CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY The need to increase productivity and efficiency in the work place or any organization has led to increasing academic interest in the area of motivation over the years. Scholars have been keenly interested in knowing what factors are responsible for stimulating the will to work. Thus motivation has become an issue of concern for both scholars and practitioners of personnel management. Every organization either in the private or public sector is goal oriented and all efforts are geared towards the successful attainment of those goals and objectives. Therefore, for any organization to record any degree of meaningful success in the pursuit 1
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IMPACT OF EMPLOYEE MOTIVATION IN THE BANKING SECTOR
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The need to increase productivity and efficiency
in the work place or any organization has led to
increasing academic interest in the area of
motivation over the years. Scholars have been keenly
interested in knowing what factors are responsible
for stimulating the will to work. Thus motivation has
become an issue of concern for both scholars and
practitioners of personnel management.
Every organization either in the private or public
sector is goal oriented and all efforts are geared
towards the successful attainment of those goals and
objectives. Therefore, for any organization to record
any degree of meaningful success in the pursuit of its
goals and aspirations, it must have the ability to
create values (motivation) enough to compensate for
the burdens imposed upon the staff. Such value or
motivators can come in the form of good training
policies, facilities or incentives such as fringe benefit,
promotion, status symbol etc so as to satisfy the
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needs of the staff for enhanced performance (Obisi,
1996).
It has been shown, argued and proven that
unless individual staff are motivated to make
sufficient use of the potentials found in them during
the employment process they may not achieve the
level of performance that is desired from them
(Morris, 1998). For a staff to be motivated, he or she
has to perceive that his or her needs and wants are
being met. Thus the satisfaction of the staff
represents an indispensable dimension of the
motivational process. A satisfied individual would
certainly contribute positively to the realization of the
organizational goals and objectives while a
dissatisfied staff may only not contribute but can
even act in such a way that the realization of such
goals and objectives could be completely destroyed.
This underlines the importance of staff satisfaction to
the organisation.
Motivation is said to be the core of management
of human resources. The management of men and
women is a challenging task. No two persons have
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the same qualities, feelings and behaviour. The
nature of man is very complex. It is not easy to take
care of human beings with such varying
characteristics and qualities.
Without motivation, organisation would not last
long. Human resources must be activated, trained,
developed and above all motivated in order to realize
individual and organizational goals. An individual who
has ability, skills and knowledge would not do much
without motivation. However, an individual with skills,
knowledge and ability with added motivation is a
sure way to success (Ajiola, 2002). The performance
of a worker does not depend largely on his ability,
intelligence, skills and knowledge but on the
motivation which he has. If we do not motivate a
worker, he would not as such be a problem solver
(Abbegleen, 2001).
It is generally acclaimed that incentives such as
good pay, good condition of service, provision of
decent accommodation, opportunity for staff training
etc. motivate employees in order to increase their
productive capacity. In view of the above, therefore,
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incentives are regarded as the major factor which
motivates employees to exhibit better performance.
However, it is not a matter of course to motivate an
individual staff because the success of any
motivational effect solely depends on the extent to
which the motivation meets the needs of the
individual employee.
Finally, the test for management of either
private or public organisations therefore is to
determine the valued needs and motivators that will
make an employee react according to the
organizational desires to increase productivity. The
impact of employee motivation on the banking
industry using the Union Bank of Nigeria Plc,
Maiduguri as a case study will therefore form the
basis of this study.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Personnel management, motivation and
productivity are areas that have occupied the minds
of management in Nigeria especially in the private
sector. Managers and scholars alike have wondered
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at the poor attitude to work of employees in the work
place.
With the rise of new ideas of management and
motivation, one expects to see that these ideas are
applied and the employees motivated to maximum
productivity. However, the opposite has always
seemed to be the case. One notices in many public
and private organisations the non-challant and
sluggish attitude to work by the employees, and
wonders where the problem lies.
Union Bank Plc, Maiduguri is not an exception to
the above problem. Employees of the organisation
only perform their duties as much as will enable
them to keep their jobs. Despite the fact that the
organisation is meeting the needs for which it is
created the employees seem not to be happy and
have not utilized their full potential and skills. It is
against this backdrop that this study examines the
impact of employee motivation on the organization.
1.3 OBJECTIVES OF THE STUDY
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The general objective of the study is to examine
the impact of motivation on productivity in Union
Bank Plc. The specific objectives are to:
(1) examine what motivates employees in Union
Bank Plc.
(2) examine the impact of motivation on employee
performance in in Union Bank Plc.
(3) identify the problems of motivation in in Union
Bank Plc.
(4) recommend ways of enhancing motivation and
employee performance in Union Bank Plc.
1.4 RESEARCH QUESTIONS
Based on the objectives of the study, the
following questions are formulated:
(1) What are the motivational factors of employees
in Union Bank Plc.?
(2) What is the impact of motivation on employee
performance in Union Bank Plc.?
(3) What are the problems of motivation of
employees in Union Bank Plc.?
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(4) How can motivation and employee performance
be enhanced in Union Bank Plc.?
1.5 RESEARCH HYPOTHSES
The central hypotheses guiding this study are:
(1) Ho: There is no relationship between
employee motivation and
performance in the banking industry.
(2) Ho: Jobs in the banking industry have
not provided motivation for its
employees.
1.6 SIGNIFICANCE OF THE STUDY
The need for the study arises from the
realization that the pivotal asset of any organisation
is the employees. Without them the very survival of
the organisation could be an impossibility. Such an
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important asset needs to be motivated to make them
contribute their best to move the organisation
forward. Thus, a study of this nature is a step in the
right direction.
The study possesses some academic value and
could be of interest to both researchers and students,
managers in the banking industry and the general
public.
To the researchers and students, it will be a
contribution to knowledge and literature on the topic
and a guide for further study. To managers of
organizations and the banking industry, the study will
help identify motivational factors of employees, their
problems and suggestions on how to motivate and
enhance their performance.
To the general public, the study will be an eye
opener on the impact of employee motivation on the
banking industry.
1.7 SCOPE OF THE STUDY
The study essentially concentrates on
motivation. Emphasis will be on the impact of
employee motivation on the banking industry. The
study is limited to Union Bank Plc, Maiduguri.
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1.8 DEFINITION OF TERMS
This section clarifies concepts within the context of
this research. These concepts are as follows:
Motivation: The state or condition of being induced to do
something.
Employee: This refers to managerial, secretarial,
technical and
other personnel in an organization.
Impact: This is concerned with the effect that motivation
has on
employees of the organization in relation to
their
performance.
REFERENCES
Abbegleen, H. (2001) Principles of Management: A Modern
Approach. (Seventh Edition) John Willey and
Sons, London.
Ajilola, E. (2002) “How to Motivate the Nigerian Workers”
in Management in Nigeria Journal. Vol. 2, No. 6.
PP.157-192
Morris, V. (1998) Motivation and Morale in Industry. Norton
and Co., New York.
Obisi, C. (1996) Personnel Management. Jackbod
Enterprises, Ibadan.
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CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter is dedicated to the review of
relevant literature for the study. Consequently, the
works of scholars and authors on the concept,
objectives, techniques, complexity of motivation,
management policies and theories of motivation will
be reviewed.
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2.1 CONCEPT/DEFINITION OF MOTIVATION
The word motivation is derived from a Latin
word “movere”, meaning to “move”. In its simplest
term, the term may be defined as the state or
condition of being induced to do something.
Essentially, motivation involves individual needs and
the extent to which they are met by the organisation
or the extent to which the worker perceive that his or
her needs are met by the organisation.
According to Campbell and Pitchard( 1976:34),
motivation has to do with a set of
independent/dependent variable relationship that
explains the direction, skills and understanding of the
task and constraints operating in the environment.
Motivation also refers to the underlying psychological
state that impels or causes behaviour. A motive
generally is a need, want or desire which operates
within the individual which makes him to exhibit
certain behaviour.
Glueck (1980:114), defines motivation as the
process or factors (motives) that influence people to
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act. He went further to state that psychologists view
motivation as the process and channeling of
behaviour into a specific course. He also sees it as a
general term applying to the entire class of desires,
drives, needs, wishes and similar forces.
Writing in the Nigerian Institute of Management,
Ajilola (1976:22), defined motivation as a process of
stimulating people to action to achieve organizational
task as well as a process of stimulating oneself to
action to gratify a felt need.
Victor Vroom sees motivation as a process
governing choices made by persons or lower
organisations among alternative forms or voluntary
activity (Vroom, 1964:75).
Motivation is the process of creating
organizational conditions which will impel staffs to
strive to attain company goals (Hodgetts, 1979:9).
According to Morns (1953:21), motivation represents
an unsatisfied need which creates a state of tension
or disequilibrium, causing the individual to move in a
goal directed pattern towards restoring a state of
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equilibrium by satisfying the need. Lillis (1958:35),
defines motivation as the stimulating of any emotion
or desire operating upon one’s will and prompting or
driving it into action.
Steers and Poster (1979) presents a model of
the process of motivation as follows:
Fig. 2:1 Model of the Process of Motivation
Source: Steers and Porter (1976:103)
This model implies that individuals have desired
needs within them that leads to the development of
behaviour aimed at meeting their goals or needs. A
feedback is necessary in order to assess whether the
behaviour is producing the desired goals or if there is
the need for modification.
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Inner state and disequilibrium, needs, desires or expectancy
accompanied by participation
Behaviour Action
Incentive Goal
Modification Inner State
From the above, one observes that motivation is
something that originates from the inner state of an
individual. Motivation can also arise from the socio-
economic environment. This implies that factors
within the socio-economic environment trigger off a
desire to achieve a certain goal in order to meet the
expected goals.
Motivation is an exchange between individual
and the socio-economic environment. The
environment gives the individual set of value
preferences from which the goals to which his desires
are expressed and the individual gives to the social
environment by conforming to its norms through his
behaviour (Dublin, 1974:44).
2.2 OBJECTIVES/IMPORTANCE OF MOTIVATION
Motivation is simply the will to achieve. It was
discovered that since organisations are made up of
people, it was not enough to get the right kind of
people and place them in the right kind of job. That is
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in itself not enough to facilitate efficiency and
effectiveness because man is a behavioural animal
propelled by his behaviour and as such his behaviour
has to be channeled to a productive one. It is obvious
that human behaviour is complex and therefore not a
simple matter. Man in organisation exit in a system
where there are interactions and interdependencies
of interaction and in the context of all this, man
needs to be motivated. People need to be tuned and
stimulated before they will put in their best.
The major objectives of motivation is to provide
opportunities for personal need fulfillment for each
staff in such a way that will encourage him to put in
his best towards the accomplishment of
organizational goals and objectives. Generally, an
staff is motivated by opportunities to achieve and
satisfy unfulfilled needs. Within the individual staff
there exist some desires which needs fulfillment. To
fulfill these unsatisfied needs and desires become
forces that initiate or incite action. When a staff sees
an opportunity to achieve what is important to him,
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he gets attracted to that opportunity. The perceived
opportunity is referred to as “incentive”.
“Performance” is regarded as a behaviour which
is directed towards a task or goal accomplishment
while motivation on the other hand is the core stone
that provides incentive for the staffs to work hard
which intimately brings about productivity thus
making the anticipation of the organisation a reality.
How do you identify a motivated person? A motivated
person can be identified through the extent of his
commitment to the organisation that he belongs.
According to Abbegleen (1974) a motivated
person could be identified through the following:
(3) If the person is ready to defend the organisation
anywhere?
(4) One prefers the organisation he belongs to any
related one.
(5) He is ready to spend the rest of his working life
in the organisation to which belongs.
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(6) One with expressing satisfaction and
contentment with the internal workings of the
organisation which he belongs.
(7) One who is likely to have no intra-organizational
conflict with those up, below and horizontal
level of the organisation.
(8) He that is ready to willingly contribute his effort
towards the success of the organisation to
which he belong (Abbegleen, 1974:415).
2.3 STEPS/TECHNIQUES IN MOTIVATING
EMPLOYEES
There are two kinds of motivation: positive and
negative motivation. If people work due to fear and
reasons of punishment and reprimand, it is negative
motivation. On the other hand, if people work
willingly and without coercion, it is positive
motivation. Motivation can also be internal or
intrinsic, external or extrinsic. The feeling of being
recognized, praised for a job well-done and
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participation in whatever we do can be called internal
or intrinsic motivation while external or extrinsic
motivation concerns such motivations like money,
retirement benefits, health insurance and
compensation (Obisi, 1997:306).
According to Michael (1975:179) there are four
steps to be followed in motivating the staffs. They
are:
(1) Sizing up issues requiring motivation:
Motivation is not a straight-jacketed affair.
Organisations must make sure that the areas
they are applying motivation is actually where it
is needed. Certain staffs may want their
organisations to help them to further their
education which will enhance their career while
some may want something else. Organisations
must take care of these varying expectations in
their approach towards motivation.
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(2) Preparing a set of motivating tools:
The next step would be to understand those
tools which would actually motivate the people.
There are items or tools which may motivate the
executives more than the other rank and file.
(3) Selecting and Applying Motivators:
Tools and items selected as motivators must be
applied at the right time for it to be useful.
Bonus during celebration is ideal. Staff vacation
during children vacation period would enable
the whole family to travel on a holiday.
(4) Getting Feedback:
The feedback of what we are doing to motivate
people must be obtained to enable
organisations make for re-examinations and find
out usefulness of what they are doing.
There are various incentives and techniques
which organisations can use in motivating their
staffs. These techniques or incentives may be divided
into two, namely financial or Monetary and non-
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financial or non-monetary incentives. With reference
to financial Incentives, some individuals are ready
and willing to define motivation as money. Most
people are motivated by money. Under financial
motivation may come such things as compensation;
business, leave allowances, other financial benefits
and remunerations. Monetary reward as a motivator
is high in developing economies due to very low
quality of life which they are facing.
Non-financial or non-monetary incentives give
personal satisfaction to the individual. It is a reward
which gives inner joy to the individual but cannot be
measured and quantified in terms of money. Non-
financial motivation include job Security, more
responsibility and authority, sense of belonging and
recognition, job enrichment, job loading, pride,
praise, prestige and status. Others are participation
and delegation, acceptance, communality and
competition, better quality of work life both on and
off the job, opportunity for growth and promotion,
and job rotation.
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2.4 ORGANISATIONAL POLICIES THAT
ENHANCES
EMPLOYEE MOTIVATION
For motivational tools to succeed, it must be
dynamic. Motivational techniques which are not
flexible are dangerous and counter productive.
Organisations must and should not forget that a
satisfied need is no longer a motivator of behaviour.
Environmental and organizational and even individual
changes should not be forgotten while organizing and
implementing motivational tools, hence the urgency
to be flexible, dynamic and not rigid in applying
motivational tools. Organisations need to take the
following suggestions. Staffs should be taken into
confidence when applying motivational tools,
subordinates should be respected and honoured,
workers must be properly equipped before being
assigned to a job, the right man must be placed and
matched on the right job, and face to face meeting
between superiors and subordinates must be
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regularly organized to explain strengths and
weaknesses and feedback taken.
In addition, personal and demoralizing
influences should be avoided because they attempt
to disrupt the creative potential of the individual
which is a disaster to both the individual and the
organisation. Individuals must be prepared for
change. The greatest fear in the world of
management is not the fear of the unknown but the
fear of change. Due to stiff competition, change is
inevitable and when individuals are not prepared well
in advance for such changes, it becomes difficult to
adjust. It is necessary that organisation renews itself