Project Materials

EXTRINSIC MOTIVATION AND STAFF PRODUCTIVITY (A CASE STUDY FCMB RIVERS STATE)

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Extrinsic Motivation is the most important matter for every organization public or a private sector. For the success of any organization motivation play an important role. All organization encounters the matter of motivation whether they are in the public or private sector (Chintallo &Mahadeo,2013). According to Chaudhary & Sharma (2012) basically motivation word is derived from “Motive”. The meaning of “motive” is needs,wants, and the desire of the persons. So that “employee’s motivation means the process in which organization in spire employee with the shape of rewards, bonus etc. For achieving the organizational goals.

Today organization can easily change their material, needs, goods and services to other organization, or to other countries. But the only one resource which is not easily exchangeable is human resources. Human resources is the very important or most competitive assets of any organization that cannot be exchangeable. Human resources or human assets mean the workers or the employee of any organization. So the motivation is main factor that affect the human resources of the organization. The organization should be motivating their employees for the best performance or for achieving the organizational goals.  In fact motivation is the best tool for best performance. Today there are many discussions about motivation and the relationship of employee’s efficiency and the organizational efficiencies. Motivation will lead to the fact that workers or employees of the organization will seriously do his duties and responsibilities (Azarand Shafighi, 2013). Attractive Salaries or pays also a Valuable tool and play an important role to increase employee’s performance and also increase the productivity of an organization (MUOGBOU.S, 2013).

According to Iqbal et al.(2012),Employee’s motivation and their ability  collectively participate into employee’s performance and in their difficult tasks given by the manger are to get maximum productivity. Now a days researcher has more concerned with increase productivity, perfection and working ability. Employee’s needs and wants having more important in research history.

Motivation is one of the most important term of psychology and most of mangers who want maximum output and productivity.They tackle this is with a good way and motivate their employee in batter way. And also increase the cooperation between employee and mangers, it also encourages their responsibilities. And also encourage participation their subordinates, to take their responsibilities in batter way and also help to overseas other employee and monitor their performance. And motivate get their maximum interaction toward work and knowing employee’s working capacity and assign work according to their capacity to get maximum productivity (Ali,AbrarandHaider,2012).

Another way used to monitor employee performance is Performance Appraisal. By performance appraisal we can monitor quality of performance of an employee. Employees play important role in the customer perception about the company. Company spend huge amount of money to gain customer loyalty but they forget the Employees motivation. Customer interact with the employees and also carry out company image in their mind through their behavior and attitude.

So, company should be moving their attention toward the employee motivation. Now the era of globalization companies face competition in the market, if company could not successfully motivate their employee. Company didn’t exist in competitive environment of business (Ahmad, 2012).

1.2 STATEMENT OF PROBLEM

The performance of organizations and employee motivation has been the focus of intensive research effort in recent times. How well an organization motivates its workers (Intrinsic or Extrinsic) in order to achieve their mission and vision is of paramount concern. Employers in both private and public organizations are becoming increasingly aware that motivations increase productivity. From the foregoing, and looking at today economic trend, it is evident that the pace of change in our business environment presents fresh challenges daily. Despite these, no research work has targeted to investigate the influence of extrinsic and intrinsic motivation on employee’s performance in Nigeria.  Existing studies in Nigeria, aimed at the effect of  motivators  and  hygiene  on  job  performance  by  Jibowo (2007). Related studies on this study was on influence of monetary incentives and its removal on performance (see Bergum and Lehr‘s, 2004). Of these studies in Nigeria, very few assessed the influence of Extrinsic and intrinsic motivation on employees ‘performance on manufacturing sub-sector of the economy. Moreover, scanty studies have been done on motivation in Africa (Centres and Bugental, 2007), Daniel and Caryl1998 in Kenya, Akerele (2001) did not cover indeed, the areas that the objectives of this work covers. To this effect, this study attempts to the relationship between extrinsic motivation and staff productivity.

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to examine the relationship between extrinsic motivation and staff productivity. The specific objectives are as follows:

i.        To examine the relationship between salary/wages and staff productivity.

ii.       To examine the relationship between incentives and staff productivity.

iii.      To examine the relationship between promotion and staff productivity.

iv.      To examine the relationship between job security and staff productivity.

1.4 RESEARCH QUESTIONS

i.        What is the relationship between salary/wages and staff productivity?

ii.       What is the relationship between incentives and staff productivity?

iii.      What is the relationship between promotion and staff productivity?

iv.      What is the relationship between job security and staff productivity?

1.5 SIGNIFICANCE OF THE STUDY

The study will serve as guide to the management of Pabod Breweries in particular and the Nigerian managers as a whole in determining the best way of getting the best output from their employees who are presently demoralized in the face of the prevailing socio-economic hardship.

The study is also aimed at contributing to the literature in Motivation particularly with reference to employee performance in an organization. Also, this work on completion will broaden the essence for application of modern motivational techniques for both public and private sectors respectively.

1.6 SCOPE OF THE STUDY

The study examines the relationship between extrinsic motivation staff productivity. The study limits scope to Pabod Breweries located in Trans Amadi Port Harcourt River State Nigeria. It further tries to provide a solution to basic problems by testing some of the prepositions of Nigerian situation.

1.7 LIMITATIONS OF THE STUDY

The study is limited to the following limitations:

The level of frankness in response to questions by the respondents is quite doubtful.

Finance: Accessing fund for the research work as difficult and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.8 DEFINITION OF TERMS

Employees: Employees would refer generally to members of staff of an organization, both management and non-management and would be used interchangeably with workers.

Employees Needs: This refers to basic wants of employees, the desire to satisfy which activates their energy to satisfy and the fulfillment of which engender positive work attitudes. In the study, these needs are categorized into three: Existence, relatedness and growth needs.

Motivation: Motivation would be seen as that energizing force consciously applied through skillful appel to employees basic needs compel positive work attitude to achieve organizational goal.

Promotion: Elevation of an employee to better in terms of greater responsibilities, enhanced authority more prestige or status greater skill increased remuneration and fringe benefits.

Performance: The action or process of performing a task or function.

Work Attitude: This would refers to employee’s state of mind as expressed in concrete action behaviour or their manner of performing their duties.