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THE ROLE OF MOTIVATION ON EMPLOYEES’ PERFORMANCE: THE CASE OF VICTORIA COMMERCIAL BANK OF KENYA BY MOHAMMED ALBEITI UNITED STATES INTERNATIONAL UNIVERSITY AFRICA SUMMER 2015

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Page 1: THE ROLE OF MOTIVATION ON EMPLOYEES’ …

THE ROLE OF MOTIVATION ON EMPLOYEES’

PERFORMANCE: THE CASE OF VICTORIA

COMMERCIAL BANK OF KENYA

BY

MOHAMMED ALBEITI

UNITED STATES INTERNATIONAL UNIVERSITY AFRICA

SUMMER 2015

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THE ROLE OF MOTIVATION ON EMPLOYEES’

PERFORMANCE: THE CASE OF VICTORIA

COMMERCIAL BANK OF KENYA

BY

MOHAMMED ALBEITI

A Research Project Submitted to the Chandaria School of

Business in Partial Fulfillment of the Requirement for the

Degree of Masters in Business Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY AFRICA

SUMMER 2015

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STUDENT’S DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any

other college, institution or university other than the United States International

University Africa in Nairobi for academic credit.

Signed: ________________________ Date: ______________________

Mohammed Ezel (ID No: 629469)

This project proposal has been presented for examination with my approval as the

appointed supervisor.

Signed: ________________________ Date: ______________________

Dr. Teresia Linge

Signed: ________________________ Date: ______________________

Dean, Chandaria School of Business

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ABSTRACT

The purpose of this study was to investigate the role of motivation on employees’

performance using the case of Victoria Commercial Bank of Kenya. This study was

guided by the following research questions. To what extent does extrinsic motivation

affect employees’ performance in Victoria Commercial Bank? To what extent does

intrinsic motivation affect employees’ performance in Victoria Commercial Bank? What

other factors affect employees’ performance in Victoria Commercial Bank?

This study adopted a descriptive research design. The population of the study was 55

employees’ of Victoria Commercial Bank of Kenya. A census sampling was done and so

the 55 employees constituted the sample size. A structured questionnaire was used to

collect the data. The questionnaire was administered by the researcher. The completed

questionnaires were edited for completeness. The data was analyzed using the statistics

package for social sciences (SPSS) computer package. The data was interpreted using

descriptive statistics through frequencies, percentages and regression analysis. The

findings were presented in the form of tables and figures.

The findings established that most of the respondents were motivated to work harder by

the acquisition stock ownership. This was followed by money motivating the employees

to do their best. Others were motivated to work harder for the highest pay raises while

others worked harder for the amount of compensation that they expect to get. However,

few of the respondents were less motivated to enhance their performance by the merit pay

provided by the management, less motivated by the extra benefits for exceptional

performance and very few respondents were less motivated by the unexpected bonus for

the best performance.

The findings established that the respondents were motivated to work harder by the

challenges encountered. This was followed by the respondents being motivated by the job

providing an opportunity for advancement opportunities for a job well done, others were

inspired to enhance their performance working hard to compete with others who are

clearly superior in skills and a large number of the respondents agreed that their job

supervisor recognizes employees for their work. However, a small number of the

respondents agreed that they were less motivated by the recognition of what they do.

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Fewer respondents mentioned that they were motivated to enhance their performance by

the company recognizing and acknowledging employees’ hard work and very few

respondents agreed that once they reach an important goal, they less strive to achieve

higher goals.

The study determined the other factors that affect employees’ performance from the

respondents involved in the study. The findings suggest that most of the respondents

agreed that training helps employees perform their tasks well. This was followed by the

terms being favourable for employees to work hard in their job, a large number of the

respondents agreed that the management listens to both verbal and non verbal

communication of individuals for enhanced performance and a significant number of the

respondents agreed that their workload is heavy to meet their performance targets. A few

number of the respondents agreed that they have good communication relationship with

their colleagues for enhanced performance and the management makes the employees’

work feel meaningful to enhance their skills.

The study concludes that stock options, profit sharing and pay have become an

increasingly popular method for rewarding teams for outstanding accomplishments.

Employees can enhance their performance as a result of challenging work responsibilities

that may lead to career fulfilments. Job training makes an important contribution to the

performance of the employees. Communication is very essential to keeping employees

motivated and helps in maintaining a high performance in the workforce.

The study recommends that stock ownership should continuously be implemented to

motivate the employees to work harder. It is recommended that the provision of job

opportunities may present the best incentives for boosting employee performance in the

long run. Effective job training plays a vital role in improving performance as well as

increasing employee productivity.

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ACKNOWLEDGEMENT

The Dalai Lama once wrote “He must have a pure, honest and warm-hearted motivation,

and on top of that, determination, optimism, hope, and the ability not to be discouraged”.

These words are a true reflection of my experience throughout this research proposal, an

experience that would not have turned successful without the involvement of individuals

whom I carry for, the utmost respect and consideration.

A warm “thank you” and appreciation goes to Dr. Teresia Linge, my supervisor, for his

keen insight, guidance, and support, and for his valuable research experience that he did

not hesitate in sharing it with me. I also thank my work colleagues for their continuous

encouragement and help provided. Finally, I want to thank my friends and family

members who had to see me in the ups and downs phases of my research proposal and

instead of going away, they have supported and encouraged me to conduct and

successfully complete this proposal.

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DEDICATION

This research proposal is dedicated to everyone who taught me the values of life,

knowledge, respect, integrity, hard work, and self improvement and to those who taught

me to simply stand up when I fall, to be all good to people, and always encouraged me to

dream and work hard towards my dreams.

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TABLE OF CONTENTS

STUDENT’S DECLARATION ....................................................................................... ii

ABSTRACT ...................................................................................................................... iii

ACKNOWLEDGEMENT ................................................................................................. v

DEDICATION .................................................................................................................. vi

TABLE OF CONTENTS ............................................................................................... vii

LIST OF TABLES ........................................................................................................... ix

CHAPTER ONE ................................................................................................................ 1

1.0 INTRODUCTION ........................................................................................................ 1

1.1 Background of the Study ............................................................................................... 1

1.2 Problem Statement ......................................................................................................... 6

1.3 Purpose of the Study ...................................................................................................... 6

1.4 Research Questions ........................................................................................................ 7

1.5 Significance of the Study ............................................................................................... 7

1.6 Scope of the Study ......................................................................................................... 8

1.7 Definition of Terms ........................................................................................................ 8

1.8 Chapter Summary .......................................................................................................... 9

CHAPTER TWO ............................................................................................................. 10

2.0 LITERATURE REVIEW ......................................................................................... 10

2.1 Introduction .................................................................................................................. 10

2.2 Extrinsic Motivation and Employees’ Performance .................................................... 10

2.3 Intrinsic Motivation and Employees’ Performance ..................................................... 15

2.4 Other Motivational Factors and Employees’ Performance .......................................... 19

2.5 Chapter Summary ........................................................................................................ 26

CHAPTER THREE ......................................................................................................... 27

3.0 RESEARCH METHODOLOGY ............................................................................. 27

3.1 Introduction .................................................................................................................. 27

3.2 Research Design ........................................................................................................... 27

3.3 Population and Sampling Design ................................................................................. 27

3.4 Data Collection Method ............................................................................................... 29

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3.5 Research Procedures .................................................................................................... 30

3.6 Data Analysis Methods ................................................................................................ 30

3.7 Chapter Summary ........................................................................................................ 30

CHAPTER FOUR ............................................................................................................ 31

4.0 RESULTS AND FINDINGS ..................................................................................... 31

4.1 Introduction .................................................................................................................. 31

4.2 General Information ..................................................................................................... 31

4.3 Extrinsic Motivation and Employees’ Performance .................................................... 34

4.4 Intrinsic Motivation and Employees’ Performance ..................................................... 36

4.5 Other Motivational Factors and Employees’ Performance .......................................... 38

4.6 Chapter Summary ........................................................................................................ 40

CHAPTER FIVE ............................................................................................................. 41

5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS .......................... 41

5.1 Introduction .................................................................................................................. 41

5.2 Summary ...................................................................................................................... 41

5.3 Discussion .................................................................................................................... 43

5.4 Conclusions .................................................................................................................. 48

5.5 Recommendations ........................................................................................................ 49

REFERENCES ................................................................................................................. 51

APPENDICES .................................................................................................................. 56

APPENDIX A: INTRODUCTORY LETTER .............................................................. 56

APPENDIX B: QUESTIONNAIRE ............................................................................... 57

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LIST OF TABLES

Table 3.1: Total Population Distribution ........................................................................... 28

Table 3.2: Sample Size Distribution .................................................................................. 29

Table 4.1: Response Rate ................................................................................................... 31

Table 4.2: Gender of Respondents ..................................................................................... 32

Table 4.3: Age of Respondents .......................................................................................... 32

Table 4.4: Job Category of Respondents ........................................................................... 32

Table 4.5: Work Experience .............................................................................................. 33

Table 4.6: Education Level ................................................................................................ 33

Table 4.7: Extrinsic Motivation and Employees’ Performance ......................................... 34

Table 4.8: Correlation between Extrinsic Motivation and Employees’ Performance ....... 35

Table 4.9: Intrinsic Motivation and Employees’ Performance .......................................... 36

Table 4.10: Correlation between Intrinsic Motivation and Employees’ Performance ...... 37

Table 4.11: Other Motivational Factors and Employees’ Performance ............................ 38

Table 4.12: Correlation between Other Motivational Factors and Employees’ Performance . 39

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Since the organization is characterized by people, it is no surprise that the motivation

system is a vital factor for employee performance and the achievement of the

organizational goals. For an organization to achieve its objectives, the managers need to

be aware of the employee incentives that enhance their motivation and production (Khan,

Farooq and Ullah, 2010; Pratheepkanth, 2011). Employee performance is now recognized

as one of the most important issues facing organizations that aim to become successful in

the future (Mwanje, 2010). Hence, having a better understanding of employee motivation

is very crucial for employees’ performance.

The role of motivation on employees’ performance is the major issue in the today’s

organizations (Khan, Farooq and Ullah, 2010). In this era of globalization and

competition, employee motivation and performance are considered to be the key factors

for organizations success (Sakovska, 2012). The employees of an organization are vital to

for the organizational performance (Bennet, 2002). This is also emphasized by Harvey

and Brown (2006) who argues that people are the foundation of every organization. Also,

it is commonly said that people working for an organization, are the most valuable, the

most costly, and the most volatile of all the resources that it can use to enhance the

organizational performance. Organizations need motivated people to get things done

(Bennet, 2002; Khan, Farooq and Ullah, 2010).

Managers agree that modern business demands higher performance and more efficiency,

than in previous times. Companies are trying to increase their performance in order to

place their company ahead of the competitors (Sakovska, 2012). In this turbulent business

environment, there is need for high performing employees who are essential for the

growth and survival of the organization (Pratheepkanth, 2011). It is believed that high

performing employees can increase their innovation, high customer satisfaction,

profitability, low employee turnover, positive work attitudes, individual health, extra-role

behaviours and performance (Khan, Farooq and Ullah, 2010). This indicates that high

motivated employees who are contented with their work experience are a good formula

for organization success. This is because motivated employees want to stay with a

company, contribute to the workforce stability and performance.

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High performing employees develop new knowledge to the achievement of organization

goals. The employees respond to market opportunities, go an extra mile, are satisfied with

their jobs, committed to the organization; meet challenging goals with an urge to be

successful (Sakovska, 2012). High performing employees also have more energy which

they enthusiastically apply in their work. The employees go beyond job description,

dynamically change and arrange their jobs in a way that best fits the changing work

environment (Pınar Gungor, 2011). As compared to low performing employees, they see

no meaningfulness n their job, they detach from work, become less committed and

motivated at work (Berman, Bowman, West and Wart, 2010). However, high performing

employees influence the quality of work that leads to high growth and productivity in the

organization (Sakovska, 2012).

While most organizations see a clear need to improve employees’ performance, many

have yet to motive their employees to achieve this goal. However, a number of companies

are gaining competitive advantage through establishing effective motivation practices on

overall business performance (Sakovska, 2012). In most organizations, the current leaders

are aware that there is much to be done to ensure that they have a focused and highly

competitive workforce (Pratheepkanth, 2011). Encouraging the employees to perform

highly requires considerable effort and top management focus to a large degree in

motivating the employees to give their best (Pınar Gungor, 2011). In order for the

organization to compete effectively, managers need to motivate the employees to give

their best as part of the valuable resource unavailable in the company (Sakovska, 2012).

The motivation of the employees is the best tool in the company’s efforts to gain

competitive advantages and stay competitive.

According to Pitts (2005), one key strategy for organization performance is the ability to

attract, maintain and motivate a valuable workforce in today’s marketplace by offering

competitive incentive systems. Advocates of the expectancy theory believe that

employees will change their behaviour by working harder or prioritizing their actions if

they know that by doing so they will be rewarded with something of value to them

(Pratheepkanth, 2011). Hence, incentives are a great way to reward performance which

the organization wishes to encourage amongst its workforce (Sakovska, 2012). If the

incentive is paid in return for performance that contributes to the organizations goals and

overall objectives, it will in the long run enhance employees’ motivation leading to

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organizational effectiveness and motivation, it will also generate a positive outcome for

both employer and employee (Torrington, Hall, Taylor & Atkinson, 2009).

The principle incentive for employees’ performance is compensation. Compensation is a

form of pay received by the employee from the employer, many employers however also

have incentives packages of which wages and salaries are only a part of (Sakovska,

2012). The packages typically include bonuses, pension schemes, health insurance,

allocated cars, beneficial loans, subsidized meals, profit sharing, share options and much

more (Pitts, 2005). There are various things to think about before making decisions about

what kind of payment system is most appropriate in boasting employees’ motivation and

performance in an organization. In an organization, managers should start by asking what

objectives they are seeking to achieve (Pratheepkanth, 2011). These are likely to include

the following: minimal expenditure on wages and salaries over the long term, attracting

and retaining staff of the desired calibre, experience and qualifications (Khan, Farooq and

Ullah, 2010). Motivating the workforce so as to maximize their performance, directing

efforts and enthusiasm in specifying directions and to encourage particular types of

employees’ behaviour and to underpin and facilitate the management of organizational

change (Torrington et. al., 2009).

However, Torrington et al. (2009) warn that there is no one reward system either intrinsic

and extrinsic reward system that can achieve all the above mentioned features for all

employees to perform well in an organization at the same time since human being do not

perceive things in a uniform manner. Torrington et al. (2009) recommend that managers

are required to weigh up the advantages and disadvantages of each reward system and

decide where to put the emphasis on employee performance. On the other hand, the

incentive system which includes extrinsic and intrinsic reward system describes an

incentive strategy that brings components such as learning and development together with

aspects of the work environment into the benefits package (Khan, Farooq and Ullah,

2010). Hence, for organizations faced with many fluctuations and pressures in today's

world in order to meet their goals. They have to take employees’ motivation and

performance into their development processes and with understanding that effective

changes that will give them desired performance to accomplish organization goals (Khan,

Farooq and Ullah, 2010).

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Pınar Gungor (2011) says “Motivation is the competency or capability of a person to

change behaviour”. Motivation is a driven force that leads and directed a person toward

some specific goals. “Work motivation is set of active forces that initiates both within as

well as outside an individual’s being, to starts work-related behaviour and to determine its

form, direction, intensity and duration (Pinder, 1998). Employee motivation can improve

their performance in the organization but sometimes the goal may not be achieved

especially when the right incentive is not provided. The influence of motivation on

employees’ performance is understandable when their performance achieves the goals

and objectives of the organization (Berman et. al, 2010). Employees’ motivation raises

the level of employee satisfaction by involving them in their jobs and improving their

performance, by that the employees become creative and boosts the performance of their

organization (Kamery, 2004; Ekerman, 2006). These inner conditions are wishes, desires,

goals, activate to move in a particular direction.

Motivation is the general desire or willingness to do something. Motivation is the result

of conscious and unconscious factors such as intensity of the desire or need, incentive or

reward value of the goal and expectations of the individual. These factors play a vital role

to promote the individual performance towards the specific goal. The extrinsic and

intrinsic reward system is considered valuable in employees’ performance

(Pratheepkanth, 2011). The aim of the reward system is to maximize the positive impact

that a wide range of rewards can have on motivation, job engagement, organizational

commitments and employee performance (Armstrong & Brown, 2006). In order to

achieve internal motivation, the total reward system can be integrated with human

resource activities, business strategies and objectives to have greater impact on the

employee, performance, commitment, engagement and motivation of employees’

performance (Armstrong, 2005). It is on the basis of this that the study aims to investigate

the role of motivation on employees’ performance with a focus on Victoria Commercial

Bank of Kenya.

Victoria Commercial Bank is a medium size bank that was established in 2007 as a

finance company. The vision of the bank is to be the leading private bank providing

quality financial services with a focus on client orientation, integrity and professionalism.

The bank’s mission is to promote a culture of “client orientation” through comprehensive

understanding of the clients' business needs, based on mutual respect and trust. The bank

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also aim to provide innovative and quality financial services, while conducting business

in an accountable and transparent manner by delivering value added, sustainable and

profitable solutions to all stakeholders through an empowered, diverse and professional

team (Victoria Bank, 2014). The management of Victoria Commercial Bank has been

exemplary both in their professionalism and their willingness to take on wider

responsibilities than is normal in an institution of this type. It has proved to be a team well

chosen, well suited to one another and even better motivated to give extra performance

(Torrington et. al., 2009). The issue now that the bank is facing is keeping the employees

motivated and productive without discontinuity. In this regard, it is important for

managers to understand the type of reward system (Intrinsic or extrinsic reward system)

to motivate the employees to effectively use their skills to give their best at the workplace

(Mullin, 2010).

There is need to understand the type of reward systems that employees perceive to be the

most motivating in enhancing their performance and how the reward systems can be

developed to boost the organization performance. This is because a motivated work force

exhibits lots of enthusiasm at the workplace with the potential of accomplishing the

organization’s goals through exceptional performance (Armstrong, 2001). Cheng (2005)

states that the biggest challenge for the management of banks today is motivating the

employees for enhanced performance by offering better services to meet the customers’

expectations. One of the major functions of human resource manager is to enhance and

maintain employees’ work motivation. Human resource management’s function is to

assist the general manager or line management in keeping the employees satisfied with

their jobs by providing motivation of different kinds to enhance their performance.

The dissatisfaction is conditioned with performance. If employees are not satisfied, they

will not perform well to expected standards (Petcharak, 2004). Workplace dissatisfaction

and poor performance may lead to high employee turnover in an organization particularly

where there is little scope of opportunities for people to join other organizations but it

may affect employee’s performance badly (Mullin, 2010). The issue is keeping Victoria

bank employees motivated and productive without discontinuity. In this regard, it is

important for managers to understand the type of reward system (extrinsic or intrinsic

reward system) to use in order to motivate employees to effectively use their skills to give

their best at the workplace for the overall organizational performance (Mullin, 2010).

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There is also the need to understand the type of reward systems that employees perceive

to be the most motivating in enhancing their performance and how the reward systems

can be developed to boost the organization and employees’ performance (Pratheepkanth,

2011).

1.2 Problem Statement

There are a number of studies which have been conducted on the role of motivation on

employees’ performance. Pratheepkanth (2011) argued that highly performing employees

at commercial bank of Sri Lanka, in Jaffna District were driven by non-financial oriented

rewards which are an intrinsic motivation system. Also, Mwanje (2010) study on the staff

motivation in the Bank of Uganda pointed out that promotion was indeed a vital aspect of

job performance. The findings also indicated that intrinsic rewards were critical in

enhancing employee performance.

On the other hand, Khan, Farooq and Ullah (2010) conducted among the commercial

banks employees in Pakistan showed that pay played a critical role in employee

performance. It was observed that extrinsic reward system had an impact on employee

performance. In another study carried out in Kenya, Ochieng (2003) established that both

intrinsic and extrinsic reward system equally played a role in secondary teachers’

performance and motivation in Migori district. The results of the mentioned studies

provided conflicting findings on the role of intrinsic or extrinsic reward system on

employees’ motivation and performance. In addition, they did not focus on the Kenyan

banking sector. These studies do not provide sufficient evidence on which reward system

has greater impact on employees’ motivation and performance. Therefore this presented a

knowledge gap that this study investigated by focusing on the role of motivation through

rewards on employees’ performance.

1.3 Purpose of the Study

The main purpose of this study was to investigate the role of motivation on rewards on

employees’ performance.

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1. 4 Research Questions

This study was guided by the following research questions:

1.4.1 To what extent does extrinsic motivation affect employees’ performance in

Victoria Commercial Bank?

1.4.2 To what extent does intrinsic motivation affect employees’ performance in Victoria

Commercial Bank?

1.4.3 What are the other motivational factors which affect employees’ performance in

Victoria Commercial Bank?

1.5 Significance of the Study

This study examines the role of employees’ motivation through rewards on organizational

performance. The benefits that can accrue from this study are numerous:

1.5.1 Commercial Banks

The study aims to create awareness to Commercial Banks in Kenya on the types of

incentives that are crucial to incorporate as a means of enhancing the employees'

performance in the organization as well as enhance employee motivation and

organizational performance.

1.5.2 Employees

The study also aims to be a source of motivation and inspiration to low productive

workers in enhancing their motivation and their employers’ performance. In addition, the

results from the study will also help commercial banks cope with the central problem of

motivating their workers to give their best.

1.5.3 Human Resource Management

A good incentive system has a potential of releasing the immense untapped reservoirs of

physical and mental capabilities of the employees. A number of studies have shown that

motivation in any form plays a crucial role in determining the level of organization

performance. By satisfying human needs through the incentive system helps in increasing

motivation, better utilization of resources and lowers the cost of business operations.

Therefore, a good incentive system will direct the employees towards the accomplishment

of the organization goals.

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1.5.4 Researchers and Academicians

This study will be useful to academicians and researchers who might be interested in

pursuing research in the same area. The study will help them understand the impact of

monetary, non-monetary incentive and compensation on employees’ motivation and

performance.

1.6 Scope of the Study

The study determined the role of motivation on employees’ performance. The study was

conducted using a population of 55 employees of Victoria Commercial Bank in Nairobi

County from the following departments: operations, finance, treasury, trade finance,

human resource, marketing and credit department. The survey was conducted for a period

of four weeks beginning 15th April to 15th May 2015. However, there were a number of

limitations when carrying out the study. First, the representative sample was too small

and all the employees were encouraged to participate in the study to avoid missing

responses. In addition, some drivers of intrinsic and extrinsic motivational rewards were

limited but additional empirical review was done to overcome some generalization.

1.7 Definition of Terms

1.7.1 Compensation

Compensation is defined as any monetary or nonmonetary reward given to employees by

an employer for their endeavours (Waters-Marsh, 2008).

1.7.2 Employee Benefits

Employee benefits are the monetary and monetary incentives offered by an organization

to attract and keep employees (Waters-Marsh, 2008).

1.7.3 Employee Performance

Performance means the transformation of inputs into outputs at the lowest cost, and

includes technical issues such as raw materials, layout and how employees perform in

their jobs. Performance is directly affected by the economic climate, the situation in the

markets, changes that occur from incentive system given to people (Mwanje, 2010).

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1.7.4 Extrinsic Reward System

Extrinsic reward system can also be referred to as monetary incentives based on pay,

personal bonuses and other benefits (Khan, Farooq & Ullah, 2010).

1.7.5 Incentive

Incentive is the benefits that arise from performing a task, rendering a service or

discharging a responsibility. It comprises of monetary and non- monetary incentives that

arise from transactions between the employer and employee to include pay, personal

bonuses and other benefits (Waters-Marsh, 2008).

1.7.6 Intrinsic Reward System

Intrinsic reward system can be referred to as non-monetary incentives that have to do with

learning, development and work experience (Aldag & Kuzuhara, 2001).

1.7.7 Motivation

Motivation is the psychological processes that cause the arousal, direction, and

persistence of voluntary action that is goal oriented (Kreitner & Kinicki, 2007).

1.7.8 Motives

Motives provide direction to human behaviour as they are directed towards certain

conscious or subconscious goals (Waters-Marsh, 2008).

1.8 Chapter Summary

This chapter presents the background on the role of motivation on employees’

performance. The first chapter is divided into various main sections. Section one gives the

detailed background of the study, section two describes the problem statement in the

context of other studies. Next is the purpose of the study. Followed by the research

questions. The next section provides the significance of the study. The scope of the study

is provided as well as the working definitions of the study. Chapter two presents an

overview of the literature review according to the research questions. Chapter three is on

the research methodology. Chapter four presents on the results and findings of the study.

Chapter five presents the summary, discussion, conclusion and recommendations of the

study.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter presents the literature review according to the research questions of the

study. It discusses the extent to which extrinsic motivation affects employees’

performance in banking sector, the extent to which intrinsic motivation affects

employees’ performance in the banking sector and the extent to which other factors affect

employees’ performance in the banking sector. The chapter ends with a summary of the

discussions.

2.2 Extrinsic Motivation and Employees’ Performance

Extrinsic motivation refers to someone doing something because it leads to a separable

outcome (Mullin, 2010). Extrinsic rewards may play an important role in boosting the

employee’s performance as Pierce and Gardner (2004) point out that an individual’s self-

esteem, formed around work and organizational experiences, plays a significant role in

determining employee motivation. There are various components of extrinsic

motivational factors and they include: pay, bonus programs, profit sharing and stock

options (Mullin, 2010).

2.2.1 Pay

Pay refers to the amount of money provided to workers for the accomplishment of

organization goals (Koch, 2008). Kreitner and Kinicki (2007) suggests that the

effectiveness of pay as a motivator depends on a number of circumstances, including the

value and needs of individuals and their preference for different types of financial or non-

financial rewards. Armstrong and Murlis (2004) further commented that pay is important

to people because it is instrumental in satisfying a number of their most pressing needs. It

is significant not only because of what they can buy but also a highly tangible method of

recognizing their worth, thus, improving their self-esteem and gaining esteem of others

(Khan, Farooq & Ullah, 2010). Armstrong and Murlis (2004) reflecting on intrinsic

motivation pointed out that pay in itself has no intrinsic meaning and acquires significant

motivating power only when it comes to symbolize intangible goals.

Yin and Yang (2012) found that the employee incentive of pay, distinctively impacted on

their performance. Pay was significantly correlated with job performance (Yin and Yang,

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2012). The authors recommended that pay be re-examined and adjusted to better suit the

staffs and enhance their performance. In a similar study, Rajapaksa and Rothstein (2009)

analyzed a survey conducted to discover why employees performed poorly in their jobs.

One of the most frequently indicated answers was that their pay was better in their current

position (35%) (Rajapaksa and Rothstein, 2009). When examining pay as a reason for

their production, the authors suggested that organizations concentrate more on adequate

payment system. Other recommendations by the authors included providing financial

assistance to the employees for enhanced performance (Rajapaksa and Rothstein, 2009).

To further support the aforementioned studies, Coshow (2009) found pay as a major

influence of job performance. Authors of the study found that employees who had been at

the organization for greater than 10 years were equally satisfied with pay, yet more

satisfied with benefits compared to those who had been at the organization less than two

years (Coshow., 2009). Coshow (2009) recommended that pay can be considered in most

organization to enhance the motivation and make the employees work even harder.

Dubrin (2007) explains that pay is an unquestionably form of reward. However, it is not

the only way in which organizations can reward their people. Vecchio (2006) asserted

that a good reward should be valued by its recipients and there is no question that pay is

highly important to most people. Clarifying on the shortcomings of using pay as the only

reward, Daniel (2000), comments that, although pay can be used occasionally, it should

not be the main incentive. Even though most people, in most circumstances, like pay, it

provides limited reinforcement for the cost. Pay in the form of money is soon spent and

the memory of it soon fades, whereas other tangible incentives are kept longer and act as

a constant remainder of some accomplishment (Mullin, 2010).To further support this,

Baron (2008) indicates that the link between pay as an extrinsic reward and employee

performance has yielded negative results.

In other words, performance does not increase with increased pay and does not decrease

when the worker is less motivated by the pay as a reward provided in the organization.

This finding may appear to be strange but the following reasons put forward by Baron

(2008) will support this finding. Firstly, in many work situations, change in performance

or performance is difficult as the job structure ensures work at a minimum level only. In

other words, even if the worker had to work at a faster rate, the production will continue

to move at the same pace. In addition the sharing of work resources hinders the progress

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of the workers because he or she has to wait for the specified materials. Therefore, even

if there are extremely high levels of motivation, this will do little to raise performance and

the correlation between motivation and performance is weakened. In this regard, most of

the studies indicate that there is a direct correlation between pay and the task

performance, but the correlation is not particularly strong in which the current study aims

to find out among the bank employees. Bonus programs may also play a role in boosting

employees’ performance.

2.2.2 Bonus Programs

Bonus programs are usually rewards provided to individuals for their accomplishment in

a particular task (Mullin, 2010). The bonus program has been used in different

organizations for some time now. Bonuses are frequently used in sales organizations to

encourage salespersons to generate additional business or higher profits. They can also be

used, however, to recognize group accomplishments. Indeed, increasing numbers of

businesses have switched from individual bonus programs to one which rewards

contributions to corporate performance at group, departmental, or company-wide levels

(Odell, 2005).

According to Yin and Yang (2012), small businesses interested in long-term benefits

should probably consider another type of reward. Bonuses are generally short-term

motivators. By rewarding an employee's performance for the previous year, they

encourage a short-term perspective rather than future-oriented accomplishments. In

addition, these programs need to be carefully structured to ensure they are rewarding

accomplishments above and beyond an individual or group's basic functions. Otherwise,

they run the risk of being perceived of as entitlements or regular merit pay, rather than a

reward for outstanding work. Proponents, however, contend that bonuses are a perfectly

legitimate means of rewarding outstanding performance, and they argue that such reward

system can actually be a powerful tool to encourage future top-level efforts (Odell, 2005).

Profit sharing incentives may also play a role in boosting employees’ performance.

2.2.3 Profit Sharing

Profit sharing refers to the strategy of creating a pool of monies to be disbursed to

employees by taking a stated percentage of a company’s profits (Yin & Yang, 2012). The

amount given to an employee is usually equal to a percentage of the employee's salary

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and is disbursed after a business closes its books for the year (Rajapaksa and Rothstein,

2009). The benefits can be provided either in actual cash or via contributions to

employee's retirement plans. A benefit for a company offering this type of reward is that

it can keep fixed costs low (Ramey, Ardella and Carl, 2011).

The idea behind profit sharing is to reward employees for their contributions to a

company's achieved profit goal. It encourages employees to stay put because it is usually

structured to reward employees who stay with the company (Mullin, 2010). Most profit

sharing programs require an employee to be vested in the program over a number of years

before receiving any money (Pratheepkanth, 2011). Unless well managed, profit sharing

may not properly motivate individuals if all receive the share anyway. A team spirit

(everyone pulling together to achieve that profit) can counter this especially if it arises

from the employees and is not just management propaganda (Luthans, 2005). . Stock

options may also play a role in boosting employees’ performance.

2.2.6 Stock Options

A stock option refers to a contract between two parties in which the stock option buyer

(holder) purchases the right (but not the obligation) to buy or sell 100 shares of an

underlying stock at a predetermined price to the option seller (writer) within a fixed

period of time (Khan, Farooq and Ullah, 2010). 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). 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 (Parker and Liz, 2001).

Stock options usually reward employees for sticking around, serving as a long-term

motivator. Once an employee has been with a company for a certain period of time

(usually around four years), he or she is fully vested in the program. If the employee

leaves the company prior to being fully vested, those options are canceled (Torrington et.

al., 2009). After an employee becomes fully vested in the program, he or she can

purchase from the company an allotted number of shares at the strike price (or the fixed

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price originally agreed to). This purchase is known as "exercising" stock options. After

purchasing the stock, the employee can either retain it or sell it on the open market with

the difference in strike price and market price being the employee's gain in the value of

the shares (Rajapaksa and Rothstein, 2009).

Offering additional stock in this manner presents risks for both the company and the

employee. If the option's strike price is higher than the market price of the stock, the

employee's option is worthless. When an employee exercises an option, the company is

required to issue a new share of stock that can be publicly traded. The company's market

capitalization grows by the market price of the share, rather than the strike price that the

employee purchases the stock for (Khan, Farooq and Ullah, 2010). The possibility of

reduction of company earnings (impacting both the company and shareholders) arises

when the company has a greater number of shares outstanding. To keep ahead of this

possibility, earnings must increase at a rate equal to the rate at which outstanding shares

increase. Otherwise, the company must repurchase shares on the open market to reduce

the number of outstanding shares (Parker & Liz, 2001).

One benefit to offering stock options is a company's ability to take a tax deduction for

reward system expense when it issues shares to employees who are exercising their

options. Another benefit to offering options is that while they could be considered a

portion of reward system, current accounting methods do not require businesses to show

options as an expense on their books. This tends to inflate the value of a company.

Companies should think carefully about this as a benefit, however. If accounting rules

were to become more conservative, corporate earnings could be impacted as a result

(Dubrin, 2007).

Bonuses, profit sharing, and stock options can all be used to reward team and group

accomplishments. An entrepreneur can choose to reward individual or group

contributions or a combination of the two. Group-based reward systems are based on a

measurement of team performance, with individual rewards received on the basis of this

performance (Torrington et. al., 2009). While these systems encourage individual efforts

toward common business goals, they also tend to reward under-performing employees

along with average and above-average employees (Pratheepkanth, 2011). A reward

program which recognizes individual achievements in addition to team performance can

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provide extra incentive for employees. Therefore, by rewarding outstanding performance

within the organization, it can have a positive outcome on employees’ performance

(Coshow et al., 2009). . Intrinsic motivation may also play a role in boosting employees’

performance.

2.3 Intrinsic Motivation and Employees’ Performance

Intrinsic motivation refers to doing something because it is inherently interesting or

enjoyable (Yin and Yang, 2012). Intrinsically motivated agents do not only care about

extrinsic rewards (like monetary payments), but their motivation to worker harder

depends also on factors such as their self esteem or self confidence in succeeding in a task

(Pierce and Gardner, 2004). There are various components of intrinsic motivational

factors and they include: job autonomy, professional growth, leadership, workload and

work contentment (Yin and Yang, 2012).

Such experiences are for examples signals by the organizational environment and

significant others (Pierce and Gardner, 2004). Other determinants of an employee's self

confidence are job characteristics, such as task difficulty and complexity, the environment

in which the task is performed, work quality, quantity and routine, as well as creativity

and meaningfulness of the work, or identification with the job (Gardner, 2004).

As such, the management therefore needs to understand what reward system are involved

to get employees give of their best and stretch towards their potential. Hatcher, Bleich,

Connolly, Davis, Hewlett, and Hill (2006) conducted a study to identify best practices for

motivating and retention of the older nursing workforce (ages 45-64). The authors

conducted a literature review to examine characteristics of the older employee, define

human resource policies affecting production, and discover work environment designs

that foster recruitment of older employees. The authors identified 25 individuals as

experts in hospital employee retention as well as experts in the retention of older workers.

Of the 25 experts, 13 participated in telephone interviews (Hatcher et al., 2006).

Ultimately, these 13 experts identified either the same or very similar variables to

increase organizational commitment as those identified in the literature (Hatcher et al.,

2006). Job autonomy may also play a role in boosting employees’ performance.

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2.3.2 Job Autonomy

Job autonomy refers to the way a job provides the freedom to expand on the job duties

and responsibilities to any individual who was hired to perform it independent judgment

and discretion required to do the work. In addition to telephone interviews, Hatcher et al.

(2006) conducted a survey as a means of identifying best practices for enhancing

performance of older employees. A pilot web-based employee survey was made available

to more than 2,000 employees in a Presbyterian New Mexico healthcare system

composed of seven different hospitals, 26 ambulatory care clinics, home health care and

hospices services. The survey response rate was 200% (N=377) and did not concentrate

solely on older employees (Hatcher et al., 2006). The authors recommended autonomy as

a solution to the motivation of older employees in the overall findings to enhance their

performance. A literature review by Moseley, Jeffers, and Paterson (2008) examining the

same identified empowerment or autonomy as a solution to increasing workers

performance.

2.3.3 Professional Growth

Professional growth refers to the fulfilment career responsibilities as part of the employee

learning and skill building overtime (Mullin, 2010). Hatcher et al. (2006) found that

professional growth, such as provision of challenges, increases performance among older

employees. To further support professional growth and continuing education as indicators

for boosting the workers’ performance, Tourangeau et al. (2010) found that provisions of

challenges and support from the organization for professional development of the

employee practice are important to employees. The authors reported that opportunities for

new challenges are a motivator for boosting their performance. It was also reported that

opportunities for professional development, such as educational offerings, have the

potential to increase employees’ performance (Tourangeau et al., 2010).

Many managers and consultants tend to agree that professional growth is the best

incentives in the long run as an intrinsic reward (Pascerella, 2007). Professional growth

tends to sustain employees’ performance in the long term (Gross, 2005). In a further study

by Shaw and Schneier (2005), professional growth was found to be a more effective way

to motivate a team as compared to monetary rewards. Yin and Yang (2012) found that a

positive correlation between professional growth and job performance. Moseley, Jeffers

and Paterson (2008) recommended professional growth should be enhanced as a means of

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continually fostering increased performance (Moseley et al., 2008). Such interventions

would promote employee motivation to give the best of their performance. Leadership

may also play a role in boosting employees’ performance.

2.3.4 Leadership

Leadership is defined as an individual who has the ability to bring about change by

looking for potential motives in followers, by seeking to satisfy higher need and fully

engage the followers through a mutual relationship to inspire the followers towards the

achievement of the group goals (Ma, Lee, Yang and Change, 2009). Tourangeau,

Cummings, Cranley, Ferron and Harvey (2006) suggested establishing leadership that

shares common interest in his or her vision, work group goals and objectives. In a later

study, Tourangeau et al. (2010) further supported the previous findings by suggesting that

leadership support, as well as relationships with the manager, are motivators for increased

employee performance. The authors also found that flexible scheduling is an equally

important variable. Based on the finding of this study, participants felt leaders who

provided flexible scheduling had a positive impact on employee performance. In most

focus groups, the leader’s capabilities, motives, and relationship with the employees

affected the employee’s performance (Tourangeau et al., 2010).

In 2009, Ma, Lee, Yang, and Chang conducted a cross-sectional study in Taiwan. This

study involved four acute care hospitals and examined employees’ performance and its

correlation with leadership characteristics. Upon approval from the institutional ethical

committees, self-reported surveys, developed by the research team, were administered to

the employees, with reminders that the questionnaires were voluntary and anonymous

(Ma et al., 2009). Ma et al. (2009) found that good leadership was the most significant

predictor of intent to improve performance. The authors recommended that organizations

implement a good leadership program to improve on employees’ performance. Also,

performance of the employees should be assessed on a regular basis and the leaders take

actions to enhance the employees’ performance (Ma et al., 2009). Work load may also

play a role in boosting employees’ performance.

2.3.5 Workload

Workload can be defined as the amount of work assigned to or expected from a worker in

a specified time period (Palumbo, McIntosh, Rambur and Naud, 2009). In a study

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conducted by Sellgren, Kajermo, Ekvall and Tomson (2009), focus group discussions

introduced the concept of workload as having a direct impact on employees’ performance.

The authors stated that on inpatient units, where employees provide 24-hour care, patient

acuity is higher than ever due to patients living longer with increased morbidities. Sicker

patients lead to higher workload and exhaustion, and heavy workload has a negative

impact on workers performance (Sellgren et al., 2009). The authors recommended that

managers ensure adequate staffing to decrease workload, thereby increasing employee

performance. In contrast, Palumbo et al. (2009) did not identify staffing as having a direct

affect on employee performance; however, the authors recommended organizations

assure safe staffing levels. Biesheuvel (2008) indicates that a reward system resulting

from work contentment and performance are related when individual performance is seen

as a way of meeting certain goals that are valued as priority and therefore satisfying. In

other circumstance, a negative relationship exists between performance and the reward

system resulting from work contentment (job satisfaction), which supports the view of the

expectancy, or valency, theory. Work content may also play a role in boosting employees’

performance.

2.3.6 Work Contentment

Work contentment refers to the state of the mind being at ease with the work

responsibilities (Panagiotakopoulos, 2013). According to Vroom (2008) employees can

find and create motivation resulting from work contentment by: knowing why they were

employed, knowing how they fit in the work environment, learning to communicate in

their work place, making a list of their achievements, reviewing their work and changing

their jobs or professions. Some of the reasons put forward for this limited relationship

between employee performance as a result from work contentment are as follows: firstly,

many work situations do not allow for major movements for the following reasons: in

some instances employees must maintain at least some minimum level of performance to

hold on to their jobs; a worker’s performance is linked to the speed of other employees;

an employee’s performance is linked to the speed of the machinery that they operate

(Vroom, 2008).

The question of whether attitudes and employee’s performance are linked was studied,

and ultimately, evidence has shown that there is a direct correlation between attitudes and

employee’s performance. This does not imply that attitudes always translate into

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employee’s performance directly or immediately. As a result of this assumption, it is

reasonable to expect employee’s performance resulting from work contentment to feature

prominently in several job-related activities. Many investigations have revealed that the

reward system and motivation resulting from work contentment has an effect on whether

an employee would report to work or not. According to Baron (2008), there was a

moderate inverse relationship between employee’s performance resulting from work

contentment and absences. With regard to employee turnover, the less the reward system

resulting from work contentment an employee receives from his or her job, the greater is

the possibility of the worker either resigning or finding another job elsewhere. It has often

been assumed that when workers are happy, such workers will be productive. Other

factors may also play a role in boosting employees’ performance.

2.4 Other Motivational Factors and Employees’ Performance

The other factors that may enhance employee performance include: job security, training,

work responsibilities, communication and work environment (Panagiotakopoulos, 2013).

2.4.1 Job Security

Job security is the probability that an individual will keep his or her job; a job with a high

level of job security is such that a person with the job would have a small chance of

becoming unemployed (Panagiotakopoulos, 2013). Today unemployment is an important

problem almost every country suffers from. Although the reasons may show variety, job

security seems to be in decrease in every part of the world (Ulucan, 2012). The most

prominent reasons for decreasing job security can be cited as technology,

internationalization of capital, demographic change and government policies. From this

aspect, today’s business world is experiencing a difficult period in terms of both

employees and employers (Senol, 2011). Job security, which is crucial for an employee in

terms of keeping his or her job or finding a new job, is also important for the employers

since it enables them to keep their employees or find new ones (Bakan and Buyukbese,

2014). Therefore, employers should be sensitive about the motivation of their employees

under any circumstances for the interest of their organizations. Because employees are not

machines running on physical power but social beings thinking, feeling and being

affected by their environment. For this reason, trying to understand employees can make

them feel valued and inspire them to work harder on the quality of their work (Ulucan,

2012).

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Job security is one of the most influential means of motivating and enhancing employee

performance particularly in times of economic downturn. Employees’ belief that they will

not lose their jobs or they will be employed in the same organization as long as they want

is a significant reason for motivation (Senol, 2011). Therefore, job security is one of the

most significant variables of employee performance which expresses the general attitude

of the employee towards their job (Bakan and Buyukbeşe, 2014). Job security also plays

an important role in both social and working life because it helps individuals do not worry

about their future, contributes to maintaining labour peace, increasing organizations’

productivity and protecting social balance and values. Employees’ confidence in future

and the stability that comes with earning a livelihood are among the most essential rights

provided by job security (Ulucan, 2012). One of the main purposes of modern labour law

is also to secure these rights of employees and prevent them from losing their job without

a valid reason (Suzek, 2006).

In this respect, job security provides social benefits and it also functions as an important

motivational tool enhancing employees’ positive feelings towards their jobs. All around

the world, job security is protected by labour laws (Ulucan, 2012). On the other hand, due

to some constraints like weaknesses in enforcement of laws, employer pressure on the

governments or distinctive structure of some businesses, it is difficult to maintain job

security in the real sense (Ulucan, 2012). Particularly, in tourism sector, implementation

of job security laws is quite problematic because some hotels are seasonal and the ones

open all year round tend to employ temporary staff. For this reason, in this branch of

business psychological security provided by employers is more effective on overcoming

employee’s work anxiety than job security enforced by laws (Süzek, 2006). Therefore,

dimension of relationship between employee and management in hotels becomes more

important in the positive or negative perception of job security (Senol, 2011). The aspect

of job security and employees’ performance is an area that has always attracted the

attention of the researchers to investigate on the subject.

Coshow, Davis, and Wolosin (2009) performed a cross-sectional analysis of Press

Ganey’s Employee Perspectives survey data. Data from the original survey were collected

from January 1, 2005 to December 31, 2006. Researchers examined the effect of tenure

on job satisfaction and performance. The sample contained 56,253 registered employees

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from 439 health care facilities in 43 states hired on different tenures from those who

worked for less than two year to more than 10 years (Coshow et al., 2009). Results of the

analysis revealed that recognition is initially high in employees during the first two years

of employment, plummets in two to five years of employment, and plateaus around five

years of employment. The authors suggested that organizations concentrate on

recognition, which was distinctly identified as a major intrinsic factor (Coshow et al.,

2009) in enhancing the workers’ performance. Professional growth may also play a role

in boosting employees’ performance. Work responsibilities may also play a role in

boosting employees’ performance.

2.4.2 Training

Training can be defined as a method of preparing an employee to perform a task by

providing them with information about the task, a demonstration of its performance, an

opportunity for the employee to imitate the demonstration and subsequent feedback

(Schermerhorn, 2010). Many business operators feel that effective job training makes an

important contribution to the performance of the employees. In the real world, employee

performance is affected by a number of factors. Employee training plays a vital role in

improving performance as well as increasing employee productivity (Griffin, 2012). This

in turn leads to placing organizations in the better positions to face competition and stay

at the top. This therefore implies an existence of a significant difference between the

organizations that train their employees and organizations that do not. Existing literature

presents evidence of an existence of obvious effects of training and development on

employee performance. Some studies have proceeded by looking at performance in terms

of employee performance in particular (Müller, 2011) while others have extended to a

general outlook of organizational performance (Schermerhorn, 2010).

In one way or another, the two are related in the sense that employee performance is a

function of organizational performance since employee performance influences general

organizational performance. In relation to the above, (Robbins, 2009) note that employee

competencies change through effective training programs. It therefore not only improves

the overall performance of the employees to effectively perform their current jobs but also

enhances the knowledge, skills an attitude of the workers necessary for the future job,

thus contributing to superior organizational performance (Griffin, 2012). Training has

been proved to generate performance improvement related benefits for the employee as

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well as for the organization by positively influencing employee performance through the

development of employee knowledge, skills, ability, competencies and behaviour

(Schermerhorn, 2010). Moreover, other studies for example one by Pride, (2011),

elaborate on training as a means of dealing with skill deficits and performance gaps as a

way of improving employees’ performance.

According to Ulucan (2012), bridging the performance gap refers to implementing a

relevant training intervention for the sake of developing particular skills and abilities of

the employees and enhancing employee performance. He further elaborate the concept by

stating that training facilitate organization to recognize that its workers are not performing

well and a thus their knowledge, skills and attitudes needs to be molded according to the

firm needs. It is always so that employees possess a certain amount of knowledge related

to different jobs. However, it is important to note that this is not enough and employees

need to constantly adapt to new requirements of job performance. In other words,

organizations need to have continuous policies of training and retaining of employees and

thus not to wait for occurrences of skill and performance gaps. According to Numerof

(2003), employee competencies change through effective training programs. It not only

improves the overall performance of the employees to effectively perform the current job

but also enhance the knowledge, skills and attitude of the workers necessary for the future

job, thus contributing to superior organizational performance. Through training the

employee competencies are developed and enable them to implement the job related work

efficiently, and achieve firm objectives in a competitive manner. Further still,

dissatisfaction complaints, absenteeism and turnover can be greatly reduced when

employees are so well trained that can experience the direct satisfaction associated with

the sense of achievement and knowledge that they are developing their inherent

capabilities (Schermerhorn, 2010).

2.4.3 Work Responsibilities

Work responsibilities refer to a clear definition and understanding of job role, function

and responsibilities among individual and teams in the workplace (Lockwood, 2013).

Tetrick and Buffardi (2006) explained that employee performance may be affected by the

individual difference between the propensity for work involvement and job commitment.

Higher levels of involvement may negatively affect employees’ job performance. In this

study, a second model was tested that examined job involvement as a potential moderator

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of the relationship between emotional labour and work life balance. Tetrick and Buffardi

(2006) results showed that emotional labour could bring affect the employee job

performance. Teachers who were more involved in their work tended to have a stronger

conflict between emotional labour and employee job performance. Findings suggest that

interventions are required to enhance the emotion management skills of teachers. The

development of “healthy” work role separation between work and home responsibilities

should be encouraged to ensure that the negative impact of emotional labour does not

manifest itself as negative spill over on employee performance.

Grandey and Cropanzano (2009) study on the examination of the factors that may help

employees to manage the work-home interface (such as social support) as well as increase

work-life conflict (such as long working hours). The study revealed that there was a

negative association between levels of professional commitment and employee job

performance. As professional commitment might increase the risk of work demands

spilling over into non-work activities due to excessive involvement in the work role, it led

to a negative work life balance. Fisher et al. (2013) describes work role conflict as

occurring when different people or different work functions, for instance, two supervisors

making conflicting demands on an employee. These results to negative work life balance

by not meeting one or other the supervisor expectations. In addition, there will be

negative work life balance when there are conflicting demands between work and non-

work responsibilities. Some work role may lead to stressful job situations that may affect

employee job performance. Good communication may also play a role in boosting

employees’ performance.

2.4.4 Communication

Communication can be defined as the process of exchanging ideas or opinions between

individuals in any setting (Lockwood, 2013). Adkins (2006) notes that communication is

very essential to keeping employees motivated and helps in maintaining a high

performance in the workforce. Regular communication on the staff appraisals and

performance are crucial in articulating the objectives of the business. By so doing,

employees can get a clear sense of what is expected of them. Adkins (2006) stresses

further that managers need to let ‘people know how they contribute to the company and

how they make a difference. Lockwood (2013) argues that good communication

motivates and inspires the employees. Employees should know about everything that

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concerns them directly or indirectly and give the management an accurate detail of their

work activities as soon as possible to enhance their performance. It is important for the

management to respond appropriately to employee demands and help set up a help desk

for “other queries” to promote a healthy work life balance that would lead to enhanced

employee performance. Exchange of information between management and staff to work

together creatively enables decisions to be reached quickly and easily as well as open

plans for enhanced employees’ job performance.

Robins (2004) encourages and guides discussion about involvement and contribution.

Both formal and informal discussions are encouraged. In this case disagreements often

pave the way for consensus. Contrary views are treated with respect and disagreements,

explained fully. According to Robbins (2004), communication and thinking are important

activities in management. The management should avail itself to listen, talk, encourage

and promote healthy work life balance. The employees should be engaged in decisions

that might affect them, instead of merely informing them after the fact. Employee

concerns or new policies should be addressed and a feedback given. In case of a problem

they have pin-pointed, they should be told the way forward and even their input sought

because involving staff from an earlier stage encourages all members to feel that they can

make a difference for a healthy work life balance.

According to Evans (2010), the basic component of improved job performance is co-

operation. This brings about good employee relations and promotes loyalty and

commitment. He argues that this should be given by and expected from all members of an

organization. The root causes of repeated complaints should be found out and eradicated

without delay. The relationship among the staff should be to help them to help

themselves. In this case, it is necessary to inform staff of their ideas and success rates.

Consequently, answering staff questions and investing in new tools or training if

requested brings about major improvements in staff motivation levels. Motivation level

here can also be increased by moving towards less rather than more control (Stevenin,

2007). Staff should be open in their appearance and behaviour. The employer on the other

hand should have a good reason and an explanation for refusing a request. He should also

never offer to finance anything unless he can raise the funds. This kind of actions can

inflict a level of damage that cannot be recouped. The management has to encourage team

members to share ideas and support one another. In addition, the management should also

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monitor individual working conditions and help staff develop their full potential (Hellen,

2008). Therefore, the management of NGOs should ensure that the working conditions,

pay and status issues, job security and working atmosphere are managed properly and in a

way that brings promotes employee job performance. Management practices may also

play a role in boosting employees’ performance.

2.4.5 Work Environment

Work environment is considered to be one of the critical roles that endear the

organization to employees (Ramlall, 2014). Factors such as job opportunities which exist

outside the organization make it essential to influence employees’ decisions to be

engaged and stay with the organization. When external attractions such as higher pay in

other organisations arise, leaders have the obligation to create a work environment for

employees that will enable them to resist such factors. This in turn enables employees to

meet their performance (earning potential) due to open communication and requisite

levels of training and support provided by such a management style (Samuel and

Chipunza, 2009). Amar (2014) discerns that modern organisational leaders are busy

eliminating organizational barriers which are in the way of employees’ creativity and

performance in their jobs, obstacles and organisational policies that create hurdles.

Organizations are recommended to eliminate barriers that can go against employee

motivation thus hindering their performance.

The management practices can be improved in removing the structures and strict

formalities which hinder employee freedom and performance. This will in turn decrease

the high turnover rate caused by the rigid organisational policies. As a result of the

satisfying social atmosphere that exists in the organisation which include happy and

friendly environment reminiscent of a family environment, employees’ intention to quit is

or under performance is eliminated (Samuel, 2008). Ramlall (2014) points out that good

working conditions and similar factors provide more scope to a manager’s role in

motivating employees to enhance their performance other than compensation. Ramlall

(2014) adds that professions should be structured so as to cultivate experiences of an

employee of responsibility, meaningfulness, and knowledge of the outcome of one’s

effort. There are three specific core factors that are desirable for making work feel

meaningful, motivating and provide the potential for high performance; they include skill

variety, task significance and task identity.

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2.5 Chapter Summary

This chapter reviewed literature in the role of employees’ motivation through rewards on

organizational performance. It discussed the extent to which extrinsic motivation affects

employees’ performance, the extent to which intrinsic motivation affects employees’

performance and the extent to which other factors affect employees’ performance. The

next chapter is on the research methodology.

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CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

The study aimed to determine the role of motivation on employees’ performance using

the case of Victoria Commercial Bank. This chapter highlighted the various methods and

procedures the researcher will adopt in conducting the study in order to address and

answer the research objectives raised in the first chapter. This chapter was organized in

the following structure: the research design, population and sample, data collection

methods, sampling design and sample size, research procedures, data analysis methods

and lastly the chapter summary.

3.2 Research Design

This research adopted a descriptive research design. A descriptive research design is a

scientific method which involves observing and describing the behaviour of a subject

without influencing it in any way (Malhotra, 2007). In addition, a descriptive study

attempts to describe a subject, often by creating a profile of a group of problem, people or

events, through collections of data and the tabulation of frequencies on research variables

and the research reveals who, what, when, where or how much (Cooper and Schindler,

2003).

Descriptive research is considered appropriate because subjects are normally observed in

their natural set up and can result in accurate and reliable information (Britt, 2006). This

design lends itself to various approaches. This study adopted the survey approach. A

survey in form of standardized questions in a questionnaire was used to collect data. A

survey is defined by Malhotra (2007) as a method of collecting data from people about

who they are, how they think (motivations and beliefs) and what they do (behaviour).

This study was guided by three independent variables: extrinsic motivation, intrinsic

motivation and other motivational factors while the dependent variable is the employees’

performance.

3.3 Population and Sampling Design

3.3.1 Population

Cooper and Schindler (2003) describe a population as the total collection of elements

whereby references have to be made. In this study, the target population comprised of 55

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Victoria Commercial Bank employees comprised from the following departments:

operations, finance, treasury, trade finance, human resource, marketing and credit

department. Table 3.1 indicates the total population distribution.

Table 3.1: Total Population Distribution

Departments Total Population

Operations 9

Finance 9

Treasury 8

Trade Finance 10

Human Resource 7

Marketing and Credit 12

Total 55

3.3.2 Sampling Design and Sample Size

3.3.2.1 Sampling Frame

A research sampling frame is that part of the research plan that indicates how cases are to

be selected for observation. The design therefore maps out the procedure to be followed

to draw the study’s sample. A sampling frame is a list of elements from which the sample

is actually drawn and is closely related to the population under study (Cooper &

Schindler, 2003). In this study, the sampling frame constituted of a list of the bank

employees that was obtained from the human resource department headquarter.

3.3.2.2 Sampling Techniques

The multi stage sampling technique was adopted. The sampling techniques include the

purposive sampling method in the determination of employees to be included in the study.

The purposive sampling will be used when the various sampling units satisfy certain

criteria of interest. In this study, the chosen group must be employees with Victoria

Commercial Bank. Random sampling technique (Lottery Method) will also be employed

to ensure fair representation of individual members in the groups selected for the study. A

random sample is a subset of individuals (a sample) chosen from a larger set (a

population). Each group will be chosen randomly and entirely by chance, such that each

individual has the same probability of being chosen at any stage during the sampling

process, and each individual has the same probability of being chosen for the sample

(Yates, Daniel, Moore and Starnes, 2008). This minimized bias and simplified analysis of

the results.

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3.3.2.3 Sampling Size

Determining sample size is a very important issue for collecting an accurate result within

a quantitative survey design. The sample size is a smaller set of the larger population

(Cooper & Schindler, 2003). Cooper and Schindler argue that the sample must be

carefully selected to be representative of the population and the need for the researcher to

ensure that the subdivisions entailed in the analysis are accurately catered for. To obtain

the minimum sample, the study relied on a census. Therefore the study was based on a

census comprising of 55 employees who are sufficient and representative of the whole

population which is already too small.

Table 3.2: Sample Size Distribution

Departments Total Population Percentage Sample Size

Operations 9 100 9

Finance 9 100 9

Treasury 8 100 8

Trade Finance 10 100 10

Human Resource 7 100 7

Marketing and Credit 12 100 12

Total 55 100 55

3.4 Data Collection Method

The study used primary data collection. The data collection method is a survey and

questionnaires were used in the study. Maholtra (2007) explains that questionnaires are an

important data collection tool. In addition, the use of questionnaires was justified because

they provided an effective and efficient way of gathering information within a very short

time. Further, the questionnaires facilitated easier coding and analysis of data collected.

The questionnaires had closed ended questions divided into four sections: first section

contained the respondent’s demographics with eleven questions. The second section

addressed the extent to which extrinsic motivation affects employees’ performance with

fifteen questions. The third section looked at the extent to which intrinsic motivation

affects employees’ performance with fifteen questions. The fourth section looked at the

extent to which other factors affect employees’ performance with fifteen questions. A 5-

point likert scale was applied and it consisted of a series of statements that express

strongly agree to strongly disagree.

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3.5 Research Procedures

The questionnaire were formulated and submitted to human resource authorities for

clarity and content validity. This was preceded by seeking the approval of the

management in data collection. After the approval and before the actual data collection

the questionnaires were pretested for efficiency among 5 respondents who were not part

of the study. This enabled the researcher to fine tune the questionnaire for objectivity and

efficiency of the process. According to Mugenda and Mugenda (2009), this ensures the

reliability of the data collected for the purposes of the research. A letter of introduction

was attached to the questionnaire explaining the purpose of the study. The questionnaires

was administered with the aid of a research assistant using drop and pick method from the

respondents during week days. Follow up reminders, which include emails, text messages

and phone calls were used to achieve high response rate. Each questionnaire was

estimated to take twenty minutes to complete and the respondents’ confidentiality was

maintained.

3.6 Data Analysis Methods

To ensure easy analysis, the questionnaires were coded according to each variable of the

study. This study used descriptive statistics. According to Mugenda and Mugenda (2009),

descriptive analysis involves a process of transforming a mass of raw data into tables,

charts, with frequency distribution and percentages, which are a vital part of making

sense of the data. In this study, the descriptive statistics were used to give meaning to the

data. Inferential statistics such as correlation and regression were used to determine the

relationship between the independent (extrinsic, intrinsic and other motivational factors)

and dependent variables (employees’ performance). Data was analyzed using Statistical

Package for Social Sciences (SPSS) program and presented using tables, and figures to

give a clear picture of the research findings at a glance.

3.7 Chapter Summary

This chapter presents the various methods and procedures the researcher adopted in

conducting the study in order to answer the research questions raised in the first chapter.

The chapter was organized in the following ways: the research design, population and

sample, data collection methods, sampling design and sample size, research procedures

and data analysis. The next chapter presents the results and findings of the study.

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CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter addresses the results and findings on the role of motivation on employees’

performance using the case of Victoria Commercial Bank of Kenya. The findings are

outlined according to specific objectives of the study. The findings are based on the

responses from the questionnaires filled and information gathered on the research

questions. The first research question determined the extent to which extrinsic motivation

affect employees’ performance. The second research objective determined the extent to

which intrinsic motivation affect employees’ performance and the third research question

established how other factors affect employees’ performance. Out of a targeted 55

respondents, 45 responded to the questionnaires. This represented an effective response

rate of 81%. The findings are presented in Table 4.1.

Table 4.1: Response Rate

Category Target Respondents Response Response Rate (%)

Employees 55 45 82

Total 55 45 82

4.2 General Information

The general information is organized in the following areas: gender, age of the

respondents, job category of respondents, work experience, education level, management

interest in motivating employees to enhance performance, satisfaction with the rewards

provided by the organization, satisfaction with implemented reward scheme and

employers having a good sense of what motivates employees.

4.2.1 Gender

The findings illustrates that 54% of the respondents were male and 46% of the

respondents were female. Thus, the findings indicate that majority of the respondents

were male employees. The findings are indicated on Table 4.2.

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Table 4.2: Gender of Respondents

Gender of Respondents Distribution

Frequency Percent

Male 29 54

Female 25 46

Total 45 100

4.2.2 Age of the Respondents

The findings illustrated in Table 4.3 indicate that 19% of the respondents were aged

between 20 to 30 years, 53% between 31 to 45 years, 23% between 46 to 60 years and 5%

were above 61 years. Therefore, the findings indicate that most of the respondents were

below 45 years.

Table 4.3: Age of Respondents

Age of Respondents Distribution

Frequency Percent

20-30 8 19

31-45 23 53

46-60 10 23

Above 61 years 2 5

Total 43 100

4.2.3 Job Category of Respondents

The results in Table 4.4 indicated that most of the respondents were in clerical and

secretarial position (44%). This was followed by 20% in supervisory position, 14% in

management position, 13% in other position and 7% worked as support staff. This

indicates that majority of the respondents were in clerical and secretarial position.

Table 4.4: Job Category of Respondents

Job Category Distribution

Frequency Percent

Management 6 14

Supervisory 9 20

Clerical and Secretarial 19 44

Support Staff 3 7

Others 6 13

Total 44 100

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4.2.4 Work Experience

The results indicated that most of the respondents had worked between 6 to 10 years

(29%). This was followed by 20% with more than 21 years work experience, 19%

between 2 to 5 years, 15% between 11 to 15 years, 12% between 16 to 20 years and 5%

of the respondents had less than one year work experience. This indicates that majority of

the respondents are relatively well experienced. The findings are indicated on Table 4.5.

Table 4.5: Work Experience

Education Distribution

Frequency Percent

Less than 1 year 2 5

2-5 years 8 19

6-10 years 12 29

11-15 years 6 15

16-20 years 5 12

Above 21 years 8 20

Total 40 100

4.2.5 Education Level

The results in Table 4.6 indicated that most of the respondents had university or college

level of education (59%), 22% of the respondents had high school education, 12%

polytechnic, 4% masters’ level and 2% PhD. This indicates that majority of the

respondents were relatively educated and were equally likely to provide responses on the

research questions.

Table 4.6: Education Level

Education Distribution

Frequency Percent

High School 10 22

Polytechnic 5 12

University or College Degree 27 59

Masters Level 2 4

Phd 1 2

Total 45 100

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4.3 Extrinsic Motivation and Employees’ Performance

The study examined the extent to which extrinsic motivation affect employees’

performance from the respondents involved in the study. The findings in Table 4.7

established that most of the respondents were motivated to work harder by the acquisition

stock ownership (mean=3.65). This was followed by money motivating the employees to

do their best (mean = 3.37). Others were motivated to work harder for the highest pay

raises (mean= 3.27) while others worked harder for the amount of compensation that they

expect to get (mean = 3.20). However, few of the respondents were less motivated to

enhance their performance by the merit pay provided by the management (mean=2.67),

less motivated by the extra benefits for exceptional performance (mean=2.59) and very

few respondents were less motivated by the unexpected bonus for the best performance

(mean=2.48).

Table 4.7: Extrinsic Motivation and Employees’ Performance

Pay and Compensation Mean Ranking

Money motivates me to give my best 3.37 2

I earn the same pay as high performers 2.40 13

I earn the same pay as low performers 3.11 6

I perform well on my job to get a pay raise 2.99 8

The best performing workers in the department get the highest

pay raises 3.27 3

I work harder for salary increases and promotions 3.00 7

I work hard for the amount of compensation that I expect to get. 3.20 4

My job provides good fringe benefits for exceptional

performance. 3.18 5

I am motivated to work harder by the acquisition stock

ownership 3.65 1

My job provides extra benefits for exceptional performance. 2.59 11

I am motivated to work hard by the merit pay provided by the

management. 2.67 10

When I receive an unexpected bonus for a job, I usually give

my best performance 2.48 12

I have convenient working hours to enhance my performance. 2.69 9

4.3.1 Correlation between Extrinsic Motivation and Employees’ Performance

The aim of this section was to determine the association between the employer good

sense of employees’ motivation and extrinsic motivational reward system on employee

performance. There was significant relationship between employee motivation and the

best performing workers in the department get the highest pay raises at (r=.085, p>0.01).

There was also a significant relationship between employee motivation and the job

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providing extra benefits for exceptional performance at (r=0.671, p>0.01). The findings

are presented in Table 4.8.

Table 4.8: Correlation between Extrinsic Motivation and Employees’ Performance

Employee Motivation

Employee Motivation Pearson Correlation 1

Sig. (2-tailed)

Money Motivates me to give my best

performance

Pearson Correlation .040

Sig. (2-tailed) .806

I earn the same pay as high performers Pearson Correlation .028

Sig. (2-tailed) .862

I earn the same pay as low performers Pearson Correlation -.048

Sig. (2-tailed) .769

I perform well on my job to get a pay

raise

Pearson Correlation .105

Sig. (2-tailed) .512

The best performing workers in the

department get the highest pay raises

Pearson Correlation .085**

Sig. (2-tailed) .000

I work harder for salary increases and

promotions

Pearson Correlation -.083

Sig. (2-tailed) .614

I work hard for the amount of

compensation that I expect to get.

Pearson Correlation -.114

Sig. (2-tailed) .485

My job provides good fringe benefits

for exceptional performance.

Pearson Correlation -.050

Sig. (2-tailed) .761

I am motivated to work harder by the

acquisition stock ownership

Pearson Correlation .082

Sig. (2-tailed) .618

My job provides extra benefits for

exceptional performance.

Pearson Correlation .671**

Sig. (2-tailed) .002

I am motivated to work hard by the

merit pay provided by the

management.

Pearson Correlation -.158

Sig. (2-tailed) .330

When I receive an unexpected bonus

for a job, I usually give my best

performance

Pearson Correlation -.186

Sig. (2-tailed) .257

I am inspired by the gifts associated

with exemplary performance.

Pearson Correlation .314

Sig. (2-tailed) .055

My supervisor stimulates enthusiasm

by rewarding extra efforts for good

performance.

Pearson Correlation .063

Sig. (2-tailed) .707

My workplace is well equipped to

enhance my performance.

Pearson Correlation .207

Sig. (2-tailed) .212

I have convenient working hours to

enhance my performance.

Pearson Correlation .020

Sig. (2-tailed) .903 *. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

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4.4 Intrinsic Motivation and Employees’ Performance

The study aimed to determine the extent to which intrinsic motivation affect employee

performance from the respondents involved in the study. The findings in the established

that the respondents were motivated to work harder by the challenges encountered at

(mean= 4.33). This was followed by the respondents being motivated by the job

providing an opportunity for advancement opportunities for a job well done (mean=

3.87), others were inspired to enhance their performance working hard to compete with

others who are clearly superior in skills (means=3.80) and a large number of the

respondents agreed that their job supervisor recognizes employees for their work

(mean=3.80). However, a small number of the respondents agreed that they were less

motivated by the recognition of what they do (mean=3.35). Fewer respondents mentioned

that they were motivated to enhance their performance by the company recognizing and

acknowledging employees hard work (mean=3.16) and very few respondents agreed that

once they reach an important goal, they less strive to achieve higher goals (mean=2.77).

The findings are presented in Table 4.9.

Table 4.9: Intrinsic Motivation and Employees’ Performance

Intrinsic Motivational Rewards on Employees’ Performance

Mea

n

Ran

kin

g

I enjoy working everyday and performing at my best 3.52 11

The opportunity to be involved in organizational decision making inspires

me to give my best 3.62 7

The management allows me to take risks for exceptional performance. 3.45 12

The company recognize and acknowledges my hard work. 3.16 14

My job supervisor recognizes me for my work. 3.80 4

I strive to be recognized for whatever I do. 3.35 13

I work hard to compete with others who are clearly superior in skills. 3.80 3

My job provides an opportunity for advancement opportunities for a job

well done. 3.87 2

I am motivated to work harder by challenges 4.33 1

The competitive nature of my job makes me work harder 3.75 6

When I reach one important goal, I immediately strive for higher goals. 2.77 15

Support from my co-workers is helpful to get me motivated to be my best 3.76 5

Support from my supervisors is helpful to get me motivated in giving my

best 3.61 8

Team building programs run by the company enhances my work relation

with others 3.58 10

The management fully explains my work assignments for effective

performance. 3.60 9

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4.4.1 Correlation between Intrinsic Motivation and Employees’ Performance

The aim of this section was to determine the association between the employer good

sense of employee motivation and intrinsic motivational reward system on employee

performance. There was significant relationship between employee motivation and the

employees enjoying to work every day at their best at (r=0.776, p>0.01). The relationship

was extended to the employees working hard to compete with others who are clearly

superior in skills at (r=0.463, p>0.01) and the importance of reaching higher goals at

(r=0.885, p>0.01). The findings are presented in Table 4.10.

Table 4.10: Correlation between Intrinsic Motivation and Employees’ Performance

Employee

Motivation

Employee Motivation Pearson Correlation 1

Sig. (2-tailed)

I enjoy working everyday at my best Pearson Correlation .776**

Sig. (2-tailed) .000

The opportunity to be involved in organizational

decision making inspires me to give my best

Pearson Correlation .183

Sig. (2-tailed) .264

The management allows me to take risks for

exceptional performance.

Pearson Correlation .095

Sig. (2-tailed) .565

The company recognizes my hard work. Pearson Correlation .337*

Sig. (2-tailed) .034

My job supervisor recognizes me for my work. Pearson Correlation .239

Sig. (2-tailed) .138

I strive to be recognized for whatever I do. Pearson Correlation .104

Sig. (2-tailed) .529

I work hard to compete with others who are

clearly superior in skills.

Pearson Correlation .463**

Sig. (2-tailed) .000

My job provides an opportunity for

advancement.

Pearson Correlation .109

Sig. (2-tailed) .508

I am motivated to work harder by challenges Pearson Correlation -.163

Sig. (2-tailed) .321

The competitive nature of my job makes me

work harder

Pearson Correlation .172

Sig. (2-tailed) .309

When I reach one important goal, I immediately

strive for higher goals.

Pearson Correlation .885**

Sig. (2-tailed) .001

The management helps me demonstrate my

competence and ability

Pearson Correlation .376

Sig. (2-tailed) .085

Support from my co-workers is helpful to get me

motivated in giving my best

Pearson Correlation .033

Sig. (2-tailed) .841

Support from my supervisors is helpful to get me

motivated in giving my best

Pearson Correlation -.051

Sig. (2-tailed) .760

Team building programs run by the company

enhances my work relation with others

Pearson Correlation .109

Sig. (2-tailed) .510

The management fully explains my work

assignments for effective performance.

Pearson Correlation .180

Sig. (2-tailed) .267 *. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

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4.5 Other Motivational Factors and Employees’ Performance

The study determined how the other factors affect employee performance from the

respondents involved in the study. The findings suggests that most of the respondents

agreed that training helps employees perform their tasks well (mean = 4.25). This was

followed by the work conditions are favourable for employees to work hard in their job

(mean= 4.14), a large number of the respondents agreed that the management listens to

both verbal and non verbal communication of individuals for enhanced performance

(mean=4.09) and a significant number of the respondents agreed that their workload is

heavy to meet their performance targets at (mean=3.93).

A few number of the respondents agreed that training enhances the employee skills to

improve their performance at work (mean=3.41). Very few respondents mentioned that

there are greater demands placed on them at the workplace (mean= 3.39). A small number

of the respondents agreed that they were less motivated by work conditions to enhance

their performance (mean=3.09), fewer number of the respondents agreed that they have

good communication relationship with their colleagues for enhanced performance

(mean=3.05) and the management makes the employees work feel meaningful to enhance

their skills (mean=2.89). The findings are presented in Table 4.11.

Table 4.11: Other Motivational Factors and Employees’ Performance

Role of Other Motivational Rewards on Organization

Performance

Mean Ranking

My work conditions are favourable for me to work hard. 4.14 2

My employer inspires me to work hard. 3.43 10

Training helps me perform my tasks well. 4.25 1

Training helps me perform my duties efficiently 3.80 5

My workload is heavy to meet my performance targets 3.93 4

The management listens to both verbal and non verbal

communication of individuals like me 4.09 3

I spend a lot of time working hard at work. 3.69 7

My work conditions are friendly to enhance my performance. 3.09 13

I have good communication relationship with my colleagues 3.05 14

Training enhances my skills to improve my performance at

work. 3.41 11

There are greater demands placed on us at the workplace. 3.39 12

My job conflicts with my performance. 3.51 8

My organization structure boosts my performance. 3.76 6

Good working conditions enhance my performance. 3.45 9

The management makes my work feel meaningful. 2.89 15

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4.5.1 Correlation between Other Motivational Factors and Employees’ Performance

The findings revealed that there was a strong relationship between employee motivation

and the work conditions being friendly to enhance employee performance at (r=0.456,

p>0.01). The relationship was extended to employees having good relations with other

employees boost their performance at (r=0.714, p>0.01). The findings are presented in

Table 4.12.

Table 4.12: Correlation between Other Motivational Factors and Employees’

Performance

Employee

Motivation

Employee Motivation Pearson Correlation 1

Sig. (2-tailed)

My work conditions are favourable for me to

work hard.

Pearson Correlation -.091

Sig. (2-tailed) .577

My employer inspires me to work hard. Pearson Correlation .056

Sig. (2-tailed) .733

Training helps me perform my tasks well. Pearson Correlation .080

Sig. (2-tailed) .623

Training helps me perform my duties

efficiently

Pearson Correlation .186

Sig. (2-tailed) .250

My workload is heavy to meet my

performance targets

Pearson Correlation .175

Sig. (2-tailed) .281

The management listens to both verbal and

non verbal communication of individuals like

me

Pearson Correlation -.064

Sig. (2-tailed) .695

I spend a lot of time working hard at work. Pearson Correlation .014

Sig. (2-tailed) .934

My work conditions are friendly to enhance

my performance.

Pearson Correlation .540**

Sig. (2-tailed) .000

I have good communication relationship with

my colleagues

Pearson Correlation .001

Sig. (2-tailed) .979

My job security improves on my performance

at work.

Pearson Correlation .075

Sig. (2-tailed) .648

There are greater demands placed on us at the

workplace.

Pearson Correlation .036

Sig. (2-tailed) .825

My job conflicts with my performance. Pearson Correlation .069

Sig. (2-tailed) .670

My good relations with other employees

boost my performance.

Pearson Correlation .714**

Sig. (2-tailed) .000

My organization structure boosts my

performance.

Pearson Correlation -.050

Sig. (2-tailed) .761

Good working conditions enhance my

performance.

Pearson Correlation .082

Sig. (2-tailed) .618

The management makes my work feel

meaningful.

Pearson Correlation -.171

Sig. (2-tailed) .299

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

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4.6 Chapter Summary

The findings established that most of the respondents were motivated to work harder by

the acquisition stock ownership. This was followed by money motivating the employees

to do their best. Others were motivated to work harder for the highest pay raises while

others worked harder for the amount of compensation that they expect to get. However,

few of the respondents were less motivated to enhance their performance by the merit pay

provided by the management. The findings established that the respondents were

motivated to work harder by the challenges encountered. This was followed by the

respondents being motivated by the job providing an opportunity for advancement

opportunities for a job well done. However, a small number of the respondents agreed

that they were less motivated by the recognition of what they do. The study determined

how the other factors affect employee performance from the respondents involved in the

study. The findings suggest that most of the respondents agreed that training helps

employees perform their tasks well. This was followed by the terms being favourable for

employees to work hard in their job. A few number of the respondents agreed that they

have good communication relationship with their colleagues for enhanced performance

and the management makes the employees work feel meaningful to enhance their skills.

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CHAPTER FIVE

5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

In this section, the researcher provides a discussion on the findings of the research as

compared to the findings in the literature review, the summary of the study and

recommendations for further improvement on identifying the measures to be taken on the

most appropriate reward system in enhancing employees’ motivation. The research

discussion is on the basis of the research questions.

5.2 Summary

The purpose of this study was to investigate the role of motivation on employees’

performance using the case of Victoria Commercial Bank of Kenya. This study was

guided by the following research questions. To what extent does extrinsic motivation

affect employees’ performance in Victoria Commercial Bank? To what extent does

intrinsic motivation affect employees’ performance in Victoria Commercial Bank? What

other factors affect employees’ performance in Victoria Commercial Bank?

This study adopted a descriptive research design. The population of the study was 55

employees of Victoria Commercial Bank of Kenya. A census sampling was done and so

the 55 employees constituted the sample size. A structured questionnaire was used to

collect the data. The questionnaire was administered by the researcher. The completed

questionnaires were edited for completeness. The data was analyzed using the statistics

package for social sciences (SPSS) computer package. The data was interpreted using

descriptive statistics through frequencies, percentages and regression analysis. The

findings were presented in the form of tables and figures.

The findings established that most of the respondents were motivated to work harder by

the acquisition stock ownership. This was followed by money motivating the employees

to do their best. Others were motivated to work harder for the highest pay raises while

others worked harder for the amount of compensation that they expect to get. However,

few of the respondents were less motivated to enhance their performance by the merit pay

provided by the management, less motivated by the extra benefits for exceptional

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performance and very few respondents were less motivated by the unexpected bonus for

the best performance.

The findings established that the respondents were motivated to work harder by the

challenges encountered. This was followed by the respondents being motivated by the job

providing an opportunity for advancement opportunities for a job well done, others were

inspired to enhance their performance working hard to compete with others who are

clearly superior in skills and a large number of the respondents agreed that their job

supervisor recognizes employees for their work. However, a small number of the

respondents agreed that they were less motivated by the recognition of what they do.

Fewer respondents mentioned that they were motivated to enhance their performance by

the company recognizing and acknowledging employees hard work and very few

respondents agreed that once they reach an important goal, they less strive to achieve

higher goals.

The study determined the other factors that affect employee performance from the

respondents involved in the study. The findings suggest that most of the respondents

agreed that training helps employees perform their tasks well. This was followed by the

terms being favourable for employees to work hard in their job, a large number of the

respondents agreed that the management listens to both verbal and non verbal

communication of individuals for enhanced performance and a significant number of the

respondents agreed that their workload is heavy to meet their performance targets. A few

number of the respondents agreed that they have good communication relationship with

their colleagues for enhanced performance and the management makes the employees

work feel meaningful to enhance their skills.

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5.3 Discussion

5.3.1 Extrinsic Motivation and Employees’ Performance

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. The

findings established that most of the respondents were motivated to work harder by the

acquisition stock ownership. Similarly, Khan, Farooq and Ullah (2010) suggests that

stock options usually reward employees for sticking around, serving as a long-term

motivator. Once an employee has been with a company for a certain period of time

(usually around four years), he or she is fully vested in the program. Torrington et al.

(2009) adds that if the employee leaves the company prior to being fully vested, those

options are cancelled

Profit sharing can also be used to reward team and group accomplishments. The findings

revealed that money motivated the employees to do their best. The benefits can be

provided in actual cash known as monetary rewards. Monetary rewards that recognize

individual achievements in addition to team performance can provide extra incentive for

employees. Similarly, Coshow et al. (2009) suggests that by rewarding outstanding

performance within the organization through monetary rewards can have a positive

outcome on employees’ performance. Mullin (2010) adds that monetary rewards

encourages employees to stay put because it is usually structured to reward employees

who stay with the company.

Pay can be provided to workers for the accomplishment of organization goals. A number

of the employees were motivated to work harder for the highest pay raises. Kreitner and

Kinicki (2007) suggests that the effectiveness of pay as a motivator depends on a number

of circumstances, including the value and needs of individuals and their preference for

different types of financial or non-financial rewards. Similarly Armstrong and Murlis

(2004) further commented that pay is important to people because it is instrumental in

satisfying a number of their most pressing needs. Khan, Farooq and Ullah (2010) adds

that pay is significant not only because of what they can buy but also a highly tangible

method of recognizing their worth, thus, improving their self-esteem and gaining esteem

of others.

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Merit pay may have shortcomings as the only reward for recognizing employee

performance. Few of the respondents were less motivated to enhance their performance

by the merit pay provided by the management. Daniel (2000), comments that, although

merit pay can be used occasionally but should not be the main incentive for rewarding

exceptional performance. Mullin (2010) add that even though most people, in most

circumstances, like pay, it provides limited reinforcement for the cost. Pay in the form of

money is soon spent and the memory of it soon fades, whereas other tangible incentives

are kept longer and acts as a constant remainder of some accomplishment. To further

support this, Baron (2008) indicates that the link between pay as an extrinsic reward and

employee performance has yielded negative results.

Bonus programs are usually rewards provided to individuals for their accomplishment in

a particular task. However, very few respondents were less motivated by the unexpected

bonus for the best performance. This may be because bonuses are generally short-term

motivators. Odell (2005) explains that bonuses are frequently used in sales organizations

to encourage salespersons to generate additional business or higher profits. They can also

be used, however, to recognize group accomplishments. Indeed, increasing numbers of

businesses have switched from individual bonus programs to one which rewards

contributions to corporate performance at group, departmental, or company-wide levels.

Yin and Yang (2012) recommends that bonuses need to be carefully structured to ensure

they are rewarding accomplishments above and beyond an individual or group's basic

functions. Otherwise, they run the risk of being perceived of as entitlements or regular

merit pay, rather than a reward for outstanding work.

5.3.2 Intrinsic Motivation and Employees’ Performance

Employees can enhance their performance as a result of challenging work responsibilities

that may lead to career fulfilments. The findings established that the respondents were

motivated to work harder by the challenges encountered. Similarly, Hatcher et al. (2006)

found that professional growth, such as provision of challenges, increases performance

among employees. To further support this argument, Tourangeau et al. (2010) found that

the provisions of challenges and support from the organization for professional

development of the employee practice are important to employees for boosting the

workers’ performance. The authors reported that the opportunities for new challenges are

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a motivator for boosting their performance. It was also reported that opportunities for

professional development, such as educational offerings, have the potential to increase

employee performance (Tourangeau et al., 2010).

Provision of job opportunities may present the best incentives for boosting employees’

performance in the long run. The results indicated that the respondents were motivated

by the job providing an opportunity for advancement opportunities for a job well done.

Similarly, Schneier (2005) found that professional growth through job opportunities was a

more effective way to motivate a team as compared to monetary rewards. Yin and Yang

(2012) found that a positive correlation between professional growth and job

performance. Moseley et al. (2008) recommended professional growth should be

enhanced as a means of continually fostering increased performance (Moseley et al.,

2008). Such interventions would promote employee motivation to give the best of their

performance.

Job supervisors can inspire the followers towards the achievement of the organizational

goals and employee performance. A large number of the respondents agreed that their job

supervisor recognizes employees for their work. Tourangeau et al (2010) also supports

these findings by suggesting that leadership support, as well as relationships with the

manager, are motivators for increased employee performance. The authors also found that

flexible scheduling is an equally important variable. Based on the finding of this study,

participants felt leaders who provided flexible scheduling had a positive impact on

employee performance. In most focus groups, the leader’s capabilities, motives, and

relationship with the employees affected the employee’s performance (Tourangeau et al.,

2010).

Some organizations recognize workers’ performance for a job well done. However, a

small number of the respondents agreed that they were less motivated by the recognition

of what they do. Similarly, Coshow et al., (2009) results of the analysis revealed that

recognition is initially high in employees during the first two years of employment,

plummets in two to five years of employment, and plateaus around five years of

employment. In addition, fewer respondents mentioned that they were motivated to

enhance their performance by the company recognizing and acknowledging employees

hard work.

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Employees can find and create motivation resulting from knowing what they are

supposed to accomplish. Very few respondents agreed that once they reach an important

goal, they less strive to achieve higher goals. It seems that the respondents were not

motivated by knowing why they were employed and having a list of their achievements in

their respective professions. Perhaps, these results may be captured (Vroom, 2008)

argument that there may be limited relationship between employee performance as a

result from work contentment are as follows: firstly, many work situations do not allow

for major movements for the following reasons: in some instances employees must

maintain at least some minimum level of performance to hold on to their jobs; a worker’s

performance is linked to the speed of other employees; an employee’s performance is

linked to the speed of the machinery that they operate.

5.3.3 Other Motivational Factors and Employees’ Performance

Many business operators feel that effective job training makes an important contribution

to the performance of the employees. The findings suggest that most of the respondents

agreed that training helps employees perform their tasks well. However, a few number of

the respondents agreed that training enhances the employee skills to improve their

performance at work. This may suggest that employee performance may be affected by

other factors besides training. Some studies have proceeded by looking at performance in

terms of employee performance in particular (Müller, 2011) while others have extended

to a general outlook of organizational performance (Schermerhorn, 2010). Griffin (2012)

suggests that employee training plays a vital role in improving performance as well as

increasing employee productivity. But training is essential to placing organizations in the

better positions to face competition and stay at the top.

Clear definition and understanding of job responsibilities among individual may enhance

their performance. The findings suggest that the employees were motivated to work hard

in their job due to favorable terms. This indicates that work environment was considered

to be one of the critical roles that endear the organization to employees. Ramlall (2014)

suggests that organization leaders have the obligation to create a work environment for

employees that will enable them to give their best. This in turn enables employees to meet

their performance (earning potential) due to open communication and requisite levels of

training and support provided by such a management style (Samuel and Chipunza, 2009).

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The management practices can be improved in removing the structures and strict

formalities which hinder employee freedom and performance. This will in turn decrease

the high turnover rate caused by the rigid organisational policies.

Also a significant number of the respondents agreed that their workload is heavy to meet

their performance targets. This indicates that higher levels of job involvement may lead to

positive employees’ job performance. The finding contradicts Grandey and Cropanzano

(2009) study that revealed a negative association between levels of professional

commitment and employee job performance. As professional commitment might increase

the risk of work demands spilling over into non-work activities due to excessive

involvement in the work role, it may lead to a negative work life balance. However, very

few respondents mentioned that there are greater demands placed on them at the

workplace. It seems that the management does not makes the employees work feel

meaningful to enhance their skills. Tetrick and Buffardi (2006) explained that employee

performance may be affected by the individual difference between the propensity for

work involvement and job commitment.

Communication is very essential to keeping employees motivated and helps in

maintaining a high performance in the workforce. A large number of the respondents

agreed that the management listens to both verbal and non verbal communication of

individuals for enhanced performance. Regular communication on the staff appraisals and

performance are crucial in articulating the objectives of the business. By so doing,

employees can get a clear sense of what is expected of them. Lockwood (2013) argues

that good communication motivates and inspires the employees. Employees should know

about everything that concerns them directly or indirectly and give the management an

accurate detail of their work activities as soon as possible to enhance their performance. It

is important for the management to respond appropriately to employee demands and help

set up a help desk to promote the exchange of information between management and staff

to work together creatively enables decisions to be reached quickly and easily as well as

open plans for enhanced employee job performance.

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5.4 Conclusions

5.4.1 Extrinsic Motivation and Employees’ Performance

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. Profit

sharing can also be used to reward team and group accomplishments. Pay can be provided

to workers for the accomplishment of organization goals. Merit pay may have

shortcomings as the only reward for recognizing employee performance but should not be

the main incentive for rewarding exceptional performance. Bonus programs are usually

rewards provided to individuals for their accomplishment in a particular task but they are

generally short-term motivators.

5.4.2 Intrinsic Motivation and Employees’ Performance

Employees can enhance their performance as a result of challenging work responsibilities

that may lead to career fulfilments. The provisions of challenges and support from the

organization for professional development of the employee practice are important to

employees for boosting the workers’ performance. The opportunities for new challenges

are a motivator for boosting their performance. Provision of job opportunities may

present the best incentives for boosting employee performance in the long run.

Professional growth through job opportunities was a more effective way to motivate a

team as compared to monetary rewards. Job supervisors can inspire the followers towards

the achievement of the organizational goals and employee performance. The employees

felt that the organization less recognized workers’ performance for a job well done.

5.4.3 Other Motivational Factors and Employee Performance

Many business operators feel that effective job training makes an important contribution

to the performance of the employees. Employee performance may be affected by other

factors besides training. Clear definition and understanding of job responsibilities among

individual may enhance their performance. Work environment was considered to be one

of the critical roles that endear the organization to employees. Organization leaders have

the obligation to create a work environment for employees that will enable them to give

their best. The management practices can be improved in removing the structures and

strict formalities which hinder employee freedom and performance. Higher levels of job

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49

involvement may lead to positive employees’ job performance. Communication is very

essential to keeping employees motivated and helps in maintaining a high performance in

the workforce.

5.5 Recommendations

5.5.1 Recommendation for Improvement

5.5.1.1 Extrinsic Motivation and Employees’ Performance

The study recommends that stock ownership should continuously be implemented to

motivate the employees to work harder. Stock options have also become increasingly

popular for rewarding employee performance. Profit sharing should continuously be used

to reward team and group accomplishments. Rewarding outstanding performance within

the organization through monetary rewards can also have a positive outcome on

employees’ performance. Pay should continuously be used as an important tool for

boosting employee performance and in satisfying their most pressing needs. Bonuses

need to be carefully structured to ensure they are rewarding accomplishments above and

beyond an individual or group's basic functions. Otherwise, they run the risk of being

perceived of as entitlements or regular merit pay, rather than a reward for outstanding

work.

5.5.1.2 Intrinsic Motivation and Employees’ Performance

The study recommends that the provision of challenges for professional development is

important to employees for boosting the workers’ performance. It is recommended that

the provision of job opportunities may present the best incentives for boosting employee

performance in the long run. Professional growth should be enhanced as a means of

continually fostering increased performance. Leadership support can motivate and

increase employee performance. Organizations should recognize employees’ performance

for work well done. The bank should set realistic goals for the employees, encourage

work place autonomy and freedom, enable the employees to have time for study and

emotionally challenge the employees in their jobs.

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5.5.1.3 Other Motivational Factors and Employee Performance

The study recommends that effective job training makes an important contribution to the

performance of the employee. Employee training plays a vital role in improving

performance as well as increasing employee productivity. A clear definition and

understanding of job responsibilities among individual may enhance their performance.

The management practices can be improved in removing the structures and strict

formalities which hinder employee freedom and performance. Communication is very

essential to keeping employees motivated and helps in maintaining a high performance in

the workforce. It is important for the management to respond appropriately to employee

demands and help set up a help desk to promote the exchange of information between

management and staff to work together creatively for enhanced employee job

performance.

5.5.2 Recommendations for Further Studies

The study suggests that future research could replicate the research objectives with a

focus on another industry especially in the manufacturing sector in Kenya to verify the

results.

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APPENDICES

APPENDIX A: INTRODUCTORY LETTER

To Whom It May Concern

Dear Sir/Madam,

I am a graduate student at USIU pursuing a Masters degree in Business Administration

(MBA). I have designed a questionnaire to gather information on the role of employee

rewards on organizational performance: the case of Victoria commercial bank of Kenya.

Please note that any information you give will be treated with extreme confidentiality and

at no instance will it be used for any other purpose other than for this project. Your

assistance will be highly appreciated.

I look forward to your prompt response.

Yours Faithfully,

Mohamed Albeiti (Researcher)

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APPENDIX B: QUESTIONNAIRE

This study is a requirement for the partial fulfilment for the award of a Masters degree in

Business Administration (MBA). The purpose of this research is to determine the impact

of reward systems on employee motivation, a survey of commercial banks in Kenya.

Please note that any information you give will be treated with extreme confidentiality and

at no instance will it be used for any other purpose other than for this project. Your

assistance will be highly appreciated. I look forward to your prompt response.

Section I: General information

Kindly tick (√) where applicable and do not indicate your names or personnel number.

1. Gender Male [ ] Female [ ]

2. Age bracket 20 – 30 [ ] 31 – 45 [ ] 46 – 60 [ ] above 61 [ ]

3. Job Category

Management [ ] Supervisory [ ]

Clerical and Secretarial [ ] Support Staff [ ]

Other: ___________________

4. Work experience

Less than 1 year [ ] 2 – 5 years [ ] 6 – 10 years [ ]

11 – 15years [ ] 16– 20 years [ ] above 21 years [ ]

5. Educational Level

High School [ ] Masters Level [ ]

Polytechnic [ ] PhD [ ]

University or College Degree [ ] Other (Specify) ________________

6. Management is really interested in motivating the employees to enhance their

performance?

Strongly agree [ ] Agree [ ] Neutral [ ] Disagree [ ] Strongly Disagree [ ]

7. How far you are satisfied with the rewards provided by the organization for

exceptional performance?

Highly satisfied [ ] Satisfied [ ] Neutral [ ] Dissatisfied [ ] Highly Dissatisfied [ ]

8. Do you agree that your employer has a good sense of what will motivate you to give

your best?

Strongly agree [ ] Agree [ ] Neutral [ ] Disagree [ ] Strongly Disagree [ ]

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Section II: Extrinsic Motivation and Employee Performance

Please indicate the extent to which you agree with the following statements by using a

scale of 1 to 5 where 1= strongly disagree and 5 = strongly agree. Please tick (√) which

best describes your opinion of the statement.

Statement

Str

ongly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

ongly

Agre

e

9. Money motivates me to give my best 1 2 3 4 5

10. I earn the same pay as high performers 1 2 3 4 5

11. I earn the same pay as low performers

12. I perform well on my job to get a pay raise 1 2 3 4 5

13. The best performing workers in the department get

the highest pay raises

1 2 3 4 5

14. I work harder for salary increases and promotions 1 2 3 4 5

15. I work hard for the amount of compensation that I

expect to get.

1 2 3 4 5

16. My job provides good fringe benefits for

exceptional performance.

1 2 3 4 5

17. I am motivated to work harder by the acquisition

stock ownership

1 2 3 4 5

18. My job provides extra benefits for exceptional

performance.

1 2 3 4 5

19. I am motivated to work hard by the merit pay

provided by the management.

1 2 3 4 5

20. When I receive an unexpected bonus for a job, I

usually give my best performance

1 2 3 4 5

21. I am inspired by the gifts associated with

exemplary performance.

1 2 3 4 5

22. My supervisor stimulates enthusiasm by rewarding

extra efforts for good performance.

1 2 3 4 5

23. My workplace is well equipped to enhance my

performance.

1 2 3 4 5

24. I have convenient working hours to enhance my

performance.

1 2 3 4 5

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59

Section III: Intrinsic Motivation and Employee Performance

Please indicate the extent to which you agree with the following statements by using a

scale of 1 to 5 where 1= strongly disagree and 5 = strongly agree. Please tick (√) which

best describes your opinion of the statement.

Statement

Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

25. I enjoy working everyday at my best 1 2 3 4 5

26. The opportunity to be involved in

organizational decision making inspires me to

give my best

1 2 3 4 5

27. The management allows me to take risks for

exceptional performance.

1 2 3 4 5

28. The company recognizes my hard work. 1 2 3 4 5

29. My job supervisor recognizes me for my work. 1 2 3 4 5

30. I strive to be recognized for whatever I do. 1 2 3 4 5

31. I work hard to compete with others who are

clearly superior in skills.

1 2 3 4 5

32. My job provides an opportunity for

advancement.

1 2 3 4 5

33. I am motivated to work harder by challenges 1 2 3 4 5

34. The competitive nature of my job makes me

work harder

1 2 3 4 5

35. When I reach one important goal, I

immediately strive for higher goals.

1 2 3 4 5

36. The management helps me demonstrate my

competence and ability

1 2 3 4 5

37. Support from my co-workers is helpful to get

me motivated in giving my best

1 2 3 4 5

38. Support from my supervisors is helpful to get

me motivated in giving my best

1 2 3 4 5

39. Team building programs run by the company

enhances my work relation with others

1 2 3 4 5

40. The management fully explains my work

assignments for effective performance.

1 2 3 4 5

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60

Section IV: Other Motivational Factors and Employee Performance

Please indicate the extent to which you agree with the following statements by using a

scale of 1 to 5 where 1= strongly disagree and 5 = strongly agree. Please tick (√) which

best describes your opinion of the statement.

Statement

Str

on

gly

Dis

agre

e

Dis

agre

e

Neu

tral

Agre

e

Str

on

gly

Agre

e

41. My work conditions are favourable for me to

work hard.

1 2 3 4 5

42. My employer inspires me to work hard. 1 2 3 4 5

43. Training helps me perform my tasks well. 1 2 3 4 5

44. Training helps me perform my duties efficiently 1 2 3 4 5

45. My workload is heavy to meet my performance

targets

1 2 3 4 5

46. The management listens to both verbal and non

verbal communication of individuals like me

1 2 3 4 5

47. I spend a lot of time working hard at work. 1 2 3 4 5

48. My work conditions are friendly to enhance my

performance.

1 2 3 4 5

49. I have good communication relationship with my

colleagues

1 2 3 4 5

50. My job security improves on my performance at

work.

1 2 3 4 5

51. There are greater demands placed on us at the

workplace.

1 2 3 4 5

52. My job conflicts with my performance. 1 2 3 4 5

53. My good relations with other employees boost my

performance.

1 2 3 4 5

54. My organization structure boosts my performance. 1 2 3 4 5

55. Good working conditions enhance my

performance.

1 2 3 4 5

56. The management makes my work feel

meaningful.

1 2 3 4 5