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.
10
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
14
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).
15
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
17
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
18
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).
19
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.
82
• 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 [email protected] 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
85
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 [email protected].
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
[email protected] or her supervisor Dr. Caren Ouma 0722316109 or
[email protected]. 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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