THE EFFECT OF MOTIVATION ON EMPLOYEE PRODUCTIVITY IN KNIGHT FRANK, UGANDA

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

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

1.1 Background to the Study

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 productivity 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.

Knight Frank LLP is a residential and commercial property consultancy founded in London by John Knight, Howard Frank and William Rutley in 1896. Knight Frank together with its New York-based affiliate Newmark Grubb Knight Frank is one of the world’s largest global property consultancies. Its global network encompasses 370 offices in 55 countries and more than 12,000 employees handle in excess of US$817 billion (£498 billion) worth of commercial, agricultural and residential real estate annually. 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. This will suite the study to aid in assessing how its motivation schemes affect the level of productivity of employees.

1.2 Statement of the problem

The human resource function is the most important of all in Organization just like other organizations, as employees are wholly responsible for managing other resources to meet organizational goals. The overall performance of Organization is a function of the efforts of its employees. Currently, Organization focuses 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 Organization 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 and thus unmotivated employees lead to low productivity in the organization. Given this contradiction, it will be necessary to conduct a thorough analysis of the relationship between motivation and employee productivity in Organization.

1.3 Objectives of the Study

1.3.1 General Objective

To establish the effect of motivation on employee productivity in Organization, with specific reference to KNIGHT FRANK, UGANDA.

1.3.2 Specific Objectives

1. To establish the methods used to motivate staff in KNIGHT FRANK, UGANDA.
2. To examine the relationship between staff motivation and employee performance in KNIGHT FRANK, UGANDA.

• To examine the factors influencing employee performance in KNIGHT FRANK, UGANDA.

1.4 Research Questions

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

• What are the factors influencing employee performance in KNIGHT FRANK, UGANDA?

1.5 Scope of the Study

1.5.1 Content Scope

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

1.5.2 Geographical Scope

The study will be conducted at KNIGHT FRANK, UGANDA. It will be chosen for the study due to its convenience and possible accessibility data. More importantly, it is a regulated organization with sound human resource policies and procedures, including staff motivation.

1.5.3 Time Scope

Primary, data will be collected from February-May 2017.

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 Organization 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.

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