EFFECTS OF MOTIVATION ON EMPLOYEES PERFORMANCE AT NATIONAL

INVESTMENT BANK LIMITED, CAPE COAST BRANCH.

SAMUEL OWUSU ADU

REXFORD ESSONG

JOSEPH K. MIREKU

A DISSERTATION SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY STUDIES,

CAPE COAST POLYTECHNIC IN PARTIAL FULFILMENT OF THE AWARD OF HIGHER

NATIONAL DIPLOMA IN ACCOUNTANCY STUDIES.

JUNE, 2014
 DECLARATION

We hereby declare that this project work is the result of our own original research work

undertaken under the supervision of the undersigned and that all works consulted have been

acknowledged.

Names of Students Index Numbers Signatures Date

Samuel Owusu Adu 0211-01-271 …………. ………….

Rexford Essong 0211-01-267 …………. ………….

Joseph K. Mireku 0211-01-056 …………. ………….

SUPERVISOR’S DECLARATION

I hereby declare that the preparation and presentation of the project work was supervised in

accordance with the guidelines on supervision of project work laid down by Cape Coast

Polytechnic.

Supervisor’s Name

Akwasi Addai Boateng ………….. …………..

Head of Department’s Name

John K. Mbroh ………….. …………..

ABSTRACT

The success or failure of any business as a matter of fact depends largely on its employees; thus

human resources are very essential to the organization as they are the key to prosperity,

productivity and performance. How employees are perceived, treated and how they feel about

themselves and ultimately their output directly or indirectly has an impact on their performance

and development of the organization. The aim of this study was to find out the effect of

motivation on the performance of National Investment Bank Limited workers. The study adopted

the mixed approach of research design and the case study method to provide answers to research

questions formulated. A non-probability design with the purposive sampling technique was

employed to select and sample opinion of National Investment Bank Limited, Cape Coast

Branch on the issue. Data obtained from the field survey was analysed using Statistical Package

for Social Sciences (SPSS). The study revealed that indeed there is a relationship between

motivation and performance and aside the known fact that money is the key amongst

motivational factors to employees, it was realised that employees are gradually becoming

particular about trust, respect and high expectation, recognition, appreciation and good working

environment. The study therefore concluded that great progresses be made to motivate all staff to

enhance performance. The researchers recommend that management attaches more importance

to issues of employee motivation to make the institution survive amongst its competitors.
 ACKNOWLEDGEMENT

It is quite natural that no academic and research work of this nature can be successfully

accomplished without the least form of assistance and contribution from any quarter. We have

realised the logic in this notion and magnitude of the assignment relied on certain personalities to

produce this work.

We are grateful to the almighty God for giving us strength, wisdom, and direction in coming out

with this dissertation, we are also indebted to Mr. Akwasi Addai Boateng of Accountancy

Department, Cape Coast Polytechnic, our supervisor for the useful suggestions, criticisms,

corrections and contributions and the pains to read through this piece of work. We are also very

grateful to all the staff at National Investment Bank Limited, Cape Coast Branch.

Last but not the least, to our parents for their financial, moral support and words of

encouragement offered us. We say a big thank you to you all.

 DEDICATION

This piece of academic work is dedicated to the almighty God for his guidance and protection

throughout the undertaking of this project work.

It is also dedicated to our loved ones especially to our parents for their morale, prayers and

financial support and our Lecturers and all those who contributed in one way or the other to

make this work a success.

TABLE OF CONTENTS

Title Page i

Statement of Authenticity ii

Abstract iii

Acknowledgement iv

Dedication v

Table of Content vi

CHAPTER ONE

INTRODUCTION

1.1 Background of the study 1

1.2 Statement of problem 3

1.3 Objectives of the study 4

1.4 Research Questions 4

1.5 Methodology 4

1.6 Significance of the study 5

1.7 Scope of the study 5

1.8 Organisation of the study 6

1.9 CHAPTER TWO

LIRETATURE REVIEW

2.0 Introduction 8

2.1 The Concept of Motivation 8

2.2 Types of Motivation 9

2.3 Factors Affecting Workplace Motivation 10

2.4 Motivation Theories 10

2.4.1 Maslow’s Hierarchy of Needs 11

2.4.2 Organisational/ Managerial Application of Maslow’s Need Theory 14

2.4.3 Alderfer’s Hierarchy of Motivational Needs 14

2.4.4 Two-Factor Theory 16

2.4.5 Acquired Needs Theory 17

2.4.6 Equity Theory 19

2.4.7 Expectancy Theory 20

2.4.8 Frederick Winslow Taylor 21

2.5 Performance 22

2.5.1 How Employee Motivation Affects Employees Performance 23

2.5.2 Types of Reward 23

2.5.3 Monetary Rewards 24

2.5.4 Non-Monetary Rewards 24

2.5.5 Ways of Motivating Employees 24

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction 27

3.1 Research Design 27

3.2 Sources of Data 28

3.3 The Study Population 28

3.4 Sampling and Sampling Techniques 28

3.5 Data Collection Techniques 29

3.6 Data Analysis Approaches 30

3.7 Ethics and Business Research 30

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION OF FINDINGS

4.1 Introduction 32
4.2 Background of the Staff 32

4.3 Ages of the Staff 32

4.4 Educational Background of Staff 33

4.5 Number of Years Spent on Job 35

4.6 Level of Motivation of Staff 35

4.7 Motivational Factors 37

4.8 Effect of Motivation on Performance 38

4.9 Staff Preparedness to Go Extra-Mile in Delighting Customers 39

4.9.10 Staff Reward at National Investment Bank Ltd against Others in the Banking 39

Sector

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction 41

5.2 Summary 41

5.3 Conclusion 43

5.4 Recommendations 44

REFERENCE 46
APPENDIX 48

LIST OF TABLES

Table 2.2 Classification of Herzberg’s Two Factor Theory………………………………..17

Table 4.1 Distribution of Respondents by Age……………………………………………..33

Table 4.2 Distribution of Respondents Educational Level Staff……………………………34

Table 4.3 Length of Service of the Staff…………………………………………………….35

Table 4.4 Level of Motivation of Staff………………………………………………………36

Table 4.5 Responses Regarding Factors of Motivation...........................................................37

Table 4.6 Perceived Rate of Reward and Compensation…………………………………….40

LIST OF FIGURES

Figure 2.1 Maslow’s Hierarchy of Needs……………………………………………………..13

Figure 2.2 Model of Acquired Needs…………………………………………………………18

Figure 4.1 Ages of the Staff…………………………………………………………………....33

Figure 4.2 Educational Background of Staff…………………………………………………..34

Figure 4.3 Level of Motivation of Staff………………………………………………………..36

Figure 4.4 Perceived Rate of Reward and Compensation……………………………………...40

 CHAPTER ONE

1.0 INRODUCTION

1.1 BACKGROUND OF THE STUDY

The success of any business being it sole proprietorship, partnership or company depends on it

employees. Even with the appropriate organisational structure and best strategies in place, an

organization will be effective only if it members are motivated to perform at their best level of

working abilities. There are two main types of motivation, namely intrinsic and extrinsic

motivation. “Intrinsic motivation is a psychological force that determines the direction of a

person’s behaviour as a result of challenging or interesting work, giving autonomy to work,

designed scope to develop skills, opportunities to develop and grow, etc. Extrinsic motivation is

also a psychological force that determines behavioural change as a result of tangible and

intangible benefit such as salary, fringe benefits and special awards’’ (Jones et al, 2003).

Research (Chapman, 2004) and (McCoy, 2000)has shown that, the success in every organization

depends on the quality of its human resources both skilled and unskilled labour. Human

resources are essential to the prosperity, productivity and performance of any company. It is

therefore important to have a workforce that is motivated to yield higher performance and

productivity towards achieving the organisational goals and objectives.

Regardless of the industry within which a firm operates, the concept of motivation cannot be

ignored. In respect of this, banking being a service industry and therefore having direct contact

with customers, the presence or absence of employees’ motivation can have an immediate effect
on the customer (thus either delighting the customer or otherwise). Motivation is one of the

driving forces that have direct impact on the business productivity.

A transparent style of administration is what is required since it is one of the best ways to

motivate staff. This is because management plays significant and unique role in terms of

leadership responsibilities and direction. However, it is only through various organizational

strategies that a manager will be able to activate his/ her employee’s hidden talents which are

highly important in the productivity and performance of the organization’s present and future

activities. These strategies can be external and internal to employees and one of these strategies

employed by managers is motivation.

Motivation approaches definitely satisfy the needs of the employees and in return, the employees

repay it through their hard work. However, the system used to motivate employees may have

potentially negative effect on their morale if not properly used or applied. This has become a big

challenge to most industries; particularly the service industry. The service industry is one of the

major contributors of Gross Domestic Product (GDP), (http://graphic.com.gh and Lincoln

Anderson, Bureau of Economic Analysis (BEA)) and the socio-economic development of the

country. Quality service delivery is very important and this has called for measures to ensure that

services delivered to customers are of good standard.

It can be said that no employee would resist higher pay or an increase in salary since it would

offer him /her an opportunity to meet some or most of the physiological needs such as paying

utility bills, paying school fees, buying clothes, cars, land and so forth. Because of this ideology,

some of the employers wrongly feel that once their staffs are given higher salaries, every other

thing would naturally follow.

 Maslow the father of motivation (1943) holds the view that “unsatisfied needs serve as a

motivation for individual or group of people”. He identified five (5) hierarchies of needs which

are physiological need, safety needs, social needs, esteem needs and self actualization. And when

a need is satisfied, he says it does not serve as motivation again it is the next need that matters.

1.2 STATEMENTOF PROBLEM

In this modern time, employees move from one organization to another due to lack /low level of

motivation. Some employers try to give high salaries or wages to their employees just to

motivate them to give up their best so as to increase productivity. Others also give fringe benefits

such as rent and transportation allowances to their employees in order to put up their best to

enhance productivity, yet the whole thing seem to be an illusion. This tells us that motivation is

personal, that is to say that what motivate someone to put up his best will also de-motivate the

other person. Human needs are insatiable for this reason they always struggle for new things in

life. If someone receives huge salaries, allowances in terms of rent, transportation and yet does

not get motivated, it means motivation is not based on extrinsic reward but also on intrinsic

reward as well.

According to Maslow (1943), individuals attain the next hierarchy of needs after the first one has

been achieved. Senior managers are not much motivated extrinsically by money and other

physiological needs but are well motivated intrinsically through self-esteem and actualization

needs and by so doing if their ideas are well transformed into performance , they feel well

motivated. These issues have prompted us as students to investigate into the effect of motivation

on an employee’s performance at National Investment Bank Ltd.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is to investigate into the effects of motivation on employee’s

performance at National Investment Bank limited Cape Coast Branch; specifically the study

seeks to:

a) To identify the factors that motivates and de-motivates employees at National Investment

Bank.

b) To determine the extent to which motivation affect productivity.

c) To find out the challenges that National Investment Bank face in its attempt to motivate

staff.

d) To make suitable recommendations for motivating staff to improve productivity at

National Investment Bank.

1.4 RESEARCH QUESTIONS

1. What factors motivate and de-motivate the employees at National Investment Bank Ltd

2. Does motivation affect productivity at National Investment Bank Ltd.?

3. What challenges does National Investment Bank faces in motivating its employees.

4. What are the sources of factors of motivation for employees at National Investment Bank Ltd?

1.5 METHODOLOGY

The study adopted the mixed approached research design thus; both quantitative and qualitative

research design. The case study method was employed by the researchers as data collection

technique to study into detail every bit of information about the bank.
The study population comprised the staff of National Investment Bank Ltd and their customers,

and used the Cape Coast branch as the study area. The non-probability sampling was used

together with the purposive sampling technique to draw a sample size out the population.

The study adopted the questionnaire and interview research instruments to collect data from both

primary and secondary sources. Data was finally analysed using Statistical Package for Social

Sciences (SPSS) to create tables and charts for easy understanding and presentation. Last but not

least, the ethics of business research was not left out.

1.6 SIGNIFICANCE OF THE STUDY

The aim of every organization is to outweigh its competitors in terms of rendering better service

to its customers to enable the company sustain in the competitive market. The company cannot

survive without having well motivated employees who can help the organization to achieve its

aims and objectives. The company gaining more knowledge about motivation and its effect on

the performance will device concrete strategies to keep their employees and also make them

happy both at home and at work. This research is going to help the employees to render good and

quality service to their valued customers. This is also going to help management by way of

getting a good image and increasing productivity at National Investment Bank Ltd. It is also

likely that the findings of the study will pave way for the management of National Investment

Bank Ltd. to accept the factors that influence managerial behaviour and its impact on employees

towards organizational performance. Finally, the results of the study will throw more light on

factors that will motivate or de-motivate employees. It will serve as a blue print for determining

what actually motivates and boosts morale of workers and managerial behaviours required to

yield most favourable performance.

1.7 SCOPE OF THE STUDY

Our area of study is focused on the staff of National Investment Bank Limited which has its head

office located at Accra Central near Cocoa Board, Greater Accra Region. It was established in

March 22nd 1963. It was the first development bank in Ghana to promote and strengthen rapid

industrialisation in all sectors of the Ghanaian economy. It now operates as a universal bank in

focusing on development/commercial banking activities.

Apart from it development banking activities National Investment Bank Ltd also provide

Corporate and Commercial banking facilities involving both domestic and foreign transactions at

very competitive rates and on flexible terms. They include Current and Savings Account, Call

Deposits, Fixed Deposits, Loans and Advances, Personal Loans, Overdrafts, Western Union

Money Transfer, Mobile Cash Management Services and Warehousing. NIB has been in

existence for about 51years now and has opened their tentacles to the ten (10) regions and also

has about twenty seven (27)branches in Ghana. Some of their branches are located at Ho,

Bolgatanga, Kumasi Central, Tema community 9, Osu, Techiman, Nkawkaw, Takoradi, Cape

Coast, Winneba, and Obuasi; they deal in savings and loans to people and international money

transfer such as Vigo and Western Union money transfer.

1.8 ORGANISATION OF THE STUDY

This study is structured to provide a critical review of relevant information regarding employee

motivation and performance. The study comprised five chapters and it is presented as follows;

Chapter one covers the introduction, giving the background to the study, statement of the

problem, objectives of the study, research questions, and significance of the study, scope and the

organization of the study.

Chapter two deals with the review of related literature which covers the concepts of motivation

and the conceptual framework of existing theories of motivation, management of the motivation

system, staff morale and performance and the theoretical framework.

Chapter three presents the research methodology and focused on research design, population and

sample size, sample techniques, instrumentation, mode of data collection, method of data

analysis as well as justification of choices and uses.

Chapter four focused on the analysis and interpretation of data and discussion of findings of the

study.

Chapter five provides a summary to the entire study, drew conclusions and also

recommendations made.
 CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This chapter reviewed related literature regarding many aspects of the subject matter

(motivation) including motivation definition, process and sources of motivation, the old and new

school of thought on motivation (theories) among others, and organizational/managerial

applications of Maslow Needs theory , motivation and organizational performance.

2.1 THE CONCEPT OF MOTIVATION

The word motivation has been derived from the word motive which means the purpose or idea,

need or emotion that prompt a man into action. Whatever may be the behaviour of man, there is

some reason behind it. Stimulus is dependent upon the motive of the person concern. Motive can

be known by studying a person’s needs and desires. There is no general theory that can explain

the factors influencing motives which control man’s behaviour at any particular point in time. In

general, the different motives operate at different times among different people and influence

their behaviours. The process of motivation studies the motives of individuals which cause

different types of behaviour.

From various definitions of motivation by psychologists/scientists, it can be observed that,

motivation in general, is more or less basically concern with factors or events that leads and

drives certain human action or inaction over a given period of time given the existing conditions.

Moreover, the definitions suggest that there is the need to be an “invisible force “to push people

to do something in return. It could also be deduced from these various definitions that, it has

become a great challenge today to have a motivated workforce or even create an environment in

which high levels of motivation is maintained. This challenge may emanate due to the simple

fact that motivation is not a fixed trait as it could change with changes in personal,

psychological, financial or social factors.

For this research, a more realistic and simple definition was chosen as it considers the individual

and his performance, Greenberg and Baron (2003). According to Greenberg et al (2003)

motivation is “the set of processes that arouse, direct, and maintain human behaviour towards

attaining goals.

2.2 TYPES OF MOTIVATION

According to Crabbe (2001), researchers identified two sources of motivation; these are internal

and external sources which have also been categorized as the intrinsic and extrinsic motivation.

 Intrinsic motivation–Intrinsic motivators are concerned with the quality of work life,

and are likely to have deeper and long term effect because they are inherent in

individuals and are not imposed from outside (Armstrong, 2006) Feelings of

accomplishment, achievement challenge and competence derived from performing ones

work are examples of intrinsic motivation.

  Extrinsic Motivation-It is related to tangible rewards such as salary and fringe

benefits, security, promotion, contract of service, the work environment and conditions

of service. These are what need to be done to or for people to motivate them. They are

often determined at the organisational level and may be largely outside the control of the

individual managers.

2.3 FACTORS AFFECTING WORKPLACE MOTIVATION

Employee Performance basically depends on many factors like performance appraisals,

Employee motivation, employee satisfaction, compensation, Training and development, job

Security, Organisational structure and others. Something which stimulates a person towards

some goal is termed an incentive. It activates human needs and creates the desire to work. Thus,

an incentive is a means of motivation. In organisations, increase in incentive leads to better

performance and vice versa. Man is a wanting animal, he continues to want something or other.

He is never satisfied. If one need is satisfied, the other need arises. In order to motivate the

employees, the management should try to satisfy their needs. For this purpose, both financial and

non-financial incentives may be used by the management to motivate the employees. Financial

incentives or motivators are those which are associated with money. These include wages and

salaries, fringe benefits, bonus, retirement benefits, stock option etc. Non financial motivators

are those which are not associated with monetary rewards. They include intangible incentives

like satisfaction, self-actualization and responsibility.

2.4 MOTIVATION THEORIES

Critical search of literature on subject matter brought to the fore that, several theories of

motivation have been developed, and were particularly relevant for work settings. But the most

interesting revelation was the mere fact that, each of these theories highlights one or more of the

variables of motivation. However, it was also relevant to acknowledge that almost all these

theories were propounded by American psychologist/scientist.

Psychologist typically grouped motivation theories into two categories namely; the content

theories and the process theories. The content theories Hitt (2009), addresses the issue of what

needs a person is trying to satisfy and what features of the work environment seem to satisfy

those needs. Such theories he was of the opinion tries to explain motivation by identifying (a)

internal factors, that is particular needs and (b) external factors, particular job and work situation

and characteristics that are presumed to cause behaviour. The process theories on motivation

dealt with the way different variables combined to influence the amount of effort put forth by an

employee.

A comparative analysis of the two blocks obviously indicated that, the content theories place

much emphasis on the nature of needs to be satisfied and what actually motivates whiles the

process theory has its focus on the actual process of motivation.

It was realised during study that, the staff of National Investment Bank Limited has a way of

standing up to tension (unsatisfied needs) and to a larger extent assumes that, there is one best

way to motivate each and every one of them to sustain and direct their behaviour at work.

2.4.1 Maslow’s Hierarchy of Needs

This theory was propounded by Abraham Maslow. It was based on the assumption that

employees are motivated by series of five universal needs, these range of needs he claimed the
individual will be motivated to fulfill whichever is most powerful at the time of

need(Maslow,1970). This need, literature makes us to understand he grouped them into; Lower

order needs- which he claimed are dominant until they are at least partially satisfied. From this

angle it can be realised that any normal human being would turn his attention to satisfy needs at

the next level giving rise to higher-order needs which gradually becomes dominant. To make the

theory simple, Maslow ranked these in a hierarchical fashion;

Physiological Needs

Physiological needs are the need at the bottom of the needs hierarchy and include the lowest

order need and most basic. This includes the need to satisfy the fundamental needs such as food,

air, water and shelter. According to Maslow, organizations must provide employees with a salary

that enable them to afford adequate living conditions. The rationale here is that, any hungry

employee will hardly be able to make much of any contribution to his organization by Maslow

(1970)

Safety Needs

The next level in the hierarchy was what he termed as safety needs, the needs for shelter,

security, stability, dependence, protection, freedom from (anxiety, fear and chaos), and a need

for structure, order and law. In the work setting, this translate into a need for at least a minimal

degree of employment security; and the assurance that we cannot be dismissed or sacked on

irrelevant issues and that appropriate levels of effort and productivity will ensure continued

employment.
Social Needs (belongingness needs)

This represents the third level of needs. They are activated after safety needs are met. A social

need refers to the need to be affiliated that is (the needed to be loved and accepted by other

people). To meet these needs, organizations must encourage employees’ participation in social

events such as picnics, etc.

Esteem Needs

This represents the fourth level of needs. It includes the need for self-respect and approve of

others. Organizations introduce awards, banquets to recognise distinguish achievements.

Self-Actualisation Needs

The highest need in Maslow’s hierarchy, arguable though. Self-actualisation refers to the desire

for self-fulfillment, realisation of a potential, continuous self-development and the process of

becoming you. The rationale here holds to the point that self-actualisation employees represent

valuable assets to the organisation human resource. The researcher observed that, at this point,

people seeking to satisfy this need will actually, look for personal relevance and value new

responsibilities that may help discover new talents.

Fig 2.1 Maslow’s Hierarchy of Needs

 source:http://

commons.wikimedia.org/wiki/File:Maslow%27s_hierarchy_of_needs.sv

2.4.2 Organizational /Managerial Application of Maslow Need Theory

The rationale behind Maslow’s theory lies on the fact that it’s able to suggest to managers how

they can make their employees or subordinates become self-actualised. This is because self-

actualised employees are likely to work at their maximum creative potentials. Therefore it is

important to make employees meet this stage by helping meet these strategies at this stage.

Recognising employees’ accomplishments is an important way to make them satisfy their esteem

needs. This could take the form of awards, plagues etc. According to a research carried out in

GTE Data services in Temple Terrace in Florida (2003) shows that awards are given to

employees who develop ways of improving customer’s satisfaction or business performance. But

note that awards are effective at enhancing esteem only when they are clearly linked to desired

behaviours. Awards that are too general fail to meet this specification. Financial security is an
important type of safety need. Organizations should therefore motivate their employees to make

them financially secured by involving them in profit sharing of the organization. Furthermore,

there is the need to promote a healthy workforce among workers. Companies can help in keeping

their employees physiological needs by providing incentives to keep them healthy both physical

and mentally. Socialization need is one of the factors that keep employees feel the spirit of

working as a team. When employees work as a team they tend to increase their performance.

When an organization hold programmes such as “family day”, picnic or games among the staff,

it helps build team spirit among staff.

2.4.3 Alderfer’s Hierarchy of Motivational Needs (ERG THEORY)

The ERG was propounded by Clayton Alderfer in 1972 as a quick response to the lack of

empirical evidence for the hierarchy of motives presented by Maslow in 1970. His objective was

to align it more closely with empirical research. Notwithstanding, Alderfer’s version of the needs

theory was built on the ideas of Maslow. He defined the ERG as; Existence, Relatedness, and

Growth.

Existence Needs: He defined as including all the basic material existence requirements;

(Maslow’s physiological and safety needs).

Relatedness Needs: He referred to as the quest of people to maintain interpersonal relationship

with other people-family members, colleagues, bosses, and subordinates. He explains further by

saying people satisfy this need by sharing thoughts and feelings. (Maslow’s social/love need and

the external component of his esteem need).

Growth Needs: He referred to as what impels a person to be creative or have an impact on his or

her environment thus, the desire for personal development. He was of the opinion that this level
of need can be catered for by engaging in challenges that demands that you use your skills or

require that you initiate new ones (Maslow’s esteem need, and self-actualisation). In the nutshell,

Alderfer believes that three categories of needs are active in every person but vary in degrees and

strength.

Alderfer’s ERG theory differs from Maslow’s Need Hierarchy in so far as ERG theory

demonstrates that more than one need may be operative at the same time. ERG theory does not

assume a rigid hierarchy where a lower must be substantially satisfied before one can move on.

According to Maslow an individual would stay at a certain need level until that need was

satisfied. ERG theory counters by noting that when a higher- order need level is frustrated; the

individual’s desire to increase a lower- level need takes place. Inability to satisfy a need for

social interaction, for instance, might increase the desire for more money or better working

conditions. So frustration can lead to a regression to a lower need.

In summary, ERG theory argues, like Maslow, that satisfied lower- order need lead to the desire

to satisfy higher- order needs; but multiple needs can be operating as motivators at the same

time, and frustration in attempting to satisfy a higher- level need can result in regression to

lower- level need.

2.4.4 Two-Factor Theory (Frederick Herzberg)

Herzberg (1959) Two- factor theory, also known as the Motivation- hygiene theory. The theory

centered or related to the nature of a person’s work. The theory sought to distinguish between

factors that can increase job satisfaction (motivators) as against those that can cause

dissatisfaction but cannot increase satisfaction. Herzberg termed the motivators as intrinsic

factors directly related to the doing of a job such as the nature of work, responsibility level,
personal growth opportunities and the sense of achievement and recognition. The other factors

“hygiene” factors as extrinsic to directly performing the job. They are less conditions

associated/surrounds the job. These factors he outlined as supervision, relations with co-workers,

working conditions, administrative policies and practices related to benefit and compensation.

Studying the theory carefully the researchers realised that Maslow and McClelland touched on

motivation but Herzberg sought to replace motivation with satisfaction. These two concepts are

totally different. Objectively, being pleased (satisfied) with doing a more challenging set of tasks

does not mean you will be motivated to do your job better.

Table 2.2: Classification of Herzberg’s Two Factor Theory

Hygiene (Maintenance factors) Motivation Factors

(Job Environment) (Job Content)

Extrinsic Factors Intrinsic Factors

Company Policy / Administration Work Itself

Supervision Achievement

Interpersonal Relations Responsibility

Working Conditions Growth and Advancement

Source: http://www.hotelmule.com/forum/viewthread.php?tid=927

2.4.5 Acquired Needs Theory-(McClelland 1995)

Another content theory which also centered on needs was propounded by an American

psychologist. This theory focuses on learned or acquired needs. He proposed three of these needs
to be the underlying principles for this theory; hence the reference of the theory as three needs

theory.

(a)Need of achievement (nAch) - to set and meet standard of excellence.

(b)Need of power (nPow) - to have control over one’s environment.

(c)Need of affiliation (nAff) – to develop and maintain interpersonal relations.

Different individuals have different levels of these needs. Some have greater need for

achievement, some a stronger need for affiliation and others a stronger need for power.

Fig 2.2: Model of Acquired Needs Theory

Source:http://ozgurzan.com/management/management-theories/theories-about-motivation

McClelland (1995) contended that a person who has a high need for achievement is someone

who habitually strives for success or goal attainment. He was of the view that, rather than being

arranged in a hierarchy, individual possess each possibility of conflicting needs, which motivate

their behaviour when activated.

He further pronounces that, the presence of these motives or drives in an individual indicates a

predisposition to behave in certain ways. Therefore, from a manager’s perspective, recognizing

which need is dominant in any particular individual affects the way in which that person can be

motivated.

In summary, all the theory postulated was, people with achievement motives are motivated by

standards of excellence, defined roles responsibilities and concrete timely feedback. Those with

affiliation motives are motivated when they accomplish things with people they know and trust.

And the power motive is activated when people are allowed to have an impact, impress those in

power, or beat competitors.

At National Investment Bank Limited, the need for achievement was exhibited by staff through

the avoidance of low risk activities, the risk of failing in a given assignment and setting them

moderate, realistic, smart, time bound and achievable goals all towards the main organisational

goal.

That of affiliation was seen through the spirit of conforming to organisational agenda, rather than

standout, seeking approval from the collective whole rather than seeking individual recognition,

supporting co-workers and iron out their differences and finally believed in team work than

seeking personal glories and extending it to their social activities.

The need for power manifested itself in the form of workers having the platform to make critical

suggestions at meetings, lending a helping hand to handicapped colleagues to increase

organisational effectiveness, enjoying competition from colleagues and winning and having the

will power to approach co-workers on certain issues affecting the development of the bank. It
was very evident that all the staff members possessed a combination of these three needs and the

dominant ones were perceived to have motivated their behaviour.

2.4.6 Equity Theory

Equity theory (Adams, 1965) is concerned with the perceptions people have about how they are

being treated as compared to others. To be dealt with equitably is to be treated fairly in

comparison with another group of people (a reference group) or a relevant other person. Equity

involves feelings and perceptions and it always a comparative process. It is not synonymous with

equality, this means treating everyone the same, since this would be inequitable if they deserve

to be treated fairly.

Equity theory, in effect, that people will be better motivated if they are treated equitably and de-

motivated if they are treated inequitably. It explains only one aspect of the process of motivation

and job satisfaction, although it may be significant in terms of morale.

There are two forms of equity, which are distributive equity, which is concerned with the

fairness with which people feel they are rewarded in accordance with their contribution and in

comparison with others and procedural equity, which is concerned with the perception

employees have about fairness with which company procedures in such areas as performance

appraisal, promotion and discipline are being operated.

2.4.7 Expectancy Theory

The expectancy theory was propounded by Victor Vroom, a psychologist in 1964. The theory is

only applicable to a work setting that is based on people’s expectations. The focus of the theory

is on the thought processes people used when they faced particular choices among alternatives.
Literature reviewed revealed the following as the underlying principles of the theory. Individuals

make conscious effort to behave in a certain manner, individual values with regard to choosing

desired outcomes, individual expectations concerning the amount of effort required to achieve a

specific outcome and individual expectations concerning the probability of being rewarded for

achieving desired outcomes. Vroom through these principles sought to portray that, motivation is

a function of the relationship between; effort expended by an individual and perceived level of

performance; and the expectation that reward for desired outcomes will be related to

performance. On the other hand, there must also be the expectation that rewards are available as

it will go a long way to determine the strength of the motivational link thus, the strength of the

individual’s preference for an outcome and the belief that particular actions will achieve the

required goal. To make the expectancy process simple;

Effort → required performance → Desired outcome.

Force = Valence × Expectancy.

Where force is strength of motivation, valence is strength of preference for outcome and

expectancy is the level of belief that changes in behaviour will achieve the required outcome.

Looking at the theory and its complexity in nature, one could only make recommendations to

management, to as a matter of fact try to find out desired outcome each of the bank values most,

define the goals and what constitute the level of performance needed to achieve it. But

management should also not lose sight of the fact that level of performance is realistic and

achievable. After a period of time, management should be able to measure the outcomes by

performance desired by management. One thing worth noting is that the strategies put in place

should not create conflict between the expectations it sought to create and other influencing
factors in the work environment. Finally, outcomes should be attractive and appealing enough to

ignite the desired level of performance.

2.4.8 Frederick Winslow Taylor

Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated mainly

by pay. His theory of Scientific Management argued that:

Workers naturally do not enjoy work and so close supervision and control and also advised

managers to break down production into series of small tasks.

Workers should then be given appropriate training and tools so they can work efficiently as

possible on one set of task. Workers are then paid according to the number of items they produce

in a set period of time-piece-rate pay. As a result workers are encouraged to work hard and

maximize their productivity.

Taylor’s methods were widely adopted as businesses saw the benefits of increased productivity

levels and lower unit costs. The most notably advocate was Henry Ford who used them to design

the first ever production line, making Ford cars. This was the start of the era of mass production.

Taylor’s approach had close links with the concept of an autocratic management style(managers

take all decisions and simply give orders to those below them) and Macgregor’s Theory X

approach to workers (workers are viewed as lazy and wish to avoid responsibility).

However workers soon came to dislike Taylor’s approach as they were only given boring,

repetitive tasks to carry out and were being treated little better than human machines. Firms

could also afford to lay off workers as productivity levels increased. This led to an increase in

strikes and other forms of industrial action by dis-satisfied workers.

2.5 PERFORMANCE

Worker performance clearly depends on their level of motivation, which stimulates them to come

regularly, work diligently, be flexible and be willing to carry out necessary tasks. The

performance and quality of banking service depends on the quality and motivation of banking

human resources. Therefore, bankers’ motivation is likely to have effect on delivery of banking

service and the outcome on customer care and performance of work.

2.5.1 How Employee Motivation Affects Employee Performance

Motivation is the internal process that leads to behaviour that satisfies needs. Therefore

performance formula;

Performance = Ability × Motivation × Resources (2×2×2 = 8)

Looking at the equation carefully, it shows that workers can have as much ability and the

necessary resources at their disposal but will still fail to perform. In other words all that equation

is depicting is that without motivation, performance is usually below potential.

The extent to which employees are motivated in their work depends on how well those

employees are able to produce in their job. Motivation is expected to have a positive effect on

quality performance; employees who are characterized by high level of motivation will definitely

show higher work and life satisfaction. Having high level of motivation in itself is valuable for

employees and decrease in level of motivation might affect employees negatively, the motivation

in this case will lead to a higher level of initiative and creativity from the employees and where
monitoring is difficult, motivation is therefore extremely important for ensuring high quality

performance.

2.5.2 Types of Rewards

The subject motivation can never be tackled or discussed without making mention of reward.

Reward system is much more than just bonus plans and stock options. It is actually a process that

reinforces or drives inmate feelings, to meet the targeted and accepted standards. Many believe it

should not be seen as a ritual affair but a continuous activity to be undertaken by management.

2.5.3 Monetary Rewards

It is certainly the most common and widely used approaches to facilitate recruitment, retention,

motivation and performance. Financial rewards include direct or indirect payment such as wages

or salary, bonuses, insurance, merit pay, allowances, loans and tuition reimbursement. Providing

adequate and timely reward is important to guarantee the recruitment of motivated and qualified

staff.

2.5.4 Non-Monetary Rewards

There are different types of non-monetary rewards, such as work autonomy, recognition from

supervisors, so employees will feel their efforts are noticed and valued. Career development and

professional growth opportunities will help employees to develop new skills, knowledge

expansion, and increase their visibility within the organisation, internal promotion opportunities

as a long plan, and shift work flexibility.

2.5.5 Ways of Motivating Employees

1. Recognition and Attention. When employees accomplish a mission, they believe that indeed

they have achieved something and have the mind-set that recognition from management is an

appreciation for that achievement. But the challenge here is that, most managers do not give

enough recognition because they themselves do not get enough.

Giving recognition to employees is something that does not come naturally to do, but requires

much effort and consistency to achieve it. At National Investment Bank Limited it was realised

during the pilot survey that employees felt unrecognized. In that, there had been instances they

felt that management should have at least given them a pat on the shoulder after successfully

executing a task.

Research has therefore shown that employees do not all the time require cash, as it is the

perception of most managers to be motivated to give off their optimum best, but sometimes mere

appreciation is enough for he or she feel at home and perform well.

2. Career Path. Employees, as vital as they are to the bank, need to know what is potentially

ahead for them, what opportunities there are for growth. This issue is sometimes a forgotten

ingredient as to the importance it plays in the overall motivation of people. The reality is that

management in recruiting staff entices them with nice packages, after employment all these nice

packages vanish into thin air.

3. Leadership Roles. Giving employees leadership roles to reward performance will also help

you to identify future promotable people. Most people are stimulated by leadership roles even in

spot appearances. For example, when visitors come to your work place, use this opportunity to

allow an employee to take the role of visitors guide.

4. Good Work Environment. Most staff members the bank highly support and advocate that

working in an office with pictures on the walls, plants; nice flowers, furniture, and enough space

among other features generally make people feel good about their environment and give of their

best for maximum performance. On the other hand, working in an office where all these

elements are absent coupled with unregulated temperature, considering a banking hall; they

together with the customers may feel they are in the Amazon jungle one minute and the North

Pole the next minute.

5. One-on-One Coaching. Coaching is employee development which is an important aspect of

every organisation. The only cost for embarking on such an exercise is the time. Time in this

context means you care. And it is worth noting that employees do not care how much you know

until they know how much you care. Whenever you recognise and encourage people in public, it

acts as a natural stimulant for others who are close enough to see or hear what is taking place.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

This chapter presents the research methodology and the methods as well as the justification of

the choices and their uses. The methodology comprised research design, population for the study,

sample and sampling procedures, research instruments, data collection and data analysis

procedures.

3.1 RESEARCH DESIGN

Research design involves a series of rational decision making choices. In other words, the

research design is the step aimed at designing the research study in such a way that the essential

data can be gathered and analysed to arrive at a solution (Sekaran 2003). The study used both the

quantitative and qualitative research design. Quantitative research uses objective measurement

and statistical analysis of numeric data to understand and explain a phenomenon. Qualitative

research, in contrast, focused on understanding social phenomenon from the perspective of

human participants in the study. The study is looking at social issues because it has to do with
the behaviour of workers in relation to how they react to different form of motivation given by

supervisors and managers.

The rationale for adopting the mixed approach design was that, they can be used to undertake

any research activity and therefore has the advantages of one compensating for the weakness of

the other. This was supported by Tashakkori and Teddlie (1998).

The study also employed the case study research method alongside two prominent designs to

collect data and enable the researchers gain a broader understanding of the chosen field of study.

3.2 SOURCES OF DATA

Data for the survey conducted was sourced from both the primary and secondary sources.

Primary data with respect to this research was collected from the field survey conducted with the

staff and management of National Investment Bank Ltd which comprised of the administration

of questionnaires, by observations and interviews. The open ended questionnaire was to allow

for satisfactory expression on respondents and members of the administration of National

Investment Bank Ltd.

The secondary aspect had to do with information sourced from books, journals, internet and

other relevant documents which were highly related to the subject matter understudy.

3.3 THE STUDY POPULATION

The targeted population for this study comprises of management, senior and junior staff at

National Investment Bank Limited., Cape Coast branch.

3.4 SAMPLING AND SAMPLING TECHNIQUES

A sample size of 30 was selected by using the non-probability design and to be specific the

purposive sampling technique was used for the case study research.

3.5 DATA COLLECTION TECHNIQUES

The procedures for collection of data for this study were basically questionnaires and interviews.

Questionnaires were given to management, senior and junior staff to answer. These

questionnaires were made up of 15 questions of which most of the questions were close-ended.

Questionnaires: This process consists of setting questions relevant to the subject of enquiry

which is self-administered to selected list of persons with a request to return them duly filled in

or collected personally at designated point.

Questionnaires consisting of mainly open and close ended questions were used to collect the

primary data for the study. The close ended questionnaires are the type that provides control over

providing specific response alternatives.

However, open ended questionnaires were limited. The open ended questionnaire was to allow

for further satisfactory expressions on respondents and management of the administration of

National Investment Bank Ltd.

Aside the questionnaires, the study again utilised interview as an instrument to collect data from

management. Management views were sought on issues concerning motivational policies and
how best they can motivate staff to give off their optimum best. The rational for the interview

was to give the researchers the opportunity to adjust the questions as and when necessary.

A total of 30 questionnaires were distributed and we were able to retrieve 25 representing 83.3%

of the total sample size. This was due to the fact that, some of the respondents for no apparent

reason decided not to attend to the questionnaires which we believed was going to affect the

analysis and the inability to generalise the findings for similar situations. Our concentration was

on all workers irrespective of their position in the bank.

3.6 DATA ANALYSIS APPROACHES

Data analysis by using questionnaire was expected to provide significant information to justify

the research questions and objectives of study.

Data collected using the questionnaires were edited for clarity and then frequency tables were

drawn to show the final results using Statistical Package for Social Scientist (SPSS) software.

The SPSS was used in this research in order to analyse the information gathered which was used

in the development of charts and graphs more efficiently and effectively.

3.7 ETHICS AND BUSINESS RESEARCH

Ethics in business research refers to the code of conduct of behaviour while conducting the

research. This should always reflect in the behaviour of researchers who conducted the

investigation, the participants who provided the data, the analysts who provided the results and

the presentation of the interpretation of the results and suggested alternative solutions.

One primary responsibility of the research was treating the information given by respondents as

strictly confidential and guarding their privacy. The purpose of research was explained to
respondents before giving out research questionnaires. The research was concerned not to violate

the self-esteem and self-respect of the subjects as well.

Moreover, it was worthwhile bearing in mind that no respondent was forced to respond to the

questionnaires, and consent of participants was the ultimate goal of the study. This study was

conducted considering the ethical responsibility in accordance with the general principles of

research ethics concluded by Ticehurst and Veal (2000) that, (1) no harm shall befall the research

participants (2) participants should take part freely, and (3) based on informed consent.
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION OF FINDINGS

4.1 INTRODUCTION

This chapter deals with the data analysis and interpretation of the findings. The results have been

grouped under major headings namely, background of staff, staff level of motivation, sources of

motivation, the extent to which motivation affects performance and factors that motivate staff to

be able to perform effectively. The results have been presented in both tables and figures

showing frequencies and percentages of the responses given by the staff of

National Investment Bank Limited.

4.2 BACKGROUND OF THE STAFF

This section looks at the background of the staff. These include data on where they work, sex,

age, educational background and length of service. The respondents were made up of staff from

one (1) branch in Cape Coast. It was revealed that the respondents who made up40% of the staff

were female whilst the respondents representing about 60% of the staff were males.

4.3 AGES OF STAFF

Data on the ages of the respondents are shown in the Table 4.1 below. It can be observed that
5 of them representing 20% fell within the ages of 20-30 forming lower level management, 13

and 5 fell within 31-40 and 41-50 representing 52% and 20% respectively forming middle level

management and 2 within the ages of 51-60 representing 8% forming top level management.

This clearly shows that majority (72%) were in active age group. In effect if the human resource

available is well managed and motivated, the bank is likely to benefit from this resource through

its youthful exuberance, talents, skills and innovation.

Table 4.1: Distribution of Respondents by Age

Age Range Frequency Percentage

Between 20-30 5 20%

Between 31-40 13 52%

Between 41-50 5 20%

Between 51-60 2 8%

Total 25 100%

Source: Field Work, May 2014.

Figure 4.1 Ages of the Staff

 Ages of the Staff
2; 8% 5; 20%
5; 20%

Between 20-30
Between 31-40
Between 41-50
Between 51-60

13; 52%

Source: Field Work, May 2014

4.4 EDUCATIONAL BACKGROUND OF STAFF

The research revealed that most of the respondents had attained one form of education or the

other. Statistics confirmed that 8 (32%) of the respondents were degree holders, followed by 5

(20%) and 2 (8%) constituting those with Professional and Masters Certificate.

Respondents with polytechnic education formed (16%), thus 4 of the total respondents and 6

(24%) had certificates below diploma. This implied to work in the financial sector one requires a

great deal of knowledge and skills to be able to fit in there.

Table 4.2: Distribution of Respondents’ Educational Level

Educational background Frequency Percentage

S.H.S, GCE, O&A LEVEL 6 24%

Higher National Diploma 4 16%

Degree 8 32%

Masters 5 20%
 Professional 2 8%

Total 25 100%

Source: Field Work, May 2014.

Figure 4.2 Educational Background of the Staff

Educational Background of the Staff

8% 24%
20%
S.HS,GCE,O&ALEVEL
H.N.D
Degree
Masters
Professional

16%

32%

Source: Field Work, May 2014

4.5 NUMBER OF YEARS SPENT ON JOB

Respondents who took part in the research survey and had worked with the bank for a period of

1-3 years were 15 representing 75%, 5 representing 20% have worked between 4-7 years, 3

representing 12% have worked between 8-12 and 2 representing 8% have worked with National

Investment Bank Limited between 13-15 years. This indicates that the staffs of N.I.B do not stay

at post for a very long period.

Table 4.3 Distribution of Respondents by Length of Service

Years Frequency Percentage

1-3 15 60%
 4-7 5 20%

8-12 3 12%

13-15 2 8%

Total 25 100%

Source: Field Work, May 2014.

The reason why the majority of staff does not work beyond 5 years could be attributable to

different reasons. Perhaps one of the reasons could be due to the low level of motivation.

This should be the reason why management would have to take a serious look at staff motivation

for its own benefits.

4.6 LEVEL OF MOTIVATION OF STAFF

When the respondents rated the level of motivation towards their job in the organization, 2

representing 8% said that their level of motivation is very low, 14 representing 56% said it is

low, 5 representing 20% said average, 3 representing 12% said high and 1 representing 4% said

very high. This shows that majority of the employees are not well motivated.

Table 4.4 Level of Motivation of Staff

Level of motivation of staff Frequency Percentage

Very low 2 8%

Low 14 56%

Average 5 20%

High 3 12%

Very high 1 4%

Total 25 100%
Source: Field Work, May 2014.

Figure 4.3 Level of Motivation of Staff

Level of motivation of staff

16
14
14

12

10

6 5
4 3
2
2 1
0
Very low Low Average High Very high

Source: Field Work, May 2014

It was deduced from the figure and table that most of the employees do not feel motivated with

the source of motivation from their employers. In table 4.1 which represented the ages of the

staff, it was realised that employees within the ages of 20- 40 years form the greater percentage

of the total workforce of the organization. In administering the questionnaires, it was revealed

that most of the employees who fell within these ages do not feel well motivated and as such

need other sources of extrinsic motivation such as cash benefits, increment in salaries etc. from

their employers.

4.7 MOTIVATIONAL FACTORS

One of the questions posed to staff was to rank the motivational factors according to how each

factor would influence them at work. The most important factor was to be ranked 5 and the least

important was to be ranked 1. All factors were ranked and no rank could be used more than once.
The results in table 4.5 show the collective rank order of the 5 motivational factors according to

how important each is influencing the staff. It can be observed 10 representing

40% of the staff ranked high salary as the most important motivational factor, followed by 6

representing 24% as recognition, sense of achievement was 2 representing 8%, job satisfaction

ranked 4 representing 16% and training and development opportunity ranked 3 representing

12%.This indicates that most staff feel well motivated when given high salary.

Table 4.5 Responses Regarding Factors of Motivation

Rank Factors Number of times Most important

ranked (frequency) factors (percentage)

1 Job Satisfaction 4 16%

2 Recognition 6 24%

3 Sense of achievement 2 8%

4 Good Salary 10 40%

5 Training and 3 12%

development

Source: Field Work, May 2014.

Bainbridge (2011) defines Extrinsic Motivation – this stems from work environment external to

the task itself and is usually applied by someone other than the person being motivated. Pay,

fringe benefits, favoured company policies and various forms of supervision are examples of

extrinsic motivation. “Intrinsic motivation is a psychological force that determines the direction

of a person’s behaviour as a result of challenging or interesting work, giving autonomy to work,

designed scope to develop skills.

The motivation of N.I.B staff therefore comes from high salary in completion or even working

on a task. Looking at the two it was observed that the staffs are motivated by extrinsic

factors/reward.

4.8 EFFECT OF MOTIVATION ON PERFORMANCE

The opinions of staff were sought as to whether motivation has an effect on their level of

performance. Out of the total respondents, 19 representing 76% indicated that there would be a

corresponding increase in their performance level if they were motivated to work; only 6 out of

the total representing 24% responded in the negative. Thus, motivation is directly proportional to

performance as revealed from the response. This result clearly presupposes that the more

motivated the workforce, the higher their level of input into work and hence increase in

performance. Furthermore, the staff could do much better than they are currently doing.

4.9 STAFF PREPARDNESS TO GO EXTRA-MILE IN DELIGHTING CUSTOMERS

This research also sought to determine the level of preparedness of staff to go the extra-mile to

serve the customer irrespective of the challenges that they may face. When the respondents were

asked about their preparedness to go extra mile to delight customers as far as provision of quality

service to customers was concern, the data for the study shows that only 8 staff representing 32%

answered in the affirmative whilst 17 staff representing 68% answered otherwise. Thus majority

of the staff indicated that they were not prepared to go extra mile to delight customers.

It is argued that excellent service delivery retains customers and therefore National Investment

Bank Ltd should make every effort to ensure that customers are delighted so as to remain

competitive in the market.

4.9.10 STAFF REWARD AT NATIONAL INVESTMENT BANK LTD AGAINST

OTHERS IN THE BANKING SECTOR

Perceived fairness and equitability or otherwise within National Investment Bank Limited and

any other organization for that matter is very crucial to its success. When staffs feel they are not

treated fairly, it results in negative consequences with regards to their level of input into the

business. They are emotionally and psychologically affected. We the researchers wanted to find

out the staffs perception on how they think they are being treated. That is, how fair or equitable

their treatment is regarding compensation and reward they receive from National Investment

Bank Ltd.

Table 4.6 Perceived Rate of Reward and Compensation

Perceived Rate Of Reward Frequency Percentage

And Compensation

Very poor 4 16%

Poor 6 24%

Average 9 36%

Very good 4 16%

Excellent 2 8%

Total 25 100%

Source: Field Work, May 2014.

Figure 4.4 Perceived Rate of Reward and Compensation

 Perceived Rate of Reward and Compensation

8% 16%
16%

Very poor
Poor
Average
Very good
24% Excellent

36%

Source: Field Work, May 2014

Out of the total number sampled, 10 of the staff representing 40% pointed out that the

reward/ compensation at First Allied is low, whereas 9 staff representing 36% feels average

and only 6 staff representing 24% were of the view that reward and compensation are very good.

Consequently, 15 representing majority of 60% were of the view that reward and compensation

is not too exceptional from the others in the same industry. In this study, all respondents

irrespective of age and gender considered wages to be of motivational importance.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 INTRODUCTION

This chapter gives a summary of the study, draws conclusions from the study and also makes

recommendations as to how to address the critical issues that emerges from the study.

5.2 SUMMARY
The effect of motivation on employee performance as a research topic was undertaken by the

researchers with the sole aim of establishing a relationship between motivation and employee

performance at the workplace. The study was conducted with the workers of National Investment

Bank Limited constituting the population and a sample size of 30 was drawn from it.

The mixed methodology approach thus both quantitative and quantitative designs were employed

in conducting the study. The two were considered because the merits of one compensate for the

weaknesses of the other. The data collection technique was the case study method alongside the

questionnaire and interview research instruments. Questionnaires were prepared and

administered to 30 of which 25 were usable.

Respondents who participated in the survey were asked varied questions in relation to employee

motivation; forms of motivation, individual needs of employees, employees perception about

motivational factors that enhances performance and the relevance of employee motivation to an

organisation.

Data collected and analysed indicated that, employees when motivated very well are able to give

their optimum best.

From the study conducted, 2 representing 8% said that their level of motivation is very low, 14

representing 56% said it is low, 5 representing 20% said average, 3 representing 12% said high

and 1 representing 4% said very high. This shows that majority of the employees are not well

motivated. This indeed is a worrying situation since it has a negative effect of performance of

staff input into the job.

Another major finding emerge from this study is the clear indication of high salary as a top

motivational factor among National Investment Bank Limited employees. It can be observed 10
representing 40% of the staff ranked high salary as the most important motivational factor,

followed by 6 representing 24% as recognition, sense of achievement was 2 representing 8%, job

satisfaction ranked 4 representing 16% and training and development opportunity ranked 3

representing 12%.This indicates that most staff feel well motivated when given high salary.

From the study there is a direct relationship between employee performance and motivation at

work. That is, the more motivated they are, the more effective they become at work. This claim

was supported from the findings by 19 representing 76% indicating that there would be a

corresponding increase in their performance level if they were motivated to work; only 6 out of

the total representing 24% responded in the negative. Thus, the staff could do much better than

they are currently doing.

From the study, it was revealed that participants in the survey had as many as (52%) between the

age range of 31-40, (20%) between the age range of 20-30, (20%) between 41-50 and (8%)

between 51-60. This implies that to work at the bank one need to be relatively younger.

Finally, it was revealed from the study that majority of the respondents who took part in the

research survey and had worked with the bank for a period of 1-3 years were 15 representing

75%, do not stay at post for a very long period.

5.3 CONCLUSION

The results of the findings form the basis for the conclusions and recommendations on this

chapter have brought to light the importance of motivation to employees’ performance. Having

examined the critical issues raised by the respondents, it has come to light that the importance of

motivation should not be overlooked. Indeed the long- term survival of any organization depends

largely on the motivation of its employees, be it financial or non-financial. Staff motivation at

National Investment Bank Limited is very low and is to the extent to which they are unwilling to

whole heartedly place business first and commit themselves to work to see the success of the

organization. Respondents were not so obsessive and passionate about their work, although an

important motivational factor has been identified as wages. Learning about what workers wants

from their jobs, or what is more important for them, may generate essential information for

effective human resource management since the things that motivate people to perform their best

are different and distinct.

Money is certainly a motivator and a major one at that. Success of companies such as that of

banks at least to some extent is as a result of motivation. There are other factors, particularly job

satisfaction as shown in the study.

Rewarding employees financially does improve levels of employee motivation and thus enhance

performance, which ultimately translates into increase in productivity.

5.4 RECOMMENDATIONS

The study disclosed that, motivation at National Investment Bank Limited has undergone serious

and improved changes over the years. Issues of recognition, trust, respect, job security, salaries

and bonuses which affect the morale of workers to maximise performance seem to be dominant

everywhere in Ghana. The following recommendations are made based on the findings;

 Based on the research questions, some factors that motivate and demotivate employees

include extrinsic and intrinsic factors. It was observed that the factor that motivates

employees mostly is the extrinsic factors which include salary increment and other cash
 benefits. The other intrinsic factors are less motivating to most of the employees.

Therefore, we concluded that since most of the employees feel well motivated by the

extrinsic motivation, management of the bank should lay much emphasis on motivating

employees extrinsically by providing other cash benefits to supplement their fixed or base

pay.

 The study will entreat management to see the urgent need to take appropriate measures if

employees of the bank are to achieve the set goals. Concrete, prudent and urgent

measures are to be taken by management of National Investment Bank Limited to restore

back hope and confidence in the system to boost the morale of staff. The commitment

and dedication level of staff brings to the fore the need for the addition of employee

incentive packages and other motivational strategies. In the light of the revelations of the

research, measures are recommended to management to consider current and future

actions to be taken in relation to motivation issues.

 In addressing the research question which is to find out the effect of motivation on

employees performance, it was deduced from the questionnaires that most of the

employees do not feel well motivated and thus do not give out their best performance. In

motivating, the needs of the individuals who are being motivated must be considered.

Therefore, it is recommended to management of this bank to motivate the employees with

what they need most and this will transform into a higher level of performance on part of

the employees. This can be based on the concept of expectancy theory which stipulates

that motivation will be high when people know what they have to do to get reward,

expect that they will be able to get the reward and expect that the reward will be

worthwhile.
  Trust and respect should also be accorded staff to create a harmonious relationship

amongst them to foster collaboration.

 There should be good interpersonal relationship between management and staff to

facilitate communication and the lending of assistance to colleagues who may need it.

Finally, the results of this study and those presented could be useful in helping organizations

determine what motivate employees today and in future. The researchers hope fervently that if

management makes frantic efforts and commitment to implement the above-mentioned

considerations, the bank will in no time become one of the leading banks in Ghana. This will go

a long way to enhance the corporate image and the esteem of workers.

REFERENCES

TEXT BOOKS

Armstrong, M., (2006). A Handbook of Human Resource Management Practice (7th edition)

Kogan Page limited London: U.K.

Cascio, F.W., (1992) A Hand Book of Human Resource Management Practice, (10th edition),

London.Kogan Page Limited Publication.

Maslow A. H., (1970). Motivation and Personality. Harper and Row: New York.

Maslow, A.H. (1943). Conflict, Frustration and the Theory of Threat. New York: Harper and

Row

ARTICLES

Crabbe, Larry. ( 2001). Secular Psychology (page 32). Grace and Truth: World Conference of

the American Association of Christian Counsellors: U.S.A

Mc Coy. (2012). Putting “Employee Motivation‟ in its Place. Women’s Media: U.S.A.

Mc Gregor, D. (1960). The Human Side of Enterprise. Mc Graw Hill: U.S.A

Taylor, F.W. (1911). Principles of Science Management. Routledge: U.S.A

Hitt, Michael (2009). Management (3rd edition) Pearson Publishers: U.S.A.

Sekaran U. (2003). Research Methods for Business: A Skill-Building Approach, (4th edition),

John Wiley & Sons: Inc.

Greenberg, J. & Baron A..R., (2003) “Behaviour in Organisations”, USA, Prentice Hall, Vol. 8,

pp.188-215.

Jones, R.G & George, M. J (2003) Contemporary management, third edition, United State of

America .McGraw-Hill publication.

JOURNALS

Herzberg F. (1959). The Motivation to Work. John Wiley and Sons: Publishers.
Herzberg, F., Mausner, B., & Snyderman, B. B., (1959), The Motivation to Work (2nd edn)

New York: John Wiley and Sons: Publishers.

Ticehurst, GW & Veal, AJ (2000) Business Research Methods: A Managerial Approach,

Pearson Education: Australia, NSW.

Veal, A.J. (2005). Business Research Methods: A Managerial Approach, (2nd edn) Pearson

Education: Australia, French Forest.

CAPE COAST POLYTECHNIC

DEPARTMENT OF ACCOUNTANCY STUDIES

Questionnaires for National Investment Bank Limited Employees.

This research is to find your opinion on motivation and its effect on the employee’s performance

at National Investment Bank Limited, Cape Coast branch. Please we would be very pleased if

you could spare us some time and complete this questionnaires for us. The information provided

will be used for academic purpose and as such going to be confidential.

Thank you.

In all questions, please tick [√] only unless otherwise indicated.

1. Sex: (a) Male [ ] (b) Female [ ]

2. Age of respondent (a) 20-30 [ ] (b) 31-40 [ ] (c) 41-50 [ ] (d) 51-60 [ ]

3. Level of education: (a) SHS, GBCE, O/A level [ ] (b) Diploma [ ] (c) Degree []

(d) Masters [ ] (e) Professionals [ ]

(f) Others (please specify)………………………………………………..…………………

4. For how long have you been working with your present organization?

(a) 1-3 years [ ] (b) 4-7 years [ ] (c) 8-15years [ ]

5. Position. (a) Junior level [ ] (b) Senior level [ ] (c) Management level [ ] (d) Others

(Please specify) …………………………………………

6. Do you feel motivated enough to go extra mile in delighting your customers (both internal and

external? (a) Yes [ ] (b) No [ ]

7. How would you rate your level of enthusiasm and morale towards your job and the

organization? (A) Very low [ ] (b) low [ ] (c) average [ ] (d) high [ ] (c) very high [ ]

8. Would there be an increase in your current level of performance if you felt well motivated to

work? (a) Yes [ ] (b) No [ ]

10. Which of the following motivates you most to be effective and productive at work?

(a) Higher salary [ ] (b) sense of achievement [ ]

(c) Recognition [ ] (d) career advancement [ ]

11. Which of the following de-motivates you most from being effective and productive at work?

(a) Inadequate reward system [ ] (b) Uninteresting and routine job schedule [ ]

(c) Lack of requisite training for employees [ ] (d) Poor working conditions [ ]
12. How do you rate the reward and compensation systems of National Investment Bank Ltd.?

(a) Very poor [ ] (b) poor [ ] (c) average [ ] d) very good [ ] (d) excellent [ ]

13. In your opinion, why do you think motivating employees in general is relevant to an

organisation?

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

……………………

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

…………………………………………..

14. How do you think the current motivational system at National Investment Bank Ltd. can be

improved?

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

…………………………………………….

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

…………………………………………….

15. Kindly indicate by circling the corresponding number against each factor of motivation

you consider the most important that would influence performance at work.

1- below average 2- average 3- above average 4- credit and 5- excellent

MOTIVATIONAL FACTORS RANKS

i. Job Satisfaction 1 2 3 4 5

ii. Recognition 1 2 3 4 5

iii. Sense of Achievement 1 2 3 4 5

Iv. Good Salary 1 2 3 4 5

v. Training and Development Opportunities 1 2 3 4 5