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Monday, 2 November 2015

THE IMPACTS OF MOTIVATION ON EMPLOYEES’ JOB PERFORMANCE



 
 
 
CHAPTER TWO 
LITERATURE REVIEW
2.0 INTRODUCTION
The role of motivation in every society or organization is to promote the performance of individual or workers in a work setting. Motivation is one of the elements of directing - to cause subordinates to act on the orders. Directive is achieved through motivation. That is why motivation is complex and had attracted a lot of studies and more so, it is a vital approach to increasing productivity and performance.


2.1 CONCEPTUAL FRAMEWORK
A review of related literature involves reconsideration of the extent to which past studies have been carried out in the field of study which the researcher is conducting her present research work. This has helped the researcher to acquaint herself thoroughly with the existing studies already carried out in the field of her research. Sankey (2001) observed that the review in every research is supposed to serve as a guide to the approaches, methodology, analytical instrument and facts which previous studies have utilized and the same time eliminate elements which may be in disagreement with the main text and the proposed subject of the study.
Many studies of motivation range from, Fedrick Taylor’s to, Vroom’s expectancy, Douglas Mcgregor, Elton Mayo, Mc Cleland, Hertzberg, Abraham Maslow and many others.
To better understand the concept of motivation, it’s imperative for us to trace its origin. The word “MOTIVATION” originated from latin word “MOVES” which means move in its literal meaning. Motivation is the process of arousing or attracting movement of individuals towards the realization of some set goals or targets.
Thus, it is this movement that helps the individual to move towards personal goals or target of interest.

Theories of motivation generally imply using one or two basic approaches for increasing employees’ performance; the first being the “extrinsic motivation of employee by means of an incentive programme. There are different types of extrinsic rewards; promotion, worker orientation, supervision etc., but the most common incentive is pay (Money) which can take many form such as salary and wages, bonuses, social welfare allowance, like housing, transport, medical, insurance, tax relief etc.  It may be claimed that, people work for money, but this simple link between work and money is deceptive.
There is little evidence, Bryan (1989) observed, to suggest that paying people much will automatically make them work harder. Nor can it be implied that the only satisfactions derived from work are monetary.
The role which money, a reward for work plays as a motivator of human behavior and performance, has been the subject of considerable research, and debate. But over time have changed as its relative importance.
Lawler (1971) in his research findings on using pay to motivate job performance, describes conditions under which pay incentives are most effective, and employed to elicit performance. He said, that “under certain conditions pay can be used to motivate good performance and productivity” that for pay plan to motivate people, it must, create a belief among employees that good performance will lead to;
i. high pay.
ii. Contribute to the importance of pay.


iii. Create condition such that positive outcomes other than pay will be seen to be
related to good performance; and
iv.             Minimize the perceived negative consequences of performing well.
Hassan (1991) said it is noticeable that financial incentive, are not necessarily the primary means of drawing the best out of the workers that individual workers are motivated by different things apart from money. For many, opportunity especially the Local Government staff, such as inducements as high position for achievement, opportunity to use ability and other fringe benefit take precedence over high wages- as long as wages are adequate to provide a decent standard of living for the worker and his family.
Thus the intrinsic aspects of a job alongside the operational conditions do affect job performance, and not necessarily the pay.
Undoubtedly, Sick (1967) also said, the most widely used incentive to motivate employees is money. However, the evidence is overwhelming that more money does not necessarily mean greater productivity. Money has no intrinsic value, yet we recognized the economic worth of money in that it can be exchanged for goods and service.
Dowling and Sayles (1978) said the ideas of using money as an inducement to people to work harder is almost as old as money itself. For more than a century now, people have been managed through the “punishment reward” system.  However, the de-emphasize on money has reached its apparent peak in the hypothesis of the needs hierarchy developed by two noted social psychologists Maslow and Herzberg.
Notwithstanding, the aforementioned assertion, however, there is a psychological emotionally toned worth attached to money.


The economic worth of money enables it to serve as a means of satisfying the basic psychological and safety needs. Its psychological value is that, for many persons, money may symbolize achievement, success, prestige or power.
More so, in a market economy (like Nigeria), work and pay are inseparable. As Bryan said, without money, people cannot buy the goods and service necessary for survival; they cannot advance in status in the eyes of their fellow men, nor can they make material improvement in their standard of living. Furthermore, money has consistently remained a sensitive and crucial element in employees’ rewards, and issues affecting pay and the likes are all capable of evoking very powerful emotions. One may notice that the numbers of industrial disputes are largely expressed in term of pay. Hertzberg (Ibid) also noted that the discussion of money and motivation should not lead us to the conclusion that money is unimportant in the total process of motivating employee; it is important. However, according to two factor theory of motivation, money is a hygienic factor, not a motivator” It can help sustain but not necessarily increase performance or productivity.
Positive attitudes towards work arise from the job itself and function as motivators. These incidents are associated with feeling of self-improvement, achievement, and the desire for and acceptance of greater responsibility. The feelings generated are of a relatively long duration and result in increased performance.
Notwithstanding, in a developing country like Nigeria, Ngu (2002) said, pay in this environment, cannot be under-estimated in evoking strong emotional reaction. This is due to the cultural pressure, economic demands, socio-political instability caused by the general state of high level of unemployment, diseases and poverty that has become a burden on the average Nigeria worker. Pay, indeed, do and can be effective motivation to performance.
This of course, does not necessary means job satisfaction; the employee works to fulfils his or basic and fundamentals needs for survival in an environment so volatile and so demanding.

2.2.1 THE MOTIVATIONAL PROCESS
It is relatively important to stress that the way and manner employees are motivated vary from organization to organization. It ranges from the incentives management provides to employees and the inter-personal relationship between management and employees, and between employees and their immediate superior officers.

The incentives given by different management to motivate their workers ranges from, bonus, free accident allowance, weekend allowance, transport allowance, housing allowance, overtime pay, entertainment allowance, advances, Loans etc..  The above are not only the incentives provided to motivate employees - there are many others and does not mean that all organizations provide all these incentives to their employees because each organization has its own form of incentives.
Incentives provided are not the only things that can motivate employees in task accomplishment in an organization but again like I said above, the relationship between superior officers and subordinates or employees and the management matters a lot.
2.2.2 THE IMPORTANCE OF MOTIVATION IN AN ORGANIZATION

The research of Elton Mayo has been regarded as crucial to the success or failure of organization. A manager/administrator needs to attract people into the organization, maintain them and stimulate them to achieve the organizational goals. Once employee morale is high, it means he/she has been motivated. According to Bedia (1983), the importance of motivation in an organization cannot be under estimated. Motivation attracts and sustains people in an organization. People must be attracted (motivated) to join an organization and stay within.

It is a vital ingredient for an organization to attain a high level of efficiency and performance which is one of the major goals in any organization.
In summary, the importance of motivation includes inter-alia;

I.           Motivation induces or encourages employees in organization to put in their maximum best so as to enhance greater performance for organization.

II.          Motivation reduces the rate of labour turnover in an organization. It enhances the stability of the employees so that they do not think of leaving the job. It helps in maintaining and retaining employees in organization.
III.         Motivation helps in eliminating disenchantment and frustration of employees in organization.


2.2.3 FACTORS THAT ENHANCE PERFORMANCE
Onoriode (1973), vehemently believed that materials motivation like money and fringe benefits cannot on the entirety induce employee to achieve a desire performance level. What need to be done by the management is to identify the employees’ needs, work towards satisfying those needs and at the same time creating conducive atmosphere for employees to perform effectively and efficiently.
The factors that enhance employees’ performance are as follows:-
  1. The challenging nature of the job.
  2. Adequate interaction with co-workers.
  3. Recognition of one’s performance in the organization.
  1. Desires for achievement at work
  2. Possibilities of personal growth and development.

6.      The free flow of communication between superior and subordinate employees

  1. Employees participation in managerial decision.

  1. Re-designing jobs to allow employees for greater challenges and broader range of participation in the organizational activities.

  1. Conducive atmosphere for work

  1. Better welfare packages for the employees.

2.2.4 APPROACHES TO MOTIVATION
A lot of literature deals with motivation as a basic psychological process. Also a great deal of research has been conducted on motivation in the work place. Such research has covered issues like job design, leadership style, the design of compensation, promotional system and many others. However, the question of what motivate employees to perform effectively is not easy to answer. Many aspects are yet unexplored and there are many other alternative ways of characterizing and organizing what is known about the relationship between motivation and management.
Vroom et’al (1964) gave three approaches which are used as managerial or organizational strategies, for stimulating motivation. These are paternalistic approach, scientific management approach and participative management approach.

i.  Paternalistic Approach To Motivation
This approach assumes that people will be motivated to perform their job effectively if they are satisfied with their job. The more one reward workers, the harder they will work.
The greater the extent to which an employee’s needs are satisfied in his job, the greater the extent to which he will respond, presumably with gratitude or loyalty, by performing effectively on that job.

The reward which are utilized in this approach are termed unconditional rewards in the sense that the amount of reward that an individual receives is not dependent in any clear cut way on how to behaves within the organization but rather on the fact that he is a member of the organization. Example of these rewards are pension plans, group insurance, subsidized education, recreation programmes, comfortable working condition and the likes plus high wage level, across the board wage increase, job security and predictable promotion pattern.

This approach has some implication for the administrator/manager and his subordinates. If the administrator/ manager apply this to its fullest extent, he would see to arrange the condition of work so that people would feel comfortable, happy and secured. His primary goal will be  that his subordinates would be able to get things that they wanted and he would be assumes that as a consequence of this support the subordinate will play enthusiasm and loyalty. However, there is little evidence that any of these rewards can have any direct effect on employees’ productivity or performance. The conclusion therefore, is that the paternalistic approach was not a very effective strategy for motivating employees to perform effectively in their jobs. Perhaps” it might work little on job satisfaction and indirectly on people’s decisions on whether or not to stay in the organization. But it had relatively little effect on people’s decision about how much they will produce while in the organization.
ii.  Participation Management Approaches To Motivation.
The participation management approach assumes that individual can derived satisfaction from doing an effective job per se; they can become ego involved with their jobs, emotionally committed to doing them well and takes prides from evidence that they are effective in furthering the objectives of the organization. The assumptions underlying a participative approach to management are more completely documented by McGregor when he talks about theory Y.
One of the best basic elements of different theories of participative management is the integration of the planning and the doing. The term “management by objective” expresses a similar idea.  In essence the discretionary component is reduced. The person is given broads goals or objectives and is able to determine for himself how they are to be achieved. The basic assumption is that of a person has freedom in determining how he will do his job as more of a challenge than if he is told exactly what to do and when to do it.
The second common element of the theories of participative management is the reduction in the use of authority as a means of control. In essence, the superior or manager plays a helping role rather an authoritative one. He is therefore, a resource of his ideas on his subordinate to use, but he resists imposing his ideas on his subordinates concerning how their jobs should be done.
According to McGregor” the manager is a teacher, a consultant, a colleague rarely a boss”
Thirdly, in the participative management approach there is much more reliance on the utilization of work group as problem solving and decision-making unit. On matter affecting the entire unit the supervisor does not make decisions autocratically and issues orders to subordinates but rather he meet his subordinates as a group and shares problems with them and encourages them to participate with him in finding solutions to these problem. The opportunity to participate in the decisions-making process is assumed with considerable justifications, to create identification with corporate goals and objectives. The approach assumes that incentives for effective performance are in the task or job itself or in the individual’s relationship with members of his working team.
The emphasis is on creating conditions under which effective performance can be a goal rather than a means to the attainment of some other goal and the philosophy is one of self-regulation rather than organizational control.

The emphasis on internal control and self-regulation in participative management assumes a particular set of needs or motives which are characteristic of man. These needs are mostly those of higher ends of Maslow’s hierarchy it is therefore possible that the effectiveness of participative management may also depend on the strength of those motives among the people to be managed. Maslow further speculated that the principles of participative management are most useful in meaning to persons with strong need for self-actualization and are primarily applicable in the more highly developed countries.

iii Scientific Management Approach Of Motivation
This approach is based on the assumption that a person would be motivated to work if reward that are penalties are tied directly to his performance. The rewards are conditional rather than unconditional. That is, they are attached to and made contingent upon effective performance. The clearest example of the use of reward as a means of motivating performance may be found in individual wage incentive.  It is also shown in such practice as promoting individuals on the basis of their merits and in recognizing and rewarding people for special accomplishment. In addition, penalties are typically made contingent upon falling below some minimal standard of performance e.g. warning, reprimands or even dismissal for violation of rules and procedures.

This approach constitutes an external control system. It defines the standard to be used in the allocation of the reward in an objective or measurable fashion. These standards may be formulated in terms of the method used by individual when carrying out the job or in the result which is achieved. It is also necessary to monitors the behavior of the individual to observe the extent to which these standard are attained or adhered to.

2.3. THEORIES OF MOTIVATION 
Motivation as a concept stressed on the fact that individual as employee in any organizations has varied and numerous needs to satisfy. According to Koontz et’al, some of these needs are primary while other ones are secondary. The primary needs are mainly physiological (food, water, shelter, and the body needs) while the secondary needs are purely psychological which are esteem, status, afflation, accomplishment, growth, autonomy, power, and realization of one’s potential. To bring such needs into focus, many theories in management have overtime written extensively on the needs of human beings(employees), propounding some theories which have accordingly gain world-wide recognition and acceptability vis-Ă -vis the management of employees in organization. The theories as developed by management authorities have expectedly underscored the essence of motivation. However, as a result of the numerous works that are available in this area, the researcher cannot exhaust all of them and so have chosen few theories on motivation for this study.
And these are;
1.Human Hierarchy of needs theory (Abraham Maslow 1954)

2.Two factor (motivation-hygiene) theory Frederick Herzberg 1959

3.E R G theory of needs (Clayton P.Alderfer, 1972)
2.3.1    MASLOW HIERARCHY OF NEED THEORY
Maslow in 1954 developed a vigorous and sophisticated approach for classifying human needs. He identified five levels of needs. They include:-
(i). Physiological need (ii) Safety need (iii) Social needs (also called ego need) (iv) Esteem need (v) Self- actualization (also called self fulfillment needs).
Maslow saw these needs as forming a ladder in their order of importance to man.
These needs progress from a lower to higher order. As each of them is satisfied, the next need becomes dominant motivator of behavior.

a. Physiological needs: These are basically human body needs that must be satisfied in order to sustain life. Thus they are known as being the strongest. They include food, shelter, clothing, health, water etc..

b. Safety needs: When the physiological needs are reasonable satisfied, the safety needs are activated. These includes among other comfort, peace, protection against danger or deprivation, assurance of long term and economic well being.

c. Social needs: The next active motivator is social needs. These are needs for affiliation, affections and friendship, group participation and membership. According to Maslow, these can be achieve within the work environment and suggest that every organization should create an enabling environment for it to be achieved.

d. Ego or self-esteem needs: These includes recognition prestige, self-confidence, leadership, independence, achievement, knowledge, status, appreciation and deserved respect of one’s fellow; According to the theory, people (or employees in the organization) have constant craving for more achievements, more knowledge and more recognition.
e. Self- actualization or fulfillment needs: This is the ultimate need of man.

Maslow defines this need as” the desire to become everything that one is capable of becoming”. Maslow said, this level of need comes up to dominate a person or employee’s behavior after all lower level needs are reasonable satisfied. This includes the need for doing things for the challenge of accomplishment, intellectual curiosity, and creativity, acceptance of reality and feeling of fulfillment.


Maslow emphasized that for employees to be motivated; the manager/management has to make effort to meet their higher level needs. To him and other social psychologists, motivation can be achieved only to the extent that higher needs are met. They emphasized that the higher level of the needs, the greater is its power to give enduring satisfaction which will yield better performance.

2.3.2    TWO FACTOR (MOTIVATION HYGIENE) THEORY (FREDERICK
HERZBERG 1959)

Herzberg developed a two factor theory on motivation which shows two set of factors that influence the attitudes and behavior of employees; one which ranges from satisfaction to no satisfaction and the other set ranges from dissatisfaction to no dissatisfaction. According to Herzberg, the factors influencing the satisfaction range are called motivation factors which are closely related to the content of work. And they include;

1. Achievement (2) Recognition (3) Work itself (4) Responsibility (5) Advancement.
The set factor which causes dissatisfaction, the hygiene (maintenance) factors are related to the work environment and include:-

Company/organization’s policy and administration (2)  Supervision(3) Salary(4) Working condition.

According to Herzberg, the motivators provide workers with intrinsic reward or job satisfaction. Workers gain a sense of accomplishment - a feeling of being important or of making their contribution from their job performance. Intrinsic motivators develop internally and come from something the employees want to do.
As for the hygiene factors, Herzberg said, if these hygiene factors are absent or inadequate in any organization, there would be dissatisfaction among the employees and may lead to dissatisfaction or poor performance. But if present, they lead to job satisfaction but do not motivate employees to perform well. He (Herzberg) saw these factors as being extrinsic, that is, coming from outside the employee and that, they can only prevent dissatisfaction when they are adequate. Herzberg therefore, recommends job enrichment for the proper use of these two factors theory
2.3.3    THE E. R. G. THEORY OF NEEDS (CLAYTONS P. ALDERFER 1972)

Another content theory is that of Alderfer’s theory of needs. The Alderfer needs theory unlike Maslow’s hierarchy of needs, theory has categorized the needs of individual (employees) into three levels; Existence needs, Relatedness needs and Growth needs.
-Existence needs: are the physiological and security needs such as food, shelter and clothing as well as good working conditions.
-Relatedness needs: concern the social aspect of the individual’s life that is, it involve relationship with the people, whether family, superior, subordinates and friend etc
-Growth needs: This takes care of self-esteem and self actualization. These according to him are those that drive an individual to have creative or productive influence on him or on the environment. The theory states that;
(a)    The less existence needs are satisfied the more they will be desired. This is quite similar to Maslow’s needs.


(b)   The less relatedness needs are satisfied, the more they are desired, just like Maslow’s theory.

(d) The less Growth needs, are satisfied, the more relatedness one are desired. This is in consistent to Maslow’s theory. The theory pre-supposes that more than one level of needs can give rise to motivation all at the same time.

2.3.4    MOTIVATION AND EMPLOYEE PERFORMANCE 

In this research, we examined some motivational theories, which considered views of authors on the relationship between motivation and employee performance.
According to Ubeku 1975 quoted in Ukaejiofo 2013, effective performance on the part of the employee is essential to the success of any organization.  Such performance will lead to a great measure depending on their knowledge and skills, while the knowledge and skills the individual employee have are important in determining their job performance. However, these factors alone are not enough.  A good   understanding of what motivates each individual is necessary to revel how abilities and skills are utilized for optimal performance.
According to Herzberg’s two factor theory, money is not really a motivator.  The employee of today has become so skillful and technological savvy that managers have to think out of the box for new ways to motivate them.  Many of them are earning high salaries and therefore, money is not a big factor.
Managers need to provide challenging jobs to better motivate today’s knowledge employees according to Ukaejiofo 2013.  This is because the physical, material and social needs that come with the job are already taken care of.  Therefore, these employees tend to move on to higher – level of needs such as ego (esteem) and self-actualization. 
Work itself is a motivator according to Herzberg as cited in Ukaejiofo 2013.  Studies have shown that satisfied employees are more productive.  So in managing todays knowledge employees, managers need to design jobs that are both challenging and satisfying.  To design the right jobs, employee input should be considered and addressed.
Other factors necessary to motivate employees performance are team building; realistic goal setting, recognition, training, targets, rewards and incentives, equity etc.
3.3.5    BRIEF PROFILE OF FEDERAL INLAND REVENUE SERVICE
The Federal Inland Revenue Service started as part of a colonial tax organisationunder the name the Inland Revenue Department of Anglophone West Africa. The department’s scope of administration covered Nigeria, Ghana, Sierra Leone and the Gambia
In 1943, the Nigerian Inland Revenue Department was carved out of the Inland Revenue Department of Anglophone West Africa and established as an autonomous body under the supervision of the Commissioner of Income Tax. The Nigerian Inland Revenue Department consisted of :
  • The Resident
  • Chiefs and elders in each district
  • Any native authority, which by native law and custom was recognized as a tax collection authority  

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