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ASSESSMENT OF TEACHERS MOTIVATION ON THEIR PERFORMANCE

CASE STUDY OF KAYONZA SUB-COUNTY

CHAPTER ONE

1.0 Introduction

This chapter covers the background of the study, Statement of the problem, purpose of the study, research questions, and scope of the study, significance of the study and definition of terms.

1.1 Background of study

After home, the school is the most important place for pupils  to learn and develop their educational and social competencies. Teachers play a pivotal role in providing education to the pupils . Every school strives to recruit good and qualified teaching staff that can deliver quality education to its pupils . Only highly qualified and committed teaching staff or teachers can produce effective results by producing good quality of pupils , who contribute to their country in future.

Motivation guide people‘s actions and behaviors toward achievement of some goals” (Analoui, 2011). People are the primary resources for any organization. Like any other organizations, schools are staffed by people, mainly by teachers. However, all teachers do not perform equally. Some are enthusiastic and hard workers others are relaxing, and some others are to the extent of being careless and irresponsible. Teachers’ motivation is one of the major causes for such differences. “Luthans (2011) asserts that motivation is the process that arouses, energizes, directs, and sustains behavior and performance. That is, it is the process of stimulating people to action and to achieve a desired task”. One way of stimulating people is to employ effective motivation, which makes workers more satisfied with and performed their work.

Teacher motivation has become an important issue given their responsibility to impart knowledge and skills to learners. It is argued that satisfied teachers are generally more productive and can influence pupils ’ achievement (Mertler, 2012). Motivation and performance are very important factors in terms of organization success and achievements. If changes occur in external environment then it is necessary for an organization to adopt that change because it may motivates to gain a competitive advantage. For this, the main thing they required is the skilled and competent employees (Latt, 2008).

Therefore, it is crucial for schools to keep the talented or key teaching staff. Because only qualified teachers can give best education to the pupils . Thus, for the quality of education the quality of teachers matter a lot. But if the qualified teachers are having leaving intentions from the school or teaching field, then it will have negative impact on pupils  and school’s performance as well. Thus, it is very essential to keep the highly qualified teachers to deliver good quality of education. The teachers can be retained successfully only if they are satisfied with their jobs. The job satisfaction leads to their superior performance and retention as well

Teachers are essential for developing the future of pupils . Achievement level of pupils  is directly related with the effectiveness of teachers. Motivation has instantaneous effect on the course of teacher performance, (Atkinson, 2014). Productivity of a worker can be enhanced from 25% to 85-90%, when they are motivated (Hersey & Blanchard, 2015). According to Kreitner (2010), motivation aspires the employees to put all their efforts to achieve organizational goals.

According to Stolovitch & his colleagues (2011), Tangible assets can motivate the employees and increase their performance. According to Maslow theory of hierarchy (1943), first and foremost need of every employee is physical need and this physical need can only be fulfilled by money. So, in the start of the career, only money can motivate the employees of every industry. Comfortable life attracts more to the employees as compare to the polite nature of employer (Krishnan, 2013).

According to a survey, 157000 men and women are leaving the teaching field every year (Issue brief, Feb 2008). Quality of education can be improved only in this situation that competent and efficient teachers should be hired and retained in a school. Due to turnover of competent teachers and incoming of ineffective teachers, pupils  are disturbing very much. Actually the main purpose of every school is to present quality education to every student and this purpose cannot be fulfilled in the absence of qualified and competent teachers.

The cost of teacher’s turnover cannot be counted. Pupils  are indeed the future of any country. So, it is the great responsibility of educationalist and researchers to search the reason of this problem. Education research and development departments should research about the reason of teacher’s performance and should develop the strategies to retain the talented teachers in the schools.

The major factor that is associated with primary schools’ teachers’ decision to perform the teaching profession is due to their dissatisfaction or satisfaction. Their individual feelings may arise as result of several factors such physiological, security, social, self-esteem and self actualization.

Teachers are expected to render a very high job performance, and the ministry of education is always curious regarding the job performance of its teachers. Also, the Ministry of Education, demands a very high measure of loyalty, patriotism, dedication, hard work and commitment from its teachers (Ubom & Joshua, 2004). This study therefore intends to investigate into assessment of teachers motivation on their performance with specific reference to Kayonza Sub-County Schools Of Kayonza P/S , Bugonya And Bukonda P/S.

1.2 Statement of the Problem

Education is a fundamental human right according to the United Nations international children’s fund, (UNICEF, 2009), countries across the globe invest significant amount of their GDP on improving of the quality of education as it is viewed as aback bone of the economic development of a country. It is clear that to improve quality of education ,teachers should be motivated properly and the teacher are expected to render a very high job performance, and the Minister of Education is always curious regarding the job performance of the teachers. It is based on this that Oladele (2005) states that an unsatisfied need would only arouse the person to work that which will be sustained until satisfaction had been attained. The teachers should be motivated and contribute their effort towards the achievement of the primary schools’ objectives and goals.

The academic performance of pupils  in most of the schools in Kayonza sub-county , kayunga district is generally poor. It is highly probable that teachers performance is poor in Kayonza sub-county. It is therefore deemed necessary to establish the assessment of teachers motivation on their performance  with specific reference to  Kayonza Sub-County.

1.3    Objectives of the study

1.3.1 General objective

The overall purpose of this study is to assess teachers motivation on their performance  with specific reference to  kayonza sub-county.

• Specific objectives

1. To examine the factors that affect teachers performance in Kayonza sub-county.
2. To identify strategies aimed at improving teachers performance in Kayonza sub-county.

• To identify the challenges in teachers performance in Kayonza sub-county.

1.4    Research Questions

1. What are the factors that affect teachers’ performance in Kayonza sub-county.
2. What are the strategies aimed at improving teachers’ performance in Kayonza sub-county.

• What are the challenges in teachers’ performance in Kayonza sub-county.

1.6       Scope of the Study

1.6.1        Study Scope

The study will cover  the factors that affect teachers’ performance , the strategies aimed at improving teachers’ performance and  the challenges in teachers’ performance in Kayonza sub-county.

1.6.2 Geographical Scope

The study will be carried out at in Kayonza sub-county.

1.6.3 Time scope

The period of data to be considered in the primary school will be from 2012-2016 and period of body of knowledge in reviewing literature will be from 2000-2016, while the study will be carried out from April to October 2016.

1.7       Significance of the Study

1. The study will assist future researchers with enough information regarding the different that affect teachers’ performance.
2. The study will also enable the government make informed decisions regarding on the different ways of improving teachers’ performance.

• The study will also enable the future scholars have information regarding challenges on the performance of teachers.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter discusses the literature related to the subject of study; it reviews previous research, articles on assessment of teachers motivation on their performance according to research objectives.

2.1 Teacher Motivation

Teacher’s motivation is a global issue in different of the world in developed and developing countries, Africa, Ethiopia in different parts or regions. Every school whether governmental or private, profit maximization or service rendering, nonprofit organization, whether big or small cannot achieve their objectives and goals without teachers’ motivation

According to Sarkar (2000) all organization facilities will go waste in the lack of motivated work force utilizes these facilities effectively. Thus it is quite important and must be concerned about motivation. According to recent survey, most teachers agree that motivating teachers has become challenging. This is because the work force is diverse in many aspects and changing in different time. Hence, the role of work motivation and job satisfaction in promoted the ability of teachers’ performance to function effectively (Weiss, 2002).

To enhance their economy and improve their living standards most of them engage in other business ventures during the school period. The time and energy devoted to the business affect commitment to duty as a teacher and consequently hinders the performance of the pupils (Nwuju and Uzoaru, 2010).

Moreover, Idogho (2002) states that when teachers are not adequately taken care of especially  with regards to regular and prompt payment of their salaries and other entitlements, their attitude to work automatically changes. They refuse to obey laid down rules for their work.

They could come to work, but no meaningful work will be done, no effective teaching and learning. Instead of teaching, many of them resort to discussing their personal woe in their staff rooms and offices.

2.2 FACTORS THAT AFFECT TEACHERS PERFORMANCE

The quality of human resource management is a critical influence on the performance of the firm. Concern for strategic integration, commitment, flexibility and quality has called for attention to employee‘s motivation and retention. Bennell & Akyeampong (2007) find sizeable percentages of primary school teachers are poorly motivated in sub-Saharan Africa and Asia. Finnigan & Gross (2002) warn against the demotivating consequences of continually sanctioning of poorly performing teachers or schools without simultaneously providing support for those teachers or schools to improve performance. Debbie (2008) contends that teachers are the most important factor in determining the quality of education that children receive. Financial motivation has become the most concern in today‘s organization in regard to Maslow‘s basic needs. Non-financial aspect only comes into subsidize financial motivation.

There is no one definition for motivation. Different scholars define term motivation in different ways, which indicate the broader scope and complexity of the concept of the motivation. To mention few selected definition for the purpose of this study motivation can be broadly defined as force within a person that affect his/her direction, intensity and persistence of voluntary behavior. Motivation teachers are willing to exert a particular level of effort for a certain amount of time to ward a particular goal (Mschane and Glinow, 2005).

Physical resources enhance the conducive environment that promotes effective teaching and learning. Studies conducted on the effect of the school environment on teacher motivation attest to the fact that school environment that is not conducive to teaching may lead to low motivation hence underperformance (Chimombe, 2011).

Provision of adequate teaching and learning facilities at all levels including equipment and human resources enhance the quality and relevance of imparting skills to learners (Lumuli, 2009).Teaching and learning resources include classrooms, laboratories, libraries, playing fields, textbooks among other things. Reduced class size motivates teachers to effective teaching due to more student participation. Yuma (2011) links performance in examinations to the state of teaching and learning resources in schools. He notes that students from poor backgrounds perform poorly in the examinations because the poor are often in areas where schools are seriously deprived of vital facilities an attitude of helplessness may be inculcated early into students making them have a negative attitude toward the school. Michaeloaw (2002) found out that workload challenges are negatively correlated teacher job satisfaction and positively correlated to absenteeism. Africa not only does a heavy workload negatively impact teachers effo

Physical materials in terms of adequacy and quality have been noted to have a great impact on teacher motivation. (Husen, et.al., 2010) A school that has adequate instructional materials is likely to post better school mean. Low quality and inadequate physical resources in a school creates low morale of teachers.

A school with inadequate classrooms will be forced to accommodate more students than recommended increasing teacher-student ratio (Lumuli; 2009). The lack of basic facilities like laboratories has compromised the teaching of science subjects. Topics that are meant to be taught practically are taught theoretically as part of the adaptive mechanism by teachers due to inadequate resources for effective teaching. This ends up affecting students‘ performance reducing their competitiveness for opportunities whose placement is pegged on performance in some subjects (Mayama 2012).

In Uganda, schools like all organizations are advancing in complexity with an increasing number of factors that impact on school‘s management and performance. Consequently, they raise challenges for leadership styles that call for principals as leaders in these schools to create an attractive environment in order to motivate and retain effective teachers. The Ugandan situation is incredibly complex as many schools are caught in the middle of the web of authoritarian hierarchies and traditional leadership approach as well as bureaucratic hierarchies mixed with the modern approach of leadership. Hatfield, et al. (2012). As organizations and their environments continue to transform quickly into the future new style of leadership less bureaucratic and more democratic is required to ensure institution‘s survival and performance.

Several administrative problems of formal organizations are caused by a fundamental conflict between needs and motives of mature individual and requirements of organizations. Hoy and Miskel (2010) assert that there is interplay between individuals‘ attempt to personalize their roles so that they actualize their personal needs and that of organization in an attempt to mould and fit them to the prescribed roles to achieve the organizational goals. According to Terry (2007), leaders of schools, who are head teachers, have been charged with the responsibility of ensuring that people strive willingly towards school vision, mission, and objectives. Schools that invest in quality leadership always perform exceptionally well while those with poor leadership styles perform poorly.

Head teacher‘s Leader styles vary from one school to another, and it is worth to mention that no two leaders can administer and lead an institution in the same way. According to Holford (2003) five leadership styles were identified as Autocratic, which uses rewards and punishment to influence behavior. Besides, the Democratic leader seeks advice from subordinate and tries to reach consensus with their teams (Rotemberg & Saloner, 2013).

Okumbe (2010) suggested that the motivation of workers is enhanced when workers perceive equitable pay compared to their input. When employees feel that they are inequitably remunerated dissatisfaction sets, and this reduces their performance. Debbie (2007) research findings appear to confirm views by Herzberg (1966) that pay is a hygiene factor rather than a motivator and once people are satisfied with their pay additional increases will have little effect where other factors are pushing an individual towards quitting.

Torrington, et al. (2005) assert that hygiene factor are of some threshold. Rewards or output (promotion, salary, status) equate to the input (skills, efforts, experience) fairly compared with the rewards given to others. Teachers‘ unions assert that salary levels are low often, declining in real terms and relatively compared with other professions. Where teachers‘ salaries have been eroded down by the government, teachers are always pushed into a second job or private tutoring. (Garnor, 2010).

2.3 STRATEGIES AIMED AT IMPROVING TEACHERS’ PERFORMANCE

Improvement of a teachers’ job satisfaction by encouraging them to work hard and be rewarded, Job satisfaction is the level of contentment of individuals with their jobs. Locke (1976) defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one‘s job or job experiences. There are a variety of factors that influence a person‘s level of job satisfaction. These include income, perceived fairness of promotion system, quality of working condition, social relationships, leadership and the job itself. Job satisfaction or dissatisfaction of teachers affects their relationship with co-workers, administration and patients.

The study of the relationship between job satisfaction and job performance has a controversial history. The Hawthorne studies, conducted in the 1930s, are often credited with making researchers aware of the effects of employee attitudes on performance. Shortly after the Hawthorne studies, researchers began taking a critical look at the notion that a ―happy worker is a productive worker.‖ According to Iaffaldano and Muchinsky (1985), most of the earlier reviews of the literature suggested a weak and somewhat inconsistent relationship between job satisfaction and performance. A review of the literature in 1985 suggested that the statistical correlation between job satisfaction and performance was about. Thus, these authors concluded that the presumed relationship between job satisfaction and performance was a management fad‖ and illusory. This study had an important impact on researchers, and in some cases on organizations, with some managers and HR practitioners concluding that the relationship between job satisfaction and performance was trivial.

Better rewarding of teachers,  Rewarding employees is an important factor in employee motivation. Most organizations have gained the immense progress by fully complying with their business strategy through a well balanced reward and recognition programs for employee. Motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. The entire success of an organization is based on how an organization keeps its employees motivated and in what way they evaluate the performance of employees for job compensation. At times management pays more attention to extrinsic rewards but intrinsic rewards are equally important in employee motivation. Intangible or psychological rewards like appreciation and recognition plays a vital role in motivating employee and increasing his performance. Andrew (2004) concludes that commitment of employees is based on rewards and recognition.

Glewwe et al. (2003) found that in the sample they are studying in Kenya, teachers are absent 20% of the time. Absenteeism rate as high as 26% of the time have been found in Uganda. Madagascar suffers from the same difficulties. Teachers also often hold a second job.

Remuneration is typically utilized to energize, direct or control employee behavior. An organization exists to accomplish specific goals and objectives. The individuals in an organization have their own needs. The system that an organization uses to reward employee can play an important role in the organization‘s effort to gain the competitive advantage and to achieve its major objectives. Compensation system should attract and retain the talent an organization needs, encourage employees to develop the skills and abilities they need, motivate employees and create the type of team culture in which employees care about the organization‘s success. Through motivation individuals willingly engage in some behavior (Heneman et al, 1980). In retention, linking pay to performance is likely to help improve workforce composition (Cole, 1997). High performers tend to gain a larger share of compensation resources and thus are motivated to stay with the organization.

Greenberg and Liebman (1990) mentioned that rewards fall into three groups: material, social, and activity. From the simplicity of straight salaries to the complexities of stock option programs, compensation packages are a subset of the broader class of material rewards. Social rewards, which operate on the interpersonal level, include identification with the company or recognition by peers, customers, and competitors.

Increment in teachers’ salaries, The risk of a decrease in salaries, sometimes accompanied by a decline in the status of the profession relative to others, is that teachers incentives to provide quality teaching might become (or remain) insufficient. This worry has been expressed by the UNICEF (1999) that underlines the fact that low wages drive teachers into other activities to the detriment of teaching, or by the African Development Bank (1998) that identifies low salaries as the most harmful factor for the education sector in general. In recent years, in many developing countries high levels of teacher turnover and absenteeism have indeed become entrenched.

Training of employees,  In organizations where employees receive the proper training needed to assume greater responsibilities, turnover rates are generally lower. According to Walsh and Taylor (2007), several studies show that training activities are correlated with productivity and retention. The use of formal training programs is associated with significantly higher productivity growth. Extensive training are more likely to be captured by the firm if employees are motivated to stay and contribute to the firm‘s success fostered in part by selective hiring, competitive pay packages and team-orientated work environments. Organizations with extensive training opportunities should experience lower turnover rates. However, an interesting finding included a positive relationship between training and the discharge rate. They theorize that companies that provide more training are concerned about employee skills and performance, and thus experience a high percentage of employee terminations.

Krueger and Rouse (2008) found that general training and specific skills are many times embedded in one another. They found that employees that attended training, regardless of its specificity, became more invested employees. These employees were shown to seek more job upgrades, receive more performance awards, and have better job attendance than those that did not attend training. The general skills training program which was paid completely by the employer essentially led to less employee turnover. It can be argued that the expenditure of effort and time led these employees to become more committed to the organization. Many scholars agree that organizations that train their employees consistently have better outcomes than those that do not. When business environments change quickly and abruptly, it is typically the companies with the best trained employees that adapt and adjust most efficiently.

Glance, Hogg, and Huberman (2007) determined these statements to be accurate in their study that looked at training and turnover from the perspective of evolving organizations. The researchers affirmed that training encourages ―spontaneous cooperation‖ in many large companies. Even in fast moving and ever evolving industries, the cooperation that can be achieved through training could lessen the need for complicated company policies. This ―spontaneous cooperation‖ which results from training is due to the training participant‘s sense of debt to the company.

The main aim of teacher training is to develop educational skills that are compatible with education policies and to enable teachers to deliver these policies. According to Gustafsson, (2003), it is a complex task to define teaching practices that have an impact on student performance since what counts as an effective teaching strategy varies by student age group, personality, learning ability and social background, and different strategies call for different teacher skills. Hedges & Greenwald (2012) found that easy-to-gather, formal measurements such as student test scores, teacher qualifications and years of teaching experience are insufficient in evaluating teacher competences.

Improvement on work situation , According to Judge & Church (2000) research studies across many years, organizations, and types of jobs show that when employees are asked to evaluate different facets of their job such as supervision, pay, promotion opportunities, coworkers, and so forth, the nature of the work itself generally emerges as the most important job facet. This is not to say that well-designed compensation programs or effective supervision are unimportant; rather, it is that much can be done to influence job satisfaction by ensuring work is as interesting and challenging as possible. Unfortunately, some managers think employees are most desirous of pay to the exclusion of other job attributes such as interesting work. For example, according Kovach (1995) in a study examining the importance of job attributes, employees ranked interesting work as the most important job attribute and good wages ranked fifth, whereas when it came to what managers

Improvement on Work Environment ,  The work environment has a significant impact upon employee performance and productivity. By work environment we mean those processes, systems, structures tools or conditions in the work place that impact favorable or unfavorable individual performance. The work environment also includes policies; rules, culture, resources, working relationships, work location and internal and external environmental factors, all of which influence the ways those employees perform their job functions.

According to Clements-Croome (2000), environment in which people work affects both job performance and job satisfaction. The tasks workers perform in modern office buildings are increasingly complex and depend on sophisticated technology; and companies whose occupancy costs are increasing generally seek to reduce them without adversely affecting the workers. Such workspace decisions aspire to create an investment in employees‘ quality of life, the argument being made that measurable productivity increases will result. Dilani (2004) adds that, researchers are increasingly finding links between employee health and aspects of the physical environment at work such as indoor air quality and lighting.

Arrangement of the Workspace ,  Whereas size measures the amount of space per employee, arrangement refers to the distance between people and facilities. Robbins (2003) says that the arrangement of one‘s workspace is important primarily because it significantly influences social interaction. An employee‘s work location therefore is likely to influence the information to which one is privy and one‘s inclusion or exclusion from organization‘s events. Whether you are on a certain grapevine network or not, for instance, will be largely determined by where you are physically located in the organization. According to Zweigenhaft (1976), one topic that have received a considerable amount of attention is furniture arrangements in traditional offices. Unlike factory floors, individuals typically have some leeway in laying out their office furniture.

The work environment is also an important determining factor in teacher motivation. The teacher‘s working environment in Nigeria has been described as the most impoverished of all sectors of the labour force (Nigeria Primary Education Commission (1998). Facilities in most 30 schools are dilapidated and inadequate, (Adelabu 2003). Kazeem (1999) has recommended that greater attention should be given to improving work-related conditions of teachers to improve the quality of education. In particular, there should be improvements in the supply of teaching and learning materials and general classroom environment to improve student learning.

Luthans (1998) argues that if people work in a clean, friendly environment they will find it easier to come to work. If the opposite should happen, they will find it difficult to accomplish tasks. Working conditions are only likely to have a significant impact on job satisfaction when, for example, the working conditions are either extremely good or extremely poor. Moreover, employee complaints regarding working conditions are frequently related to manifestations of underlying problems. Teachers‘ workload, changes in the education system and a lack of discipline amongst some of the learners may be some of the reasons why teachers want to exit the profession. According to Bishay (1996), the working environment of teachers also determines the attitude and behaviour of teachers towards their work. He indicates that research has shown that improvement in teacher motivation has a positive effect on both teachers and learners. Moreover, within the teaching profession, for example, there are different working conditions based on the past allocation of resources to schools. Ngidi and Sibaya (2002) found that, in disadvantaged schools, working conditions are often not conducive to teaching and learning.

Teachers have both intrinsic and extrinsic needs. A teacher who is intrinsically motivated may be observed to undertake a task for its own sake, for the satisfaction it provides or for the feeling of accomplishment and self-actualization. On the other hand, an extrinsically motivated teacher may perform the activity/duty in order to obtain some reward such as salary. Extrinsic motivation plays an important part in people’s life. It is very important too strong in influencing a person’s behavior. Therefore, the aim of the organization should be to build on and enhance the intrinsic motivation for teachers to teach effectively and at the same time, to supply some extrinsic motivation along the way for college improvement (Kerlinger, 1993).

Dessler (2005) examined that from the perspective of teachers in schools, job performance and motivation are different. Motivation is an input to work, and job performance is an output from this motivation. From a teacher’s perspective motivation and job performance may be difficult to distinguish and motivation is often inferred from the output produced, the possibility of high motivation and low output or low motivation and high output is often not considered.

The implications of either neglecting motivation or considering it a part of job performance for the empirically observed relationship between job performance and motivation can be significant. If effort is costly for an employee, ignoring effort can bias the estimated effect of job performance, because effort should increase job performance. As satisfaction is another very important thing in terms of motivation so employees are when satisfied with their job, organization environment, salaries, rewards, then automatically get motivated and show their best efforts towards their job performance. Motivation plays a great role because it is critical for the achievement of organizational goal and to bring better teachers performance or effectiveness.

2.4 CHALLENGES IN TEACHERS’ PERFORMANCE

Teaching effectiveness has been accepted as a multidimensional construct since it measures a variety of different aspects of teaching such as; subject mastery, effective communication, lesson preparation and presentation (Onyeachu, 1996). The influence of teachers’ teaching effectiveness on the learning outcome of pupils  as measured by pupils ’ academic performance has been the subject of several studies (Adediwura and Tayo, 2007).

To this end, Blankstein (1996) had stated that pupils ’ grades and test scores are not good indicators of the quality of teachers’ instruction. In support of this view, a study carried out in Nigeria by Joshua et al. (2006) showed that Nigerian teachers condemn the use of student achievement scores as indicators of teachers’ competence, performance or effectiveness. Since pupils ’ academic scores are not the only predictors of teachers’ effectiveness, researchers have sought other fairer ways of evaluating teachers’ effectiveness.

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.