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

iii

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

iv

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.

v

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.

vi

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.’’

vii

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

viii

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.

ix

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

x

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

xi

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

xii

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

xiii

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

1

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.

2

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.

3

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

4

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.

5

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.

6

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

7

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).

8

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).

9

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

10

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.

11

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.

12

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-

13

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).

14

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

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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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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;