MOTIVATION AND EMPLOYEE PERFORMANCE
A CASE STUDY OF KAMPALACITY COUNCIL CENTRAL DIVISION
BY
NAKABIRI HARRIET
07/U/11798/EXT
SUPERVISOR
MISS NANYANZI MARION
A RESEARCH REPORT SUBMITED TO MAKEREREUNIVERSITY IN PARTIAL FULFILMENT FOR THE REQUIREMEMT OF A DEGREE OF BACHELOR OF COMMERCE
AUGUST 2011
1
DECLARATION
I Nakabiri Harriet, here by declare that the work presented here is entirely my own original work except where acknowledged and that it has never been presented to any University for the award of a degree.
Signature …………………………………Date …………………….
NAKABIRI HARRIET
O7/U/11798/EXT
(STUDENT)
DEDICATION
This research is dedicated to my beloved guardian Ms Nattu Yaeri who has seen me through my education.
APPROVAL
I hereby certify that this research report by Nakabiri Harriethas been prepared under my supervision and submitted in upon my approval.
Ms. Nanyanzi Marion
Signature………………………………Date……………………………………
(Supervisor)
ACKNOWLEDGEMENTS
To the Lord Jesus I give all the glory. My supervisor Ms. Nanyanzi Marion deserves special thanks for her guidance, insights, ideas, and the encouragement throughout this research.
I also express my sincere gratitude to the members of Kampala City Council who were very supportive and cooperative to me by availing the necessary information needed for the study.
I also acknowledge and appreciate my friends with whom we toiled up to this final level, for their never ceasing encouragement through this course and the research process.
May the good Lord reward you richly.
TABLE OF CONTENTS
DECLARATION
DEDICATION………………………..…………………………………………………………………………..…….…………….ii
APPROVAL....... iii
ACKNOWLEDGEMENT
LIST OF TABLES
LIST OF FIGURES………..……………………………………………………..……………viii
ACCRONYMS...... ix
ABSTRACT………………………………………………………………….………………………..…..…………………..………x
CHAPTER ONE: INTRODUCTION .
1.1 Background for the study
1.2 Statement of the problem
1.4 Objectives of the study
1.5 Research questions
1. 6 Scope of the study
1.7 Significance of the study.
CHAPTER TWO: LITERATUREVIEW……………………………………………...………7
2.1 Introduction ……………………………….……………………………………………..……7
2.2 Motivation practices ...... 7
2.3 Employee Performance ...... 12
2.4 The relationship between motivation and employee performance ...... 15
2.5 Other factors ...... 17
CHAPTER THREE: METHODOLOGY………………………………….…………………21
1.1 Introduction ...... 21
3.2 Research design & Strategy ...... 21
3.3 Study area ...... 21
3.4 Study Population ...... 21
3.5 Sampling methods & techniques ...... 21
3.6 Sample size ...... 22
3.7 Sample design ...... 22
3.8 Sources of data ...... 23
3.9 Data collection methods & instruments ...... 23
3.10 Research procedure ...... 23
3.11 Data analysis, processing and presentation ...... 23
3.12 Limitations of the study ...... 24
CHAPTER FOUR: PRESENTATION OF THE ANALYSIS AND DISCUSSION OF FINDINGS……………………………………………………………………………..………………………………………….…..25
4.1 Introduction...... 25
4.2 Back ground information of respondents...... 25
4.3 Motivation tools undertaken by Kampala city council ……………………….……………..28
4.4 Employee performance ………………………………………………….…………………..35
4.5Relationship between employee performance and motivation in KCC……...……………….40
CHAPTER FIVE: SUMMERY, CONCLUSIONS AND RECOMMANDATIONS
5.1 Introduction...... 41
5.2 Summary of major findings...... 41
5.3Conclusion …………………………………………...……….……..……………………….42
5.4 Recommendations …………………………………………………………………………...42
5.5 Areas of further research ………………………………………………….…………………43
REFERENCES ...... 44
APPENDIX I: Questionnaire ...... 46
APPENDIX11: Introductory letter………………………………………………….…………..50
LIST OF TABLES
Table 1: Motivation satisfiers and dissatisfiers…………………………………………….……….…11
Table 2: Key Performance Indicators………………………………………………...……………..…17
Table 3: Number of respondents from each department……………………………..………..…….....22
Table 4: Gender of respondents...... 25
Table 5: Marital Status of respondents ...... 26
Table 6: Age bracket...... 26
Table 7: Highest level of education attained………………….…………………………..…………….27
Table 8: Duration in service………………………………..………………………...…………….…..27
Table 9: Wages and salaries…………………………….……...………………………...………….…28
Table 10: Timely Payments………………………..……………………………………………….….29
Table 11: Work load and Payment………………………………...………………………….…….…29
Table 12: Fringe benefits…………………………………………………………………….…….…..30
Table 13: Bonus Payment…………………………………………………………………..………....30
Table 14: Staff training……………………………………….. ………………………………...……31
Table 15: Job rotation……………………………………………………………………………...….32
Table 16: Decision making exercise…………….…………………………………….……………....32
Table 17: Degree of responsibility………………………………………………..……………….…..33
Table 18: Hectic work…………………………………………………..…………………………….34
Table 19: Staff Promotion………………………………………………..……………………….…..34
Table 20: Fair treatment of staff…………………………………………………….……………...…35
Table 21: Motivation and staff performance…………………………………………………...……..36
Table 22: Goal clarity……………………………………………….………………………..……….36
Table 23: Working conditions………………………………………………………………………...37
Table 24: Knowledge of the structure…...... 38
Table 25: Modern Technology ………………………………………………………….…...... …..38
Table 26: Ability, training and experience……………………………………………..…...……...... 39
Table 27: Motivation and employee performance………………………………………………..….40
LIST OF FIGURES
Figure 1: Conceptual framework………………………………………………………………….4
ACCRONYMS
KCC:KampalaCity Council
KPI:Key Performance Indicators
ABSTRACT
The study set out to investigate the relationship between motivation and the level of employee performance. The study had three objectives: to examine the motivation practices used in KCC, to examine factors affecting employee performance in KCC, and to establish the relationship between motivation and employee performance.
The study used a case study strategy which is Kampala City Council and an explanatory research design. To achieve the set objectives the study used stratified random sampling in sample selection by grouping the employees according to management levels. There after simple random sampling was applied to select respondents. A sample of 30 respondents was selected which comprised employees of Kampala City Council.
The study revealed that KCC carries out motivation of its employees in many ways including; provision of fringe benefits, paying bonuses to good workers, giving a sense of responsibility, promotion of consistently good workers and treating the workers equally. However, the study also revealed that the council does not use motivation tools including; remuneration, training, involvement of employees in decision making, and rotation of employees.The study further revealed that motivation is the major factor that affects employee performance. The study showed a direct strong and positive relationship between employee motivation and the performance of KCC staff which is evidenced by the Pearson correlation of (r= 0.823**), significance level =0.01.
Conclusively, the researcher found out that motivation has a positive influence on employee productivity and that if the management of KCC strengthens their motivation practices, employees would perform more excellently hence attaining organizational goals.
The researcher recommends that the council should always carry out thorough study on the various motivational practices that can motivate the specific employees such that they can apply the right tools appealing to the employees since the council’s biggest challenge had been using particular motivational tools which would act as dissatisfiers to some employees.
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CHAPTER ONE
INTRODUCTION
1.1Background for the study
Motivation refers to a complexity of forces inspiring a person at work to intensify his desire and willingness to use his/ her potentialities to perform in order to achieve organizational objectives. (Mile, 2004) It actually refers to conditions which influence the arousal, direction and maintenance of behavior relevant in working setting. The motivational force is aroused as a result of needs, which have to be satisfied.(Kootz et al., 1990) Motivation of employees is an important inter control tool and should therefore be adhered to in order to attain advantages like increased employee commitment, increased productivity and efficiency. Motivation emphasizes result oriented management through setting of smart objectives and effective communication systems in an organization.
Employee performance refers to the efficiency and effectiveness of employees in achieving organizational objectives. (kootz et al., 1990) Employee performance can be evaluated by considering the level of absenteeism, quality of reports, and time of reporting for and leaving for duty.
It’s important to note that after recruitment, most employees subsequently expect or demand for other benefits as compensation for their time and effort towards achievement of organizational goals apart from the standard wage or salary (Miles, 2004). If the above benefits are not offered, it usually leads to various forms of dissatisfaction which may include; high absenteeism, constant grievances, high labor turnovers, strikes and as a result low performance of their due duties. (Abuja 1998)
Kampala City Council (KCC) is a public organization operating in the capital city of Uganda-Kampala. It has offices in the five divisions of Kampala, that is to say Makindye, Nakawa, Kawempe, Rubaga and Central division.The study mainly focuses on KCC operations in Central division located on City Hall building, near the Parliament of Uganda.
KCC intends to serve the city residents through coordinated service delivery focusing on local priorities and contribute to improvement on the quality of life. However, its been a hustle for KCC to pursue the above goal its been registering poor performance from employee.
1.2Statement of the problem
In his book “Working today: Understanding what drives employee engagement”, Towers, P. (2003) emphasizes that employee motivation is perhaps the biggest driver of organizational performance. He adds that an organization which is able to motivate its employees and maintain it, is able to leverage their zeal and drive in order to ensure staff performance. In KCC, employees receive allowances, bonuses, leaves among others but still there is a lot of continued complaints and facts about the inefficiency and performance of the KCC staff. For example, according Dr. Kigundu, A.T. (2007). in the article The challenges of managing Uganda’s onlycity Kampala published on 13/Nov/2007,( reported that Kampala is characterized by the collapse of sewerage systems, potholed roads, uncollected garbage and unplanned settlement which all need to be worked upon. This study is therefore aimed at examining the impact of employee motivation on their performance.
1.3Purpose of the study
The study sought to establish the relationship between motivation and employee performance in Kampala City Council Central division.
1.4Objectives of the study
- To examine the motivation practices used in KCC.
- To examine factors affecting employee performance in KCC.
- To establish the relationship between motivation and employee performance.
1.5Research questions
- Which motivation practices are used in KCC?
- What are the factors affecting employee performance in KCC?
- What is the relationship between motivation and employee performance.
1.6Scope of the study
1.6.1Subject scope
The study focused on motivation and employee performance in Kampala City Council having motivation as the independent variable and employee performance as the dependent variable.
1.6.2Time scope
The research covered a period of 10 years from 2000-2011 mainly because this is the time when KCC has been experiencing the problem of poor motivation and poor employee performance.
1.6.3Geographical scope
The research was carried out in KCC Central division main offices located on City hall building near the Parliament of Uganda. Central division has been chosen mainly because it’s from the main offices where new policies can be developed and are best monitored to be implemented in other KCC branches.
1.7Significance of the study.
The research will be of great importance to various groups of people like to the current researcher, policy makers, future researchers and the management of KCC. This is discussed further as shown below;
The research will be of great importance to me as a researcher because I hope to acquire research skills which I can apply to conduct research in other subjects. Skills like developing questionnaires, interacting with new people and get the necessary information and analyzing data.
The research will also help the management of Kampala City Council to discover the effect of motivation on employee performance. This will help them come up with better motivation techniques which will result into improved employee performance.
The research will also benefit the future researchers who will carry out research about the same topic of motivation and employee performance and will learn more about motivation practices, factors affecting employee performance, the relationship between motivation and employee performance among others.
The study will benefit policy makers like the International Labor Organization, Workers’ Union and other government organizations to come up with effective realistic policies of motivating employees.
1.8Conceptual framework
Independent VariableDependent variable
Source: Adapted from: Sanjay, K and Bradley, E (2008). International Public Management Journal. Vol 11(1), 89-108.
- Promotion can be defined as advancement to a higher level on a job with increased authority, responsibility and pay.
- Benefits in kind refer to goods and services provided free or at a greatly reduced cost.
- Job security can be defined as assurance of maintaining employment even in spite of extenuating circumstances.
- Factors affecting employee performance refer to aspects that influence employee performance and cause them to behave in different ways towards the attainment of organizational goals.
- Productivity /Deadline. Productivity refers to a measure of a person, machine or organization in converting inputs into useful outputs. Deadline refers to time limit as for payment of a debt or completion of an assignment. We consider whether the employee is able to consistently meet productivity requirements and project deadlines.
- Teamwork / pitching in. Teamwork refers to actions of individuals broughttogether for a common purpose or goal. Pitching in refers to the act of coming in to give assistance or to help others carryout some task. Does the employee volunteer to assist?
- Performance Indicators refer to a set of measurable values that demonstrate the achievement of an outcome. They enable decision makers to assess progress towards the achievement of organizational goals.
- Motivational challenges can be defined as factors or situations which hinder successful administration of incentives to the intended partners. They usually come in to block their effective application.
- Age refers to the number of years someone has lived or something has existed. May also mean the length of time one has existed or duration of life.
Relationship between motivation and employee performance
There is a competitive environment among the various businesses and organizations therefore all employers try to manage their cost in order to retain their key employees through motivating them. The relationship between motivation and employee performance is that employees tend to perform much better when they are positively and consistently motivated while those who are less motivated tend to perform poorly. Therefore, motivation is directly related to performance of employees in a company.
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CHAPTER TWO
LITERATURE REVIEW
2.1Introduction
This chapter shows what other scholars have written about motivation and organizational performance.
Balunywa, T. (2005) defines motivation as the inducement of a desired behavior with in subordinates with a view of channeling their efforts and activity to achieve an organization’s goals. He adds that it’s an internal drive to satisfy an unsatisfied need in an organization and is also known as an incentive action.
Traditionally, motivationhas been defined by the two dimensions that comprise it namely, energy and direction (Deci, 1980; Deci & Ryan, 1985; Roberts, 1992). The energy dimension of motivation is the driving force behind someone’s effort and persistence during engagement in a particular activity. Direction of motivation determines the area or field of interest in which that effort is projected. Both are necessary elements of a complete motivational act. Energy without direction has no purpose, and direction without energy results in a state of motivation.
Beyond defining motivation, however, researchers have also categorized various types of motivation, based on whether the motivational states are internally or externally derived. These two global motivational states are called intrinsic and extrinsic motivation (Deci, 2000) theorized about both intrinsic and extrinsic motivational states and about correlates of those states.
2.2Motivation practices
Many different scholars have agreed and disagreed on the ways employees should be motivated. Some of them assert that in order to motivate an individual, a financial benefit has to be foregone by the motivator whereas others believe that money is not a true motivator hence both financial and nonfinancial incentives are considered in the discussion below;
According to Cole (1998), financial incentives are rewards/payments that employees get in consideration of their contribution towards the organization. He adds that these are payments for labor as a factor of production.
Wages and Salaries
Lindner (1995) notes that, though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month.
Piece rate
According to Lun Chien-Chung (2003) piece rate is the paying of a worker per item produced in a certain period of time. He asserts that this increases speed of work and therefore productivity. This is in agreement with the earlier revelations made by Taylor (1993) who notes that though the employees will care less about the quality of their work, their sped improves with the piece rate practice of motivation.
Fringe benefits
According to Doellgast (2006) fringe benefits are often known as “perks” and are items an employee receives in addition to their normal wage and/or salary. These include company cars, health insurance, free meals, education e.t.c. he asserts that these encourage loyalty to the company such employees may stay longer with the company.
Performance related pay
This is paid to those employees who meet certain targets. The targets are often evaluated and reviewed in regular appraisals with managers. According to Higgins (1994) this system is increasingly being used by organizations world wide because it reduces the amount of time spent on industrial relations and he therefore recommends its use. However, Doellgast (2006) discourages the use of this practice of motivation. He asserts that it can be very difficult to measure employee performance more especially those in the service industry and that the practice does not promote teamwork.
Bonuses
Marler (2000) indicated that when your employees function as a team, you ought to think like a coach; reward the whole group for a job well done. He says this will boost morale both personally and collectively. He adds that employee incentive programs such as small bonuses serve to better the morale of an individual employee and that of a group as a whole by making them more satisfied.
This is in agreement with Likert’s (2004) study which concluded that since everybody wants to feel appreciated and special for the work done, they can therefore be motivated by appreciating them and making them feel special. He adds that the more satisfied the employee is, the better he/she will perform.
Mwanje (2000) believes that non-financial incentives are the most important motivators of human behavior in terms of the needs of human beings. He refers non-financial incentives to non-monetary ways of rewarding employees. They are opportunities that help employees in the accomplishments of the set goals. They include;
Training opportunities
Hammer (2000) asserts that an individual will be motivated to do something if they have the mental ability and skills to accomplish it. He writes that when employees are trained, they get the knowledge of hoe to deconstruct tasks and challenges and thereby feel less intimidated by their jobs/tasks.
Herzberg (1998) agrees to Hammers assertion. He adds that training makes the employee earn confidence to do a job thereby improving their attitude hence motivation.
Job rotation
Fowler (2001) revealed that when an employee does one kind of job week-in week-out, they will always get de-motivated to carry on with their work more especially when the work is not very challenging. She suggested that employees need to be rotated around the organization to meet new challenging tasks in order to keep their minds busy and feel like they are doing something for the organization.