ABSTRACT
The issue of motivation has continually posed a big challenge to business organizations around
the globe especially in the manufacturing industries where high levels of productivity affect or
play a major role in determining the profitability, growth, development, stability and future
success of an organization. Therefore an organization in a bid to achieve success in maintaining a
competitive edge over its rival as well as avoid a steady decline in the productivity levels of its
employees, must ensure members of the workforce are adequately motivated. The primary
purpose of this study is to examine the effect of employee motivation on organizational
productivity. This study adopted a descriptive and causal research design as well as the survey
method in investigating the effects of motivation on organizational productivity levels. The
entire population of the study was 475 as a result the sample size determined is 217. A wellstructured self-administered questionnaire was used as the main tool for data collection and was
administered to 217 respondents out of which 185 were retrieved and appropriately filled.
Reliability of the research instrument was calculated and the Cronbach’s alpha coefficient was
0.868. Data were analyzed using multiple regression analysis. From the hypotheses tested, the
result indicated that there is a significant relationship between employee motivation and
organizational productivity. Findings also revealed that 35.8% of the variations in productivity
can be explained by employee motivation in the organization used as a study in this research.
The results also revealed that extrinsic factors were considered to have more significant effects
on organizational productivity than intrinsic factors. The study concluded that although both
intrinsic and extrinsic factors are significant predictors of productivity, extrinsic factors appear to
be more significant or valued by respondents in the organization used as a study. Furthermore
this study also recommended that management of organizations should take appropriate
measures in figuring out those factors that motivate their employees and seek ways of ensuring
that they are adequately motivated in order to improve their performance and productivity levels.
Finally the study also suggested that future studies should focus on other industries apart from
the pharmaceutical manufacturing sector.
KEYWORDS: Motivation, Productivity, Organization, Employees.
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TABLE OF CONTENTS
PART A
Cover Page
Title page………………………………………………………………………………………….…….….i
Declaration …….……………………………………………………………………………………….…ii
Acceptance……………………………………………………………………………………………..…iii
Certification …….……………………………………………………………………………………..…iv
Dedication………………………………………………………………………………………………….v
Acknowledgement…………..…………………………………………………………………………….vi
Abstract………………………………………………………………………………………….….…….viii
Table of contents……………………………………………………………………………………………………………………….ix
List of tables…………………………………………………….……………………………………….xii
List of Figures……………………………………………………………………………………………xiii
PART B
CHAPTER ONE: INTRODUCTION
1.1 Background of the study…………………….…………………………………….…………….…1
1.2 Statement of research problem……………………………………………………………….…….2
1.3 Objectives of the study………………………………………………………………………………………………………3
1.4 Research questions………………………………..………………………………….……………4
1.5 Research hypothesis…………………………………………………………………………………………………………4
1.6 Significance of the study……………………………………………….………………….………5
1.7 Scope of the study…………………………………………………………………………….……6
1.8 Limitations of the study……………………………………………………………………………………………………6
1.9 Outline of chapters…………………………………………………………………………………7
1.10 Operationalization of research variables …………………………………………………….……8
1.11 Schematic model of the study ……………………………………………………………………..9
1.12 Definition of terms………………………………………………………………………………….10
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CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction……………………………………………………………………………………….11
2.1 Conceptual Framework……………………………………………………………………..……11
2.1.1 Motivation………………………………………………………………………..………………11
2.1.2 Types of Motivation………………………………………………………………………………13
2.1.3 Intrinsic Motivational Factors……………………………………………………………………14
2.1.3.1 Employee Well-being……………………………………………………………………………14
2.1.3.2 Relationship with Co-workers……………………………………………………………………16
2.1.3.3 Relationship with Managers………………………………………………………………..……17
2.1.4 Extrinsic Motivational Factors……………………………………………………………………19
2.1.4.1 Work Environment………………………………………………………………………………19
2.1.4.2 Compensation……………………………………………………………………………………20
2.1.4.3 Training and Career Development……………………………………………….………………22
2.1.5 Factors Affecting Motivation…………………………………………………….………………24
2.1.6 Dilemma Managers Face in Motivating Employees………………………..……………………25
2.1.7 Productivity…………………………………………………………………….…………………27
2.1.7.1 Employee Productivity……………………………………………………………………………27
2.1.7.2 Effectiveness……………………………………………………………..………………………28
2.1.7.3 Efficiency…………………………………………………………………………………………29
2.1.8 The Nexus between Motivation and Productivity……………………………….………………29
2.2 Theoretical Framework……………………………………………………………..……………30
2.2.1 Abraham Maslow’s Hierarchy of Need’s Theory……………………………………….……….31
2.2.2 Frederick Herzberg’s Two-Factor Theory…………………………………………………….…37
2.2.3 Victor Vroom’s Expectancy Theory……………………………………………..………………41
2.3 Empirical Framework……………………………………………………………………………47
2.4 Gaps in Literature…………………………………………………………………………….….50
2.5 Summary of the chapter………………………………………………………………………….50
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CHAPTER THREE: RESEARCH METHODS
3.0 Introduction……………………………………………………………………………………….53
3.1 Research Design………..…………………………………………………………………….……53
3.2 Population of study…………………………………………………..…………………………….53
3.3 Sample frame ………………….………….…………………………………………….…….….54
3.4 Determination of sample size ……………………………………………………………………..54
3.5 Sampling technique………………………………………………………………………………54
3.6 Types and Sources of data collection ……………………………………………………..………55
3.7 Instrument for data collection……………………….….……………………………..………….55
3.8 Validity of research instrument ….…………………………….………………………………….55
3.9 Reliability of research instrument …………………..…….……………………….……….……56
3.10 Method of Data Analysis ……………..……………………………………………………………57
3.11 Ethical Considerations ……………..………………………………………………………………57
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Introduction……………………..………………………..……………………………………….58
4.1 General response rate ….…………………………………….…….………………….………….58
4.2 Socio demographic profile of respondents ………………..……………………………..………59
4.3 Descriptive analysis of data on relevant variables ……………..…..……………………………61
4.4 Test of hypothesis ………………..………………………………………………………………77
CHAPTER FIVE: DISCUSSION OF FINDINGS
5.0 Introduction………………………………………….……………….……………………………89
5.1 Discussion of Findings …….………………………….………….………………..………….….89
5.1.1 Theoretical Findings.…………………………………………….………………..………….….89
5.1.2 Empirical Findings…………………………………………………….…………………………..90
5.1.3 Discussion of findings (objectives) ……………………………..…………………….…………..91
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS
6.0 Introduction…………………………………………..………………………………….……….96
xii
6.1 Summary of Research Work………………….…….……………………………………………96
6.2 Conclusion …………………..………………………………………………….………………..97
6.3 Recommendation …………………………………………………..……………..……………..98
6.4 Limitation of Studies……………….…………………………..………………..………………..99
6.5 Suggestion for Further Studies……………….…………………..………………………………100
6.6 Contribution to knowledge.…………………………..………………………………………….100
References…….…………………………………………………………………………………………………..102
PART C: APPENDICES
APPENDIX I……………………………………………………………………………..…………….120
APPENDIX II………………………………………………………………..…………………………121
LIST OF TABLES
3.9.1 Table on reliability statistics…………………………………………………………………….57
4.1 Table on general response rate…………………………………………………………………….58
4.2.1 Table on gender of respondents………………………………………………………..………….59
4.2.2 Table on age group of the respondents……………………………..…………………………….59
4.2.3 Table on academic qualifications …………………………………………………………………60
4.2.4 Table on marital status of the respondents……………………..…..…..……..…………………..60
4.2.5 Table on job status ……….………………………………………………………………………………..….61
4.3.1 Table on employee well-being..…………………..………………………………………………62
4.3.2 Table on relationship with co-workers………………………………………………………….64
4.3.3 Table on relationship with managers…………………………………………..…………….…..66
4.3.4 Table on work environment ……………………………………………….………………..……68
4.3.5 Table on compensation…………………….………………………………………….…..……..70
4.3.6 Table on training and career development………………………………………………………..72
4.3.7 Table on effectiveness……………………………………………………………………..……..74
4.3.8 Table on efficiency …………………………..……………………..……………………………76
4.4.1a: Table on model summary hypothesis 1…..……………………………………………………….78
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4.4.1b Table on anova hypothesis 1…………………………………………………………………………….………….78
4.4.1c Table on coefficient hypothesis 1…………………………………………………..……………79
4.4.2a Table on model summary hypothesis 2…………………..…………………………………….. 80
4.4.2b Table on anova hypothesis 2 …..………………………………………………………………….80
4.4.2c Table on coefficient hypothesis 2 ………..………………………………………………….……81
4.4.3a Table on model summary hypothesis 3…………………………………………………………..82
4.4.3b Table on anova hypothesis 3 ………………………………….…………………………………82
4.4.3c Table on coefficient hypothesis 3 ………………………………………………………………..83
4.4.4a: Table on model summary hypothesis 4 …………………………………………………….……84
4.4.4b Table on anova hypothesis 4 …………………………………………………………………….84
4.4.4c Table on coefficient hypothesis 4………..………………………………………………….……..85
4.4.5a Table on model summary hypothesis 5………………………………………………..………….86
4.4.5b Table on anova hypothesis 5 ………………………………………………………………..……86
4.4.5c Table on coefficient hypothesis 5……………………………………….………………………..87
LIST OF FIGURES
Fig 1 Schematic model of the study………………………………………………………………..……9
Fig 2 Abraham Maslow’s hierarchy of needs theory model……………………………………………32
Fig 3 Frederick Herzberg’s two-factor theory model………………………………………………..…38
Fig 5 Victor Vroom’s expectancy theory model……………………………………………………….42
Fig 6 Schematic model of the study (Hypotheses)……………………………………………….……101
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CHAPTER ONE
INTRODUCTION
1.1Background to the Study
Generally most businesses, organizations and their managers are faced with numerous challenges.
One of such challenges is in the area of management which refers to the utilization of resources
effectively and efficiently in order to achieve an organizations goals and objectives. Some of these
managerial challenges are obvious in matters concerning employees such as reimbursement,
recruitment, performance management, training and career development, health and safety,
benefits, motivation and administration amongst others. The human resource is the most vital of
all resources among other factors of production and the human capital is what distinguishes one
organization from the other (Maimuna & Rashad, 2013). Therefore, for organizations to survive
and remain relevant and competitive, it is essential for them to be able to entice and maintain
efficient and effective employees in a bid to enhance productivity (Sunia, 2014). This study
however is centered on the aspect of motivation and focuses on the effects of employee motivation
on organizational productivity.
Hellriegel (1996) viewed motivation as any influence that portray, direct, or maintain people’s
goal directed behaviors. It refers to the driving force that makes an individual to act in a specific
way. It is an inner drive that causes an individual to behave in a certain manner. The goal of most
organizations is to improve productivity therefore factors of motivation play significant roles in
improving employee job satisfaction levels. This will in turn aid in improving an organization’s
productivity levels.
Employees make up the workforce of any organization as such they are an integral part of the
organization. Aluko (2014), stated that an organization is only as good as the workforce that runs
the organization. This is to say that when employees are motivated chances are that their morale
would be high as such performance and productivity levels would increase thereby to a large extent
boosting overall organizational performance level. In order to achieve high levels of productivity
as such boost organizational performance or productivity, managers therefore need to continually
seek ways of ensuring that their employees stay motivated. This is because a lack of employee
2
motivation leads to reduced productivity which is harmful to organizational performance and
continuous success.
Jennifer and George (2006) defined employee productivity as the level of effort put forth by the
workforce of an organization towards achieving organizational goals and objectives. There are
several ways by which a workforce can be motivated so as to enhance organizational productivity.
George and Jones (2012) states that motivation can be categorized into two classes namely intrinsic
and extrinsic. Intrinsic motivation arises from an employee’s internal cravings to execute a task
out of self-interest rather than a need or wish for some external reward. External motivation is the
type of motivation that arises when an employee is compelled to act in a specific way either as a
result of that employee’s desires for external rewards or to avoid punishment.
Extrinsic motivation also helps boost an employee’s effectiveness and efficiency levels. This is
because certain external factors such as adequate compensation, work environment as well as
training and career development appeal to employees as such are essential in inspiring them to
resourcefully and successfully discharge their duties. An organization that fails to provide a
conducive work environment, compensate its workforce adequately, create room for proper
training and career advancement is at risk of having a demotivated workforce. This means that
such a workforce being demoralized would fail to effectively and efficiently discharge their duties
leading to low performance and productivity levels (Nwachukwu, 2004). This study therefore
focuses on showing the effects of motivation on organizational productivity.
1.2 Statement of the Problem
James (2014) cited three warning signs of a demotivated workforce these include poor workplace
atmosphere, slipping job standards and decreased productivity. He further stated that if any of
these factors is observed to be trending downwards then there is a great chance that the
organization is dealing with a demotivated workforce. Most businesses and organizations
especially manufacturing industries have failed to recognize the importance of motivation as a
concept be it intrinsic such as employee well-being, relationship with co-workers, relationship with
managers, organizational policies etc. or extrinsic such as training and career development, good
working conditions, compensation, promotion amongst other factors that enhance or improve
employee performance as well as organizational productivity levels.
3
This in turn has continued to represent major managerial concerns for decades as employee
productivity levels has relatively declined which has been acknowledged as a subject of growing
concern in the aspect of business and management research (Akerele, 2001). Although a lot of
factors may also be responsible or even cause a decline in productivity such as poor strategic and
structural changes in decisions and executions, lack of infrastructure, leadership styles and
organizational culture amongst others. Contemporary investigations that connects the concept of
workforce motivation and productivity has laid an emphasis on employee perspective, needs and
expectations as factors affecting their performance and productivity levels respectively. As such
investigating those factors of importance to employees in the discharge of their duties at work has
taken a new dimension.
Motivation through factors such as employee wellbeing, adequate compensation, promotion, good
relationships with co-workers and relationships with managers can enhance an employee’s level
of effectiveness and efficiency in the workplace. This is because good relationships with coworkers promote unity and gives the employee a sense of belonging and acceptance which in turn
boosts employee performance and productivity levels. Employees who enjoy such relationships
both within and outside the work environment tend to be more effective and efficient as such very
productive in discharging their duties. Therefore organizations should promote harmony amongst
employees by organizing social functions in a bid to bring employees together (Jibowo, 2007).
Therefore an organization’s best strategy is to provide suitable work environs that allow their
workforce to meet or exceed expectations as well as offer a range of motivators to improve
enthusiasm, performance and productivity levels.
1.3 Objectives of the Study
The primary objective of this study is to acquire a deeper comprehension of how employee
motivation affect performance of workers in manufacturing organizations as well as recognize the
effects on organizational productivity. This research therefore seeks to:
i. Determine the effect of employee well-being on the level of effectiveness of the workers.
ii. Determine the effect of employee relationship with managers on the level of efficiency of
the workers.
iii. Examine the effect of compensation on the level of effectiveness of the workers.
4
iv. Examine the effect of training and career development on the level of efficiency of the
workers.
v. Determine the influence of employee motivation on organizational productivity.
1.4Research Questions
i. What effect does employee well-being have on the level of effectiveness of workers?
ii. How does employee relationship with managers affect the level of efficiency of the
workers?
iii. What effect does compensation have on the level of effectiveness of the worker?
iv. How does training and career development affect the level of efficiency of a worker?
v. What influence does employee motivation have on organizational productivity?
1.5Research Hypotheses
i. Employee well-being has no significant effect on the level of effectiveness of the worker
ii. Employee relationship with managers have no significant effect on the level of efficiency
of the worker
iii. Compensation has no significant effect on the level of effectiveness of the worker
iv. Training and career development has no significant effect on the level of efficiency of the
worker
v. Employee motivation does not influence organizational productivity
1.6 Significance of the Study
For this study not to be an effort in futility, it has to be useful to a number of people and institutions
among which are;
i. Organizations: The aim of this study is that the outcomes, results or findings should be
beneficial to business owners, managers and organizations especially in the locality where
this study is being conducted. This is to enable them understand the concept of motivation
and its effect on productivity. It also gives an insight to managers and business owners on
the importance of knowing their employees and ensuring adequate motivation in their
organizations.
5
ii. Research Institutions: This study is also relevant to research bodies and institutions in
the nation as a whole because findings would also be relevant to students and users of
information in conducting further research in areas similar to this study.
iii. Government Agencies: This research is also of paramount importance because it would
aid government agencies in making and implementing policies that would enhance the
stability, growth and development of businesses throughout the region in matters
concerning organizational productivity by seeking ways ensure that employees are
adequately motivated in their various organizations thereby increasing overall productivity
and performance levels.
1.7 Scope of the Study
The scope of this study is limited to a selected pharmaceutical manufacturing organization (May
& Baker Plc) in Ota, Ado-Odo Local Government Area in Ota, Ogun State, Nigeria where the
study is being conducted. This study examines employee motivation and its resulting effects on
the organization’s productivity levels. The pharmaceutical industry is being considered because
research has not been done on this area prior to now. May & Baker Plc was selected because it is
the first pharmaceutical company in Nigeria and is one of the fastest growing pharmaceutical
companies currently situated in Lagos and Ogun state.
1.8 Limitations of the Study
The demanding schedule of respondents at work made it very difficult getting the respondents to
participate in the survey. As a result, retrieving copies of questionnaire in timely fashion was very
challenging. Also, the researcher is a postgraduate (student) and therefore has limited time as well
as resources in covering extensive literature available in conducting this research. Information
provided by the researcher may not hold true for all businesses or organizations but is restricted to
the selected organization used as a study in this research especially in Ota the locality where this
study is being conducted. Finally, the researcher is restricted only to the evidence provided by the
participants in the research and therefore cannot determine the reliability and accuracy of the
information provided.
6
1.9 Operationalization of Research Variables
This study consists of two variables, employee motivation and organizational productivity, being
the independent and dependent variables respectively. The relationship between the two
variables can be mathematically represented as follows:
Y=f(X)
Where:
Y= dependent variable = Organizational Productivity
f= Function
X = Independent variable = Employee Motivation (Intrinsic and Extrinsic)
X= Employee Motivation
Intrinsic
X1= Employee Well-being
X2= Employee Relationship with Co-workers
X3= Employee Relationship with Managers
Extrinsic
X4= Training and Career Development
X5= Compensation
X6= Work Environment
Y= Organizational Productivity
Y1= Effectiveness
Y2= Efficiency
7
1.10 Schematic Model of the Study
Source: Adopted from Estes & Polnick (2012)
Figure 1: Schematic Model of the Study
The above diagram represents the schematic model of the study illustrating both the independent
and dependent variables used in the study; where H represents the various hypotheses tested in
the course of this study.
8
1.11 Definition of Terms
Motivation: refers to what stimulates and guides human behaviors and how these behaviors are
sustained to attain a specific goal.
Employees: Employees are people who are hired working under contract in an organization, they
are referred to as the workforce of an organization.
Productivity: A summary measure of the quantity and quality of work performance, with
resource deployment taken into account. It can be measured at individual, group or organizational
levels.
Employee Productivity: is the rate at which employees effectively and efficiently discharge
their duties.
Organizational Productivity: A measure of how efficiently and effectively managers use
resources to achieve organizational goals.
Effectiveness: refers to a measure of how well workers productivity levels meet set goals and
objectives of the organization.
Employee Effectiveness: is a qualitative characteristic that indicates the extent to which job
related issues are addressed and the magnitude at which predetermined goals and objectives are
achieved by an employee.
Efficiency: can be derived from the relationship between inputs and outputs, and refers
principally to the degree at which outputs are realized while minimizing costs associated with
production.
Employee Efficiency: refers to the ability of an employee to do what is actually produced or
performed with the same consumption of resources
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