CHAPTER ONE

INTROUCTION
1.0 INTROUCTION
This chapter covers the following sections :- background of the study, problem of the study,
purpose of the study, objectives, scope of the study, research questions , significance of the study
and operational key terms.

1.1 BACGROUND OF THE STUDY

Globally the success or failure of any organization depends on its employee that how well they
were motivated towards their work and with how dedication they are performing Motivation
plays a fundamental role in enhancing the employee productivity and performance. Employee
motivation is directly linked to employee commitment, productivity and business profits. An
organization should know about their employees that who are its great workers, who need
training every employee has its own motivational factors that motivate him or her to perform
their work effectively and efficiently. Some employees are motivated by recognition and some
are by rewards. Organizations should know the needs of their employees. Motivated employees
are productive, happy, committed and satisfied to their jobs.(Ouchi (2004)
Organizations would be more profitable, effective and efficient when its workers are trust over
them and this will lead to productivity, high level of involvement Karen Oman, human beings
are reciprocal. If you treat your workers well they will treat you well, if u treat them badly they
will treat you bad this study is designed at looking into the importance of motivation in the
management of people at work, no system moves smoothly without it, and no organization
achieve its objective without motivating its human resources motivated employees means staff
retention and loyalty which in short run will give growth of business According to Webster’s
New Collegiate Dictionary, a motive is something a need or desire that causes a person to act
Motivate, in turn, means to provide with a motive,” and motivation is defined as the act or
process of motivating Consequently, motivation is the performance or procedure of presenting an
intention that origin a person to capture some accomplishment motivation is derived from the
word “motivate”, means to move, push or influence to proceed for fulfilling a want (Kalimullah
et al, 2010).
Every organization and business wants to be successful and have desire to get constant progress
the current era is highly competitive and organizations regardless of size, technology and market
focus are facing employee retention challenges to overcome these restraints a strong and positive
relationship and bonding should be created and maintained between employees and their
organizations Human resource or employees of any organization are the most central part so they
need to be influenced and persuaded towards tasks fulfillment achieving prosperity,
organizations design different strategies to compete with the competitors and for increasing the
profitability of the organizations a very few organizations believe that the human personnel and
employees of any organization are its main assets which can lead them to success or if not
focused well, to decline Unless and until, the employees of any organization are satisfied with it,
are motivated for the tasks fulfillment and goals achievements and encouraged, none of the
organization can progress or achieve success. ((Reena et al, 2009).
Describe motivation as a power that strengthens behavior, gives route to behavior, and triggers
the tendency to continue this explanation identifies that in order to attain assured targets;
individuals must be satisfactorily energetic and be clear about their destinations it is an internal
drives to satisfy an unsatisfied need and the will to accomplish Motivation is a procedure that
initiates through a physiological or psychological want that stimulates a performance that is
intended at an objective. It is the concluding product of interface among personality behavior and
organizational profitability it symbolizes those psychological procedures that foundations the
stimulation, route, and determination of deliberate actions that are target(Farhad et al, 2011).
Among financial, economic and human resources, the latest are more essential and have the
capability to endow a company with competitive edge as compared to others Employee
Performance fundamentally depend on many factors like performance appraisals, employee
motivation, Employee satisfaction, compensation, Training and development, job security,
Organizational structure and other, but the area of study is focused only on employee motivation
as this factor highly influence the performance of employees employee motivation is one of the
policies of managers to increase effectual job management amongst employees in organizations
(Shadare et al, 2009).
A motivated employee is responsive of the definite goals and objectives he/she must achieve,
therefore he/she directs its efforts in that direction reported that motivation formulates an
organization more successful because provoked employees are constantly looking for improved
practices to do a work, so it is essential for organizations to persuade motivation of their
employees (Kalimullah et al, 2010).
Composition of people which formulate independent business identity for some specific purpose
is commonly known as organization and getting desired outcome within defined resources is
treated as profitability Organizational effectiveness is the notion of how effectual an organization
is in accomplishing the results the organization aims to generate It plays an important role in
accelerating organizational development It is the net satisfaction of all constituents in the process
of gathering and transforming inputs into output in an efficient manner (Matthew et al, 2005).
Organizational profitability is defined as the extent to which an organization, by the use of
certain resources, fulfils its objectives without depleting its resources and without placing undue
strain on its members and/or society (Mary et al, 1996). It is the maximum combined utility of
the primary constituents (Matthew et al, 2005).
The goal model describes organizational profitabity in terms of the extent to which an
organization attains its objectives. The legitimacy model regards organizational effectiveness in
terms of a background evaluation “of component preferences for performance and natural
limitations on performance from an external environmental perspective” (Zammuto.R.F, 1982).
The constituency model considers organizational profitabity “as a set of several statements, each
reflecting the evaluative criteria applied by the various constituencies” involved with the
organization being evaluated with an emphasis on means criteria (Connolly.T, 1980).
The systems resource model defines organizational effectiveness “in terms of its (the
organization’s bargaining position, as reflected in the ability of the organization, in either
absolute or relative terms, to exploit its environment in the acquisition of scarce and valued No
one works for free, nor should they. Employees want to earn reasonable salary and payment, and
employees desire their workers to feel that is what they are getting (Houran. J). Money is the
fundamental inducement, no other incentive or motivational technique comes even close to it
with respect to its influential value It has the supremacy to magnetize, maintain and motivate
individuals towards higher performance. Frederick Taylor and his scientific management
associate described money as the most fundamental factor in motivating the industrial workers to
attain greater productivity (Adeyinka et al, 2007).
Research has suggested that reward now cause satisfaction of the employee which directly
influences performance of the employee Rewards are management tools that hopefully
contribute to firm’s effectiveness by influencing individual or group behavior. All businesses use
pay, promotion, bonuses or other types of rewards to motivate and encourage high level
performances of employees To use salaries as a motivator effectively, managers must consider
salary structures which should include importance organization attach to each job, payment
according to performance, personal or special allowances, fringe benefits, pensions and so on
(Adeyinka et al, 2007).
Leadership is about getting things done the right way, to do that you need people to follow you,
you need to have them trust you. And if you want them to trust you and do things for you and the
organization, they need to be motivated Theories imply that leader and followers raise one
another to higher levels of morality and motivation Motivation is purely and simply a leadership
behavior. It stems from wanting to do what is right for people as well as for the organization.
Leadership and motivation are active processes (Baldoni.J, 2005).
organizational profitability is defined as a vital sign of the organization, showing how well
activities within a process or the outputs of a process achieve a specific goal It is also defined as
a process of assessing progress towards achieving pre-determined goals, including information
on the efficiency by which resources are transformed into goods and services, the quality of these
outputs and outcomes, and the profitability of organizational objectives Organization’s
profitability is made visible through the activities it conducts to achieve; its mission. Outputs and
their effects are the most observable aspects of an organization's profitability Anderson and in
their book entitled “Enhancing organizational profitability state that ideas about the concept of
performance vary considerably. Each interest group or stakeholder may have an entirely different
idea of what counts.
In Africa staff motivational factors such as rewards, regulation and economic incentives are
perhaps the most important devices that managers can use in the public sector service of which
employees in the MOE belong to retain its employees the government of Zambia has introduced
and is implementing a retention package to employees in MOE. The package includes both
financial and non financial incentives. However, financial incentives are failing to achieve the
desired results (retain and motivate employees) because of inflationary environment in the
country. Some incentives include low interest loans, housing allowances (for employees not
accommodated in institutional houses) and educational allowances. Non financial incentives
being offered to employees include; confirmation of staff that had acted in senior positions over
many years, professional advancement leave and recognition of higher qualification in the case
of teaching staff other incentives include; vehicles and accommodation. In addition to current
rewards, civil servants usually can count on receiving a pension and/or a lump-sum gratuity. The
MOE is using bonding as a strategy of retaining staff However bonding cannot be reliable
because employees can be willing to forfeit their terminal benefits Penalty for defaulting bonding
agreements can be surpassed by offers for prospective jobs Other writers have highlighted some
key retention strategies as being Offer performance feedback, praise good efforts and results. 2)
Involve employees in decisions that affect their jobs and the overall direction of the company
whenever possible Recognize excellent performance, and especially, link pay to performance
Demonstrate respect for employees at all times. According to research by the Gallup
organization, encourage employees to have good, even best, friends, at work (Croasmun, 2002)
In Somalia Employee Motivation represents the forces within a person that affect his or her
direction, intensity, and persistence of voluntary behavior, Direction refers to the path along
which people engage their effort this sense of direction of effort reflects the fact that people have
choices about where they put their effort in other words, motivation is goal-directed, not random.
People are motivated to arrive at time, finish a project a few hours early, or aim for many other
targets the second element of motivation; called intensity, is the amount of effort allocated to the
goal For example, two employees might be motivated to finish their project a few hour early but
only one of them put forth enough effort to achieve this goal in other words, intensity is how
much you push yourself to complete the task Persistence, which is the third element, refers to the
continuity of effort for a certain amount of time. this explains that employees are naturally
tenacious in nature, they stick to a goal until it is been achieved no matter the ordeal they face in
the work place once they are been motivated. Motivation has been viewed as a powerful tool that
reinforces behaviors and triggers the tendency to continue in other words, motivation is an
internal drive to satisfy an unsatisfied need and to achieve a certain goal This view of motivation
reveals that in order to attain assured targets; individual must be satisfactorily energetic and be
clear about their destination. In addition, it serves as a procedure that begins through a
physiological or psychological need and that stimulates a performance set by an objective.It also
shows that motivation is an innate in an individual. It only arises when there is something to
achieve and it has a nexus with human energy to perform. Lack of motivation, in turn, affects
productivity (Atkinson, 2012).
1.2PROBLEM STETMENT OF THE STUDY
Staff motivation is one of the policies of managers to increase effectual job management
amongst employees in organizations profitability a motivated employee is responsive of the
definite goals and objectives he/she must achieve, therefore he/she directs its efforts in that
direction reported that motivation formulates an organization more successful because provoked
employees are constantly looking for improved practices to do a work, so it is essential for
organizations to persuade motivation of their employees (Kalimullah et al, 2010)

Staff motivation is necessary because employees switched the organizations when they were not
motivated, appraised and due to lack motivation, their performance is directly affected. is
important in productivity and what are the factors that affect employee performance,
commitment and loyalty the research is done in Somalia the methodology used is survey method
data are obtained from the employees of different organizations the findings show that when an
employee is motivated, he/she will directly be committed toward the organization and their
productivity will increase Self satisfaction and recognition are major factors through which
employees get intrinsically motivated.( Jishi 2009)
Therefore, the gab is to examine staff motivation on performance in some selected in Mogadishu
Somalia.

1.3PORPOSE OF THE STUDY

The aim of the study is to investigate impact of staff motivation on performancein some selected
compies in Mogadishu Somalia.

1.4 RESEARCH OBJECTIVES

1. To determine impact of employee pay on performance in foam factory in Mogadishu Somalia.

2. To investigate effect of work condition on performance in foam factory in Mogadishu

Somalia.

3. To examine effect employee rewards on organizatiperformanceonal profitability in foam

factory in Mogadishu Somalia.
1.5 REREARCH QUESTION
1. What is the impact of employee pay on performance in foam factory in Mogadishu Somalia?

2. How is effect of work condition on performance in foam factory in Mogadishu Somalia?

3. What is effect employee rewards on in foam factory in Mogadishu Somalia?

1.6 SCOPE OF THE STUDY

The scope of the study was to investigate find the result of investigate impact of staff motivation
on performance in some selected compies in Mogadishu Somalia.

1.6.1 GEORIPHICAL SCOPE

This study conducted in Mogadishu because of it about exercisability of date requirement.

1.6.2 TIME SCOPE

This study was conducted during 2019

1.7 Significance of the study

The findings of this study will be helpful in find the result of for making available insight for
investigate impact of staff motivation on performance in some selected compies in Mogadishu
Somalia. Normal people will get a general idea about , it also assist Other researcher use
different time reference. Finally, the researcher is hopeful that the study achieved will form a
basis for further research and cover a way for future studies to be made by other potential
researchers the importance of the study is to know the find the result o investigate impact of staff
motivation on performance in some selected compies in Mogadishu Somalia that is more
significant for and this study for students, and educated people to get advantage from it

1.8 OPORATIONAL DEFINITION .

Staff motivation shall be defined the willingness to exert high levels of effort toward
organizational goals, conditioned by the effort’s ability to satisfy some individual need Among
financial, economic and human resources, the latest are more essential and have the capability to
endow a company with competitive edge as compared to others (Employee Performance
fundamentally depends on many factors like performance appraisals, employee motivation.
( Ramlall, 2004)
Employee pay is equal to the sum of wages and salaries and of supplements to wages and
salaries. Wages and salaries, which generally accounts for over 80 percent of compensation,
consists of cash remuneration of labor including sick or vacation pay, severance pay,
commissions, tips, and bonuses and in-kind remuneration of labor such as transit subsidies and
meals. Supplements to wages and salaries consists of employer payments that are made on behalf
of employees but are not included in the regular wage payments provided directly.(Ramfil
20110)

Employee rewards is defined as something which is given following the occurrence of certain
behaviour, with the intention of acknowledging the positive nature of that behaviour, and often
with the additional intent of encouraging it to happen again rewards can be intrinsic or extrinsic
in nature. Intrinsic rewards are internal to the individual, such as contributing to a common good,
mentorship or ‘giving back’. Extrinsic rewards are rewards external to the individual, such as
payments and promotions or praise and public recognition EPA aims to find a balance between
providing adequate extrinsic rewards and valuing the intrinsic needs of employees.(Welpat 2011)

Work condition workplaces recognize that employees are an organization’s greatest resource
and make a critical difference in the organization’s ability to not merely survive, but to thrive. To
be truly effective, a workplace—its design, practices and policies—must benefit both the
organization and its employees has engaged in a research journey to define the elements that
make up effective workplaces National Study of the Changing Workforce data has revealed six
criteria of effective workplaces, all of which benefit both the employee and the organization.
(Wetris 2011)

Performances using a dynamic firm-level panel data set, this study identifies the determinants of
firme profitability and assesses the relative importance of firm and industry effects the
profitability includes a firm-specific and time-varying estimate for total factor productivity
which is derived from an auxiliary cost function estimation.( Rizwan et al, 2010).
 1.9 C ONCEPTUAL FRAME

IV
DV

Staff motivation

Employee pay

Work condition Performance

Employee reward

Figer.11.conceptual frame (resource 2020)