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THE EFFECT OF MOTIVATION ON ORGANIZATION PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Motivation is defined as all internal and external driving forces that makes the individual to perform an activity, what determines the limits and forms of activity and which give it its activities oriented towards achieving certain goals [Duică, 2008: 142]. The question is whether the motivation really has an influence on people's performance at work. Research shows that indeed there is a relationship between motivation and performance [Deci & Gagne, 2005].
Employees make up the workforce of any organization as such they are an integral part of the organization. Aluko (2014), stated that an organization is only as good as the workforce that runs the organization. This is to say that when employees are motivated chances are that their morale would be high as such performance and productivity levels would increase thereby to a large extent boosting overall organizational performance level. In order to achieve high levels of productivity as such boost organizational performance or productivity, managers therefore need to continually seek ways of ensuring that their employees stay motivated. This is because a lack of employee motivation leads to reduced productivity which is harmful to organizational performance and continuous success. Jennifer and George (2006) defined employee productivity as the level of effort put forth by the workforce of an organization towards achieving organizational goals and objectives. There are several ways by which a workforce can be motivated so as to enhance organizational productivity. George and Jones (2012) states that motivation can be categorized into two classes namely intrinsic and extrinsic. Intrinsic motivation arises from an employee’s internal cravings to execute a task out of self-interest rather than a need or wish for some external reward. External motivation is the type of motivation that arises when an employee is compelled to act in a specific way either as a result of that employee’s desires for external rewards or to avoid punishment.
The success or failure of any organization depends on its employee that how well they were motivated towards their work and with how dedication they are performing. Motivation plays a fundamental role in enhancing the employee productivity and performance. Employee motivation is directly linked to employee commitment, productivity and business profits. An organization should know about their employees that who are its great workers, who need training. Every employee has its own motivational factors that motivate them to perform their work effectively and efficiently. Some employees are motivated by recognition and some are by rewards. Organizations should know the needs of their employees. Motivated employees are productive, happy, committed and satisfied to their jobs. Ouchi (2004) organizations would be more profitable, effective and efficient when its workers are trust over them and this will lead to productivity, high level of involvement. Karen Oman, human beings are reciprocal. If you treat your workers well they will treat you well, if u treat them badly they will treat you bad. This study is designed at looking into the importance of motivation in the management of people at work, no system moves smoothly without it, and no organization achieve its objective without motivating its human resources. Jishi (2009) motivated employees means staff retention and loyalty which in short run will give growth of business. This research however will investigate the effect of motivation on organization using the Nigeria Bottling Company as a case study.
1.2 Statement of the Problem
Business organizations in Nigeria especially manufacturing industries failed to recognize the importance of motivation as a concept be it intrinsic such as employee well-being, relationship with co-workers, relationship with managers, organizational policies etc. or extrinsic such as training and career development, good working conditions, compensation, promotion amongst other factors that enhance or improve employee performance as well as organizational productivity levels and it has cause a major managerial concerns for decades as employee performance is reducing which has been acknowledged as a subject of growing concern in the aspect of business and management research (Akerele, 2001). Although a lot of factors may also be responsible or even cause a decline in productivity such as poor strategic and structural changes in decisions and executions, lack of infrastructure, leadership styles and organizational culture amongst others. Recent research connects the concept of workforce motivation and productivity has laid an emphasis on employee perspective, needs and expectations as factors affecting their performance and productivity levels respectively. Most of the manufacturing industries care more about profit maximization which cannot be possible because unless the employees are willing to work and their performance increased the organization cannot maximize any profit, therefore this research intend to investigates the effect of motivation on organization performance using Nigeria Bottling Company (NBC) as a case study.
1.3 Objective of the Study
The main objective of this study is to find out the effects of motivation on organization performance in NBC, specifically the study intends to:
1. Find out the effect of employee well-being on the productivity of an employee
2. Analyze the effect of motivation on the organization performance in NBC
3. Examine the effect of employee relationship with their employers on the level of employee efficiency
4. Find out the effect of compensation on the productivity level of an employee
1.4 Research Question
1. What is the effect of employee well-being on the productivity of an employee?
2. Is there any effect of motivation on the organization performance in NBC?
3. Is there any effect of employee relationship with their employers on the level of employee productivity?
4. What is the effect of compensation on the productivity level of an employee?
1.5 Research Hypothesis
Ho: there is no significant effect of motivation on the organization performance in NBC
Hi: there is significant effect of motivation on the organization performance in NBC
1.6 Significance of the Study
This research will be useful in different way, firstly this research will be expose business owners, managers and organizations to the concept of motivation and its effect on productivity. It also gives an insight to managers and business owners on the importance of knowing their employees and ensuring adequate motivation in their organizations, this research will also open the eyes of the government at different levels so as to formulate policies that would enhance the stability, growth and development of businesses throughout the region in matters concerning organizational productivity by seeking ways ensure that employees are adequately motivated in their various organizations thereby increasing overall productivity and performance levels.
And lastly this research will serve as a guide to other researchers that will embark on the same research and also serve as a reference point for other research.
1.7 Scope of the Study
This research will be conducted in Nigeria Bottling Company in Ikeja, Lagos state, therefore the research will be examines employee motivation and its resulting effects on the organization’s performance.
1.8 Delimitation of the Study
Finance for the general research work will be a challenge during the course of study.
