Effect of Motivation on Employees Performance Athaven of Peace Academy

EFFECT OF MOTIVATION ON EMPLOYEES’ PERFORMANCE ATHAVEN OF PEACE ACADEMY

SIIMA CHRISTIANKAJURA

A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF HUMAN RESOURCE MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA

2015

CERTIFICATION

The undersigned certifies that has read and hereby recommends for acceptance by the Open University of Tanzania a Dissertation entitled “Effect of Motivation on Employee Performance” in partial fulfillment of the requirements for the degree of masters of Human Resources Management of the Open University of Tanzania.

……………………………………………………………………………….

Dr. Proches Ngatuni

(Supervisor)

Date:......

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No part of this dissertation may be reproduced, stored in any retrieval system or transmitted in any way for by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the author or The Open University of Tanzania in that behalf.

DECLARATION

I, Siima Christian Kajura, do hereby declare that this dissertation is my own original work and that it has not been submitted for a similar degree in any other university.

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Signature

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Date

DEDICATION

I would like to dedicate this work to my beloved young brother Chrispinus Christian andmy young sister Fortunata Christian and the entire Kajura family.

ACKNOWLEDGEMENTS

I would like to extend my thanks to the Almighty God for His mercy and empowerment to me during the entire period of my studies at the Open University of Tanzania, His grace has been huge that I remain wordless, may all the glory be to Him. My sincere gratitude to my supervisor Dr. Proches Ngatuni for his tireless guidance and patience throughout the research period may God bless him.Special thanks go to my mother and my pastor for their prayers and encouragement throughout this work.

The success of this study is a result of the contribution of many people and organizations. I also express my thanks to the management of Haven of Peace Academy for their collaboration during my studies and dissertation in general.

ABSTRACT

The main objective of this study was to assess the effect of motivation on employees’ performance. A descriptive cross sectional survey was carried out by administering a questionnaire to teaching and non-teaching staff at Haven of Peace Academy (HOPAC). Both motivation and employee performance were captured using attitudinal scales with Likert type of rating. Scores were used to measure the extent to which employees are motivated and their performance.Comparison was carried out of both motivation and performance across gender, department and job tenure groups. Linear regression analysis was used to assess theeffect of employee motivation on their performance. Teaching staff were found to be intrinsically more motivated than their non-teaching counter parts. No significant differences in intrinsic motivation across gender, and length of service categories. Insignificant differences were found in extrinsic motivation and employee performance across gender, teaching department and length of service categories. Finally, employee performance was found to be significantly positively affected by both intrinsic and extrinsic motivation where the effect of intrinsic motivation was more pronounced than that of extrinsic motivation. It is therefore recommended that HOPAC should balance practices which enhance intrinsic motivation between teaching and non-teaching staff. It is also recommended that HOPAC should engage in activities which boost motivation, but more specifically intrinsic motivation if it wants to maximize employees’ performance.

Key words:Motivation, intrinsic motivation, extrinsic motivation, employees’ performance, job performance, teachers, non teaching staff.

TABLE OF CONTENTS

CERTIFICATION...... ………ii

COPYRIGHT...... iii

DECLARATION...... iv

DEDICATION...... v

ACKNOWLEDGEMENT...... vi

ABSTRACT...... vii

TABLE OF CONTENTS ………………………………………………………….viii

LIST OF TABLES ……………………………………………………………..…...xii

LIST OF FIGURES ………………………………………………………………..xiii

ABBREVIATIONS AND ACRONYMS …………………………………………xiv

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

1.0 INTRODUCTION .……………………………………………………………...1

1.1Background to the Research Problem ……………………………………….…….1

1.2Statement of the Research Problem ………………………………………….……3

1.3Research Objective …………………………………………………………..……3

1.1.3 General Research Objectives ……………………………………………………3

1.3.2 Specific Research Objectives ………………………………………………...…3

1.4Research Questions…………………………………………………………...……4

1.4.1General Research Question …………………………………………...….……4

1.4.2Specific Research Questions ……………………………………….…….……4

1.5Significance of the Study …………………………………………………….……4

1.6Organization of the Study …………………………………………………………5

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

2.0 LITERATURE REVIEW ……………………………………………………….6

2.1 Overview …………………………………………………………………….……6

2.2 Conceptual Definition ……………………………………………………….……6

2.2.1 Employee Motivation …………………………………………………………...6

2.2.2 Employees Performance ………………………………………………………...8

2.3 Theoretical Literature Review …………………………………………………….8

2.3.1 Maslow’s Hierarchy of Needs …………………………………………………..8

2.3.2 Herzberg Two Factor Theory ………………………………………………….10

2.4 Empirical Literature Review …………………………………………………….10

2.4.1General Studies …………………………………………………………………11

2.4.2 Studies in African Countries …………………………………………………..15

2.4.3 Empirical Studies in Tanzania …………………………………………………17

2.5 Research Gap …………………………………………………………………….20

2.6 Conceptual and Theoretical Framework ………………………………………...21

2.7 Statement of Hypotheses ………………………………………………………...24

CHAPTER THREE …………………………………………………………….…..25

3.0 RESEARCH METHODOLOGY ………………………………………….…..25

3.1 Overview ……………………………………………………………………..….25

3.2 Research Strategies ………………………………………………………...…….25

3.2.1 Study Population ………………………………………………………..……..25

3.2.2. Study Area ………………………………………………………………….....25

3.3 Variables and Measurement Procedures ………………………………………...26

3.3.1 Variables ………………………………………………………………………26

3.3.2 Measurement Procedure ……………………………………………………....27

3.4. Data Collection Methods ………………………………………………………28

3.4.1 Questionnaire ……………………………………………………………….....28

3.4.2 Validity of Instrument …………………………………………………………28

3.5 Data Processing and Analysis …………………………………………………...29

3.5.1 Data Preparation …………………………………………………………….....29

3.5.2 Reliability Tests ……………………………………………………………...... 29

3.5.3 Data Analysis ………………………………………………………………...... 30

CHAPTER FOUR ………………………………………………………………….31

4.0 FINDINGS AND DISCUSSION ………………………………………………31

4.1 Overview ………………………………………………………………………...31

4.2 Description of the Sample …………………………………………………….....31

4.3 Analysis of Motivation…………………………………………………………...32

4.3.1 Intrinsic Motivation by Gender………………………………………………...32

4.3.2 Intrinsic Motivation by Department …………………………………………...33

4.3.3 Intrinsic Motivation by Tenure ……………………………………………..….35

4.3.4 Extrinsic Motivation by Gender ………………………………………….……37

4.3.5 Extrinsic Motivation by Department ……………………………………..……38

4.3.6 Extrinsic Motivation by Tenure …………………………………………..……39

4.4 Analysis Employee Performance …………………………………………..……40

4.4.1 Employee Performance by Gender …………………………………….………40

4.4.2 Employee Performance by Department ………………………………..………40

4.4.3 Employee Performance by Tenure …………………………………….………41

4.5 Relationship between Employee Motivation and Employee Performance ...……42

4.6 Discussion of Findings …………………………………..………………………44

CHAPTER FIVE …………………………………………………………………..46

5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS …………….46

5.1 Introduction ……………………………………………...………………………46

5.2 Summary of Key Findings …………………………….…………………………46

5.3 Conclusion …………………………………………….…………………………47

5.4 Recommendations ……………………………………….………………………47

5.5 Areas for further Studies ……………..………………………………………….48

REFERENCES …………………….……………………………………………….49

APPENDICES……………………………………….………………………………54

LIST OF TABLES

Table 3.1 Reliability Analysis Results.……………………………………………. …..29

Table 4.1 (a) Sample Description …..…………………………………………….…….32

Table 4.1 (b) Descriptive Statistics …………………………………………………….32

Table 4.2 Intrinsic Motivation by Gender ……………………………………………...34

Table 4.3 Intrinsic Motivation by Department …………………………………………35

Table 4.4 Intrinsic Motivation by Tenure …………………………………….………...36

Table 4.5 Extrinsic Motivation by Gender …………………………….……………….37

Table 4.6 Extrinsic Motivation by Department ………………………………….……..38

Table 4.7 Extrinsic Motivation by Tenure …………………………………………...... 39

Table 4.8 Employee Performance by Gender …………………………………….…….40

Table 4.9 Employee Performance by Department ……………………………………..41

Table 4.10 Employee Performance by Tenure …………………………………………41

Table 4.11 Correlation Results …………………………………………………………42

Table 4.12 Regression Results …………………………………………………………43

LIST OF FIGURES

Figure 2.1: Hierarchy of Needs by Maslow …….…………………..………………. … 9

Figure 2.2: Research Framework on the Relationship of Motivation ….…………..…..21

LIST OF ABBREVIATIONS AND ACRONYMS

HOPACHaven of Peace Academy

HOPTHaven of Peace Trust

HRMHuman Resource Management

OUTOpen University of Tanzania

FBMFaculty of Business Management

SPSSStatistical Package for Social Sciences

UKUnited Kingdom

SDStandard Deviation

IBInternational Baccalaureate

MNHMuhimbili National Hospital

DMODistrict Medical Officer

CHAPTER ONE

1.0 INTRODUCTION

1.1Background to the Research Problem

Motivation is a key factor in the organization’s achievement. In order to obtain better performance, motivation must be accorded appropriate priority level and employed properly as a vital ingredient for organizational progress and survival especially in this competitive era. Motivated employees help an organization to survive in the rapidly changing markets. It is therefore, important that managers and organizational leaders learn, understand and deal effectively with motivation. This is because motivated employees tend to be committed, creative and loyal in such a way that they become part and parcel to the organization. Kreisman (2002) argues that the most valuable and volatile asset of any institution is a well-motivated and stable workforce which is competent, dedicated and productive. Amabile (1993) on other hand, argues that de-motivated employees are likely to put little effort in their jobs, avoid the workplaces as much as possible, exit the organisation and produce low quality of work.

Other researchers like, BonsuKusi (2014), Kiruja &Mukuru (2013) and Salleh, Dzulkifli, Abdullah & Yaakob (2011), conducted studies on effects of motivation on employees’ performance,and found that lack of employee’s motivation brings high absenteeism and high cost to the employer.These studies are in agreement that unmotivated employees underperform at work places.

Ahmad & Shahzad (2011) did a study to investigate the impact of three HR practices on the perceived performance of the university teachers. Their findings was that the compensation practices in relation to the employees’ performance were significantly positively correlated; whereby the performance evaluation and promotion practices have insignificant relationship with the performance of university teachers in AJK Pakistan.

BonsuKusi (2014) for example, argues that employees prefer higher salaries as the main incentive for higher job performance. They also found that the employees are de-motivated by poor working conditions in the organization.

Kiruja & Mukuru (2013) using a sample of 315 employees in public middle level technical training institutions in Kenya reported a statistically significant positive correlation between employee motivation and their performance.Salleh et al (2011) using the sample of 150 employees in state government in Malaysia. Reports a significant positive relationship between motivation levels (achievement motivation, power motivation, affiliation motivation and salary progression) and job performance.

While the empirical literature seen to be biased towards the Western environment Cerasoli; Nickelin & Ford (2014) and Eastern environment, Inayatullah and Jehangir (2012), Saleh, Dzulkifli and Yaakob (2011), Azar & Shafighi (2013), research evidence is now emerging in Africa, for example, Kiruja and Mukuru (2013) in Kenya’s public level middle technical institution and Bonsu & Kusi (2014) in Ghana. In Tanzania little is known about the relationship between motivation and employee performance. Few studies have looked at motivation in Tanzania for example Manongi, Marcharoot & Byagbjerg (2006) among primary health care workers and Prytherch, Kakoko, Leshabari, Sallerborn and Marx (2012) among maternal and new-born health care providers.

Haven of Peace Academy is an international missionary school which was established in 1994 in Dar es Salaam by Haven of Peace Trust (HOPT) for the mission of providing an excellent, Christ-centred international education that meets western academic standards and equips students to live in a biblical worldview at all areas of life to the glory of God.

So this research intends contribute evidence on the effect of motivation on employees’ performance among teaching and non-teaching staff at Haven of Peace Academy.

1.2 Statement of the Research Problem

The need to investigate the effect of motivation on employees’ performance at Haven of Peace Academy was inevitable. This was forced with the current need of analysing employees’ motivation across gender, job category and job tenure, analysing employees’ performance across gender, job category and job tenure and analysing the relationships between motivation and employee performance. The above pointed out variablesneeded an effective investigation on the fact that employees at Haven of Peace Academy show the symptoms related to absenteeism, de-motivation and grudges.

Most of the studies conducted on the effects of motivation concentrated on the factors of motivation,and where this is linked to employees’ performance, the evidence is biased towards Western and Eastern economies. Although there is a growing body of knowledge in Africa, Tanzania is lagging behind. It is this paucity of empirical evidence on the effect on motivation on employee performance that has motivated this present study.

1.3 Research Objectives

1.3.1 General Research Objective

Generally, this study examined the effect of motivation on employees’ performance.

1.3.2Specific Research Objectives

Specifically, the study was designed:

(i)To analyse employee motivation across gender, job category and job tenure

(ii)To analyse employee performance across gender, job category and job tenure

(iii)To assess whether there is a relationships between motivation and employee performance

1.4 Research Questions

1.4.1General research question

What is the effect of motivation on employee performance?

1.4.2Specific research questions

(i)Do motivation levels of employee motivation differ across gender, job categories or job tenure?

(ii)Do the level of employee performance differ according to gender, job category and job

tenure?

(iii)Does employee motivation levels affect their performance?

1.5 Significance of the Study

Haven of Peace Academy is unique school due its multiple characteristics of being a school organized as Trustee, formed by the missionaries from different parts of the world who are living in Tanzania, following the Cambridge curriculum controlled by the UK government and supervised by the Tanzanian Ministry of Education and Vocation Training. Therefore, the findings of this study wouldbe vital in so many ways.

First, it has revealed the extent to which employees at the school are motivated, their performance as well as the relationship between motivation and employees’ performance.

Second, itshould provide information to the main stakeholders mentioned as policy makers and human resource managers of the school to formulate policies according to motivation level of employees.

The findings send a clear message to school owners and managers that if they want to improve performance of their employees they should ensure that the employees at all levels are kept motivated.

1.6 Organization ofthe Study

The rest of the dissertation is organized as follows: chapter two presents a view of related literature, research gap, conceptual framework and statements of hypotheses. Chapter three presents research methodology, chapter four presents findings and discussions and chapter five present summary of key findings, implication, conclusion, recommendation and areas for further studies.

CHAPTER TWO

LITERATURE REVIEW

2.1. Overview

The purpose of this chapter is to present a review of literature on employee motivation and performance. This chapter is organized as follows: Section 2.2 presents conceptual definitions, Section 2.3 presents theoretical literature review, Section 2.4 presents empirical literature review, Section 2.5 present research gap,Section 2.6 present conceptual and theoretical framework and Section 2.7 presents statement of hypotheses.

2.2 Conceptual Definitions

2.2.1 Employee Motivation

Motivation can be defined as the driving force that makes an individual to take some actions in order to achieve certain goals. (Mullins, 2005). However, literatures provided other definition of motivation as follows:

Rue (2003) narrates that motivation comes from the Latin word (movere) meaning to move. From this estimology numerous definitions are given for the term. These include words like aim desire, end, impulse, intention, objectives and purpose. The definitions normally include the three characteristics of motivation. First motivation is concerned with what activates human behaviour. Second motivation is concerned with what directs this behaviour to particular end. Third motivation is concerned with how this behaviour is sustained.

Huczynski and Buchanan (2007) argued that motivation is a combination of goals towards which human behaviour is directed; the process through which those goals are pursued and achieved and the social factors involved. Mitchell (1982) on other hand, says motivation is the degree to which an individual wants and chooses to engage in certain specific behaviours.

The various needs and expectation at work can be categorised in a number of ways for example the simple division into intrinsic and extrinsic motivation.

Extrinsic motivation is related to ‘tangible’ rewards such as salary and fringe benefits, security, promotion, contract of service, the work environment and conditions of work. Such tangible rewards are often determined at the organisational level and may be largely outside the control of individual managers or employee. (Mullins, 2005).

Intrinsic motivation is related to ‘psychological’rewards such as opportunity to use one’s ability, a sense of challenge and achievement, receiving appreciation, positive recognition, and being treated in a caring and considerate manner. The psychological rewards are those that can usually be determined by the actions and behaviour of individual managers (Mullins, 2005).

Robbins (2010) defines motivation as the process that account for an individual’s intensity, direction and persistence of effort toward attaining a goal. The three key elements in the definition are intensity, direction and persistence. Intensity is concern with how hard a person tries. This is the element that most of us focus on when we talk about motivation. However, high intensity is unlikely to lead to favourable job performance outcome unless the effort is channelled in a direction that benefits the organization. Therefore, we have to consider the quality of effort as well as its intensity. Effort that is directed toward and consistent with the organization’s goal is the kind of effort that we should be seeking. Finally, motivation has a persistence dimension. This is a measure of how long a person can maintain effort. Motivated individuals stay with a task long enough to achieve their goal.

2.2.2 Employees Performance:

Employees or job performance refers to behaviours that are relevant to organizational goals and that are under control of individual employee. Other scholars for example, Campbell (1990) defines employee performance as a behaviour which consists of directly observable actions of a worker and also mental actions or products such as answers or decisions, which result in organizational outcomes in the form of attainment of set goals. However, Motowidlo (2003) argues that job performance is “the total expected value to the organization of discrete behavioral episodes that an individual carries out over a standard period of time”. According to Sturo (2007), employee performance as the extent of completion of the tasks that make up an individual’s job.

2.3 Theoretical Literature Review

This section briefly presents a review of motivation theories which include Maslow’s Hierarchy of Needs and Herzberg Two-factor theory.

2.3.1 Maslow's Hierarchy of Needs:

Maslow's hierarchy of needs theory posits thatbehavior at a particular moment is determined by the strongest need. Maslow hypothesized five levels of needs: physiological, safety, social, esteem, and self-actualization (Maslow 1954 and Lindner 1998). He placed them in a framework referred to as the hierarchy of needs because of the different levels of importance. Maslow states that, if all needs are unsatisfied at a particular time, satisfaction of the predominant need is most pressing. Those that come first must be satisfied before a higher-level need comes into play.

This theory is related to this study as the employees needs and expectations change over time to time. The employees’ performance therefore need a clear motivation plan from generalto self-actualization needs of each employee in the organization. Both intrinsic and extrinsic motivation are affected by the motivation processes in an organization. The organizations should consider that the needs of employees must be paned as the employees needs change after time to time so as to maintain the performance of an organization. The employers must consider employees’ safety, social, esteem needs in the motivational process so as to make them reach at self-actualization for the benefit of an organization. When the employees get one stage of motivation it rise morale of performance but as time goes on that motivation become no longer a motivator which affect the performance; hence organization should plan for other motivation to make them increase performance. (Jerome 2013).