Factors Affecting Employee Motivation in Case of Wachemo University College of Business and Economics
Factors Affecting Employee Motivation in Case of Wachemo University College of Business and Economics
WACHEMO UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
Abstract
Since the human resource is the most important resource of organizations, the effectiveness
and efficiency of the center is highly dependent on its human resource in which motivation
plays great role. Motivation is a drive to perform the job or any task for which one is
responsible. The employees who are motivated actually perform better from those who are
not motivated. Thus, this study is
conduct to assess the effects of motivation on employee’s performance in case of wachemo
university collage of business and economics The sources of data use to this study are both
primary and secondary sources. Structured questionnaire and semi structured interview are
use as a method of data collection. The study adopted census technique to select
employees for response due to the heterogeneous nature of the organization. After the
required data will be collecte the data is analyze by using descriptive method.
Abstract------------------------------------------------------------------------------------------- II
Table of Content ------------------------------------------------------------------------------- III
Chapter one
Introduction
1.1 Background of the study-----------------------------------------------------------------
1.3 Statement of the problem--------------------------------------------------------------
1.4 Objective of the study ------------------------------------------------------------------
1.4.1 General Objective------------------------------------------------------------------
1.4.2 Specific Objective------------------------------------------------------------------
1.5 Significance of the study-----------------------------------------------------------------
1.6 Scope of the study------------------------------------------------------------------------
1.7 Limitation of the study------------------------------------------------------------------
1.8 Organization of the study----------------------------------------------------------------
Chapter Two
Review of Literature
2.1 Definition of motivation
---------------------------------------------------------------------------------
2.2. Characteristics of motivation------------------------------------------------------------------------
2.3 Importance of
motivation---------------------------------------------------------------------------------
2.4 Types of motivation ---------------------------------------------------------------------------------
2.5 Factors of Employees’ motivation and their effect on employeesPerformance
---------------------------------------------------------------------------------------------------------------------
---------
2.5.1. Non financial factors of motivation that affect employees’
Performance--------------------------------------------------------------------------------------------------------
---
2.5.1.1. Job Enrichment-------------------------------------------------------------------------------
2.5.1.2. A safety and healthy work Environment------------------------------------------
2.5.1.3. Career Development------------------------------------------------------------------------
2.5.1.4. Employee Involvement--------------------------------------------------------------------
2.5.2. Financial factors of motivation that affect employees’
performance-------------------------------------------------------------------------------------------------------
----
2.5.2.1
Rewards-------------------------------------------------------------------------------------------
2.5.2.2. Fringe benefits---------------------------------------------------------------------------------
2.5.2.3.
Bonus-----------------------------------------------------------------------------------------------
2.5.2.4
Salaries---------------------------------------------------------------------------------------------
2.6 Motivation and Performance----------------------------------------------------------------------------
2.7 Rules for effective motivation--------------------------------------------------------------------------
2.8 Factors that affect motivation--------------------------------------------------------------------------
2.9 Paying for performance-----------------------------------------------------------------------------------
2.10 Theories of
motivation------------------------------------------------------------------------------------
2.10.1 Content theories of motivation-------------------------------------------------------------
2.10.1.1 Maslow theory of motivation----------------------------------------------------------
2.10.1.2 Herzberg’s two-factor theory----------------------------------------------------------
2.10.1.2.1 Hygiene factor-----------------------------------------------------------------------------
2.10.1.2.2 Motivation factor-------------------------------------------------------------------------
2.10.2 Process theories of motivation---------------------------------------------------------------
2.10.2.1 Expectancy theory---------------------------------------------------------------------------
2.10.2.2 Equity theory------------------------------------------------------------------------
Chapter Three
Methodology of the study
-------------------------------------------------------------------------------------
3.1 Types and Sources of data --------------------------------------------------------------------------
3.2 Data collection method --------------------------------------------------------------------------------
3.3 Population and Sample size -------------------------------------------------------------------------
3.4 Sampling technique and sample size-----------------------------------------------------------
3.6 Data analysis
------------------------------------------------------------------------------------------------
References------------------------------------------------------------------------------------------------------
--
Acronyms
1. PhD--------------Philosophy of Doctorate
CHAPTER-ONE
INTRODUCTION
1.1Background of the study
People are the main resources of any organization. As (Ivancevich, 2007, 231) puts it even
though an organization uses different resources like material, financial and human power
for effective work and achievements of goal, human resource is the most determinant
factor, which serves as an engine to utilize the other resources.
From the previous studies regarding the motivation approach and its impact on various
business dimension it deliberately identified that organization involvement and
commitment can be one of the major factors that might contribute to the overall job
performance of the employees. As (Chugtai, 2008, P: 9) found out motivational approaches
definitely satisfy the needs of the employees and in turn the employees reply on it through
the hard work. Hence, Identifying the need and answering it is the most basic approach of
every organization to earn the organization commitment of the employees
The wachemo university have employees they are working in wachemo university and
related activities with different profession and educational background. Based on the
information the student researcher collect through informal communication with
employees of the center during his preliminary survey, the company will providing
motivation for its employees to perform their job effectively.
So, the study tries to assess the impact of motivation on employees’ performance of
wachemo university and suggest possible and plausible recommendation that helps the
center in using its employees effectively through improving motivational activities of the
center.
The final result of this study may instigate other researchers to do further works in large
scale on the topic in the future in the organization under study or other similar
organizations.
Inculcating secondary data in the study boosts the accuracy and completeness of the
result. However, there are difficulty of getting secondary data from the center. Hence,
the student researcher wants to say that if future researchers make the study on the
area using secondary data the result will be more significance, accurate and reliable.
CHAPTER TWO
Review of Literature
2.1 Definition of motivation
The word “motivation” came from the word to motivate in which case to motivate means
to move, to active. In general sense, anything initiates activity whether external or
internal, is motivating. Today the term means a lot more than this motivating is the work
manager performs to inspire, encourage and impel people to take required action. (Rao,
2000, P: 514-515). Some of the widely quoted definitions are given below by different
authors (as cited in Rao, P. 515)
1. Motivation is a predisposition to act in a specific goal directed way S.Zedeck and
M.Blood (1974, as cited in, Rao, 2000)
2. The immediate influence on the direction, vigor and persistent of action Atkinson
(1964,as cited in Rao,2000)
3. Steering one’s action toward certain goals and committing a certain part of one’s
energies to reach them S.W Gallermen, (1963,as cited in ,Rao,2000)
4. How behavior gets started, is energized, is sustained, is directed, is stopped and
what kind of subjective reaction is present in the organism while all this is going on
Jones, (1955,as cited in ,Rao,2000)
Motivation can be defined in a variety of ways depending on whom you ask. If you ask
someone on street, you may get a response like, It’s what drives us “or” motivation is what
makes us do things he do. As far as the formal definition, motivation can be defined as
forces job. An understanding of the concept of motivation is thus essential in order to
comprehend more fully the effect of variations in factor such as leadership, job redesign,
and salary system they relate to performance, satisfaction and forth (Jits Chandan 1994:56)
We cannot say a particular kind of motivator can be used for all the employees in an
organization. Because individual need and want vary depending on many factors (such as
age, sex, education, status background) (Ivancevic, 2007: 308).
2.5.1. Non financial factors of motivation that affect employees’
performance
The followings are non-financial motivational factors:
2.5.1.1. Job Enrichment
Job enrichment occurs when employees are given more responsibility for scheduling,
coordinating, and planning their own works. Although some writers suggest that job
enrichment is any strategy that increase one or more of the core job characteristics,
Hertzberg gain that jobs were riched only through autonomy and the result of
responsibility ( Steven L. and Marty Ann, 2000: 115) viewed in terms of, Hertzberg’s
motivational factors, job environment occurs when the work itself is more changing , when
difficult, repetitive and boring tasks are minimized, when achievement in encourage ,
where there is opportunity for growth, and when responsibility, advancement and
recognition are provided. (ibid).
Goldstein and Gilliam (1990, p.69) point out that training is one area in which human
resource management departments help organizations maintain competitiveness and
prepare for the future. That means training helps to create company-specific human
assets, which are strongly linked to a company's core competencies. Furthermore, more
and more organizations are providing quality management and customer service training in
an attempt to keep up with rising employees’ development opportunities. There is little
doubt there has been a growing recognition during the last decade of the importance of
training and development as a source of sustained competitive advantage particularly as
employers introduce more skills-specific forms of training (Pfeffer, 1998).
2.5.2.3. Bonus
Are essentially rewards for success and are paid out as lump sum. This is accomplished
when the organization, individual or team has achieved something out standing or when
organizational performance has exceeded what it has planed. ( ibid).
2.5.2.4 Salaries
Salary is a form of periodic payment from an employer to an employee, which may be
specified in an employment contract. It is contrasted with piece wages, where each job,
hour or other unit is paid separately, rather than on a periodic basis. A wage is
compensation, usually financial, received by workers in exchange for their labor.
Compensation in terms of wages is given to workers and compensation in terms of salary is
given to employees. Compensation is a monetary benefit given to employees in return for
the services provided by them. They are the most determinant factor for employees work
performance because it is the compensation for their effort through some period of time.
The higher the salary the employees expected performance will be. (ibid).
The general picture emerging from the studies is that the effects of motivation on
employees’ performance are dependent on the level of ability of the employee. The effects
of ability to performance are dependent on the motivation of employee. The effects of
ability and motivation and motivation on performance are not additive but interactive. The
data presently available on this question suggests something more closely resembling the
multiplicative relationship depicted in the following formula
Performance= (Ability*motivation)
It follows from such formula that, when ability has low value, increments in motivation will
result in smaller increases in performance that when ability has high value.
The value program of selection and training depends on the organization’s previous
success in creating condition conducive to a high level of individual motivation. Similarly,
and the value of programs designed to motivate employees depends on the skill level of
the employees (Sheila, 2004, p.236).
2.7 Rules for effective motivation
According to Sheila (2004, p: 219), the following rules are used by the managers to
effectively motivates the employees.
1. Every individual is different from the other (individual differences respected)
2. Appreciate good work in public and criticize the bad work privately.
3. Give suggestion rather than order.
4. Set good example since subordinates adopt the actions of superiors.
5. Have confidence in the employees’ .i.e. believing the employee can do the work .
6. Encourage participation of subordinates in decision making.
7. Communicate in clear terms.
8. Listen to the subordinates very attentively.
9. Do not keep everything secret as it may induce frustration.
10. Try to get voluntary co-operation from employees.
With this in mind, managers can create pay plans that motivate if they:-
Show employees that good performance leads to high level of pay
Minimize any negative consequence of good performance
Create conditions that provide desired rewards other than pay for good
performance So-called merit pay, which rewards employees according to their
performance contributions, is a natural product of expectancy and reinforcement
theories because it links pay increases to work performance (Gatewood etal, 1995,
P: 451)
a. Physiological needs: they refer to those needs, which are so essential that the
survival of human beings will be in danger if these needs are not satisfied.
Examples are food, shelter, clothing, water, sleep etc. These needs are biological in
nature and keep the body fit.
b. Safety needs: After the physiological needs are satisfied to a reasonable degree, the
safety needs take the place. Examples can be security of job, pension for old age,
insurance plan, compensation for lay off or retrenchment.
c. Social needs: Such needs include needs for love, affection, friendship, and
acceptance by group etc. A man is a social being and he has a need to love and to
be loved.
d. Esteem needs: These needs are concerned with one’s self-esteem such as self
respect, self confidence, status recognition, approval, appreciation etc
e. Self-actualization needs. These are the needs for self fulfillment: the need to reach
one’s potential by making maximum use of abilities and skills.
2.10.1.2 Hertzberg’s two-factor theory
In the late 1950s', Fredrick Hertzberg and his associates conducted a study of the job
attitudes of 200 engineers and accountants, and developed the two-factor theory
popularly known as motivational –hygiene theory, to see in detail.
2.10.1.2.1 Hygiene factor (Maintenance factor)
Hygiene factors are called extrinsic factors such as interpersonal relations with supervisors,
salary, security, working conditions and status. They do not motivate the satisfaction
although they result in job satisfaction.
Thus, the absence of extrinsic factors causes dissatisfaction among the employees. They
are called extrinsic factors because they are considered outside the work being
performance such hygiene factors, if not satisfied had an effect of reduced employee
efficiency (Plunket, 2001, P: 419) .
2.10.1.2.2 Motivation factors
According to Herzberg, motivation factors are the primary cause of job satisfaction. They
are intrinsic to a job and relate directly to the real nature of the work people perform. In
other words, motivational factors relate to job content. When an employer fails to provide
motivation factors, employees’ experience, employees enjoy job satisfaction and provide
high performance. (Plunket et al, 2001, P: 421), the same author discussed each factors as
follows.
Achievement: The opportunity to accomplish something or contribute something of value
conserve as source of job satisfaction.
Recognition: The wise manager let the employees know that their efforts have been worth
while and the management notes appreciates them.
Responsibility: The potential for acquiring new duties and responsibilities, either through
job expansion or delegation, can be a powerful motivation for some workers.
Advancement: The opportunities to improve one’s position as a result of job performance
gives employees a clear reason for high performances.
CHAPTER THREE
3. Research Methodology
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