MOTIVATION AND PRODUCTIVITY IN PUBLIC ENTERPRISES

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Every organization either public organization, private organization, nongovernmental organization must have employees to carry out its day to day activities. Hence, the organization success depends on the level of productivity of the employee. No organization can survive without an employee, even organization that operate online needs employee to operate it data, upload and update it online data. Employee productivity is the driving force behind an organization growth and productivity. Employee productivity is so essential to an organization, to the extent that it is capable of determining the level of profit and loss of that company. Employee productivity directly affects a company’s profit. When employees are productive they accomplish more in a given timeframe, in turn, employee efficiency saves their organization money, time and labour. When employee’s level of productivity is low, it takes longer time for the employee to complete the task that is given to them which will cost the organization more resources due to their low level of productivity.

Employee productivity is a measurement or calculation between the input and outputs. The inputs include raw materials, machinery and labour. While outputs include the goods and service produced. If the input and output are equivalent, then the employee is considered to be productive. That is, if the amount of input is equals to the amount of output, the employee is seen as been productive and if the output of the employee increased with the same level of input when it was equivalent, then the level of productivity of the employee has increased. But in a situation where the amount of output is below the amount of input, the level of productivity of the employee is low. Every organization want to increase its output or ensure it input is equivalent to it output, hence, organization have place more emphasis on employee productivity. High level of employee productivity provide an organization with various advantages, for instance, higher level of employee productivity leads to favourable economic growth, large profitability and better social progress (Sharrna and Sharma, 2014). Moreover, higher productivity tends to maximize organisatonal competitive advantage through cost reductions and improvement in high quality of output (Baily et al; 2005; Hill et al; 2014; Wright 2004). All of this benefit made employee productivity worthy of attention.

Employee is very essential in public sector because they help the government of the day to formulate and implement policies that will have positive impact on the life of the citizens. Employee in public sector could find themselves in health sector, educational sector, agriculture sector, mining sector, banking sector among others. The level of employee productivity in this sector will determine the level of achievement and success of that sector.