FACTORS INFLUENCING WORKERS PRODUCTIVITY IN BUSINESS ORGANIZATION

FACTORS INFLUENCING WORKERS PRODUCTIVITY IN BUSINESS ORGANIZATION (A CASE STUDY OF NESTLE NIGERIA PLC)

ABSTRACT

The study aims at identifying the factors influencing workers productivity in business organization with reference to Nestle Nigeria PLC as a case study. To do so, 100 workers working in Nestle Nigeria PLC completed a structured questionnaire survey and their response were presented and analyzed using simple percentage for the bio data and chi-square statistical analysis for the hypotheses. The study revealed that there exists a significant relationship between factors influencing workers and their productivity. The research was later summarized, concluded and necessary recommendations suggested in chapter five.

 

 

 

TABLE OF CONTENT

Title page                                                                                           i

Certification                                                                                                              ii

Dedication                                                                                                                 iii

Acknowledgement                                                                                                   iv

Abstract                                                                                                                      v

Table of content                                                                                                       vi

CHAPTER ONE: Introduction

1.1 Background to the Study                                                               1

1.2     Statement of Problem                                                                6

1.3     Objective of the Study                                                               8

1.4     Research Questions                                                                 9

1.5     Research Hypotheses                                                               9

1.6     Significance of the Study                                                          9

1.7     Definition of Terms                                                                   10

 

CHAPTER TWO: Literature Review

2.1.    Introduction                                                                              11

2.2     Theoretical Framework                                                             13

2.2.1   Motivation                                                                                 13

2.2.2  Concept of Motivation                                                               13

2.2.3  Definition of Motivation                                                              14

2.2.4  Need of Motivation                                                                    14

2.2.5  Significance of Motivation                                                         15

2.2.6  Theories of Motivation                                                               16

2.2.7  Types of Motivation                                                                  21

2.2.8  Incentives                                                                                 21

2.3     Conclusion                                                                                32

CHAPTER THREE: Research Methodology

3.1     Area of Study                                                                            34

3.2     Data and Method of Collection                                                   43

3.3     Analytical Technique                                                                 34

3.4     Limitations of the study                                                             35

3.5     Validity of research instrument                                                  35

3.6     Reliability of research instrument                                               36

3.7     Technique for Data Analysis                                                     36

CHAPTER FOUR: Data Presentation and Analysis

4.1     Demographic data on teacher questionnaire                      37

4.2     Data Presentation and Analysis                                       41

4.3     Testing of hypothesis                                                                 57

CHAPTER FIVE: Summary, Conclusion and Recommendation

5.1     Summary                                                                                   68

5.2     Conclusion                                                                                70

5.3     Recommendations                                                           71

REFERENCES                                                                                   72

QUESTIONNAIRE                                                                               75

 

 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Much research time and effort have gone into the attempt to find out what motivates and hence, how best to stimulate the paid worker to greater productivity. Researchers have identified many factors as possessors of motivational capability. Of these factors, money seems to have received the greatest mention. Money has been called many names and ascribed with many attributes. Hertzberg and his colleagues think of it as a dissatisfier or a temporary motivator. Opsahi and Dunnette identify a number of attributes with which other researchers have associated with money. These include their regard of money as a conditioned incentive (Wolfe, 2016); a generalized conditioned reinforcer (Skinner, 2013); an anxiety reducer (Brown, 2013, 2011); a symbol of intangible goods (Gellerman, 2013), and an instrument of gaining desired outcomes (Vroom, 2017). Money seems to have received this great attention as an instrument for industrial motivation, not because of its intrinsic values as money, but because it seems to be a unit of account for most essentials of life. While some writers have argued that money satisfies what Maslow would call a lower order need and, therefore, is a dissatisfier rather than a motivator, others agree that it motivates, at least at certain (often lower) employment echelons, but go further to assert that its motivational impact is clearly more discernible in work situations in developed than in developing countries. This has been contradicted with illustrations from situations where workers’ responses to monetary inducements and pay increases in developing countries have also been significantly positive.

Workers reaction to monetary inducements and pay increases, though not always. Other factors that have been mentioned can be grouped into (i) need for belonging; (ii) recognition and respect; (iii) independence and competence, i.e. status and self-esteem; and (iv) self-fulfillment.

Although there is general agreement among psychologists that man experiences a variety of needs, there is considerable disagreement as to what these needs are and their relative importance. In fact some researchers have postulated various needs that may influence the performance of workers and subsequently increase their productivity in the organization.

Productive workers are very important to any organization because they determine the death and survival of such organization through their performance on the job. A well motivated workforce will definitely contribute to the performance of the organization to achieve its set goals. Over the years the contribution of workers to the growth and development of any organization cannot be overemphasized. They play a vital role in the achievement of organizational objectives by performing their duties in line with business requirements. Workers motivation is equally very essential in the attainment of organizational goals today and every organization strives to meet this challenge in order to influence the productivity of their workers.

One model of motivation that has gained a lot of attention, but not complete acceptance, has been put forward by Maslow (2014). Maslow’s theory argues that individuals are motivated to satisfy a number of different kinds of needs, some of which are more powerful than others. Maslow argues that until these most pressing needs are satisfied, other needs have little effect on an individual’s behaviour. In other words, we satisfy the most prepotent needs first and then progress to the less pressing ones. As one need becomes satisfied, and therefore less important to us, other needs loom up and become motivators of our behaviour.

Herzberg (2015) and his associates began their research into motivation during the examining the models and assumptions of Maslow (2019). The result of this work was the formulation of what Herzberg termed the Motivation-Hygiene Theory (M-H). The basic hypotheses of this are that: Firstly, there are two types of motivators, one type which results in satisfaction with the job, and the other which merely prevents dissatisfaction. The two types are quite separate and distinct from one another. Herzberg called the factors which result in job satisfaction motivators and those that simply prevented dissatisfaction hygiene. Secondly, the factors that lead to job satisfaction (the motivators) are: achievement, recognition, works itself, responsibility, advancement. Thirdly, the factors which may prevent dissatisfaction (the hygiene) are: company policy and administration, working conditions, supervision, interpersonal relations, income, status, security. Hygiene, if applied effectively, can at best prevent dissatisfaction: if applied poorly, they can result in negative feelings about the job.

Motivators are those things that allow for psychological growth and development on the job. Hygiene are simply factors that describe the conditions of work rather than the work itself. Herzberg’s (2015) point is that if you want to motivate people, you have to be concerned with the job itself and not simply with the surroundings.

Hygienic procedures simply prevent disease from occurring. They do not promote growth per se. Herzberg says that we should focus our attention on the individuals in jobs, not on the things that we surround them with. He maintains that we tend to think that growth and development will occur if we provide good working conditions, status, security and administration, whereas in fact what stimulates growth (and motivation to grow and develop) are opportunities for achievement, recognition, responsibility and advancement.

David McClelland in his research work on motivation talked about the need for achievement (2011). Individuals with a high need for achievement have a number of distinctive characteristics which- separate them from their peers. First of all, they like situations where they can take personal responsibility for finding solutions to problems. This allows them to gain personal satisfaction from their achievements. They do not like situations where success or failure results from chance. The important thing is that the outcome be the result of their own skill and effort.

There have been a number of attempts to present models of motivation which list a specific number of motivating needs, with the implication that these lists are all-inclusive and represent the total picture of needs. Unfortunately, each of these models has some weaknesses and gaps as identified above, and we are still without a general theory of motivation. All organizations are concerned with what should be done to achieve sustained high levels of performance through people. Consequently the subject of motivation of workers as derived from the so many attempts made by management practitioner is to look for the best way to manage so as to accomplish an objective or mission with the least inputs of materials and human resources available.

In any serious and competitive society, workers are one of the tools for economic progress. Their welfare is taken into serious consideration because without a dedicated workforce an organization crumbles. It is therefore apparent that the issue of motivation of worker has relevance in managerial function and activities that are aimed at directing the productive effort of the workforce toward achieving organizational objectives.

In spite of all these apparent attendant problems of motivation, and productivity, every organization do necessarily seek means of ensuring continuous productivity, which would be geared towards the accomplishment of organization goals. The organizational system under study cannot be said to be different in any way, in terms of producing the results for which it was set up.

Motivation also finds relevance in the behavioral sciences especially in psychology where attempts are made to find out the, what, when, how and why of human behaviour. Gbadamosi and Adebakin (2016) posit that motivation is an aspect of the behavioral sciences that attempts to answer the question of why human’s beings behave the way they do. This study will examine to what extent the non-monetary factors can influence workers’ productivity.

1.2     Statement of Problem

Most organizations have the impression that motivation of workers must always be in the form of income or pay. According to Mullins (2017), earlier writers such as Taylor (2012) supported economic needs motivation. Workers would be motivated by obtaining the highest possible wages through working in the most efficient and productive way. According to Taylor (2012), motivation was a comparatively simple issue- what the workers wanted from their employers more than anything else was high wages. This approach is the rational-economic concept of motivation. The ideas of Taylor and his ‘rational economic needs’ concept of motivation and subsequent approaches to motivation at work has fueled the continuing debate about financial rewards as a motivator, and their influence on productivity.

Business organizations have been in the practice of granting monetary incentives since time immemorial. It had taken the form of cash bonuses, merit increases in basic salaries, fat commissions , or stock options, to name only a few.

However, in the race for highly competent talents amidst the ever tightening market for qualified workers, monetary rewards proved inadequate in many instances. Organizations that persisted in their search for the best alternative solutions have started focusing on non-monetary rewards after surveys showed that an increasing number of younger talents have shown preference for non- monetary incentives. Nakisha, (2018).

According to institute of employment in contrast to the popular perception revealed that about 98% of workforce found more satisfaction with promotion and development rather than income which they adduce is sometimes very insulting especially minimum wage increase, annual increment etc. Income in the form of pay or some other sort of remuneration is the most obvious extrinsic reward. Income provides the carrot that most people want. But doubts have been cast by Herzberg et al (2017) on the effectiveness of income because they adduced, while the lack of it can cause dissatisfaction, its provision does not result in lasting satisfaction either.

Monetary incentives encourage compliance rather than risk-taking because most rewards are based only on performance. As a result, employees are discouraged from being creative in the workplace. Another argument Kohn (2013) presents is that monetary incentives may be used to circumvent problems in the workplace. For example, incentives to boost sales can be used to compensate for poor management. Employers also may use monetary Incentives as an extrinsic rather than an intrinsic motivator. In other words, associates are driven to do things just for the monetary reward versus doing something because it is the right thing to do. This can disrupt or terminate good relationships between employees because they are transformed from co-workers to competitors, which can quickly disrupt the workplace environment (Kohn, 2013).

In fact, income only plays the role of common denominator of all things. There is a general notion that if only management can identify other things that can motivate the workforce apart from income, perhaps there will be a dramatic reduction in the demand by workers for pay rises. Less time will be spent on the annual ritual of management/workers union negotiation meetings, Imanyi (2018).

The aim of this research therefore is to find out from empirical studies whether workers, given the right incentives other than pay can put in their best contribute to the productivity and growth of the organizations to achieve the following objectives, amongst others: Reduce labour turnover, Increase workers productivity, eliminate or reduce industrial unrest, Improve management and staff relations, create a productivity culture in the organization. It therefore follows that the efficiency and productivity of any organization will have multiplier effect on the economy in general. To achieve the desired efficiency and productivity levels, business establishments rely on a highly motivated workforce that shares the vision and aspirations of the establishment.

What then can organization do to elicit the right work attitudes from their employees towards achieving continuous productivity and growth? Moreover the intention of this study is to address this particular issue using Nestle Nigeria Plc employees as a case study.

1.3     Objective of the Study

The broad objective of this study is to appraise the factors influencing workers’ productivity in organization, using Nestle Nigeria Plc as a case study. The specific objectives are to:

  1. Identify factors outside monetary incentives that influence productivity.
  2. Assess the effect of each factor identified and how they influence workers productivity.
  3. highlight the Factors influencing workers productivity in business organization.

1.4     Research Questions

To address the stated problem, the questions that the research work is set to answer are:

  • What are the factors influencing workers productivity in an organization?
  • What are the relative effects of non-monetary factors on workers’ productivity?

1.5     Research Hypotheses

  1. There exists no relationship between factors influencing workers and productivity in an organization.
  2. There exists no relationship between non-monetary factors and productivity.

1.6     Significance of the Study

This study is significant as it attempts to assess the Factors influencing workers productivity in business organization with specific reference to Nestle Nigeria Plc. These benefits will go a long way in creating employee/employer loyalty and respect. This clearly demonstrates there are many points, besides pay, to consider when establishing management and employee policies. Also, organizations are who are bent on reducing cost associated with monetary rewards can focus more on non monetary ways to boost workers productivity.

1.7     Definition of Terms

Production: the action of making or manufacturing from components or raw materials, or the process of being so manufactured

Productivity: the state or quality of producing something

Workers: a person who does a specified type of work or who works in a specified way

Business: this can be defined as an organization or enterprising entity engaged in commercial, industrial or professional activities.

Organization: an organized body of people with a particular purpose, especially a business, society, association, etc

Influence: the capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself

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