EFFECT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY IN NIGERIA BOTTLING COMPANY
ABSTRACT
The issue of motivation has continually posed a big challenge to business organizations around the globe especially in the manufacturing industries where high levels of productivity affect or play a major role in determining the profitability, growth, development, stability and future success of an organization. Therefore an organization in a bid to achieve success in maintaining a competitive edge over its rival as well as avoid a steady decline in the productivity levels of its employees must ensure members of the workforce are adequately motivated. This study examines the effect of employee motivation on organizational productivity. The study adopted a descriptive and causal research design as well as the survey method in investigating the effects of employee motivation on organizational productivity levels. The entire population of the study was 276 as a result the sample size determined is 163. A well-structured self-administered questionnaire was used as the main tool for data collection and was administered to 163 respondents out of which 140 were retrieved and appropriately filled. Data were analyzed using multiple regression analysis. From the hypotheses tested, the result indicated that there is a positive and significant effect of employee motivation on organizational productivity. The study concluded that although both intrinsic and extrinsic factors are significant predictors of productivity, extrinsic factors appear to be more significant or valued by respondents in the organization used as a study. Furthermore this study also 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 performance and productivity levels.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The constant changes occurring in the world today, especially with regards to technology and innovation in services call for organization to reassess the manner in which they handle their employees. The greatest interest of every organization is to achieve its goals with every change they encounter. The achievement of organizational goals to a greatest extent is dependent on various resources, and human resource is one major resource which is directly related to the achievement of an organizational goals. Hence, the performance of employees is considered very significant in the realization of organizational goals as well as its productivity. [Harmon ,2007]. The staff of any industry are key resources to that industry’s success. Human asset in the 21st century is considered the most important asset of any company (Hafiza, Shah, Jamsheed & Zaman, 2011). The human resource is the most vital of all resources among other factors of production and the human capital is what distinguishes one organization from the other (Maimuna & Rashad, 2013).
Employee performance is a function of ability, effort, skill, environment, and motivation.Motivation is the process that energizes, maintain, and direct behavior of an individual towards goals of an organization. This process regulates behavior by initiating it when it is needed or fitting and termination when the goal is reached. It is worth noting that, the presence of ability, skill and effort without motivation might not yield high level of performance. Hence motivation is essential for employee performance. Motivation, as a process, started with a need in human being which creates a vacuum in a person. In an attempt to fill the vacuum an internal driving force is generated which starts and sustains a chain of action and reaction. It is at that point that the vacuum is also filled. With this background information, Nnabuife (2009), define motivation as the internal or external driving force that produces the willingness to perform an act to a conclusive end. This first aspect of motivation we choose to describe as internal motivation because the driving force comes from within an individual. The second aspect is external motivation, is applied by the organization. This is because employees are motivated to identify with organization in order to satisfy their varied and variegates needs and desires. Until they have been identified and properly satisfied, they will never cease to impede smooth running of the organizations. The ability of managers to motivate their subordinates comprises the soft skills of human resource management, which is now a dominant trend in global management (Stýblo, 2008).
According to a study conducted by Grant (2008), motivation imposes employee outcomes for instance performance and productivity. He also established that motivated employees are more oriented towards autonomy and are more self-driven in contrast to less motivated employees. Further, motivated employees are highly engaged and involved in their work and jobs and are more willing to take responsibilities (Kuvaas & Dysvik, 2009). Since all organizations are concerned with what should be done to achieve sustained high levels of performance through people, it means giving close attention to how individuals can best be motivated through such means as incentives, rewards and importantly, the work they do and the organization context within which they carry out that work cannot be understated (Armstrong, 2010). Without increased motivation and morale of the employees, the organization risks losing valuable employees and will be at a disadvantage in attracting potential top talents (Dessler, 2003). According to Hafiza et al. (2011), there are several factors that can affect employee performance like training and career development opportunities, working environment, employee relationship with manager, job security and company over all policies and procedures for rewarding employees (compensation. Among the factors that affect employee performance, motivation that comes with rewards is of utmost importance (Carraher, Gibbson & Buckley, 2006).
According to Iqbal et al. (2012), Employee’s motivation and their ability collectively participate into employee’s performance and in their difficult tasks given by the manger are to purpose get maximum productivity. Now a day’s researcher have more concerned with increase productivity, perfection and working ability. Employee’s needs and wants having more important in research history. Motivation is the one of the most important term of psychology and most of mangers who want maximum output and productivity. They tackle this is with a good way and motivate their employee in batter way. And also increase the cooperation between employee and mangers, it also encourage their responsibilities. And also encourage participation their sub ordinates, to take their responsibilities in batter way and also help to overseas other employee and monitor their performance. And motivate get their maximum interaction toward work and knowing employee’s working capacity and assign work according to their capacity to get maximum productivity (Ali, Abrar and Haider, 2012).
1.2 Statement of the Problem
Motivation is about giving your staff the right mixture of guidance, direction, resources and rewards so that they are inspired and keen to work in the way that you want them to. So, a large portion behind these difficulties can easily be solved by imparting proper motivation. In the fierce era of competition, organizations nowadays are more emphasizing on the management of Human Resources. A manager capable of managing his employee effectively is a successful one. Motivational tools are the most effective in this context. We always have to keep in mind that employees are not motivated solely by money and employee behavior is linked to their attitudes. James (2014) cited three warning indications of a de-motivated workforce these consist of poor work environment, slipping occupation standards and diminished productivity. He further expressed that in the event that any of these factors is seen to drift downwards, at that point there is an great possibility that the company is experiencing a demotivated workforce. Most organizations and business particularly producing businesses have ignored to perceive the significance of motivation as an idea be it intrinsic, for example, employee wellbeing, relationship with managers, organizational policies or extrinsic , such as, training and career development, great working conditions, compensation, promotion among different factors that improve the performance of employee as well as organizational productivity levels.
Motivation through factors such as employee wellbeing, adequate compensation, promotion, good relationships with co-workers and relationships with managers can enhance an employee’s level of effectiveness and efficiency in the workplace. This is because good relationships with coworkers as well as managers promote unity and gives the employee a sense of belonging and acceptance which in turn boosts employee performance and productivity levels. Employees who enjoy such relationships 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 promote accord amongst employees by organizing social functions in a bid to bring employees and managers together (Jibowo, 2007). Therefore an organization’s best strategy is to provide suitable work environs that allow their workforce to meet or exceed expectations as well as offer a range of motivators to improve enthusiasm, performance and productivity levels.
1.3 Research Objectives
The primary objective of the study is to examine the effect of employee motivation on employee performance within a bottling company as well as its effect on organizational productivity manufacturing company. Hence, the following are the specific objectives:
Determine the effect of employee well-being on the level of effectiveness of the workers.
Determine the effect of employee relationship with managers on the level of efficiency of the workers.
Examine the effect of training and career development on the level of efficiency of the workers.
Examine the effect of compensation on the level of effectiveness of the workers.
Ascertain the effect of work environment on the level of efficiency of the employees.
1.4 Research Questions
In the light of the objectives, the following research questions will be answered in the research study:
What effect does employee well-being have on the level of effectiveness of workers?
How does employee relationship with managers affect the level of efficiency of the workers?
How does training and career development affect the level of efficiency of a worker?
What effect does compensation have on the level of effectiveness of the worker?
What effect does work environment have on the level of efficiency of the employee?
1.5 Research Hypotheses
The questions asked above lead to the hypotheses, which will be tested on the motivation and productivity in manufacturing company in Nigeria. The hypotheses of the research are stated as follows:
Employee well-being has no significant effect on the level of effectiveness of the worker
Employee relationship with managers have no significant effect on the level of efficiency of the worker
Training and career development has no significant effect on the level of efficiency of the worker
Compensation has no significant effect on the level of effectiveness of the worker
Work environment has no significant effect on the level of efficiency of employees.
1.6 Scope of the Study
This research focuses on the effect of employee motivation on organizational productivity in bottling company in Nigeria. Hence the study scope will be limited to Coca-Cola Bottling Company in Nigeria. Hence the participants which are staffs and managers of the organization will be used in the study.
1.7 Significance of the Study
The findings of this research would be useful to the management of Coca-cola Bottling Company as it would present a better understanding to them the appropriate motivational factors that impact their employees positively and how it in turn improve the organizational productivity as a whole . The findings of the study would also beneficial to similar companies to Coca-cola Bottling Company in Nigeria. This research is also pertinent to the society as it will enhance their knowledge and understanding on how employee motivation can improve organizational productivity within a particular company. In addition the outcome of this study will enlighten the government and policy makers on how employee motivation can be used as a device to improve organizational productivity within the bottling companies in Nigeria.
1.8 Operationalization of Variables
The study variables which will be identified in the study are motivation and productivity. The study will seek to investigate the effect of motivation: the independent variable, on the dependent variable; productivity.
Mathematically this is expressed as:
Y = f(X)
Where:
Y = Dependent variable
X = Independent variable
For the above stated topic, organizational productivity is a function of employee motivation.
That is P=f (M)
Y (EP), the dependent variable is made up of few elements. That is,
Y=f (y1, y2)
Such that;
Y=f(X)
Where:
X= Employee Motivation
Intrinsic
x1= Employee Well-being
x2= Employee Relationship with Managers
Extrinsic
x3= Training and Career Development
x4= Compensation
x5= Work Environment
Y= Organizational Productivity
y1= Effectiveness
y2= Efficiency
Therefore:
y1 = f(x1) -------------------------- (1)
y2 = f(x2) -------------------------- (2)
y2 = f(x3) -------------------------- (3)
y1 = f(x4) -------------------------- (4)
y2 = f(x5) -------------------------- (5)
Based on regression, we have;
y1 = α0 + β1x1 + µ --------------- (1)
y2 = α0 + β2x2 + µ --------------- (2)
y2 = α0 + β2x3 + µ --------------- (3)
y1 = α0 + β2x4 + µ --------------- (4)
y2 = α0 + β2x5 + µ --------------- (5)
Where α is the constant of the equation, β is the coefficient of X the independent variable, and µ is the error or stochastic term in the equation.
1.9 Definition of Terms
Employee Productivity: this can be indicated as the level at which employees, are effective and efficient in their given task or job.
Motivation: refers to what stimulates and guides human behaviors and how these behaviors are sustained to attain a specific goal.
Employees: Employees are people who are hired working under contract in an organization, they are referred to as the workforce of an organization.
Productivity: A summary measure of the quantity and quality of work performance, with resource deployment taken into account. It can be measured at individual, group or organizational levels.
Organizational Productivity: A measure of how efficiently and effectively managers use resources to achieve organizational goals.
Effectiveness: refers to a measure of how well workers productivity levels meet set goals and objectives of the organization.
Employee Effectiveness: is a qualitative characteristic that indicates the extent to which job related issues are addressed and the magnitude at which predetermined goals and objectives are achieved by an employee.
Efficiency: can be derived from the relationship between inputs and outputs, and refers principally to the degree at which outputs are realized while minimizing costs associated with production.
Employee Efficiency: refers to the ability of an employee to do what is actually produced or performed with the same consumption of resources.
1.10 CHAPTERIZATION
The entire research work is categorized into five chapters. The chapter one is introductory part which comprises of the background of the study, statement of the problem, research objectives, research questions, research hypothesis, scope of the study, significance of the study, operational definition of terms, and chapterization. Chapter two will contain past reviews and discussions on the topic relating it to conceptual , theoretical and empirical framework. Chapter three will contain the research methodology of the study. Chapter four focuses on the data presentation analysis and interpretation. The chapter five will contain the summary of findings, conclusions and recommendations for future research study.
