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BUSINESS ADMINISTRATION

THE EFFECT OF MOTIVATION ON ORGANIZATION PERFORMANCE

THE EFFECT OF MOTIVATION ON ORGANIZATION PERFORMANCE

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Research

[Duică, 2008: 142] Motivation is described as the internal and external driving forces that cause an individual to conduct an activity, what determines the limits and forms of the activity, and what directs the individual’s efforts toward reaching specific goals. The topic is whether motivation actually affects the performance of individuals at work. According to research [Deci & Gagne, 2005], there is a correlation between motivation and performance.

Employees comprise a business’s workforce, and as such, they are a vital aspect of the organization. According to Aluko (2014), an organization is only as good as the personnel that manages it. This is to imply that when employees are inspired, their morale is likely to be strong, and as a result, their performance and productivity levels will grow, so substantially enhancing the entire organizational performance level. In order to reach high levels of productivity as a means of enhancing organizational performance or productivity, managers must consistently seek ways to excite their personnel. This is because a lack of employee motivation leads to decreased productivity, which is detrimental to the performance of an organization and its continued success. Jennifer and George (2006) defined employee productivity as the level of effort exerted by an organization’s personnel towards accomplishing its goals and objectives. There are numerous methods for motivating employees to increase organizational productivity. According to George and Jones (2012), there are two types of motivation: intrinsic and extrinsic. Intrinsic motivation results from an employee’s inherent desire to complete a work out of self-interest, as opposed to a need or desire for an external reward. External motivation is the form of motivation that emerges when an employee is obliged to operate in a certain manner due to his or her wants for external benefits or in order to avoid punishment.

The success or failure of an organization depends on the degree to which its employees are motivated by their work and perform with dedication. Motivation has a crucial part in boosting employee performance and productivity. The relationship between employee motivation and employee dedication, productivity, and business profits is direct. An organization should identify which of its personnel are exceptional and which require training. Every employee is motivated to perform effectively and efficiently by their own unique set of factors. Some workers are driven by recognition, while others are motivated by compensation. Organizations should be aware of their employees’ requirements. Motivated workers are productive, cheerful, devoted, and content with their jobs. In accordance with Ouchi (2004), firms will be more profitable, effective, and efficient if their employees have faith in them, which will result in a high level of productivity and engagement. Karen Oman, individuals are reciprocal. If you treat your employees well, they will treat you well in return; if you treat them poorly, they will treat you poorly. The purpose of this study is to examine the significance of motivation in the management of people at work. Without motivation, no system operates smoothly and no organization achieves its goals. According to Jishi (2009), inspired employees indicate staff retention and loyalty, which, in the short term, will result in business success. Using the Nigeria Bottling Company as a case study, this research will evaluate the impact of motivation on organization.

1.2 Description of the Problem

Business organizations in Nigeria, particularly manufacturing industries, failed to recognize the importance of motivation as a concept, whether intrinsic such as employee well-being, relationship with co-workers, relationship with managers, organizational policies etc. or extrinsic such as training and career development, good working conditions, compensation, promotion amongst other factors that enhance or improve employee performance and organizational productivity (Akerele, 2001). Although a number of other factors, such as inadequate strategic and structural changes in decisions and executions, lack of infrastructure, leadership styles, and organizational culture, may also be responsible or even cause a fall in productivity. Recent research linking workforce motivation and productivity has placed an emphasis on employee viewpoint, needs, and expectations as elements influencing their performance and productivity levels, respectively. This research intends to investigate the effect of motivation on organization performance using Nigeria Bottling Company (NBC) as a case study. The majority of manufacturing industries are more concerned with profit maximization, which is impossible unless the employees are willing to work and their performance increases.

1.3 Objective of the Research

This study’s primary objective is to determine the impact of motivation on NBC’s organizational performance. Specifically, the study aims to:

Determine the relationship between employee well-being and productivity.

Analyze the impact of motivation on NBC’s organizational performance.

Examine the impact of employee-employer relationships on the degree of employee productivity.

4. Determine the impact of compensation on an employee’s level of productivity.

1.4 Investigative Question

What effect does employee well-being have on an employee’s productivity?

Exists a relationship between motivation and NBC’s organizational performance?

Does the relationship between employees and their employers have any effect on employee productivity?

What influence does compensation have on an employee’s level of productivity?

1.5 Scientific Hypothesis

Ho: motivation has no substantial impact on NBC’s organizational performance.

Hello: motivation has a huge impact on NBC’s organizational success.

1.6 Importance of the Research

This research will be beneficial in multiple ways. Initially, it will introduce business owners, managers, and organizations to the concept of motivation and its impact on productivity. In addition to providing managers and business owners with an understanding of the importance of knowing their employees and ensuring adequate motivation in their organizations, this research will also enable the government at various levels to formulate policies that will enhance the stability, growth, and development of businesses in the region in matters pertaining to organizational productivity by seeking ways to ensure that employees are sufficiently motivated.

And finally, this research will serve as a guide for other researchers who conduct similar studies and as a point of reference for subsequent research.

1.7 Scope of the Research

This research will be done at Nigeria Bottling Company in Ikeja, Lagos, and will therefore examine employee motivation and its influence on the performance of the firm.

1.8 Limitations of the Research

During the course of study, obtaining funding for general research will be a struggle.

THE EFFECT OF MOTIVATION ON ORGANIZATION PERFORMANCE

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