ABSTRACT

The study sought to find out the Impact of motivation on organizational performance in century bottling company. The research was guided by the following objectives, To establish the motivational strategies currently in place at Century Bottling, Company Limited., To examine the other factors that affecting the performance of an organization in Century Bottling Company Limited and To establish the relationship between motivation and organizational performance.

The purpose of the study was to examine the impact of employee motivation on organizational performance, at century bottling company.

The sample comprised of 30 respondents that were selected in a way that 3 respondents were be from the procurement department, 10 from administration, 10 from ware house and 7 respondents who were from finance officers. While carrying out research, purposive sampling was applied to the above different categories of respondents. A questionnaire was used as data collection instrument.

The study recommends that management of Century Bottling Company Limited 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 and 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.

The study also recommends the following areas of further study; the impact of compensation on consumer buying behavior in organization, the effect of benefits on organizational performance and the impact of reward management systems on employee in organization

CHAPTER ONE

INTRODUCTION

1.0Introduction

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.

1.1Background to the Study

Century Bottling Company is a soda manufacturing industry located in Namanve industrial area in Mukono district. They make supplies of their products across the country and make sales as well. It employs over 2,000 people with its entities.

Good remuneration has been found, over the years to be one of the policies the organization can adopt to increase workers performance and thereby increase the organizations productivity. Also, with the present global economic trend, most employers of labour have realized the fact that for their organizations to compete favorably, the performance of their employees goes a long way in determining the success of the organization. On the other hand, performance of employees in any organization is vital, not only for the growth of the organization, but also for the growth of individual employees (Meyer and Peng, 2006).

An organization must know who its outstanding workers are; those who need additional training and those not contributing to the efficiency and welfare of the company or organization. Also Performance on the job can be assessed at all levels of employment such as: personnel decision relating to promotion, job rotation, job enrichments etc, (Aidis, 2005; Meyer and Peng, 2006).

Employee motivation is something of concern to major organization across the globe therefore it is something of great concern to many organizations across the globe, (Lysons, 2006). This is the reason why I decided to do this study at one organization called century bottling company.

According to cole, (2008) proper motivation of employee enhances performance and of organization and increases competitiveness, most of the global companies in United States invest billions of dollar on ensuring proper employee motivation. Through pay rise and other facilities. 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 labour 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.

Workers tend to perform more effectively if their wages are related to performance which is not based on personal bias or prejudice, but on objective evaluation of an employee’s merit. Though several techniques of measuring job performance have been developed, in general, the specific technique chosen varies with the type of work. For achieving prosperity, organization designs different strategies to compete with their rivals and for increasing the performance of the organizations. Very few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success or if not focused well, to decline in most African countries including Nigeria, interest in effective use of rewards to influence workers performance.

To motivateemployeesbegan in the 1970’s. So many people have carried out researches in this area, cases in point areOloko(2003), Kayode (2003), Nwachukwu (2004), meyer and Nguyen (2005) and Egwurudi(2008). The performance of workers has become important due to the increase concern of human resources and personnel experts about the level of output obtained from workers due to poor remuneration. This attitude is also a social concern and is very important to identify problems that are obtained in industrial set ting due to nonchalant attitudes of managers to manage their workers by rewarding them well to maximize their productivity. The relationship between motivation and organizational performance is 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 organizational 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, (Peng et al,2006).

The top management of century bottling company has invested billion to ensure efficiency in performance of the organization by enhancing productivity and quality of the products however the organization is still faced with numerous challenges coupled with challenges including loss of market share and increased complaints by customers, its against that this study intends to investigate in to the impact of employee motivation on organizational performance with specific reference to century bottling company ltd.

1.2 Statement of the Problem

According to Cole (2002) due to increasing competitive institutional arrangement, there is a call for highly committed human resource when looking forward to attain a strong competitive organization.

Despite of the massive investment at century bottling to increase the performance of the organization so that it’s competitive in terms of high sales, and profitability, Century Bottling Company is faced with numerous competitions like Rihama cola, Fizzy and Crown beverages, it’s against this background, that this study setout to investigate into the impact of employee motivation on organizational performance as one of the factors affecting organizational performance.

1.3 Purpose of the Study

The purpose of the study was to examine the impact of employee motivation on organizational performance, using the Case Study of Century Bottling Company Limited.

1.4 Research Objectives

1. To establish the motivational strategies currently in place at Century Bottling, Company Limited.
2. To examine the other factors that affecting the performance of an organization in Century Bottling Company Limited?

• To establish the relationship between motivation and organizational performance.

1.5 Research Questions

1. What are the motivational strategies currently in place at Century Bottling Company Limited?
2. What is the other factors that affecting the performance of an organization in Century Bottling Company Limited? :

• What is the relationship between motivation and organizational performance in century bottling company ltd?

1.6   Scope of the Study

1.6.1 Content Scope

The study focused on the motivational strategies currently in place, other factors that affect
the performance of an organization and the relationship between motivation and
organizational performance.

1.6.2 Area Scope

The study was conducted at the Namanve industrial area, a Plant of Century Bottling
Company Limited located at 4042 Jinja road Kampala (u).

1.6.3 Time Scope

The study focused on the impacts of employee motivation on organizational performance in Century Bottling Company Limited for a period of two years.

1.7   Significance of the Study

1. i) The research findings may help the management of Century Bottling Company Limited to understand further the effect of motivation on employee performance.
2. ii) The study findings will help management of Century Bottling Company Limited to
   come up with better motivation techniques which will result into improved
   organizational performance.

iii) The study findings may highlight on the benefits of employee motivation and how they subsequently influence employee output.

1. iv) The study findings may 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. v) 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. .

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter covered the review of the literature on the motivational strategies used  in organizations, the other factors that impact on performance of employees and the relationship between motivation and employee performance therefore the literature review is captured from local and international sources.

2.1       Definition of Key Terms

2.1.1    Motivation

Motivation is the inducement of a desired behavior within 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 Butkusand Green (2002), motivation is derived from 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, gives route 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 in terms of competitive performance, quality of service, feasibility sources, utilization and annotation.

2.2       The different motivational strategies used in organizations

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).

2.2.1 Wages and Salaries

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.

2.2.2    Piece Rate

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 speed improves with the piece rate practice of motivation.

2.2.3    Fringe Benefits

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.

2.2.4    Performance related Pay

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.

2.2.5    Bonuses

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;

2.2.6    Training Opportunities

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.

2.2.7    Variable Pay

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.

2.2.8    Stock Options

Previously the territory of upper management and large companies stock options had 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.

2.2.9    Recognition

Recognition programmes of giving Cash and noncash 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 andMurlis (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’ 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.

2.2.9    Gain sharing

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).

2.2.10  Job Rotation

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.

2.2.11Communication Style

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       Other factors affecting Employee Performance

2.3.1    Goal Clarity

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.

2.3.2    Knowledge of Structures

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.

2.3.3    Feedback

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.

2.3.4    Mental Models

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.

2.3.5    Environment

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.

2.3.6    Technology

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).

2.3.7    Abilities, Training and Experience

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).

2.3.8    Work-Home Balance

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.

2.3.9    Harsh Supervision
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).

2.3.10  Job insecurity

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.

2.3.11  Planning

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).

2.3.12  Team Work

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).

2.3.13  Poor Working Conditions
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).

2.3.14  Communication
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).

2.3.15  Labour practices
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.

2.3.16  New Technology
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.

2.3.17  Poor Working Materials

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 grudges in between workers therefore affecting employee performance (Robbins, 2005).

2.4       The Relationship between Motivation and 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.

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 descriptive research design. The researcher employed descriptive research design since it provides the opinion of people about the subject knowledge on the impact of employee motivation on organizational performance. The design availed the researcher with comprehensive information about the research question as a way of getting solutions. Descriptive approach, in this case was used because the study sought descriptive analysis of information.

3.2       Area of the study

The study was carried out in at Century Bottling Company Namanve Jinja road.

3.2       Study population and sample size

The study targeted administration, the procurement staffs, accounting officers and ware house staffs.

3.3       Sampling techniques

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 were selected in a way that 3 respondents were be from the procurement department, 10 from administration, 10 from ware house and 7 respondents who were from finance officers. While carrying out research, purposive sampling was applied to the above different categories of respondents.

Table 1 below shows the summary of the sample size of the respondents and the sampling techniques that were used in the study.

Table 1Sample size of the respondents

3.4 Data sources

Source of data was from both primary and secondary sources.

3.4.1 Primary data

Primary data was obtained from the questionnaires administered on the target respondents to gain opinions and practices on impact of employee motivation on organizational performance.

3.4.2 Secondary data

Secondary data was 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 employee motivation on organizational performance to the case study. Secondary data was sourced because it yielded more accurate information than obtained through primary data, and it is also cheaper

3.5 Data Collection Instruments

The major instruments for data collection were questionnaires and interview guide. Surveys were just one part of a complete data collection and evaluation strategy. The major method of data collection for the study was the survey, which was 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.

3.5.1 Questionnaires

The questionnaires were used to collect quantitative data. The researcher administered the questionnaires to respondents in different departments, which was designed basing on study objectives and questions. Respondents read questionnaires and wrote responses themselves. The questionnaires were close ended and were considered convenient because they were administered to the literate and its anonymous nature fetched unhindered responses.

3.5.2 Interviews

Qualitative data was collected from the informants using interviews. The interview guide was structured. The interviews were held with administration and took approximately thirty to sixty minutes. 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 were used to get maximum information from the different respondents to participate in the research.

3.6 Data collection procedures

Upon receiving the University permission to carry out research, the area of study was visited for purposes of familiarization.  The researcher sought permission from staff and once allowed to proceed with research, questionnaires were issued and interviews were carried out with the selected staff.

3.7 Quality control of data instruments

The instrument was taken to the supervisor to check its correctness there after pilot study was carried out to find out if it measures what it is meant to for.

3.8 Data processing and analysis

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

3.9 Limitations of the study

Financial constraints cash flow did not flow as expected but this did not affect the study.

Respondents delayed in filling the questionnaires and feared to give information, but they were persuaded that the information was going to be kept secret.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.0       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

AAccording to the findings it was indicated that Century Bottling Company Limited employees, forty (40%) of the respondents are female while sixty (60%) of the respondents are male. This therefore indicated that most information was gathered from male respondents.

4.1.2    Age group

            Source: Primary data

From the findings, twenty three percent  ( 23%) of the respondents were aged between 18-29, 33% of the respondents were between 30-40 , twenty three (27%) of the respondents were  between  the age bracket of 41-50 while seventeen percent (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.

4.1.3   Period worked with Century Bottling Company Limited

Table 3 Showing the period for which employs have worked with Century Bottling Company Limited

Source: Primary data

The findings revealed that forty percent (40%) of the respondent had worked for Century Bottling Company Limited for a period of 1-3 years, 13% of the respondents worked with the organization between 1-3 years, twenty seven percent (27%) of the respondents worked with the organization between 4-5years while twenty percent (20%) of the respondents worked with Century Bottling Company Limited above 5years this therefore indicated that information was gathered from experienced respondents.

4.1.4    Levels of education

Source: Primary data

From the findings, it was revealed that seven percent (7%) of the respondents had Diploma, thirteen percent (13%) of the respondents had Masters, and forty seven percent (47%) of the respondents were degree holders while thirty three percent (33%) of the respondents had PHD at Century Bottling Company Limited. This indicates therefore that most respondents had attained university education and they were capable of giving relevant information.

4.1.5    Findings on the type of employment contract with Century Bottling Company Limited

Table 4 Response on the type of employment contract with Century Bottling Company Limited

            Source: Primary data

From the findings, twenty three percent (23%) of the respondents were are on permanent basis, 33% of the respondents are on contractual basis, twenty seven percent (27%) of the respondents are on temporary basis while seventeen percent (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.

4.1.6    Findings on the salary range of employees of Century Bottling Company Limited

Table 5 Responses on the salary range of employees of Century Bottling Company Limited

Source: Primary Data

From Table 5, findings  indicated that, thirty three percent (33%) of the respondents  strongly agreed, twenty percent (20%) of the respondents agreed  , thirteen percent (13%) of the respondents were Uncertain, seventeen percent (17%) of  the respondents strongly disagreed  and seventeen percent (17%)  of the respondents disagreed. This indicates that the salary range is between 5-1 Million and 1-2 Million for most of the employees.

4.1.7   Position held in Century Bottling Company Limited

Table 6 Showing the Position held in Century Bottling Company Limited

Source: Primary data

The findings revealed that forty percent (40%) of the respondents  were  in  Century Bottling Company Limited as procurement managers ,thirty three percent ( 33%) of the respondents  were in  Century Bottling Company Limited as finance managers, twenty percent (20%) of the respondents was  in  Century Bottling Company Limited as marketing managers  while seven percent (7%) of the respondents was  in  Century Bottling Company Limited as production managers. This therefore indicated that information was gathered from the procurement department as well as the finance department and this showed how most employees are being rewarded as compared to the performance of the two departments and retaining employees became easy.

4.1.8   Findings on whether one understands the term motivation

Table 7 Showing whether one understands the term motivation

Source: Primary data

The findings revealed that seven percent (7%) of the respondents  knew the term compensation  very well, thirty three percent (33%) of the respondents  indicated  that they don’t know the  term compensation  , twenty percent (20%) of the respondents indicated  that they knew the term compensation  fairly while forty percent (40%) of the respondents indicated  that they knew the term compensation  poorly . This therefore indicated that information was gathered from those that knew the term motivation than those who didn’t actually know motivation

4.1.9    Findings on whether Century Bottling Company Limited has a motivation policy

Table 8 Showing whether Century Bottling Company Limited has a motivation policy

            Source: Primary data

From the findings, twenty three percent (23%) of the respondents indicated that  Century Bottling Company Limited has a compensation policy on  which it does to improve on the operations of the organization, thirty three percent, (33%) of the respondents  indicated that  Century Bottling Company Limited has no compensation policy on  which to base the operations of an organization. Twenty seven percent (27%) of the respondents   were not sure that Century Bottling Company Limited has a compensation policy on which the operations of the organization are based while seventeen percent (17%)of the respondents were uncertain of whether Century Bottling Company Limited has a compensation policy.

4.2 FINDINGS ON THE DIFFERENT MOTIVATIONAL STRATEGIES USED IN CENTURY BOTTLING COMPANY

Table 9 Responses on whether Century Bottling Company Limited pays good wages and salaries to employees to motivate them

Source: Primary Data

From Table 9 above , findings  indicated that, twenty seven percent (27%) of the respondents  strongly agreed, forty percent (40%) of the respondents agreed  ,twenty percent (20%) of the respondents were Uncertain, ten percent (10%) of  the respondents strongly disagreed  and three percent (3%)  of the respondents disagreed.  The researcher found out that as 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.

Table 10 Responses on whether piece rate method of paying employees helps to motivate employees in an organization.

Source: Primary Data

From Table 10 above, findings indicated that, seventeen percent (17%) of the respondents agreed, twenty seven percent (27%) of the respondents were Uncertain, twenty percent (20%) of the respondents strongly disagreed and thirteen percent (13%) of the respondents disagreed. The researcher found out that in agreement with Jones, (2001) and Chien-Chung (2003), who note that piece rate, is the paying of a worker per item produced in a certain period of time furthermore chiengchung asserts that piece rate method of paying employees increases speed of work and therefore productivity.

Table 11Responses on whether fringe benefits given to employees ensures employee motivation

Source: Primary Data

From Table 11, findings  indicated that, fifty percent (50%) of the respondents  strongly agreed, twenty percent (20%) of the respondents just agreed  ,Ten Percent(10%) of the respondents were Uncertain, thirteen percent (13%) of  the respondents strongly disagreed  and seven percent (7%)  of the respondents disagreed.  The researcher found out in agreement with Doellgast (2006) who stated that fringe benefits are often known as “perks” and are items an employee receives in addition to their normal wage and salary. These items 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.

Table 12 findings on whether performance related pay help in motivating employees

Source: Primary Data

From Table 12, findings  indicated that, twenty three percent (23%) of the respondents  strongly agreed, thirty percent (30%) of the respondents agreed  , 13% of the respondents were Uncertain, seventeen percent (17%) of  the respondents strongly disagreed  and seventeen percent (17%)  of the respondents disagreed. The researcher found out that Century Bottling Company Limited uses performan cerelated pay which is given to those employees who meet certain targets, the targets are often evaluated and reviewed in regular appraisals with managers however 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 13Responses on whether recognition in the organization motivate employees

Source: Primary Data

From Table 13 above , findings  indicated that, thirty percent (30%) of the respondents  strongly agreed, twenty seven percent (27%) of the respondents agreed , ten percent (10%) of the respondents were Uncertain, seventeen percent (17%) of  the respondents strongly disagreed  and seventeen percent (17%)  of the respondents disagreed. The researcher found out in agreement with Armstrong and Muralist (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 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’ 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, twenty three percent (23%) of the respondents  strongly agreed, seventeen percent (17%) of the respondents agreed  , twenty seven percent (27%) of the respondents were Uncertain, twenty percent (20%) of  the respondents strongly disagreed  and thirteen percent (13%)  of the respondents disagreed. The researcher found out in agreement with Marled (2000),, that when your employees function as a team, the employer 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 (Liker, 2004).The 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 paying workers according to the amount of work done motivates them

Source: Primary Data

From Table 15, findings  indicated that, twenty three percent (23%) of the respondents  strongly agreed, thirty percent (30%) of the respondents agreed  ,thirteen percent (13%) of the respondents were Uncertain, seventeen percent (17%) of  the respondents strongly disagreed  and seventeen percent (17%)  of the respondents disagreed. The researcher found out that Century Bottling Company Limited 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 training opportunities to companies helps in employee motivation.

Source: Primary Data

From Table 16 above , findings  indicated that, twenty seven percent (27%) of the respondents  strongly agreed, forty percent (40%) of the respondents agreed  , twenty percent (20%) of the respondents were uncertain, ten percent (10%) of  the respondents strongly disagreed  and three percent (3%)  of the respondents disagreed.  The researcher found out in agreement with Hammer (2000), that individuals or employees will be motivated at Century Bottling Company Limited 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 company’s shares and motivates them

Source: Primary Data

From Table 17 above, findings indicated that, seventeen percent (17%) of the respondents agreed, twenty seven percent (27%) of the respondents were uncertain, twenty percent (20%) of the respondents strongly disagreed and thirteen percent (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 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 company’s shares at a fixed price for a specified period of time (usually around ten years) therefore they are generally authorized by a company’s board of directors and approved by its shareholders.

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

Source: Primary Data

From Table 18, findings  indicated that, fifty percent (50%) of the respondents  strongly agreed, twenty percent (20%) of the respondents agreed  , ten percent (10%) of the respondents were Uncertain, thirteen percent (13%) of  the respondents strongly disagreed  and seven percent (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 OTHER FACTORS THE AFFECT PERFORMANCE OF EMPLOYEES

Table 19 Response on whether goal clarity among the employees helps to improve their performance

Source:  Primary data

From the Table 19 above, fourty 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 20 Response on whether knowledge of structures affects the performance of employees

Source:  Primary data

From the Table 20 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 21 Response on whether environment affects performance of employees in an organization

Source:  Primary data

From the table 21 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 Century Bottling Company Limited.

This is also in line with (Rynes, 2004) who 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.

Table 22 Response on whether feedback is key in the improvement of an individual’s performance

Source:  Primary data

From the table 22 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 Gerhard (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 23 Response on how the introduction of new technology in different organizations has affected employee performance

Source:  Primary data

From the table 23 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 24 Response on whether the attitude and behaviors are one of the factors affecting employee performance in Century Bottling Company Limited

Source:  Primary data

From the Table 24 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 Century Bottling Company Limited. 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 RELATIONSHIP BETWEEN MOTIVATION AND EMPLOYEE PERFORMANCE

Table 25 Responses on whether empowerment of employees helps them to be motivated

Source: Primary Data

From Table 25  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. Kuok 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 compensation benefits affect the performance of employees

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), that 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.

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 company. 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 and with respect to research questions, the relationship between motivation and employee performance in the organization.

To examine the other factors that affecting the performance of an organization in Century Bottling Company Limited?

To establish the relationship between motivation and organizational performance.

5.1 Summary of findings

• To establish the motivational strategies currently in place at Century Bottling,

Concerning objective one the following were revealed;

Findings revealed 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’ 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 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.

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 that monetary methods of motivation have got little benefits to the employees though its still widely used.

The researcher found out that the motivational strategiesalso affects 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 this is also in line with, Marie (2000), who asserts that 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.

5.1.2    To examine factors affecting the performance of an organization such as century bottling company

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 this contention is also in line with Wilmot (2007), who 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

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 this is also in line with Fred (2003) who 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.

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 this is also in line with Samuel (2010), who assets that on the view that technology is primary tool that can be used to boost employee performance, he 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.

Findings revealed that attitude and behaviors are one of the factors affecting employee performance in Century Bottling Company Limited. 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 this is also in line with Scott (2000) who defines 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.

5.1.2 Objective three: to establish the Relationship between Motivation and Employee Performance at century bottling company

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

Second 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 this is also in line with Sanderson, (2003), who believed that empowerment creates motivation and energy in workforce to do their work efficiently and effectively.

Thirdfindings 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.

Fourth, 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 company. 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 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.

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

In conclusion, the researcher drew the following conclusions

First 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.

Second The impact of motivation and benefits on employee performance and organizational effectiveness depends on the existing motivation 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.

Third with a highly competitive employment market, employers need to offer their employees a compensation package that would enable them attracts, 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.

5.1.1 Managerial and Policy Recommendations

Based on the conclusion drawn above the researcher made the following resolutions;

First the management of Century Bottling Company Limited 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 Century Bottling Company Limited must obtain buy in from union leadership early in the negotiation process to be successful in changing the way they pay their employees.

Second The management of Century Bottling Company Limited 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 company’s compensation program.

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

Fourth the management of Century Bottling Company Limited 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.

Fifth 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.

5.3Areas 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

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QUESTIONNAIRE

Study Appendix I

(Questionnaires to the staff and management of Century Bottling Company Limited)

Dear respondent,

The researcher seeks through this study to evaluate the “impact of motivation on employee performance”. The researcher is a student of Kyambogo University. This questionnaire is designed for academic purposes and for partial fulfillment of the requirements for the award of a bachelors degree in administrative and secretarial science. It is only through your response that the work can be completely well. Therefore any information disseminated will be handled with maximum confidentiality. Please kindly spare a few of your minutes to answer the following questions.

SECTION A: BIO DATA

Please indicate a tick (  a) against your choice

1. Sex of the respondent

Male                                        Female

• Age bracket of the respondent

18 – 29                                    41 – 50

30 – 40                                    51 – 60

3. Highest level of Education

Certificate                   Diploma                                  Degree

Masters                        PHD                                        Others

4. How long have you worked with Century Bottling Company Limited

Under 1 year                           1-3 years                      4-5 Years

Above 5 Years

5. What is your employment status?

Permanent                   Temporary                   Casual

Contract

• In which department do you fall?

Operations and Transport                               HR and Customer care

Technical and Engineering                             Finance and Accounts

Marketing and Sales

7. What is your Salary Range?

< 0.5Million                            0.5 – 2Million

3 -.5Million

Above 5millions

SECTION B: MOTIVATIONAL   STRATEGIES

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree

10. Suggest ways that Century Bottling Company Limited should be used to improve on your motivation levels.

1. …………………………………………………………………………………………
2. …………………………………………………………………………………………
3. …………………………………………………………………………………………

SECTION C: OTHER FACTORS AFFECTING EMPLOYEE PERFORMANCE

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree.

7. Suggest any other factors that affect your level of performance as an employee of Century Bottling Company Limited i)………………………………………………………………………………………………… iii)…………………………………………………………………………………………… iii)………………………………………………………………………………………

SECTION D: THE RELATIONSHIP BETWEEN MOTIVATION AND EMPLOYEE PERFORMANCE.

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree.

THANK YOU FOR YOUR COOPERATION