THE EFFECT OF EMPLOYEE MOTIVATION ON EMPLOYEE PERFORMANCE IN GLOBACOM LIMITED

ABSTRACT

Motivating employees had become a huge challenge due to the presence and representation of many cultures in the modern working environment in Africa. Most working environments in Africa are diverse and multicultural as a result many employees have a variety of personalities which make them unique. However, this also means they have differing motivating factors and differing needs that propels them to give their best performance at work each day. Therefore, the study examines the effect of employee motivation on organizational productivity of Globacom Limited.

This study adopted a quantitative survey research design in investigating the effects of motivation on organizational productivity. A well- structured self-administered questionnaire was used as the main tool for data collection and was administered to 130 respondents out of which 118 were retrieved and appropriately filled. Data collected were analyzed using descriptive statistics, correlation and multiple regression analysis. From the hypotheses tested, the result indicated among others that there is a significant relationship between employee motivation and organizational productivity

The findings of the study revealed that; financial benefit has positive and significant effects on employee effectiveness in Globacom Limited; there is positive and significant relationship between training and development and employee productivity of staff in Globacom Limited; the finding reveals also that work environment has positive and significant effects on job performance of employees of Globacom Limited; employee motivation has positive and significant effects on organisational productivity of Globacom Limited.

The study concluded that employee motivation significantly affect organisation productivity. The study 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 productivity.

Keywords: Organizational Productivity, Employee Motivation, Financial Benefits,Work Environment,Training and Development,Organizational Effectiveness, Job Performance, Employee Productivity

 

 

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study

Globally, employee performances are critical to the attainment of set organizational goals and objectives in every organization. Consequently, they need to consistently churn out and maintain a high level of performance for the organization to have any chance of achieving success. As such, it is necessary to ensure that the conditions are right for them to produce optimum performances regularly (Sekiguchi, 2013).

More so in Africa, with the level of constraints being faced by an organization in the African business environment being tremendously high it is important that the employee performances are consistently excellent. However, Burton (2012) stated that many managers in business organizations in Africa have complained that employees are displaying poor work attitudes at an alarming rate and are not committed to helping organizations achieve their set goals and objectives.

Particularly in Nigeria, with the level of competition in the business environment, it is important that organizations ensure that their employees are able to give their best performances to help the organization gain an edge over their competitors (Muogbo, 2013). In the telecommunications sector, the performance of employees is even more vital due to the fact that it is a service industry. As such the level of employee performance is critical to organizational sustainability in the telecommunications sector in Nigeria. However, most managers in the telecommunications industry in Nigeria have struggled to motivate their employees to give their best performances consistently.

In the modern day business world, motivating employees to perform at their optimum level has become a huge challenge. According to Kreisman (2002), managers around the world rank motivation of employees as the greatest challenge that confronts them in the instruction of subordinates. This is due to the ever growing diversity of employees in many organizations around the world which means each employee has their peculiar personality, trait and motivational influencing factorsthat makes them perform at their peak. Therefore, the challenge for the Human resource management is to be able to meet each employee at their point of motivational needs in order to coarse maximum performances from their employees on a consistent basis.

Furthermore, in Africa, Shafighi (2013) noted that motivating employees had become a huge challenge due to the presence and representation of many cultures in the modern working environment in Africa. According to Kuvaas and Dysvik (2009), most working environments in Africa are diverse and multicultural as a result many employees have a variety of personalities which make them unique. However, this also means they have differing motivating factors and differing needs that propels them to give their best performance at work each day. Nigeria is not left out particularly in the telecommunications industry, managers have complained that many employees do not have passion and commitment for their jobs due to the fact that they are not motivated (Nkanga, 2018).

For example some companies like Walmart, Google and Virgin ensure that majority of their employees are involved in making important decision as regards the daily operation of their companies (Flint & Vinberg, 2015). Furthermore, companies like Bloomberg allow employees vote on critical decisions before executing them (Fisher, 2013). Also in companies like Apple and Uber, employees are rewarded for attaining set goals and objectives with serves as an incentive to keep giving excellent performances consistently (Mueller, 2017). In addition, Google and Facebook give their employees free breakfast, lunch, and dinner, free health and dental care, free haircuts, free dry cleaning, subsidized massages as part of their salary packages (Lawler, 2017).

According to Robbins and Judge (2017), these motivational techniques are a major part of the reason why companies like Apple, Google, Facebook and Walmart are extremely successful. The co-founder of Google Larry Page has stressed several times that their employee motivational techniques is a strong reason for their success as a company (Marley, 2017). In Nigeria, some new generation companies are following these new trends of employee motivation. For instance, in companies like Jumia, Uber and Konga, employees are given various fringe benefits as part of their salary package including health care coverage, free lunch and subsidized massages. They are also rewarded with financial incentives when they attain their set goals and objectives. This has helped these organizations quickly become established as one of the best places to work in Nigeria (Ojekunle, 2018).

However, the same cannot be said of telecommunications companies in Nigeria as they seem to struggle with the motivation of their employees. Therefore, it is against this backdrop that this study will examine the relationship between employee motivation and employee performance.

1.2  Statement of the Problem

There have been various studies that have been conducted on employee motivation. For instance, Dorgan (2014) studied the relationship between employee motivation and employee productivity in the manufacturing sector. Furthermore, Mueller (2011) studied the use of financial incentives in employee motivation in the Banking industry. Also, Stolovich, Clark and Condly(2012) studied incentivesmotivation and work performances in the education industry. However, there has been a dearth of studies as regards the effect of employee motivation on employee performance especially within the context of the telecommunications industry in Nigeria.

The employees in any organization form the heart and soul of that organization. Hence the way they perform on their jobs has big effect on the performance and sustainability of any organization. Various studies have shown that one of the conditions that influence performances of employees is their motivation (Ackah, 2014; Chandrasekar, 2016; & Haynes, 2016).  Furthermore, Dorgan (2014) noted that specifically in service industries, employees need to be motivated to give their best performances on a consistent basis. However, managers in the telecommunications industry in Nigeria have failed to adequately motivate their employees which have led to poor performance of employees in the telecommunications industry.

 According to Ajayi (2015), the failure of telecommunications companies to adequately motivate their employees has led to the poor performance of employees in recent years. However, according to Nwankwo (2014) the major dilemma faced by human resource managers in the telecommunications industry is determining the methods that best motivate employees to give their best performances.

Ojokuku and Sajuyigbe (2014) opined most telecommunications companies in Nigeria have failed to practice employee participation as an employee motivation strategy which improves the decision making of organizations. However, Rubyustsa (2004) noted that as a result of the lac k of employee participation many employees in the telecommunications sector in Nigeria are disengaged from their organizations.

Furthermore, Nnaji-Ihedinmah and Egbunike (2015), suggested that many telecommunications companies in Nigeria fail to practice the usage of incentives as motivation strategy in a bid toincrease employee productivity. As such he noted that majority employees in the telecommunications sectorare not productive enough to drive a high level of organizational performance on a consistent basis.

Additionally, Chintallo and Mahedo (2013) noted that a good salary structure is a key motivational strategy especially in the telecommunications industry. However, Shafighi (2013) noted that the employthe question of how much is enough is at the fore front of every Human resource discussion in the telecommunications sector in Nigeria. Furthermore, Bello (2016) noted that employees in the telecommunications industry are increasingly becoming disgruntled by their salaries as they are paid relatively low salaries compared to other industries like Oil and Gas & the Information Technology industry. According to Nkanga (2018) this has had a negative effect on the work quality of employees in the telecommunications industry.

1.3 Objectives of the Study

The general aim of the study is to determine the interaction between employee motivation and organizational productivity in the insurance sector. The specific aims of the study are:

  1. To determine the effect of financial benefits on employee effectiveness.
  2. To determine the effect of working environment on job performance.
  3. To determine the relationship between Training and development and employee productivity.
  4. To determine the combined effect of employee motivation on organizational productivity.

1.4  Research Question

The research will seek to answer the following questions:

  1. What effect does financial benefits have on employee effectiveness?
  2. How does working environment affect job performance?
  3. What is the relationship between Training and development and employee productivity?
  4. What is the combined effect of employee motivation on organizational productivity?

1.5       Research Hypotheses

The following hypotheses are formulated for testing:

H0(1):    Financial benefits have no significant effect on employee effectiveness

H0(2):    Working Environment does not significantly affect job performance

H0(3):    There is no significant relationship between Training and development and employee productivity.

1.6 Operationalization of Variables

The variables adopted by this study are: Employee Motivation and Organizational productivity. The study will seek to investigate the impact of Employee Motivation; the independent variable, on the dependent variable; Organizational productivity.

The variables for this research are consequently operationalized as follows: 

Y = f(X)

Y = Organizational Productivity

X = Employee Motivation

where Y = Dependent variable

            X = Independent variable

y = f (x1, x2, x3…xn)

x1= Financial Benefits

x2= Work Environment

x3= Training and Development

y = (y1, y2, y3)

y1= Organizational Effectiveness

y2= Job Performance

y3= Employee Productivity

y= f(x1) __________________ (1)

y = f(x2) __________________ (2)

y = f(x3) __________________ (3)

            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)

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.

 

1.6 Scope of the Study

The study will focus on the effect of employee motivation on employee performance in Globacom Limited. The study will adopt the simple random sampling technique while data will be analysed using the regression analysis. The geographical location of the study will be Globacom Limited, Victoria Island, Lagos. Furthermore, the research will make use of the descriptive survey research design and the population of the study will consist of the employees of Globacom Limited, 1, Mike Adenuga Close, Off Adeola Odeku Street, Victoria Island, Lagos who are 511 in number (Globacom Human Resources, 2018).

1.7 Significance of the Study

The findings of this research is useful to the management of Globacom Limited as it would provide more understanding to the them about the influence of employee motivation and how it could affect the level of performance of the employees. Furthermore, the research work will be useful to the management of Globacomin that it would further enlighten the management on ways in which the staff engagement can be improved upon to achieve their goals and targets.

The research will be beneficial to the telecommunication industries as it will help them identify the appropriate motivational strategies that suit the telecommunications industry.  Furthermore, the study will be significant to the telecommunication industry as it will show the need for the employee motivational strategies to be flexible in order to improve the employees’ engagement and overall performance.

Furthermore, the study will be significant in showing the government the importance of establishing regulations that protect employees’ interest in Nigeria. Furthermore, it will be useful to the government in showing how motivational practices can improve employee performance in the public sector.

This study will contribute to the expansion of existing knowledge on this area of study. It would also provide useful starting/reference points for future researchers and a sound basis for intellectual exercise.

This research is also pertinent to society institutions as it will enhance their knowledge on employee motivation and employee performance.

1.8 Operationalization of Variables

The variables adopted by this study are: Employee Motivation; the independent variable, on 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 (x1, x2, x3…xn)

x1= Employee Participation

x2= Incentives

x3= Salary Structure

y = (y1, y2, y3)

y1= Employee engagement

y2 = Employee productivity

y3 = Employee Work Quality

The functional relationships are:

y1= f(x1) __________________ (1)

y2 = f(x2) __________________ (2)

y3= f(x3) __________________ (3)

 The regression equations to explain the effects of the Independent variables on the dependent variables are as follows:

y1 = α0 + β1x1 + μ…. (1)

y2 = α0 + β2x2 + μ…. (2)

y3 = α0 + β3x3 + μ…. (3)

Where, α is the constant of the equation, β1 is the coefficient of x1 which represents employee effectiveness, β2 is the coefficient of x2 which represents employee productivity, and β3 is the coefficient of x3 which represents employee work quality.

1.9 Definition of Operational Terms

Employee Motivation: Employee motivation is the level of energy, commitment, and creativity that a company's workers bring to their jobs (Hershey & Blanchard, 2017). 

Employment Performance: Employee Performance Management is about aligning the organisational objectives with the employees' agreed measures, skills, competency requirements, development plans and the delivery of results (Hershey & Blanchard, 2017).

Intrinsic Motivation: Intrinsic motivation refers to behavior that is driven by internal rewards. In other words, the motivation to engage in a behavior arises from within the individual because it is naturally satisfying to you (Chaudhary & Sharma, 2012).

Extrinsic Motivation: Extrinsic motivation refers to behavior that is driven by external rewards such as money, fame, grades, and praise (Hershey & Blanchard, 2017).

Employee Participation: It involves management actively encouraging staff to assist in running and improving business processes and operations(Hershey & Blanchard, 2017).

Rewards and Incentives: Rewards are the items, gift cards, cash, or perks such as time off or discounts earned through receiving recognition or achieving your goals within an incentive program. Incentives always have a time period, a measurable action or goal, and a reward associated with them (Burton, 2012).

Salary: A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis(Hershey & Blanchard, 2017).

Employee Work Quality: This refers to the quality of the output produced by an employee within an organization (Hershey & Blanchard, 2017).

1.10 Historical Background

The case study chosen for this study is Globacom Nigeria Limited. Globacom was chosen as a case study because it is prominent company in the telecommunications sector in Nigeria and it is one of the companies that epitomizes the impact that employee motivation can have on employee performance.

Globacom Limited (or GLO) is a Nigerian multinational telecommunications company headquartered in Lagos. GLO is a privately owned telecommunications carrier that started operations on 29 August 2003. It currently operates in four countries in West Africa, namely Nigeria, Republic of Benin, Ghana and Côte d'Ivoire.As of June 2009, the company has employed more than 2,500 people worldwide.

GLO has an estimate of over 34 million subscribers (April 2016) of which 26 million are internet subscribers and it is a 100 percent Nigerian owned company (Nkanga, 2018).

In 2011, GLO became the first telecommunication company to build an $800 million high-capacity fibre-optic cable known as Glo-1, a submarine cable from the United Kingdom to Nigeria. It is the first successful submarine cable from the United Kingdom to Nigeria (Bello, 2018).

Globacom has the following range of products; Glo mobile, Glo Broad Access, Glo Gateway and Glo-1 coverage

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