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METHODIST UNIVERSITY COLLEGE GHANA COURSE TITLE: RESEARCH METHOD (MADM 620)

TOPIC: ASSESSING THE IMPACT OF EMPLOYEE MOTIVATION ON PERFORMANCE (A CASE STUDY OF GHANA COMMERCIAL BANK, RIDGE BRANCH, ACCRA).

NAME: PATIENCE STILES INDEX NO. MBAH/ED/125109 LECTURER: MR. JAMES N. DOKU

TABLE OF CONTENTS
TABLE OF CONTENT .....2 ABSTRACT ..3 1.0 INTRODUCTION ...4

2.0 PROBLEM STATEMENT ........................................................................6 3.0 OBJECTIVE OF THE STUDY.7 4.0 RESEARCH QUESTION/ HYPOTHESI7 5.0 LITERATURE REVIEW...8 6.0 RESEARCH METHODOLOGY .10 7.0 SIGNIFICANCE OF STUDY 8.0 SCOPE OF THE STUDY .11 ......11

9.0 ORGANISATION OF THE STUDY ....12 REFERENCES APPENDIX 1 QUESTIONNIARE

ABSTRACT The main purpose of this study is to assess the role of work motivation on employee Performance. The study is will be an assessment of deductive approach in which a qualitative survey would be carried out among the employees of Ghana Commercial Bank (GCB) who would assume to be the major asset of the company. The survey will be intended to get responses on what they feel is (are) the best factors that motivate them as employees among a list of motivational factors. In this light the study will set to identify the most ranked factors among the motivational factors. The analysis which would be obtained from the pragmatic findings will show that Job satisfaction will be the most ranked factor for both sub groups that will make up the sample survey. However a study from previous researches which would be used in this study will show that different results could be obtained from different groups of working employees. This study therefore could be seen as an introduction to a more detailed study to be carried out by future researchers on the field of employees motivation.

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INTRODUCTION

Employee motivation on performance management takes theprocess where companies use to ensure that their employees are contributing to producing a high quality product or service. Employee performance management, therefore encourages the employee to get involve in the planning for the company, and anticipates by having a role in the process where the employee will be motivated to perform at a high level. Performance is the ratio of output to input in which final production is compared to production materials at start. Performance is a constant improvement in the production/supply of quality output/service through efficient and effective use of inputs, with emphasis on teamwork for the betterment of all. When employee motivation level is increased, it can be beneficial in enhancement of performance and working environment. Also management behavior will result in maximizing performance which helps to achieve organizational goals effectively. Competitiveness is based upon the concept of performance, which is very closely linked to that of training. As organizations throughout the world, especially the Banking sector which is always on the edge of competing among them is discovering diverse ways of increasing their performance level. When employees are well motivated and trained they feel some progress in their own performance and work harder to achieve both personal and organizational goals.

When looking at factors that affect motivation and performance, Agency theory can be helpful as it explains the extent to which organizations need to think of their human resource responsible in producing the output needed by organizations to meet shareholders value.

Agency theory is concerned with issues related to the ownership of the firm when that ownership is separated from the day-to-day running of the organization. It assumes that in all but owner4

managed organizations, the owner or owners (principal) of the organization must vest authority to an agent/corporate management to act on behalf of the principal. Harrison R and Kessels J. (2004, Pp 25-26).

The principal recognizes the risk and act on the assumption that any agent will look to serve its owners interests as it fulfills the contract with that principal. Agency theory will therefore be used to analyze the conflict between the principal (shareholders of an organization) and their agents (managers of these organizations) whereby theAgents in keeping with the interest of the shareholders and organizational goals will turn to use financial motivational aspects like bonuses, higher payrolls, pensions, sick allowances, risk payments, perks to reward and retained their employees and enhance their performance. Principal/Shareholders will aim at increasing their profits and dividends to the detriments of the employees who would create these profits and dividends. It is therefore logical to suggest that attention will be paid to the nature of motivation and the impact on human resource behavior and performance, consequently the performance of the organization. Indeed Boxall and Steeneveld (1999) argue that there is no need to prove the relationship between firm critical influence on performance and labour management as it is selfevident that the quality of motivation is a critical influence on the performance of the firm. Concern for strategic integration, commitment flexibility and quality, will call for attention to employees motivation and retention. Given this perception, the principal in an organization be unable to predict an agents behavior in any given situation and so brings into play various measures to do with incentives in other to tie employees needs to those of their organizations.

Is the issue of motivation and performance positively related? By focusing on the financial aspect of motivation like bonus system, allowances, perks, salaries, etc, there will be the need for

a probe in to the role it has on enhancing employees performance. Financial motivation which is common in most organizations today which is yet to be ascertain if the same applies to Ghana Commercial Bank, and tying to Maslows basic needs, non-financial aspect only comes in when financial motivation fails then a space is then set for non-financial measures, Gibson, Ivancevick, Donnelly, (2004, Pp 214). In this instance, financial aspects of motivation which would be used by the GCB in enhancing their employees performance and its effect on employees performance in the organization will be evaluated. In assessing the methods of motivation and performance in an organization, satisfies and dissatisfies will be used to evaluate how employees motivation is enhanced other than financial aspects of motivation.

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PROBLEM STATEMENT

How will motivation and training influence the performance of employees in an organization towards the achievement of organizational goals? The following variables have been identified and labeled as independent variables and dependent variables. Motivation is very important in influencing employees to accomplish individual as well as organizational goals. This inner drive will motivate the employees to form and exhibit a purposive behavior to achieve specific, unmet needs in the organization. This little encouragement on the part of organization will enable employees to achieve their goals

efficiently by acknowledging employees on their work and effort, providing them good work environment, considering their needs and forming pleasant job designs. The motivation will increase performance. Performance will the dependent variable which will depend upon motivation and training of employees. Literature review also reveals that performance is dependent variable and it is increased by providing effective motivation and training. There are some other variables or factors that affect the performance of employees. Training will be the independent variable in this research. Literature suggests that training of employees has a deep effect on their performance. There is direct relationship between training and performance, which is training increases the performance of employees.

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OBJECTIVE OF THE STUDY

The main objectives of this research are as follows. 1. To know the impact of motivation and training on performance of employees in the Bank 2. To gauge the correlation between training and performance of employees 3. To get the results in meaningful way that can help the organization in improving future performance.

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RESEARCH QUESTION /HYPOTHESIS

Some questions needs to be addressed after this project proposal which includes the following; 1. How effective motivation is to the performance of employees? 2. Is the organization managements interested in motivating their employees? 3. Which type of motivation give more impacts on employee performance? 4. Are the employees satisfied with the motivation facilities in the organization?

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LITERATURE REVIEW

Even though much research have been conducted on the field of financial motivation and many researchers and writers have proposed theories on the concept of financial motivation and its role in enhancing employees performance in an organization, some of these models have been widely used and accepted by todays organizational leaders. In this research proposal, discussion on some of the motivational theories will include Alders (ERG theory), Abraham Maslow's (Need theory), Vrooms (Expectancy theory), Adams (Social equity theory), Herzberg (Two factor theory) and Mac Gregory (theory X and Y). To better understand this discussion a summary of the theories will be presented and an indebt discussion on Maslow and ERG theories on which the research proposal will be based. Alder asserts in his Existence, Relatedness and Growth theory (ERG) commonly known as the ERG theory, explain that there are three basic human needs: Existence, relatedness and growth, which must be meet by an employee to enable him increase performance in an organization. Vroom (1964) proposes that people are motivated by how much they want something and how likely they think they are to get it. He suggested that motivation leads to efforts and the efforts

combined with employees ability together with certain environmental factors which interplay resulting to performance. This performance in turn leads to various outcomes, each of which has an associated value called Valence. Adams (1965) on his part suggests that people are motivated to seek social equity in the rewards they receive for high performance. According to him the outcome from job includes; pay, recognition, promotion, social relationship and intrinsic reward. To get these rewards various inputs need to be employed by the employees to the job such as time, experience, efforts, education and loyalty. He suggested that people tend to view their outcomes and inputs as a ratio and then compare these ratios with others and turn to become motivated if this ratio is high. Herzberg suggested that there are factors in a job which causes satisfaction. These he called intrinsic factors (motivators) and the other factors he referred to as dissatisfies (hygiene factors). According to him if the motivational factors are met, the employee becomes motivated and hence performs higher. Mac Gregory suggested that there exist two sets of employees (lazy and ambitious employees), with lazy employees representing theory X, hard and ambitious workers representing Y. According to him the lazy employees should be motivated to increase performance in an organization. Maslow (1943) suggested that human needs can be classified into five categories and that these categories can be arranged in a hierarchy of importance. These include physiological, security, belongings, esteem and self-actualization needs. According to him a person is motivated first and foremost to satisfy physiological needs. As long as the employees remain unsatisfied, they turned to be motivated only to fulfil them. When physiological needs are satisfied they cease to act as

primary motivational factors and the individual moves up the hierarchy and seek to satisfy security needs. This process continues until finally self-actualization needs are satisfied. According to Maslow the rationale is quite simple because employees who are too hungry or too ill to work will hardly be able to make much a contribution to productivity hence difficulties in meeting organizational goals.

6.0 RESEARCH METHODOLOGY The principal data collection instrument will be structured questionnaire which will be chosen to determine the performance of employees upon motivation and training. The questionnaire will consists of different factors that affect performance. Respondents for the questionnaire will randomly be selected from among answered ones. A sample of about 25 employees from GCB will be taken. Data for this study will be obtained from primary and secondary sources. The secondary data will be gathered from the banks corporate plan and review reports on Human Resource Management. Twenty-five questionnaires will be administered to employees of Ghana Commercial Bank and the Human Resource Manager of the office located at Ridge branch of the bank in Accra, Ghana. Both quantitative and qualitative data will be collected. The qualitative data from secondary sources will be analyzed using content analysis and logical analysis techniques. Quantitative data analysis will be done using Microsoft Excel.

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7.0 SIGNIFICANCE OF THE STUDY This survey will be designed to investigate the motivational factors that influence the employees of Ghana Commercial Bank in their performance. The respondents will be divided into various categories, something that the original Maslow study did not do. As there may be differences between what motivates employees and what employees want over time, it is possible that there may also be differences between categories of employees based on their gender and age.

8.0 SCOPE AND LIMITATION OF THE STUDY The latitude of this research would be evaluating the role of motivation on employees performance in the Ghana Commercial Bank. By using Maslow need theory of motivation as a foundation or basis, the original need factors, which have over the years been modified by other researchers would also be adapted for use in this research. The research would cover the banking sector of the economy which is in great expansion within the country. The respondents in the survey would be ranked as top five factors that would motivate them as future employees as follows: Job Satisfaction, Promotions/Expectations, Recognition, Good Salary and

Organizational/Management styles. The study would be concluded by saying that the factors will reflect the current state of affairs in terms of employees need and especially that of job redesign strategies which could be used to reinforce and motivate employees today. Due to the difficult nature of identifying how and what really will motivate these employees it would be paramount that the organizations management find all means and ways possible to

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understand the motivational factors and training needed to sustain employees for the increase in their performance and general survival of the organization.

9.0 ORGANIZATION OF THE STUDY This work will be organized in five chapters. Chapter one will give an overview of the background of the study, problem statement, purpose of study, key objectives and how the results of this work could be used. Chapter two will examine the relevant theories from a critical analysis point of view and also give some perspective about other empirical works similar or related to this area. It will provide a framework for establishing the importance of the study with other findings. Chapter three provide will the general design and methods or procedures that would be used in the collection and analysis of the data. Chapter four will present the results and discuss the findings of the study. Chapter five will draw conclusions and give the recommendations, limitations of the study and also identify other topics for further studies.

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REFERENCES Allan Byman and Robert G. Bmguess (1999) Qualitative Research Pretence Hall pp 89-94. Greenberg J &Baron A.R (2003) Behaviour in Organisations, Prentice Hall, Vol. 8, pp. 188-215 Herberg, F. Mausner, B &Snyderman, B. (1969) The Motivation to Work, John Wiley and Sons, New York. Kanungo, R.N. (1990) Work Alienation in Developing Countries: Western Models and Eastern Realities, In A.M. Jaeger & R.N. Kunungo (Eds.), Management in Developing Countries. Routledge, London, pp.195-209. Nelson, B. (2001), Motivate Employees with Intangible Benefits, Available at: http:// www.findarticles.com. Young, B.C. (2000), Methods of Motivating: Yesterday and Today Available at: http://acedemic.empria.edu.

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Appendix
Appendix 1 METHODIST UNIVERSITY COLLEGE, GHANA QUESTIONNAIRE Questionnaire for Employees of Ghana Commercial Bank Limited This questionnaire has been designed to solicit information for purely academic purposes. This is to enable . student of Methodist University College, complete his research proposal on the topic; Assessing the Impact of Employee Motivation on Performance: A Case Study of Ghana Commercial Bank Limited. NB. All information given would be treated with utmost confidentiality.

SECTION A BASIC DEMOGRAPHIC DATA (PLEASE TICK WHERE APPROPRIATE) 1. How old are you? (Years) a) 18 25 ( ) d) 46 55 ( ) 2. Gender; b) 26 35 ( ) c) 36 45 ( ) e) 56 59 ( ) a) Male ( ) b) Female ( )
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SECTION B INFORMATION ON MOTIVATION FOR EMPLOYEES 3. What is your position in the Bank? a) Upper level management ( ) level management ( ) 4. How long have you been working with GCB? a) 1 3 years ( ) d) Others. 5. Are you aware of any motivational package in the Bank? a) Yes ( ) b) No ( ) b) 4 5 years ( ) c) 6 9 years ( ) b) Middle level management ( ) c) Lower

6. Have you had any form of motivation since you joined GCB? a) Yes ( ) b) No ( )

7. If you have been with GCB in the last three years, how many times have you had any form of motivation? a) Only once ( ) b) Twice ( )
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c) Several times ( )

d) Never ( )

8. If yes, how has this affect your work performance? Please specify and state at least (two) ............................................................................................................................................................ ................................................................................................................................................. 9. In your opinion, do you think motivation at GCB is planned and systematic? a) Yes ( ) b) No ( ) c) Not sure ( )

10. Are you motivated with the training program of GCB? a) Yes ( ) b) No ( )

11. Has the training given you impact any knowledge and skills? a) Yes ( ) If yes please specify ............................................................................................................................................................ ................................................................................................................................................. 12. In your opinion, has motivation and training had an impact on your work performance in the organization? a) Yes ( ) If yes how? ............................................................................................................................................................ ............................................................................ 13. Do you see yourself working with GCB in the next 5- 10 years?
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b) No ( )

b) No ( )

i) Very likely ( )

ii) Likely ( )

iii) Not likely ( )

iv) Not sure ( )

14. Other Comments

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