EMPLOYEE MOTIVATION AND ORGANIZATIONAL PERFORMANCE A CASE STUDY OF AIRTEL TELECOMMUNICATION COMPANY, MBARARA BRANCH

EMPLOYEE MOTIVATION AND ORGANIZATIONAL PERFORMANCE

A CASE STUDY OF AIRTEL TELECOMMUNICATION COMPANY, MBARARA BRANCH

NATUKWASA EVAS

11/BSU/BBA/213

A RESEARCH REPORT SUBMITTED TO THE FACULTY OF BUSINESS AND

DEVELOPMENT STUDIES IN PARTIAL FULFILLMENT OF

REQUIREMENTS FOR THE AWARD OF BACHELORS’

DEGREE IN BUSINESS ADMINISTRATION OF

BISHOP STUART UNIVERSITY.

MAY, 2014

DECLARATION

I hereby declare that this report is due to my own knowledge,

effort and it has never been submitted by any other person for a

degree or diploma in any University or institution of higher

level

Signed---------------------------------------------

Date-----------------------------------------

NATUKWASA EVAS

11/BSU/BBA/213

1

SUPERVISOR’S APPROVAL

This report has been submitted with my approval as the university

supervisor

Signed---------------------------------------------

Date----------------------------------------

MR. BEGUMISA BERNARD

2

DEDICATION

I dedicate this research report with great humility and love to

my lovely parents Mr.Muhangi Paddy and Mrs. Kyokusiima Sarah,

family members, my brothers and sisters, for their support

financially, socially and in all corners of life. God bless you

all.

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4

ACKNOWLEDGEMENT

I thank the Almighty God for enabling me complete this research

report. Thanks for the knowledge, wisdom, and grace he has given

me.

Great thanks to my supervisor Mr. Begumisa Bernard for the

guidance rendered to me. It is because of him that I am finally

done with my research report.

To my dear parents, you have been a great pillar of my life

especially in my research progress.

I cannot forget to acknowledge my respected and productive

friends; Magyezi Arthur, Namara Amon, Atwebembire Abia among

others for helping me to make my research a success.

Finally, I am also grateful to the staff and members of Airtel

Telecommunication Company Limited who allowed me conduct my

research study using their Telecommunication Company as a case

study and most importantly being good and honorable respondents.

I appreciate the contribution of my course mates for the

cooperation they exhibited during the time of my studies.

I special I thank all my lecturers for in imparting knowledge

into me that helped a great deal while undertaking this research

report.

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TABLE OF CONTENTS

DECLARATION.....................................................i

SUPERVISOR’S APPROVAL..........................................ii

DEDICATION....................................................iii

LIST OF TABLES...............................................viii

LIST OF FIGURES................................................ix

LIST OF ACRONYMS................................................x

LIST OF ACRONYMS................................................x

ABSTRACT.......................................................xi

CHAPTER ONE:INTRODUCTION.......................................1

1.1 Introduction................................................1

1.2 Background of the study.....................................1

1.3 Statement of the problem....................................4

1.4 Purposes of the Study.......................................5

1.5 Objectives of the Study.....................................5

1.6 Research questions..........................................5

1.7 Scope of the study..........................................6

1.7.1 Geographical scope........................................6

1.7.2 Content scope.............................................6

1.7.3 Time scope................................................6

1.8 Significance of the study...................................6

CHAPTER TWO:LITERATURE REVIEW...................................7

2.1 Introduction................................................7

2.2 How organizations motivate their employees..................7

2.3 The organizational performance indicators in organizations.11

6

2.4 The relationship between employee motivation and

organizational performance.....................................14

CHAPTER THREE:RESEARCH METHODOLOGY.............................16

3.1 Introduction...............................................16

3.2 Research Design............................................16

3.3 Study Population...........................................16

3.4 Sample Size................................................16

3.5 Sample Selection...........................................17

3.6 Data Sources...............................................17

3.7 Instruments of Data collection.............................17

3.8 Research procedures........................................18

3.9 Data Analysis..............................................18

3.10 Limitations of the Study..................................18

CHAPTER FOUR:PRESENTATION, ANALYSIS AND INTERPRETATION OF STUDY

FINDINGS.......................................................20

4.1 Introduction...............................................20

4.2 Background Information on the Respondents..................20

4.2.1 Gender of the respondents................................20

4.2.2 Age group of the respondents.............................21

4.2.3 Marital status of the respondents........................22

4.2.4 Level of education of respondents........................23

4.2.5. Period spent at Airtel Telecommunication Company........23

4.3 Ways how Airtel Telecommunication Company motivate its

employees......................................................25

4.3.3 Ways of motivation at Airtel Telecommunication Company

Limited........................................................25

7

4.5 The relationship between employee motivation and

organizational performance.....................................30

CHAPTER FIVE:DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS......32

5.1 Introduction...............................................32

5.2 Discussion of the study....................................32

5.2.1. Findings on the different ways of motivation at Airtel

Telecommunication Company Limited..............................32

5.2.2. Findings on the organizational performance indicators in

Airtel Telecommunication Company...............................33

5.2.3 Findings on the relationship between employee motivation

&organizational performance....................................33

5.3 Conclusions................................................34

5.4 Recommendations............................................35

5.5 Area for further studies...................................36

REFERENCES.....................................................37

APPENDICES.....................................................42

APPENDIX A: QUESTIONNAIRE TOOL.................................42

Appendix B: Map Mbarara District...............................45

Appendix C: Time Frame Work 2013/2014..........................46

APPENDIX D: BUDGET FOR THE STUDY...............................47

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LIST OF TABLESTable 1: Showing the Number of Proposed Respondents...........17

Table 2: Showing gender of the respondents....................20

Table 3: Showing age group of the respondents.................21

Table 4: Showing marital status of the respondents............22

9

Table 5: Showing level of education of the respondents........23

Table 6: Showing years of service with Airtel Telecommunication

Company.......................................................24

Table 7: Showing whether Airtel Telecommunication Company was

motivating its workers........................................25

Table 8: Showing how Airtel Telecommunication Company Limited

motivate workers..............................................26

Table 9: Profitability is an organizational performance indicator

in Airtel Telecommunication Company...........................27

Table 10: Net worth determines how financially strong the company

is............................................................27

Table 11. Real cash flows enable management to report on the

financial position of the firm................................28

Table 12: The Company reviews its balance sheet strength to

declare its performance.......................................28

Table 13: Risk/Exposure......................................29

Table 14: Fair Market Value (FMV) is an indicator of good

performance...................................................29

Table 15: Showing whether there is a relationship between

employee motivation and organizational performance............30

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LIST OF FIGURESFigure 1: Showing gender of the respondents...................21

Figure 2: Showing years of service with Airtel Telecommunication

Company.......................................................24

Figure 3: A graph how Airtel Telecommunication Company Limited

motivate workers..............................................26

11

LIST OF ACRONYMS

Ltd Limited

Mgt Management

NY New York

OP Operational Risk.

PBL Print British

limited

SSM Strategic Service Management

UN United Nations

US United States

12

ABSTRACT

The study was about relationship between employee motivation and

organizational performance while considering Airtel

telecommunication company-Mbarara. The study was guided by four

objectives such as; to establish ways how Airtel

Telecommunication Company motivates employees, to establish the

benefits of motivating organizational employees, to establish

organizational performance indicators in Airtel Telecommunication

Company and to find out the relationship between employee

motivation and organizational performance. It used data collected

using a questionnaire Interviews, and during data collection

purposive sampling technique and snowball method were used. Both

qualitative and quantitative were used to analyze data as it used

a sample size of 60 respondents.

The study concludes that ways of motivation at Airtel

Telecommunication Company Limited include; provision of

allowances such as food, transport, medical, study leaves among

other tools, holding workshops, workers retreats, training

workers, provision of leave days, promotion, timely appraisal,

and use of thanks to well performers at the company especially

during every year end. It also concludes that motivation plays a

significant role towards organizational performance. Still, that

the challenges faced by Airtel Telecommunication Company in

motivation include; power problem, lack of enough funds, labour

turn over, competition from other telecommunication companies and

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lack of constant market for the products. Lastly, that there is a

positive relationship between employee motivation and

organizational performance.

The study recommended government involvement in the provision of

motivational needs through adjusting in the labour laws, a

greater balance between employees’ needs and organizational

needs, refresher courses given to managers and career guidance

and counseling of workers in case their expectations are not met

should be done by the management in organizations.

And the impact of salary motivation and performance of Airtel

Telecommunication Company Limited Uganda, the influence of

corporation tax on the performance of Airtel Telecommunication

Company Limited Uganda and the relationship between corporate

social responsibility and performance of performance of Airtel

Telecommunication Company Limited Uganda are suggested areas for

studies.

CHAPTER ONE

INTRODUCTION

1.1 Introduction

This chapter of the research covers the background of the study,

statement of the problem, objectives, the research questions,

scope and significance of the study.

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1.2 Background of the study

Researchers and managers have believed that organizational

objectives and goals are un achievable without enduring

commitment of members and employees of the organization. The

world is going through an enormous change. Globalization of

businesses is increasing and information technologies are

advancing (Dockel, 2011:5). These major changes reshaping our

significantly, for better and for worse (Keritner, 2009:78) They

lead to changes in the way business is done, the way employees

behave and the way managers manager their employees. For

companies to remain successful, they are required to adapt to

these changes (Vercueil, 2011:1). The changes that are reshaping

the world have altered the way organizations operate and have

also led to changes in employee characteristics (Robbins,

2000:21).

Management in today’s world is about management in times of

repaid change (Robbins, 2000:3). In today’s world, the biggest

task of the human- resource manager is to motivate and retain

employees. Motivation is a company’s life- blood (Sharma, 2006)

a well managed company can motivate and retain its employees and

hence has the following competitive advantages: reduced

turnover; an increase in productivity; reduced absenteeism;

increase revenue; and improved performance. However; managers

tend to assume that know what the employees want from their

work. This assumption can lead managers into making mistakes

while trying motivating their employees (Simons & Enz, 2006).

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This study is thus an attempt to help managers to understand the

factors that motivates their employees to perform to the best of

their ability.

According to Webster’s New Collegiate Dictionary, a motive is

“something a need or desire that causes a person to act”.

“Motivate, in turn, means “to provide with a motive,” and

motivation is defined as “the act or process of motivating”.

Consequently, motivation is the performance or procedure of

presenting an intention that origin a person to capture some

accomplishment (Shanks.N. H.). According to Butkus & Green

(1999), motivation is derived from the word “motivate”, means to

move, push or influence to proceed for fulfilling a want

(Kalimullah et al, 2010).

Bartol and Martin (1998) describe motivation as a power that

strengthens behavior, gives route to behavior, and triggers the

tendency to continue (Farhad et al, 2011). This explanation

identifies that in order to attain assured targets; individuals

must be satisfactorily energetic and be clear about their

destinations. In view of Bedeian, (1993) it is an internal

drives to satisfy an unsatisfied need and the will to

accomplish. Motivation is a procedure that initiates through a

physiological or psychological want that stimulates a

performance that is intended at an objective. It is the

concluding product of interface among personality behavior and

organizational distinctiveness (IRCO). It symbolizes those

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psychological procedures that foundations the stimulation,

route, and determination of deliberate actions that are target

oriented (Farhad et al, 2011).

Also motivation is a progression of moving and supporting goal-

directed behavior (Chowdhury.M.S, 2007). It is an internal

strength that drives individuals to pull off personal and

organizational goals (Reena et al, 2009). Motivation is a set of

courses concerned with a kid of strength that boosts performance

and directs towards accomplishing some definite targets

(Kalimullah et al, 2010). According to Barron (1983), it is an

accrual of diverse routes which manipulate and express our

activities to attain some particular ambitions (Rizwan et al,

2010). Porter and miles (1974) proved that the motivation boosts

expresses and continues conduct (Khadim et al). The motivation of

an individual envelops all the motives for which he selects to

operate in a definite approach (Lefter et al). In fact motivation

is “inside another person’s head and heart” (Khadim et al).

Among financial, economic and human resources, the latest are

more essential and have the capability to endow a company with

competitive edge as compared to others (Rizwan et al, 2010).

Employee Performance fundamentally depend on many factors like

performance appraisals, employee motivation, Employee

satisfaction, compensation, Training and development, job

security, Organizational structure and other, but the area of

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study is focused only on employee motivation as this factor

highly influence the performance of employees.

Employee motivation is one of the policies of managers to

increase effectual job management amongst employees in

organizations (Shadare et al, 2009). A motivated employee is

responsive of the definite goals and objectives he/she must

achieve, therefore he/she directs its efforts in that direction.

Rutherford (1990) reported that motivation formulates an

organization more successful because provoked employees are

constantly looking for improved practices to do a work, so it is

essential for organizations to persuade motivation of their

employees (Kalimullah et al, 2010). Getting employees to do their

best work even in strenuous circumstances, is one of the

employees most stable and greasy challenges and this can be made

possible through motivating them.

World over satisfying of employees’ personal needs so as to lead

them into the fulfillment of the organization goals, is a big

challenge faced by leaders. Employees strive to achieve goals

such as; pay, job security, credit for work done, responsibility

in work places, positive interpersonal relationship and good

working conditions. According to Jensen (2000), pay in form fair

remuneration is an important aspect of motivation of employees.

This is because it helps them to meet their physiological,

security and egoistic needs. In many organizations there exists

persistent grievances concerning nonpayment, underpayment and

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delayed payment. Many organizations pay what they want, when and

how they want it. This is likely to impact on the motivation of

staff and the performance of the organization.

Besides the above, credit for work done and assigning of

responsibility to staff are important ingredients in work places

(Clark, 2005). This is because they help workers in the

fulfillment of Maslow’s higher order needs, self esteem and

actualization. Once they are fulfilled, they help in motivating

of staff. In some institutions there exist excessive ‘red tape’,

and management based on too much paper work or a system of

hierarchy of authority and rules. Employees are therefore tightly

controlled, alienated from management and therefore do not

effectively participate in the running of the organizations

(Jensen, 2000). This is likely to impact on the morale which in

turn affects the accomplishment of organization goals.

Further to that, employees need to feel comfortable at their

place of work so as to be productive. A nice desk, a clean

working area, enough space, allowing each employee his/her own

personal space in form of a drawer, desk or locker helps to

minimize dissatisfaction in organizations. This is one of the

most important dissatisfies (Jensen, 2000). In some institutions

workers use second class desks as furniture. Some organizations

have a tendency of using a common office shared by top and middle

level management. Others have shabby and disorganized file/record

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management systems (Jensen, op cit). Such conditions are likely

to impact on the workers’ output.

Herzburg (1959) cited by Noe (2005), satisfactorily explains what

energizes, directs and sustains human behaviour in organizations.

In his two factor motivational hygiene theory he argues that in

work places hygiene factors such as; administration and policy,

supervision, salary, interpersonal relations and working

conditions should be provided to help reduce workers’

dissatisfaction. In addition to that, he further argues that

motivational factors such as; work, achievement, recognition and

advancement should also be provided in organisations so as to

motivate staff.

Due to stiff competition, from other telecommunication companies,

and low Airtel’s performance, grievances on work, failure to turn

up for a day’s work, constant resignations, the management of

Airtel communications company has always put into place different

means of improving the organizational performance like employing

semi-skilled and skilled personnel, re- positioning some offices

like contact telecom, changing the facility layouts, shorter

training to the staff, advertising, close supervision of

individual’s performance, reducing prices of some of their

products like company phones, improving customer care among

others. Thus basing on this background, this research aimed at

looking at factors that affect employee motivation in

telecommunication and assess the role motivation plays towards

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organizational performance and also points to the need to

investigate the motivation techniques employed in Airtel and how

they have impacted on staff motivation.

1.3 Statement of the problem

Airtel Mbarara branch motivate employees in different ways like

providing transport allowances, giving leaves where necessary,

paying salary in time, having annual get together parties upon

hitting targets, ensuring of employment security to employees,

life insurance to employees, flexible working hours, rewarding

best performers, participation in decision making especially

during meetings, encouraging transparent communication, and

allowing for reasonable commissions on sold items. However all

these, the performance of the organization is not good in

relation to other telecommunication companies.(Dr. Kigundu,

A.T. ;2009). Therefore, the study sought to find out the

relationship between employee motivation and organizational

performance while considering Airtel telecommunication company-

Mbarara branch as a case study.

1.4 Purposes of the Study

The main purposes of the study was to determine the relationship

between employee motivation and organizational performance while

considering Airtel telecommunication company-Mbarara

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1.5 Objectives of the Study

i. To establish ways how organization motivates its employees.

ii. To establish organizational performance indicators in Airtel

telecommunication company.

iii. To find out the relationship between employee motivation and

organizational performance

1.6 Research questions

i. What are ways how organization motivates its employees?

ii. What are the organizational performance indicators in Airtel

Telecommunication Company?

iii. What is the relationship between employee motivation and

organizational performance?

1.7 Scope of the study

1.7.1 Geographical scope

Airtel telecom is located along Mbaguta Street, high street in

Mbarara town, Mbarara Municipality approximately 4 miles from

Mbarara University. Mbarara town is in the western Uganda and

boarders with Isingiro in the north, Ibanda in the south,

Bushenyi in the west.

1.7.2 Content scope

The study was about motivation employees and performance of the

organization. It collected data in relation to establish ways how

22

organization motivates its employees, to establish organizational

performance indicators in Airtel Telecommunication Company and to

find out the relationship between employee motivation and

organizational performance

1.7.3 Time scope

The research data and information fall between 2009 and 2014 and

covers the period of 5 years.

1.8 Significance of the study

The study generated information that may guide the management of

Airtel to choose which level of motivation should be applied

according to released benefits realized.

The study contributed to the body of knowledge/management of what

now exists and the future prospects of the motivated employees.

Therefore, it may also be used by other researchers as source of

literature review.

The research report also contributed to the researcher to acquire

award of Bachelors Degree in Business Administration of Bishop

Stuart University. The study that at this point may also provide

the benchmark data to guide in the formulation of plans, policies

and decision making.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this chapter, the researcher was going to look at the

literature review, with sub- topics of employee motivation,

organizational performance indictors and the relationship between

the variables.

2.2 How organizations motivate their employees

Many different scholars have agreed and disagreed on the ways

employees should be motivated. Some of them assert that in order

to motivate an individual, a financial benefit has to be foregone

by the motivator whereas others believe that money is not a true

motivator hence both financial and nonfinancial incentives are

considered in the discussion below;

According to Cole (1998), financial incentives are

rewards/payments that employees get in consideration of their

contribution towards the organization. He adds that these are

payments for labor as a factor of production.

Wages and Salaries: Lindner (1995) notes that, though monetary

methods of motivation have little value, many firms still use

money as a major incentive. She adds that wages are normally paid

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per hour worked and workers receive money at the end of the week

and overtime paid for any additional hours worked for whereas

salaries are based on a year’s work and are paid at the end of

each month.

Piece rate: According to Lun Chien-Chung (2003) piece rate is the

paying of a worker per item produced in a certain period of time.

He asserts that this increases speed of work and therefore

productivity. This is in agreement with the earlier revelations

made by Taylor (1993) who notes that though the employees will

care less about the quality of their work, their sped improves

with the piece rate practice of motivation.

Fringe benefits :According to Doellgast (2006) fringe benefits

are often known as “perks” and are items an employee receives in

addition to their normal wage and/or salary. These include

company cars, health insurance, free meals, education e.t.c. he

asserts that these encourage loyalty to the company such

employees may stay longer with the company.

Performance related pay: This is paid to those employees who meet

certain targets. The targets are often evaluated and reviewed in

regular appraisals with managers. According to Higgins (1994)

this system is increasingly being used by organizations worldwide

because it reduces the amount of time spent on industrial

relations and he therefore recommends its use. However, Doellgast

(2006) discourages the use of this practice of motivation. He

25

asserts that it can be very difficult to measure employee

performance more especially those in the service industry and

that the practice does not promote teamwork.

Bonuses : Marler (2000) indicated that when your employees

function as a team, you ought to think like a coach; reward the

whole group for a job well done. He says this will boost morale

both personally and collectively. He adds that employee incentive

programs such as small bonuses serve to better the morale of an

individual employee and that of a group as a whole by making them

more satisfied.

This is in agreement with Likert’s (2004) study which concluded

that since everybody wants to feel appreciated and special for

the work done, they can therefore be motivated by appreciating

them and making them feel special. He adds that the more

satisfied the employee is, the better he/she will perform.

Mwanje (2000) believes that non-financial incentives are the most

important motivators of human behavior in terms of the needs of

human beings. He refers non-financial incentives to non-monetary

ways of rewarding employees. They are opportunities that help

employees in the accomplishments of the set goals. They include;

Training opportunities: Hammer (2000) asserts that an individual

will be motivated to do something if they have the mental ability

and skills to accomplish it. He writes that when employees are

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trained, they get the knowledge of hoe to deconstruct tasks and

challenges and thereby feel less intimidated by their jobs/tasks.

Herzberg (1998) agrees to Hammers assertion. He adds that

training makes the employee earn confidence to do a job thereby

improving their attitude hence motivation.

Job rotation: Fowler (2001) revealed that when an employee does

one kind of job week-in week-out, they will always get de-

motivated to carry on with their work more especially when the

work is not very challenging. She suggested that employees need

to be rotated around the organization to meet new challenging

tasks in order to keep their minds busy and feel like they are

doing something for the organization.

However, Clifton (2002) disagrees with these revelations. He

asserts that job rotation does not actually lead to motivation of

the employee; it just helps the employees not to get bored with

their work. In other words it helps the employers to maintain a

certain level of motivation in employees.

Communication style: Managers need to be clear when talking to

their employees and let them know that their opinion or views are

important in building a viable company. Strong communications

skills are necessary when assigning tasks to the employees so

that the tasks are clearly defined and understood. Marie (2000)

asserts that the managers ought to communicate to their

27

subordinates in such a way that the subordinates feel like they

are not forced to do a particular task. Jean (2002) agrees and

asserts that managers should develop an inclusive approach to

decision making if at all they are to increase their employee

motivation levels.

Improving employee engagement can increase productivity and

profitability while also reducing employee absenteeism and

turnover. Herzberg claimed that positive hygiene factors such as

work conditions and salary simply satisfy basic employee needs,

whereas motivators [such as achievement and recognition]

encourage employees to work above and beyond the minimum

requirements. ‘Compensation alone is not enough to keep the

highly skilled’ motivated and experienced workforce your business

needs to excel’ (Greenburg, 2008).

Smithers and Walker, (2000) stressed that individuals tend to

develop certain motivational drives on the cultural environment

in which they live and these drives affect the way people view

their jobs. He suggests that achievement, affiliation, competence

and power are four types of motivational drives that are found in

individuals that are self-motivated and this may be the case for

many construction workers. Motivation plays a part in enhancing

construction labor productivity (Smithers and Walker, 2000) and

forms the basis for identification of the work environment

factors.

28

Improving employee engagement can increase productivity and

profitability while also reducing employee absenteeism and

turnover. Herzberg claimed that positive hygiene factors such as

work conditions and salary simply satisfy basic employee needs,

whereas motivators (such as achievement and recognition)

encourage employees to work above and beyond the minimum

requirements. ‘Compensation alone is not enough to keep the

highly skilled’ motivated and experienced workforce your business

needs to excel’ (Greenburg, 2008).

Organizational Influence is the main factor in employee

motivation. However, no organization or employee is an island,

and both are also affected by the community in which they exist,

such as family, friends, community members and local issues

affecting the lives of people. It can be argued that National

Influence affects both the organization and the employee evenly.

As the organization must conform to social, political, economic

and legal requirements on a national level, the employee must

also do the same in order to exist. Global influence is all

encompassing; in today’s global village ideas are exchanged in a

matter of moments. This open exchange of concepts and knowledge

set the perimeter for our expectations from us as well as others.

Global influence moulds the national influence which, in turn,

affects the community. The organization and the employee must

deal with this interplay and tension between the different

spheres of influence that affect them, (Emmens, B, et al, 2006).

29

The relationship between the employer and employee must be one of

understanding in order for the employee to identify himself with

his work and with the business he is working for. Lack of

motivation in return affects productivity. A number of symptoms

may point to low morale: declining productivity, high employee

turnover, increasing number of grievances, higher incidence of

absenteeism and tardiness, increasing number of defective

products, higher number of accidents or a higher level of waste

materials and scrap (William Day 2010). A motivated employee is a

loyal employee and to be loyal implies that the employee supports

the actions and objectives of the firm. The appearance of the job

as a whole has, in fact a bearing on the willingness and quality

of an employee’s performance, (Martin Bruce 2008).

Loyal employees are highly motivated or motivated employees are

highly loyal to the organizations which they belong may not be

true in the modern world. The organizational loyalty now-a-days

are transient and does not guarantee long employee tenure. The

obvious reason is that high performers are in great demand in the

employment market and can be enticed away with higher challenges

and benefits both financial and non-financial. In practice,

organizations have their own way to deal with employee

motivation. This is due to the fact that unwritten psychological

contracts between the employees and the employers are dealt with

differently within the organizations depending on the particular

organizational culture and management style, (Laming, 2004).

30

Pay-for-performance plans are designed to link specific

performance goals with employee compensation. Since most

individuals work to obtain the amount of money required to meet

their needs and wants, these types of plans can be highly

motivating since they positively relate the amount of pay with

the amount of work effort. Pay-for-performance programs

compensate employees based on some pre-determined performance

measurement [objective]. Examples include piece-rate pay plans,

wage incentive plans, profit sharing, and bonus plans.

The most obvious form of motivation is coercion, where the

avoidance of pain or other negative consequences has an immediate

effect. Extreme use of coercion is considered slavery. While

coercion is considered morally reprehensible in many

philosophies, it is widely practiced on prisoners, students in

mandatory schooling, within the nuclear family unit [on

children], and in the form of conscription. Critics of modern

capitalism charge that without social safety networks, wage

slavery is inevitable. However, many capitalists such as Ayn Rand

(2001) have been very vocal against coercion. Successful coercion

sometimes can take priority over other types of motivation. Self-

coercion is rarely substantially negative (typically only

negative in the sense that it avoids a positive, such as

undergoing an expensive dinner or a period of relaxation),

however it is interesting in that it illustrates how lower levels

of motivation may be sometimes tweaked to satisfy higher ones.

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2.3 The organizational performance indicators in organizations

Performance is a measure of the results achieved. Performance

efficiency is the ratio between effort expended and results

achieved. The difference between current performance and the

theoretical performance limit is the performance improvement

zone. Performance assumes an actor of some kind but the actor

could be an individual person or a group of people acting in

concert. The performance platform is the infrastructure or

devices used in the performance act (Malcom, S. 2005).

According to Likert (2003) there are two main ways to improve

performance: improving the measured attribute by using the

performance platform more effectively, or by improving the

measured attribute by modifying the performance platform, which

in turn allows a given level of use to be more effective in

producing the desired output. Performance can be measured by

obtaining the magnitude of a quantity, such as length or mass,

relative to a unit of measurement, such as a meter or a kilogram.

Performance involves performance improvement is the concept of

organizational change in which the managers and governing body of

an organization put into place and manage a programme which

measures the current level of performance of the organization

like inventory management and then generates ideas for modifying

organizational behavior and infrastructure which are put into

place to achieve higher output. The primary goals of

organizational inventory management are to increase

32

organizational effectiveness and efficiency to improve the

ability of the organization to deliver goods and or services

(Ronald, H 1999). Performance improvement at the operational or

individual employee level usually involves processes such as

statistical quality control. At the organizational level,

performance improvement usually involves softer forms of

measurement such as customer satisfaction surveys which are used

to obtain qualitative information about performance from the

viewpoint of customers.

According to Halachmi, A, & Bouckart G. (2005); argued that

financial ratios are useful indicators of a firm's performance

and financial situation. Most ratios can be calculated from

information provided by the financial statements. Financial

ratios can be used to analyze trends and to compare the firm's

financials to those of other firms. In some cases, ratio analysis

can predict future bankruptcy. Financial ratios can be classified

according to the information they provide. The following types of

ratios frequently are used:

Liquidity ratios provide information about a firm's ability to meet

its short-term financial obligations. They are of particular

interest to those extending short-term credit to the firm. Two

frequently-used liquidity ratios are the current ratio (or

working capital ratio) and the quick ratio. The current ratio is

the ratio of current assets to current liabilities.

33

Short-term creditors prefer a high current ratio since it reduces

their risk. Shareholders may prefer a lower current ratio so that

more of the firm's assets are working to grow the business.

Typical values for the current ratio vary by firm and industry.

For example, firms in cyclical industries may maintain a higher

current ratio in order to remain solvent during downturns.

One drawback of the current ratio is that inventory may include

many items that are difficult to liquidate quickly and that have

uncertain liquidation values. The quick ratio is an alternative

measure of liquidity that does not include inventory in the

current assets. The current assets used in the quick ratio are

cash, accounts receivable, and notes receivable. These assets

essentially are current assets less inventory. The quick ratio

often is referred to as the acid test. Finally, the cash ratio is

the most conservative liquidity ratio. It excludes all current

assets except the most liquid: cash and cash equivalents. The

cash ratio is an indication of the firm's ability to pay off its

current liabilities if for some reason immediate payment were

demanded.

Asset turnover ratios indicate of how efficiently the firm utilizes

its assets. They sometimes are referred to as efficiency ratios,

asset utilization ratios, or asset management ratios. Two

commonly used asset turnover ratios are receivables turnover and

inventory turnover. Receivables turnover is an indication of how

34

quickly the firm collects its accounts receivables. The

receivables turnover often is reported in terms of the number of

days that credit sales remain in accounts receivable before they

are collected. This number is known as the collection period. It

is the accounts receivable balance divided by the average daily

credit sales. Another major asset turnover ratio is inventory

turnover. It is the cost of goods sold in a time period divided

by the average inventory level during that period. The inventory

turnover often is reported as the inventory period, which is the

number of day’s worth of inventory on hand, calculated by

dividing the inventory by the average daily cost of goods sold:

Financial leverage ratios provide an indication of the long-term

solvency of the firm. Unlike liquidity ratios that are concerned

with short-term assets and liabilities, financial leverage ratios

measure the extent to which the firm is using long term debt.

Debt ratios depend on the classification of long-term leases and

on the classification of some items as long-term debt or equity.

The times interest earned ratio indicates how well the firm's

earnings can cover the interest payments on its debt. This ratio

also is known as the interest coverage.

Profitability ratios offer several different measures of the success

of the firm at generating profits. The gross profit margin is a

measure of the gross profit earned on sales. The gross profit

35

margin considers the firm's cost of goods sold, but does not

include other costs.

Dividend policy ratios provide insight into the dividend policy of

the firm and the prospects for future growth. Two commonly used

ratios are the dividend yield and payout ratio. However, a high

dividend yield does not necessarily translate into a high future

rate of return. It is important to consider the prospects for

continuing and increasing the dividend in the future. The

dividend payout ratio is helpful in this regard.

2.4 The relationship between employee motivation and

organizational performance

An internally satisfied, delighted and motivated worker or

employee is actually a productive employee in an organization

which contributes in efficiency and effectiveness of organization

which leads to maximization of profits (Matthew.J. et al, 2009).

Thus from the literature and various studies the third hypothesis

is fully supported that there exists a positive relationship

between employee motivation and organizational effectiveness.

According to Waterman (1982). Motivation is the degree of effort

an employee exerts to accomplish a task; it shows an excitement

about work. From the managers’ point of view, person who is

motivated has such characteristics as hardworking, sustaining a

pace of hard work, self directed behavior towards important

organizational goals. Motivation is the key to performance

36

improvement. There is a saying that “you can take a horse to the

well to drink water but you cannot force it to drink”, it will

drink if only it is thirsty-so with people. They will do what

they want to do or otherwise motivated to do. Whether it is to

excel on the workshop floor or in the ivory tower, they must be

motivated or driven to it, either by themselves or through

external stimulus.

Employee satisfaction and motivation towards work refers to

prospects of the employee about the organization and his

approaches frontward his service (Ali et al, 2011).Organizational

effectiveness refers to locating targets and attaining them

proficiently in spirited and energetic surroundings (Constant.D,

2001).

A study was done to examine the relationship of organizational

effectiveness and employee performance and motivation in the

telecommunication and banking sector of Pakistan. A sample of 103

respondents was taken and Pearson correlation was applied. The

results showed that there exists significant positive correlation

(0.287) between employee motivation and organizational

effectiveness (Muhammad et al, 2011).

The autocratic leadership styles, mechanistic design of

organization and authoritarian rules as practiced in African

organizations, are all where decision making is concerned only to

37

top management and employees are just given orders to accomplish

different tasks. In these types

of organizational environment the employees may suppress

innovativeness and their motivation hinders which has a direct

negative effect on organizational performance, growth and

effectiveness (Constant.D. et al, 2001).

When employees are satisfied, with work and work environment,

then they identify themselves closely with the employing

organization. Organizations cannot buy loyalty yet they

constantly wish to foster it. Employees who are committed to the

organization are likely to work harder towards organizational

goals, seize opportunities and new ideas, and act as good public

relations officers for their employers. With highly motivated

staff, managers can expect better quality performance than from

employees who are dissatisfied with the work they are doing

(Buford et al, 1995)

38

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

In this chapter, the researcher looked at the methods that were

used to collect data, research design, sample size, sample

selection, methodology, data analysis tools, the limitations

faced during research.

3.2 Research Design

The study employed exploratory design using both qualitative and

quantitative tools. The qualitative tool was used to give insight

vividly on institutional characteristics, opinions, beliefs,

feelings and perceptions of respondents on the topic of interest.

The quantitative research technique was basically be used because

of the desire to solicit and present data numerically. It was

also applied in this study to deal with quantifiable measurements

which could be counted; for example the number of employees and

the working hours.

3.3 Study Population

The study considered employees particularly those who were

involved in marketing and managerial level regarded as

supervisors at Airtel telecommunication Company Mbarara –Branch.

The rest of the employees would play a key role in the study

39

because they were to beneficiaries and all equally important,

they were the people who were involved in the day to day running

of the activities of the organization. Since the employees’

performance determines the organizational output, they considered

the most important people that this study focuses.

3.4 Sample Size

The study involved a total of 60 respondents from workers at

Airtel telecommunication Company Mbarara –Branch as illustrated

in the following table.

Table 1: Showing the Number of Proposed Respondents

Respondents NumberManagers 02Supervisors 08Marketers 50Totals 60Source: Primary Data 2014

3.5 Sample Selection

The fact that Airtel has many employees, Mbarara regional branch

was considered to represent the diverse views of all company

employees. The study used purposive sampling to study the whole

population of Mbarara regional branch employees and managers. It

also used snowball sampling to identify one member of the

40

population of Airtel to obtain information. The person was asked

to refer the researcher to be a more important person, office

depending on the branch bureaucracy and chain of command. The

researcher was convincing the offices referred too, to obtain

information and interview other company employees.

3.6 Data Sources

Both primary and secondary data were the main sources of data

were used in the study. Concerning the primary data, the study

used questionnaires to supplement the collected data from

different sources like text books, internet, magazines and

Journals as secondary data.

3.7 Instruments of Data collection

Self administered questionnaire: A questionnaire tool used to

collect primary data where by a set of questions were designed to

collect data from the study respondents. The respondents filled

the questionnaire themselves during the process of data

collection. This questionnaire tools were collected from

marketers. The method was used since it was provided by high

level of confidentiality as the study respondents would answer

the questions at their convenient time.

3.8 Research procedures

The researcher respected human dignity by not revealing the

identity of the respondents in the study. To this, a letter of

41

introduction was obtained from the Dean Faculty of Business and

development Studies seeking permission to conduct the study after

being directed by the supervisor to do so. This letter was

presented to the respondents where the study was conducted for

permission.

3.9 Data Analysis

Editing of collected data was done to make the data ready and

simpler for presentation. The filled questionnaires were edited

one by one to correct errors done by the study respondents. Data

was edited in order to check for accuracy, completeness,

consistency and uniformity and presentation of data involved use

of tables which was generated from the questions that were

relevant to the study variables.

The edited data was analyzed both quantitatively and

qualitatively. Quantitative data were grouped and statistical

description such as tables showing frequencies and percentages

and pie- charts as well as graphs for better interpretation.

However, qualitative data was analyzed in a way of identifying

the responses from respondents that was relevant to the research

problem and such data was analyzed by explaining the facts

collected from the field under which the researcher enable to

quote respondents responses.

42

3.10 Limitations of the Study

The study faced with a problem of not finding all respondents in

the study area especially the manager of the centre. The

researcher was however arranged with him/her to fix appropriate

time in order to collect reliable and valid information.

The study was expensive in terms of stationary and transport

costs. The researcher mobilized financial resources to complete

her study successfully in time with the help of the supervisor.

The researcher was further faced with a problem of some

respondents not providing information for the study as

information relating to the study variables. The researcher

explained to the respondents that the information was only for

academic purpose while making them to understand the study

variables.

43

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF STUDY FINDINGS

4.1 Introduction

The chapter highlights the biographic descriptions of the

respondents in terms of gender, marital status, age range, and

level of education level in relation to their views and

perceptions about motivation and organizations in Uganda. The

chapter also presents responses concerning the study objectives

such as; to establish ways how organization motivates its

employees, to establish organizational performance indicators in

44

Airtel Telecommunication Company and to find out the relationship

between employee motivation and organizational performance

4.2 Background Information on the Respondents

With regard to background characteristics of the respondents, a

number of variables were investigated. The researcher regarded

investigating the background variables about the respondents a

necessary undertaking because it helped him to know the extent to

which the respondents’ possess acquaintance with the study area

as well as the variables under study. The study involved

respondents of varying characteristics which enabled the

researcher to get sufficient information on the study variables

as follows.

4.2.1 Gender of the respondents

The gender of respondents was established. This aimed at knowing

how males and females as community members actively participate

in running organizations activities. The study targeted both male

and female which gave a variety of findings that were not biased

making it gender sensitive and the findings were revealed as in

table 2.

Table 2: Showing gender of the respondents

Gender Frequency FrequencyMale 37 61.7Female 23 38.3Total 60 100

45

Source: Primary Data, 2014

As seen in the table 2 above, most of the study respondents were

male as they constituted 37(61.7%) of the total 60 respondents

compared to the least 23(38.3%) of the respondents who were

female. The gender difference could be due to the fact that most

of works done at Airtel Telecommunication Company require

energetic people which can easily be done by men who can move for

long distances marketing the products of the company.

Figure 1: Showing gender of the respondents

62%

38% M aleFem ale

Source: Primary Data, 2014

4.2.2 Age group of the respondents

The age composition of the study respondents was also an

important factor in the process of understanding the effect of

motivation on organization performance. Findings from the study

respondents revealed different age groups as in table 3 below;

Table 3: Showing age group of the respondents

Age group Frequency Percentage

46

18-25 45 7526-31 10 16.732-37 02 3.338-43 03 05Total 60 100

Source: Primary Data, 2014

The table 3 shows that most of the respondents were between the

ages of 18-25 accounting for 45(75%). This was followed by the

group of respondents accounting to 10(16.7%) who were in the age

range of 26-31, then those with 03(5%) lying in the age group of

38-43, and only 02(3.3%) had 32-37 as illustrated in the table

above. All the respondents were likely to understand better the

effect of motivation on organizations performance which they were

in position to provide as most of them reported to have worked in

the organization for at least more than a year. Most of the

respondents comprised of people in age of 18-25 as such people

could move around and outside Mbarara Town looking for the market

of the company products.

4.2.3 Marital status of the respondents

The marital status of the respondents was also covered and

analyzed to assess their views in relation to the study variables

of motivation and performance in organizations.

Table 4: Showing marital status of the respondents

Marital Status Frequency PercentageSingle 47 78.3

47

Married 13 21.7Total 60 100

Source: Primary Data, 2014

The table 4 above, indicates that majority of the study

respondents 47(78.3%) were single and these were followed by

respondents who were married as reported by 13(21.7%) of the

respondents as none of the study respondents reported to fall

under the category of Separated/divorced and widowed respectively

The study findings revealed that most 47(78.3%) of the

respondents were single as compared to any other marital

distribution. It was informed by the study that people who work

at Airtel Telecommunication Company are single. This could mean

that single people are employed at Airtel Telecommunication

Company as such people have no much responsibility and can easily

be moved to work in place and at any time that is seen in the

company.

4.2.4 Level of education of respondents

In order to get information from all categories of respondents,

those that have attained primary, secondary, tertiary, and

university levels of education were all approached during the

48

study process. This established the levels of education of the

respondents as indicated in table 5.

Table 5: Showing level of education of the respondents

Level of

education

Frequency Percentage

Secondary level 20 33.3Diploma 17 28.3Bachelor’s 17 28.3Others like

certificates

06 10

Total 60 100 Source: Primary data, 2014.

Table 5 above shows that majority of the respondents had reached

secondary level; diploma and degree were the same respondents,

and other levels like certificates. These were represented by

20(33.3%) for those who had secondary level of education,

17(28.3%) with diploma and degree level respectively and 06(10%)

with other levels of education like certificates.

It was further discovered by the researcher that majority of the

respondents had attained secondary level of education and these

were mainly the respondents who were the causal workers at Airtel

Telecommunication Company in Mbarara Municipality working as

company marketers while selling the company products like Sim

Cards, Air time and phones. These findings showed that the

information was from literate respondents and who could

49

understand the effect of motivation on performance in

organizations at Airtel Telecommunication Company.

4.2.5. Period spent at Airtel Telecommunication Company

The study also considered the number of years respondents had

spent working with the company of Airtel Telecommunication

Company in Mbarara Municipality. The respondents had spent

different years in the organization as in table 6.

Table 6: Showing years of service with Airtel Telecommunication Company

Number of years Frequency PercentageLess than 3 55 923 – 5 years 04 6.7Above 5 years 01 1.3Total 60 100Source: Primary Data, 2014

Figure 2: Showing years of service with Airtel Telecommunication

Company

50

0102030405060

Frequency

1Number of years

Less than 3 3 – 5 years Above 5 years

Source: Primary Data, 2014

According to the table 6 above, it was revealed that out of

60(100%) respondents, 55(92%) have served with Airtel

Telecommunication Company in Mbarara Municipality for a period

less than years, followed by 04(6.7%) who had served for the same

company for the period between 3 -5 years while 01(1.3%)

respondent had served for a period more than 5 years.

Findings further revealed that majority 55(92%) of respondents

have been serving the company for the period less than 3 years.

This could mean that most of the company employees’ just work at

Airtel Telecommunication Company in Mbarara Municipality as they

are looking for alternative since the company does not motivate

them very well. In addition, the company employs most of the

vocation students who just work for short time as they are

waiting for their further studies due to low motivational tools

used.

51

4.3 Ways how Airtel Telecommunication Company motivate its

employees

The first study objective was set to find out the ways how Airtel

Telecommunication Company motivate its employees, different

results from the study were established as follows.

4.3.3 Ways of motivation at Airtel Telecommunication Company

Limited

Table 7: Showing whether Airtel Telecommunication Company was motivating itsworkers

Responses Frequency PercentageYes 48 80No 09 15Not sure 03 05Total 60 100Source: Primary Data, 2014

As illustrated in table 7, most of the respondents revealed

Airtel Telecommunication Company Limited was motivating its

workers with 48(80%). The same respondents were able to reveal

that the organization was motivating its employees in number of

ways including provision of allowance, promotion, carrying of

workshops, giving thanks among other ways. However, 09(15%) of

the respondent said that the organization was not motivating its

employees while a small number of the respondents indicated that

were not sure of the same question. It was further established by

the study that the respondents 03(05%) who were not sure of

52

whether Airtel Telecommunication Company Limited was motivating

its employees were all the internee students at the organization.

Respondents from the study were also required to indicate the

forms of motivation that Airtel Telecommunication Company Limited

was providing to its employees to improve their performance at

the same organization, and the findings from the respondents

revealed the following as indicated in table 8.

Table 8: Showing how Airtel Telecommunication Company Limited motivate

workers

Forms of motivation Frequency PercentageWorkers retreats 22 37Holding workshops 13 22Training workers 07 12Provision ofallowances 11 18

Provision of leavedays 07 12

Total 60 100Source: Primary Data, 2014

53

Figure 3: A graph how Airtel Telecommunication Company Limited

motivate workers

Source: Primary Data, 2014

Table 8 shows that majority of the respondents’ responses 22(37%)

revealed workers retreats among the forms of motivation that was

offered to employees' at Airtel Telecommunication Company

Limited, then holding workshops with 13(22%), followed by

provision of allowances with 13(11%), then training of workers

and this constituted 07(12%) of the respondents responses as

compared to the least number of the respondents responses

totaling 07(12%) who revealed that provision of leave days is

done at Airtel Telecommunication Company Limited in a way of

motivating employees of the organization. The study also revealed

whether forms of motivation offered to Airtel Telecommunication

Company Limited employees were motivating.

05

1015202530

Forms of motivation

Workers retreatHoldingWorkshopsTrainingworkers

Provision ofSome allowancesProvision ofleave days

54

4.4. Findings on the organizational performance indicators in

Airtel Telecommunication Company.

Table 9: Profitability is an organizational performance indicatorin Airtel Telecommunication Company

Response Frequency PercentageStrongly agree 32 53.3Agree 18 30Not sure 4 6.7Disagree 6 10Total 60 100Source: Primary Data 2014

From table 9, 53.3% of the total respondents strongly agreed that

profitability is an organizational performance indicator, 30%

agreed, 6.7% were not sure, 10% disagreed and none strongly

disagreed. This indicates that profitability is an organizational

performance indicator given a higher percentage for the strong

agreement of 53.3%.

Table 10: Net worth determines how financially strong the company is.

Response Frequency PercentageStrongly agree 24 40Agree 28 46.7Not sure 2 3.3Disagree 2 3.3Strongly disagree 4 6.7Total 60 100Source: Primary Data, 2014

55

Table 10 portrays that 40% respondents strongly agreed that net

worth determines how financially strong the firm is, 46.7%

agreed, 3.3% not sure, 3.3% disagreed and 6.7% strongly

disagreed. This indicates that the firm employs net worth to

indicators its organizational performance and more net worth

imply more financial strength.

Table 11. Real cash flows enable management to report on the financialposition of the firm

Response Frequency PercentageStrongly agree 24 40Agree 26 43.3Not sure 6 10Disagree 4 6.7Total 60 100Source: Primary data.

As reflected in table 11, 40% strongly agreed that real cash

flows enable management to report on the organizational

performance financial position of the firm, 43.3% agreed 10% not

sure, 6.7% disagree and none of the respondents strongly

disagreed. This means that real cash flows constitute a financial

performance measure.

56

Table 12: The Company reviews its balance sheet strength to declare its

performance.

Response Frequency PercentageStrongly agree 19 32.2Agree 31 50.8Not sure 6 10.2Strongly disagree 4 6.8Total 60 100Source: Primary Data 2014

From table 12, 32.2% of the total respondents strongly agreed

that the company review its balance sheet to declare performance,

50.8% agreed, 10.2% were not sure, none disagreed and 6.8%

strongly disagreed. This indicates that balance sheet strength is

reviewed to indicator the organizational financial performance of

Airtel Telecommunication given the greater percentage of

agreement than disagreement.

Table 13: Risk/Exposure

Response Frequency PercentageStrongly agree 10 16.7Agree 24 40Not sure 10 16.7

57

Disagree 14 23.3Strongly disagree 2 3.3Total 60 100Source: Primary Data 2014

Table 13 portrays that, 16.7% of the total respondents strongly

agreed that the firm assesses its financial performance in terms

of risk/exposure confronted, 40% agreed, 16.7% were not sure,

23.3% disagreed and 3.3% strongly disagreed. This means that

Airtel Telecommunication risk constitute an organizational

performance indicators employed by the firm.

Table 14: Fair Market Value (FMV) is an indicator of good performance

Response Frequency PercentageStrongly agree 10 16.7Agree 30 50Not sure 12 20Disagree 6 10Strongly disagree 2 3.3Total 60 100Source: Primary Data 2014

From table 14, 16.7% strongly agreed that fair market value is an

indicator of good performance, 50% agreed 20% not sure, 10%

disagreed, and 3.3% strongly disagreed. This indicates that,

Airtel Telecommunication employs fair market value to measure its

financial performance given a higher percentage of 50% in

agreement.

58

4.5 The relationship between employee motivation and

organizational performance

The above aspect was also covered by the study and according to

the research findings, different views as per respondents were

revealed regarding relationship between employee motivation and

organizational performance as follows.

Table 15: Showing whether there is a relationship between employee

motivation and organizational performance

Relationshi

p

Percentage Frequency

Yes 58 97No 02 03Total 60 100 Source: Primary data, 2014.

Calculated Chi square (Xo2) = 48.6

Degree of freedom = 1

Tabulation Chi square (Xt2=0.05, 1) = 3.84

(Xo2 = 48.6> Xt

20.05, 1 = 3.84)

From the table 15 above, majority of the respondents said that

there is a relationship between employee motivation and

organizational performance and this comprised of 58(97%) of the

study respondents while only two of respondents said that there

59

is no relationship between employee motivation and organizational

performance as this was cited by 02(03%).

The study established that the respondents who revealed that

there is a relationship claimed that motivational tools provided

to employees help them to perform well by maintaining employees

to employers relationship, encouraging performance of work

efficiently and effectively, help employees to solve of personal

problems, encouraging team work, improve on workers morale at

their work places to perform better for improved organizational

performance. These findings indicate that motivation of employees

has a role towards organizational performance especially

telecommunication companies.

By applying

4

X2 = (∑ f0i –fei) 2

i=1 fei

X2 = 48.6

On testing the results from the findings, chi square calculated

(Xo2) was 48.6 while chi square tabulated (Xc

2) was 3.84 at 1

level degree of freedom from 5% level of significance. Since chi

square observed was greater than chi-square tabulated, it made

the findings statistically significant. Basing on the findings

from most of the respondents, this lead to the conclusion that

there is a relationship between employee motivation and

organizational performance.

60

61

CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter of the study deals at length with addressing the

objectives of the study as: to establish ways how Airtel

Telecommunication Company motivate its employees, to establish

organizational performance indicators in Airtel Telecommunication

Company and to find out the relationship between employee

motivation and organizational performance. The section further

summarizes the main findings of the study by making conclusions,

and recommendations.

5.2 Discussion of the study

5.2.1. Findings on the different ways of motivation at AirtelTelecommunication Company LimitedThe study findings showed that the different ways of motivation

at Airtel Telecommunication Company Limited include; provision of

allowances such as food, transport, medical, study leaves among

other tools, holding workshops, workers retreats, training

workers, provision of leave days, promotion, timely appraisal,

and use of thanks to well performers at the company especially

during every year end. These findings can be related with Chandan

(1987) who argued that there are four types of motivation such

as, positive motivation which involves proper recognition of

employees efforts and appreciation of employees contributions

62

towards the organizational goal, negative or fear motivation

which is based upon force, fear and threats, intrinsic motivation

which is concerned with the state of self actualization and,

satisfaction of accomplishing something worth and extrinsic

motivation which is induced by external factors that are

primarily financial in nature. These external motivators

include; higher pay, fringe benefits like retirement plans, stock

options, profit sharing schemes, health and medical insurance,

maternity leave, paid vocation among others.

Findings from the study revealed that the biggest number of the

respondents were able to say that motivation plays a role in

helping organizations to perform well. The respondents were also

able report that the forms of motivation provided to employees by

the organization help them to perform well by maintaining

employees to employers relationship, help in encouraging

performance of work efficiently and effectively, help in solving

employees personal problems in their homes, encourage team work

as well as improving morale of employees at their work places to

perform better for improved organizations performance.

Respondents during an interview revealed that monitoring and

evaluating of employees during the time of performing their work

periodically create fear of being dismissed from work hence work

with one heart of remaining in the organization.

63

The above findings can be related with McCoy (1992) who cited

that high motivation is the key to success in any endeavor. It

may come from within a person (intrinsic motivation) or from

external influences (extrinsic motivation). For example,

intrinsic motivation is derived from engaging in exercise for its

own sake, for the satisfaction and the sheer enjoyment it brings,

and for no external reasons. Those who are intrinsically

motivated give up less easily and generally achieve higher levels

of fitness than those who are solely motivated by external

rewards such as praise, money, and trophies.

5.2.2. Findings on the organizational performance indicators in

Airtel Telecommunication Company

Findings indicated that the company used to establish

organizational performance indicators in Airtel Telecommunication

Company which include: Profitability, net worth, real cash flows,

balance sheet strength, risk/exposure and fair market value. A

considerable proportion of respondents testified that the

measures are effective only a few areas need some improvements to

achieve perfection.

5.2.3 Findings on the relationship between employee motivation

and organizational performance

The study established there is a positive relationship between

employee motivation and organizational performance. This is so

because, motivational tools provided to employees help them to

64

perform well by maintaining employees to employers relationship,

encouraging performance of work efficiently and effectively, help

employees to solve personal problems, encouraging team work,

improve on workers morale at their work places to perform better

for improved organizational performance. These findings indicate

that motivation of employees has a role towards organizational

performance especially telecommunication companies. This was

evidenced by the chi square calculated (Xo2) that was 48.6 while

chi square tabulated (Xc2) was 3.84 at 1 level degree of freedom

from 5% level of significance. Since chi square observed was

greater than chi-square tabulated, it made the findings

statistically significant. Basing on the findings from most of

the respondents, this lead to the conclusion that there is a

relationship between employee motivation and organizational

performance.

5.3 Conclusions

The study concluded that ways of motivation at Airtel

Telecommunication Company Limited include; provision of

allowances such as food, transport, medical, study leaves among

other tools, holding workshops, workers retreats, training

workers, provision of leave days, promotion, timely appraisal,

and use of thanks to well performers at the company especially

during every year end.

65

It also concluded that motivation plays a significant role

towards organizational performance. This is because, respondents

were also able to report that the forms of motivation provided to

employees help them to perform well by maintaining employees to

employers relationship, help in encouraging performance of work

efficiently and effectively, help in solving employees personal

problems in their homes, encourage team work as well as improving

morale of employees at their work places to perform better for

improved organization’s performance.

The study also concluded that there are a number of challenges

were faced by Airtel Telecommunication Company Limited. These

challenges include; power problem, lack of enough funds, labour

turn over, competition from other telecommunication companies and

lack of constant market for the products.

Lastly, that there is a positive relationship between employee

motivation and organizational performance. This is so because,

motivational tools provided to employees help them to perform

well by maintaining employees to employers relationship,

encouraging performance of work efficiently and effectively, help

employees to solve of personal problems, encouraging team work,

improve on workers morale at their work places to perform better

for improved organizational performance.

66

5.4 Recommendations

Basing on the study findings, the following recommendations were

highlighted as follows;

Government involvement should take part in recommending the

provision of motivational needs through adjusting in the labour

laws. This will ensure that all organizations provide basic

requirements to their employees and eventually enable them to

work hard for improved performance in organizations.

It is also recommended that there should a greater balance

between employees’ needs and organizational needs. It is the duty

of all stake holders to ensure that this is achieved. This will

reduce employees’ selfishness.

Refresher courses should be given to managers to improve upon

their management skill so as to effectively and appropriately

tackle employees’ diverse needs. This can contribute towards

reducing on the rate of labour turn over in organizations.

The Airtel Telecommunication Company Limited management should

take an initiative to visit other management in other

organizations so as to copy some of the measures used to motivate

employees to perform better. This can also go a long way in

motivating more employees to work hard to improve their

performance.

67

Organizations should endeavour to robby for more funds from

international donor so as to increase the budget allocations for

their staff in terms of providing them with better motivational

tools after understanding their needs. This can lead to increase

in staff salary among other motivational tools hence promoting

confidence among to stay and work for long in such organizations.

Career guidance and counseling of workers in case their

expectations are not met should be done by the management in

organizations to ensure that their employees are motivated. This

can best be achieved if done in form of training.

5.5 Area for further studies

For comprehensive and exhaustive study further research should be

done on.

The impact of salary motivation and performance of Airtel

Telecommunication Company Limited Uganda.

The influence of corporation tax on the performance of Airtel

Telecommunication Company Limited Uganda.

The relationship between corporate social responsibility and

performance of Airtel Telecommunication Company Limited Uganda.

68

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APPENDICES

APPENDIX A: QUESTIONNAIRE TOOL

I am NATUKWASA EVAS a student of Bishop Stuart university

conducting a research study on employee motivation and

organizational performance as a partial fulfillment of the

requirements for the award of a bachelors degree in business

administration .I assure you that this research is highly

academic and highly confidential and therefore will be the data

obtained and your genuine contribution to this success is highly

appreciated.

Thanks and God bless you.

76

SECTION A: RESPONDENTS BIO-DATA

1. Gender of the respondent

a). Female

b) . Male

2. Age of the respondent

a). 18 -25

b). 26 -31

c). 32 -37

d). 38- 43

3. Marital status of the respondents

(a) Single (b) Married

(c) Separated/divorced (d) widowed

4. Level of Education of the respondent

a). Secondary

b). Diploma

c). Bachelors

d). Others; specify…………………

5. For how long have you been working in this company?

a) Less than 3 years b).

3 -5 years

c). above 5 years

77

SECTION B: WAYS HOW AIRTEL TELECOMMUNICATION COMPANY MOTIVATE ITS

EMPLOYEES

6. Does this company motivate workers?

a). Yes b). No

7. If yes, what motivational ways does Airtel Telecommunication

Company use?

……………………………………………………………………………………………………………………………………………………………………………

…………………………………

………………………………………………………………………………………………………

8. How often is the mentioned ways of motivation provided?

……………………………………………………………………………………………………………………………………………………………………………

…………………………………

SECTION C: THE ORGANIZATIONAL PERFORMANCE INDICATORS IN AIRTELTELECOMMUNICATION COMPANY

Extent of agreement SA A

D SD NS

9. Profitability is organizational performancemeasure in Airtel telecommunication company.10. Net worth determines how financially strong thecompany is.11. The company reviews its balance sheet strengthto declare its organizational performance.12. Real cash flows enable management to report onthe financial position of the Airteltelecommunication company.13. Airtel telecommunication company organizationalperformance is assessed in terms of Risk/Exposureexperienced.

78

14. Fair Market Value (FMV) is an indicator of goodorganizational performance.

SA: Strongly Agree; A: Agree, D: Disagree; SD: Strongly Diagree,

NS: Not sure

SECTION E: RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION AND

ORGANIZATIONAL PERFORMANCE

15. Do you think there is a relationship between employee

motivation and organizational performance?

Yes b). No

16. If yes, what is the relationship between employee motivation

and organizational performance?

…………………………………………………………………………………………………….

……………………………………………………………………………………………………………………………………………………………………………

……………………………….

17. Any other comment?

……………………………………………………………………………………………………………………………………………………………………………

……………………………….

THANK YOU & BE BLESSED!!!

79

App

endix B: Map Mbarara District

80

Appendix C: Time Frame Work 2013/2014Activit

y

Time of the

year

Oct Nov Dec Jan Feb mar Apr May

Proposa

l

writing

Data

collect

ion

Data

analysi

s

First

draft

submiss

ion

81

Handing

in the

last

collect

ed

draft.

APPENDIX D: BUDGET FOR THE STUDYITEMS QUANTITY UNIT COST TOTAL

Flash 1 30,000 30,000

Internet 1,500 20,000

StationaryPapers 1 ream 15,000 15,000

Book 1 1,000 1,000

Pencil 1 300 300

pens 4 500 2,000

Binding 2 books 10,000 20,000Typing and printing 1 book 35,000 35,000

82

Final draft 2 books 35,000 70,000Photocopying questionnaires 60 copies

of 4

pages

each

200 60,000

Transport 20,000TOTAL 128500 273300

83