The main purpose of this study was to examine the effect of motivation on the performance of employees using the case of Nestle Nigeria Plc. Motivation plays an integral role in all organizations, whether private or public. In order for organizations to achieve their objectives, they must motivate their employees to work towards them. It is easier for an organization to achieve its goals when its employees are motivated towards their personal, professional and organizational objectives. The study adopted quantitative research design. Simple random sampling technique was used to select the sample for the study. Data for the study were collected through the use of questionnaire from the sample respondents. The data gathered were analysed through the use of descriptive statistics of mean and standard deviation and the inferential statistics were utilized to test the hypothesis at 5% level of significant. The finding of the study reveals that employee motivation has positive and significant effect on employee performance. The study recommends among others that the institution should include mentorship and regular training as a way of keeping the workforce motivated and accountable to their goals.
This chapter aims at providing sufficient information for better understanding of the study. The chapter provides the background information, statement of the problem, research objectives and research questions that underpin the study, significance, scope and limitations of the study.
1.1. Background of the Study
Globally, the success of any facet of the business can almost be traced to motivated employees. This is especially true and important in today's turbulent and often chaotic environment where commercial success depends on employees using their full talents. The ability to attract, retain and develop talented employees is a key feature of a successful business.
People are an organization's most valuable asset and this is especially true in relatively low-tech labour intensive industries such as construction, but again, people also represent the most difficult resource for organizations to manage. Unlike physical assets, people have their own individual needs which must be met and habits which must be managed if they are to contribute to organizational growth and development. They are individuals who bring their own perspectives, values and attributes to organizational life, and when managed effectively can bring considerable benefits to organizations (Mullins, 2005). However, when managed poorly they have the potential to severely limit organizational growth and threaten the viability of a business. In any company, whether it is a construction company or any other trade, its core is its employees; their presence and contribution is very important in such a way that they determine if the company is going to be a success or a failure. A company may have good manager, a good vision and a good goal; however, if it neglects its employees, that company is practically in turmoil.
Unsatisfied employees produce unsatisfactory results, therefore, it is very vital for top management to take care of their employees to ensure that they are satisfied in their jobs; when they are satisfied; they strive for the company's goals and aim (Latham, 1994; Egan, 1998). The success of any organization depends on the ability of managers to provide a motivating environment for its employees. The challenge for managers today is to keep the staff motivated and performing well in the workplace. The manager has to know the behaviour of each employee and what might motivate each one individually. By understanding employees' needs, managers can understand what rewards to use to motivate them. The goal of most companies is to benefit from positive employee behaviour in the workplace by promoting a win–win situation for both the company and workers.
Every organization is concerned with what should be done to achieve sustained high levels of performance through its workforce. This means giving close attention to how individuals can best be motivated through means such as financial benefit, rewards system, performance feedback, training and development, etc. and the organization context within which they carry out the work (Armstrong, 2006). The study of motivation is concerned basically with why people behave in a certain way. In general it can be described as the direction and persistence of action. It is concerned with why people choose a particular course of action in preference to others, and why they continue with chosen action, often over a long period, and in the face of difficulties and problems (Mullins, 2005).
Motivation can be specified as a management process, which encourages people to work better for the overall benefit of the organization, by providing them motives, which are based on their unfulfilled needs. The matter arising is: “why managers need to motivate employees?” (Herzberg, 1959). According to Smith (1994) it is because of the survival of the company. Amabile (1993) contributed to this statement by arguing that it is necessary for managers and leaders of organization to learn to understand and effectively deal with their employee’s motivation; since motivated employees’ are the pillars of successful organization in present and future century. She also indicates that unmotivated employees may probably contribute little effort in their jobs, stay away from workplace as much as possible, go out of the organization and make low quality of work. When employees are well motivated, they help the organization to grow and survive in a fast changing workplaces (Lindner 1998). Lindner also indicates that the most difficult role of managers is to motivate employee, because what motivates employees changes always (Bowen and Radhakrishna 1991).
The term motivation was developed in the early 1880’s, prior to that time, the term “will” was used by well-known philosophers as well as notable social theorists when talking motivated human behaviours (Forgas, Williams and Laham 2005). According to them motivation is believed to be; an entity that compelled one to action. Recently, many researchers has offered unique definitions of motivation.
It has been defined as; the psychological process that gives behaviour purpose and direction (Kreitner 1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian & Lindner 1995); an internal drive to satisfy an unsatisfied need (Higgins 1994). It is apparent that managers need to motivate employees if they want to get the necessary results for the organization.
An effective performance management action is an important tool for employee motivation for optimal performance. However, it is not an enough condition for effective performance management. The most important issue with any performance management system is how critically it is taken and how devotedly it is used by managers and employees. (Pulakos 2009) Performance management is all about perfection, synchronizing, upgrading to create value for and from customer with the result of economic value creation to stockholders and owners. The expansion of performance management is clearly very large, which is why performance management must be viewed within an enterprise as a tool to improve on employee motivation for high performance. (Cokins 2009) Efficient management of performance requires a strong apprehension of the performance domain. That is, apprehending the obligation and projects that are part of the job description within a company or organization. Once you have a full skill of what the job requires, you have the basis for assessing and enhancing performance. This is the foundation for assessing and improving performance within a company. When this is lacking, the outcome is a missing link in evaluating employee performance and the possibility of improving on the employee performance within the organization.
The relationship among employee motivation and job performance has been studied in the past (Vroom, 1964). But high statistical relationships between the two were not instituted. Notwithstanding, later on research resolved that employee motivation and job performance are indeed mutually related. This correlation is studied in this research and the objective is to render useful information to managers on how employees’ performance can be increased by intrinsically or extrinsically motivating them.
1.2 Statement of the Problems
Employee motivation and employee performance has been the focus of intensive research effort in recent times. How well an organization motivates its workers in order to achieve their mission and vision is of paramount concern. Employees in both public and private sector organization are becoming increasingly aware that motivation increases performance (Lienert, 2006).
James (2014) cited three warning signs of a demotivated workforce which includes poor workplace condition, slipping job standards and decreased productivity which leads to a low performance. 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. It has been observed that most organizations have failed to recognize the importance of motivation as a concept be it intrinsic such as financial benefit, reward system, performance feedback, etc. or extrinsic such as training and development, compensation, promotion amongst other factors that enhance or improve employee performance as well as organizational performance levels.
This in turn has continued to represent major managerial concerns for decades as employee performance 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 employee performance which ranges from lack of infrastructure, leadership styles, poor strategic and organizational culture amongst others. Contemporary investigations that connects the concept of employee motivation and employee performance 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 financial benefit, reward system, performance feedback, and training and development can enhance an employee’s level of effectiveness and efficiency in the workplace. This is because giving financial rewards to an employee for job accomplishment goes a long way in motivating such an employee; or providing a reward system where employees go for training and development program will enhance employee performance levels. Employees who enjoy such motivational factors 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 ensure that financial benefit, reward system, performance feedback and training and development are part of their motivational tools to their employees in order to enhance their performance level (Jobowo, 2007). Therefore an organization’s best strategy is to ensure that employees are well motivated in order to allow their employee to meet or exceed expectations as well as offer a range of motivators to improve enthusiasm, performance and productivity levels.
Finding ways to motivate employees can be a challenging prospect for employers, but it is also a necessary component of any successful organization. When employees have an increased sense of motivation, they will often have greater job satisfaction and improved work performance and ultimately, when employees are highly productive, the entire organization reaps the rewards. This study therefore, sought to establish employee motivation and employee performance in Nestle Nigeria PLC, Lagos State.
1.3 Objectives of the Study
The primary objective of this study is to acquire a deeper comprehension of employee motivation on employee performance in Nestle Nigeria PLC, Lagos State. This research therefore seeks to:
i. Assess the influence of financial benefit on employee commitment in Nestle Nigeria PLC.
ii. Examine the influence of reward system on employee productivity in Nestle Nigeria PLC.
iii. Determine the effect of performance feedback on employee effectiveness in Nestle Nigeria PLC.
iv. Investigate the influence of training and development on employee competency in Nestle Nigeria PLC.
1.4 Research Questions
Based on the problem statement and the aim of this study, the following research questions are posed:
i. To what extent does financial benefit have on employee commitment in Nestle Nigeria PLC?
iii. What is the effect of reward system on employee productivity in Nestle Nigeria PLC?
iii. What is the influence of performance feedback on employee effectiveness in Nestle Nigeria PLC?
iv. To what effect is training and development on employee competency in Nestle Nigeria PLC?
1.5 Research Hypotheses
Based on the objectives, the following hypotheses were developed in order to make valid conclusions on the subject matter. The hypotheses are expressed in their null form:
H01: Financial benefit has no significant influence on employee commitment in Nestle Nigeria PLC.
H02: Reward system has no significant influence on employee productivity in Nestle Nigeria PLC.
H03: Performance feedback has no significant influence on employee effectiveness in Nestle Nigeria PLC.
H04: Training and Development has no significant influence on employee competency in Nestle Nigeria PLC.
1.6. Operationalization of the Variables
The dependent variable is employee performance, represented by employee commitment (EC), Employee Productivity (EP), Employee Effectiveness (EE), and Employee Competency (EC). On the other hand, employee motivation, being the independent variable, is proxied by Financial benefit (FB), Reward System (RS), Performance Feedback (PF), and Training and Development (TD).
Y = f (y1, y2, y3, y4)
Y = Employee Performance (EP).
y1 = Employee commitment (EC).
y2 = Employee productivity (EP).
y3 = Employee effectiveness (EE).
y4 = Employee competency (EC)
X= f ( x1, x2, x3, x4)
X= Employee Motivation (EM).
x1= Financial Benefit (FB).
x2 = Reward System (RS)
x3 = Performance Feedback (PF).
x4 = Training and Development (TD)
The four specific objectives are operationally expressed as:
Assess the influence of financial benefit on employee commitment in Nestle Nigeria PLC.
y1= f (x1)
y1= b0 + b1x1 + u
Examine the influence of reward system on employee productivity in Nestle Nigeria PLC.
y2= f (x2)
y2= b0 + b1x2 + u
Determine the effect of performance feedback on employee effectiveness in Nestle Nigeria PLC.
y3= f (x3)
y3= b0 + b1x3 + u
Investigate the influence of training and development on employee competency in Nestle Nigeria PLC.
Y4= f (x4)
Y4= b0 + b1x4 + u
1.7. Scope of the Study
The scope of this study is limited to Nestle Nigeria PLC, Lagos State, Nigeria. This study examines employee motivation and employee performance and its resulting effects on the organization performance. The organization is being considered because research has not been done on this area prior to now. Nestle Nigeria PLC, Lagos State was selected because it is one of the very fast rising fast consuming good producing company in the State.
The study is confined to the analysis of the staff motivational measures currently being practiced in Nestle Nigeria PLC, Lagos State and how these measures have impacted on their performance. These include: Financial benefit, reward system, performance feedback and training and development. The study is anchored on the Process Theories of Motivation, Need Theories, Abraham Maslow Theory, Alderfer Modified Need Hierarchy Theory, and Herzberg and his Two-Factor Theory.
1.8. Significance of the Study
The findings from this study will help to highlight those areas where there are problems among employees and thus will be of great benefit to the management of university, government and society at large. The results of this study would hopefully be significant in the sense that it would enable both the management and the labour union to better understand how the various incentive packages could be harnessed to inspire staff to increase and sustain performance. However, this study will be significant to the following;
Management: It will assist management in designing and putting in place together welfare incentives for the workforce, enable the organization identifies various types of needs and expectation of people at work, outline different approach to work motivation and explain the meaning and underlying concept of motivation.
University: It is of significance to the university in a way that the university management would have a structured and policy in place that will be of benefit to both university management and employees betterment.
Government: This study would be of immense benefit to the government when making policies, so they can formulate policy that will be of positive interest to employers of labours in organizations, and also labour union officials and representative at the negotiation meeting will find it useful when putting together their “basket of needs”.
Society: It will enlighten the general society on why employee motivation is a prerequisite for any organization that wants to achieve performance.
1.9. Historical Background
Nestle Nigeria PLC - Nestlé Nigeria PLC is one of the largest food and beverage companies in Africa. For over 57 years, Nestlé has been delighting consumers in Nigeria with high quality nutritious food products.
With a staff strength of over 2,300 direct employees, 3 manufacturing sites, 8 branch offices and a head office located in Lagos, the company produces and markets several iconic brands including Maggi, Milo, Golden Morn, Nescafé and Nestlé Pure Life.
Nestle's purpose is enhancing quality of life and contributing to a healthier future. The company contributes to society while ensuring the long-term success of its business.
Every day, we touch millions of lives across our business, from the farmer who produces the grains to the family who enjoys the nutritious food in their home. (www.nestle-cwa.com)
1.10. Definition of Terms
Motivation: This is the process of arousing behaviour, sustaining behaviour in progress and channeling behaviour into a specific course of action.
Performance: the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost and speed.
Employee: a person employed for wages or salary, especially at non-executive level.
Training and Development: is a subsystem of an organization which emphasize on the improvement of the performance of individuals and groups.
Employee Performance: is defined as the outcome or contribution of employees to make them attain goals while performance may be used to define what an organization has accomplished with respect to the process, results, relevance and success. Performance could also be defined as the achievement of specific tasks measured against predetermined or identified standards of accuracy, completeness, cost and speed. Employee performance can be manifested in improvement in production, easiness in using the new technology, highly motivated workers.