ASOSSA UNIVERSITY

FACALITY OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS MANAGMENT

REASEARCH TITLE; EVALUATING MOTIVATIONAL STRATEGIES AND ITS

IMPACT ON EMPLOYEE PERFORMANCE IN CASE OF SELECTED BUREAU’S
OF BENISHGUL GUMUZ REGIONAL STATE

A Research Proposal Submitted to Assosa University Department of management in Partial

Fulfilment of the requirements for Master of business administration

Prepared BY
Name: - Kibrewossen Mekuria
ID no_ GBES/013/08
Phone- +2519-11-57-29-47
Email- kibre2020@gmail.com

Submitted to: -Main Advisor, H/mariam (PhD)

Co-advisor. Ato Ermias T.
October /2018
Ethiopia, Assosa

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Table of Contents
ACKNOWLEDGMENT................................................................................................................................................................2
CHAPTER ONE.............................................................................................................................................................................3
1. INTRODUCTION.................................................................................................................................................................3
1.1. BACKGROUND OF THE STUDY......................................................................................................................................3
1.2. STATEMENT OF THE PROBLEM.....................................................................................................................................6
1.3. OBJECTIVE OF THE STUDY.............................................................................................................................................7
1.3.1.GENERAL OBJECTIVE OF THE STUDY.........................................................................................................................7
1.3.2.SPECIFIC OBJECTIVES OF THE STUDY........................................................................................................................7
1.3.3.HAYPOTHESIS OF THE STUDY.......................................................................................................................................7
1.4. SIGNIFICANCE OF THE STUDY......................................................................................................................................8
1.5. SCOPE OF THE STUDY.....................................................................................................................................................8
1.6. ORAGANISATION OF THE STUDY.................................................................................................................................8
CHAPTER TWO............................................................................................................................................................................9
2. LITERATURE REVIEW......................................................................................................................................................9
2.1. INTRODUCTION.................................................................................................................................................................9
2.2. MOTIVATION CONCEPTS.................................................................................................................................................9
2.3. MOTIVATION THEORIES................................................................................................................................................10
2.3.1.FREDERICK WINSLOW TAYLOR’S SCIENTIFIC MANAGEMENT THEORY.........................................................10
2.3.2.ELTON MAYO’S HUMAN RELATIONS THEORY........................................................................................................11
2.3.3.ABRAHAM MASLOW’S HEIRACHY OF NEEDS THEORY........................................................................................12
2.3.4.FREDERICK HERZBERG’S TWO FACTOR THEORY..................................................................................................13
2.3.5.DOUGLAS MCGREGOR’S THEORY OF X &Y.............................................................................................................15
2.3.6.VROOM’S VALENCE – EXPECTANCY THEORY.........................................................................................................16
2.3.7.ADAM’S EQUITY THEORY.............................................................................................................................................16
2.3.8.SKINNER’S REINFORCEMENT THEORY.....................................................................................................................18
2.3.9.MCCLELLAND’S NEEDS THEORY OF MOTIVATION................................................................................................18
2.4. GOAL SETTING................................................................................................................................................................19
2.4.1.GOAL ACCEPTANCE / GOAL COMMITMENT.............................................................................................................20
2.4.2.GOAL DIFFICULTY /TASK COMPLEXITY/..................................................................................................................21
2.2.3 FEEDBACK........................................................................................................................................................................21
2.5. FINANCIAL INCENTIVES...............................................................................................................................................22
2.5.1.MOTIVATION....................................................................................................................................................................24

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2.6. MOTIVATIONAL STRATEGIES.......................................................................................................................................25
2.7. PERFORMANCE...............................................................................................................................................................29
2.8. JOB SATISFACTION.........................................................................................................................................................29
2.9. RECOGNITION AND REWARDS....................................................................................................................................30
2.9.1.RECOGNITION..................................................................................................................................................................31
2.9.2.REWARDS..........................................................................................................................................................................32
2.10. BASIC PRINCIPLES ABOUT MOTIVATION..................................................................................................................33
2.11. FACTORS THAT MOTIVATE PUBLIC SECTOR EMPLOYEES...................................................................................35
2.12. FACTORS THAT MOTIVATE PRIVATE SECTOR EMPLOYEES..................................................................................35
2.13. COMPARISON OF MOTIVATION IN THE PRIVATE AND PUBLIC SECTOR ORGANIZATIONS..........................36
2.14. PROBLEMS ASSOCIATED WITH LACK OF MOTIVATION........................................................................................37
2.15. EMPIRICAL STUDIES......................................................................................................................................................38
2.16. RESEARCH GAP...............................................................................................................................................................40
2.17. CONCEPTUAL FRAMEWORK........................................................................................................................................41
CHAPTER 3: RESEARCH METHODOLOGY.......................................................................................................................42
3. INTRODUCTION...............................................................................................................................................................42
3.1. SOURCES OF DATA..........................................................................................................................................................42
3.1.1.PRIMARY SOURCE OF DATA.........................................................................................................................................42
3.1.2.SECONDARY SOURCE OF DATA...................................................................................................................................43
3.2. POPULATION....................................................................................................................................................................43
3.3. SAMPLE SIZE DETERMINATION..................................................................................................................................43
3.4. INSTRUMENT USED FOR DATA COLLECTION..........................................................................................................45
3.4.1.QUESTIONNAIRE.............................................................................................................................................................45
3.4.2.INTERVIEW.......................................................................................................................................................................45
3.5. DATA ANALYSIS TECHNIQUES.....................................................................................................................................46
3.6. DATA VALIDITY...............................................................................................................................................................46
3.7. WORK PLAN.....................................................................................................................................................................46
3.7.1.BUDGET OUTLINE...........................................................................................................................................................48
3.7.2. STATIONARY............................................................................................................................................................48
3.7.3. BUDGET SUMMERY...............................................................................................................................................49
REFERANCE...............................................................................................................................................................................50

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ACKNOWLEDGMENT
First, I would like to extend my sincere gratitude and appreciation to my Advisor H/mariam (PhD) for his
advice, critical evaluation, and constructive comments in all stages of the research and my co-adiveior Mr.
Ato Ermias T. for his advice in the short distant and making me grate in using the affordable models and
steps that I follow.
I am also grateful to the office of Benishangul Gumuz regional state investment office for the time allowed
for me to follow may education, to do my research proposal, moral and material support in the course of
writing the research proposal.
I will also thanks the Bureau of Environment forest and land administration, Bureau of urban development,
Bureau of education, Bureau of agriculture, Bureau of human resource and public service for their
willingness in providing tangible data for the study.
Thanks you very much all

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CHAPTER ONE

1. INTRODUCTION

1.1. BACKGROUND OF THE STUDY

The term motivation is derived from the Latin word ‘movere’ which means to move (Baron, Henley,
McGibbon and McCarthy, 2012). Certo (2016) describes motivation as giving people incentives that cause
them to act in desired ways. Motivation has also been described as the process of arousing and sustaining
goal-directed behaviour (Nelson, 2013).
It is commonly agreed that there are two types of motivation, namely extrinsic and intrinsic. Intrinsic
motivation is that behaviour which an individual produces because of the pleasant experiences associated
with the behaviour itself (Mosley, Pietri and Mosley Jnr, 2012). They stem from motivation that is
characteristic of the job itself. Examples are receiving positive recognition, appreciation, a sense of
achievement and meeting the challenge. According to Beer and Walton (2014), intrinsic rewards accrue
from performing the task itself, and may include the satisfaction of accomplishment or a sense of influence.
Mosley, Pietri and Mosley Jnr. (2012) describe extrinsic motivation as the behaviour performed, not for its
own sake, but for the consequences associated with it. Examples include salary, benefits and working
conditions. Extrinsic rewards come from the organization as money, perquisites or promotions from
supervisors and co- workers as recognition (Beer and Walton, 2014). Employees are motivated by a
combination of both factors at any given point in time (Riggio, 2013).
Industrial psychologists and management practitioners have long been interested in searching for factors
which influence motivation and productivity (Chung, 2013). According to Stanley (2012), in today's
marketplace, where companies seek a competitive edge, motivation is key for talent retention and
performance. No matter the economic environment, the goal is to create a workplace that is engaging and
motivating, where employees want to stay, grow and contribute their knowledge, experience and expertise.
Chung (2013) continues to state that in an effort to find the determinants of motivation and performance in
industry, industrial psychologists and managerial practitioners have developed a variety of theories of (and
approaches to) human motivation. Many psychologists have developed motivational theories in terms of
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human needs or motives, while most management scholars have developed managerial theories in terms of
incentives or inducements (Riggio, 2014)
Traditionally, the study of job performance has been based on two somewhat independent assumptions: that
performance can be understood in terms of the individual's ability to perform the tasks, and that
performance depends solely upon the level of motivation (Chung, 2013). Motivation is generally defined as
the psychological forces that determine the direction of a person's level of effort, as well as a person's
persistence in the face of obstacles (Stanley, 2012).
The responsibility for motivation is three-fold: it falls on the senior leadership, the direct manager and the
employee (Bhuvanaiah and Raya, 2015). Numerous factors are involved, from trust, engagement and
values (individual and organizational) to job satisfaction, achievement, acknowledgement and rewards.
Motivation is essential for working autonomously, as well as for collaboration and effective teamwork
(Stanley, 2012). Motivating employees for better performance encompasses these critical factors: employee
engagement, organizational vision and values, management acknowledgment and appreciation of work
well done, and overall authenticity of leadership (Neeraj, 2014).
Performance appraisal is one of the most important human resource (HR) practice, administered in
organizations by which supervisors evaluate the performance of subordinates (Neeraj, 2014). Aguinis
(2013) implies that the focus of the performance appraisal is measuring and improving the actual
performance of the employee and also the future potential of the employee; it aims to measure what an
employee does. Performance appraisal is generally regarded as one of the most crucial human resource
management functions (Judge and Ferris 2013), furthermore; a competent performance appraisal and
management system is an indispensable part of an organizations human resource management adequacies
(Guest, 1997). Employee reactions to appraisal in terms of perceived employee fairness, accuracy, and
satisfaction are important components of appraisal effectiveness because these perceived employee
reactions can motivate employees to improve their performance (Taylor, Tracy, Renard, Harrison and
Carroll 2015). That is, performance appraisal serves as a means for providing feedback that can result in
improved performance (Tornow, 2013).
Research in performance appraisal has demonstrated that performance appraisal characteristics (such as
appraisal purpose and source) can elicit positive employee reactions to performance appraisal and, which in
turn, can motivate employees to improve their performance (DeNisi and Pritchard 2016). Therefore, by
focusing the attention on performance, performance appraisal goes to the heart of personnel management
and sets out different objectives which are directly responsible for the Career development of employees
and continued growth and development of the organizations (Selvarajan and Cloninger, 2016).
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Employee turnover is a universal problem that all organizations around the world face (Stanley, 2012). One
of the factors that contribute to high employee turnover is demotivation (Mosley, Pietri and Mosley Jnr,
2012). There is a growing consensus among managers and leaders about the significance of combining
effective motivation incentives to encourage good performance (Cole and Kelly, 2011). In order for
organizations to meet their objectives, they must have a workforce that is motivated and works towards
achieving the said objectives (Steers and Porter, 2011).
Motivating employees is a challenge and keeping employees motivated an even greater challenge (Levy,
2013). 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 and Jones, 2013).
Employee motivation affects productivity and a poorly motivated labor 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 (Jobber and Lee, 2014). 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 behavior management (Nelson, 2013)
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 try hard to do
well, or more specifically what causes the arousal, direction, and persistence of voluntary actions that are
goal directed (Mitchell and Linden, 2012). 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. Many scholars have
postulated theories to try and understand what motivation is, and how it affects individuals ( Fincham and
Rhodes, 2015). One particularly significant theory was developed by Abraham Maslow and is known as the
hierarchy of needs (Riggio, 2014). At the core of Maslow’s theory is a hierarchy of five categories. They
are psychological, security, social, esteem and self-actualization needs (Kreitner and Kinicki, 2016).
Frederick Herzberg is another renowned motivation scholar. According to his two factor theory,
dissatisfaction results from the absence of hygiene factors which include salary and relationships with
others, while satisfaction results from the presence of motivating factors such as job opportunities and
recognition (Kinicki and Kreitner, 2016).
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Expectancy theory of motivation by V.H Vroom is a more recent theory. It says that people are most
motivated to seek results they value highly and think they can achieve. It is based on employees’
perceptions of rewards and whether they are able to achieve them (Certo, 2016).

1.2. STATEMENT OF THE PROBLEM

In a highly competitive, global environment, organizations are constantly under pressure to retain their
workforce (Deci, 2013). Highly skilled, reliable and experienced employees are a valuable asset for any
organization. It is evident that highly motivated employees are more likely to have high productivity.
However, according to Certo (2006), good performance is not as a result of motivation only, but also
includes ability i.e. skills, equipment, supplies and time.
Some organizations have been known to experience a high staff turnover despite offering above average
salaries (Aguinis, 2012). This tells us that money is not the only way to motivate employees. Additionally,
different people are motivated by different factors. It is important for managers and supervisors to
understand what motivates individual employees, and not assume a one-size-fits-all approach (George and
Jones, 2013).
An organization is only as strong as its workforce. Human resources need to be treated with great care,
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 whilst mitigating employee turnover and under-performance
(Steers and Porter, 2011).
With that in mind, I decided to carry out research in Benishagul Gumuz regional state selected bureaus,
into the motivational strategies was used and its effect on employee performance. It is the human resource
amongst other factors of production in the organization which really makes a distinction (Kreitner and
Kinicki, 2013). Production is considered as satisfactory when gross commission brought in by an agent is
high. It is human capability and commitment which ultimately differentiate successful organizations from
those that fail (Deci, 2013).
Evaluating motivational strategies and its impact on employees’ performance in Benishgul Gumuz regional
state selected bureaus should be critically elaborated in this study. However, the assessment of the
motivational strategies used on employees work performance in Benishgul Gumuz regional state has not
conducted by many researchers, this study trying to evaluate the problem and understand the level of the
problem relating motivation and its effect on employee performance.

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Most of the studies conducted on motivation are their effect on employee performance and productivity for
organization. And some conducts are focus on motivation and its impact on employee satisfaction. So that,
The researcher try to conduct in this finding the motivational strategies to be used and will bring effective
employee performance and job satisfaction leads high productivities in public sector.

1.3. OBJECTIVE OF THE STUDY

1.3.1. GENERAL OBJECTIVE OF THE STUDY

The general objective of this research is evaluation the motivational strategies and thier impact on
employee’s performance in case of Benishagul Gumuz regional state selected bureaus.

1.3.2. SPECIFIC OBJECTIVES OF THE STUDY

However, the specific objectives of the study are:
 To determine the methods used by public sectors to motivate employees,
 To understand the most acceptable and effective motivational strategies to be used,
 Analyse the importance of motivation on performance (productivity),
 Examining the attitude of management towards motivating of their employees,
 To provide necessary recommendations towards the betterment of the motivating
employees has positive impact on performance

1.3.3. HAYPOTHESIS OF THE STUDY

Hypothesis 1: Reward has a positive and significant influence on employee performance
Hypothesis 2: Recognition has a positive and significant effect on employee performance
Hypothesis 3: Promotion has a positive and significant influence on employee performance
Hypothesis 4: Salary has a positive and significant effect on employee performance
Hypothesis 5: Security has a positive and significant influence on employee performance
Hypothesis 6: Training and development has a positive and significant effect on employee performance
Hypothesis 7: Interesting work has a positive and significant influence on employee performance
Hypothesis 8: Working environment has a positive and significant effect on employee performance

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 1.4. SIGNIFICANCE OF THE STUDY
This study will be very important to bring out the information on the effective motivational strategies to be
applies in order to bring employee performance at Benishagul Gumuz regional state public sectors and
provide more understanding on motivating employees will increase the level of performance which leads
the organization to achieve their entire objectives. Criteria used in Motivating Staff, Importance of
motivations in relation to the performances will be well analysed. Furthermore, the study will add body of
literature on understanding the topic, not only to employees but also to different public sector regarding the
motivational strategies to be applied in their organization to maintain employees and bring their high
performance.
Also the study will help the organization to re-structure the motivations criteria, and do well the
motivations environments and be able to consider important factors in motivating employees. To managers
and administrative officers especially those who deals with human resources, helps in developing effective
motivational strategies in their organization to bring employees performance and increase level of
satisfaction.

1.5. SCOPE OF THE STUDY

This research design emphasized evaluating motivational strategies and its impact on employee
performance in case of selected bureau of BGRS. The selected bureaus are; bureaus of environment rural
land administration and investment, bureau of human resource and public service, bureau of agriculture,
bureau of health protection and bureau of education.

1.6. ORAGANISATION OF THE STUDY

This study will be presented in five chapters. The first chapter will contain the introduction, statement of
problem, general and specific objectives of the study, research questions and significance of the study.
The second chapter deals with various theories on motivation, the effective strategies were applied in
different period and organizations, which enhances employee performance and increased productivity in an
organization.
The third chapter describes the sampling technique used to determine the sample size, the population
studied, and the instrument used. The fourth chapter will be the analysis of data and the fifth chapter will
present the summary of findings and conclusions and recommendations based on the study.

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CHAPTER TWO

2. LITERATURE REVIEW

2.1. INTRODUCTION
This section will elaborate on the impact of motivational goal setting on performance of employees, effect
of financial incentives on employee performance and finally, the impact of recognition and reward
programs on performance.

2.2. MOTIVATION CONCEPTS

There are two concepts of motivation- Intrinsic and extrinsic motivation. Intrinsic motivation comes from
a person's interest in what he is doing (or going to do): an interest in the activity itself. Research has found
that it is usually associated with high educational achievement and enjoyment by students. Intrinsic
motivation has been explained by Fritz Heider's attribution theory, Bandura's work on self-efficacy and
Ryan and Deci's cognitive evaluation theory. Students are likely to be intrinsically motivated if they:
attribute their educational results to internal factors that they can control (e.g. the amount of effort they
put in),believe they can be effective agents in reaching desired goals (i.e. the results are not determined
by luck), Are interested in mastering a topic, rather than just rote-learning to achieve good grades.
Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but
coercion and threat of punishment are also common extrinsic motivations. While competing, the crowd
may cheer on the performer, which may motivate him or her to do well. Trophies are also extrinsic
incentives. Competition is in general extrinsic because it encourages the performer to win and beat
others, not to enjoy the intrinsic rewards of the activity. Social psychological research has indicated that
extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one
study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold
star for drawing pictures spent less time playing with the drawing materials in subsequent observations

11
than children who were assigned to an unexpected reward condition and to children who received no
extrinsic rewards. (Ryan and Deci's cognitive evaluation 2010)
Employee motivation is the level of energy, commitment and creativity that a company’s workers
apply to their jobs. In the increasing competitive business environment of recent years, finding ways to
motivate employees has become a pressing concern for many managers. In his book- ‘Principles of
Human Resources Management’, Ajakemo (2003) posits that motivation in an organization
encompasses forces both within and external to the individual member. He went further to say that
while individual differences undoubtedly establish the limits on human performance, motivation is also
clearly a powerful determinant of human behaviour. According to Nnadi (2010:10), motivation is
directed to mobilizing and utilizing the fullest potentials of the employees towards the attainment of
the goals and objectives of the organization. This is an essential role of the manager who has the
obligation to carry the employees along to improve on the level of their performance. Nnadi (2010:10),

2.3. MOTIVATION THEORIES

There are a number of different views as to what motivates workers. The most commonly held views or
theories are discussed below and have been developed over the last 100 years or so.

2.3.1. FREDERICK WINSLOW TAYLOR’S SCIENTIFIC MANAGEMENT THEORY

Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated mainly by pay.
His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so
need close supervision and control. Therefore managers should break down production into a series of
small tasks. Workers should then be given appropriate training and tools so they can work as efficiently as
possible on one set task. Workers are then paid according to the number of items they produce in a set
period of time- piece-rate pay. As a result workers are encouraged to work hard and maximise their
productivity. Taylor’s methods were widely adopted as businesses saw the benefits of increased
productivity levels and lower unit costs. The most notably advocate was Henry Ford who used them to
design the first ever production line, making Ford cars. This was the start of the era of mass production.
Taylor’s approach has close links with the concept of an autocratic management style (managers take all
the decisions and simply give orders to those below them) and Macgregor’s Theory X approach to workers
(workers are viewed as lazy and wish to avoid responsibility). However workers soon came to dislike
Taylor’s approach as they were only given boring, repetitive tasks to carry out and were being treated little
better than human machines. Firms could also afford to lay off workers as productivity levels increased.
12
This led to an increase in strikes and other forms of industrial action by dis-satisfied workers. Frederick
(Winslow Taylor (1856 – 1917)

2.3.2. ELTON MAYO’S HUMAN RELATIONS THEORY

Elton Mayo (1880 – 1949) believed that workers are not just concerned with money but could be
better motivated by having their social needs met whilst at work (something that Taylor ignored). He
introduced the Human Relation School of thought, which focused on managers taking more of an
interest in the workers, treating them as people who have worthwhile opinions and realising that
workers enjoy interacting together.
Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in
Chicago. He isolated two groups of women workers and studied the effect on their productivity levels
of changing factors such as lighting and working conditions. He expected to see productivity levels
decline as lighting or other conditions became progressively worse.
What he actually discovered surprised him: whatever the change in lighting or working conditions, the
productivity levels of the workers improved or remained the same. From this, Mayo concluded that
workers are best motivated by:
 Better communication between managers and workers (Hawthorne workers were consulted
over the experiments and also had the opportunity to give feedback)
 Greater manager involvement in employees working lives (Hawthorne workers responded
to the increased level of attention they were receiving)
 Working in groups or teams (Hawthorne workers did not previously regularly work in
teams) in practice therefore businesses should re-organise production to encourage greater use
of team working and introduce personnel departments to encourage greater manager
involvement in looking after employees’ interests. His theory most closely fits in with a
paternalistic style of management.

2.3.3. ABRAHAM MASLOW’S HEIRACHY OF NEEDS THEORY

Abraham Maslow (1908 – 1970) along with Frederick Herzberg (1923-) introduced the Neo-Human
Relations School in the 1950’s, which focused on the physiological needs of employees. Maslow put
forward a theory that there are five levels of human needs which employees need to have fulfilled at
work.

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All of the needs are structured into a hierarchy and only once a lower level of need has been fully met,
would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.
For example a person who is dying of hunger will be motivated to achieve a basic wage in order to
buy food before worrying about having a secure job contract or the respect of others. A business
should therefore offer different incentives to workers in order to help them fulfil each need in turn and
progress up the hierarchy. Managers should also recognise that workers are not all motivated in the
same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a
slightly different set of incentives from worker to worker.

The five basic needs according to Maslow are:

1 Physiological Needs- These consist of such physical requirements as food, clothing and shelter,
water, sex sleep etc. So, once the physiological needs are reasonably meet, a person’s desire for a
higher order need arises. The organization can help employees meet these needs through good salaries
and wages.
2. Safety and security Needs- These are the needs to be free from physical danger and fear of loss
of job, property, tools etc. That is the desire for stability and the absence of pain, orderly society,
endurance, retirement programmes, fringe benefits and disbursement of safety equipment to employees
working in hazardous areas.
3. Social/Love Needs- People are social beings and need to belong and would want to be
accepted by others. They are often satisfied through social interaction in which people give and
receive friendship and affection. Informal groups play a key role in satisfying these needs.
4. Esteem Needs- Once people begin to satisfy the needs to belong, they want to be held in esteem
both by themselves and others. These are the individual’s desire to receive recognition from others.
This leads to the feeling of self-confidence and prestige.
5. Self-actualization Needs- this is the desire to feel a sense of self-fulfilment, to realize one’s
potentialities to full. This is the highest level and has lower priority.

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 SOURCE: Abraham Maslow’s Hierarchy of Needs (1943)

2.3.4. FREDERICK HERZBERG’S TWO FACTOR THEORY

Frederick Herzberg (1923) had close links with Maslow and believed in a two- factor theory of
motivation. He argued that there were certain factors that a business could introduce that would
directly motivate employees to work harder (Motivators).

However there were also factors that would de-motivate an employee if not present but would not
in themselves actually motivate employees to work harder (Hygiene factors) Motivators are more
concerned with the actual job itself. For instance how interesting the work is and how much
opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors
which ‘surround the job’ rather than the job itself. For example a worker will only turn up to work
if a business has provided a reasonable level of pay and safe working conditions but these factors
will not make him work harder at his job once he is there. Importantly Herzberg viewed pay as a
hygiene factor which is in direct contrast to Taylor who viewed pay and piece-rate in particular.

Herzberg believed that businesses should motivate employees by adopting a democratic approach
to management and by improving the nature and content of the actual job through certain methods.
Some of the methods managers could use to achieve this are:

 Job enlargement – workers being given a greater variety of tasks to perform (not
necessarily more challenging) which should make the work more interesting.

15
  Job enrichment - involves workers being given a wider range of more complex,
interesting and challenging tasks surrounding a complete unit of work. This should give a
greater sense of achievement.

 Empowerment means delegating more power to employees to make their own decisions
over areas of their working life. Motivator or intrinsic factors, such as achievement and
recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job
security, produce job dissatisfaction.

Frederick Herz berg’s two factor theory of motivation

SOUCE: Frederick Herzberg (1966)

Herzberg therefore bemoans the situation whereby managers waste their precious time and resources
improving upon the hygiene factors that have ceased to be motivators instead of applying the real
motivators. It is important, however to add that the hygiene factors must be in place or must be applied
first to blot out dissatisfaction before the real motivators or intangibles could be applied to take the
worker and the organization to a new height (Eboh,2002: 133).

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 2.3.5. DOUGLAS MCGREGOR’S THEORY OF X &Y
Douglas McGregor in his book, ‘The Human Side of Enterprise’ published in 1960 has examined
theories on behaviour of individuals at work, and he has formulated two models which he calls Theory
X and Y.

Theory X Assumptions:

The average human being has an inherent dislike of work and will avoid it if he can.
 Because of their dislike for work, most people must be controlled and threatened before
they will work hard enough.
 The average human being prefers to be directed, dislikes responsibility, is unambiguous,
and desires security above everything.
 These assumptions lie behind most organizational principles today, and give rise both to
‘tough’ management with punishments and tight controls, and ‘soft’ management which
aims at harmony at work.
But these are wrong because man needs more than financial rewards at work; he also needs some
deeper higher order motivation-the opportunity to fulfil himself. Theory X managers do not give
their staff this opportunity so that the employees behave in the expected fashion.
Theory Y Assumptions
 The expenditure of physical and mental efforts in work is as natural as play or rest.
 Control and punishment are not the only ways to make people work, man will direct
himself if he is committed to the aims of the organization.
 If a job is satisfying, then the result will be commitment to the organization.
 The average man learns, under proper conditions, not only to accept but to seek
responsibility.
 Imagination, creativity, and ingenuity can be used to solve work problems by a large
number of employees.
 Under the conditions of modern industrial life, the intellectual potentialities of the average
man are only partial utilized (McGregor, 1960)

2.3.6. VROOM’S VALENCE – EXPECTANCY THEORY

An argument against Maslow’s needs theory that tries to induce a new theory is by Victor Vroom.

17
Vroom's theory is based on the belief that employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964). Rewards may be either positive or negative. The
more positive the reward the more likely the employee will be highly motivated. Conversely, the
more negative the reward the less likely the employee will be motivated. Expectancy is the
perception that a particular outcome will occur as a result of certain behaviour while valence is
concerned with how much value an individual places on a specific outcome. To him, motivation is
produced by the anticipated worth of an action to a person and valence is the person’s perception
of the probability that his goal would be achieved. Motivation = valence x expectancy.

2.3.7. ADAM’S EQUITY THEORY

Adams' equity theory (1963) states that employees strive for equity between themselves and other
workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to other
employee outcomes over inputs (Adams, 1965). Adams' Equity Theory model therefore extends
beyond the individual self, and incorporates influence and comparison of other people's situations -
for example colleagues and friends - in forming a comparative view and awareness of Equity,
which commonly manifests as a sense of what is fair. When people feel fairly or advantageously
treated they are more likely to be motivated; when they feel unfairly treated they are highly prone
to feelings of disaffection and de-motivation. The way that people measure this sense of fairness is
at the heart of Equity Theory.
Equity, and thereby the motivational situation we might seek to assess using the model, is not
dependent on the extent to which a person believes reward exceeds effort, nor even necessarily on
the belief that reward exceeds effort at all. Rather, Equity, and the sense of fairness which
commonly underpins motivation, is dependent on the comparison a person makes between his or
her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a
similar situation. Adams called personal efforts and rewards and other similar 'give and take' issues
at work respectively 'inputs' and 'outputs'. Inputs are logically what we give or put into our work.
Outputs are everything we take out in return. These terms help emphasize that what people put into
their work includes many factors besides working hours, and that what people receive from their
work includes many things aside from money. Adams used the term 'referent' others to describe the
reference points or people with whom we compare our own situation, which is the pivotal part of
the theory. Adams Equity Theory goes beyond - and is quite different from merely assessing effort
and reward. Equity Theory adds a crucial additional perspective of comparison with 'referent'
18
 others (people we consider in a similar situation). Equity theory thus helps explain why pay and
conditions alone do not determine motivation.

Ada m’s Equity Theory:

Inputs Equity dependent on comparing outputs
own ratio of input/output with
ratios of 'referent' others
Inputs are typically: effort, loyalty, People need to feel that there is a Outputs are typically all financial
had work, salary, commitment, skill fair balance between inputs and rewards - pay, salary, expenses,
ability, adaptability, flexibility outputs. Crucially fairness is perks, benefits, pension
bonus tolerance, determination, measured by comparing one's arrangements, bonus and
heart and soul, enthusiasm, trust in own balance or ratio between commission - plus intangibles -
our boss and superiors, support of inputs and outputs, with recognition, reputation, praise and
colleagues and subordinates the ratio enjoyed or endured by thanks, interest, responsibility,
personal sacrifice, etc. relevant ('referent') others. stimulus, travel, training,
development, sense of achievement
and advancement, promotion, etc.

SOURCE: Allan Chapman (1995)

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 2.3.8. SKINNER’S REINFORCEMENT THEORY
Skinner's theory (1953) simply states those employees' behaviours that lead to positive outcomes
will be repeated and behaviours that lead to negative outcomes will not be repeated. While
positive reinforcement is the strengthening of behaviour by the application of some event (e.g.,
praise after some behaviour is performed), negative reinforcement is the strengthening of
behaviour by the removal or avoidance of some aversive event Both types of reinforcement
strengthen behaviour, or increase the probability of a behaviour reoccurring; the difference is in
whether the reinforcing event is something applied (positive reinforcement) or something removed
or avoided (negative reinforcement). Punishment and extinction have the effect of weakening
behaviour, or decreasing the future probability of a behaviour’s occurrence, by the application of
an aversive stimulus/event (positive punishment or punishment by contingent stimulation),
removal of a desirable stimulus (negative punishment or punishment by contingent withdrawal), or
the absence of a rewarding stimulus, which causes the behaviour to stop (extinction). Managers
should therefore positively reinforce employee behaviours that lead to positive Outcomes and
should negatively reinforce employee behaviour that leads to negative outcomes.

2.3.9. MCCLELLAND’S NEEDS THEORY OF MOTIVATION

David C. McClelland identified three types of basic motivating needs. He classified these as need
for power (n/pow), need for affiliation (n/Aff), and need for achievement (n/ACH). These three
needs (drives) power, affiliation and achievement- are of special relevance to management, since
all must be recognized to make an enterprise work well and need for achievement is paramount
importance because in any organization, every department it represent groups of individuals
working together to achieve goals.
 Need for power- people with high needs for power have a great concern for exercising
influence and control. Such individual generally are seeking positions of leadership. They
are forceful, outspoken, hard-headed and demanding, and they enjoy teaching and public
speaking.
 Need for Affiliation- People with need for affiliation usually derive pleasure from being
loved and tend to avoid the pain of being rejected by a social group. They are concerned
with maintaining pleasant social relationships to enjoy sense of intimacy and
understanding, to be ready to console and help others in trouble and to enjoy friendly
interaction with others.
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  Need for Achievement- people with high need for achievement have intense desire for
success and an equally intense fear of failure. They want challenge, set moderately difficult
but not impossible goals for themselves, to a realistic approach to risk. Prefer to assume
personnel responsibility to get a job done.

2.4. GOAL SETTING

A goal is the aim of an action or task that a person consciously desires to achieve or obtain (Locke and
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 (Buchanan, 2012).
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 and Latham, 2002; 2006) . Goal
setting is a cognitive theory of motivation based on the premise that people have needs that can be thought
of as specific outcomes or goals they hope to obtain (Locke and Latham, 1990). The theory started with the
initial work on levels of aspiration developed 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 wellestablished 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).
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 (Skinner, 2010). 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. These include goal acceptance and commitment, goal specificity, goal
21
difficulty, and feedback (Redmond, 2015). Goal-setting theory states that for employees to be motivated,
goals must be clear, specific, attainable and whenever possible, quantified (Riggio, 2014). A goal is defined
simply as what the individual is consciously trying to do (Lunenberg, 2011). Newstrom (2013) outlines
goals as targets and objectives for future performance that help focus employees 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 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-Mejia, Balkin, and Cardy, 2015).

2.4.1. GOAL ACCEPTANCE / GOAL COMMITMENT

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 (Locke
and Latham, 2002). Bipp and Kleingeld (2011) define goal commitment as one's attachment to or
determination to reach a goal and the cognitive, affective, and behavioral aspects of the process of goal
striving. Locke and Latham (2002) 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 and Latham,
2002). Simply assigning goals to organization members may not result in their commitment to those goals,
especially if the goal will be difficult to accomplish (Lunenberg, 2011). Commitment is most important and
relevant when goals are challenging (Locke and Latham, 2006). 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 in the goal-setting process tends to enhance goal commitment (Lunenberg, 2011).
Two primary factors that help to enhance goal commitment are importance and self-efficacy (Locke and
Latham, 2002). Self-efficacy is the belief an individual holds about his or her capability to succeed and
correlates with both higher goals and stronger commitment to them (Latham, 2007). According to Locke
and Latham (2006), self-efficacy greatly enhances goal commitment and there are three ways leaders can
raise the self-efficacy of their subordinates: one, by ensuring adequate training to increase mastery that
provides success experiences; two, by role modelling or finding models with whom the person can identify,
22
and three, through persuasive communication that expresses confidence that the person can attain the goal
(Latham, 2007).
Importance refers to the factors that make attaining a goal important, including the expected outcomes
(Locke and Latham, 2002). 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 (Fried and Slowik, 2004).

2.4.2. GOAL DIFFICULTY /TASK COMPLEXITY/

The second moderator of goal setting is goal difficulty/task complexity. Difficult, 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 and Kleingeld , 2011). Goal theory suggests that it is the goal itself that provides the driving
force (Cole and Kelly, 2011). Goals should be set high enough to encourage high performance but low
enough to be attainable (Latham, 2007) The key point is that a goal must be difficult as well as specific for
it to raise performance (Lunenberg, 2011). According to Kurose (2013), performance increases with the
level of goal difficulty, providing the individual working to attain the goal is committed to achieving it and
has the ability to do so.
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 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 (Locke and Latham, 2002).

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). Without feedback, people are oblivious of their progression or regression; it also
becomes difficult to measure the level of effort needed to pursue the goal effectively (Sorrentino, 2006).
Feedback is most effective when it is directed at setting more challenging goals (Locke and Latham, 2002)
because it allows for individuals and teams to identify any weaknesses in their current goals, which allows
modifications to be made (Smith and Hitt, 2005).

23
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, while negative feedback increases motivation when
provided in relation to obligatory goals (Van-Dijk and Kluger, 2004). 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 workers job performance and ability to become more innovative and creative on the job
(Fincham and Rhodes, 2015).

2.5. FINANCIAL INCENTIVES

Money is the principal encouragement and no other incentive comes close to it with respect to its
influential value (Locke and Latham, 1990). Money has the dominancy to magnetize, retain and motivate
individuals towards higher performance (Stanley, 2012). People do not work for free; employees want to be
compensated for the work that they do. Employees must be motivated through adequate incentives plans
and reward systems and this will invariably encourage them to be proactive and have right attitude to work,
thereby promote organizational productivity (Armstrong, 2007).
McChilloh (2001), posits that financial incentives mean any inducement involving the payment of money
and reduction in price paid for goods or services or any award of credit. Financial incentives and rewards
positively effect on employees commitment or loyalty. Employees stay in an organization because the
benefits of being part of an organization far outweigh the cost of leaving the organization (Saleem, 2011).
The fact that employees fear losing their job makes money an extremely effective motivator because it is
indispensable for survival in an economy (Cole, 2000).
The major objective of a manager is to ensure that business and corporate objectives are realized. This is
only possible if employees, who are the key assets of an organization, have a positive attitude towards their
organizations (Banjoka, 1996). To keep the pace of achieving goals organizations try to hire competent
human resource. Employing competent human resource, organizations have to offer better working
environment, market based salaries, job security, empowerment etc (Hersberg, 2009).
While there are a variety of ways to compensate a sales force, most companies use three main methods:
straight salary, straight commissions and a combination of salary and commissions (Wiese and Coetzee,
2013). Besides salary and commission, financial compensation could also include reimbursement of sales
expenses and transportation (Wiese and Coetzee, 2013). Fredrick Taylor has described money as the most
24
fundamental factor in motivating the industrial workers’ to attain greater productivity (Steers and Porter,
2011). It is therefore imperative that organizations think critically about the remuneration packages that
they offer to their employees.
Financial incentives enhance the employment relationship because it creates the basis for high levels of
commitment and therefore, firms must develop strategies that include financial incentives and rewards for
example promotion, bonus, profit sharing or gain sharing and employees stock ownership etc (Ismail,
Guatleng, Chhekiong, and Ibrahim, 2009). In fact, some authors assert that the primary aim of incentives is
to enhance extrinsic motivation by satisfying an individual employee’s needs indirectly through means of
pay and bonuses (Anthony and Govindarajan, 2007). A natural way to motivate workers at any level is to
offer them financial incentives; linking pay to performance improves the motivation value of money
(Kinicki and Kreitner, 2016). Many jobs require financial rewards to motivate employees and many people
primarily work to make money or attain the recognition denoted by financial rewards (Giancola, 2011).
Using financial incentives to motivate people fits principles of positive reinforcement and punishment
(Aguinis, 2012). A useful principle of using financial incentives to motivate workers at all levels is to
investigate which incentives are most appealing to groups and individuals (Denisi and Pritchard, 2016).
Many workers are extrinsically motivated by salaries and benefits while others are intrinsically motivated
by recognition and rewards or better health benefits (Giancola, 2011).
According to Kinicki and Kreitner (2016), financial incentives are more effective when they are linked to
(or contingent upon) good performance. A key principle is for managers to explain clearly to employees
how performance is linked to pay, including the fact that unethical behavior will not be tolerated as a way
of attaining a performance goal (Steers and Porter, 2011). An increasing effort of managers and
compensation specialists to link pay to performance supports many business strategies- workers receive
financial incentives for performing in ways consistent with the business strategy (Aguinis, 2012).
Literature has shown that remuneration issues play a critical role in organizations; however, there has been
little advice that companies could use in terms of when certain incentive system designs have been more
(or less) appropriate (Dubrin, 2012). The use of pay-forperformance plans is growing (Kepner, Wyoski,
McKenzie and Ballentine, 2003) and there is a trend to increasing variable pay as a percentage of total
remuneration (McChilloh, 2001). Compensation is one of the physical needs that influence motivation
which in turn will affect the employee performance (Hersberg, 2009). Compensation has a big influence in
the recruitment of employees, motivation, productivity and employee turnover (Steers and Porter, 2011).
Financial incentives are largely regarded as an adequate means to motivate employees and to improve their
performance (Smith and Hitt, 2005).
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 2.5.1. MOTIVATION
Motivation is a critical ingredient in employee performance and productivity. Even when people have the
right skills, clear work objectives, and a supportive work environment, they would not get the job done
without ample motivation to meet those work objectives (Mullins, 2006). He elaborates that motivated
employees are enthusiastic to exert a certain level of effort (intensity), for a certain amount of time
(persistence), toward a distinct goal or direction (Mullins, 2006).
With the prevailing uncertainty in the economy, coupled with an emphasis on customer satisfaction and
long-term business relations, there is revived interest in the motivation of sales representatives. Social
science literature, especially in organizational behaviour and sales management, has long recognized the
crucial importance of rewards and incentives as a means of motivating employees (Mehta, Anderson and
Dubinsky, 2000). Employee motivation affects productivity, and part of a sales manager’s job is to channel
subordinates’ motivation towards the accomplishment of the organization’s vision or goals (Bhuvanaiah
and Raya, 2015). A poorly motivated sales force will be expensive to the organization in terms of decreased
productivity and performance, excessive staff turnover, increased expenses, higher use of the sales
manager’s time and a negative effect on the morale of colleagues (Jobber and Lee, 1994). Companies need
to ensure that their sales forces are highly productive and motivated. As a result, they try to improve the
productivity of their sales force through better selection, training, motivation and compensation. Of these,
compensation and incentive or reward schemes play an important role in motivating sales people to
perform better (Abratt and Klein 1999).
Motivation is central to any discussion of work behavior because it is believed that it has a direct link to
good work performance; it is assumed that the motivated worker is the productive worker (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 (Chonko,
Tanner and Weeks 1992). Motivation and learning theories suggest that pay should be based on
performance (Georges and Jones, 2013). However, having highly motivated workers does not
automatically lead to high levels of productivity- the work dynamic is more complex than that (Riggio,
2014). Therefore, a manager must approach a productivity problem very carefully- a detailed assessment of
all other variables that can affect productivity must first be undertaken (Aguinis, 2012). The adoption of a
performance management system can be seen as an attempt to integrate HRM processes with strategy
(Cole and Kelly, 2011). Appraisals are used to ensure an individual’s performance is contributing to
business goals and managers are encouraged to combine the perspectives of several models to create a
complete motivational environment for their employees (Newstrom 2011; Riggio, 2014).
26
Fredrick Herzberg developed a theory of motivation that highlighted the role of job satisfaction in
determining worker motivation (Riggio, 2014). He proposed that the determinants of job satisfaction were
different from those of job dissatisfaction. The factors giving rise to satisfaction were called motivators
(e.g. recognition, responsibility and achievement), while those giving rise to dissatisfaction were called
hygiene factors (e.g. salary, company policy and working conditions) (Cole and Kelly, 2011).
Motivators are things that lead employees to be satisfied and motivated by their jobs and have to do with
job content, they are inherent in the work itself: Their presence results in job satisfaction and motivation,
but their absence results only in neutrality (Levy, 2013). Motivators include intrinsic factors such as
possibility for promotion, demanding work, recognition, achievement and responsibility (Stanley, 2012).
Motivator factors operate only to increase job satisfaction (Hansen, Smith and 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 results in job dissatisfaction, but their absence leads not to job
satisfaction or motivation- only to neutrality (Chung, 2013). Hygiene factors, also called dissatisfiers,
operate only to decrease job satisfaction or create job dissatisfaction (Hansen, Smith and Hansen, 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 (Giancola, 2011).

2.6. MOTIVATIONAL STRATEGIES

Motivation has been defined as all those inner-striving conditions described as wishes, desires,
drives, etc. An unsatisfied need is the starting point in the process of motivation. A deficiency of
something within the individual is the first link in the chain of events leading to behaviour. The
unsatisfied need cause tension within the individual to engage in some kind of behaviour to satisfy
the need and thereby reduce the tension (Nwatu Jnr. 2010:93) He further opined that since
behaviour is directed towards need-satisfaction, it becomes strategically important to know what
people really desire from a job, if they are to be motivated.
It is also pertinent to note that motivation is a personal thing. Because of people’s differing needs,
the incentives, which appeal to and work with one employee may be almost useless and less
successful with another. Thus these two considerations, knowledge of people needed, and of
incentives are important for managerial and administrative decision making in the area of human
motivation. It attempts to account for the drives and wants of an individual rather than just
focusing on the individual’s action.
27
There are several motivational strategies which are however, not exhaustive in this work.
Managers should understand the advantages and disadvantages of each in order to use them to
plan and exert workers into better work performance. Some of the strategies are listed below:
However, they are not necessarily listed in order of priority or effectiveness.

1. Money (Good wages/salaries)

Good salaries and wages are very important elements in motivating workers. The salary/wage should
be equitable to the demands of the job and commensurate with what others of the same grade receive
elsewhere. Anikeze (2007) noted that, ‘The problem with most wages and salaries in developing
nations like Nigeria is that they are not large enough to motivate the receiver’
2. Team work

Skilful managers form work groups when possible with the hope that peer pressure will induce high
levels of performance. This is reported to be an effective means of motivation because individuals
appear to be more concerned with living up to the expectations of fellow workers rather than the
expectations of their bosses. Complexities arise when a group conforms to a level of achievement
rather than a high performance level, or when a particular work setting makes it difficult to
structure group activities.

3. Job Security

Job security falls under the basic needs of every worker. This includes both physical and
psychological securities. Organizational management can effectively motivate workers for better
result by providing working conditions that conjure an image of physical and psychological security
in the minds of the workers.
4. Personal involvement
Workers who are allowed to set their own performance levels will usually try to meet their own
expectations. It is important to have the worker make a verbal commitment regarding their anticipated
achievement levels. Also, individuals and groups are most likely to attain goals when they make a
public commitment to do so. This may be due to the fact that such commitments are promises and
most people view themselves as persons who keep their word.
The chief problem with this strategy results from workers who maintain a low self- image. At this
point, managers are faced with the problem of motivating a worker to think positively about himself
28
so his self-image will correlate with high performance. On the whole, this strategy is effective, but
it might demand a manager to reinforce an employee's strengths first.
5. Work Enhancement
With this method, managers structure jobs so the work provides fulfilment. The experiment in job
enrichment underway at the Saab-Volvo automobile plant in Sweden illustrates rather nicely how job
enrichment works. They use a team-assembly concept in which workers rotate the tasks required for
building an automobile. Basically, the entire group is responsible for assembling the complete
automobile. This is in contrast to the monotonous production system which now characterizes auto
manufacturing in the United State.
One of the difficulties with this type of motivational strategy is that workers want to be
compensated adequately for the work they do. When employees are expected to perform more
complicated job skills, they expect increased compensation. When this does not happen, the work
may no longer offer an internal incentive.
6. Rewards
This type of planning is based on the behaviour modification approach that workers will increase or
repeat the desired work performance if they are given rewards. It is also hoped that poor performance
will be eradicated once the subordinate comprehends the relationship between commendable
performance and rewards.
Generally, the reward approach is successful but it is not without its complications. Individuals are
unique and maintain different value systems. What may be considered rewarding to one worker
may be no incentive whatsoever to the next employee.
Some people prefer pay increases. Others seek promotions. Still others may desire new rugs on
their office floors. Establishing meaningful incentives for performance with individuals can be a
difficult task for a manager.
7. Promotion
There should be regular and periodic promotion exercise in an organization. Desire for progressive or
upward movement is a natural aspect of man. Every worker would like to see this happen in his
organization. Promotion is both in terms of money, and recognition of a worker’s services, importance
or performance.
8. Mutual Exchange
Sometimes, managers promise special privileges for the exchange of desired work performance. A
supervisor may allow a worker to leave work early if he completes his task for the day, or he may be
29
allowed a day away from the job if he finishes a required project within a specified time. Mutual
exchange is a frequently used strategy, but not necessarily the most effective. Problems arise when the
employee feels the exchange is out of balance, or when he cannot come to an agreement with his
supervisor as to what would be a fair exchange.
9. Competitive measures

In this design, workers compete against others for certain bonuses or prizes. Banners, plaques,
vacations, and free dinners are examples of some rewards offered. This strategy is often used for sales
incentives. Difficulties emerge when managers design contests that do not offer a fair opportunity
to achieve the specified goals. If the same individuals and groups consistently win the prizes due
to the contest design; interest in competing is likely to grow lukewarm for many of the workers.
Also, competition does not promote a cooperative strategy and work performance can actually be
sabotaged due to the hostility that competition can trigger.
10. Provision of infrastructure
Good infrastructural facilities in the form of good communication network, transport facilities,
adequate supply of electricity and water lead to high morale and productivity. When these
facilities are not available, the worker is affected in two ways: physical incapacity and
psychological inhibition.
11. Punishment and Fear
Although frequently used, the least effective method of motivating a worker is with a negative
consequence, such as a verbal dressing-down, suspension, or the loss of the job. Punishment may
achieve immediate results, but it does not accomplish internal motivation for several reasons. First,
adults are not inclined to remain in employment where they are threatened and intimidated. Second,
workers who are backed by a strong union may dissolve the threat with a higher level of authority.
Third, scares and intimidation can create animosity towards a superior and employees may respond
with hostility and subversion.
Another problem with the fear strategy is that it creates a punitive climate in which individuals are
afraid of being different from or of offending others. This particular situation has a tendency to
diminish creativity and lead to intellectual stagnation.

30
 2.7. PERFORMANCE
Cole and Kelly (2011) describe performance as a continuous process for improving the performance of
individuals by aligning actual performance with that desired (and with the strategic goals of the
organization) through a variety of means such as standard-setting, appraisal and evaluation both informally,
day-to-day, and formally/systematically through appraisal interviews and goal-setting. Job performance is
defined as the value of the set of employee behaviors that contribute, either positively or negatively to
organizational goal accomplishment while task performance are employee behaviors that are directly
involved in the transformation of organizational resources into the goods or services that the organization
produces (Colquitt, Lepine and Wesson, 2014).

2.8. JOB SATISFACTION

Job satisfaction is how fulfilled a person is from the job that they perform. It is linked with performance,
motivation, absenteeism, mental/physical health and general life satisfaction of a particular employee
(Saleem, 2011). Several Job Satisfaction studies have found that Job Satisfaction has a strong impact on
Job performance, nonappearance, turnover, and psychological disorders (Storey, 2013). A number of
research findings as cited by (Ismail, Guatleng, Chhekiong, & Ibrahim, 2009) have suggested a positive
relationship between motivation and job satisfaction to the extent that Kreitner and Kinicki (2001), suggest
that managers can potentially enhance employee motivation through employee job satisfaction. Jepsen
(2003) posits that almost every worker tries to find satisfaction in his work, especially if the job matches
his occupational choices he will nearly attain job satisfaction.
Herzberg’s motivation theory’s emphasis that only motivation factors have the probability of raising job
satisfaction. In comparison to motivation factors, hygiene factors can only be used to preclude
dissatisfaction and can therefore not be used as incentives to create satisfaction (Steers and Porter, 2011).
An employee may therefore very well be satisfied with his/her overall working conditions, but not
especially motivated to work and perform to his/her full potential (Storey, 2013).
Currently, there seems to be some reconciliation that the critical thread that differentiates employees
motivated behaviors from other behavior is that it is goal directed behavior (Basset-Jones and Lloyd,
2005). Bandura (2003) argues that the core of motivating individuals lays in the goal directed aspect of
behavior. Jones (2012) suggested “motivation is concern with how behavior gets started, is energized, is
sustained, is directed, is stopped and what kind of subjective re-action is present in the organization while
this is going on. Bassett-Jones and Lloyd (2005) stipulate that the “ content theorist led by Herzberg,
assumed a more complex interaction between both internal and external factors, and explored the
31
circumstances in which individuals respond to different internal and external stimuli. Bandura (2000)
affirms that the function of employee motivation begins because of tension within demands of an employee
and thereafter, there is a pursuit within the company or within employee to fulfill his/her desires. When the
employee is satisfied with his financial motivation he/she redefines his/her desires and needs and the
process is started again (BassetJones and Lloyd, 2005).

2.9. RECOGNITION AND REWARDS

The type of reward practices used by an organization plays an important role in motivating employees to
perform (Beer and Walton, 2014). This ultimately affects the performance of the organization (Hansen,
Smith and Hansen, 2012). Based on decades of research on operant conditioning and behavior
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 (Giancola, 2011).
The hygiene-motivator distinction clearly maps onto the reward-recognition distinction. In fact, Herzberg
himself made this point: In his motivation–hygiene theory, Herzberg stated that work motivation is largely
influenced by the extent to which a job is intrinsically challenging and provides opportunities for
recognition and reinforcement (Giancola, 2011). In other words, reward represents the application of
hygiene factors, and recognition represents the application of motivator factors (Allen and Helms, 2011).
Positive reinforcement for workers often takes the form of tangible rewards as well as recognition and
praise. A combination of recognition and rewards, along with informal praise, is likely to be the most
motivational (Kinicki and Kreitner, 2016). In his popular book 1001 Ways to Reward Employees, Bob
Nelson as cited by Giancola (2011), concluded that rewards must have a positive impact on performance,
and he found that the most desired form of reward by employees was verbal appreciation or praise by their
immediate boss.
Many organizations have formal recognition and reward programs and these recognition programs usually
include rewards because good performers are recognized with rewards (Deci, 2013). Among the rewards
given are plaques, gift cards, jewelry and on the spot cast awards (Allen and Helms, 2011). More
sophisticated recognition programs recognize behavior that supports organizational values, so the awards
are a reminder of what is important to the company (Aguinis, 2012). Teams, as well as individuals should
receive recognition to enhance motivation (Riggio, 2014). As with most motivation and retention programs,
recognition and rewards must be carefully planned, otherwise they may backfire and lose money for the
company (Kinicki and Kreitner, 2016).
32
Increasingly, it has become clear that the battle for talent involves much more than highly effective,
strategically designed compensation and benefit programs. While these programs remain critical, the most
successful companies have realized that they must make a much broader look at the factors involved in
attraction, retention, and motivation (Giancola, 2011) And they must deploy all of the factors—including
compensation and benefits—to their strategic advantage (Hansen, Smith and Hansen, 2012).
Praising workers for good performance is a major type of informal recognition (Allen and Helms, 2011).
Although praise costs no money and only requires a few moments of time, many workers feel that they do
not receive enough praise (Aguinis, 2012) managers therefore have a good opportunity to increase
motivation by the simple act of praising good deeds (Kinicki and Kreitner, 2016).
Rewards reflect both personal and institutional goals, and stand to assist an understanding of what directs
both individuals’ engagement and workplace affordances (Allen and Helms, 2011). In this way, rewards
capture the goals for both workplace and personal trajectories, and permit a consideration of the degree to
which there is consonance between these trajectories (Judge and Ferris, 2013). Hence they richly inform
the relational interdependence between the personal and social. In general, there seems to be agreement
that recognition and rewards are important motivators for individual and for organizational performance
(Hansen, Smith and Hansen, 2012).

2.9.1. RECOGNITION
According to Daniel and Metcalf (2009), recognition is a return on an employee's effort and dedication at
work, as well as his or her results. An employee recognition program can be a great morale-building tool
for any organization, whether large or small. An effective recognition program can lead to innovation,
higher productivity and greater job satisfaction for the workers (Beer and Walton, 2014). Employee
recognition programs could include several levels of recognition, from a simple Certificate of Appreciation
to Employee of the Month to awards given on the division and companywide level, recognition should be
provided to those who exceed expectations and earn the award (Steers and Porter, 2011). Recognition is
one of the strong motivation factors; employees feel comfortable when they are praised and recognized
(Armstrong, 2007).
No resource is more critical to an organization’s success than its human resources are (Denisi and
Pritchard, 2016). The concept of reward and recognition has gained much importance in the current times
and has captured the attention of organizational managers and researchers equally (Mandal and Dalal,
2006). Consequently, different organizations use reward and recognition as motivational techniques for
employee’s better performance (Beer and Walton, 2014). These reward and recognition are provided in the
33
form of monetary and non-monetary benefits for certain desirable behaviors (Storey, 2013). Employees
don't only want a good salary and benefit package, they also want to be valued and appreciated for their
work (Wiese and Coetzee, 2013). When employees feel recognized and involved, they're much less likely
to worry about money and security (Elton & Gostick, 2006).
A recognition program can help employers meet their organizational goals by helping attract and retain
high-performing employees. Daniel and Metcalf (2009) reported that companies are aligning their
employee recognition programs directly to the strategies of the organization due to the following nine
reasons listed according to order of importance a) Create a positive work environment b) Creating a culture
of recognition c) Motivating high performance d) Reinforcing desired behaviors e) Increasing employee
morale f) Supporting the organization mission and vision g) Increasing retention and decreasing turnover h)
Encourage loyalty and i) Supporting a culture change. Other reasons for adapting a recognition program
included: reducing costs, retaining key employees, increasing employee productivity, competitiveness,
revenues and profitability, improving quality, safety and customer service, and lowering stress,
absenteeism, and turnover (Daniel and Metcalf, 2009).
All organizations experience turnover and therefore retention of valuable employees is critical for the
success of any business. The Jackson Organization (Etlon and Gostick, 2006), an independent research
firm, indicates that investing in recognizing employee excellence is strongly associated with the best
financial performance. Companies that have implemented employee recognition programs enjoy a return
on equity that is more than triple the return of companies who don't implement recognition programs (Elton
and Gostick, 2006).

2.9.2. REWARDS
The most important human resource management issue nowadays is rewards structure (Milkovich and
Newman, 2008). Bowen (2002) describes reward as something which is given or received in return for a
success or achievement. Allen and Helms (2002) describe reward as a material or financial expression of
appreciation that is conditional on results.
Employees who are effective and efficient are likely to be confined if they are not motivated to perform
(Sajuyigbe, Olaoye, and Adeyemi, 2013). Mendonca, (2002) sees reward and compensation as a system
that is based on the expectancy theory, which suggests that employees are more likely to be motivated to
perform when they perceive there is a strong link between their performance and the reward they receive.
Reward is a critical element that motivates employees to perform as expected (Armstrong, 2007).
Employee performance plays crucial role in an organization’s performance. Further, in performance and
34
growth of organization, rewards employees play an important role (Aguinis, 2012). Rewards are focal
device to improve motivation among employees and no organization can imagine reaching their goals and
objectives without motivating their employees (Kumari, 2014). Baron (1983) posits that when we
recognize and reward the employees in terms of their identification, their working capacity and
performance is very high. Reward schemes are designed to enhance company performance by aligning the
interests of employees with the financial performance of their companies (Chin-Ju, 2010). Reward is a
system (e.g. Bonus and profit sharing) that contributes to performance by linking the interests of employees
to those of the team and the organization, thereby enhancing effort and performance (Armstrong, 2007).
There are two types of rewards; financial and non-financial. Nonmonetary incentives are to reward
employees for excellence job performance through opportunities (Kepner, Wyoski, McKenzie, and
Ballentine, 2003). It usually come in form of more enabling authority, award, participating in the
management, promotion, holidays, better working environment, written recognition, gifts, formal dinners,
informal parties, plaques, etc. (Allen and Helms, 2011). Rewards play a vital role in determining the
significant performance in job and it is positively associated with the process of motivation (Huselid,
2005).
Freedman (1978) as cited in (Beer and Walton, 2014) is of the view that when effective rewards and
recognition are implemented within an organization, favorable working environment is produced which
motivates employees to excel in their performance. The level of motivation of employees increases when
employees get an unexpected increase in recognition, praise and pay (Dubrin, 2012). One valuable reason
for recognizing employees is that studies show that people who feel appreciated are more positive about
themselves and their ability to contribute, i.e., employee recognition can boost productivity and increase
job satisfaction (Hansen, Smith, and Hansen, 2012).

2.10. BASIC PRINCIPLES ABOUT MOTIVATION

1. Motivating employees starts with motivating yourself.
It's amazing how, if you hate your job, it seems like everyone else does, too. If you are very stressed
out, it seems like everyone else is, too. Enthusiasm is contagious. If you're enthusiastic about your
job; it's much easier for others to be, too. Also, if you're doing a good job of taking care of yourself
and your own job, you'll have much clearer perspective on how others are doing in theirs. A great
place to start learning about motivation is to start understanding your own motivations. The key to
helping to motivate your employees is to understand what motivates them. So what motivates you?
Consider, for example, time with family, recognition, a job well done, service, learning, etc. How
35
is your job configured to support your own motivations? What can you do to better motivate
yourself?
2. Always work to align goals of the organization with goals of employees.
As mentioned above, employees can be all fired up about their work and be working very hard.
However, if the results of their work don't contribute to the goals of the organization, then the
organization is not any better off than if the employees were sitting on their hands -- maybe worse
off! Therefore, it's critical that managers and supervisors know what they want from their employees.
These preferences should be worded in terms of goals for the organization. Identifying the goals for
the organization is usually done during strategic planning.
Whatever steps you take to support the motivation of your employees (various steps are suggested
below), ensure that employees have strong input to identifying their goals and that these goals are
aligned with goals of the organization. Goals should be worded to be "SMARTER"
3. Key to supporting the motivation of your employees is to understand what motivates
each of them
Each person is motivated by different things. Whatever steps you take to support the motivation of
your employees, they should first include finding out what it is that really motivates each of your
employees. You can find this out by asking them, listening to them and observing them.
4. Recognize that supporting employee motivation is a process, not a task.
Organizations change all the time, as do people. Indeed, it is an ongoing process to sustain an
environment where each employee can strongly motivate themselves. If you look at sustaining
employee motivation as an on-going process, and then you'll be much more fulfilled and motivated
yourself.

5. Support employee motivation by using organizational systems (for example, policies and
procedures) -- don't just count on good intentions
Don't just count on cultivating strong interpersonal relationships with employees to help motivate
them. The nature of these relationships can change greatly, for example, during times of stress.
Instead, use reliable and comprehensive systems in the workplace to help motivate employees.
For example, establish compensation systems, employee performance systems, organizational
policies and procedures, etc., to support employee motivation. Also, establishing various systems
and structures helps ensure clear understanding and equitable treatment of employees.

36
 2.11. FACTORS THAT MOTIVATE PUBLIC SECTOR EMPLOYEES
Employees at the federal, state and local government levels represent the public sector employees.
Example: Employees of Nigerian Television Authority. In determining the motivational factors of
public sector employees, Herzberg’s two factor theory comes in handy- the Hygiene Factors and the
Motivators.
Hygiene factors
According to Herzberg, Hygiene factors do not lead to higher levels of motivation but without
them, there is dissatisfaction. They include:
 Interpersonal relation.
 Job security.
 Working conditions.
 Basic salary and bonuses.
 Status.
The motivators:
The Motivators in Herzberg’s motivation theory involves what people actually do on the job and
should be engineered into the jobs employees do in order to develop intrinsic motivation with the
workforce. The motivating factors to public service employees include:
 Achievement
 Recognition
 Advancement
 Responsibility
 The possibility of growth.
 Work itself.

2.12. FACTORS THAT MOTIVATE PRIVATE SECTOR EMPLOYEES

Private sector employees are the employees in profit orientated organizations such as African
Independent Television. It is noted that the private sector employees share the same motivational
factors with their public-sector counterparts but slightly in different order.
 Work conditions and salary
 The work itself: the work is challenging and interesting.
 Meeting people every day.
 Freedom: not being locked up within four walls.
37
  Sense of achievement.
 Responsibility.
 Status.

2.13. COMPARISON OF MOTIVATION IN THE PRIVATE AND PUBLIC SECTOR

ORGANIZATIONS
The assumption that public- and private-sector employees are similar contradicts conventional
wisdom in public-administration literature. Rainey (1997) noted that common characteristics of
individuals motivated by a public-service orientation place a high value on work that helps others
and benefits society as a whole, involves self-sacrifice, and provides a sense of integrity and
responsibility. It's generally believed that the public employee is motivated by a sense of service
not found among private-sector employees (Gabris & Simo, 1995).
Because public-sector administrators are characterized by an ethic to serve the public, they're
motivated by different job characteristics than are private-sector employees (Houston, 2000).
Public-service employees can be described as having reliance on intrinsic motivational rewards
over extrinsic motivational rewards (Crewson, 1997).
Intrinsic rewards are derived from the satisfaction an individual receives from performing a task.
Examples of these are a sense of accomplishment and a feeling of self-worth. In particular,
employees in public organizations are seen as being concerned for the community and having a
desire to serve the public interest. In contrast, extrinsic rewards are those offered to an employee
by someone else. Examples of extrinsic rewards are a pay raise, a promotion, job security, and
status and prestige (Houston, 2000).
Research generally supports the view that public-sector employees value the ethic of serving the
public and community more than financial rewards (Crewson, 1997; Houston, 2000; Rainey, 1982,
Wittmer, 1991). Research has found out that the importance of pay was valued less by the public-
sector employees, whereas the private-sector employees placed more emphasis on pay. Performing
meaningful public service was more important than pay to the public-sector employees.
Using data from the General Social Survey, Crewson (1997) found that public employees rated a
feeling of accomplishment and performing work that's helpful to society and to others as more
important job characteristics than do private-sector employees. Similarly, in a study that
investigated employee reward and motivation preferences, Wittmer (1991) reported that public-

38
sector employees place a higher value on helping others and performing work that's worthwhile to
society.
Persons who seek employment within public organizations are different in important respects from
those in the private sector (Wittmer, 1991). The perception is that, because of life experiences,
socialization, education and other factors, employees in the public sector and not-for-profit sectors
care more about serving the public than about extrinsic rewards (Perry, 2000). Additionally,
Houston (2000) found that public-service employees were less likely than workers in the private
sector to place a high value on such extrinsic reward motivators as high income and short work
hours. A "blurring" between the public sector and private sector has been noted in current research.
Jurkiewicz, Massey and Brown (1998) conducted a study that asked public- and private-sector
employees to rank order a list of "motivational wants" related to their work environment. The
researchers reported that public-sector employees are foremost motivated by the need for job
security and stability.
They further noted a meshing between the sectors when their research found that private-sector
employees placed more importance than their public-sector counter-parts on "a chance to benefit
society." This finding contradicts previous research in this area. These researchers note the
findings may be linked to training efforts of the private sector. They suggest that private-sector
organizations have implemented team building, quality circles and reengineering-type training
programs that may have an effect on the culture of the work environment, emphasizing a concern
for how an individual's behaviour affects others in the workplace. Other private-sector
organizations have sponsored volunteer efforts as well as time off with pay for employees to assist
charitable organizations. This was also noted as a potential link to the importance placed on
benefiting society within private sector organizations.

2.14. PROBLEMS ASSOCIATED WITH LACK OF MOTIVATION

Some of the problems associated with unmotivated workers include complacency, declining morale,
Low productivity, Poor production or service quality, Strikes / industrial disputes / breakdowns in
employee communication and relationships, Complaints about pay and working conditions, a
widespread discouragement. If allowed to continue these problems can reduce productivity, earnings
and competitiveness in businesses.

39
 2.15. EMPIRICAL STUDIES
From the number of literatures available on employee motivation, it is clearly evident that a lot of
interviews regarding employees and what motivates them have been undertaking. These employee
motivation interviews have been conducted in many different job situations, among different
categories of employees using different research methods and applications. One of the very first
interviews to be conducted was on industrial workers by (Hershey and Blanchard, 1969) over the
years, similar or different interview employees have been carried out. The study conducted by
Mohamoud, (2009) on “The role of Work Motivation on employee performance” ranked 10
rank orders of motivation factors, 20.9% ranked job satisfaction “as the most important
motivational factor. In fact, it was the most popular number one motivational factor across all the
categories and subgroups in this research. The remaining 79.1% was shared among the 9 other
factors while 1.7% ranked possibilities in layoffs occupying the 10th position as the least
important motivational factor. The second highest ranked factor was “promotion/expectation
representing 18.2% of the total respondents, followed by Team spirit 13.6%, Good working
environment 13.65% respectively.
Again, Findings based on four age groups were analysed; 20years or under, 21-25, 26- 30, 31 and
above. The ranking of the top five motivational factors was similar among these subgroups. For
example all different groups although ranked slightly different between the different age groups,
ranked all high job satisfaction, expectations/promotions, team spirit, good working environment and
positive recognition among the top five factors. However certain other factors between the different
age groups were ranked differently. Good wages was given higher importance (ranked 5th)
by the age group 21 and below 6th by 21-25 9th by 26-30 and 6th by 31 and above.
Khan et al, (2011) “Impact of motivation on job satisfaction and employees performance:
An empirical study of autonomous medical institution of Pakistan” cited Nanda and Brown (1977)
have investigated the important employee performance indicators at the hiring stage. They
concluded that level of job satisfaction and motivation affects the employee’s productivity. The high
performer demand attractive packages from the employers. And now it becomes predicament for the
human resource experts to retain the performer Sumita, (2004). The low level of job
satisfaction adversely effects on the employee commitment and sequentially effect the achievement of
organizational objectives and performance Meyer, (2000).
According to Ajans (2007) cited in Waleys (1997) at some point during our lives, virtually every
person may have to work. He claims that working is such a common phenomenon that the question
40
“what motivates people to work is seldom asked. Wiley went on to say that “we are much more likely
to wonder why people climb mountains or commit suicide than to question the motivational basis of
their work”. Therefore, exploring the altitudes that employees hold concerning factors that motivate
them to work is important to creating an environment that encourages employee motivation.
Again, a interview by Wiley (1997) in which approximately 550 questionnaires were administered to
person employed at different industries and divided into five subgroups, or categories
namely: (occupation, gender, income levels, employment status and age) they were asked to rank 10
factors according to the level of importance each is in motivating them to perform best with the
most important factor ranked 1 and the least important ranked 10th. The interview concluded
with the following collective rank order by respondents: (1) Good wages (2) full appreciation of
work done (3) job security (4) promotion (5) interesting work (6) company loyalty to
employees (7) Good working conditions (8) tactful discipline (9) recognition (10) sympathetic
help with personal problems. High payment has relationship with employee performance.
Ajan (2007) also cited in Quinn (1997) concluded, “When the ratings of twenty three job related
factors (including the need factors) were carried out, the conclusion reached was that no single
factor was pre-eminently important”. He further pointed out that, “The most aspect of the worker
job was that of sufficient resources to perform a task. From the above studies presented so far,
the rankings by different subgroups have shown semantic differences in the importance placed
on different motivational factors. The discrepancies in these research findings support Nelsons
(2001) positional view that “what motivates employees differs and may change for the same employee
over time”.
For the two supervisory behaviours under study conducted by Chowdhury, (2007) on the “Impact of
Motivation on Work performance”, showed that the authoritarian was expected to have weak
relationship with overall motivation and performance as opposed to positive achievement
motivation behaviour. The data suggest that to the extent that supervisors engaged in positive
motivational behaviours and expected greater performance from their employee, employee
intrinsic motivation was increased. The findings of the study are in consonant with a vast number
of studies demonstrating that autocratic behavior leads to dissatisfaction among employees.
Chowdhury, (2007) also demonstrate that positive achievement motivation behaviour produce
strong intrinsic motivation among the employee. Generally speaking, employees’ work and
performance can be more positively influenced by emphasizing leadership behaviour due to the
unstructured nature of works, where employees seek greater autonomy Tyagi, (2006). Supervisory
41
behaviour strongly influences employees’ motivation and work performance. It is, however, to
be noted that employee’s perceptions of supervisory behaviours have considerable impact on
their motivation and work performance. The two supervisory behaviours investigated, the
more important one is supervisor’s using positive methods of motivation for their sales force.
Determining salient rewards based on employees’ perceptions, monitoring their intrinsic and
extrinsic motivations regularly by their immediate supervisor will positively affect their work
motivation and performance Tyagi, (2006). All these imply that creating a positive
environment through encouragement and positive reinforcement of work behaviour will
improve employees’ work motivation and performance.
Again, during the periods of (1946, 1981 and 1986) when employee interviews were carried out,
supervisors were at the time asked to rank job rewards, as they taught employees would rank
them. The rankings by the supervisors were relatively consistent for each of the years. These
rankings were as follows: (1) Good wages (2) Job security (3) promotion and Growth (4) working
conditions (5) interesting work (6) personal loyalty to employees (7) tactful discipline (8) full
appreciation (9) sympathetic help with personal problems (10) recognition Kovach, (2001).
The results from the supervisor interview indicated that their ranking had not changed over the study
period with regards their collective perception of factors that motivate employees. This shows that
they had a very inaccurate perception of what motivates employees but also that they did not realize
the importance of the need theory. These empirical studies link to this study of assessing the
role of motivation on the employees work performance in an organization in National
Development Corporation.

2.16. RESEARCH GAP

The large number of earlier and recent studies investigating employee motivation using
sometimes the original or modified version of Maslow’s theory, may continue the appreciation of
this theory and the issue of employee motivation. Example of Tanzania research are by Mbaza
(2011) and Awadhi (2011) . The literature also shows that where the original theory was lacking
of rigor evidences (short comings or criticized for), has been greatly taken into consideration.
Many researchers have taken issues such as differences in gender, age, income, culture and
countries etc, and how these may affect or influence employee work motivation extensively. The
commonality between these previous researches is the agreement that certain factors are more
important as motivational factors than others and that these factors may change from one
42
employee to another. These previous studies have also been taken using different methods, from
researches, questionnaires, face-face interviews, but their outcomes have not differed significantly.
A possible explanation could be due to the fact that even though these studies were carried out
using different methods and target population, the motivator’s factors remain same.
Hence this study will assess the role of motivation on the employees work performance in
Benishagul Gumuz regional state selected bureaus. The study also focuses on the strategies already
used in the regions and it degree on employee’s performance and satisfaction.

2.17. CONCEPTUAL FRAMEWORK

In this study it is assumed that the employees’ performance has direct relationship with motivation
factors. According to Antonioni (1999), the amounts of effort people are willing to put in their work
depends on the degree to which they feel their motivational needs will be satisfied. But there is indirect
relationship between independent variables and dependent variable and direct link between
independent variables and dependent variable. The role of motivation in the employees’ performance
will depend on the interplay of the independent and intermediate variables.

The empirical analysis of this study has based on the conceptual frame work presented in Figure

Independent variable variables Dependent Variable

Motivation Factors

 promotion
 job security
Employee performance
motivational
strategies  Benefits in kind
 Salary increment
43
 Experiences
CHAPTER 3: RESEARCH METHODOLOGY

3. INTRODUCTION
The aim of this chapter is to discuss the methods and procedures to be adopt by the researcher in
carrying out the research work. The chapter contains sources of data, population and sample size
determination, instrument used for data collection, data analysis, techniques, validity and reliability of
data.

3.1. SOURCES OF DATA

3.1.1. PRIMARY SOURCE OF DATA

This is first hand information by the researcher. The primary data will be collecting through personal
interviews and questionnaires. Questionnaires will be given to the employee’s staffs of Benishagul
Gumuz regional state regional Bureau’s and then organized.

3.1.2. SECONDARY SOURCE OF DATA

Secondary data will be facts that the researcher has collect from already existing sources. The
secondary data collect for this study were obtained from books, internet, external publications and
journals about the overall motivational trends in the region.

3.2. POPULATION
The population of the study comprises of senior and junior staff of Benishagul Gumuz regional state
from selected bureaus. From the target area of the study about 399 staff will be representing for
responding the question developed regarding the motivation strategies were applied in bureaus of
environment, rural land administration and investment, bureau of human resource and public service,
bureau of agriculture, bureau of health protection and bureau of education.

3.3. SAMPLE SIZE DETERMINATION

The total population is 399 employees from 5 selected regional bureaus of B/G/R/State. The research
focus on five selected bureaus for collecting the data and the representative from each sector has to
been given equal number. The selected bureaus are; bureaus of environment, rural land administration
44
 and investment, bureau of human resource and public service, bureau of agriculture, bureau of health
protection and bureau of education. Generally, from each bureau 30 experts which is totally 150
experts were selected as representatives for conducting the research and from each selected bureau 10
totally 50 management body will be selected. Totally 200 representatives will be parts of the research
during the collections of available date to develop this paper.

No_ Selected bureaus Total Sample size of Sample size Total

population management of employees simple size
body
1. Environment, rural land 84 10 30 40

administration and investment

bureau
2. Human resource and public 66 10 30 40

service bureau
3. Agriculture bureau 98 10 30 40

4. Education bureau 86 10 30 40

5. Health protection bureau 65 10 30 40

6. Total 399 50 150 200

45
Based on the combined population of BGRS sector bureaus the sample size determined at 5% error
tolerance and 95% degree of confidence, using the Yamen’s formula: (Yamane, 1967)
n= N
1 + N (e) ²
Where:
n = Sample size
N = Population
e = error tolerance
I = Constant

From the study, the sample size is computed as:

n = 399
e = 5% or 0.05

N= 399
1+ 150 (0.05)²

= 399
1+ 399 (0.0025)
= 399
1+0.9975
= 399 = 200
1.9975

3.4. INSTRUMENT USED FOR DATA COLLECTION

The following instruments were used to collect data for this research work:
(i) Questionnaire
(ii) Interview
(iii) Observation.

3.4.1. QUESTIONNAIRE
The questions will have designed to help the researcher get the necessary information needed
for the research. Total for 200 respondent the questionnaires were distributed to the staff of
46
BGRS selected bureaus.

3.4.2. INTERVIEW
The interview gives an on the spot response from the respondents. It provides complementary
data to the questionnaire. The researcher interviewed both senior and junior staffs of BGRS
selected bureaus to obtain information for the study.

3.5. DATA ANALYSIS TECHNIQUES

Data collected from the primary sources will be coded, arranged and aligned to assure that
correlating data will be sorted together for easy interpreting. The collected data become
analysed through descriptive statistics calculating method and through means of the Statistical
Package for Social Sciences (SPSS). The data collected in the course of the research, become
analysed using Chi-square (X²) as the appropriate statistical tool. The data collected become
analysed using table and percentages while Chi-Square (X²) Statistical tool was used to test the
hypotheses. Chi-Square is represented by the formula:

X² = S (FO –Fe ) ²
Fe
Where:

X² = Chi-square
FO = Observed frequency

Fe = Expected frequency

S = Summation

3.6. DATA VALIDITY

The questionnaires are designed in simple and easy to understand in the manner that will enable
the respondents to provide relevant information. The data gathered become valid to the subject of
the study.

47
 3.7. WORK PLAN
Table 6:- Work Plan
s/n Activities Time Schedule
Sep Oct No Dec Jan Fe Mar Apr Ma June July augu
o_
v b y st
1. Identification of research
title
2. Submissions of research title

3. Preparation of research
proposal
4. Submission of research
proposal draft to advisors
5. Approving the research
proposal draft by advisors
6. Correction on the comment
given by advisors
7. Submission of the final
research proposal to advisor
8. Research Proposal
presentation
9. Preparing questionnaires and
interview questions
10. Distributing Questioners
11. Data collection
12. Collecting relevant primary
and secondary data and
document for analysis
13. Analyzing the
questionnaires, interview,
FGD and secondary

48
 documents
14. Producing the first draft of
the research
15. Producing the final draft of
the research paper
16. Submission and presentation
of the research paper

3.7.1. BUDGET OUTLINE

The research undertaking on the effects of evaluating the motivational strategies and its effect on employee
performance in case of BGRS selected bureaus can incur a budget that needs for the data collection, focus
group discussion and other materials must be afford to the research to achieve its objective. As the title
indicates the research, study areas are already in researcher present resident area, so that the research cost
will not such huge. Therefore, the financial budget will effectively allocate in order to properly achieve the
objectives of the research. Most of the cost related activities are; cost of stationary, cost tea and coffee
during discussion with the staff.

3.7.2. STATIONARY
Stationary for the research studies needed to over go the research as it flows with its objectives. The
stationary required for the research question preparation and data collection, for print ought the research
proposal, research draft and final research paper. It includes writing paper, writing pad, pen, flash disk, hard
disk, and internet service for data collection from website, printing and writing on the paper of the paper
per page.
Table1:- Budget for stationary
s/no Description Unit/measurem Quantity Unit price Total cost Remar
ent k
1. The stationary cost
1.1. Writing paper Pad 3 160.00 480.00
1.2. Writing pad No_ 2 75.00 150.00
1.3. Pen Packet 2 185.00 370.00
1.4. Flash disk No_ 1 200 200.00

49
 1.5. Hard disk No_ 1 2670.00 2670.00
1.6. Internet services Times 120min/day*75 1min*0.5 birr 4500.00
day
1.7. Writing per page 550 page 5birr 2750.00
1.8. Printing report Per page 550 page 2birr 1100.00
2. Cost during discussion
2.1. Coffee and tea cost Cap 360 cap 5 1,800

Total 14,020.00

3.7.3. BUDGET SUMMERY

Table 3:- Budget summery
S/no_ Description Total
1 Stationary 12,220.00
2 Coffee and tea cost 1,800
Total 14,020.00

50
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