Post-Graduate Diploma Thesis
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF STUDY
Employee motivation is a major issue organizations constantly try to pay attention to
due to the fact that it is an important dynamic in driving the productivity of their staff
(Aborisade and Obioha, 2009). A link exists between organizational growth and
workers’ productivity, as several theories on motivation have been propounded to this
effect with different forms of incentives considered being capable of improving staff
morale in companies. However, there is still no single theoretical framework that adds
all best features of the various motivation theories to develop a generally accepted
school of thought capable of solving most staff motivation problems in firms today.
Most well-run organizations consider staff motivation as being very important because
without a dedicated workforce, no company can achieve its goals efficiently and
effectively (Aborisade and Obioha, 2009). Although, it appears that many Nigerian
companies do not share such views, as a significant portion of the Nigerian employed
labour force are not adequately taken care of by the firms which they work for. A lot of
employers are not considerate towards the needs of their staff based on the selfish
motive to make maximum profit even to the detriment of the employees. Workers are
maltreated, abused and laid-off without any good reason or compensation.
Unfortunately, such actions remain unquestioned and unchecked by the necessary
regulatory bodies. These callous attitudes by Nigerian employers have led to various
problems in form of nonchalant behaviour of workers towards their responsibilities
and corrupt practises of staff within many Nigerian firms.
1.1 STATEMENT OF PROBLEM
The Nigerian economy is the largest in Africa with a 2013 Gross Domestic Product
(GDP) of US$510 billion ahead of South Africa’s economy with a GDP of US$350.6
billion (Bloomberg News, April 2014). The World Bank describes the Nigerian economy
as an emerging market fed by various sectors which include: services, industry,
agriculture, telecommunications, manufacturing and entertainment. However, with
the current state of affairs in the nation in general as relating to the low level of
1
workforce motivation and its negative effects on national productivity, it is necessary
to temper such optimism with caution.
Nigerian employees continue to complain about the poor working conditions they face,
and in their reaction, industrial actions such as strikes are most times carried out in
different sectors of the economy, leading to the obstruction of the nation’s growth. As
an example, in 2013, members of the Academic Staff Union of Universities (ASUU)
went on a six months strike that lasted from July to December. The strike was
embarked on in reaction to the failure of the Nigerian Federal Government to act on its
promise which it made to ASUU, when members of the pressure group stated their
requests in 2009. Nigerian lecturers had made certain requests which they felt would
serve as incentives to make them work harder, but the employer of the workers (i.e.
the Nigerian government) refused to give in to their demands and this is the case in
several other Nigerian organizations (Channels TV News, December 2013).
Many circumstances of industrial action are reported frequently in the dailies and are
commented upon by watchers of development in various industries. Certain questions
are often asked as to what workers in general want from their employers. Can there be
an end to the clamour for increases in wages? Why do workers work and what induces
them to give their best? (Robinson, 2004)
Money only plays the role of common denominator of all things. There is a general
notion that if only management can identify other things that can motivate the
workforce apart from money, perhaps there will be a dramatic reduction in the
demand by workers for pay rises; and less time will be spent on the annual ritual of
management-trade union negotiation meetings (Robinson, 2004).
The efficiency of the general workforce of a country has a multiplier effect on the
productivity of the national macro-economy. In order to achieve the desired
productivity level, business establishments rely on a highly motivated workforce that
shares the goals of such establishments. What then can such organisations do to
obtain the right work attitudes from their employees towards achieving continuous
productivity and growth?
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The research drew out responses from NESG staff on their views about the implication
of various motivational factors in the organisation; and how it especially affects their
productivity.
Answers to the following research questions were sought so as to provide solutions to
the problems of the study.
1. Is there any positive relationship between motivational factors and higher
productivity for the older staff members of NESG?
2. Is there any positive relationship between motivational factors and attitude to
work for newly recruited staff of NESG?
1.2 PURPOSE OF THE STUDY
Against the background, the estimated number of NESG employees amounts to 22
people in total. The research aimed at finding out the general problems facing the
Nigerian economy and employee performance. It also focused on discovering how
improved incentives or motivation of employees at NESG has affected management
productivity within the organization.
The research sought to find out from empirical studies whether workers, if given the
right incentives other than money, can put in their best to contribute to the
productivity and growth of the organisations they work for; thereby ultimately
achieving the objectives of such firms. The research further attempted to provide
possible solutions to the problem agitating the minds of management of Nigerian
companies (especially Ministries, Departments & Agencies [MDAs] of the government),
as to what actions to take towards adequately motivating workers to contribute their
quota to their company’s desired productivity level.
1.3 OBJECTIVES OF THE STUDY
The objectives of the research includes;
Establish a link between staff motivation and the productivity of a firm.
Establish whether or not there is any positive relationship between motivational
factors and higher productivity for the older staff of NESG.
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Establish whether or not there is any positive relationship between motivational
factors and the attitude to work for newly recruited staff of NESG.
1.4 RESEARCH QUESTIONS
Research problems are used to develop research questions that are in turn converted
into hypothesis for testing and providing answers to the problems.
The research questions for the thesis are as follows;
What is the link between staff motivation and the productivity of a firm?
Is there any positive relationship between motivational factors and higher
productivity for the older staff members of NESG?
Is there any positive relationship between motivational factors and attitude to
work for newly recruited staff of NESG?
1.5 SCOPE OF WORK
The research concentrated on the relationship between staff motivation and
productivity of NESG. It also, to an extent, sheds some light on the level of motivation
used within the public sector to drive worker’s productivity.
1.6 SIGNIFICANCE OF THE STUDY
The thesis aimed at generally helping Nigerian organizations in no small measure
towards providing possible solutions to motivation problems in Nigerian companies.
Intellectually, the study contributed to the academic field of administration, especially
as it partially studies motivation and performance in the public/social sector.
The thesis-project also focused on helping future researchers who would like to carry
out research on motivation for further consultation on performance and motivation.
The study gives researchers the opportunity to know more about NESG.
1.7 LIMITATIONS OF THE STUDY
The research emphasised on NESG and its staff. The workforce to be covered within
the context of the survey included contract, permanent (senior/junior level) and
management staff within the organization. Mostly workers under the Research,
Corporate Services/Communications, and Programmes Units were interviewed, as
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they belong to units that are considered to be the most significant departments within
the corporate structure of the firm.
The research sought to establish whether the career background of an employee
determines his or her level; and opportunities for career advancement. Hence also
determining how much a part of the organisation he feels he is. Respondents were
categorised according to their departments.
One possible area of limitation in carrying out the research was the difficulty of
circulating/retrieving the research instrument, based on the general indifference
amongst Nigerians towards responding to questionnaires, which makes it hard to get
or analyze the needed data.
1.8 DEFINITION OF TERMS
In some circumstances, words may carry different meanings. However, the research
explained in detail some of the technical terms used to communicate its message.
Thus, some of the important terms used in the study are defined as follows:
Motivation: Motivation is the set of multifaceted forces, needs, drives, tension states,
and other mechanisms within us that will create and maintain voluntary activity
directed toward the achievement of personal or general goals.
Productivity: Productivity is the relationship between the amount of one or more
inputs and the amount of outputs from a clearly identified process (Robinson, 2004).
Workforce productivity: Workforce productivity is the amount of goods and services
that a worker produces in a given amount of time.
Capacity building: Capacity building is a conceptual approach to development that
focuses
on
understanding
the
obstacles
that
inhibit
people,
governments,
international organizations and non-governmental organizations from realizing their
developmental goals while enhancing the abilities that will allow them to achieve
measurable and sustainable results (United Nations Development Programme, 2003).
5
Training and Development: Training and development is a function of human
resource management concerned with organizational activity aimed at bettering the
performance of individuals and groups in organizational settings (Harrison, 2005).
Permanent staff: Permanent staff refers to those experienced members of staff who
irrespective of their ages have been working with the organization for a minimum
period of five years without expiration of the terms of contract for their employment.
Contract staff: Members of staff who irrespective of their academic accomplishments
or status are less regarded and whose terms of contract for employment have an
eventual expiry date.
MDAs: Statutory companies or Public Corporations or other forms of organizations
that are run and managed by the government.
1.9 ABOUT THE NIGERIAN ECONOMIC SUMMIT GROUP
The Nigerian Economic Summit Group, otherwise known as the NESG is a think-tank
organization that promotes sustainable growth and development in the Nigerian
economy using research based advocacy methods. NESG was established in 1996 as a
company limited by guarantee based on the success of the first ever Nigerian
Economic Summit (NES#1) that was hosted by former Interim President, Chief Ernest
Shonekan, in 1993. The Summit brought together captains of industry from the
private sector and senior government officials from the public sector to discuss on how
to tackle Nigeria's economic problems moving forward. Participants of NES#1 quickly
realized that it was possible for the private sector to cooperate and dialogue with the
public sector. Subsequently, a core group of participants from NES#1 developed a
more formalised private sector structure, which formed the basis of NESG today.
The company is run by a Director General and the Associate Director/Head of the
Research Unit, next in line. NESG has a Board of Directors that is responsible for
overseeing the successful coordination of its activities and the Board is headed by the
Chairman.
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NESG is also a membership based organization which private sector professionals can
subscribe to. The company has nine Policy Commissions which focus on driving
growth within specific areas of the economy. The Policy Commissions are as follows;
The Agriculture & Food Security Policy Commission.
The Environmental Sustainability Policy Commission.
The Governance Policy Commission.
The Human Capital Development Policy Commission.
The Infrastructure Policy Commission.
The Oil & Gas Policy Commission.
The Real Sector & Services Policy Commission.
The Science & Technology Policy Commission.
The Trade, Investment & Competitiveness Policy Commission.
NESG is affiliated to a number of international organizations such as the World
Economic Forum (WEF), the United Nations Global Compact (UNGC) and the Oxford
Business Group (OBG). The firm has worked, on various platforms, with International
Development Partner Organizations present in Nigeria e.g. The German Agency for
International
Cooperation
(GIZ-SEDIN);
and
the
World
Bank
(Nigeria).
Such
organizations render technical assistance to NESG by engaging its staff in various
capacity building exercises that develop their professional skills and make them more
effective at work.
7
CHAPTER TWO
LITERARTURE REVIEW
2.0 INTRODUCTION
This chapter discussed how the subject of motivation has evolved over the years and
some known literature that have been written on the subject. An attempt was also
made to find out any knowledge gaps that exist in current literature on the subject
and how the research can bridge some of such gaps.
2.1 THE THEORETICAL FRAMEWORK
The research used certain popular motivation theories to display the significance of
providing incentives to workers and how this promotes the productivity of an
organization. Herzberg’s Two Factor Theory was particularly used as the Conceptual
Framework of the study.
The following motivation theories have mostly influenced the act/process of
management in the corporate world within the last two centuries:
McGregor’s Theory X and Y: This school of thought classified human behaviour
towards work into two groups namely- X and Y. Douglas McGregor’s Theory X and
Theory Y have to do with the perceptions employers hold about their employees, and
not the way the employees actually behave. It is focuses on attitudes not attributes.
Theory X assumes that certain groups of people are pre-ordained by nature to be
leaders, while others were born to naturally be followers. This theory also states that
workers are lazy and must be forced to work. It lays much emphasis on discipline,
supervision and control in the work environment. Managers who adopt this doctrine
believe that human beings must be pushed to perform at their best through means of
rewards or through the use of force.
Theory Y, on the other hand, assumes employees may be ambitious and self-motivated
and exercise some level of self-control. It emphasizes on the fact that peoples interest
towards labour is influenced by the working conditions they face while at their places
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of work. Managers who adopt this doctrine believe in the act of treating their
subordinates with some level of respect while also coordinating their activities at work.
The major difference between Theory X and Y is the fact that X sees man as a being
that toils just for money, while the latter doctrine preaches that man works for other
accomplishments such as fulfilment.
Vroom’s Expectancy Theory: Victor Vroom’s Expectancy Theory assumes that
motivation is based on the expectation of desired outcomes. The theory is based on
three concepts: valence, expectancy, and force.
Expectancy- This is the probability that a perceived outcome will result in form of a
positive reward.
Valence- This is the perceived worth or value of the outcome of an action or behaviour.
Force- This is a person’s motivation to perform.
The expectancy theory explains job satisfaction as a relationship between a worker’s
hopes concerning the conditions of a particular job, and his/her actual experience
while on the job. In other words, people will work hard when they think that their
efforts can lead to desired organizational rewards. The level of job satisfaction that an
employee can experience depends largely on how well his/her expectations have been
met. For instance, if a worker looks forward to earning a salary of N1.2 million per
annum from his/her job and ends up earning exactly that or more, he/she will most
likely be motivated to work.
Victor Vroom’s theory emphasizes on the attractiveness of rewards and also states that
workers who are well remunerated must work as hard as possible to achieve the goals
of their employer.
Maslow’s Hierarchy of Needs Theory: According to Abraham Maslow, who was a
Professor at Brandeis University, motivation highly depends on a hierarchy of needs,
of which a person cannot move to the next level of his/her needs without satisfying
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the previous level. He assumed man to be a social animal that possesses a web of
needs, which he then referred to as the Hierarchy of Needs.
The theory states that the needs of most workers are classified in the form of a
hierarchy or priority list that is split into 5 levels and this is shown in the triangular
figure above.
The first three needs from the bottom of the list are referred to as primary needs, while
the last two at the top are called secondary needs. Physiological needs have to be
satisfied first and then all other needs that follow can be fully or partially satisfied.
With the satisfaction of each subsequent need comes another higher need to be also
fulfilled.
This theory has faced some form of criticism based on the idea that it is not realistic
because a rational being, which for instance is hungry and unsafe, would rather
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choose to attend to his security needs before considering solving the problem of
hunger.
McCelland’s Need for Achievement Theory: David McCelland’s works relating to
achievement motivation have particular relevance to the emergence of leadership.
McClelland was interested in the possibility of deliberately arousing a motive to
achieve, in an attempt to explain how individuals express their preferences for
particular outcomes — a general problem of motivation. In this connection, the need
for achievement refers to an individual's preference for success under conditions of
competition.
He agreed with the theories of both Maslow and Herzberg, that certain motives such as
recognition, esteem and achievement can surely motivate people to work effectively
and efficiently. According to McClelland the following features accompany high level of
achievement motivation:
Moderate risk propensity.
Undertaking innovative and engaging tasks.
Internal locus of control and responsibility for own decisions and behaviours.
Need for precise goal setting.
McClelland’s measures, originally presented as means of assessing “personality”, are
best understood as means of measuring competence in ways, which break radically
with traditional psychometric approaches. Everybody has different goals and needs for
achievement based on many factors like past experiences, education, the risks, and
the feedback they will receive.
Herzberg’s Two Factor Theory: Fredrick Herzberg in the 1950’s conducted a
research aimed at discovering what employees really want out of their work. He
interviewed several workers who provided information on the factors that made them
like or dislike their jobs and based on this, Herzberg then developed two factors that
may affect motivation. They are:
MOTIVATORS
(SATISFIERS)
-
Recognition
of
outstanding
Delegation of responsibilities; Promotion of workers’ growth.
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performance;
HYGIENE
FACTORS
(DISSATISFIERS)
–
Wages/Salaries;
General
work
conditions; Superior-subordinate relationships.
Herzberg believed that Motivators are factors that could primarily create job
satisfaction, but in their absence there is no health deterioration. Hygiene factors, on
the other hand, do not affect a worker’s level of job satisfaction but their absence can
cause the deterioration of such a worker's health.
NOTE: Since the study also aims at examining the implication of adequate motivation
on workers’ productivity in an organisation, it will be necessary to critically define
what is meant by the concept ‘workers’ productivity’.
2.2 EMPLOYEE PRODUCTIVITY
Employee Productivity can be defined as the amount of goods and services that a
worker produces in a given amount of time. Labour productivity is a revealing
indicator used to measure factors such as economic growth, competitiveness, and
living standards within a macro-economy. It is the measure of labour productivity that
helps explain the principal economic foundations that are necessary for both economic
growth and social development. (Freeman, 2008:5).
Worker’s Productivity is a concept that can be measured through the use of tools such
as Overall Labour Effectiveness (OLE). OLE is a Key Performance Indicator (KPI) used
to gauge the utilization, performance, and quality of a workforce and its impact on the
general productivity of organizations. It is a tool popularly used in Operations
Management to make useful decisions by analyzing the cumulative effect of
performance on productive output, while considering the impact of both direct and
indirect labour (Gordon and Gregg, 2011).
Motivation serves as a link between the general attitude of employees and their level of
productivity while at work. A worker’s attitude, which is his mental disposition
towards certain stimulus in the work environment, can be affected by his views on the
nature of the work environment itself. Productivity will most times be at its peak in an
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organization where the staff members have a positive attitude towards their work, and
this is all dependent on the use of motivation by management.
2.3 STRATEGIES OF MOTIVATING WORKERS
Bernard (1995) looks at workers in an organized endeavour, putting in time and efforts
for personal, economic, and non-economic satisfaction. He accorded some recognition
to the needs of workers saying that, “the ultimate test of organizational success is its
ability to create values sufficient to compensate for the burdens imposed upon
resources contributed.” The question here is what strategies can be used to motivate
workers? The following are strategies:
Salary, Wages and Worker’s Terms of Contract: The mobility of labour as a factor of
production causes wages and salaries to be different across industries or even office
designations. Normally, workers are paid certain amounts of wages based on the
importance of their positions within the hierarchical structure of a company.
Management staff get paid way more than the staff at the shop-floor based on the
technicality and importance of their work. The amount of skill required in a job
determines how much the labourer gets paid.
The terms of an employee’s contract will also affect the level of his productivity at
work. If those terms are favourable then the productivity level tends to be high. The
wages and salaries are listed as one of the very first pieces of information provided by
such a contract.
Cash: Katz et al (2005) demonstrate the motivational power of money through the
process of job choice. He explains that money has the power to attract, retain, and
motivate individuals towards higher performance. For instance, if a librarian or
information professional has another job offer which has identical job characteristics
with his current job, but greater financial reward, that worker would in all probability
be motivated to accept the new job offer.
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Staff Training: No matter how automated an organization may be, high productivity
depends on the level of motivation and the effectiveness of the workforce. Staff training
is an indispensable strategy for motivating workers. Training of staff will give workers
an opportunity for self-improvement and development in order to meet the challenges
of performing a task while on the job.
Communication: Information availability brings to bear a powerful peer pressure,
where two or more people running together will run faster than when running alone or
running without awareness of the pace of the other runners. By sharing information,
subordinates compete with one another.
Vinokur, Jayarantne, and Chess (1994) examine agency-influenced work and
employment conditions, and assess their impact on social workers' job satisfaction.
Some motivational issues were salary, fringe benefits, job security, physical
surroundings, and safety. Certain environmental and motivational factors are
predictors of job satisfaction. While Colvin (1998) shows that financial incentives will
get people to do more of what they should do at work.
2.4 EFFECTS OF MOTIVATION ON WORKERS
Motivation has a number of positive outcomes for the mental and physical state of
mind of workers and they include;
Happiness & Self-fulfilment- Workers tend to be happier when they have
bosses that care enough to motivate them to do better at work.
Good Health- Most workers will be in a better physical and mental state,
health wise, when they are being motivated at their places of work.
Financial stability- Workers who are rewarded with money are usually
financially stable as they have more income to either save or consume.
2.5 TRAINING AND DEVELOPMENT
Training and development is a function of the human resources unit of a firm. It is a
form of organizational activity aimed at bettering the performance of workers in the
company.
It
has
been
called
different
names,
development", and "learning and development".
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including
"human
resource
The ultimate aim of every training and development exercise in an organization is to
add value to its workers towards ultimately improving on their level of productivity at
work. According to Arnoff (1971) human capital development fosters the creativity and
initiative of employees, while also preventing any form of manpower redundancy due
to factors such as age or inability to adapt to any forms of organizational changes.
There are two types of human capital development methods and they are:
On the job-training- According to Armstrong (1995) this relates to the forms of
training or coaching workers receive at their places of employment from their
superiors who are more experienced at the job than them.
Off the job-training- This type of training and development involves workers
learning outside of their places of employment. According to Ejiogu (2000), offthe-job training would include the use of coaching methods such as lecturing,
vestibule training, role playing, case studies, discussions and simulations.
Before employees undergo any form of training there must be an objective for such as
a training (i.e. a need for the worker to achieve a certain skill required to enable him
do his job better). The worth of a training and development exercise is determined by
its level of impact on the professional lives of the participants. If the participants
become better at performing their jobs after the training, then it can be considered as
effective.
2.6 CAPACITY BUILDING
The United Nations Development Programme (2003) defined capacity building to cover
human resources development and the strengthening of managerial systems or
institutional development that involves community participation and creation of an
enabling environment. Capacity building in the context of development implies a
dynamic process which enables individuals and agencies to develop the critical social
and technical capacities to identify and analyze problems as well as proffer solutions
to them.
The term capacity building emerged in the international development community
during the 1990s. Today, it is included in the programs of most international
organizations that work in development e.g. the World Bank, The United Nations (UN)
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and Non-Governmental Organizations (NGOs) like Oxfam International or ActionAid.
Wide usage of the term has resulted in controversy over its true meaning.
Capacity development, as it is otherwise known, often refers to strengthening the
skills, competencies and abilities of people and communities in developing societies so
they can overcome the causes of their exclusion and suffering. However, the same
phrase is used by NGOs to refer to their internal human capital development activities.
Several NGOs in Nigeria engage in the act of training their workers and the staff of
other organizations. Development Financial Institutions (DFIs) are quite popular for
such acts. Organizations such as the United States Agency for International
Development (USAID) and the United Kingdom’s Department For International
Development (DFID) usually train staff of local NGOs or Civil Society Organizations
(CSOs) and also civil servants. This is aimed at keeping employees abreast of the
current work trends and enabling them to adapt quickly to any form of progressive
changes in their work environment.
Organizational capacity building focuses on developing the abilities of firms, especially
NGOs, so they are better equipped to achieve the missions they have set out to realize.
Failures in development can often be traced back to an organization's inability to
deliver on the service promises it has pledged to keep. Capacity building in NGOs often
involves building up aptitudes for decision making and policy-formulation. It is
common for DFIs and Development Partners in the global north to fund capacity
building for NGOs themselves. For organizations, capacity building may relate to
almost any aspect of work e.g. improved governance; leadership; mission and strategy;
program development and implementation; fund-raising and income generation;
diversity; partnerships and collaboration; evaluation; advocacy and policy change etc.
Capacity building in NGOs is a way to strengthen an organization so that it can
perform the specific mission it has set out to do and thus survive as an organization.
The German Agency for International Cooperation (GIZ), in conjunction with USAID,
has in the recent past facilitated the training of certain professionals from selected
NGOs and MDAs of the Nigerian government, which was sponsored by the E.U. This
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training was aimed at enhancing the skills of such workers in the area of trade policy
analysis. It is important to note that most DFIs sponsor trainings to enhance the skills
of professionals in the area of economics or governance, with the primary objective of
creating a new and better breed of policy makers in our society.
Capacity development is paramount in all organizations today because experience not
renewed will definitely be a liability in this age of technological advancement. Workers
cannot use 20th century knowledge and experience to solve 21st century work
problems.
2.7 MOTIVATION STRATEGIES USED BY NESG
NESG being a well-structured organization makes use of certain strategies to motivate
its staff for maximum productivity. Such strategies include:
1.
Knowledge Sharing: Due to the small size of the company, information flows
easily whether in a vertical direction between superiors and subordinates or
horizontally between department heads. So based on the rapid dissemination of such
info, workers at NESG are better informed and equipped to do their jobs effectively and
efficiently.
Most importantly, there is a policy at NESG that all technical staff, during the last
Friday of every month, must engage in a Knowledge Sharing Session in which a
certain member of the team shares his knowledge on a new skill that he may have
acquired. This in-house capacity building activity aims at promoting the exchange of
ideas between NESG staff, which will help NESG and its staff to continue to grow in
the long-run.
2.
Performance Measurement & Recognition: The Management of NESG pays a
lot of attention to hard working employees and ensures that such people are
acknowledged within the organization at all times. Periodic award nights and dinners
are occasionally hosted by the company to recognize those diligent members of staff
that constantly give their best while on the job. This is a culture which the firm has
used to promote healthy competition amongst its workers.
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A page from NESG 2013 AGM report
3.
Conducive Work Environment: NESG provides facilities of the best quality to
support its staff to do their jobs better. Employees are adequately provided with the
tools they may need to perform while on the job.
The recent launching of a Corporate Endowment Fund, worth N150 million, by the
Board of Directors of NESG at its 2013 Annual General Meeting (AGM) will provide
resources to better equip the staff towards working at maximum capacity.
4.
Healthy Superior-Subordinate Relationships: NESG encourages its senior
staff to be role models and parent figures to their subordinates. This rule within the
organization has created a platform upon which lower-level staff can air their views on
certain policies within the structure of the firm. Thus, promoting a peaceful
atmosphere in the company and amongst its workers.
5.
Fair Remuneration: NESG financially rewards its staff with competitive
salaries and annual bonuses to encourage them to work harder. Travel allowances are
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provided while going on official trips; however, any excesses are required to be retired
to the administrative department if available. NESG also considers the health needs of
its staff; thus it provides them with health insurance packages.
A page from NESG 2013 AGM report
2.8 DOWNSIDES OF EMPLOYEE MOTIVATION
The downside effects of motivation may vary based on the various tools for motivating
workers. For instance, one of the major disadvantages of using financial rewards or
gifts to motivate workers is the fact that such acts may not be sustainable, as it is
unlikely that the employer will always be capable of providing such rewards at all
times. On the other hand, the main demerit in the area of recognition programmes for
employees is that this could promote cases of possible favouritism in a work place and
may reduce team work amongst staff.
Employee motivation like all other things must be balanced to get the best effect in the
work place. Workers should be motivated but not indulged. An employer does not have
to give in to every demand made by his staff, as this can surely produce bad results in
the long-run when the demands become more than he can handle.
2.9 CONCLUSION
Employable individuals work to gain different forms of benefits that can either be
monetary or non-monetary in nature. Within a labour market, wages are paid in
exchange of the labour services provided by the workers under a formal or informal
employment contract. Based on such barter, the work product generally becomes the
undifferentiated property of the employer, except for certain special cases.
For most people, the main drive of being a worker is the ability to subsist in their daily
lives. Generally, employees try to find satisfaction in what they do and as a result
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managers should be able to recognize the problems faced by their workers and find
ways to satisfy their needs and aspirations.
When workers are properly motivated the question of poor performance and
inefficiency will be a forgotten issue in any organisation. Employers who are
triumphant in motivating their employees are often obliged to provide an environment
in which appropriate or adequate goals called ‘incentives’ are made available for the
needed satisfaction of the employee.
According to Atkinson (1964) Motivation has no set definition, but one thing is clear
and that is- Motivation is derived from the Latin word ‘Movere’, meaning ‘to move’.
Zedeck and Blood (1974) defined Motivation as the tendency to act in a specific goal
driven manner.
The main issue being focused on here is- how can a worker in an organization, with a
particular set of needs, be motivated to achieve the desired productivity level of the
firm? Today, managers cannot rely solely on the use of pay, benefits or good working
conditions as incentives to encourage their subordinates to perform effectively and
efficiently. The manager’s duty is to create and develop an effective environment in
which employees will be motivated to become productive members of the organisation
by striving for what will bring them reward.
20
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter represents the techniques or methods used in the manipulation of data
collected. Research methodology focuses on the procedures and modalities used to
conduct an investigation by a researcher; to gather data or information towards
creating a study aimed at accomplishing a specific objective. This study is targeted at
investigating “The Impact of Staff Motivation on Worker’s Productivity: Case Study of
the Nigerian Economic Summit Group (NESG).”
3.1 TYPES OF DATA
The study used both primary and secondary data. The data captured is mostly of a
qualitative nature and was gathered via interviews of specific NESG staff.
3.2 RESEARCH AIM
The aim of the research was to draw out responses from NESG staff on their views
about the implication of various motivational factors in the organisation; and how it
especially affects their productivity. This can further provide an insight on the
importance of motivation towards workers’ productivity.
3.3 SOURCES OF DATA
Given the nature of the study as well as the data which suit its purpose, facts were
collected from various sources such as NESG employees, the Staff Manual and Official
Website (www.nesgroup.org), journals and some other secondary sources. Thus, as
previously stated, the data in this study is both primary and secondary data collected
through primary and secondary sources.
3.4 APPROACH TO RESEARCH
Inductive reasoning follows a pattern of using a set of observations to arrive at a
conclusion (Crawford, 2013). This method tends to give a feel of what is going on,
therefore making it possible to understand the nature of a problem. It is appropriate
21
for the study of a small sample and would likely take a qualitative approach in order
to obtain different views of the research focus (Saunders and Lewis et al., 2012).
This thesis is inductive in nature. There is little empirical evidence to build on, and the
study entails exploring workers’ opinion on the issue of motivation in order to learn
how it affects their productivity at work.
3.5 RESEARCH DESIGN
This section focuses on the Survey method, Interviews and Questionnaires used to
gather data for the research. The data collection methods selected by the researcher
for this study are;
Interviews (Semi-structured)
Content Analysis (World Wide Web)
The table below shows a detailed approach to deciding what methodology to use in
collecting data, with the other options considered and the reasons why they were
rejected.
Methodology
Benefits
Unstructured
Useful
Interviews
developing
Limitations
for There
is
Recommend
no No
structured
Reason:
understanding of a interview
This
guide. method if used to
topic that is not yet Rather, interview is analyse the subject
fully understood. It based
on matter
gives room for the interviewer’s
subject
introduce
to rapport.
Only
of
the
study, will take too
a much
time
and
new limited number can there needs to be
angles and views of take place as they some structure in
an
issue.
An last for a long time.
informal
the sample.
atmosphere
encourages
openness
order to compare
and
22
honesty.
Observations
Provides
direct Knowledge of being No
access to the issue. observed may alter Reason:
It is applicable in a behaviour of those an
wide
range
Applying
observational
of being observed. It method would take
contexts.
is
very
time more time than the
consuming
and scheduled
period
extensive resources for the project.
are
required.
Subjective to bias
from the observer
as
the
observer
only records what
is expected to be
seen
or
what
thought
to
is
have
occurred.
Semi-structured
Useful when there Honesty cannot be Yes
Interviews
is not more than guaranteed.
one
chance
interview
to ended
samples are
Open Reason:
questions approach
difficult
to conveniently
This
fits
into
and when data will analyse. Difficult to the data collection
be
collected from compare answers.
various
samples.
The
structure
period timescale.
allows comparison.
The
audience
is
specifically
targeted.
Content Analysis
Provides historical Time
insight over time. It Often
is an unobtrusive the
way
of
consuming. Yes
disregards Reason:
context
from methodology
analysing which the text was focuses
23
This
on
interactions.
It produced.
communication
focuses directly at
which
communication.
relevant
makes
to
it
the
study.
More detailed reasons and ideology behind the adopted methods for the research are
stated in the following section.
3.6 INTERVIEWS
An interview is a discussion with a purpose, between two or more people (Kahn and
Cannell, 1957). It is useful in gathering reliable and relevant data to the research
question (Saunders and Lewis et al., 2012). This will help the researcher to find out
the way things are done, the motivations behind the approaches, and the meanings
attached to things (Mcgivern, 2006).
The research carried out interviews with the mid-level and lower level management
personnel of NESG. The interviews were semi-structured as there were a list of themes
and questions to be covered and this varied from topic to topic. The aim was to hear
the point of view of relevant company employees, and in their own words, get the
evidence needed for this research.
3.7 SAMPLE TECHNIQUE: JUDGMENTAL SAMPLING
Based on the researcher’s experience as a staff of NESG, 10 key personnel whom
could provide credible information were selected. In determining the individuals to be
interviewed, the first step involved in carrying out this secondary research was to
identify the appropriate staff of NESG that were actively involved in running the affairs
of the company.
Members of the Research, Programmes and Corporate Services units were chosen to
be interviewed, as these are the key functional departments of the organization. The
table below shows the interviewees and the departments of NESG in which they
operate. The individuals chosen for the interview are highly professional at what they
do and possess enough experience in order to have a robust knowledge on the
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importance of motivation in a company and how it affects workers’ productivity. The
reason for using NESG as a case study is because it is an NGO and most importantly
a Social Enterprise, which stands in between the private and public sector. Therefore,
firms under the private or public sector can learn from this study and apply the
outcomes or recommendations in their management practises. With this expert
interview, one should be able to gain a minimal insight on motivation and productivity
trends in corporate Nigeria.
NOTE: Out of the 10 employees initially targeted for the survey, only 4 responded. Due
to the short time-span allotted for completing the research, the 4 responses available
were used without replacing the remaining that were not received from the other 6
interviewees.
NAME
UNIT
Mr. I
Programmes
Mrs. F
Research
Mr. S
Research
Mr. J
Research
Mr. W
Research
Mrs. T
Corporate Services
Ms. T
Research
Mr. C
Research
Mr. F
IT/Programmes
3.8 ANALYTICAL METHOD
Analytical techniques enable researchers to examine complex relationships between
variables. No data mining process was used as the data made available was not large
enough for extracting information to transform into an understandable structure for
further use i.e. no coding was done due to minimal data. Simple tools of statistical
analysis such as Pie charts, Pictures/Themes as well as Tables were used to display
and analyse the available data. Google Forms, which is a web service provided by
Google for data management, was used to gather, analyse and share the data online.
25
The data is stored in tables that the researcher can access and download using his
Google mail account. Google Forms provides means for visualizing and analysing data
with pie charts, bar charts, line-plots, scatterplots, timelines, geographical maps and
pictures.
3.8.1 CONTENT ANALYSIS
Content analysis is an observational analysis method that is used to systematically
evaluate the symbolic content of all forms of recorded communication. These
communications can also be analysed at many levels (image, word, roles, etc.), thereby
creating a realm of research opportunities” (Kolbe and Burnette 1991: 243). This
method aided the study as a lot of its secondary data was sourced online.
3.9 CONCLUSION
This chapter, which used mostly simple tools of data analysis as well as Google Forms,
shows a very positive relationship between staff motivation and company productivity
based on the available responses from the interviewed staff of NESG.
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CHAPTER FOUR
DATA ANALYSIS
4.0 INTRODUCTION
This chapter presents the data collected for this study, the process of collection and
the findings from the data. It begins with the first stage of data collection procedure
which was the semi-structured interview. A brief introduction to the respondents’
profiles’ is carried out to give an understanding of their relevance to the study.
Subsequently, content analysis is carried out on the Google Forms questionnaire from
the respondents to support the assumption that staff motivation is positively linked to
organizational productivity. The findings are concluded by analysing the stages of
motivation measures being adopted by NESG towards maximizing the productivity of
its staff. In concluding the chapter, all significant results are summarized in the
analysis section, with immediate conclusions drawn.
4.1 SEMI-STRUCTURED INTERVIEWS
In chapter three, 10 NESG staff were selected for semi-structured interviews with 4
accepting to participate. The table below shows the staff, their departments, date of
interview, and position of respondents. All interviews were conducted at the NESG
office in Lagos.
NAME
DESIGNATION
Mr. C
RESEARCH
ANALYST
ASSISTANT
19/08/14
RESEARCH TEAM
LEAD
IT/PROGRAMMES 19/08/14
SPECIALIST
CORPORATE
20/08/14
SERVICES
OFFICER
Mr. W
Mr. F
Mrs. T
DATE
INTERVIEW
21/08/14
27
OF
4.2 RESPONDENTS’ PROFILE
Mr. C- He is a part of the research team and has attended several professional
research based advocacy trainings as a staff of the NESG for 2 years.
Mr. W- He is the oldest staff amongst the respondents and has an in-depth knowledge
of the company’s corporate culture for the last 10 years.
Mr. F- He has handled the NESG’s Information Technology Unit for about a decade.
Mrs. T- She is a contract staff who handles public relations for the company. She is
still quite new in the company but has stayed long enough to understand the politics
of the organization.
4.3 INTERVIEW FINDINGS
The semi-structured interviews gave room for the respondents to give their in-depth
opinion of the issue, although mainly in the areas of interest to them. The interviews
were done via Google Forms and recorded, while the respondents were made aware of
this procedure prior to the interview of which they had no objections. The interview
questions were structured around the research question and sub-objectives. Probing
the respondents’ responses facilitated insight into the motivation for certain
approaches used by NESG. The findings of this research have been structured to
follow the research questions and sub-objectives as follows:
28
4.3.1 TRAINING FOCUS
With the use of Google Forms, the 4 interviews were analysed highlighting the
statements that related to the issue of training and development. Check figure below.
Using this method, the training and development focus can easily be identified,
compared, and analysed.
A page from the NESG 2013 AGM report
Three quarters of the respondents were of the opinion that there is an extremely
positive relationship between staff training (capacity building in NGO terms), employee
motivation and staff productivity.
29
4.3.2 SELF FULFILMENT
Questions focusing on self-fulfilment as a factor that affects motivation were also
captured. It was discovered that all the respondents considered self-fulfilment as a key
outcome of motivating employees. This then shows a positive relationship between
self-fulfilment, employee motivation and staff productivity.
4.3.3 MANAGEMENT STYLE & SUPERIOR- SUBORDINATE RELATIONSHIPS
Questions focusing on the management style adopted by NESG, and how it affects the
company’s staff motivation were also asked. The ratio of respondents who claimed that
the firm uses a Command & Control leadership system was proportionate to those
other respondents who were of a different thought that the firm uses a Laissez-Faire
system. This then shows a neutral relationship between management style, employee
motivation and staff productivity in this case.
On the other hand, in the area of personal relationships between employee and
employer, all the respondents believed social relationship is a key factor that affects
staff motivation which then affects productivity.
30
NOTE: Data-washing and coding could not be used based on the small quantity of
data made available for the research, as only 4 out of 10 initially targeted respondents
answered the survey-questionnaires sent to them.
31
CHAPTER FIVE
IMPLICATIONS, RECOMMENDATIONS AND CONCLUSION
5.0 INTRODUCTION
The research was carried out to gain a better understanding of the best approach
towards effectively motivating labourers to increase their level of productivity at work.
A good number of studies have been carried out on this precise subject matter in
Nigeria. However this study in particular focuses on the motivation techniques being
used by NESG and how other firms in Nigeria can benefit from adopting such
strategies in their management affairs. This research aimed at contributing to theory,
practice and knowledge on employee motivation. The research questions are as
follows:
What is the link between staff motivation and the productivity of a firm?
Is there any positive relationship between motivational factors and higher
productivity for the older staff members of NESG?
Is there any positive relationship between motivational factors and attitude to
work for newly recruited staff of NESG?
5.1 FINDINGS
The findings of the research are as follows:
The link between staff motivation and organizational productivity is that the
latter is basically influenced by the former. Staff motivation pushes workers of a
firm to do their best while on the job which collectively increases productivity of
such a firm.
A positive relationship exists between motivational factors and the level of
productivity of older staff of NESG.
A positive relationship exists between motivational factors and the level of
productivity of newly recruited staff of NESG.
32
The responses provided by the interviewees to the above question helped answer the
research questions.
5.1.1 OTHER FINDINGS
Other findings of the project are as follows:
Motivation is a tool that is useful in sustaining the efficiency and effectiveness
of workers in an organization, and this fact further reveals its indispensability.
More so, various means of motivation such as, good remuneration, welfare
services and training of staff etc. are collectively used by the organization.
Conclusively, the task of using motivation towards achieving higher productivity
is worthy considering all the accruing benefits earlier stated.
5.2 IMPLICATIONS OF FINDINGS
The implications of the research findings are that the more motivated an employee is
the higher the probability of him being effective while on the job. However, this does
not discount the fact that there will always be exemptions, as human beings are
different and do not react the same way towards certain actions. Some workers even if
motivated may still not perform effectively at work based on factors such as laziness or
ignorance.
5.3 DISCUSSION
The Motivational Theories sited in this research are classified as Content Theories
based on the definition by Pritchard and Ashwood that motivation is a process used to
allocate energy to maximize the satisfaction of needs. Various sets of theories exist on
the topic of motivation, but as previously stated- there is no best theory to be used
based on the dynamic nature of man and the continuous evolution of his needs.
33
Employees base their motivation on the outcome, or the rewards or benefits of what
they will receive from their input, or performance (Jones and George 2011). In regards
to this statement one must consider what is more important to his employees based
on their personalities, interests, skills, job types and moods. An employer must study
his staff to know whether they prefer intrinsic motivation over extrinsic motivation, or
vice versa. I personally believe that intrinsic motivation is most important as this is
driven by an employee’s level of interest in a task itself, and exists within the
individual rather than relying on external pressures or a desire for reward.
One common denominator of almost all motivational theories is “achievement through
learning” which is majorly intrinsic motivation related. An employer of labour can
achieve employee motivation by providing a learning environment where his employees
are given tools to learn with the advances in the company’s industry, as well as
through self-development to yield a motivating and learning environment. According to
Jones and George, there are 5 principles to creating and managing a learning
organization:
1. Empower employees to experiment and be creative;
2. Encourage employees to use complex or sophisticated ways of thinking;
3. Promote group activities and team learning at the work place;
4. Build a shared organizational vision;
5. Use a systems mode of thinking.
By utilizing a strategic approach to creating a learning environment with team
building, social interaction, goal setting through team effort, the company is setting up
an environment where an employee feels valued, invested in, and provided with
opportunities to self-actualize their potential. This strategy and type of organization
can draw in a skilled talent pool that is willing and desires to learn, and retain them.
Thus the investment in them is profitable, and their input to the company will match
the outcomes of reward the company offers. The NESG can be used as a form of
reference in this case as its total income in the year 2013 was about N285.8 million
which represents a 6.8% increase over its income from 2012 at N267.4 million; and
the year under review was when its staff members were trained the most based on a
34
World Bank IDF grant which the firm acquired to improve its in-house training.
However; a company cannot just focus on a learning environment only to motivate
employees, but it’s the best way to motivate them to stay with the company while
increasing its competitive advantage. If a company has employees and candidates that
want to work there, they have won half the battle. Pay, performance appraisals, health
and educational benefits, and the ability to move up within the company should be
considered as well to maintaining a healthy motivational balance.
A company’s learning environment can impact the motivation of an employee. Highly
motivated employees possess high performance, high input, a desire to learn,
innovate, and grow with a company as long as the company provides desirable
outcomes. In turn, the company will have seasoned staff that is skilled and motivated
to advance the company through innovation and customer retention. The first step in
a company’s plan to create a learning environment is realizing the value of employees
and how they want, and need, to be motivated.
5.4 RECOMMENDATIONS
The following recommendations will go a long way in enhancing the effectiveness and
usefulness of motivation in most organizations.
Since motivation is very effective towards achieving higher productivity, there is
need for managers to regularly use it in order to benefit from its effectiveness.
Companies should continuously embark on recruitment and training of staff in
response to their needs.
The various means for motivation discovered and stated in chapter two and the
concluding part of this research work, should be strictly adhered to by
managers so that the productivity level enjoyed in the course of using
motivation can be maintained and even increased.
Other firms should adopt the motivation techniques of NESG to effectively
achieve their goals.
35
5.5 SUGGESTIONS FOR FURTHER STUDY
Other research studies can be established as a follow up to this thesis. Such studies
can focus on topics like “The Link between Health, Safety & Environment (HSE) and
Effective Motivation of Workers” or “The Use of Best Practises in Business to Motivate
Workers”.
36