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MOTIVATION IT’S EFFECT ON EMPLOYEES PERFORMANCE IN A BUSINESS ORGANIZATION

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ABSTARCT

This study was carried out to examine motivation it’s effect on employees performance in a business organization using Qirad Ventures, Ibadan, Oyo State as a case study. The study was specifically set to ascertain whether there is a significant relationship between motivation and employee performance, find out the major motivational factors that influences employee performance in Qirad Ventures, Ibadan, Oyo State, ascertain whether  there is adequate availability of motivational scheme for employee of Qirad Ventures, Ibadan, Oyo State, and find out the impact of motivation on employees’ performance in Qirad Ventures, Ibadan, Oyo State. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of staff of Qirad Ventures, Ibadan, Oyo State. In determining the sample size, the researcher conveniently selected 119 respondents and 100 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and mean scores, while the hypotheses was tested using Pearson correlation statistical tool, SPSS v23. The result of the findings reveals that there is a significant relationship between motivation and staff performance. Furthermore, the study showed that motivation has significant impact on employees performance in Qirad Ventures, Ibadan, Oyo State as early payment of salary improves staff commitment, availability of motivational scheme improves staff productivity, and provision of  job security improved staff performance. The study recommends that the management of the organization should provide adequate fringe benefits to the workers and such benefit should be geared towards meeting the needs of the workers. The provision of adequate fringe benefits to the workers will propel them to put in their best in the attainment of corporate objectives. To mention but a few.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The performance of employees and productivity of the workforce, as well as that of the company is significantly increased by motivation. Business organizations are often times concerned with the motivational techniques which can consistently increase and sustain high productivity of employees. These organizations have implemented a number of tactical measures to enhance performance and efficiency among employees, including motivation.

Robbins (2001) defines motivation as forces that energizes, direct and sustains a person’s effort. Motivation is an important determination of human behaviour. It is an action that leads to the achievement of goals and objectives. According to Elizabeth (2009), motivation is a guiding principle and force that pushes individuals to focus on a particular path to achieve a set goal or objectives. Thus, motivation is the key to creating an enabling environment where optimal performance is possible.

Employee motivation drives the quality of work and boosts performance in an organization. Production can continue unhindered when employers maintain staff motivation. As a result, organizations create tremendous harmony throughout the entire workflow, which positively affects performance and productivity of employees. Apparently, it has been argued that motivated employees are productive employees, as they want to work hard and effectively for the business when motivated. Motivated employees means staff retention and company loyalty, which in the short run will give birth to growth and development of business (Jishi, 2009)

Armstrong (2006) highlights two types of motivation, namely intrinsic and extrinsic. Intrinsic motivation is when employees uses their internal drive to motivate themselves to carry out tasks while extrinsic motivation, on the other hand, includes things that organization do for their employees in order to motivate them to take the desired actions in achieving the organization’s goals. People who are extrinsically motivated view their job as a way of fulfilling their needs.

Furthermore, the motivation of an employee in manufacturing companies plays a major role in achieving high levels of satisfaction among its customers (Petcharack, 2004). Although, every employee has his or her own set of motivations that ginger him or her to work hard or not as the case may be. However, some employees are motivated by recognition, certificate and praise whilst others are motivated by cash incentives, financial bonuses,etc. Therefore, it is essential for managers to understand what really motives employees, without making just an assumption. 

Additionally, managers are responsible for creating an environment that is conducive for improved performance, so as to induce the right behavior from employees in the organization and also, ensuring that working conditions are adequate and welfare packages are attractive to the employees (Akanbi, 2002). It is well acknowledged that rewards like good salary, good working conditions, the availability of suitable housing, promotions, opportunities for staff training, etc. inspire employees to boost their capacity for performance that help in achieving the organization goals.

In the nutshell,  organizations would not last long and the set goals will not be achievable if their employees are not motivated. An individual who has ability, skills and knowledge would not do much without motivation. Also, the performance of an employee does not depend largely on his ability, intelligence, skills and knowledge but on the motivation which he has (Abbegleen, 2001).  However, human resources must be activated, trained, developed and above all motivated in order to realize the organizational goals. 

1.2 Statement of the problem

Employee motivation is the degree of commitment, creativity and energy workers in a company bring to their jobs. It does not matter whether the company is growing or dying, designing ways to motivate employees should be a major concern for managers. Employee motivation seems to be chaos in business enterprises because the owners always have in mind that they have spent many years to build such businesses and as such they find difficulties delegating meaningful responsibilities to others. However, entrepreneurs should be aware of the pitfalls of low employee motivation in small businesses.

Motivation of an employee is very important in every organization, in order to improve the performance of individual employee and organization in general motivation must be conducted in very careful manner because when employees are not properly motivated it will affect the individual performance where by the employee will be dissatisfied with the work and also  organization performance will deteriorate and cause things like high employees turnover, poor employees performance, absenteeism, increasing the rate of conflicts and grievances as well as the organization might fail to achieve their targeted goals to happen.

1.3 Objectives Of The Study

The main aim of the study is to examine motivation it’s effect on employees performance in a business organization using Qirad Ventures, Ibadan, Oyo State as a case study; The specific objectives include:

1. Ascertain whether there is a significant relationship between motivation and employee performance.

2. Find out the major motivational factors that influences employee performance in Qirad Ventures, Ibadan, Oyo State.

3. Ascertain whether  there is adequate availability of motivational scheme for employee of Qirad Ventures, Ibadan, Oyo State.

4. Find out the impact of motivation on employees’ performance in Qirad Ventures, Ibadan, Oyo State.

1.4 Research Questions

i. Is there a significant relationship between motivation and staff performance?

ii. What are the major motivational factors that influences employees performance in Qirad Ventures, Ibadan, Oyo State?

iii. Is there adequate availability of motivational scheme for employees’ in Qirad Ventures, Ibadan, Oyo State?

iv. What are the impact of motivation on employee’s performance in Qirad Ventures, Ibadan, Oyo State?

1.5 Research Hypothesis

Ho: There is no significant relationship between motivation and employees’ performance.

Ha: There is a significant relationship between motivation and employees’ performance.

1.6 Significance of the Study

The findings and theories that was discussed can be used to give a clear picture to organizations on how motivated employees can improve their performance individual and organizations since motivated employees with high morale become dedicated to the organization. They also perform their jobs in the best manner. Generally, employees are motivated through facilities both financial and non-financial. Financial facilities are essential to fulfill basic and other physiological needs. In a similar manner, promotion on the basis of efficiency and experience is essential to fulfill social needs. The study is important due to offering of solutions to some problems related to employee’s motivation and on how will they perform if they are motivated.

The study provided understanding on the importance of motivation to employees on improving performance of organization where by employees’ motivation contributes in developing efficiency of employees. This study has shown what happens when employees are actually motivated and how they can improve their working efficiency and the development of working efficiency among workers which lead to maximization of production and productivity. Which enhances Management that have applied the findings from this study so as to expand its business activities in large areas for organizational profitability and growth.

1.7 Scope Of Study

This study is structured to focus on  motivation it’s effect on employees performance in a business organization. The study will be conducted in Qirad Ventures, Ibadan, Oyo State.

1.7 Limitation of the Study

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 Definition of Terms

The following terms were defined as used in this study:

Productivity: Is the ratio of output or production capacity of the workers in an organization. It is the relationship between the amount of one or more inputs and the amount of outputs from a clearly identified process.

Employees: are the workers in an organization, working for the accomplishment of the organizational goals. In this study, the employees are those staffs of the organization.


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