The topic of study was the impact of employee motivation on organizational productivity a case study of century bottling company. The objectives of the study was; to establish the motivational strategies currently in organizations, to find out the relationship between motivation and organizational productivity and to establish strategies to improve motivation in organizations.

The study was carried out at in Century Bottling Company. The study considered employees of Century Bottling Company, Namanve who will be from specific departments of accounts, stores, administration, procurement and sales. The study targeted a total population of 35 respondents from this departments. Since the total population in these departments include 35 respondents, the researcher will therefore choose a sample of 30 respondents. Secondary data was got from text books, journals, newspapers, and internet.

The study concludes that Salary increases are granted to eligible employees in career positions based upon their job performance. Merit eligibility varies depending upon the appropriate staff policy or collective bargaining agreement but is typically restricted to career, non-probationary employees. The amount of the increase depends upon the individual’s performance in relation to current pay and assigned responsibilities as well as performance relative to other members of the review unit, and availability of funds. The impact of motivation and benefits on employee performance and organizational effectiveness depends on the existing motivation and performance management programs at an individual 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, With a highly competitive employment market, employers need to offer their employees a compensation package that would enable them attract, retain and motivate employees. This exploratory study has shown that compensation has a direct influence on employee productivity.

The study also made the following recommendations; 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. The study recommends the following areas for further research; 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

1.0 Introduction

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

1.1Background to the Study

The relationship between Motivation and employee productivity is to the effect that when employees are properly motivated, it creates delight in their day to day work. Various studies and research have also proven that delighted employees give out their best in the workplace. However, many employers and managers do not value the impact of motivation on employee performance. As such, in trying to increase performance and thus productivity, they ignore motivation and resort to other factors such as employee competencies, process efficiency and effectiveness, technology deployment, innovation, organizational learning, and others. Employee productivity encourages the employee to get involved in the planning for the organization, and therefore anticipates by having a role in the process the employee will be motivated to perform at a high level (Kreisman, 2002).

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 & Peng, 2006).

An effective performance management action is an important tool for employee motivation for optimal performance. However, it is not an enough condition for effective performance management. The most important issue with any performance management system is how critically it is taken and how devotedly it is used by managers and employees. (Pulakos 2009).

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.

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 (Cokins 2009). To motivate employees began in the 1970’s. So many people have carried out researches in this area, cases in point are Oloko(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.

1.2 Statement of the Problem

According to auditor general report, (2015) the employees in most local governments in Uganda have been found to be less productive and do not meet their targets this has however been a big concern to the government while according to Onyango Obbo (2007). Local Governments have recently been reported as corrupt institutions, with its senior and low rank cadres cited in embezzlement, misappropriation and falsification of transactions. In addition to that most of the organization has not been able to achieve its targets as result the senior management are questioning the productivity of employees..

According to Parasuraman (2010), for organization to improve on the productivity of their employees there must be massive investments in adoption of new technologies and also training and provision of incentives to motivate employees to improve their performance, it’s against this background, that the study investigates the impact of employee motivation on organizational productivity.

1.3 Purpose of the Study

The purpose of the study was to examine the impact of employee motivation on organizational productivity.

1.4 Research Objectives

(a) To establish the motivational strategies currently in organizations.

(b) To find out the relationship between motivation and organizational productivity?

1.5 Research Questions

(a) What are the motivational strategies currently in organizations?

(b) What is the relationship between motivation and organizational productivity?

(c)What are the strategies to improve motivation in organizations?

1.6 Significance

The research findings may help the management to understand further the effect of motivation on employee performance.

The study findings will help management of to come up with better motivation techniques which will result into improved organizational performance.

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

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.

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.

The study will provide information to future scholars on the impact of employee motivation on organizational productivity.

The study will also enable academicians have information on strategies to improve motivation in organizations.

1.7 Scope of the Study

1.7.1 Content Scope

The study focused on the motivational strategies currently in organizations, the relationship between motivation and organizational productivity and the strategies to improve motivation in organizations.

1.7.2 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).

1.7.3 Time Scope

The study was carried out from February to August 2018.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter covered the review of the literature on the motivational strategies currently in organizations, the relationship between motivation and organizational productivity and establish strategies to improve motivation in organizations.

2.1 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).

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

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

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

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

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

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

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

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

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

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

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

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

2.2 Relationship between motivation and organizational productivity

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 employees agree that motivating employees 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 employees’ 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 employee and consequently hinders the performance of the pupils (Nwuju and Uzoaru, 2010).

Moreover, Idogho (2002) states that when employees 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.

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 employees. However, all employees 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. Employees’ 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.

Employee motivation has become an important issue given their responsibility to impart knowledge and skills to learners. It is argued that satisfied employees 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 employees can give best education to the pupils . Thus, for the quality of education the quality of employees matter a lot. But if the qualified employees 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 employees to deliver good quality of education. The employees can be retained successfully only if they are satisfied with their jobs. The job satisfaction leads to their superior performance and retention as well

Employees are essential for developing the future of pupils. Achievement level of pupils is directly related with the effectiveness of employees. Motivation has instantaneous effect on the course of employee 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).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2.3 The strategies to improve motivation in organizations

Proper Planning for employee work schedules; the planning function of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programs, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them (Dessler, 2010). In the modern world planning is crucial to an organization and an organization without plans is uncompetitive and when there is proper planning employees come to the organization knowing what is expected of them this enables them to set their personal goals and targets and its on;ly through planning that an organization can coordinate future organizational activities.

Creating a conductive working environment in the organization this helps employees to be motivated because when they there is good working environment employees are motivated to work and achieve organizational goals: according to Parasuraman, (2010) , the human resource Manager has to organize the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organizational objectives. In this employees are motivated to enable the organization achieve its goals and objectives this is mainly by preparation of plans in this way a personnel manager performs following functions: (a) preparation of task force; (b) allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of individual with that of the department. (Aswathatpa, et al, 2008).

Proper directing of employees is essential in enabling employees to be motivated; Directing is concerned with initiation of organized Action and stimulating the people to work. The personnel manager directs the activities of people of the organization to get its function performed properly. A personnel manager guides and motivates the staff of the organization to follow the path laid down in advance (Parasuraman, 2011).

Directing workers in an organization on is specifically important in that it helps employees to understand the users of their bosses and work according to the organizations Goals and objectives most organizations around the world like general motors, the top management has powers and authority to direct the subordinates on what to do and also make them work to their best (Parasuraman, 2001).

Giving employees’ control of organizational resources and making them feel part of the team creating success in the organization. It provides basic data for establishing standards, makes job analysis and performance appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of workers. Controlling is one of the most important functions of human resource since it directly regulates organizational performance, but most of all in a competitive world efficient control of organizational activities is crucial for an organization to stay relevant in the business.

Proper controlling can lead to improved efficiency and effectiveness in delivery of goods and services. Organizational control is a deliberate attempt to design a future course of action with view to optimize the use of resources. And organizations without a planned way to control activities are bound to fail because it had not had particular route to follow (Cole et al, 2011).

Allocation of employees in the right departments enables m otivation because when employees are employed in the job that suits their talents they are motivated and this enhances proper motivation and enables better performance, (Pattanayak, 2003).

Training of employees is essential in enhancing their motivation into the organizational activities , training helps to increase the skills of employees that is necessary for proper job performance. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function (Carppelli, 2010).

Compensation of employees enhances motivation towards the jobs of the organization; Compensation means determination of adequate and equitable remuneration of personnel for their, contribution to the organization objectives to the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function, viz., job-evaluation, remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also assists the organization for adopting the suitable wages and salaries, policy and payment of wages and salaries in right time, (Forster et al, 2004).

Maintaining Good Industrial Relation among employees is essential this is als a cardinal role of human resource managers If the personnel manager is unable to make harmonious relations between management and labor industrial unrest will take place and millions of man-days will be lost. If labor management relations are not good the moral and physical condition of the employee will suffer, and it will be a loss to an organization vis-a-visa nation. Hence, the personnel manager must create harmonious relations with the help of sufficient communication system and co-partnership (carppleli, 2010).

Provision of up to date technological equipments to employees this helps to enhance better employees performance; Adapting new technologies, in the production process advanced technological process is responsible for quality output. World major automobile manufacturers like Toyota, Nissan, ford and Suzuki invest a lot of millions of dollars in research and development in order to adapt to new technologies this enables them to produce quality products, (Handfield et al,2009). Technology mainly deals with the way things are done new and advanced technologies helps in creating a stable working environment for the employees in an organization.

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

A descriptive research design was presented; emphasizing both what is raised in the literature and the opinions of respondents about the impact of employee motivation on organizational productivity.

3.2 Area of the study

The study was carried out at in Century Bottling Company.

3.3 Study population

The study considered employees of Century Bottling Company, Namanve who will be from specific departments of accounts, stores, administration, procurement and sales. The study targeted a total population of 35 respondents from this departments.

3.4 Sampling size

Population Category	Sample Size
Accounts	10
Stores	5
Administration	5
Procurement	3
Sales	7
Total	30

Since the total population in these departments include 35 respondents, the researcher will therefore choose a sample of 30 respondents.

3.5 Data type and Sources

Source of data was from both primary and secondary sources.

3.5.1 Primary data

Primary data was obtained from the questionnaires administered on the target respondents to gain opinions and the impact of employee motivation on organizational productivity a case study of century bottling company.

3.5.2 Secondary sources

Secondary data was got from text books, journals, newspapers, and internet.

3.6 Data Collection methods and procedures

The major instruments for data collection was 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 will be able to answer factually.

3.6.1 Questionnaires

The researcher issued self administered questionnaire to the respondents who read write the questionnaires themselves.

3.6.2 Interviews

An interview is a conversation where questions are asked and answers are given. In common parlance, the word interview refers to a one-on-one conversation with one person acting in the role of the interviewer and the other in the role of the interviewee.

3.7 Data processing and analysis

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

3.8 Limitations of the study

The researcher faced the following challenges in the course of the study;

The researchers not get enough time to interview all the respondents; however this problem was solved by allocating/ budgeting for the time appropriately.

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

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 1: Showing Gender of the respondents

Gender	Frequency	Percentage
Female	12	40
Male	18	60
TOTAL	30	100

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

Figure 1: The Bar graph showing the gender of respondents

Source: Primary Data

The Bar graph above shows that majority of the respondents are male at century bottling company it also shows that the male gender dominates the respondents group at century bottling company

This also shows that the respondents are mainly male and it also shows that the male gender dominates the respondent’s percentage at century bottling company

4.1.2 Age group

Table 2: Showing different age groups of the respondents

Age groups	Frequency	Percentage
18-25	7	23
26-35	10	33
36-45	8	27
Over 45	5	17
TOTAL	30	100

Source: Primary data

From the findings, 23% of the respondents were aged between 18-25, 33% of the respondents were between 26-35 , 27% of the respondents were between the age bracket of 36-45 while 17% of the respondents were between the age bracket of over 45 . This therefore indicated that data was gathered from respondents who are in an overwhelming stage with bright ideas in relation to the present environment.

Figure 2 : The graph showing different age groups of the respondents

Source: Primary Data

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

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

4.1.3 Period worked with Century Bottling Company Limited

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

Period worked	Frequency	Percentage
Under 1 year	2	7
1-3 years	6	20
4-5 Years	10	33
Above 5 Years	12	40
TOTAL	30	100

Source: Primary data

The findings revealed that 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, 27% of the respondents worked with the organization between 4-5years while 20% of the respondents worked with Century Bottling Company Limited above 5years this therefore indicated that information was gathered from experienced respondents.

Figure 3: The pie chart showing the period the respondents have worked at century bottling company

Source: primary data

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

4.1.4 Levels of education

Table 4: Showing the different levels of education in Century Bottling Company Limited

Level of Education	Frequency	Percentage
Diploma	1	7
Masters	12	13
Degree	7	47
PHD	10	33
Total	30	100

Source: Primary data

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

Figure 4: The bar graph showing the education level of respondents at century bottling company

Source: Primary data

The bar graph above shows that majority of the respondents are masters’ degree holders at century bottling company, while PHD holders has got the second largest majority of the respondents this is shown by a large percentage of the respondents, the percentage of the respondents who have degree is also considerably large and very few respondents have diploma this shows that diploma percentage is low.

This therefore shows that century bottling company has highly well educated class of employees and therefore the filling the questionnaire was a not a problem to this respondents. It also shows that the respondents were well vast with the questionnaire so filling in the questionnaire was not a problem to them.

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

Table 5: Response on the type of employment contract with Century Bottling Company Limited

Age groups	Frequency	Percentage
Permanent	7	23
Contract	10	33
Temporary	8	27
Casual	5	17
Total	30	100

Source: Primary data

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

4.2 Findings on the different motivational strategies used in the organization

The findings revealed that most of the respondents indicated that Century Bottling Company Limited offers Variable pay as compensation form. This therefore indicates that Century Bottling Company Limited uses different compensation forms and others include Profit sharing, benefits, salaries and wages, recognition and gain sharing.

Findings indicated that recognition of employee by the management is essential in ensuring that there is better performance, The researcher found out in agreement with Armstrong & Murlis (1994 ) and Flannery et al, (1996) ,that appreciation can be achieved in various ways such as naming the employees who have done well in the 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.

The results found out team work was essential in motivating employees, what the researcher found out in agreement with Marler (2000),, that when your employees function as a team, you ought to think like a coach; reward the whole group for a job well done. He says this will boost morale both personally and collectively. Employee incentive programs such as small bonuses serve to better the morale of an individual employee and that of a group as a whole by making them more satisfied. This is in agreement with (Likert, 2004), study which concluded that since everybody wants to feel appreciated and special for the work done, they can therefore be motivated by appreciating them and making them feel special.

From results indicates that century bottling company paid employees basing on work done.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

The researcher found out that 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.

The findings from the study indicated that stock options motivated employee. The researcher found out that in agreement with Jones(2001), that previously the territory of upper management and large companies, stock options have become an increasingly popular method in recent years of rewarding middle management and other employees in both mature companies and start-ups, employee stock-option programs give employees the right to buy a specified number of a 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. The number of options a company can award to employees is usually equal to a certain percentage of the company’s shares outstanding.

The results indicates that salaries paid to employees at work motivated them to work. 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 Relationship between motivation and organizational productivity

The findings from the study indicates that employees understanding goals was essential in motivation. This is also in agreement with Blanchard (2003) , that employees are responsible for implementing the activities and behaviors necessary for an organization to function, and are to link such attitudes to organizational performance. The results of these efforts have often been equivalent both in terms of the nature of the incentives and whether the incentives are direct or indirect but focusing on increasing performance of employees.

This results were also in line 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.

The results indicated that training is essential in motivation, 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

The results also indicates that attitude towards the job is important in motivation by employee. Findings indicated that there are prevailing sets of attitudes about the job and work environment in Century Bottling Company Limited. The researcher found out that both cognitive and overt skills (psychomotor skills) collectively produce a person’s expertise or know-how therefore Training and Education is seen as the process utilized to induce or change in human behavior.

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

The results also indicates that introduction of new technology is important in employee performance. 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.

Results indicates that attitude of employees is essential in better performance. 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 strategies to improve motivation

The study results indicate that motivation strategies are essential in enhance ment of performance in an organization. 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.

The findings indicate that compensation is essential in enhacing better employee performance. 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.

The findings in the study indicates that compensation of employee is essential in enhancing better performance. 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 6: Responses on whether the effects of motivation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment

Response	Frequencies	Percentage (%)
Strongly agree	7	23
Agree	9	30
Not sure	4	13
Disagree	5	17
Strongly disagree	5	17
Total	30	100

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.

The results indicates that motivation of human resource tools are essential in motivation, 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.

The findings also indicates that employees pay has a strong influence on their motivation. 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.

5.1 Discussion of findings

5.1.1 Findings on the different motivational strategies used in the organization

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

Findings revealed that appreciation can be achieved in various ways such as naming the employees who have done well in the 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 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.

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

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

5.1.2 Findings on the relationship between motivation and organizational productivity

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

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

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

Findings revealed that attitude and behaviors are one of the factors affecting employee performance in 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.

5.1.3 Findings on the strategies to improve motivation

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

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

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

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

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

The impact of motivation and benefits on employee performance and organizational effectiveness depends on the existing motivation and performance management programs at an individual 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.

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

5.3 Managerial and Policy Recommendations

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.

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.

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.

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.

5.4 Areas of further research

The impact of compensation on consumer buying behavior in organization
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,

I am Naluggwa Manjeri a student of Kyambogo University, am carrying out a study on the above stated topic. You are one of the respondents randomly selected to participate in the study. The information given shall be treated with utmost confidentiality and shall only be used strictly for academic purpose.

SECTION A: BIO DATA

Please indicate a tick ( ) against your choice

Sex of the respondent

Male

Female

Age bracket of the respondent

18 – 25 36 – 45

26 – 35 Over 45

Highest level of Education

Certificate Diploma Bachelors

Masters PHD primary

Secondary

Work experience?

Under 1 year 1-3 years 4-5 Years

Above 5 Years

Employment status?

Permanent Temporary Casual

Contract Others specify;………………………….

Department?

Operations and Transport HR and Customer care

Technical and Engineering Finance and Accounts

Marketing and Sales

SECTION B: The different motivational strategies used in the organizations.

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Mention motivation strategies used currently in the organization.

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SECTION C: Relationship between motivation and organizational productivity

Mention how motivation impacts on organizational productivity.
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SECTION D

STRATEGIES TO IMPROVE MOTIVATION IN ORGANIZATIONS.

Give strategies that can be used to improve motivation with in an organization.

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THANK YOU FOR YOUR COOPERATION