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MOTIVATION AS A TOOL FOR PRODUCTIVITY IMPROVEMENT (A CASE STUDY OF NIGERIAN SECURITY PRINTING AND MINTING COMPANY PLC)
The purpose of this study is to attempt an evaluation of the effect of motivation on productivity improvement. It is a case study of Nigeria’s oldest and major security documents corporation, the Nigerian Security Printing and Minting Company Plc. The manner in which an organization selects its employees and the reward system adopted to compensate them, total pay and benefits paid, opportunities for personal development on the job as well as the recognition they enjoy in terms of enhanced pay, status and prestige can go a very long way in enhancing their morale and satisfaction on the job. Performing employees can fast track the growth and development of their organization. In this study, three hypothesis were posed and tested. It has long been known that specific components of overall performance, individual behavior and actions of employees tend to be driven by needs, values and the extent to which they are being addressed. Based on the findings of this study, it could be stated tentatively and within the framework of the research design and methodology, that there is a positive relationship between motivation and workers’ productivity.
Consequently, whatever a business enterprise can do in order to boost the morale of the employees and keep them motivated would generally enhance their performance. One of the three hypotheses posed and tested in this study clearly shows that there is a strong and positive relationship between leadership style and employee morale. How employees feel about the work place and how they perceive the leadership style of their supervisors can impact strongly on the business bottom-line because people are largely responsible for nearly all the problems of the business enterprise. Similarly, the solutions must come from people.
Employees are undoubtedly the most important assets of the organization and this is particularly true of the business enterprise. Managers and supervisors therefore need to understand how to vary their managerial styles in order to respond to the changing requirements of their subordinates. However, performance depends on many factors. In this context, ability, effort, organizational resources, leadership style and organizational climate/environment are vital in inducing good performance. Furthermore, managers should never ignore the needs of their subordinates so that the most appropriate set of incentives could be applied to motivate different categories of employees. This is very important in building and sustaining good performance.
The three hypotheses posed and tested in this study tend to support the long held view that workers’ productivity can be enhanced by influencing their behaviour since high employee morale is a pre-requisite for motivating higher output and improved performance. Furthermore, in the context of the research design and methodology, the study found that there is a positive relationship between employee morale and employee productivity. In addition, it was discovered that there is a positive and strong relationship between motivation and workers’ productivity.
TABLE OF CONTENT
Table of Content vi
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Purpose of the Study 4
1.4 Research Questions 5
1.5 Research Hypothesis 5
1.6 Significance of the study 6
1.7 Scope of the Research 6
1.8 Definition of terms 7
CHAPTER TWO: Review of Literature
2.1 Introduction 9
2.2 Productivity 9
2.2.1 Management Prerequisite 10
2.2.2 Employees Pre-requisite 11
2.3 The Nigeria Worker and Productivity 11
2.4 Productivity Measurement 12
2.5 Motivation 12
2.6 Studies on Motivation 14
2.6.1 Abraham Maslow’s Hierarchy of needs 15
2.6.2 Herzberg’s Two-factor theory of Motivation. 17
2.6.3 Other Theories, such as Expectancy/Valence/Instrumentality Theories 18
2.6.4 Perceiving that action will result in performance 19
2.6.5 Valence 19
2.6.6 Practical Job Design 22
2.7 Implications for people management 25
2.8 Lesson for Managers and Workers Alike 25
2.9 Interaction of Key Variables in Strategy and Compensation 29
2.10 The Human Capital Value Circle 31
CHAPTER THREE: Research Methodology
3.1 Introduction 33
3.2 Research Questions (Restated) 33
3.3 Research Hypothesis (Restated) 33
3.4 Population of Study 34
3.5 Sampling Method 34
3.6 Data Analysis Technique 35
3.7 Limitation of the methodology 36
CHAPTER FOUR: Data Analysis
4.1 Introduction 38
4.2 Personal Profile 38
4.3 Reward Profile 39
4.4 Training Profile 40
4.5 Supervisory Profile 41
4.6 Communication 43
4.7 Hypothesis Testing and Finding 44
4.8 Implications of Finding 47
CHAPTER FIVE: Summary Recommendation and Conclusion
5.1 Summary 48
5.2 Recommendation 48
5.3 Suggestions for further studies 49
5.4 Conclusion 49
1.1 BACKGROUND TO THE STUDY
Human motives have a way of being driven by needs although the process may be somewhat complex and subconscious. Some are primary needs such as physiological requirements for water, air, food, sleep and shelter. Other needs may be regarded as secondary, such as self-esteem. Status, affiliation with other affection, accomplishment and self-assertion.
People participate in an organized enterprise and indeed in all kinds of groups in order to achieve some goal that they cannot attain as individuals. The question arises as to what activities will people be willing to take up at any point in time and why? This is where motivation comes in.
According to Berlson and Steiner (1964) motive “is an inner state that energizes, activates moves (here motivation) and directs or channels behaviour towards specific goals. In other words, motivation is a general term applying to the entire class of desire, needs, wishes and similar forces. There are things, which satisfy these drives and desires, they may include higher pay; a prestigious title, and a name on the office door and a host of other things, including a reserved space in the car park or company’s parking lot.
To be sure, while motivation reflects wants, it is perceived reward or incentive that sharpens the drive to satisfy these wants. It is also the means by which conflicting needs may be reconciled or one need may be accentuated so that it will be given priority over another. An incentive that is designed to motivate therefore is something that influences an individual’s behaviour. It makes a difference in what a person will do. Obviously in any organized enterprise, managers must be concerned about motivation and incentives.
A manager is anyone who gets results through people. The need to attain higher levels of labour productivity is generally accepted in all economies and by employers and trade unions alike. It is only in this way that returns to the enterprise investment can be maximized that wages can be sustained in real terms and economic benefit achieved at national level.
A reasonable manager is expected to give special attention to his employee through whom the envisaged results are to be accomplished. The employee must be adequately motivated.
At this point, a little background into our case study – This Nigeria Security Printing and Minting Company Limited, otherwise known as “the MINT”, becomes relevant. The MINT, which was established in 1963, commenced production in 1965. During its 35 years of operational existence, the MINT had grown from a one-product line company to a sizable multi-product security printing, self-financing and self-sustaining organization with staff strength of about 2000 indigenous. Highly qualified and experienced technical and professional men and women. The company has continued to fully satisfy the country’s security printing and minting needs, in further exploring the larger foreign market.
The MINT is a private limited liability company incorporated in 1963 with the Federal Republic of Nigeria represented by the Ministry of Finance incorporated as the majority shareholders. Thomas De la Rue Plc. Technical Partners and Central Bank of Nigeria as the third shareholder. The current shareholding is as follows:-
v Ministry of Finance Incorporated 55%
v Thomas De La Rue Plc 25%
v Central Bank of Nigeria 20%
The primary objectives of the company is to supply to government and various ministries of government, and to the Central Bank of Nigeria, all printed materials including (but limited to) banknotes, coins, postage stamps, postal and money orders and other security printing requirement. A 9 – man Board of Directors is responsible for the overall strategic policy decisions of the company. The day to day affairs of the company is managed by a top management team comprised of Managing Directors, 3 Executive Directors and 6 General Managers.
As part of its expansion strategy, the company identified the local sourcing of its raw materials as logical first step. It accordingly embarked on the establishment of two companies in partnership with selected technical partners for the production of security inks and papers in Nigeria. The ink factory, Tawada Limited, has been completed and was commissioned in 1997. the MINT in 1988, also acquired a majority interest in Pacific Printers (Nig.) Limited (PPNL), a company that has been engaged in commercial printing since 1935. The acquisition was aimed at complementing the capacity and in keeping with Federal Government decision to move the Federal capital to Abuja; the Company commenced the construction of a new office/factory complex and residential quarters in the new Federal Capital. The corporate headquarters of the company has since been relocated to Abuja. Despite all these laudable innovations and colossal investment by the Management of the MINT, productivity of worker started dwindling in 1991 occasioned by industrial unrest. Since 1991, there has been study decline in productivity leading to inability to meet customer’s demand.
The company has laudable objectives that will be of immense benefit to the growth of the country’s economy if labour productivity is given its pride in the scheme of things.
Therefore, this study is to find out the effect of declining productivity on a sample of workers of the MINT, identify the cause and give suggestions and recommendations aimed at enhancing labour productivity based on the tools of MOTIVATION.
1.2 STATEMENT OF THE PROBLEM
The decline in labour productivity of the staff of the MINT has been an embarrassing issue to the Management, workers, customers and interested observers and industrial analyst, for the purpose of this study, the cause of decrease in labour productivity of the workers would be thoroughly examined. This canker-worm posses a sort of threat to the company’s economic viability as well as its future development. Therefore, this research paper focuses on the issue of human motivation as a tool of enhancing labour productivity within the organization of the MINT. The key factors responsible for this downwards trend can be classified into three categories; changes in company’s policy, ineffective leadership style and management workers communication gap.
The fluctuations in company’s policy since 1991, when the management initiated some unprecedented changes into its policies like indiscriminating retrenchment of workers, cancellation of in incentives and suspension of the joint consultative committee (JCC). Tasks of workers were thus increased within the organization within corresponding adjustment of financial rewards and other extrinsic benefits. Some of the cancelled incentives are the staff canteen. Staff bus facilities, services of staff hospital to some staff, no more overtime payment to administrative senior staff. The suspension of Joint Consultative Committee, the only means of management – workers dialogue, brought about a wide communication gap. Thus, the problem of this study is to know the effect of motivation on the success of the MINT.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to evaluate the role of motivation as a tool for inducing employee productivity. It is a case study of the Nigerian Security Printing and Minting Company (NSPMC) Limited, also known as MINT. People make and implement decisions which influence the course of the destiny of organizations where they have the opportunity to serve. However, Emerson (1962), Belcher (1984) and Fajana (2002) among other notable researchers and Scholars have noted that the relationship between employees and employers is an exchange process because the employer exchanges pay for the services of the employees. In other words, the employee offers his services to the employer in exchange for the pay and benefits received from the employer.
Consequently, the extent to which employees commit to the strategic objectives and short-term goals of their organizations may, in fact, be influenced by the level of remuneration and other benefits enjoyed as well as the way they perceive such remuneration as equitable and commensurate with the quality of services provided by them. As a result, the satisfaction enjoyed by the employee may, in fact, depend on many factors but especially, the degree of motivation and other incentives that go with the job. Apart from their compensation (salaries and benefits), employee performance and behaviour have been found to be susceptible to the leadership style and organizational climate.
Among the objectives of the study are the following:
i) Identify the mission of the Nigerian Security Printing and Minting Company (NSPMC) Ltd.
ii) Identify the vision of the NSPMC Ltd
iii) Identify the importance attached to motivation by the MINT.
iv) Assess how employees perceive their pay and other incentives as part of management’s approach to motivation.
v) Assess the relationship between employee morale and workers’ productivity.
vi) Assess the relationship between employee motivation and productivity.
vii) Evaluate the relationship between motivation and employee productivity.
viii) Identify any weaknesses in MINT’s current approach to motivation and the use of incentives.
ix) Make useful and relevant suggestions, based on the findings of the study, as to what improvements could be made in the area of motivation and employee productivity.
x) Based on the findings of the study, to make recommendations to the management of the company as to those specific areas where improvements are likely.
1.4 RESEARCH QUESTIONS
i) What is the mission of the MINT?
ii) What is the vision of the MINT?
iii) Does INT have a formal program that keeps employees motivated?
iv) Is there a relationship between Motivation and Workers’ Productivity?
v) Is there a relationship between employee morale and productivity?
vi) Hoe effective is MINT’s reward system in inducing workers’ productivity?
vii) Does leadership style influence workers’ morale?
viii) If indeed it does, to what extent does leadership style workers’ morale?
1.5 RESEARCH HYPOTHESIS
H0: Null Hypothesis: There is no relationship between Motivation and workers productivity.
H1: Alternative Hypothesis: There is a relationship between Motivation and workers productivity.
H0: Null Hypothesis: There is no relationship between Leadership Style and employee morale.
H1: Alternative Hypothesis: There is a relationship between Leadership Style and employee moral.
H0: Null Hypothesis: There is no relationship between employee morale and Productivity.
H1: Alternative Hypothesis: There is a relationship between employee morale and Productivity.
1.6 SIGNIFICANCE OF THE STUDY
The MINT has been having serious and seemingly insurmountable headache about the decline in workers’ productivity and efficiency for more than a decade. Many reasons could be adduced for this sad turn of events; however, it has not been possible to date to put a finger on the specific issues despite the fact that successive managements of the company have made spirited efforts at resolving the problem.
They have not gone to the grass-root to pinpoint the specific issues as they affect the workers as part of the concerted efforts aimed at resolving this critical situation, the Board of Directors of the MINT have held various meetings with a view to finding enduring solutions to this problem. The workers’ representatives, management and consultants have met several times on this issue in order to banish this canker worm that has eaten so deeply into the fabrics of the company. In spite of the several meetings and strategies adopted, achievement so far has been next to nothing, mainly because. This is the challenge of this study and constitutes one of the boldest attempts that have been made in this regard.
Consequently, the recommendations, based on the findings of the study would make significant and very useful contributions to the existing literature. Not only htat, it would prove invaluable to the management of the MINT as it actively seeks to provide a workplace that employees find conducive and a place that workers can look forward to on an ongoing basis.
This study will make positive contributions as it will attempt an empirical evaluation of the relationship between motivation and workers’ productivity. It will also attempt to examine the type and strength of relationship between employee morale and productivity. Needless to state, these factors impact the capacity of the employee to perform to the desired standards in the workplace.
1.7 SCOPE OF THE RESEARCH
This research is limited to the effect of motivation on workers’ productivity in the MINT. The research is based on a sample which consisted mainly of respondents taken from among workers of the MINT as well as a small sample of respondents purposively selected from a group of knowledgeable and experienced professionals and managers.
There is the possibility that the same set of respondents may provide a completely different set of responses at a later date, especially if there was a change in management. The study is limited in scope to the employees of the MINT and a small sample which comprised of a few other managers and professionals, as earlier described. However, motivation as a concept has almost universal application.
1.8 DEFINITION OF TERMS
- Work: Refers to a continued physical or mental exertion or activity directed to some purpose.
- Motivation: This consists of a set of driving forces or an identifiable state of need which could incline a person to behave in a particular manner or to develop a capacity for certain types of behaviour.
- Motivating: Refers to the act of creating and maintaining employee attitudes capable of influencing them to subordinate their personal objectives, however, significant such objectives may be, to the super ordinate goals of the organization.
- Productivity: Refers to the units of goods/services produced per worker in a given period of time.
v. Organization: A number of individuals systematically united for some end, or work as a business partners to achieve a designated objective.
- Motive: This is the why and reasons for every behaviour. There is always a reason behind whatever we do.
- Fringe Benefit: This means added favour or services given with a job besides wages and salaries. For examples, free health services, free accident insurance, free luncheon vouchers etc.
- Bonus: This is payment made to employee at the discretion of the management in questions. It has no laid principle but it may be as a result of profit made at the end of the year or based on the quality and quantity of work.
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