A PERCEPTUAL STUDY OF THE IMPACT OF MOTIVATION ON

THE PERFORMANCEOF EMPLOYEES IN BRITANIA ALLIED

GROUP OF COMPANIES

L~€ ‘‘-~-R ..~y

By —....~

Sheena Samue ~ 0~“~~4~’

MBA14318/61IDF

A THESIS SU~RM1TTED TO THE SCHOOL OF POSTGRADUATE

STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE OF THE AWARD OF A DEGREE OF MASTERS IN

BUSiNESS ADMINISTRATION (ACCOUNTING OPTION)

OF KAMPALA INTERNATIONAL UNIVERSITY

~ 11~i’S~~J%≤4f 1 ~

October, 2008

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DECLARATION

I Sheena Samuel do hereby declare to the best of my knowledge that this research is my

original work and that it has never been presented to any University or any other

Institution of higher learning for the award of any Degree, Diploma, or Certificate. Where

the work of others have been cited, due acknowledgement has been given.

fri

Sheena Samuel

APPROVAL

This is to certify that this dissertation entitled ‘The Impact of Motivation on the

Performance of Employees in Britannia Allied group of Companies’ submitted in partial

fulfillment of the Masters degree of Business Administration of Kampala International

University, by Sheena Samuel was under my supervision and guidance and is now ready

to be submitted to the school of post graduate studies with my approval.

Submitted with my approval

MAUREEN OUMA

Supervisor

~.. .~~

Rev. MATTATICAL MNAN CHANDY

Co. Supervisor

DEDICATION

This work is dedicated to my father Mr. Samuel P Abraham and my mother Mrs.

Marriam Samuel for having made me what I am and reach this level in life.

111

ACKNOWLEDGEMENTS

Without the support, devotion and expertise from so many people this work would never

have been possible.

My special gratitude goes to Mrs. Maureen Ouma, my supervisor and Rev. Ninan

Mattatical Chandy (l3sc. M.Ed, PHD-Educ planning) my co-supervisor, for their

guidance and encouragement throughout my research and completion of my report.

I am grateful to my colleagues who stood by me at every step of the course and this

research. Specially mention to Abanis, Lois and Ezeza Thank you for your constant

support.

I am also grateful to my lecturers and entire staff of Post graduate School, who helped us

to really understand the content of our course in-depth and availed me with the necessary

support during the course.

I would be unfair if I don’t thank Mr. Parthasarathy, the operations manager and the staff

of Britannia who helped me to successfully conduct my research at the company. I would

not have come up with this research report had it not been for your assistance.

~Thcud~ y~ou aeL

iv

TABLE OF CONTENTS

Declaration

Approval II

Dedication iii

Acknowledgment iv

Table of contents V

List of Tables Viii

List of Abbreviations ix

Abstract X

CHAPTER ONE: INTRODUCTION

1.0 Background to the study I

1.1 Statement of the problem 3

1.2 Purpose of the study 4

1.3 Objective of the study 4

1.3.1 The general objective of the study 4

1.3.2 Specific objectives of the study 4

1.4 Research Questions 4

1.5 Significance of the study 5

1.6 Scope of the study 5

1.6.1 Geographical scope 5

1.6.2 Subject scope 5

1.6.3 Time scope 6

CHAPTER TWO: LITERATURE REVIEW

2.0 Overview of the chapter 7

2.1 Theoretical framework 7

2.2 Review of related literature 8

2.2.1 Factors that motivate employees 8

V

2.2.2 The relationship between motivation

and performance of employees 16

2.2.3 The impact of motivation on the

Performance of employees 19

CHAPTER THREE: METHODOLOGY

3.0 Overview of the chapter 22

3.1 Research design 22

3.2 Research population 22

3.3 Sampling and sampling procedure 22

3.3.1 Procedures 22

3,3.2 Subject selection 23

3.4 Instruments 23

3.4.1 Questionnaires 23

3.4.2 Validity 24

3.4.3 Reliability 24

3.4.4 Interviews 24

3.4.5 Review of Company records 25

3.5 Data Analysis 25

3.5.1 Editing 25

3.5.2 Coding 25

3.6 Ethical consideration 26

3.7 Limitations of the study 26

CHAPTER FOUR: FINDINGS, INTERPRETATION AND ANALYSIS OF

DATA

4.0 Overview of the chapter 27

4.1 The factors that motivate employees 27

4.2 The relationship between motivation and Performance of employees.35

4.3 The impact of motivation on the performance of employees 41

vi

ABSTRACTThis study was about the impact of motivation on the performance of employees in

BAIL.

The study involves an extensive coverage on how BAIL manages employee’s motivation

in the day- to-day activities. It analyses the motivational factors in BAIL; the relationship

between motivation and performance of employees and the impact of motivation on

employees’ performance in BAIL.

The population sample involved employees of BAIL. A sample size of 25 employees

which is equivalent to 40% of the total population was used.

The researcher applied stratified sampling. The researcher randomly picked the sample

from administration, finance, human resource, operations staff and employees at

supervisory level in the different sections in the company which includes food; juice and

confectionary.

The data was collected using questionnaires and interviews which helped the researcher

to obtain detailed information.

The researcher also discovered the root causes of what was de-motivating employees atBAIL.Such as poor pay, lack of welfare services like housing facilities, transport, refreshment

and also the poor communication which exists within the company. All these de-motivate

employees and affect performance adversely.

Basing on the above, BAIL should enhance employees salary, cater for employees

welfare and establish proper communication channels within the company.

x

CHAPTER ONE

INTRODUCTION

1.0 Background to the studyThis research examines the impact of motivation on employee performance in

Britania Allied Industries Limited. It includes an extensive coverage of the factors

that motivate employees; the relationship between motivation and performance

and the impact of motivation on employees’ performance.

Of recent, it has been noted that human resources are the most valuable resource

in the organization as they predict the position of the firm amidst its competitors.

This is due to the unique qualities, skills and expertise that vary from individual to

individual. Afler the long process of hiring, one has to then think of maintaining

and keeping the employees in the organization. Then the question as to ‘How do I

get the relative worth of what they are being paid for?’ arises. How are they to be

stimulated so as to get them to contribute maximum efforts for the organizational

success? The question as to how to unlock their maximum potential may be

answered by ‘Motivation’.

Different scholars have defined the term motivation differently.

“Motivation in an organization is the willingness of an employee to respond to the

organizational requirements. The more positive the individuals motivation

towards the organization, the more effective his performance. (T. Eugine, 2003)

Thus, motivation is important because of its significance as a determinant of

performance. This research is concerned with a comprehensive review of “The

level of motivation and employee performance in Britania Allied Industries

Limited.” During the process, focus was on the employees of the organization.

The study looked at two major variables, motivation and performance.

1

It has been noted that different categories of people are motivated differently

within the organization. Motivation differs among different age groups, among

staff with different experiences and different grades.

In most cases, managers perceive motivation among employees to rotate around

monetary incentives but to most workers it’s a misconception as they are treated

as mere wage earners. Managers forget to view their employees as a valuable

resource that must be carefully handled to get their maximum output for the better

performance of the organization.

Pay incentives may be appealing to young workers, professional development

opportunity might interest those in mid-career and being part of policy and

strategic planning might interest long them associates. Thus, it’s vital to note that

interests vary from individual to individual. It’s therefore necessary to find out

what satisfies each employee and to establish what makes him/her do what he/she

does. Not only must employees have the ability to achieve outcomes but they

must also be willing to expend effort to achieve them. Willingness to work

towards company’s goal has to do with employee motivation which results into

effective performance.

Britania Products (U) Ltd. was set up in 1992 as a small unit for manufacturing

biscuits and bread. A confectionery unit was added to this in 1998. To utilize the

abundant natural resources of fruits and vegetables in the country, Britania Foods

(U) Ltd., a modem fruit and vegetable processing unit blossomed into existence in

mid 1995.

Late 2002 Britania Products and Britania Foods merged and a new entity Britania

Allied Industries Ltd. was instituted. The Corporate Office and the factory is in

Ntinda Industrial Area in Kampala. The years 2003 to 2006 saw tremendous

growth for the company. Britannia allied Industries Ltd has five separate plants

for production of biscuits, confectionery, powders, fruit juice and drinking water.

The Powder section was added in 2005 and the Mineral Water plant started

2

production in 2006. Additional capacities were installed in the biscuits,

confectionery and foods plants. The confectionery section consists of sweets and

chewing gum sections. Among the several range of biscuits some include;

Glucose, Gluco-Max, Milk and Cream Biscuits, Menta and Just Fruits Splash,

Sun-sip and Top-up. Despite competition from leading brands from South Africa,

Splash range of fruit juices continue to dominate the fruit juice segment and are a

runaway success because of its superior quality and taste. The list of flavours

includes pineapple, passion, mango, apple, orange, black currant, etc. The

Powders range includes Pure Glucose Powder and Britania Mandazi. It has also

added refresh water to its range of products. The combined strength of managers,

sales personnel, administrators, engineers, technicians, operators and skilled

specialists and casual staff exceeds 2000.

Li Statement of the problem

The issue of motivation has not yet been given much attention though it is a

fundamental component of organizational success in today’s competitive business

environment, Companies are putting in place various strategies to attract

competent personnel from the environment. ‘Higher paid family wage jobs for all

age groups are more competitive than before.’ (Lamberton & Evans, 2002 pg 7)

Management needs to keep their staff motivated by making them psychologically

committed to the organization. This can only be done through motivation, but due

to the fact that most managers view motivation as a cost to the organization, they

would rather invest their financial resources in other productive ventures rather

than in their employees. ‘Downsizing, restructuring and re engineering are terms

that reflect the critical stage in strategy implementation wherein managers attempt

to recast their organization. The company’s structure, leadership, culture and

reward systems may all be changed to ensure cost competitiveness and quality

demanded by unique requirements of its strategies’ (Pearce & Robinson, 2003 pg

15) Yet the growth of the organization depends entirely on the contributions made

by its workforce; their skills, knowledge and expertise are essential for the

organization to flourish in this competitive era. For this, it is essential to ensure

that motivation is in place so that employees are more willing to unlock their

potentials for the achievement of organizafional goals. The aim of this research is

therefore to show whether motivation is carried out in BAIL and if so what

impact does it have on the performance of employees within BAIL.

1,2 Purpose of the Study

The purpose of the study was to examine what motivates employees in Britania

Allied Industries Limited, assess the relationship between motivation and

performance of employees and also to study the impact of motivation on the

performance of employees in the industry

1,3 Objectives of the study

1.3.1 General objective of the study:

The general objective of this study is to examine the impact of motivation on

performance of employees in Britania Allied Industries Limited.

1.3.2 Specific objectives:

The specific objectives of the study are to:

1. Examine what factors motivate employees in Britania Allied Industries

Limited.

2. Assess the relationship between motivation and performance of employees in

Britania Allied Industries Limited.

3. Establish the impact of motivation on the performance of employees in

Britania Allied Industries Limited.

1.4 Research Questions

1. What are the motivating factors in Britania Allied Industries Limited?

2. What is the relationship between motivation and performance of employees in

Britania Allied Industries Limited?

3. What is the impact of motivation on the performance of employees in Britania

Allied Industries Limited?

4

L5 Significance of the study

The groups and categories of people to gain from this study are

1. This study and the findings of the study will assist organizational planners,

managers and administrators of Britania Allied Industries Limited to

recognize the importance and need for motivation of their workforce to

enhance effective achievement of organizational goals.

2. This study will also assist employers to understand the views of their

workforce with regard to general conditions of work environment and

motivation and also as a bench mark to those organizations that have

neglected the power of motivation.

3. It will further assist in spelling out the reasons to interested parties facing poor

performance of employees as a result of dc-motivation as to why some

employees perform better than others despite operating under similar

organizational conditions.

4. Most importantly, apart from adding onto the stock of knowledge that already

exists in the field of management, the report will also assist other scholars and

shall form the basis upon which further studies can be carried out.

1.6 Scope of the study

1.6.1 Geographical scope

Britania Allied Industries Limited is a leading biscuits company in Uganda. It’s

located at Ntinda, industrial area within Kampala district. The researcher has

chosen this company because she can easily access information required in

successful completion of research intended to carry out with this company.

1.6.2 Subject scope

The respondents to the study were composed of human resource manager,

marketing manager, production manager and employees at all levels of the

organization.

5

1.6.3 Time scope

This research took approximately eight months starting from January to August of

2008.

6

CHAPTER TWO

REVIEW OF THE RELATED LITERATURE

2.0 Overview of the chapter

In this chapter the researcher reviews the related literature to the topic. The

researcher also closely examines the relationship between the literature and the

research problem and where necessary, short direct quotations are used.

2.1 Theoretical framework

What employees find motivating in the work environment has been studied from

two different perspectives.

Historically, the issue has been approached from the point of view of the

individual so that motivation content was often defined in terms of needs

experienced by the individual. Some needs being physiological i.e. the desire to

excel in the work environment.

A second approach focuses on rewards individuals seek from work. The pay one

receives from work is an obvious reward for most persons, so also maybe working

with pleasant colleagues. However, preferences for rewards vary widely among

employees depending on the environment to which they are exposed.

This research study will be based on the two-factor theory as advanced by

Fredrick Hertzberg.( Armstrong, 2003) He identified two distinct sets of needs

among employees working in an organization.

The need to avoid pain and discomfort and the need to develop psychologically as

a person. He identified two areas of concern for the organization employing

people.

a) Hygiene factors

b) Motivators.

7

Hygiene factors include working condition, company policy, administration,

status, Ljob security, supervision, interpersonal relations, pay and salary. These are

mainly extrinsic factors. If they are inadequate, there will be dissatisfaction and

work output will suffer. Drawing an analogy between a healthy organization and a

healthy person, Hertzberg’ s called these hygiene factors in the sense that they

prevent the disease ofjob dissatisfaction.

Motivators include achievement of work tasks, recognition by supervisors of

achievement and quality of work, giving an increased responsibility as reward for

successful work efforts, opportunity for psychological development in the work

role and growth. Since these characteristics are viewed to be intrinsically

rewarding to employees, they work harder to increase their level of performance,

hence get satisfied through their job.

According to Hertzberg’s two-factor theory, hygiene factors help to enhance the

performance of an emplo~e at the workplace, they may motivate an employee

but in the long run, it may turn out to be his/her right and the employee will

sublime back to the original level of output. Therefore, it is necessary to focus on

the use of motivators to increase the level of performance of employees.

Motivators may include effective communication, career development through

training, delegation of authority, job enrichment etc.

2.2 Review of related literature and other researchers’ works

2.2.1 Factors that motivate employees

A human resource manager must know specific ways which could help motivate

his/her personnel. Motivation of individuals depends on their motives. Motives

are defined more often as needs, wants, desires or impulses within the individual.

It goes to the credit of Human Resource Management that it has made several

ready made techniques and programs that can be used by a manager. The more

important among them being: - money, job enrichment and job rotation,

behaviour modification, quality of work life.

8

The social environment in an organization plays an important role in determining

the motivation of an employee. Employees need to interact with their colleagues

for various reasons within the organization. Employees therefore, may be

organized into teams or may form their own groups in which they feel

comfortable such as; cliques of similar culture, background among others. The

environment also plays a great role in determining the success or failure of an

individual in the organization.

Maslow also claims that once an individuals physiological and safety needs have

been satisfied, social needs are activated. (Armstrong ,2003). These needs refer to

the need to be affiliative- that is to be liked and accepted by others. Employees

being social animals seek company and approval. Thus in order to satisfy the

social need, the company can sponsor events such as picnics, sport activities such

as foot ball, netball etc. in which employees can interact and get acquainted with

one another. This will help create a more harmonious atmosphere at work, when

employees share a closer inter-personal relationship.

Elton mayo( Lamberton & Evans, 2002> and other human relations researchers

further found that social contacts which the worker had at his workplace were

important. They were of the view that managers could motivate their employees

by acknowledging their social needs and by making them feel useful and

important. As a result, greater attention was paid to the informal work groups

within the organization.

The Three Needs Theory also called the Achievement-Motivation theory as

advanced by David c McClelland and his friend’s (Aldag & Kuzuhara, 2002>

further focuses on the three needs that motivate human behaviour such as:

Power, Affiliation and Achievement. This theory envisages that each person has a

need for all the three but that, people differ in the degree to which the various

needs motivate their behavior. In this theory, Individuals exhibiting need for

affiliation as a dominant motive derive satisfaction from social and interpersonal

9

activities. They suggest that there is a need to form strong interpersonal ties and to

get close to people psychologically. If asked to choose between working at a task

with those who are technically competent and those who are their friends, high-

need-for-affiliation individuals will choose their friends. However this may

depend on whether an employee is an extrovert or an introvert, introverts may not

be motivated by social interactions as compared to extroverts.

Money is also one of the hygiene factors and a factor, that helps to improve the

maintenance of employees which is the first step in the efforts directed towards

motivation. ‘Money also performs the function of a score card by which

employees assess the value the organization, places on their services, and by

which employees can compare their values to others.’ (Asswathappa, 2001 pg 380)

Individuals work in order to get rewarded for the work they do. Companies often

provide wages and salaries to their employees in return for the work that they do

to help attain the organizational goal. The employee takes pay as the reward for

his/her work, and the employer views it as the price for using the services of the

employee.

Instrumentality expectancy theory( Lamberton & Evans, 2002) captures an

individual’s perception about the relationship between effort and performance.

Instrumentality, the second major concept in expectancy theory is a person’s

perception about the extent to which performance at a certain level will result in

attainment of outcomes. According to expectancy theory employees will be

motivated to perform at a high level only if they think that high performance will

lead to or is instrumental to attainment of outcomes such as pay, job security,

interesting job assignments, bonuses or a feeling of accomplishment. In other

words instrumentality must be high for motivation to be high; people must

perceive that if they do perform highly they will receive outcomes.

Once an employee perceives that he/she is being rewarded or that his/her pay is

directly linked to his/ her performance, then he/she is likely to put in more efforts

10

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in order to attain higher wages or approval from his/her immediate boss. But this

may only work for individuals who seek to improve their living standards and

seek for a living from the work they do, in some instances there are individuals

who may work for the mere satisfaction that they derive from the workplace, still

its hard for the human resource manager to equate the efforts put in by an

individual in monetary terms. Money may also cease to motivate an individual

after his basic needs have been satisfied such that, it can not be use as a

continuous motivator. Further still it may cause disagreements among top

management as they may view it a cost to motivate employees by using the

financial resources which in their view could have been used for more productive

purposes.

An enriched job also allows the incumbent to feel that he is growing mentally.

Being an outgrowth of Hertzberg’s ( Armstrong, 2003) two factor theory, of

motivation, job enrichment is a valuable motivational technique.

Job enrichment refers to the process of making a job exciting, challenging and

creative or giving the job holder more decision making, planning and controlling

powers. This is usually done for employees to reduce the monotony of their work

and to increase their job satisfaction at their work place. It may involve puffing in

many other tasks that may be challenging as well as interesting to the individual,

to reduce his/her boredom and thus increases his /her morale in performing the

day to day activities.

Job security is very essential for an employee to perform effectively. Today,

when there are many competent professionals seeking job placements in

companies, its natural for an incumbent to feel he/she may loose his/her job and

this may lead to several problems such as stress, labor turnover etc. thus its onus

upon the company’s management to build confidence in their staff and increasing

their commitment to the organization. This will help them to feel more affiliated

to the organization and they in turn will open up their competencies for the benefit

of the organization. A sense of job security also enables workers to be more

innovative in the organization.

11

Face- to- face communication makes the employees to feel important and more

willing to accept what is being communicated to them without any distortion of

the original message. It also helps to solve any grievances before they result into

conflicts, disputes and strikes. The Hawthorne experiment ( Mejia & Balkin,

2002)also came up with the view that there was need to pass on information to the

workers about the managers intentions and about the operations of the

organization.

Effective communication is very essential for management to successfully

perform its functions. It is an essential ingredient in supporting management to

successfully perform its functions and in regulating management-employee

relations.

Most of the conflicts in business are not basic but are caused by misunderstood

motives and ignorance of facts. Proper communications between interested parties

will therefore reduce the points of hostility and minimize those that inevitably

arise. However hr may not have the full support in implementing this due to line

managers in the organization who may view regular communication as a likely

interference to managerial prerogatives.

Recognition of employees for their outstanding or their good performance also

motivates them. They will be motivated to follow example of the recognized

employee, and to perform as per what is expected of them. For example,

promotion of hard working employees will lead to an increase in performance as

each one is trying to do his! her best to put in behaviour worth of the position

he/she is competing for.

The Three Needs theory, also called the Achievement-Motivation theory as

advanced by David C McClelland and his friends also proposes that employees

with a high need for achievement derive satisfaction by reaching their goals or set

targets. This means that succeeding at a task is important to a high achiever than

any other provision.

1,.,13

The extent of learning has to be greater or equal to the change it faces for a

business to survive. Not only does it help to achieve the organization a

competitive advantage, but also helps motivate employees who are career

oriented. When one realizes that it is the hardworking, committed and innovative

workers who are sent for training or are given scholarships by the organization a

career oriented employee will ensure that he/she modifies his/her behaviour to

suit the qualifications required to attain this reward.

This can further be supported by Organizational Behaviour Modification theory

which states that implementation of the Operant Conditioning Techniques

promote the performance of organizationally functional behaviours and

discourage the performance of dysfunctional behaviors among employees. Hence

by selecting employees for training, taking into account their plus-points

managers are promoting functional behaviours of the employees in the

organization. A constant axiom with any initiative is the need for endorsement

form the senior management. With a performance initiative it has to go a great

deal further, acceptance by the senior managers.

Employees can further be motivated by allowing them to participate in the

decision making process. Workers are at the center of the operation process, they

may have more knowledge than management in their spheres of operation.

Management normally involve only themselves in a decision making process, but

if workers are consulted and involved in decision making process, it will lead to

motivation, because participation acts as a means of recognition. It appeals to the

needs of affiliation and acceptance.

It gives people sense of accomplishment as suggested by; McGregor’ s theory Y (Lamberton & Evans, 2002) which says that a substantial proportion of people

working in an enterprise want to get involved, and if permitted to do so, can

channel their creativity for the benefit of the organization. However some

Managers think that they may reveal sensitive information to the employees

which may later trigger conflict; information like profits made. Also some may

14

view it that they, being in the managerial position have the frill rights to make

decisions which do not need to be interfered with by the employees, who are less

superior to them.

Employees can also be motivated by Job enlargement. Job enlargement refers to

the way of making a job less boring by introducing more variety. I.e. increasing

the number of different tasks the employee has to perform. This usually involves

widening a job from a central task to include one or more related task, usually of

the same type as the original task. This means that an individual has a wide range

of responsibilities as compared to before; this improves his morale as he/she is in

better position than his colleagues. However some employee may take it as work

overload and this may end up demotivating them.

Empowerment also motivates employees. Most of the organizations have a

number of employees who believe that they are dependent on others and their

own efforts have little impact on the performance of the organization. A sense of

this powerlessness creates frustration in employees and starts developing a feeling

that they cannot perform successfully or make a meaningful contribution to the

organization.

In order to overcome this feeling of hopelessness in employees and involving

them in their job, the idea of empowerment has to be introduced in the

organization as away of motivating employees. Managers however may think that

their subordinates may become more competitive than them and fear for their

position within the organization.

Today managers do not take training into consideration as they view it as a cost to

the organization not realizing the long term benefits this is likely to bring to the

organizational performance. Still some managers may not even feel it’s important

to communicate with the low level employees since they believe they view

employees as mere wage earners who work in order to achieve their individual

goals and make no significant contribution to organizational development.

15

‘The high productivity of Japanese workers is attributable to many reasons, but

motivation is the main factor. Productivity of workers becomes a question of the

management’s ability to motivate its employees’(Asswatthappa, 200 1,pg 345)

.Motivation is the result of processes, internal or external to the individual that

arouses enthusiasm and persistence to pursue a certain course of action.

‘Motivation therefore represents an unsatisfied need which creates a state of

tension or disequilibrium causing the individuals to move in a goal directed

pattern towards resorting a state of equilibrium by satisfying the need’.

(J. S. Chandan, 2000)

2.2.2 The relationship between motivation and performance of employees

L.W. Porter and E .E .Lawer stated that, the factors that determine the effort put

into a job include, the extent to which the psychological and monetary rewards

obtained from doing the job fulfill the workers needs for security, esteem,

independence and personal self development and the workers expectation that

putting a great deal of effort into the job will lead to the achievement of satisfying

rewards. Thus the more attractive an equilibrium employees considers a particular

reward, and the higher the probability that the exertion of effort will lead to that

reward, then the more the individual will put into his/her work.

As put forward by Edward Thorndike, those behaviors that are rewarded tend to

be repeated. An employee is likely to perform highly if he feels he will be

recognized, promoted or be given a reward.

He also came up with the negative reinforcement theory, he was of the view that

the removal of unpleasant consequences associated with a desired behaviour

resulted in an increase in the frequency of that behaviors. If an employee feels

that being creative at work will not lead to reprimands for not following

procedures, they are likely to try new ways of doing things and become more

entrepreneurial.

16

Also Expectancy theory states that effort to satisfy needs will depend on the

person’s perception that he/she can expect the effort to be followed by certain

outcome which will bring desirable rewards.

According to this theory, the strength to act in a particular way depends on

peoples beliefs that their actions will produce outcomes they find valuable and

attractive. For instance, employees work harder if they believe that hard work will

lead to better performance appraisals and promotion.

‘Individuals normally base their predictions of what will happen in the future on

what has occurred in the past’ .People are motivated to put forth a lot of effort on

their jobs only if they think that their effort will pay off in high performance- that

is if they have high expectancy.(Bhambra, 2000)

Instrumentality expectancy captures individual’s perceptions about the

relationship between Effort and Performance. Instrumentality, the second major

concept in expectancy theory is a person’s perception about the extent to which

performance at a certain level will result in attainment of outcomes. According to

expectancy theory employees will be motivated to perform at a high level only if

they think that, high performance will lead to or is instrumental to attainment of

outcomes such as pay, job

Security, interesting job assignments, bonuses or a feeling of accomplishment. In

other words instrumentality must be high for motivation to be high. People must

perceive that if they do perform highly they will receive outcomes.

Valence (Lamberton & Evans 2002) also refers to how desirable the outcomes

available from a job or organization are to a person. To motivate organizational

members, managers need to determine which outcomes have high valence for

them or are highly desired by them and make sure that those outcomes are

provided when, members perform at a high level. This will increase the

performance of employees if they perceive that they will be given something of

value to them or something that has great valence to them.

According to expectancy theory, high motivation results from high levels of

expectancy, instrumentality and valence. If any one of these theories is low no

matter how tightly desired outcomes are linked to performance, if a person thinks

that it is practically impossible for him/her to perform at a high level then

motivation for him/her to perform will be extremely low. Similarly if a person

does not think that outcomes are linked to high performance or if a person does

not desire the outcomes that are linked to high performance, then motivation to

perform at a high level will be low. (Jones , 2000). In other words in order for

people’s motivation to be high, expectancy, instrumentality and valence must be

high.

All organizations are concerned with what should be done to achieve sustained

high levels of performance through people. This means giving close attention to

how individuals can be best motivated through such means as incentives, rewards,

leadership and importantly the work they do and the organizational context within

which they carry out their work.

The aim of course is to develop motivation process and a work environment that

will help to ensure that individuals deliver results in accordance with the

expectations of management. When payments of individual, group and

organizational performance is likely to be based on Merit their motivation is

likely to be high. Goal theory as developed by Latham and Locke (1979) states

that motivation and performance are higher when the individual are set specific

goals, when the goals are difficult but accepted.(Armstrong 2003) Goal theory

plays an important role in performance management however, ‘Erez and Zidon

(1984) emphasized the need for acceptance of and commitment to goals. They

found that as long as they are agreed, demanding goals lead to better performance

and easy ones.’( Armstrong, 2003. pg 162)

An organization should be a vehicle for fulfilling individual needs. However

organizations do not exist merely to satisfy individual needs but are concern with

survival through productivity. Achievement of productivity coupled with the

satisfaction of the employees needs should be the concern for all organizations.

18

Productivity is the ratio of the given amount of output to a given amount of input

for a specific period of time. The higher the ratio, the higher the productivity.

2.2.3 The impact of motivation on the performance of employees.

Motivated employees become more innovative; in modem business today,

competitive pressures require firms to be innovative. This means bringing up new

ideas, routines, and methods of work, products, and materials. Innovative ideas

may be contributed by the individual employees within an organization. Though

changes can be small and relatively insignificant yet when they are added together

can have a dramatic effect. Motivation helps to create a positive attitude within

the employees toward the organization they are working in. Reward, when given

for creative ideas can help in motivating employees to think up new ideas or on

how to improve the services or the products of the organization, or even on how

to improve the operations within the organization.

Motivated employees are also vigilant about the Quality and this saves the

company money on defective products and wasted raw materials. It can also

reduce greatly the labour cost, of hiring quality specialists who inspect the work

of employees. Employees are chiefly responsible for quality such as those who

assemble a product or provide service.

If workers are strongly motivated, there is little need to supervise their

performance on a continuous basis. This results in considerable saving in time and

money to the organization( Pagare. 2000)

Motivation within the company can reduce the rate at which employees leave the

organization. This is due to the fact they will be more committed to the

organization. Employees may have attitudinal commitment that is loyalty and

support for the organization, strength of identification with the organization, a

belief in its values and goals and a readiness to put in effort for the organization.

19

Employees will also have behavioral commitment that is employees will actually

remain with the company and continue to pursue its objectives.

However this may also depend on the employees personal experiences in the

workplace, personal commitment, and personal motivation. Motivated employees

tend to stay in the organization and are not easily lured by employment

opportunities. They also do not abstain from work unless it is unavoidable. Thus

the organization is not required to recruit employees every now and then and train

them at heavy cost.

Motivation leads to increased Efficiency in the organization. This deals with the

cost-benefit i.e. input and output of the organization. Motivated workers tend to

reduce wastes and to derive the best or maximum benefit out of what they do.

Efficiency depends on achievement of departmental objectives on the one hand

and the elimination of wastages involved in man, machine, material, method and

money. The operating efficiency depends on a number of factors. Important

among them are increase in the volume of production, reduction in cost of

production elimination of waste research and development activity, proper

method of work.

According to the Operant Conditioning Theory developed by psychologist B.F

Skinner,( Aldag & Kuzuhara, 2002) people learn to perform behaviors that lead

to undesired consequences. People will be motivated to perform at a high level

and attain their work goals to the extent that high performance and goal

attainment enable them to obtain outcomes that they desire. Organizational

Behaviour Modification (OB MOD) is highly effective for promoting

organizational efficiency.

Job enrichment may help to increase the roles an individual is playing within an

organization. It can help reduce waiting time incase of any maintenance

breakdowns. It gives the employees a greater sense of doing a whole job and

greater responsibility. This helps to improve the performance within the company.

20

Motivation helps to increase the performance of employees. An organization can

be effective only if its members are adequately motivated towards high job

performance in a persistent way. Motivated employees perform better than those

who lack in motivation. This is because they have a positive attitude towards their

tasks and activities, Superiors, peers and subordinates and are also rewarded for

their performance.

Motivated employees easily accept organizational changes. Generally motivated

employees do not resist any technological or other changes which may be

introduced in the organization to cope with developments in the internal and

external environments. On the contrary they readily accept and implement these

changes. This is due to the attitudinal commitment that is loyalty and support they

have for the organization. They also identify themselves with organization, and

have a strong belief in its values and goals and a readiness to put in effort for the

organization..

An organization that motivates its employees can retain and attract quality staff or

skilled labour. An organization with strongly motivated workforce enjoys a good

reputation in society. As a result it can attract and retain the best personnel to

work for it.

21

CHAPTER THREE

METHODOLOGY

3.0 Overview of the chapter

This chapter entails how this research was conducted. The researcher also deals

with the subject of research design, design of study, procedure used in conducting

the research, instmments of the research used and how data was analyzed.

3.1 Research design

The research design was a case study design. The study focused on Britania

Allied Industries Limited. This is due to the presence of very many industries of

this nature. Hence the researcher feels that Britania Allied Industries Limited will

be representative of the other companies. in studying the impact of motivation on

employees at the work place.

3.2 Research population.

The targeted sample of the study were; the staffs of Britania Allied Industries

Limited, Kampala office.

The sample composed of administration staff, finance staff, human resource stafi~

Operations staff, employees at supervisory level in the different sections in the

company which include foods, juice and confectionary.

3.3 Sample and sampling procedure

3.3.1 Procedures

In carrying out this research the researcher went through several channels in order

to acquire the relevant data.

The research topic was handed to the supervisor for approval, questionnaires and

instruments were also approved. The researcher then obtained an introductory

letter from the School of Post Graduate School Kampala International University.

22

This helped the researcher to be accepted in the field of study and to the

management and staff of BAIL, indicating the purpose of the researches

visitation. This was followed by the actual administration of instruments which

included distribution of questionnaire to the subjects and carrying out other

necessary observations. The researcher collected the questionnaires after they

were filled and the necessary observations had been made. Finally the collected

data was sorted, analyzed and interpreted and recommendations made,

3.3.2 Subject selection

The researcher used stratified random sampling. The sampling was of a mix up as

per department making the whole study population. The researcher randomly

picked the target sample from administration, finance, operations and supervisors

in the different sections of the company. They were evenly picked to make a total

sample of 30 respondents, which makeup for 40% of the entire population within

the company. The researcher felt this would give a valid representation of the

entire research population.

A total of 30 respondents were targeted. 2 of which were the human resource

staff, 3 operations, 3 administration, 2 finance, and the rest at supervisory level.

This was intended make up 40% of the entire research population to give a valid

sample to represent the level of motivation in Britania Allied Company Ltd.

3,4 Instruments

The research instruments included the following;

3.4.1 QuestionnaireS

These were both open and close ended. The researcher used questionnaires when

dealing with literate employees. This also helped the researcher to get more

detailed information.

3.4.2 Validity

According to Amin ( 2005), Validity is the ability to produce findings that are in

agreement with theoretical and conceptual values, that is to produce accurate

results and measure what it is supposed to measure. Content validity therefore

refers to the degree to which the questionnaire for instance actually measures or is

specifically related the traits for which it was designed.It shows adequately how

the instrument samples the universe of knowledge, skills, perceptions and

attitudes the respondent is expected to exhibit.The Content Validity Index for an

instrument to be accepted as valid the average index should be 0.75 and above.

Amin (2005). CVI( Content Validity Index) for the questionnaire administered to

the employees of BAIL was calculated by a research expert and was as follows;

The CVI for section B of the questionnaire was 0.875, for section C was 0.875

and for section D was 0.93,as shown in Appendix E.Therefore the questionnaire

was deemed valid.

3.4.3 Reliability

This refers to the dependability of an instrument in measuring what it is supposed

to measure. A reliable instrument is thus one which produces the same results

whenever it is repeatedly used as characterized by precision and objectivity. The

researcher administered the per test post test method to check the reliability of the

questionnaire. A pre test was carried out on 10 employees and a post test after 2

weeks to the same employees with the same questionnaires and the responses

were identical, hence the questionnaire was deemed reliable.

3,4.4 Interviews

The researcher felt that this would be appropriate for sonic of the respondents

especially the managerial staff who may not have had enough time to fill the

questionnaires but may have been willing to spend some little time to answer a

few key questions. The researcher interviewed the human resource manager and

other administrative staff to know more about the company’s policies regarding

motivation of employees.

24

3.4,5 Review of company records

The researcher felt that this would be appropriate for analyzing the level of

performance, productivity, labor turnover, grievances, sales and other information

integral to explain motivation of employees within the organization.

3.5 Data analysis

The researcher analyzed the data using quantitative and qualitative analysis. The

researcher analyzed the interviews qualitatively and the questionnaires

quantitatively. This is because the questionnaires provided responses that could

easily be coded. The researcher manually analyzed the responses using frequency

distribution. The responses were then tabulated, summed and calculated to give

percentages of the representation of the levels of employee motivation to

determine its impact on performance of employees to give accurate analysis and

valid conclusion.

3.5.1 Editing

This was done at the end of each work day. This process was carried out to ensure

that the information given by the respondents was accurate and consistent. Editing

was done by the researcher in this respect. Every questionnaire that came from the

field was scrutinized through cross checking wrong entries and standardizing the

information while checking on the omissions and inconsistencies.

3.5.2 Coding

This consisted of translating edited responses into numerical figures or terms.

Coding was considered as a process or classification by the researcher in preparation

for tabulation. A complete coding schedule was done to ensure that various

responses obtained were classified into meaningful forms so as to bring out those

essential patterns clearly.

25

3.6 Ethical consideration

Many companies are not willing to enclose their information, so the researcher had

to justify herself when approaching the company’s managers in order for them to

believe that the study was being carried out purely for academic purpose. And for

this the researcher had to get an introductory letter from the university to conform

and to inform them that the researcher is a bonfide of Kampala international

university pursuing a master degree in the institution and the study is for purposes of

fulfilling the partial requirement in completing the course. The university requested

the management of BAIL to assist the researcher by supplying the candidate with

the required information through the study.

3,7 Limitations to the study

There were very many limitations that the researcher encountered while carrying out

the study. Some of these being

1. Lack of cooperation from the respondents And since the study on motivation

involves direct contact through observation and interviewing employees it was

difficult for the researcher.

2. It was costly as the researcher has to travel to Ntinda to conduct the study and

with the hiking prices in transport it was expensive.

3. Respondents gave incorrect responses due to fear of supervisors.

26

CHAPTER FOUR

FINDINGS, INTERPRETATION AND ANALYSIS OF DATA

4.0 Overview of the chapterThis chapter presents the results of the study in relation to the study objectives

and research questions. Data was presented under different themes and sub

themes. This research was set out to examine the impact of motivation on

performance of employees and it was guided by three specific objectives

beginning with; the factors that motivate employees, the relationship between

motivation and performance of employees and the impact of motivation on the

performance of employees.

4,1 The factors that motivate employees

Table 1: Represents refreshments offered to employees

Variab~e Response Frequency Percentage %Refreshments Hiqhiv satisfied 1 4%

Unsure ____

SatisfiedDissatisfied

1211

48%44%

Source: Primary data; 2008

27

Refreshments

It was discovered during research that 48%of the respondents were satisfied with

the refreshments. The company offers them tea, and also provides them with a

discount on the lunch they have from the company’s canteen. This enhances the

satisfaction employees get from their workplace hence increasing their

performance. However,44% of the employees seem to be dissatisfied with the

refreshments offered to them. This could be due to the fact that only supervisors

are offered tea and other refreshments but not the employees yet they are

accountable for the daily production in the company. The company does not

provide lunch for its employees and therefore they have to go off the workplace

for some refreshments. This de-motivates them since they have to commute some

distance or else pay for the lunch from their salaries. They also find it difficult to

report in time after the breaks because of having to leave the company premises to

have lunch hence this lowers their performance.

“°‘~‘° ~‘°“° D Highly satisfied

D Satisfied

48% D Dissatisfied0 Unsure

28

Table 2: Represents sports facilities in place.

Variable Response Frequency PercentageSports facilities Highly satisfied 4 16%

Satisfied 15 60%Dissatisfied 3 12%Unsure 3 12%

25 I 100%

Source: information from questionnaires; 2008

Sports facilities

12%I’. IO~~_j~

16%

60%

Highly satisfied

~ Satisfied

Q Dissatisfied

Q Unsure

The findings in the table indicate that, 60% of the respondents are satisfied with

the sports facilities in place. The company offers football and also netball for its

employees. This is motivational to them since it relieves them of the stress at their

workplace and provides them an occasion for interaction among the employees.

This improves the performance of employees.

29

Table 3: Represents vacation/leave offers to employees

r~riabIe Response

Source: Primary data; 2008

vacation

Freauencv I

25 100%

8%16°/~

60%

16%Highly satisfied

Li SatisfiedLi DissatisfiedLi Unsure

From the table above it can be seen that, 60% of respondents are satisfied with the

leave/vacation they are offered. Vacations help the employees to relax as they are

away from the tedious routine of their jobs at the workplace. It helps one to be

more creative and innovative for the organization since employees come back

relaxed to resume their duties. Hence it adds to the competitive advantage of an

organization.

Percentage %

vacation Highly satisfied 4 16 % -

Satisfied 15 60%Dissatisfied 4 16%Unsure 2 8%

30

Table 4: Represents how employees are facilitated to perform their duties

Source: Primary data; 2008

facilitation

Frequency Percentage %

100%

AO/16%

64%

16%I] Highly satisfiedci SatisfiedO DissatisfiedO Unsure

It was discovered from the study that, 64% of the employees are satisfied with the

facilitation offered to them in the company. They are given the necessary data or

requirements such as computers, repair of machines to carryout their day-to-day

activities. This helps them to work effectively and efficiently. Employees are

motivated when management not only assigns them tasks to accomplish but also

checks how best they are facilitated to achieve it, thus they perform highly.

Variable Responsefacilitation Highly satisfied 4 16%

Satisfied 16 64%Dissatisfied 4 16%Unsure 1 4%

25

Table 5: Represents the company’s promotion procedure

Variable Response Frequency Percentage %Promotion Highly satisfied 1 4%

Satisfied 14 56%Dissatisfied 8 32%Unsure 2 8%

25 100%

Source: information from questionnaire; 2008

8% 4%

Promotion

The majority of the respondentsl4 which represents 56% are satisfied with the

procedure in place. The company promotes employees on the basis of either merit

or seniority. Employees are therefore satisfied because they state that they joined

the organization as casual workers on a daily wage basis and were then promoted

to permanent basis and later to supervisory level. This thus motivates them to be

32%O Highly satisfiedO SatisfiedO Dissatisfied

~0/ El Unsure

32

more committed to the organization and perform highly. However, 32% of the

respondents are dissatisfied because the promotion ends at the supervisory level

but does not go further though; some of the employees have the required

qualifications. This does not overrule the majority of the respondents who feel

motivated by the promotion procedure in place.

Table 6: Represents Appraisal system

Source: primary data; 2008

5%

Appraisal

14%

63%

Highly satisfiedo Satisfied0 DissatisfiedD Unsure

It was discovered during the study that, 56% of the respondents seem to be

satisfied with the appraisal system in the organization. This is because it is carried

out on a regular basis. Employees feel motivated as management evaluates their

Variable~Appraisal

ResponseHighly satisfied

Frequency3

Percentage

Unsure

12%

Satisfied 14 I 56%Dissatisfied 4 16%

4%I 100%

performance. They are able to get feedback on their performance and are able to

improve performance where necessary.

Table 7: Represents working condition in BAIL

[~riabIe Response Frequency Percentage %Working condition Highly satisfied 1 4%

Satisfied 12 48%Dissatisfied 11 44%Unsure 1 i 4%

25 1 100%

LI Highly satisfiedLI SatisfiedLI DissatisfiedLI Unsure

The findings in the table indicate that, 48% of the respondents are satisfied with

the working condition in place. This is because of the fact that there is team work

and interaction among the employees within the organization. This promotes

unity and cooperation among the employees. There is also easier task

accomplishment hence high performance. However 44% of the respondents are

Source: information form questionnaires; 2008

Working condition

4% 4%

44% 48%

34

dissatisfied with the working condition. Most of the de-motivated employees state

that they are made to work for long working hours and are under stress due to the

strict supervision

4.2 THE RELATIONShIP BETWEEN MOTiVATION AND PERFORMANCE

OF EMPLOYEES

Table 8: Represents management style exercised by the organization.

Source: information from questionnaires; 2008

Li Highly satisfied0 Satisfiedo Dissatisfied0 Unsure

The table shows 52% of the respondents are dissatisfied with the management

style exercised by the organization. This can be accounted to the bureaucratic

Variable~nagement style

I Response Frequency Percentage %I Hiahlv satisfied I 4%

rSatisfied 10 40%

• Dissatisfied 13 52%125

4%100%

Management st~e

4% 4%

40%

52%

style that is exercised by the organization. This tends to give the employees less

opportunity to voice their contributions. They feel imposed on and treated as mere

wage earners and not as partners in the production hence this de-motivates them

and lowers productivity.

Table 9: Represents training procedure in place.

Source: primary information; 2008

0% 8%

Training

60%

8%

Highly satisfiedo Satisfied0 Dissatisfied0 Unsure

From the table 60% respondents seem to be satisfied with the training procedure

in place. New employees get trained by their supervisors or fellow colleagues on

Training[~riabIe Response Frequency I Percentage %

HiqhIv satisfied 2

Unsure

Satisfled 15 60%Dissatisfied 6 32%

25 100%

36

how to go about their duties. Incase of a new programme implementation,

management brings experts from outside the organization to train supervisors who

later train subordinates in their span of control.

This motivates the employees and helps improve their performance through

enhancing quality.

Table 10: Represents payment system in BAIL

Source information from questionnaires; 2008

72%

4% 4%

Pay

25 100%

Highly satisfiedo SatisfiedEl DissatisfiedEl Unsure

It was discovered during research that 72% of the respondents are dissatisfied by

the pay system in the company. This is demotivating and causes labour turnover

or even poor performance due to the low level of morale among the employees.

Variable Response Frequency Percentage I

Pay Highly satisfied 1 4%Satisfied 5 20% I

Dissatisfied 18 72%

Unsure 1 4%

20%

Employees may perform their duties to fulfill the routine of the day but not to the

best of their ability, hence low productivity.

Table 11: Represents company’s overtime incentive scheme

Source; primary data; 2008

Over time

8% 16%

48%

O Highly satisfied0 Satisfied0 Dissatisfiedo Unsure

From the data collected 48% of the respondents are satisfied with the overtime

system since it helps to supplement their salaries. Overtime gives them an

opportunity to earn an extra sum on the basis of their individual effort. This

motivates employees to work for longer hours so as to get overtime at the same

time organization also benefit by the increase in production hence its able to

achieve its set targets.

Variable Response Frequency PercentageOver time Highly satisfied 4 16%

Satisfied 12 48%Dissatisfied 7 28%Unsure 2 8%

25 100%

38

Table 12: Represents bonus offered by the organization

Variable Response Frequency Percentage %Bonus Highly satisfied 2 8%

Satisfied 12 48%Dissatisfied 7 28%Unsure 4 16%

25 100%

o Highly satisfiedo Satisfied0 Dissatisfied0 Unsure

The findings in the table indicate 48% of the respondents are satisfied with the

bonus offered by the company. Bonuses are given to employees for meeting set

targets. The higher the performance the higher the profit and the higher the

percentage share given to employees. This motivates them to put in more efforts

for meeting set targets.

Source: information from questionnaire; 2008

Bonus

16% 8%

28% 48%

39

Table 13: Represents the communication flow within the organization

Variable Response Frequency Percentage %Communication Highly satisfied 1 4%

Satisfied 8 32%Dissatisfied 13 52%Unsure 3 12%

25 100%Source: primary data; 2008

Communication

12% 4%

32% D Highly satisfiedSatisfied

D DissatisfiedD Unsure

It was discovered during research that 52% of the respondents are dissatisfied

with the communication within the organization. This is due to the top-bottom

communication style. Employees complain of not being given opportunity to

freely communicate to top management. There is no forum for expressing their

views except through supervisors which some employees find quite

dissatisfactory. Employees also complain of the absence of face-to-face

communication but being imposed decisions of management on by use of notices

or supervisors. Many a times there is misunderstanding or miscommunication of

the message being passed on within the organization. This demoralizes the

employees hence lowering performance.

52%

40

4.3 THE IMPACT OF MOTIVATION ON TILE PERFORMANCE OF

EMPLOYEES

Table 14: Represents how employees find workplace motivating

Source: primary data; 2008

4% 4%2~

25

Work place

100%

Highly satisfiedEl Satisfied[1 DissatisfiedEl Unsure

Variable Response Frequency Percentage %Work pJace Highiy satisfied 1 4%

Satisfied 18 72%Dissatisfied 5 20%Unsure 1 4%

72%

The findings in the table show that 72% of the respondents seem to be satisfied

with the work place. This is due to the nature of interaction within the work place.

Employees work together in teams and this makes it interesting for them. It also

helps to relieve stress, meet deadlines due to work sharing and participation.

There is also high job satisfaction of the employees this leads to greater

performance.

Table 15: Represents delegation at the work place

Variable Response Frequency Percentage %Delegation Highly satisfied 3 12%

Satisfied 13 52%Dissatisfied 7 28%Unsure 2 8%

25 100%

Source: Primary data; 2008

Delegation

8% 12%

52%

o Highly satisfiedo Satisfied0 Dissatisfied0 Unsure

42

The results in the table indicate that 52% of the respondents seem to be satisfied

with the delegation at the workplace. Delegation gives them a sense of

empowerment and makes them feel in charge. This motivates employees to try

their best and fit into their roles, hence this helps in increasing efficiency and

effectiveness and thus improves performance of employees who are delegated. It

also helps the top managers to have more time to attend to other important issues

thus improving the overall performance of the organization.

Table 16: Represents how employees are recognized in BAIL

Variable Response Frequency Percentage %Recognition Highly satisfied 1 4%

Satisfied 14 56%Dissatisfied 9 36%Unsure 1 4%

25 100%

Source: primary data; 2008

4% 4%

Recognition

56%

Cl Highly satisfiedci SatisfiedCl DissatisfiedC Unsure

43

It was established during research that 56% of the respondents seem to be

satisfied with the recognition they receive from the management. Recognition is

manifested in awarding the employees a pay rise; giving them certificates; being

called upon to give management personal opinion win decision making. This one-

on-one interaction motivates employees hence improving performance.

However 36% of the respondents are dissatisfied with the recognition they

received in the organization. They complain of being too tied up with their work

and also having to work even on Sundays yet their efforts are not being

recognized through a pay rise. This demoralizes them to perform their duties to

the best of their ability.

Table 17: Represents team work in BAIL

Variable Response Frequency Percentage %Team work Highly satisfied 3 12%

Satisfied 18 72%Dissatisfied 2 8%Unsure 2 8%

25 I 100%

Source: primary data; 2008

8% ‘~‘°

Team work

72%

12%Highly satisfied

~J SatisfiedD DissatisfiedD Unsure

44

72% of the respondents as indicated in the above table are satisfied with the level

of team work in the organization. This is because it causes interaction among the

employees. They get to share their given goals and also share a sense of belonging

due to the friendships developed within their teams. New corners are also

absorbed in these teams and are made comfortable. Hence this motivates them to

pool their efforts in order to achieve greater output towards the set organizational

goals.

Table 18: Represents the level of autonomy

Source: primary data; 2008

Autonomy

25 100%

Highly satisfiedD SatisfiedD DissatisfiedU Unsure

Variable Response Frequency Percentage %Autonomy Highly satisfied 3 12%

Satisfied 8 32%Dissatisfied 13 52%Unsure 1 4%

4% 12%

52% 32%

45

52% of the respondents as indicated from the table above are dissatisfied with the

level of autonomy given to them. This is due to the stress and tension they have to

endure while performing their duties hence this dc-motivates them and lowers

their performance. 32% of the respondents are satisfied but this does not dominate

the fact that the majority of the respondents are dissatisfied.

Table 19: Represents grievance handling procedure

Variable Response Frequency Percentage %Grievance procedure Highly satisfied 3 12%

Satisfied 7 28%Dissatisfied 12 48%

I Unsure 3 12%25 100%

Source: primary data; 2008

Grievance procedure

LI Highly satisfiedSatisfied

Li Dissatisfied

Li Unsure

12% 12%

28%

48%

From the data collected 48% of the respondents are dissatisfied with the grievance

handling procedure that exists in the organization. Majority of those who are

46

dissatisfied complain of having been handled roughly by their supervisors. Some

even complain of the settlement of disputes favoring the employee who is close to

supervisor and this de-motivates employees Such grievances accumulate and

greatly have an adverse effect on the performance of employees.

47

CHAPTER FIVE

DISSCUSSIONS, CONCLUSION AND RECOMMENDATIONS

5.0 Overview of the chapter

In this chapter a summary of the findings is made. Conclusion drawn from the

themes and recommendations made where necessary.

5,1 Summaries of the findings

The study revealed a number of issues;

Motivational factors such as refreshments tend to favor the top and middle

managers than the low level of employees. According to Hertzbergs two factory

on which the study was based, refreshments fall under the category of Hygiene

factors which is an extrinsic factor. Hygiene factors refer to the general work

environment of the employee. The environment should be condusive for the

employee to effectively and peacefully perform their duties.If they are inadequate,

there will be dissatisfaction and work output will suffer. However at BAIL, since

refreshments tend to favour the top and middle managers than the low level of

employees This dc-motivates employees since it brings a sense of inequality yet

the shop floor employees perform most of the laborious tasks.

Poor pay was discovered to be one of the biggest de-motivators among the

employees. This is because they feel it is not equal to the amount of efforts they

put into the organization. After having worked for a whole month they still cannot

pay for rent, school fees, transport, food.

Money is also one of the hygiene factors and a factor, that helps to improve the

maintenance of employees which is the first step in the efforts directed towards

motivation. ‘Money also performs the function of a score card by which

48

employees assess the value the organization, places on their services, and by

which employees can compare their values to others.’(Asswathappa, 2001 pg 380)

Individuals work in order to get rewarded for the work they do. Companies often

provide wages and salaries to their employees in return for the work that they do

to help attain the organizational goal. The employee takes pay as the reward for

his/her work, and the employer views it as the price for using the services of the

employee.

Instrumentality expectancy theory captures an individual’s perception about the

relationship between effort and performance. Instrumentality, the second major

concept in expectancy theory is a person’s perception about the extent to which

performance at a certain level will result in attainment of outcomes. According to

expectancy theory employees will be motivated to perform at a high level only if

they think that high performance will lead to or is instrumental to attainment of

outcomes such as pay among others

Once an employee perceives that he/she is being rewarded or that his/her pay is

directly linked to his/ her performance, then he/she is likely to put in more efforts

in order to attain higher wages or approval from his/her immediate boss.

Communication system is inadequate. There is no forum for expressing

employees’ views. Communication is passed from top management to employees

through notices or though supervisors. Many a times this cause

misunderstandings. Employees also feel imposed on when mgt used such methods

such as notices.

Some of the employees are not aware of the motivational facilities such as sports

facilities, parties. Employees don’t properly utilize the facilities in place.

49

5.2 Conclusion

Employees of BAlL are motivated by the various motivational factors in place.

Employees are particularly motivated by the teamwork within the company. This

increases their job satisfaction as they get to interact with their colleagues.

It has been discovered from research that there is a significant relationship

between motivation and performance of employees at BAIL. Employees who are

motivated by overtime stated during the interview that they are willing to put in

more effort to get more wages whereas those that were de-motivated stated that

they merely come in order to fulfill the daily routine but are unwilling to put in

more effort since it will then be only of benefit to the company. This shows that

when motivation is high, performance is also high whereas when motivation is

low performance is also low.

It was found out during the study that motivation has a positive impact on

performance of employees at BAIL. Employees are more committed to the

organization and are willing to put in the best of their effort. This reduces the rate

of labour turn over and absenteeism and also improves industrial relation within

the organization.

5.3 RecommendationThe under listed are suggestion on how motivation of employees can be improved

Salary should be enhanced so as to meet employees’ cost of living. Additional

services such as transport, housing, canteens should be given to employees so that

they do not have to spend for these from their salary. This will not only help

employees to be motivated but will also improve the company’s image enhance

employees’ commitment, reduce labour turn over and curb absenteeism and also

improve the profits of the organization.

The company should put in place counseling so as to help employees who may be

facing problems or feel demoralized at work place. Employees who may not be

50

performing as expected can be referred for counseling so that their problems can

be addressed. This will not only help employees but also will improve

management image among employees and also in society.

The company should carry out performance appraisal such that employees can be

placed where they can perform to the best of their ability. Performance appraisal

can also help the organization to recruit internally such that capable employees

within the company are placed incase of a vacant post. This will not only motivate

the competent employees but also reduce the cost of having to recruit externally.

The company should cater for welfare of employees such that they are treated as

partners in production and not as mere wage earners, in today’s competitive

environment, human resources have been considered the key resource to

production. It is upon them to decide the future of the organization; therefore they

need to be treated with dignity.

The company should also ensure there is proper communication in place. It needs

to put up channels to enhance two way communications where the employees can

also communicate their views to top management. Management can also put in

place participatory management to know the views of the employees. This is good

in that it helps the management to also make use of the numerous ideas of the

employees and also it gives the employees a sense of belonging within the

organization.

51

REFERENCES

Aldag & Kuzuhara (20020 Organisational behavior and management, south western,

USA

Amin M E (2005) Social science research: conception, methodology, analysis; Kampala

Uganda

Armstrong M(2003), A handbook ofhuman resource management; 8th edition, kogan

page

Asswattappa K (2001), human resource andpersonnel management, ;2’~’ edition, tata

mcgraw hill, New Delhi

Bhambra A. S , Nature ofhuman resource management, efficient offset press, Delhi

Biddle D &, Evenden R (1989), Human aspects ofmanagement, 2~~d edition,

Chandan J S (2000) Management theory andpractice, vikas publishing house

Eugine T (2003), Principles ofhuman resource management, vrinda publications ~P) ltd

George J M & Charles S W L (2000) A guide to human resource management 2nd edition,

mcgraw hill.

Jones G R (2000), Contemporary management, 2~ edition, mcgraw hill

Lamberton Lowell & Evans leslie Minor,(2002) Human relations strategiesfor success,

2~’ edition, mcgrawhill, USA

Mejia G & Balkin (2002) ivlanagement, 21~c~ edition, McGraw hill

Memoria C.B and Granker S V, (2001) Personnel management, India, Himalaya

publishers

52

Monappa A & Saiyadain M S (2002) Personnel management, 2’~ edition, Tata McGraw

hill publishing co, ltd,

Pagare D (2000) Principles andfunctions ofmanagement, 7th edition, sultan chand and

sons

Pattanayak B & Verma H C (1997), Human resource management, wheeler publishing,

Pearce & Robinson,(2003), Formulation, implementation and control ofcompetitive

strategy, 8th edition, mcgrawhill

Prassad L M (2002) Principle andpractice ofmanagement, 7th edition, india, sultan

chand and sons publishers

Torrington D & Hall L (1998), Human resource management, 4th edition, prentice hall

Europe

Weihrich & Koontz ( 2001), Management; A global perspective, 10th edition, tata mcgraw

hill, India

William, et al(]995,), Business the american challenge for global competitoi~, irwin

Web sites

www. correll concepts.comJmotiVatiOfl-cTeate1Im0t1Vatb0~~

http :IIhouseofdawda~comJbritania_a11ied~html

www. answers. corn/topic/motivation

en.wikipedi& org/wiki/Motivation

53

Appendix A: Budget

BUDGET FOR THE STUDY

ITEMS COST

Typing and printing [ 108,000

Internet surfing 12,000

Transport to the company 70,000

Libraries study 14,000

Binding 30,000

Stationeries 10,000

TOTAL 244,000

54

APPENDIX C (I)

QUESTIONAIRE FOR TILE EMPLOYEES OF BRITANNIA ALLIED

INDUSTRIES LIMITED.

Dear respondent,

I am called Sheena Samuel, a student at Kampala International University. I am

conducting a research study on Motivation and employee performance in an organization;

A case study ofBritannia Allied Industries Limited.

This questionnaire is for collecting views about factors that help in motivating employees

at their workplace purposely to help in the research study.

The information required from you is specifically for academic purposes and will be

treated as confidential.

Thank you.

SECTION A: BACKGROUND INFORMATION

A. Age:___________

B. Sex: ~ Male ~j Female

C. Religion:___________

D. Martial status: EEl Married EEl Single

E. Number of children:______________

F. Educational Qualification:_____________

G. Salary per month:____________________

H. Are you a H full time employee

Part time employee

I. Responsibility you hold: ___________

56

SECTION B (Please tick where it is most suitable or applicable to you.)

A. 1) Does the organization provide you with LZI Break tea

EEl Lunch

Other refreshments; please

specify_______________________

2) How does this affect your morale? Are you: -

EEl Highly satisfied EEl satisfied El dissatisfied EEl unsure

B. Are you provided with these facilities? How do you find it?

Highly satisfactory satisfactory dissatisfactory unsure

1. Childcare facilities El El

2. Sports and other recreation EEl

3. Medical facilities EZI EEl

4. Accommodation EEl EEl

5. Vacations I leaves EEl [El [El [El

6. Maternity! paternity leave El [El [El [El

57

C. 1) Are you facilitated to do your day-to-day activities? (i.e. Provision of materials

required to do your work effectively e.g. provision of safety gear like gloves, gumboots

for those working near machinery and those maintaining cleanliness of the company

and for those dealing with clerical work:-maintenance of computers, provision of up-

to-date data and proper flow of information)

__ YES __INO

2) What is your opinion on the above facilitation that exists in the company?

El ElHighly satisfactory satisfactory dissatisfactory unsure

ft Does the company offer you the following? How does it affect your morale; Are

you

Highly satisfied satisfied dissatisfied unsure

I) Promotion El El El ElEl El El El

II) Retirement benefits

III) Welfare benefits El El El El

IV) Counseling El El El El

V) Regular performance appraisal El El

Ed) How do you personally find the working conditions within the company?

El Highly satisfactory El satisfactory El dissatisfactory El unsure

2) How do you find your job? Please give reasons for your answer.

58

SECTION C

A. 1) What management style does the company use?

‘~~Autocratic [~ top-to-bottom

j~ Bureaucratic LZJ participative

2) How do you find this style of management?

LZJ Highly satisfactory ~ satisfactory EZJ dissatisfactory j~j unsure

3) How does it affect your performance? (Ic does it improve or lower your performance)

Please explain why.

B. 1) Are you sent for training? E~ Yes

~No

2) How does this affect your morale? Do you find it: -

~ Highly satisfactory LZJ satisfactory LZI dissatisfactory ~ unsure

3) How does this (training offered) affect your performance?

C. 1) Are you satisfied with your pay~J Yes EEl No

59

2) How does this affect the way you perform? (I.e. are you willing to put in more

efforts or not) Please explain.

3) Is there provision of the following? How satisfactory do you find it?

Highly satisfactory satisfactory dissatisfactory unsure

Over time LZI EEl [El] EE]

Profit sharing EEl [El

Commission

Bonus LZI EEl

Discount for the company’s izi Ez

products

Rewarding using products

Like splash, Biscuits etc.

4) How do these provisions affect your performance?( does it improve your

performance or not; how/why?)

D. 1) Is there effective (up-to —date) communication from the top management to you

i.e. about any new change, developments or anything that is of interest to you?

EEl Yes no2) How does it affect your performance?

60

3) Is there any channel/forum for you to express your view or problem to top

management? ______________ (YES, NO)

4) If YES, how is it done? And how effective do you feel this is?

If NO what do you feel about it?

E.1)Is your job challenging (require a lot of skills)D YES

DNO

2) Explain how challenging it is or why you find it challenging.

3) How does this affect your performance? (i.e. does this help you perform highly or

not why?)

61

SECTiON 0

A. 1) Is your workplace interesting? Yes No

2) Please explain why you feel this way_____________________

B. 1) Is there effective delegation within the company?

LI ElNo Yes

2) How do you find this?

~ Highly satisfactory ~ satisfactory EZJ dissatisfactory EZJ unsure

3) How does it affect your performance? (Does it help you improve your performance

or not; why?)

B. 1) Have/are you recognized for ajob well done within the company?

EEl Yes No

2) If you were recognized, how was it done? And how did it affect your performance?

62

C. 1) Is there teamwork in your field of operation?

zi Yes No

2) How does this affect your morale? Do you find it:

LZi Highly satisfactory j~ satisfactory EZ dissatisfactory ~ unsure

3) How does it affect your performance?

D. 1) Are you free to do the job given to you the way you want it to be done?

~zi Yes ~No

2) How does it affect your morale?

LZI Highly satisfactory LZi satisfactory ~ dissatisfactory LEI unsure

3) How does it affect your performance?

E. 1) Incase of any disputes/problems that arise within your company {-between

employees, or between employee and the supervisor} how is it handled?

03

2) How does it affect your performance?

3) What is your opinion about this procedure? Le. do you find it: -

LZI Highly satisfactory ~ satisfactory ~ dissatisfactory LZ unsure

THANK YOU

64

APPENDIX D

Interview guideline for the employees of Britannia Allied Industries Limited

i) Age

ii) Educational qualification

iii) Responsibility held

iv) Facilities provided by the company

a) Refreshments

b) Transport

c) Refreshments

d) Promotion

e) Delegation

f)Good pay

v)What motivates this particular employee.

vi) Employees view of motivation in the company.

vii) Employees experience in as far as the motivating factors were administered.

viii) What he/she would recommend be put in place to motivate him/her.

65

APPENIMX E

CONTENT VALIDITY INDEX (Cvi) TEST

SECTION A

There was no need for CVI since it was just asking for the back ground

information of the respondent

SECTION B

CVI = Total number of Valid Questions relevant

Total number of question items

=7/8

=0.875

Total number ofValid Ouestions relevant

Total number of question items

= 14/16

= 0.875

SECTION D

CVI = Total number of Valid Ouestions relevant

Total number of question items

=13/14

SECTION C

CVI==

=0.93

,z,c~ ~0k

“I-~~

66