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INTRODUCTION The job of a manager in the workplace is to get things done through employees. To do

this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. This research work will focus on the meaning of motivation, motivation theory and practice, various theories regarding human nature in general and motivation in particular. Included are literature review on the practical aspects of motivation in the workplace and the research that has been undertaken in this field. (Manfred, 1999) 1.2 STATEMENT OF THE PROBLEM Manfred (1999) observed that the problem can be placed within human resources management perspective as there may be issue catering to research literature for instance, there may be lack of support into employee motivation for positive performance indicator in the organization, for example, the present of too much authority can affect employee performance due to some issues of motivation, affecting employees motivation level. An organization whose employees have low motivation is completely vulnerable to both the internal and exchange challenges because its employees are not going the extra mile to maintain the organizations stability. It is also believed and tested that lack of motivation equates to less work being accomplished. 1.3 PURPOSE OF THE STUDY The purpose of this study is to find out the effects of motivation on job performance in the insurance industry. To this end, the study will address itself to a number of specific problems which include the following: (Drucker and Bennett 2000) What is motivation and how does it affect performance? What are some of the motivation effects toward employee performance? Is there a positive or negative effect?

What are several ways of measuring motivation to come up with effective employee performance? How does it measured for the purpose of recognizing performance success? REVIEW OF RELATED LITERATURE 2.1 EXPLANATION OF MOTIVATION According to Drucker and Bennett (2000), motivation is the creation of stimuli incentives, and working environments which enable people to perform to the best of their ability. Motivation is an organization's life-blood; yet "motivation," as a business subject, is largely ignored. Even when not ignored, it certainly is not a focal point for strategic thinking. Seldom is a clear, coherent, and overall approach taken to the challenge of motivating people. Most organizations don't give it much thought until something starts to go wrong. Pain gets people's attention. 2.2 EMPLOYEE MOTIVATION: THEORY AND PRACTICE The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. (Drucker and Bennett 2000) An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. These articles on motivation theory and practice concentrate on various theories regarding human nature in general and motivation in particular. Included are articles on the practical aspects of motivation in the workplace and the research that has been undertaken in this field, notably by Douglas McGregor (theory y), Frederick Herzberg (two factor motivation hygiene theory,) Abraham Maslow (theory z, hierarchy of needs), Elton Mayo (Hawthorne Experiments) Chris Argyris Rensis Likert and David McClelland (achievement motivation.) 2.3 MOTIVATION IS THE KEY TO PERFORMANCE IMPROVEMENT Minzberg (1999) opined that there is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in 2

the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus:

Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. (Minzberg 1999)

Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance

These are the basic strategies, though the mix in the final 'recipe' will vary from workplace situation to situation. Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must conform to the corporate policy of the organization. The motivational system must be tailored to the situation and to the organization. In one of the most elaborate studies on employee motivation, involving 31,000 men and 13,000 women, the Minneapolis Gas Company sought to determine what their potential employees desire most from a job. This study was carried out during a 20 year period from 1945 to 1965 and was quite revealing. The ratings for the various factors differed only slightly between men and women, but both groups considered security as the highest rated factor. The next three factors were; (Minzberg 1999)

advancement type of work company - proud to work for Surprisingly, factors such as pay, benefits and working conditions were given a low

rating by both groups. So after all, and contrary to common belief, money is not the prime motivator. (Though this should not be regarded as a signal to reward employees poorly or unfairly.) 2.4 EFFECTS OF MOTIVATION ON EMPLOYEES PERFORMANCE Steinmetz, (1983) says what really motivates employees to be productive? Is it money? Recognition? Job satisfaction? Benefits? Opportunities? Employees are recognized as the most crucial asset of todays organizations by both practitioners and academics. Employee satisfaction is stressed as one of the most important drivers of continuous improvement and satisfied customers in most classical total quality management (TQM) literature. But what really motivates employees to be productive in their jobs? Two often mentioned motivators are money and job satisfaction. We hear that better pay motivates employees to be more productive. We also hear that happy employees are productive employees. But is there any truth to these sayings or are they just fictional beliefs? Anyone who has ever taken a course in social science has discovered that common sense beliefs are not always validated by scientific research. In some cases, common sense beliefs are just plain wrong. Take opposites attract, for example. This is not true. An overwhelming amount of research indicates that we tend to be attracted to people who are similar to ourselves. Thus, birds of a feather flock together is true; but opposites attract is false. The only way to know if money and job satisfaction really influence productivity is to look at the results of scientific studies. Lets begin with what researchers have discovered about money. (Steinmetz, 1983) Q: Does money motivate employees? A: Yes...and no. Not exactly a definitive answer, is it? Research studies sometimes have conflicting results. The reason has to do with the complexity of human behavior. Take for example the early research examining the relationship between viewing violent content on television and aggressive behavior in children. Early studies indicated that there was a relationship between 4

these two variables and those children who watched violent content on television behaved more aggressively. However, there were other studies that indicated watching violent television programs did not lead to increased aggressiveness in children. Why the contradiction? Think about it. Are all children alike? Of course not. Children are different and they vary in their tendencies to behave aggressively. (Steinmetz, 1983) Some children behave aggressively on a regular basis and others will not even harm bugs they find in their homes, preferring to place them outside and set them free. Do you think viewing violent content on television has the same impact on these two types of children? The answer is no. Children who already possess aggressive tendencies are much more likely to behave aggressively after viewing violent television programs compared to children who are low in aggressive tendencies. There is another reason why the early studies resulted in contradictory findings. The impact of viewing violent content on television is also determined by the amount of time spent watching such content. Later studies revealed that viewing violent television content over a period of years can result in greater levels of aggressive behavior in children, even in those who initially were not very aggressive. (Steinmetz, 1983) So, what does this have to do with employees? Employee behavior is also very complex. When we ask whether or not money is a motivator we are asking a very broad question that makes predicting behavior difficult. Money is a motivator to an extent. I enjoy my work, but lets face it...how many of us would keep doing our jobs if our employers were no longer able to pay us but asked us to stay on as full-time volunteers? Greenberg (1992) observed that money is a crucial incentive to work motivation. It is a medium of exchange and the means by which employees can purchase things to satisfy their needs and desires. It also serves as a scorecard by which employees assess the value that the organization places on their services. Employees can also compare their value to others based on their pay. In addition to its exchange value, money also has symbolic value. John Stacey Adams, a behavioral and workplace psychologist, developed equity theory to explain this value. According to this theory, employees try to maintain equity between the inputs they bring to their job and the outcomes they receive from it. (Greenberg 1992) This is compared to the perceived inputs and outputs of others in the organization. The theory states that employees perceive they are being treated fairly when the ratio of their inputs to their outcomes is equivalent to other 5

employees they work with. Fair treatment motivates employees to maintain this fairness within the relationships of their co-workers and the organization. Reinforcement and expectancy theories also attest to the motivating power of money. According to reinforcement theory, if pay is contingent on performance, it will encourage employees to maintain high levels of effort. According to expectancy theory, money will motivate to the extent that employees perceive it as satisfying their personal goals and to the extent they perceive their pay as being dependent upon performance criteria. Some of the best evidence that money motivates employees to perform comes from the research of industrial psychologist Edwin Locke, Ph.D., who is the Deans Professor Emeritus of Leadership and Motivation at the R.H. Smith School of Business at the University of Maryland. Locke compared four methods of motivating employee performance: money, goal setting, participation in decision making, and redesigning jobs to give workers more challenge and responsibility. He found that the average improvement in performance from money was 30%, compared to an increase in performance by 16% for goal setting, less than one percent improvement from participation in decision making, and a 17% improvement from job redesign. In addition, Locke reviewed numerous motivation studies and found that when money was used as a method of motivation it always resulted in some improvement in employee performance. (Greenberg 1992) It is clear that money is a motivator of employee productivity. However, like the relationship between childrens viewing of violent television content and aggressive behavior, the relationship is not a simple one. Money can motivate some people under some conditions. In order for money to motivate an employees performance four conditions must be met. 1. 2. 3. 4. Money must be important to the employee. The employee must perceive money as being a direct reward for performance. The employee must perceive the marginal amount of money offered for the performance as Management must have the discretion to reward high performing employees with more

significant. money. It is rare for all four of these conditions to be simultaneously met. Not all employees are motivated by money to increase performance. Employees who are intrinsically motivated are unlikely to be influenced by monetary incentives. In addition, money is likely to be a strong motivator for employees who are focused on meeting lower-order needs (basic needs critical to survival) but it is not likely to affect those who have all of their lower-order needs met. This is 6

consistent with research by psychologists Ed Diener and Martin Seligman, as well as Daniel Kahneman and his colleagues, indicating that after people have the basic necessities of life, having more money does not increase happiness much at all. (Greenberg 1992) As far as the second condition goes, pay increases are often determined by community pay standards, cost-of-living, and the organizations current and future financial prospects rather than by each employees level of performance. In todays economy, many employees are not getting raises and for those who are, the amount of increase taken home after taxes is not likely to be perceived as a significant reward for performance. Finally, managers often have only a small amount of discretion within which they can reward employees for higher performance. Thus, since it is unlikely that all of the conditions necessary to make money a motivator for higher performance will be met, it is unlikely that money can successfully be used to increase performance. (Greenberg, 1992) Job Satisfaction Drucker and Bennett (2000) say job satisfaction highly satisfied employees more productive compared to their less satisfied coworkers? For some time researchers went back and forth with their conclusions on this issue. Early research led scientists to believe that satisfaction did influence productivity but later research was unclear in regards to causal affects. As with the relationship between television violence and aggression, the relationship is complex. Fortunately, the most recent research on this question has begun to clarify the relationship. Recent researchers have benefited by having previous studies as a foundation to build on, enabling them to identify possible mediating variables. In addition, statistical techniques have continued to improve in their ability to clarify complex relationships among variables. So what are recent studies indicating? Recent research by organizational scientist Timothy Judge and his colleagues has demonstrated that employees overall job satisfaction is correlated with their work performance. Barry Staw and his colleagues found that employee job satisfaction predicts subsequent employee performance when other variables (such as education level and age) are controlled for. In an article published in Organizational Behavior and Human Performance, Muhammad Jamal reported that job dissatisfaction is associated with poorer work performance. (Drucker and Bennett 2000)

So we know that money can be a motivator, but it is unlikely that we will be able to meet all the necessary conditions to use it as such. But we also know there is a connection between employee satisfaction and performance. If we want our employees to be as productive as possible (and who does not?) then where do we go from here? How do we go about insuring that our employees are satisfied? The answer lies in conducting our own research. Weve already established that human behavior is diverse and the relationship between attitudes (such as job satisfaction) and behavior (such as job performance) are complex. The only way to know what drives the satisfaction of our own employees is to conduct employee research. I recommend finding a firm that has standardized instruments to measure employee perceptions. You could create your own, but why reinvent the wheel? Firms that employ organizational psychologists trained at the doctoral-level should not only have standardized instruments available, but should also be able to provide you with benchmarking data as well as inferential statistics to identify the drivers of your employees behavior. (Drucker and Bennett 2000) Recently the National Business Research Institute (NBRI) conducted an employee survey for a large electronics retailer. Organizational psychologists at this research firm used a method called the Root Cause Analysis to identify the items that were driving employee perceptions. The test revealed that three of the survey items were driving employee perceptions on 62% of the total survey items. These items were: Management is approachable, easy to talk with. I am given the resources and equipment to do my job. Management keeps me informed about important issues and changes.

Empowered with this information, management at this company knows exactly which areas to address in order to enhance employee satisfaction and increase performance Unintended effect on results The previous point stressed the need to consider resources other than labor, but managers, even when considering labor, are often apt to be overly concerned with labor's use of the 'hardware' in a business, whereas labor should be viewed more of a resource in its own right, the 'software' of the organization. Some of the partial measures of productivity in their desire to encourage the service of the hardware ignore almost completely the personal goals of individuals 8

in organizations. Elton & Parris (2004) showed how incentive schemes based on direct work measurement can actually serve to hold down productivity, as when employees did not disclose 'loose' rates and by working at lower performances than those at which 'tight' rates made bonus payments marginal. In the same study he also showed how individual employees worked out for themselves their own satisfactions from the job, regardless of the objectives of management. Another related angle is that by emphasizing those aspects of work, which are readily measured, and by rewarding improvements in those aspects, the importance of other aspects of the work, such as discretion, initiative and flexibility, will diminish. Elton & Parris (2004) showed this quite clearly. For example, by focusing attention and financial reward on speed, effort and efficiency, the employee is discouraged from using discretion or initiative. Finally, one effect of measurement based on direct work, especially where it is tied to a bonus payment, is to increase the amount of activity, but not necessarily to increase the amount of useful work done. Financial benefits do not always equate with cost savings. In service operations, where there is no clear output measure, become subjective. For example one sewage works, which was studied, showed a substantial increase in 'productivity', but this was obtained from a growth in relatively useless work, for example cutting the grass three times a week rather than once. There is no financial benefit to the organization from such 'productivity' improvement. 2.5 POWERFUL MOTIVATIONAL TOOLS THAT GUARANTEE EFFECTIVENESS IN RUNNING ORGANIZATION Motivation is the common factor among those who are high achievers. Finding the tools to achieve aims and objectives of an organization, developing a vision, and becoming highly motivated can lead organization towards a successful and exciting business life. Here are some motivational tools that can result in running organization effectively: 1. Job Security If everybody had what it takes to be an entrepreneur, then there would be no General Electric or Toyota and we would all be buying products from artisans and craftworkers. Thankfully, many people prefer to be part of a large organization and can be more productive when they get to focus on doing their job instead of worrying about developing a business plan or marketing strategy. Telling people that they are lucky to have a job creates an atmosphere of fear and worry that decreases job performance. Instead, tell your employees that the company is 9

lucky to have such a skilled and committed workforce and people will take pride in their work and their company. ii. Increased Responsibility We all know that some employees lack ambition and have no desire to advance on the job, but the vast majority of workers want a chance to take on more responsibility and add more value to the organization. Always be aware of opportunities for training that will equip your employees with the skills and tools they will need to advance in their career. Always try to fill open positions with internal applicants before looking for an outside candidate. This will create a culture of career development and preserve institutional memory and organizational knowledge so that it can be transferred to rising employees as they advance in their own career. iii. Good Wages Robert Bosch, founder of the world's largest automobile parts supplier, said, "I do not pay good wages because I have a lot of money; I have a lot of money because I pay good wages." If you want motivated, high productive employees you have to pay such people according to their ability and performance. Good employees are motivated by more than just good wages, but never allow low wages to be the wedge a competitor can use to steal away your best people. iv. Good Working Conditions If you want to get the most out of people you need to create an environment that facilitates success. At the minimum, you must offer a safe, clean, and sanitary work site. To get the most out of employees, help them take pride in their workspace, even if it is only a cubicle or workstation. Allow people to personalize their own work sites with photos or small trinkets so they will feel like they have a place that belongs solely to them. v. Being Part of a Team part of a dysfunctional team is an emotionally draining experience that results in low morale, low productivity, and high turnover. The great coach, Vince Lombardi, once remarked, "Individual commitment to a group effort -- that is what makes a team work, a company work, a society work, a civilization work." We are all social beings and we all want to be part of a healthy team where we can give and receive support, help, and encouragement. Organizations

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can harness this natural human desire by aligning employee efforts to achieve goals that are mutually beneficial to both the organization and its employees.

vi. Help with Personal Problems How many times have you heard about a bad boss who told their employees to leave their problems at the door so they could focus on their job? Unfortunately, they probably left their motivation and productivity at the door as well. Smart managers know that it is not their job to be a counselor or therapist, but it is there job to recognize when one of their employees is having personal problems that are affecting their job performance. They need to have open lines of honest communication so that employees can feel encouraged to ask for help and then be directed to their Human Resources Department or their Employee Assistance Programs. CONCLUSION Motivational tools are essential to the success of any company big or small. In the modern workplace human resources are valued above all others. Motivational tools enable employee to be productive, happy and committed. The spin off of this includes reduced employee turnover, results driven employees, company loyalty and work place harmony. These are just a few suggested motivational tools for encouraging employees to contribute their ideas for improving their organization. Implemented on their own, each of these practices would have limited impact. The key is to use a multifaceted approach that continually reinforces the fact that employees ideas are welcome, valued, and rewarded. It would be awesome to see how much an organizations effectiveness could be improved if all managers were to systematically seek out and implement these kinds of suggestions from front-line employees. By helping your management team optimize employee emotions, you will be helping your organization make a significant impact on the primary sources of competitive advantage in todays marketplace.

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REFERENCES

Drucker k. and R Bennett (2000): M+E Human Resources Management Handbooks, at the Smith Institute in London ISBN 0-7121-0844-0 Elton Mayo & Parris K (2004). The Affluent Worker: Attitudes and Behaviour Cambridge: Cambridge University Press. F. Herzberg, B. Mausner and B. Snyderma N.Y., John Wiley & Sons, (2001), The Motivation to Work, Penny Ltd, USA. Greenberg D. (1992) Freedom Nurtures Culture and Learning, Education in America: A View From Sudbury Valley. Pp. 35-38 http://wps.prenhall.com/bp_robbins_eob_9/64/16396/4197506.cw/index.html Manfred Davidmann Work,(1999), Remuneration and Motivation of Directors Social Organisation Ltd, Manfred Davidmann , The Will to Work, http://www.solhaam.org/ Minzberg Henry (1999): who are your Motivated Workers? Harvard University Business Review. Pp.25-30 Steinmetz, L.L. (1983) Nice Guys Finish Last: Management Myths and Reality. Boulder, Colorado: Horizon Publications Inc. (p.43-44) www.wikipedia.com www.google.com.ng

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