INTRINSIC MOTIVATION AND EMPLOYEE PERFORMANCE:

A CASE OF PRIDE MICROFINANCE LTD

FIONA NANYOMBI

2013-M102-20130

Uganda Martyrs University

October 2018
 INTRINSIC MOTIVATION AND EMPLOYEE PERFORMANCE:

A CASE OF PRIDE MICROFINANCE LTD

A Postgraduate Dissertation Submitted to the Faculty of Business Administration and

Management in Partial Fulfillment of the Requirements for the Award of a

Degree of Master of Business Administration of

Uganda Martyrs University

FIONA NANYOMBI

2013-M102-20130

October 2018

i
 DECLARATION
I, FIONA NANYOMBI, do hereby declare that this work entitled “INTRINSIC

MOTIVATION AND EMPLOYEE PERFORMANCE: A CASE OF PRIDE

MICROFINANCE LTD”, is my own original and has never been submitted to any University

or other institution for an ward of any Masters.

Signed: ……………………………… Date: ………………………………

FIONA NANYOMBI

2013-M102-20130

ii
 APPROVAL

This report by FIONA NANYOMBI titled “INTRINSIC MOTIVATION AND

EMPLOYEE PERFORMANCE: A CASE OF PRIDE MICROFINANCE LTD” has

been approved for submission for examination for the award of Degree of Masters of

Business Administration of Uganda Martyrs University with my approval as the university

supervisor

Signed: ……………………………………. Date: ………………………………

……………………………………………

(Research Supervisor)

iii
 DEDICATION

This research is dedicated to my daughter Mary Felicia Serwadda.

iv
 ACKNOWLEDGEMENT

I am grateful to the Almighty God for having enabled me to complete this research work. This

work has not been easy but with his guidance, it has been rendered possible.

I would like to express my sincere appreciation to my supervisor whose patience, guidance and

encouragement made me succeed in producing this work. I am equally grateful to the employees

of Pride Microfinance Ltd and the role played by my lecturers at Uganda Martyrs University

who did what they could to enable me complete my course successfully.

Special thanks to my parents, my colleagues, my friends especially those who encouraged and

pushed me to go on and study. I acknowledge them for the moral and physical support. May the

Almighty God bless all these people.

v
TABLE OF CONTENTS
DECLARATION ............................................................................................................................ ii
APPROVAL .................................................................................................................................. iii
DEDICATION ............................................................................................................................... iv
ACKNOWLEDGEMENT .............................................................................................................. v
TABLE OF CONTENTS ............................................................................................................... vi
LIST OF FIGURES ........................................................................................................................ x
LIST OF TABLES ......................................................................................................................... xi
LIST OF ABBREVIATIONS/ACRONYMS ............................................................................... xii
ABSTRACT ................................................................................................................................. xiii

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

INTRODUCTION......................................................................................................................... 1
1.0 Introduction to the Study .......................................................................................................... 1
1.1 Background to the study ........................................................................................................... 1
1.1.1 Background to the Case Study ............................................................................................... 5
1.2 Problem statement ..................................................................................................................... 5
1.3 Objectives of the study.............................................................................................................. 6
1.3.1 General Objective .................................................................................................................. 6
1.3.2 Research objectives ................................................................................................................ 6
1.4 Research Hypothesis ................................................................................................................. 7
1.5 Scope of the Study .................................................................................................................... 7
1.5.1 Content Scope ........................................................................................................................ 7
1.5.2 Time Scope ............................................................................................................................ 7
1.5.3 Geographical Scope ............................................................................................................... 7
1.6 Significance of the study........................................................................................................... 8
1.7 Justification of the study ........................................................................................................... 8
1.8 Conceptual framework .............................................................................................................. 9
1.9 Definition of key terms ........................................................................................................... 11
1.10 Conclusion ............................................................................................................................ 12

vi
CHAPTER TWO ........................................................................................................................ 13
LITERATURE REVIEW .......................................................................................................... 13
2.0 Introduction ............................................................................................................................. 13
2.1 Theoretical Review ................................................................................................................. 13
2.1.1 The Hertzberg‟s two factor theory of motivation ................................................................ 13
2.1.2 Expectancy theory................................................................................................................ 14
2.2.1 Recognition .......................................................................................................................... 19
2.2.2 Achievement ........................................................................................................................ 21
2.2.3 Responsibility ...................................................................................................................... 22
2.3 Overview on employee performance. ..................................................................................... 22
2.3.1 Timeliness as a measure of employee performance. ........................................................... 24
2.3.2 Efficiency as a measure of employee performance ............................................................. 25
2.3.3 Productivity as a measure of employee performance .......................................................... 26
2.4. Actual Review ........................................................................................................................ 26
2.4.1 Recognition and employee performance ............................................................................. 26
2.4.2. Achievement and employee performance ........................................................................... 30
2.4.3 Responsibility and employee performance .......................................................................... 33
2.5 Conclusion .............................................................................................................................. 35

CHAPTER THREE .................................................................................................................... 36

METHODOLOGY ..................................................................................................................... 36
3.1 Introduction ........................................................................................................................... 36
3.2 Research Design...................................................................................................................... 36
3.3 Area of the Study .................................................................................................................... 37
3.4 Study Population ..................................................................................................................... 37
3.5 sample size .............................................................................................................................. 38
3.6 Sampling techniques and procedures ...................................................................................... 38
3.6.1 Stratified sampling ............................................................................................................... 38
3.7 Data Collection Sources .......................................................................................................... 39
3 .7.1 Primary Sources .................................................................................................................. 39
3.7.2 Secondary Sources ............................................................................................................... 39

vii
3.8 Data Collection Tools ............................................................................................................. 39
3.8.1 Questionnaire ....................................................................................................................... 39
3.8.2 Interview Guide ................................................................................................................... 40
3.9 Quality Control ....................................................................................................................... 40
3.9.1 Validity ................................................................................................................................ 40
3.9.2 Reliability............................................................................................................................. 41
3.10 Measurement of variables ..................................................................................................... 42
3.11 Data management and analysis ............................................................................................. 43
3.11.1 Quantitative Data Analysis ................................................................................................ 43
3.11.2 Qualitative Data Analysis .................................................................................................. 43
3.12 Ethical Considerations .......................................................................................................... 44
3.13 Limitations of the study ........................................................................................................ 45
3.14 Conclusion ............................................................................................................................ 45

CHAPTER FOUR ....................................................................................................................... 46

PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS .................................. 46
4.0 Introduction ............................................................................................................................. 46
4.1 Response rate .......................................................................................................................... 46
4.2 Background of respondents..................................................................................................... 46
4.2.1 Gender of the respondents ................................................................................................... 46
4.2.2 Age of the respondents......................................................................................................... 48
4.2.3 Highest level of education qualification .............................................................................. 49
4.3 Descriptive statistics on intrinsic motivation .......................................................................... 51
4.3.1 Descriptive statistics on recognition .................................................................................... 51
4.3.2 Descriptive statistics on achievement .................................................................................. 54
4.3.3 Descriptive statistics on Responsibility ............................................................................... 57
4.4 Descriptive statistics on employee performance..................................................................... 60
4.5 Correlation analysis ................................................................................................................ 63
4.6 Regression Analysis ................................................................................................................ 66
4.7 Conclusion .............................................................................................................................. 69

viii
CHAPTER FIVE ........................................................................................................................ 70
SUMMARY, CONCLUSION AND RECOMMENDATIONS .............................................. 70
5.0 Introduction ............................................................................................................................. 70
5.1 Summary of the findings ......................................................................................................... 70
5.1.1 Recognition and employee Performance ............................................................................. 70
5.1.2 Achievement and employee Performance. .......................................................................... 70
5.1.3 Responsibility and employee Performance. ......................................................................... 71
5.2 Conclusions ............................................................................................................................. 72
5.2.1 Recognition and employee Performance. ............................................................................ 72
5.1.3 Achievement and employee Performance. .......................................................................... 72
5.1.4 Responsibility and employee Performance. ......................................................................... 72
5.3 Recommendations ................................................................................................................... 73
5.3.1 Recognition and employee Performance ............................................................................. 73
5.3.2 Achievement and employee Performance ........................................................................... 73
5.3.3 Responsibility and employee Performance .......................................................................... 73
5.8 Suggestions for Further Research ........................................................................................... 74
References ..................................................................................................................................... 76
Appendix I: Questionnaire ............................................................................................................ 83
Appendix 2: Interview guide for Human Resource officer, Managers and Supervisors .............. 86
Appendix 3: Sample Size Determination ...................................................................................... 87

ix
 LIST OF FIGURES
Figure 1: Conceptual framework .................................................................................................. 10

Figure 2: Gender of respondent .................................................................................................... 47

Figure 3: Age of the respondents .................................................................................................. 49

Figure 4: Level of education for the respondent ........................................................................... 50

x
 LIST OF TABLES
Table 3.1: Population of the study ................................................................................................ 37

Table 3. 2: Sample size and selection ........................................................................................... 38

Table 3.3: Validity findings .......................................................................................................... 41

Table 3. 4 : Reliability findings .................................................................................................... 42

Table 4.1: Gender of the respondents ........................................................................................... 47

Table 4.2: Age of respondent ........................................................................................................ 48

Table 4.3: Highest level of education of the respondent .............................................................. 49

Table 4. 4: Descriptive statistics for Recognition ......................................................................... 51

Table 4. 5: Descriptive statistics for Achievement ....................................................................... 54

Table 4. 6: Descriptive statistics for Responsibility ..................................................................... 57

Table 4. 7: Descriptive statistics for Employee Performance ....................................................... 60

Table 4.8: Correlation results for Recognition and Employee Performance ................................ 63

Table 4. 9: Correlation results for Achievement and Employee Performance ............................. 64

Table 4. 10 Correlation results for Responsibility and Employee Performance ........................... 65

Table 4. 11: Model Summary ....................................................................................................... 66

Table 4. 13: coefficients for the regression equation .................................................................... 67

xi
 LIST OF ABBREVIATIONS/ACRONYMS

HR: Human Resource

MDI: Microfinance Deposit-taking Institution

MFIs: Micro-Finance Institutions

PMFL: Pride Microfinance Limited

SACCOs: Savings and Credit Co operatives

xii
 ABSTRACT
The study investigated the effect of intrinsic motivation on employee performance of an
organization using a case study of Pride Microfinance Ltd. The study was guided by the
following objectives: To assess the effect of recognition on employee performance in Pride
Microfinance Limited, To assess the effect of achievement on employee performance in Pride
Microfinance Limited and To assess the effect of responsibility on employee performance in
Pride Microfinance Limited. The study used a survey design considering both qualitative and
quantitative approaches. The study used a sample size of 48 respondents from a study population
of 55 employees of the Pride Microfinance Bank. Questionnaires and interview guide were used
to collect data from the respondents. Quantitative data was analysed using SPSS version 16 and
mainly consisted of descriptive statistics and inferential statistics (Spearman correlation and
regression analysis). Qualitative data from interviews was reviewed thoroughly, sorted and
classified into themes and categories which were presented with selected direct quotations from
the participants. From the regression analysis, recognition was found to have a positive
significant effect on employee performance by 0.339(33.9%) which was statistically significant
as seen from (0.029<0.05). From the correlation analysis, the study revealed that there is a
positive significant relationship between recognition and employee Performance (r value of
0.579, P value of 0.00). Achievement was found to have a positive significant effect on
employee performance by 0.170(17.0%) as seen from (p-value of 0.014<0.05) and Pearson
correlation analysis, (r value of 0.553, P value of 0.00). It was also revealed that responsibility
had a positive significant effect on employee performance by 0.321(17.0%) which was
statistically significant as seen from (0.021<0.05). From the correlation results, the study
revealed that there was a positive significant relationship between responsibility and employee
Performance (r value of 0. 545, P value of 0.00). It was concluded from the study that good
performing employees are recognized and appreciated according to their expectations. This
increases their willingness to put effort into their tasks. It was also revealed that the presence of
trust and autonomy at work develops the employees‟ need for achievement and develops a
positive behaviour. More so, employees normally feel a sense of achievement after completing a
particular goals and tasks. It was also revealed that the employees in the bank are constantly
reminded of their responsibilities and duty, are aware of the activities, skills and abilities
required in performing a given job. Finally it was recommended that the bank should start
pinning the employees of the week on notice boards so that the other employees can be
motivated to work harder. It was also recommended that the organization management and the
employees should appreciate the influence of the intrinsic factors such as achievement on
employee motivation levels. Further It is also recommended that the bank should emphasize
stipulating clear expectations about what is expected of the employees so as to give a sense of
responsibility and commitment to the employee which in turn leads to motivation and job
satisfaction.

xiii
 CHAPTER ONE

INTRODUCTION

1.0 Introduction to the Study

This study focused on the effect of intrinsic motivation on employee performance of an

organization using a case study of Pride Microfinance Ltd. According to Fisher, (2012)

organizations can achieve their goals and objectives, organizations develop strategies to compete

in highly competitive markets and to increase their performance through a highly motivated

human resource. Nevertheless, Amabile (2013) noted that just a few organizations consider the

intrinsic motivation as a key for motivating human capital as being their main asset, capable of

leading them to success or if not managed properly can lead to failure of the organization and

high staff turnover. Therefore, this study added to the existing literature by showing the

significance of intrinsic motivation in organizations that would best apply in their business

setting.

This chapter covered the background to the study, the statement of the problem, the purpose, and

the objectives of the study, the research hypothesis, scope of the study, the significance and

justification of the study and definition of terms and concepts of the study

1.1 Background to the study

Globally, most managers would agree that motivated, productive employees are crucial for

organizational success, regardless of company size, industry, or corporate strategy. The question

is how to motivate them. Some employers often promote the link between intrinsic motivation to

employee performance as a means of tackling workplace inefficiencies and raising productivity

(Lazear, 2010). By motivating individual workers to be more efficient at work and increasing

their attachment and identification with the interests of the organisation, incentive schemes are

1
expected to improve interpersonal relationships, raise job satisfaction, lower absenteeism and

lower turnover rates, all of which produce lasting effects on the organisations performance

(Shearer, 2014). To a large extent, the debate on the importance of intrinsic motivation in

motivating workers continues today

More so, in many African developing countries, the success and growth of any organization

depends on its human resources (Lazear, 2010). Employee‟s intention to leave is one of the

intense challenges for any organization which have long lasting effects. Employee‟s turnover is a

serious issue especially in the field of HR management. Over the last two decades, the issue of

worker turnover still exists among the all other managerial issues of the organizations in the

entire world. The rate of workforce turnover is very high even in industrially developed nations.

Achievement of higher levels of performance by the employees is associated with their

satisfaction regarding working environment of the organization. The organization should follow

the vibrant policies to reduce the gap between top level management and middle level

management to resolve the issue of worker turnover in organizations (Amabile, 2013). In many

developing as well as developed countries, employee‟s intention to quit is giving sleepless nights

to HR managers and organizations.

Motivation can thus be further dissected by distinguishing between intrinsic and extrinsic

motivation. The general distinction made between intrinsic and extrinsic motivation is that while

intrinsic motivation is driven by forces from within oneself, extrinsic motivation is driven by

outside forces (Giancola, 2014). In connection to the work environment an employee would be

intrinsically motivated by performing a task depending on the extent that the particular task is

“interesting, challenging, and has personal meaning based on the satisfaction they receive from

performing the activity itself” (Giancola, 2014). Amabile (2013) noted that an intrinsically

2
motivated employee on an individual‟s perception of a task and the reasons he or she is

performing it, and she states “individuals are intrinsically motivated when they seek enjoyment,

interest, satisfaction of curiosity, self-expression, or personal challenge in the work (Amabile,

2013). Further, George and Jones (2012) mention that employees who are intrinsically motivated

state that their work gives them a sense of satisfaction, accomplishment, and achievement

While motivation changes are shifting from extrinsic motivation or to intrinsic motivation-based,

little appreciation and use in developing countries like Uganda has been realized. Indeed, fewer

organisations are cited in literature with such practices despite the fact that few entities are

starting to appreciate intrinsic motivation (Breaugh 2011).

Employee Performance is an evaluation of the results of a person‟s behavior. It involves

determining how well or poorly a person has accomplished a task or done a job. A good

employee performance is necessary for the organisation, since an organization‟s success is

dependent upon the employee‟s creativity, innovation and commitment (Ramlall, 2008). Good

employee performances and productivity growth are also important in stabilizing the economy;

by means of improved living standards, higher wages, an increase in goods available for

consumption, etc (Griffin et al., 1981). Griffin et al. also argue that therefore research of

individual employee performance is important to society in general.

According to Hunter and Hunter (2014) crucial in a high job performance is the ability of the

employee himself. The employee must be able to deliver good results and have a high

productivity. Hunter and Hunter (2014) also argue that this is something the organisation can

know at forehand; they can select employees with the required abilities or they can recruit those

employees themselves. Of course the latter is more time consuming, but can obtain better results

3
in the end. One would expect a highly motivated employee would deliver high-quality service

than those poorly motivated. All things however, are not always equal because so many factors

affect performance factors such as personality, the difficulty of the task, availability of resources

and working conditions.

According to Herzberg (1959) performance is: let an employee do what I want him to do. This

implies that the organization‟s hierarchy and task distribution are also critical for a good

employee performance. Lindner (1998) adds to this statement by arguing that employee

performance can be perceived as “obtaining external funds”. According to Vroom (2014) an

employee‟s performance is based on individual factors, namely: personality, skills, knowledge,

experience and abilities.

Many researchers (e.g. Hunter & Hunter, 2014) agree that employee performance is divided in

those factors). Some researchers even argue that a person‟s personality has a more specific role

in job performance (Barrick & Mount, 2011). However, according to various researchers, it is

not what performance exactly means, but how it is composed and how it is measured (Furnham,

Forde & Ferrari, 1998; To attain high levels of performance as an employee and manager, one

must be sure that the employees have the ability, motivation and the resources to meet

objectives. When performance is not at the standard level or above, one must determine which

performance factor needs to be improved and improve it (Lussier, 2005)

Breaugh (2011) states in his research that there are different performance dimensions on which

employees are measured, named: quality, quantity, dependability and job knowledge. This is in

addition to dimensions such as Timeliness, Efficiency and Productivity

4
1.1.1 Background to the Case Study

Pride Microfinance Limited (PMFL) is a Microfinance Deposit-taking Institution (MDI) in

Uganda. It is licensed by Bank of Uganda, the Central Bank and national banking regulator

(Bank of Uganda, March 2014). It provides financial services to that segment of the Ugandan

population who are not served or are unable to access financial services through the Ugandan

commercial banks. To provide these services PMFL needs motivated employees. This often

results into aiming at reducing labour turnover and improved employee performance as per the

set targets. The organization has a very diverse workforce and views employee motivation as

very critical in order to attain maximum performance. Therefore, it is against this background

that the researcher was prompted to assess the effect of intrinsic motivation on employee

performance of an organization using a case study of Pride Microfinance Ltd

1.2 Problem statement

The success or failure of any organisation depends greatly on the type of human resources it has

(Mabonga, 2010). Human resources translate all other resources in an organisation into visible

products. Bearing that in mind it is important that organisations pay extra attention to their

workers in order to attain optimum efficiency and effectiveness at the workplace. Many

managers of organisations are often faced with the challenge of improving employee motivation.

Therefore, introducing intrinsic motivation schemes to employees may improve on their

satisfaction as this makes them feel part of the bigger team contributing to the organisations like

Pride Microfinance Ltd. Despite the organizations having a fully-fledged human resource

department that have been coordinating the human resource issues, a lot of human resource

problems have emanated that have ultimately manifested in unsatisfactory human resources

performance. These performance failures are both on the side of the organisation and workers

5
who constantly should work together (Storey, 2011). Late coming, poor time management and

the failure to meet deadlines for the preparation of important working documents has become a

common practice. This has been observed by the missing documents during assessment, and

attendance register carried out every morning that shows absenteeism and late coming. In some

institutions, the staff appraisal exercise has also shown that duties and responsibilities are not

being adequately carried out, with low scores observed in many cases (Shearer, 2014). This is

revealed through the appraisal files that are filled annually and kept in the Human resource

office. Some line managers have shown great weakness in the supervision of their subordinates,

with the appraisal assessment not carried out. This is shown by the missing appraisal files of

some workers, who are not appraised as demanded. This is because, many of the employees

often feel dissatisfied with the way they are motivated which reduces their productivity.

Giancola, (2014) noted that some employees leave the organisation for other better jobs hence

increased employee turnover while to some extent some employees feel they are not motivated to

work effectively. Therefore, this study intended to establish whether the way intrinsic

motivation is done by organizations has any effect on employee performance .

1.3 Objectives of the study

1.3.1 General Objective

The main purpose of this study was to examine the effect of intrinsic motivation on employee

performance.

1.3.2 Research objectives

1. To assess the effect of recognition on employee performance in Pride Microfinance

Limited.

6
 2. To assess the effect of achievement on employee performance in Pride Microfinance

Limited.

3. To assess the effect of responsibility on employee performance in Pride Microfinance

Limited

1.4 Research Hypothesis

1. Recognition has a significant effect on employee performance

2. Achievement has a significant effect on employee performance

3. Responsibility has a significant effect on employee performance

1.5 Scope of the Study

1.5.1 Content Scope

The study considered intrinsic motivation as the independent variable and employee performance

as dependent variable. Intrinsic motivation was measured by recognition, achievement and

responsibility. Employee performance was measured by timeliness, efficiency and productivity

of the employees.

1.5.2 Time Scope

This study considered a time period from the year 2012 to 2017. For the last five years, Pride

Microfinance Ltd has been implementing various motivational strategies in a bid to improve the

performance of its employees. Therefore, this period was used because of the availability of good

quality and reliable data.

1.5.3 Geographical Scope

Geographically, the research was carried out at Pride Microfinance head office which is located

in Victoria Business Park, Bukoto; a northeastern neighborhood in Nakawa Division (an

administrative area within Kampala, Uganda's capital and largest city). This location is situated

7
approximately 6.5 kilometres by road, outside the city's central business district Kampala. The

head office was used since it‟s the center of managing the human resource of the organization.

1.6 Significance of the study

This study may be beneficial to organizational strategists through providing them with data and

evidence that they would use in their rationale for making the employee motivation decision.

This would enable them to make informed decisions on the how to improve their employee

performance through use of motivation strategies.

The study may also help the companies to adopt the most suitable models of intrinsic motivation

that would best apply in their business setting.

The study will further aid the researcher to expand his understanding of intrinsic motivation in

relation to employee performance. The researcher will be able to gain skills and knowledge on

research most especially the practical aspect of field work and data collection.

The findings of this study would benefit scholars as it is a contribution to the body of knowledge

in this broad and yet not fully exploited area of human resource management. This would help to

enhance understanding and development of relevant theories as well as extensive areas of

interest regarding motivation.

The findings will also act as a stimulant to other researchers who may be interested in a similar

topic for research purposes.

1.7 Justification of the study

Employee performance is mainly influenced by their motivation packages most of which are

related to intrinsic motivation. When an employee is well motivated, they tend to exhibit higher

8
performance levels than those who receive lower motivation. Nonetheless, this is not in any way

a guarantee to managers that whenever ones is motivated is good, they will perform well. Some

employees are not influenced by their motivation packages but by other incentives for instance;

recognition, Achievement, Responsibility, personal growth, and work itself among others. In

Pride Microfinance most employees receive intrinsic motivation incentives however some staff

have left for other jobs complaining that they “are not satisfied. Therefore, the study proposed

that probably by introducing intrinsic motivation packages pay, this would help improve on the

performance of employees thus the need for this study.

1.8 Conceptual framework

A conceptual framework proposes or hypothesizes and tests certain connections which enhance

the comprehension of a circumstance (Sekeran, 2003). The conceptual framework depicts the

connection between the independent factors and the dependent variable. Imran (2017) pointed

out that Recognition, Achievement and responsibility are great intrinsic motivating factors that

can lead to improved worker output. In a similar vein, Ottemann, & Luthans, (2015) argued that

recognition is the manager secret tool for motivation, some individuals when recognized do

much more than if they were financially rewarded. More so, George and Jones (2012) noted that

employees who are intrinsically motivated state that their work gives them a sense of

accomplishment, and achievement.

9
Figure 1: Conceptual framework

Independent Variable Dependent Variable

Intrinsic motivation Employee performance

 Recognition  Timeliness
 Achievement  Efficiency
 Responsibility  Productivity

Moderating variables
 Organization policies
 Government policies

Source: Adopted from Imran (2017) and modified by the researcher

The study was guided by the conceptual framework above. The conceptual framework describes

the relationship between the independent variables and the dependent variables. In this

conceptual framework, on one hand, intrinsic motivation formed the independent variable

measured by Recognition, Achievement and Responsibility. The availability of such intrinsic

motivation is assumed to influence employee performance exhibited in form of Timeliness,

Efficiency and Productivity. However, there are moderating variables that affect the relationship

between the variables and these are Organization policies and Government policies.

Hussain, (2011) argues that organization policies and Government policies can have significant

effect on Human Resource management. Organizational policies; clear tasks and rules assigned

by organizational policies strengthen the employees‟ satisfaction. This affects the relationship

between intrinsic motivation and employee performance. This is because rigid rules, policies

10
governing HRM can cause the organization to have, for example poor intrinsic motivational

packages. Government policies impact human resource (HR) management on a national level,

although other organizations may sometimes be exempt depending on their size. In addition to

legislation, Storey, (2011) notes that each country has its own employment law regulations,

affecting such topics as records retention, labor relations, motivation practices employee criminal

records checks and even the mileage reimbursement requirements for employees. Consequently,

HR professionals must be well versed in the ever-changing arena of employment law to

minimize the organization's liability in all aspects of HR operations.

1.9 Definition of key terms

Motivation: Motivation refers to reasons that underlie behavior that is characterized by

willingness and volition. Motivation involves a constellation of closely related beliefs,

perceptions, values, interests, and actions.

Intrinsic motivation: Intrinsic motivation is driven by forces from within oneself. It involves any

activity or action being performed for the inner benefit of one‟s self. In other words, intrinsic

motivation is what people will do without external inducement such as hunger, a sense of duty,

altruism, and a desire to feel appreciated

Recognition: Recognition is a way of motivating employees involves acknowledgement,

approval and genuine appreciation. This recognition can be set up on a formal basis or informally

used by a supervisor/team leader in managing individual employee or team behavior.

Achievement; Achievement means something that has been accomplished and shows the efforts

putting in it. Achievement is the positive result while the staff finishing particular goal in a task

or being beneficial to the organization that his or her effort will be praised or certain status will

be built by the organization and themselves.

11
Responsibility; these are clear expectations of about what is expected by the employer from his

employees. These include work allocated which includes the tasks, the working hours of the

employees

Employee performance; this is an evaluation of the results of a person‟s behavior. It involves

determining how well or poorly a person has accomplished a task or done a job. In other words,

performance is about behavior or what employees do, and not what employees produce or the

outcomes of their work. It involves timeliness, efficiency and productivity of the employees.

1.10 Conclusion
This chapter has provided a focus into the background of the problem, the problem statement, the

purpose of the study, the research hypothesis, and the importance of the study, the scope of the

study and the definition of terms. In the next chapter two, the researcher reviewed the literature

based on the effect of recognition, Achievement, Responsibility on employee performance of an

organization.

12
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter included the review of the related literature on the effect of intrinsic motivation on

employee performance of an organization using a case study of pride microfinance ltd. The

review then focused on the major themes of the study that is; the effect of recognition,

Achievement and Responsibility on performance of employees in Pride Microfinance Limited

2.1 Theoretical Review

2.1.1 The Hertzberg’s two factor theory of motivation

In 1959, Fredrick Herzberg, a behavioral scientist proposed a two factor theory or the motivator

– hygiene theory. According to Herzberg there are some job factors that result in satisfaction

while there are others job factors that prevent dissatisfaction. They are divided into two the

motivation factors and the hygiene factors. According to Fredrick Herzberg the motivating

factors are the six job content factors that include achievement, recognition, work itself,

responsibility, advancement and the possibility of growth. Hygiene factors are the job context

factors which include company policy, supervision, relationship with supervision, work

conditions, relationship with peers, salary personal life ,relationship with subordinates, status

and job security (Ruthankoon, 2003).

In Herzberg‟s motivation-hygiene theory Herzberg categorized factors into two groups, factors

that contribute satisfaction and factors that contribute dissatisfaction at work. Factors that

contribute satisfaction are called motivation factors and factors that contribute dissatisfaction are

hygiene factors. According to Herzberg factors that lead to job dissatisfaction are different than

13
factors that lead job satisfaction. Because of that, it follows that these two feelings are not

opposites for each other. In other words hygiene factors cannot distribute job satisfaction and

motivation factors cannot lead to job dissatisfaction. Hygiene factors include supervision,

interpersonal relationship, salary and status. Motivation factors consist of achievement,

recognition, the work itself, responsibility and growth (Herzberg 1968).

According to theory motivation factors are a source of motivation. Besides, theory hypothesis

that individual cannot be motivated through hygiene factors for example salary. However

Herzberg‟s theory hypothesis hygiene factors cannot motivate individuals. Because of that there

is no such a thing as extrinsic motivation according to Herzberg. Indeed Herzberg (1968) has

stated that re-ward provider is motivated to get a reward target to do something but the target

itself is not, even though he or she would do the task.

The relevance of this theory is that leaders or managers of institutions such as Pride

Microfinance should be aware of the distinct issues workers need in their work in order to boost

performance. For example, they need to know that employees need to feel that they are

recognized by their superiors and the organisation for which they work. More so, workers need

to feel their job helps them to achieve, their aspirations. This in the end makes them feel a new

energy to work and meet organizational objectives. This study sought to determine these internal

factors of motivation that are used by organizations and how they can affect the performance of

employees.

2.1.2 Expectancy theory

The expectancy theory, in contrary to need theory, is a process related theory that focuses on

different employee perceptions and thoughts and concerns how employees choose among

14
alternative behaviors and levels of effort (Purvis et al., 2015, George & Jones, 2012). The theory

puts particular focus on employees‟ personal assessments of the environment and actions as a

consequence of their expectations. The theory proposes two fundamental issues; the first is that

regardless of the different available outcomes, an employee will only be motivated to contribute

his or her inputs to the organization if they believe that the result will achieve a particular level

of performance (George & Jones, 2012).

In other words, if employees do not believe that they are able to perform at a certain level, the

motivation to perform the given task will not be there. The second issue is that employees will

only be motivated to perform at a certain level, if performing at this level will lead to desired

outcomes. Schedlitzki and Edwards (2014) link the path-goal theory to the assumptions of the

expectancy theory and state that employees are more likely to perform well if they are confident

that they are capable of executing a task, that they will achieve the outcome that is expected and

that they will receive the outcome that is most valued by them. The expectancy theory explains

that an employee will only be motivated to contribute and put effort into a task when the

outcome of the two key factors is positive (George & Jones, 2012). This implies that the more

positive outcomes are perceived to be linked with a particular action, the more willing an

employee will be to perform this particular action ( Lin, 2007).

Expectancy theory defines three main factors that determine the work motivation of an

employee: valence, instrumentality, and expectancy (Estes & Polnick, 2012). The first factor,

valence, refers to the value that a particular outcome has to an employee, and the desire to attain

it (Estes & Polnick, 2012). An outcome is positively valent to an employee if they prefer

attaining the particular outcome over not attaining it, whereas an employee would prefer to avoid

an outcome that is negatively valent (Estes & Polnick, 2012).

15
Expectancy theory further proposes that outcomes should be linked to desired organizational

behaviors or to levels of job performance (George & Jones, 2012). This related to

instrumentality, the second factor of expectancy theory, which is the employee‟s perception and

belief that first level outcomes will lead to second level outcomes (Vroom, 1964; Estes &

Polnick, 2012). Instrumentality can also be described as an employee‟s perception of the

probability of performing successfully if they provide their effort, development, and implement

creativity and innovation in their work (Purvis et al., 2015).

Occasionally, despite that an employee perceives that a highly valent outcome will result directly

from job performance, this employee can remain unmotivated to perform at high levels (George

& Jones, 2012,). This is where the third factor of the expectancy theory, expectancy, needs to be

considered. This belief is commonly rooted in the individual employee‟s past experiences, self

efficacy, and how difficult the performance standard or goal is perceived to be. Expectancy thus

explains that employees will be motivated to perform at desired levels only if they believe that

they are able to do so, meaning that if employees believe that they will perform at a high level

when they work hard, their expectancy will be high (George & Jones, 2012)

In relevance to this study, Understanding the three factors in expectancy theory; valence,

instrumentality, and expectancy, provides an insight into the nature and cause of employee

participation in pursuing desired organizational outcomes (Purvis et al., 2015). Whereas the three

perceptions can influence an employee‟s motivation individually, these perceptions can have a

powerful effect on motivation if they are combined. The first condition is that valence must be

high; employees must desire the outcomes that the organization has to offer (George & Jones,

2012). The second condition is that instrumentality must be high, meaning that the employee

perceives that he or she must perform at a high level in order to obtain the outcomes (George &

16
Jones, 2012). The third condition is that expectancy must be high, implying that employees have

to think that trying hard and putting in the effort will lead to high level performance (George &

Jones, 2012). Expectancy theory thus suggests that if only one of these three conditions is not

met, motivation will not be there. All in all, employees must believe that performing certain

behaviors at a high level will result in obtaining outcomes, positive instrumentality, he or she

must also perceive that the desired outcomes will be received, positively valent outcomes, and

that he or she can actually perform at high levels if he or she works hard and puts in the effort,

which leads to high expectancy (George & Jones, 2012).

2.2 Overview on motivation

Motivation refers to reasons that underlie behavior that is characterized by willingness and

volition. Intrinsic motivation is animated by personal enjoyment, interest, or pleasure, whereas

extrinsic motivation is governed by reinforcement contingencies. Motivation involves a

constellation of closely related beliefs, perceptions, values, interests, and actions. Motivation

within individuals tends to vary across subject areas, and this domain specificity increases with

age (Giancola, 2014)

Employee motivation is the level of energy, commitment, and creativity that a company's

workers bring to their jobs. Whether the economy is growing or shrinking, finding ways to

motivate employees is always a management concern. Competing theories stress either

incentives or employee involvement (empowerment). Employee motivation can sometimes be

particularly problematic for small businesses. The owner has often spent years building a

company hands-on and therefore finds it difficult to delegate meaningful responsibilities to

others. But entrepreneurs should be mindful of such pitfalls: the effects of low employee

17
motivation on small businesses can be harmful. Such problems include complacency, disinterest,

even widespread discouragement (Ottemann, & Luthans, 2015). Such attitudes can cumulate into

crises. A smoothly working and motivated work force also frees the owner from day-to-day

chores for thinking of long-term development. Furthermore, tangible and emotional reward can

mean retention of desirable employees. People thrive in creative work environments and want to

make a difference. Ideally the work result itself will give them a feeling of accomplishment, but

well-structured reward and recognition programs can underline this consequence (Giancola,

2014).

There are two types of motivation, Intrinsic and Extrinsic motivation. Some people respond best

to intrinsic which means "from within" and will meet any obligation of an area of their passion.

Quite the reverse, others will respond better to extrinsic motivation which, in their world,

provides that difficult tasks can be dealt with provided there is a reward upon completion of that

task. Intrinsic motivation means that the individual's motivational stimuli are coming from within

(Voss et al, 2012). The individual has the desire to perform a specific task, because its results are

in accordance with his belief system or fulfills a desire and therefore importance is attached to it.

Extrinsic motivation means that the individual's motivational stimuli are coming from outside. In

other words, our desires to perform a task are controlled by an outside source. Note that even

though the stimuli are coming from outside, the result of performing the task will still be

rewarding for the individual performing the task (Giancola, 2014). Extrinsic motivation is

external in nature. The most well-known and the most debated motivation is money. In this study

intrinsic motivation was considered through recognition, achievement and responsibility.

18
2.2.1 Recognition

Employee recognition is the acknowledgement of an individual or team's behavior, effort and

accomplishments that support the organization's goals and values. Recognition is a way of

motivating employees involves acknowledgement, approval and genuine appreciation.

Recognition is not one-size-fits all. Thought needs to go into what would be appreciated by the

person being recognized (Hussain, 2011). This recognition can be set up on a formal basis or

informally used by a supervisor/team leader in managing individual employee or team behavior.

Recognition is the identification or acknowledgement given for something. Employees must be

recognized and rewarded for their good work and contribution to the organization. While human

resources output can be arrayed on a continuum from relatively pure product deliveries (e.g.

employee handbook) on the one end and pure service deliveries (e.g. leadership training) on the

other one of the most central tasks within the human resource function deals with the

development of effective and efficient compensation and recognition programs. This can be

attributed to the fact that recognition systems are an essential tool to integrate individual efforts

with strategic business objectives by encouraging employees to do the right things (Smith 2013).

To achieve these managers must understand the psychology of praising others for their good

work, to apply the principles of employee recognition himself and to encourage others to initiate

it in their working relationships.

In other words, recognition systems are a powerful means of focusing attention within an

organization. Appreciation is a fundamental human need. Employees respond to appreciation

expressed through recognition of their good work because it confirms their work is valued. When

employees and their work are valued, their satisfaction and productivity rises, and they are

motivated to maintain or improve their good work (Rosha, 2005).

19
Employees like to be appreciated and recognized for their work. People like to be involved,

consulted and given an opportunity to offer suggestions. In one aerospace missile plant,

increased morale and productivity, as well as greatly reduced turnover and absenteeism resulted

from the simple technique of having all employees‟ names on placards at their workstations and

having each program group work in an area in which machines and equipment were painted a

different color. According to Wancevick (2014), giving people recognition is key to motivation.

The types of Employee Recognition include formal and informal recognition. Formal

Recognition involves a structured, scheduled activities or events with specific criteria, which are

used to recognize employee contributions and accomplishments. Informal Recognition involves

acknowledgment of day-to-day accomplishments in the workplace through gestures of

appreciation, communication and/or feedback. This type of recognition provides the foundation

for formal recognition activities and it also has a greater impact and affects an employee‟s

identification with an organization. Recognition programs are most effective when they consist

of both formal and informal components

Mullins, (1996) noted that recognition appeals to the need of affiliation and acceptance and it

gives people a sense of accomplishment. But encouraging participation and recognition should

not mean that managers weaken their position. Although they encourage participation of

subordinate on matters with which the latter can help and although they listen carefully on

matters requiring their decisions, they must decide themselves. It can be noted that any word or

deed towards making someone feel appreciated and valued for who they are and recognized for

what they do. A range of formal and informal practices in the workplace that support

organizational values, goals, objectives and priorities through positive reinforcement of desired

behaviours and performance

20
2.2.2 Achievement

Achievement means something that has been accomplished and shows the efforts putting in it.

Achievement is the positive result while the staff finishing particular goal in a task or being

beneficial to the organization that his or her effort will be praised or certain status will be built by

the organization and themselves. The link between performance and motivation is a positive one;

increased motivation results in more effort and improved performance (Voss et al, 2012).

However, it can be argued that while higher motivation will produce better performance,

improvements in performance will increase motivation due to resulting sense of achievement.

According to Amabile (2013), employees are said to accomplish the most when they a need for

high achievement. Employees with the strong need for achievement tend to set goals that are

moderately difficult, to set out feedback on their performance, and to generally preoccupy with

accomplishment. Employees differ in the extent to which they experience need for achievement

and power

Recognizing employee achievement in wellness (or anything else, for that matter) is a great way

to encourage even more achievement. Achievement drives employees to strive for more

progress. It reinforces the positive steps they‟ve taken so they want to take more. Recognition

simply helps your employees feel good about what they‟re doing. Employees who feel

appreciated and noticed for the achievements that they do will have more positive emotions in

regards to the human resource management programs of the organization. These positive feelings

translate to a positive performance.

21
2.2.3 Responsibility

These are clear expectations of about what is expected by the employer from his employees.

These include work allocated which includes the tasks, the working hours of the employees.

Hussain, (2011) points out that within the workplace it is possible for a blurring of roles and

responsibility. This is true for both business partners and employees, and such as a situation is

likely to lead to chaos and a lack of accountability. When everyone understands what other team

members expect of them, then it is much easier to meet job description requirements.

Admittedly, there are a myriad of roles and responsibilities for employees and the kind of

responsibilities or tasks allocated affect the performance of these employees. Lane et. al, (2010)

argued that the work allocated which includes the tasks, the working hours or even the workplace

environment are affecting the degree of employee satisfaction as the staff can complete the task

requirement properly with reasonable working hours under certain supports in the environment

help them to build up the job success and motivate staff to take the next challenge in work

Lippo (1984) notes that motivation is a managerial responsibility for eliciting what employees

expect the organization to supply them with and at the same time the responsibility for eliciting

certain types of behavior from the employees. Managers motivate by providing an environment

for employees to produce to their full capacity. As a number of motivational researchers have

pointed out that wants vary with people and situations.

2.3 Overview on employee performance.

Employee performance refers to the job related activities expected of a worker and how well

those activities were executed. Many business personnel directors assess the employee

performance of each staff member on an annual or quarterly basis in order to help them identify

suggested areas for improvement. There is no general, overarching theory about employee

22
performance (Eppler, 2003). The human resource is critical and difficult to manage. It is because

human behaviour is highly unpredictable. It differs not only from individual to individual but

often on the part of same individual at different points of time. In spite of biological and cultural

similarities, human beings not only differ in their appearance but also in their capabilities based

on their background, training and experience. Human resource or a person at work is the most

important component of the undertaking. Management cannot afford to ignore human resource at

any cost. Management is the process of efficiently getting activities completed with and through

other people (Voss et al, 2012). The management process includes planning, organizing, leading

and controlling activities those take place to accomplish objective.

Every organization has been established with certain objectives to achieve. These objectives can

be achieved by utilizing the resources like men, machines, materials and money. All these

resources are important but out of these the manpower is the most important. It plays an

important role in performing tasks for accomplishing the goals. The question arises that how

these resources are utilizes by manpower. Further, the business environment is changing

drastically. The environmental factors are uncontrollable. These are beyond control of

management of the firms. One has to adjust with the external factors to do the business in the

market. Every environmental factor like social, cultural, legal, political, economic, technology

and competition gets changed very fast. For effective working the knowledge of these factors is

must otherwise the plan will misfire (Voss et al 2012). In present situation it is difficult to predict

about anything. It is uncertain to say that what will happen tomorrow. Again the need for highly

skilled and dedicated manpower is felt who can give the best output.

Employees are performing different jobs in an organization depending upon the nature of the

organization. They mainly perform tasks like production, storage, manufacturing, transportation,

23
marketing, purchasing, distribution, promotion of business, finance and accounting, human

resource, research and public relations. All these activities are inter-related to achieve the targets.

These are to be performed by the employees properly so they can give their best output at the

job. This will have great impact on the total production, sales, profit, progress and market

position of the company in the market. Various factors like skills, training, motivation,

dedication, welfare, management policies, fringe benefits, salary and packages, promotion,

communication etc. are responsible to encourage the people to work sincerely and give their best

output. Hussain, (2011) argued that the importance of employees‟ performance must be

understood by the management and sincere efforts must be put in that direction. The

management of the company taking timely steps in that direction will be in position to develop

and motivate the people to do so. Finally the company may take the lead the market and grab the

opportunities available in the market. The effectiveness with which organisations manage,

develop and stimulate their employees is an important cornerstone for how organisations perform

(Voss et al, 2012). Because of this, people management has a significant impact on performance.

Performance can be traced back to the behaviour of people on the shop floor. Employees work in

a certain way or behave in a way that contributes to (the goals of) the organisation. In this study,

employee motivation was measured through timeliness, efficiency, and productivity.

2.3.1 Timeliness as a measure of employee performance.

Timeliness involves how fast work is performed is another performance indicator that should be

used with caution. In field service, the average customer‟s downtime is a good indicator of

timeliness. Bouzeghoub et al, (2004), uses the term “timeliness” for the frequency of change and

currency for the age of information. Eppler, (2003) uses “timeliness” for the ability of the

employees to deliver services in time

24
According to Voss et al (2012), strong time management capabilities can empower the

organization to make service delivery improvements and ensure effective service system

performance. Customers normally expect the organization to help them with their problems and

deliver products and services that meet their needs in time. This implies that without a strong

timeliness strategy, it‟s easy to overpromise and under-deliver. Timeliness addresses how

quickly, when, or by what date the employee or work unit produced the work. An organization

needs to make sure to include timeliness measures when applicable; otherwise, it is implied that

the element must always be done and there is no margin for error.

2.3.2 Efficiency as a measure of employee performance

Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money,

and time in doing something or in producing a desired result. In a more general sense, it is the

ability of employees to do things well, successfully, and without waste. In more mathematical or

scientific terms, it is a measure of the extent to which input is well used for an intended task or

function (output) (Scott and Westbrook, 2016). It often specifically comprises the capability of a

specific application of effort to produce a specific outcome with a minimum amount or quantity

of waste, expense, or unnecessary effort. Efficiency, of course, refers to very different inputs and

outputs in different fields and industries

Once the company ensures employees are being efficient, arise in performance will be seen.

Once the company has employees doing the right things, it is important to make sure they do

things right. Examine all employee tasks and determine if there is a better way to get them done.

For example, perhaps order pickers spend most of their time walking through the storage areas

looking for files and what they have been sent to pick. To give another example, back-office

personnel may be dictating to front-office salespeople how many orders they can handle

25
(Oparanma, 2016). Find more efficient ways to get work done through computerization,

streamlined communication channels and rearranging of the physical environment.

2.3.3 Productivity as a measure of employee performance

Productivity is the ratio of output or production capacity of the workers in an organization. The

ultimate essence of motivating employees is to meliorate productivity. An effective employee is

a combination of a good skill set and a productive work environment. Companies rely on

employees to produce and deliver high-quality products and services. Employees are impacted

by a variety of forces both internal and external as they attempt to perform their job duties. This

is directly related to productivity. In other words, productivity expresses the relationship between

output from systems and inputs, which go into their creation. Miner, (2010) argued that

performance is related to productivity when productivity is used as a means of measuring actual

operations thus used as a way of analyzing and evaluating performance. If positive attitudes are

developed, then productivity will increase, therefore, improved motivation leads to high

productivity

2.4. Actual Review

This section reviews literature following the specific objectives of this study as laid down in

Chapter one, of this study.

2.4.1 Recognition and employee performance

According to Vlosky, & Aguilar, (2010), recognition as a way of motivating employees involves

acknowledgement, approval and genuine appreciation (not phony praise). This recognition can

be set up on a formal basis (e.g., employee of the month or million dollars in sales round table)

or informally used by a supervisor/team leader in managing individual employee or team

26
behavior. Shearer, (2014) also points out that it can be administered on a public (staff meeting,

newsletter, or banquet) or on a one-on-one private level, verbally or written. There is a fine line

between recognition as defined here and other positive reinforcers or rewards such as money and

feedback. For example, providing a merit increase in pay or a bonus and feedback about

performance can be considered forms of recognition. In the researchers view, the broad appeal of

recognition is that most practicing managers believe it applies to everyone (top to bottom in the

organization), no one gets too much of it (no satiation principle here), it is available to everyone

to use, and it doesn‟t cost anything.

According to a study by Komaki, Coombs, & Schepman, (1996), recognition for a job well done

is commonly considered as an important management tool for motivating employees. Existing

empirical studies show strong positive correlations\ between the provision of recognition and

employee performance, but often fail to establish causality. The academic literature provides

surprisingly little sound evidence for the effects of employee recognition on employee

performance. Most existing studies such as (Rhoades and Eisenberger 2012 and Wagner and

Harter, 2016) rely on correlations between the provision of recognition and employee

performance However, as these studies recognize, correlation does not prove causation. For

instance, this implies that quite naturally, good performance also causes recognition, making it

difficult to detect a possible causal effect of recognition on performance using observational data

as in the study of Rhoades and Eisenberger (2012).

According to Luthans & Kreitner, (2015) recognition is an important source of employee

motivation. But the questions that pose a gap in the role of recognition include how should

managers allocate recognition: should they praise all? Or should they recognize only

extraordinary performances? This issue has not yet been addressed sufficiently. On the one hand,

27
exclusive recognition might raise the performance of high-performers even further as they feel

acknowledged and motivated by the public praise. However, in the researchers view, this implies

that it might come at the cost of discouraging and frustrating the non-recipients. On the other

hand, non-recipients might respond positively as they are encouraged to catch up with the high-

performers while the latter might rest on their laurels.

A study by Ottemann & Luthans, (2015) find that recognition significantly increases subsequent

performance, and in particular so if recognition is exclusively provided to the best performers.

Recognition to the best three performers in a group yields the largest effect on workers‟

productivity in comparison with either recognition to all employees or recognition to the best

performer. Interestingly, performance increases in response to exclusive recognition are mainly

driven by strong positive effects of non-recipients. Conformity preferences are the most likely

reason for these responses. Upon learning that one does not belong to the best three performers

in a group of eight, non-recipients feel inclined to improve performance so as to adhere to the

apparent group norm. In line with this interpretation, there are weaker (but still positive)

responses of non-recipients when only the best performer in a group receives recognition as this

provides a weaker signal of low relative performance than belonging to the bottom five out of

eight workers. However, the limitation with this study of Ottemann & Luthans, (2015) is

conformity preferences cannot explain all of their results. In particular, recipients of recognition

do not decrease performance, as conformity would suggest, but rather (although insignificantly)

increase it which brings about a gap. Therefore, this implies that a natural candidate to reconcile

these findings is that, in addition to conformity preferences, workers are also reciprocal and

hence increase performance in response to recognition.

28
Recent years have seen a surge in popular business books on the importance of recognition for

employee motivation. For example is the book by Nelson (2005) confirms what almost every

employee already knows: that recognition for a job well done is the top motivator of employee

performance. Other questionnaire studies reveal similar views among employees (Kovach, 1995;

Wiley, 1997) and managers (Holton et al., 2009). The vast amount of practitioner literature on

employee recognition is supported by a body of academic research in organizational and

personnel psychology. Stajkovic and Luthans (2003) give an overview of field-experimental

studies and report strong positive effects of recognition on employees‟ performance in a variety

of workplace contexts.

More recently, Grant and Gino (2010) experimentally study how a manager‟s verbal expression

of gratitude affects employees‟ effort and find strong positive effects. A study by Vroom (2014)

points out that a controlled workplace context, we have shown that provision of public

recognition to employees causes a statistically and economically significant increase in

performance. Further, it can be noted that recognition works best when it is provided exclusively,

but not too exclusively. In groups of eight workers, of the study by Vroom (2014) recognition to

the best three performers in a group led to a stronger performance increase than either

recognition to all employees or recognition to the best performer. This implies that performance

increases in response to exclusive recognition are mainly driven by strong positive responses of

non-recipients. The results of the study by Vroom (2014) suggest that recognition can be a cost-

effective tool for increasing average effort, especially when recognition is limited to a substantial

subset of high performers. More so, managers need to take into account that the distribution of

scarce recognition provides information to workers about the work norm prevalent in the group.

Depending on the circumstances, this may or may not be beneficial for the organization.

29
Recognition to staff are the very direct way to motivate workers put more efforts in the job and

attract them to stay with the company (Lo and Li, 2016). There is no doubt that every staff would

love to be appreciated by the superiors and company and get some extra benefit as the ultimate

goal in their position (Lardner, 2015). Understanding the needs of each staff before recognizing

them is an important process but normally being ignored by the employers which lose most of

the meaning and not effective on encouraging staffs and increasing the job satisfaction as well,

the reason behind is the employers always put the main focus on the business development and

the productivity instead of spending time on considering the needs of staffs (Watson, 2012).

However, an appropriate recognition practice can establish a better working atmosphere and

boost the staffs‟ confidence and productivity in order to help achieving the company‟s goals and

enhancing the company‟s competitiveness, which brings certain benefits to the firm.

2.4.2. Achievement and employee performance

According to a study by Pelit, Ozturk and Arslanturk (2011) building staff achievement is a good

tool to enhance employee performance, it may through the empowerment to staff or provide

autonomy to work which shows the trust of the company to its staffs, reward to ensure the efforts

that the staff has put or internal promotion as every staff concerns about their career pathway and

space of personal development in a company. This implies that all these way help increasing the

intrinsic motivation which means the satisfaction as well. However, there has been a gap in that

all the previous and current researches are just briefly found out the factors that will affect the

employee performance level and the relationship between employee performance to company

development or to customer satisfaction in many service fields. Instead, there is lack of research

that deeply investigates the importance of employee satisfaction and its influence to an industry.

This necessitates for a study like this one looking at one of the measures, such as staff

30
achievement, to see what kind of employee achievement can affect the level of employee

performance and job satisfaction.

Employees can develop a need for achievement when trust and autonomy are present in the work

environment (Lane, Esser, Holte, and McCusker, 2010). Employees who know their managers

trust them are more likely to meet or exceed performance goals, have higher levels of job

satisfaction and encourage achievement in their co-workers. Giving employees the autonomy to

decide how they will do their work in the context of the overall work process and department

goals helps build the need for achievement and is tied to developing trust. Employees with a

need for achievement want personal responsibility for finding solutions to problems. More so,

some employees come to a business with a high need for achievement. These are the people who

get the work done (Hussain, 2011). They regularly produce results; however, because of their

high achievement need, they may not have strong interpersonal skills. They are effective as

subject matter specialists or technical trouble shooters working on complex projects or problems.

When achievement needs are combined with affiliation needs, the need to get along well with

others, the employee may become an effective manager or team leader and can help co-workers

develop their need for achievement.

Smith, (2013) notes that employee achievement normally means something that has been

accomplished and shows the efforts putting in it. Employee achievement is the positive result

while the staff finishing particular goal in a task or being beneficial to the organization that his or

her effort will be praised or certain status will be built by the organization and themselves.

Shearer, (2014) looked at sense of self professional status as a factor of achievement noting that

not only the promotion of rank can affect the satisfaction and performance level, the job title

31
which indicates the sense of professional level holds a role in the employee satisfaction as well,

even in recreational industry. It is suggested that the job title of a staff has a significant influence

in the job performance, which means the staff who is in the higher rank with the more

professional title will equally have the higher satisfaction in the job (Ross, Young, Sturts, and

Kim, 2014). It is believed that staffs also need to be recognized and respected starting by the job

position title to the job content, it means deeply to the staff esteem and if they can get the respect

and have the sense of profession by the title, they are more likely to satisfy with the job. Even

though the satisfaction of staff can help on a firm development, the firm size does not reflect the

satisfaction level in the same result. It is found that there are less satisfactory of the staff when

they are working in the large firm base on four measures, the amount of wage, the staff

achievement, the relationship and the job nature

Baah and Amoako (2011) stated that motivational factors regarding organization such as work

itself, achievement sensation, and development opportunities among others help employees

recognize their value and worth within organization. They consider that motivators are a source

of internal (inner) satisfaction which leads to higher satisfaction while the hygiene factors cause

external happiness but much powerful as compared to the motivational factors.

In a study by Baruch, (2004) involving 846 employees in high-tech industries in Israel and in

England, the investigator found a significant positive relationship between the need for employee

achievement and job performance. It was shown that the higher the measured achievement

motivation, the higher was the employee‟s job performance. More so, Harter et al., (2002)

argued that one of the important factors that create satisfaction among employees is the

motivator to fulfilling individual‟s needs for meaning and personal growth. This includes

employee achievement, the work itself and advancement. Harter et al., (2002) continue by stating

32
that many researchers found different results in the relationship between employee achievement

and job performance, but only few researches have advocated the existence of such „linkages‟.

Belias, Koustelios, Sdrolias and Aspridis (2015) note that employees who have achievement

have their dominant motivator has strong need to set and accomplish challenging goals. They

will also take calculative risks to accomplish their goals and prefer to receive regular feedback

on their progress and achievements. Employees motivated by achievement work very effectively

either alone or with other high achievers. There is evidence showing that people who have high

need for achievement perform better at work (Eisenberger, Jones, and Stinglhamber 2015).

Employees with high need of achievement would have clear and complete plan to help

themselves achieve their goal. However, employees having low need for achievement perform

better with money incentive.

2.4.3 Responsibility and employee performance

The success behind any organization entirely depends on how the activities are carried

out by the human resource of the organization (Tumer, 2005). It is for this reason that an

organization should carry out a job Responsibility which will determine the activities, skills

and abilities required in performing a given job. As Lusch and Serpkenci (2010) observe that

an organization that is committed to fair, clearly stated that supportive relationships

between the organization and its staff through clear job description is destined to

succeed. Cox, (2016) also note that employee job Responsibility are based on objective

information obtained through job analysis, an understanding of the competencies and

skills required to accomplish needed task

33
Kelly, Gable and Rise, (2001) the job responsibilities set out clear expectations about what is

expected by the employer from his employees. This is the first place to look if people aren„t

doing what you want them to do. This implies that it gives a sense of responsibility

and commitment to the employee as well as leads to motivation and job satisfaction. Job

description helps in job grading. It attempts to distinguish between work levels in which jobs are

compared. It also helps in transfer and promotions, adjustments of grievances and

provides guidelines during interviews

Rast, and Tourani, (2012) it is important that the organizations ensure that there is a consistent

allocation of reasonable workload to workers. This implies that the tasks are allocated to

employees in such a way that their workload don‟t not exceed from whatever is reasonably

expected from them

Cox (2016) also notes that employees have the role of business developers. This implies that they

have the responsibility of growing the organization, especially in terms of profitability. The main

objective or bottom line of business is to make profits. Additionally, employees are the greatest

assets that make a business profitable. When employees neglect their roles and responsibility,

then the profitability of a business is substantially threatened

Responsibility at work is important to an organization‟s success as a whole. Every employee, no

matter what level of seniority is equally responsible for aiding in the success of the company. In

order to achieve the goals of the company, long and short term, it is important that all people

within the company work together and share responsibilities. Employees, who work together

towards the same overall goal help their workplace to become more responsible, in turn make the

business more productive and efficient

34
2.5 Conclusion

The early attempts of empirical research in intrinsic motivation have been limited at developing

instruments capable of measuring motivation factors. Baruch, (2004) observed that most

recently, some researchers have focused their research efforts into exploring the relationship

between motivation strategies and employees performance (Belias et al, 2015, Cox, 2016), with

fewer studies specifically focusing on intrinsic motivation and employee performance though a

research gap still exists which this study intends to cover. There this study focused on the effect

of recognition, achievement and responsibility on employee performance and in this case using a

case study of Pride Microfinance Ltd. The next chapter three shows the research methodology

that was used in the study

35
 CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter describes areas to be studied, research design, the population of the study, sample

size and selection sampling techniques and procedures, data collection methods and instruments,

data analysis and measurement of variable. This chapter also describes and discusses the

instruments, data analysis and measurement of variables that were applied in the study to assess

the effect of intrinsic motivation on employee performance of an organization using a case study

of Pride Microfinance Ltd

3.2 Research Design

A cross sectional survey was adopted in this study because it helped the researcher to get in

depth information about the phenomenon Amin being studied. Amin (2005) defines a survey as

research design that analyzes one a few subjects. Survey design involves in depth contextual

analysis of similar situations in other organizations, where the nature and definition of the

problem happens to be the same as experiences in the current situation (Amin, 2005). Verbal

approaches as well as statistical representations were used in order to obtain useful data from the

population. This research design was adopted because it is an efficient approach of collecting

descriptive data regarding characteristics of a sample of a population, current practices,

conditions or needs.

The study adopted both qualitative and quantitative approaches to provide a more complete and

comprehensive picture of the issues under discussion. Quantitative approach allowed the

researcher to obtain information that can be quantified while the qualitative approach allowed the

researcher to obtain information that cannot be quantified (Mugenda & Mugenda, 1999). The

36
quantitative also helped in collecting numeric data on observable individual behavior of samples

then subjecting the data to statistical analysis Amin, (2005). The qualitative approach enabled

the researcher capture data that was left out by the quantitative approach.

3.3 Area of the Study

The study was mainly carried out at Pride Microfinance Ltd which is located in Victoria

Business Park, in Bukoto, a northeastern neighborhood in Nakawa Division, an administrative

area within Kampala, Uganda's capital and largest city. This location is situated approximately

6.5 kilometres (4.0 mi), by road, outside the city's central business district Kampala in Central

Uganda

3.4 Study Population

A population of the research study is the absolute cluster of elements or individuals which the

researcher generalized while carrying on a research study. The study was conducted in Pride

Microfinance Ltd. The study considered a total population of 55 respondents consisting of

management/staff. These can be categorized in the table below

Table 3.1: Population of the study

S/N Category Population

1 Human Resource officers 7

2 Managers 4
3 Supervisors 5
5 Credit Officers 39
Total 55
Source: Pride Microfinance Human Resource (2018)

37
3.5 sample size

The sample is a collection of some (subset) elements of a population (Amin 2005). The study

used a sample size of 48 respondents from a study population of 55 employees of the bank as

estimated basing on Krejie and Morgan table (1970) as adapted by Sekaran (1999) for decision

on sample size selection.

Table 3. 2: Sample size and selection

S/N Category Population Sample size Sampling Technique

1 Human Resource officers 7 4

2 Managers 4 4
3 Supervisors 5 5 Stratified sampling

5 Credit Officers 39 35
Total 55 48
Source: Primary data (2018)

3.6 Sampling techniques and procedures

3.6.1 Stratified sampling

Sampling involves selecting research elements or items for a research study from a given

research population. Stratified sampling is a probability sampling technique wherein the

researcher divides the entire population into different subgroups or strata, then randomly selects

the final subjects proportionally from the different strata. It was used because is often desirable

to have estimates of population parameters for groups within the population. Using this Stratified

approach, the Pride Microfinance Human Resource officers, Managers and Supervisors were

selected to participate in the study

38
3.7 Data Collection Sources

3 .7.1 Primary Sources

Primary data refers to data collected for the first time. This was collected through the use of

questionnaires, and interviewing the respondents from Pride Microfinance Ltd. This data that

was collected was more reliable and up to date.

3.7.2 Secondary Sources

Secondary data is data that has already been collected by somebody for some reason other than

the current study. A lot of secondary data was collected in this research especially in literature

review and reference chapters. It was used to get a new perspective on the current study, to

supplement on the primary data already collected. The researcher reviewed material from Human

resource Journals and Manuals, other relevant policies, Published reports, published articles, and

newspapers. This helped the researcher to access all the relevant information on the study.

References from which data is drawn were recognized in this study

3.8 Data Collection Tools

Data collection refers to the systematic process of collecting research data on a given

phenomenon (Amin, 2005). The researcher used both questionnaires and interview guides to

collect data

3.8.1 Questionnaire

The questionnaire method of data collection refers to a compilation of questions which helped

the researcher gather the necessary research data for the study. The research instrument that was

used for this method of data collection is the administered questionnaires. The questionnaire

consisted of a set of close ended questions to which the other employees answered by filling,

39
after which they were picked back for data analysis. Paper-pencil-questionnaires can be sent to a

large number of people and saves the researcher time and money. This method of data collection

was preferred because it gave a great degree of assurance to the anonymity and confidence of the

research respondent. The questionnaires were administered to the credit officers since they had

many and also had quality information for the study.

3.8.2 Interview Guide

Interviews are open questions often administered to key informants to give them wide latitude to

talk about the subject. The researcher conducted oral interviews with the Human Resource

Officers, Managers and Supervisors of Pride Microfinance because they are key informants of

the study, were fewer and had key relevant information about intrinsic motivation strategies in

Pride Microfinance Bank. The interviews complemented the information gathered from

respondents and the available documents. An interview guide was designed to maintain

consistency and reduce bias. The interviews provided an opportunity for the researcher to

interact directly with the respondents

3.9 Quality Control

3.9.1 Validity

According to Amin (2005) validity refers to the appropriateness of the instrument. It is the ability

to produce findings that are in agreement with theoretical and conceptual values of the study. It

is the ability to produce accurate results and measure what it is supposed to measure.). The

researcher discussed the instruments with the research supervisor, academic staff and other

colleagues. Here after, validity was established by computing the content validity index whose

formula is;

CVI = Relevant Items X 100

40
 Total Items
The CVI method was preferred because it is the most suitable validity measure for the studies

using instruments like questionnaires.

The finding from the two experts were used to establish CVI

Table 3.3: Validity findings

Relevant items Not relevant items Total

Rater 1 29 6 35
Rater 2 32 3 35
Total 61 9 70
Source: Primary Data (2018)

CVI = Relevant Items X 100

Total Number of Items
= 61 X 100
70
= 87.0

The content validity index (CVI) computed above was above 70 the standard cronbach alpha

and the instruments were considered valid which was in line with Amin‟s (2005) who

recommended minimum CVI of 70 which was employed.

3.9.2 Reliability

Reliability refers to the degree to which a set of variables are consistent with what they are

intended to measure. In other words, it is the ability of the research tools to collect data that can

be replicated i.e. where different other people can go to the field to carry out the same research

being carried out and get the same results that the researcher got. This was done by testing and

pre-testing method. It was also done by use of the questionnaire to see if it can give the

41
researcher good results. Cronbach Alpha Index was also used to test the reliability of the

instruments.

Table 3. 4 : Reliability findings

Concept Alpha Value

Recognition 0.756

Achievement 0.724

Responsibility 0.743

Employee Performance 0.756

Source: Primary Data (2018)

Results revealed that the research instrument was reliable as the Reliability was measured using

the Cronbach Alpha Value. For each of the measures, the lowest values were 0.724 yet the

lowest minimum acceptable value is 0.700 (Amin 2005). This showed the research instrument

was reliable.

3.10 Measurement of variables

The variables were measured by operationally defining concepts. For instance the questionnaire

was designed to ask responses about the effect of intrinsic motivation on performance of

employees. These were channelled into observable and measureable elements to enable the

development of an index of the concept. A five - (5) strongly agree, (4) agree, (3) not sure (2)

disagree, (1) strongly disagree were used to measure both the independent and dependent

variables. The characteristics of the respondents were measured at nominal and ordinal.

42
3.11 Data management and analysis

Data analysis is the process of transforming raw data into usable information, often presented in

the form of a published analytical article, in order to add value to the statistical output (Amin,

2005). Two types of data analysis were conducted and these included quantitative and qualitative

analyses. The following subsections explain the analyses in detail.

3.11.1 Quantitative Data Analysis

Quantitative data analysis mainly consisted of descriptive statistics (frequencies, percentages,

means and standard deviation) and inferential statistics (Pearson correlation and regression). The

frequencies, percentages, means and standard deviation were used to determine the respondents‟

views on the study. Pearson‟s correlation coefficient was used to test the hypotheses. The

correlation coefficient was used to determine the strength of the relationship between the

variables. The sign of the correlation coefficient (+ or -) was used to determine the nature of

relationship. The correlation coefficient sign (+ or -) indicates the direction of the relationship. A

positive one (+) indicates a direct positive relationship while a negative (-) indicates an inverse

negative relationship between two variables, (Amin, 2005). The significance of the correlation

coefficient (p) was used to determine the confidence in the findings. The regression coefficient

(R) determined the linear relationship between variables. This was then squared and adjusted to

determine how much variance in the dependent variable is caused by the dimensions of the

independent variables as per hypothesis

3.11.2 Qualitative Data Analysis

Content analysis was used to analyze qualitative data. Qualitative data from interviews were

reviewed thoroughly, sorted and classified into themes and categories to support the quantitative

43
data. The recurrent issues that emerge in relation to each guiding questions were presented in the

results with selected direct quotations from participant offered as illustrations.

3.12 Ethical Considerations

In this study there are several reasons to adhere to ethical norms. Norms promote the aims of the

research, such as knowledge, truth, and avoidance of error. For example, prohibitions against

fabricating, falsifying, or misrepresenting research data promote the truth, avoid plagiarism

and errors. Research often also involves a great deal of cooperation and coordination

among different people in different disciplines and institutions (Sekaran, 2003). However,

ethical standards promote values that are essential to collaborative or shared work. Ethical

considerations refer to the research principles that will be adhered to while conducting the

research study. Amin (2005) points out that it is always prudent to conduct research studies in

accordance with higher moral values. The identity of individuals from whom information will be

obtained in the course of the research will strictly confidential. No individual was a subject of the

research without his/her freely given consent that he/she participated in the study.

Therefore, this research was conducted with utmost level of integrity basing on information or

data collected from respondents. The information collected did not have negative/bad impact on

the company settings and the community as a whole.

An introductory letter was obtained from gotten from Uganda Martyrs University and presented

to the relevant Authorities in Pride Microfinance Ltd seeking permission from the directorate of

Human Resources to conduct the study from their organization.

The information they given was solely use for academic purposes and data obtained were kept

with confidentiality

44
3.13 Limitations of the study

During the field study, the researcher faced some difficulties such as being limited by the

reluctance of some respondents to complete the questionnaires promptly. In this case the

researcher ensured patience and direct involvement in completion

Another challenge was the busy schedule of the respondents. This made it difficult to get them to

respond in a timely manner. In this case, there call for persistence in making appointments

provided great help

The researcher experienced a problem of limited finances with respect to this study. Costs

regarding this limitation included transport, printing and photocopying of relevant materials.

However, the researcher had to request for grants or source some money from relatives, friends

and used it sparingly so as to overcome the cost constraint.

The researcher also faced a time constraint in data collection, analyzing of data and in final

presentation of the report. However, the researcher overcame this problem by ensuring that the

time element is put into consideration and that all appointments agreed upon with respondents

are fully met

3.14 Conclusion

The chapter is basically the backbone of the research, because it seeks for information about

intrinsic motivation and employee performance, by using different data collection methods,

within the employees of Pride Microfinance Ltd and available documents. The next chapter four

presented and discussed the study findings

45
 CHAPTER FOUR

PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.0 Introduction

In this chapter, results on the background of respondents are analyzed and interpreted. This is

followed by results on objective one, two and three respectively which are also analyzed and

interpreted. Findings on the effect of intrinsic motivation on employee performance of pride

microfinance ltd are presented, analyzed and interpreted.

4.1 Response rate

From the study, out of the 48 respondents targeted, (45) questionnaires passed the data response

cleanup process for acceptance for data analysis. This represented a response rate of 93.8%.

According to Amin (2005) a response rate equivalent to 50% is good, however that of 93.8% is

excellent.

4.2 Background of respondents

This section presents the background information of the respondents. This information was

considered useful in that it would reveal the professional relevance and knowledge base of the

respondents to give informed responses.

4.2.1 Gender of the respondents

Respondents were required to indicate their gender and the results were as follows

46
Table 4.1: Gender of the respondents
Frequency Percent Valid Percent Cumulative Percent

Valid Female 24 53.3 53.3 53.3

Male 21 46.7 46.7 100.0

Total 45 100.0 100.0

Source: Primary data (2018)

As shown in the above table 4.1, the majority of respondents, (53.3%) were females and males

were only (46.7%). This was found relevant because respondents of different genders could be

having varying views and knowledge on the effect intrinsic motivation and employee

performance in Pride Microfinance Ltd.

This information can further be represented graphically as shown in the pie chart below

Figure 2: Gender of respondent

Source: Primary Data (2018)

47
4.2.2 Age of the respondents

Respondents were required to include their age and the results were as follows:

Table 4.2: Age of respondent

Frequency Percent Valid Percent Cumulative Percent

Valid 20-25 years 4 8.9 8.9 8.9

26-30 years 21 46.7 46.7 55.6

31-35 years 11 24.4 24.4 80.0

36-40 years 9 20.0 20.0 100.0

Total 45 100.0 100.0

Source: Primary data (2018)

Findings show that most respondents (46.7%) were in the age group of 25 – 30 years, compared

to (24.4%) in the age group of 31 – 35 years, (20.0%) in the age group of 36 – 40 years, and a

minority of (8.9%) in the age group of 20 – 25 years . This implied that the respondents were

mature enough had enough experience to give sufficient information regarding intrinsic

motivation and employee performance of Pride Microfinance Ltd. This information can further

be represented graphically as shown in the bar chart below

48
Figure 3: Age of the respondents

Source: Primary data (2018)

4.2.3 Highest level of education qualification

Respondents were required to include their highest level of education and the results were as

follows:

Table 4.3: Highest level of education of the respondent

Frequency Percent Valid Percent Cumulative Percent

Valid Certificate 2 4.4 4.4 4.4
Diploma 3 6.7 6.7 11.1
Degree 39 86.7 86.7 97.8
Masters 1 2.2 2.2 100.0
Total 45 100.0 100.0
Source: Primary data (2018)

As portrayed in the table 4.3 above majority of respondents (86.7%), had attained degrees,

followed by diplomas as shown by (6.7%), (4.4%) had certificates and only (2.2%) had attained

49
Master‟s Degree. These results indicate that majority respondents had attained at least education

up to university level. In order to gather all these different views about intrinsic motivation and

employee performance, the different levels of education were essential for this study. This is

because the educational attainment of respondents is an important indicator of their knowledge

and attitude about the effect of intrinsic motivation and employee performance. Education also

enhances the ability of individuals to achieve desired attitudes and performance goals

This information can further be represented graphically as shown in the bar chart below

Figure 4: Level of education for the respondent

50
4.3 Descriptive statistics on intrinsic motivation

The study assessed intrinsic motivation using attributes of recognition, achievement and

responsibility. The following are the findings on each one of these attributes:

4.3.1 Descriptive statistics on recognition

Table 4. 4: Descriptive statistics for Recognition

N Minimum Maximum Mean Std. Deviation

Good performing employees are
recognized according to their 45 2.00 5.00 3.9556 .90342
expectations
Recognition has increased the
willingness of workers to put 45 2.00 5.00 4.2667 .78044
effort into their tasks
There is high employee morale
which has encouraged team 45 2.00 5.00 4.0444 .79646
work as a result of recognition

Employees work harder when

they are expecting to be
45 3.00 5.00 4.5111 .72683
recognized and appreciated for
their effort
We now have a quicker response
to customer requirements as a 45 2.00 5.00 3.9556 .73718
result of recognition

Employees of the week are

recognized by pining them on 45 1.00 4.00 1.9333 1.00905
noticeboards
Valid N (listwise) 45
Source: Primary data (2018)

Recognition of good performing employees

Respondents were required to indicate if the good perfuming employees are recognized

according to their expectations and the findings showed a mean of 3.96 which implies that

51
majority agreed that indeed those who perform well according to their expectations are

recognized by the organization. However, this result yielded a standard deviation of 0.90 which

implied that there were varying responses on this statement. One of the bank managers

interviewed said that;

“Every staff member works hard and smart so as to excel and win the trip abroad given
to good performers. The positive feedback keeps every one focused and those who are
recognized and appreciated continue to work hard to keep at that levels”

In line with study findings, Wancevick (2014) argued that employees like to be appreciated and

recognized for their work. People like to be involved, consulted and given an opportunity to offer

suggestions. This can enhance their performance

Willingness of workers to put effort into their tasks

According to the study findings in table, it was indicated that majority of the respondents pointed

out that recognition has increased the willingness of workers to put effort into their tasks. This is

indicated by a mean of 4.27. However a significant standard deviation of 0.78 is a clear

manifestation of varied responses from respondents as far as willingness of workers to put effort

into their tasks is concerned. According to a study by Komaki, Coombs, & Schepman, (1996),

recognition for a job well done is commonly considered as an important management tool for

motivating employees so that the employees can be able to put effort into their tasks. Existing

empirical studies show strong positive correlations\ between the provision of recognition and

employee performance, but often fail to establish causality.

High employee morale and team work

Study findings in in table revealed that majority of the respondents agreed that there is high

employee morale which has encouraged team work as a result of recognition. This is evidenced

52
by the mean score of 4.04. However, the responses varied as shown by the standard deviation of

0.80. This implies that when the employees are recognized, their morale is increased which has

encouraged team work. In a study by Mullins, (1996), In one aerospace missile plant, recognition

of employees increased morale and productivity, as well as greatly reduced turnover and

absenteeism resulted from the simple technique of having all employees‟ names on placards at

their workstations and having each program group work in an area in which machines and

equipment were painted a different color.

Employees work harder when recognized

Respondents were required to indicate if employees work harder when they are expecting to be

recognized and appreciated for their effort and the findings showed a mean of 4.51 which implies

that majority agreed that indeed employees work harder when they are expecting to be

recognized and appreciated for their effort. However, this result yielded a standard deviation of

0.73 which implied that there were varying responses on this statement. One of the interviewed

bank mangers said that:

“The staff feels recognized and part of the pride Microfinance family. s/he feels

empowered and motivated and inspired to perform.”

Quicker response to customer requirements

In reference to the question on whether they now have a quicker response to customer

requirements as a result of recognition, the findings of the study as showed in table above,

revealed that most of the respondents agreed. This is evidenced by the mean score of 3.96 and

standard deviation 0.74 which explains the varying of responses between respondents that

strongly agreed and those that agreed.

53
Pining employees of the week on noticeboards

It was also indicated from data provided in table no 4.4 that when respondents were asked

whether employees of the week are recognized by pining them on noticeboards and the majority

of the respondents disagreed with it. The mean score of 1.93 and standard deviation 1.01

explains the varying of responses between respondents that strongly disagreed and those that

disagreed. This implies that the notice boards in the bank are not used for pinning the employees

who perform well in a given week.

4.3.2 Descriptive statistics on achievement

Table 4. 5: Descriptive statistics for Achievement

N Minimum Maximum Mean Std. Deviation

Employees have developed a need for
achievement since trust and autonomy 45 1.00 5.00 4.0000 .82572
are present in the work environment
Employees have developed a positive
behavior towards the bank as a result of 45 1.00 5.00 4.0222 .91674
achievement
We normally feel a sense of achievement
after completing a particular goal in a 45 3.00 5.00 4.3111 .59628
task
Promotion of work can improve the
satisfaction of employees 45 1.00 5.00 4.3778 .71633

Employees have been able to recognize

their value and worth within the bank as 45 3.00 5.00 4.0444 .60135
a result of Achievement
There is more teamwork among the
employees in the bank as a result of 45 1.00 5.00 4.0444 .87790
achievement
Valid N (listwise) 45

Source: Primary data (2018)

54
A need for achievement

Respondents were required to indicate if employees have developed a need for achievement

since trust and autonomy are present in the work environment and the findings showed a mean of

4.00 which implies that majority agreed that indeed employees have developed a need for

achievement since trust and autonomy are present in the work environment. However, this result

yielded a standard deviation of 0.83 which implied that there were varying responses on this

statement.

Positive behavior towards the bank

The study findings provided in table 4.5 revealed that the majority of the respondents agreed that

Employees have developed a positive behavior towards the bank as a result of achievement. This

was evidenced by the mean of 4.02 and Standard deviation of 0.92. This implies that having a

sense of achievement enables employees to a positive behavior towards the bank which also

enhances their performance.

Sense of achievement after completing a particular goal in a task

More results in table 4.5 also revealed that most of the respondents agreed they normally feel a

sense of achievement after completing a particular goal in a task. This is because the statement

had a mean score of 4.31 which is tending towards the maximum of 5 implies that most of the

respondents agreed in addition to the standard deviation of 0.60 is support to those results.

Promotion of work

Furthermore, the findings of the study as shown in table 4.5, indicate that majority of the

respondents agreed that Promotion of work can improve the satisfaction of employees. This had

a mean score of 4.38 which is tending towards the maximum of 5. This implies that most of the

55
respondents agreed that promotion of work can improve the satisfaction of employees. The

standard deviation of 0.639 which explains the responses that varies between those who strongly

agreed and agreed. Amabile (2013), noted that achievement enhances the employee satisfaction.

Employees are given rewards to ensure the efforts that the staff has put or internal promotion as

every staff concerns about their career pathway and space of personal development in a company

Recognizing value and worth of employees within the bank

It was indicated in table 4.5 that the majority of the respondents agreed that employees have been

able to recognize their value and worth within the bank as a result of Achievement. This is

evidenced by the mean score of 4.04 and standard deviation 0.60. One of the interviewed

respondents said that;

“Employees feel a sense of achievement once they their worth and the value that they add
to this bank is recognized. This also enhances their performance”

It was pointed out by Lane, Esser, Holte, and McCusker, (2010) that employees can develop a

need for achievement when trust and autonomy are present in the work environment. Employees

who know their managers trust and value their worth them are more likely to meet or exceed

performance goals, have higher levels of job satisfaction and encourage achievement in their co-

workers.

Teamwork among the employees

The study findings in table revealed that the majority of the respondents agreed, that there is

more teamwork among the employees in the bank as a result of achievement. This had a mean

score of 4.04 which is tending towards the maximum of 5 implies that most of the respondents

agreed that there is more teamwork among the employees in the bank as a result of achievement

The standard deviation of 0.88 which explains the responses that varies between those who

56
strongly agreed and agreed. According to a study by Pelit, Ozturk and Arslanturk (2011) building

staff achievement is a good tool to enhance team work and employee performance, it may

through the empowerment to staff or provide autonomy to work which shows the trust of the

company to its staffs

4.3.3 Descriptive statistics on Responsibility

Table 4. 6: Descriptive statistics for Responsibility

N Minimum Maximum Mean Std. Deviation

We are constantly reminded of our
responsibilities and duty 45 1.00 5.00 4.1333 1.03573

We are aware of the activities, skills

and abilities required in performing a 45 3.00 5.00 4.5556 .54588
given job
Job responsibilities have set out clear
expectations about what is expected 45 2.00 5.00 4.4222 .75344
by the employer from his employees

Responsibility also helps in transfer

45 1.00 5.00 4.1333 1.03573
and promotions
Every employee, no matter what level
of seniority is equally responsible for 45 1.00 5.00 4.3556 .80214
aiding in the success of the company

Job responsibilities have enabled us to

achieve the set objectives 45 2.00 5.00 4.3111 .73306

Valid N (listwise) 45

Source: Primary data (2018)

Reminding of responsibilities and duty

In relation to the study findings in table 4.6, it was presented that the majority of the respondents

agreed they are constantly reminded of our responsibilities and duty as evidenced by the mean

57
score of 4.13 and standard deviation 1.04 which explains the varying of responses between

respondents that strongly agreed and those that agreed.

Job activities, skills and abilities required

From the findings of the study in table 4.6 it was shown that the most of the respondents agreed

that they were aware of the activities, skills and abilities required in performing a given job. This

is because it had a mean score of 4.56 and SD of 0.56 which is tending towards the maximum of

5 implies that most of the respondents agreed. In line with the Study findings Tumer, (2005)

argued that The success behind any organization entirely depends on how the activities

are carried out by the human resource of the organization (It is for this reason that an

organization should carry out a job Responsibility which will determine the activities, skills

and abilities required in performing a given job.

Clear expectations

It was indicated from table 4.6 the majority of the respondents agreed, that Job responsibilities

have set out clear expectations about what is expected by the employer from his employees. This

is evidenced by the mean mark of 4.42 from the responses and standard deviation of 0.75. One of

the interviewed respondents said that;

“We normally set out our expectation and give them job responsibilities through their
proven competences, through interviews and promotions, though delegation and also
though trainings and mentorship programs”

Another interviewed respondent pointed out that;

“The employees are given responsibilities according to their performance agreements
and job description given to them every beginning of the year”

58
The job responsibilities set out clear expectations about what is expected by the employer from

his employees. This is the first place to look if people aren„t doing what you want them to

do as Pointed out by Kelly, Gable and Rise, (2001).

Transfer and promotions

Respondents were required to indicate if responsibility also helps in transfer and promotions and

the findings showed a mean of 4.13 which implies that majority agreed that responsibility also

helps in transfer and promotions. However, this result yielded a standard deviation of 1.04 which

implied that there were varying responses on this statement. One of the intervened respondents

said that;

“Once the employee is recruited, you go for specific training in relation to the job you
are going to do and this helps us when we are doing transfers and promotions . further,
the job description is clear and specific for the job”.

Rast, and Tourani, (2012) noted that it attempts to distinguish between work levels in which jobs

are compared. It also helps in transfer and promotions, adjustments of grievances and

provides guidelines during interviews

Aiding in the success of the company

More to the above, the findings showed that every employee, no matter what level of seniority is

equally responsible for aiding in the success of the company of the respondents strongly agreed

as evidenced by the mean score of 4.36. However, the responses varied as shown by the standard

deviation of 0.81. Responsibility at work is important to an organization‟s success as a whole.

Every employee, no matter what level of seniority is equally responsible for aiding in the success

of the company. In order to achieve the goals of the company, long and short term, it is important

that all people within the company work together and share responsibilities as pointed out by

59
Cox, (2016).

Achieve the set objectives

The findings in table 4.6 showed that most of the respondents agreed that Job responsibilities

have enabled us to achieve the set objectives. This had a mean score of 4.31 which is tending

towards the maximum of 5 implies that most of the respondents agreed and the standard

deviation of 0.73 explains the responses that vary between those who strongly agreed and agreed.

4.4 Descriptive statistics on employee performance

The study assessed employee performance using attributes of timeliness, efficiency and
productivity. The following are the findings

Table 4. 7: Descriptive statistics for Employee Performance

N Minimum Maximum Mean Std. Deviation

We are now able to do more tasks in time 45 1.00 5.00 4.0889 .92496
Services are delivered in time and are said
45 2.00 5.00 4.1556 .82450
to be good
We are able to respond to customer
45 3.00 5.00 4.2444 .64511
complaints in time
The human resource costs have been
45 1.00 5.00 3.8222 .96032
reduced
The quality of work produced has
45 1.00 5.00 4.1556 .76739
improved
Our employees are more efficient 45 1.00 5.00 4.2222 .70353
The client base has improved the loan
45 1.00 5.00 4.2444 .80214
portfolio
The number of clients registering has
45 3.00 5.00 4.0889 .66818
increased
We have achieved budget targets 45 3.00 5.00 4.0222 .58344
Valid N (listwise) 45
Source: Primary data (2018)

60
Doing more tasks in time

The study findings revealed table 4.7 indicated that the majority of the respondents agreed that

they are now able to do more tasks in time. This was evidenced by the mean of 4.08 and

Standard deviation of 0.92. These findings implied that as a result of intrinsic motivation, the

employees of Pride Microfinance Ltd are now able to do more tasks in time.

Good & Timely Service delivery

It was also revealed from table 4.7 that most of the respondents agreed and agreed that Services

are delivered in time and are said to be good. This is because the statement had a mean score of

4.16 which is tending towards the maximum of 5 implies that most of the respondents agreed in

addition to the standard deviation of 0.83.

Responding to customer complaints

In relation to the study findings in table 4.7 it was presented that the majority of the respondents

agreed that they are able to respond to customer complaints in time as evidenced by the mean

score of 4.24 and standard deviation 0.65 which implies that handling customer complaints is

essential for the bank as a result of intrinsic motivation.

Reduction of Human Resource Costs

Respondents were required to indicate if the human resource costs have been reduced and the

findings showed a mean of 3.82 which implies that majority agreed that indeed the human

resource costs have been reduced. However, this result yielded a standard deviation of 0.96

which implied that there were varying responses on this statement.

61
Improved quality of work

From the findings of the study in table 4.7, it was shown that the majority of the respondents

agreed that the quality of work produced has improved. This is because it has a mean score of

4.16 and SD of 0.77 which is tending towards the maximum of 5 implies that most of the

respondents agreed.

Efficient Employees

The study findings in table 4.7 revealed that the majority of the respondents agreed that the

employees are more efficient. This had a mean score of 4.22 which is tending towards the

maximum of 5 implies that most of the respondents agreed. The standard deviation of 0.70 which

explains the responses that varies between those who strongly agreed and agreed.

Improved the loan portfolio

More to the above, the findings showed that majority of the respondents agreed that the client

base has improved the loan portfolio. This had a mean score of 4.24 which is tending towards the

maximum of 5 implies that most of the respondents agreed and the standard deviation of 0.80

explains the responses that vary between those who strongly agreed and agreed.

Increased registered clients

From the study findings revealed in the table 4.7 it was indicated that the majority of the

respondents agreed that the number of clients registering has increased. This was evidenced by

the mean of 4.09 and Standard deviation of 0.67.

Achieved Budget targets

It was also revealed from table 4.7 that majority of the respondents agreed that they have

achieved budget targets. This is because the statement had a mean score of 4.02 which is tending
62
towards the maximum of 5 implies that most of the respondents agreed in addition to the

standard deviation of 0.58

4.5 Correlation analysis

Table 4.8: Correlation results for Recognition and Employee Performance

Employee
Recognition Performance

Recognition Pearson Correlation 1 .579**

Sig. (2-tailed) .000

N 45 45

Employee Performance Pearson Correlation .579** 1

Sig. (2-tailed) .000

N 45 45

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2018)

The researcher sought to establish whether a relationship existed between Recognition and

Employee Performance, this was done with the support of the Pearson Product moment

correlation technique. The Pearson correlation (r=.0.579), sig (=.000) N (=45) that a positive

relationship exists between Recognition and Employee Performance. The p- value of .000, that is

less than the alpha level of significance of 0.01 which implies that there is a significant

correlation. According to a study by Komaki, Coombs, & Schepman, (1996), recognition for a

job well done is commonly considered as an important management tool for motivating

employees. Existing empirical studies show strong positive correlations between the provision

63
of recognition and employee performance, but often fail to establish causality. The academic

literature provides surprisingly little sound evidence for the effects of employee recognition on

employee performance

Table 4. 9: Correlation results for Achievement and Employee Performance

Employee
Achievement Performance

Achievement Pearson Correlation 1 .553**

Sig. (2-tailed) .000

N 45 45

Employee Performance Pearson Correlation .553** 1

Sig. (2-tailed) .000

N 45 45

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data (2018)

The researcher sought to establish whether a relationship existed between Achievement and

Employee Performance, this was done with the support of the Pearson Product moment

correlation technique. The Pearson correlation (r=.0.553), sig (=.000) N (=45) that a positive

significant relationship exists between achievement and employee performance. The p-value of

.000 that is less than the alpha level of significance of 0.01 which implies that there is a

significant correlation. Lane, Esser, Holte, and McCusker, (2010) pointed out that employees can

develop a need for achievement when trust and autonomy are present in the work environment

Employees who know their managers trust them are more likely to meet or exceed performance

goals, have higher levels of job satisfaction and encourage achievement in their co-workers.

64
Giving employees the autonomy to decide how they will do their work in the context of the

overall work process and department goals helps build the need for achievement and is tied to

developing trust.

Table 4. 10 Correlation results for Responsibility and Employee Performance

Employee
Responsibility Performance
Responsibility Pearson Correlation 1 .545**
Sig. (2-tailed) .000
N 45 45
Employee Performance Pearson Correlation .545** 1
Sig. (2-tailed) .000
N 45 45
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Primary data (2018)

The researcher sought to establish whether a relationship existed between Responsibility and

Employee Performance, this was done with the support of the Pearson Product moment

correlation technique. The Pearson correlation (r=.0.545), sig (=.000) N (=45) that a positive

relationship exists between Responsibility and Employee Performance. The p- value of .000 that

is less than the alpha level of significance of 0.01 which implies that there is a significant

correlation. Kelly, Gable and Rise, (2001) noted that the job responsibilities set out clear

expectations about what is expected by the employer from his employees. This is the first place

to look if people aren„t doing what you want them to do. This implies that it gives a

sense of responsibility and commitment to the employee as well as leads to motivation

and job satisfaction. Job description helps in job grading. It attempts to distinguish between

65
work levels in which jobs are compared. It also helps in transfer and promotions,

adjustments of grievances and provides guidelines during interviews

4.6 Regression Analysis

Table 4. 11: Model Summary

Std. Error of the

Model R R Square Adjusted R Square Estimate

1 .682a .465 .426 .341

a. Predictors: (Constant), Responsibility, Recognition, Achievement

Source: Primary Data (2018)

The value of R being equal to 0.682 and the coefficient of determination (R squared) is equal to

0.465. The Adjusted R2 linear value is equal to (0.426). This means that intrinsic motivation

explains 42.6% variation in employee performance. The independent variables refer to

Responsibility, recognition and Achievement contribute to the employee performance in Pride

Microfinance Ltd by 0.426(42.6%). This means that intrinsic motivation in terms of

Responsibility, Recognition, Achievement have a positive effect on employee performance in

Pride Microfinance Ltd.

66
Table 4. 12: coefficients for the regression equation

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .866 .562 221 1.540 .131
Recognition .330 .146 .339 2.258 .029
Achievement .184 .173 .170 1.063 .014
Responsibility .289 .120 .321 2.401 .021
a. Dependent Variable: Employee Performance

Source: Primary Data (2018)

According to the above illustrations, the p values are <0.05 hence there is evidence to accept that

the variables of Recognition, Achievement and Responsibility significantly contribute to

Employee Performance. This is evidenced by the β coefficients as seen in table above. This

implies that a unit increases in any of the independent variables other factors constant increase

the level of Employee Performance.

A regression was done to ascertain the effect Recognition on Employee Performance taking into

consideration the standardized beta coefficient obtained as 0.339. This means that one unit

change in Recognition, results in 0.339 units increase in employee performance. The

standardized beta coefficient shows that Recognition has a positive contribution towards

Employee Performance. Therefore, the study accepted the hypothesis that, “Recognition has a

significant effect on employee performance in Pride Microfinance Limited” in line with the study

findings, Wancevick (2014), pointed out that giving people recognition is key to motivation. This

is because recognition greatly reduces turnover and absenteeism resulted from the simple

67
technique of having all employees‟ names on placards at their workstations and having each

program group work in an area in which machines and equipment were painted a different color.

From the analysis the co-efficient value for achievement was 0.170. This means that all things

being equal, when the other independent variables (recognition and responsibility) are held

constant, employee performance would increase by 0.17 units. This was statistically significant

(0.014<0.05) i.e. the variable (achievement) is making a significant unique contribution to the

prediction of the dependent variable (employee performance). Therefore, the study accepted the

hypothesis that, “Achievement has a significant effect on employee performance in Pride

Microfinance Limited. Smith, (2013) also pointed out that employee achievement normally

means something that has been accomplished and shows the efforts putting in it. Employee

achievement is the positive result while the staff finishing particular goal in a task or being

beneficial to the organization that his or her effort will be praised or certain status will be built by

the organization and themselves

From the analysis the co-efficient value for responsibility was 0.321. This means that all things

being equal, when the other independent variables (achievement and recognition) are held

constant, employee performance would increase by 0.321 units. This was statistically significant

(0.021<0.05) i.e. the variable (responsibility) is making a significant unique contribution to the

prediction of the dependent variable (employee performance). Therefore, the study accepted the

hypothesis that, “Responsibility has a significant effect on employee performance in Pride

Microfinance Limited” Responsibility at work is important to an organization‟s success as a

whole. Every employee, no matter what level of seniority is equally responsible for aiding in the

success of the company. In order to achieve the goals of the company, long and short term, it is

important that all people within the company work together and share responsibilities.

68
Employees, who work together towards the same overall goal help their workplace to become

more responsible, in turn make the business more productive and efficient as pointed out by Cox

(2016)

4.7 Conclusion

This chapter has clearly stipulated the study findings as per the objectives of the study. It has also

shown the discussions and interpretation of the study findings. The next chapter five points out

the summary and conclusion of the findings

69
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter presents the summary of the study, conclusions and recommendations of the

findings; they are presented objective by objective.

5.1 Summary of the findings

5.1.1 Recognition and employee Performance

The study examined the effect of recognition on employee performance. From the regression

analysis, recognition was found to have a positive significant effect on employee performance by

0.339(33.9%) which was statistically significant as seen from (0.029<0.05). From the correlation

analysis, the study revealed that there is a positive significant relationship between recognition

and employee Performance (r value of 0. 579, P value of 0.00). The study findings showed that

Good performing employees are recognized according to their expectations and also that

employees work harder when they are expecting to be recognized and appreciated for their

effort. It was also revealed that recognition has increased the willingness of workers to put effort

into their tasks, encouraged team work &employee morale and also increased a quicker response

to customer requirements. However it was also revealed that employees of the week are not

recognized by pining them on noticeboards

5.1.2 Achievement and employee Performance.

The study examined the effect of Achievement on employee Performance. From the regression

analysis, achievement was found to have a positive significant effect on employee performance

by 0.170(17.0%) which was statistically significant as seen from (0.014<0.05). From the

70
correlation analysis, the study revealed that there was a positive significant relationship between

achievement and employee Performance (r value of 0. 553, P value of 0.00).The study findings

showed that employees have developed a need for achievement since trust and autonomy are

present in the work environment, developed a positive behavior towards the bank and have been

able to recognize their value and worth within the bank as a result of Achievement. It was also

revealed that the employees normally feel a sense of achievement after completing a particular

goal in a task and also that promotion of work can improve the satisfaction of employees which

increases teamwork among the employees in the bank

5.1.3 Responsibility and employee Performance.

The study examined the effect of responsibility on employee Performance. From the regression

analysis, responsibility was found to have a positive significant effect on employee performance

by 0.321(17.0%) which was statistically significant as seen from (0.021<0.05). From the

correlation results, the study revealed that there was a positive significant relationship between

responsibility and employee Performance (r value of 0. 545, P value of 0.00). The study findings

showed that employees in the bank are constantly reminded of their responsibilities and duty, are

aware of the activities, skills and abilities required in performing a given job and also that every

employee, no matter what level of seniority is equally responsible for aiding in the success of the

company. The findings also revealed that job responsibilities have set out clear expectations

about what is expected by the employer from his employees, have enabled in achieving the set

objectives and also in transfers and promotions.

71
5.2 Conclusions

5.2.1 Recognition and employee Performance.

In conclusion, recognition has a positive effect on employee Performance. Good performing

employees that work harder are recognized and appreciated according to their expectations. This

increases their willingness to put effort into their tasks, team work, boost their morale and also

increase a quicker response to customer requirements.

5.1.3 Achievement and employee Performance.

Achievement has a positive effect on employee Performance. The presence of trust and

autonomy at work develops the employees need for achievement, develops a positive behaviour.

More so, employees normally feel a sense of achievement after completing a particular goal in a

task, getting a promotion of work which in turn improves the satisfaction and teamwork among

the employees in the bank

5.1.4 Responsibility and employee Performance.

Recognition has a positive effect on employee Performance. job responsibilities are clearly set

out which enable the employees in achieving the set objectives. The employees in the bank are

constantly reminded of their responsibilities and duty, are aware of the activities, skills and

abilities required in performing a given job and also that every employee, no matter what level of

seniority is equally responsible for aiding in the success of the company.

The main objective of this study was to examine the effect of intrinsic motivation on employee

performance. The study revealed that intrinsic motivation has a significant effect on employee

performance. Therefore, the predictor variables of intrinsic motivation (recognition, achievement

72
and responsibility) positively contribute to performance of employees that is through their

timeliness, efficiency, and productivity.

5.3 Recommendations

5.3.1 Recognition and employee Performance

The study revealed that employees of the week are not recognized by pining them on

noticeboards. It is recommended that the bank should start pinning the employees of the week on

notice boards so that the other employees can be motivated to work harder.

5.3.2 Achievement and employee Performance

It was also revealed from the study that employees develop a need for achievement since trust

and autonomy are present in the work environment. Therefore both the organization management

and the employees should appreciate the influence of the intrinsic factors such as achievement on

employee motivation levels. Trust can also improve by encouraging employee involvement in

the decision making and innovation, and increase the opportunities for the personal growth for

the employees among other practices

5.3.3 Responsibility and employee Performance

The study also revealed that employees at Pride Microfinance are constantly reminded of their

responsibilities, duties and what is expected of them. It is therefore recommended that the bank

should emphasize stipulating clear expectations about what is expected of the employees so as

to give a sense of responsibility and commitment to the employee which in turn leads

to motivation and job satisfaction.

73
5.8 Suggestions for Further Research

The same study could be conducted a few years from now in order to establish if there are any

changes in the effect of intrinsic motivation on employee performance within this environmental

setting.

74
75
References

Amabile, T. M. 2013. Motivational Synergy: toward new conceptualizations of intrinsic and

extrinsic motivation in the workplace. Human Resource Management Review, 3(3), 185-201.

Amin, M.E., 2005. Social science research: Conception, methodology and analysis.

Baah, K., & Amoako, G. K. 2011. Application of Frederick Herzberg‟s two-factor theory in

assessing and understanding employee motivation at work: A Ghanaian Perspective. European

Journal of Business and Management, 3(9), 1–8.

Barrick & Mount, 2011, A review of employee motivation theories and their implications for

employee retention within organizations. Journal of American Academy of Business, 5(1/2),

pp.52-63

Baruch, 2004. An Introduction to Motivation, New York: Van Nostrand Reindhold Co.Inc.

Belias D, Koustelios A, Sdrolias L, Aspridis G 2015 Job Satisfaction, Role Conflict and

Autonomy of employees in the Greek Banking Organization. Procedia - Social and Behavioral

Sciences 175: 324-333.

Bouzeghoub, Lindner JR and drolias S 2004 Understanding employee motivation. Journal of

extension. 1998 Jun;36(3):1-8.

Breaugh 2011, Technological differences in job characteristics, employee satisfaction, and

motivation: A synthesis of job design research and sociotechnical systems

theory. Organizational Behavior and Human Performance, 19(1), pp.18-42.

Cox L.E. 2016 Effect of workload history on task performance. Human Factor

76
Eisenberger, R; Jones, JR; Stinglhamber. 2015, „Flow Experiences at Work: For High Need

Achievers Alone?,‟ Journal of organizational Behaviour, 26:755-775.

Eppler, 2003, Employee motivation: A powerful new model. Harvard business review, 86(7/8),

p.78.

Estes, B. & Polnick, B. 2012. Examining motivation theory in higher education: An expectancy

theory analysis of tenured faculty productivity. International Journal of Management, Business,

and Administration, 15(1), 1-7.

Furnham, A., Forde, L. and Ferrari, K., 1998. Personality and work motivation. Personality and

individual differences, 26(6), pp.1035-1043.

George, J. M. & Jones, G. R. 2012. Understanding and Managing Organizational Behaviour.

6th edition. Reading, MA: Prentice Hall.

George, J.M., & Jones, G.R. 2012. Organizational behaviour. (3rd ed.). New Jersey: Prentice

Hall.

Giancola F, 2014. Self-determined work motivation predicts job outcomes, but what predicts

self-determined work motivation? Journal of world. (pp. 1161-1162). Thousand Oaks, CA:

SAGE Publications, Inc.

Grant, A.M. and Gino, F., 2010. A little thanks goes a long way: Explaining why gratitude

expressions motivate prosocial behavior. Journal of personality and social psychology, 98(6),

p.946.

77
Griffin, R.W. O'Leary-Kelly, A.M., and Glew, D.J., 1981. Organization-motivated aggression: A

research framework. Academy of management review, 21(1), pp.225-253.

Harter F, Steers, RM, Mowday, RT, and Shapiro, D 2002, „The Future of Work Motivation

Theory,‟ Academy of Management Review 29:379-387.

Herzberg, F., 1968. One more time: How do you motivate employees.

Herzberg, F.M, 1959. The motivation to work, 2.

Hussain, S. 2011. Workload and Performance of Employees. Journal of Contemporary Research

In Business, 3(5), 256 -267

Imran 2017, Impact of Intrinsic Factors of Motivation on Employees Intention to Leave: A Case

Study of Health Department District Okara Punjab, Pakistan, Arabian Journal of Business and

Management Review

Kelly, Gable and Rise, 2001 Self-determination theory and the facilitation of intrinsic

motivation, social development, and well-being. American psychologist, 55(1), p.68

Komaki, J.L., Coombs, T. and Schepman, S., 1996. Motivational implications of reinforcement

theory. Motivation and leadership at work, 34, p.52.

Kovach, K.A., 1995. Employee motivation: Addressing a crucial factor in your organization's

performance. Employment Relations Today, 22(2), pp.93-107.

Krejcie, R.V. and Morgan, D.W., 1970. Determining sample size for research

activities. Educational and psychological measurement, 30(3), pp.607-610.

78
Lane, K., Esser, J., Holte, B., & McCusker, M. M. 2010. A study of nurse faculty job satisfaction

in community colleges in Florida. Teaching and Learning in Nursing, 5, 16–26.

Lardner. S. 2015, Effective reward ensures effective engagement. Strategic HR Review 14: 131-

134.

Lazear, 2010 Performance pay and productivity. American Economic Review, 90(5), pp.1346-

1361.

Lin, H. F. 2007. Effects of extrinsic and intrinsic motivation on employee knowledge sharing

intentions. Journal of information science, 33(2), 135-149.

Lindner, J.R., 1998. Understanding employee motivation. Journal of extension, 36(3), pp.1-8)

lippo 1984 Motivations and morphological variations in clipped personal names: A cross-

linguistic approach. Lingua, 206, pp.35-4

Lo, H.M. , Li, H.C. 2016, Exploring the Effect of Staff Achievement on Job Satisfaction in Hong

Kong Residential Clubhouse. J Tourism Hospit 5: 259. doi: 10.4172/2167-0269.1000259

Luthans, F., & Kreitner, R. 2015. Organizational behavior modification and beyond. Glenview,

IL: Scott, Foresman.

Mabonga, J., 2010. Module II Programmes in Kenya-Challenges of Access and Prospects.

Miner, R., 2010. People without Jobs, Jobs without People: Canada‟s Future Labour

Market. Toronto: Miner Management Consultants.

Mugenda, O and Mugenda 1999. Research methods: Quantitative and qualitative approaches.

79
Nelson 2005, Students‟ motivation and learning of science in a multi-user virtual environment.

In American Educational Research Association Conference, Montreal, Canada (pp. 1-8).

Oparanma, 2016, HRM Practice and Employee Performance: Mediation of Ability, Motivation

and Opportunity. Asian Journal of Multidisciplinary Studies, 4(6).

Ottemann, R., & Luthans, F. 2015. An experimental analysis of the effectiveness of an

organizational modification program in industry, 140-142.

Pelit E, Ozturk Y, Arslanturk Y 2011 The effects of employee empowerment on employee job

satisfaction. Emerald 23: 784-798.

Pelit, E., Öztürk, Y. and Arslantürk, Y., 2011. The effects of employee empowerment on

employee job satisfaction: A study on hotels in Turkey. International Journal of Contemporary

Hospitality Management, 23(6), pp.784-802.

Pride Microfinance Human Resource 2018

Purvis, R. L., Zagenczyk, T. J. & McCray, G. E. 2015. What's in it for me? Using expectancy

theory and climate to explain stakeholder participation, its direction and intensity. International

Journal of Project Management, 33(1), 3-14.

Ramlall, S.J., 2008. Enhancing employee performance through positive organizational

behavior. Journal of Applied Social Psychology, 38(6), pp.1580-1600.

Rast, S., & Tourani, A. 2012. Evaluation of employees‟ job satisfaction and role of gender

difference: An empirical study at airline industry in Iran. International Journal of Business and

Social Science, 3, 91–100.

80
Rhoades, L., Eisenberger, R., August 2012. Perceived organizational support: A review of the

literature. Journal of Applied Psychology 87 (4), 698–714.

Rosha, 2005, Intrinsic and extrinsic motivations: Classic definitions and new

directions. Contemporary educational psychology, 25(1), pp.54-67.

Ross CM, Young SJ, Sturts JR, Kim KT 2014, Personal Correlates Impacting Job Satisfaction

Among Campus Recreational Sport Employees International Journal of Sport Management

Recreation & Tourism 14: 68-96.

Ruthankoon, R. and Olu Ogunlana, S., 2003. Testing Herzberg‟s two-factor theory in the Thai

construction industry. Engineering, Construction and Architectural Management, 10(5), pp.333-

341.

Schedlitzki, D. & Edwards, G. (2014). Studying leadership: Traditional and critical approaches.

London: SAGE Publications Ltd.

Scott and Westbrook, 2016 New strategic tools for supply chain management. International

Journal of Physical Distribution & Logistics Management, 21(1), pp.23-33

Sekaran, U., 2003. Research methods for business . Hoboken.

Shearer, 2014. Are you Focusing both Employees and Organizational Outcomes. Organizational

Health Initiative at Saint Louis 67 University, 1-5.

Smith V 2013; Raising retention and achievement in work‐based learning. Education + Training

45: 273-279.

81
Stajkovic, A.D. and Luthans, F., 2003. Social cognitive theory and self-efficacy: Implications for

motivation theory and practice. Motivation and work behavior, 126, p.140.

Storey, D.J., 2011. Optimism and chance: The elephants in the entrepreneurship

room. International Small Business Journal, 29(4), pp.303-32.

Vlosky, P. & Aguilar, X. 2010. A model of employee satisfaction: Gender differences in cooperative

extension. Journal of Extension, 47(2):1-15.

Voss E,. Schunk, D.H., Pintrich, P.R. and Meece, J.L., 2012. Motivation in education: Theory,

research, and application

Vroom, V. H. 2014. Work motivation. New York: Wiley.

Wagner, R., Harter, J. K., 2016. The Elements of Great Managing. New York: Gallup Press.

pg12:

Watson I 2012 My Reward scheme boosts productivity at RS. Strategic HR Review, 11.

Wiley, C., 1997. What motivates employees according to over 40 years of motivation

surveys. International Journal of Manpower, 18(3), pp.263-280.

82
Appendix I: Questionnaire

Introduction

I am a student of UMU and currently collecting data for compilation for my dissertation as a
partial requirement. The research I am conducting relates to THE EFFECT OF INTRINSIC
MOTIVATION ON EMPLOYEE PERFORMANCE OF AN ORGANIZATION: A CASE
STUDY OF PRIDE MICROFINANCE LTD. The information is purely for academic
purposes and all the answers will be handled with utmost confidentiality and you do not need to
indicate your identity anywhere on the questionnaire. I therefore humbly request that you
complete this questionnaire correctly in the spaces provided or options given.

SECTION A: Demographic Characteristics

Tick / fill in the most appropriate answer.

1. Gender:
a) Female b) Male
2. Age
a) Below 20 years b) 20 – 25 years c) 26 – 30 years
d) 31 – 35years e) 36 – 40 Years f) Above 40 years.

3. Highest level of education Qualification

a) Certificate b) Diploma c) Degree d) Masters

e) Others (specify) ……………..........................

Please indicate the extent to which you agree or disagree to the following statements‟ by ticking
the appropriate number.

Strongly
Strongly agree Agree Not sure Disagree
Disagree
5 4 3 2 1

83
 SECTION B: Intrinsic Motivation

Recognition 5 4 3 2 1
B1 Good performing employees are recognized according to their
expectations
B2 Recognition has increased the willingness of workers to put effort
into their tasks
B3 There is high employee morale which has encouraged teamwork
as a result of recognition
B4 employees work harder when they are expecting to be recognized
and appreciated for their effort
B5 We now have a quicker response to customer requirements as a
result of recognition
B6 Employees of the week are recognized by pining them on the
noticeboards
Achievement

Employees have developed a need for achievement since trust and

A1
autonomy are present in the work environment
A2 Employees have developed a positive behavior towards the bank
as a result of achievement
A3 We normally feel a sense of achievement after completing a
particular goal in a task

A4 Promotion of rank can improve the satisfaction of employees

A5 Employees have been able to recognize their value and worth

within the bank as a result of Achievement.
A6 There is more teamwork among the employees in the bank as a

result of Achievement.

84
Responsibility
E1 We are constantly reminded of our responsibilities and duties

E2 We are aware of the activities, skills and abilities required in

performing a given job
E3 Job responsibilities have set out clear expectations about what is
expected by the employer from his employees

E4 Responsibility also helps in transfer and promotions

E5 Every employee, no matter what level of seniority is equally
responsible for aiding in the success of the company
E6 Job responsibilities have enabled us to achieve the set objectives

SECTION C: Employee Performance

No Employee Performance 5 4 3 2 1
Timeliness
P1 We are now able to do more tasks in time
P2 Services are delivered in time and are said to be good

P3 we are able to respond to the customer complaints in time

Efficiency

P4 The human resource costs have been reduced

P5 The quality of work produced has improved

P6 Our employees are more efficient

Productivity
P7 The client base has improved the loan portfolio
P8 The number of clients registering have increased
P9 We have achieved budget targets
THANK YOU FOR YOUR TIME AND COOPERATION

85
Appendix 2: Interview guide for Human Resource officer, Managers and Supervisors
I am a student of UMU and currently collecting data for compilation for my dissertation as a
partial requirement. The research I am conducting relates THE EFFECT OF INTRINSIC
MOTIVATION ON EMPLOYEE PERFORMANCE OF AN ORGANIZATION: A CASE
STUDY OF PRIDE MICROFINANCE LTD. I am here to conduct an interview for a
maximum of 15 minutes. You have been selected to share with us your experience and make this
study successful. Information given will be treated with utmost confidentiality.
1 What are the various motivation strategies used in pride Microfinance?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
2 In your view, how has recognition improved the employee performance in Pride

Microfinance Limited?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
3. How are employees given Job responsibilities in Pride Microfinance?

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

4. What are the challenges that you face in motivating employees in your organization?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
5. What recommendations can you give to improve motivation and performance of employees in

your organization?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
Thanks for your time

86
Appendix 3: Sample Size Determination
Note: “N” is population size and “S” is sample size.

N S N S N S N S N S
10 10 100 80 280 162 800 260 2800 338
15 14 110 86 290 165 850 265 3000 341
20 19 120 92 300 169 900 269 3500 246
25 24 130 97 320 175 950 274 4000 351
30 28 140 103 340 181 1000 278 4500 351
35 32 150 108 360 186 1100 285 5000 357
40 36 160 113 380 181 1200 291 6000 361
45 40 180 118 400 196 1300 297 7000 364
50 44 190 123 420 201 1400 302 8000 367
55 48 200 127 440 205 1500 306 9000 368
60 52 210 132 460 210 1600 310 10000 373
65 56 220 136 480 214 1700 313 15000 375
70 59 230 140 500 217 1800 317 20000 377
75 63 240 144 550 225 1900 320 30000 379
80 66 250 148 600 234 2000 322 40000 380
85 70 260 152 650 242 2200 327 50000 381
90 73 270 155 700 248 2400 331 75000 382
95 76 270 159 750 256 2600 335 100000 384
Source: Krejcie, R. V., & Morgan, D.W. (1970).

87