EMPLOYEE MOTIVATION AND ORGANIZATIONAL PERFORMANCE (A STUDY OF COMMERCIAL BANKS IN RIVERS STATE)

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Organizational performance is derived from the word job performance that means re

al work produced an employee within a specific time period. Performance is a comparison between the work of the real compared to the standard set by the company (Dessler, 2000). Performance is the quantity and quality of produced or services rendered by a person in doing the job (Luthan, 2005). Performance is the work of behavior (Armstrong, 1999). Performance is the relationship between work and behavior.

Organization performance is the working result of the employee within a certain time. Performance is the degree to which the organization reaches the job requirements (Simamora, 1995). Organizational performance is the achievement record resulting from the acquisition of a job function or activity during a specific time period (Luthan, 2005).

Organizational performance measurement include: quality (fineness, cleanliness, accuracy), the speed of time, the number and kinds of jobs, skills in using tools, and knowledge of the work. (Luthan, 2005). One way an organization can perform is through effective management of employee motivation.

Every organization and business wants to be successful and have desire to get constant progress (Nishikawa, 2006). The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges(Oloko2003). To overcome these restraints a strong and positive relationship and bonding should be created and maintained between employees and their organizations(Oloko2003).  Human resource or employees of any organization are the most central part so they need to be influenced and persuaded towards tasks fulfillment (Nnabuife 2009).

For achieving prosperity, organizations design different strategies to compete with the competitors and for increasing the performance of the   organizations.   A very   few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success or if not focused well, to decline (Nishikawa, 2006). Unless and until, the employees of any organization are satisfied with it, are motivated for the tasks fulfillment and goals achievements and encouraged, none of the organization can progress or achieve success (Nnabuife 2009).

Motivation, as a process, started with a need in human being which creates a vacuum in a person. In an attempt to fill the vacuum an internal driving force is generated which starts and sustains a chain of action and reaction Kayode (2003). It is at that point that the vacuum is also filled. With this background information(Nnabuife2009), define motivation as the internal or external driving force that produces the willingness to perform an act to a conclusive end. This first aspect of motivation we choose to describe as internal motivation because the driving force comes from within an individual. The second aspect is external motivation, is applied by the organization. This is because employees are motivated to identify with organization in order to satisfy their varied and variegates needs and desires (Oloko2003). Until they have been identified and properly satisfied, they will never cease to impede smooth running of the organizations (Nishikawa, 2006).

One of the biggest problems facing manager in the organizations is how best to get employees committed to their work and put in their best towards the accomplishment of organization’s objectives. Motivation is concerned with why people do what they do. It answers such questions as why do managers or worker go to work and do a good job (Nwachukwu2004). Meyer and This tries to explain what motivates people to act the way they do, with primary focus on the work place. It is the primary task of the manager to create and maintain an environment in which employees can work efficiently and realize the objectives of the organization (Oloko2003).

Employees differ not only in their ability to work but also in their will to do so (motivation). To motivate is to induce, persuade, stimulate, even compel, an employee to act in a manner which fulfilled the objectives of an organization (Nguyen 2005 and Egwurudi2008).

The motivation of employees depends on the strength of their motives. Motives are need, wants, desire, or impulses within the individual and these determine human behaviour (Greene et al., 2002). Therefore, motivation is the process of arousing behaviour, sustaining behaviour progress, and channeling behaviour into a specific curse of action. Thus, motives (needs, desire) induce employees to act. Motivation therefore is the inner state that energies people, channels and sustains human behaviour (Greene et al., 2002).From the foregoing therefore, the study is intended to examine the relationship between motivation and organizational performance as it relates to some selected commercial Banks in Rivers State.

1.2 Statement of Problem

Good remuneration has been found over the years to be one of the policies the organization can adopt to increase their worker performance and thereby increase the organizational performance. 

Workers leave organization due to the fact that they are not motivated enough. Some are not willing to leave because they are enjoying some benefit in terms of promotion, which leads to increase in salaries and wages, bonus and some other incentives.

Workers prefer financial incentives to non-financial incentives, more especially the junior workers, due to the fact that such incentives are not used as a motivational technique, the company have the problem and challenges of retention of their employees. Hence low performance and productivity becomes the end result and finally work dissatisfaction.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between motivation and organizational performance. The specific objectives are as follows:

i.        To examine the relationship between reward and organizational performance.

ii.       To examine the relationship between job enrichment and organizational performance

iii.      To examine the relationship between promotion and organizational performance.

iv.      To examine the relationship between organizational culture and organizational performance.

1.4 Significance of the Study

The study will serve as guide to the management of commercial Banks in particular and the Nigerian managers as a whole in determining the best way of getting the best output from their employees who are presently demoralized in the face of the prevailing socio-economic hardship.

The study is also aimed at contributing to the literature in Motivation particularly with reference to organizational performance. Also, this work on completion will broaden the essence for application of modern motivational techniques for both public and private sectors respectively.

1.5 Research Questions

i.        Does reward associate with organizational performance?

ii.       Does job enrichment associate with organizational performance?

iii.      Does promotion associate with organizational performance?

iv.      To what extent does organizational culture influence organizational performance?

1.6 Statement of Hypotheses

HO1: There is no significant relationship between reward and organizational performance.

HO1: There is no significant relationship between job enrichment and organizational performance.

HO1: There is no significant relationship between promotion and organizational performance.

1.7 Scope/Limitation of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between Motivation and organizational performance. The dependent variable is organizational performance, measures by Productivity, Effectiveness and Efficiency. While independent variable is motivation measure by Reward, Job enrichment and Promotion.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected Commercial banks in Rivers State which include First Bank and Zenith Bank, Olu-Obansanjo, Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study. The scope of this study is to ascertain the relationship between motivation and organizational performance.

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. Lastly, poor measurement instrument.

1.8 Definition of Terms

Employees: Employees would refer generally to members of staff of an organization, both management and non-management and would be used interchangeably with workers.

Employee Needs: This refers to basic wants of employees, the desire to satisfy which activates their energy to satisfy and the fulfillment of which engenders positive work attitudes.  In the study these needs are categorized into three: Existence, Relatedness and growth needs.

Motivation:  Motivation would be seen as that energizing force consciously applied through skillful appeal to employee basic needs to compel positive work attitude to achieve organizational goal.

Promotion: Elevation of an employee to a better job, better in terms of greater responsibilities, enhanced   authority more prestige   or status greater skill increased remuneration and fringe benefits.

Work Attitude: This would refer to employee’s state of mind as expressed in concrete action behaviour or their manner of performing their duties.