Post on 23-Dec-2021
i
ASSESSMENT OF MOTIVATION AS A TOOL FOR GOOD
PERFORMANCE PERSPECTIVES FROM NATIONAL SOCIAL
SECURITY FUND (NSSF)
ii
ASSESSMENT OF MOTIVATION AS A TOOL FOR GOOD
PERFORMANCE PERSPECTIVES FROM NATIONAL SOCIAL
SECURITY FUND (NSSF)
By
Lydia Mbonde
A dissertation report submitted to Mzumbe University, Dar es Salaam Campus
College in Partial Fulfillment of the Requirements for the Award of the Master
Degree of Science in Human Resources Management of Mzumbe University.
2013
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CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for
acceptance by the Mzumbe University, a dissertation entitled Assessment of
Motivation as a Tool for Good Performance, in partial/fulfillment of the
requirements for award of the Degree of Master of Science in Human Resources
Management of Mzumbe University.
…………………………………
Major Supervisor
…………………………………
Internal Examiner
Accepted for the Board of
…………………………………………
SCHOOL DEAN/DIRECTORATE
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DECLARATION
AND
COPYRIGHT
I, Lydia Mbonde, declare that this thesis is my work that originated from my own
efforts, and that it has not been presented and will not be presented to any other
University for similar or any other degree award.
Signature
Date
© 2 013
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf,
on intellectual property. It may not be reproduced by any means in full or in part,
except for short extracts in fair dealings, for research or private study, critical
scholarly review or discourse with an acknowledgement, without the written
permission of Mzumbe University, on behalf of the author.
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ACKNOWLEDGEMENTS
First and foremost, I offer my sincerest gratitude to my supervisor, Ms Marialauda
Goyayi, Who supported me throughout my thesis with her patience and knowledge
whilst allowing me the room to work in my own way. I attribute the level of my
Master degree to her encouragement and effort, and without her this thesis, too,
would not have been completed or written. One simply could not wish for a better or
friendlier supervisor.
I am heartily thankful to my Mother /Sponsor Eulalia Mbonde whose
encouragement, spiritual guidance and financial support from the initial to the final
level of Master’s degree enable me to develop an understanding that education is
everything in my life.
Thanks to Felix Mwagara (My Husband) for his advice and great support in both
emotional and physical care during my study. God bless you.
I express my thanks and appreciation to my friends for their understanding,
motivation, patience and support. Lastly, but in no sense the least, I offer my regards
and blessings to all respondents for their positive response during the study and all
those who supported me in any aspect during the completion of the project.
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DEDICATION
This thesis is dedicated to my father who is always there whenever in needing him. It
is also dedicated to my brothers to my sisters with a message ‘’it can be done play
your part.’’
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ABBREVIATIONS
BARS Behaviorally anchored rating scales
HRM Human Resources Management/Manager
HRO Human Resources Officer
HRP Human Resource Planning
MBO Management by Objectives.
MSc/HRM Master of Science in Human Resources Management
MU Mzumbe University
NSSF National Social Security Fund
PMU Procurement Management Unity
SMART Specific, Measurable, Achievable, Realistic, Timely
SPSS Statistical Package for Social Sciences
TZ Tanzania
UK United Kingdom
USA United States of America
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ABSTRACT
Employee motivation has become an important issue given their responsibility to
impart knowledge and skills to any organization. Consequently, this study
investigated the Assessment of Motivation as a tool for good Performance in
organization, having the National Social Security Fund (NSSF) Head Office, in Dar
es Salaam as the case. Also the study seeks to investigate the relationship between
motivation and performance. Specifically, the study sought to find out whether
motivation of employees had any effect on their morale to perform and; the effect of
intrinsic and extrinsic motivation on the performance of employees. A descriptive
survey research design was adapted where a total population of 150 employees was
made whereby the sample size of 50 respondents was consulted which is 33.3% of
the whole population. The primary data was collected using structured questionnaires
for employees, as well as key informant interview guides for head of section and
management. Consequently, both qualitative and quantitative data were collected.
Despite Motivation is a tool that highly influences performance, it is not well
implemented such results cannot be obtained some of the reasons that hinders good
implementation of this tool include, lack of access to various packages despite being
given or state as benefit.
In order to improve employee motivation and performance at work, the study
recommended that, the management should establish motivational scheme, policy
concerning motivation should be revised time to time, other motivational packages
should be introduced to employees and lastly personnel department should be
emphasized.
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TABLE OF CONTENTS
CERTIFICATION .................................................................................................... iii
DECLARATION....................................................................................................... iv
COPYRIGHT ............................................................................................................ iv
ACKNOWLEDGEMENTS....................................................................................... v
DEDICATION........................................................................................................... vi
ABBREVIATIONS .................................................................................................. vii
ABSTRACT............................................................................................................. viii
TABLE OF CONTENTS.......................................................................................... ix
LIST OF TABLES .................................................................................................. viii
LIST OF FIGURES .................................................................................................. ix
CHAPTER ONE ........................................................................................................ 1
BACKGROUND INFORMATION.......................................................................... 1
1.1 Introduction ............................................................................................................ 1
1.2 Background of the problem.................................................................................... 1
1.3. Statement of the problem ...................................................................................... 3
1.4. Objectives of the study.......................................................................................... 4
1.5 Research questions ................................................................................................. 4
1.7 Significance of the study........................................................................................ 4
1.8 Scope of the study .................................................................................................. 5
CHAPTER TWO ....................................................................................................... 6
LITERATURE REVIEW.......................................................................................... 6
2.1 Introduction ............................................................................................................ 6
2.2. Theoretical Concept of Motivation ....................................................................... 6
2.2.1 Types of motivation. ......................................................................................... 10
2.2.3 Theories of motivation ...................................................................................... 11
2.2.4 Herzberg’s Two-Factor Theory of Motivation ................................................. 14
2.2.5 Herzberg classified these job factors into two categories; ................................ 15
2.2.6 Motivational factors include; ............................................................................ 16
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2.2.7 Limitations of Two-Factor Theory; ................................................................ 16
2.2.8 Implications of Two-Factor Theory; ................................................................ 17
2.2.9 Employee Motivation and Organizational Effectiveness................................. 17
2.2.10 Importance of Motivation .............................................................................. 18
2.2.11 Performance appraisal and Performance Appraisal Purpose………………...22
2.2.12 Vroom’s Expectancy Theory .......................................................................... 26
2.2.13 The relationship between motivation packages to performance ..................... 28
2.2.14 Employees perceptions towards motivation packages offered ....................... 30
2.2.15 Content theories .............................................................................................. 33
2.2.16 Empirical literature review.............................................................................. 34
2.2.17 Conceptual Framework ................................................................................... 36
CHAPTER THREE ................................................................................................. 40
RESEARCH METHODOLOGY ........................................................................... 40
3.1 Introduction .......................................................................................................... 40
3.2 Research Design................................................................................................... 40
3.3 Area of the study .................................................................................................. 40
3.4 Target Population ................................................................................................. 40
3.5 Sampling technique.............................................................................................. 40
3.6 Sample size........................................................................................................... 40
3.7 Data type and collection methods ........................................................................ 43
3.7.1 Primary Data ..................................................................................................... 43
3.7.2 Secondary data .................................................................................................. 44
3.8 Data analysis ........................................................................................................ 44
CHAPTER FOUR.................................................................................................... 46
PRESENTATION OF FINDINGS AND DISCUSSIONError! Bookmark not defined.
4.0 Introduction .......................................................................................................... 46
4.1 Background Characteristics of respondents ......................................................... 46
4.2 To identify the types of motivation packages provided by NSSF to employees. 46
4.2.1 Reasons for motivation ..................................................................................... 48
4.3 The influence of motivation packages on overall organization performance ...... 52
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4.4 Indicators of performance in NSSF...................................................................... 54
4.4.2 Working overtime ............................................................................................. 54
4.4.3 Team working ................................................................................................... 54
4.4.4 Low rate of Absenteeism .................................................................................. 54
4.5 How motivation correlate with work performance. ............................................. 55
4.5.1 Monetary motivation packages ......................................................................... 55
4.5.2 Promotion package............................................................................................ 55
4.5 3 Good workers relationship ................................................................................ 55
4.6 Employees opinions towards the motivation offered........................................... 56
4.7.Employee opinions on motivation as tool to influence performance .................. 56
4.8. Lack of Incentives Motivation cause poor performance..................................... 58
CHAPTER FIVE...................................................................................................... 59
CONCLUSION AND RECOMMENDATIONS ................................................... 59
5.1 Introduction .......................................................................................................... 59
5.2 Summary of the major findings............................................................................ 59
5.3Conclusion ............................................................................................................ 59
5.4 Recommendations ................................................................................................ 61
REFERENCES......................................................................................................... 64
APPENDICES .......................................................................................................... 68
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LIST OF TABLES
Table 3.1: The Number of Respondents .................................................................... 42
Table 4.1 Reasons for Motivation.............................................................................. 49
Table 4:3 Motivation encourage performance of organization.................................. 57
Table 4.4 Lack of Incentives Motivation cause poor performance............................ 58
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LIST OF FIGURES
Figure. 2.1 Maslow’s five hierarchies of needs. ........................................................ 12
Figure: 2.2 Herzberg’s view of satisfaction and dissatisfaction ................................ 15
Figure 2.3. Basic Expectancy Mode .......................................................................... 27
Figure 2.4: Conceptual Frame work........................................................................... 38
Figure: 4.1 Motivation packages and workers’ performance..................................... 53
Figure: 4.2 Motivation encourage performance of organization ............................... 57
Figure: 4.3. Retention of Labor.................................................................................. 52
Figure: 4.4 Lack of Incentives Motivation cause poor performance ......................... 58
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CHAPTER ONE
BACKGROUND INFORMATION
1.1 Introduction
This chapter presents background of the problem, statement of the problem,
objectives of the study, research questions, and significance of the study, delimitation
and limitations of the study.
1.2 Background of the problem
The term motivation has been derived from the word motive. Motive means that the
reason behind which create the inner state that energizes, activates or moves and that
directs or channels behave or towards attaining of certain goals. Behind every action
there is a motive (Gupta, 2003). Motivation is the internal force which initiates an
individual to act upon the accomplishment of a certain goal.
Many employees have been complaining about poor working conditions at their
working environment. Employers have been condemned for poor motivation.
Workers have been working for a number of years without have been promoted to
senior posts. For further studies in some instances, employees have been working in
the vulnerable environment without insure to their lives. Workers have been working
for a number of years without contract with their employers. These problems have
contributed to poor employee’s performance and high labor turnover introducing
changes.
Motivation guide people‘s actions and behaviours toward achievement of some goals
(Analoui, 2000). In work and other contexts therefore, motivation is often described
as being intrinsic‖ or extrinsic‖ in nature (Sansone & Harackiewicz, 2000). Intrinsic
motivation, deriving from within the person or from the activity itself, positively
affects behavior, performance, and well being (Ryan & Deci, 2000). Extrinsic
motivation on the other hand, results from the attainment of externally administered
rewards, including pay, material possessions, prestige, and positive evaluations
among others.
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Since Thorndike (1911), thousands of studies, from laboratory experiments to field
interventions such as the Emery Air Freight study (Hamner & Hamner, 1976), have
been carried out on the behaviorist tradition of changing behavior by manipulating
extrinsic contingencies. Through the identification and change of environmental
contingencies, including extrinsic reinforcements, motivation increases have been
realized in work behaviors including attendance, punctuality, stock work, selling,
cost reduction, work quality, productivity, sales calls, and customer service (Komaki,
1982).
In contrast to extrinsic motivation, intrinsic motivation is said to exist when behavior
is performed for its own sake rather than to obtain material or social reinforces. The
concept of intrinsic motivation was an important challenge to behaviorism, and has
roots in White‘s (1959) competence or reflectance motivation. Maslow (1943) and
Alderfer (1969) addressed similar needs.
In employee’s motivation in National Social Security Fund (NSSF) is the key source
of achieving their objectives. The management takes it as an important aspect in their
organization. Satisfied employees tend to be more creative, productive, and very
committed to their job.
Robbins, (2005) arguing that a person with high level of job satisfaction holds
positive feelings towards the job compared to those who are dissatisfied with their
jobs in which they experience a negative feelings with the job. Due to this many
companies have made job satisfaction to be the top priority because they have started
to understand the significant opportunity that lies on them.
Many organizations meet their needs for motivating workers. Motivating workers at
NSSF is more or less unplanned and unsystematic and several of its employees. It is
worth noting that Tanzania has a huge public sector, employing the highest number
of human resources with varied skills. One such organization in the public sector is
the National Social Security Fund.
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The study is assessing motivation as a tool for good performance in the organization.
As far as the mission of NSSF is the fund is committed to meet members evolving
Social Security needs using competent, innovative staff and state of the art
technology are first choice of the members, this mission has succeed and fully
implemented because NSSF have significantly invested on the following benefits;
Old Age Benefit, this is a benefit which paid to all contributing members who have
reached the retirement age of 60 whether they are still in employment or not.
Invalidity Benefit is paid to a member who has lost his/her earning capacity due to
physical or mental incapacity, as verified by the NSSF. Survivors Benefit, paid to the
relatives (Spouse, children or dependent parents) of the deceased member who had
been contributing to the Fund, Emigration Grant, paid to contributing members who
have been working within the country and are leaving Uganda permanently.
Withdrawal Benefit/ Exempted Employment, paid to contributing members who join
employment categories that are accepted and Westadi (Welfare scheme for
Tanzanians in the Diaspora), the aim of westadi is to cover all Tanzanians living
abroad (Including Students) and 4 defendants selected by the insured person for
Social Health Insurance Benefits (SHIB) in Tanzania.
1.3. Statement of the problem
The primary purpose of the study is to assess motivation as a tool for good
performance; most of companies throughout the world face many challenges when it
comes to increasing efficiency and productivity. There are many factors that affect
efficiency and productivity, one of them being motivation of which is the focus of
this study. Motivation benefits both employer and employees this is because when
employees are motivated they become committed to their work place.
When employees do not feel motivated they became careless, lazy, high rate of labor
turnover, inefficiency, low work morale, low work discipline, less cooperation
among workers, low workers commitment, at work place, poor work performance
and some tend to quit their job. Always people do what they can do or otherwise
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motivated to do so because they are not born with self-motivation. It is from this
perspective that this study is conducted in order to assess whether motivation as a
tool for building good performance.
1.4. Objectives of the study
The general objective of the study is to assess motivation as a tool for good
performance in the organization; however from it specific objectives were
investigated which were;
i. To identify the types of motivation packages provided by NSSF to its
employees.
ii. To examine the relationship between motivation packages to performance
iii. To assess employees perceptions towards motivation packages offered.
1.5 Research questions
The main research question is; what are the types of motivation packages provided
by NSSF to its employees in attempting to address this?
This study also attempt to find answers for the following questions;
i. What motivation packages are provided by NSSF?
ii. What is the relationship between motivation and performance?
iii. What are the employee’s perceptions towards motivation packages?
1.7 Significance of the study
The study was intended to journey through various concepts of motivation and
portray the importance of motivation in building good performance in NSSF
especially for those which are not yet aware of the importance of motivation. The
study is important due to the following; Offers solutions to some problems related to
motivation.
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The company realized the importance of motivation packages in improving work
performance of employees. Offering measures that should be taken for motivation so
as to raise performance and offering fertile ground for further researches.
1.8 Scope of the study
The study was concentrated solely at National Social Security Fund. The researcher
has selected a sample size of 50 respondents that would be capable of providing
research questionnaires and conducting interviews at their places. Some respondent’s
especially junior workers will not be open to reveal the actual situation especially in
some cases based on their education qualification and experience on appropriate
motivation schemes in retaining them and the researcher was convinced them.
Regarding its content scope, the study investigated whether motivation of employees
affected their morale to perform as well as the effect of intrinsic and extrinsic
motivation on the performance. On the other hand, extrinsic motivation included
externally administered rewards like salary, free accommodation, allowances, and
advance payments in case of financial problems, leave of absence and free medical
care among others.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter provides theoretical, empirical literature review and conceptual
framework upon which this study is built also this chapter presents key terms,
meaning and definitions of major concepts. Theoretical review concern with the
reading of books, journals, articles, records and other reports. This chapter provides
an overview of the key concepts of motivation by looking on what other authors and
scholars present about the concepts.
We then proceed to give an analysis of some of the salient observations on the
existing literature as looked at by some scholars both theoretically and practically.
Key terms in this chapter are motivators, performance, motivation packages and
motivation.
2.2. Theoretical Concept of Motivation
According to Armstrong, (1988) Motivation is something which initiates movement;
motivation is about what makes people act in a certain way. To motivate people is to
point people them in a certain direction and take whatever steps are required to
insure that they get there. Motivation as the work of manager performs in order to
induce subordinates to act in the desired manner by satisfying their needs and
desires. This motivation is concerned with how behaviors get started, how is
energized, how is sustained and how is directed (Gupta, 2001).
Technically, the term motivation can be traced to the Latin word “movere” which
means “to move” thus in order to understand the concept of motivation we have to
examine three terms; motive, motivating and motivation and their relationship.
Motive is an inner state that energies, activate or moves (hence motivation) and
directs behavior towards goals. (Morris, 1954) .Schermerhorn, (1996) views
motivation as forces within an individual and that account for the level, direct and
persistence of effort expended at work, he emphasized the provision of rewards to
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employees for their better performance as major force to activate employees to work
harder. Employees would work harder because they will always expect something
valuable from their extra effort that they devote.
Among financial, economic and human resources, the latest are more essential and
have the capability to endow a company with competitive edge as compared to others
(Rizwan et al, 2010). Employee Performance fundamentally depend on many factors
like performance appraisals, employee motivation, Employee satisfaction,
compensation, Training and development, job security, Organizational structure and
other, but the area of study is focused only on employee motivation as this factor
highly influence the performance of employees.
Employee motivation is one of the policies of managers to increase effectual job
management amongst employees in organizations (Shadare et al, 2009). A motivated
employee is responsive of the definite goals and objectives he/she must achieve,
therefore he/she directs its efforts in that direction.
Rutherford (1990) reported that motivation formulates an organization more
successful because provoked employees are constantly looking for improved
practices to do a work, so it is essential for organizations to persuade motivation of
their employees (Kalimullah, 2010). Getting employees to do their best work even in
strenuous circumstances, is one of the employees most stable and greasy challenges
and this can be made possible through motivating them.
Organizational Effectiveness, composition of people which formulate independent
business identity for some specific purpose is commonly known as organization and
getting desired outcome within defined resources is treated as effectiveness.
Organizational effectiveness is the notion of how effectual an organization is in
accomplishing the results the organization aims to generate (Muhammad, 2011).
It plays an important role in accelerating organizational development (Bulent, 2009).
It is the net satisfaction of all constituents in the process of gathering and
transforming inputs into output in an efficient manner (Matthew et al, 2005).
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Organizational effectiveness is defined as the extent to which an organization, by the
use of certain resources, fulfils its objectives without depleting its resources and
without placing undue strain on its members and/or society (Mary et al, 1996). It is
the maximum combined utility of the primary constituents (Matthew et al, 2005).
The goal model describes organizational effectiveness in terms of the extent to which
an organization attains its objectives. The legitimacy model regards organizational
effectiveness in terms of a background evaluation “of component preferences for
performance and natural limitations on performance from an external environmental
perspective” (Zammuto.R.F, 1982).
The constituency model considers organizational effectiveness “as a set of several
statements, each reflecting the evaluative criteria applied by the various
constituencies” involved with the organization being evaluated with an emphasis on
means criteria (Connolly.T, 1980).
The systems resource model defines organizational effectiveness “in terms of its (the
organization’s) bargaining position, as reflected in the ability of the organization, in
either absolute or relative terms, to exploit its environment in the acquisition of
scarce and valued resources” and how they utilize these resources (Yuchtman.E,
1987). The study is aimed to determine the factors that increase employee motivation
and the relationship of organizational effectiveness with employee motivation.
Factors affecting Employees’ Motivation, no one works for free, nor should they.
Employees want to earn reasonable salary and payment, and employees desire their
workers to feel that is what they are getting (Houran. J). Money is the fundamental
inducement, no other incentive or motivational technique comes even close to it with
respect to its influential value (Sara et al, 2004). It has the supremacy to magnetize,
maintain and motivate individuals towards higher performance. Frederick Taylor and
his scientific management associate described money as the most fundamental factor
in motivating the industrial workers to attain greater productivity (Adeyinka et al,
2007).
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Research has suggested that reward now cause satisfaction of the employee which
directly influences performance of the employee (Kalimullah et al, 2010). Rewards
are management tools that hopefully contribute to firm’s effectiveness by influencing
individual or group behavior. All businesses use pay, promotion, bonuses or other
types of rewards to motivate and encourage high level performances of employees
(Reena et al, 2009). To use salaries as a motivator effectively, managers must
consider salary structures which should include importance organization attach to
each job, payment according to performance, personal or special allowances, fringe
benefits, pensions and so on (Adeyinka et al, 2007).
Leadership is about getting things done the right way, to do that you need people to
follow you, you need to have them trust you. And if you want them to trust you and
do things for you and the organization, they need to be motivated (Baldoni.J, 2005).
Theories imply that leader and followers raise one another to higher levels of
morality and motivation (Rukhmani.K, 2010).Motivation is purely and simply a
leadership behavior. It stems from wanting to do what is right for people as well as
for the organization. Leadership and motivation are active processes (Baldoni.J,
2005).
Empowerment provides benefits to organizations and makes sense of belonging and
pride in the workforce. In fact, it builds a Win - Win connection among organizations
and employees; which is considered an ideal environment in numerous organizations
and their employees. Empowering can flourish virtual human capacities. Empowered
employees focus their job and work-life with additional importance and this leads to
constant progress in coordination and work procedures. Employees execute their
finest novelties and thoughts with the sense of belonging, enthusiasm, and delight, in
empowered organizations. Adding up, they work with a sense of responsibility and
prefer benefits of the organization to theirs (Yazdani, B.O. et al, 2011).
Trust is defined as the perception of one about others, decision to act based on
speech, behavior and their decision (Hassan et al, 2010). If an organization wants to
improve and be successful, trust plays a significant role so it should always be
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preserved to ensure an organizations existence and to enhance employees’
motivation (Annamalai.T, 2010).
It can make intrapersonal and interpersonal effects and influence on the relations
inside and out the organization (Hassan et al, 2010).
Performance is the term which means that the outcome or result of the work done by
the individuals or groups by comparing the organizational objectives and goals set
with the actual accomplishments. (Mullins,2002)
Motivators, as described by Kootna and Heina (1994; 464) as things that induce one
individual to perform organizational duties efficiently. To them motivation are such
things as employees recognition, training and development, better pay. Favorable
working conditions, good administration, clear policies, better communications and
decision making in different matters.
2.2.1 Types of motivation.
There are two types of motivation as originally identified by Herzberg et al (1957).
The first one is intrinsic motivation the self-generated factors that influence people to
behave in a particular way or to move in a particular direction.
These factors include responsibility (feeling that the work is important and having
control over one’s own resources), autonomy (freedom to act), scope to use and
develop skills and abilities, interesting and challenging work and opportunities for
advancement.
The second type is extrinsic motivation which refers to what is done to or for people
to motivate them. This includes rewards, such as increased pay, or praise, or
promotion, and punishments, such as disciplinary action, withholding pay, or
criticism, Extrinsic motivators can have immediate and powerful effect, but it will
not necessarily last long.
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The intrinsic motivators, which are concerned with the ‘quality of working life’ (a
phrase and movement emerged from this concept), are likely to have a deeper and
longer term effect because they inherent in individuals and not imposed from outside.
2.2.3 Theories of motivation
According to Maslow (1943), employees have five levels of needs: physiologist,
safety, social, ego, and self-actualizing. Maslow argued that lower level needs had to
be satisfied before the next higher level need would motivate employees. He puts
forward the following needs in this theory, as follows; the first one is Physiological
needs, these are important needs for sustaining the human life such as food, water,
warmth, shelter, sleep, medicine and education are the basic physiological needs
which fall in the primary list of need satisfaction.
The second one is, Security or safety needs, these are the needs for things that
provide safety from physical and psychological harm for example to be free of
physical danger and of the fear of losing job, property, food or shelter. Also there are
Social needs, since people are social beings they need to belong and be accepted by
others.
People try to satisfy their need for affection, acceptance, friendship, companionship
and support from others. Esteem needs is another point, according to Maslow, once
people begin to satisfy their need to belong, they tend to want to be held in esteem
both by themselves and by other. This kind of need produces such satisfaction as
power, needs for status, self-respect and self-confidence.
It includes both internal esteem factors like self-respect, autonomy and achievement
and external esteem factors such as states, recognition from others and attention. The
last one is Need for self-actualization; Maslow regards this as the highest need in his
hierarchy. Which are needs for opportunities to achieve things which individual
considers worthwhile in life? It is the drive to become what one is capable of
becoming, it include need for personal growth, achieving ones potential and self-
fulfillment. It’s to maximize one potential and to accomplish something.
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According to the above explained theory motivation, it is natural for people to take
credit for satisfaction and to blame dissatisfaction. Furthermore, job satisfaction does
not necessarily imply a high level of motivation or productivity. In my research i
assess motivation as a tool for building strong labor force so looking on both labor
performance and labor turnover.
Figure. 2.1 Maslow’s five hierarchies of needs.
Source: Mazlow's Hierarchy of Needs, 1970.
Five important Limitations about Maslow’s Hierarchy of Needs Theory;
The first limitation is the theory is lacking about the motivators of extrinsically
driven individuals: At stage four and stage five of the chart (Esteem Needs and Self-
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Actualization Needs), the theory is of questionable relevance to individuals that are
driven by extrinsic rewards.
The reason being that it is not common nowadays for people to be unhappy about
their co-workers and bosses yet can still maintain high and consistent performances
as they are being promised a promotion, higher pay, or a lavish vacation which the
company will pay for. So an individual might be stuck at the third stage (The social
needs phase) for having a bad relationship overall with his/her peers, but is motivated
by the unlisted motivator on the chart, which is money.
Another limitation is difficult for manager to identify the need level for employees.
There will be some difficulty for managers in deciding which need level employees
are on, and this might curb the motivation of employees at the workplace. Take for
example a particular employee that is moving from stage 3 (Social Needs) to Stage 4
(Esteem Needs).
In simpler words, said employee feels the need for his contributions to be accepted
by someone within the company. If the manager of the company does not give
sufficient appraisal towards his efforts soon, then the employee’s efforts motivation
will go into decline. Because different managers view efforts subjectively, it might
be that his best effort was perceived as insufficient and motivation goes down.
The Most Powerful unsatisfied Need provides the most motivation; this is often due
to the fact that different individuals are driven to satisfy different needs at a certain
time. To illustrate, take a certain employee which find himself hard to be accepted by
others, but presents very innovative ideas that makes the manager favoring him and
appraising him more than anyone else within the company. Based on Maslow’s
theory, the employee is at stage 4 of the chart (Esteem Needs) and should focus on
doing more things that pleases his boss so he can move up to stage 5 (Self-
Actualization Needs).
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However in reality, the employee has a strong urge to fulfill stage 3 in his hierarchy
of needs (Social Needs) and it is possible that he might put in less effort at work in
order to fulfill the unsatisfied motivator of his. The point of this illustration is that in
the real world, the needs aren’t fulfilled in chronological order, as people will make
the effort eventually to satisfy latent needs in the hierarchy.
The theory is not empirically supported- The definition of empirical is ‘something
that can be proven or verified through studies or experiments’. Maslow’s theory
cannot be proven to be 100% true due to certain inconsistencies (Point number 3)
and also due to human factors in the 21st centuary (Point number 2).
Basic Needs may not need to be satisfied to acknowledge higher needs- Based on the
theory, we assume that if an individual that is lacking in basic amenities or in a
questionable working environment, he/she will never unlock the higher needs in the
hierarchy.
However the ‘starving artist’ scenario says otherwise. The scenario is about an artist
whose base needs in the hierarchy are not fulfilled, but yet he will still strive for fame
and recognition. This scenario proves that Maslow’s theory might not work in certain
cases. It is not impossible for someone who is desperate for fame and recognition to
neglect his/her own well-being in order to attain them.
2.2.4 Herzberg’s Two-Factor Theory of Motivation
In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or
the motivator-hygiene theory. According to Herzberg, there are some job factors that
result in satisfaction while there are other job factors that prevent dissatisfaction.
According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the
opposite of “Dissatisfaction” is “No Dissatisfaction”.
15
Figure: 2.2 Herzberg’s view of satisfaction and dissatisfaction
Source: Herzberg’s view of satisfaction, 1959
2.2.5 Herzberg classified these job factors into two categories;
Hygiene factors; Hygiene factors are those job factors which are essential for
existence of motivation at workplace. These do not lead to positive satisfaction for
long-term. But if these factors are absent / if these factors are non-existent at
workplace, then they lead to dissatisfaction. In other words, hygiene factors are those
factors which when adequate/reasonable in a job, pacify the employees and do not
make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or
maintenance factors as they are required to avoid dissatisfaction. These factors
describe the job environment/scenario. The hygiene factors symbolized the
physiological needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
Motivational factors, according to Herzberg, the hygiene factors cannot be regarded
as motivators. The motivational factors yield positive satisfaction. These factors are
inherent to work. These factors motivate the employees for a superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit.
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2.2.6 Motivational factors include;
Recognition, in this point the employees should be praised and recognized for their
accomplishments by the managers. The second factor is Sense of achievement
whereby the employees must have a sense of achievement, this depends on the job.
There must be a fruit of some sort in the job.
Growth and promotional opportunities, there must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
Responsibility, the employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control
but retain accountability. Meaningfulness of the work, this is another factor where by
the work should be meaningful, interesting and challenging for the employee to
perform and to get motivated.
2.2.7 Limitations of Two-Factor Theory;
The two factor theory is not free from limitations: Herzberg assumed a correlation
between satisfaction and productivity. But the research conducted by Herzberg
stressed upon satisfaction and ignored productivity.
The theory’s reliability is uncertain and analysis has to be made by the raters. The
raters may spoil the findings by analyzing same response in different manner. No
comprehensive measure of satisfaction was used and an employee may find his job
acceptable despite the fact that he may hate/object part of his job.
The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at
work. They will blame dissatisfaction on the external factors such as salary structure,
company policies and peer relationship. Also, the employees will give credit to
themselves for the satisfaction factor at work. The theory ignores blue-collar
workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable
broadly.
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2.2.8 Implications of Two-Factor Theory;
The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the
managers must make sure that the work is stimulating and rewarding so that the
employees are motivated to work and perform harder and better. This theory
emphasize upon job-enrichment so as to motivate the employees. The job must
utilize the employee’s skills and competencies to the maximum. Focusing on the
motivational factors can improve work-quality.
2.2.9 Employee Motivation and Organizational Effectiveness
Employee satisfaction and motivation towards work refers to prospects of the
employee about the organization and his approaches frontward his service (Ali et al,
2011). Organizational effectiveness refers to locating targets and attaining them
proficiently in spirited and energetic surroundings (Constant.D, 2001).
A study was done to examine the relationship of organizational effectiveness and
employee performance and motivation in the telecommunication and banking sector
of Pakistan. A sample of 103 respondents was taken and Pearson correlation was
applied. The results showed that there exists significant positive correlation (0.287)
between employee motivation and organizational effectiveness (Muhammad et al,
2011).
The autocratic leadership styles, mechanistic design of organization and authoritarian
rules as practiced in African organizations, are all where decision making is
concerned only to top management and employees are just given orders to
accomplish different tasks. In these types of organizational environment the
employees may suppress innovativeness and their motivation hinders which has a
direct negative effect on organizational performance, growth and effectiveness
(Constant.D. et al, 2001).
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An internally satisfied, delighted and motivated worker or employee is actually a
productive employee in an organization which contributes in efficiency and
effectiveness of organization which leads to maximization of profits (Matthew.J. et
al, 2009).
2.2.10 Importance of Motivation
The achievements of individuals and organizational goals are independent process
linked by employee work motivation. Individuals motivates themselves to satisfy
their personal goals, therefore they invest and direct their efforts for the
achievements of organizational objectives to meet with their personal goals also. It
means that organizational goals are directly proportion to the personal goals of
individuals.
Robert (2005), reported that the manager’s job is to ensure the work done through
employees are satisfied and the employees are self motivated towards their work
rather than just being directed. The manager’s involvement is not so much important
in the motivation of employees. The employees should motivate themselves to work
hard. The major issue in all services organizations is the motivation of employees
whether they are23 skilled or unskilled or professionals.
Employee motivation is also a major issue for the commercial banks. It is a today’s
challenge for the management in this competitive world to motivate employees to
offer efficient and good services that customers expect so for. The employees‟
motivation, their enthusiastic and energetic behaviour towards task fulfilment play
key role in successes of an organization to benefit (Cheng, 1995). According to
Petcharak (2002), one of the functions of human resource manager is related to
ensure employees workplace motivation. The human resource manager’s function
should be to assist the general manager in keeping the employees satisfied with their
jobs. Another goal in organization is the goal for the services manager is to develop
motivated employees and encourage their morale regarding their respective works.
The employee work morale, such as supervisors, peers, organization, and work
environment can be defined in a sense that the employee has the feeling and be
19
conscious about all aspects of the job. The performance is poor if the employee is not
satisfied and happy. Workplace dissatisfaction often leads organization and its
employee’s poor performance.
Levels of Employee Motivation According to research conducted by Mosley,
Megginson, and Pietri (2001), there are three levels of employees motivations. (1)
The direction of an employee’s‟ behavior. It relates to those behaviours which the
Individuals choose to perform. (2) The level of effort. It refers to how hard the
individual is willing to work on the behavior.
(3) The level of persistence. It refers to the individual’s willingness to behave despite
obstacles. They found that management can make use of different tactics, strategies
and policies to motivate employees in work settings, but different tactics, strategies
and policies would have a different motivational impact on diverse people
Daschler and Ninemeier (1989), conducted research and investigated what
employees may seek from the work environment.
Their discussion reviews some of employee-related concerns that can be found in
the venue of strategies to employees‟ motivation. Employees are individuals that
come from different backgrounds, they have different education with different
experiences and their different family classes are all the factors in which their needs
be located. The primary interest of employees is to satisfy their personal needs,
ambitions, desires and goals.
An employee wants to satisfy its basic needs, linked to survival and security
concerns and desire to belong, to generate positive feelings from within and from
others, and to be self-fulfilled. Most employees want (a) fair and consistent company
policies in matters affecting them; (b) management they can respect and trust; (c)
adequate working relationships with managers and co-workers; (d) acceptable
salaries and working environment; (e) appropriate job security assurance; (f)
favorable job status.
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The other important factors that can fulfil and motivate employees are: challenging
work, work that yields a sense of personal accomplishment, expression of
appreciation for good performance, increased responsibility and the chance to grow
in the job, the feeling of importance and making a contribution to the organization,
and participation in job-related matters that affect the employees.
The research conducted by Dr. Kashifurrehman et al. (2007), in Pakistan measuring
the effect of Human Resource Strategies‟ like pay, promotion and training on job
satisfaction.
Their study was focused on workforce of service based companies in Pakistan. They
concluded from their research that pay, promotion and training had positive and
significant impact on job satisfaction. They argued and suggested that employees in
Pakistan give more importance to pay and promotion than training. Al Jenaibi
(2010), explored the sense of job satisfaction and the struggles employees face in
government organizations by using a case study of different organizations in the
UAE. Job satisfaction occurs when someone feels he/she has proficiency, value, and
is worthy of recognition.
Therefore, job satisfaction is a worker’s sense of achievement and is generally noted
to be directly associated with improved efficiency as well as to personal welfare. Job
satisfaction is the belief of the employee that he/she is doing a good job enjoying the
process and being suitably rewarded for the effort. Job satisfaction is a measure of
how happy workers are with their jobs and work environment. Keeping morale high
among workers is of fabulous benefit to any company as content workers will be
more likely to produce more results take fewer days off and remain loyal to the
company.
Job satisfaction is an essential factor that affects employee’s initiative and
enthusiasm. A lack of job satisfaction can lead to increased absenteeism and
unnecessary turnover in the workplace. Job satisfaction increases the degree of
happiness in the workplace which leads to a positive work approach. A satisfied
worker is creative, flexible, innovative, and loyal.
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Job satisfaction in general means the work force is motivated and committed to high
quality performance. Improving the quality of working life will help employees to
increase productivity (the quantity and quality of output per hour worked). The main
finding of their research is that job satisfaction is based on effective management,
communication, facilities, and benefits, including salaries, technologies, and future
job directions, Performance Measurement
Chen and Silverthorne (2008), identify three types of performance. One is the
measure of output rates, amount of sales over a given period of time, the production
of a group of employees reporting to manager, and so on. The second type of
measure of performance involves ratings of individuals by someone other than the
person whose performance is being considered.
The third type of performance measures is self-appraisal and self-ratings. As a
result, the adoption of self-appraisal and self-rating techniques are useful in
encouraging employees to take an active role in setting his or her own goals. Thus,
job performance measures the level of achievement of business and social objectives
and responsibilities from the perspective of the judging party (Hersey and Blanchard,
1993).
Performance Appraisal Employees want to know how well they perform on their
jobs. A simple statement, almost axiomatic in any organization, yet it has probably
caused more controversy, applied research and practical advice than any other
assertion in the history of management writing and thinking (Kavanagh, 1997).
Employees want to how well they performing and interested in getting feed back to
ensure that they work towards goals of the business.
The assessment of employees helps the business to grow, fill in vacant position,
prepared employees for training and development. Performance appraisal is a process
within the overall performance management process (Dowling et al., 1999), and is
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defined as “the evaluation of an individual’s work performance in order to arrive at
objective personnel decisions” (Robbins et al., 2000). 2.4.2
2.2.11 Performance appraisal and Performance Appraisal Purpose
A performance appraisal is a systematic and periodic process that assesses an
individual employee’s job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual
employees are considered as well, such as, accomplishments, potential for future
improvement, strengths and weaknesses, etc.
To collect performance appraisal data, there are three main methods: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the
most commonly used with a large variety of evaluation methods. A performance
appraisal is typically conducted annually. The interview could function as “providing
feedback to employees, counselling and developing employees, and conveying and
discussing compensation, job status, or disciplinary decisions”.
Performance appraisal is often included in performance management systems.
Performance management systems are employed “to manage and align" all of an
organization's resources in order to achieve highest possible performance. “How
performance is managed in an organization determines to a large extent the success
or failure of the organization.
Therefore, improving performance appraisal for everyone should be among the
highest priorities of contemporary” organizations.
Some applications of performance appraisal are performance improvement,
promotions, termination, test validation, and more while there are many potential
benefits of performance appraisal, there are also some potential drawbacks. For
example, performance appraisal can help facilitate management-employee
communication; however, performance appraisal may result in legal issues if not
executed appropriately as many employees tend to be unsatisfied with the
23
performance appraisal process. Performance appraisal created in and determined as
useful in the United States are not necessarily able to be transferable cross-culturally.
Taylor and Wherry (1951), proposed that ratings collected for administrative
purposes would be more lenient than ratings collected for research or developmental
purposes. The majority of the research on performance appraisal purpose has focused
on the rater; some work has also been conducted on rater effects (Boswell &
Boudreau, 2000, 2002).
There are numerous methods to measure employee‟s performance appraisal but
some of these methods are not suitable in some cases. Effective appraisal systems
should address clarity, openness, and fairness; recognize productivity through
rewards; and be cognizant of appraiser leadership qualities (Winston & Creamer,
1997). Performance Appraisal Methods Decenzo and Robbins (2002), denominate
that there are three existent approaches for measuring employees‟ performance
appraisal. These are (1) absolute standards (2) relative standards and (3) objectives,
Absolute Standards It refers to a situation that employees are compared to a standard,
and their evaluation is independent of any other employee in a work group (Dessler,
2000).
This absolute standard is also known as the old method of performance appraisal of
employees. Included in this group are the following methods: the essay appraisal, the
critical incident appraisal, the checklist, the graphic rating scale, forced choice and
behaviorally anchored rating scales.
The essay appraisal: It is the simplest evaluating method in which evaluator writes an
explanation about employee’s strength and weakness points previous performance,
positional and suggestion for his (her) improvement at the end of evaluation term.
This kind of evaluations usually includes some parts of other systems to cause their
flexibility. This method often combines with other methods. In essay appraisal, we
attempt to focus on behaviors (Mondy, 2008).
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The critical incident appraisal, It focuses on key factors which make difference in
performing a job efficiently. This method is more credible because it is more related
to job and based on individual’s performance than characteristic. The necessity of
this system is to try to measure 28 individual’s performance in term of incidents and
special episodes which take place in job performance. These incidents are known as
critical incident. In this method, the manager writes down the positive and negative
individuals‟ performance behavior in evaluation term (Mondy, 2008).
The checklist, In this method, the evaluator has a list of situations and statements and
compares it with employees. The checklist is a presentation of employee’s
characteristics and performance. The results can be quantitative and give weight to
characteristics. Answers of checklist are often “Yes” or “No” (Decenzo, 2002). The
graphic rating scale this is the most commonly used method of performance appraisal
because they are less time-consuming to develop and administer and allow for
quantitative analysis and comparison.
It is a scale that lists some characteristics and rang of performance of each
individual. Therefore employees are ranked by determining a score which shows
their performance level. The utility of this technique can be enhanced by using it in
conjunction with the essay appraisal technique (Mondy, 2008). Behaviorally
anchored rating scales (BARS).
This method replaces traditional numerical anchors tools with behavioral prototypes
of real work behaviors. BARS let evaluator to rank employee based on observable
behavioral dimension. The elements of this method are result of combination of
major elements of critical incident and adjective rating scale appraisal methods
(Wiese, 1998). BARS have five stages (Decenzo, 2002): 1) Generate Critical
Incidents, 2) Develop performance dimensions, 3) Relocate incidents, 4) Rating of
level of performance for each incident and 5) Development of the final instrument.
Relative Standards in the second general category of appraisal methods, individuals
are compared against other 29 individuals.
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These methods are relative standards rather than absolute measuring device. The
most popular of the relative method are group order ranking individual ranking and
paired comparison.
Group order ranking, In this method employees are placed into a particular
classification such as “top one-fifth”. For example, if a rater has 20 employees only 4
can be in the top fifth and 4 must be relegated to the bottom fifth (Decenzo, 2002).
Individual ranking in this type of appraisal individuals are ranked from highest to
lowest.
It is assumed that the difference between the first and second employee is equal to
difference between 21st and 22nd employee. In this method the manager compares
each person with others than work standards (Dessler, 2000). Paired comparison in
this method employee is compared with all others in pairs.
The third approach to appraisal makes use of objectives. Employees are evaluated on
how well they accomplished a specific set of objectives that have been determined to
be critical in the successful completion of their job. This approach is frequently
referred to as Management by Objectives (MBO). Management by objectives is a
process that converts organizational objectives in to individual objectives. It consists
of four steps (Ingham, 1995), goal setting, action planning, self-control and periodic
reviews.
360 Degree Feedback Appraisal 360 degree evaluations are the latest approach to
evaluating performance. It is a popular performance appraisal method that involves
evaluation input from multiple levels within the firm as well as external sources.
There are numerous authors who propose definitions of the 360 degree feedback
process. “Feedback from multiple sources or 360 degree feedback’s is a performance
appraisal approach that relies on the input of an employee‟s superiors, colleagues,
subordinates, sometimes customers, suppliers and/or spouses” (Yukl and Lepsinger,
1995).
26
In a special edition of Human Resource Management on 360 degree feedback,
Tornow (1993), observes that in 360 degree feedback programmes feedback about a
target individual is solicited from significant others using a standardized instrument.
Jones and Bearley (1996), refer to 360 degree feedback as the practice of gathering
and processing multi-rater assessments on individuals and feeding back the results to
the recipients. Hoffman (1995) explains that 360 degree feedback is an approach that
gathers behavioral observations from many layers within the organization and
includes self-assessment. The 360-degree evaluation can help one person be rated
from different sides, different people these can give the wider prospective of the
employee‟s competencies (Shrestha, 2007). It has been used for human resource
development, appraisal and pay decisions (Armstrong, 1998; Stone, 2002).
NSSF uses employees‟ performance appraisal to assess the individual performance
for the organization. This system ensures that supervisor/managers assess the
employees at the end of the year and a report is sent to Head Office for onward
promotion or non-promotion for that particular year. The managers use the graphic
rating scale approach and easy appraisal method to assess the performance of the
employees. This form gives a qualitative and quantitative work done by employees
for the year.
2.2.12 Vroom’s Expectancy Theory
One of the most widely accepted explanations of motivation is offered by Victor
Vroom in his Expectancy Theory. It is a cognitive process theory of motivation. The
theory is founded on the basic notions that people will be motivated to exert a high
level of effort when they believe there are relationships between the effort they put
forth the performance they achieve and the outcome/rewards they receive.
Thus, the key constructs in the Vroom’s expectancy theory of motivation are
Valence:
Valence according to Vroom, this means that, the value or strength one places on
particular outcome or reward. Also there is expectancy which it relate efforts to
27
performance. Instrumentality in this point Vroom means that the belief that
performance is related to rewards.
Thus Vroom’s motivation can also be expressed in the form of equation as follows;
Motivation = Valence Expectancy Instrumentality. Being the model
multiplicative in nature, all the three variables must have high positive values to
imply motivated performance choices. If any of the variables approaches to zero
level, the possibility of the so motivated performance also touches zero level as
instructed below figure 2.3.
Figure 2.3. Basic Expectancy Mode
Expectancy Instrumentality
Valence
Expectancy is a person’s estimate of the probability that job-related effort will result
in a given level of performance. Expectancy is based on probabilities and ranges
from 0 to 1. If an employee sees no chance that effort will lead to the desired
performance level the expectancy is 0. On the other hand, if the employee is
completely certain that the task will be completed the expectancy has a value of 1.
Generally employee estimates of expectancy lie somewhere between these two
extremes.
Instrumentality is an individual’s estimate of the probability that a given level of
achieved task performance will lead to various work outcomes. As with expectancy
instrumentality ranges from 0 to 1. For example, if an employee sees that a good
performance rating will always result in a salary increase the instrumentality has a
value of 1. If there is no perceived relationship between a good performance rating
and a salary increase, then the instrumentality is 0.
Effort Performance Reward
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Valence is the strength of an employee’s preference for a particular reward. Thus,
salary increases, promotion, peer acceptance, recognition by supervisors, or any
other reward might have more or less value to individual employees. Unlike
expectancy and instrumentality, valences can be either positive or negative. If an
employee has a strong preference for attaining a reward, valence is positive. At the
other extreme, valence is negative. And if an employee is indifferent to a reward,
valence is 0. The total range is from -1 to +1.
Theoretically, a reward has a valence because it is related to an employee’s needs.
Valence, then, provides a link to the need theories of motivation (Alderfer, Herzberg,
Maslow, and McClelland). Vroom suggests that motivation, expectancy,
instrumentality, and valence are related to one another by the equation.
2.2.13 The relationship between motivation packages to performance
According to Gupta 2003, Motivation and job performance are inextricably
connected because every worker has to have some degree of motivation just to go to
work in the first place. Many people believe that the most highly motivated
employees are the employees who will reach the highest level of job performance.
Consequently, many large firms train supervisors and managers to motivate their
employees or develop methods that will enable them to understand the factors that
motivate individual employees.
To some extent, most employees are motivated by money because people generally
work in order to earn money to cover their day-to-day living expenses. Many people
work harder if they are given financial rewards, such as commission checks and
bonuses for reaching performance levels beyond the basic level that their bosses
demand. Some individuals are motivated by the opportunity to gain promotions or
move into more prestigious roles, while other employees are motivated by a fear of
failure. In some instances, people are motivated to work hard if they believe that
failure to do so will result in them losing their jobs. All of these factors are regularly
cited by people who see a correlation between motivation and job performance.
29
Most companies expect department managers to motivate employees, and managers
sometimes set about trying to achieve this by offering financial incentives to
employees as well as promotions or additional paid-time off. Many firms use
approaches that are based upon research by psychologists, such as Abraham Maslow
who developed the Hierarchy of Needs in the 1950s. Using Maslow's list of
motivators, managers attempt to match the personalities or needs of their clients with
the needs identified by psychologists, and motivate employees by linking their needs
with their job performance. Someone with low self-esteem may be motivated by the
chance to earn recognition, while someone experiencing financial problems may be
motivated by the need to earn the money needed to have a sense of security.
Modern psychologists and behavioral analysts have argued that a leader cannot
motivate an unmotivated employee, and that motivation must begin with the
employee. Using this rationale, some employees perform poorly at work because
they lack motivation. No matter what is tried, bosses cannot raise their level of
performance by attempting to use rewards or punitive action as motivators.
Many managers keep track of the actions of employees and the results that those
actions generate. Managers look for a correlation between the amount of effort an
employee puts forth through actions such as making sales calls, and that employee's
sales results as compared with other seemingly less motivated employees. Other
variables that an employee cannot control, such as the behavior of clients, can also
impact an employees' performance. While motivation and job performance are
linked, even highly motivated employees can experience performance issues at work.
The performance of employees will make or break a company this is why it is
important to find a variety of methods of motivating employees. "Motivation is the
willingness to do something," wrote Stephen Robbins and David A. DeCenzo in their
book "Supervision Today." "It is conditioned by this action's ability to satisfy some
need for the individual." The most obvious form of motivation for an employee is
money however there are other motivating factors that must be considered. Every
30
employee within a company is different and therefore is motivated to perform well
for different reasons.
Due to the differences within an organization it is important for a manager to get to
know her employees and understand what motivates their performance. "If you're
going to be successful in motivating people, you have to begin by accepting and
trying to understand individual differences," Robbins and DeCenzo report in their
book "Supervision Today."
Money is the most important motivator for employee performance but it is important
for 42 companies to find other ways to motivate. This involves getting to know their
employees and what drives them then making sure managers utilize appropriate
motivational techniques with each employee. When appropriate motivation
techniques are used employee performance will improve.
2.2.14 Employees perceptions towards motivation packages offered
A worker's social perception of others within the organization can affect his
motivation to complete work effectively to a large degree (Brachmann 2007).
Motivation within an organization remains high if a worker perceives that there is
opportunities forpersonal development or professional advancement, if he feels
capable of completing tasks correctly and is involved with various organizational
decision-making and goal-setting processes.
Motivation can be reduced if the worker perceives a lack of opportunity for growth, a
lack of involvement or a lack of opportunities to demonstrate any creativity. This
holds true in volunteer organizations as well, as described in Miami University's
student leadership material, "Why Volunteers/Group Members Lose Interest."
Changing Perceptions to Improve Motivation, worker output and motivation can be
affected by changing the working conditions that are causing negative organizational
behaviors. Reducing the size of work groups may allow an employee to feel as
though he has a greater input in the work output. Providing time for easy social
31
interaction can improve social intimacy among coworkers and help produce a
camaraderie that improves work interactions. Managers must work hard to control
their own perceptions of their employees, withholding their own evaluative
judgments until they gain adequate information about an employee's work
performance.
Perceived Public Service Efficacy, a 2008 paper published by the American Review
of Public Administration introduced the concept of perceived public service efficacy
to describe the way an employee's perception of his work can affect work motivation
and organizational behavior. According to co-authors Craig Boardman and Eric
Sundquist, when employees perceive that their work benefits the general public,
reports of both job satisfaction and organizational commitment increase. A "Type Z"
organization, or an organization which is concerned with both business growth and
social concerns, typically has a high degree of perceived public service efficacy.
According to Morgan & Schiemann, (1986) employee attitudes toward pay show
decreases in favorable pay ratings among managers, exempt, and nonexempt
employees. These downturns are attributed to diminishing pay increases (due to
lower inflation and lower merit increases); poor pay for performance relationships
and poor employee understanding of how pay is determined.
Moreover, organizations are facing a problem with their performance appraisal. A
recent study shows that the standards against which employees performance are
judged are vague and highly subjective. Hence, the lack of clarity and objectivity of
the criteria used to measure the Performance of the employees creates role
ambiguity, confusion and frustration among the workers to undertake their job. As a
result the majority of the respondents questioned the legality and appropriateness of
the current form used to measure the performance of workers to undertake
administrative decisions.
Hence, at least employees do not perceive that their performance is measured they
believe that the performance record does not reflect their true performance. (Zelalem
32
Bayisa, 2007) Another problem is the lack of good communication regarding the
relationship between the appraisal and subsequent pay.
Furthermore, annual appraisals without continual supervisory feedback are unlikely
to be effective in establishing accurate feedback regarding a subordinate's location in
the performance distribution. Still another cause of low pay for performance ratings
is the relatively small spread in merit increases. (Teel,1986 as cited by Schiemann,
1987).
Attitudes toward various benefits differ substantially. The most favorably rated
benefits are profit sharing, savings plans, and stock purchase plans. The least
favorably rated benefits are pensions, disability (short and long term), and sick leave
(for some job groups). Al though 84% of employees rate medical benefits as the most
important benefit they receive, only 67% rate health insurance favorably.
Moreover, 60% or fewer rate dental, sick leave, and disability insurance favorably.
Furthermore, some of the most expensive benefits (pension and health related
benefits) are not rated most favorably; in fact, pension plans are rated favorably by
only half of the employees having retirement programs (White & Becker, 1980 as
cited by Schiemann, 1987). Schiemann (1987) stated that historically, these ratings
do not vary dramatically across job groups, sex, or different age groups. Females and
older employees (with higher tenure) are Somewhat more favorable than their
counterparts, but they do not differ substantially in the benefits that they rate most
favorably. With respect to tenure, newer employees (those with tenure under one
year) rate their benefits most favorably, followed by periods of declining ratings,
which then turn upward after 15 or so years of service.
The favorable ratings during early years probably reflect a "honeymoon" period and
the more positive ratings of longer tenured, older employees reflect greater usage
patterns (for health benefits) more accrued benefits (e.g., vacation, savings, stock),
and a realization that they will probably be with this organization until retirement
(and therefore, some rationalization of benefit quality).
33
Thus, it appears that employers are not receiving the value in employee satisfaction
with benefits that current expenditures might warrant. Some of the most expensive
benefits are the least favorably rated. In surveys conducted by Hefferan, (1985)
across organizations in various industries, pensions and health coverage are the two
benefits that employees most want to see improved. Clearly something is wrong
given that these two benefits represent the largest and fastest growing expenditures
for most employers (Schiemann, 1987).
2.2.15 Content theories
The content theories are characterized by emphasis They concern with individual
goals and needs which are said to be the same for every person. Although, needs,
they differ in defining what those needs are. The most well known and very often
cited author of motivational theory is Maslow human needs (Fincham & Rhodes,
2005) behavior is driven by the existence of unsatisfied needs. His hierarchy from
psychological needs and lead through security needs, social needs, self esteem needs
and self-actualization needs on the top position .
According to Maslow (1943), higher needs are not felt until lower needs are not
fulfilled. Additionally, when the need is sasisfied it does not influence human
behavior anymore and as a result the focused is moved into a need which is higher in
the hierarchy. Maslow divided needs into two categories: deficiency needs and high-
order needs.
Deficiency needs include basic needs such as hunger orthirst and a need for shelter
and protection. When these needs are satisfied people become motivated by high
order needs such as the need for supportive and satisfactory relationships with others,
needs for freedom, independence, recognition and achievement and finally the need
to develop one’s potential.
The self actualization which is the highest step in Maslow’s pyramid can be
described as the ending point of gradual psychological maturation process. This final
34
level is achieved by few people and unlike other needs is never fully satisfied
(Fincham & Rhodes, 2005). Maslow’s work on the theory of needs has been
followed by other authors who took an attempt to improve it. One of
modificationswas presented in 1973 by Alderfer, who developed and tested model
with fewer needs levels (Pinder,1998). His study, unlike Maslow’s, was based on
empirical research in organizational settings.
The theory suggests three general categories of human needs which are partly based
on Maslow’s model but are not the same. Alderfer’s model is named ERG and
consists of existence needs, relatedness needs and growth needs. The first group is
closely related to Maslow’s physiological needs and partly to security needs (only
physical security). Existence needs are concrete in nature and are usually limited. A
good example of them in organization setting is a salary. If money has to be divided
between two groups - the more money receives one group, the less gets the other
group. Relatedness needs basically consist of the interpersonal security needs, the
need for prestige and esteem from others.
2.2.16 Empirical literature review
In this part the researcher reviews the work as it has been done by other researchers
as related to the topic discussed. The researcher main purpose is to assess the effect
of motivation towards job performance in Tanzania organizations. The researcher
will be able to review some literature including Organizational Behavior, (Luthans,
2002), Motivation and Work Behavior, (Porter, 1983), the researcher do sampling
through various sampling techniques and collect the data by using interviews,
observation, documentaries and questionnaires. A case study of National Social
Security Fund was being use; the following was be her findings and
recommendations;
All approved allowances and benefits should be provided to intended employees at
the required time for instance there is approved allowances which are to given to
employees at every month, but is not provided on time; it may be provided
sometimes after two of three weeks.
35
Since motivators are driving forces that channels employee’s behavior toward
desired goals, it essential for leaders to exercise their leadership on the manner that
motivates their staffs, the practice of employee’s motivation has to be given a
permanent consideration in this organization. Leaders need not to feel ashamed to
ask and learn from people, especially who below taking measures of making
decisions, this was make employees to consider themselves as recognized members
of the organization. In my study only a simple random sampling technique w to make
a sample while Mgaya (2009), uses various sampling techniques.
The gaps which left unattended by Mgaya is such as follows; There is some
favoritism on the provision of motivational packages because some of the employees
or some of the departments are more considered in these packages than others, the
researcher discovered that. Although the company has been able to provide some of
the motivation packages to its employees but there were not constantly available to
the employees even if it was their right to get that particular package. Personnel
department should play a more serious role in solving problems facing the employees
at the working place. The department should act as a bridge linking together the
management and the employees.
This is the case since most of the problems of employees pointed out in this company
can be solved if there is there is full commitment from both stakeholders concerned.
Mbughuni (2009), the researcher’s main objective was to assess whether motivation
affects the level of work discipline, labor turnover, work performance, satisfaction,
perceptive and human behavior at work place.
The management should make sure that there is clear policy on motivation/incentives
offered to employees.
There should be rewards given to the best employees and those employees who
worked for the institute for a long time. This will make employees to be motivated to
work hard and be loyal to the institute.
Mbughuni in his recommendation focus in the management to make sure that there is
clear policy on motivation. Mbughuni do not advice the management about that
36
policy concerning motivation also should be revised time to time so as to keep pace
with social, cultural and economic challenges affecting the employees.
All those researchers unattended to talk about the issue of motivation is not only
about positive motivation to employees in order to perform better but also the
negative motivators like punishment, half salary per month, warning letter and
disciplinary actions should be considered in order to discipline and shape some
employees who are misbehaving, hence performance was improved.
2.2.17 Conceptual Framework
Figure 2.3 summarizes the relationship between the independent variable, which is
motivation, and the dependent variable that is, organization’s performance.
Conceptual frameworks, according to educational researcher Smyth (2004), are
structured from a set of broad ideas and theories that help a researcher to properly
identify the problem they are looking at, frame their questions and find suitable
literature. Most academic research uses a conceptual framework at the outset because
it helps the researcher to clarify his research question and aims.
Motivation, this is the process by which a person wants and chooses to act in a
particular way (Maund, 2001). Webster‘s dictionary (2002) defines the concept
motivation as the act or process of moving or drive, or an incentive. In this study, the
variable motivation involved both intrinsic and extrinsic motivators.
Extrinsic Motivators, these are sources of need satisfaction that are associated with
tangible rewards such as pay, working conditions, physical surroundings, job
security, promotion and interpersonal relations and such tangible rewards cannot be
determined by the individual but rather at the organizational level. (Houldsworth in
Rees, 2004).
37
Intrinsic Motivators, these are sources of need satisfaction, that derive from the
individuals relation to the job itself and it involves job factors which reward the
needs of the individual to reach his aspirations and an example are achievement,
recognition, responsibility, advancement (Maund, 2001).
A variable is an object, event, idea, feeling, time period, or any other type of
category you are trying to measure. There are two types of variables-independent and
dependent.
Independent variable is a variable that stands alone and isn't changed by the other
variables you are trying to measure. For example, someone's age might be an
independent variable. Other factors (such as what they eat, how much they go to
school, how much television they watch) aren't going to change a person's age. In
fact, when you are looking for some kind of relationship between variables you are
trying to see if the independent variable causes some kind of change in the other
variables, or dependent variables.
A dependent variable is something that depends on other factors. For example, a test
score could be a dependent variable because it could change depending on several
factors such as how much you studied, how much sleep you got the night before you
took the test, or even how hungry you were when you took it. Usually when you are
looking for a relationship between two things you are trying to find out what makes
the dependent variable change the way it does.
Many people have trouble remembering which the independent variable is and which
the dependent variable is. An easy way to remember is to insert the names of the two
variables you are using in this sentence in the way that makes the most sense. Then
you can figure out which is the independent variable and which is the dependent
variable; (Independent variable) causes a change in (Dependent Variable) and it isn't
possible that (Dependent Variable) could cause a change in (Independent Variable).
Organizational performance comprises the actual output or results of an organization
as measured against its intended outputs (or goals and objectives). According to
Richard et al. (2009) organizational performance encompasses three specific areas of
38
firm outcomes: (a) financial performance (profits, return on assets, return on
investment, etc.); (b) product market performance (sales, market share, etc.); and (c)
shareholder return (total shareholder return, economic value added, etc.). The term
Organizational effectiveness is broader.
Specialists in many fields are concerned with organizational performance including
strategic planners, operations, finance, legal, and organizational development. In
recent years, many organizations have attempted to manage organizational
performance using the balanced scorecard methodology where performance is
tracked and measured in multiple dimensions such as: financial performance (e.g.
shareholder return) customer service social responsibility (e.g. corporate citizenship,
community outreach) and employee stewardship.
Conceptual Frame work
Figure 2.4: Conceptual Framework summarizes the relationship between the
independent variable, which is motivation, and the dependent variable that is,
Organization’s performance.
39
Figure 2.4: Conceptual Frame work
Source: Research data, 2013
Extrinsic Motivators
Payment, Working conditions, Physical Surroundings, Job Security and
Relations.
Intrinsic Motivators Achievement, Recognition, Responsibility, and Advancement Promotion Job Satisfaction
Organization
Performance
Good Supervision,
Organization
Commitment
Planning Work,
Setting expectations.
Satisfactory work
40
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter contains a discussion on various methodological techniques which is
used by the researcher in collecting data from various sources. It includes the
research design employed, area the of study, population of the study, methods used
in collecting data, sample and sampling procedures and data analysis techniques was
presented. The study was undertaken at the NSSF headquarter as a case study, which
sought to find out the Assessment of Motivation as a tool for Good Performance. The
study was employing mainly both qualitative and quantitative research approaches.
3.2 Research Design
The study was undertaken at the National Social Security Fund as a case study,
which sought to find out Assessment of Motivation as a tool for good Performance.
The study employed qualitative research approach. The researcher conducted
personal interviews with a number of employees by using qualitative techniques; the
researcher carried out personal and also group interviews which are among methods
of qualitative data collections. This method despite of being in a danger of
introducing biasness (Gupta 2011) is the most effective technique when recruiting
employees of NSSF. The interviews provided to the Researcher with knowledge of
what it means to perform qualitative research in practice, the purpose being to
uncover which barriers appear to be the most essential ones.
3.3 Area of the study
The study was conducted at National Social Security Fund headquarter, a company is
chosen because it was easy in accessibility of data concerning the topic investigated.
A part from this a researcher decided to conduct the study at NSSF Headquarter in
Dar es Salaam to reduce financial constraints because the field place is nearby the
researcher’s residence. Also the researcher decided to conduct the study in this
organization since it is one of the big organizations in Tanzania and there are so
41
many workers show, for that case the researcher wants to assess motivation as a tool
for good performance.
3.4 Target Population
The employees at NSSF Head Office was targeted, In order to get appropriate
numbers of representative/respondent from five departments, Administration and
Human Resources Management, Planning, Legal Services, Finance and Accounts,
Procurement Management, Internal Audit, Public Relations and Communication
Technology.
3.5 Sampling technique
The basic assumption behind any kind of sampling is that a sample, which was a
cross section population group, would bear characteristics of the population as
whole. Therefore, the most important factor to consider when sampling was the
representativeness of the sample in terms of whether the sample could bring to a
certain degree of confidence, show characteristics of population group. Simple
random samples of 50 employees from different departments at the organization
were considered to be appropriate for the sample.
Also the researcher used a simple random sampling, according to this method each
member of the population has an equal chance of being selected. For that case, the
researcher made sure every employee has equal chance to be selected in connection
to that, National Social Security Fund there is 18 Marketing and advertising officers,
so out of 18, the researcher peaked randomly 13 Officers for that case a total of 50
respondents were included in the survey. Small sample sizes can provide highly
reliable findings depending on the sampling procedures adopted (Schiffman and
Kanuk, 1997).
3.6 Sample size
A total sample size of 50 respondents out of 150 total employees of a whole
population was used. That number was suitable because it fulfilled the requirements
of efficiency, representative, reliability, flexibility and precision of the study.
42
According to (Kothari, 2004) the size of the sample drawn from the population
should be less to the population. In this study a total of 50 respondents were taken as
a sample to represent NSSF staffs in Dar es Salaam including Human Resource
Officers, Public Relation Officers, Planning Officers, Accountants, Receptionists,
Internal Auditors and Procurement Officers.
Also the consideration was given to different gender, age and economic statuses in
the selected sample in order to obtain general overviews of the study. Sample size
was selected deliberately as shown on the table 3.1. The study used a total of 50
respondents, such as, 5 Human Resource Officers, 3 Public Relation Officers, 5
Planning Officers, 5 Accountants, 4 Receptionists, 7 Internal Auditors and 3
Procurement Officer, 13 Marketing and Advertising and 5 drivers.
Table 3.1: The Number of Respondents
Sample Number of Respondents Sampling Technique
Human Resource Officers 5 Simple RandomSampling
Account & Finance 5 Simple RandomSampling
Marketing and Adverting 13 Simple RandomSampling
Internal Auditors 7 Simple RandomSampling
Public Relations Officers 3 Simple RandomSampling
Drivers 5 Non probabilitySampling
Receptionist 4 Non ProbabilitySampling
Planning Officers 5 Simple RandomSampling
Procurement Officers 3 Simple RandomSampling
TOTAL 50
Source: Research data, 2013
43
3.7 Data type and collection methods
A number of methods were used during collection of data. Both primary and
secondary data were collected and the major methods used include:
3.7.1 Primary Data
Primary data are collected using tools such as Questionnaires, Interview, Observation
and Documentary. These data were collected from staff at National Social Security
Fund offices. Data were collected from the different departments and Units.
The researcher used questionnaires and structured interview methods to gather
primary data; whereby the dialogue between the interviewer and the interviewee with
the aim of collecting information from the interviewee were used. This method was
employed because it gives the respondents freedom to ask incase of need. It ensures
high response rate compared to other methods.
Open ended questionnaire and closed ended questionnaire was presented, tested and
used accordingly. Relevant language used to compose the questionnaire depending
on the educational level attained by the respondents. The researcher distributed the
questionnaires to the human Resource Officers, Marketing and advertising, drivers,
accounts and finance, planning officers; internal auditors, procurement Officers and
50 questionnaires were distributed.
Interview, is a dialogue between the interviewer and the interviewee with the aim of
collecting information from the interviewee. This method employed as it give the
respondents freedom to ask incase of need. It ensures high response rate compare to
other methods. Interview was conducted in order to get the additional information
beyond that which was collected through the questionnaires.
Focus group discussion, focus groups are a form of group interview that capitalizes
on communication between researcher and participants in order to generate data.
Although group interviews are often used simply as a quick and convenient way to
collect data from several people simultaneously, focus group interaction as part of
the method.
44
This means that instead of the researcher asking each person to respond to a
question in turn, people are encouraged to talk to one another: asking questions,
exchanging anecdotes and commenting on each other’s exchanging anecdotes
and commenting on each other’s experiences and points of view. In this study
one focus group discussion session were held with six representatives from the
sample.
This was a great opportunity for researcher to ask questions and get direct
feedback. Six respondents selected had different opinions on key issues that
helped the researcher to get a balanced view of the research findings.
Observation is another primary data collection method in which the researcher use.
The researcher was observes the daily activities carried out in the Nssf.
3.7.2 Secondary data
Secondary data are the data that are neither collected directly by the user nor
specifically for the user, often under conditions not known to the researcher. The
researcher were review various documents of the company to generate secondary
information for the study such as files, reports, NSSF newsletter of 2013,
Publications, company journals and relevant materials relate to the topic under study
was perused by the researcher.Most organizations collect and store a variety of data
to support their operations (Saunders et al, 2000). The researcher used available data
and information in the organizations of study Motivation as a tool for good
performance.
3.8 Data analysis
Collected data were coded and analyzed using Statistical Package for Social
Scientists (SPSS). Data was summarized into tables and graphs in order to get easy
interpretation. The percentage number of respondents according to variables such as;
sex, type of motivation and so on were computed and presented using tables. The
effect of intrinsic and extrinsic motivation on the performance of employees was
established using statistical method.
45
Qualitative data was organized according to themes identified from research
questions and analyzed using content analysis. Data from focus group discussions
was recorded, organized, interpreted and presented and discussed.
46
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.0 Introduction
In this chapter, data regarding to assess motivation as a tool for good performance in
an organization has been presented, analyzed and discussed. The presentation is
arranged in line with the specific objectives that guided the study, including;
identifying the types of motivation packages provided by NSSF to its employees, to
examine the relationship between motivation packages to performance and to assess
employees perceptions towards motivation packages offered. However, the
background characteristics of respondents are presented first to provide a clear
picture of the nature of people that participated in the study.
4.1 Background Characteristics of respondents
Information about background characteristics of respondents in National Social
Security Fund Head Office at Dar es Salaam is presented in this section. It includes;
the total number of respondents, departments and the location of NSSF, level of
education, titles and professionalism. In the first instance, the study was conducted
and a total sample size of 50 respondents from different departments, Sections and
Units out of 150 total employees of a whole population. The employees from the
departments, Sections and Units included Human Resource Officers, Public Relation
Officers, Planning Officers, Accountants, Receptionists, Internal Auditors and
Procurement Officer, Marketing and Advertising and drivers.
4.2 To identify the types of motivation packages provided by NSSF to its
employees.
This sub-section presents findings for the research questions: what motivation
packages are provided by NSSF? The study found out that, in NSSF at Head Office
in Dar es Salaam there is a number of motivation packages used to influence workers
to perform their duties. These motivation packages are as follows according to the
NSSF newsletter as well as the responds of employees;
47
Monetary motivation packages, this is a type of motivation given in terms of cash
money. The provision of salary and other related allowances to employees of NSSF
are among of the motivation packages which are provided to the employees. A
monthly salary is given to each employee according to the agreement made by NSSF
management which is differ from one employee to another due to the level of
education, titles and professionalism. Also employees motivated in paid leave,
holidays allowances Such as Christmas, Eid El Fitr, house allowance, transport
allowance, allowance, phone allowance and provision of bonus after reaching the
target made of sales volume versus actual sales (January 2009 - June 2009, A Bi-
Annual Newsletter of the NSSF).
According to the NSSF Training officer after been interviewed, non monetary
motivation packages does NSSF provide to employees are such as; burial assistance,
recognition, promotion to senior posts, provision of family day, trips and medical
care. Burial assistance, when employees die there is some of assistance which the
office offers to family of the staff as condolence, also the death gratuity is followed
to the family. Burial assistance for example transport to the burial place.
The large percent of the questionnaires which were distributed to the selected sample
appreciated that, NSSF help them a lot in the burial activities of the staffs and their
close related relatives particularly the death of the husband or wife of an employee
and the children’s of an employee. So the employees explained that, the management
is caring about them therefore they feel part and parcel of the organization so in this
sense they are motivated to perform their duties as assigned timely.
Medical care, all the employees of NSSF and their families get the medical care
administered by Momentum Tanzania in which each employee given a card as an
identity which allows them to get medical services, maternity cases, chronic
medication and HIV wellness program from selected hospitals which accept those
cards. 80% of the respondents said that they felt motivated because all the staff and
their families get medical services to those selected hospitals when they get sick.
48
Recognition, Is the appreciation of the efforts made by an employee or praise for
work which is done by an employee. One of the interviewed respondent revealed
that, she received some amount of money and a certificate of recognition as a best
employee of the year 2012 in NSSF Head Office at Dar es Salaam. Appreciation of
the work done by someone gives him or her courage to continue perform better
because the company has appreciated his or her contribution to the company and
hence led to the appreciated employee to be more committed in the company
objectives and goals.
Social gathering, In NSSF there is this motive to employees of social gathering. For
example through observation there was a family day which was done on December at
the end of the last year in Dar es Salaam (Head Office) in which each employee
came with his or her family to play different games and celebration follows after
those games finished. Respondents agreed that NSSF motivate them and their family
a lot in social gathering such as family day which is done once in every year that
facilitates them to perform well. Also one of the respondent agreed that trips and
tours given to employees by NSSF motivate them a lot to perform their work
effectively.
4.2.1 Reasons for motivation
Employee’s motivation in any organization is a key source of achieving the
objectives. The management takes it as an important aspect in their organization.
Satisfied employees tend to be more creative, productive, and very committed to
their job. The analysis of data collected from the employees and management in
National Social Security Fund (NSSF) head office shown that motivation is given to
the employees due to the following reasons;
49
Table 4.1 Reasons for Motivation
REASONS NO OF RESPONDENTS PERCENTAGE
Goals attainment 30 60%
Improvement of human
relations
10 20%
Labor retention 10 20%
Total 50 100
Source; Research data, 2013.
Attainment of goals
The analysis shown in the Table 4.1, that motivation is given to the employees in
order to influence the attainment of both personal and organization’s goals, there for
employees were encourage to work harder so that can achieve organization goals as
well as employee goals. Rewards and recognition, big bonus given to a best
employee. The use of recognition system to celebrate the employees who reach their
goals. Announce the achievements make a recognition bulletin board, publish the
information in the organization newsletter or offer a small incentive like a gift card to
a local business.
Encourage creativity in employees to help them achieve goal objectives, a supportive
work environment that promotes risk-taking while showing employees by trusting
their talents and ideas.
Improvement of human relations
It was shown that among other reasons that motivation is given to employees in
NSSF in order to encourage cooperation among them. Also human relations can be
defined as a movement whereby the researchers of organizational development study
the behavior of people in groups, in particular workplace groups.
50
Retention of labor
The analysis found in the Table 4.1, show that most of the employees in NSSF
believe that motivation reduce labor turnover because of the benefits that employee
preferences. Competitive and Fair Compensation, is a fundamental starting point in
most strategies to attract and retain employees. However there is general agreement
that compensation levels do not single-handedly guarantee employee retention.
Common best practices include the use of wage and salary structures to be fair and
competitive. Rewarded or recognized skill-based pay and various types of bonus
plans.
Flexible Benefits, due to flexible benefits the employees prefer to stay with their
employer for so long that seems the organization is supportive and fair to its
employees Many companies are responding to the increasingly diverse needs of their
employees by introducing a greater element of choice in the range of benefits from
which their workers can choose.
Flexibility in benefits packages can enhance retention, as it creates responsiveness to
the specific needs and circumstances of individual employees. For example NSSF
provide various benefits like, Maternity Benefits, Medical care and other more
benefits. Recognition and Rewards made most of NSSF employee to be more
motivated to their work and contribute organization due to respect and appreciation
for employees and work well done and thereby reinforce employee commitment to
the firm. For example: Employee of the month is given a trophy and cash money.
Training, Professional Development and Career Planning is effective ways that
enhance employee retention because employees prefer their professional
development so that they can feet to the organization. Training providing him or her
with new skills and greater competencies and confidence. Training encourages
workers to make longer term commitments to their work place; it permits them to see
a future with the organization. The researcher interviewed was active in the area of
skills training and professional development. Many have put in place effective
internal promotion programs that allow even their unskilled and semi-skilled
51
workforce to move towards positions of greater responsibility and remuneration
within the organization
Recruitment & Orientation, Labor retention at NSSF is also due to Recruitment and
orientation because the employee are being selected due to their qualification of
prefer position and being interviewed to a qualify employee, also due to good initial
orientation to the newly-hired employee can help to make the new person feel
welcome and provide him or her information about how to cope with workplace.
Healthy Workplace, physical work environment cleanliness, safety, health practices,
fitness, healthy workplace initiatives not only improve the health and well-being of
individual employees, but contribute to business performance objectives including
employee retention.
Work Teams, teams work encourage more employee commitment because of
working together as a team, job rotation is also practicing at NSSF were employee
are being knowledgeable and more skills.
Performance Appraisal, practices that provide good feedback to employees and give
them a view of their longer-term progress within the organization particularly in
terms of training and career development opportunities are important ways of
enhancing employee commitment. Performance appraisal is being done two times a
year. Which help the employee to solve their problems.
Figure 4.3 below summarizes the data obtained on the Retention of labor.
52
Figure: 4.3. Retention of Labor
0
10
20
30
40
50
60
G/attainment Labor
PercentageRespondents
Source; Research data, 2013
4.3 The influence of motivation packages on overall organization performance
The researcher assessed that, 30% of respondents preferred the monetary motivation
because money is very crucial in facilitating day to day human expenditure. One
respondent commented that “cash availability motivates a lot”. They added that if
you have money it is very easy to solve most of the problems which could come
across you and the vice versa is the true so they work comfortably without any stress
hence resulting to better performance to the organization.
5% of respondents thought that non-monetary motivation were the best ones due to
the fact that, once money satisfies man’s physiological and security needs, its cease
to be a motivating force. Then people need motivators like recognition, opportunity
for growth, job security and knowledge of results of work they done, on contrary
15% of the respondents explained that, both types of motivators are important to
their performance in the organization, the important issue is that, they must be
53
balanced in order to motivate the employees because workers have financial and
non-financial needs which have positive effects to the organizational performance.
Figure 4.1 below summarizes the data obtained on motivation packages and
workers’ performance.
Figure: 4.1 Motivation packages and workers’ performance
0
10
20
30
40
50
60
70
80
90
100
NO OFRESPONDENTS
PERCENTAGE
Monetarymotivators Non-monetarymotivators Both
Total
Source: Research data, 2013.
From the table 4.1 above, many employees preferred the monetary motivation
packages. Some respondents also preferred both packages and very few explained
that their performance is motivated by non monetary motivators.
This reveals that the monetary motivation packages are more preferred by the
employees.
54
4.4 Indicators of performance in NSSF
The researcher used various dimensions to measure the performance of the
employees regardless of what type of motivation package influence the employees’
performance in this company. These were, working overtime, early reporting time,
low rate of absenteeism, accomplishment of company’s goals, team working, and
improvement of human relation and low rate of labor turnover.
4.4.2 Working overtime
Most of employees in NSSF head office beyond the official hours. The leaving time
is 05.00 pm but some employees used to stay in the office beyond this time. The
researcher found that, within 5days of fully working hours (from 8.00 am to 5.00
pm), most of the employees spent more days to stay in the office than the days which
they leave early. This revealed that the employees care their duties that are why they
spend more hours to perform them.
4.4.3 Team working
The presence of team work which enhances the employees’ relationship to grow
ensures that the performance is inevitable in this company due to fact that, the
employees worked in groups to accomplish their responsibilities as assigned. The
researcher investigated that in NSSF the team works were active because they used
to meet once in a week in order to discuss how they can accomplish their duties from
the individual level to group level in their respective departments and units hence
contribute more to the attainment of the company’s goals as they come up with a
weekly report. Also this reveals that, there was performance of duties and
responsibilities.
4.4.4 Low rate of Absenteeism
Many employees tend to report at the office daily hence low number of employees
who were absent, and if in case it occurs, an employee is absent he/she must inform
to his/her boss also lower rate in labor turnover. As far as this dimension is
concerned the productivity is high hence performance is inevitable.
55
4.5 How motivation correlate with work performance.
Another research question stated that: What is the relationship between motivation
and work performance? The findings were as follows; There is a correlation between
motivation and work morale, whenever employees are motivated they work hard this
has revealed in NSSF whereby a great number of employees from the sample size
said that motivation offered to them make them work hard. From the elements of
performance at individual level performance to team working performance and hence
the performance at organization level, the researcher discovered that, in each element
of performance is contributed by motivation packages available though they differ in
terms of influence. In this sense they were the dimensions or aspects of overall
performance such as follows.
4.5.1 Monetary motivation packages
These packages contributed much from the individual to the group performance due
to the fact that, most of the employees were motivated to work hard without time
limit in order to complete their works because they so sure of salary and allowance
like extra duty allowance. One of the respondents said that, “overtime payment
motivates me to work beyond the working hours” Also the teams sometimes used to
work during weekend on Sunday because they were sure of the payments of
overtime.
4.5.2 Promotion package
These motivation packages were influential to the individual performance, the
employee work very hard in order to be promoted and other they were motivated by
the promotion they got hence increases performance.
4.5 3 Good workers relationship
Freedom of authority, good workers relationship and support in carrying out
responsibilities, they influence the team work performance. For example one
member, said that they work with high spirit and cares about each one contribution in
the group so every member feel a part and parcel of the team so they are motivated to
56
work as a team. Also the ability to make decision at departmental level motivates a
lot.
4.6 Employees opinions towards the motivation offered
The final research question investigated by the study was: What are the employee’s
perceptions towards motivation packages? From the respondent questionnaires and
interviews, it seems that only 60% of employees were aware of the need of
motivation in order to drive their performance efforts because the intrinsic
motivation is not enough for their effective performance. Either monetary or non-
monetary or both of the motivation packages are very important to these employees
because these packages preference differs from one employee to another, for
example the interviewed employees said that, they need other motivators like job
security and training for work they done for the company because money is not an
issue to them.
They added that can cease to be the best motivator for them due to the fact that their
basic salary is big and they have a lot of allowances so fill the gap if sometimes
salary is not enough. But the case is different for middle class employees; they need
monetary motivation in order to increase their salary and related allowances.
One of the employee opinion stated that, “I had worked with NSSF for twelve years
now but I did not get a chance to go for study even for a short course, this de -
motivates me a lot.” So this proves that, the employees were aware of the need of
motivation.
4.7. Employee opinions on motivation as a tool to influence performance
From the respondent questionnaires and interviews, it seems all 50 of employees
equal to 100% said yes on motivation encourage them to perform efficient and
effectively towards achieving the company goals and objective as the Table 4.3 and
figure 4.2 illustrated.
57
Table 4:3 Motivation encourage performance of organization
RESPONDENTS NO OF RESPONDENTS PERCENTAGES
YES 50 100%
NO 00 00%
TOTAL 50 100%
Source: Research data 2013.
Figure: 4.2 Motivation encourage performance of organization
0
10
20
30
40
50
60
NO OF RESPONDENTS PERCENTAGES
YESNOTOTAL
Source: Research data 2013.
58
4.8. Lack of Incentives Motivation cause poor performance
From the respondent questionnaires and interviews, it seems all 50 of employees
equal to 100%, have strongly upheld the hypothesis position that lack of motivation
affects workers performance. The table 4.4 illustrated below;
Table 4.4 Lack of Incentives Motivation cause poor performance
RESPONDENTS FREQUENCY PERCENTAGE
YES 50 100%
NO 00 00%
Source: Research data, 2013.
Figure 4.3 summarizes the data obtained on Lack of Incentives Motivation cause
poor performance;
Figure: 4.3 Lack of Incentives Motivation cause poor performance
05
101520253035404550
FREQUENCY PERCENTAGE
YESNO
Source: Research data, 2013.
59
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
After the discussion of findings collected with respect to particular research
objectives, this Chapter concludes and recommends various measures which will be
useful for the improvement of effective motivation practices towards worker’s
performance at NSSF.
5.2 Summary of the major findings
This study examined the Assessment of Motivation as a tool for good Performance,
Perspectives from National Social Security Fund (NSSF) at Head office in Dar es
Salaam. A total of 50 employees participated in the study out of 150 populations of
all employees.
From the findings, the researcher concluded that, despite of the fact that, motivation
is a tool for good performance, but this was not well implemented in NSSF, this is
due to the reason that, although the company has been able to provide some of the
motivation packages to its employees but they were not constantly available to the
employees even if it was her/his right to get that particular package. Consequently,
some of the study findings agree with the conceptual framework that was developed
to guide the study while others do not. In all, however, the study found that
motivation was necessary for high performance of employees although in most cases
employees were poorly motivated.
5.3Conclusion
The conclusion of the study are presented in line with the specific objectives of the
study, thus; To identify the types of motivation packages provided by NSSF to its
employees, To examine the relationship between motivation packages to
performance and To assess employees perceptions towards motivation packages
offered.
60
To identify the types of motivation packages provided by NSSF to its employees,
From the findings, the researcher concluded that, despite of the fact that, motivation
is a tool for good performance, but this was not well implemented in NSSF, this is
due to the reason that, although the company has been able to provide some of the
motivation packages to its employees but they were not constantly available to the
employees even if it was her/his right to get that particular package.
The researcher discovered that, there is some favoritism on the provision of these
packages because some of the employees or some of the departments are more
considered in these packages than others. Moreover the findings indicated that, many
employees preferred monetary motivator than non-monetary.
The management should be carefully in this because if employees will have
excessive amount of money, they will automatically change their life style, which
eventually might affect their performance. So, management should be composed of
people who will have a comprehensive knowledge pertaining the employee’s
motivation so as to be able to design and implement desirable and useful employee
motivation practices for the best performance of the company goals.
Recognition and empowerment play an essential part in enhancing employee
motivation towards organizational tasks. By appreciating the employees for their
work done and giving them participation in decision making, internally satisfies them
with their job, organization and organizational environment. Thus their enthusiasm
and motivation towards accomplishment of tasks increases.
To examine the relationship between motivation packages to performance,
Employee recognition and employee motivation towards organizational tasks have
positive relationship between them as exhibited by the empirical studies.
61
Thus it is concluded that appreciation and recognition of employees and employees’
tasks fulfillment stimulates them towards working with more energy and dedication
to the organization.
Employee empowerment and employee motivation towards organizational tasks have
also direct and positive relationship between them. The motivated employees’ works
best in the interest of the organizations which leads them towards growth, prosperity
and productivity. Thus the employee motivation and organizational effectiveness are
directly related. So the organizations should work out and make such policies and
organizational structures that support employee recognition and empowerment.
To assess employees perceptions towards motivation packages offered,
Employee’s perceptions were aware of the need of motivation in order to drive the
performance efforts because the intrinsic motivation is not enough for the effective
performance of the employees. Either monetary or non-monetary or both of the
motivation packages are very important to the employees because these packages
preference differs from one employee to another, for example the interviewed
employees said that, they need other motivators like job security and training for
work they done for the company because money is not an issue to them.
They added that can cease to be the best motivator for them due to the fact that their
basic salary is big and they have a lot of allowances so fill the gap if sometimes
salary is not enough. But the case is different for middle class employees; they need
monetary motivation in order to increase their salary and related allowances. One of
the employee opinion stated that, “I had worked with NSSF for twelve years now
but I did not get a chance to go for study even for a short course, this de -motivates
me a lot.” So this proves that, the employees were aware of the need of motivation.
5.4 Recommendations
After assessment of motivation as a tool for good performance in NSSF, the
researcher has been able to identify some areas of weakness which hindered the
better practices of motivation in this organization.
62
In order to solve this problem, the following recommendations will help NSSF to
improve its motivation practices to its employees. Establishment of motivation
scheme; there is a need for a company the establish the scheme which will be funded
continuously in order to have the active and effective motivation practices in the
company because most of these packages need money so as to be available to the
right person at the right time.
This is important because if there will be the scheme which will have the budget, it
will help the company to implement this exercise continuously and successfully.
Policy concerning motivation should be revised time to time; Policies concerning
motivation should be revised time to time so as to keep pace with social, cultural and
economic challenges affecting the employees. Some of the criteria for motivation
should be revised to accommodate the aspirations of employees; this is the case since
some of the criteria are difficult for the employees to meet.
Also the issue of motivation is not only about positive motivation of employees in
order to perform better but also the negative motivators like punishment, half salary
per month, warning letter and disciplinary actions should be considered in order to
discipline and shape some employees who are misbehaving, so the policy should be
set on both sides. This will make the employees to be motivated to work very hard
hence the performance will be improved.
Other motivational packages should be introduced to employees; management should
revise the incentive system to ensure that a good number of packages are offered to
the employees so as to motivate them properly, for example motivation of job
security and education opportunities should be introduced, by doing so helps in labor
retention and decrease number of labor turnover in a company.
There should be reward given to those employees who worked for the company for a
long time also a company should eliminate poor retirement payments, this will make
employees to be motivated to work hard and be loyal to the company.
63
Emphasize personnel department; Personnel department should play a more serious
role in solving problems facing the employees at the working place. The department
should act as a bridge linking together the management and the employees. This is
the case since most of the problems of employees pointed out in this company can be
solved if there is full commitment from both stakeholders concerned.
Motivation Policies; management in National Social Security Fund should
standardize the workers motivation policies to reflect the desire and needs of the
workers. Also through having a good policies will make strong employees
recognition, training and development, better pay, favorable working conditions,
good administration, clear policies, better communications and decision making in
different matters.
Salaries and Wages; are the total remuneration, in cash or in kind, payable to all
persons counted on the payroll, in return for work done during the accounting
period" regardless of whether it is paid on the basis of working time, output or
piecework and whether it is paid regularly or not (Labor statistics, 1998). For that
case, in National Social Security Fund workers salaries and wages should be
carefully handled to reflect modern day packages.
Management of National Social Security Fund should reward their workers always
with promotion and practice fairness in managing organization affairs because has
positive impact on employee retention and enhancing motivation among personnel,
including helping the employees to make connections between professional goals
and personal goals.
64
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WEBSITES
www.nssf.or,tz. Retrieved on June, 15th 2013.
www.ehow.com/ importance-employee-rewards.html
68
APPENDICES
APPENDIX I: QUESTIONNAIRES
A questionnaire provided to relevant employees.
TO THE HEADS OF SECTION, MANAGEMENT AND OTHERS,
Dear respondents,
I am Lydia Mbonde, a student from Mzumbe University, Dar es Salaam Campus,
pursuing Masters of Science in Human Resource Management. I wish to make a
research on the ASSESSMENT OF MOTIVATION AS A TOOL FOR GOOD
PERFORMANCE. A CASE STUDY OF NATIONAL SOCIAL SECURITY FUND
(NSSF), I request you please to fill this questionnaire correctly so that you can
provide me with useful information for this study. Note that the information given is
confidential and therefore it will strictly not be released.
Personal details;
Department/unity/section………………………………………………………………
.
Job
designation.................................................................................................................
Sex………………………………..
PUT A TICK INTO A CORRECT ANSWER AND FILL IN THE BLANKS.
1) Do you know anything concerning employee’s motivation at working places?
YES ( ) NO ( )
2). Is there any motivation/incentives provided for the company’s staff?
69
YES ( ) NO ( )
2.1). If yes list them
…………………………………………………………………………………………
…………………..……………………………………………………………………
…………………………………………………………………………………………
.…………………………………………………………………………………………
2.2) If no
Why……………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
3) Are these welfare services provided to staff?
Free medical service
YES ( ) NO ( )
Transport service
YES ( ) N0 ( )
Family relief
YES ( ) NO ( )
Paid leave
YES ( ) NO ( )
Housing allowance
YES ( ) NO ( )
Adequate office accommodation
YES ( ) NO ( )
Phone allowance
YES ( ) NO ( )
Competitive salary
YES ( ) NO ( )
4). Is there any correlation between staff performance and motivation?
70
YES ( ) NO ( )
4.1) If yes what motivation is given to employees to perform at their maximum
capacity?………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
5). What measures taken to staff that perform below the average?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
6. What are the limitations in provision of motivation for company’s staff?
a) Lack of adequate fund YES ( ) NO ( )
b) Lack of clear policy on motivation/incentives scheme. YES ( ) NO ( )
C) Lack of time YES ( ) NO ( )
Others…………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
7. How is your relationship with your fellow members or staff?
i ). Good ( )
ii). Bad ( )
iv). Fair ( )
8. Are you satisfied with your work?
YES ( ) NO ( )
9. Does the nature and type of the job meet your future expectation?
71
YES ( ) NO ( )
10. Do you know the importance of being motivated as an employee?
a). YES ( )
b). NO ( )
11. Do you think that your employer has an ability to improve motivation to
employees in this company?
YES ( ) NO ( ).
12. Does motivation encourage performance of organization?
YES ( ) NO ( ).
13. Does lack of Incentives Motivation cause poor performance
YES ( ) NO ( ).
14. What is your general comment on the company on motivation/incentives
scheme?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
72
APPENDIX II
DATA COLLECTION LETTER FROM MZUMBE UNIVERSITY.
73
APPENDIX III
Social Health Insurance Benefit, this is the one of the motivators which provided
to the employees and members of National Social Security Fund (NSSF).
Benefit Services in social health insurance covering;