EMPLOYEE MOTIVATION AND EMPLOYEE PERFORMANCE IN THE MANUFACTURING INDUSTRIES IN NIGERIA

ABSTRACT

The importance of motivation in the day-to-day performance of workers duties cannot be overemphasize, especially when it comes to being rewarded for a job well done. This study, investigate employee motivation and employee performance in the manufacturing industries in Nigeria, a case study of Golden Sugar Company in Lagos state Nigeria. 162 respondentswere selected from the company across the departments in the company. The populations of the study were 292 workers of Golden Sugar Company in Lagos state Nigeria. The study used frequency and simple percentage to analyze the demographic characteristics of the respondent. The Pearson Product moment Correlation Coefficient and spearman rank correlation was used to test the four hypotheses that guided the study. The result obtained from the analysis showed that there existed relationship between the following variables: financial benefit and employee commitment; training and development and employee creativity; job security and employee engagement and also relationship existed between working environment and employee morale amongst the employees. This is in line with equity theory which emphasizes that fairness in the remuneration package tends to produce higher performance from workers. The researcher recommended among others that companies should provide financial benefit and other motivation strategies in motivating employees as this will make employee committed in their areas of assignment. It was concluded that, it is imperative for the organization to consider the needs and feelings of its work force and not just overlook them in order to safe guard industrial harmony, because ―a happy worker they say is a productive worker. Having stressed the importance of a good remuneration policy on the performance of workers and the different kinds of reward that can influence workers to perform better on a job, this study can therefore be seen a call for employers sense of commitment to put in place appropriate motivation plan that will encourage workers to be more purposeful and improve their performance. The researcher therefore, suggest that more research should be conducted on employee motivation and employee performance using many private and public organizations which will be a handy tool that could be used to provide solutions to individual conflict that has resulted from poor reward system.

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study

In every organization, employees are a vital cog in achieving organizational goals and improving business performance. Therefore, it is important for every organization to have the right employees who are driven to achieve company objectives and goals. Furthermore, it is important for employees to be united working with the vision and mission of the companies (Achamfour, 2013). Sekiguchi (2013) opined that the way an organization manages human capital rather than physical capital is key in determining their performance. Similarly, studies have shown that the Human resource of an organization is their key resource that gives them competitive advantage over other organizations (Achamfour, 2013; Sekiguchi, 2013; Brian, 2013). Therefore, the performance of employees in any organization is pivotal for the growth of the organization and also for the growth of individual employees (Meyer & Peng, 2006).

For the success of any organization employee motivation plays an important role. In order for a company to achieve set goals and objectives, the employees need to be motivated enough to have the drive to achieve those goals and objectives? Many studies have revealed; the motivation of employees is a key determining factor in an organization’s performance. Furthermore, all organizations encounter the matter of motivation whether they are in the public or private sector (Chintallo &Mahadeo, 2013). This is so because no two employees are the same. Employees vary in their styles, personalities, their beliefs and culture. Therefore, the various things can motivate or depress an employee which can affect their performance. Hence, Managers have to therefore create an enabling environment that drives employees to perform better (Ackah, 2014). This has made the role of the human resource managers really important in companies today, as it is vital that they come up with effective ways to motivate all their employees.  

Every single employee has his/her own motivational factors that motivate them to perform effectively and efficiently and organizations should be aware of these factors (Nizam & Shah, 2015). This has been a source of a huge headache for human resource and talent managers alike.   Therefore, there is a need to understand and examine various factors that can serve as motivation to employees and how these factors impact upon employee’s performance. Therefore, this study will be an inquisition into what methods can best be used to motivate an employee in different scenarios in an organization.

Motivation, as a process, started with a need in human being which creates a vacuum in a person. In an attempt to fill the vacuum an internal driving force is generated which starts and sustains a chain of action and reaction. It is at that point that the vacuum is also filled. With this background information, motivation as the internal or external driving force that produces the willingness to perform an act to a conclusive end. This first aspect of motivation we choose to describe as internal motivation because the driving force comes from within an individual. The second aspect is external motivation, is applied by the organization. This is because employees are motivated to identify with organization in order to satisfy their varied and variegates needs and desires. Until they have been identified and properly satisfied, they will never cease to impede smooth running of the organizations

One of the biggest problems facing manager in the organizations is how best to get employees committed to their work and put in their best towards the accomplishment of organization’s objectives.  Motivation is concerned with why people do what they do. It answers such questions as why do managers or worker go to work and do a good job. This tries to explain what motivates people to act the way they do, with primary focus on the work place. It is the primary task of the manager to create and maintain an environment in which employees can work efficiently and realize the objectives of the organization.

Employees differ not only in their ability to work but also in their will to do so (motivation). To motivate is to induce, persuade, stimulate, even compel, an employee to act in a manner which fulfilled the objectives of an organization

The motivation of employees depends on the strength of their motives. Motives are need, wants, desire, or impulses within the individual and these determine human behavior. Therefore, motivation is the process of arousing behavior, sustaining behavior progress, and channeling behavior into a specific curse of action. Thus, motives (needs, desire) induce employees to act. Motivation therefore is the inner state that energies people, channels and sustains human behavior.

Since it has been established that all behavior except involving responses are goals directed, manager can apply motivational theories of management in their attempt to direct the job behavior of employees towards the goal of their establishment.

Every organization and business wants to be successful and have desire to get consent progress. The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges. To overcome these restraints a strong and positive relationship and bonding should be created and maintained between employees and their organizations human resource or employees of any organization are the most central parts so they need to be influenced and persuaded towards task fulfillments.

For achieving prosperity, organizations design different strategies to compete with the competitors and for increasing the performance of the organizations. A very few organizations believe that the human personnel and employees of any organization have its main assets to which can lead them to success or if not focused well to decline. Unless and until, the employees of any organization are satisfied with it, are motivated for the tasks fulfillment and goals achievements and encouraged, none of the organization can progress or achieve success.

Employee motivation is one of the policies of managers to increase effectual job management amongst employees in organization (shadier et al. 2009).

A motivated employee is responsive of the definite goals and objectives he/she must achieve, therefore in that direction. Rutherford (1990) reported that motivation formulates an organization more successful because provoked employee is constantly looking for improved practices to do a work, so it is essential for organizations to persuade motivation of their employees (Kalimullah et al 2010) Getting employee to do their best work even in strenuous circumstances is one of the employees most stable and greasy challenge and this can be made possible through motivating them.

For example, in a country like Pakistan in the city off Islamabad an analysis was taken in the university of Islamabad to know whether the effect of talent managers is using the right motivational packages.

 It was found that the majority of the respondents reported that they were not availing Medical allowances, Leave travel allowance, House hiring, Covance allowance, Qualification allowance, Special duty allowance, Pension benefit, Central provident fund, General provident fund, Medical after retirement, Housing schemes, Benevolent fund, Club memberships, Health insurance, Life insurance, Bonus, Performance bonus, Outdoor medical facility, Medical assistance in campus, Fuel fund, Memberships of the educational organizations, Flexible timing, Overtime policy and Refreshment trips.

 After the analysis it was recommended that Benefits such as Pension, Central provident fund, General provident fund, Medical after retirement and Benevolent fund may also provide to the employees to attract the skilled and efficient minds to the teaching profession.

 

 

Also in a country like Ethiopia an analysis was done as to know whether motivational packages were effective.  

According to respondents, motivation to employee has got a positive effect on organizational performance and productivity. That means employees who has got motivation either in cash or in kind brings about boosting productivity because employees feel that organization belongs to them and work effectively. Employees who get the motivation in either scheme can develop a   sense of organizational belongingness. Majority of employees said motivated employee increases productivity because it makes them to work working over-time, interestingly and effectively. Moreover, motivated employee is ready to create new techniques and procedures to do work. It makes employee innovative. Especially in this competitive market organizations are expected to take competitive advantage over other competing firms

Coming down to Nigeria the present situation of motivation of employees has been ignored by so many organizations. Just last year it was reported that workers of Osun state have not been paid for over 6 months. also it was also reported in the news that workers of Jos which is the capital of Plateau state, according to the news the workers have not been paid for over four months. All these would definitely affect the performance of thee employees because wages and salaries is considered as an indicator for the motivation of employees.

 

 

 

 

1.2  Statement of the Problem

With business world growing ever increasingly competitive, business organizations are facing ever-growing challenges regarding commitment, engagement, belief, recruitment and retention of their employees. Cross country studies across various industries globally show that employees who are passionate about their jobs and the organizations in which they work are in the diminishing minority (Nurun, Monirul, Tanvir & Abdullah, 2017).

The current state of affairs in the nation in general as relating to the workforce motivation makes it necessary to temper this optimism with caution. “The workers are on strike again. Over what?”, “They are asking for another pay rise. What more do they want?” These statements and comments and many similar ones are reported frequently in the dailies and are commented upon by watchers of development in various industry and service organizations. The questions are often asked as to what workers in general want from their employers. Can there be an end to the clamor for increases in wages? Why do workers work and what induces them to give of their best? Money only plays the role of common denominator of all things. There is a general notion that if only management can identify other things that can motivate the workforce apart from money, perhaps there will be a dramatic reduction in the demand by workers for pay rises. Less time will be spent on the annual ritual of management/workers union negotiation meetings (Badu, 2010). 

Workers leave organization due to the fact that they are not motivated enough. Some are not willing to leave because they are enjoying some benefit in terms of promotion, which leads to increase in salaries and wages, bonus and some other incentives.

The workers of Golden Sugar company are being motivated through different packages and yet the company still find it hard to retain some of their best employees. Also, the inability of workers to perform effectively and efficiently even with the job training being organized by the organization poses a major problem.

As regards satisfying and motivating workers, another imperative question to be posed is the type of motivational technique to be used. Scholars have identified that some workers will prefer financial incentives to non-financial incentives, more especially the junior workers, due to the fact that such incentives are not used as a motivational technique, the company have the problem and challenges of retention of their employees. Hence low performance and productivity becomes the end result and finally work dissatisfaction.

It has been posited that low salaries, unconducive working environment, job insecurity, inadequate training and development, insufficient reward and incentives, irregular promotional structure, and lack of recognition of worker’s achievements reduce the workers’ overall motivation and ultimately, negatively affects organizational performance. The aim of this research therefore, is to find out the type of motivational packages that need to be given to workers, and whether workers when given the right incentives other than money, can put in their best to contribute to the performance and growth of the organization to achieve its corporate objectives.

1.3 Research Objectives

The general objective of the study is to determine the relationship between employee motivation and employee performance. The specific objectives of the study are:

  1. To ascertain the relationship between financial benefits and Employee commitment amongst the employees of Golden Sugar Company in Lagos state Nigeria
  2. To ascertain the relationship between training and development and employee creativity amongst the employees of Golden Sugar Company in Lagos state Nigeria
  3. To ascertain the relationship between Job security and Employee engagement amongst the employees of Golden Sugar Company in Lagos state Nigeria
  4. To determine the relationship between working environment and Employee’s morale amongst the employees of Golden Sugar Company in Lagos state Nigeria

1.4 Research Questions

The research will seek to answer the following questions:

  1. What relationship exists between financial benefits and employee commitment amongst the employees of Golden sugar company in Lagos state Nigeria?
  2. What relationship exists between training and development, and employee creativity commitment amongst the employees of Golden sugar company in Lagos state Nigeria?

 

\What relationship exists between job security and employee creativity commitment amongst the employees of Golden sugar company in Lagos state Nigeria?

  1. What relationship exists between working environment and employee’s morale amongst the employees of Golden Sugar Company Nigeria?

 

1.5       Research Hypotheses

 The following hypotheses are formulated for testing:

H01:        There is no significant relationship between financial benefits on Employee commitment amongst the employees of Golden Sugar Company

H02:        There is a significant relationship between training and development and employee creativity amongst the employees of Golden Sugar Company

H03      There is no significant relationship between job security and employee engagement amongst the employees of Golden Sugar Company

H04:        there is no significant relationship between working environment and employee morale amongst the employees of Golden Sugar Company

 

 

 

 

 

1.6 Operationalization of Variables

The variables adopted by this study are: employee motivation and employee performance. The study will seek to investigate the relationship between employee motivation; the independent variable, and the dependent variable; employee performance.

The variables for this research are consequently operationalized as follows: 

Y = f(X)

Y = Employee Performance

X = Employee Motivation   

where Y = Dependent variable

            X = Independent variable

Y=f(X)

x = (x1, x2, x3, x4)

x1 = financial benefits

x2= training and development

x3= Job security

x4= Working environment

y = (y1, y2, y3, y4)

y1= Employee Commitment

y2 = Employee Creativity/innovation

y3 = Employee engagement

y4 = Employee’s morale

y1= f(x1) __________________ (1)

y2= f(x2) __________________ (2)

y3 = f(x3) __________________ (3)

y4=f(x4) ___________________ (4)

            The study will focus on equation (4) above.

            Based on regression, we have

y1 = α0 + β1x1 + μ…. (1)

y2 = α0 + β2x2 + μ…. (2)

y3 = α0 + β3x3 + μ…. (3)

y4 = α0 + β4x4 + μ…... (4)

Where, α is the constant of the equation, β is the coefficient of X the independent variable where μ is the error or stochastic term in the equation.

 

 

1.7 Scope of the Study

The study will focus on the relationship between employee motivation and employee performance in Golden sugar company. The geographical location of the study will be in Golden sugar company of Nigeria plc, Tin-Can Island, Apapa. The sample size for the study was 204; this was derived through the Yamane method. The study adopted the mixed method of sampling (stratified and simple random sampling). Finally, the study would be carried out between September 2017 and 2018.

1.8    Significance of the Study

This study will be relevant to the management of Flour Mills Nigeria plc as it will enable the Human Resource arm of the company know the needs of employees in terms of motivation and also to know how effective their current motivation techniques are. Furthermore, the study results will also enable the company know what areas to upgrade in their motivation strategy.

This study will also be relevant to the entire Manufacturing Industry. It will show the entire manufacturing industry how employees in the manufacturing industry react to various situations and how they respond to motivation techniques used by the company

The study will benefit the Manufacturers Association of Nigeria (MAN). The Manufacturers Association of Nigeria is a national industrial association serving and representing over 2,800 manufacturing companies in the private sector of Nigerian Companies. The case study Nigerian Bottling Company PLC is a reputable member of this association and the result findings can be related to all the other members of the association. The study will help all other manufacturers identify past schemes used to tackle comparable administration issues and they will have the capacity to spot blemishes in the rationale, blunders in presumptions and make corresponding adjustments.

Finally, research study will be relevant to future researchers on the effects of compensation strategies on organizational performance.

1.1      Operational Definition of Terms

Employee motivation: this is the level of energy, commitment, and creativity that a company’s workers bring to their jobs. Whether a company is growing or shrinking, it is the job of the talent managers to find different ways to motivate their employees in other to achieve organizational success. Motivated employees are essential to the success of employees.

Employment Performance: this is defined as whether a person executes their job duties and responsibilities well. Many companies assess their employee’s performance on an annual or quarterly basis in order to define certain areas that need improvement. Performance is a critical factor in organizational success. The success of any business is closely related and tied to the job performance of its employees

Employee Morale: in human resources is defined as job satisfaction, outlook, and feelings of wellbeing an employee has within a workplace setting. It is proven to have a direct effect on performance.

It can also describe the overall outlook, attitude, satisfaction, and confidence that employees feel at work. When employees are positive about their work environment and believe they can meet their most important career and vocational needs at work, employee morale is positive or high.

Employee Commitment: Commitment is the bond employees experience with their organization. Employees who are committed to their organization generally feel a connection with their organization, feel that they fit in, and feel that they understand the goals of the organization. The added value of such employees is that they tend to be more determined in their work show relatively high productivity and are more proactive in offering their support.

Employee commitment is the psychological attachment and the resulting loyalty of an employee to an organization. 

Employee Engagement: this is defined is defined as one who is fully absorbed by and enthusiastic about their work and so take positive actions to further the organizations reputation and interests. An engaged employee has a positive attitude towards the organization and its values.  

Employee creativity: this is the ability of employees to perceive the world in a new way and solve problems differently, and also to find hidden patterns in other to generate solution or utilize opportunity.   

Job Security: it is the state of knowing that one’s job is secure and that one is unlikely to be dismissed or made redundant.  It is also the presumption or confidence of an employee that he will not lose his current job he/she is holding

It is an assurance that an individual will keep his or her job without the risk of becoming unemployed

Training and development: this activity organized by the organization in other to improve and develop the skills of the employees in other to boost their performance. Also activities to help employee tackle certain technical assignments or tasks.

Financial benefits: this include the basic salaries and bonuses that the organization has provided for the employees after they have performed a particular task being given. It also consists of incentive. For examples a manager has a task for the employees and he promises them that whoever achieves the task first would be rewarded with a certain amount of money this would motivate the employees and make them work harder and faster.

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