MOTIVATIONAL INCENTIVES AND EMPLOYEE SATISFACTION IN CHAMPION BREWERIES, UYO, AKWA IBOM STATE, NIGERIA.
This study assessed one of the most pressing needs of any organization-motivation and employee satisfaction. The case study was one of the indigenous companies in Akwa Ibom State, Champion Breweries Plc Uyo, Akwa Ibom State. The main objective of the study was to see how motivation can stir the employee to be fully dedicated to their work. An eclectic theoretical framework was adopted to support this study which helped to give credence to the importance of motivation in any organization. It was discovered that motivation and employee satisfaction is critical to the growth of any establishment. The study concluded with five (5) recommendations that would help companies/organization grow through motivating and satisfying their employees.
TABLE OF CONTENTS
Cover Page - - - - - - - - - i
Declaration - - - - - - - - - ii
Certification - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgements - - - - - - - v
Abstract - - - - - - - - - vi
Table of Contents - - - - - - - - vii
List Tables - - - - - - - - - x
List of Appendix - - - - - - - - xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study - - - - - - 1
1.2 Statement of the Problem - - - - - - 4
1.3 Objectives of the Study - - - - - 5
1.4 Research Questions - - - - - - - 6
1.5 Research Hypotheses - - - - - - 6
1.6 Significance of the Study - - - - - - 7
1.7 Scope of the Study - - - - - - - 8
1.8 Definition of Terms - - - - - - - 8
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Literature Review - - - - - - 11
2.1.1 The Concept of Motivation - - - - - - 11
2.2 Theoretical Framework - - - - - - 13
2.2.1 Maslow’s Hierachy of Needs Theory - - - - 13
2.2.2 Erg Theory (Clayton Alderfer, 1972) - - - - 17
2.2.3 Hertzberg’s Maintenance Theory (1950)
(Hygiene Motivator or Two Factor) - - - - 18
2.2.4 David McClelland Theory (1993) - - - - - 19
2.2.5 Equity Theory (1993) - - - - - - 19
2.2.6 Theory X and Theory Y (McGregor, D. 1960 - - - 20
2.2.7 Expectancy Theory (Victor Vroom, 1964) - - - 23
2.2.8 Relevance of the Theories to the Study - - - - 27
CHAPTER THREE: RESEARCH AND METHODOLOGY
3.1 Research Design - - - - - - - 30
3.2 Area of the Study - - - - - - - 31
3.3 Population of the Study - - - - - - 32
3.4 Sample and Sampling Technique - - - - - 32
3.5 Methods of Data Collection - - - - - 33
3.6 Validation of the Instrument - - - - - 34
3.7 Reliability of the Instrument - - - - - 35
3.8 Administration of the Instrument - - - - - 35
3.9 Method of Data Analysis - - - - - - 36
3.10 Limitation of the Study - - - - - - 36
3.11 Ethical Issues - - - - - - - - 36
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Data Analysis - - - - - - - 38
4.1.1 Demographics of the Respondent - - - - - 38
4.2 Discussion of Findings - - - - - - 44
4.2.1 Influence of Motivation and Employee Satisfaction in
Champion Breweries Plc - - - - - - 45
4.2.2 Influence of Motivation and Employee Satisfaction on
Job Retention in Champion Breweries Plc---45
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Summary - - - - 46
5.2 Conclusion - - - - - - - - 49
5.3 Recommendations - - - - - - - 50
1.1 Background to the Study
Every organization operates with the aim of achieving set goals and objectives which could be in value or satisfaction. Resources that guides organizational goals are finances, physical, or material assets, technology, and human (personnel). Of all these, the human resources (i.e. specialized personnel, unskilled labour, and personnel management) are directly responsible for the harnessing of all other forms of resources in the bid to achieve the goals of the organization. If the objectives of the organization cannot be met the organization cannot continue or may stagnate. A lot of things will therefore happen, including the fact that people will not be able to earn their living, the flow of funds will be inhibited, there will be no expansions, there will be retrenchment, and unemployment. In order to avoid disastrous consequences, the importance of human resources must be highly recognized by any organization. The personnel must be known and accepted primarily as those contributing to the success of the organization. According to Brech (1983), for the achievement of a given task or for the effective operations of persons associated with the organization there should be willing cooperation from, and coordinated activities among the persons involved in the work.
The effectiveness of operations and maintenance of cooperation among members of the organization are in part determined by the personal and social contentment derived by them from their participation in the task of the organization. It is from this perspective that it is found imperative for people to be attracted or motivated to enter an organization and remain in it. Once on the job, they have to be induced or motivated to exert energy and effort at an acceptable rate. Motivation and employee satisfaction is the drive and the means towards the attainment of goal congruency within the organization (Denison, 1990).
Generally, one can say that motivation and employee satisfaction has to do with (a) the direction of the employee’s behaviour or what he or she chooses to do when presented with a number of possible alternatives; (b) the amplitude or the strength of the response (i.e. effort) once the choice is made; and (c) the persistence of the behaviour. The term “motivation and employee satisfaction” conveniently subsumes a number of other variables such as drive, need, incentive, reward, expectancy and so on (Obi-Keguna ,2004). Organizations are often faced with the problem of meeting or achieving together the official objectives gain priority, the personal objectives and the employee’s objectives. Though the official objective and the employee’s objectives must not be thrown aside because when the employee is satisfied the organization becomes satisfied. If the satisfaction received by the employee is not sufficient, he may no longer accept responsibilities imposed on him by the organization. His dwindling performance will affect another employee by way of imitation or jealousy. It may therefore form a chain. Such performances are counter-productive. The survival of the organization in such a situation cannot be guaranteed. The refusal of even a few participants to continue in a co-operative relationship is frequently a serious matter and is detrimental to the organization growth. (Albert 1994).
Motivation and employee satisfaction create incentives for the employees to work harder, conscientiously, and much more effectively, towards the achievement of the organization’s objectives. Pigors (1981) opines that as the employees have certain wants that should be supplied by the organization, so the organization has certain types of behaviour that it expects from its employees. This behaviour can be derived through motivation and employee satisfaction, which essentially is a skill aligning the organizations and employees’ interests so that their behaviour bring about good performance. This then promises high productivity resulting in the achievement of the goals and objectives of the organization.
1.2 Statement of the Problem
At times, some workers are seen in groups discussing outside the offices. In some cases, some traders carry their wares into offices or stay behind the offices to sell. It is also observed that some of these traders are workers themselves, either selling their goods in an alien place or within the office or place of work. This attitude which is detrimental to the progress of the organization and good job performance, is often times attributed to poor management policies and implementation strategies as well as inadequate motivation and low level of employee satisfaction to induce high job performance.
The focus of any organization is how to satisfy its workers in order to achieve the organizational goals and objectives. All organizations including Champion Breweries Plc. Uyo, have their origin, objectives and goals which can only be achieved through the effort of the workers. The workers individually have their own goals and these may be different from those of the organization. A major task of the employer is getting the employees to work in such a way that both the organizational and individual goals are achieved. For any organization to survive in today’s competitive climate, it must of necessity motivate and satisfy its workers to meet the challenges. Several articles, journals, books and dissertations have been published on motivation and employee satisfaction but most of these seem to have ignored the importance of psychological and sociological factors, particularly, the needs of the worker in his job performance. Some organizations display a mark of reluctance to look into the welfare of their employees, thus failing to develop a systematic approach to manpower planning and utilization. Also, studies of employee satisfaction and motivation have not demonstrated that ‘pay’ or money per se has been a major cause of worker dissatisfaction. What they have shown is that intrinsic aspects of work (i.e. achievement, recognition, responsibility, work itself, advancement and personal growth) have been neglected and are often the cause of low performance and low productivity among workers. The management of Champion Breweries Plc, like other organizations has today witnessed a change in the pattern of demands from its employees such as safety measures, promotional opportunities, high wages and salaries, staff training and development, job security and participation in decision making. This study is designed to investigate how employee motivational incentives affect their performance in the Champion Breweries Plc, Uyo.
1.3. Objectives of the Study
The main objective of this study is to systematically investigate motivational incentives and employees satisfaction in Champion Breweries in Uyo. Specific objectives of the study include:
(i). To investigate the relationship between salary and employee’s satisfaction in Champion Breweries Uyo.
(ii). To examine promotion and employee’s satisfaction in Champion Breweries Uyo
(iii). To investigate overtime payment and employee’s satisfaction in Champion Breweries Uyo.
1.4. Research Questions
To guide the researcher in the study, the following research questions were raised;
i. To what extent does salary influence employee’s satisfaction?
ii. Does promotion relate with employee’s satisfaction?
iii. To what extent does overtime payment influence employee’s satisfaction?
1.5. Research Hypotheses
The following hypotheses were constructed for the study in order to guide the researcher in the course of the investigation. The hypotheses are stated in the null forms.
i. There is no significant relationship between salary and employees satisfaction in Champion Breweries Uyo, Akwa Ibom State.
ii. There is no significant relationship between promotion and employees satisfaction in Champion Breweries Uyo, Akwa Ibom State.
iii. There is no significant relationship between overtime payment and employee satisfaction in Champion Breweries Uyo, Akwa Ibom State.
1.6. Significance of the Study
The study would be significant to the government, public and private organizations. The result of this study could serve as a guiding framework in designing and executing such scheme that can act as motivation and satisfying factors to their worker for efficient and higher level of productivity in both public and private sectors.
The result of this study will also challenge the present day attitude of staff and management of the Federal, State and Local Governments to the need of improving performance. It will also inform the managers at the various level of governments of the implications of adequate motivation and satisfying factors to ensure improved performance. The study will help as sources of references as it will elaborate on the theoretical and empirical framework of motivation and employee satisfaction.
1.7. Scope of the Study
The study investigates motivational incentives and employee satisfaction in Champion Breweries Uyo. The research is limited to employees in Champion Breweries, Uyo, Akwa Ibom State. This saves both time and cost of the researcher. The study will cover both senior and junior staff of the company. The focus is on motivational incentives such as salary, promotion, overtime payment in Champion Breweries Uyo. It also looks at the relevance of Maslow’s need theory in explanation variation in incentives among levels of workers in the organization. Both primary and secondary sources of data, questionnaire, oral interview and published works were utilized.
1.8. Definition of Terms
In order to understand some terms used in this research, the researcher feels it is necessary to define the following terms.
i. Motivation: This refers to those psychological forces within a person that determine the direction of person’s behaviour in an organization, a person’s level of effort and a person’s level of persistence in the face of obstacles (Denison 1990). Hence motivation is what impels, what moves, what spurs, what energizes, what reinforces, and what stimulates positive performance. It gives direction to behaviour and underlines the tendency to persist. It is what every worker looks forward to and expects his organization to implement.
ii. Incentives: It is an act or promise for greater action. It is also called stimulus to greater action. They are those things given to workers in addition to wages or salary. It also means additional remuneration or benefits to an employee in recognition of achievement or better work.
iii. Motivational Incentives: Motivational incentives are those additional remuneration or benefits to an employee in recognition of achievement or better work which gives the employee reason for more action or drives the employee to do more or discharge his or her work effectively.
iv. Salary: It is a fixed regular payment typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or “white-collar” worker. It is a form of payment from an employer to an employee, which may be specified in an employment contract clearly spelt in an employment/appointment letter.
v. Promotion: Promotion is the usual means for filling vacancies in higher rank in a grade by selecting offices from a lower rank in the same grade. Officers are selected for promotion on the criteria of character, ability, experience and any qualifications prescribed for the higher rank.
vi. Overtime Payment: Overtime payment is the amount of money paid to each employee in any organization for working beyond the office times. It is the amount of overtime paid to each employee in a pay period.
vii. Employee: Employee is an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied and has recognized rigid and duties..