Daniel Commented
Daniel Commented
Daniel Commented
DILLA UNIVERSITY
DEPARTMENT OF MANAGEMENT
JANUARY, 2020
DILLA ETHIOPIA
Contents
CHAPTER ONE..............................................................................................................................................4
1. Introduction.............................................................................................................................................4
1.1. Background of the study.......................................................................................................................4
1.2. Statement of the problem....................................................................................................................6
1.3. RESEARCH QUESTION...........................................................................................................................7
1. 4 Objectives of the study.........................................................................................................................7
1. 4.1 General objective...............................................................................................................................7
1.4.2 Specific Objectives..............................................................................................................................7
1.5. Significance of the study.......................................................................................................................8
1.6. Scope of the study................................................................................................................................8
1.7. Organization of the paper.....................................................................................................................8
CHAPTER TWO.............................................................................................................................................9
2. Review of related literature.....................................................................................................................9
2.1. What is motivation?.............................................................................................................................9
2.2 Source of motivation...........................................................................................................................10
2.3 The importance of employee motivation............................................................................................10
2.4 Theories of motivation........................................................................................................................11
2.4.1. Maslow theory hierarchy of need theory........................................................................................11
2.4.2 ERG theory........................................................................................................................................11
2.4.3 Equity theory....................................................................................................................................12
2.4.4 Two factor theory.............................................................................................................................12
2.4.5 David McClelland theory..................................................................................................................13
2.4.6 Goal setting theory...........................................................................................................................13
2.5 The relationship between motivation and productivity......................................................................14
2.6 Motivation, job satisfaction and performance....................................................................................15
2.7 Consequence of job dissatisfaction.....................................................................................................16
2.8 Ways to motivate employees..............................................................................................................17
2.9 Employee motivation impact on organizational performance.............................................................20
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2.9.1 Improve productivity........................................................................................................................20
2.9.2 Reduction in productivity.................................................................................................................20
2.10 Empirical study..................................................................................................................................20
CHAPTER THREE........................................................................................................................................23
3. Research Methodology..........................................................................................................................23
3.1 Research design...................................................................................................................................23
3.2 Data type and source...........................................................................................................................23
3.3 Data collection method.......................................................................................................................23
3.4 Population of the study.......................................................................................................................23
3.5 Sample size and sampling method......................................................................................................24
3.6 Method of data analysis and presentation..........................................................................................24
CHAPTER FOUR..........................................................................................................................................25
4. Work plan and cost budget....................................................................................................................25
4.1. Work plan...........................................................................................................................................25
4.2. Cost budget plan.................................................................................................................................26
REFERENCE................................................................................................................................................27
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CHAPTER ONE
1. Introduction
The success of any business depends largely on the motivation of the employees. Human
resources are essential to prosperity, productivity, and performance of any company and play a
vital role in achieving both the long run and short run objectives of the organization. . Motivation
is the key to creating an environment where the optimal performance is possible (Macmillan
India Ltd, 2005).
Motivating your employees is vital to any business a motivated workforce means highly
productive staff all of which help you achieve your business goals and business plans.
Motivation is an effective instrument in the hand of managers for inspiring the work force and
creating confidence in it. By motivating the workforce management creates well to work which
is necessary for the achievement of organizational goal (Chhabra, 2010, 2004).
Employee motivation affects productivity and part of manager’s job is to channel motivation
towards the accomplishment of organizational goal (Gray and Starke, 1998). Reward system in
the organization or in the work place include have appraisal for employees as well as integration
that is targeted at making important by making sure that there is clear flow of information to and
from the employee in the organization (Emery, 2009).
People are energized by psychic reward they get from the working on intellectually stimulating
and challenging technical problems as well as potentially beneficial global impact on their
working Finding and keeping talented workers is a growing challenge. Managers must have to
find the right combination of motivational techniques and reward to keep people satisfied and
productive in a variety of organizational situations. To achieve such type of activity they use
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motivational system to motivate the employee to perform more, (Dutchman, 2005). but the
reason to conduct this study is if there is unattractive way of motivation that the organization
uses which makes the employee dissatisfied and negative attitude towards the organization.
These in turn were an impact on the productivity of the organization. Therefore this study was
investigate the impact of employee motivation on productivity in Hassen Reshid flour factory.
Motivation is a crucial for organization to function without motivation employees was not put
up their best and the company performance would be less efficient (Halpota, 2005). . Many
managers are limited rewards for individual they can distribute which make it difficult to
individualized rewards moreover some managers incorrectly assume that all employee want the
same thing this overlooking the motivational effect of differentiating reward in either case,
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employee motivation is sub maximized because the employees specific need has not being meet
through the reward structure (Robbins Stephen, 1943). Motivation is a power full tool in
environment that can lead to employee working at their most efficient level of production. Many
studies indicate that there are links between employees’ motivation and productivity. In order to
meet organization targets, some institutions need to motivate their employees. A simple
statement, almost self-evident in any organization, yet it has probably caused more controversy,
applied research and practical advice than any other assertion in the history of management
writing and thinking (Kavanagh, 1997). According to Arif Jemal (2011) research of Jimma
University investigated that the financial related motivation to motivate employees rather than
employee’s attitude toward the motivational practice of the organization. There is no
documented evidence indicating that the same study was done in Hassen Reshid flour factory in
dilla town. Therefore this study aims to investigate the impact of employee motivation on
productivity in Hassen Reshid flour factory.
Does Hassen Reshid flour factory provide motivational factor or not in order to motivate
the employee?
What are the ways of employee motivation practice in the organization?
What type of impact employee motivation imposes on productivity?
What is the problem that associated with employee motivation on productivity .
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1.4.2 Specific Objectives
In addition to the above general objective this study has the following specific objective
To identify the motivational factor that Hassen Reshid flour factory provides to
employees in order to motivate employee.
To investigate the way of employee motivation practice in the organization.
To investigate the impact of employee motivation on productivity.
To identify the problem associated with employee motivation on productivity.
The study was also a good guide for the researcher use as secondary sources for further impact
studies and detail investigation about the impact of employee motivation on productivity, and
finally the study will help the researchers to acquire more skill and experience in the research.
The first chapter that deal with back grounds of the study, statement of the problem, objective of
the study’s cope of the study, significance of the study, and limitation of the study. The second
chapter reveals literature review. The third chapter shows that the research methodology .The
four chapter deals data analysis and interpretation while the fifth chapter includes conclusion and
recommendation.
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CHAPTER TWO
Motivation has been defined in different way by different authors; there is no single universally
accepted definition for this term. To mention few, motivation was defined as stimulation to
action resulting from the individual’s desire to reach or established goal or purpose (Smith
1961:584).
It has also defined as those Psychological processes that cause the arousal and persistence of
voluntary action that are goals directed (T.R. Mitchell 1982:80).
Those from the above definitions we understand that motivation is orating a force in and
individual that cans him, her towards desired action.
1. Extrinsic motivation
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It is related to tangible rewards such as salary and fringe benefits, security promotion, contracts
of service, work environment and condition of service. There is what need to be done to or for
people to motivate them often determined the organizational level and may be largely outside the
control of individual managers. Extrinsic motivation can have an immediate and powerful effect
but will not necessarily last long (Mullins, 2005)
2. Intrinsic motivation
These is related to psychological rewards such the opportunity to use one ability, assess
challenge and achievement receiving, appreciation, positive recognition and being treated in
caring an considerate manner psychological rewards are those that can be usually determined by
the active and behaviors of the individuals managers(Mullins2005). Intrinsic motivation are
concerned with quality of work life are likely to have a deeper and longer term effect because
they are inherent individual and not imposed from outside (Armstrong, 2006).
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2.4 Theories of motivation
a. . Physiological need:-these are the most basic human physical needs including, food, and
water, and sex, shelter. In the organizational setting these are reflected in the needs for
adequate heat, air and a base salary to ensure survival.
b. Safety need: - these need reflect the needs for a safe and secure Physical and emotional
environment and freedom from threats that is freedom from violence and for ordinary
society.
c. Belongingness need: - the desire to accept by once peers, have friendship, be part of
group and beloved. In organization this needs influence good relationships with
coworkers, participations in work group and a positive relationship with supervisors.
d. Esteem need: - related to the desire for a positive self-image and to receive attention,
recognition, and appreciation, others with in organization esteem needs reflect a
motivation for recognition, an increase responsibility, high status and credit for
contribution to the organization. (pass, 2005)
e. Self-actualization: - they concern developing once full potential, increasing once
competence and becoming better person.
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3. Growth need: - this focus on the development of human potential and desire for
personal growth and increased competence.
Equity theory proposed that people are motivated to seek social equity in the reward the expect
for performance (Adam, 1963).
According to equity theories if people perceive their compensation as equal to that which others
receive for similar contribution they will believe that there treatment is fair and equitable people
evaluate equity by a ratio of input to outcomes.
Input to a job includes education, experience; effort and ability from the job include pay,
recognition, benefit and promotion.
Fredrick Herzberg developed another popular theory of motivation called the two factor theory
(Herzberg, 1968
Herzberg interviewed hundreds of workers about times when they were highly motivated to
work and other times when they were dissatisfied and unmotivated at work.
The first cased hygiene factors involves the presence or absence of job dissatisfied such as
working conditions, pay, company policy and interpersonal relationship when hygiene factors
are poor work is dissatisfaction they do not in themselves cause people to become highly
satisfied and motivated in their work. The second set of factors does influence job dissatisfaction.
Motivation is high level needs which include achievement, recognition responsibility and
opportunity for growth. Herzberg believed that when motivators are absent workers are neutral
towards works, but when motivators are present workers are highly motivated and satisfied. Thus
hygiene factor and motivator represent two distinct factors that influence motivation.
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2.4.5 David McClelland theory
David McClelland his associate John Atkinson proposed another important theory of motivation
and achievement of motivation.
1. Need for achievement - the drive to excel to achieve in relation to a set of standard to
strive to successes. Employees are work harder when they perceive that they will receive
personal credit for their effort. When there is only moderate risk of failure and when they
receive feedback about past performance.
2. Need for power – power motivation is drive to influence people and change situation.
Power motivated people wish to create an impact on their organization and are willing to
tacking risk to do so once their power is obtained it may be uses either constructively or
distractively.
3. Need for afflation – the desire for friendly and interpersonal relation. Afflation oriented
people work better when they are complemented for their favorable attitudes and
cooperation. They receive inner satisfaction from being with friends and they wants the
job freedom develop this relation.
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motivated employees. When employees are satisfied and happy then he or she does his or her
work in a very impressive way and then the result will be good. Employees who are more
satisfied and highly performing in their work and with tasks giving to them have a big motivator
to work harder and encourage others to do the same which affects the businesses p productivity
positively (Hsiu-fen, 2007).
Job satisfaction actually an enjoyable and exciting emotional condition which same gate in their
work. Job satisfaction is important for reducing turn over and increasing motivation [Locke,
1976].
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1. Employee absenteeism
Less satisfaction employees are more likely to be absent from work. It is only natural to assume
that if individuals dislike their jobs then will often call in sick or simply look for a new
opportunity [Chenoa and farr, 1980]
2. Employee turnover
Turn over distributes normal operation and continuously replacing the employee who lives in
costly and both technical and economical undesirable. One obvious factors affecting turn over
would be on economic down turn over during which unsatisfied workers may not have other
employment opportunities (cars ten and Spector, 1987).
3. Early retirement
Employee who choose early retirement tend to hold less positive attitudes ,challenges and work
opportunity are less likely to sick requirement then employee with lower jobs.
Individual who are dissatisfied with their jobs when job dissatisfaction strikes it is merely on
emotional states in response to the emotional state people will devise an alternative plan that is
dependent upon the individual his estimation of the situation and his own capabilities or
aspiration [Henna and locke,1995].
FUN
Same workers are really wanted to enjoy the tasks they perform at work. Leaders can do make
the work place and the experience of works more enjoyable for workers.
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2. Find way assign more of the tasks they enjoy and fewer of the once they do not like to do.
Rewards
Reputation
1. People motivated by reputation have a strong need to enhance their image or esteem with
others.
2. Many workers will not work hard unless they believe their efforts will be noticed and
recognized.
3. Give workers lots of feedback about the way they are performing tell your workers that
appreciate the work they do.
4. Tell people they are important both to the business and to you.
6. Give out certificates of appreciation to anyone who does extra ordinary well for the company.
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8. Put up pictures and biographies of all your employees in a central place.
Challenges
* Stay out of their way and let them do the work if they know how to do it.
* Give autonomy to structure and perform their job as they see best.
Nine ways to motivated high in purpose or goal internationalization are listed below.
Individuals where motivated by purpose look beyond themselves. What matters to person
motivated by strange sense of purpose is that they must believe in what the organization doing.
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I. Include workers in visioning and strategic planning process so that feels they have astak
in the organizational out comes.
When organization improve the efficiency of employees through motivation it also improve
overall productivity, reduce cost (Guceno, 2002).Productivity measures how efficiently resource
are employed it is defined as the ratio of specific measure of output to specific measure of input
per unit of labor and it measures the total output divided by the number of unit of labor employed
to produce that output (William, 1997).
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(2008) stated in his research that entitled assessment on factors that influencing teacher’s
performance. The study used questionnaire technique whereby 86 respondents were involved.
Data were analyzed by using Statistical Package for Social Science SPSS whereby the study
suggested that that no single individual person can motivate others but can only create conditions
for others to be self-motivated.
Motivated employees tend to play essential roles within an organization whereby making them
essential and beneficial. Motivating employees according to Sanzota (1997) is thus not an easy
task. Employees are likely to be motivated in diverse ways taking into consideration their various
positions or ranks within the organization. For example an employee may be motivated when
entrusted with many responsibilities and being allowed the freedom to take contingency
decisions whilst another may prefer monetary rewards. In order for employees to be efficient, it
is necessary for management to understand what actually motivates their employees within the
environment of the roles employees perform. This is basically due to the fact that strategies
involved in the process of employee motivation are considered not to be static. Additionally, as
employees draw closer to retirement, the delight attained in work satisfaction becomes more of a
de-motivator (Roberts, 2005).
However, Maryam, (2013) several factors are involved in the life of any organization; the most
important of these factors include labor, machinery and
Capital, among these factors, the most important and most effective is labor or human resources
because labor is the creator source for efficiency of machinery, capital, materials, and the other
factors. Today, one of the major problems of organizations is to develop techniques that bring the
will and interest for success to employed personnel in the organization.
However, productivity also depends on individual capability and environment fitness as well as
motivation. To reach a higher level of motivation, an individual should firstly decide to do a job,
and the proper materials and tools must be provided for him/her to perform the work. Absence of
each of these contexts will harm the productivity, thus the manager shall ensure that the above
conditions are provided. Searching in the field of motivations replies the questions about human
behavior. Regarding the different motives, people do things differently. Even in the case that the
individuals have the same motives, motivation intensity of different individuals differs from each
other, which is due to personal distinctions. Work motivation is a set of energetic forces that
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originate both within as well as beyond an individual’s being, and determines the form, direction,
intensity and duration of a work-related behavior (Latham and Pinder, 2005).
Motivation is an internal state and force, which encourages the individual to take a specific
action. What is considered to be important as a motivation for particular individual or group may
be not important for another individual or group. In other words, the individual him/herself and
the context in which he/she operates are the most important factors affecting on motivation
(Gandalf, 2005). Studied the effect of employee motivation on productivity’ whereby the results
discovered that employees have affected by motivation as a result it created a positive work
environment and to successfully execute the anticipated programs.
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CHAPTER THREE
3. Research Methodology
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3.5 Population of the study
The target groups of the study were about 25 employees of Hassen Reshid flour factory. As the
managers said that the total number of employee from that organization were 25 from those 19
are males the remaining 6 are females.
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3.8 Work plan and cost budget
S.no Activities Sep Oct Nov Dec Jan Feb Mar Apr May
1. Problem
Identification
2. Topic Selection
3. Proposal Writing
4. Proposal Summation
5. Proposal Paper
Defense
6. Data Collection
Process
9. Paper Presentation
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3.8.2 Cost budget plan
s.no description of items unit quantity unit cost in unit total cost
birr
1 secretary Page 35 7 245.00
2 Papers pack 1 180 180.00
3 Pen Piece 1 10 10.00
4 Pencil Piece 1 5 5.00
5 Ruler Piece 1 5 4.00
6 binding cost Piece 2 12 24.00
sub total 668.00
contingency 10% 66.80
grand total 534.80
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Latham and Pinder, (2005) work motivation theory research at the down of twenty-first century.
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edition,USA,Mcgraw,Hill.
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