EFFECT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY (A Study of May & Baker Plc, Ota, Ogun State, Nigeria)

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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

Title page
Abstract
Table of contents
List of tables
List of Figures

CHAPTER ONE: INTRODUCTION
1.1       Background of the study
1.2       Statement of research problem
1.3       Objectives of the study
1.4       Research questions
1.5       Research hypothesis
1.6       Significance of the study
1.7       Scope of the study
1.8       Limitations of the study
1.9       Outline of chapters
1.10     Operationalization of research variables
1.11     Schematic model of the study
1.12     Definition of terms

CHAPTER TWO: LITERATURE REVIEW
2.0       Introduction
2.1       Conceptual Framework
2.1.1    Motivation
2.1.2    Types of Motivation
2.1.3    Intrinsic Motivational Factors
2.1.3.1 Employee Well-being
2.1.3.2 Relationship with Co-workers
2.1.3.3 Relationship with Managers
2.1.4    Extrinsic Motivational Factors
2.1.4.1 Work Environment
2.1.4.2 Compensation
2.1.4.3 Training and Career Development
2.1.5    Factors Affecting Motivation
2.1.6    Dilemma Managers Face in Motivating Employees
2.1.7    Productivity
2.1.7.1 Employee Productivity
2.1.7.2 Effectiveness
2.1.7.3 Efficiency
2.1.8    The Nexus between Motivation and Productivity
2.2       Theoretical Framework
2.2.1    Abraham Maslow’s Hierarchy of Need’s Theory
2.2.2    Frederick Herzberg’s Two-Factor Theory
2.2.3    Victor Vroom’s Expectancy Theory
2.3       Empirical Framework
2.4       Gaps in Literature
2.5       Summary of the chapter

CHAPTER THREE: RESEARCH METHODS
3.0       Introduction
3.1       Research Design
3.2       Population of study
3.3       Sample frame
3.4       Determination of sample size
3.5       Sampling technique
3.6       Types and Sources of data collection
3.7       Instrument for data collection
3.8       Validity of research instrument
3.9       Reliability of research instrument
3.10     Method of Data Analysis
3.11     Ethical Considerations

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0       Introduction
4.1       General response rate
4.2       Socio demographic profile of respondents
4.3       Descriptive analysis of data on relevant variables
4.4       Test of hypothesis

CHAPTER FIVE: DISCUSSION OF FINDINGS
5.0       Introduction
5.1       Discussion of Findings
5.1.1    Theoretical Findings
5.1.2    Empirical Findings
5.1.3    Discussion of findings (objectives)

CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS
6.0       Introduction
6.1       Summary of Research Work
6.2       Conclusion
6.3       Recommendation
6.4       Limitation of Studies
6.5       Suggestion for Further Studies
6.6       Contribution to knowledge

References



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.


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