on
the aspect of motivation and focuses on the effects of employee motivation on
organizational productivity.
Hellriegel (1996) viewed motivation as any influence
that portray, direct, or maintain people’s goal directed behaviors. It refers
to the driving force that makes an individual to act in a specific way. It is
an inner drive that causes an individual to behave in a certain manner. The
goal of most organizations is to improve productivity therefore factors of
motivation play significant roles in improving employee job satisfaction
levels. This will in turn aid in improving an organization’s productivity
levels.
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.
Extrinsic motivation also helps boost an employee’s
effectiveness and efficiency levels. This is because certain external factors
such as adequate compensation, work environment as well as training and career
development appeal to employees as such are essential in inspiring them to
resourcefully and successfully discharge their duties. An organization that
fails to provide a conducive work environment, compensate its workforce
adequately, create room for proper training and career advancement is at risk
of having a demotivated workforce. This means that such a workforce being
demoralized would fail to effectively and efficiently discharge their duties
leading to low performance and productivity levels (Nwachukwu, 2004). This
study therefore focuses on showing the effects of motivation on organizational
productivity.
1.2 Statement of the Problem
James (2014) cited three warning signs of a
demotivated workforce these include poor workplace atmosphere, slipping job
standards and decreased productivity. He further stated that if any of these
factors is observed to be trending downwards then there is a great chance that
the organization is dealing with a demotivated workforce. Most businesses and
organizations especially manufacturing industries have 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.
This in turn has continued to represent major
managerial concerns for decades as employee productivity levels has relatively
declined 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.
Contemporary investigations that 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. As such investigating those factors of importance to employees in
the discharge of their duties at work has taken a new dimension.
Motivation through factors such as employee
wellbeing, adequate compensation, promotion, good relationships with co-workers
and relationships with managers can enhance an employee’s level of
effectiveness and efficiency in the workplace. This is because good
relationships with coworkers promote unity and gives the employee a sense of
belonging and acceptance which in turn boosts employee performance and
productivity levels. Employees who enjoy such relationships both within and
outside the work environment tend to be more effective and efficient as such
very productive in discharging their duties. Therefore organizations should
promote harmony amongst employees by organizing social functions in a bid to
bring employees together (Jibowo, 2007).
Therefore an organization’s best strategy is to
provide suitable work environs that allow their workforce to meet or exceed
expectations as well as offer a range of motivators to improve enthusiasm,
performance and productivity levels.
1.3 Objectives of the Study
The primary objective of this study is to acquire a
deeper comprehension of how employee motivation
affect performance of workers in manufacturing organizations as well as
recognize the effects on organizational productivity. This research therefore
seeks to:
i.
Determine the effect of employee well-being on
the level of effectiveness of the workers.
ii.
Determine the effect of employee relationship
with managers on the level of efficiency of the workers.
iii.
Examine the effect of compensation on the level
of effectiveness of the workers.
iv.
Examine the effect of training and career
development on the level of efficiency of the workers.
v.
Determine the influence of employee motivation
on organizational productivity.
1.4 Research Questions
i.
What effect does employee well-being have on the
level of effectiveness of workers?
ii.
How does employee relationship with managers
affect the level of efficiency of the workers?
iii.
What effect does compensation have on the level
of effectiveness of the worker? iv. How
does training and career development affect the level of efficiency of a
worker?
v. What
influence does employee motivation have on organizational productivity?
1.5 Research Hypotheses
i.
Employee well-being has no significant effect on
the level of effectiveness of the worker
ii.
Employee relationship with managers have no
significant effect on the level of efficiency of the worker
iii.
Compensation has no significant effect on the
level of effectiveness of the worker
iv.
Training and career development has no
significant effect on the level of efficiency of the worker
v.
Employee motivation does not influence
organizational productivity
1.6 Significance of the Study
For this study not to be an effort in futility, it has to
be useful to a number of people and institutions among which are;
i.
Organizations:
The aim of this study is that the outcomes, results or findings should be
beneficial to business owners, managers and organizations especially in the
locality where this study is being conducted. This is to enable them understand
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.
ii.
Research
Institutions: This study is also relevant to research bodies and
institutions in the nation as a whole because findings would also be relevant
to students and users of information in conducting further research in areas
similar to this study.
iii.
Government
Agencies: This research is also of paramount importance because it
would aid government agencies in making and implementing 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.
1.7 Scope of the Study
The scope of this study is limited to a selected
pharmaceutical manufacturing organization (May & Baker Plc) in Ota, Ado-Odo
Local Government Area in Ota, Ogun State, Nigeria where the study is being
conducted. This study examines employee
motivation and its resulting effects on the organization’s productivity levels.
The pharmaceutical industry is being considered because research has not been
done on this area prior to now. May & Baker Plc was selected because it is
the first pharmaceutical company in Nigeria and is one of the fastest growing
pharmaceutical companies currently situated in Lagos and Ogun state.
1.8 Limitations of the Study
The demanding schedule of respondents at work made
it very difficult getting the respondents to participate in the survey. As a
result, retrieving copies of questionnaire in timely fashion was very
challenging. Also, the researcher is a postgraduate (student) and therefore has
limited time as well as resources in covering extensive literature available in
conducting this research. Information provided by the researcher may not hold
true for all businesses or organizations but is restricted to the selected organization
used as a study in this research especially in Ota the locality where this
study is being conducted. Finally, the researcher is restricted only to the
evidence provided by the participants in the research and therefore cannot
determine the reliability and accuracy of the information provided.
1.9 Operationalization of Research Variables
This
study consists of two variables, employee motivation and organizational
productivity, being the independent and dependent variables respectively. The
relationship between the two variables can be mathematically represented as
follows:
Y=f(X)
Where:
Y= dependent
variable = Organizational Productivity f=
Function
X = Independent variable = Employee
Motivation (Intrinsic and Extrinsic)
X= Employee Motivation
Intrinsic
X1= Employee Well-being
X2= Employee Relationship with Co-workers
X3= Employee Relationship with Managers
Extrinsic
X4= Training and Career Development
X5= Compensation
X6= Work Environment
Y= Organizational Productivity
Y1= Effectiveness
Y2= Efficiency
1.10 Schematic Model of the Study
Source: Adopted from Estes & Polnick
(2012)
Figure 1: Schematic Model of the Study
The
above diagram represents the schematic model of the study illustrating both the
independent and dependent variables used in the study; where H represents the
various hypotheses tested in the course of this study.
1.11 Definition of Terms
Motivation: refers to what stimulates and guides human
behaviors and how these behaviors are sustained to attain a specific goal.
Employees:
Employees are people who are hired working under contract in an
organization, they are referred to as the workforce of an organization.
Productivity:
A summary measure of the quantity and quality of work performance, with
resource deployment taken into account. It can be measured at individual, group
or organizational levels.
Employee
Productivity: is the rate at which employees effectively and
efficiently discharge their duties.
Organizational
Productivity: A measure of how efficiently and effectively managers
use resources to achieve organizational goals.
Effectiveness:
refers to a measure of how well workers productivity levels meet set goals and
objectives of the organization.
Employee
Effectiveness: is a qualitative characteristic that indicates the
extent to which job related issues are addressed and the magnitude at which
predetermined goals and objectives are achieved by an employee.
Efficiency:
can be derived from the relationship between inputs and outputs, and refers
principally to the degree at which outputs are realized while minimizing costs
associated with production.
Employee
Efficiency: refers to the ability of an employee to do what is
actually produced or performed with the same consumption of resources.
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