THE CONTRIBUTION OF MOTIVATIONAL POLICIES AND

PRACTICES TO THE PERFORMANCE OF ARDHI

UNIVERSITY

By
Anael Martin Moshi

A Dissertation Submitted in Partial Fulfillment of the Requirements for the

Award of the Degree of Master of Science in Human Resources Management
(MSC. HRM) of Mzumbe University
2013
i
 CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for
acceptance by Mzumbe University, a dissertation/thesis entitled, The Contribution
of Motivational Policies and Practices to the Performance of Ardhi University,
in partial/fulfillment of the requirements for award of the degree of Master of Human
Resource Management of Mzumbe University

___________________
Major Supervisor

_____________________
Internal Examiner

Accepted for the Board of ……………………………..

_________________________________________________________
DEAN/DIRECTOR,FACULTYDIRECTORATE/SCHOOL/BOARD

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 DECLARATION

AND

COPYRIGHT

I, Anael M. Moshi, declare that this dissertation is my own original work and that it
has not been presented and will not be presented to any other University for a similar
or any other degree award.

Signature ____________________

Date_________________________

©2013
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf,
on intellectual property. It may not be reproduced by any means in full or in part,
except for short extracts in fair dealings, for research or private study, critical
scholarly review or discourse with an acknowledgement, without the written
permission of Mzumbe University, on behalf of the author.

ii
 ABSTRACT

Motivation is vital for organizations to perform well; without motivation

employees will not contribute enough and the organizations performance would
be less efficient. It is in view of this that this study was conducted to assess the
contribution of motivational policies and practices to the performance of Ardhi
University. The case-study approach was adopted for the study with qualitative
techniques such as simple random sampling and judgmental/purposive sampling
techniques were employed. Key informant interviews and questionnaires were
the methods of data collection for the study. Based on the sample of 100
employees, the study found that, motivation packages for the staff Ardhi
University are inadequate, poorly implemented and unfairly distributed among
employees. Findings have revealed that although senior members of staff
expressed the same sort of dissatisfaction, it was still possible for them to
perform better because they are highly motivated unlike their counterparts who
are junior staff who complained bitterly that motivation policies and practices are
not well implemented and also motivation packages was unfair among staff. This
was evident in distributions of incentives to members of staff whereby junior
staff enjoys medical care through National Health Insurance and other few
benefits while senior members enjoy responsibility allowance, housing
allowance, entertainment allowance and utilities allowance. Monetary rewards
and a conducive-working environment were the preferred form of motivation for
workers. The effects of poor motivation on work performance at Ardhi
University were absenteeism, low output and high labour turnover. The study
therefore, recommends that management should support the implementation of
motivational policies and practices, employee’s performance should be the basis
of motivation, equal opportunities in decision making among academicians and
supporting staff as well as increase women representatives in decision making
and lastly the government should increase flow of funds to the University in
order to build morale of employees in the fulfillment of the core mission of the
University.

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 ACKNOWLEDGEMENT

To accomplish this task, I had much support and generosity from others directly
or indirectly, for up to date information on the matter under study. However it is
not easy to list down all the names of individuals who contributed to success of
this study but all they did for the accomplishment of this report is highly
appreciated.

I kindly and sincerely thank my supervisor, Ms. Lucy Massoi, Lecturer at

Mzumbe University who gave me all the necessary advice and encouragement
for making this study successfully.

I would like to express my sincere gratitude to the Ardhi University Management

for giving me a chance to conduct my field research and also by providing moral
and material assistance. Also it is my pleasure to convey my appreciation to Mr.
Charles Tito – Head Links and Dr. Anorld Kihaule – Head Planning for all the
support they gave me when making my field study at Ardhi University and others
who guided me in all my day to day routines and put this work in a meaningful
perspective right from its crudest form, is highly appreciated.

Moreover, I gratefully acknowledge the contributions of all staff members of the

Ardhi University who spent their time to go through the entire questionnaires and
give answers; I wish them all the best in their career.

I would also like to thank my family, Happy Stuart and my daughter Arianna for
shouldering all the responsibilities to ensure a successful production of this study.

To crown it all I thank the Almighty God for blessing this work.

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 TABLE OF CONTENTS
CERTIFICATION ........................................................................................................ i
DECLARATION ......................................................................................................... ii
COPYRIGHT............................................................................................................... ii
ABSTRACT................................................................................................................ iii
ACKNOWLEDGEMENT .......................................................................................... iv
TABLE OF CONTENTS............................................................................................. v
LIST OF FIGURES ..................................................................................................... x
LIST OF TABLES ...................................................................................................... xi

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

PROBLEM SETTING............................................................................................... 1
1.0 Introduction ............................................................................................................ 1
1.2 Background to the problem.................................................................................... 1
1.3 Statement of the Problem ....................................................................................... 2
1.4 General Research Objective................................................................................... 3
1.4.1 Specific Research objectives;.............................................................................. 3
1.4.2 General Research Question ................................................................................. 4
1.4.3 Specific Research questions;............................................................................... 4
1.5 Significance of the Study ....................................................................................... 4
1.6 Scope of the study ............................................................................................... 4
1.7 Limitation of the Study .......................................................................................... 5

CHAPTER TWO ....................................................................................................... 6

LITERATURE REVIEW.......................................................................................... 6
2.0 Introduction ............................................................................................................ 6
2.1 Historical background of organization................................................................... 6
2.1.1 Ardhi University ................................................................................................. 6
2.2 Theoretical Conception to the Study...................................................................... 8
2.2.1 Definition of Motivation ..................................................................................... 9
2.2.2 Theories of motivation ..................................................................................... 10
2.2.4 Herzberg’s Two Factor Theory......................................................................... 12

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2.2.5 McClelland's theory .......................................................................................... 13
2.2.6 Equity Theory.................................................................................................... 15
2.2.7 Process Theory .................................................................................................. 16
2.3 Motivation Theories and Practice ........................................................................ 19
2.3.1 Rewarding ......................................................................................................... 19
2.3.2 Recognition ....................................................................................................... 20
2.3.3 Feedback ........................................................................................................... 20
2.3.4 Commitment..................................................................................................... 20
2.3.5 Responsibility/Autonomy ................................................................................. 21
2.3.6 Achievement/Challenge/Goal setting................................................................ 21
2.3.7 Growth .............................................................................................................. 21
2.3.8 Training ............................................................................................................. 21
2.3.9 Participation ...................................................................................................... 22
2.3.10Interpersonal relationships ............................................................................... 22
2.3.11working Environment....................................................................................... 22
2.3.12 Fairness ........................................................................................................... 22
2.3.13 Work-life balance............................................................................................ 22
2.3.14 Basis for Motivation...................................................................................... 23
2.4 Strategies for motivation ...................................................................................... 24
2.4.1 Money ............................................................................................................... 24
2.4.2 Staff Training: ................................................................................................... 25
2.4.3 Information Availability and Communication .................................................. 25
2.4.4 Salary, Wages and Conditions of Service: ........................................................ 25
2.4.5 Managing Dissatisfies -..................................................................................... 25
2.4.6 Focus on revitalizing employees....................................................................... 26
2.5 Importance of Motivation ................................................................................... 26
2.6 Benefits of Having Motivated Employees ........................................................... 27
2.7 Motivation in Practice .......................................................................................... 28
2.7.1 Financial Incentives and Motivation................................................................. 28
2.7.2 Non-financial Incentives ................................................................................... 29
2.7.3 Job Enlargement................................................................................................ 30
2.7.4 Job Rotation ...................................................................................................... 30

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2.7.5 Job Enrichment.................................................................................................. 30
2.8 How to deal with barriers of motivation .............................................................. 31
2.8.1 Misalignment of Values .................................................................................... 31
2.8.2 Respect .............................................................................................................. 31
2.8.3 Boss-employee relationship .............................................................................. 31
2.8.4 Employee self- actualization. ............................................................................ 32
2.9 Empirical reviews................................................................................................ 32
2.9.1 Rewards Employees Quickly ............................................................................ 35
2.9.2 Develop an Employee Motivation Strategy ...................................................... 35
2.9.3 Show Recognition ............................................................................................. 36
2.9.5 Get Creative ...................................................................................................... 37
2.9.6 Improved productive ......................................................................................... 37
2.9.7 Higher Quality of Service or Product................................................................ 37
2.9.8 Monetary Savings ............................................................................................. 38
2.9.9 Better Employee Retention Rates ..................................................................... 38
2.9.10 Pleasant Work Environment............................................................................ 38

CHAPTER THREE ................................................................................................. 39

RESEARCH METHODOLOGY ........................................................................... 39
3.0 Introduction .......................................................................................................... 39
3.1 Research design.................................................................................................... 39
3.2 Area of the study .................................................................................................. 40
3.3 The target population ........................................................................................... 40
3.4 Sample size........................................................................................................... 42
3.5 Sampling Techniques ........................................................................................... 42
3.5.1 Judgmental /purposive sampling....................................................................... 42
3.5.2 Simple random sampling................................................................................... 42
3.6 Data Collection Methods ..................................................................................... 42
3.6.2 Questionnaires................................................................................................... 43
3.6.3 Interviews.......................................................................................................... 43
3.6.5 Documentary source.......................................................................................... 43
3.7 Data Analysis ....................................................................................................... 43

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3.8 Validity and reliability of measurement............................................................... 44

CHAPTER FOUR.................................................................................................... 45
PRESENTATION OF THE FINDINGS................................................................ 45
4.0 Introduction ....................................................................................................... 45
4.1 Type of Incentives offered by Ardhi University .................................................. 45
4.1.1 Staff Loans ........................................................................................................ 45
4.1.2 Promotion.......................................................................................................... 46
4.1.3 Housing and House allowance .......................................................................... 46
4.1.4 Staff Training .................................................................................................... 47
4.1.5 Health and Safety .............................................................................................. 47
4.2 Employee perception on incentive ....................................................................... 48
4.2.1 Motivation satisfactions .................................................................................... 48
4.3 Challenges of Incentives ................................................................................... 49
4.3.1 Administration of Incentives............................................................................. 49
4.3.2 Regularity of Salary Payments.......................................................................... 50
4.3.3 Inadequate Budget............................................................................................. 50
4.3.4 Decision making................................................................................................ 51

CHAPTER FIVE...................................................................................................... 53
DISCUSSION OF FINDINGS ................................................................................ 53
5.0 Introduction .......................................................................................................... 53
5.1 Discussions........................................................................................................... 53
5.1.1 The effect of incentive package established by Ardhi University .................... 53
5.1.2 Employees Perceptions on the Incentives provided by Ardhi University......... 54
5.1.3 The challenges faced by Ardhi University in implementing motivational
strategies............................................................................................................... 55

CHAPTER SIX ........................................................................................................ 57

SUMMARY, CONCLUSION AND POLICY IMPLICATIONS........................ 57
6.0 Introduction .......................................................................................................... 57
6.1 Summary .............................................................................................................. 57

viii
6.2 Conclusion ....................................................................................................... 58
6.3 Policy Implication ................................................................................................ 59
References .................................................................................................................. 62

ix
 LIST OF FIGURES

Figure 2.1: Maslow’s Hierarchy of needs theory............................................................. 11

Figure 2.2: Herzberg’s view of satisfaction and dissatisfaction ...................................... 12
Figure 2.3: Matching achievers and jobs ......................................................................... 14
Figure 2.4: Equity Comparison ........................................................................................ 16

x
 LIST OF TABLES

Table 2.1: Goals, Performance Indicators and Responsibilities ..................................................... 7

Table: 3.1: Target population ....................................................................................................... 41
Table 4.1: Training offered by Ardhi University ......................................................................... 47
Table 4.2: Monthly releases from the Government in respect of other charges funds ................. 51

xi
 CHAPTER ONE

PROBLEM SETTING

1.0 Introduction

This chapter sets the background information in relation to the contribution of

motivational policies and practices to the performance of public institutions, and
more specifically Ardhi University of Tanzania. It thus contains background of the
Problem, objectives of the study, research questions, significance of the study, and
expected study limitations.

1.2 Background to the problem

Today’s employees are motivated by so many things such as flexible work hours,
training to enhance their worth in the marketplace, a family-friendly work
environment and the desire to make a contribution to society. Some motivational
solutions are based on consequences and rewarding to employees in different ways.
Few of these rewards or incentives involve money. These interventions capitalize on
every employee’s desire to find rewarding work and to be appreciated and
acknowledged (Hawley 2004).

There are different methods of improving organization performance. Staff

motivations are considered to be the most important factor among all other factors
for productive activities. Here in Tanzania, a number of policies, such as National
Social Security Policy (2003), Public Service pay and Incentive Policy (2010),
National Health Policy (2003), employment and labour relations act (2004), OSHA
(2003) were formulated.

Together with all these efforts it seems that in practice these policies are not well
implemented. During the last two years, Tanzania experienced labour strikes,
something which threatened production as well as country’s economy. The Tanzania
teachers Union strikes on 25th July 2012 demanding the government to increase their
salary by 100 per cent, additional allowances and hardship allowances. Likewise

1
medical doctors’ strike on March 7, 2012, demanded the government to provide them
with accommodation or housing allowance of 30 per cent of their salaries, health
insurance, salary increase, on call allowance and loans to acquire motor vehicles or
transport allowance. Besides that on 6th March 2012, some of the Tanzania Zambia
railway (TAZARA) went on strike demanding their salary arrears.

The incidence reported above are a clear indication that the Tanzania Government
has not yet made some serious attempts in coming out with an appropriate strategy
which would ensure that workers in various sectors of the economy are well
remunerated so as to improve performance.

The most commonly provided incentives to staff in Tanzania are transport allowance,
medical insurance, housing allowance, long service award and best worker award.
The general trend seems to suggest that employees’ works in private sector are well
motivated while those works in public sector are less motivated. Gradually negative
impacts of poor organization performance are brought about by poor motivational
policies and practices. However the positive impacts of motivational policies and
practices toward the performance of an organization are brought about by a clear
human resource management strategy in general and an effective motivation policy
in a particular, to enhance not only the retention of employees but also their loyalty
and commitment to the efficiency designing of the structure which suits its intended
purpose of that organization. But this efficiency structure may not bring the intended
goal due to the failure of member staffs to work effectively in accordance with the
organization morphology.

1.3 Statement of the Problem

Organizations that adopt good motivational policies and practices considered to be
the most productive one as compared to those which do not. If motivational policies
are well implemented within the organization there will be job engagement,
commitment and positive discretionary behavior. Poor motivation policies and
practices may result to poor health services, unsystematic training programmes, lack
of retention strategies etc. It is obvious that every human being is looking for leisure

2
and avoidance of pains. Every human being is fighting for his/her present and future
life and it is painful seeing someone getting leisure through others and driving them
the way he/she like (Podmoroff, 2005).

Motivation will psychologically set in motion workers or steers a person’s inner

drives and actions towards providing services to the public and committing his/her
energies to achieve the country’s goals of effectiveness and efficiency in provisions
of public services to Tanzania citizens.

People are an organization’s most valuable and expensive resource, but they are the
most difficult element of an organization. People will be better motivated if their
work experience satisfies their social and psychological needs as well as their
economic needs (Armstrong, 2009).

Motivation Policies and Practices are not something new at Ardhi University. The
University has in place policies that aim at motivating its employees. Despite that
there have been prolonged complaints among workers at Ardhi University regarding
the effectiveness of these policies. On 9th January 2013 Ardhi University
Management appointed a committee of four people to investigate all employees’
complaints at Ardhi University and submit its report to management in one month.

In that view a researcher is curious to study the contributions of motivational policies

and practices at ARU and its relation to the performance of Ardhi University.

1.4 General Research Objective

The general objective was to assess the contribution of motivational policies and
practices to the performance of Ardhi University.

1.4.1 Specific Research objectives;

i. To examine on incentive package established by Ardhi University if giving
positive results to the organization performance.

3
 ii. To explore the employees perception of incentive offered by Ardhi
University.

iii. To identify challenges of incentives at Ardhi University.

1.4.2 General Research Question

Are motivational policies and practices contributing to organization
performance?
1.4.3 Specific Research questions;
i. Is the incentive package established by Ardhi University giving positive
results to the organization performance?
ii. How do employees perceive incentives provided by Ardhi University?
iii. What challenges does Ardhi University face in implementing motivation
strategies to its employees?

1.5 Significance of the Study

The findings were therefore expected to make the following contributions:
Firstly, the study will help the researcher to fulfill partially the requirement for the
award of Master Degree in Human Resources Management.

Secondly, the study will help the management of the organization especially Human
Resource Management to improve motivation practices that will bring tangible and
worth improvements in employees performance.
Thirdly, by using Ardhi University as a case study will benefit other Universities on
how to motivate their workers so that they can be able to retain competent
employees.
Lastly, the study may form the basis for further research with regard to motivation
practices in the country and abroad.
1.6 Scope of the study
The study assessed the contributions of motivational policies and practices in the
performance of Ardhi University. The researcher invested much of his research at
various departments/Units found in at Ardhi University.

4
1.7 Limitation of the Study
In conducting the research, the researcher faces the following limitations, Lack of
access to necessary documents and records of the organization as regarded to be
confidential. Logistical support was a challenge to the study since the research was
funded solely by the researcher. However, the researcher was able to outcome this
challenges. This led to the timely completion of the research work and the researcher
was able to meet the dead line.

5
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
This chapter provides the historical background of the Ardhi University and reviews
of several literatures in order to understand what is already known in relation to
contributions of motivational policies and practices to the performance of Ardhi
University. These literatures have been obtained from online resources, books,
journals, reports and previous researchers’ works.

2.1 Historical background of organization

2.1.1 Ardhi University
Establishment
Ardhi University was established in 2007 under the Universities Act No. 7 of 2005,
and the Ardhi University Charter 2007, signed by His Excellency the President of the
United Republic of Tanzania on 28th March, 2007. The University was transformed
from the then University College of Architectural Studies (UCLAS) to Ardhi
University.

Vision Statement
"To be recognized as a center of excellence in seeking knowledge and disseminating it
to a wide spectrum of beneficiaries at national, regional and global levels". (ARU-
Corporate Plan, 2009/19)
Mission Statement
To provide intergrated teaching, research and public services that are geared towards
achieving sustainable social-economic development of Tanzania and the World at
large. (ARU-Corporate Plan, 2009/19)
In the pursuit of ARU’s vision, mission and functions, ARU is guided by key strategic
goals and milestones set for the period of 2009/10 – 2018/19.

6
The overall goal is “To evolve into a centre of excellence in seeking knowledge and
disseminating it to a wide spectrum of beneficiaries at national and regional
levels”.
The realization of the overall goal will be through the attainment of other strategic
goals, but for the purpose of this study, the researcher had decided to put much
emphasize on strategic objective number 10, 12 and14 as far as the study is concern.

Table 2.1: Goals, Performance Indicators and Responsibilities

GOALS Performance Indicators Responsibility
Goal: 10: Employment of Low turnover recorded at DVC-AA, DVC-PFA,
adequate, appropriate and ARU by 2013/2014 DEANS AND
motivated human resources DIRECTORS
in accordance with the Staff succession plan in place DVC-AA, DVC-PFA,
expansion of the programmes 2012/13 DEANS AND
DIRECTORS
Effective quality assurance DVC-AA, DVC-PFA,
policies and procedures DEANS AND
developed and DIRECTORS OF
operationalized across the ACADEMIC UNITS
units by 2013/2014
Goal 12: Good Governance, Implementable HRM Policy DVC-PFA,DHRMA
and Financial Capacity and (Reviewed version) in place
Sustainabilty by 2012/13
Resource availability and DVC-AA, DVC-PFA
improved working
environment in place by
2013/14
OPRAS appraisal system for DVC-AA, DVC-PFA
all staff operationalized by
2013/14
Predictable flow of DVC-PFA, DPD, HLIAD
government, internal and
donor funding to support the
University in place 2013/14
Systems of information flow DVC-AA, DVC-PFA
feedback between University
management and other units
in place and operational by
2013/14
Improved Health services for DVC-PFA, DHRMA,
staff and students 2012/13 DOS
Goal:14: Improve Gender Reviewed gender programme DVC-AA, DPGRP, DUP,
balance among Staff to reflect needs and actual DEANS & DIRECTORS
members and Students status in each area in place OF ACADEMIC UNITS,
by 2013/1014 GDU

7
Functions
The main functions of the University are teaching, research and consultancy. The
schools are: School of Architecture and Design (SADE); School of Construction
Economics and Management (SCEM); School of Urban and Regional Planning
(SURP); School of Real Estate Studies (SRES); School of Environmental Science and
Technology (SEST); and School of Geospatial Sciences and Technology (SGST). At
present, Ardhi University has some 59 programmes and a student population of 3,912.

Other academic units at Ardhi University include Institute of Human Settlement

Studies (IHSS), Centre for Continuing Education (CCE), Disaster Management
Training Centre (DMTC), and the Centre for Information and Communication
Technology (CICT). Short courses are coordinated by the Centre for Continuing
Education (CCE). Institutional Transformation programme is overseen by the
Directorate of Planning and Development (DPD).

2.2 Theoretical Conception to the Study

Effective employee motivation has long been one of management’s most difficult and
important duties. However, the most challenging problem that managers face today in
work organizations is to understand the reasons behind that make some employees to
perform better than others. Different variables can be used to determine performance
differences among employees. For instance, variables like ability, intrinsic and
extrinsic rewards, aspiration levels and personal backgrounds explain as to why some
employees perform than others. (Armstrong,2009)

The study on the contribution of motivational policies and practices to the

organization performance has been undertaken by several scholars who have
suggested some measures to improve the situation. Their investigations have led to the
belief that nobody can stimulate someone to work productively unless he knows how
that person is motivated and to what incentives he will respond. It is not surprising that
there is no one theory or model that can help all managers motivate all employees at
all times. Yet by the same token, there is no golden rule for selecting the motivational
technique that would help any given manager to motivate any given employee under

8
any given set of circumstances. To be successful at motivating employees requires that
managers master the proper ad hoc selection of motivational techniques that fit
together with their own situation as well as the known needs, values, personality traits,
past experiences, and expectations of their employees or employee groups (Condrey,
S.E 2010).

This therefore takes us to the conception of motivation as underlying theoretical

framework which will help us to understand its contribution to the organization
performance.

2.2.1 Definition of Motivation

The term motivation has its origin in the Latin word “Mover” which means to
“Move”. Thus, Motivation stands for movement. There are several ways to make
people move in a positive direction such as the use of incentives, threats or
reprimands. All in all, in order to ensure effective use of these techniques they need to
be reinforced, increased and repeated to secure further movement (Armstrong, 2006).

Motivation is essentially about the drives within the employees that cause them to like
to work hard (Ngirwa 2006). According to Hoffmann S. (2006), Motivation is a
psychological process and it can be explained as the willingness of individuals to do
something for satisfying a need. A need is psychological or physiological deficiency,
which makes the attainment of specific outcomes attractive. Unsatisfied needs lead to
drives which generate a search for a particular goal. If these goals are attained the need
will be satisfied. Motivation has two pre-requisites: the desire and the determination to
achieve something notwithstanding any obstacles you might meet along the way. We
all know people who started out committed to an idea only to abandon it in mid-stream
because it was too difficult to handle. In this example, the person had the desire but
lacked the necessary determination to see it through. Conversely, there are those who
had the determination but lacked the true desire to achieve the objective (Podmoroff,
2005).
Motivation at work can take place in two ways. First, people can motivate themselves
by seeking, finding and carrying out work (or being given work) that satisfies their

9
needs or at least leads them to expect that their goals will be achieved. Secondly,
people can be motivated by management through such methods as pay, promotion,
praise, etc (Armstrong, 2006).
Motivation is contrusted with performance which on the other hand refers to efficient
and effective attainment of set of objectives. It is usually measured against previously
set standards and expressed in terms of goal achievement, time, weight, averages,
tolerance etc. In order to be competitive and perform better organizations need to have
the right people for the right jobs and continuous motivating its employees.

2.2.2 Theories of motivation

Many theorists have attempted to explain the complexity of Motivation in the
workplace and how motivation influences work performance. Theories on Motivation
are broadly classified into three groups: Content theories, Process theories and
reinforcement theory. In this chapter, theories related to the purpose of this research
will be presented.

2.2.3 Maslow Hierarchy of Needs Theory

The work of Abraham Maslow (1954) provided the key to a whole family of theories
formulated to explain behavior as an effort to satisfy needs. Maslow depicted human
needs as a stack of priorities, satisfied from the bottom up. At the very bottom of
Maslow’s hierarchy are the physiological needs. Any deficiency in these needs must
be satisfied first, and the individual must be fundamentally comfortable before he or
she will be in a position to meet a higher need. The security needs, shelter and
protection, come next, followed by belonging needs. At the top of the hierarchy are the
psychological needs (self-esteem and respect) and self-actualization needs
(Armstrong, 2006).

10
Figure 2.1: Maslow’s hierarchy of needs theory

Source: Armstrong (2006)

Maslow’s theory of motivation states that when a lower need is satisfied, the next
highest becomes dominant and the individual’s attention is turned to satisfying this
higher need. The need for self-fulfillment, however, can never be satisfied. He said that
‘man is a wanting animal’; only an unsatisfied need can motivate behavior and the
dominant need is the prime motivator of behavior. Psychological development takes
place as people move up the hierarchy of needs, but this is not necessarily a
straightforward progression. The lower needs still exist, even if temporarily dormant as
motivators, and individuals constantly return to previously satisfied needs (Armstrong;
2006).

Maslow’s theory of motivation implies that the higher-order needs for esteem and self-
fulfillment provide the greatest strength to motivation because they grow in strength
when they are satisfied, while the lower needs decline in strength on satisfaction. But if
the works that people do are routinely or deskilled will not necessarily satisfy needs of
employees. The managers must identify the need level at which the employee is
existing and then those needs can be utilized as a drive for motivation.

11
2.2.4 Herzberg’s Two Factor Theory
Herzberg’s motivation-hygiene approach was derived from an empirical experiment
conducted on employees to determine job satisfaction. According to him, there are
some job factors that result in satisfaction while there are other job factors that prevent
satisfaction. Determinant entailing satisfaction is labeled as motivation, whereas
hygiene factor tend to lead to dissatisfaction.

Figure 2.2: Herzberg’s view of satisfaction and dissatisfaction

Source: Gareth (2000).

Among the motivators pointed out by Herzberg include achievement of work tasks;
recognition by supervisors of achievement and quality of work; the giving of increased
responsibility as a reward for successful work efforts; the opportunity for psychological
development in the work role and growth. Since these are characteristics that people
find intrinsically rewarding people will work harder to satisfy them through their job (
Armstrong; 2006).

Hygiene factors include working conditions, company policy and administration, status
and security of job, supervision, interpersonal relations and pay and salary. If these are
not adequate there will be dissatisfaction and work output will suffer.

Hertzberg’s conclusion from the research was that “the factors which provide
satisfaction to people at work are different from the factors which bring
dissatisfaction”. He named the factors that cause dissatisfaction extrinsic or “hygiene”
factors, and the factors that bring satisfaction intrinsic or “motivators”. This means that

12
individuals’ motivating factors are internal, while those that lead to dissatisfaction are
externally caused.

The implications of Herzberg’s are that, if the motivating factors are appropriately
manipulated in the design of jobs, then this will result in satisfaction for the jobs doers.
On the other hand, the manipulation of hygiene factors will not bring satisfaction but
merely bring the employee to a point of zero dissatisfaction. According to the theory, a
salary increase does not lead to employee satisfaction, but giving him or her
challenging tasks, so that he or she can feel a sense of achievement after completing the
task, will certainly lead to feelings of satisfaction.

2.2.5 McClelland's theory

One of McClelland’s most well known theories is that human motivation, sometimes
referred to as the three need theory or as the learned needs theory. The theory focuses
on three needs, achievement, power and affiliation.
The need for achievement;
This is the need to achieve, excel and succeed. A person with this type of need will set
goals that are challenging but realistic. The goals have to be challenging so that the
person can feel a sense of achievement. However the goals also have to be realistic as
the person believes that when a goal is unrealistic, its achievement is dependent on
chance rather than personal skill or contribution. This type of person prefers to work
alone or with other high achievers. They do not need praise or recognition,
achievement of the task is their reward.

The need for power;

This is the need to lead others and make an impact. This need can exhibit itself in two
ways, the first which is the need for personal power may be viewed as undesirable as
the person simply needs to feel that they have “power over others”. They don’t have to
be effective or further the objectives of their employer. The second type of “need for
power” is the need for institutional power. People with the need for institutional power;
want to direct the efforts of their team, to further the objectives of their organization.

13
The need for affiliation;
This is the need for friendly relationships and human interaction. There is a need “to
feel liked” and “accepted” by others. A person with a high need for affiliation is likely
to be a team player and thrive in a customer services environment. They will perform
best in a co-operative environment. McClelland said that a strong need for affiliation
will interfere with a manager’s objectivity. The “need to be liked” will affect a
manager’s decisions, prompting them to make decisions to increase their popularity
rather than furthering the interests of the organization.

Figure 2.3: Matching achievers and jobs

Personal Responsibility

Achievers prefer jobs

Feedback
that offer

Moderate risks

Source: Robbins (2003)

McClelland found that high achievers seek situations in which they can attain personal
responsibility for finding solutions to problems in which they can receive rapid
feedback on their performance so they can determine easily whether they are
improving or not, and in which they can set moderately challenging goals. Other
persons have an unusual desire for power. Such people have high desire to be
influential, to be in charge of things, to lead others, and to be given status, enabling
them to influence others to make things happen. The last type of persons includes

14
individuals with a strong desire to be liked and accepted by their colleagues.
Individuals with a great need for affiliation look for friendship, preferring to trust
others and cooperate with them and would not like to risk misunderstanding with
people.

Robbins (2003) appreciates McClelland’s theory and, relying on extensive researches

argues that some reasonably well- supported predictions can be made based on the
relationship between achievement need and job performance.

2.2.6 Equity Theory

Equity theory is concerned with the perceptions people have about how they are being
treated compared with others. To be dealt with equitably is to be treated fairly in
comparison with another group of people (a reference group) or a relevant other
person. Equity involves feelings and perceptions and is always a comparative process.
It is not synonymous with equality, which means treating everyone the same, since
this would be inequitable if they deserve to be treated differently. Equity theory states,
in effect, that people will be better motivated if they are treated equitably and
demotivated if they are treated inequitably. It explains only one aspect of the process
of motivation and job satisfaction, although it may be significant in terms of morale
(Adams 1965).

There are two forms of equity, whereby the first form is distributive equity, which is
concerned with the fairness with which people feel they are rewarded in accordance
with their contribution and in comparison with others and the second form is
procedural equity, or procedural justice, which is concerned with the perceptions
employees have about the fairness with which procedures in such areas as
performance appraisal, promotion and discipline are being operated.

15
Figure 2.4: Equity Comparison
The equity comparison in a work situation can be described as:
Personal rewards other rewards

_____________ <Equity comparison > ___________________

Personal contributions other contribution

Source : Adams (1965)

Adam’s equity theory has generated many studies, mainly focusing on the effects of
wage inequity and how equity may affect the attractiveness of rewards among
employee. The majority of these studies support the predictions of the equity theory
about underpayment of employees. Studies about the overpayment of employees,
however, have not supported the theory.

In conclusion, the equity theory demonstrates that, for most employees, motivation is
influenced significantly by relative rewards as well as by absolute rewards, which
requires managers to thoroughly evaluate the way in which the rewards are distributed
among workers. It should in no way affect the workers’ perceptions of their own state
of equity and willingness to respond and participate (Adams 1965).

2.2.7 Process Theory

The Process theory is also known as expectancy or instrumentality theory. Its most
popular propounders are Vroom, Lawler and Porter whose basic concepts are mainly
expectancy, valence and instrumentality. The term expectancy refers the perceived
probability that a given level of effort may result in a given outcome. For instance a
worker is interested in knowing how high performance (effort) will result into
promotion (outcome). Before a worker makes decision to work hard, he/she needs to
know the exact value of the outcome which is what Vroom calls valence. It reflects
the confidence of the worker’s desire for attraction towards the outcome of different
causes of action. What is central to Vroom’s argument is that goals of individuals
influence their effort and that the behavior of workers depends on their assessment of
whether it will successfully lead to their anticipated goal (Vroom 1964).

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Lawler presents the most comprehensive plan on payments and their effectiveness as
motivators. He evaluates each payment plan on the basis of first and foremost, how
effective it is creating the perception that pay is related to performance and secondly,
how well it minimizes the perceived negative consequences of good performance and
finally how well it contributes to the perception that important rewards other than pay
e.g. praise and interest shown to the employee by respected superior, results in good
performance.

Lawler’s findings seem to suggest that individual salary and bonus plans seem to be
the best if management is trying to link pay and performance and that the least
effective way of accomplishing the above factor is to implement a total organizational
salary plan (paying all workers their salaries irrespective of their individual
contribution). Furthermore, Lawler’s findings reveal that bonus plans are generally
more effective than salary plans, particularly because (salary plans), are more related
to the past performance and bonus is related to current performance of an employee.
Thus neither salary plans nor bonus plans minimize the potential negative
consequences of linking pay and performance. It is therefore advised by Lawler to
develop a perfect pay plan.

Finally, Lawler cautions that pay plans, when linked with performance, have to put
several factors under consideration. That is , the more challenging and responsible
jobs require special pay considerations, and that pay ought to consider seniority of a
worker as well as putting into account the inflationary cost of living element. The
individual actual performance must be evaluated in the most objective manner and a
pay amount assigned to this rating.

However, Lawler suggest that, the assessment of performance is especially difficult

for many jobs, it is not easy to obtain the objective measure of performance for such
posts like the Public Relations Officer and thus it may call for using subjective
measures. This is to say if only subjective measures are available then it is
recommended not to use pay as an incentive (Vroom,1964).

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Although expectancy/Valence/Instrumentality theories which were developed by
Vroom (1964) and Lawler and Porter (1968) have moved further to accommodate
individual differences and expectations in motivation unlike the other theories
discussed earlier, they too have never been without critics. They have been criticized
for their emphasis on individual calculations that is employees are not always as
calculative as the theories seem to suggest. It is maintained that for an effective
operationalization of these theories, all employees should understand the
organizational reward system and that it should be given as programmed, the
personnel manager should control all the rewards available. This criticism poses a lot
of questions about the expectancy theory and the actual employee behavior. It seems
to accept the idea that employees do not understand the organizational reward system.
It is true, some employees may be unaware of some of the fringe benefits which a
given organization offers but one may fail to understand whether it is really true that
an employee can join an organization without having any “expectations” which is
exactly what expectancy theory is all about.

According to the expectancy theory, motivation is a product of the worth or values that
individuals place on the possible results of their actions and the expectation that their
goals will be achieved. The significance of this approach stems from the emphasis it
places on the individuality and variability of motivational forces, as distinct from the
generalizations in the other theories (Vroom,1964).

It is therefore on the basis of the above explanation that Lawler’s expectancy theory is
hereby taken in this study as a theoretical framework of reference to meet the
employees’ expectations in their performance at Ardhi University. Lawler’s model
supports theories propounded by Lewin and Vroom in its concern with influence of
perception and expectancy on motivation. We think Lawler’s theory is a much more
comprehensive account because it is based on the following propositions.

Firstly, the motivational force of an individual depends on how he or she perceives the
value of the goal, the energy required to achieve the goal, and the probability that the
goal will be achieved. Secondly, the perception is, in turn, influenced by the

18
individuals past experience of similar situations, as this will enable a better self
assessment of the required effort, the ability to perform as required and the probability
of achieving the goal. Thirdly, performance – achievement is mainly determined by
the effort expended, the individuals understanding of the task requirements and self
assessment of ability. Fourthly, performance is seen by the individual as leading to
both intrinsic and extrinsic rewards, which produce satisfaction, If the individual
perceives the reward as fair.

As it can be seem Lawler’s theory towards motivation takes into account the varied
interests and expectations of employees. Fundamentally it considers that employees
are not so alienated from reflecting and contemplating about their expectations and
desires of their future. Employees normally have certain expectations, which include
better pay, promotions, good houses, transport facilities, and medical care, which in
combination, drive the employees for better performance (Griffin, 2008).
Lawler’s model expected to enable managers to identify reasons for poor performance
in their respective firms, but specifically, the model considers the workers behavior in
relation to work performance for the purpose of achieving both the organizational as
well as employees’ goals. That is to say neither of the goals should be attained at the
expense of the other.
2.3 Motivation Theories and Practice
For the organization to perform well, it needs to create an environment whereby its
employees can contribute their best towards organization performance.

Through motivation theories, Managers can develop programmes that suit their
environment in order to motivate its employees (Malik, 2011).
The following are some of the criteria to be used to develop good motivation
programmes;
2.3.1 Rewarding
i. To administer rewards that are positively appealing to employees
A reward does not necessarily have to be money, although money is always nice, but
money is not always available and may also not be an employee’s prime motivator,
therefore manager should know what motivates his/her employees.

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ii. To tie rewards with behavior and performance
Managers should ensure that the process of rewards and recognition are based on the
fair procedures in the sense that it does not demotivate unrewarded employees. A
direct behavior-reward relationship will actively motivate employees.
iii. Rewards should be offered along with annual appraisal
A sound behavior-reward linkage should include promotion and financial bonuses and
it can only be done through performance appraisal system. Rewards should be offered
only once a year and it should go with employee appraisals.

2.3.2 Recognition
Provide informal recognition
A manager should ensure that both informal and formal intangible incentives that
show appreciation are acknowledged. A manager can intermingle informal recognition
by working around, offer a good word, comment positively on the work done or a
warm handshake. Formal recognition requires thought and preparation, putting the
thought into preparing the element of recognition.

2.3.3 Feedback
Focus more on future performance than on past mistakes
Managers should structure feedback in a way that helps the employee to accept the
comments. Feedback helps managers shape employee performance, it motivates and
improves employees actions. 360-degrees feedback is highly encouraged in order for
employees to express his/her own feedback over manager’s performance. Errors
should be corrected immediately on a timely basis to prevent unsatisfactory practices
from becoming routinely.

2.3.4 Commitment
Create a mission statement that unites the team
Managers should strive to create a distinctive “corporate” identity to their teams with
which employees can identify. A mission statement can serve as team motto. It is a
powerful tool to unite employees and enhance their performance by giving them a

20
common focus. Employees should also be given opportunities to meet and work
together.

2.3.5 Responsibility/Autonomy
Managers must learn their employees’ characters before giving them more freedom
because not all employees like it. Managers should define task (what to do), and
employees be free to come up with a implementation plan (How to do).

2.3.6 Achievement/Challenge/Goal setting

Goal setting is an extremely effective for motivating and improving the performance
of employees. Public sector like Ardhi University, whereby employees’ suffer from
political procedural constraints that impede their ability to attain their targets,
managers should be able to state goals in terms of organizational input or output,
rather than outcomes, because of the complexity of measuring achievement and
procedural constraints that hinder effectiveness.

2.3.7 Growth
Career advancement
Employees should be given opportunities to prepare for a future position by allowing
them to take additional training, represent their superiors in meetings, attend
workshops and conferences and gain vital experience and self confidence.

2.3.8 Training
Employees’ training is vital for building competencies and ability to perform well in
their works. It can be formal or informal. Informal training includes observing,
watching how employees perform etc, while a formal training is normally in form of
class or practical exercise. Formal training has costs implications to the organization
while informal training does not. Training does not always have to be directly related
to work, it can be for personal empowerment. Managers must send employees to
formal training despite the costs involved, because it is the only chance to learn and
bring new ideas to the organization (Hawley, 2004).

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2.3.9 Participation
Involve employees in your decision making process
Employees’ participation in decision making increase their commitment to decision
making and it is a training tool for future leadership tasks.

2.3.10 Interpersonal relationships

Show courtesy to and interest in all employees
Managers should adopt a person-oriented leadership style and demonstrate a positive
regard for others. A courtesy could be in form of, good morning smile, use of proper
language and respect, sharing with employees on subjects that beyond the job. Eg.
Sports, news etc.

2.3.11 working environment

Maintain an equipped and healthy environment
A good working environment motivates workers to stay in the organization as well as
improve their work performance in the organization. Managers should make sure that
their staffs have adequate space, tools and materials needed for the job. Preparation in
advance for all needed materials for new recruited employees is important.

2.3.12 Fairness
Apply rules and policies consistently
Manager should be fair all the time by applying rules and policies consistently.
Transparency also nurtures fairness, as employees are aware of the rules/ criteria and
can be better understand what is behind managerial decisions.

2.3.13 Work-life balance

Take time to listen to employees’ personal problems
Managers are recommended to listen to subordinates personal problems and find ways
to assist them to combine work and a healthy family life.

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2.3.14 Basis for Motivation
It has been fairly well established that there is more involved in motivating people
than just giving them a little more money, being nice to them and otherwise once in a
while patting them on the back. In order to motivate people and in particular the type
of people in organisation, all or a number of the following conditions must be met.

Firstly, they must feel a sense of job and individual importance, responsibility,
achievement and accomplishment from their jobs and also they must receive
recognition when it earned and lastly they must have opportunities for new
experiences, growth and development of the job. A sense of job and individual
importance is only developed when people have a sense of identity with the employing
organization. To create his sense of identity the manager must communicate to his
people the long – range goals and direction of the organisation, as well as constantly
keep them informed as to what is occurring on a day-to day basis, letting people know
what is going on serves to put them closer to the organisation. Without adequate
communication a sense of identity and the resulting feelings of job and individual
importance of the organisation cannot be achieved (Podmoroff, 2005).

In order for people to have a sense of responsibility they must by necessity have ‘a
piece of the action’. Obtaining a piece of action does not necessarily require financial
involvement. Here it means, involving people on a mental and emotional basis. If
mental and emotional involvement (which goes to the heart of motivation) is to be
achieved, the organization manager must go beyond involving his people in just
physical way in their jobs. Instead, he/she must be willing to share problems with his
people, as well as seek out their ideas and opinions regarding any number of specific
issues and general areas (Podmoroff, 2005). The essence of the ideas is perhaps best
illustrated when the manager sits back, ask, “what do you think we should do?” and
assuming a reasonable answer is received, replies, “OK, that is the direction we will
go”. This develops responsibility and initiative. Developing a sense of achievement
and accomplishment requires that we delegate responsibility and authority to people.
The essence of delegation goes beyond the giving people activities to perform, rather,
it involves sitting down and getting mutual agreement as to what results are expected

23
in key areas of accountability. Specifically as managers must go beyond defining jobs
in just a physical sense. Rather they must think in terms of the specific areas of the job
where they want results to be achieved, determine ahead of time what those results
should be and get a commitment to achieving those results. Beyond this, the
employees must have the opportunity to perform and achieve those results with a
minimum supervision. In short, they must have freedom to work (Podmoroff, 2005).

A final determinant of motivation is the opportunity for new experiences, growth and
development on the job. It is imperative that the organisation manager develop a keen
awareness with respect to the long-range capability of all of his people. In additional,
he/she must accurately assess the status of their progress on the job in order to provide
new opportunities at appropriate times. The objective is to avoid employees to ‘get
stale’ as a result of being kept in a job or at a level which does not provide the proper
amount of challenge. The manager who expects the best and challenges people to their
level of capability, will usually be the best. Organisation must open up every possible
avenue to the individual in order to trigger a maximum level of motivation. This
requires awareness and conscientious effort on the part of the manager (Scanlan,
1986).

2.4 Strategies for motivation

2.4.1 Money: Akintoye (2000) asserts that money remains the most significant
motivational strategy. As far back as 1911, Frederick Taylor and his scientific
management associate described money as the most important factor in motivating the
industrial workers to achieve greater productivity. Taylor advocated the establishment
of incentive wage systems as a means of stimulating workers to higher performance,
commitment, and eventually satisfaction. Money possesses significant motivating
power in as much as it symbolizes intangible goals like security, power, prestige, and a
feeling of accomplishment and success. Katz & Khan. (1978) demonstrates the
motivational power of money through the process of job choice. He explains that
money has the power to attract, retain, and motivate individuals towards higher
performance.

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2.4.2 Staff Training:
No matter how automated an organization may be, high productivity depends on the
level of motivation and the effectiveness of the workforce. Staff training is an
indispensable strategy for motivating workers. The University must have good training
programme. This will give employees opportunities for self-improvement and
development to meet the challenges and requirements of new equipment and new
techniques of performing a task.

2.4.3 Information Availability and Communication:

One way managers can stimulate motivation is to give relevant information on the
consequences of their actions on others. Akintoye (2000). Information availability
brings to bear a powerful peer pressure, where two or more people running together
will run faster than when running alone or running without awareness of the pace of
the other runners. By sharing information, subordinates compete with one another.
Studies on work motivation seem to confirm that it improves workers' performance
and satisfaction.

2.4.4 Salary, Wages and Conditions of Service:

To use salaries as a motivator effectively, personnel managers must consider four
major components of a salary structures. These are the job rate, which relates to the
importance the organization attaches to each job; payment, which encourages workers
or groups by rewarding them according to their performance; personal or special
allowances, associated with factors such as scarcity of particular skills or long service
employees; and fringe benefits such as holidays with pay, pensions, and so on. It is
also important to ensure that the prevailing pay in other University or information
establishments is taken into consideration in determining the pay structure of their
organization.

2.4.5 Managing Dissatisfies -

The manager has a significant role in eliminating or reducing dissatisfies. This is often
achieved through negotiation and allocation of resources. Clearly, this must be
achieved within organizational constraints, and where it is not possible to modify the

25
dissatisfies, managers should seek to eliminate their effects and communicate the
constraints to their staff.
2.4.6 Focus on revitalizing employees
Research shows that when employees are working on overloaded circuits motivation is
diminished and productivity declines. Managers can help to motivate employees by
encouraging them to eat right, exercise regularly, take vacations, get organized
(Akintoye, 2000).

2.5 Importance of Motivation

Motivation reduces heavy prices for dissatisfying work frictions on the job, sub
standard output and equality, higher turnover and absenteeism. Dowling, William F,
(1981) support this by explaining that, once employees in an organization are
motivated they will be having higher commitment, positive altitude to organization
and hence reduces employees’ turnover, absenteeism, work-friction, but increase
quality of product and services which in turn increase performance of organization at
large.

Motivation rises the level of responsibility and encourages employees to make

decision in a timely manner and take risks in order to meet quality customer
satisfaction and product development goals (Gareth,(2000).

Motivation increases performance, morale and commitment. Webber (1977) explains

that when management sets standards by motivating employees, morale and
commitment become higher and hence raise performance of an organization.
Motivation changes the behaviour of employees Rashid & Arher (1998) explains that,
motivation as a particular state of persons mind deriving from internal needs, motives
or derives, but triggered to certain external goals which act as incentives or drives
causing him to behave in a certain way. This mean if the behaviour of an employee by
being not motivated was to perform below standards, the same employee can perform
to or above the standard after being motivated.

26
Motivation helps the organization to carpet with its competition. This occurs when
organization motivates its employees by training and development. This is seen
through what training and development provide to employees. Employees become
more knowledgeable and skilled, flexible and more efficiency, where by their
employers regards them as important the company’s future success. Thomson 1981
explains that motivation helps the organization to identify more junior personnel with
capacity to move into more senior position (promotion). Mayo (1949) supported the
idea that employees want to belong to a social group. Mayo argued that this need is
more important than monetary compensation in motivating employees.

Motivated employees are indeed better workers and will help to generate a positive
work environment that both customers and employees will better appreciate. Gregory
P. Smith comments on the results of one organization's efforts to satisfy employees in
the article Happy Employees Make Productive Employees, "When employee attitudes
improved by 5%, customer satisfaction jumped 1.3%, consequently increasing revenue
by .5%. Seeking ways to motivate and build worker morale pays dividends to any
business or organization. The motivated worker is more committed to the job and to
the customer”.

2.6 Benefits of Having Motivated Employees

Motivated employees work more efficiently, producing better products or services in
less time. They invest time, effort and brain power into producing the best products or
services possible, improved productivity and higher quality services and products for
your organization. If your employees are well motivated, you will be able to retain
more of them. Existing employees have a wealth of knowledge about your
organization and how projects work. They are also already accustomed to working
with the other employees in the organization. By retaining employees, you save
money and time. Motivated employees are happy employees who work in a pleasant
work environment and better productivity.

27
2.7 Motivation in Practice
Motivation is considered as one of the most important factors in an organizational
performance and hence attaining the desired organizational objectives and goals. It
facilitates the welfare development of employees in an organization by encouraging
the sense of belongingness, recognition, participation and security. In it return raise the
confidence, commitment and morale of work performance. Armstrong (2006)

In order to have an effective motivation scheme a manager needs to understand what

motivate employees’. Manager need to identify the kind of approach to take: whether
to offer a financial or non-financial incentive? This will depend on the factors that
motivate employees but also the company budget. If the budget is low and cannot
compensate for any wage increases or bonuses, non-financial incentives have to be
introduced. Poor pay will lead to employees’ dissatisfaction at work and therefore any
non-financial incentives will not be effective for motivation. It is therefore important
that organisations find the right balance between the two.

2.7.1 Financial Incentives and Motivation

Increasing motivation through financial rewards is a method that is most common
when businesses rely on the quantity of the output of employees. For those employees
involved in production, you could issue a piece rate system where they are paid for
each individual product they produce. In which case, they would be motivated to
produce as much as possible in order to achieve a high pay: but ensure your quality
control is effective to ensure customer focused areas are not traded-off for quantity.
You could also introduce a commission payment scheme if your business relies on
selling your product or services through the means of personal sales (telephone, door-
to-door, etc). You may even introduce fringe benefits instead of increasing wages or
salaries such as company cars, private health, or interest-free loans from the business.
These benefits are often valued higher than wage increases and can be less expensive
for the business to provide.

Another financial incentive is the offer of a share of the company profits, say, 5%,
which is split between your employees. This incentive can influence team working in

28
the business but you may find that people benefit from other people's work if they do
not pull their own weight to help increase efficiency. It can therefore be said that profit
sharing does not encourage motivation in all employees although it is highly effective
in businesses with few employees. This is because they know that their performance
will make a difference and will be evidenced by an increase in the business profits.

Sometimes staff may only have motivation to get a task done quickly without care to
the quality of the outcome. In which case, you can introduce quality related bonus pay,
which determines their salary. This salary will be up for review twice a year and
reflects their value in the business with respect to, for example, the standard they
complete tasks as well as personal sales records, achievements, and so on. This will
give the employee the motivation to complete tasks to a high standard and a desire to
further excel in the future in order to gain a higher salary: and of course, the feeling of
achievement (Armstrong 2006).

2.7.2 Non-financial Incentives

You may feel that money is not an effective motivator in your business although it
may have some effect in the short term: your employees may also see factors aside
from money as prime motivators. For whatever reason you decide that non-financial
incentives are more effective in your business, there are many forms in which they can
be given.

You can increase motivation by giving employees more responsibility so that they feel
their contribution is more valuable to the business and that their role is of higher
importance. Further, you can promise the chance of promotion if they reach a certain
standard or target. We briefly introduced the process of appraisal, which is a huge
motivator to employees. This is because they will be recognized for the value they add
(or do not add!) to the business by reviewing their progress and achievements over a
certain period (Prasad, 2006).

The following are also motivators that can be introduced in organisation to some
degree they can also be seen as processes that reduce job dissatisfaction:

29
2.7.3 Job Enlargement
This involves expanding the job of an employee that has them doing more work of a
similar nature to what they already do. This may be allowing them to complete the
whole task instead of just part of it, for example, packaging the products as well as
manufacturing them. This process ideally removes the boredom out of the job by
eliminating the repetitiveness out of tasks and allowing them to complete the whole
process, further increasing their responsibility (Prasad, 2006).

2.7.4 Job Rotation

This involves allowing employees to change the nature of their job periodically. For
example, you may give the employee administration duties one week, marketing the
week after, and then back to their original job of sales the following week. This cycle
will then be on going. The purpose of this is that the employee, again, is satisfied by
reduced boredom and also motivated by the achievement of increased skills. The
business owner gains from cross-training and the potential for feed-back and
improvement ideas (Prasad, 2006).

2.7.5 Job Enrichment

Similar to job enlargement, bank can enrich an employee's job by expanding their
tasks to give a higher level of responsibility in the nature of work they do. For
example, they can be given the responsibility of ordering materials and making
delivery arrangements instead of just manufacturing the products. This will not only
expand their skills, but also give them an increased challenge (responsibility) (Prasad
2006).

“Motivation is the willingness of employees to exert high level of efforts towards

organization goal” (Robbins 1992).
Motivation is common problem in various organizations or Institutions in Tanzania
and various parts of the world. Most institutions or corporations in Tanzania are
operating below their capabilities. One of the reasons has to do with poor motivation
to employees.

30
2.8 How to deal with barriers of motivation
The intrinsic barriers to motivation include a misalignment of values, lack of respect
of an employee, poor boss employee relationship and lack of employee self
actualization.
2.8.1 Misalignment of Values
This is easiest one to deal with – simply match the right person to the right job
(Robbins 1992). One way to make this easier is to use PAVF approach which divides
people into four sets:-

Firstly, P is a person who is self driven, disciplined, persistent, hardworking and

direct.

Secondly, A is analytical, through, organized, logical, detail – oriented and plans

ahead.

Thirdly, V has visions for improvement and an idea like to take risks, is creative,
curious and dreams ahead.

Lastly, F is friendly, empathetic, engenders co-operation and people –oriented.

2.8.2 Respect
Respect is appreciating each person’s sovereignty over ideas and thoughts. Respect is
allowing those thoughts to exist and validating they exist. An employer does not that
agree with them but it should not trivialize them (Robbins 1992).

2.8.3 Boss-employee relationship

Many people who leave jobs cite the untenable relationship with their immediate
superior as the real reason for leaving (Robbins 1992). This disconnect can stem from
inadequate training on how to be an effective boss .

There are two possible solutions for managers and leaders. One: Learn how to
appreciate and take advantage of the talents of someone who is clearly different from
you. Two: Move a P person to a P job or A person to an A job.

31
2.8.4 Employee self- actualization.
Finally, stop micro-managing and let the employee do the job his/her own way.
Instead of telling an employee how to do a job, tell him what is expected from the job.
Focus on the outcome, not the means to achieve it. That way, employees can become
owners of their jobs rather than tenants-owners are far more productive than tenants
(Caswell, 2009).

2.9 Empirical reviews

The study on the contribution of motivation policies and practices in the Organization
performance has been undertaken by several scholars who have suggested some
measures to improve the situation. Ardhi University like any other Public University is
under control by the government, thus the major decisions that are going to be made
by the University should reflect the government interests.

Ngwira (2006) notes that little attempt has been made by management in some Public
Institutions in Tanzania to effectively and genuinely involve workers in making
decisions related to workers’ motivation. He emphasizes that it is workers themselves
who can better tell what motivates them most. He further notes that because of the
denial by the management of workers involvement in decision making activities,
workers’ real needs have not been identified nor ascertained. Some management has
simply imposed decisions including those on incentives on workers.

In additional to that, Ngwira maintains that sometimes the style that the award of
incentives takes has generally been blanket and undiscriminating. That is, incentives
have not been contingent upon individual workers’ performance. Both indolent and
hard working workers have generally been awarded almost equally. This has
consequently led to the discouragement of hard working workers from making further
efforts.

Rwegashora and Sabai (1985) make an emphasis on understanding the needs of each
worker before formulating any incentive scheme. They maintain that each individual
worker perceives the value of organizational incentives programme from the point of

32
view of the extent to which his/her needs can be satisfied. Furthermore, they maintain
that motivation and incentive schemes in Tanzania are formulated on the wrong
assumption that, all workers have similar needs. The idea of understanding the needs
of each worker sound strong at the surface level, but it does not seem practical and
justice to design an incentive package for each worker, so as suit their individual
monetary needs. Not only do workers have different levels of monetary needs but also,
this would mean workers of the same job status would be paid differently.
Lyimo (1988), states that due to poor design of incentive package, many organizations
were not able to attract highly trained manpower.
He further noted that management experts, who have proved that, if left themselves,
employees will work at 40-50% of their efficiency and that if material incentives are
introduced in an organization the degree of efficiency rises to 70%.
Given the above percentages, one can tell from Lyimo’s observations that
performance is in a way influenced by the type of incentive package or rewards
offered by a given organisation.

In summary, Lyimo’s ideas as saying that the kind of incentives provided by a given
organisation, will to a great extent influence performance and rates of productivity.
In conclusion, forces which motivate people are not static. They are dynamic and thus
keep on changing as situations and conditions demand. This is to say therefore that
forces which motivate an employee to work today may turn out into being
demotivators tomorrow, next month or next year. There is no ideal incentive package
particularly because they vary from one organisation to another. Sendaro (1987)
studied workers efficiency and management in the construction of the Tanzania –
Zambia Railway. His conclusion was that motivation leads to efficiency in the
management of construction projects. It was found that workers were motivated by an
appropriate management style, i.e. a combination of all management functions.

A comparative study conducted by Mutagwa (1990) in workers’ motivation in

Tanzania public and private enterprises concluded that the problem of workers’ lack of
motivation is caused by a lack of proper identification of worker’s needs and low level
of workers’ participation in the formulation of motivation programmes. However it

33
was established that workers in private enterprises were more motivated to work than
those employed in public enterprises.

(Oluoch 2006), investigated low job satisfaction among teachers in public secondary
schools. He came up with an argument that lack of teaching facilities and limited
opportunity for professional advancement were the leading factors contributing to job
dissatisfaction. Leshabari (2008), studying motivation among Muhimbili National
Hospital staff argued that better working conditions include better salary, workers
participation in decision making, adequate performance evaluation and feedback were
among the factors that motivate employees to perform well in organization. Mwangu
(2008) studying the same organization, discovered that organizational policies,
remuneration, work conditions and advancement were the major determinants of job
satisfaction and organizational commitment among academic staff.

According to Heckman and Oldhan (1979) provides the critical factors among the
respective motivation theories and the implications for developing and implementing
employee retention practices:- Firstly, needs of the employee:- Employees have
multiple needs based on the individual, family, and cultural values. In addition, these
needs depend on the current and desired economic, political and social status, career
aspiration, the need to balance career, family education, community, religion and other
factors and a general feeling of ones’ satisfaction with the current and desired state of
being. Secondly, work environment:- Employees want to work in an environment that
productive respectful, provides a feeling of inclusiveness and offers friendly setting.
Thirdly, responsibilities:- Given that one feels competent to perform in amore
challenging capacity and has previously demonstrated such competencies, an
employee may feel a need to seek additional responsibilities and be rewarded in a fair
and equitable manner.

Fourthly, supervision:- Managers and other leader more frequently than others feel a
need to teach, coach and develop others. In addition, these individuals would seek to
influence the organisation’s goals, objectives and the strategies designed to achieve
the mission of the organisation. Fifthly, fairness and equity:- Employees want to be

34
treated and rewarded in a fair and equitable manner regardless of age, gender,
ethnicity, disability, geographic location or other similarly defined categories with
increased effort and higher performances employees also expect to be rewarded more
significantly that counterparts who provide output at or below the norm. The
employee’s effort and performance at a particular level is influenced by her/his
individual goals and objectives and which would vary by each individual. An outcome
reward that is perceived to be highly significant can result in higher level of effort and
performance by the individual employee. Sixthly, effort:- Even though employees may
exert higher levels of effort into a position based on a perceived significant reward this
could be a short-term success if the task itself does not challenge or provides
satisfaction to the employee. Seventhly, employees’ Development:- Employees prefer
to function in environments that provide a challenge, offers new learning
opportunities, significantly contributes to the organisation’s success, offers
opportunities for advancement and personal development bases on success and
demonstrated interest in particular area.

Further more Podmoroff (2005) states five simple techniques for motivating
employees as follows:

2.9.1 Rewards Employees Quickly

When manager or supervisor see an employee doing something of which he/she
approve, take time out of your day to complement his work ethic, innovation, initiative
or whatever other quality you admire. Employee motivation rewards can be simple,
such as a word of gratitude or a slap on the back, but they can also take more
complicated forms. For example, manager might promote employee motivation by
awarding extra paid vacation to those who exceed (not just meet) your expectations. In
this way, employee motivation becomes a goal for each individual staff member
(Podmoroff, 2005)

2.9.2 Develop an Employee Motivation Strategy

The key to employee motivation is to figure out what each of organisation employees
want. Is it more vacation, better wages, telecommuting options or something else?
35
According to Pordmoroff, most managerial-level employees are looking either for
more money or for a promotion. This is important information to have if employee
motivation is organizational goal.

The reality is that employees motivate themselves, but employers must give them the
tools with which to move forward. If they know that they might be rewarded with a
promotion or a raise, it is likely they will do everything in their power to satisfy the
boss. Employee motivation is about developing a relevant, actionable strategy that
leads to results (Podmoroff, 2005).

2.9.3 Show Recognition

Employee motivation recognition is another important element to promoting
motivated employees. Everyone likes to be praised for a job well done, and
organization employees will feel twice as appreciated if they are praised in front of
others. If organization wants to increase employee motivation, don't keep rewards
behind closed doors (Podmoroff, 2005).

For example, Employee of the Month programs is used so universally for a reason.
The recognized employee gets his name in the company newsletter and his picture on
the plaque by the reception desk. This type of employee motivation demonstrates that
organization is not afraid to show off staff members who care enough to set an
example. For instance, Samaki Samaki, the famous bar and restaurant in Dar es
Salaam, has a culture of appointing a best performer employee in a weekly basis and
his/her picture will be placed at the bar wall in the sense that whoever enters at the bar
could see. The system helps employees to feel appreciated and motivate them to work
hard (Podmoroff, 2005) .

2.9.4 Give Employees a Choice

Employee motivation works differently from one employee to another. Some staff
members, for example, will want more freedom in their home lives, so telecommuting
on a part-time basis might be an excellent motivator. Other employees’ feel motivated
by career challenge, creativity, financial stability or independence in the workplace.

36
To achieve employee motivation, organization must be willing to stay flexible in the
types of employee motivation rewards. Organization ability to do this is influenced
directly by how well organization knows its employees. If organization do not know
their names or what their lives are like, it is doubtful organization will have much
success in employee motivation unless organization provide a choice when rewarding
employees for a job well done (Podmoroff, 2005).
2.9.5 Get Creative
Employee motivation doesn't have to mean shelling out thousands of Tanzanian
shillings every month in bonuses and salary increases. Getting creative with this
type of challenge will heighten the creativity level of the entire office and show
that organization care about its staff. For example, if your employees are divided
up into teams for various projects, organization can award a cocktail party to the
team that accomplishes its goals the fastest. There are also small ways in which
organization can improve employee motivation, such as advocating for
employees who initiate change and coaching individual employees who seek
promotion or raises (Podmoroff, 2005).

Podmoroff (2005) came up with five concrete benefits of employees’ motivation as

follows:-

2.9.6 Improved productive

Motivated employees work more efficiently, producing better products or services in

less time. Unmotivated employees waste time surfing the Web and using e-mail and
instant messaging for personal benefit. They generally take longer to accomplish the
tasks assigned. By keeping your employees motivated, you’ll see improved
productivity (Podmoroff, 2005).

2.9.7 Higher Quality of Service or Product

When employees are motivated, they invest time, effort and brain power into
producing the best products or services possible. They take pride in their work,
meaning they will give your company a better name out in the market simply by

37
producing a superior product. Unmotivated employees, on the other hand, will put in
the bare minimum effort, resulting in poor customer service, and low-quality products
(Podmoroff, 2005).

2.9.8 Monetary Savings

Improved productivity and higher quality services and products equal monetary gains
for your company. This opens up cash for improvements in the company or to be used
as benefits for employees (Podmoroff, 2005).

2.9.9 Better Employee Retention Rates

If employees are motivated, organisation will be able to retain more of them. Every
time organisation hire a new employee, organisation have to invest time getting that
person up to speed on the job requirements, integrating that person into the workforce
and figuring out exactly how that new person can contribute. Existing employees have
a wealth of knowledge about company and how projects work. They are also already
accustomed to working with the other employees at organisation facility. By retaining
employees, organisation saves money and time (Podmoroff, 2005).

2.9.10 Pleasant Work Environment

Motivated employees are happy employees. Better morale is contagious; it leads to a

pleasant work environment and better productivity. All this means a better workday
for everyone (Podmoroff, 2005).

38
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

The main focus of this chapter is to present the research design, area of the study,
population and sample and samples procedures, data collections instruments and how
data are presented and analyzed to answer the research questions.

Kothari (2004) defines Methodology as a science of studying how research is done

systematically. In it we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind them. This
chapter specifies the research operations that the researcher will undertake and the
way the researcher will interpret the results of this operation in terms of the central
problem.

3.1 Research design

Research design refers to the arrangement of conditions for collecting and analyzing
data in a manner that aims at combining relevance to the research purpose with
economy in procedures.

The researcher uses a case study design. A case is an in-depth comprehensive study of
person, a social group, an episode, a process, a situation, a program, a community an
institution, an organization or any unity. (Krishnaswami, 2002) The case study design
has been adopted because it focuses on the particular cases and provided some
generalization/ conclusion in order to view the social object as a whole.

It is also provides detailed information’s, which is useful for policy decision, its
flexible with respect and the collections methods i.e. all methods of data collection are
useful to case studies; it can extend to any dimension of like topic studied; it may be
conducted in practically in any kind of social setting; and it is a highly fruitful
approach for the purpose of group or process analysis as against the analysis of
individual traits (Krishnaswami, 2002).

39
3.2 Area of the study
Krishna swami (2002) defined the area of the study is the territory to be covered by
the study. The study was conducted at Ardhi University, especially in different
departments/Units at the University. This is because Ardhi University is one among
organizations in which motivational policies and practices have had great impacts on
employees as well as organizational performance. Therefore Ardhi University has
been helpful for the research as far as the topic is concerned because Ardhi University
is currently one of the higher learning institutions in Tanzania and a pioneer in the
studies and practices pertaining to land, human settlements, the environment, and
other land related issues.
The researcher has analyzed his data through simple hand coding, qualitative and
quantitative analysis.

3.3 The target population

The target population of the study was employees of the Ardhi University whose total
number is 479 staff (237 Academic Staff and 242 Administrative & Technical Staff)
While the unit of inquiry is departmental staffs i.e. top management, Schools,
departments and Units at Ardhi University.

40
Table: 3.1: Target population
S/N DIRECTORATE/SCHOOL/DEPARTMENT/UNIT NO. OF EMPLOYEES
1 Human Resource 6
2 Planning and Development 5
3 Institute of Human Settlement Studies 8
4 Library Services 6
5 Center of Information Systems 7
6 Legal Unit 2
7 Public Relations Office 2
8 Procurement Management Unit 4
9 finance department 5
10 Internal audit 3
11 School of Architecture and Design 11
12 School of Urban and Rural Planning 8
13 School of Building Economics 5
14 School of Land Management Studies 11
15 School of Geospatial Sciences 10
16 School of Environmental Science and Technology 7
Total 100
Source: Researcher’s manipulation (2013)

41
3.4 Sample size
A sample of 100 representatives was taken which involves top management staff and
employees from Schools, departments and Units.

3.5 Sampling Techniques

The following techniques were used by the researcher to select the sample size of
respondent from the organization.

3.5.1 Judgmental /purposive sampling.

This technique was used by the researcher to obtain respondent from top
management. This technique prefers this group because, the researcher wanted to
obtain the respondents which are relatively informative depending on the nature of
research and it involves the researcher own judgment in selecting sample which will
provide adequate information concerning the matter (Bhattacherjee, 2012).

3.5.2 Simple random sampling

This technique was used by the researcher to select the sample unit from the whole
population at Ardhi University employees.

This technique is preferred because, the researcher wanted each and every unit of the
targeted population to have an equal opportunity of being selected in the sample, also
it is simple to use and can also be used multipurpose with other techniques. (Kothari
2004)

3.6 Data Collection Methods

Two types of data collection instruments were used on collecting primary data in the
study notably; questionnaires and interviews. Secondary data was collected through
documentary sources such as journals, articles, manuals and website. Under the study
both primary and secondary data technique were used.

42
3.6.1 Primary data
3.6.2 Questionnaires
According to Bhattacherjee (2012), a questionnaire is a research instrument
consisting of a set of questions (items) intended to capture responses from
respondents in a standardized manner. Questions may be unstructured or structured.
Unstructured questions ask respondents to provide a response in their own words,
while structured questions ask respondents to select an answer from a given set of
choices.

Open ended questionnaires for this case were distributed to the selected staff both
staff from the top management to lower level. The technique helped the researcher to
obtain data from different sample units.

3.6.3 Interviews
Is two ways systematic conversation between an investigator/researcher and
informant/ respondent initiated for obtaining information relevant to a specific study
(Krishnaswami, 2002).

It involves not only conversation but also leaning from the respondent’s gestures,
facial expression and pauses and his environment. The aim of this instrument is to
enable the researcher to collect the Ardhi University staff member’s opinions on the
problem. The researcher applied this technique to Ardhi University Management.

3.6.4 Secondary Data

3.6.5 Documentary source
Documentary sources contain data which was collected and compiled for another
purpose. Some organizational documents like organization structure, Motivation
Schemes, Training Programmes, and Scheme of service were used in collection of
secondary data (Krishnaswami, 2002).
3.7 Data Analysis
Krishnaswami (2002) defines data analysis as a critical examination of the assembled
and grouped data for studying the characteristics of the object under study and for
determining the patterns of relationship among the variable relating to it. Data

43
collected was organized and checked to ensure completeness, accuracy, clarity and
uniformity. Data collected were presented and analyzed by using both quantitative
and qualitative techniques. Quantitative analysis involves the use of statistical
methods including tables, graphs, charts, percentages, and the like depending on the
type of data obtained for easy understanding. Qualitative analysis involves the use of
factual and logical interpretation of data gathered.

This kind of data analysis was used to help the researcher come up with conclusion
and suggestions that will help create strategies to motivate employees at Ardhi
University.

3.8 Validity and reliability of measurement

3.8.1 Validity
The researcher ensures the method of data collection; sampling and methodology of
the study is proper and related to the study. Validity of the data was assessed through
construct validity.

3.8.2 Reliability
According to Bhattacherjee (2012) the reliability is the degree to which the measure
of an object is consistent or dependable. A more reliable measurement may be to use
a scale, where you are likely to get the same value every time you step on the scale,
unless your scale has actually changed between measurements.

The information collected from different sources guided the researcher to get
evidences for drawing up conclusion of the problem. Therefore this study is valid
and reliable as valid and reliable methodologies were used.

44
 CHAPTER FOUR

PRESENTATION OF THE FINDINGS

4.0 Introduction

This chapter focuses on the presentation of data gathered from the field. It captures
the various issues of the contributions of motivational policies and practices in the
performance of Ardhi University. The researcher decided to use the following
indicators:-

4.1 Type of Incentives offered by Ardhi University

Incentives and remunerations are normally statutory and bound by the employment
contract between the employer and the employee such as salaries, responsibility
allowance and retirement pension benefits. Incentives can be tangible in the form of
cash or material gains or intangible such as a letter of commendation. Incentives paid
through the central government budget are paid according to the government
standing orders and government circulars as issued from time to time while incentive
paid through internally generated funds depend on how much is internally generated.
Monetary and non-monetary were recognized by the workers interviewed. These
incentives have influenced their performance at work and kept them in motion. In
general, incentives are basic determinants in attracting workers to stay in an
organization or quit certain jobs offered to them. Workers therefore placed best on
incentives when searching for job or not satisfied with certain jobs and the desire to
look for jobs with better incentives and remuneration.
4.1.1 Staff Loans
Ardhi University enables its employees to access loans from financial and credit
institutions as a guarantor. Employees who were interviewed explained that they are
motivated with the University for having good policies, which allow them to access
loans from banks with minimum interest rate as well as salary advance with
minimum interest rates through workers union. Employees were also satisfied with
the University Saccos for providing quick loans to employees with reasonable
conditions.

45
4.1.2 Promotion
Ardhi University promotes its workers according to Ardhi University Schemes of
service for Academic staff, administrative and technical staff. For example Schemes
of service for administrative staff and technical staff stated that promotion is based
on merit after completion of satisfactory service in any grade for either three years as
the case may be and fulfillment or acquisition of specified academic/professional
qualifications, availability of funds and existence of vacancy in the establishment.
According to few staff members who were interviewed from different departments
agreed that they were promoted after acquiring academic certificates or completed
three years experience. Some staff expressed their dissatisfaction with the University
promotion system such as excessive delays in promotion process, bias,
confidentiality of promotion process etc.
Mullins (1993) states that the main reason for an employee to leave an organisation
is the failure of the organisation to acknowledge the employees work. Promoting
employees for their work is quite important as motivation is the key element required
for the success of an organisation.

4.1.3 Housing and House allowance

Housing allowances are governed by the treasury Registrar’s circulars and available
only to a few senior officers currently at rate of Tshs. 800,000/= for the chief
Executive and Tshs 600,000/= to entitled officers. The University is current owned
few houses for its staff located within the University and in Kariakoo, Ilala
Municipal, Dar es Salaam. Management has provided houses to few employees but
continues to pay housing allowances in accordance with the treasury registrar’s
circulars to staff members who are entitled to be paid housing allowance. According
to employees who were interviewed 72% were not satisfied with the current system
of providing housing/housing allowances to few staff members with a certain rank
while ignoring majority of staff with no such service. Only 13 % of employees were
satisfied with the policy and 15% complained over Poor information on the
availability of such houses, irregular review of the University housing policy and
poor conditions of such houses.

46
4.1.4 Staff Training
Training among ARU staff is provided in accordance with ARU Training Policy and
Programme. According to employees who were interviewed pointed out that staff
training is uncoordinated in terms of priority setting, release and funding. Funds from
government are used to support staff training at the University in which most of the
time are not provided in time or not enough to support the exercise. They also
pointed out that even if the little funds received from the government the training is
not conducted in accordance with ARU training Policy and Programme instead it
favors academicians only. The training programme is not known by many employees
which makes them less prepared when it comes for them to go for training. The table
below shows the number of employees who attended short courses and long term
training for specific period shown below. The table below indicates that 58 %
compared to 42% of employees had no chance of being trained by the University.

Table 4.1: Training offered by Ardhi University

YEAR NUMBER OF TRAINED PERCENTAGE
EMPLOYEES (out of 100 employees)
2008/9 10 10
2009/10 15 15
2010/11 9 9
2011/12 8 8
TOTAL 42 42
Source: Researcher (2013)

Heckman (1979) states that employees prefer to function in environment that provide
learning opportunities , that employee training promotes employees’ satisfaction and
employee retention, increased capacity to adopt new technologies, reduce employee
turnover.

4.1.5 Health and Safety

Under this aspect the findings show that Ardhi University is the member of National
Health Insurance Fund whereby majority of staff and their immediate families can

47
access medical services from selected hospitals. However this medical care is only
provided in hospitals identified by the Fund. Employees can obtain these services
through Medical cards given by the fund. The cards are given according to one’s
grade and categorized into two groups; the green card is for staff with higher rank
while yellow card is given to staff of lower rank. However out of 100 employees
88% per cent of the employees who were interviewed responded that they were
happy with the current system of medical services at the University although some
claimed that the system favors senior officers by given them access to better
hospitals and better medical services as compared to junior staff.

4.2 Employee perception on incentive

4.2.1 Motivation satisfactions
Mullins (1993) states that Motivation satisfaction includes achievement, recognition,
responsibility, growth, and the nature of the work. Motivation is what people need to
perform better. However, not everyone gets motivated by the same things: Where
one gets motivated, obtains satisfaction, and consequently performs better from
getting additional responsibility assigned, another may feel much better valued and
encouraged to higher productivity if he or she is merely being listened to, or given
some flexibility in his or her work schedule.

Generally, Ardhi University has in place Policies on staff motivation. The findings
revealed that 83.5 % of employees’ said that motivations given by the University are
not enough due to the rapidly economic changes and also unfairly distributed among
staff members while 16.5% shows some extent of satisfaction. For instance now days
to rent an average house of two bed room range between 500,000 to 100,000,00
shillings for a good house around Sinza or Mwenge in which most of staff cannot
afford.

Any incentive package depends entirely on the extent to which the intended
motivational schemes meet the needs of the individual worker for whom they are
intended. That is to say housing costs took bulk of the pay to most of employees’

48
who had rented premises and paying from 200,000 TShs to 1,000,000Tshs per month
depending on the type of room/house and location. The research found that ordinary
employee can afford only one room, and it is difficult to secure a room around the
city something which compels them to go to remote areas like gongo la mboto,
kinyerezi where rates are somehow low due to the standard of houses offered. The
high per cent of employees stay far from the University as the result some of them
failed to arrive at work in time.

4.3 Challenges of Incentives

4.3.1 Administration of Incentives
In the context of administration of incentives given to employees by Ardhi
University, respondents responded in different aspects. Ideally employees expect to
get their incentives on a given month, but the reality shows that employees are
compelled to go without their monthly incentives like housing allowance,
responsibility allowance for more than a year which had negative impact towards
high performance.

On the other hand, the style of awarding incentives was highly discriminating. When
we probed the respective Ardhi University management on how highly
discriminating their style of awarding incentives was, the management maintained
that incentives given to employees are based on the one’s rank. For instance head of
departments, units and directors are provided with soft drinks and bites in every two
months.

Housing allowance and responsibility allowances are given only to employees’

whose salary grade is above PGSS 19 for supporting staff or PUTS 6 for academicians.
Secretaries are paid secretarial allowance of 40,000/= Tshs for month. Drivers are
paid driver’s allowance of 200,000/= Tshs in every month. Accounts department are
also entitled for monthly allowance which range to 100,000 to 300,000 according to
one’s rank. Overtime allowances are paid to secretaries, librarians and clinical
officers.

49
The rest employees who equally contributed to better performance of the university
like administrative officers, supplies officer, public relations, technicians, laboratory
engineer, tutorial assistants, assistant lectures are not motivated the way others are
motivated. Incentives have not been contingent upon individual workers’
performance. Both lazy and hard working workers have generally been awarded
almost equally. This has consequently led to the discouragement of hard working
workers from making further efforts.

4.3.2 Regularity of Salary Payments

Another challenge pointed out among interviewed employees is on the idea of
getting salaries within the established scheduled. Although the salaries are not
adequate to cover their basic needs, employees’ are not paid their salaries in a given
month. They suggest that, management should review salaries of employees
according to existing environment. They want management to review salary package
so that it can go with economic changes. Employees’ also expressed dissatisfaction
over the management failure to provide their salary promptly. What this therefore
means is that late provision of employees’ salary leads to dissatisfaction.

4.3.3 Inadequate Budget

The existing remuneration and incentive packages, whether paid through central
government funds or from internal sources are inadequate to effect an efficient
sustainable productive system within the core mission of ARU. This is due to poor
supply of funds from the government to support these activities. The table below
shows flow of funds for other charges to Ardhi University from July, 2012 to June
2013.

50
Table 4.2: Monthly releases from the Government in respect of other charges
funds
Month Expected Funds Releases Actual Funds Cumulative
Released
July 2012 37,036,308.33 6,014,000.00 -31,022,308.33
August 2012 37,036,308.33 6,014,000.00 -62,044,616.66
September, 2012 37,036,308.33 6,014,000.00 -93,066,924.99
October 2012 37,036,308.33 6,014,000.00 -124,089,233.32
November 2012 37,036,308.33 6,014,000.00 -155,111,541.65
December 2012 37,036,308.33 6,014,000.00 -186,133,849.98
January 2013 37,036,308.33 37,036,308.33 -186,134,158.31
February 2013 37,036,308.33 37,036,308.33 -186,134,466.64
March 2013 37,036,308.33 37,036,308.33 -186,134,774.97
April 2013 37,036,308.33 0.00 -223,171,083.30
May 2013 37,036,308.33 11,110,800.00 -249,096,591.63
June 2013 37,036,308.33 11,110,800.00 -275,022,099.96
OC Funds Available 444,435,700 169,413,600.00 -275,022,099.96
Source: Researcher (2013)

The table above indicates that the government endeavors to reduce costs of running
its university have led to increased burden to the university in which have also
increased burden to the ordinary worker. For instance the university is now run short
of funds to support some of its activities as shown in the table above. The incentives
and motivation provided by University have not measured up to the extent to which
the fulfillment of workers’ basic requirement as a result what workers get as take
home in terms of pay has lost its appeal and motivation leading to dissatisfaction in
the working place.

4.3.4 Decision making

79% out of 20% of employees’ interviewed responded positively that they are
participating in decision making related to work through departmental meetings and
other management meetings. 12.2% of respondents were not satisfied with the
university way of decision making, while 7.8% remains neutral. Research findings
revealed that most of the decision makers are academicians who automatically favor
their interests against other members of staff. Women employees are not well
represented in decisions making due to their few numbers of representatives in
decision making organs.

51
Mullins (1993) he explains that employees’ participation in decision making is one
of the drive force that activate employees to the desired goals so as to fulfill both
individual and organisational needs.

52
 CHAPTER FIVE

DISCUSSION OF FINDINGS

5.0 Introduction
This chapter presents the discussions of research findings of the data collected on
the study under taken which is about the contributions of motivational policies
and practices to the performance of Ardhi University. The discussions of the
findings are in line with specific research objectives of the study, thus;

5.1 Discussions
5.1.1 The effect of incentive package established by Ardhi University
Research findings indicated that incentive package available to employees at
Ardhi University were staff loans, promotion, housing and house allowance, staff
training, health and safety services. The study revealed absence of such
incentives to majority of employees’ especially junior staff members includes;
housing/housing allowances, responsibility allowances, transport allowances,
entertainment allowances and inadequate salary. This implies that employees are
not derived their expectations and therefore had low morale to perform better.
This is evidenced by 72% of the respondents had a small extent of satisfaction
with the current system of provision of housing and housing allowances. The
existing houses at the university are very few as compared to number of staff,
poor information of the availability of such houses, poor conditions of the houses
and unfairly distribution of houses and housing allowances were among the
issues raised by respondents. On the other hand, 42 % of employees out of 100
employees had attended training for the period of 2008/9 – 2011/12. This implies
that majority of employees are not rely on university funds to support for their
training as a result only few employees especially academicians are benefited
with the University training program. The basis of equity theory by Adam Smith
is that people make comparisons between themselves and others in terms of what

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 they invest in their work (inputs) and what outcomes they receive from it. In
other words the perception people have about how they are being treated
compared with others (The way rewards are distributed among workers).
Basing on the above presentation, it is difficult for the incentives established by
the University to bring positive results due to the fact that they were formulated
unfairly and therefore directed to particular categories of workers such as senior
staff members and partly to academic staff in which reduces employees’ morale
to perform better. However, significant positive results were slightly observed on
the side of staff loans and medical care to employees.

5.1.2 Employees Perceptions on the Incentives provided by Ardhi University

In every organizational establishment there are certain incentives that give an
individual the edge to work in. Those incentives let workers stay in particular
organization or elsewhere for better conditions. The results of the findings point to
the fact that, incentives that motivate employees at work are keys to their
performance. A good signal affirmed that adequate salary is the main motivator
among Ardhi University employees that will keep them in the work. Although the
University established motivational policies and practices 83.5% of the respondents
indicated that motivations given to workers by the University are inadequate to meet
their basic needs with the increase of the cost of living and also the manner in which
these incentives were given to employees were not satisfactory to the extent that will
motivate them to perform well.
The cost of living has gone up and most employees, especially junior members of
staff find it difficult to meet their daily expenses like transport, house rent, food,
utilities and other costs for their family members from mere salary they receive from
the University. For instance the inadequacy of the salary earned by employees was
emphasized by one assistant Librarian that a salary of 444,000/= per month for
librarian Assistant III PGSS 5-6, who had two dependants and other expenses such as
house rent, electricity, water and other charges will not be able to survive for a month
if only this person depends on monthly salary alone.

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In addition, late payment of salaries was very common at the University. As a form
of motivation, therefore, salary was insufficient to motivate employees at the
University and increase their morale to perform efficiently.
Herzberg found that job dissatisfaction is caused by factors such as poor supervision,
bad working conditions, unpleasant colleagues, low salaries, objectionable work
policies or procedures, and low job security. He came up with two factors that will
enhance job satisfaction those factors are motivators factors those are achievement,
recognition for achievement, growth advancement and hygiene factors includes
policy administration, interpersonal relation with supervisors, working condition,
salary and security
Basing on the above discussions, it is fair to conclude that poor performance of
employees at Ardhi University was contributed by poor formulation and
management of motivational programmes. Consequently, many respondents
advocated for increase in salary and other non monetary benefits of employees to
match the increasing cost of living.

5.1.3 The challenges faced by Ardhi University in implementing motivational

strategies
The study was able to solicit the views of Ardhi University management with
regards to motivational issues. It came to light that inadequate budget the
University received from the government is a serious challenge facing the
University in implementing some of its activities especially on workers motivation.
Respondents were of the view that unfairly distribution of staff accommodation,
transport allowance, responsibility allowances, overtime allowances, housing
allowances, entertainment allowances could be solved only if the government
disbursed funds to the University as requested. The trends revealed that since 2007
the government continues to reduce the amount of funds released in support of
other charges to the University. This implies that the University ability to fund its
activities is diminished therefore it will be difficult to improve its working
environment as well as motivating its workers. Other challenges noted includes
delayed in provision of staff salaries, which impede workers morale, administration

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of these incentives was also a major challenge due to the fact that the current
system serves only category of employees while leaving others employees
unmotivated. Basing on the study findings presented in this objective, therefore, it
can be concluded that the University can establish more evening programmes that
will increase the University revenues and support its activities as well as
supplement its workers income.

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 CHAPTER SIX

SUMMARY, CONCLUSION AND POLICY IMPLICATIONS

6.0 Introduction
This chapter contains summary, conclusion and policy implications of the study. It is
a highlight of issues that were revealed during the research and also it gives
conclusion and policy implications that can help management to overcome the
challenges faced by workers and policy makers of the University to improve upon
operations and efficient working atmosphere and to overcome challenges faced by
employee and employer on motivational issues highlighted in the research.

6.1 Summary
The purpose of this study was to look on the contributions of motivational policies
and practices to the performance of Ardhi University. The main intention was to look
on motivational policies and practices at Ardhi University and see if they to lead to
performance improvements at the University. The motivational packages available to
workers at the University are largely inadequate. The situation is worse among junior
staff because they are entitled to very few motivational packages as compared to
senior members of staff. Supporting staff are poorly motivated as compared to
academic staff. In the case of senior members, housing allowances, responsibility
allowance, entertainment allowance are among the motivational packages available
to them.
Research findings revealed that, Ardhi University have in place both monetary and
non-monetary incentives to its workers such as staff loans, staff promotion, housing
and house allowance, transport services, staff training, health and safety etc. The
research results indicated that although motivational policies and practices are in
place at the University little had been done to motivate workers. The established staff
remuneration and incentives have not well implemented and not fairly distributed
among workers. For instance out of 100 employees interviewed 72% were not
satisfied with the way housing/housing allowances were governed at the University.

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On the issue of staff training, the findings revealed that only 42% had attended
training supported by the University for the past five years. 88% of the workers
confirmed that health services at the University are well improved whereby
employees’ as well as their family members can access health services through
National Health Insurance cards. Motivation plays a very crucial role in employees’ job
performance. Without motivation workers may not put in their or her best on the job.
Research findings revealed that 83.5% of the workers perceived that motivations
given by the university to its employees are not enough due to the rapidly economic
changes while 16.5% are somehow satisfied with the current incentives given to
employees. The study also indicates some challenges on employees’ incentives such
as the way incentives were administer whereby the administration of the existing
incentives package is considered to be good and proper if the University have clearly
stated objectives and if there exist proper ways of appraising performance. Another
challenges pointed out were irregularity of salary payments, inadequate budget from
the government and unequal representations of employees in decision making.
However, it is important to caution here that incentives and motivational packages
are more likely to improve performance in an organization whereby the degree of
satisfaction is high as Lawler suggests where employees believe that they are being
treated fairly. Incentive plan is more likely to succeed in an organization where
morale is high, where employees believe they are being treated fairly and where
there is an absence of grievances’. The study shows that Ardhi University employees
are not satisfied with the current remuneration and incentives policy at the University
and they believe that the University is in the position to improve the existing
conditions.

6.2 Conclusion
Motivation remains as a vital push factor in the performance of workers.
Notwithstanding this, majority of workers at Ardhi University were found to be
poorly motivated. The poor motivation has had a bad effect on work performance
and the output of workers. It has resulted in poor attitude towards work, lateness to
work, absenteeism and indiscipline. The study shows that the employee motivation

58
has direct impact on productivity and growth of the University. A highly motivated
employee invests his / her best hard work in carrying out each and every aspect of his
or her duties and responsibilities. Improved job performances of the employee will
add value to the organization itself and to the employee’s morale to perform well.
Based on the first specific research objective of the study which requires to examine
on incentives package established by the University if giving positive results, the
findings revealed that poor administration of the existing incentives as well as failure
of having clearly stated objectives of the existing incentive schemes resulted to
negative results of the established incentives. Also the manner in which these
incentives were provided discouraged and consequently demoralized hard working
employees particularly because specific individual performance was not taken as a
criterion for the award of incentives.

On specific research objective number two which requires to explore employee

perception on incentives offered by Ardhi University, the findings revealed that
majority of employees are not satisfied with the current incentives offered by the
University and they believe that management is in good position to make some
improvements. Lastly, the third objectives of this study was to identify challenges of
incentives at Ardhi University in which the findings indicate that the major
challenges were inadequate budget from the government which is the major source
of funds in which the University rely on. Other challenges include irregularity of
salary payments, unequal representations in decision making and administration of
incentives.

6.3 Policy Implication

The results presented in this research have Policy implications in all work
organizations and policy makers Tanzanian especially on staff motivations. The
effectiveness of any organization depends upon the motivation of its employees.
Knowing what motivates employees and incorporating this knowledge into the
organizations’ strategic planning will help them identify, recruit, employ, train and
retain a productive workforce. Employees require both managers and employee to

59
work together. Employees must be willing to let managers know what motivates
them, and manager must design HRM programmers that motivate employees.

Organizations are applying different approaches such as rewards, social recognition

for the overall employee motivation and performance. In order to suit organisation
and employees needs, management should carefully consider appropriate strategy
that will fit the most for the long-term performance of the organization. While
considering performance measurement at every employee, managerial levels and
work process, it can streamline the goals and objectives of each employee and
organization as whole. Without motivation in the workplace, work performance will
drop due to the fact that employees will not put much of their efforts to contribute to
the work performance. This is because they have no incentive to perform tasks to a
high standard or complete them in time. It is therefore important that employer give
them something to work for as a reward for their high level of performance, all being
essential to the success of business.

To develop an effective remuneration schemes the following must be considered,

Consistently good performance should be the basis for remuneration and
promotional schemes by including elements of merit rather than length of service. A
sufficient reward must be offered to motivate employee to put more effort to
perform well at work place. Another measure to increase the effectiveness of
remuneration system is diversify the forms of remuneration such as bonus payments
and provision of financial support to employees’ personal development such as
training, housing etc.

In order to maximize employee motivation via employee incentives it is useful to

discuss the program with employees. Spend some time figuring out what your
employees actually want out of an incentive program. Find out what motivates them
and how they want to be rewarded for productive performance. If you take the time
to do this then you will be able to implement a program based on the individualized
needs of your employees. A distinctive tailor made program will increase employee
motivation and in turn your profits.

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Everyone is motivated by different things and a majority of these factors are not
money orientated: instead they react more effectively to incentives that offer personal
recognition and achievement. In which case, Ardhi University should determine what
motivates individual people and further determine whether a financial or non-
financial incentive is the solution. There is a thin line between factors that motivate
people and factors that prevent job dissatisfaction. In other words, some things do
increase the level of efficiency in employees by reducing job dissatisfaction but are
not motivators themselves. This is because staff needs to eliminate unhappiness in
their job before they can begin to be motivated and this usually, and some say must,
begin with an ‘acceptable’ wage that they can live on. The information gained from this
research might be a good starting point for creating motivation systems that based on
employee performance. Future research could also consider other factors that might be
motivating employees at the University, such as a good atmosphere at work, fringe benefits,
fit of personal values and company values.

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