EFFECT OF SELECTED MOTIVATIONAL FACTORS ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING COMPANIES IN KENYA

ABSTRACT
Motivating employees to achieve expected performance poses a challenge to firms in the market. For firms to be effective and successful, they should motivate their workforce. The manufacturing industry faces challenges including government regulation on sales practices, non-direct tracking of sales results and adoption of team based sales structure which has affected adoption of effective motivation strategies for the workforce.The purpose of the study was to investigate the effect of Selected Motivational Factors on Organizational Performance in manufacturing companies in Kenya. The specific objectives of the study were to investigate the effects of compensation programme on organizational performance, to establish the effect of working conditionson organizational performance, to determine the effect of job security on organizational performance and to assess the effect of employee recognition on organizational performance in the FMCG manufacturing companies in Kenya.The targeted population of this study was all sales representatives in the four companies in Kenya. Random sampling was used to obtain a sample of 98 out of a total of 326 sales staff of all four companies. Primary data was collected and analyzed using quantitative and qualitative techniques and then presented using narratives, tables and graphs. Correlation analysis was done and the results showed a statistically positive relationship between the dependent variable, Company performance, and the independent variables; compensation programme, working conditions, job security and employee recognition.According to this study, there is a combined effect of compensation programme, working conditions, job security, and employee recognition on organizational performance in the selected manufacturing companies in Kenya. It is important to note that employee satisfaction is one of the aspects of operational performance that the respondents indicated that their companies did not perform well in as well as lack of satisfaction in the modes of compensation and employee recognition. A great number of employees claimed that the biggest worry was on job security as most of them are employed on short-term contracts hence high levels of staff turnover or layoffs. The study recommends that overall improvement is required on basically all aspects of employee motivation touching on the work of sales representatives as this affects organizational performance.

CHAPTER ONE 
INTRODUCTION 
Background of the study 
A study conducted by (Suff, 2001) indicated that great changes on the way firms conduct their business has been witnessed as a result of globalization. This has led to the appreciation of the products and services which are being offered by the firms leading to the formation of stiff standards used as benchmarks as far as the human resource management is concerned. In an effort to meet these standards, firms have adopted a worldwide performance management system. (Holman, 2002) indicates that Performance management has helped to transform the way many companies do business. By adopting human resource practices and technology that allow them to monitor their performance, companies and senior management can get a better read on what is happening in the company, why it's happening, and what should be happening. 

Globalization has not withstood its share of challenges; (Watson, 2006) indicates that while the emerging international economy creates opportunities it also presents challenges and threats with which yesterday's business managers did not have to deal with. This is due to the fact that most of these performance management systems are theoretical. And as per (Rees, 2006, p.46), “…the theoretical discipline is based primarily on the assumptions in that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets….” 

(Locke, and Latham, 2002), clarify the role of the sale representatives‟ manager by indicating that it is not only to meet sales target but there are other roles such as; ensuring that there is a mixed blend of motivation factors which will in turn influence how performance measures are realized. To clarify this concept (Shih, 2010) indicates that sales representatives‟ are influenced not only by the amount of reward he or she receives but by the desirability of receiving increased reward through extra effort which influence performance. 

A lot of contradictions have emerged in the quest of trying to answer whether job dissatisfaction means lower sales and less enthusiasm for the job, affecting drive and hours worked. This has led to studies which have discovered that increased job satisfaction does not necessarily result in improved job performance. 

For a company to grow there are various issues which are supposed to be kept in place, this is because most companies rely on their sales in order to remain relevant and competitive in the market. (Robbins, 2005) indicates that sale representatives‟ are often faced with a diverse set of selling and non-selling job responsibilities, their choice of which activities warrant action is as important as how hard they work or how well they persist in their efforts. He further alludes that the motivation task is incomplete unless sale representatives‟ efforts are channeled in directions consistent with the overall role of sale representatives‟ within the firm; this sentiments are backed by (Watson, 2006). 

When people are certain that their performance will be personally rewarding they will experience motivation emanating from internally as long as they are assured that there is a reward for the same and also their external motivation will be higher. Sales processes and compensation aimed at improving sales performance have been seen as the key to motivating sales representatives‟ increasing performance throughout in manufacturing industry (Locke and Latham, 2002). 

More broadly, firms of all sizes need to continuously attend to their levels of productivity if they are to remain competitive. Their capacity to do so is not fully explained by market forces. Social equity theory advances an explanation of how certain firms may achieve higher than normal levels of productivity. As (Buchele and Christiansen,1999) argue, continuous improvements in productivity depend not on individual efforts but on effective interaction among workers, work groups or departments (coordination), and between management and workers (cooperation). 

Motivation of Sales Representatives 
(Gary, 1990) defines motivation as process that account for an individual‟s strength, course and determination of effort toward attaining a goal. Another definition by (Locke and Latham, 2002) indicates that it is the predisposition to behave in an intentional manner to achieve specific, unmet needs. It is somewhat clear that the concept of motivation does not emerge from external sources only but also emerges internally from an individual. 

(Robbins, 2005), indicates that motivated employees are more productive, creative, provide better customer care which may translate to higher profits and customer satisfaction for the firms. He further elaborates his sentiments by indicating that motivated employees help organizations survive and are more productive and thus he urges managers in manufacturing companies to understand what motivates workforces within the context of their duties and this will definitely have an effect on the overall performance of the firm. 

In an effort to clarify this concept, (Locke and Latham, 2002) indicate that motivation affects behavior, rather than performance thus answering the question which seeks to ask whether there are gaps between individual state and the desired state. Strategies to improve job performance by increasing employee motivation need effective link between job performance and an employee‟s efforts (Watson, 2006). (Holman and Wood, 2002) have noted that motivation is determined by goal intentions, human willingness, and perceived needs and values to sustaining the actions of employees in relation to themselves and to their environment. Motivating employees to achieve expected performance poses a challenge to firms in the market. (Ryan, 2000) observed that for firms to be effective and successful, they should motivate their workforce. 

Performance of Sales representatives’ in organizations 
Key determinants of the performance of an organization are the sales team and subsequently the sales strategies. (Armstrong, 1999) argues that sales people can be divided into three broad categories that is; direct sales, account managers and technical support. The quality of the salesperson can be the difference between making a sale and not (Ryals and Rogers, 2005). Manufacturing Companies commonly assume that money is the key motivator for salespeople. According to Remuneration Economics, reward packages for sale representatives‟ are often designed and operated quite separately from the rest of the workforce. 

Manufacturing Companies in Kenya 
Kenya‟s manufacturing sector is among the key productive sectors identified for economic growth and development because of its immense potential for wealth, employment creation and poverty alleviation. In addition, the sector continues to provide impetus towards achievement of Millennium Development Goals (MDGs) both in the medium and long term particularly one on Eradication of extreme Poverty and hunger and goal eight on Global Partnerships for Development. The Kenyan food-processing sector, including food, beverages and tobacco, remains the largest component of the manufacturing industry. In terms of structure, economic contributions, and performance in the manufacturing sector, this sector is the most important and largest comprising of over 1,200 businesses, encompassing everything from small family organizations to large multinational companies (GOK, 2011) 

According to the Kenya Demographic Health Survey 2010, Statistical Abstract, the sector contracted by 3.9 percent from 2007, but still generated over a third (33.4 per cent) of the total manufacturing production, and provided 89,319 jobs. High production and ingredient costs were partially blamed for this contraction. In 2009, the sector grew by 2.1 percent (KNBS, 2009). 

While the manufacture of food, beverage and tobacco increased by 2.0 per cent in 2009 compared to a decline of 1.8 per cent in 2008, suppressed demand led to low consumption of some products leading to a scaling down of production of basic household commodities. Food manufacturing sub sector registered a growth of 2.1 per cent in 2009 after recording a decline of 3.9 per cent in 2008. Kenya‟s manufacturing sector is mainly agro-based. Most of the industries are located in urban and sub-urban areas whereas the raw materials for these industries are sourced from rural areas. The concentration of industries in sub-urban areas has resulted to lack of dispersion of industries to rural areas, leading to regional disparity in development, rural-urban migration and underutilization of natural resources (GOK, 2011).

For more Human Resource Management Projects Click here
===================================================================
Item Type: Kenyan Material  |  Attribute: 84 pages  |  Chapters: 1-5
Format: MS Word  |  Price: KSh900  |  Delivery: Within 30Mins.
===================================================================

Share:

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Search for your topic here

See full list of Project Topics under your Department Here!

Featured Post

HOW TO WRITE A RESEARCH HYPOTHESIS

A hypothesis is a description of a pattern in nature or an explanation about some real-world phenomenon that can be tested through observ...

Popular Posts