EFFECTS OF MOTIVATION ON EMPLOYEE

PERFORMANCE WITHIN THE BANKING INDUSTRY: A

CASE OF BANK OF AFRICA IN NAIROBI COUNTY

KENYA

BY

NAISA OMAR OSOGO

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2019

EFFECTS OF MOTIVATION ON EMPLOYEE

PERFORMANCE WITHIN THE BANKING INDUSTRY: A

CASE OF BANK OF AFRICA IN NAIROBI COUNTY

KENYA

BY

NAISA OMAR OSOGO

A Research Project Report Submitted to the Chandaria School of

Business in Partial Fulfilment of the Requirements for the Degree of

Master of Business of Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY-

AFRICA

SUMMER 2019

ii

STUDENT’S DECLARATION

I, the signatory, declare that this research is my authentic work and has not been conferred

for academic purpose in any other university other than the United States International

University - Africa in Nairobi for academic credit.

Signed: ________________________ Date: ________________________

Naisa Omar Osogo (ID NO: 653962)

This research project report has been conferred for examination with my consent as the

appointed supervisor.

Signed: ________________________ Date: ________________________

Prof. Caren Ouma (PhD)

Signed: ________________________ Date: ________________________

Dean, Chandaria School of Business

iii

COPYRIGHT

All rights reserved. No part of this project report may be photocopied, recorded or

otherwise reproduced, stored in retrieval system or transmitted in any electronic or

mechanical means without prior permission of USIU-A or the author.

Naisa Omar Osogo©2019

iv

ABSTRACT

The aim of this study was to examine the effect of motivation on the performance of

employees using the case of Bank of Africa, Nairobi. The study used the research questions

which included; how does job design affect employee performance? How do recognition

and reward programs affect performance? What is the effect of motivational goal setting

on performance of employees?

The study used descriptive research design. The population of this study comprised of 135

employees of Bank of Africa in Nairobi where the sample size of the study was 101

respondents. The data collecting instrument that was used is a tailor-made structured

questionnaire developed by the researcher, particularly for this study. The method that was

used to study the population is the simple random procedure. Descriptive statistics for

instance, frequency and percentages was utilized in analysing quantitative data by the use

of Statistical Package for the Social Science (version 25) as a data management and

statistical analysis tool. The use of inferential statistics was used in analysing and

explaining the extent between motivation and employee performance.

The findings of the study showed that 59% agreed that the bank uses non-monetary rewards

in motivating employees. Majority 96% of the respondents in the bank agreed that

employees in the bank are given allowances which boosts their productivity in work

performance. Correlation between recognition and employee performance showed positive

and significant relationship where (r = 0.685, p< 0.05).

The results of the study showed that 84% of the respondents agreed that job design of the

bank brings involvement, fulfilment and inspiration to the employees. The correlation

between job design and employee performance had a significant relationship (r = 0.778, p<

0.05) which also indicated that the variables had a strong positive correlation.

From the findings it indicated that 75% of the respondents were in agreement that

employees in the bank participate in goal setting, and further most of employees indicated

that the goals that are normally set by the bank are normally practical and achievable. The

results of correlation between job design and employee performance indicated that there

was significant relationship (r = 0.621, p< 0.05) which also indicated that the variables had

a strong positive correlation.

v

The study concluded that reward and recognition act as a motivation to the employees

within the bank. Secondly the study concludes that job design brings involvement,

fulfilment and inspiration to employees in working together, setting goals towards

performance of the bank. Lastly the study concludes by identifying that the bank has set

aside sufficient time spent setting goals for the employees to which ensures that each

employee has a clear understanding of the organization’s expectations for their success.

The study recommends that management should ensure that employees are rewarded for

their performance where it should be equitable, and performance linked. Management

should make use of the available rewards to achieve higher and greater levels of motivation

and employee performance.

The study recommends on the second research question that employees should be given an

opportunity to make their own decisions and exercise autonomy in their work as it makes

them feel valued in an organization. It will also benefit an organization by having

employees who are productive in the workplace, it improves employee morale, the

organization saves money by utilizing the talent of its employees other than sourcing for

talent externally and it also fosters teamwork.

Thirdly the study recommends that management of the bank should have the confidence

that their efforts to set goals, enhance, and engagement with the employees which will

result in improved performance. On further studies the study recommends the study should

be conducted within the whole banking industry to see the relationship between motivation

and how it affects employee performance.

vi

ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from

many people and I am extremely privileged to have got this all along the completion of my

project.

I wish to express my profound and genuine gratitude to Prof. Caren Ouma my honourable

research supervisor. The guidelines and instruction she provided me with was really

progressive and helped me a lot to complete this research work successfully. Whenever I

tried to contact her, she responded to my query very promptly which was really appreciated.

I would also like to thank all the research participants who were a great support and part of

this successful research work. Many thanks to the entire research department and the

faculty of Chandaria School of Business in United States International University-Africa.

Finally, I must express my very profound gratitude to my parents, siblings and friends for

providing me with unfailing support and continuous encouragement throughout my years

of study and through the process of researching and writing this thesis. This achievement

would not have been viable without them. Thank you.

DEDICATION

The project is dedicated to my father- Mr Omar Osogo, who taught me that the best kind

of knowledge to have is that which is learned for its own sake. Thank you for instilling in

vii

me the importance of education and the desire to continuously gain more knowledge. It is

also dedicated to my mother- Mrs Fatma Abdalla, who taught me that even the largest task

can be accomplished if it is done one step at a time. Her never-ending support and

encouragement throughout my life is a gift that I will never take for granted and I am

forever indebted to her. Finally, to my siblings Haikal and Hamzah may you continue to

pursue the best version of yourselves with unrelenting sparkle and patience.

TABLE OF CONTENTS

STUDENT’S DECLARATION ........................................................................................ ii

COPYRIGHT ................................................................................................................... iii

viii

ABSTRACT ....................................................................................................................... iv

ACKNOWLEDGEMENT ................................................................................................ vi

DEDICATION................................................................................................................... vi

TABLE OF CONTENTS ................................................................................................ vii

LIST OF TABLES ............................................................................................................. x

LIST OF FIGURES .......................................................................................................... xi

LIST OF ABBREVIATIONS AND ACROYNMS ....................................................... xii

CHAPTER ONE ................................................................................................................ 1

1.0 INTRODUCTION........................................................................................................ 1

1.1 Background of the Study ............................................................................................... 1

1.2 Statement of the Problem ............................................................................................... 7

1.3 Purpose of the Study ...................................................................................................... 9

1.4 Research Questions ........................................................................................................ 9

1.5 Significance of the Study ............................................................................................... 9

1.6 Scope of the Study ......................................................................................................... 9

1.7 Definition of Terms...................................................................................................... 10

1.8 Chapter Summary ........................................................................................................ 10

CHAPTER TWO ............................................................................................................. 11

2.0 LITERATURE REVIEW ......................................................................................... 11

2.1 Introduction .................................................................................................................. 11

2.2 Reward and Recognition and Employee Performance ................................................ 12

2.3 Job Design and Employee Performance ...................................................................... 19

2.4 Goal Setting and Employee Performance .................................................................... 23

ix

2.5 Chapter Summary ........................................................................................................ 27

CHAPTER THREE ......................................................................................................... 28

3.0 RESEARCH METHODOLOGY ............................................................................. 28

3.1 Introduction .................................................................................................................. 28

3.2 Research Design........................................................................................................... 28

3.3 Population and Sampling Design ................................................................................. 28

3.4 Data Collection Methods ............................................................................................. 31

3.5 Research Procedures .................................................................................................... 31

3.6 Data Analysis Methods ................................................................................................ 32

3.7 Chapter Summary ........................................................................................................ 33

CHAPTER FOUR ............................................................................................................ 33

4.0 RESULTS AND FINDINGS ..................................................................................... 33

4.1 Introduction .................................................................................................................. 33

4.2 General Information ..................................................................................................... 33

4.3 Reward and Recognition and Employee Performance ................................................ 37

4.4 Job Design and Employee Performance ...................................................................... 43

4.5 Goal Setting and Employee Performance .................................................................... 49

4.6 Chapter Summary ........................................................................................................ 55

CHAPTER FIVE ............................................................................................................. 55

5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ........................ 55

5.1 Introduction .................................................................................................................. 55

5.2 Summary ...................................................................................................................... 56

5.3 Discussion .................................................................................................................... 57

x

5.4 Conclusions .................................................................................................................. 65

5.5 Recommendations ........................................................................................................ 66

REFERENCES ................................................................................................................. 67

APPENDIX I: RESEARCH QUESTIONNAIRE ......................................................... 77

APENDIX II: CONSENT FORM .................................................................................. 81

APENDIX III: CONFIDENTIALITY AGREEMENT ................................................ 83

APENDIX IV: DEBRIFING FORM .............................................................................. 85

APPENDIX V: DATA COLLECTION LETTER ........................................................ 87

APPENDIX VI: INSTITUTIONAL REVIEW BOARD APPROVAL ...................... 88

APPENDIX VII: RESEARCH PERMIT NO. NACOSTI/P/1945295/31609 ............. 89

APPENDIX VIII: RESEARCH AUTHORIZATION .................................................. 90

LIST OF TABLES

Table 3.1: Population Distribution ..................................................................................... 29

Table 3.2: Sample Size Distribution .................................................................................. 31

Table 4.1: Correlation between Recognition and Employee Performance ........................ 42

xi

Table 4.2: Model Summary for Recognition and Reward ................................................. 42

Table 4.3: ANOVA for Recognition and Reward ............................................................. 42

Table 4.4: Coefficient analysis for Recognition and Reward ............................................ 43

Table 4.5: Employees Goal Setting ................................................................................... 43

Table 4.6: Employees Challenges ...................................................................................... 44

Table 4.7: Employee Training ........................................................................................... 44

Table 4.8: Goals Adjustment ............................................................................................. 45

Table 4.9: Challenging Goals ............................................................................................ 45

Table 4.10: Bank’s Goals ................................................................................................... 46

Table 4.11: Mentorship in Bank ........................................................................................ 46

Table 4.12: Performance of the Bank ................................................................................ 47

Table 4.13: Correlation between Job Design and Employee Performance ....................... 47

Table 4.14: Model Summary for Job Design ..................................................................... 48

Table 4.15: ANOVA between Job Design and Employee Performance ........................... 48

Table 4.16: Coefficient Analysis between Job Design and Employee Performance ......... 49

Table 4.17: Correlation between Job Design and Employee Performance ....................... 54

Table 4.18: Model Summary for Goal Setting................................................................... 54

Table 4.19: ANOVA between Goal Setting and Employee Performance ......................... 54

Table 4.20: Coefficient Analysis for Goal Setting ............................................................. 55

LIST OF FIGURES

Figure 4.1:Response Rate .................................................................................................. 34

Figure 4.2: Gender of Respondents ................................................................................... 35

Figure 4.3: Age of Respondents......................................................................................... 35

Figure 4.4: Working Experience ........................................................................................ 36

xii

Figure 4.5: Departments of the Bank ................................................................................. 37

Figure 4.6: Non-Monetary Rewards .................................................................................. 37

Figure 4.7: Recognition of Employees .............................................................................. 38

Figure 4.8: Employees Retentions ..................................................................................... 38

Figure 4.9: Reward System ................................................................................................ 39

Figure 4.10: Training and Development ............................................................................ 40

Figure 4.11: Wellness Benefit Program ............................................................................. 40

Figure 4.12: Employees Allowances ................................................................................. 41

Figure 4.13: Employees Productivity ................................................................................ 41

Figure 4.14: Job Design ..................................................................................................... 49

Figure 4.15: Bank involvement and Inspiration ................................................................ 50

Figure 4.16: Skills and Abilities ........................................................................................ 50

Figure 4.17: Job Rotation ................................................................................................... 51

Figure 4.18: Employees Work load ................................................................................... 52

Figure 4.19: Employees Responsibilities ........................................................................... 52

Figure 4.20: Tasks and Assignments ................................................................................. 53

Figure 4.21: Job Enrichment .............................................................................................. 53

LIST OF ABBREVIATIONS AND ACROYNMS

ANOVA Analysis of Variance

BOA Bank of Africa

HRM Human Resources Management

xiii

IRB Internal Review Board

NACOSTI National Council of Science, Technology and Innovation

NGOs Non-Governmental Organization

SPSS Statistical Packages for Social Sciences

US United States

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Many factors like capital, human resource and environmental factors influence

performance of organizations. Among these factors, human resource is seen as having the

most influence on the performance of organization (Mahamad & Saad, 2018). It is logical

therefore to argue that an organization needs to motivate its employees in order to achieve

its stated goals and objectives. Every employee in a company is always motivated in

different ways. Employee motivation describes how committed an employee is to his job,

how engaged he feels with the company's goals and how empowered he feels in his daily

work (Elton, 2017). The job of a manager in the workplace is to get things done through

employees and the management in the organization should motivate employees for better

performance (Nurun, Islam, Dip & Hossain 2017). In any case, that is simpler said than

done. Motivation is the most important matter for every organization public or a private

sector (Shahzadi, Javed, Pirzada, Nasreen & Khanam, 2014).

Stacho, Urbancová, and Stachová (2013) did a research in organisational arrangement of

human resources management in organisations operating in Slovakia and Czech Republic

and found that motivating employees is a challenge and keeping employees motivated is

an even greater challenge. Today, organizations are under intense pressure to identify and

implement programs that will prove effective in improving employee productivity (Deci,

2013). It is no longer enough to increase salaries and expect increased performance; it is

more complex than that (George & Jones, 2013).

Employee motivation affects productivity and a poorly motivated labour force will be

costly to the organization in terms of lower productivity and performance, excessive staff

turnover, increased expenses, frequent absenteeism and a negative effect on the morale of

colleagues (Elton, 2017). It is a well-known fact that the success of an organization largely

depends on the quality of its human resource, irrespective of the industry within which it

operates (Deci, 2013). It is with this in mind that leaders and managers must strive to ensure

that their workforce is motivated and therefore productive. Motivation is seen as one of the

most important factors in issues related to human resources management (HRM) and

organizational behaviour management (Nelson & Quick, 2013).

2

Motivating employees for better performance encompass these critical factors: employee

engagement, organizational vision and values, management acknowledgment and

appreciation of work well done, and overall authenticity of leadership (Siayeli, 2017).

Theories of job performance offer that motivation is a key determinant of performance. The

role of motivation in the work context has been studied to understand what causes

employees to work hard, to do well, or more specifically what causes the arousal, direction,

and persistence of voluntary actions that are goal directed. It is therefore imperative that

managers understand what motivates employees and also how to motivate them effectively

(Deci, 2013).

There have been numerous researches done on motivation and employee performance.

Nelson and Quick (2013) note that although many executives in many organisations still

value the old and traditional motivation theories like Maslow’s, there are other executives

who prefer to make use of new motivational ideas to motivate their employees. The authors

posit that in the past decade, there are two new ideas that have emerged in motivation: one

idea is from the positive organisational behaviour and is centered on eustress (healthy,

normal stress), strength (having courage, principled action, and being emotionally positive

at work), and hope where employees see opportunities, challenges and generally feel

energized by their daily experience at work. The other idea according to the authors

suggests that people (employees) are not necessarily activated by their unmet needs but are

activated by their spiritual, physical, mental and emotional energy. This new idea aims at

developing corporate athletes and the manager’s task therefore is to help individual

employees in learning how to manage their energy for periodical renewal and eventually

build capacity for work through this positive energy, even in the face of increased work

demands.

Issues of employee motivation and performance are a worldwide phenomenon that has been

studied all over the world. For instance in Germany, Klauser (2016) study sought to

examine how far public employees and public servants exhibited the different levels of job

satisfaction and to what extent the differences was determined by intrinsic and extrinsic

motivation factors. The results revealed the lack of relationship between the employment

status and the dimensions of autonomous and regulated work motivation as a whole due to

the lack of statistically significant results.

Tucle (2016) conducted a study determining the impact of training and development

programs on motivation of employees in banking sector in Kayseri region in Turkey. The

3

results showed that training and development programs did have a positive impact on

motivation of employees in banking sector. Results of the study concluded that banks,

having good training and development programs for employees can enhance employee

motivation. This current study thus seeks to establish if the same applies to the banking

industry in Kenya.

Bao and Nizam (2015) investigated the impact of motivation on performance of the

employees. Independent variables used to gauge motivation levels included training and

development, reward and recognition and delegation of authority. The study was

undertaken among employees from electronic manufacturing company in china and used

simple random probability sampling technique. It was established that indeed training and

development, reward and recognition, and delegation of authority significantly impacted

on performance of employee.

Ghaffari, Shah, Burgoyne, Nazri and Salle (2017) also did a study to determine the

relationship between motivation and job performance, and also to identify the most

dominant motivational factor that influences an employee’s job performance. The

researchers tried to explain the impact of motivation on job performance, through

conducting the study in University Teknologi Malaysia. The analysis showed that the most

significant motivational factor for job performance was responsibility, while fringe benefits

is the second significant factor. It was also revealed that human capital management can

use diverse plans or factors to simulate workers, although the different motivational factors

had varied motivational influences on different employees. It was therefore concluded that

human capital management should entail a comprehensive plan that considers employees

values, needs, tasks, and satisfaction levels in terms of increasing job performance and

productivity.

To study the impact of motivation on the performance of employees in Ramchandrapur

High School in Bangladesh. Mohammed (2016) study undertook a critical review of the

literature and the quantitative analysis of the survey data pointed that both extrinsic and

intrinsic motivation factor play an important role in motivating employees. The study

revealed that salary was the greatest motivation factor among extrinsic and intrinsic

motivation factor like job security, advancement in career, the good relationship among co-

worker, achievement sense, training and development and sense of recognition. The study

further revealed that level of motivation among the employee of the Ramchandrapur High

School was low as compared to the expectation of employees.

4

Abusharbeh and Nazzal (2018) examined the impact of motivation on employee

performance in Palestinian banking industry. The survey data was collected through

distributing a questionnaire to employees’ that working in Palestinian commercial banks.

It was established that moral motives significantly and positively predicted employee’s

performance. Moreover, the scholars also established that a high level of motivation was

provided to employees’ that working in Palestinian commercial banks. However, the

material and social incentives do not predict employee’s performance. On other side, the

paper found that there were differences between the levels of motivation when it comes to

the demographic data like qualifications, years of experiences, and job title. The study thus

recommended that Palestinian banks needs to adapt and develop their motivation system in

order to satisfy all employees' moral needs.

Closer to home, a number of studies have also been done to establish the effect of employee

motivation on organization performance. For instance, in Ghana Masud and Veronica

(2015) study sought to examine the impact of employee motivation on organizational

performance in the financial sector in Ghana. Findings from the study suggested that

leadership opportunities, recognition and employee appraisal, meeting employee

expectations and socialization are the key factors that motivate employees. The findings

further revealed that managerial standards, motivation, commitment, employee

evaluations, positive work environment, technology, lack of incentives, comfort level and

poor management are factors that affect employees’ performance. Further, the study

established that the impact of motivation on organizational performance improves

employees’ level of efficiency, help employees to meet their personal goals, employee

satisfaction and helping employees’ bond with the organization.

Mara and Muiruri (2016) sought to find the link between reward systems and desired

performance among managers in South Africa. It was found that employees still prefer

extrinsic rewards and are keen to advance their careers. Employers understand this and

normally reward employees in the same manner. It was however established that many of

the people interviewed were dissatisfied in the workplace, thus further research was

recommended in order to shed more light on employee happiness as an intrinsic reward and

the abilities of transcendental, rather than transactional leaders to deliver it.

A similar study done in Nigeria, Alalade and Ogantundu (2015) investigated the place of

motivation on employee performance in the Nigerian Banking Industry. The study was

5

conducted in the area of Lagos Island, Nigeria and population consisted of 5 selected banks

in that location. Based on the finding, the study revealed that employees are “often”

motivated and the status of performance of the firms involved was excellent. The main

finding of the study clearly evidenced that motivation has an effect on employee

performance. The study thus recommended that banks should consider the use of incentives

and other motivational strategies for better performance. On the basis of these findings, it

was concluded that employers are continually challenged to develop pay policies and

procedures that will enable them to attract, motivate, retain and satisfy their employees.

In a similar study done in Rwanda, Uwineza and Muturi (2015) study sought to determine

the effects of extrinsic rewards on employee performance in public institutions in Rwanda,

with specific focus on Rwanda Revenue Authority. Specific objectives for the study sought

to assess the effects of employee training, promotions, and recognition on employee

performance in Rwanda Revenue Authority. It was revealed that 99.1% majority of the

respondents agreed that training increases the employee performance, while all respondents

agreed that promotion improves both competence and commitment of employees. An

ANOVA analysis done also established a significant relationship between employee

training, promotion, recognition and employee performance. Based on these findings the

study concluded that extrinsic rewards influence employees’ performance in Rwanda.

Though not done in the banking sector, Nabulya (2018) sought to establish the effect of

motivation and performance in public pharmaceutical sector in Uganda. To achieve its

objective the study was focused on examining how recognition and rewards, staff training

and career development as well as provision of continuous feedback promotes employee

performance in National Medical Stores. The results show that there was a strong and

positive relationship between motivation and employee performance in National Medical

Stores. The study finding revealed that motivation improves performance and use of proper

recognition and reward system, effective staff training and career development, providing

continuous feedback were all factors that enhanced employee performance in National

Medical Stores.

In Tanzania, Bugaza (2013) study sought to assess the impact of employee motivation on

job performance in Tanzania banking sector. A qualitative case study methodology was

used to interview key informants as well as questionnaires were distributed to the sample

of 100 respondents from Tanzania Postal Bank Metropolitan branch and head office. The

6

findings indicated that salary increment, promotion and recognition were important

motivational factors for employees of Tanzania Postal Bank. Majority of respondents

considered money as what they worked for. The study observed that Tanzania Postal Bank

does not offer any kind of housing loan scheme to its employees as well as customers since

itself is a financial institution. The study recommended that managers and supervisors

should avoid being bias when measuring the employee’s job performance.

Locally, Omollo (2015) undertook a study sought to assess the effect that motivation had

on the job of workers of the Kenya Commercial Bank in Migori County. The study also

focused on the demotivating factors like delay of promotion, no clear career progression,

unreasonable load, long working hours and lack of appreciation from the managers. The

study employed the use of self-administered questionnaire to collect the required primary

data. The results concluded that managers should know that employees are motivated by

monetary rewards. It was therefore recommended that there is a need for managers to have

a comprehensive motivation scheme in all aspects of an organization as this was directly

proportional to the output of the employees. The study was however only focused on Kenya

Commercial Bank.

Employees in the organization are satisfied it will make them do more work (Ahmad,

2019). According to the Central bank of Kenya (2016), there are forty-two commercial

banks and one mortgage financial organisation. Bank of Africa itself has 30 branches all

over Kenya. As the number of banks continues to increase, so are the challenges. Some of

the main challenges facing the industry are associated with internal human resource

management factors while others are external. The challenges in general include human

resource management issues, technological and security risks (Muthini, 2013), regulatory

environment and economic meltdown, among others. Amidst these issues, motivation of

the workforce in the banking industry remains the most fundamental component for optimal

performance of the industry (Mukhalasie, 2014). However, the extent to which human

resource issues have been managed for improved productivity appears to be unclear.

This study examines the effect of motivation on the employee in Bank of Africa in Nairobi.

Bank of Africa (BOA) is a major Pan African bank with operations in more than a dozen

countries on the continent. It is part of the BOA Group that operates in 18 countries

including 17 in Africa (Kiganda, 2017). The Bank opened two Business Centres in Nairobi

and Mombasa to cater for enterprise clients (Bank of Africa, 2018). The Business Centre

7

in Nairobi is located at BOA House, Karuna Close, Off Waiyaki Way, Westlands and the

one in Mombasa is located in the Palli House on Nyerere Avenue (Bank of Africa, 2018).

The Bank has designed Products and services to meet the demands of different types of

customers, like the pay as you go accounts, cool kids accounts, salary account, and so on

(Bank of Africa, 2018).

Having good products alone is not enough to attract more customers to join and transact

with the bank unless skilled and motivated human resource is available (Buguza, 2013).

Bank of Africa is committed to have skilled and motivated staff in order to attain its

objectives. The banking industry has different departments where each and every

department has a way of supporting each other. The remuneration packages are different

for individuals in every department. The employee’s salary in the banking industry can

either commission based (for the sales agents) while the rest are on a monthly salary.

1.2 Statement of the Problem

The need to increase productivity and efficiency in the workplace or any organization has

led to increasing academic interest in the area of motivation over the years. Scholars have

been keenly interested in knowing what factors are responsible for stimulating the will to

work. Thus, motivation has become an issue of concern for both scholars and practitioners

of personnel management. From productivity and profitability to recruiting and retention,

hardworking and happy employees lead to harmony and organizational triumph (Ryan &

Edward 2012).

Some organizations have been known to experience a high staff turnover despite offering

above average salaries (Aguinis, 2012). This clearly shows us that salaries and bonuses is

not the only way that an organisation can motivate employees. Moreover, different

individuals in the working force are motivated by different determinants. It is important for

leaders in any organisations be it managers or even supervisors to get to know what

motivates different employees, and not think that a one-size-fits-all approach (George &

Jones, 2013).

An organization is only as strong as its workforce. The Human resources department need

to be treated properly, since they are a special resource that needs to be given special

managerial attention and time (Storey, 2013). Therefore, studies like this are an invaluable

resource in helping organizations identify and maximize on ways to motivate employees

8

whilst mitigating employee turnover and under-performance (Steers & Porter, 2011).

Banks take initiative to motivate its employees in order to maintain strategic plan of

financial performance growth, staff talent and skills (Buguza, 2013). Research shows that

in different states employees who are committed to their job and the organisations they

work for are very few in number. In many cases there have been observations that have

been made that not all employees who are satisfied by their work are good performers

which may be due to lack of motivation and commitment for the organisation (Buguza,

2013).

There are very minimal occurrences of commercial disorder in banks that tend to motivate

their workers (Kinoti, 2012). The confidence of the employee is positive, and the company

realises rise in sales. This tends to reduce complaints from employees and thus a need for

the impact of motivation on employee performance because motivated individuals will

have heightened stamina to work therefore increase in productivity to the bank (Nurun,

Islam, Dip, Hossain, & Al., 2017). In organizations where employees are motivated, there

are very low incidences of industrial unrests, the morale of the employees is high, and the

organization realizes increased profit margins and the cost of production by the

organization is reduced since no resources are used unnecessarily to arbitrate on industrial

related complaints (Nurun et al, 2017).

From the previous studies conducted in Kenya, Omollo (2015) indicated that there is a

direct relationship between motivation and employees’ productivity in the Kenyan Banking

Industry. Ibrahim (2017) also found that monetary rewards, job enrichment have significant

and positive effects on staff performance while training have strong negative and highly

insignificant correlation on employee performance. Bank of Africa employees are

motivated where they are given the guidance on, they should do their job tasks, given

direction, resources and rewards this makes them fill inspired and keen to their work.

Motivated employees are more likely to stay and help build your business. Retaining

motivated staff builds your business and also reduces the cost of recruitment and training.

However, the question that has not been answered is, “How will banks push all staff that

exist within the banking sector in order that sensible performance and also the bank targets

will be accomplished?” so, the known gap has to be filled, and so the necessity for this

study to look at the impact of motivation on the performance of staff of Bank of Africa.

9

1.3 Purpose of the Study

The purpose of this study was to determine the effect of motivation on employee

performance within Bank of Africa, Nairobi County in Kenya.

1.4 Research Questions

1.4.1 How does recognition and reward programs affect the performance of employees

within Bank of Africa?

1.4.2 How does job design affect the performance of employees within Bank of Africa?

1.4.3 How does goal setting affect employee performance within Bank of Africa?

1.5 Significance of the Study

1.5.1 Management of Bank of Africa

The study is of benefit to the management team of the Bank of Africa and further improve

programs that can motivate their employees and improve their performance. The results of

the study will give more insights on the best motivating factors to the employees of bank.

1.5.3 Prospective Employees

The study provides a comparative account of the pros and cons of internal performance of

employees because of the employee welfare activities of the banking sector, which help to

retain prospective employees in the banking sector.

1.5.3 Contribution to Researchers

The finding of this research is beneficial to individuals who may wish to conduct a research

in the future. It also helps future scholars who will endeavour to undertake a study on

motivation and performance.

1.6 Scope of the Study

The research was conducted at the Bank of Africa branch in Nairobi and focused on Bank

of Africa employees working in different departments i.e. marketing, legal, administration,

back office and human resource. Most theories of motivation and employee performance

concepts were considered. The data was collected from the month of March 2019 to April

2019. The study focused on the various motivational packages for the staff of Bank of

Africa and how it influences their performance.

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1.7 Definition of Terms

1.7.1 Motivation

Motivation is the word derived from the word ’motive’ which means needs, desires, wants

or drives within the individuals. It is the process of stimulating people to actions to

accomplish the goals. Motivation is a psychological phenomenon which means needs and

wants of the individuals have to be tackled by framing an incentive plan (Gomez-Mejia,

Balkin & Cardy, 2015).

1.7.2 Performance

Performance is defined as an ongoing process of communication between a supervisor and

a staff that occurs in support of accomplishing the strategic objectives of the organisation

(Cole & Kelly, 2011).

1.7.3 Goal Setting

Goal setting is the process of deciding what you want to accomplish and devising a plan to

achieve the result you desire (Ward, 2018).

1.7.4 Job Design

Job Design is to decide the contents of a job. It fixes the duties and responsibilities of the

job the methods of doing the job and the relationships between the job holders (manager)

and his superiors, subordinates and colleagues (Akrani, 2011).

1.8 Chapter Summary

This chapter gives an overview of motivation theories and how they affect employee

performance. A brief background of the organization being studied is also given. Chapter

one highlighted the background of the study in which the problem was stated from a global,

regional and national level, the statement of the problem, the aim of the study, the research

questions, and also importance of the study to different stakeholders within the banking

industry, the scope of the study and definition of terms. In chapter two, the researcher

reviewed literature based on aspects that influence employee motivation and its impact on

performance with chapter three looked at the research methodology adopted. Chapter four

provides the study’s results and findings outlined in terms of descriptive and regression

results based on the research questions. Chapter five describes the summary of the findings,

conclusions and recommendations.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter presents the analysis of relevant research literature to analyse the effect of

motivation on employee performance. The chapter discusses in detail on how recognition

and reward programs affect the performance of employees in the banking industry, how

job design affects the performance of employees, how does goal setting affect employee

performance, and lastly the chapter summary.

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2.2 Reward and Recognition and Employee Performance

The type of reward practices used by an organization plays an important role in motivating

employees to perform (Beer & Walton, 2014). Employee recognition is not just a nice thing

to do for people. Employee recognition is a communication tool that reinforces and rewards

the most important outcomes that people create for your business (Heathfield, 2017). Based

on decades of raesearch on operant conditioning and behaviour modification, it is

commonly believed that if rewards are used effectively, they can motivate individuals to

perform at higher levels, and the use of proper rewards culminates in firm performance at

the organizational level.

Reward and recognition is an essential part of any human resource programme. It is also

important that the rewards offered are significant. Cash benefits alone are not special

enough. Nobody would say that an extra boost to the monthly pay packet is not welcome,

but when it’s likely to be swallowed up by day to day expenses it stops being ‘special’.

Paying off the mortgage is all very well, but it is hardly likely to linger in the memory when

compared to the excitement of taking the whole family for a fun day out (Stead, 2017).

2.2.1 Pay and Employee performance

Attractive Salaries or pays are also a Valuable tool and play an important role to increase

employee’s performance and also increase the productivity of an organization (Muogbo,

2013). Pay can be arranged into two sections, a fixed pay, and performance linked pay. A

fixed pay can be depicted for the most part as the measure of cash given to an employee

irrespective of the execution and is relied upon to accomplish the absolute minimum

necessity and regardless of whether the business is a super achiever no extra rewards will

be given (Sefrin,2016). Organizations can likewise offer increases in salary for achieving

certain production levels, finishing preparing programs or for remaining with the

organization for a specific timeframe. These raises can help inspire workers to enhance

their execution levels and aptitudes.

2.2.2 Incentives

Incentives are concepts of material and moral values and they are also a central point for

different activities in the modern institutions and work environments. Concrete incentives

are called direct compensation systems such as salaries, rates and bonuses (Sherrie, 2018).

On the other hand, moral incentives are called indirect compensation systems such as the

stability of the work, participating in decision-making, commitment, pertinence, promotion

13

and appreciating the employees' performance by thanking them. This shows that incentives

are the consideration of excellent performance, which could be in the quality, quantity or

abundance in the work's time or even in the costs. Rewards and incentives are considered

one of the most important factors that encourage workers to put forth great efforts and work

more efficiently. It is because incentives and reward system direct workers capabilities into

more efficiency in their work in an attempt to achieve the institution's goals (Sherrie, 2018).

The absence of the suitable incentives may negatively affect the hardworking employee's

performance; it may also weaken their productivity at work which decreases the chances

of attaining the promising goals of the institution. A study was conducted by Abbas and

Hammadi (2013) entitled as incentives and their effect on the performance aimed at

identifying the incentive system and its role in enhancing the performance of employees at

the Yemeni Oil Exploration Commission. The study showed a poor participation by the

employees in decision making; in addition to this, the majority of employees complained

about the lack of concrete incentives, such as rewards and rate.

Monetary incentive reward employees for execution and profitability through cash. These

motivators incorporate staff investment opportunities, benefit sharing plans, paid time off,

rewards and money grants. Extra financial incentives incorporate yearly or semi-yearly

rewards, for example, mid-year and end-of-year rewards. These motivating forces support

inviting challenge between partners when connected to work execution. Financial prizes

propel workers to deliver ideally (Sherrie, 2018). Non-monetary incentives remunerate

worker execution through advantages and openings. These rewards incorporate adaptable

work hours, preparing openings and the capacity to work freely. The rewards and incentives

are significant to a staff member since they enable labourers to adapt new skills and seek

better opportunities (Sherrie, 2018).

2.2.3 Recognition

Recognizing employees is defined as “constructive act of appreciation for a person’s

contribution, in terms of both work practices and personal investment”. Basically, it means

appreciating the employee’s performance or commitment in some way, that the employee

knows his or her value. In order to maximize the results of recognition, it should be given

systematically both officially and casually (Saijanen, 2017). Recognition is taken into

account as a kind of reward, and it very well may be viewed as a non-financial reward. It

is a tool to extend staffs’ performance by empowering them, and therefore inspire them. In

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light of archives from various institutions, high pay does not fulfil workers the same way

as compliments and recognition. Financial rewards motivate workers in short term;

however, the non-financial rewards have an effect on a long term.

Haider, Rasli, Akhtar, Bin, Yusoff, Malik, and Tariq (2015) stated that recognition is a

financially savvy tool to motivate workers and in this way, improve their work

performance. In light of a research considering the recognition in teams, it was discovered

that the recognition causes a critical increment in job performance, and it works best solely,

but not too solely. For example, in case of a team of eight employees, praising top three

members leads to the strongest increase in performance, compared to recognizing everyone,

or the best one. However, it was also found out, that praising every member of a team

increased their performance (Bradler, Dur, Neckermann & Non 2016).

Based on different researches, there have been identified four different ways to recognise

employees: Recognise the employees’ value, recognise the quality of their work, recognise

investment in work, and recognise their results. Recognising employees’ value refers to

paying attention to their skills and qualities, when recognising the quality of their work is

based more on their actions. Even when the results are not satisfying, employees might

have put a lot effort to it, and that is when one should recognize the employees’ investment

in work. Lastly, recognizing employees’ results is primarily about their contributions to

strategic goals and achieving them (Saijanen, 2017).

2.2.4 Allowances

Allowances are considered being a very crucial factor to employee motivation. Many forms

of allowances such cash allowance, travel allowance, overtime allowance, and generally

individual bonuses are all considered to be an important and significant factor to motivate

and retain employees (Aamir, Raheed & Malik 2012). Armstrong (2012) recommended

that the distinction amongst recompense and pay is that remittance can be a compensation

for extra minutes or possibly change towards expanded average cost for basic items, while

the compensation is the rate that could be hourly, month to month, or yearly. Allowances

are a significant element of financial rewards for employee motivation as it boosts the

employee’s morale and also a feeling of belongingness as employees will live their lives

with stability and dignity (Yousaf, Latif, Aslam & Saddiqui 2014).

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2.2.5 Compensation

Organizations which involve innovative strategies to motivate their employees are the ones

generally recognizing the importance of employee motivation for more productivity and

target achievement (Mwangi, 2014). Remuneration can be alluded as the bundle of

quantifiable prizes got for the endeavours put in by the worker and is otherwise called

benefits (Gomez et al, 2015). Pay is the key driver of inspiration as people normally have

a tendency to perform better when they see something consequently will be gotten for their

endeavours (Mwangi, 2014).

2.2.6 Motivation

Along with perception, personality, attitude and learning, motivation is an important part

of understanding behaviour. Motivation is a process that starts with a physiological

deficiency or need that activates a behaviour or drive that is aimed at a goal incentive

(Nurun et al, 2017). Worker inspiration influences profitability, and part of a business

director's activity is to channel subordinates' inspiration towards the achievement of the

association's vision or objectives (Elvina & Chao, 2019). Motivated workers improve an

institution’s profitability and its upper hand. They are extremely engaged, can all the more

likely handle the unease that accompanies vulnerability, for the most part improve problem

solvers, and are increasingly inventive, imaginative, and lien centred. Institutions with

exceptional energetic staff, notwithstanding being increasingly profitable, report having

higher levels of consumer loyalty and staff retention (Murphy, 2015).

Inspiration is vital to any exchange of work lead since it is believed that it has a quick

interface to incredible work execution; it is expected that the propelled labourer is the

profitable specialist (Riggio, 2014). Not everyone is motivated by the same rewards, and

sales managers must work towards tailoring the motivational environment to the individual,

within the boundaries and policies of the company. Motivation and learning theories

recommend that compensation ought to be based on performance (Georges & Jones, 2013).

Notwithstanding, having profoundly energetic employees does not consequently prompt

elevated amounts of efficiency, the work dynamic is more perplexing than that (Riggio,

2014). Hence, a supervisor must approach an efficiency issue precisely a nitty gritty

evaluation of every single other variable that can influence profitability should first be

embraced (Aguinis, 2012).

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The adoption of a performance management system can be seen as an attempt to integrate

HRM processes with strategy (Cole & Kelly, 2011). Evaluations are utilized to guarantee

a person's execution is adding to business objectives and supervisors are urged to join the

points of view of a few models to make an entire motivational condition for their workers

(Riggio, 2014). There have been numerous researches done on motivation and employee

performance. Many scholars have postulated theories to try and understand what

motivation is, and how it affects individuals (Fincham & Rhodes, 2015).

People have capacity for innovation in solving problems (Nurun et al, 2017). Motivators

are things that lead employees to be fulfilled and persuaded by their occupations and need

to do with work content, they are inborn in the work itself: Their quality outcomes in work

fulfilment and inspiration, however their nonappearance comes about just in non-

partisanship (Levy, 2013). Sparks incorporate characteristic factors, for example,

plausibility for advancement, requesting work, acknowledgment, accomplishment and

obligation (Stanley, 2012). Motivator factors operate only to increase job satisfaction

(Hansen, Smith & Hansen, 2012).

Hygiene factors are related to the context in which people perform their jobs e.g.

supervisory problems, interpersonal relations, low salary, administrative practices, poor

working conditions and unfavourable company policies. The presence of hygiene leads to

job discontent; however their absence leads not to job satisfaction or motivation- solely to

biasness (Chung, 2013). Hygiene factors, also called dissatisfies, operate only to decrease

job satisfaction or create job dissatisfaction (Hansen et al, 2012). The reverse of job

satisfaction is not job dissatisfaction but instead, lack of job satisfaction; and similarly, the

reverse of dissatisfaction is not job satisfaction, but lack of job dissatisfaction (Waiyaki,

2017).

Fredrick Herzberg built up a hypothesis of Motivation that featured the part of employment

fulfilment in deciding labourer inspiration (Riggio, 2014). He recommended that the

determinants of occupation fulfilment were not quite the same as those of employment

disappointment. The variables offering ascend to fulfilment were called helpers (e.g.

acknowledgment, duty and accomplishment), while those offering ascend to

disappointment were called cleanliness factors (e.g. compensation, organization approach

and working conditions) (Cole & Kelly, 2011). Another significant theory was developed

by Abraham Maslow and is known as the hierarchy of needs (Riggio, 2014). At the core of

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Maslow’s theory is a hierarchy of five categories. They are psychological, security, social,

esteem and self-actualization needs (Kreitner & Kinicki, 2016).

2.2.6.1 Physiological Needs

Psychological needs are basic needs that are required for human survival. Air, food and

water are metabolic requirements for survival for all humans. An individual to satisfy these

psychological needs is way better than the drive to satisfy any other type of need. These

needs are satisfied through the wages and salaries paid by a company (Buguza, 2013).

Chintalloo and Mahadeo (2013) additionally clarify physiological requirements. As

indicated by them physiological needs fundamentally are fulfilled the essential need of

human. Physiological necessities or fundamental needs likewise called natural needs.

Maslow said when a man satisfies the fundamental, physiological or organic needs him

climb the following level. For instance: nourishment, shield, garments, resting and

breathing and so on. These are the essential needs of a person which incorporates

sustenance, garments, shield, air, water, and so on. These necessities identify with the

survival and upkeep of human life.

2.2.6.2 Safety and Social Needs

When all the physiological needs are met and are no longer controlling thoughts and

behaviours, the needs for security can become active (Nyameh, 2013). Safety needs is the

need for security, away from any harm and protection (Nurun et al, 2017). In the absence

of physical safety due to war, natural disaster, family violence, childhood abuse, etc. people

may experience post-traumatic stress disorder or trans-generational trauma. In the absence

of economic safety due to economic crisis and lack of work opportunities these safety needs

manifest themselves in ways such as a preference for job security, grievance procedures for

protecting the individual from unilateral authority, savings accounts, insurance policies,

reasonable disability accommodations, etc.

Safety and Security needs include; personal security, financial security, Health and well-

being, Safety net against accidents (Buguza, 2017). Following safety, the feeling of love

creates a strong middle component of the pyramid. Even independent individuals crave the

feeling of love and a sense that they belong (Tyler, 2017). Relating this to the work put, as

active animals, people have a need to have a place and this must be fulfilled by a capacity

to communicate with one's partners and have the capacity to team up successfully to

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accomplish hierarchical objectives. These requirements rise up out of society. Man is a

social creature and in this manner these necessities end up vital. For instance, love, warmth,

belongingness, kinship, discussion, and so on (Jacinta, 2013).

2.2.6.3 Esteem and Self-Actualization Needs

The need to have respect in the society or workplace along with a positive self-image,

prestigious job assignments, nicer work desks, better job titles (Priya, 2017). Maslow

regards this as the highest need in the hierarchy. His theory has been subjected to

considerable research. Self-actualization needs are not necessarily a creative urge and may

take many forms, which vary widely from one individual to another (Jacinta, 2013).

2.2.7 Job Satisfaction and Performance

Cole and Kelly (2015) portray execution as a ceaseless procedure for enhancing the

execution of people by adjusting real execution to that coveted (and with the vital objectives

of the association) through an assortment of means, for example, standard-setting,

examination and assessment both casually, every day, and formally/deliberately through

evaluation meetings and objective setting. Occupation execution is characterized as the

estimation of the arrangement of worker practices that contribute, either emphatically or

contrarily to hierarchical objective achievement while errand execution are employees

practices that are specifically engaged with the change of authoritative assets into the

merchandise or administrations that the association produces (Nadia, Arif, & Rahman,

2018)

Occupation fulfilment is how satisfied a man is from the activity that they perform. It relates

to execution, inspiration, non-attendance, mental/physical wellbeing and general life

fulfilment of a specific worker (Saleem & Shah, 2011). A few Job Satisfaction examines

have discovered that Job Satisfaction strongly affects Job execution, nonappearance,

turnover, and mental issue (Storey, 2013). There is no universally accepted definition of

employee satisfaction, but there are many definitions of job satisfaction in the literature.

The reason is that job satisfaction means different things to different people, since people

are affected by various factors including personal characteristics, needs, values, feelings

and expectancies. Also, it varies from organization to organization, since job satisfaction

influencing factors such as working environment, job characteristic, opportunities for

employees and working environment differ according to organization (Harputlu, 2014).

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There are various definitions of job satisfaction as mentioned, first of all, it can be defined

as concerning one’s feeling, or state of mind related with the work (Chughati & Perveen,

2013) and “an employee’s positive attitude towards the company, co-workers and, finally,

the job” (Sypniewska, 2013). Herzberg's Motivation hypothesis' accentuation that, lone

inspiration factors have the likelihood of raising occupation fulfilment. In contrast with

inspiration factors, cleanliness elements must be utilized to block disappointment and can

along these lines not be utilized as motivations to make fulfilment (Steers & Porter, 2011).

A worker may along these lines in all likelihood be happy with his/her general working

conditions, yet not particularly spurred to work and perform to his/her maximum capacity

(Storey, 2013).

2.3 Job Design and Employee Performance

Job design plays a vital role in the performance maximization. A well-designed job brings

involvement and satisfaction to the employees and they perform well by employing all their

energies in the work. Job design remains a valued issue among the researchers for its

importance and effectiveness. Job design has been a standout amongst of the best tools

utilized for improving a work performance. It very well may be characterized as changing

the content and procedures of an occupation to expand a worker’s fulfilment, motivation

and efficiency Effective job design is the proportion of how much the worker is associated

in his tasks and assignments (Bennett, 2013). A compelling job design brings involvement

of a worker in business related exercises that clearly forecasts staff output, departmental

profitability and company achievement (Linda, 2016).

Job design assumes a significant part in the accomplishment of hierarchical and also

individual objectives. Occupation configuration is characterized as indicating the substance

or strategies for any activity such that different necessities of the activity holder can be

adequately fulfilled (Waiyaki, 2017). These necessities may incorporate social, innovative,

individual and authoritative wants. Occupation configuration is identified with the

procedure of change of contributions to yields and it additionally thinks about the human

factors and hierarchical components which are of especially significance in the

accomplishment of wanted execution. Employee’s job involvement and performance

increases if the job design is aligned with the employee psychological requirements and

perceptions. An effective job design for the employees can increase their involvement in

20

the job, they enjoy performing tasks and exert all cognitive, emotional and physical

energies to achieve goals.

At the point when employees get included and know about the activity plan, they turn out

to be more spurred to take dynamic part in the accomplishment of hierarchical objectives

and subsequently execution of workers expands which emphatically impacts the results

(Bakker, Albrecht & Leiter, 2011). They think about work as excellence for them and a

piece of their lives they feel that they are getting what they need from their employments

and satisfy their obligations as moral duty. These motivated, included and pleased practices

will in general upgrade the workers performance and at last the company’s’ profitability

(Waiyaki, 2017). Despite what might be expected if the employees are not happy with their

activity outline, they feel depleted and unwilling to work legitimately just for authoritative

objectives. Baffled employees don't use every one of their endeavours rather they squander

their opportunity in non-gainful issues-this is what is seen in for the most part open segment

organisations (Bakker, Albrecht & Leiter, 2011). These sorts of workers annihilate the

hierarchical culture.

2.3.1 Job Rotation

Job Rotation is an arranged substitution of employees among employments in a timeframe

for at least one objective of winning aptitudes and occupation freedom; expanding

inspiration, work execution and efficiency (Bennett, 2013). Job rotation is a procedure by

which workers horizontally prepare and serve their undertakings in various hierarchical

levels; when an individual encounters distinctive posts and duties in an association,

capacity increments to assess his abilities in the association (Kurtuluş, 2010). The activity

pivot applications are critical for generation labourers as well as for employees considered

as director competitors. In United States (US) and Japanese firms, qualified specialists who

are relied upon to be advanced as administrators are required to have a wide perspective of

the whole firm. The labourers have encountered different generation portions by turning

through various occupations, successfully learning numerous parts of the organization from

an administrator perspective.

Job rotation is called service training in a few reports. Along these lines, an employee

working in a unit can prepare diverse occupation abilities in a specific day and age.

Employment pivot is viewed as a utilitarian technique for enhancement and advancement

of occupations (Kurtuluş, 2010). Rotation in occupations brings about expanded individual

21

information and encounter and diminished burnout and fatigue; this prompts scholarly

advancement and development. The fundamental target of occupation turn is routinely

moving employees from work to another keeping in mind the end goal to build their

inspiration and energy (Bennett, 2013). Job rotation is also identified as an applied

approach and aggrandizes job related tasks. That is the reason job rotation is planned in the

job training phase because it proves helpful while transferring employees from one job to

another in order to learn more and increase their knowledge by doing various jobs. As a

result, efficiency of employees increases, and it positively impacts the performance of

employees.

Job rotation is an extremely powerful preparing strategy since labourer serves in various

employments and can acquire more employment abilities. In this way moving employees

to new employments is alongside greater adaptability (Waiyaki, 2017). Job rotation

enhances administration and supervision in an association; it can successfully keep away

from hierarchical defilement. Job rotation can help frame an intelligent control system in

the association; besides, individuals from these uncommon systems can depend on and

bolster each other in specific situations (Bennett, 2013). Enhancing e expert levels, this

approach empowers them to achieve logical aptitudes in various circumstances and land

natural to their position, all of which enhances general quality. Consistent revolution

framework can help approve choices and lessening superfluous operational mistakes; in

this manner choices are made considering rich data with least blunder. Besides, performing

customary job rotation could make a common trust between the staff and help them to

enhance their activity.

2.3.2 Job Enrichment

Job enrichment involves designing a job in such a way that it provides the workers greater

autonomy for planning and controlling his own performance. It seeks to improve tasks,

efficiency and human satisfaction by building into people’s jobs, greater scope for personal

achievement and recognition, more challenging and responsible work and more

opportunity for individual advancement (Kalpana, 2018). Job enrichment is a systematic

way of inspiring employees by giving them the opportunity to use a number of different

types of skills and capabilities in performing a task (Waiyaki, 2017). Kotila (2001) added

that job enrichment leads to job satisfaction by increasing the level of responsibility and

giving the sense of freedom, autonomy and opportunity for employees to decide what and

22

how the job is to be performed and accomplished. The purpose of using job enrichment for

motivation is to give the employee a clear meaning of his or her function so that it gives

more satisfaction. From a business perspective, this is important because satisfied

employees are generally more productive and more loyal a financial gain and a financial

saving for the enterprise.

2.3.3 Job Enlargement

Job enlargement is characterized as surveying specialist’s extra same level exercises,

consequently expanding the quantity of exercises they perform (Waiyaki, 2017). Actually,

work amplification underpins the development of work and the assortment of abilities that

assistance make employees fulfilled, roused and, over the long haul, submitted. For work

growth to be powerful, it is prescribed to prepare employees to rehearse the new

assignments well however they are in a similar level (Bennett, 2013). Herzberg and his

companions’ intention were to increase employees’ satisfaction at workplace in relation to

work assigned to them and also to motivate employees regarding their assigned work. Job

enrichment was presented by the American psychologist Frederick Herzberg in 1950s. The

basic reason of this idea was to motivate employees by providing those opportunities of

utilizing their abilities so that productivity and performance of the employees increase and

positively impacts the organizational environment and smoothing the way for achieving

organizational goals. Job enrichment increases job depth, the degree to which employees

can plan and control the work involved in their jobs.

Job enlargement means increasing the scope of a job through expanding the range of duties

and responsibilities. Instead of an employee repeating the same steps on each product, they

perform different tasks on one singular item. Top management always thinks that the

competitive advantage is always the result of many departments in the organization. For

this reason, almost all the organizations, to cope with upcoming challenges are trending

towards hiring the multi skilled employees to complete the several kinds of tasks

effectively. It is believed that the routine work activities create boredom and lack of

motivation, for this reason job enlargement is used as a tool for reducing the boredom at

workplace and increasing the motivation of employees and their job satisfaction.

Employees whose jobs are enlarges they become unsatisfied and their previous

performance also began to fall (Raza & Nawaz, 2011). Job enlargement makes the

employees feel that the organization owns them and consider them an important part of the

23

organization so their performance increases. It showed that the performance increases by

enhancing the satisfaction level and this satisfaction is enhanced by enlarging their jobs by

introducing variety of skills in them and giving them a sense of ownership in the

organization (Saleem & Shah, 2011).

A study by Aroosiya and Ali (2013) investigated the impact of job design on employees’

performance in the school of Kalmunai Zone in Sri Lanka and which factors of job design

highly influence on employees’ performance in the organizations. To analyse this

condition, one hypothesis was formulated using deductive approach. The type of

investigation was correlational, and it was cross-sectional on time horizon. The unit of

analysis was organizational level; each school. Teachers served as respondents on behalf

of the firm. Measures of the study were of good quality after assuring reliability and

validity. Data were collected from 103 respondents which was 100% response rate. In

order to test the hypothesis that was concerned with relationship between perceived level

of job design and perceived degree of employees’ performance the Pearson Product-

Movement Correlation technique was applied. The results of the study showed a significant

and positive relationship between perceived level of job design and perceived degree of

employees’ performance in the schools. Ali and Zia-ur-Rehman (2014) conducted the

effect of job design on employee performance while the mediation effect is job satisfaction.

The findings indicated a positive relationship between job design and employee

performance. Organizations should always have quest of finding the unique ways in order

to enhance the performance of the employees.

2.4 Goal setting and Employee Performance

A goal is the aim of an action or task that a person consciously desires to achieve or obtain

(Locke & Latham, 2002). Goal setting is a motivational technique used extensively in

organizations as a method of directing individuals' efforts at work and providing a standard

against which performance can be assessed (Lunenberg, 2011). Since it was first researched

five decades ago, goal-setting theory has been the most researched, utilized, and established

theory of work motivation in the field of industrial and organizational psychology

(Costello, 2013).

Goal-setting theory was developed inductively within industrial/organizational (I/O)

psychology over a 25-year period, based on some 400 laboratory and field studies (Locke

& Latham, 2002).The theory started with the initial work on levels of aspiration developed

24

by Kurt Lewin and has since been primarily developed by Dr. Edwin Locke, who began

goal setting research in the 1960s (Redmond, 2015). Kurt Lewins’ early work on “level of

aspiration” provided the foundation for the most researched and well-established theory of

work motivation- goal-setting theory (Levy, 2013). Goal- setting theory emphasizes the

role of specific, challenging performance goals and workers’ commitment to those goals as

key determinants of motivation (Newstrom, 2011).

According to Clements and Kamau (2017), the main idea of the theory is that when having

clear and challenging goals that are set high but still achievable, employees will perform

better. In practice this means that the employees who have high goals usually achieve

higher results than the employees with low expectations of their targets (Cook, 2016). The

theory proposes that when goals are challenging, people have higher motivation to achieve

the target, and they put more effort in it when they view reaching the goal as difficult

(Clements & Kamau 2017).

Goal setting theory has guided the development of an immense body of empirical research

about workplace motivation, and it is by far the dominant paradigm in the literature today

(Kurose, 2013). According to Lunenberg (2011), goal setting is the underlying explanation

for all major theories of work motivation whether that is Vroom’s VIE theory, Maslow’s

Hierarchy of Needs theory, Herzberg’s motivation theory or Bandura’s social cognitive

theory. Goal setting has also been identified as one of the most effective methods of

changing behaviour in the workplace. Goal setting theory is a framework for understanding

the relationships among motivation, behaviour, and performance (Kurose, 2013). Managers

generally accept goal setting as a means to enhance and sustain performance (Dubrin,

2012).

Locke and Latham's goal setting theory states that several conditions are particularly

important in successful goal achievement. Goal-setting theory states that for employees to

be motivated, goals must be clear, specific, and attainable and whenever possible,

quantified (Riggio, 2014). A goal is characterized essentially as what the individual is

deliberately endeavouring to do (Lunenberg, 2011). Newstrom (2013) outlines goals as

targets and objectives for future performance that help focus employee’s attention on items

of greater importance to the organization, encourage better planning for the allocation of

critical resources (e.g. time money and energy), illustrate the value of persistent effort, and

25

stimulate the preparation of action plans for goal attainment. Research on goal setting has

also stressed the importance of getting workers committed to goals, for without such

commitment, it is unlikely that goal setting will be motivating (Riggio, 2014). Evidence

suggests that if workers participate in goal setting, as opposed to having supervisors set the

goals, there is increased motivation (Gomez et al, 2015).

2.4.1 Goal Acceptance

Employee goal acceptance occurs when employees are actually part of the process when

making decisions about targets. In this individualized approach, realistic goals are agreed

upon by both managers and staff. If a goal suggested by a manager is too aggressive,

employees can then work with managers to find available resources to help them or explain

why the goal may not be realistic (Henrik, 2017).Goal commitment plays a crucial role in

determining the success or failure in goal-setting. There is a substantial goal-performance

relationship when people are devoted and committed to their goals (Waiyaki, 2017). Bipp

and Kleingeld (2011) define goal commitment as one's attachment to or determination to

reach a goal and the cognitive, affective, and behavioural aspects of the process of goal

striving. Locke and Latham (2006) state that goal commitment is the degree of

determination one uses to achieve an accepted goal.

Goals need to be accepted. Accepting a goal is the first step in creating motivation (Locke

& Latham, 2002). Basically, allocating goals to company individuals may not result in their

dedication to those goals, particularly if the objective will be hard to achieve (Lunenberg,

2011). Commitment is most important and relevant when goals are challenging (Locke &

Latham, 2002). The notion that goal commitment tempers the goal-performance

relationship has clear intuitive appeal goal setting can’t be expected to work if goals will

be readily abandoned at the first sign of difficulty (Kurose, 2013). A compelling method of

obtaining acceptance is to allow employees to engage in the goal-setting process. In other

words, participation within the goal setting will in general improve goal adherence

(Lunenberg, 2011).

Two primary factors that help to enhance goal commitment are importance and self-

efficacy (Locke & Latham, 2006). Self-efficacy is the belief an individual hold about his

or her capability to succeed and correlates with both higher goals and stronger commitment

to them (Latham, 2013). According to Locke and Latham (2006), self-efficacy greatly

26

enhances goal commitment and there are three ways leaders can raise the self-efficacy of

their subordinates: one, by guaranteeing adequate coaching to extend mastery that gives

success experiences; two, by role modelling or finding models with whom the person can

identify, and three, through persuasive communication that expresses confidence that the

person can attain the goal (Latham, 2013). Importance refers to the factors that make

attaining a goal important, including the expected outcomes (Locke & Latham, 2006).

There are numerous ways to convince people that goal attainment is essential for example,

making a public commitment to the goal thereby enhancing devotion, presumably because

it makes one’s actions a matter of virtue in one’s own eyes and in those of others.

2.4.2 Goal Difficulty

Specific goals lead to higher performance than do‐your‐best goals or easy goals and this

forms the core of the high‐performance cycle (Bipp & Kleingeld, 2011). Goal theory

suggests that it is the goal itself that provides the driving force (Cole & Kelly, 2011). Goals

ought to be set sufficiently high enough to encourage high performance however low

enough to be feasible. The key point is that a goal should be tough moreover as specific for

it to lift performance (Lunenberg, 2011). Performance normally becomes better with where

the goal difficulty is at as long as the employee who wants to achieve the goal is set to

attaining it and has the capacity to do so (Kurose 2013). Goals that are excessively simple

or too troublesome contrarily have an effect on motivation and performance and so, one

ought to set goals that are reasonable, achievable, and challenging (Redmond, 2015). The

greatest motivation and performance is achieved with moderately difficult goals

(somewhere between too easy and too difficult) that are attainable, but at the same time

challenging.

2.4.3 Feedback

Lastly, another important moderator of the effectiveness of goal setting is feedback. It goes

without saying that without the presence of some kind of feedback in relation to goal

pursuit, goal setting loses its power because one cannot assess progress toward his or her

goals (Kurose, 2013). Feedback helps employees attain their performance goals and is

critical in order for goals to remain effective and retain commitment (Redmond, 2015).

Certain types of feedback, of course, can be more useful than others, and the influence of

feedback can also vary depending on characteristics of the individual (Lunenberg, 2011).

Positive feedback boosts motivation when provided in relation to personally valued goals,

27

while negative feedback increases motivation when provided in relation to obligatory goals.

The general theme that emerges from research about feedback in the workplace is that

feedback is an essential component of the goal setting process, but that the precise role of

feedback varies depending on characteristics of the feedback as well as contextual and

individual-level factor (Lunenberg, 2011). Feedback accompanying goal attainment may

also enhance a worker’s job performance and ability to become more innovative and

creative on the job (Fincham & Rhodes, 2015).

Khan (2014) investigated the impact of goal setting and curiosity (HR outcomes) on the

job performance of the employees. Nongovernment sector in Islamabad, Pakistan was

targeted in this regard. Data was collected from 282 respondents belonging to local and

international NGOs. SPSS was used as data analysis tool and a comprehensive

questionnaire was used to collect data. In 20% cases questionnaire was personally

administered. The study findings expose that goal setting and curiosity have strong effect

on job performance. 71% of the employees are of the view that if goals are easily achievable

and need little hard works then their performance increases than the ones which are hard to

achieve and require extra efforts. They value human thinking to play its part in improving

overall performance of an employee.

2.5 Chapter Summary

This chapter presents a preview of pertinent literature on employee motivation and

performance in organizations and various research theories have been presented. The

section highlights the impact of goal setting on employee performance. The section also

discussed the impact of monetary incentives on performance. It also states the influence of

rewards and recognition on staff achievement and the influence of motivational goal setting

on workers accomplishment. The next chapter presents research methodology that was used

to carry out this study.

28

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

The chapter present the methodology that was used to carry out the study. This includes the

research design, target population, data collection tools and techniques used, data analysis

method and presentation. This research methodology aimed at enabling the researcher to

obtain the data, process and interpret it.

3.2 Research Design

The study used descriptive research design in conducting the study. Descriptive research

involves gathering data, describes phenomenon and then organizes, tabulates, depicts and

describes data collection, in the form of graphs and charts, in order to help the reader,

understand the distribution of data (Cooper & Schindler, 2014). This method was beneficial

to the researcher to address the research questions through an empirical assessment,

numerical data and statistical analysis, hence making the research design suitable for this

study.

3.3 Population and Sampling Design

3.3.1 Population

29

Population is the collection of elements or items on which inferences can be made (Cooper

& Schindler 2014). A population refers to the aggregate of all cases that conform to some

designated set of specifications it is the entire set of relevant units of analysis or data. For

this study, employees with different designation and experience level were chosen as target

population. Six branches of Bank of Africa. A questionnaire was provided to the employees

from the six branches of each bank and their answers were collected as primary data.

Afterwards the data was analysed to get an overall idea regarding impact of motivation on

different stages showing target population. The population of this study was 135 employees

in Bank of Africa in Nairobi Kenya as shown in the Table 3.1.

Table 3.1: Population Distribution

POULATION AREA POPULATION % DISTRIBUTION

Branch Managers 6 5%

Head office staff (different departments) 45 34%

Interns 29 21%

Bank officials (branch level) 55 40%

Total 135 100%

Source: Bank of Africa Registry, (2018)

3.3.2 Sampling Design

According to Creswell (2018), sampling design can be defined as the process through

which the research engages a selection of items from a population that will represent the

whole population being focused on. Sampling design is made up of the sampling frame,

sampling method and the sampling size.

3.3.2.1 Sampling Frame

Sample Frame It is the list or quasi list of elements from which a probability sample is

selected (Martyn, 2017). For this study the sampling frame consists of a list employee with

different designations and they include; branch managers, head office staff, interns, bank

30

officials that work at Bank of Africa in Nairobi and it was obtained from the Human

Resources department.

3.3.2.2 Sampling Technique

The method that was used to study the population is the simple random procedure. This is

a technique where each element/item will be chosen randomly and entirely by chance, such

that each element/item has the equal and independent chance of being included in the

sample. According to Teddlie and Yu (2007) designs other than simple random sampling

may give each element an equal probability of being included in sample, but only with

simple random sampling does each possible sample of all the element have the same

probability of being chosen. With this method, there is equal chance or probability for each

of the employee in the organization in the participation of the study and independent chance

of being selected without potential bias and the sample represented the population target.

3.3.2.3 Sample Size

This refers to the number of elements selected from a given population (Martyn, 2017).

Saunders, Lewis and Thornhill (2009), defines sample size as a section of a part that

represents the larger whole. According to Kumar (2005) sampling refers to the process by

which a few are selected from the entire group to become the basis for estimating the

occurrence of an unknown piece of information or situation regarding the entire group.

Sampling is significant because collecting data from the whole population is usually very

costly. The sample for this study is 135 employees of Bank of Africa in Nairobi.

Representatives will be calculated using Yamane’s (1967) formula with 95% confidence

level of and P=.05 yielding a sample size of respondents. The total number of respondents

sampled to participate in the study is large enough for the study given intended goals of the

research. The representation will be derived from the formulae below.

n = N

(1+Ne2)

Where n = sample size

N = study Population 135

E = Alpha level of 0.05

Substituting these values in the above equation the sample size will be

n = 135

(1+135(0.052)

n= 101

31

Table 3.2: Sample Size Distribution

Population Area Population Sample Size % Distribution

Branch Managers 6 3 3%

Head office staff (different

departments)

45 35 35%

Interns 29 20 20%

Bank officials (branch level) 55 43 24%

Total 135 101 100%

3.4 Data Collection Methods

Data collection methods simply means the process of gathering data after the researcher

has distinguished the kinds of data required which is depends on the research queries

guiding the study (Cooper & Schindler 2014). The study used primary data for the study

and a structured questionnaire is the tool that is accustomed to collect primary data. The

questionnaire had the following sections: the first part of the questionnaire collects

demographic data of the respondents such as age group, gender and department. The second

part was concerned with the effect of goal setting on motivation. The third part of the

questionnaire looked at rewards and recognition and their effect on employee motivation.

The fourth part looked at the effect of financial incentives on employee motivation and

performance.

3.5 Research Procedures

The researcher begun by visiting the school of graduate and extension to seek for a

permission to carry out the study. The researcher first collected a letter of introduction and

Internal Review Board (IRB) from United States International University and a permit from

the National Council of Science, Technology and Innovation (NACOSTI). A letter

addressed to the respondents, assuring anonymity was attached to the questionnaire. A

carefully fit organized questionnaire was be created by the researcher, particularly for this

study. The data collection method that was used was a structured questionnaire and more

specifically, a self-administered structured questionnaire. The questionnaire was pre-tested

with selected respondents before it is administered to all the employees. The issues

32

experienced amid the pilot testing of the information collection instrument was addressed

by making important conformity to the questionnaire before managing it all in all study

test. After update of the information gathering instrument and refinement, the entire study

test was subjected to the information collection instrument. Various strategies were utilized

to enhance the response rate, for example, drop and pick technique and follow up updates

through phone and email.

3.6 Data Analysis Methods

Analysis of data is defined as a practice in which raw data is organized and ordered in order

that helpful information may be removed from it (Creswell & Plano, 2018). Data analysis

also involves organization of the data into classes, sorting and coding them to classify

patterns and interpret the responses meaning. The method permits researchers to classify

the data and categorize them into subjects (Cooper & Schindler 2014). Descriptive statistics

for instance, frequency and percentages was utilized in analysing quantitative data by the

use of Statistical Package for the Social Science (version 25) as a data management and

statistical analysis tool which has a very versatile data processing capability. Descriptive

statistics is a measurement that portrays the spread, centre and shape of distributions and

therefore, enable the researcher to analyse and summarize the data in a simple way (Cooper

& Schindler, 2014).

Inferential statistics was used in the analysis as this statistical method makes extrapolations

of an entire population from a collected sample (Zikmund, Babin, Carr & Griffin 2013).

The data was presented in form of charts, tables and graphs. In this case performance of

employees in the bank (Y) is the dependent variable. Independent variables include;

recognition and reward (X1), job design (X2), and goal setting (X3). A multiple regression

equation for predicting the performance of the employees in the bank will be expressed as

follows;

Y = β0 + β1X1 + β2X2 + β3X3 + ε

Y= Employee Performance,

β0= Constant,

X1 = Recognition and Reward,

X2 = Job Design,

X3 = Goal Setting,

ε =Error term of the model,

33

β, β2, β3 and β4= Coefficients of independent variables.

3.7 Chapter Summary

In this chapter, the methods that was used to carry out the research is identified as well as

the research design, the population, sampling design, sampling frame and sampling

technique. The researcher conducted a case study and administered a questionnaire to each

respondent. The study was based entirely on primary data collected from the respondents.

After the data collection, the researcher used Statistical Packages for Social Sciences

(SPSS) software to analyse and derive the findings. The next chapter presents the results

and findings of the study.

CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

The chapter presents the findings of the research from the staff at Bank of Africa Nairobi.

The chapter is organised as follows. The next section presents the results of response rate

analysis. This is followed by the descriptive results on effect of motivation on employee

performance within the banking industry. Then, the inferential results are presented on the

relationship between motivation and employee performance within the banking industry.

4.2 General Information

The general information of the study presented the response rate, gender of employees,

different age groups, work experience, and the departments in the banks. The information

is provided in the sub-sections.

4.2.1 Response Rate

This study anticipated to get responses from 101 respondents from the bank. However, only

72 respondents took part in the study. This therefore gave a response rate of 71%. This is a

high response rate considering the nature of the study. As such, it is appropriate for

purposes of generalising to the population of the study.

34

Figure 4.1: Response Rate

4.2.2 Gender of Respondents

The results of gender show that 54% of the employees were male and 46% while of

employees were female. Thus, majority of the respondents in the study were male which

coincides with the number of employees in the population of interest. The Figure 4.2 shows

findings of the gender for the employees in Bank Africa within Nairobi branches. It can be

concluded that the organization have almost equal number of men and women in the bank

which represents gender balance. It can also be concluded that the organization considers

employing more of men than female due to the nature of the bank where the employees

work long hours for job delivery in the bank.

35

Figure 4.2: Gender of Respondents

4.2.3 Age of Respondents

The results reveal that 25% of the respondents were aged 25 years and below, 19% were

aged 26-30 years, 21% were aged 31-35 years, 24% were aged 36-40 years, and 11% were

aged above 41 years of age. The research shows that most of the staff in the industry were

below 40 years. The Figure 4.3 indicates the distribution of respondents by age. The

findings on the age showed that there are at least well distributed employees in terms of

age. Form the findings it can be concluded that employees in the bank consists of both

young and older employees which brings on board those who have enough experience in

the works place.

Figure 4.3: Age of Respondents

36

4.2.4 Working Experience

The results of the study on work experience indicated that employees who have experience

of between 0-1 year was 29%, between 2-4 years was 33% in which they were the majority,

between 5-7 years was 17%, 8-10 years was represented by 13% and above 10 years was

8%. The findings of the study in Figure 4.4 showing work experience of employees at Bank

of Africa. It can be deduced that employees were able to give enough information in regard

to motivation of the employees within the bank.

Figure 4.4: Working Experience

4.2.5 Departments within the Bank

The study sought to establish the department in which the respondents were working in at

Bank of Africa where they indicated that 25% of employees were branch managers, 8%

marketing, 13% finance, 8% human resource, 25% back office, and 21% were interns. Most

of the respondent were from the bank back office and branch managers. The distributions

of employees were fairly distributed considering the study applied the use of stratified

sampling technique to pick respondents from each of the stratum as indicated in Figure 4.5.

37

Figure 4.5: Departments of the Bank

4.3 Reward and Recognition and Employee Performance

4.3.1 Non-Monetary Rewards

The respondents were asked to state the extent to which they agreed that the use of non-

monetary rewards like recognition, and flexible working hours in motivating the

employees. The study findings are indicated in the Figure 4.6. Therefore, the analysis shows

that 7% of the employees in the bank disagreed, 33% were neutral, while majority of the

respondents 59% agreed that the bank uses non-monetary rewards in motivating

employees. This means that employees are motivated within the bank. From the findings

of the study shows that the bank gives rewards to the employees.

Figure 4.6: Non-Monetary Rewards

4.3.2 Recognition of Employees

The respondents were asked to state whether they normally receive recognition when they

perform above expectation of the firm. The study results are indicated in the Figure 4.7.

38

The study found that 12% of the respondents disagreed, 13% were neutral, and lastly

findings show that most of the respondents 75% agreed that the employees receive

recognition when they perform above expectations. Most of the employees in the bank are

recognized in the bank which gives them motivated for performing their different tasks in

the bank.

Figure 4.7: Recognition of Employees

4.3.3 Employees Retentions

The respondents were also asked to state the extent to which they agreed if the banks pay

policy usually helps to attract and retain very high performing employees. The study

findings are shown in Figure 4.8 in which 12% disagreed, 25% were neutral, 46, and the

majority of the employees 62% agreed that the bank retain very high performing

employees. The bank retains the high performing employees and which they enable the

bank to be in a competitive edge with other banks.

Figure 4.8: Employees Retentions

4.3.4 Reward System

39

The respondents were also asked to state the extent to which they agreed if the bank has

observed a long-term improvement of the quality of work as a result of the reward system

in place. The study findings as indicated in the Figure 4.9, in which the findings indicated

that 4% disagreed, 29% were neutral, most 67% of the employees in the bank agreed that

there is improvement of the quality of work as a result of the reward system in place. The

banks have a reward system put in place where the employees are rewarded annually for

their performance in the organization.

Figure 4.9: Reward System

4.3.5 Training and Development

The respondents were also asked to state the extent to which they agreed if the bank uses

training and development as a way to motivate the staff. The findings of the study are

indicated in Figure 4.10, where the results were as follows; 4% disagreed, 37% were

neutral, and from the findings majority of the employees in the bank 59% agreed that the

bank uses training and development as a way to motivate the staff. Training enhances and

equips the employees up to the task of the skills required in the workplace. By having this

the bank has enabled its employees to perform since the employees have the requisite skills

to perform the tasks.

40

Figure 4.10: Training and Development

4.3.6 Wellness Benefit Program

The respondents were also asked to state the extent to which they agreed if the bank has a

wellness benefit program that leads to employee’s motivation. The study findings as

indicated in the Figure 4.11. This finding was as follows; 4% strongly disagreed, 8% were

neutral, and the last one where majority of the employees in the bank where 88% of the

respondents agreed that the bank has a wellness benefit program that leads to employee’s

motivation. By having the wellness program, the bank is able to reap the maximum from

the employees which enables them to be at the top in terms of the employee’s performance.

Figure 4.11: Wellness Benefit Program

4.3.7 Employees Allowances

The study sought to understand the extent to which they agreed if the employees in the

bank are given allowances which boosts their morale in work performance. The findings of

the study show that in the Figure 4.12 that 16% of the employees disagreed, 25% were

neutral, while most 59% of the employees agreed that the bank gives allowances which

41

boost their morale in work performance. Allowance in the bank acts as a motivation

towards the employees and morale towards them this enhances the employee’s performance

within the bank.

Figure 4.12: Employees Allowances

4.3.8 Employees Productivity

The respondents were also asked to state the extent to which they agreed if employees in

the bank are given allowances which boosts their productivity in work performance. The

study findings in the Figure 4.13 shows that 4% were neutral, majority 96% of the

respondents in the bank agreed that employees in the bank are given allowances which

boosts their productivity in work performance.

Figure 4.13: Employees Productivity

4.3.9 Correlation between Recognition and Employee Performance

To determine both the significance of the relationship between the variables and the degree

of their association, a correlation analysis was performed. The first correlation was done to

establish the extent by which recognition and reward affect employee performance in. The

42

findings in Table 4.1 shows that the relationship between the two variables was significant

(r = 0.685, p< 0.05). However, the coefficient of correlation from Pearson’s product

moment indicated that the relationship between the variables was strong and positive.

Table 4.1: Correlation between Recognition and Employee Performance

Performance

Recognition

and Reward

Performance Pearson Correlation 1 .685**

Sig. (2-tailed) .000

N 72 72

Recognition and Reward Pearson Correlation .685** 1

Sig. (2-tailed) .000

N 72 72

**. Correlation is significant at the 0.01 level (2-tailed).

4.3.10 Regression between Recognition and Reward on Employee Performance

Regression analysis was conducted in determining how the dependent and independent

variables related with each other and their level of significance. Table 4.2 shows the model

summary of the results. From the results, there was high relationship between the dependent

and independent variables as the coefficient of determination, where r, was (r = 0.469). The

R-square shows that recognition and reward used in the study accounted for 46.9% of the

variance in employee performance.

Table 4.2: Model Summary for Recognition and Reward

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .685a .469 .462 2.77554

a. Predictors: (Constant), Recognition and Reward

Table 4.3: ANOVA for Recognition and Reward

ANOVAa

Model

Sum of

Squares df Mean Square F Sig.

43

1 Regression 476.620 1 476.620 61.869 .000b

Residual 539.255 70 7.704

Total 1015.875 71

a. Dependent Variable: Performance

b. Predictors: (Constant), Recognition and Reward

The Table 4.3 shows the analysis of variance (ANOVA) analysis for the regression model.

From the findings the F-statistic was significant since the p-value falls below 0.05 level of

significance (F = 61.869, p= 0.000). This means that the model was fit to test the

relationship between recognition and reward and employee performance.

Table 4.4: Coefficient analysis for Recognition and Reward

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 15.084 3.717 4.058 .000

Recognition and

Reward

.885 .113 .685 7.866 .000

a. Dependent Variable: Performance

The Table 4.4 above shows the coefficient analysis for the independent variables in the

study. As shown, the study reveals that recognition and reward had a positive and

significant effect on employee performance (β = 0.885, p = 0.000). This means that an

improvement in recognition and reward leads to an improvement in employee performance

and vice versa. Therefore, the resulting regression model is Employee Performance =

15.084 + 0.885 Goal Setting.

4.4 Job Design and Employee Performance

4.4.1 Employees Goal Setting

The respondents were also asked to state the extent to which they agreed that employees in

the bank participate in goal setting which increases the level of motivations. As shown in

Table 4.5, the study found that 4% of the respondents disagreed, 21% were neutral, and

75% of the respondents were in agreement that employees in the bank participate in goal

setting. This shows that banks involvement of employees in their decision making and

which goals they want to achieve.

Table 4.5: Employees Goal Setting

Frequency Percent

44

Disagree 3 4%

Neutral 15 21%

Agree 48 67%

Strongly Agree 6 8%

Total 72 100%

4.4.2 Employees Challenges

The respondents were also asked to state the extent to which they agreed that employees

are satisfied with the challenges provided by the bank in regard to their work as indicated

in the Table 4.6. The study findings indicated that 12% of the respondents disagreed, 4%

were neutral, and 84% of the respondents were in agreement that employees are satisfied

with the challenges provided by the bank in regard to their work.

Table 4.6: Employees Challenges

Frequency Percent

Disagree 3 12%

Neutral 9 4%

Agree 48 67%

Strongly Agree 12 17%

Total 72 100%

4.4.3 Employee Training

The respondents were also asked to state the extent to which they agreed that employees

are regularly trained to acquire and improve knowledge, skills and attitudes towards work

as indicated in the Table 4.7. The study found that 21% of the respondents disagreed, 33%

were neutral, and 46% of the respondents were in agreement that employees are regularly

trained to acquire and improve knowledge, skills and attitudes.

Table 4.7: Employee Training

45

Frequency Percent

Disagree 15 21%

Neutral 24 33%

Agree 27 38%

Strongly Agree 6 8%

Total 72 100%

4.4.4 Goals Adjustment

The respondents were also asked to state the extent to which they agreed or disagreed on

whether supervisor in the bank provides real-time progress updates and adjusts goals

frequently as indicated in the Table 4.8. The study found that 13% of the respondents were

neutral, and 87% of the respondents were in agreement that supervisor provides real-time

progress updates and adjusts goals frequently.

Table 4.8: Goals Adjustment

Frequency Percent

Neutral 9 13%

Agree 57 79%

Strongly Agree 6 8%

Total 72 100%

4.4.5 Challenging Goals

The respondents were also asked to state the extent to which they agreed or disagreed on

whether employees have difficult and challenging goals to meet at work as indicated in the

Table 4.9. The study found that 12% disagreed, 41% of the respondents were neutral, and

48% of the respondents were in agreement that employees have difficult and challenging

goals to meet at work.

Table 4.9: Challenging Goals

Frequency Percent

46

Strongly Disagree 3 4%

Disagree 6 8%

Neutral 30 41%

Agree 27 37%

Strongly Agree 6 9%

Total 72 100%

4.4.6 Bank’s Goals

The respondents were also asked to state the extent to which they agreed or disagreed on

whether goals that are normally set by the bank are normally practical and achievable as

indicated in the Table 4.10. The study indicated that 4% of respondents disagreed, 17% of

the respondents were neutral, and 79% of the respondents were in agreement that goals that

are normally set by the bank are normally practical and achievable.

Table 4.10: Bank’s Goals

Frequency Percent

Disagree 3 4%

Neutral 12 17%

Agree 54 75%

Strongly Agree 3 4%

Total 72 100%

4.4.7 Mentorship in Bank

The respondents were also asked to state the extent to which they agreed or disagreed on

whether the employees have mentor assigned to them within the bank to guide in achieving

bank goals as indicated in the Table 4.11. The results showed that 20% disagreed, 41% of

the respondents were neutral, and 81% of the respondents were in agreement that they have

mentors assigned to them within the bank to guide in achieving bank goals.

Table 4.11: Mentorship in Bank

Frequency Percent

Strongly Disagree 3 4%

47

Disagree 11 16%

Neutral 29 41%

Agree 24 33%

Strongly Agree 5 6%

Total 72 100%

4.4.8 Performance of the Bank

The respondents were also asked to state the extent to which they agreed or disagreed on

whether setting of targets has improved overall performance and job performance as

indicated in the Table 4.12. The study indicated that 12% of respondents were neutral, 71,

and 88% of the respondents were in agreement that setting of targets has improved overall

performance and job performance.

Table 4.12: Performance of the Bank

Frequency Percent

Neutral 9 12%

Agree 51 71%

Strongly Agree 12 17%

Total 72 100%

4.4.9 Correlation between Job Design and Employee Performance

The study also sought to establish if employees’ performance and job design had a

significant relationship in bank of Africa. Table 4.13 which shows the results obtained from

the correlation analysis indicates that there existed a significant relationship (r = 0.778, p<

0.05) which also indicated that the variables had a strong positive correlation. This finding

implies that the bank had put considerable emphasis on job design, and it was being

strongly reflected in employee performance.

Table 4.13: Correlation between Job Design and Employee Performance

48

Performance Job design

Performance Pearson Correlation 1 .778**

Sig. (2-tailed) .000

N 72 72

Job design Pearson Correlation .778** 1

Sig. (2-tailed) .000

N 72 72

**. Correlation is significant at the 0.01 level (2-tailed).

4.4.10 Regression between Job Design and Employee Performance

The use regression analysis aim was to determine how the dependent and independent

variables related with each other and their level of significance. Table 4.14 shows the model

summary of the results. From the results, there was high relationship between the dependent

and independent variables as the coefficient of determination, r, was (r = 0.606). The R-

square shows that goal setting used in the study accounted for 60.6% of the variance in

employee performance.

Table 4.14: Model Summary for Job Design

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .778a .606 .600 2.39244

a. Predictors: (Constant), Job design

Table 4.15: ANOVA between Job Design and Employee Performance

ANOVAa

Model

Sum of

Squares df Mean Square F Sig.

1 Regression 615.211 1 615.211 107.483 .000b

Residual 400.664 70 5.724

Total 1015.875 71

a. Dependent Variable: Performance

b. Predictors: (Constant), Job design

49

The Table 4.15 shows the analysis of variance (ANOVA) results for the regression model.

From the table, F-statistic was significant since the p-value falls below 0.05 level of

significance (F = 107.483, p= 0.000). This means that the model was fit to test the

relationship between job design and employee performance.

Table 4.16: Coefficient Analysis between Job Design and Employee Performance

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 11.125 3.204 3.473 .001

Job design .750 .104 .778 10.367 .000

a. Dependent Variable: Performance

The Table 4.16 above shows the coefficient analysis for the independent variables in the

study. As shown, the study reveals that job design had a positive and significant effect on

employee performance (β = .750, p = .000). This means that an improvement in job design

leads to an improvement in employee performance and vice versa. Therefore, the resulting

regression model is Employee Performance = 11.125 + 0.750 Goal Setting

4.5 Goal setting and Employee Performance

4.5.1 Job Design

The respondents were asked to state the extent to which they agreed that on whether job

design in the bank increase an employee’s satisfaction. The results are presented in Figure

4.14. The study results show that 16% of the respondents were neutral, and 84% of the

respondents agreed that job design in the bank increase an employee’s satisfaction.

Figure 4.14: Job Design

4.5.2 Bank involvement and Inspiration

50

The respondents were asked to state the extent to which they agreed that Job design of the

bank brings involvement, fulfilment and inspiration to the employees. The results are

presented in Figure 4.15. The results indicate that 18% of the respondents were neutral,

while 84% of the respondents agreed that Job design of the bank brings involvement,

fulfilment and inspiration to the employees.

Figure 4.15: Bank involvement and Inspiration

4.5.4 Skills and Abilities

The study sought to understand the extent to which the bank makes good use of my skills

and my abilities. The results are presented in Figure 4.16. The results show that 1% of the

respondents were strongly disagreed, 13% disagreed, 8% were neutral, while 78% of the

respondents agreed that bank makes good use of my skills and my abilities.

Figure 4.16: Skills and Abilities

4.5.5 Job Rotation

51

The study sought to understand the extent to which job rotation has been used in our

organization to increase individual knowledge and experience as well as decrease employee

burnout and exhaustion. The results are presented in Figure 4.17. The results shows that

8% of the respondents disagreed, 38% were neutral, 45% agreed, and 53% of the

respondents agreed that job rotation has been used in our organization to increase individual

knowledge as well as decrease employee exhaustion.

Figure 4.17: Job Rotation

4.5.6 Employees Workload

The study sought to understand the extent to which workload is evenly distributed in their

department. The results are presented in Figure 4.18. The results of the study indicated that

4% of the respondents strongly disagreed, 4% disagreed, 20% were neutral, and 72% of the

respondents agreed that workload is evenly distributed in their department. Distribution of

work in the workplace enables employee’s delegation of duties hence efficiency is

enhanced.

52

Figure 4.18: Employees Workload

4.5.7 Employees Responsibilities

The study sought to understand the extent to which supervisor adjusts employees’

responsibilities to meet the need of the bank more effectively as presented in Figure 4.19.

The results of the study showed that 16% of the respondents disagreed, 4% were neutral,

while 80% of the respondents agreed that supervisor adjusts employees’ responsibilities to

meet the need of the bank more effectively.

Figure 4.19: Employees Responsibilities

4.5.8 Tasks and Assignments

The study sought to comprehend the degree to which effective job design is the measure of

the degree to which the staff is associated in his tasks and assignments as displayed in

Figure 4.20. The study discoveries demonstrated that 20% of the respondents were neutral,

and 81% of the respondents concurred that effectual job design is the proportion of how

much the representative is associated with his undertakings and assignments.

53

Figure 4.20: Tasks and Assignments

4.5.9 Job Enrichment

The study sought to understand the extent to job enrichment leads to job satisfaction which

leads to higher job performance as presented in Figure 4.21. The results of the study showed

that 17% of the respondents were neutral, and 83% of the respondents agreed that job

enrichment leads to job satisfaction which leads to higher job performance.

Figure 4.21: Job Enrichment

4.5.10 Correlation between Job Design and Employee Performance

The study also sought to establish if employees’ performance and goal setting had a

significant relationship in bank of Africa. Table 4.17 which shows the results obtained from

the correlation analysis indicates that there existed a significant relationship (r = 0.621, p<

0.05) which also indicated that the variables had a strong positive correlation. This finding

implies that the bank had put considerable emphasis on goal setting, and it was being

strongly reflected in employee performance.

54

Table 4.17: Correlation between Job Design and Employee Performance

Performance Goal setting

Performance Pearson Correlation 1 .621**

Sig. (2-tailed) .000

N 72 72

Goal setting Pearson Correlation .621** 1

Sig. (2-tailed) .000

N 72 72

**. Correlation is significant at the 0.01 level (2-tailed).

4.5.11 Regression Analysis between Job Design and Employee Performance

The use regression analysis with the aim of determining how the dependent and

independent variables related with each other and their level of significance. This was also

aimed at determining the extent by which the dependent variable was influenced by each

independent variable to determine the level of significance of each variable. Table 4.18

shows the model summary of the results. From the results, there was high relationship

between the dependent and independent variables as the coefficient of determination, r, was

(r = 0.385). The R-square shows that goal setting used in the study accounted for 38.5% of

the variance in employee performance.

Table 4.18: Model Summary for Goal Setting

Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .621a .385 .376 2.98686

a. Predictors: (Constant), Goal setting

Table 4.19: ANOVA between Goal Setting and Employee Performance

ANOVAa

Model

Sum of

Squares df Mean Square F Sig.

1 Regression 391.380 1 391.380 43.870 .000b

Residual 624.495 70 8.921

Total 1015.875 71

a. Dependent Variable: Performance

b. Predictors: (Constant), Goal setting

55

The Table 4.19 presents the analysis of variance (ANOVA) results for the regression model.

From the table, F-statistic was significant since the p-value falls below 0.05 level of

significance (F = 43.870, p= 0.000). This means that the model was fit to test the

relationship between goal setting and employee performance.

Table 4.20: Coefficient Analysis for Goal Setting

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 16.378 4.217 3.884 .000

Goal setting .915 .138 .621 6.623 .000

a. Dependent Variable: Performance

The Table 4.20 above shows the coefficient analysis for the independent variables in the

study. As shown, the study reveals that goal setting had a positive and significant effect on

employee performance (β = 0.915, p = .000). This means that an improvement in goal

setting leads to an improvement in employee performance and vice versa. Therefore, the

resulting model is Employee Performance = 16.378 + 0.915 Goal Setting

4.6 Chapter Summary

Presentations of the study findings has been done where all the research questions indicated

a positive correlation on employee performance. The research questions that guided the

study were; recognition and reward, job design, and goal setting and how they affect

employee performance. The next chapter present the discussions, conclusions on each of

the research question, and finally the recommendations of the study.

CHAPTER FIVE

5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

The chapter is concerned with presenting the discussions of the study as well as the

conclusions from the findings. The chapter also presents the recommendations for policy

and practice. Finally, suggestions for further research are made.

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5.2 Summary

The aim of this study was to examine the effect of motivation on the performance of

employees using the case of Bank of Africa, Nairobi. The study used the research questions

to answer the purpose of the study; how does job design affect employee performance,

hhow do recognition and reward programs affect performance, and what is the effect of

motivational goal setting on performance of employees?

The study addressed the purpose of the study in bank of Africa using descriptive research

design. The population of this study comprised of 135 employees of Bank of Africa in

Nairobi where the sample size of the study was 101 respondents. The data collecting

instrument that was used is a tailor-made structured questionnaire developed by the

researcher, particularly for this study. The method that was used to study the population is

the simple random procedure. Descriptive statistics for instance, frequency and percentages

was utilized in analysing quantitative data by the use of Statistical Package for the Social

Science (version 25) as a data management and statistical analysis tool. The use of

inferential statistics was used in analysing and explaining the extent between motivation

and employee performance.

The results of the correlation and regression analysis indicated that the relationship between

the recognition and reward on employee performance was strong and positive. While on

the other hand the regression analysis showed a high relationship between recognition and

reward used in the study accounted for the variance in employee performance. The study

results indicated that most of the respondents agreed that the bank retain very high

performing employees and it also indicated that most of the employees agreed that there is

improvement of the quality of work as a result of the reward system in place. The results

finally showed that incentives are considered one of the most important factors that

encourage workers to put forth great efforts and work more efficiently.

The findings of correlation analysis on the second research question indicated that there

existed a significant relationship which also indicated that the variables had a strong

positive correlation. This finding implies that the bank had put considerable emphasis on

job design, and it was being strongly reflected in employee performance. The study findings

showed that the bank makes good use of my skills and my abilities. It further indicated that

job rotation has been used in our organization to increase individual knowledge and

experience as well as decrease employee burnout and exhaustion. The study further

57

concludes that job design brings involvement, fulfilment and inspiration to employees in

working together, setting goals towards performance of the bank.

The study also sought to establish if employees’ performance and goal setting had a

significant relationship in bank of Africa. Correlation analysis indicates that there existed

a significant relationship which also indicated that the variables had a strong positive

correlation. Performance normally becomes better with where the goal difficulty is at as

long as the employee who wants to achieve the goal is set to attaining it and has the capacity

to do so.

Goals that are too easy or too difficult negatively affect motivation and performance. The

management of the bank accept goal setting as a means to enhance and sustain performance.

They further noted that employees have mentor assigned to them within the bank to guide

in achieving bank goals The study concludes by identifying that the bank has set aside

sufficient time spent setting goals for the employees to which ensures that each employee

has a clear understanding of the organization’s expectations for their success.

5.3 Discussion

5.3.1 Reward and Recognition and Employee Performance

The study findings indicted that the use of non-monetary rewards like recognition, and

flexible working hours in motivating the employees was positive this was shown as

majority of the employees agreed. The results further indicated that they normally receive

recognition when they perform above expectation of the bank. Employees are likely to be

motivated to improve their performance with nonmonetary rewards such as employee

recognition. Recognition is the acknowledgement, appreciation, or approval of the positive

accomplishments or behaviors of an individual or team. This is in agreement with the

findings of Schneider, (2014), who noted that rewards and recognition encourage

employees to change their current behaviours and work harder to achieve certain targets

associated with specific rewards. The Findings shows the that information to the managers

that employees of all levels along the hierarchy are influences positively by supervisory

recognition for their output and working contribution, and seniority of position is no more

bar to it.

The study findings established that the banks pay policy usually helps to attract and retain

very high performing employees. The study results indicated that most of the respondents

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agreed that the bank retain very high performing employees. This according to Sefrin,

(2016), noted that employee performance is linked on pay, rewards which organizations

can likewise offer increases in salary for achieving certain production levels, finishing

preparing programs or for remaining with the organization for a specific timeframe. These

raises can help inspire workers to enhance their execution levels and aptitudes. Incentives

have prospective orientation that make the people work harder to achieve some deadlines

and targets preferred by the incentive offered by the organization, while recognition has

retrospective orientation and reflects on an outstanding performance of the employees in

the eyes of the recognizer. Distinction between the two types of motivational tools has

profound implications over the motivational systems of the organizations.

From the results, most of the respondents agreed that there is improvement of the quality

of work as a result of the reward system in place. According to Sherrie, (2018), who agrees

with the statement noted that reward system inform of incentives are the consideration of

excellent performance, which could be in the quality, quantity or abundance in the work's

time or even in the costs. Rewards and incentives are considered one of the most important

factors that encourage workers to put forth great efforts and work more efficiently. It is

because incentives and reward system direct workers capabilities into more efficiency in

their work in an attempt to achieve the organizational goals. The study found that most of

the employees agreed that the bank uses training and development as a way to motivate the

staff.

From the results, most of the respondents agreed that the bank has a wellness benefit

program that leads to employee’s motivation. In addition, the absence of the suitable

training may negatively affect the hardworking employee's performance. The respondents

were also asked to state the extent to which they agreed if the employees in the bank are

given allowances which boosts their morale in work performance. The results showed that

most of the respondents agreed that employees in the bank are given allowances which

boosts their morale in work performance. The findings of the study is the same as that of

Yousaf, Latif, Aslam and Saddiqui (2014) where they pointed out that allowances are a

significant element of financial rewards for employee motivation as it boosts the

employee’s morale and also a feeling of belongingness as employees will live their lives

with stability and dignity (Abbas & Hammadi, 2009). Recognition plays an important role

in making employees feel valued and motivated in the workplace. Employees need to be

59

recognized and praised for their contribution to the organization. As a result, banks and

other firms must give more attention to the individual needs and circumstances of each

employee. Employee performance can be an important indicator of how employees feel

about their jobs. Managers should be interested in their employees’ job satisfaction because

attitudes provide warnings about potential problems. It is imperative that managers,

supervisors, human resource specialists, employees, and citizens in general should be

concerned with ways to improve performance in their workplace.

The coefficient of correlation from Pearson’s product moment indicated that the

relationship between the variables was strong and positive. While on the other hand the

regression analysis showed a high relationship between recognition and reward used in the

study accounted for the variance in employee performance. The results of correlation and

regression analysis is the same as that of Murphy (2015), who noted that motivated

employees improve an organization’s productivity and its competitive advantage.

Organizations that have the motivational systems comprising employee recognition and

appreciation at place have found that it leads to higher employee morale and performance

levels than even incentives since it, unlike incentives, creates a deep-rooted and long-term

ownership among the employees for the organization. Recognizing excellent performance

openly builds motivation within the entire organization. It is recognized that employee

recognition has a positive effect. When employees see other employees being rewarded for

the work, they have done it becomes a chain reaction; employees repeat positive actions so

that their work will also be appreciated.

Rewards and recognition play an imperative role in motivating employees and improving

performance. A carefully designed reward system can greatly enhance an organization's

effectiveness and productivity (Abbas & Hammadi, 2009). Today, complex reward systems

are needed to meet the demands of a more diverse workforce and gradually more,

organizations are finding they must focus on the total compensation package for employees.

A robust rewards and recognition program ensures a happy, satisfied, loyal, highly

motivated and an energized workforce that is willing to walk the talk and make a difference

to the bottom line of an organization (Saeed, Mussawar, Lodhi, Iqbal, Nayab, & Yaseen

2013).

In the banking industry, management is always looking for ways to improve the quality of

their products and services, while reducing costs. While businesses are looking towards

60

getting more out of their employees, employees are looking towards their firms to get more

out of them. Employee reward and recognition programs are a way of motivating

employees, improving their key behaviours, enhancing their productivity and value-

additions to the firm. These emphasize excellence achieved, walking the extra mile and

going far beyond expectations. Recognition programs are meant for a different purpose

altogether. They provide a psychological benefit to employees and make them look good

in front of their peers and teams. Staff at the banking industry are normally recognised and

valued, their working ability and achievement it normally very high (Madhusudan, 2016).

5.3.2 Job Design and Employee Performance

The findings of the study established that job design in the bank increases an employee’s

satisfaction. This is in agreement with the findings of Waiyaki, (2017) who noted that job

design of one's own decision brings Involvement, fulfilment and inspiration to employees

in working together, setting goals towards performance of the firm. They think about work

as excellence for them and a piece of their lives they feel that they are getting what they

need from their employments and satisfy their obligations as moral duty. Job design is the

way to organize the contents, methods and relationship of jobs in order to achieve the bank

goals and objectives as well as satisfaction of job holders. There are various approaches to

job design. Regarding this Aswathappa (2006) explained that, various approaches to job

design are namely; Job Rotation, Job Engineering, Job Enlargement, and Job Enrichment.

The study findings showed that job design in the bank increase an employee’s satisfaction.

The respondents were asked to state the extent to which they agreed that Job design of the

bank brings involvement, fulfilment and inspiration to the employees. This was in

agreement with the findings of Bakker, Albrecht, and Leiter (2011) who noted that Job

design of one's own decision brings Involvement, fulfilment and inspiration. The

employees normally think about work as excellence for them and a piece of their lives they

feel that they are getting what they need from their employments and satisfy their

obligations as moral duty.

The study findings showed that the bank makes good use of skills and abilities of the

employees. It further indicated that job rotation has been used in our organization to

increase individual knowledge and experience as well as decrease employee burnout and

exhaustion. The study found that most of the respondents agreed that Job rotation has been

61

used in our organization to increase individual knowledge as well as decrease employee

exhaustion. This is in line with the assertions of Bennett, (2013), noted that well-designed

job brings involvement and satisfaction to the employees and they perform well by

employing all their energies in the work. The employees were also asked to state the extent

to which they agreed that employees are satisfied with the challenges provided by the bank

in regard to their work. Most of the employees indicated that they are satisfied with the

challenges provided by the bank in regard to their work.

The study findings indicated that workload is evenly distributed within the organization. It

is evident in the study findings that the employees at the bank agreed. The study sought to

understand the extent to which supervisor adjusts employees’ responsibilities to meet the

need of the bank more effectively. The results on tasks and assignment is in line with the

findings of Waiyaki, (2017) who noted that inspiring employees by giving them the

opportunity to use a number of different types of skills and capabilities in performing a

task.

The study sought to understand the extent to job enrichment leads to job satisfaction which

leads to higher job performance. The findings of the study is in agreement with that of

Kotila (2001) who noted that job enrichment leads to job satisfaction by increasing the level

of responsibility and giving the sense of freedom, autonomy and opportunity for employees

to decide what and how the job is to be performed and accomplished. Kalpana, (2018) states

that job enrichment seeks to improve tasks, efficiency and human satisfaction by building

into people’s jobs, greater scope for personal achievement and recognition, more

challenging and responsible work and more opportunity for individual advancement.

The findings of correlation analysis indicated that there existed a significant relationship

which also indicated that the variables had a strong positive correlation. This finding

implies that the bank had put considerable emphasis on job design, and it was being

strongly reflected in employee performance. According to Waiyaki, (2017), noted that job

design of one's own decision brings Involvement, fulfilment and inspiration. The

employees bear more torment for their work and make the most of their work. They think

about work as excellence for them and a piece of their lives they feel that they are getting

what they need from their employments and satisfy their obligations as moral duty.

62

Employee’s job involvement and performance increases if the job design is aligned with

the employee performance in the bank. The effectiveness of job design for the employees

can increase their involvement in the job, they enjoy performing tasks and exert all

cognitive, emotional and physical energies to achieve goals (Chung, 2013). Employees

with a job design due to their determination, invest their hand, head and heart to job. Job

design of one’s own choice which has been seen in the findings of the study. Employees

bear more pain for their work; they appreciate their work and normally spend extra time at

work voluntarily. They take into account work as a prudence for them and an element of

their lives and feel that they're obtaining what they require from their employment and

satisfy their obligations as moral duty.

Despite what might be expected if the workers are not happy with their job design, they

feel depleted and reluctant to work appropriately just for hierarchical objectives (Omollo,

2015). Disappointed staff don't use every one of their endeavours rather they squander their

time in non-gainful issues-this is the thing that we see in for the most part open division

associations. These kinds of workers decimate the hierarchical culture. Disappointed and

de-persuaded workers become a weight for the association on the off chance that they

remain and on the off chance that they quit or move to another organization, they cause

high representative turnover cost for the company in which this couldn't help contradicting

the discoveries of the research findings.

5.3.3 Goal-Setting and Employee Performance

The study established that employees in the bank participate in goal setting which increases

the level of motivations. This was shown by majority of the respondents were in agreement

that employees in the bank participate in goal setting. This is in line with the assertions of

Lunenberg, (2011) who noted that goal setting is a motivational technique used extensively

in organizations as a method of directing individuals' efforts at work and providing a

standard against which performance can be assessed. The bank often combines work goals

with bonuses that are paid once the goal is reached. In those settings, an employee is

motivated not only by the goal itself, but also by the prospect of a monetary reward.

However, even goals that are not linked to monetary rewards can be very effective in

increasing productivity.

63

Goal setting would have a positive impact on employee effectiveness, employees without

set goals may find themselves working ineffectively without direction and knowledge as to

how they are performing or what value they are adding to the organization. Communicating

to employees on what is expected in terms of performance and results through goal setting

is important (Cook, 2016). Clarifying expectations and the roles and responsibilities of

employees through clear communications and feedback can improve manager and

employee performance. People who see the connection between their personal goals and

the larger goals of the organization will have a greater impact on the achievement of those

goals than people who see no such connection.

The findings of the study showed that employees are regularly trained to acquire and

improve knowledge, skills and attitudes towards work. They further stated that supervisor

in the bank provides real-time progress updates and adjusts goals frequently. The

employees were also asked to state the extent to which they agreed or disagreed on whether

employees have difficult and challenging goals to meet at work in which majority were in

agreement that employees have difficult and challenging goals to meet at work. The

findings of the study was in agreement with that of Clements and Kamau (2017), who stated

that the main idea of the goal setting is that when having clear and challenging goals that

are set high but still achievable, employees will perform better. In practice this means that

the employees who have high goals usually achieve higher results than the employees with

low expectations of their targets.

The findings of the study indicated that goals that are normally set by the bank are normally

practical and employees were in agreement that goals that are normally set by the bank.

This according to Dubrin, (2012), stated that managers generally accept goal setting as a

means to enhance and sustain performance. They further noted that employees have mentor

assigned to them within the bank to guide in achieving bank goals, where most of the

respondents was in agreement that they have mentors assigned to them within the bank to

guide in achieving bank goals. According to Kurtuluş, (2010), noted that employees are

mentored and have them with their own goals which is aligned towards the bank through

job rotation in occupations which brings about expanded individual information and

encounter and diminished burnout and fatigue; this prompts scholarly advancement and

64

development. The fundamental target of occupation turn is routinely moving employees

from work to another keeping in mind the end goal to build their inspiration and energy.

The results of the study showed that setting of targets through setting goals has improved

overall performance and job performance where most of the employees in the bank were

in agreement that setting of targets has improved overall performance and job performance.

This was in agreement with the findings of Kotila (2001) who noted that added that setting

goals within the organizations leads to job satisfaction by increasing the level of

responsibility and giving the sense of freedom, autonomy and opportunity for employees

to decide what and how the job is to be performed and accomplished. The aim of having

goals is for them to be motivated to give the employee a clear meaning of his or her function

so that it gives more satisfaction.

The study also sought to establish if employees’ performance and goal setting had a

significant relationship in bank of Africa. The analysis showed that there existed a

significant relationship which also indicated that the variables had a strong positive

correlation. The finding is in concurrence with the affirmations of Kurose (2013), who

brought up that execution increments with the dimension of goal setting, giving the

individual attempting to accomplish the objective is focused on accomplishing it and can

do as such. Goals that are too easy or too difficult negatively affect motivation and

performance and therefore, one should set goals that are realistic, attainable, and

challenging (Redmond, 2015). The findings of the study generally had a positive and

significant where this was shown through employees having targets and working towards

the performance of the organization. The findings of Azar and Shafighi (2013), is the same

where they noted that employees in the bank are motivated and engaged which is

pronounced as organization performance and enhance performance and have positive

relationship with employee performance and work. Goal setting is an important level of

performance management which has linkages with employee performance, engagement,

motivation and work meaningfulness and therefore an area worth examining in context of

changing nature of work, workplace and workforce.

The results of the study showed that goals are an important component of employee

performance management system as goals are performance directed resulting in elevated

performance. Goals and goal-related processes motivate, organize, and direct behaviour at

all ages. Goals help direct and maintain behaviour on tasks that may provide only distant

65

rewards. Effective goal-setting behaviour is therefore important in career decision-making,

a complex process often requiring delay of gratification, careful prioritizing and planning,

and personal action (Henrick, 2017). Commitment to specific challenging goals, adequate

feedback, high self-efficacy and suitable task strategies lead to high performance. Based on

the study findings effective goal setting can lead to better employee performance. Goals

also play an important role in making work meaningful as when employees can pursue

cherished goals, they find work more meaningful.

5.4 Conclusions

5.4.1 Reward and Recognition and Employee Performance

In conclusions on the reward and recognition of employees the findings indicated a positive

relationship. Employees within the bank are always motivated with different incentives

such as monetary incentives which makes them to perform above expectations. The bank

also offer salary increment for achieving certain high sales levels, finishing preparing

programs or for remaining with the organization for a specific timeframe. This has inspired

workers to enhance their execution levels and aptitudes towards the Bank of Africa.

5.4.2 Job Design and Employee Performance

The results of the study lead to confirm regarding a significant and positive relationship

between perceived use of job design and employees’ performance of the Bank of Africa.

The study further concludes that job design brings involvement, fulfilment and inspiration

to employees in working together, setting goals towards performance of the bank. The

employees in the bank have been supplemented which leads to job satisfaction by

increasing the level of responsibility and giving the sense of freedom, autonomy and

opportunity for employees to decide what and how the job is to be performed and

accomplished.

5.4.3 Goal-Setting and Employee Performance

The study concludes by identifying that the bank has set aside sufficient time spent setting

goals for the employees to which ensures that each employee has a clear understanding of

the organization’s expectations for their success. This process informs employees within

the bank of their specific responsibilities and ensures that necessary resources are identified

and provided them. Employees in the bank are mentored and have them with their own

66

goals which is aligned towards the bank through job rotation in occupations which brings

about expanded individual information.

5.5 Recommendations

5.5.1 Recommendations for Improvement

5.5.1.1 Reward and Recognition and Employee Performance

Management should ensure that employees are rewarded for their performance where it

should be equitable, and performance linked. Management should make use of the available

rewards to achieve higher and greater levels of motivation and employee performance.

Rewards should possess an objective criterion of performance which can be viewed by the

employees as fair.

5.5.1.2 Job Design and Employee Performance

Employees should be given an opportunity to make their own decisions and exercise

autonomy in their work as it makes them feel valued in an organization. It will also benefit

an organization by having employees who are productive in the workplace, it improves

employee morale, the organization saves money by utilizing the talent of its employees

other than sourcing for talent externally and it also fosters teamwork and cooperation

among employees which is vital in any organization.

5.5.1.3 Goal-Setting and Employee Performance

The management of the bank should have the confidence that their efforts to set goals,

enhance, and engagement with the employees which will result in improved performance.

Setting of the bank goals should be realistic to the employees and to the management and

should aim in achieving the objective of the bank both short and long term.

5.5.2 Recommendations for Further Studies

The study recommends that further studies should be conducted within the whole banking

industry to see the relationship between motivation and how it affects employee

performance. The study recommends further studies on other motivational factors such as

promotion, remunerations on employee performance of the banking industry.

67

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APPENDIX I: RESEARCH QUESTIONNAIRE

This questionnaire is designed to collect information on the effect of motivation on the

performance of employees using the case of Bank of Africa, Nairobi. The information

obtained will only be used for academic purposes and shall be treated in utmost confidence.

You are requested to complete this questionnaire as honestly and objectively as possible.

Please tick in the appropriate box and fill in the blank spaces provided for those questions

where elaborate answers are required.

PART A: BACKGROUND INFORMATION

1. Gender:

Male [ ] Female [ ]

2. Age Group:

Below 25

26-30

31-35

36-40

41 and above

3. Number of Years you have worked for the organisation

0-1 Years

2-4 Years

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5-7 Years

8-10 Years

Above 10years

4. Department:

Branch Manager

Marketing

Finance

Human resource

Back Office

Intern

Others (Please State)

PART B: EFFECT OF RECOGNITION AND REWARD ON PERFORMANCE

The questions in this section concern characteristics related to recognition and reward

programs, and their effect on employee performance. Using the key below, please indicate

the extent to which you agree with each statement. 1= Strongly Disagree, 2=Disagree,

3=Neutral, 4=Agree, 5= Strongly Agree

STATEMENTS SD D N A SA

The bank uses non-monetary rewards like recognition, and

flexible working hours in motivating the employees

The bank uses non-monetary rewards (e.g. gift vouchers,

movie tickets, or Lunch/Dinner for two) to motivate

employees.

Employees in the bank normally receive recognition when

they perform above expectation of the firm.

The banks pay policy usually helps to attract and retain very

high performing employees

My supervisor or branch manager recognises for the job well

done

The bank has observed a long-term improvement of the

quality of work as a result of the reward system in place

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The bank uses training and development as a way to motivate

the staff

The bank has a wellness benefit program e.g. gym or sports

club membership, that leads to employee’s motivation

Recognition is a cost-effective tool to motivate employees in

the organization

Recognition by the bank to the employees causes a

significant increase in job performance

Employees in the bank are given allowances which boosts

their morale in work performance

Motivated employees improve an organization’s

productivity and job performance

PART C: EFFECTS OF MOTIVATIONAL GOAL-SETTING ON

PERFORMANCE

The questions in this section concern characteristics related to goal/targets within the

context of the job itself. Using the key below, please indicate the extent to which you agree

with each statement, 1= Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5= Strongly

Agree

STATEMENTS SD D N A SA

Employees in the bank participate in goal setting which

increases the level of motivation

My supervisor in bank allow me to participate in the setting of

my goals

As a staff, I am satisfied with the challenges provided by the

bank in regard to my work

As a staff, I am regularly trained to acquire and improve my

knowledge, skills and attitudes towards my work

My supervisor in the bank provides real-time progress updates

and adjusts goals frequently

My goals/targets are realistic and achievable

80

As an employee, I have difficult and challenging goals to meet

at work

The goals that are normally set by the bank are normally

practical and achievable

I have a mentor assigned to me within the bank to guide me in

achieving my goals/targets

Setting of goals/targets has greatly improved my overall

performance and job performance

PART D: EFFECT OF JOB DESIGN ON PERFORMANCE

The questions in this section concern characteristics related to job design on employee

performance. Using the key below, please indicate the extent to which you agree with each

statement where 1= Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5= Strongly

Agree.

STATEMENTS SD D N A SA

Job design in the bank increase an employee’s satisfaction

Job design of the bank brings involvement, fulfilment and

inspiration to the employees

The bank makes good use of my skills and my abilities

Job rotation has been used in our organization to increase

individual knowledge and experience as well as decrease

employee burnout and exhaustion

Our organization involves us in the job design, thus motivating

us to perform better

Job rotation in our organization has improved management and

supervision in the organization

Workload is evenly distributed in my department

The bank makes good use of my skills and abilities

My supervisor adjusts my responsibilities to meet the need of the

bank more effectively

I find my job being satisfying due to the increased level of

responsibility and the sense of freedom

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Effective job design is the measure of the degree to which the

employee is involved in his tasks and assignments

Employees in the bank are involved in delivery of tasks and

assignments

Job enrichment leads to job satisfaction which leads to higher job

performance

APENDIX II: CONSENT FORM

CONSENT TO PARTICIPATE IN A RESEARCH STUDY

United States International University-Africa

Title of Study: Effects of motivation on employee performance within the banking

industry: A case of bank of Africa in Nairobi County

Investigator:

Name: Naisa Omar Osogo Student identification: 653962

Phone: 0720922847

Introduction

• You are being asked to take part in a research study to establish the effects of

motivation on employee performance within the banking industry: A case Bank of

Africa Nairobi County.

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• You are selected as a possible participant because you are an employee at Bank of

Africa in Nairobi County. We ask that you read this form and ask any questions

that you may have before agreeing to be in the study.

Purpose of Study

• The purpose of this study is to determine the effect of motivation on employee

performance within the Banking industry in Nairobi county

• Ultimately, this research project will be submitted to the Chandaria School of

Business in Partial Fulfilment of the Requirement for the Degree of Masters in

Business Administration (MBA).

Description of the Study Procedures

• If you agree to be in this study, you will be asked to complete a written

questionnaire.

Confidentiality

• This study is anonymous. We will not be collecting or retaining any information

about motivation in the banking industry.

Right to Refuse or Withdraw

• The choice to take an interest in this study is completely up to you. You may

decline to partake in the study whenever without influencing your association with

the researcher. You have the privilege not to answer any single inquiry, and in

addition to pull back totally from the interview anytime amid the procedure.

Right to Ask Questions and Report Concerns

• You have the privilege to make inquiries about this research and to have those

inquiries replied by me previously, amid or after the research On the off chance

that you have any further inquiries concerning the study, whenever don't hesitate

to get in touch with me, Naisa Osogo at naisaosogo@usiu.ac.ke or by phone at

0720922847. In the event that you like, a summary of the results of the study will

be sent to you.

Consent

• Your signature beneath demonstrates that you have chosen to volunteer as a

research participant for this study, and that you have perused and comprehended

83

the information given above. You will be given a signed and dated duplicate of

this form to keep, alongside some other material of literature esteemed essential

by the researcher.

APENDIX III: CONFIDENTIALITY AGREEMENT

CONFIDENTIALITY AGREEMENT

EFFECTS OF MOTIVATION ON EMPLOYEE PERFORMANCE WITHIN THE

BANKING INDUSTRY: A CASE OF BANK OF AFRICA IN NAIROBI COUNTY

Principal Investigator:

I understand that I may have access to confidential data about study sites and members. By

signing this statement, I am indicating my comprehension of my obligations to maintain

confidentiality and consent to the accompanying:

• I understand that names and some other distinguishing information about study sites

and members are completely classified.

• I concur not to uncover, publish, or generally make known to unapproved persons

Subject’s Signature: ……………………………………………..

Researcher’s Signature:………………………………………...Date:………………….

84

or to the general population any data acquired over the span of this research project

that could identify the people who took part in the study.

• I comprehend that all data about members obtained or accessed by me over the span

of my work is confidential. I concur not to disclose or generally make known to

unauthorized people any of this information, except if explicitly approved to do as

such by affirmed convention or by the local principal investigator acting in response

to applicable law or court order, or public health or clinical need.

• I comprehend that I am not to peruse data about members, or some other private

documents, nor make inquiries of study members for my very own information

however just to the degree and to perform my assigned obligations on this research

project.

• I consent to tell the local investigator promptly should I wind up mindful of an

actual breach of confidentiality or a circumstance which could conceivably result

in a breach, regardless of whether this be on my part or with respect to someone

else.

………………………………………… ………………………… ……………………

Name of Principal Investigator Signature Date

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APENDIX IV: DEBRIFING FORM

DEBRIEFING FORM

EFFECTS OF MOTIVATION ON EMPLOYEE PERFORMANCE WITHIN THE

BANKING INDUSTRY: A CASE OF BANK OF AFRICA IN NAIROBI COUNTY

Thank you for agreeing to participate in this study! The general purpose of this study is to

determine the effect of motivation on employee performance within the Banking industry

in Nairobi County.

We asked for employed staff at Bank of Africa Nairobi to take an interest. In this

investigation, you will be requested to complete a questionnaire. The outcomes from this

will determine; the effect of motivation on employee performance within the Banking

industry in Nairobi County.

On the off chance that you have any worry please don't hesitate to contact the researcher.

In the event that you have further inquiries regarding the examination, if it's not too much

trouble contact by telephone 0720922847 or email naisaosogo@gmail.com.

I comprehend that the investigator will answer any request I may have concerning the

research herein described. I understand that I may contact Naisa using 0720922847 or email

86

naisaosogo@gmail.com or her supervisor Dr. Caren Ouma 0722316109 or

couma@usiu.ac.ke. Furthermore, on the off chance that you have any worries about any

part of the aspect of the study, you may contact Dr. Damary Sikalieh Ph.D., Chair,

Institutional Review Board for Management, Business Research Methods and

Entrepreneurship, Off USIU Road, Off Thika Road (Exit 7), P. O. Box 14634 - 00800,

Nairobi, Kenya, East Africa. Phone: (+254) 730.116.000.

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APPENDIX V: DATA COLLECTION LETTER

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APPENDIX VI: INSTITUTIONAL REVIEW BOARD APPROVAL

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APPENDIX VII: RESEARCH PERMIT NO. NACOSTI/P/1945295/31609

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APPENDIX VIII: RESEARCH AUTHORIZATION