IMPACT OF MONETARY MOTIVATION ON EMPLOYEE PERFORMANCE

A CASE STUDY OF BUKOYO SECONDARY SCHOOL IGANGA DISTRICT

 CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter presents the background to the study, statement of the problem, purpose of the study, research objectives, and research questions, scope of the study and significance of the study.

1.1 Background to the Study

Globally, successful running of organizations is very challenging today. Employee performance and revenue growth are challenged by internal and external operating environment factors. To survive in a profitable way in the highly challenging and competitive global market economy, all the factors of production like machines, materials and men should be managed in an impressive way. Among the factors of production the human resource constitutes the biggest challenge unlike other inputs, employee management calls for accomplished handling of thoughts, feelings and emotions to protect highest performers. High performance is a long-term benefit of employee motivation (Wilmot, 2007).

The relationship between Motivation and employee performance is to the effect that when employees are properly motivated, it creates delight in their day to day work. Various studies and research have also proven that delighted employees give out their best in the workplace. However, many employers and managers do not value the impact of motivation on employee performance. As such, in trying to increase performance and thus productivity, they ignore motivation and resort to other factors such as employee competencies, process efficiency and effectiveness, technology deployment, innovation, organizational learning, and others.

Employee performance management encourages the employee to get involved in the planning for the organization, and therefore anticipates by having a role in the process the employee will be motivated to perform at a high level (Kreisman, 2002).

The Motivation status at Bukoyo Secondary School Iganga District is quite sloppy and leaves a lot to be desired. From initial results obtained by the researcher, most of the motivation policies at Bukoyo Secondary School Iganga District were not adequately functioning and the few policies that are functioning were inconsistent and irrelevant for workers needs and desires at school. It concentrates on monetary rewards, which are not only unfairly but also inequitably administered like employees in same scale with similar qualifications earn varying salaries, and staffs on project assignments earning a lot.It is against this background that the researcher was prompted to undertake a research study entitled “The Impact of monetary Motivation on the Employee Performance in Organization at Bukoyo Secondary School Iganga District.”

1.2 Statement of the Problem

According to auditor general report, (2015) the employees in most local governments in Uganda have been found to be poorly performing and do not meet their targets this has however been a big concern to the government while according to Onyango Obbo (2007). Local Governments have recently been reported as corrupt institutions, with its senior and low rank cadres cited in embezzlement, misappropriation and falsification of transactions in addition to that most of the employees’ are poor performers a factor which has made it difficult to provide services to the citizens.

Bukoyo secondary school is one of the government aided secondary schools in Uganda, though the school receives funds and support from the government , the performance of its staff has been poor this is manifested by the fact that in the 2016 UCE results the school recorded poor performance, this is has been shown by the fact that the school registered less than 20 students with first grade in addition to that performance has been poor for the last three years from 2015 , 2016 to 2017 (Bukoyo, 2017) , this down ward trend in poor performance has puzzled , the board of governors in the school as to what could be the cause . It’s upon this Background that this study intends to investigate into impact of monetary motivation on employee performance in Bukoyo Secondary School Iganga District.

1.2 Purpose of the Study

The purpose of the study was to examine the Impact of monetary motivation on employee performance in Bukoyo Secondary School Iganga District.

1.4 Specific Research Objectives

1. To establish the influence of salaries on employee performance at Bukoyo Secondary School Iganga District.
2. To examine the impact of Health allowance on employee performance at Bukoyo Secondary School Iganga District.

• To examine the effects of employee recognition on employee performance at Bukoyo Secondary School Iganga District.

1.5 Research Questions

1. What is the influence of salaries on employee performance at Bukoyo Secondary School Iganga District?
2. What is the impact of allowance on employee performance at Bukoyo Secondary School Iganga District?

• What are the effects of employee recognition on employee performance at Bukoyo Secondary School Iganga District?

1.6       Scope of the Study

1.6.1    Content Scope

The study will focus on the influence of salaries on employee performance, the impact of Health allowance on employee performance and the effects of employee recognition on employee performance.

1.6.2    Geographical Scope

The study was conducted at Bukoyo Secondary School Iganga District to determine the impact of monetary motivation on employee performance.

1.6.3    Time Scope

The study focused on the impact of monetary motivation on employee performance in Bukoyo Secondary School Iganga District for a period of two years.

1.7       Significance of the Study

1. The research findings will help the management of Bukoyo Secondary School Iganga District to understand further the effect of motivation on employee performance.
2. The study findings will help management of Bukoyo Secondary School Iganga District to come up with better motivation techniques which will result into improved employee performance.

• The study findings will highlight on the benefits of employee motivation and how they subsequently influence employee output.

1. The study findings will be helpful to many managers and leaders in our society to identify the things that they need to do in order to successfully motivate their employees to perform at their best.
2. The study findings will benefit policy makers like the International Labor Organization, Workers’ Union and other government organizations to come up with effective realistic policies of motivating employees.

1.8 Conceptual Frame Work

Motivation (Independent Variable)            Employee performance (Dependent Variable)

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter covered the review of the literature on, the influence of salaries on employee performance, the impact of Health allowance on employee performance and the effects of employee recognition on employee performance.

2.1       Definition of Key Terms

2.1.1    Motivation

Motivation is the inducement of a desired behavior with in subordinates with a view of channeling their efforts and activity to achieve an organization’s goals. It is also an internal drive to satisfy an unsatisfied need in an organization and is also known as an incentive action (Balunywa, 2005). According to Butkus & Green (2002), motivation is derivedfrom the word “motivate”, means to move, push or influence to proceed for fulfilling a want (Kalimullah et al, 2010).Bartol and Martin (2003) describes motivation as a power that strengthens behavior, givesroute to behavior, and triggers the tendency to continue (Farhad et al, 2011). Employee motivation is one of the policies of managers to increase effectual job management amongst employees in organizations (Shadare et al, 2009).

2.1.2    Employee Performance

Mington and Hall (2003), define employee performance as the mode of conduct or behavior. Zuhail (2010), defines employee performance as the functioning and presentation of the employee.  Therefore,the more good performance would be the better ranking the employee would get in the company. Kakuru (2005), emphasized that employee performance is looked at interms of competitive performance, quality of service, feasibility sources, utilization and annotation.

2.2       The influence of salaries on employee performance

Many different scholars have agreed and disagreed on the ways employees should be motivated. Some of them assert that in order to motivate an individual, a financial benefit has to be foregone by the motivator whereas others believe that money is not a true motivator hence both financial and nonfinancial incentives are considered in the discussion below:

Financial incentives are rewards or payments that employees get in consideration of their contribution towards the organization. He adds that these are payments for labor as a factor of production (Cole, 1998).

Lindner (1995) notes that, though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month.

Chien-Chung (2003), noted that piece rate is the paying of a worker per item produced in a certain period of time. Chien-Chung (2003), asserts that this increases speed of work and therefore productivity. This is in agreement with the earlier revelations made (Taylor, 1993) ,who notes that though the employees will care less about the quality of their work, their sped improves with the piece rate practice of motivation.

Doellgast (2006), advanced that fringe benefits are often known as “perks” and are items an employee receives in addition to their normal wage and salary. These include company cars, health insurance, free meals and education. He asserts that these encourage loyalty to the company such employees may stay longer with the company.

This is paid to those employees who meet certain targets. The targets are often evaluated and reviewed in regular appraisals with managers. Doellgast (2006), discourages the use of this practice of motivation. He asserts that it can be very difficult to measure employee performance more especially those in the service industry and that the practice does not promote teamwork.

Marler (2000), indicated that when your employees function as a team, you ought to think like a coach; reward the whole group for a job well done. He says this will boost morale both personally and collectively. He adds that employee incentive programs such as small bonuses serve to better the morale of an individual employee and that of a group as a whole by making them more satisfied. This is in agreement with (Likert, 2004), study which concluded that since everybody wants to feel appreciated and special for the work done, they can therefore be motivated by appreciating them and making them feel special. He adds that the more satisfied the employee is, the better he/she will perform. Mwanje (2000) believes that non-financial incentives are the most important motivators of human behavior in terms of the needs of human beings. He refers non-financial incentives to non-monetary ways of rewarding employees. They are opportunities that help employees in the accomplishments of the set goals. They include;

Hammer (2000), asserts that an individual will be motivated to do something if they have the mental ability and skills to accomplish it. He writes that when employees are trained, they get the knowledge of performing tasks and challenges and thereby feel less intimidated by their jobs/tasks.

Marin (2006), states that variable pay or pay-for-performance is a compensation program in which a portion of a person’s pay is considered “at risk.” Variable pay can be tied to the performance of the company, the results of a business unit, an individual’s accomplishments, or any combination of these. It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn (2007) , the test of a good pay-for-performance plan is simple therefore it must motivate managers to produce earnings growth that far exceeds the extra cost of the program though employees should be made to stretch, the goals must be within reach.

Previously the territory of upper management and large companies, stock options have become an increasingly popular method in recent years of rewarding middle management and other employees in both mature companies and start-ups (Jones. 2001). According to Porter (2007), employee stock-option programs give employees the right to buy a specified number of a company’s shares at a fixed price for a specified period of time (usually around ten years). They are generally authorized by a company’s board of directors and approved by its shareholders. The number of options a company can award to employees is usually equal to a certain percentage of the company’s shares outstanding.

Cash and noncash recognition programmes are rated as the most powerful tools of motivation. People need to know how well they have achieved their objectives and if the employer appreciates them. Armstrong & Murlis (1994 ) and Flannery et al, (1996) believe that appreciation can be achieved in various ways such as naming the employees who have done well in the company’s newsletter, awarding employees with cash bonuses, or allowing  employees to go on vacation. They further maintain that the recognition programs does not change employees’ behaviour, or encourage an organization’s nonperformers to work harder. The recognition program on the other hand recognizes outstanding behaviour by communicating to employees the value placed on that behaviour.

This performance option distributes profits from improvements in productivity, cost savings, and quality, with employees who are members of a group that is involved in accomplishing these improvements. The advantage of gain sharing plans is that they offer cost savings for the organization and accumulate money that the organization would otherwise not have earned. Employees can see how they influence change and how they are rewarded for improvement. The concept of gain sharing is easy, but the implementation is difficult. The organization has to determine how much of the achievement is from employees and how much is from the result of new technology (Flannery et al, 1996).

It was revealed that when an employee does one kind of job week-in week-out, they will always get de-motivated to carry on with their work more especially when the work is not very challenging. She suggested that employees need to be rotated around the organization to meet new challenging tasks in order to keep their minds busy and feel like they are doing something for the organization (Fowler, 2001). However, Clifton (2002) disagrees with these revelations. Clifton(2002) , asserts that job rotation does not actually lead to motivation of the employee; it just helps the employees not to get bored with their work. In other words it helps the employers to maintain a certain level of motivation in employees.

Managers need to be clear when talking to their employees and let them know that their opinion or views are important in building a viable company. Strong communications skills are necessary when assigning tasks to the employees so that the tasks are clearly defined and understood. Marie (2000), asserts that the managers ought to communicate to their subordinates in such a way that the subordinates feel like they are not forced to do a particular task. Jean (2002), also agrees that managers should develop an inclusive approach to decision making if at all they are to increase their employee motivation levels.

2.3       Impact of  allowance on employee performance

Wilmot (2007), asserts that people must have in mind a clear picture of any end or goal they are to achieve. If this picture does not exist, they cannot tell if they are making progress or when they have completed the task or assignment, let alone if it has been completed properly. Knight (2008), agrees and adds that keeping the end in view has been sage advice for almost two thousand years. The time a manager spends in developing, communicating and clarifying the goals or ends to be achieved is time well spent.

Fred (2003), noted that figuring out what to do in a particular situation require knowledge of the structure of that situation. People must understand the elements that make up the situation, how those elements are connected to one another and the relationships that exist between and among these elements. Sara (2004), agreed and added that employees can only perform to the best of their knowledge and therefore those with good knowledge about the structures will perform better.

Gerhart (2004), wrote that without information about actual conditions in relation to intended goals or results, no one can perform to standard. Such information is known as feedback. It informs progress, enables corrections and, eventually, signals attainment of the objective. For most hard tasks (that is, tasks involving tangible products or other immediate and readily measured effects of one’s actions), feedback is generally available without much effort on any-one’s part. We are aware of our actions and their effects. But, for soft tasks (that is, tasks where the effects of our actions are not tangible, immediate nor readily measured), the feedback loop is essentially open. This is especially true when the main effects of a person’s actions are the reactions of other people. Therefore, lack of good feedback leads to lack of correction and hence poor performance.

Sara (2004), asserts that absent feedback, people have no choice except to act in ways that are consistent with internally-held views or mental models of what is appropriate or what should work instead of externally-based information about what is and isn’t actually working. For this reason, it is worthwhile spending time working with people to identify the mental models they currently use in situations where feedback isn’t readily available. In some cases, this will surface mental models that are inappropriate or inadequate. In other cases, it might surface mental models that are superior to those held by most people. This means that employee performance does not only depend on the information provided to the employees but also to their mental models.

In his studies on performance, (Rynes, 2004) found out that performance might not occur if the environmental conditions are so unsuitable as to present insurmountable barriers to performance. He writes that most of us can successfully drive our cars on windy days but none of us can drive through a tornado. In less dramatic terms, missing tools and equipment, competing priorities, a repressive climate and other factors can interfere with our ability to perform as expected, regardless of our motives or our repertoire, the presence or absence of feedback and the quality of the mental models that guide our thinking and actions. In short, the task environment must support the desired performance; at the very least, it must be manageable.

Samuel (2010), was of the view that technology is primary tool that can be used to boost employee performance. Ha writes that improvement in technology accompanied by training of the employees can significantly increase their levels of performance because it reduces the stress that comes with doing the job manually.An organization which is in relatively stable conditions both internally and externally is able to implement its pay policy in relative ease yet an organization which is undergoing massive will probably find that it has to completely restructure its way system due to market pressure (Cole 1997).

Scott (2000), defined ability as the capacity to learn and perform the tasks required.  He revealed that a good mixture of ability, training and experience is the root cause best performances. He asserts that best performing employees at least have two of the three factors. Cole (1997), suggests that its important to recognize the training fact since sometimes trained employees are asked to meet needs which ought to be met or to be dealt with in some other way that is replacing machinery. The main purpose of training in an organization is to equip the employees within skills to enable them deliver well their jobs and this keeps employees updated in the modern way of doing things (Hippo, 2002).

Berman (2001), wrote that as much as an employer may not want to be affected by the personal life of his employees, personal problems can sometimes affect employee performance. Managers need to be sensitive to employee personal problems, and be prepared to discuss the issues with employees when necessary. If an employee requires time off to deal with a personal problem, then granting that time off will help to show all of your employees that the company values its employees.

Fear is a great motivator for very short time, that is why a lot of yelling from the boss will not seem to light a spark under employees for a very long time. In turn, this implies that some employees are threatened from work hence having a lot of fear that make them not to effectively perform their required tasks at the required time (Gary, 2003).

This means lack of long term employment in an organization. When there is a change in the organization, for example change in management– where the employees fear for their job, in terms of structure and job competition, workers will resist as they are not sure of the future thus bringing about poor industrial relations. Furthermore, this is the fear of losing one’s job (Subbakarishna, 1998). This therefore is concerned with the potential loss of employment and uncertainty regarding the job and carrier issues. This improves ones level of responsibility and promotional opportunities.

Plans provide a sense of directions by focusing the attention on specific targets and direct employee efforts towards important outcomes (Draft,1991) through goal setting and planning, managers learn what the organization is trying to accomplish. They can make decisions to ensure that internal policy, roles performance structure, products and expenditures will be made in accordance with desired outcomes.

Koontz (2002),inclines that some employees may not be able to cope with the changes that occur at work. Equipments may change or the type of work can change in an organization. This can make the employee unable to adapt. Adequate training is necessary to help the employee to cope and be able to perform better. The type of work in an organization may also involve a sense of compassion. This is especially true when the organization deals with people. People who tend to be aggressive by nature may find conflicts in the situation. Good performance may be affected, not because of lack of ability or interest, but by conflict of values (Stoner et al , 2002).

Cole (1997) , revealed that some people are highly sensitive to the environment and the climate. These should be conducive for work; otherwise even good performers can also become poor performers. The work situation and environment should be adequately modified to help the employees have better working conditions. Work ethics is very important for the performance of an employee. Good morals and ethics can help a person to improve their performance. Otherwise, it can lead to poor performance and can also demotivate the other employees (Martin, 2002).

This is the policy of employees in an organization to perform tasks on a group basis. In this case it helps employees to share different skills for example those who are more skilled and those less skilled. In order to improve team work and increase outcomes it is crucial to gain insight into how the team is operating and identify opportunities for improvement (Maritz, 2005).

This involves poor remuneration, inadequate equipments and poor working facilities. When employees perceive the organization as having poor working conditions, poor labour relation may result (Dubrin, 2007). Some people are highly sensitive to the environment and also climate. These should be conducive for work; otherwise even good performers can also become poor performers. The work situation and environment should be adequately modified to help the employees have better working conditions (Kotler, 2008).

All the basic policies and procedures relating to labour relations should be communicated to employees and management should communicate the general objective of the enterprise and it should have an open-door policy (Thompson, 2006). Poor communication skills leads to poor performance of employees that is to say when employees are not told what they have to do at the right time in the right place they tend to forget their responsibilities which reduces the rate at which work has to be accomplished thus communication still avail the different departme4nts of the organization with information required to perform the various tasks in an organization (Cole, 2001).

Determination of employment, dismissal without formal or normal warning leading to disagreement between the employees and management (Freeman, 1999).Robinson (2001), indicates that poor labour practices like working over time (longer hours) decreases the performance of employees. Employees need to work in shifts so that they maintain their performance level.

Smith (2004), emphasizes that the introduction of new technology in different organizations has affected employee performance both positively negatively whereby it requires training workers which becomes costly and on the other hand such improves worker’s efficiency and organizational development. Balunywa (2004), adds that introduction of new technology into the market has greatly affected the performance of employees in organizations because employees tend to relax and only monitor the machines, this has increased the rate at which they relax in so doing employees cannot use their skills to achieve what they can hence decreasing their level of performance.

Poor working materials and equipments may not depict employee performance because of the fact that poor results are ascertained which also to organizations collapse(Derek, 2000). Appleby (2001), observes that a good working environment influences worker’s performance. In areas where there is no security worker’s lives are put at risk and this may not induce their workings.  Neo-classical theorists, pointed out that in order for a worker to perform effectively he must be coarsed with punishments. Witkin (2000), disagrees adding that poor supervision purely leads to poor results which does not depict employee Performance. Conflict within an organization cannot yield employee performance but simply triggers gradges in between workers therefore affecting employee performance (Robbins, 2005).

2.4       The effects of employee recognition on employee performance

Sanderson (2003), believed that empowerment creates motivation and energy in workforce to do their work efficiently and effectively (Amin. et al, 2010). Kuo et al. (2010), recommended that together the job characteristics of career revamp and employee empowerment are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation (Reena et al, 2009). More the loyalty towards the organization and higher the motivation works best for the effectiveness and growth of a business.

In the long run, the effects of compensation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment. When employees begin to feel they are an indispensable part of the organization, they often become dissatisfied with their compensation and benefits. Finally, when employees feel they are a superior part of an organization, they typically believe that the organization owes them much more than what they are already receiving (MacDonald and Gabriel, 2013). At this point, compensation is simply the glue which holds many dissatisfied employees in place. Furthermore, it does not mean that there is a positive correlation between better compensation and better performance.

Posti (2005), inclines that people need motivation just as pieces of equipment need fuel and operators. This is highly demanded to ensure that they are always at their optimum working condition. In turn, this will absolutely lead to optimum productivity. People are one of the most important assets in business. They have unlimited potential to contribute in the achievement of objectives. Their aggregate productivity propels the operations of the company. It dictates the overall performance, which creates an attractive corporate culture.

Employers and owners need to create organizations where excellent performance leads to competitive compensation for people throughout the organization. Without rewards, a company is planting seeds for high turnover, low productivity and long-term failure. However, to reward employees that are not performing saddles an organization with higher payroll costs and encourages poor performers to stay while discouraging the employees that go above and beyond expectations (steers et al 2012). The impact of compensation and benefits on employee performance and organizational effectiveness depends on the existing compensation and performance management programs at an individual company. Typically, most employees respond to increases in pay and benefits with a positive and more productive attitude. However, the opposite is true as well. Sometimes, employees only notice rewards of a salary increase the day the increase is communicated to them, and the day they receive the first paycheck that includes the salary increase.

Dems (2010), said that the value of human resource productivity is a managerial concern. Employee motivation is the classic response on this matter. This has been utilized for ages by many different entities, small- and large-scale businesses alike. It fosters mutual growth in an employer-employee relationship. Indeed, motivation increases productivity. In the study (Wood, 2000), he examined the role of active exploration in an adult training program. Their results indicated that participants who were trained to actively explore the environment during training had higher intrinsic motivation levels, as well as higher performance on transfer tasks.

Compensation is one of the primary reasons for employees to seek employment. They are rewarded for their services and efforts that they exert for their organizations. They can be compensated in many ways for example salaries, holidays, bonuses etc. There are two basic compensation models; performance based pay and components based pay. In the former paradigm, employee’s compensation is either tied to the way he performs; if he performs better he would be rewarded accordingly (performance based pay) and on the other hand, non performance based pay; where, employee’s performance is not tied to getting rewards, rather the employee is paid or rewarded even if its performance is not up to the mark for example fixed pay and salaries (Taylor, 2005).

The relative importance of various factors used to measure the performance of employees should be related to how well each measure informs the principal about the employee`s actual performance (Lambert and Larcker, 1987; Banker and Datar, 2013). For decade`s employees measure have been used as primary indicators of managerial performance with prior research documenting a significant relation between employees based performance and financial compensation (Antic and Smith, 1986, Ittner, et at., 2013). Moreover, both the annual cash bonus and the sum of the cash bonus plus stock based compensation have been linked to employees based performance as well as numerous other attributes of the firm’s governance structure (Core, et al, 2011).

Dems (2010), indicates that the relationship between Motivation and employee performance is to the effect that when employees are properly motivated, it creates delight in their day to day work. Various studies and research have also proven that delighted employees give out their best in the workplace. However, many employers and managers do not value the impact of motivation on employee performance. As such, in trying to increase performance and thus productivity, they ignore motivation and resort to other factors such as employee competencies, process efficiency and effectiveness, technology deployment, innovation, organizational learning, and others.

2.5Conclusion

It can be seen that employee motivation relates to the organizational productivity of companies in many industries. The main reason that companies should pay a lot of attention on employee motivation is because it is one of the main factors to influence workers to carry out with their best effort and this will in turn increase the level of organizational outcome. However, motivating workers to work as a team and with their best effort is not an easy task. For companies to motivate workers effectively, managers must find out what are the factors that can be used as the motivator. Other factors like leadership personality and staff empowerment should also be taken into account as it may de-motivate employees.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1 Research design

The study used both qualitative and quantitative research designs.  Research design is defined as “a blueprint for conducting a study with maximum control over factors that may interfere with the validity of the findings”, (Burns and Grove (2003). The researcher used the above methods because many aspects was covered in the study topic specifically Bukoyo Secondary School Iganga District.

According to Holloway and Wheeler (2002) qualitative research is defined as “a form of social enquiry that focuses on the way people interpret and make sense of their experience and the world in which they live”. Researchers use the qualitative approach to explore the behavior, perspectives, experiences and feelings of people and emphasize the understanding of these elements, (Kothari, 2004).Quantitative research is a formal, objective, systematic process in which numerical data are used to obtain information about the world, (Burns & Grove 2005).Quantitative research method will be used because it is easy to use in data analysis.

3.2 Area of the study

The study was carried out at in Bukoyo Secondary School Iganga District.

3.3 Study population

Sekaran (2003) defines a population as the entire group of people, events or things that a researcher wishes to investigate. Mugenda and Mugenda (2003), argue that it is impossible to study the whole targeted population and therefore the researcher shall take a sample of the population. A sample is a subset of the population that comprises members selected from the population, the study targeted the business people in Bukoyo Secondary School Iganga District.

3.4 Sampling size and sampling procedure

According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected. The sample comprised of 30 respondents that was selected among the different respondents in Bukoyo Secondary School Iganga District.

3.5 Data type and Sources

Source of data was from both primary and secondary sources.

3.5.1 Primary data

According to (Christina Hughes, 2006), this is data used in research originally obtained through efforts of researcher through surveys, interviews, and direct observation. Primary data is more costly to obtain than secondary data, which is obtained through published sources,, but it is also more current and more relevant to research project.

Primary data was obtained from the questionnaires administered on the target respondents to gain opinions and impact of monetary motivation on employee performance a case study of Bukoyo Secondary School Iganga District.

3.5.2 Secondary sources

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This comprised of literature related to impact of monetary motivation on employee performance a case study of Bukoyo Secondary School Iganga District.

Secondary data was sourced because it yields more accurate information than obtained through primary data, and it is also cheaper.

3.6 Data Collection methods and procedures

The major instruments for data collection were questionnaires and interview guide. Surveys webe just one part of a complete data collection and evaluation strategy. The major method of data collection for the study were the survey, which will be done using selected instruments like questionnaires. The questionnaire provided respondents with ample time to comprehend the questions raised and hence, they were able to answer factually.

3.6.1 Questionnaires

The Questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents, (Bush, et al, 2010). The researcher administered the questionnaires to respondents, which were designed basing on study objectives and questions. Respondents read and wrote the questionnaires themselves. The questionnaires were considered convenient because they will be administered to the literate and its anonymous nature will fetch unhindered responses.

3.6.2 Interviews

An interview is a conversation where questions are asked and answers are given. In common parlance, the word interview refers to a one-on-one conversation with one person acting in the role of the interviewer and the other in the role of the interviewee, (Amin, 2003).The interview guide were structured. The interviews will be held with some of the members expecially the administrator of Bukoyo Secondary School Iganga District.

This was used since it’s the best tool for getting first-hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews will be used to get maximum information from the different respondents to participate in the research.

3.7 Data processing and analysis

The raw data was coded, edited, and arranged ready for analyzing only completed raw data was be analyzed using statistical tables and graphs.

3.8 Limitations of the study

The researcher may face the following challenges in the course of the study;

The researcher may not get enough time to interview all the respondents; however this problem will be solved by allocating/ budgeting for the time appropriately.

The researcher may also face a challenge of bad weather condition too much rain, muddy areas; this will be an obstacle to the efficiency of data collection which hamper with data quality.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

• Introduction

This chapter covers data presentation, analysis and interpretation of findings as revealed from the field study. The findings are presented according to the objectives that guided this study.

4.1       Respondents personal data

This sub section presents the study findings in relation to qualification, organization position, department and duration of service in the organization.

4.1.1Gender

Table 2. Showing Gender of the respondents

From the findings it was indicated that Bukoyo Secondary School employees, 40% of the respondents are female while 60% of the respondents are male. This therefore indicated that most information was gathered from male respondents.

The pie chart showing the gender of respondents

Figure 4.1 showing the gender of respondents at Bukoyo  secondary school

The pie chart above shows that majority of the respondents are male at Bukoyo  secondary school it also shows that the male gender dominates the respondents group at Bukoyo  secondary school

This also shows that the respondents are mainly male and it also shows that the male gender dominates the respondent’s percentage at Bukoyo  secondary school

4.1.2    Age group

Table 3: Showing different age groups of the respondents

            Source: Primary data

From the findings, 23% of the respondents were aged between 18-29, 33% of the respondents were between 30-40 , 27% of the respondents were  between  the age bracket of 41-50 while  17% of  the respondents were between the age bracket of 51-60 . This therefore indicated that data was gathered from respondents who are in an overwhelming stage with bright ideas in relation to the present environment.

The a graph showing different age groups of the respondents

The graph shows that majority of the respondents are  at the age of 30-40 while the second largest majority of the respondents are at the ages of 41-50 while the percentage of the respondents at the ages of 51-60 is the lowest

This graph also shows that the majorities of the respondents are mature and were therefore able to give correct information regarding the subject context.

 4.1.3   Period worked with Bukoyo Secondary School

Table 4: Showing the period for which employs have worked with Bukoyo Secondary School

Source: Primary data

The findings revealed that 40% of the respondent had worked for Bukoyo Secondary School for a period of 1-3 years, 13% of the respondents worked with the organization between 1-3 years, 27% of the respondents worked with the organization between 4-5years while 20% of the respondents worked with Bukoyo Secondary School above 5years this therefore indicated that information was gathered from experienced respondents.

The pie chart showing the period the respondents have worked at Bukoyo  secondary school:

From the pie chart above it can be seen that the majority of the respondents have spent around 5 years and above at Bukoyo secondary school this shows that majority of the respondents are well vast with the topic under study it also shows that they were in position to give accurate information regarding the study and they were also in position to answer the questions with excellent maturity.

4.1.4    Levels of education

Table 5:  Showing the different levels of education in Bukoyo Secondary School

From the findings, it was revealed that the majority 7% of the respondents had Diploma, 13% of the respondents had Masters, and 47% of the respondents were degree holders while 33% of the respondents had PHD at Bukoyo Secondary School. This therefore indicates that most respondents had acquired some knowledge and they were capable of giving relevant information.

The bar graph showing the education level of respondents at Bukoyo  secondary school

        Source: primary data

The bar graph above shows that majority of the respondents are degree holders, the others are diploma holders and the lowest number of people in masters. This therefore shows that Bukoyo secondary school has highly well educated class of employees and therefore the filling the questionnaire was a not a problem to this respondents. It also shows that the respondents were well vast with the questionnaire so filling in the questionnaire was not a problem to them.

4.1.5    Findings on the type of employment contract with Bukoyo Secondary School

Table 6: Response on the type of employment contract with Bukoyo Secondary School

            Source: Primary data

From the findings, 23% of the respondents were are on permanent basis, 33% of the respondents  are on  contractual  basis  , 27% of the respondents  are on temporary basis  while  17% of  the respondents  are casual workers. This therefore indicated that data was gathered from respondents who are on a permanent basis with bright ideas in relation to casual workers.

4.1.10Findings on the influence of salaries on employee performance

Table 11: Response on the different forms of salaries

Source: Primary data

The findings revealed that 40% of the respondents  indicated  that Bukoyo Secondary School offers   Variable pay  as compensation form , 33% of the respondents  indicated  that Bukoyo Secondary School  offers   Stock options  as compensation form, 20% of the respondents indicated  that Bukoyo Secondary School offers   bonuses   as compensation form while 7% of the respondents indicated  that Bukoyo Secondary School offers   basic  pay  as compensation form. This therefore indicates  that Bukoyo Secondary School  uses  different  compensation   forms  and  others  include  Profit sharing, benefits, salaries and wages, recognition   and  gain  sharing.

4.2  Findings on the different strategies used in the organization

Table 12: Response on the different motivation forms

Source: Primary data

The findings revealed that 40% of the respondents  indicated  that Bukoyo Secondary School offers   Variable pay  as compensation form , 33% of the respondents  indicated  that Bukoyo Secondary School  offers   Stock options  as compensation form, 20% of the respondents indicated  that Bukoyo Secondary School offers   bonuses   as compensation form while 7% of the respondents indicated  that Bukoyo Secondary School offers   basic  pay  as compensation form. This therefore indicates  that Bukoyo Secondary School  uses  different  compensation   forms  and  others  include  Profit sharing, benefits, salaries and wages, recognition   and  gain  sharing.

Table 13: Responses on whether recognition in the organization changes employees’ behavior

Source: Primary Data

From Table 13 above , findings  indicated that, 30% of the respondents  strongly agreed, 27% of the respondents agreed  , 10% of the respondents were Uncertain, 17% of  the respondents strongly disagreed  and 17%  of the respondents disagreed. The researcher found out in agreement with Armstrong & Murlis (1994 ) and Flannery et al, (1996) ,that appreciation can be achieved in various ways such as naming the employees who have done well in the school’s newsletter, awarding employees with cash bonuses, or allowing  employees to go on vacation. They further maintain that the recognition programs does not change employees’ behavior, or encourage an organization’s nonperformers to work harder. The recognition program on the other hand recognizes outstanding behavior by communicating to employees the value placed on that behavior.

Table 14: Responses on whether bonuses are a perfectly legitimate means of rewarding outstanding performance

Source: Primary Data

From Table 14 above , findings  indicated that, 23% of the respondents  strongly agreed, 17% of the respondents agreed  , 27% of the respondents were Uncertain, 20% of  the respondents strongly disagreed  and 13%  of the respondents disagreed. The researcher found out in agreement with Marler (2000),, that when your employees function as a team, you ought to think like a coach; reward the whole group for a job well done. He says this will boost morale both personally and collectively. Employee incentive programs such as small bonuses serve to better the morale of an individual employee and that of a group as a whole by making them more satisfied. This is in agreement with (Likert, 2004), study which concluded that since everybody wants to feel appreciated and special for the work done, they can therefore be motivated by appreciating them and making them feel special.

Table 15: Responses on whether Bukoyo Secondary School pays workers according to the amount of work done

Source: Primary Data

From Table 15, findings  indicated that, 23% of the respondents  strongly agreed, 30% of the respondents agreed  , 13% of the respondents were Uncertain, 17% of  the respondents strongly disagreed  and 17%  of the respondents disagreed. The researcher found out that Bukoyo Secondary School uses performance related pay which is given to those employees who meet certain targets. The targets are often evaluated and reviewed in regular appraisals with managers therefore Doellgast (2006), discourages the use of this practice of motivation. He asserts that it can be very difficult to measure employee performance more especially those in the service industry and that the practice does

Table 16: Responses on whether Bukoyo Secondary School usually provides training to most of the employees

Source: Primary Data

From Table 16 above , findings  indicated that, 27% of the respondents  strongly agreed, 40% of the respondents agreed  , 20% of the respondents were Uncertain, 10% of  the respondents strongly disagreed  and 3%  of the respondents disagreed.  The researcher found out that Hammer (2000), that individuals or employees  will be motivated at Bukoyo Secondary School to do something if they have the mental ability and skills to accomplish it. He writes that when employees are trained, they get the knowledge of hoe to deconstruct tasks and challenges and thereby feel less intimidated by their jobs/tasks.

Table 17: Responses on whether employee stock-option systems give employees the right to buy a specified number of a school’s shares

Source: Primary Data

From Table 17 above, findings indicated that, 17% of the respondents agreed, 27% of the respondents were Uncertain, 20% of the respondents strongly disagreed and 13% of the respondents disagreed. The researcher found out that in agreement with  Jones(2001), that previously the territory of upper management and large companies, stock options have become an increasingly popular method in recent years of rewarding middle management and other employees in both mature companies and start-ups, employee stock-option programs give employees the right to buy a specified number of a school’s shares at a fixed price for a specified period of time (usually around ten years) therefore they are generally authorized by a school’s board of directors and approved by its shareholders. The number of options a school can award to employees is usually equal to a certain percentage of the school’s shares outstanding.

Table 18: Responses on whether salaries are usually paid to employees at work

Source: Primary Data

From Table 18, findings  indicated that, 50% of the respondents  strongly agreed, 20% of the respondents agreed  , 10% of the respondents were Uncertain, 13% of  the respondents strongly disagreed  and 7%  of the respondents disagreed.  The researcher found out in agreement with Lindner (1995), that though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month.

4.3       Findings on the impact of allowance on employee performance

Table 19:  Response on impact of allowance on employee performance

Source:  Primary data

From the table 19  above, 40% of the respondents  agreed, 43% strongly agreed while 4% of the respondents disagreed and 13% were uncertain , this  therefore  implies  in agreement  with Blanchard (2003) ,  that  employees are responsible for implementing the activities and behaviors necessary for an organization to function, and are to link such attitudes to organizational performance. The results of these efforts have often  been equivalent  both in terms of  the nature of the incentives and whether the incentives are direct or indirect but focusing on increasing performance of employees.

Table 20:  Response on whether goal clarity among the employees helps to improve their performance

Source:  Primary data

From the Table20 above, 40% of the respondents agreed, 43% strongly agreed while 4% of the respondents disagreed and 13% were uncertain, this therefore implies in agreement with Wilmot (2007) that people must have in mind a clear picture of any end or goal they are to achieve. If this picture does not exist, they cannot tell if they are making progress or when they have completed the task or assignment, let alone if it has been completed properly. Knight (2008), agrees and adds that keeping the end in view has been sage advice for almost two thousand years. The time a manager spends in developing, communicating and clarifying the goals or ends to be achieved is time well spent.

Table 21:  Response on whether theability, training and experience improve an individual’s capability to perform

Source:  Primary data

From the Table 21 above, 40% of the respondents agreed, 43% strongly agreed while 4% of the respondents disagreed and 13% were uncertain, this therefore implies in agreement with Scott (2000), defined ability as the capacity to learn and perform the tasks required.  He revealed that a good mixture of ability, training and experience is the root cause best performances. He asserts that best performing employees at least have two of the three factors. Cole (1997), suggests that it’s important to recognize the training fact since sometimes trained employees are asked to meet needs which ought to be met or to be dealt with in some other way that is replacing machinery therefore the main purpose of training in an organization is to equip the employees within skills to enable them deliver well their jobs and this keeps employees updated in the modern way of doing things

Table 22:  Response on whether there are prevailing sets of attitudes about the job and work environment in Bukoyo Secondary School

Source:  Primary data

From the table 22 above, 53% of the respondents strongly agreed, 25% were uncertain and 22% of the respondents disagreed. Findings indicated that there are prevailing sets of attitudes about the job and work environment in Bukoyo Secondary School. The researcher found out that both cognitive and overt skills (psychomotor skills) collectively produce a person’s expertise or know-how therefore Training and Education is  seen as the process utilized to induce or change in human behavior.

Table 23:  Response on whether feedback is key in the improvement of an individual’s performance

Source:  Primary data

From the table 23 above, 23% of the respondents strongly agreed, 50% of the respondents agreed, 17% were uncertain and 10% of the respondents disagreed. Findings indicated that the working conditions and environment produce a climate commensurate with the work being done thus this was in agreement with Gerhart (2004), that without information about actual conditions in relation to intended goals or results, no one can perform to standard. Such information is known as feedback. It informs progress, enables corrections and, eventually, signals attainment of the objective. For most hard tasks (that is, tasks involving tangible products or other immediate and readily measured effects of one’s actions), feedback is generally available without much effort on any-one’s part. We are aware of our actions and their effects. But, for soft tasks (that is, tasks where the effects of our actions are not tangible, immediate nor readily measured), the feedback loop is essentially open. This is especially true when the main effects of a person’s actions are the reactions of other people. Therefore, lack of good feedback leads to lack of correction and hence poor performance.

Table 24:  Response on how the introduction of new technology in different organizations has affected employee performance both positively negatively

Source:  Primary data

From the table 24 above, 57% of the respondents strongly agreed, 27% were uncertain and 16% of the respondents disagreed. The researcher found out that the introduction of new technology in different organizations has affected employee performance both positively negatively whereby  it requires training workers which becomes costly and on the other hand such improves worker’s efficiency and organizational development therefore  that introduction of new technology into the market has greatly affected the performance of employees in organizations because employees tend to relax and only monitor the machines, this has increased the rate at which they relax in so doing employees cannot use their skills to achieve what they can hence decreasing their level of performance.

Table 25:  Response on whether the attitude and behaviors are one of the factors affecting employee performance in Bukoyo Secondary School

Source:  Primary data

From the Table 25 above, 57% of the respondents strongly agreed, 26% were uncertain and 17% of the respondents disagreed. Findings indicated that most of the respondents agreed that  attitude and behaviors are one of the factors affecting employee performance in Bukoyo Secondary School. The researcher found out that employee’s performance is affected by how one thinks about their job and the work they perform. Is it an opportunity to gain satisfaction and reward or is it resented thus attitudes and behaviors are the most difficult thing to change and takes the longest period of time.

4.4       Findings on the effects of employee recognition on employee performance

Table 26: Responses on whether motivational strategies have an impact on employee      performance

Source: Primary Data

From Table 26  above , findings  indicated that, 27% of the respondents  strongly agreed, 40% of the respondents agreed  , 20% of the respondents were Uncertain, 10% of  the respondents strongly disagreed  and 3%  of the respondents disagreed.  The researcher found in agreement with Sanderson (2003), that empowerment creates motivation and energy in workforce to do their work efficiently and effectively. Kuo et al. (2010),also contends  recommended that together the job characteristics of career revamp and employee are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation.

Table 27: Responses on whether there is a strong relationship between motivation and employee performance

Source: Primary Data

From Table 27, findings indicated that, 17% of the respondents agreed, 27% of the respondents were Uncertain, 20% of the respondents strongly disagreed and 13% of the respondents disagreed. The researcher found out that employee motivation relates to the organizational productivity of companies in many industries. The main reason that companies should pay a lot of attention on employee motivation is because it is one of the main factors to influence workers to carry out with their best effort and this will in turn increase the level of organizational outcome. However, motivating workers to work as a team and with their best effort is not an easy task. For companies to motivate workers effectively, managers must find out what are the factors that can be used as the motivator. Other factors like leadership personality and staff empowerment should also be taken into account as it may de-motivate employees.

Table 28: Responses on whether employees who receive compensation have a higher level of work

Source: Primary Data

From Table 28 above, findings  indicated that, 50% of the respondents  strongly agreed, 20% of the respondents agreed  , 10% of the respondents were Uncertain, 13% of  the respondents strongly disagreed  and 7%  of the respondents disagreed.  The researcher found out in agreement with Taylor (2005), that compensation is one of the primary reasons for employees to seek employment. They are rewarded for their services and efforts that they exert for their organizations. They can be compensated in many ways for example salaries, holidays, bonuses etc. There are two basic compensation models; performance based pay and components based pay. In the former paradigm, employee’s compensation is either tied to the way he performs; if he performs better he would be rewarded accordingly (performance based pay) and on the other hand, non performance based pay; where, employee’s performance is not tied to getting rewards, rather the employee is paid or rewarded even if its performance is not up to the mark for example fixed pay and salaries.

Table 29: Responses on whether most employees respond to increases in pay and benefits with a positive and more productive attitude

Source: Primary Data

From Table 29 above, findings  indicated that, 23% of the respondents  strongly agreed, 30% of the respondents agreed  , 13% of the respondents were Uncertain, 17% of  the respondents strongly disagreed  and 17%  of the respondents disagreed. The researcher found out in agreement with Steers et al (2012) ,thatthe impact of compensation and benefits on employee performance and organizational effectiveness depends on the existing compensation and performance management programs at an individual school. Typically, most employees respond to increases in pay and benefits with a positive and more productive attitude. However, the opposite is true as well. Sometimes, employees only notice rewards of a salary increase the day the increase is communicated to them, and the day they receive the first paycheck that includes the salary increase.

Table 30: Responses on whether the effects of motivation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment

Source: Primary Data

From Table 30 above, findings  indicated that, 23% of the respondents  strongly agreed, 30% of the respondents agreed  , 13% of the respondents were Uncertain, 17% of  the respondents strongly disagreed  and 17%  of the respondents disagreed. The researcher found out in agreement with MacDonald and Gabriel (2013), thatin the long run, the effects of compensation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment. When employees begin to feel they are an indispensable part of the organization, they often become dissatisfied with their compensation and benefits. Finally, when employees feel they are a superior part of an organization, they typically believe that the organization owes them much more than what they are already receiving. At this point, compensation is simply the glue which holds many dissatisfied employees in place. Furthermore, it does not mean that there is a positive correlation between better compensation and better performance.

Table 31: Responses on whether motivation is one of many human resource tools that organizations use to manage their employees

Source: Primary Data

From Table 31 above, findings  indicated that, 50% of the respondents  strongly agreed, 20% of the respondents agreed  , 10% of the respondents were Uncertain, 13% of  the respondents strongly disagreed  and 7%  of the respondents disagreed.  The researcher found out in agreement with Posti (2005), that people need motivation just as pieces of equipment need fuel and operators. This is highly demanded to ensure that they are always at their optimum working condition. In turn, this will absolutely lead to optimum productivity. People are one of the most important assets in business. They have unlimited potential to contribute in the achievement of objectives. Their aggregate productivity propels the operations of the school. It dictates the overall performance, which creates an attractive corporate culture.

Table 32: Responses on whether there is a high degree of correlation in the total annual inceptive pay amongst the top executives in each firm

Source: Primary Data

From Table 32 above , findings  indicated that, 27% of the respondents  strongly agreed, 40% of the respondents agreed  , 20% of the respondents were Uncertain, 10% of  the respondents strongly disagreed  and 3%  of the respondents disagreed.  The researcher found in agreement with Sanderson (2003), that empowerment creates motivation and energy in workforce to do their work efficiently and effectively. Kuo et al. (2010),also contends  recommended that together the job characteristics of career revamp and employee are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION OF THE STUDY

5.0        Introduction

This chapter presents the summary, conclusion and recommendations basing on the findings from literature reviewed.

• Summary of findings

5.1.1    Findings on the influence of salaries on employee performance at Bukoyo Secondary School

Findings revealed that Bukoyo Secondary School offers bonuses   as compensation form while 7% of the respondents indicated that Bukoyo Secondary School offers   basic pay as compensation form. This therefore indicates  that Bukoyo Secondary School  uses  different  compensation   forms  and  others  include  Profit sharing, benefits, salaries and wages, recognition   and  gain  sharing this monetary ways of motivating employees uis also in line with Lindner (1995) who notes that, though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month.

Findings revealed that appreciation can be achieved in various ways such as naming the employees who have done well in the school’s newsletter, awarding employees with cash bonuses, or allowing employees to go on vacation. They further maintain that the recognition programs does not change employees’ behavior, or encourage an organization’s nonperformers to work harder. The recognition program on the other hand recognizes outstanding behavior by communicating to employees the value placed on that behavior this view is also shared by Chien-Chung (2003), who noted that piece rate is the paying of a worker per item produced in a certain period of time. Chien-Chung (2003), asserts that this increases speed of work and therefore productivity.

Findings revealed that employee incentive programs such as small bonuses serve to better the morale of an individual employee and that of a group as a whole by making them more satisfied, this is also in line with Doellgast (2006), who asserts that  advanced that fringe benefits are often known as “perks” and are items an employee receives in addition to their normal wage and salary. These include school cars, health insurance, free meals and education. He asserts that these encourage loyalty to the school such employees may stay longer with the school.

Findings revealed that though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month is also in line with, Doellgast (2006), who asserts rthat monetary methods of motivation have got little benefits to the employees though its still wiudely used.

The researcher found out that the motivational strategiesalso affect the planning, staffing, and employee development concerns of human resources management professionals. Because compensation represents a significant organizational cost, it is a major consideration in human resources planning. For example, an organization may find it more cost-effective to maintain an employee development strategy than to rely on external recruiting for positions in the organization.

5.1.2    Findings on the impact of allowance on employee performance

Findings revealed that employees are responsible for implementing the activities and behaviors necessary for an organization to function, and are to link such attitudes to organizational performance. The results of these efforts have often been equivalent  both in terms of  the nature of the incentives and whether the incentives are direct or indirect but focusing on increasing performance of employees.

Findings revealed that without information about actual conditions in relation to intended goals or results, no one can perform to standard. Such information is known as feedback. It informs progress, enables corrections and, eventually, signals attainment of the objective. For most hard tasks (that is, tasks involving tangible products or other immediate and readily measured effects of one’s actions), feedback is generally available without much effort on any-one’s part. We are aware of our actions and their effects. But, for soft tasks (that is, tasks where the effects of our actions are not tangible, immediate nor readily measured), the feedback loop is essentially open. This is especially true when the main effects of a person’s actions are the reactions of other people. Therefore, lack of good feedback leads to lack of correction and hence poor performance.

Findings revealed that the introduction of new technology in different organizations has affected employee performance both positively negatively whereby  it requires training workers which becomes costly and on the other hand such improves worker’s efficiency and organizational development therefore  that introduction of new technology into the market has greatly affected the performance of employees in organizations because employees tend to relax and only monitor the machines, this has increased the rate at which they relax in so doing employees cannot use their skills to achieve what they can hence decreasing their level of performance.

Findings revealed that attitude and behaviors are one of the factors affecting employee performance in Bukoyo Secondary School. The researcher found out that employee’s performance is affected by how one thinks about their job and the work they perform. Is it an opportunity to gain satisfaction and reward or is it resented thus attitudes and behaviors are the most difficult thing to change and takes the longest period of time.

5.1.3    Findings on the effects of employee recognition on employee performance

Findings revealed that empowerment creates motivation and energy in workforce to do their work efficiently and effectively.

Findings revealed that employee motivation relates to the organizational productivity of companies in many industries. The main reason that companies should pay a lot of attention on employee motivation is because it is one of the main factors to influence workers to carry out with their best effort and this will in turn increase the level of organizational outcome. However, motivating workers to work as a team and with their best effort is not an easy task. For companies to motivate workers effectively, managers must find out what are the factors that can be used as the motivator. Other factors like leadership personality and staff empowerment should also be taken into account as it may de-motivate employees.

Findings revealed that compensation is one of the primary reasons for employees to seek employment. They are rewarded for their services and efforts that they exert for their organizations. They can be compensated in many ways for example salaries, holidays, bonuses etc. There are two basic compensation models; performance based pay and components based pay. In the former paradigm, employee’s compensation is either tied to the way he performs; if he performs better he would be rewarded accordingly (performance based pay) and on the other hand, non performance based pay; where, employee’s performance is not tied to getting rewards, rather the employee is paid or rewarded even if its performance is not up to the mark for example fixed pay and salaries.

Findings revealed that people need motivation just as pieces of equipment need fuel and operators. This is highly demanded to ensure that they are always at their optimum working condition. In turn, this will absolutely lead to optimum productivity. People are one of the most important assets in business. They have unlimited potential to contribute in the achievement of objectives. Their aggregate productivity propels the operations of the school. It dictates the overall performance, which creates an attractive corporate culture.

The researcher found out that the impact of motivation and benefits on employee performance and organizational effectiveness depends on the existing compensation and performance management programs at an individual school. Typically, most employees respond to increases in pay and benefits with a positive and more productive attitude. However, the opposite is true as well. Sometimes, employees only notice rewards of a salary increase the day the increase is communicated to them, and the day they receive the first paycheck that includes the salary increase.

Findings indicated that motivation has to be executed correctly in order to have a positive effect on employee performance, encourage growth within the worker and the organization itself. It is important that both employers and employees understand the effect of compensation on staff performance as an integral part of human resource development, the happy human resource being one of the key inputs that determine business performance and its long term success.

5.2       Conclusion

Salary increases are granted to eligible employees in career positions based upon their job performance.  Merit eligibility varies depending upon the appropriate staff policy or collective bargaining agreement but is typically restricted to career, non-probationary employees.  The amount of the increase depends upon the individual’s performance in relation to current pay and assigned responsibilities as well as performance relative to other members of the review unit, and availability of funds.

The impact of motivation and benefits on employee performance and organizational effectiveness depends on the existing motivation and performance management programs at an individual school. Typically, most employees respond to increases in pay and benefits with a positive and more productive attitude. However, the opposite is true as well. Sometimes, employees only notice rewards of a salary increase the day the increase is communicated to them, and the day they receive the first paycheck that includes the salary increase.

With a highly competitive employment market, employers need to offer their employees a compensation package that would enable them attract, retain and motivate employees.  This exploratory study has shown that compensation has a direct influence on employee productivity. However, this can be achieved if there is transparency in the reward system and if the rewards or compensation meets the aspirations of the beneficiaries. Hopefully,  the results of this study will  enhance the understanding of management on issues bordering on the perception of employees  about compensation and productivity and help managers in developing policies related to these  issues.

• Managerial and Policy Recommendations

The management of Bukoyo Secondary School should do regular planning and evaluating of employee compensation and performance appraisal systems. Because compensation is visible and important to employees, it is critical to consistently communicate a clear message regarding how pay decisions are made. In short, a solid pay-for-performance strategy requires that employee pay matches the organization’s message

The management of Bukoyo Secondary School must obtain buy in from union leadership early in the negotiation process to be successful in changing the way they pay their employees.

The management of Bukoyo Secondary School should not wait for dire circumstances, such as a pay inequity lawsuit, to write down or update their employee compensation policy. All organization leaders should create a written policy document or refresh their existing one for legal protection, and as a guideline or framework for the school’s compensation program.

With a highly competitive employment market, employers need to offer their employees a compensation package that would enable them attract, retain and motivate employees.  This exploratory study has shown that compensation has a direct influence on employee productivity

The management of Bukoyo Secondary School should try to maintain a fairly direct linkage between the performance management and compensation programs. A high percentage of organizations pay for achievement against objectives in the base salary program versus a bonus/incentive program, and there is a relatively small percentage of organizations paying in base salary for competencies or skill acquisition, which are strong indicators of long-term performance.

The effectiveness of motivation programs is ultimately based on how those programs contribute to the effectiveness of the organization. Implementation, therefore, seems to be where organizations report the need to focus in order to improve overall motivation program effectiveness.

• Areas of further research

1. The impact of compensation on consumer buying behavior in organization
2. The effect of benefits on organizational performance

• The impact of reward management systems on employee in organization