THE INFLUENCE OF STAFF MOTIVATION ON EMPLOYEE PERFORMANCE IN MICROFINANCE INSTITUTIONS:

A CASE STUDY OF HOFOKAM- HOIMA BRANCH

LIST OF ACRONYMS

EPA                             Employee Performance Appraisal

ERM                           Employee Relationship Marketing

ESOPs;                        Employee Stock Ownership Plans

FFIs:                            Formal Financial Institutions

HOFOKAM                Hoima, Fortportal and Kasese Microfinance Company

HRM:                          Human Resource Management

MFIs                           Microfinance Institutions

NGOs:                         Non- Governmental Organizations

NSSF:                         National Social Security Fund

SACCOs:                    Savings and Credit Cooperatives

SHGs                           Self- Help Groups

SIS                              Staff Incentive Schemes

ABSTRACT

The main purpose of the study was to examine the influence of staff motivation on employee performance at HOFOKAM. The specific objectives were; to establish methods used to motivate employees in HOFOKAAM, to analyse the effect of staff motivation on employee performance at HOFOKAM and to examine other factors influencing performance of employees in HOFOKAM.

A cross- sectional survey research design, combined with quantitative and qualitative research methods were used in the study. The survey sample consisted of 40 respondents selected from staff, clients and management of HOFOKAM. These were selected using scientific and non- scientific techniques. Primary data was collected using questionnaires and interviews. Tables and percentages contributions aided in the data presentation using statistical packages like Microsoft excel.

The study established the methods used by HOFOKAM to motivate employees which were; staff bonus schemes, salaries, profit sharing plans, gain sharing plans, delayed benefits, merit pay plans symbolic rewards, non- monetary allowances, staff training and development and the piece rate system of payment. The influence of motivation on employee performance included staff efficiency and effectiveness, increased work effort, improved customer service, increased staff loyalty, employee recruitment, management empowerment, controlling fraud risk, performance appraisal, employee training, internal employee relations and savings growth among others. The other key determinants of employee performance were organisational mission, performance goals and targets for employees, performance planning and management, performance appraisal, employee weaknesses and strengths, technology, employee training and skill development, attitudes and character, management, working conditions, career level, team work and relation skills and experience and demographic features.

The study forwarded recommendations for the employees and management of organizations, the government and other policy makers to take steps to ensure effectiveness of employee motivation and performance. The study also identified key areas of interest related to the study hence them but not directly addressed in the current study such that further studies can be conducted

CHAPTER ONE

INTRODUCTION

1.0 Introduction

I he purpose of this study was to examine the influence of staff motivation on employee performance in Microfinance institutions, referring to HOFOKAM-Hoima Branch. This chapter presents the background, problem statement, study objectives, research questions, study scope and significance.

1.1 Background to the Study

Microiinance is the provision of a broad range of financial services which include micro-credit, savings, insurance, remittances or transfers, leasing, pensions, micro-insurance; and non-financial services like training on business development, literacy and health to low income people sustainably and affordably. They are offered to the poor who can’t access to Formal Financial Institutions (FFIs) to build wealth: smooth consumption and reduce risk, (Ismawan. 2007). MFIs include a broad range of institutions that offer financial services to low-income clients. MFIs include Savings and Credit Cooperatives (SACCOs). Non-Governmental Organizations (NGOs), money lenders, rural farmers’ schemes.Self-Help Groups (SIIGs).village banks, credit unions, rural banks, savings and postal financial institutions, and a number of commercial banks, (Gramming & Holtmann, 2006).

According to Keijzers (2010), motivation is derived from the word “motivate”, meaning to move, push or persuade to act for satisfying a need. Broadly, motivation is a set of processes concerned with a kind of force that energizes behavior and directs it towards achieving some specific goals. It includes psychological  processes that cause stimulation, persistence of voluntary goal directed actions, direction of destination, and determination. Motivation to work includes a set of energetic forces that originate both within and beyond an individual’s being, to initiate work-related behavior, and determine its form, direction, intensity and duration. People are motivated when they expect a course of action to lead to attainment of a goal and a valued reward that satisfies their needs.

According to Owusu (2012).motivation is “the cognitive decision making process through which goal directed behavior is initiated, energized. directed and maintained in an organization”. It has two dimensions, one being making employees work better, more efficiently and effectively from the point of view of managers, the other being enabling employees to do their jobs in the best way with enjoyment and desire from the point of view of employees. Motivation can be intrinsic or extrinsic. Ude& Coker (2012) define intrinsic motivation as self-gen crated or internal motivation. It is that sense of satisfaction and achievement one feels when he/she spends time on activities that reflect what drives them, and activities that they enjoy. It includes: being creative, solving problems, using skills and talents, completing important or challenging work, work that gives one power, authority, autonomy  makes one feel important, appreciated, accepted, or advance their careers. Saleem (2011) adds that, individuals are intrinsically motivated when they seek enjoyment, interest, satisfaction of curiosity, self-expression, or challenge in work. Intrinsic rewards are psychological or intangible like appreciation, meeting new challenges, positive and caring attitude from employer, and job rotation.

On the other hand, individuals are extrinsically motivated when they engage in the work in order to obtain some goal that is apart from the work itself. Extrinsic rewards are tangible rewards that are external to the job or task performed by the employee; like salary, incentives, bonuses, promotions, or job security. (Srivastava&Bannola. 2011). External motivators are given by others, like a salary, bonuses, incentives, security, praise, recognition, promotion or even punishment or withdrawal of privileges. Extrinsic motivators are determined at the organizational level and outside the control of individual leaders and managers. If withdrawn, motivation declines, (Prantheepkanth, 2011).

There is a strong relationship between intrinsic and extrinsic motivation. In some cases extrinsic motivators can decrease intrinsic motivation. For example, if money is administered contingently, it decreases intrinsic motivation. Extrinsic and intrinsic motivation can have a reinforcing effect: once extrinsic motivation is taken care of intrinsic motivation can lead to high levels of satisfaction and performance. Both intrinsic and extrinsic values can motivate employees to work, but they can have very different effects on employees. Not all people are equally motivated; some employees are more intrinsically and others more extrinsically motivated. (Chaudhary& Sharma, 2012).

According to Ismawan (2007).employee performance is often defined simply in output term that is needed for achievement of pre-decided goals. Performance is concerned what job is done, how it is done and what has been achieved. Performance refers to the degree of accomplishment of the task that makes an employee’s job reflects how well employee is fulfilling the requirement of the job.

Hoima. Fort Portal, and Kasese Microfinance Company (HOFOKAM) was founded in March 2003 by the Catholic Relief Services to serve the rural poor especially in Western Uganda. It is one of the fastest growing MFls in the country. It has since taken a smooth path towards growth and expansion by attracting and retaining a large and diverse base of skilled human resources. It has also introduced numerous motivation tools to boost staff performance. It suited the study to aid in assessing how its staff motivation schemes affect the level of productivity of staff and its overall performance.

1.2 Statement of the problem

Despite all efforts and progress in automation, microfinance essentially remains a people business (conducted by and among people), (he human resource function is the most important of all in MFIs just like other organizations, as employees are wholly responsible for managing other resources to meet organizational goals. The overall performance of MFIs is a function of the efforts of its employees. Currently, MFIs focus on strategic human resource management as a way of improving employee performance and to meet social and financial organizational goals. It is widely accepted that a well-motivated, committed, loyal and productive staff will help MFIs achieve both satisfactory outreach and financial performance. Properly designed motivation schemes will ensure optimal staff performance, commitment, loyalty, job satisfaction, teamwork, and innovativeness. Yet motivation schemes have been criticized for bending more towards physical and not mental outcomes; causing conflicts and disgruntlement among staff, undermining team work, and promoting inequality, let alone associated monetary costs. Given this contradiction, it was necessary to conduct a thorough analysis of the relationship between staff motivation and employee performance in MFIs.

1.3 Objectives of the Study

1.3.1 General Objective

To conduct an in-depth examination of the influence of staff motivation on employee performance in MFIs, with specific reference to HOFOKAM-Hoima branch.

1.3.2 Specific Objectives

1. To establish the methods used to motivate staff in HOFOKAM.
2. To examine the relationship between staff motivation and employee performance in HOFOKAM.

• To examine the factors influencing employee performance in HOFOKAM.

1.4 Research Questions

1. What methods are used to motivate employees in HOFOKAM?
2. What is the relationship between staff motivation and employee performance in HOFOKAM?

• What are the factors influencing employee performance in HOFOKAM?

1.5 Scope of the Study

1.5.1 Content Scope

The study analyzed the relationship between staff motivation and employee performance in MFIs. It also explored the different tools used in MFIs to motivate employees, and other determinants of employee performance in MFIs all integrated in an attempt to answer the research questions.

1.5.2 Geographical Scope

The study was conducted at HOFOKAM (Hoima District). It was chosen for the study due to its convenience and possible accessibility data. More importantly, it is a regulated MFI with sound human resource policies and procedures, including staff motivation.

1.5.3 Time Scope

Primary, data was collected from April-May 2013. Secondary data sources did cover a period of five years, from 2007-2012 to capture relevant and up to date information for the study.

1.6 Significance of the Study

The study shall enhance the researcher’s volume of knowledge and experience not only relating to the topic of study but also to the field of research in general.

To future researchers, the study will provide a body of knowledge that can help enrich their study and contextualize their findings.

The study will provide an insight to MFIs in particular and business firms in general on how to design staff motivation schemes that can contribute to employee performance and their overall financial and social performance.

To the government and other policy makers or advocacy bodies like labor unions, the study will equally expose the potential of motivation in enhancing workers’ overall performance in organization. As such, they can legislate motivation schemes for different sectors to motivate workers so as to enhance the performance of different entities- both public and private.

The study will also help employees and employers to know both positive and negative effects of motivation schemes and to develop appropriate and acceptable as performance indicators upon which motivation can be based to stimulate employee performance

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents a review of related literature through identification, selection, and extensive study of existing information from credible sources, like dissertations, theses, journals, reports and monographs, to clarify and contextualize the study. It addresses the tools of employee motivation, their effects on employee performance; and determinants of employee performance in MFIs.

2.1 The Concept of Microfinance

According to Ikeanyibe (2009), microfinance includes a range of financial products and services like deposits, loans, transfer payments, leasing, money and remittance transfers, pensions, and insurance. The services are offered to poor people who lack access to formal financial services, to build income and wealth, smooth expenditure patterns, and reduce risk. It also includes non-financial services like classes on literacy, numeracy, nutrition, health, and business development. Saleem (2011) argued that microfinance includes provision of financial services such as credit, savings, insurance and other basic financial products involving very small (micro) amounts to poor and low-income people, their households and micro enterprises, who lack access to traditional (formal) financial services.

2.2 Methods Used in Motivation of Employees in MFIs

There are many ways in which employees can be motivated. These motivation tools can be financial or non-financial, short term or long term, performance based or non-performance based, and group or individual motivations. Broadly, the tools of employee motivation include intrinsic and extrinsic motivation. AH these broad categories of motivation as discussed as follows;

2.2.1 Intrinsic Motivation of Employees in MFIs

According to Holtamnn & Wright (2006), MFIs offer promotional opportunities to motivate staff. Most people work harder if they have the prospect of moving on to a higher rank in the organization. Ikeanyibe (2009) notes that some MFIs have a policy of filling all vacant positions from within the company; they do not to hire outsiders. This is intended to give a clear signal to employees that it pays to work well since the best employees can move up through the ranks.

Effective communication is one of the new tools used to motivate employees in some organizations. 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 tasks are clearly defined and understood (Saleem, 2011).

Non-monetary allowances or employee benefits also form a key part of motivation in MFIs. This involves providing free medical cover for employees and their immediate family, sick leave, work leave, rest on public holidays, maternity and paternity leave, and passionate leave when employees lost their dear ones, (Ekka. 2010). Such privileges can induce employees to increase their productive capacity as it gives them a sense of belonging to the organization, (Mugwanga, 2011).

Staff training and development opportunities are also used to motivate MFIs. Whatever new skills staff members already bring to the job, there is always a need for considerable additional training. MFIs motivate their workers by offering special training in needed skills like loan analysis, savings mobilization, planning and control skills. (Saleem, 2011).Aubertet al (2008) add that training, though non-monetary, helps to transfer skills, socialize new staff in the organization, helps newcomers to understand and to assimilate the organization’s basic values as well as its mission. In the view of Ikeanyibe (2009). Employee training is an essential and indispensable part of HRM and HRD to prepare and develop staff to do their current jobs well. It is the acquisition of knowledge, skills and attitudes that improve performance in the current job. For MFIs, training transfers information and knowledge to staff; equips them to translate that information and knowledge into practice to enhance organization effectiveness and productivity, and quality of people management.

Employee Performance Appraisal (ERA) is also adietcrt tool used by MFIs to motivate staff. It is the process of identifying, evaluating and developing the work performance of the employee in the organization, so that organizational goals and objectives are effectively achieved while, at the same time, benefiting employees in terms of recognition, receiving feedback, and career guidance, (Ude& Coker. 2012). EPA is used for three purposes: as a basis of reward allocation like salary increments, promotion and other rewards; to point out the weaknesses of employees and will spot areas where development efforts are needed; and for selection and development. It helps management perform functions relating to selection, development, salary, promotion, penalties, lay-off and retrenchment, and strengthens the overall employee performance management, (Saleem, 2011).

2.2.2 Extrinsic Motivation of Employees in MFIs

Bonus schemes are the most common tool of motivation. Bonuses can be accrued and paid out at different intervals, like monthly, quarterly or annually. Monthly bonuses are mainly given to loan officers and vary from 10%-50% of .the total pay. The spot bonus is awarded to an employee for an achievement not measured by any regular performance standard. According to McKim (2007),bonuses are paid monthly and are determined by individual performance in areas like the number of disbursed loans, the portfolio quality and the number of active clients in the loan officers’ portfolio.

According to Wright & Holtmann (2006), MFls use profit-sharing plans to motivate staff. Here, the employees receive a certain portion of the annual (or semi-annual) profit. The profit pool allocated to the employees is then distributed equally between all staff members, or according to some form of allocation criteria like base salary/individual performance. Aubert et al (2008) note that it increases the sense of identification with the organization, and a reduction of the barriers between employees and owners. But they weaken connection between the performance of the individual and his reward.

Gain-sharing plans are another key tool of staff motivation. It is similar to profit sharing plans, but here the basis for the distribution pool is different. Here, staffs are entitled to a certain percentage of the productivity gains achieved in a given period, (Ismawan, 2007). Payout-intervals are shorter than profit-sharing plans. Employees are entitled to a bonus depending on improvements in performance and its advantage compared to profit plans is that the payouts are usually made more frequently.

In MFIs, merit pay plans are increasingly becoming a common way of rewarding employees. It does involve salary increases for employees who have produced the best performance during a certain period of time (often one year). Annual salary increases range from 0% for weaker performers and 5% for average performers to 10% for strong performers. (Mugwanga, 2011). Merit pay schemes are performance based and tenure based. Based upon scheduled performance appraisals, staff can increase their regular salary by up to two levels. The increments are determined by the employees’ individual performance which is assessed twice a year by the direct superiors, (McKim, 2007).

According to Holtmann& Wright (2002). MFIs use symbolic rewards to motivate staff. Examples include commendation letters, branded gifts, trophies, joint dinners, or trips. Chaudhary & Sharma (2012).note that, while the monetary value of this reward may not enhance staff performance, their provision can be valuable supplementary tools to support staff motivation. The rewards are of small monetary value and emphasize recognition of staff work effort.

MFIs use delayed benefits to motivate staff. As MFIs grow and mature, the average age of staff also to increases. Most MFIs only make the obligatory contributions to the national pension and social security plans. Some MFIs provide staff with an incentive to remain in the MFI, (McKim, 2007). As pension benefits rise, they can help to reduce turnover and to attract a more stable workforce. Many people might be willing to forego short-term monetary benefits.

Basic salaries are the commonest form of motivation in MFls. MFIs calibrate basic salaries in such a way that the employees can cover basic monthly needs from this source of income. If base salaries fall significantly below this level, employees will be subjected to considerable financial risk and lead to low morale and increase staff turnover. (McKim. 2007).It is the inadequacy of basic salaries in motivating staff that has paved way for the use of a mix of other incentives.

The piece rate scheme is a one where a uniform price is paid per unit of production. Employees may be compensated according to the number of pieces they produced or processed. Compensation is direct proportional to level of productivity. It is easy to calculate and employees may determine or predict their rewards in the short term and regulate their pace of work in accordance with the level of compensation they want to attain, (Pratheekanth, 2011).

2.3 Effects of Motivation on Employee Performance in MFls

An employee is any person employed for wages in any kind of work, manual or otherwise, and who gets his wages direct or indirectly from the employer, and form part of human resource function of MFIs. Human resources include knowledge, skills, creative abilities, talents, and aptitudes obtained in the population. They represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees, (Ikeanyibe, 2009).

It is widely held that motivation results in increased work effort of staff in MFIs. This is out of the fact that employees work harder and achieve greater output which can be measured by the speed of credit disbursements, number of active clients, number of new clients, portfolio size, number of groups and teller transactions. Aubert et al (2008), show that employees who are motivated achieve higher increase in work performance compared with people who are not motivated.

Motivation enhances competiveness among employees. Given its competitive structure and that of the motivation system where only high performers get incentives versus programs where everyone who increased performance receives, it encourages internal staff competition. Ikeanyibe (2009) argues that in some motivation schemes, there are a limited number of incentives, and not everyone who meets a particular performance standard will necessarily obtain the incentive.

Motivation enhances staff training and development by identifying employee’s specific needs for training and development. By identifying weaknesses that affect company performance, MFIs can design training and development programmes that permit individuals to build their strength so as to boost performance. (Grammling &Holtmann, 2006) Motivation provides training opportunities for on the -job training that teaches junior staff (he specific details of operations, creates social ties between staff members, and strengthens the institution’s corporate identity, (Pratheepkanth, 2011).

According to McKim (2007), motivation leads to excellent service delivery to customers as regular mystery shopping exercises, customer feedback surveys and supervisors’ appraisals on the customer service quality in its branches are constantly conducted. This helps to attract and retain clients upon which growth and profitability of MFIs do rest. Ikeanyibe (2009) adds that customer attraction and retention in MFIs is highly dependent on motivation. If staffs are to increase the number of savings accounts or loan portfolios of their branch, they have to deliver good customer service.

According to Nandawar et al (201 1).motivation aids in recruitment and selection of employees. The existing schemes may help in predicting the attitudes, satisfaction, and performance of applicants. MFIs operate in environments and it is difficult to find well-educated graduates, socially motivated and willing to work with the informal sector. SIS aids to attract highly skilled and efficient staff.

Motivation helps MFIs in fostering commitment and loyalty among employees. Staff members who feel like they are part of the organisation, who identify with their bank or program, will be more productive and to produce higher quality output. (Aubertet al 2008). Isamawan (2007) defines employee commitment as a “high degree of dedication to the organization, readiness to put high level of effort, similarity of objectives and values and a strong desire to be a part of the MFI”.

Staff motivation is an important tool to empower management to help performance of the individuals or employees and to reveal problems restricting employees” progress and causing inefficient work practices. Pratheepkanth (2011) argues that, in assessing an institution’s human resource, data must be available that describes the potential of all employees in terms of promotion, career development especially for the top executives. Motivation schemes provides a profile of the organization’s human resource strengths and weaknesses to support its operation or functions.

According to Grammling &Holtmann (2006), where motivation is group team based, incentives can generate better team spirit, social cohesiveness, good cooperation and team effort, loyalty and staff retention. They also ensure that staff work in a collaborative manner and do not compromise social goals for personal financial benefit. Ohaudhary& Sharma (2012) add that, rather than rewarding individual performance-which is difficult to measure and to match with results for a given period-it is more useful to appraise employees in groups and also pay incentives based on team results.

2.4 Factors Influencing Employee Performance in MFTs

Employee performance depends on the work environment and working conditions. The MFI must try to create supportive, pleasant lull working environment internally, to satisfy the staff and work with efficiency. Employees should be trained according to the present content of the environment. The facilities provided to the employees can enhance their motivation and job abilities, (Saleern, 2011). I’de& Coker (2012) add that, workplace features and good communication network have effect on worker’s welfare, health, morale, efficiency, and performance.

Employee performance depends on employee Performance Appraisal (EPA). Objectives, goals and performance standards should be fixed through mutual discussion, and communicated to employees and guided and trained on the job for better performance. It is necessary- to measure performance during (he year. (Keijzers, 2010). The supervisor should conduct EPA in mid and end of the year. Quality, quantity, cost, involvement competencies exposed, initiatives taken for problem solution and leadership quality shown in guiding or helping the others during work should be measured.

According to Srivastava&Barmola (2011).performance planning is neglected at the department and individual levels, yet it affects employee performance. The management should meet he employees at regular interval and discuss regarding their performance, difficulties faced during the work and get the other inputs. This can motivate staff to take the responsibility to meet the standards for achieving the goals. Employees should be counseled, coached and feedback given. Performance planning and review should be carried out to pin point deviations in performance, (Ikeanyibe. 2009).

Employee attitudes towards their job and character affect their performance. By increasing workers efforts the productivity can be increased significantly in long run. Human resource is the most important resource that affects productivity. But manpower without interest in work, dedication, and commitment to duty cannot give expected performance. McKim (2007) adds that, job performance depends on their competencies and motivation. The management should consider manpower as the most important resource and should be taken care of properly.

According lo Grammling &Holtmann (2006).the nature of management of MFIs affects employee productivity. Management approach affects the working of persons. Productivity can be improved through different management processes like, production planning, and control, production cost, inventory control, operation research, specialization, cost control, budgetary control, marketing research, matching demand and supply, replacement of old technology affect performance.

According to (Grammling &Holtmann 2006). the level of staff training and development affects their performance. Training is the process of imparting the knowledge and skills to the persons. It gives knowledge and skills to give confidence to the person performing the job. Pratheepkanth (2011) adds that, if the persons are not trained on the job then they do not know the basics of the jobs. Many difficulties are to be faced in understanding the doing the jobs. The employees should be trained on the job and they should be provided training for improvement of performance.

Employee performance depends on mission of the organization. It gives the clarity regarding the objectives of the organization which is very important. If it is clear in the mind of employees what for the organization is in the business and where it wants to reach in due course of time, accordingly the employees will understand and work, (I ‘de & Coker, 2012). The goals are to be finalized in a meeting of management and employees. It enhances mental preparation of employees, provides clear guidelines to them, and the sense of commitment would develop.

According to Ikeanyibe (2009).employee performance highly depends on set goals and performance standards for employees. Once the company’s mission and objectives are set then these are to be achieved. The organizational objectives would be divided in to divisional or departmental objectives. Nandawar et al (2011) add that, individual goals are decided in consultation with the employees and their acceptance is necessary because they must achieve goals they agree. Performance standards include quality and quantity, cost, responsibility, leadership quality, initiative and discipline.

Identification of strengths and weaknesses of employees can, influence future performance, in almost every organization the demographic situation of employees is changing with the time. People have different creed, region, religion, language, sex, (Owusu, 2012). The diversified workforce is now available in most of the companies with their own strengths and weaknesses. The strengths can be utilized and weaknesses can be overcome by timely remedial actions, (Mugwanga, 2011).

The technology used in MFls impacts on performance of staff. With growth of technology-based opportunities to enhance service standards and delivery processes, technology has to be an important part of any forward -thinking MFI’s strategy. MFIs should therefore constantly examine options for technology-based solutions but subject them all to rigorous cost/benefit and risk analysis. Ikeanyibe (2009) adds that, technology, innovative communication methods, e-market improvement and alternative work patterns increase employee efficiency, effectiveness, and overall performance.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the research design, study population, sample design, study procedures, data types and sources, data collection instruments, reliability and validity of instruments, research ethical considerations, data analysis and presentation, and limitations and delimitations of the study.

3.1 Research Design

A cross sectional survey research design was used to identify a proportion of respondents from whom data will be collected. It was conducted using both qualitative and quantitative methods of data collection and analysis. Quantitative methods were used to collect data on measurable variables like loan recovery rates, number of clients, and savings. The qualitative methods were used to appreciate variables that could not easily be quantified; and it did involve flexible approaches so as to evaluate data collected. This design did aid in the collection of factual and accurate data, and in the descriptive presentation and analysis of the study findings.

3.2 Area of the Study

The study was conducted at HOFOKAM-Hoima Branch as it was conveniently located. HOFOKAM has a rich mix of incentives to motivate and reward its employees to raise their performance levels.

3.3 The Study Population

This involved clients, staff, and management of HOFOKAM-Hoima. They play different roles in the inception, design, implementation, and review of employee motivation schemes in the MFI.

3.4 The Sample Size

A total of 40 respondents was drawn from the planned study population as follows;

Table 1: Sample Size Distribution

3.5 Sampling Procedures

The study did use purposive and simple random sampling techniques among the target population. For clients, simple random sampling was used to render each of them eligible for the study, Purposive sampling was used to select staff and management of HOFOKAM. These were used to save time, minimize costs, and target potential providers of useful information

3.6 Research Procedures

Before collection of data from the field, the researcher did ensure the approval of the research instruments especially the questionnaires; obtained the introductory letter from the university; and finally undertook data collection among the study population using the approved methods,

3.7 Data Collection Instruments

3.7.1 Self-Administered Questionnaires: The questionnaires did consist of open-ended and close-ended questions to be administered to target respondents to extract information. The questionnaires were distributed to those who could fill; then collected after an appropriate time when duly filled.

3.7.2 Personal Interviews: The researcher did get first-hand information by making appointments with individual respondents to answer questions related to the study topic.

3.8 Sources of Data

3.8.1 Primary Data: This data was gathered from respondents by the researcher by use of the data collection instruments -questionnaires, interviews and observation.

3.8.2 Secondary Data: The secondary data for this study was got from among others, journals, reports, previous research projects, newspapers, and text books, and most importantly, the records of the financial institutions to be surveyed.

3.9 Reliability and Validity of Research Instruments

To establish validity of the questionnaires and interview guide, pre-testing was done amongst selected respondents to eliminate ambiguities. The research instruments were also reviewed jointly by the researcher and supervisor and later administered.

3.10 Research Ethical Considerations

The researcher collected data upon seeking respondents’ consent after revealing the type of information needed and the purpose. The researcher also maintained confidentiality of respondents’ information; and reported the true findings of the study without any bias.

3.11 Data Analysis

3.11.1 Qualitative Data

Data processing involved editing raw data to detect errors and omissions, classifying data according to common features, and tabulation to summarize and organize it. Data analysis involved the qualitative approach of identifying the major themes arising respondents’ answers; assigning of codes to the themes: classification of the themes under the main theme; and integrating the responses into the report in a more descriptive and analytical manner.

3.11.2 Quantitative Data

Manual editing of questionnaires was done to eliminate errors. After coding, tabulation was done to clearly present various responses and the interpretation. Frequencies and percentages were used to portray statistics used to analyze and interpret the findings of the study. Frequency tables, graphs and charts aided in presenting the data using statistical packages like Microsoft excel.

3.12 Limitations of the Study

1. Obtaining accurate and objective information from the target respondents was problematic.
2. As such, they may have concealed vital information that could have added value to the study. The time factor was another challenge since the study required a lot of time to be conducted, yet the researcher had other key commitments especially attending lectures.

• The study did involve costs such as transport to and fro the field, communication, stationery, and printing of the research work.

3.13 Delimitations to the Study

1. The researcher provided adequate assurance to the respondents about the high degree of confidentiality with which their responses would be treated.
2. In order to overcome the time constraint, the researcher drew a clear schedule amongst the different tasks such that every task was conducted in a planned way.

• The researcher did solicit tor funds from parents and other sources; and as well sought ways to minimize the cost constraint that were anticipated to affect the study

CHAPTER FOUR

DATA PRESENTAATION, INTERPRETATION, DISCUSSION AND ANALYSIS OF RESEARCH FINDINGS

4.0 Introduction

This chapter presents the study findings in reference to the research objectives. Focus was put on presentation, analysis and discussion of findings in line with study objectives. It first presents the background features of respondents, while the other sub-sections present the study findings per study objective. The response rate was 100%, as all the 40 respondents responded positively to the study.

4.1 Background Characteristics of Respondents

4.1.1 Gender of the respondents

This involved both males and females who participated in the study. The researcher found out that 24(60%) male respondents and 16(40%) females were working with the bank which contributed the gender sample of the researcher, and this is summarized in the table and the pie chart below;

Table 2:Showing gender of respondents

Figure 1: Showing gender of respondents

Table 2  and a pie- chart (figure 1) above portrays the gender composition of 40 respondents; 24 being male and 16 female, translating into 60% and 40% respectively. Though more males than females participated, both sexes were involved, selected among clients, staff and management of HOFOKAM. This finding clearly indicates that the MFI is gender sensitive in that it employs both men and women. And, more important it is these employees who require motivation to boost their performance.

4.1.2 Age Distribution of Respondents

The researcher went ahead to find out the age bracket of the respondent and results indicated that most of the respondents  14(35%) lied in between 31-40 years with most of the managers falling in the age bracket of 31-40 as they were considered to be  experienced in managerial duties. This was grouped into four different categories for example: 18-30 years, 31-40 years, 41-50 and lastly 51 years and above and the findings are as indicated in the table 3 and figure 2 below;

Table 3: Showing age Range of Respondents

Source: Primary Data

Figure 2: Showing age of respondents

The respondents’ age groups are presented in Table 3 above and graph (figure 2): 11 (27.5%) were aged 18-30 years; 14 (35%) were aged 31 -40 years; 09 (22.5%) were aged 41-50 years; and 06 (15%). were aged above 50 years. For HOFOKAM.as required by law it can only employ persons aged 18 or more years. It is also argued that people above 50-60 years may not be productive enough in such a demanding field; so the MFI considers active age groups from 18 to 50 years for employment and service extension.

4.1.3 Level of Education of Respondents

The researcher went ahead to find out the level of education of respondents and found that majority of respondents where of secondary education 15(37.5%), therefore, educated enough to answer the questions related to the study and the rest of the findings are summarized in table 4 and figure 3 above age bracket of the respondent and results indicated that most of the respondents

Table 4: Showing level of Education of respondents

Source: Primary Data

Figure 3: Showing level of education

Table 4 and figure 3, above shows respondents” education levels 05(12.5%) were of primary level; 15 (37.5%) reached secondary level: 08 (20%) had diplomas; with 09 (22.5%) graduates; and 03 (7.5%) post graduate cases. So, HOFOKAM employs relatively qualified staff. One’s level of education greatly affects work performance and is used to determine one’s salary and other forms of motivation.

4.1.4 Marital Status of Respondents

After sampling a total of 40 respondents with the interest of knowing their marital status, results showed that 30(75%) of them were married, followed by 08 (20%) of the respondents admitted being single. The reason behind this was to find out the category of workers who were entrusted with leadership matters in the institution and it emerged that the married mostly dominated that section. This information can further be summarized as seen in the table and the pie chart below:

Table 5:  Showing marital Status of Respondents

Source: Primary Data

Figure 4: Showing the marital status of respondents

Table 5 and figure 4 above, presents respondents’ marital status; 08 (20%) were unmarried; 30 (75%), were married; 02 (5%) were widowed: and no divorcees. Thus, most respondents were married and so have (family) responsibilities. They offer their labour in an endeavour to meet their family demands. HOFOKAM as an employer has the duty to enable its employees to meet their family needs; like by paying them adequately and providing other incentives to them. Above all, marital status also affects work performance for example maternity and paternity leave for its management team and staff.

4.1.5 Designation of Respondents

The research established that different respondents were holding different designation, the positions held by respondents at HOFOKAM as shown revealed that 05 (12.5%) apiece were from management, board management, or shareholders; and 25 (62.5%) were staff who provided information for the study. The findings are as summarized in the table and figure below;

Table 6: Showing designation of Respondents

Source: Primary Data

Figure 5: Showing designation of respondents

From Table 6 and figure 5 above, the positions held by respondents at HOFOKAM as shown revealed that 05 (12.5%) apiece were from management, board management, or shareholders; and 25 (62,5%) were staff who provided information for the study. These were involved as policy makers: while staff implement policy and targeted with motivational schemes aimed at improving their performance.

4.1.6 Period at Organization

The years worked at organisation refers to the timeframe one has spent working with the HOFOKAM as its employee and results indicated that 15(37.5%) of the workers had spent 1-5 years who were the majority, 12(30%) of the respondents admitted working for less than a year 7 (17.5%)years, and only 6 (15%) had spent more than 10 years giving a total sample of 40 respondents

This was also grouped into three different categories for example: less than 1 year, 1-5 years, 6-10 years and lastly more than 10 years and above and the findings are as indicated in the table and figure below;

Table 7: Showing period at organisation

Source: Primary Data

Figure 6: Showing period spent at the organisation

Table 7 and figure 6 above indicates the respondents’ time spent at the organisation, 07 (17.5%) had spent less than a year; 15 (37.5%) had spent 1-5 years; 12 (30%) had spent 6-10 years; and 06 ( 15%) had spent over 1 0 years. Most of them had spent at least a year in the MFI. For management and staff, the period spent indicates experience and affects performance and level of motivation like salary. The lousier the period at work, the higher the level of motivation and employee performance.

4.2 Objective one: Methods of motivation in HOFOKAM

The researcher also was much interested in knowing the methods of motivation used in this institution and the results are as indicated below;

4. 2.1 Existence of Staff Motivation in HOFOKAM

Respondents were asked whether staff motivation existed in HOFOKAM and the findings indicated that 30 (75%) of respondents acknowledged that they existed while 8 (20%) of the respondents were not sure and lastly 2(5%) of them said no. The responses of the respondents can clearly be summarized as seen in the table and the graph below:

Table 8: Showing the existence of Employee Motivation in HOFOKAM

Source: Primary Data

Figure 7: Showing the existence of employee motivation

From Table 8 and figure 7 above, respondents” view of whether staff motivation existed in HOFOKAM is shown. Here, 30 (75%) acknowledged the existence of motivation; 02 (5%) disagreed: and 08 (20%) were uncertain. This rendered HOFOKAM ideal for study as it made it possible to identify the methods of motivation and how they affect the performance of employees in the organization.

4.2.2 Categories of Staff Motivation Schemes in HOFOKAM

During the research it was found that various staff motivation schemes are used by HOFOKAM which included monetary incentives, performance based incentives, individual incentives, group incentives, non- performance based incentives and non- monetary incentives and the frequencies and percentages are shown in the table and figure below;

Table 9: Showing categories of Staff Motivation Schemes in HOFOKAM

Source: Primary Data

Figure 8: Showing different types of motivational schemes used in HOFOKAM

Table 10 above and figure 8 above, portray the broad types of motivational schemes used in HOFOKAM. Here, 10 (25%) identified monetary incentives like bonuses and salaries to staff 08 (20%) noted performance based incentives: 08 (20%) identified individual incentives  05 (12.5%) noted group and non-performance based incentives, 04 (10%) noted non-monetary incentives. This demonstrates that the MFI uses a wide range of approaches and they make motivational schemes comprehensive and inclusive.

4.2.3 Frequency of Employee Motivation in HOFOKAM

The researcher went ahead to find out the rate at which employee motivation is done at HOFOKAM and it was established that they mainly use monthly basis with 16 (40) of respondents, then 13 (32.5%) of respondents were of the view that they are carried out annually. 6(15%) of respondents supported quarterly basis. In all in all it was found out that employee motivation is at least carried out more than once a year and below is the table and figure summarizing the findings.

Table 10: Frequency of Employee Motivation in HOFOKAM

Source: Primary Data

Figure 9: Showing the frequency of employee motivation in HOFOKAM

In Table 10 and the figure 9 above, the study presents findings on frequency of staff motivation at HOFOKAM. Here, 16 (40%) noted that the company motivates staff on a monthly basis depending on the monthly performance; quarterly motivation was noted by 06 (15%); 05 (12.5%) noted the use of semi-annual motivation, while 13 (32.5%) noted the use of annual-based incentives paid at the end of the year. So, the company uses a rich mix of short-term and long-term methods to motivate staff.

4.2.4 Methods of Staff Motivation in HOFOKAM

The research established that various methods are used for staff motivation in HOFOKAM  and the findings showed that basic salaries was the major method used 22(55%) of the respondents, staff bonuses was raised by 20 (50%), non- monetary allowances with 17 (42.5%) not forgetting methods like internal staff promotion, profit sharing plans, employee tournaments, gain sharing plans, staff training programs, merit pay plans for staff, symbolic rewards for staff and delayed benefits to staff among others. The findings are summarized in a table and figure below;

Table 11: Showing methods of Employee Motivation in HOFOKAM

Source: Primary Data

Figure 10: Showing the methods used in employee motivation in HOFOKAM

Table 11 and figure 10 above, shows different methods used to motivate staff at HOFOKAM. As shown, 22 (55%) cited adequate basic salaries as the commonest incentive; 20 (50%) identified staff bonuses paid out at different intervals, such as monthly, quarter, or annually especially for achieving certain targets and is normally a fraction one’s basic salary. Also, 17 (42.5%) noted non- monetary allowances like tree medical cover for employees and their immediate family; sick leave, or work leave; 15 (37.5%) noted internal staff promotions where existing staff are used to fill vacant positions from within the MFI instead of hiring outsiders; 12 (30%) noted profit sharing plans according to criteria like basic salary or individual contribution to profit; 10 (25%) cited tournaments where staff compete against each other for example in number of accounts or loan recovery: 08 (20%) apiece noted gain-sharing plans where employees are rewarded basing on productivity gains; and staff training programs in areas like loan analysis; 05 (12.5%) cited merit pay plans to staff; 03 (7.5%) noted symbolic rewards for staff like commendation letters; and 02 (5%) noted delayed benefits like NSSF contributions.

Therefore, HOFOKAM like other organizations provides a rich mix of incentives to motivate and meet dynamic needs of its employees. It is premised that with these diverse nature and composition of motivational methods, the needs of different staff can be met. The motivation includes; monetary, non-monetary; group-based, individual; short term, long term; performance-based, non-performance based. However, it is the appropriateness, affordability, comprehensiveness, and timeliness of the motivations that renders it effective towards improving the performance of the employees.

4.3 Objective two: Effect of Staff Motivation on Employee Performance

4.3.1 Existence of Relationship between Motivation and Employee Performance

The findings revealed that there is a positive relationship between staff motivation and employee performance as the majority of 30 (75%) of respondents while 8 (20%) of the respondents were not sure and the findings are as reflected in the table and figure below;

Table 12: Showing existence of Relationship between Motivation and Employee Performance

Source: Primary

Figure 11: Showing the relationship between motivation and employee performance

From 12 above, the respondents’ view as to whether motivation and employee performance are related is portrayed. The findings revealed that most of the respondents, 30 (75%) agreed that they arc related: 02 (5%) contended that there did not exist any direct relationship between these two variables: and 08 (20%) were not quite certain if there was any relationship. This accelerated the progress of the study to ascertain the nature of this relationship.

4.3.2 Effect of Motivation and Employee Performance

The research findings established that a well established motivation affects employee performance positively through increased staff productivity with 25 (62.5%) of respondents, it enhances staff efficiency 20 (50%) of respondents, it leads to increased staff loyalty 13 (32.5%), other effects included; health loan portfolio quality, skill development, attraction of skilled personnel, coordination and team work, increased client retention rates and strengthening of management. The findings are summarized in the table and figure below;  

Table 13:  Showing effect of Motivation on Employee Performance

Source: Primary Data

Figure 12: Showing the effect of motivation on employee performance

In Table 13 above, the respondents’ views on how- staff” motivation affects employee performance are presented. As shown, 25 (62.5%) contended that motivation raises employee the productivity of staff who are the beneficiaries; 20 (50%) noted that it increases staff efficiency like profit sharing plans: 16 (30%) noted that it ensures healthy loan portfolio quality; 13 (32.5%) noted that motivation aided in building staff loyalty: 10 (25%) apiece noted that motivation helps the MFI to build loyalty among its clients through its staff; and that it encourages staff to market the MFI in an attempt to meet the targets and qualify for benefits. Additionally, 08 (20%) apiece noted that motivation acts as a preventive measure for fraud risk which sometimes arises due to insufficient payments to staff; and that it enhances savings mobilization as staff mobilize more depositors to benefit from incentives; 06 (15%) noted that it promotes skill development among staff through training programs; 04 (10%) noted that it enables the MFI to attract highly skilled workers from different sources; 03 (7.5%) argued that it promotes coordination and team work among staff; and 02 (5%) noted that it enhances MFI management. Therefore, these findings imply that management; staff and clients appreciate the fact that motivation of employees affects employee and general organizational performance.

4.4 Objective three: Determinants of Employee Performance in HOFOKAM

The findings revealed that level of skill and experience of employees 18 (45%), cited working conditions or environment 16(40%), staff attitudes and characters 14 (35%), 14 (35%) cited career level of employees; and 10 (25%) apiece cited performance goals and targets; performance appraisal; and team work and internal employee relations among others as reflected in the table below;

Table 14: Determinants of Employee Performance in HOFOKAM

Source: Primary data

Figure 13: Determinants of Employee Performance in HOFOKAM

Table 14 above presents determinants of employee performance in HOFOKAM. Here, 20 (50%) noted level of skill and experience of employees: 18 (45%) cited working conditions or environment; 16(40%) noted staff attitudes and character; 14 (35%) cited career level of employees; and 10 (25%) apiece cited performance goals and targets; performance appraisal; and team work and internal employee relations- Additionally. 08 (20%) apiece cited performance planning and management as well as training or skill development of employees; 07 (17.5%) noted strength of management and governance of the MM. Further more, 06 (15%) noted type of technology used; 05 (12.5%) noted the demographic features of employees; 04 (10%) noted employee weaknesses and strengths; and finally 02 (5%) noted organizational mission as key determinants of employee performance. Therefore, it can be concluded that employee performance in HOFOKAM is determined by employee attributes, working environment, organizational and other external factors within the operational framework. .

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter provides the presentation of summary of the findings from the study as per research objective (or question); conclusion drawn; recommendations derived from the study findings; and areas related to the study theme for necessary for further research basing on the study findings.

5.1 Summary of findings

The study involved the investigation of the influence of staff motivation on employee performance, with specific reference to HOFOKAM. The summary of findings was based on the data presented in chapter four on the three specific research objectives as follows;

5.1.1 Summary of Methods of Staff Motivation

The methods used by HOFOK.AM to motivate employees included staff bonus schemes, adequate salaries, profit sharing plans, gain sharing plans, delayed benefits, merit pay plans, the symbolic rewards, non-monetary allowances, staff training and other career development programs, internal staff promotions, employee stock ownership plans, employee tournaments, effective communication within the organization, and the piece rate system of payment.

5.1.2 Summary of Influence of Staff Motivation on Employee Performance

The study established the relationship between staff motivation and employee performance. It was discovered that motivation enhances staff efficiency and effectiveness, increases work effort, leads to improved customer service, increased staff loyalty, guides in employee recruitment, increases savings; empowers management, aids in controlling fraud risk, enhances performance appraisal, enhances employee training and skills development, improves internal employee relations and team work, enhances internal communication, assesses employee potential, increases staff competition guides in job evaluation, and fosters employee involvement and empowerment.

5.1.3 Summary on Determinants of Employee Performance

The study established various factors, alongside motivation, that affect performance of employees in HOFOKAM. These included organizational mission and culture, performance goals and targets for employees, performance planning and management, mode of performance appraisal, the weaknesses and strengths of individual employees, type of technology, employee training and skill development, employee attitudes and character, strength of management, working conditions, career level, team work and relations, level of skill and experience, and demographic features.

5.2 Conclusion of the Study

The general study findings show that staff motivation is a key area of concern for HOFOKAM and MFIs or organizations due to its significant bearing on employee morale and productivity, and •al institutional performance. That is why the organization (HOFOKAM) has instituted a wide range of motivational methods, including monetary, non-monetary, short and long-term; individual and group, performance based and non-performance based schemes for its employees to supplement the basic salary. This is useful to attract and maintain a rich stock of skilled, experienced, motivated, productive and loyal employees which is the most important resource in any organization. It is worth noting that, even if concerted effort is being made towards automation, the financial and social success and sustainability of any business or organization totally relies on the people in it.

All in all staff motivation has proven to be an effective tool for organizations to raise employee performance and raise performance, like in terms of sales, profits and client numbers. It is therefore fundamental that the top management and all staff at all levels of the organizational structure be involved right from the introduction to the re is phase of such schemes since their involvement gives them a sense of belonging and ownership of the organization. Specifically to this particular study findings, staff motivation has a positive impact on performance of employees. Therefore, HOFOKAM and other MFIs or organizations in general should ensure that motivational schemes are designed to enhance performance of both employees and the entire organization.

5.3 Recommendations of the Study

Based on the findings presented and the conclusion that was drawn, the following recommendations were derived for the employees and management, and policy makers including the government:

To employees of HOFOKAM and other organizations, there is need to embrace staff motivational schemes designed for their benefit. They need to understand, appreciate, be contented and work in line with incentives administered by their employees). This is indeed the most important factor that can render any motivational plan meaningful and effective towards achieving organizational goals. So, they need to develop positive attitudes towards motivation and work to meet the set targets; otherwise no motivation can never meet all their needs.

To the management that designs and implements motivational programs to their employees, they need to educate staff about such schemes. The employees being targeted by such motivation should be well informed of the incentives right from the inception of the idea, design, implementation and delivery of such schemes. This will enable staff appreciate the incentives, their objectives and how to qualify for the benefits. And with adequate knowledge of the motivational programs, all the employees will be able to maintain locus towards achieving the set goals.

Furthermore, the management of the organization should consider the appropriateness, diversity and comprehensiveness of motivational methods or schemes. If the schemes are to be an effective tool of boosting employee performance, then they have to be in line with staff needs, and should be realistic enough such that targets are attainable by staff- Additionally, such incentives have to be of diverse nature ranging from monetary, non-monetary, short term, long term, individual and group based. And. the incentives should be designed in such a way that all staff levels are catered for though the incentives may differ according to managerial positions they hold.

Additionally- there is need for organizations to consider the costs of motivation. It is fundamental that they estimate the short, medium and long-term costs of designing, implementing and delivering motivation to staff. This would help them allocate sufficient funds to finance the programs; a clear implication that they should endeavor to make adequate profits and ensure high levels of liquidity.

There is also need for government and other policy makers’ intervention. The government should intervene implementing labour laws that all organizations come up with motivational programs apart from basic salary to uplift the productivity of the country’s labour force to boost economic growth. Also, workers’ organizations like trade unions should mobilize their members to agitate for adequate incentives that can help them meet their needs adequately since basic salary alone may not suffice.

5.4 Areas for Further Research

The study identified the following areas for further research:

1. To conduct an in-depth investigation on factors influencing effectiveness of staff motivation schemes in MFIs due to the fact that there existence is not enough in an organisation but how effectively and efficiently are they used.
2. To conduct a detailed investigation of the relationship between employee motivation and performance of the organization this is because a lot of resources are invested in employee motivation without really knowing whether they earn profits on the side of the organisation.

REFERENCES

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Mission Drift in Pro-Poor Microfinance Institutions. University of California, Berkeley, USA

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Grammling.M and Holtmann. M (2006). Designing Staff Incentive Schemes to Balance Social and Financial Goals-Evidence from Four VIFls, CGAP.USA

Ikeanyibe.M.O (2009). Human Resource Management for Sustainable Microfinance Institutions in Nigeria. Global Journal of Social Sciences I‘ol.8~No.l .PI 19-134, Enugu State. Enugu, Nigeria

Ismawan.B (2007).Managing the Growth of Microcredit Programs: Human Resource Management Including Recruiting.Training and Motivating Staff. Jakarta, Indonesia

K.eijzers, B (2010), Employee Motivation and Performance: Organization and Strategy

McKim, A (2007). Staff Incentive Policies for Credit Officers: An Analysis of Their Heterogeneous Effects on Productivity. University of California, Berkeley, USA.

Mugwanga, T (2011). Sample Staff Incentive Scheme Manual for MFIs, Hoima. Uganda

Nandanwar M. Surnis S. &Nandanwar I. (2010). Factors Affecting the Relationship between Incentives and Employee Motivation.Journal of Business Excellence, , Mumbai, India

Owusu.T (2012). Effects of Motivation on Employee Performance, Ghana Commercial Bank

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APPENDIX I

RESEARCH QUESTIONNAIRES FOR CLIENTS OF HOFOKAM

Dear respondent,

Re: The influence of staff motivation on employee performance in microfinance institutions (A case study of HOFOKAM- Hoima brach)

I am Kyalisiima Christine, a third year student of Kyambogo University undertaking a research study on the topic above. I kindly request you to answer the following questions by ticking and filling where necessary as provided. Please note that all information given shall be treated with maximum confidentiality and only used for academic purposes.

Section A: Bio- data

Gender

Male                 Female

Age

18- 30                  31-40                       41- 50                  51 and above

What is your level of education?

Uneducated           Primary                 Secondary                   Diploma           Degree

Others…………………………………………….

Marital status

Single                       Married                  Widowed                            Divorced

For how long have you been a client of HOFOKAM

Less than 1 year                    1-5 years               5-10 years           more than 10 years

SECTION B: METHODS OF STAFF MOTIVATION IN MFIs

Do you agree that employees of HOFOKAM should be motivated?

Yes                  No               Not sure

Are you aware of any forms of motivation offered to employees at HOFOKAM

Yes                 No                      Not sure

How frequently are employees motivated at HOFOKAM?

Monthly                  Quarterly                Semi- annually              Not sure

What categories of incentives are used to motivate employees at HOFOKAM?

Financial incentives                             Non- financial incentives

Individual incentives                           Group incentives

Performance based incentives                  Non performance incentives

What methods are used to motivate employees at HOFOKAM

Others specify……………………………………………………………………………

Section C: Staff motivation and employee performance in MFIs

11. Do you agree that staff incentives contribute to the performance of employees at HOFOKAM?

Yes                             No                     Not sure

12. If yes, how? (Tick what is appropriate)

Others specify…………………………………………………………………………………

13. Does staff motivation have any negative effects on employee performance in HOFOKAM?

Yes                               No                          Not sure

If yes, specify…………………………………………………………………………………

What challenges are faced by HOFOKAM when providing motivation to its staff?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

What steps can be taken by HOFOKAM to ensure effectiveness of staff motivation?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

SECTION D: FACTORS INFLUENCING EMPLOYEE PERFORMANCE IN MFIS

What factors affect the performance of employees in HOFOKAM?

Others specify……………………………………………………………………………………

What types can be taken to enhance employee performance at HOFOKAM?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………