Effect of Employee Motivation on Organizational Productivity in Nigeria Bottling Company (a Study of Coca-cola Bottling Company in Lagos State)
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.
This chapter shall extensively examine literatures that are associated and significant to the subject of this study. The review covers the concepts, empirical and theoretical explanations required to facilitate a complete examination and comprehension of the research. It provides an insight of other people’s thoughts and opinions on the effects of motivation on employees and how it affects their productivity levels.
What is Motivation? James and Stoner (2009) Suggested that motivation can be seen as those psychological characteristics of humans that contribute to an individual’s level of commitment towards a goal. It comprises several elements that causes, directs, and sustains an individual’s behavior in a specific way. He went further to say that motivation is one of a number of elements that affect an organization’s productivity and performance levels respectively.
Jennifer and George (2006) defined motivation as a mental force that governs the direction of an individual’s behavior in an organization, an individual’s level of effort, and an individual’s level of determination when faced with obstacles. In addition she stated that even with appropriate strategies and administrative structures in place, an organization can only be productive if its employees are sufficiently motivated to perform at higher levels.
Hellriegel (1996) viewed motivation as any impact that brings out, guides, or sustains a person’s goal-directed behaviors. Ivancevich (1994) Suggested that motivation refers to those set of forces that triggers certain behaviors and regulates its form, course, intensity and duration. Obikeze (2005) viewed motivation as the process of guiding an employee’s actions towards a particular end via the manipulation of rewards.
Kreitner (1995) described motivation as the mental process giving behaviors the will power, drive, and tendency to act in a certain way in order to attain certain unsatisfied needs. Young (2000) also
suggested that motivation could be defined in relation to forces within employees that justifies the levels, directions, and resolution as regards efforts they expend in the workplace. George and Jones (2012) termed work motivation as self- induced forces that control the directions and behavioral patterns of the workforce in an organization taking into account their levels of commitment and enthusiasm towards the successful accomplishment of set goals.
Berelson and Staines (2003) opined that motivation is an inner state that inspires actions as well as direct and channel behavior towards a goal. Guay, Chanal, Ratelle, Marsh, Larose & Boivin (2010) argued that motivation deals with “the motives underlying behaviors”. In addition, (Broussard & Garrison, 2004) defined motivation simply as “those elements that pushes an individual to act or not to act”.
Beach (2005) described motivation as the individual’s readiness to expend energy so as to accomplish set goals. He is of the opinion that motivation relates to a person’s enthusiasm for specific patterns or behaviors. Also he further stated that the ambitions, needs and wants of a person may influence, direct and control their attitude. Davies (2005) suggested that the concept of motivation entails what goes on inside a person that results certain behaviors. As regards organizations, he stresses that an absence of motivation is reason enough for a worker not to attain gratification from the work.
Agbeto (2002) also stated that motivation is anything that moves an individual towards a specific goal. Furthermore Koontz (2008) argued that motivation as a term is applicable to the drive, yearnings, needs and wishes of a person. From the above definitions it can be said that motivation as a whole, is more or less fundamentally concerned with those forces or elements that triggers certain human actions or behaviors. It can also be deduced that creating a work place environment in which adequate motivation is sustained has a positive impact on employee performance. This is because employee motivation is the core of the field of an organization’s behavior and a high level of motivation encourages employees to be highly productive and perform better at their jobs. However creating such an environment still poses a challenge to managers and organizations as a whole. This problem may be based on the fact that an organization’s productivity levels increase as the level of employee motivation rises.
Types of Motivation
Lin (2007) proposed that motivation can either be intrinsic or extrinsic. In the workplace as well as other settings, motivation is often classified as being naturally extrinsic or intrinsic (Martocchio, 2006). Lin, 2007; Ryan & Deci (2000) also identified several classes of motivation namely; extrinsic and intrinsic motivation.
Intrinsic motivation: can be referred to as motivation derived from within the individual or from the activity itself, it can be said to have an affirmative outcome on the conduct, performance and well-being of an individual (Ryan & Deci, 2000).
In the workplace, it springs from impulses that are characteristic of the work itself .It is what workers derive because of their success in completing a task. Such Intrinsically motivated rewards comprises the chance to showcase expertise and abilities, receive gratitude, good recognition, freedom, responsibility and mutual respect. A worker that is inherently inspired, according to George and Jones (2012) would be devoted to his job for as long as he believes the job is able to satisfy his wants. Intrinsically driven work conduct are behaviors performed for one’s own sake, that is, the inspiration to work emanates from within the individual. Here the worker is motivated because he derives happiness in doing the job.
For instance, a domestic worker in an organization whose pay is quite low compared to other workers cleans the surroundings every time and even put in extra hours to clean not because of an increase in pay but because of the happiness derived in doing it. Such a motivation originates from rewards that are considered inherent to a job or activity itself such as the pleasure an individual derives from a game of chess or the love of playing soccer. Therefore when an individual engages in activities without any apparent inducements with the exception of the activity itself such an individual is said to be motivated intrinsically.
On the other hand extrinsic motivated behaviors are those that are external to the activity or the work, such as compensation, conditions of work, welfares, safety, and elevation etc. these motivators are usually determined by the company the individual works for. Extrinsic behaviors require workers to work hard or put in extra hours so as to get the reward that comes with it. Workers may not like the task but are inspired by the additional benefits, awards etc. It is a behavior that is put up to obtain substantial or social rewards and to evade chastisement. For instance, a receiver in a guesthouse is aware that working hard and diligently would bring about additional benefits and even promotion may not be happy putting in extra hours but the incentive forces him/her to work harder. George and Jones (2012) an extrinsically inspired individual will be dedicated for as long as external rewards are available.
This chapter focuses on the systematic approach for solving the research problem in the study and highlights the instruments and techniques used to seek solutions to the research problem. It consists of the research design, sample population, sample frame, sample size determination, sampling techniques, research instruments, validity and reliability of research instruments and methods of data analysis. The purpose of this research is to examine the effect of employee motivation on organizational productivity. The Coca-Cola Bottling Company Plc Ikeja, Lagos state was the only selected organization used as a study in this research.
Coopers and Schindler (2006) suggested that the research design is the structure of investigation aimed at identifying variables and their relationships to one another. It refers to the blue print, plan and guidelines utilized in data analysis with respect to the study. It is a necessary step required in a research process if research problems and hypothesis are to be adequately addressed. Descriptive research design and causal research design as well as the survey method was used. Descriptive research design was used to describe some phenomena because it aids a researcher in gathering,
summarizing, presenting and interpreting information for the purpose of clarification while the causal research design was used to describe the effect of one variable on another that is establish cause and effect relationship (Mugenda & Mugenda, 2003). The researcher also utilized the survey strategy for this study because it creates room for gathering large amounts of data from a sizeable population in a cost-effective way (Osuagwu, 2006).
Population of the Study
The study population was 475 staff of the Coca-Cola Bottling Company Plc. The research instrument would be surveyed on the workforce of the organization considering the fact that they all fall under the category of employees within an organization (Osuagwu, 2006; Ngechu, 2006).
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS
This chapter provides a detailed analysis of data collected from field survey via the administration of questionnaire. The questionnaire comprises of three sections; A, B AND C. While section ‘A’ contains five (5) questions on the demographics of the respondents such as sex, age, education, marital status and job status, section ‘B’ contains thirty (30) questions on the aspect of motivation and section ‘C’ contains questions on productivity measures.
A total of 217 questionnaire were distributed to employees of the COCA-COLA BOTTLING COMPANY PLC Ikeja out of which one hundred and eighty five (185), representing about 85.4% of the respondents were returned properly and adequately completed. The data collected from the respondents via questionnaire were classified, organized and analyzed using the statistical package for social sciences SPSS as presented below:
SUMMARY, FINDINGS AND CONCLUSIONS
This chapter comprises discussions associated with findings of the entire research. This includes summary of the work, findings both theoretical and empirical findings, conclusions, policy implication of the findings, recommendations, limitation of the research, suggestions for further study and contribution to knowledge.
Summary of the Work
The major aim of this research is to identify the effects of workplace motivation on employee productivity using the COCA-COLA BOTTLING COMPANY PLC as a study.
Specifically, the study sought to achieve the following objectives:
- To determine the effect of employee well-being on the level of effectiveness of the worker
- To determine the effect of employee relationship with managers on the level of efficiency of the worker
- To examine the effect of compensation on the level of effectiveness of the worker
- To examine the effect of training and career development on the level of efficiency of the worker
- To determine the effect of employee motivation on organizational productivity
In addition to the objectives, chapter one contains the statement of research problem, the research questions, significance of the study, hypotheses, scope and limitations as well as an operationalization of the research variables used in the study.
In Chapter two, extensive literature and various theories on motivation such as Abraham Maslow’s hierarchy of needs theory, Frederick Herzberg’s two-factor theory and Victor Vroom’s expectancy theory was discussed in relation to productivity measures. Finally the gaps in literature were also outlined.
In chapter three, with the aim of achieving the stated objectives of this study, the researcher adopted the descriptive research design and the survey method. The research instruments used for
data collection was the questionnaire. The questionnaires were administered 217 staff of the COCA-COLA BOTTLING COMPANY Plc. Out of the 217 administered, 185 were retrieved and analyzed.
Chapter four involves the presentation and analysis of data which was gotten from questionnaires administered. Descriptive statistics was used for the analysis of the data, linear regression analysis was also used to test all the hypotheses.
Chapter five contains discussion of findings with respect to both theoretical and empirical findings.
Employees are and should be considered the most vital above other factors of production, the most valuable resource available to an organization. This is because they are an integral part of the organization as such it is very important for organizations, in pursuit of a competitive edge, to ensure that the satisfaction of their employees is made a top priority. This is to ensure that employees display positive attitude to work through improved performance and productivity levels. Also it is important to note that a lack of adequate motivation results in low productivity and vice versa.
Furthermore the advent of Globalization has resulted in the ability of different organizations to source for employees across several countries and the previously existing barriers have been reduced, this has resulted in higher competition for personnel with the right skills and experience. As such it is important for employers and their managers who value their staff to recognize those factors that affect employee performance and productivity levels on the job or in the workplace and ensure they are fulfilled accordingly. (Brown & Yashioka, 2003; and Sinha & Sinha, 2012). The concept of motivation may be complex particularly in the workplace and may pose a serious challenge to managers as it is relative to individuals. This is because people differ in what they need and want as such what may be seen as a source of motivation to an individual may not seem so to another. As such managers tend to find it extremely difficult in coping with such a dilemma in trying to figure out how to keep members of the workforce motivated. Although, several factors may affect worker productivity levels in an organization such as organizational culture, leadership style, organizational strategy and structure etc. The aspect of Motivation however plays a major role in improving worker productivity levels and therefore should not be underestimated.
This study concludes that employee motivation be it intrinsic or extrinsic in nature has a significant effect and is a predictor of productivity levels in an organization. It also concludes that both intrinsic and extrinsic factors of motivation appeal to employees and a right mix of both is essential in bringing out best performances from a workforce. These findings validate the Herzberg two- factor theory, Maslow’s hierarchy of needs theory and Vroom’s expectancy Theory. From the findings of the study one can deduce that most workers perceive extrinsic motivation as generally having a larger influence on the psychological aspects of employee productivity. We also found that intrinsic motivation is of importance to employee productivity, albeit to a lesser extent psychologically but rather as a part of the total package that is offered to the employee by an organization.
The following recommendations are made based on the findings of the study;
- Managers must ensure employees are adequately motivated. Employee well-being shouldbe given due consideration and health and well-being programs should be organized to cater for the needs and welfare of employees.
- Managementshould encourage interpersonal relations amongst co-workers and their managers to promote a sense of belonging and unity amongst staff. Also managers should ensure employees are involved in decision making processes and given a chance to air their
- Also management must ensure they create a work environment that is conducive forworkers with adequate working conditions as well as providing the right tools and resources to ensure worker effectiveness in discharging their respective
- Furthermore proper scheduling of job activities is key to achieving efficiency in the Adequate compensation packages in form of monetary or non-monetary rewards are essential in order to ensure that employees stay productive. Management should ensure that rewards and benefits are fairly, justly and competitively allocated to employees.
- Management must also strive to ensure that all employees engage in training programs toacquire new skills and also have equal opportunity to utilize their skills and Management should make sure that career development opportunities are clearly communicated to employees.
- An established career path and an adequate development plan should be put in place foremployees, development programs should be linked to each employees career needs and not just the organization’s needs. Employees should be selected for sponsored training programs fairly and justly.
- Organizationsshould ensure that performance management provides adequate information about strength and weaknesses of employees in form of feedback from employee
- Employeeswho offer the same level of inputs with respect to skills, efforts, qualifications, experience, should be entitled to equitable outcomes in terms of pay, promotion, job security, and opportunity for Additional inputs and outstanding performance should entitle an employee to additional rewards.
Finally, this study recommends that management should make policies that aids in ensuring that employees are adequately extrinsically motivated to remain intrinsically motivated on the job. This will in turn enhance or boost employee morale resulting in a competitive edge through higher commitment levels, employee engagement, lower turnover and improved performance and productivity levels.
Limitations of the Study
The findings of the study should not be generalized because of the scope of study. Data collection was limited to the staff of Coca-Cola Bottling Company and therefore findings of this study may not reflect or hold true in other organizations as such may not be generalized to organizations not included in this study. Furthermore, the study utilized some variables of workplace motivation, and employee productivity, other variables for these concepts may not yield exactly the same results. Also the researcher is limited only to the information provided by the respondents in the research and therefore cannot determine the reliability and accuracy of the information provided. Finally the researcher can only cover limited works given the scope of the study.
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