AN ASSESSMENT OF THE IMPACT OF MOTIVATION ON EMPLOYEE’S PERFORMANCE

INTRODUCTION

Every outfit with a propensity for growth and advancement knows the importance of motivating their staff. Employee motivation has been established as one key factor for maximizing the performance of workers and enhancing their productivity (Ekundayo, 2018, Waiyaki, 2017; Tršková, 2016; Robescu, & Iancu, 2016; Richard, 2014; Kian & Yusoff, 2014; Muogbo, 2013). Thus, many organizations have examined this construct in relation to the performance output of their employees (Mohamud, Ibrahim, & Hussein, (2017; Nduka, 2016). Employee motivation is a measure of what drives an employee and enhances his productivity. It refers to those factors both internal and external to the employee that can trigger his morale and boosting his output. It is what drives the employee to try to do more, operate at his maximum capacity and produce outstanding results which would normally not be so in the absence of the motivating factor(s). The heterogeneity of the human needs has led to a lot of factors being isolated as motivational. Some of the factors are inherent in the person’s personality while others are external to the person. Whether these motivational factors are intrinsic or extrinsic, the underlying fact remains that there is a basic need in the person crying out to be met. These needs drive the individual to seek some form of satisfaction. Thus, where there lies the propensity of needs being met, he individual gets motivated to achieve, to attain some basic goals in view.This paper will therefore on those factors that are externally driven or controlled that can boost the employee’s performance. Among the various tools that are organizational driven that are capable of motivating employees are promotion, compensation, pay raises and recognition.

Statement of the problem

Employers of labor and management of organizations are aware that employees’ efforts and commitment to organizational goals in terms of their performance are the prerequisites for any organization thriving. Thus, various works have been done in different disciplines in order to understand the entity called a human being and the factors that drive him (Penney, David & Witt, 2011). Organizational leaders and management teams are interested in inspiring their workers to maximum level of work performance because of the benefits that accrue to the organization from such endeavors. Several researches have established a proportional relationship between motivation and performance (Ekundayo, 2018; Olawumi, 2013; Obikeze, 2012) in organizations and elsewhere (Bao & Nizam, 2015; Kian & Yusoff, 2014; Dobre, 2013; Ayam, Kusi-Appiah, Nyamekye, Kyei-Addae, & Amoah, 2012). Motivation being a complexity of psychological factors has been researched more than any other known factor in organizations. A lot of researches have been focused on intrinsic and extrinsic motivations (Ekundayo, 2018; Olawumi, 2013; Obikeze, 2012) in organizations and elsewhere (Bao & Nizam, 2015; Kian & Yusoff, 2014; Dobre, 2013; Ayam et al., 2012). A lot of these works have related motivation with performance. Empirical literature has also established significant relationships/effects between motivation and performance using different motivational factors in different profit making and non-profit making organizations in different parts of the world (Amoatemaa, & Kyeremeh, 2016; Aamir, Jehanzeb, Rasheed & Malik, 2012; Eshun & Duah, 2011). Thus, it is from this premise the researcher decidedly took the impetus to conduct a research in Total Nigeria Ltd. to ascertain if the motivational tools used by the company had effects on the performance of the employees.

Objectives of the study

The more specific objectives of the study were to;

1. examine the effect of promotion on the performance of employees of Total Nig. Ltd.

2. examine the effect of recognition on the performance of employees of Total Nig. Ltd.

3. ascertain the effect of pay raise on the performance of employees of Total Nig. Ltd.

4. ascertain the effect of compensation on the performance of employees of Total Nig. Ltd.

Research questions

1. What is the effect of promotion on the performance of employees of Total Nig. Ltd.?

2. What is the effect of recognition on the performance of employees of Total Nig. Ltd?

3. What is the effect of pay raise on the performance of employees of Total Nig. Ltd.?

4. What is the effect of compensation on the performance of employees of Total Nig. Ltd.?

Research hypotheses

1. There is no significant effect of promotion on the performance of employees of Total Nig. Ltd.

2. There is no significant effect of recognition on the performance of employees of Total Nig. Ltd.

3. There is no significant effects of pay raise on the performance of employees of Total Nig. Ltd.

4. There is no significant effect of compensation on the performance of employees of Total Nig. Ltd.

Scope of the study

This study focused on the regular staff of Total Nigeria Limited. The researcher treated motivational factors with special bias on promotion, recognition, pay raise and compensation as used by Total Nig. Ltd., and their effects on performance with effectiveness (i.e. ability to meet targets and get assign jobs done) as the proxy.

1. REVIEW OF RELATED LITERAURE

Review of theoretical literature

This seminar paper analyses two theories that are related to motivation and performance. These theories are the Herzberg Motivation/Hygiene theory and the Expectancy theory. The Herzberg Motivation/Hygiene Theory The Motivation/Hygiene theory also known as the two-factor theory is credited to Frederick Herzberg who propounded this theory in the mid-20 th century to explain and relate the performance/satisfaction of employees to motivation. The two factors in his theory are the motivating factors known as motivators/satisfiers and the demotivating factors known as hygiene factors/dissatisfiers (Haque, Haque, & Islam, 2014). Herzberg didn’t see these two factors as opposites but explained that satisfiers were actually those factors that could motivate employees and make them happy to work harder like intrinsic feelings and opportunities for learning, recognition, advancement, growth, more responsibility, etc., while hygiene factors such as company policies, quality of supervision, rate of pay, job security, working conditions, etc., though not motivators, needed to be present to sustain employees’ satisfaction in their jobs. Herzberg opined that the absence of hygiene factors would cause dissatisfaction even in the presence of motivators.

The Expectancy Theory

The expectancy theory, also known as the instrumentality theory or valence-instrumentality-expectancy theory (VIE) or the path-goal was popularized by Victor H. Vroom in 1969. The main point of this theory is that employees have certain expectations that the labor or efforts they put into their task must yield a commensurate level of reward which will motivate them to aim for the desired results. When management acts to meet their expectations, they become motivated. Vroom developed three variables which are expectancy, valence and instrumentality. Employees who expect to achieve particular results and have very strong needs for some intrinsic and extrinsic rewards get motivated when their efforts are duly rewarded. This theory lends its value in the fact that employees would put in their best to achieve desired results as significant motivational force from the interaction of these variables exude from them (Haque, Haque, & Islam, 2014).

Review of conceptual literature

Employee Motivation

Shahzadi, Javed, Pirzada, Nasreen, & Khanam (2014), in their definition of performance stated that it is “a reflection of the level of energy, commitment, and creativity that a company's workers bring to their jobs.” Apparently, no single human being can accomplish all his goals without the inputs of other like-minded individuals. Managers on their own cannot achieve organizational goals. They need the contributions of others to get things done. It therefore becomes the task of the manager to adequately motivate his staff, enough to get them to perform at the maximum point that can trigger and activate the actualization of organizational objectives.

According to Mile (2004) cited in Ekundayo, (2018), conditions that influence “the arousal, direction and maintenance of behavior” constitute motivation. Ekundayo (2018) has cited Kreitner (1989) and Higgins (1994) as positing that motivation comprise the psychological process that equips a person’s behavior with the vigor, purpose, passion and direction to want to satisfy a need. Researchers have examined this concept in relation to financial and non-financial incentives each emphasizing the relevant effect on performance. There is no agreement among scholars on which tool motivates a worker more (Mathias and Jackson, 2008). Total Nig. Ltd. motivates its staff using promotion, recognition, pay raise and compensation. For promotion and pay raise, the percentage increment is done based on percentage or category of achievement from the results of their staff performance appraisal. Normally, results are classified as “Top; Upper middle; Middle; Lower Middle; and Fairly satisfactory”.

Promotion as a motivational tool

Promotion is a form of reward that involves moving an employee from one position to a higher one in the hierarchy of an organization or an actual upward change in employees’ status within an organization (Roszyk-Kowalska & Duda, 2017; Yusof & Tan, 2015). It is the advancement of positions of employees in an organization. They emphasize its importance and effectiveness in motivating employees. Accordingly, Jane, Mike, & Namusonge (2012), opine that promotion, besides enhancing the self-assessment of an employee, serves to satisfy their need for recognition, achievement and advancement, as employees seek to work in jobs that provide opportunities for growth and challenges.

Among the many benefits of promotion are its ability to increase employees’ zeal and passion, enhance performance and individual self-concept. But for promotion to achieve its aim, it must be fair and deem commensurate with the efforts of the employees (Roszyk-Kowalska & Duda, 2017). A well- deserved promotion encourages and challenges both the promoted employee(s) and others while an unjust promotion deters efforts, discourages committed employees, strains relationships within the organization and increases turn over intentions/rate (Roszyk-Kowalska & Duda (2017; Jane, Mike, & Namusonge, 2012). Total Nigeria Ltd carries out its staff promotional activities based on the results of appraisal which are tied to key performance indicators given to employees.

Recognition as a motivational tool

Harrison (2005) defines recognition as “the timely, informal and/or formal acknowledgement of a person’s behavior, effort or business result that supports the organization’s goals and values, and which clearly has been beyond normal expectations”. Recognition is an expression of management appreciation and acknowledgement of employees’ performance, personal dedication and engagement at all times (Nyakundi, Karanja, Charles & Bisobori, 2012). Brun and Dugas (2008), identified key areas for recognition as personal recognition, employee work practice, employee job dedication and results. By giving recognition, management confers on the recognized employees a sense of belonging and boost their morale, loyalty and retention rate (Imran, Ahmad, Nisar & Ahmad, 2014; Danish & Usman, 2010; Brun & Dugas, 2008; Luthans, 2000). Recognition takes several forms such as; notes of appreciation; verbal thank you; periodic public award of certificates/trophies; shopping vouchers; theatre tickets; reserved parking space; dinner; domestic goods and use of some facilities (Grote, 2006; Nolan, 2012; Luthans, 2000).

Pay raise as a motivational tool

A worker is entitled to some form of financial reward for their labor. This reward could be in the forms of wages (hourly payment), salary (monthly payment) or piece rate (payment based on number of items produced within a specified period). Pay raises comprise increase in wage or salary, bonus payments or commission and monetary incentives. Although Lindner (1998), sees monetary incentives as having little value, it is on record that many organizations use it as a way of motivating their employees. (Ude, & Coker, 2012; Eshun & Duah, 2011). Stajkovic and Luthans (2003) have observed that money is a strong basis for meeting people’s needs through the purchasing power it offers. According to these scholars, these payments increase both speed and production level of employees. More so, employees get more motivated when they are granted pay raises periodically either as promotion benefits, length of service to the organization or special recognition of outstanding performance (Cole 1998; Chien-Chung, 2003).

Compensation as a motivational tool

Compensation refers to all forms of reward granted to employees in return for the services they render to the organization (Aamir et al., 2012; Perry, Mesch and Paarlberg, 2006). Scholars note that compensation could be offered as direct payments which take the form of pay raises, bonuses, incentives and commission or indirect payment which include grants, health insurance, pension benefits paid by the employer, free meals, free vehicles, free accommodation, free vacation, special job training, job recognition and opportunities for employee development (Carraher, Gibson & Buckley, 2006; Dessler, 2000; Ajila & Abiola, 2004). The difference between compensation and salaries/wages is that they are given in addition to normal pay (Ivancevich (1998), Armstrong & Murlis (2004), surmise that the ultimate aim of compensation is to provide a balanced reward for the efforts of the employee which in turn motivates them to put their utmost into the job.