CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The desire of every organization is to be successful and to have constant progress. This desire is being challenged by so many problems especially frequent employees’ turnover. Every organization and business wants to be successful and have desire to get constant progress (Nishikawa, 2006). The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges (Oloko, 2003).

It has become a serious task to retain employees by organizations as a result of fierce competition regardless of their size, market focus and technology. In order to guide against the desire to leave by employees, there is need to build a strong relationship between employees and the organizations they serve. Employees or what we call human resource of any organization are the most central part so they need to be influenced and persuaded towards tasks fulfillment.

For achieving prosperity, organizations design different strategies to compete with the competitors and for increasing the performance of the organizations. A very few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success. It remains almost an impossible goal to achieve progress, success, or effectiveness in an organization if the employees of such organization are not satisfied, are not motivated for the tasks to perform and goals to achieve. This study therefore is focused on enlightening how an organization through its employees can achieve success and effectiveness.

Employee motivation, as a process, started with a need in human being which creates a vacuum in a person. In an attempt to fill the vacuum an internal driving force is generated which starts and sustains a chain of action and reaction Kayode (2003). It is at that point that the vacuum is also filled. With this background information (Nnabuife, 2009), define employee motivation as the internal or external driving force that produces the willingness to perform an act to a conclusive end. This first aspect of employee motivation we choose to describe as internal employee motivation because the driving force comes from within an individual. The second aspect is external employee motivation, is applied by the organization. This is because employees are motivated to identify with organization in order to satisfy their varied and variegates needs and desires (Oloko2003). Until they have been identified and properly satisfied, they will never cease to impede smooth running of the organizations (Nishikawa, 2006).

From the foregoing therefore, the study is intended to examine the relationship between employee motivation and organizational effectiveness as it relates to some selected soft drink firms in Rivers State.

1.2 Statement of Problem

The performance of organizations and employee motivation has been the focus of intensive research effort in recent times. How well an organization motivates its workers (Intrinsic or Extrinsic) in order to achieve their mission and vision is of paramount concern. Employers in both private and public organizations are becoming increasingly aware that motivations increases productivity. From the foregoing, and looking at today’s economic trend, it is evident that the pace of change in our business environment presents fresh challenges daily. Inasmuch as there are various research works on the influence of extrinsic and intrinsic motivation on employees’ performance in Nigeria, no research work has been targeted at employees of soft drink firms in Rivers State. Existing studies in Nigeria, aimed at the effect of motivators and hygiene on job performance by Jibowo (2007). Related studies on this study were on influence of monetary incentives and its removal on performance (see Bergum & Lehr„s, 2004). Of these studies in Nigeria, very few assessed the influence of Extrinsic and intrinsic motivation on employee’s performance on breweries firms. Moreover, scanty studies have been done on motivation in Africa (e.g., Centres & Bugental, 2007), Daniel and Caryl (1998 in Kenya, Akerele (2001) did not cover indeed, the areas that the objectives of this work covers. This study therefore attempts to empirically analyze how extrinsic and intrinsic motivational tools can be used by selected breweries firms’ in Port Harcourt metropolis to effectively obtain possible diversification plans in the face of the current economic challenges in Nigeria today.

Good remuneration has been found over the years to be one of the policies the organization can adopt to increase their worker performance and thereby increase the organizational effectiveness. 

Workers leave organization due to the fact that they are not motivated enough. Some are not willing to leave because they are enjoying some benefit in terms of promotion, which leads to increase in salaries and wages, bonus and some other incentives.

Workers prefer financial incentives to non-financial incentives, more especially the junior workers, due to the fact that such incentives are not used as a employee motivational technique, the company have the problem and challenges of retention of their employees. Hence low performance and productivity becomes the end result and finally work dissatisfaction.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between employee motivation and organizational effectiveness. The specific objectives are as follows:

1.       To examine the relationship between reward and organizational effectiveness.

2.       To examine the relationship between job enrichment and organizational effectiveness.

3.       To examine the relationship between promotion and organizational effectiveness.

1.4 Research Questions

1.       Does employee reward influences organizational effectiveness?

2.       Does job enrichment associate with organizational effectiveness?

3.       Does promotion associate with organizational effectiveness?

1.5 Research Design

HO: There is no significant relationship between employee motivation and organizational effectiveness.

HA: There is a significant relationship between employee motivation and organizational effectiveness.

1.6 Significance of the Study

The study will serve as guide to the management of soft drink firms particular and the Nigerian managers as a whole in determining the best way of getting the best output from their employees who are presently demoralized in the face of the prevailing socio-economic hardship.

The study is also aimed at contributing to the literature in Employee motivation particularly with reference to organizational effectiveness. Also, this work on completion will broaden the essence for application of modern employee motivational techniques for both public and private sectors respectively.

1.7 Scope/Limitation of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between Employee motivation and organizational Reliance. The dependent variable is organizational Reliance, measures by Robustness, Resourcefulness, and Response. While independent variable is employee motivation measure by Reward, Job enrichment and Promotion.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected soft drink firm in Rivers State which includes Coca cola and Pabod Breweries.

Unit of Analysis: The unit of analysis in this research involves staff of the soft drink firms at the time of carrying out the study. The scope of this study is to ascertain the relationship between employee motivation and organizational effectiveness.

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. Lastly, poor measurement instrument.

1.8 Definition of Terms

Employees: Employees would refer generally to members of staff of an organization, both management and non-management and would be used interchangeably with workers.

Employee Needs: This refers to basic wants of employees, the desire to satisfy which activates their energy to satisfy and the fulfillment of which engenders positive work attitudes.  In the study these needs are categorized into three: Existence, Relatedness and growth needs.

Employee motivation:  Employee motivation would be seen as that energizing force consciously applied through skillful appeal to employee basic needs to compel positive work attitude to achieve organizational goal.

Promotion: Elevation of an employee to a better job, better in terms of greater responsibilities, enhanced   authority more prestige   or status greater skill increased remuneration and fringe benefits.

Work Attitude: This would refer to employee’s state of mind as expressed in concrete action behavior or their manner of performing their duties.

Innovation

Although various definitions of innovation exist, all include the need to complete the development and exploitation aspects of knowledge, not just its invention

Competitiveness

For the firm, competitiveness is productivity reflected in either low costs or differentiated products that fetch premium prices

Adaptability

This construct closely corresponds to the idea that an organization develops its characteristics and behaviour patterns as a response to changes in its stakeholder environment.