AN ASSESSMENT OF PROMOTIONAL SATISFACTION AMONG THE

WORKERS OF COCOA MARKETING COMPANY LIMITED

By

Victoria Korang Boamah

(B.Ed. Management)

A Thesis Submitted to Department of Managerial Sciences, Kwame Nkrumah

University of Science and Technology in Partial Fulfillment of the requirements for
the award of the degree

MASTER OF BUSINESS ADMINISTRATION (HRM OPTION)

School of Business, KNUST

College of Art and Social Sciences

August, 2014
 DECLARATION

I hereby declare that this submission is my own work towards the award of Masters of

Business Administration (Human Resource Management) and that, to the best of my

knowledge, it contains no material previously published by another person nor

material which has been accepted for the award of any other degree of the University,

except in places where references of other people‟s work have been cited and full

acknowledgements given.

Victoria Korang Boamah (PG 7633712) ……………… …………………..

Student & Index No. Signature Date

Certified by

Mrs. Rosemary Boateng-Coffie ……………… …………………..

Supervisor Signature Date

Certified by

Mr. J. K Turkson ……………… …………………..

Head of Department Signature Date

ii
 DEDICATION

I dedicated this work to the Almighty God, my supporting parents Mr. and Mrs.

Boamah, my siblings and second mother Mrs. Rosemary Boateng-Coffie for her

guidance throughout this work.

iii
 ACKNOWLEDGEMENT

I wish to acknowledge with special gratitude, and encouragement received from

people who in diverse ways helped in making this work possible.

A very special mention of deep appreciation goes to my Supervisor Mrs. Rosemary

Boateng-Coffie, for her patience, guidance and useful advice which helped to give

this work a successful completion.

Another special appreciation goes to my family for their love, support and

encouragement throughout this write–up.

Much appreciation goes to all my course mates for their encouraging support, keen

interest, love and concern that helped in no small way to bring this book to

completion.

My sincere thanks go to staffs of Cocoa Marketing Company Limited for their

immense contributions.

To you all I say may God richly bless you.

iv
 ABSTRACT

This study assesses promotional satisfaction among employees at Cocoa Marketing

Company Limited. The study reviewed Literature on the concept and definition of

job promotion, the determinants of job promotion, job satisfaction concept, and

factors influencing job satisfaction. The study adopted the quantitative research

approach to collect data from the staff of Cocoa Marketing Company Limited. Thus

data is collected via questionnaire from 149 employees and analysed with Statistical

Package for the Social Sciences (SPSS). The result of the study revealed that, less

than half of the employees have received promotion and those who had not been

promoted are expecting promotion. The study found out that, the promotion package

in Cocoa Marketing Company includes pay increase and promotion from lower rank

to high rank. The findings also revealed that workers‟ acquisition of new productive

human capital (by experience); workers‟ commitment to the firm (tenure); workers

adequate ability and skills; and workers‟ acquisition of academic degree most relevant

to job performance are the major determinant of internal promotion. The study found

that staff is satisfied with promotional policies available whiles in the case of

implementation of the promotion policy, majority of staff were somewhat dissatisfied.

It is recommended that management peruse a more transparent promotional policy

and also staff expecting promotion should acquire new productive human capital; be

committed to the organisation (tenure); acquire adequate ability and skills.

v
 TABLE OF CONTENTS

DECLARATION ...........................................................................................................ii

DEDICATION ............................................................................................................. iii

ACKNOWLEDGEMENT ............................................................................................ iv

ABSTRACT ................................................................................................................... v

TABLE OF CONTENTS .............................................................................................. vi

LIST OF TABLES ......................................................................................................... x

LIST OF FIGURES ...................................................................................................... xi

CHAPTER ONE .......................................................................................................... 1

INTRODUCTION........................................................................................................ 1

1.0 Background of the Study ......................................................................................... 1

1.1 Problem statements .................................................................................................. 3

1.2 Objectives of the study............................................................................................. 4

1.3 Research Questions .................................................................................................. 5

1.4 Significance of the Study ......................................................................................... 5

1.5 Scope of the study .................................................................................................... 6

1.6 Overview of the Methodology ................................................................................. 6

1.7 Organization of the study ......................................................................................... 7

CHAPTER TWO ......................................................................................................... 8

LITERATURE REVIEW ........................................................................................... 8

2.0 Introduction .............................................................................................................. 8

2.1 Concept and definition of job promotion ................................................................. 8

2.2 Models of Job Promotion ....................................................................................... 11

vi
2.3 Determinant of job promotion ............................................................................... 13

2.4.1 Consequences of Promotions .............................................................................. 15

2.5 Context of Job Satisfaction .................................................................................... 16

2.5.1 Importance of Job Satisfaction............................................................................ 18

2.6 Theories of job satisfaction: The Dual Factor Theory. .......................................... 19

2.6.1 Situational Occurrences Theory .......................................................................... 20

2.6.3 Equity Theory ..................................................................................................... 20

2.7 Factors Influencing Job Satisfaction ...................................................................... 21

2.7.1 Relationship between demographic factors and job satisfaction ........................ 21

2.7.2 Psychological and genetic influences on job satisfaction ................................... 22

2.7.3 Company operations influences on job satisfaction............................................ 23

2.8 Relationship between job promotions and job satisfaction ................................... 25

CHAPTER THREE ................................................................................................... 27

METHODOLOGY AND ORGANIZATIONAL PROFILE ................................. 27

3.0 Introduction ............................................................................................................ 27

3.1 The Research Design of the Study ......................................................................... 27

3.3 The Sample Size .................................................................................................... 29

3.4 Sampling Technique .............................................................................................. 30

3.5 Data Collection Instrument .................................................................................... 31

3.6 Data Analysis ......................................................................................................... 32

3.7 Profile of Study Institution - COCOA Marketing Company (Ghana) Ltd ............ 33

vii
CHAPTER FOUR ...................................................................................................... 36

DATA PRESENTATION, ANALYSIS AND DISCUSSION ................................ 36

4.1 Introduction ............................................................................................................ 36

4.2 Background characteristics of the respondents ...................................................... 36

4.2.1 Gender ................................................................................................................. 37

4.2.2 Age of the respondents........................................................................................ 37

4.2.3. Level of Education ............................................................................................. 38

4.2.4 Duration of Service ............................................................................................. 39

4.2.5 Job Classification and Years of experience at current rank ................................ 40

4.3.1 Outcome /Consequence of Promotion ................................................................ 43

4.4 Determinants of internal promotion at Cocoa Marketing Company ..................... 44

4.4.1 Acquisition of new productive human capital (by experience) .......................... 44

4.4.2 Worker's Commitment to the Firm (tenure) ....................................................... 45

4.4.3 Worker's adequate ability and skills ................................................................... 48

4.4.4 Worker‟s inclination to work hard (overtime hours) .......................................... 49

4.4.5 Worker's position ................................................................................................ 50

4.4.6 Worker's acquisition of academic degree most relevant to job performance ..... 51

4.5 Staff perception towards CMC promotional policy ............................................... 54

4.6 Promotional policy and its consequence on Employee Satisfaction ...................... 57

4.6.1 Employee Satisfaction level in relation to Promotional Policy available ........... 57

4.6.2 Satisfaction level in relation to the implementation of promotional policies ..... 58

viii
CHAPTER FIVE ....................................................................................................... 62

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ........................... 62

5.1 Introduction ............................................................................................................ 62

5.2 Summary ................................................................................................................ 62

5.3 Conclusion ............................................................................................................. 66

5.4 Recommendations .................................................................................................. 67

5.4 Future Studies ........................................................................................................ 67

REFERENCES ........................................................................................................... 68

APPENDICES ............................................................................................................ 77

ix
 LIST OF TABLES

Table 3.1: Staff Population of Cocoa Marketing Company Limited at various

centres .......................................................................................................................... 29

Table 3.2: Samples that the questionnaires were administered to ............................... 30

Table 4.1: Age of the Respondents .............................................................................. 38

Table 4.2 Duration of service (years) .......................................................................... 40

Table 4.3: Job Classification ........................................................................................ 40

Table 4.4: No. of years been on current rank ............................................................... 41

Table 4.5: Recipient of Job Promotion ........................................................................ 42

Table 4.6: Chi-square test result for the dependency job promotion on tenure ........... 48

Table 4.7: Chi-square test result for the dependency job promotion on relevant

academic qualification ................................................................................................. 54

Table 4.8: Descriptive Statistics of staffs‟ perception towards CMC promotional

policy............................................................................................................................ 56

Table 4.9: Overall Satisfaction level with Promotional Policy.................................... 60

Table 4.10: Chi-Square tests result of Overall Satisfaction and recipient of

Promotion..................................................................................................................... 61

x
 LIST OF FIGURES

Figure 4.1: Gender of the Respondents........................................................................ 37

Figure 4.2: Highest Education ..................................................................................... 39

Figure 4.3: Recipients of Job Promotion ..................................................................... 42

Figure 4.4: Outcome of Job Promotion........................................................................ 44

Figure 4.5: Extent to which respondents agree or disagree with acquisition of new
productive human capital influencing job promotion .................................................. 45

Figure 4.6: Extent to which respondents agree or disagree with worker‟s commitment
influencing job promotion............................................................................................ 46

Figure 4.7 Job promotion and duration of service ....................................................... 47

Figure 4.8: Extent to which respondents agree or disagree with worker‟s adequate
ability and skills influencing job promotion ................................................................ 49

Figure 4.9: Extent to which respondents agree or disagree with worker‟s inclination to
work hard influence job promotion.............................................................................. 50

Figure 4.10: Extent to which respondents agree or disagree with worker‟s position
influencing job promotion............................................................................................ 51

Figure 4.11: Extent to which respondents agree or disagree with worker‟s acquisition
of academic degree most relevant to job performance influence promotion ............... 52

Figure 4.12 Extent to which worker‟s acquisition of academic degree most relevant to
job performance influence promotion among those with different educational level of
the study ....................................................................................................................... 53

Figure 4.13: Extent of Employee Satisfaction level with available promotional

policy............................................................................................................................ 58

Figure 4.14: Extent of Employee Satisfaction level in relation to implementation of

promotional policy ....................................................................................................... 59

xi
 CHAPTER ONE

INTRODUCTION

1.0 Background of the Study

Francesconi (2001) observed that the employment relationship from the point of view

of a worker has been usually reduced to a single measure, such as earnings or wage

growth. These aspects of a job are clearly important, but they do not exhaust the

conditions of employment that are relevant to a worker. Also of importance is, for

example, a worker's rank within an organization. Many organizations have established

a well-specified hierarchy in which career advancement takes the form of promotion

to higher-level jobs. When workers exert effort not just to maximize current pay but

also to affect the market's beliefs about their talent, then promotions may be used to

motivate workers, especially by firms in which monitoring is costly.

Promotions and career advancement are an important aspect of a worker‟s career and

life, affecting other facets of the work experience. They constitute an important aspect

of workers‟ labour mobility, most often carrying substantial wage increases (Kosteas

2009; Blau and DeVaro 2007; Cobb-Clark 2001; Francesconi 2001) and can have a

significant impact on other job characteristics such as responsibilities and subsequent

job attachment (Pergamit and Veum 1999).

Organizations can use promotions as a reward for highly productive workers, creating

an incentive for workers to exert greater effort. Promotions are the only effective

mechanism for eliciting greater effort if workers place significant value on the

promotion itself. Nevertheless the use of pay increase can induce employees to give

off their best.

1
A promotion is the prize that is allocated to the worker who ranks higher than all other

workers in a group of new hires over a given period. The probability of winning

depends on the workers' productivity, and the winners are moved to positions that

involve higher responsibility and higher earnings (Manove 1997). Because the new

hires know that not all of them will receive a promotion, the probability of promotion

provides an incentive to exert effort without the need for any formal contract between

workers and organization. Landers et al (1996) argue that the income sharing typical

of professional employment relationships with adverse selection (e.g., large law

firms) creates incentives to promote those with greatest propensity to work hard.

Since this propensity is unobservable, organizations will use indicators of it (such as,

hours of work or overtime hours) for the purpose of selecting workers for promotion.

Job satisfaction has also received significant attention from economists in recent

years. Part of the interest in job satisfaction is due to the correlation between

satisfaction and employee behaviour. More satisfied workers are less likely to leave

their employer (Clark 2001; Shields and Ward 2001), have lower rates of absenteeism

(Clegg 1983) and have higher productivity (Mangione and Quinn 1975). In this

context, reported job satisfaction can be seen as a revelation of workers‟ preferences

over jobs. Workers reporting a high degree of satisfaction with the job are signalling

their preference for the current job, which is also exhibited in the lower quit rates of

highly satisfied workers. In the absence of more direct measures, job satisfaction

provides the closest proxy for the utility individuals derive from their employment

(Kosteas, 2011). Understanding the determinants of economic wellbeing is a key

concern of economic science, and job satisfaction is a key facet of overall wellbeing.

2
Given all of the dimensions in which promotions can affect workers‟ careers and

compensation, relatively little attention has been paid to the importance of promotions

as a determinant of job satisfaction. Francesconi (2001) opined that while several

studies have investigated the determinants of job satisfaction, relatively little attention

has been paid to the role of promotions on satisfaction. Tournament theory postulates

that firms such as Cocoa Marketing Company Limited use the prospect of a

promotion as an incentive for workers to exert greater effort.

Cocoa Marketing Company Limited (CMC) is a wholly-owned subsidiary of

COCOBOD with the sole responsibility to market and export Ghana cocoa beans to

local and foreign buyers. Its major responsibilities include procurement of graded and

sealed cocoa beans from the LBC‟s at the three takeover centres; stocking of cocoa

prior to shipment; securing optimal prices and maximizing foreign exchange revenue;

managing sales and collecting receipts; and settling of any disputes via direct

arbitration. (©2014 COCOBOD).

In view of this, this research seeks to investigate the promotional satisfaction among

workers of Cocoa Marketing Company Limited.

1.1 Problem statements

Very little consensus exists between employees satisfaction and promotional policy

at Cocoa Marketing Company Limited. Sadly, less research has been done on

promotional policies in particular and how it affects the employees in the company.

Not long ago higher positions in the company were given to outsiders instead of the

internal candidates. Whiles some of the workers are dissatisfied with the situation and

see it as disincentive to work hard because to them it was opportunity for them to be

promoted, others thought otherwise.

3
These development may reduce the morale of staff to work hard. The question

therefore is what are the factors that influence promotion in the Cocoa Marketing

Company Limited?

Would the promotion have led to job satisfaction and a boost the employees‟

performance? Probably little is known about the process by which higher-level job are

filled within Cocoa Marketing Company Limited. To answer these questions and

contribute to knowledge and research in human resource management in general, the

researcher studies the assessment of promotional satisfaction using Cocoa Marketing

Company Limited

1.2 Objectives of the study

The general objective of this research is to assess the determinant of job promotion

and the extent of promotional satisfaction among the workers of Cocoa Marketing

Company Limited. The specific objectives of the study are therefore to:

1. To identify the factors that determines internal promotion in Cocoa

Marketing Company Limited.

2. To ascertain the perception about promotional policy among the workers

of Cocoa Marketing Company Limited.

3. To assess the level at which employees are satisfied with their job at

Cocoa Marketing Company Limited.

4. To establish the extent to which staffs are satisfied with the promotional

policy and its implementation at Cocoa Marketing Company Limited.

4
1.3 Research Questions

Following the objectives, the research seeks to address the following questions:

1. What are the determinants of job promotion in Cocoa Marketing

Company Limited?

2. What perception do staffs of Cocoa Marketing Company Limited have

about the job promotional policy available?

3. What is the satisfaction level of employees in relation with their job?

4. What is the level of promotional satisfaction among the workers of

Cocoa Marketing Company Limited?

1.4 Significance of the Study

Studying the impact of promotions on job satisfaction helps to understand the

importance of promotions as a mechanism for eliciting greater effort from workers.

Information from this research is expected to be of immense significance to several

stakeholders of both public and private organizations in Ghana. This may gives

organizations a non-pecuniary tool for extracting effort and other positive behaviour

from their workers. Moreover, it is expected to equip the human resource managers

and decision makers in organizations with the right information concerning human

resource practices to improve formulation of human resource policies especially on

promotional decisions and improve performance. Also this research shall add to the

literature on human resources practices and by so doing contributing to academia.

Apart from contributing to the existing literature on human resources practices and to

the body of academic knowledge for Human Resource, Industrial Psychology and

general Business Administration and institutional management, the study will also

5
identify other areas that need further research for researchers to pursue further studies

in the area. Last but not the least, individuals‟ employees of Cocoa Marketing

Company Limited would benefit since the findings of the study will influence the

behaviour especial those who seek career advancement in the organization.

1.5 Scope of the study

The study covers factors influencing promotion and promotional decisions at Cocoa

Marketing Company Limited. It generally assesses the promotional opportunities in

the company for its employees and how it has impacted on their satisfaction. The

study is limited to staffs in Kumasi, Tema, Tarkoradi and Accra who have spent at

least three years with the company.

1.6 Overview of the Methodology

Exploratory research methodology was adopted for the study. In order to achieve the

objectives of the thesis, data was gathered by the use of questionnaires and interviews

guide which was respectively administered to staff and human resource manager of

Cocoa Marketing Company Limited. The data obtained from the questionnaire was

analysed using Statistical Package for Social Sciences (SPSS) version 16. The

statistical methods used in presenting the findings from the study are those of

descriptive (mean and standard deviation) and inferential statistics (chi-square),

frequency tables and graphs.

6
1.7 Organization of the study

The study is structured into five main chapters. The first chapter of the study

introduces the research. Included in this chapter is the background to the study,

objectives and research question, the scope of the study, as well as the relevance of

the study. This chapter is really important because it sets the study in perspective and

helps to correct any deviations which may occur throughout the study.

Chapter two presents a review of literature about the study and describe the

theoretical and empirical frame work of the study.

The third chapter elicits the profile of the study area, research design, the data

collected instruments and sources of the data. The sampling techniques, key variables

of the study, among other methods of data analysis are contained in this chapter. The

chapter is basically essential as it provides a guide to the conduct of the survey.

Chapter four presents the analysis and discussions of the research objectives. It

highlights the relationship between the study variables. The chapter is very important

because it primarily provides answers to the research questions. This chapter also

forms the basis for making recommendations to ensure smooth promotional policy to

boost employee confidence and give off their best.

The final chapter; chapter five contains summary of the study findings, provides

recommendations as well as the general conclusion. The chapter undoubtedly

unravels information which was previously unknown and adds to the existing

knowledge about promotional policies and its affects employees in an organisation.

7
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter reviews existing literature on the concept of job promotions, job

promotion decision-making processes, and determinants of job promotion. It also

reviews job satisfactions concept, theories of job satisfaction and empirical study on

job satisfaction. It finally reviews the empirical literature on the relationship between

job promotion and job satisfaction.

2.1 Concept and definition of job promotion

Job promotion is the advancement of an employee's rank or position in an

organizational hierarchy system (Goblar et. al., 2002). Goblar et. al., 2002, further

allude that, promotion may be an employee's reward for good performance that is,

positive appraisal. Before a company promotes an employee to a particular position it

ensures that the person is able to handle the added responsibilities by screening the

employee with interviews and tests and giving them training or on-the job experience.

A promotion can involve advancement in terms of designation, salary and benefits,

and in some organizations the type of job activities may change a great deal (Kalesh

et. al., 2007).

It is usually symbolized with a change of job and title. It can be attached with an

increase in pay, power, and responsibility. Or, it can also include an increase in

freedom or independence, or a decrease in danger or discomfort. It may mean less

inconvenience in terms of hours or location for some employees (Kalesh et. al., 2007).

8
Based on the above discussion, employees often feel satisfied with these incentives

and stimulated to perform better in the new job. They are motivated to increase their

knowledge or skill and to gear for higher levels of productivity. With better jobs,

employees may decline any opportunities at other companies. Hence, promotions can

increase employees‟ loyalty to the company and reduce career change intention at

lower levels.

An employee‟s opportunities for promotion are also likely to exert an influence on

job satisfaction (Landy, 1989; Moorhead & Griffen, 1992). Robbins (1998) maintains

that promotions provide opportunities for personal growth, increased responsibility,

and increased social status (Robbins & Judge, 2007). Drafke and Kossen (2002) was

of the opinion that many workers experience satisfaction when they believe that their

future prospects are bright and good and this may according to Bull (2005) “translate

into opportunities for advancement and growth in their current workplace, or enhance

the chance of finding alternative employment”. It was stressed further that if people

feel they have limited opportunities or chance for career advancement in any

organization, their job satisfaction may decrease which consequently may lead to

career change.

According to McCormick and Ilgen (1985), employees‟ satisfaction with promotional

opportunities will depend on a number of factors, including the probability that

employees will be promoted, as well as the basis and the fairness of such promotions.

Moreover, not all employees wish to be promoted. The reason therefore is related to

the fact that promotion entails greater responsibility and tasks of a more complex

nature, for which the individuals may consider themselves unprepared.

9
If employees perceive the promotion policy as unfair, but do not desire to be

promoted, they may still be satisfied.

A promotion is the prize that is allocated to the worker who ranks higher than all other

workers in a group of new hires over a given period.

The probability of winning depends on the workers' productivity, and the winners are

moved to positions that involve higher responsibility and higher earnings.

Promotions may take a variety of different forms and are generally accompanied by

different rewards (Luthans, 1992). Equally, promotional opportunities therefore have

differential effects on career intention, and it is essential that this be taken into

account in cases where promotion policies are designed to enhance employee

satisfaction. Tuwei et al. (2013) affirm that employees are more committed to their

jobs when they believe that the organization they work for pursues a promotion from

within policy. If they believe a promotion from within policy is not exercised, they

would feel less uncertain regarding the future of their career in the organization,

becoming more motivated to consider career change. Overall, employees often feel

satisfied with these incentives and stimulated to perform better in the new job. They

are motivated to increase their knowledge or skill and to gear for higher levels of

productivity. With better jobs, employees may decline any opportunities at other

organizations. Hence, promotions can increase employees‟ loyalty to the organization

and reduce intention to change careers at lower level (Gaertner & Nollen, 1989).

10
2.2 Models of Job Promotion

There are a number of theoretical frameworks that explain job promotion within

firms. For example, the models developed by Lazear and Rosen (1981) and Rosen

(1986) view a promotion as a tournament.

Because the new hires know that not all of them will receive a promotion, the

probability of promotion provides an incentive to exert effort without the need for any

formal contract between workers and firm. Landers, Rebitzer and Taylor (1996) argue

that the income sharing typical of professional employment relationships with adverse

selection (e.g., large law firms) creates incentives to promote those with greatest

propensity to work hard. Since this propensity is unobservable, firms will use

indicators of it (such as, hours of work or overtime hours) for the purpose of selecting

workers for promotion.

While tournament theory largely ignores the fact that external labour markets also

provide incentives for workers (and firms), other models emphasize the strategic role

played by promotion, which makes the firm's knowledge about the worker available

to the public. Waldman (1984) and Bemhardt and Scoones (1993) show that, if a

worker's ability can only be observed by the worker's employer, competing firms can

only infer the employee's ability level indirectly from his/her curriculum vitae (e.g.,

past positions, education, training).

Since it is optimal to promote only the relatively able workers, competing employers

must revise upward their expectations of a worker's ability upon promotion. The

magnitude of the associated wage increase may either encourage other firms to

compete for that worker or discourage them from doing so.

11
On the other hand, a firm has an incentive to exploit its private information about an

able worker by not promoting the worker as quickly or often as is socially optimal.

Furthermore, in cases where multi-tasking concerns matter, firms (and typically, but

not exclusively, large firms) may want to use subjective measures of performance to

evaluate their workers, whereby pay is at the discretion of the impressions of a

superior or supervisor (Prendergast and Topel 1996). In these cases, a promotion may

be a means of constraining favouritism or rent-seeking activities.

Lazear and Rosen (1990) presented another model of the promotion process in which

the receipt of promotions and training is based on the individual's revealed ability at

the job. While men and women are assumed to have similar labour market abilities,

women are assumed to have greater nonmarket abilities and opportunities, and

consequently they are more likely than men to depart the firm. Since job leaving

among those promoted imposes a cost on the firm, the employer will have a higher

promotion standard for women and be less likely to promote women than men.

Promotions may also be the result of human capital investments. The human capital

model suggests that workers often receive training specific to a particular job, which

makes them more valuable to the employer providing the training (Mincer, 1974). The

accumulation of firm-specific human capital usually involves joint investment by both

the employer and the employee, so that both parties have an incentive to maintain a

long-term relationship (Becker, 1975). A promotion ladder that is, a process by which

jobs are assigned by seniority and wages are attached to jobs in a fixed distribution of

prizes-may lead to firm-specific human capital investment and efficient turnover

(Carmichael, 1983).

12
Individuals acquire skills and experience in one job that are transferable to a higher-

level job along the worker's career. Job match theory indicates that information about

the quality of a job match reveals itself over time (Jovanovich, 1979).

A promotion may be the firm's optimal response after learning about the worker's

productivity. Furthermore, the longer a worker's tenure, the more specific human

capital accumulated, and the more costly it would be for the firm to find another

external candidate who could outperform the internal worker (Chan 1996).

2.3 Determinant of job promotion

Firms‟ promotion policies are a means of increasing productivity within an

organization by increasing human capital acquisition, increasing effort, of inducing

separating equilibria in terms of worker types (Chang and Wang, 1995), or even of

constraining favouritism (Prendergast and Topel, 1996). Firms may backload

compensation to elicit higher levels of effort, where effort may be proxied by hours of

overtime work (Landers et al., 1996). If women are constrained by family factors

from working long hours, this may lead to gender differences in promotion rates. Any

change in the determinants of promotion, as one move up the organizational ladder,

would reveal how an individual's ultimate occupational achievement is patterned by

particular background variables. For example, while race and gender may have little

impact on advancement prospects in low salary grades, it has been suggested (e.g.,

Auster 1988, p. 138 cited in Spilerman & Lunde, 1991) that these personal attributes

are significant factors in promotion decisions at higher levels.

Booth and Francesconi (2000) opined that there may also be gender differences in the

way family responsibilities affect promotion and mobility; if women are more likely

13
to quit, firms will be less likely to train and promote them. On the other hand, if

women view promotion as unlikely due to discriminatory promotion practices, they

may be less prone to put themselves forward for training programmes at the firm.

At the instance of opening of a suitable position in the firm, a promotion is likely to

occur when the employer holds a combination of positive beliefs about the worker.

In the study of Job Mobility in 1990s, Booth and Francesconi (2000) suggested that

job promotion in an organization may be influenced by tenure in the current job,

labour market experience, highest educational qualification, usual hours of overtime

work, marital status, number of children by three age groups (aged 0 to 4; 5 to 11; and

12 to 16), union coverage, working in the public sector, establishment size,

occupation of origin, cohort of entry into the labour market, and local unemployment

rate.

Francesconi (2001) opined that promotion may occur if the employer believes that the

worker has acquired new productive human capital (proxied by experience and

tenure), has a strong commitment to the firm (tenure), adequate ability and skills

(education and occupation) and/or inclination to work hard (overtime hours).

Francesconi (2001) further observed that most of the significant predictors of

promotion are the same for men as for women. According to him, all workers, being

married, having fewer young children, being employed in a full-time job, working

longer overtime hours and in large firms, and being at higher levels of the

occupational ranking are all positively associated with the probability of promotion.

He indicated that for example, the probability of promotion for men working part-

time decreases by 6 percentage points as compared to men working full-time.

14
The probability of promotion for women in managerial professions increases by 8.5

percentage points as compared to women in semi-skilled and unskilled professions.

In the study of Spilerman & Lunde (1991), they indicated that if credentials matter in

job promotion, it is the academic degree most relevant to job performance in a

particular grade that will have the greatest impact on advancement prospects from that

rank.

Francesconi (2001) found that men and women in managerial occupations face,

respectively, 7.6 and 8.5 higher percentage points of promotion than semi-skilled and

unskilled workers. Professionals and skilled non-manual workers have 3-5 greater

promotion probabilities than workers in the base category. His result suggests that

workers in high-level occupations are promoted more often than workers in low-level

occupations. That is, workers in high-level occupations either have better outside

opportunities or face longer career ladders, or both (Sicherman and Galor 1990;

Landers, Rebitzer and Taylor 1996).

2.4.1 Consequences of Promotions

There can be a constellation of effects that a promotion triggers. A promotion may

serve as a formal method to increase wages and responsibilities or may be a

mechanism by which workers move along their wage-tenure profiles and firms

increase their workers' job attachment. Not all wage increases are necessarily

promotions. Francesconi (2001) advocated that there must be something about a

promotion that makes it different from a wage gain.

15
Furthermore, a promotion may have an impact on other aspects of the job, such as

training opportunities, career development, supervisory responsibilities and status.

2.5 Context of Job Satisfaction

In traditional neo-classical economics, work is presented as a source of disutility, with

income earned through work treated as compensation for leisure time forgone. Work,

however, need not necessarily be a disutility. Some individuals in some circumstances

may derive degrees of satisfaction from the working situation, for example when it is

viewed as a “potential source of personal achievement and self-fulfilment” (Spencer,

2009, p. 3).

In the context of this latter perspective, job satisfaction may be thought of as a utility

function (Clark and Oswald, 1994), presented in the following form:

U = u (y; h; i; j) (1)

Where U is the utility from work; y the income; h the hours; i the set of individual

characteristics; and j the set of job-specific characteristics or job aspects. Job

satisfaction is what Freeman (1978) describes as a “subjective variable”, measuring

“what people say” rather than “what people do” (p. 135).

Locke (1976) describes job satisfaction as a “self-reported positive emotional state

resulting from the appraisal of one‟s job or from job experiences”. Based on his

review of empirical studies on job satisfaction, Locke determined that seven work

issues are typically associated with job satisfaction.

16
These include: mentally challenging work, personal interest in the specific job, work

that is not too physically tiring, perceived equitable rewards, appropriate working

conditions, employee self-esteem, management assistance in managing the workplace

by minimizing conflict and ensuring that work is interesting and good pay/promotions

are available. Results of several other studies provide additional characteristics

associated with job satisfaction. Hackman and Lawler‟s (1971) study results indicate

that when jobs are high on four core dimensions (job variety, autonomy, task identity,

and feedback), employees who want higher order need satisfaction are likely more

motivated and more satisfied with their jobs than workers whose jobs are not high on

these four core dimensions.

The Hackman and Oldham (1976) model explains how job characteristics and

individual worker differences interact to impact on job satisfaction, motivation and

productivity of workers. Results also indicate that workers who have jobs with high

skill variety, task identity, task significance, autonomy, and feedback are more

motivated, satisfied and productive than workers whose jobs do not have these

characteristics.

Traditional studies of the determinants of job satisfaction (e.g. Gazioglu and Tansel,

2006; Idson, 1990; Jones et al., 2009; Schmidt, 2007) conclude that job satisfaction

relates to personal characteristics such as gender, age and education and to job

characteristics such as promotion prospects, hours worked, training provided and

establishment size. Males, individuals in their 30s, with higher levels of education,

working in larger establishments, with no promotion prospects, who have received no

17
training and who work long hours tend to have relatively lower levels of job

satisfaction.

2.5.1 Importance of Job Satisfaction

Job satisfaction is a very important attribute which is frequently measured by

organizations. According to Mitchell and Lasan, (1987), it is generally recognized in

the organizational behaviour field that job satisfaction is the most important and

frequently studied attitude.

Job satisfaction is so important in that its absence often leads to lethargy and reduced

organizational commitment (Levinson, 1997; Moser, 1997). Lack of job satisfaction is

a predictor of quitting a job (Jamal, 1997). Sometimes workers may quit from public

to the private sector and vice versa. At the other times the movement is from one

profession to another that is considered a greener pasture. This later is common in

countries grappling with dwindling economy and its concomitant such as poor

conditions of service and late payment of salaries (Nwagwu, 1997). In such countries,

people tend to migrate to better and consistently paying jobs (Fafunwa, 1971).

Job Satisfaction can be an important indicator of how employees feel about their jobs

and a predictor of work behaviours such as organizational citizenship (Organ & Ryan,

1995), absenteeism (Weggeret „al, 2007) and turnover (Saari & Judge, 2007). Further,

job satisfaction can partially mediate the relationship of personality variables and

deviant work behaviours (Mount and Johnson, 2007).

18
One common research finding is that job satisfaction is correlated with life

satisfaction (Rain & Steiner, 1991).

This correlation is reciprocal, meaning people who are satisfied with life tend to be

satisfied with their job and people who are satisfied with their job tend to be satisfied

with life. However, some research has found that job satisfaction is not significantly

related to life satisfaction when other variables such as non-work satisfaction and core

self-evaluations are taken into account (Rode, 2004).

Job satisfaction has received significant attention from researches and practitioners in

recent years. Part of the interest in job satisfaction is due to the correlation between

satisfaction and employee behaviour. More satisfied workers are less likely to leave

their employer (Clark, 2001; Shields and Ward, 2001), have lower rates of

absenteeism (Clegg, 1983) and have higher productivity (Mangione and Quinn, 1975

as quoted by Kosteas, 2008).

2.6 Theories of job satisfaction: The Dual Factor Theory.

Herzberg et al. (1959) expounded the dual factor theory of job satisfaction which

states that there are two groups of factors which determine job satisfaction or job

dissatisfaction. Herzberg‟s (1966) two-factor theory suggests that only job content-

related facets (e.g. achievement, responsibility, the work itself) lead to satisfaction.

On the other hand, job context-related factors (e.g. pay, security, working conditions)

lead to job dissatisfaction but not to satisfaction. As pointed out by (King, 2003), the

two-factor theory is not entirely clear, and there are, at least, five possible

19
interpretations of the theory (1970, pp. 18- 19). Indeed, several reviews of the

Herzberg-related literature have cast serious doubt about the validity of his theory

(House and Wigdor, 1967).

2.6.1 Situational Occurrences Theory

Quarstein et al. (1992) also posit the situational occurrences theory of job satisfaction

which contends that job satisfaction is determined by two factors as does Herzberg‟s

theory. However, as the authors indicate, this is the only similarity between the two

theories. The situational occurrence theory argues that job satisfaction is a function of

situational occurrences and situational characteristics and that any given factor, e.g.

pay or recognition, can result in either job satisfaction or dissatisfaction. It does not

distinguish between job content or job context-related factors. Rather, it posits that

overall job satisfaction could be predicted from a combination of situational

occurrences (which can be positive e.g. coffee/tea breaks or negative e.g. insufficient

paper towels in rest rooms), and situational characteristics (which are stable such as

pay, and working conditions) than by either situation alone.

2.6.3 Equity Theory

Adams (1965) articulated a construct of equity theory on job motivation and job

satisfaction in 1965. The theory stated that the way individuals are treated at work

affects their behaviour and attitude to work. According to Kannan (2005), equity

theory is founded on the assumption that workers expect justice, fair play, or equity in

treatment by their employers. An employee seek a fair balance between what he or

she puts into the job and what he or she gets out of it. Adams (1965) calls these inputs

and outputs. Individuals form perceptions of what constitutes a fair balance or trade of

20
inputs and outputs by comparing their own situation with other “referents” (reference

points or examples) in the workplace.

According to Adams, colleagues, friends, and partners also influence establishment

of these benchmarks and their own responses to them in relation to their ratio of

inputs to outputs. If people feel their inputs are fairly and adequately rewarded by

outputs (the fairness benchmark being subjectively perceived from market norms and

other comparable references), then according to equity theory they are happy in their

work and motivated to continue their inputs at the same level. Research by Adams

(1965) and others confirms equity theory as one of the most useful frameworks for

understanding work motivation, job satisfaction, and pay fairness.

2.7 Factors Influencing Job Satisfaction

Following is a review of the relationship between demographic factors and job

satisfaction; relationship between psychological/genetic influences on job satisfaction;

and company operation influences on job satisfaction.

2.7.1 Relationship between demographic factors and job satisfaction

Several studies have been conducted to better understand the relationship between

demographic factors and job satisfaction. Results of a 1957 study of age issues and

job satisfaction (Herzberg

et al., 1957) provide evidence that job satisfaction decreases initially and then

increases as workers become older. Hulin and Smith (1965) suggest that job

satisfaction increases with age. However, Carrell and Elbert (1974) note that job

satisfaction increases with age until a time near retirement when job satisfaction

significantly declines. Lee and Wilbur (1985) conclude that older employees are more

21
satisfied with extrinsic factors while younger employees are more dissatisfied with

intrinsic factors.

A number of researchers have found gender differences in job satisfaction (Quinn et

al., 1974; Murray and Atkinson, 1981; Golding et al., 1983). Voydanoff‟s (1980)

study of differences in job satisfaction among men and women showed that intrinsic

and extrinsic job characteristics are important for both women and men. He found that

women believe “role strain” (unclear job scope, too little authority, lack of

information needed to complete a job, unclear expectations from managers) is more

important than men and men are more concerned about financial rewards and

promotions than women. Martin and Hanson (1985) noted that any differences in job

satisfaction for men and women depend on whether the person is the primary wage

earner for the family.

Chui (1998) reviewed ten research studies measuring job satisfaction for attorneys

and found that for six of the studies, women had lower satisfaction than men. When

asked about their job satisfaction, Chui noted lower job satisfaction for women in two

areas: opportunities for influence/promotion and financial rewards. Weaver (1978)

and Hodson (1989) found no real differences in job satisfaction for men and women.

2.7.2 Psychological and genetic influences on job satisfaction

Some researchers have studied psychological and genetic influences on job

satisfaction. Arvey et al. (1989) concludes that about 30 percent of the variance in job

satisfaction is due to genetic factors. Staw and Ross (1985) note that temperament

influences job attitudes and that environmental aspect of jobs are less important.

22
According to Gerhart (1987), both temperament and environmental factors are related

to job satisfaction.

Other researchers (Staw et al., 1986) noted that temperament is important, but they do

not suggest whether genetic or social forces are more important or how other external

factors might influence temperament. House et al. (1996) and Motowidlo (1996)

found evidence that differences in job satisfaction among workers can be traced to

measures of affective temperament. Researchers Judge et al. (1997) proposed that

how workers assess their self-worth is related to their levels of job satisfaction.

However, Judge et al. (1998) and Judge et al. (2000) concluded that workers who

have positive self-worth are more likely to be satisfied with their jobs than workers

who have less positive feelings of self-worth. According to Abraham (1998),

emotional dissonance has direct consequences on job dissatisfaction by increasing job

tension and negative emotions for employees. Managers should consider both

emotions and job attitudes in their efforts to manage employee withdrawal–

absenteeism or turnover (Pelled and Xin, 1999).

2.7.3 Company operations influences on job satisfaction

Company policies certainly have an impact on levels of job satisfaction. Researchers

found that job satisfaction and satisfaction with work-family balance are determined

by job related factors (Saltzstein et al., 2001). According to Hicks-Clarke and Iles

(2000), job satisfaction of managers is higher when there is support for diversity in

the workplace. Specifically, these researchers found that both career satisfaction and

organization commitment are positively impacted when diversity is recognized in the

23
company. In addition, the company grievance system‟s support of procedural and

distributive justice is a strong predictor of satisfaction with management.

The amount of control/autonomy employees have in the workplace also impacts job

satisfaction. For example, type A employees who perceive they have control have

greater job satisfaction and better performance than those who perceive low control

(Lee et al., 1990). Savery and Luks (2001) found that employees who have autonomy

in decision making have the highest levels of job satisfaction and lower job stress than

other employees. While Wagner (1994) proposed that participation significantly

affects performance and satisfaction, he found the average size of these effects to be

small. Research also shows that employees in less organized work environments

(more work variety and more job autonomy) are more satisfied than employees in

very bureaucratic organizations (Finlay et al., 1995).

Whether the organization is public or private may have some impact on job

satisfaction. In a study by DeSantis and Durst (1996), results indicated that both

public and private sector employees‟ job satisfaction is dependent on several work-

related factors: having meaningful work, a good physical work environment, friendly

co-workers, and being assigned work where the employees can excel. In addition to

these factors that affect job satisfaction, public sector employees also need to believe

in the competence of their supervisor. In a study of state government employees

Emmert and Taher (1992) found that job satisfaction for blue collar workers is higher

than for professional employees, but work motivation is no higher for professional

employees.

24
2.8 Relationship between job promotions and job satisfaction

In the study of job satisfaction and promotion, Kosteas (2011) after controlling for

wages and other firm and individual characteristics found that a promotion has

approximately the same impact on job satisfaction as a sixty-seven percent wage

increase. This finding indicates that workers value the promotion itself, above and

beyond the wage increase that normally accompanies a promotion. Thus, promotions

may be a relatively effective mechanism for keeping workers happy. Kosteas found

that promotion expectations also affect job satisfaction; workers who believe a

promotion is possible in the next two years report higher job satisfaction.

Furthermore, past promotions continue to have an impact on job satisfaction;

however, the effect fades over time. Kosteas (2011) again reported that promotion

receipt has a larger effect on job satisfaction for workers who do not believe another

promotion is possible in the next two years compared with those who do believe a

promotion is possible. The positive correlation between job satisfaction and both

promotions and promotion belief persist even when controlling for other job amenities

and characteristics such as supervisory status and responsibilities. Koteas (2011)

further found that men have greater promotion expectations. The rate at which men

report a promotion is possible is 62.6 percent, as opposed to 53.7 percent for women.

However, men and women are equally likely to report having received a promotion.

Thus, men are more likely to have unfulfilled expectations regarding promotions.

As an indirect measure of the link between job satisfaction and future quits, some

studies have also investigated the importance of satisfaction with advancement

opportunities on future job attachment, with mixed results. Clark (2001) finds that

25
both satisfaction with pay and job security are the most important job satisfaction

categories for determining future quits, while satisfaction with promotion

opportunities is not a significant factor. Using cross-sectional data on British nurses,

Shields and Ward (2001) find that dissatisfaction with promotion and training

opportunities have a stronger effect on intentions to quit than dissatisfaction with

workload or pay. Shields and Ward also find that nurses who report promotion

prospects as the most important work characteristic do not have significantly different

job satisfaction than those who report other employment characteristics as most

important.

Using data from the 1989 and 1990 waves of the National Longitudinal Survey of

Youth (NLSY), Pergamit and Veum (1989) find a positive correlation between

promotions and job satisfaction. However, their empirical model only controls for

promotions and the type of job change. De Souza (2002) estimates the effect of

promotions on worker satisfaction, focusing on promotion satisfaction in a small

sample of managers. De Souza finds that managers who received a promotion are

more satisfied with promotion opportunities and have greater promotion expectations

for the future. De Souza also considers other aspects of employee satisfaction, but

does not analyze overall job satisfaction.

26
 CHAPTER THREE

METHODOLOGY AND ORGANIZATIONAL PROFILE

3.0 Introduction

This chapter focuses on the method used in achieving the objectives of the study. It

takes into account the entire research design i.e. the sampling technique; sample size

of the study; the nature and source of data, and the way these data were collected and

analysed. The chapter also captures the profile of the study area.

3.1 The Research Design of the Study

A research design is the overall plan for relating the conceptual research problem to

relevant and practicable empirical research. In other words, the research design

provides a plan or framework for data collection and its analysis.

There are three research designs being descriptive, exploratory and explanatory. This

is an explorative research which aims at finding out the factors that determine internal

promotion in Cocoa Marketing Company Limited, the level of job satisfaction among

the workers, whether job promotion has contributed to job satisfaction among the

workers. The researcher designed questionnaires for the workers. Open ended

questionnaires were also employed to gather more data from the human resource

management department. This enabled the researcher to sample and evaluates the

views of management and employees to be able to draw reasonable conclusions from

the data gathered.

27
The study adopted both qualitative and quantitative research approach. Qualitative

research answers “What? “Or “Why?” questions in the study. This approach enables

the researcher to comprehensively understand and gain insight about the problem

under investigation. On the other hand the quantitative research approach answers

“How many?” question in the study, thus allows the measurement of relationships

between variables in a systematic and statistical way.

The close and open ended questionnaire provided predominantly quantitative data and

to a minor extent qualitative data. This qualitative data was used to shed some light

on the quantitative data. This enabled the researcher to investigate the research

problem in more depth.

3.2 The Population of the Study

The population is the relevant group of people under investigation. It is the entire set

of individuals and objects of interest or the measurements obtained from all

individuals or objects of interest. In a more current definition, Malhotra (2007) define

population as the aggregate of all the elements, sharing some common set of

characteristics that comprises the universe for the purpose of the research problem.

The target population for the study included all workers of Cocoa Marketing

Company Limited in Ghana. In all the population of interest is 672. Table 3.1 shows

the breakdown of staffs‟ population at various centres.

28
Table 3.1: Staff Population of Cocoa Marketing Company Limited at various

centres

Branch Category Total

Population
Junior staff Senior staff Management
Accra 100 50 25 175
Kumasi 80 17 5 102
Takoradi 120 25 13 158
Tema 190 30 17 237

Sob-total 490 122 60 672

Source: HR department, 2014, Cocoa Marketing Company Ltd.

3.3 The Sample Size

A sample is a portion, or part, of the population of interest. According to Malhotra

(2007), a sample is a subgroup of the elements of the population selected for the

participation in the study. The importance of samples lies in the accuracy with which

they mirror the larger population. The study was conducted using all categories of

workers i.e. junior staffs, senior staffs and management staffs of Cocoa Marketing

Company Limited.

The sample size for the questionnaires administration was 149. The sample sizes were

selected based on the scientific approach formula given by Miller and Brewer (2003).

With a confidence interval of 90 percent, the sample size was determined using the

formula given by Miller and Brewer (2003) below;

Where:

n = the sample size,

N= the sample frame and

α = the margin of error (10%).

29
Promoted staffs

= 67

None promoted staffs

= 89

Table 3.2: Samples that the questionnaires were administered to

Centres Total sample Sampled staff Staffs not promoted

promoted yet
Accra 38 17 21
Kumasi 22 10 12
Takoradi 36 16 20
Tema 53 24 29
Total 149 67 82

3.4 Sampling Technique

The main sampling technique employed for the study was the simple random

sampling (SRS). SRS is a probability sampling technique in which each element in

the population has a known and equal probability of selection. Every element is

selected independently of every other element and the sample is drawn by a random

procedure from a sampling frame (Malhotra, 2007). In order to operationalize the

adopted sampling technique, the lists of staffs of the company was obtained from

human resource department. Separate lists of all staffs that have had promotion since

they join the company and are still at post were also obtained from the human

resource department. The lists were therefore categorized into two subgroup i.e. those

that have enjoyed promotion and those that have not. The categorization was to ensure

homogenous subgroups before sampling. Total populations of 205 staffs have been

30
promoted and are still at post. That of non-promoted staffs was 467. The lists were

then numbered in alphabetical order and the samples were selected by the sampling

technique using the table of random numbers.

By employing this method, the characteristics of the individual were therefore

irrelevant to their selection. The table of random numbers was therefore used in order

to satisfy the condition of randomness which is the basis of the SRS approach.

All elements in each stratum (i.e. promoted staffs and non-promoted staffs) of the

sampling frame were numbered and the first 67 promoted staff and in the case of non-

promoted staffs, first 82, selected by the sampling technique became the sample for

the questionnaires administration. However, each sample in the stratum was

proportionally selected on the centre basis.

Purposive sampling technique was also adopted to select key personnel at the human

resource department to respond to the open ended questionnaire. Purposive sampling

involves choosing people whose views are relevant to the issue being looked at, where

the researcher tried to create a representative sample without sampling at random.

These special attributes of the sample ensured that respondents were informative and

qualify enough for impacting knowledge on the issue at stake.

3.5 Data Collection Instrument

The study collected data through questionnaires. The researcher personally

administered the questionnaires to the selected sample.

31
Open ended questionnaires were also used to solicit information relevant to the study

from management members at human resource department. The data collection

process was carried out over a period of one month.

The data gathering techniques used for the questionnaire included a biographical and

job description sections as well as the job satisfaction and promotion. The

biographical and job description aspects of the questionnaire were a self-developed

questionnaire that incorporated the following personal information of the respondents:

gender, age, marital status, educational qualifications, job classification, job

description and job grade and tenure. job satisfaction and promotion sections of the

questionnaire consisted of Likert structured questions that were based on the literature

review.

The Likert questions were scaled from either “Very Satisfied” scoring “5” to “Very

Dissatisfied” scoring 1 for the job satisfaction or strongly agree scoring “5” to

strongly disagree scoring “1” for promotion. Where a statement is not applicable, a

score of “0” was accorded.

The first drafts of the questionnaire were pre-tested using staffs of Kuapa Cocoa

License Buying Company at Asokwa, Kumasi. This allowed questionnaire lapses

corrected before sent to the field for administration. Appendix 1 presents the final

structured questionnaire used for the study.

3.6 Data Analysis

The quantitative data were analysed through Statistical Package for Social Services

(SPSS) version 16. This is because the SPSS offers a full range of contemporary

statistical methods.

32
It also has a good editing and labelling facilities as well as ability to produce output in

both report and table formats and handles missing data with ease. The statistical

methods involved those of descriptive (mean and standard deviation) and inferential

statistics. Frequency tables and graphs were also employed in the data analysis.

The results were also subjected to cross tabulations to bring out details of the results

in relation to the demographic background and job description of the respondents.

Chi-square was then used to test for significances of dependencies between the results

and the demographic background and job description of respondents.

The open-ended questions of the questionnaire were subjected to detailed analysis and

conclusions drawn.

3.7 Profile of Study Institution - COCOA Marketing Company (Ghana) Ltd

The CMC is the world's largest single Seller and Exporter of premium cocoa from

origin. Our customers are assured of cocoa with that exceeds the rigorous industry

standards and meets the unique taste, texture and appearance of premium quality

cocoa. Our local and international network gives us control over the domestic supply

chain and also gives us reach in the international market.

The CMC (UK) Limited, our wholly owned subsidiary Company in London has

geographical proximity to key markets in Europe and the rest of the world. At the

local level, our operational centres in Tema, Tarkoradi and Kumasi gives us up-to-the

minute information and control over the supply chain.

33
The superior quality specification of our product and technical skill of our staff keep

the CMC at the forefront of marketing in the international arena.

CMC as a wholly subsidiary of the Ghana Cocoa Board was established in 1961 to

perform the following functions.

 To Promote, Sell and Deliver Ghana's Cocoa to both local cocoa processors

and the international traders and processors.

 To take delivery of and to store Ghana's cocoa at its designated warehouses in

Tema, Takoradi and Kumasi take-over centres.

 To support the financing of Ghana's cocoa sector by facilitating the annual

syndicated loan arrangements and to ensure that sale proceeds are collected

towards the repayment of the loan.

The Cocoa Marketing Company employs people, stationed in Accra, Tema, Takoradi

and Kumasi. The Company is committed to innovation in its business processes and

collaborates effectively with stakeholders to meet the social, economic and

environmental challenges of today's business environment.

Vision

Our vision is of CMC as a world-class company within Ghana‟s cocoa industry, with

global reputation for professionalism, skill and efficiency.

34
Mission

Be a leader in cocoa marketing by delivering value and satisfaction to our customers.

 Be a world-class institution within Ghana's cocoa industry by delivering

effective sales and promotion of Ghana's cocoa.

 Operate global standard logistics and documentation systems in cocoa taking-

over, cocoa warehousing, shipping and collection of proceeds for Ghana's

cocoa.

 Manage Ghana's cocoa marketing operations at least cost.

35
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Introduction

This chapter presents the findings of the study that are required to answer the research

questions of the study thereby achieving the study objectives. In order to keep the

findings in the right context, it first presents the sample profile of the respondents of

the questionnaire. With regards to the main issues of the study, the chapter first

discusses the promotional status of staffs of Cocoa Marketing Company Limited

(CMC); determinants of job promotion; perception towards promotion policy at CMC

before looking at the promotional policy and its consequence of employee

satisfaction. In order to rationalize the findings of the study, the chapter also discusses

these findings in the light of relevant literature.

One hundred and five out of the 149 questionnaires sent out were responded and

returned. Thus, the study registered a response rate of 70.47% which can be

considered high for a study in a developing country like Ghana. According to

Armstrong and Ashworth (2000), texts on survey methods have usually advised that

response rates of 60% and over are necessary to ensure that the replies of those

responding will give an accurate picture of the population from which they are drawn.

4.2 Background characteristics of the respondents

The background characteristics of the respondents consist of gender, age, level of

education and number of year respondents has been in the service.

36
4.2.1 Gender

Figure 4.1 shows gender distribution of the respondents. It can be observed that

seventy two of the respondents representing 68.6% were males while thirty three

representing 31.4% were female. This finding suggests that the gender distribution in

the Cocoa Marketing Company is not normally distributed as the male population is

more than the female population.

Figure 4.1: Gender of the Respondents

Source: Field Survey, June 2014

4.2.2 Age of the respondents

The modal age group of the respondents is those that of age group of 25 - 30 years.

Fifty three of the respondents representing 50.5% fell within this age group. Twenty

five of the respondents (23.8%) were between the age group of 31-36 years. Fifteen of

the respondents (14.3%) were between the age group of 37- 42 years. About twelve

respondents representing 11.5 % were above age 43 years. Table 4.1 presents the

result in detail. The age distributions of the respondents indicate that the staffs are

37
more of young adult and therefore CMC should provide good condition of service that

may encourage them to stay in the service for long.

Table 4.1: Age of the Respondents

Age group/years Frequency Percent

25-30 53 50.5

31-36 25 23.8

37-42 15 14.3

43-48 7 6.7

49-54 2 1.9

55 and above 3 2.9

Total 105 100.0

4.2.3. Level of Education

Figure 4.2 presents the educational levels of the respondents in detail. All the

respondents seem to have formal education. Majority of the respondents (64.8%)

mentioned that they have first degree. Also, 9.5% have been educated up to master

degree level. About 20 respondents (19%) indicated they had diploma/HND

qualification. One respondent indicated senior high school certificate as academic

qualification whiles six, 5.7% mentioned A‟ Level qualification. This suggests that,

CMC is well endowed with quality staff as most of the respondents have had their

tertiary education.

38
Figure 4.2: Highest Education

Source: Field Survey, June 2014

4.2.4 Duration of Service

Most of the respondents (43.8%) have spent between three or less years at Ghana

Cocoa Marketing Limited while 28 of the respondents representing 26.7% have spent

4-8 years at CMC. Nine and fourteen of the respondents have respectively been with

CMC for 14-18 years and 9-13 years. Table 4.2 shows the detail of the result. The

outcome shows that about 44% of the staffs have spent less than three years with

CMC and this reflect in the staffs‟ age group.

39
Table 4.2 Duration of service (years)

Frequency Percent

3 or less 46 43.8

4-8 28 26.7

9-13 14 13.3

14-18 9 8.6

19 and above 4 3.8

N/A 4 3.8

Total 105 100.0

Source: Field Survey, June 2014

4.2.5 Job Classification and Years of experience at current rank

Table 4.3 shows the result of job classification whiles table 4.4 shows years of

experience at the current rank. Twenty eight of the respondents representing 26.7%

indicated senior staff category as their job classification whiles 77 of the respondents

representing 73.3% indicated junior staff category as their job classification.

Table 4.3: Job Classification

Staff category Frequency Percent

Senior staff 28 26.7

Junior staff 77 73.3

Total 105 100.0

Source: Field Survey, June 2014

40
Sixty one out of One hundred and five respondents representing 58.1% have spent

less than three years in their current position while the remaining forty two (40%)

have spent between 4 – 8 years at their current position. However, two staffs did not

answer this question.

Table 4.4: No. of years been on current rank

Frequency Percent

Valid Less than 3years 61 58.1

4-8 years 42 40.0

Total 103 98.1

Missing System 2 1.9

Total 105 100.0

Source: Field Survey, June 2014

4.3 Recipients of Job Promotion at Cocoa Marketing Company Limited

Figure 4.3 shows recipients of job promotion by the staffs of Cocoa Marketing

Company Limited. Majority of the respondents, 59 representing 56% indicated that

they have not received promotion ever since they joined the company. On the other

hand, 44% of the respondents indicated that they have been promoted before.

41
Figure 4.3: Recipients of Job Promotion

However, when asked those who have not had promotion before about the promotion

expectation in their current organisation, 52 out of 59 respondents representing 88.1%

indicated that they expect future promotion whiles 7 indicated otherwise. Table 4.5

shows the result in detail. Promotion expectations may encourage the staffs to work

hard and therefore improve productivity of the organisation. Kosteas (2011) found

that promotion expectations affect job satisfaction; workers who believe a promotion

is possible in the next two years report higher job satisfaction.

Table 4.5: Recipient of Job Promotion

Frequency Percent

Yes 52 49.5

No 7 6.7

NR 46 43.8

Total 105 100.0

42
4.3.1 Outcome /Consequence of Promotion

The study found most respondents indicating pay increase as an outcome of

promotion for staffs of CMC. Seventy two out of the 105 respondents mentioned pay

increase. Sixty six out of the 105 respondents also indicated higher rank as a

consequence of promotion. Eight staffs also mentioned higher responsibilities. Only

two respondents mentioned big office as an outcome of promotion. Figure 4.4 shows

the result in detail. On interviewing the management, a member confirmed the above

observations.

A management member who has worked with the organisation for 22years opined

that “when staffs are promoted their salary changes for better, rank changes for higher

and they enjoy prestige”. Job promotion is not only about wage increment but other

indication as opined by the respondents. As Francesconi (2001) put it, “there must be

something about a promotion that makes it different from a wage gain”. The

consequences of job promotion in Cocoa Marketing Company Limited as revealed by

the staffs are consistence with Kalesh et, al. (2007) findings. Kalesh et, al. (2007)

asserted that promotion involves advancement in terms of designation, salary and

benefits, and in some situations the type of job activities may change a great deal.

43
Figure 4.4: Outcome of Job Promotion

4.4 Determinants of internal promotion at Cocoa Marketing Company

4.4.1 Acquisition of new productive human capital (by experience)

Figure 4.5 depicts the extent to which respondents believe an acquisition of new

productive human capital influence job promotion. As highlighted in the figure,

majority of the respondents (58.1%) either agreed or strongly agreed that when a staff

acquired new productive human capital it increases the chance of job promotion. On

the other hand, only 15.3% either disagreed or strongly disagreed. This shows that

acquisition of new productive human capital may influence job promotion.

44
Figure 4.5: Extent to which respondents agree or disagree with acquisition of

new productive human capital influencing job promotion

4.4.2 Worker's Commitment to the Firm (tenure)

The study found most of the respondents confirming that worker‟s commitment to the

firm influence job promotion. As highlighted in figure 4.6, about half (52.4%) of the

respondents either agreed or strongly agreed to the statement that “worker‟s

commitment to the firm influence job promotion”. On the other hand, 18.1% either

disagreed or strongly disagreed.

45
Figure 4.6: Extent to which respondents agree or disagree with worker’s

commitment influencing job promotion

To test the assertion that tenure or commitment influences promotion in the context of

this study, duration of service with the company was used as the proxy for

commitment, and responses of recipient of promotion was first cross tabulated before

the chi-square test was ran. Figure 4.7 shows the result of the cross tabulation in

diagram form and table 4.6 shows the result of the chi-square test. The study found

that almost half (46.4%) of the respondents who have spent at least four years with the

company have received promotion. All the respondents who have spent nine years

and above with the company have also received promotion. Even about one-tenth

(8.7%) of those who had spent less than three years have also been promoted.

46
Figure 4.7 Job promotion and duration of service

The chi square result confirmed that job promotion depends on tenure or commitment

with on organisation. The chi-square recorded a value of 57.819 and the

corresponding p-value of 0.000 signifies dependency even at 1% significance level.

This finding means that, promotion is an important tool for CMC to gain full

commitment from its employees. Hence the organisational policies on promotion

should benefit each employee across levels for them to give off their maximum

commitment.

47
Table 4.6: Chi-square test result for the dependency job promotion on tenure

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 57.819a 4 .000

Likelihood Ratio 72.484 4 .000

Linear-by-Linear Association 50.978 1 .000

N of Valid Cases 101

a. 3 cells (30.0%) have expected count less than 5. The minimum expected count is 1.74.

4.4.3 Worker's adequate ability and skills

Figure 4.8 presents the results for responses on whether worker‟s adequate ability and

skills influence job promotion. Almost two thirds (64.8%) of the respondents either

agreed or strongly agreed to the statement that “worker‟s adequate ability and skills

influence job promotion”. On the other hand, 11.5% either disagreed or strongly

disagreed.

48
Figure 4.8: Extent to which respondents agree or disagree with worker’s

adequate ability and skills influencing job promotion

4.4.4 Worker’s inclination to work hard (overtime hours)

Figure 4.9 shows the extent to which worker‟s inclination to work hard may influence

job promotion. Majority of the respondents although less than half (41%) either

agreed or strongly agreed to the statement that “worker‟s inclination to work hard

may influence job promotion”. On the other hand, at least one-third (34.3%) of the

respondents either disagreed or strongly disagreed. This shows that, worker‟s

inclination to work hard in Cocoa Marketing Company Limited may influence job

promotion.

49
Figure 4.9: Extent to which respondents agree or disagree with worker’s

inclination to work hard influence job promotion

4.4.5 Worker's position

Figure 4.10 below shows the distribution of the extent to which respondents agree or

disagree that workers position influence on job promotion. Clearly, the result in figure

4.10 illustrates that, respondents having indifferent view about the extent to which

worker‟s position influence job promotion. 33.3% of the respondents either agreed or

strongly agreed to the statement that “worker‟s position may influence job

promotion”. On the other hand, about 23.9 % of the respondents either disagreed or

strongly disagreed. However, the majority of the respondents (42.9%) indicated that

they were uncertain about the assertion that worker‟s position influence job

promotion.

50
Figure 4.10: Extent to which respondents agree or disagree with worker’s

position influencing job promotion

4.4.6 Worker's acquisition of academic degree most relevant to job performance

The study found most of respondents confirming that workers‟ acquisition of

academic degree that are most relevant to job performance influence promotion. As

highlighted in figure 4.11, almost three-quarters (73.5%) of the respondents either

agreed or strongly agreed to the statement that “worker‟s acquisition of academic

degree that is most relevant to job performance influence promotion”. On the other

hand, 12.4% either disagreed or strongly disagreed. Academic degree enhances one

skill to perform a task. This is in line with the study of Spilerman & Lunde (1991),

they indicated that if credentials matter in job promotion, it is the academic degree

most relevant to job performance in a particular grade that will have the greatest

impact on advancement prospects from that rank.

51
Figure 4.11: Extent to which respondents agree or disagree with worker’s

acquisition of academic degree most relevant to job performance influence

promotion

At the inferential level, the assertion that worker‟s acquisition of academic degree

most relevant to job performance influence promotion was found to depend on

educational level of the respondents. As indicated in Figure 4.12, a fraction of

respondents at all level of educational qualification agrees to some extent that

worker‟s acquisition of academic degree most relevant to job performance influence

promotion. As it can be deduced, all the respondents (100%) with Diploma/HND

qualification; 69.1% with degree qualification; and 60% with master degree

qualification either agree or strongly agree with the above assertion.

The respondents with these academic qualifications form the majority and therefore

their educational attainment may influence their opinion. However, 20% of master

degree qualification strongly disagree that worker‟s acquisition of academic degree

most relevant to job performance influence promotion.

52
Moreover, 11.7% of the first degree respondents either disagree or strongly disagree

with the assertion. In the case of those with SHS/O‟ Level qualification, they all agree

to the assertion whiles those with A „level qualification, half agreed and half

disagreed. The dependency is confirmed by the chi-square test result in table 4.7

where the observed chi-square and p – values were 42.021 and 0.000 respectively

suggesting a dependency even at 1% significance level.

Figure 4.12 Extent to which worker’s acquisition of academic degree most

relevant to job performance influence promotion among those with different

educational level of the study

53
Table 4.7: Chi-square test result for the dependency job promotion on relevant

academic qualification

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 42.021a 16 .000

Likelihood Ratio 43.131 16 .000
Linear-by-Linear Association .255 1 .613
N of Valid Cases 105

a. 20 cells (80.0%) have expected count less than 5. The minimum expected count is .06.

About the responses of the management on factors that determine internal promotion

in Cocoa Marketing Company Limited, an interviewed revealed that job performance,

long service, educational upgrade and availability of vacant position to be the major

factors. These responses confirmed the senior and the junior staffs positions. These

findings are consistence with literature. Francesconi (2001) opined that promotion

may occur if the employer believes that the worker has acquired new productive

human capital (proxied by experience and tenure), has a strong commitment to the

firm (tenure), adequate ability and skills (education and occupation) and/or inclination

to work hard (overtime hours).

4.5 Staff perception towards CMC promotional policy

To ascertain the perception employees have about promotional policy in CMC, a

series of questions relating to job promotion were posed to the respondents for their

opinions.

All questions (statements) were measured with five-point rating scales, with neutral

centre (Likert scale). On the basis of the scoring agreement, it could be deduced that

an average score below 3 of each component of a subject area denotes a disagreement

54
to the statement. On the other hand, any average score of more above 3 indicates

agreement to the statement.

Descriptive statistics were computed for responses to each statement with a mean

score and standard deviation. The mean and standard deviation scores of outcome of

employee perception about promotional policy are shown in Table 4.8

From Table 4.8 the Cocoa Marketing Company Limited provides opportunities for

career advancement for its employees as the result of the study had shown. The

statement that “My organization provides opportunities for career advancement”

recorded a mean score of 3.63 with the standard deviation of 0.993. There seem to be

limited opportunity for promotion in CMC.

The statement that “Opportunities for promotion are limited in my organization”

recorded a mean score of 3.25 indicating agreement to the statement. Employees of

CMC perceived that promotion policy is unfair. This was confirmed by the mean

score of 3.17 with the high standard deviation of 1.004. This standard deviation shows

wide variation within the responses.

A statement that promotion exercise is held regularly recorded a mean score of 3.40.

The perception of limited promotional opportunities and the unfairness nature of

promotion may cause dissatisfaction among the staffs and this may influence career

intention.

55
According to McCormick and Ilgen (1985), employees‟ satisfaction with promotional

opportunities will depend on a number of factors, including the probability that

employees will be promoted, as well as the basis and the fairness of such promotions.

The promotion policy in CMC is based on based on performance; qualification; and

knowledge and skills. These were confirmed by a mean score of 3.26, 3.41 and 3.34

respectively. This policy conforms to literature and standard practices. The result of

the study also indicated that promotion is not based on knowing somebody at the top

management. This was confirmed by a mean score of 2.86 indicating disagreement to

the statement that “Promotion is based on knowing top management personnel in my

organization‟. However, it can be observed that there was a wide variation in the

response as it registered the highest standard deviation (1.355).

Table 4.8: Descriptive Statistics of staffs’ perception towards CMC promotional

policy

Statement Mean Std. Deviation

My organization provides opportunities for career

3.63 .993
advancement
Opportunities for promotion are limited in my
3.25 .998
organization
The promotion policy is unfair 3.17 1.004
Promotion exercise is held regularly 3.40 1.132
Promotion in my organization is based on performance 3.26 1.144
The promotion policy is based on qualification 3.41 1.214
Promotion is based on knowledge and skills in my
3.34 1.064
organization
Promotion is based on knowing a top management
2.86 1.355
personnel in my organization

56
4.6 Promotional policy and its consequence on Employee Satisfaction

The guiding principles underlying the Promotion Policy of the Company aim at

providing and maintaining appropriate resources and environment for the

effectiveness, efficiency and satisfaction of its employees and motivating them to

apply and develop their abilities and capacities to achieve the objectives of the

Company. It is the policy of the Company to provide its employees with appropriate

opportunity, encouragement and career growth, consistent with their contribution to

the growth of the Company.

4.6.1 Employee Satisfaction level in relation to Promotional Policy available

Figure 4.13 shows the result of the extent to which employees are satisfied with

promotional policies available. Whilst eleven of the respondents representing 10.5%

indicated that their satisfaction level is very high, majority of the respondents, 53

(50.5%) indicated somewhat high. However, thirty respondents (28.6%) indicated

somewhat low as their satisfaction level while 10.5% mentioned very low satisfaction

level. The majority indication of at least somewhat high generally shows that the

employees are satisfied with the available promotional policy.

57
Figure 4.13: Extent of Employee Satisfaction level with available promotional

policy

4.6.2 Satisfaction level in relation to the implementation of promotional policies

The results shown in Figure 4.14 indicate that forty seven of the respondents (44.8%)

are somewhat satisfied with the implementation of company promotional policies.

Although about one-third of the respondents (31.4%) indicated somewhat low

satisfaction level, almost one-fifth (19%) indicated very low satisfaction level as far

as implementation of the promotional policy is concerned. At the aggregate level,

50.4% of the respondents (majority) at least expressed fairly low satisfaction level.

One of the reasons may be the indication of limited promotional opportunities as

express by the majority of the respondents.

58
Figure 4.14: Extent of Employee Satisfaction level in relation to implementation

of promotional policy

4.6.3 Effect of Job Promotion on Overall Satisfaction with Promotional Policy

Even though most of the respondents expressed fairly low satisfaction level of the

implementation of promotional policy at the Cocoa Marketing Company Limited,

they still express satisfaction with overall promotional policy. Table 4.9 shows that

about one-third of the respondents were not sure of their overall satisfaction level,

nonetheless majority of the respondents (40%) either were somewhat satisfied or very

satisfied with the overall promotional policy. However, seventeen respondents

representing 16.2% indicated “very dissatisfied” whiles 8.6% indicated somewhat

dissatisfied. The overall expression of satisfaction with promotional policy (although

59
weak) was confirmed by the mean (median) score of 3.14 (3.00) on the scale of 1 – 5

with standard deviation of 1.26.

Table 4.9: Overall Satisfaction level with Promotional Policy

Satisfaction level Frequency Percent

Very dissatisfied 17 16.2

Somewhat dissatisfied 9 8.6

Neutral 37 35.2

Somewhat satisfied 26 24.8

Very satisfied 16 15.2

Total 105 100.0

Mean: 3.14

Median: 3.00

Standard Deviation 1.26

To ascertain whether the respondents‟ overall satisfaction level with promotional

policy depend on the recipients of job promotion, a chi-square test of dependency was

conducted. The test was conducted at 5% level of significant. Table 4.10 presents the

result in detail. The result was noted that the overall satisfaction level with

promotional policy was independent on the recipients of job promotion.

60
Table 4.10: Chi-Square tests result of Overall Satisfaction and recipient of

Promotion

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.057a 4 .133

Likelihood Ratio 7.218 4 .125

Linear-by-Linear Association 1.399 1 .237

N of Valid Cases 105

a. 1 cells (10.0%) have expected count less than 5. The minimum expected count is 3.94.

61
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

The chapter deals with the summary of the findings; the conclusions drawn from the

findings; and the recommended measures stipulated by the findings of the study. The

chapter also outlines recommendations for further studies in the area of job

promotion.

5.2 Summary

Job Promotion and its consequence at Cocoa Marketing Company Limited

The outcome of the study indicates that 44% of the respondents have received

promotion whiles 56% have not received promotion. However, the study found 88.1%

of those who had not received promotion expect future promotion. The study found

most outcomes of promotion been pay increase and higher rank.

Determinant of internal promotion in Cocoa Marketing Company

Acquisition of new productive human capital (by experience)

The study found majority of the respondents (58.1%) either agreed or strongly agreed

that when a staff acquired new productive human capital it increases the chance of job

promotion. On the other hand, only 15.3% disagreed.

Worker's Commitment to the Firm (tenure)

The study found most of the respondents confirming that worker‟s commitment to the

firm influence job promotion. More than half (52.4%) of the respondents confirmed

the influence. On the other hand, 18.1% disagreed. In the context of this, the study

62
found duration of service with the company was used as the proxy for commitment

influencing promotion.

Worker's adequate ability and skills

The outcome of the data analysis shows that worker‟s adequate ability and skills

influence job promotion. This was confirmed by almost two thirds (64.8%) of the

respondents. On the other hand, 11.5% disagreed.

Worker’s inclination to work hard (overtime hours)

The extent to which workers‟ inclination to work hard may influence job promotion,

the findings of the study shows that less than half (41%) of the respondents agreed the

statement. The result found at least one-third (34.3%) of the respondents disagreed.

This shows a weak confirmation of the assertion that worker‟s inclination to work

hard in Cocoa Marketing Company Limited may influence job promotion.

Worker's position

The study found the respondents having indifferent view about the extent to which

worker‟s position influence job promotion. The majority of the respondents (42.9%)

indicated that they were uncertain about the assertion that worker‟s position influence

job promotion. However, one-third (33.3%) of the respondents agreed to the statement

that worker‟s position may influence job promotion”

Worker's acquisition of academic degree most relevant to job performance

The study found most of respondents confirming that worker‟s acquisition of

academic degree most relevant to job performance influence promotion. Almost

63
three-quarters (73.5%) of the respondents confirmed that. On the other hand, 12.4%

disagreed.

The study found that the views of senior and junior staffs were consistence with that

of the management with regards to determinant of internal promotion.

Staffs perception towards Cocoa Marketing Company Promotional Policy

The staff perceived that Cocoa Marketing Company Limited provides opportunities

for career advancement for its employees. This was confirmed by the mean score of

3.63 with the standard deviation of 0.993. The study found perception of limited

opportunity for promotion in CMC. The result was confirmed by a mean score of

3.25. Employees of CMC perceived that promotion policy is unfair. This perception

was confirmed by the mean score of 3.17 with the high standard deviation of 1.004.

The study found that promotion exercise is held regularly at CMC. The study found

that promotion policy in CMC is based on based on performance; qualification; and

knowledge and skills. These were confirmed by a mean score of 3.26, 3.41 and 3.34

respectively. The result of the study also indicated that promotion is not based on

knowing somebody at the top management. This was confirmed by a mean score of

2.86 indicating disagreement to the statement that “Promotion is based on knowing

top management personnel in my organization‟.

Promotional policy and its consequence of Employee Satisfaction

Employee Satisfaction level in relation to Promotional Policy available

The result of the study shows that staffs are satisfied with promotional policies

available. Whilst eleven of the respondents representing 10.5% indicated that their

satisfaction level is very high, majority of the respondents, 53 (50.5%) indicated

64
somewhat high. However, thirty respondents (28.6%) indicated somewhat low as their

satisfaction level while 10.5% mentioned very low satisfaction level.

Satisfaction level in relation to the implementation of promotional policies

The result indicates that forty seven of the respondents (44.8%) are somewhat

satisfied with the implementation of company promotional policies. Although about

one-third of the respondents (31.4%) indicated somewhat low satisfaction level,

almost one-fifth (19%) indicated very low satisfaction level as far as implementation

of the promotional policy is concerned. Put together, the study found 50.4% of the

respondents (majority) at least expressed fairly low satisfaction level.

Effect of Job Promotion on Overall Satisfaction with Promotional Policy

Even though the study found most of the respondents expressing fairly low

satisfaction level of the implementation of promotional policy, they still indicate

satisfaction with overall promotional policy. The result shows that about one-third of

the respondents were not sure of their overall satisfaction level, nonetheless majority

of the respondents (40%) were somewhat satisfied or very satisfied. However,

seventeen respondents representing 16.2% indicated “very dissatisfied” whiles 8.6%

indicated somewhat dissatisfied. The overall expression of satisfaction with

promotional policy (although weak) was confirmed by the mean (median) score of

3.14 (3.00) on the scale of 1 – 5 with standard deviation of 1.26. The study found that

the respondents‟ overall satisfaction level with the promotional policy was

independent on the recipients of job promotion.

65
5.3 Conclusion

The study seeks to examine the determinant of job promotion and promotion

satisfaction in Cocoa Marketing Company Limited. To understand the research issues

raised in the study and to place the relevant literature in context, as well as to

generalize the study to some extent, a thorough review of the literature was made.

The study indicates that less than half of the staff have received promotion and about

9 out of 10 staffs who had not been promoted are expecting promotion. The study

found most outcomes of promotion been pay increases and higher rank. The study

revealed that workers‟ acquisition of new productive human capital (by experience);

worker's commitment to the firm (tenure); worker‟s adequate ability and skills; and

worker‟s acquisition of academic degree most relevant to job performance are the

major determinant of internal promotion.

On the perception of promotional policy, the study found that the company provides

opportunities for career advancement for its employees. Moreover, the study

ascertained the perception that promotion policy are based on based on performance;

qualification; knowledge and skills; and not knowing top management personnel in

my organization.

However, staffs perceived promotional policy to be unfair and limited opportunity of

promotion. The study shows that staffs are satisfied with promotional policies

available while in the case of implementation of promotional policy, staffs were little

satisfied. Nonetheless, the study found general satisfaction with promotional policy of

Cocoa Marketing Company Limited.

66
5.4 Recommendations

As a follow up to the study the following recommendations are made.

 Although the study revealed that promotion is not based on knowing top

management personnel, the study established that promotion policy is unfair.

Management should therefore look at the processes and see where to improve

or strengthen the process in order to erase such perception.

 Management should improve the implementation of promotion policy. The

study found that staffs were lowly satisfied with the implementation

promotion policy. Management can put in place measurable target and

transparent performance appraisal system. When these are done, staffs may

have confidence in the implementation process.

 Those staff who are expecting promotion should acquire new productive

human capital; be committed to the organisation (tenure); acquire adequate

ability and skills; and if possible acquire academic qualification most relevant

to their job description.

5.4 Future Studies

From the study it is clear that there is the need further research in examining

determinant of internal promotion and promotion satisfaction in other sector of the

economy. It is acknowledged that differences among sectors may impact upon the

results, but these are beyond the scope of this research, and those issues could be

addressed by further research.

The theoretical model of this study can be further extended as well to cover the role of

gender and marital status influence job promotion.

67
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76
 APPENDICES

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF BUSINESS STUDIES

QUESTIONNAIRES FOR JUNIOR AND SENIOR STAFF

Dear respondent,

I am working on a research topic “determinant of job promotion and promotion

satisfaction in Cocoa Marketing Company Limited.”

I would appreciate if you would kindly complete the enclosed questionnaire. I wish to

assure you that this research is purely an academic exercise and as such your response

will be strictly confidential. No attempt will be made to identify any individual in any

publication.

Thank you for your cooperation

Researcher

Questionnaire No:.…………………. Date Administered: ………………………

77
SECTION A: DEMOGRAPHIC DATA

1. Gender: [1] Male [2] Female

2. Age: [1] 25-30 [2] 31-36 [3] 37-42 [4] 43-48 [5] 49-54 [6]

55 or more

3. Marital Status: [1] Never Married [2] Married [3] Separated [4] Divorced [5]

Widowed

4. Highest Education: [1] SSS/SHS/O‟ LEVEL [2] A‟ LEVEL/Post-Secondary

[3] Diploma / HND [4] Degree [5] Master [6]

PhD

5. Duration of service (years): [1] 3 or less [2] 4-8 [3] 9-13 [4] 14-18

[5] >19

SECTION B: JOB DESCRIPTION

6. Job Classification: [1] Senior Officer [2] Junior Officer

7. What is your current rank/Job title? .........................................................................

8. For how long have you been on this rank? [1] 3 or less [2] 4-8 [3] 9-13

[4] 14-18 [5] >19

9. What is your job description?.............................................................................……

………………………………………………………………………………………

………………………………………………………………………………………

78
SECTION C: PROMOTION

10. Have you ever been promoted in your current organization? [1] Yes [2] No

11. If "yes," how many promotions have you received within your current

organization? ………………………………………………………………………

12. If “no”, do you have a feeling of future promotion in your current organization?

[1] Yes [2] No

13. Please indicate the outcome of promotion by ticking where applicable

[ ] Pay increase

[ ] Given higher rank,

[ ] Given big office

[ ] Other, please specify ………………………………………………………………

Determinant of promotion

14. Please indicate the extent you think these statements are applicable to the

determination of promotion in Cocoa Marketing Company

Variable Strongly Disagree Neutral Agree Strongly

disagree agree
When the worker has acquired new
productive human capital (by experience)
Worker‟s commitment to the firm (tenure)
Worker‟s adequate ability and skills
Worker‟s inclination to work hard
(overtime hours)
Worker‟s position
Worker‟s acquisition of academic degree
that is most relevant to job performance

79
15. In your opinion what other factor(s) determine or play a role in determining

promotion in your company......................................................................................

………………………………………………………………………………………

………………………………………………………………………………………

Perception towards promotion policy

16. Please indicate in your opinion to indicate your perception of promotion in your

organisation.

Statement Strongly Disagree Neutral Agree Strongly

disagree agree

My organization provides opportunities

for career advancement

Opportunities for promotion are limited in

my organisation

The promotion policy is unfair

Promotion exercise is held regularly

Promotion in my organisation is based on

performance

The promotion policy is based on

qualification

Promotion is based on knowledge and

skills in my organisation

Promotion is based on knowing a top

management personnel in my organisation

80
SECTION D: JOB SATISFACTION

17. Please indicate the extent to which you are satisfied with the following statement

in relation to promotion.

Statement Very Somewhat Neutral Somewhat Very

dissatisfied Dissatisfied unsatisfied satisfied

My company policies on

promotion are practiced.

My company policies on

promotion are okay for me.

The opportunities given by my

company to career advancement is

impartial

Promotion based on performance

in my organisation is best for me

I am generally satisfied with the

practice of promotion in my

organisation.

18. Would you refer a friend to apply for a job in this organization? [1] Definitely [2]

Probably [3] Not Sure [4] Probably Not [5] Definitely Not

81
19. What are the main challenges to job satisfaction at your workplace?

....................................………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………................................................

20. What can be done at your workplace to improve on job

satisfaction?........................................………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

SECTION E: JOB PROMOTION AND JOB SATISFACTION

21. Where will you gauge your satisfaction level in relation to promotional policies

available in your company [1] Very low [2] Somewhat low [3]

Somewhat high [4] Very high

22. Where will you gauge your satisfaction level in relation to the implementation of

your company promotional policies [1] Very low [2] Somewhat low [3]

Somewhat high [4] Very high

23. I am happy with my promotional status in the company [1] Strongly

disagree [2] Disagree [3] Not Sure [4] Agree [5] Strongly agree

82
OPEN ENDED QUESTIONNAIRES FOR MANAGEMENT MEMBERS

SECTION A: DEMOGRAPHIC DATA

Please tell me about your age, education, position at your workplace, the number of

years you have worked for the organisation

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

……………………………………………………………………………..

SECTION B: PROMOTION

24. Does Cocoa Marketing Limited have any policies on promotions?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

83
25. If Yes, what, factors determine the internal promotion in Cocoa Marketing

Company Limited?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

26. Is the implementation of the promotional policy monitored to ensure that it is

practiced as prescribed so that Line Managers do not victimized subordinates?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

27. What is the process/procedure used to promote staffs to a higher level job within

Cocoa Marketing Company Limited?

………………………………………………………………………………………

………………………………………………………..……………………………

………………………………………………………………………………………

……………………………….……………………………………………………

28. Please give your general comment on promotional policy that is operational at

Cocoa Marketing Company Limited

………………………………………………………………………..……………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

84
29. What challenges does management encounter when implementing the company

promotional policy?

………………………………………………............................................................

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

30. How can such challenges be dealt with?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

31. Where will you gauge the general workers satisfaction level in relation to the

implementation of the company promotional policies [1] Very low [2]

Somewhat low [3] Somewhat high [4] Very high

32. What is the outcome of Promotion in your organisation?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

33. In your opinion, are staffs satisfied with the system used in assessing who is due

for promotion at the work place?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

85