Effect of Motivation on the Productivity of Employees in the Nigerian Insurance Industry

Effect of Motivation on the Productivity of Employees in the Nigerian Insurance Industry

Chapter One

OBJECTIVES OF THE STUDY:

The major aim of this study is to examine the effect of motivation on the productivity of insurance companies’ employees. Other specific objectives include;

1. To assess the effect of motivation on the productivity of employees of insurance companies.
2. To examine the effect of the reward system on employee performance.
3. To determine the effect of job incentives on workers’ commitment to their organizations.
4. To examine the relationship between motivation and organizational profitability.
5. To find out the effect of employee participation in decision-making on organizational efficiency.
6. To provide plausible recommendations on the effect of motivation on the productivity of employees of insurance companies.

CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

CONCEPTUAL FRAMEWORK

Motivation

What is Motivation? James and Stoner (2009) Suggested that motivation can be seen as those psychological characteristics of humans that contribute to an individual’s level of commitment toward a goal. It comprises several elements that cause, direct, and sustain an individual’s behavior in a specific way. He went further to say that motivation is one of several elements that affect an organization’s productivity and performance levels respectively. Jennifer and George (2006) defined motivation as a mental force that governs the direction of an individual’s behavior in an organization, an individual’s level of effort, and an individual’s level of determination when faced with obstacles. In addition, she stated that even with appropriate strategies and administrative structures in place, an organization can only be productive if its employees are sufficiently motivated to perform at higher levels. Hellriegel (1996) viewed motivation as any impact that brings out, guides, or sustains a person’s goal-directed behaviors. Ivancevich (1994) Suggested that motivation refers to those set of forces that trigger certain behaviors and regulate their form, course, intensity, and duration. Obikeze (2005) viewed motivation as the process of guiding an employee’s actions toward a particular end via the manipulation of rewards. Kreitner (1995) described motivation as the mental process giving behaviors the willpower, drive, and tendency to act in a certain way to attain certain unsatisfied needs. Young (2000) also suggested that motivation could be defined as forces within employees that justify the levels, directions, and resolution as regards efforts they expend in the workplace. George and Jones (2012) termed work motivation as self-induced forces that control the directions and behavioral patterns of the workforce in an organization taking into account their levels of commitment and enthusiasm towards the successful accomplishment of set goals. Berelson and Staines (2003) opined that motivation is an inner state that inspires actions as well as directs and channels behavior toward a goal. Guay, Chanal, Ratelle, Marsh, Larose & Boivin (2010) argued that motivation deals with “the motives underlying behaviors”. In addition, (Broussard & Garrison, 2004) defined motivation simply as “those elements that push an individual to act or not to act”. Beach (2005) described motivation as the individual’s readiness to expend energy to accomplish set goals. He thinks that motivation relates to a person’s enthusiasm for specific patterns or behaviors. Also, he further stated that the ambitions, needs, and wants of a person may influence, direct, and control their attitude. Davies (2005) suggested that the concept of motivation entails what goes on inside a person that results in certain behaviors. As regards organizations, he stresses that an absence of motivation is reason enough for a worker not to attain gratification from the work. Agbeto (2002) also stated that motivation is anything that moves an individual towards a specific goal. Furthermore, Koontz (2008) argued that motivation as a term applies to the drive, yearnings, needs, and wishes of a person. From the above definitions, it can be said that motivation as a whole, is more or less fundamentally concerned with those forces or elements that trigger certain human actions or behaviors. It can also be deduced that creating a workplace environment in which adequate motivation is sustained has a positive impact on employee performance. This is because employee motivation is the core of the field of an organization’s behavior and a high level of motivation encourages employees to be highly productive and perform better at their jobs. However, creating such an environment still poses a challenge to managers and organizations as a whole. This problem may be based on the fact that an organization’s productivity levels increase as the level of employee motivation rises.

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CHAPTER THREE

RESEARCH METHODOLOGY

INTRODUCTION

In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.

RESEARCH DESIGN

Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated logically to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinions and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behavior, surveys are therefore frequently used in social and psychological research.

POPULATION OF THE STUDY

According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex, or specific interests. The emphasis on the study population is that it constitutes individuals or elements that are homogeneous in description.

This study was carried out to examine the effect of Motivation on the Productivity of Employees of Insurance Companies using AIICO Insurance Nig Plc. as a case study. Hence, the staff of AIICO Insurance Nig Plc. form the population of the study.

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

INTRODUCTION

This chapter presents the analysis of data derived through the questionnaire and key informant interviews administered to the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as the interpretation of the information gathered. A total of two hundred and seventy (270) questionnaires were administered to respondents of which two hundred and fifty (250) were returned and validated. This was due to irregular, incomplete, and inappropriate responses to some questionnaires. For this study, a total of  250 was validated for the analysis.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:

Introduction

This chapter summarizes the findings on the effect of motivation on the productivity of employees of insurance companies using AIICO Insurance Nig Plc. as case study. The chapter consists of summary of the study, conclusions, and recommendations.

 Summary of the Study

In this study, our focus was to examine the effect of motivation on the productivity of employees of insurance companies using AIICO Insurance Nig Plc. The study is was specifically focused on assessing the effect of motivation on the productivity of employees of insurance companies, examining the effect of reward system on employee performance, determining the effect of job incentives on the commitment of workers to their organisations, examining the relationship between motivation and organizational profitability, finding out the effect of employees participation in decision making on organizational efficiency and providing plausible recommendations on the effect of motivation on the productivity of employees of insurance companies.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 250 responses were validated from the enrolled participants where all respondent are staff  of AIICO Insurance Lagos State.

Conclusions

With regard to the findings of the study, the following conclusions emerged.

1. Motivation has effect on the productivity of employees of insurance companies.
2. Reward system has effect on employee performance.
3. Job incentives correlates with  commitment of workers to the organisations as it; increases employees productivity, creates a culture of high performance by employees, motivates employees to go extra miles, encourages team work/collaboration among staff and  increases employees turnover
4. Motivation has effect on organizational profitability.
5. The participation of employees in decision making gives the employees the privilege to voice their opinion, bounds the relationship among employees and employers, enables the knowledge of the employees to count, resolves conflicts and strike action by employees and  increases employees turnover.
6. There is a significant relationship between motivation and productivity of employees in insurance companies.
7. There is a significant relationship between reward system and employee  performance in AIICO Insurance Nig Plc.
8. There is a significant relationship between job incentives and  commitment in AIICO Insurance Nig. PLC.

Recommendation

Based on the findings the researcher recommends that;

1. Management should be concerned with the welfare of the workers and their families. This will give the workers a sense of belonging and being appreciated will make them to be focused and completely committed to their work.
2. Trust and respect should be accorded staff to create a harmonious relationship amongst them to foster collaboration.
3. Staff development to enhance performance and promote self fulfilment and actualisation should be encouraged as a matter of deliberate policy.
4. Management should do well to adopt on the spot praise as a medium for recognition and appreciation for hard work for promptness equal effectiveness. ·
5. Management should set career advancement paths within the organisation to promote from within rather look out for talent outside. ·
6. Job security should be of top priority to management to ensure the retention of their hardworking and experience employees. ·
7. There should be good interpersonal relationship between management and staff to facilitate communication and the lending of assistance to colleagues who may need on.
8. Management should monitor closely the attitude, lifestyle and leadership qualities of employees in the organisation who for and can handle additional responsibilities be encouraged to promote increased performance and efficiency. In doing so should identify who they are and match responsibilities to their strengths and desires. ·
9. The management should do everything within their capacity to create a better good working environment and conducive atmosphere that can promote efficiency and enhance performance.

REFERENCE

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• Akerele, A. (2001). Role of labour in productivity. Nigeria Journal of Industrial Relation, 5, 50-58.
• Akinyele S. T. (2010). The influence of work environment on workers productivity: A case study of selected oil and gas industry in Lagos, Nigeria. African Journal on Business Management 4(3), 299–307.
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• Aluko, N. (November, 2014). 6 Challenges Facing Manufacturing Companies in Nigeria and Ghana. Kpakpakpa.com. Retrieved 13th January, 2017 from http://kpakpakpa.com/spotlight/challenges-facing-manufacturing-in-nigeria-ghana/

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