The Impact of Motivation on Employee Productivity
CHAPTER ONE
Objectives of the Study
The General Objective of the study is to examine the impact of motivation on organization productivity in the case of Universal insurance company limited. In addition to the main objective, the study is carried out to achieve the following specific objectives:
- To find out the motivational incentive s that affect employee productivity in Universal insurance company limited?
- To determine the relationship between employee motivation and productivity?
- To find out the current employees’ level of motivation?
CHAPTER TWO
LITERATURE REVIEW
MOTIVATION – AN OVERVIEW
Given the given emphasis in recent years on people as a key source of competitive advantage, it is not surprising to see corporate initiatives introduced to “buy” employee commitment. (Mick Marchington and Arden Wilkson, 2008).To motivate is to create a desire or willingness to perform in the manner in which managers want to get the work done which is distinct from the capacity to work. Mullins (1996) states that „‟the underlying concept of motivation is some driving force within individuals by which they attempt to achieve some goals in order to fulfill certain needs‟‟. It is a feeling or an urge to do or not to do a thing to fulfill certain need. It is important for management to know and understand what motivates people as it affect work productivity, recruitment and retention. Also employees must think through what expectations they have of work and whether they are happy with their lot.
DEFINITIONS
The term motivation was originally derived from the Latin word “Movere” which means, “to move”.
Kreitner (2001) defines motivation as the psychological process that gives behavior purpose and direction.
Robert Kreitner and Ageloo Kinicki (2001) explain motivation as those psychological processes that cause the arousal, direction and persistence of voluntary actions that are goal directed.
A motive is a reason for doing something. Motivation is concerned with the factors that influence people to behave in certain ways. The three components of motivation as identifed by Arnold et al (1991) are:
Direction: What the person is trying to do.
Effort: How hard a person is trying.
Persistence: How long a person keeps on trying. (Armstrong, 2006)
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
In defining research design, Odo (1992:43), stated that research design implies outlining the name of equipment and other materials the research intends using, applying some to successfully execute the practical aspect of the research study.
A descriptive survey method was used for this study. It is important to determine the method and procedure adopted in this research report since it gives the reader background information on how to evaluate the findings and conclusion.
Population of the Study
The researcher has chosen Universal insurance company limited as the studied population in order to find a possible solution to which include top and junior staffs.
CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF RESULTS
Respondents Demographic Characteristics
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary of Major Findings
l The study was carried out solely to identify the impact of motivation on employees’ job productivity in Universal insurance company limited. Accordingly, the major findings were derived from data discussion, analysis and interpretations as follows.
l The study clearly depicted that the working environment of the company is conducive and suitable. Majority of the employee’s agreed on its conduciveness, suitability but regarding with providing the materials and equipment’s that are need for the job, the company is very poor in supplying those materials timely 48.11% of employees were not satisfied with the availability of materials.
l Almost all the respondents believe that the reward and incentive system is not based on productivity and they are highly discouraged by the system. This implies that there is biased system in giving rewards to employees. Majority of the employees 42.2% believed that rewards are not given timely.
l When employees get recognized and appreciated, they do their best to prove the skill, talents and abilities they have However, All employees’ replied that there is no recognition and appreciation from their boss.
l The majority (81.80%) of employees disagreed that there is unsatisfactory relationship among employees and managers of the company, and also the relationship between employees is also discouraging, 34% of them claim that the relationship is poor. 52.6 % of the respondents indicated that there is no complaint handling mechanism in the company.
Conclusions
Based on the findings, working environment is positively related to employee productivity, the researcher concludes that there in fact exists positive relationship between the two. This demonstrates that when working environment is not conducive employee’s motivation to perform the job will reduce. There is a negative and insignificant relationship between Job Security and employee Productivity. Employees are not certain that job security contributed to their productivity.
There is positive and significant relationship between salary and employee productivity. However, employees were not motivated by the attractiveness of the salary because of these reason there is high turnover of bus drivers and fare collectors to other transport organizations. The researcher concluded that since the reward and incentive system of the company is not motivating to employees, the employees were forced to search a better opportunity so there is manpower turnover in the company especially bus drivers. Additionally, the reward is not given on time; this negatively affected the productivity of the employees. Employees need and want to be appreciated for the work that they do. If they do not feel managers or others are recognizing their contributions, then employees become dissatisfied and unmotivated. Employees will normally put more effort than expected if someone will notice their effort.
Recommendations
Based on the literature review, interviews and analysis done and the discussion it is clear that employees are not motivated and hence are not performing well which affecting business productivity and productivity.
Management communication motivational incentive was considered as one of the most important factors influencing employee productivity. However, employee of the company were found less motivated in terms of this motivational incentive. The company can improve the communication by conducting meetings, productivity reviews and feedback on organization productivity. Communication can be improved through productivity management. Productivity Management is not only for measurement of productivity but provides feedback to the employees. Recognitions either verbally or formally will enhance the self-esteem of the employee. Therefore, Managers should work hard in maintaining the level of satisfaction of employees by using recognition and mechanisms’ to motivate employees.
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