EXTRINSIC MOTIVATION AND EMPLOYEE PERFORMANCE AMONG HEALTH WORKERS IN EDO STATE ABSTRACT Employee extrinsic motivation in the health sector is one major issue that needs to be tackled in a manner that satisfied employees with their current employment and allowed them to develop a loyalty towards the organizations they work for. There are numerous factors that influence employee motivation in such a dynamic environment. One important case is that of the health care sector, which has failed to keep its employee turnover rates low. High employee turnover comes as an unfruitful cost to the employers and it is important to deal with such a cost in order to remain competitive. The purpose of this study was to analyze the use of extrinsic systems in enhancing employee job performance. The study used a survey research design of health workers in the University of Benin Teaching Hospital, Benin City, Edo State. The study used Bill Golden sampling technique to arrive at the expected sample size of Eight-Five (85) respondents. The data was analyzed using descriptive statistical method and Pearson correlation. The study found that out there is a significant relationship between extrinsic motivation and the performance of employees; it also revealed that verbal praise, written recognition, financial recognition, consequences and punishment, and peer recognition as extrinsic motivators were all considered by the respondents to be available in their place of work. The study recommended that the organization should consider the provision of fringe benefits, paying commissions to workers who put in extra effort, giving a sense of responsibility, promotion of consistently hardworking employees and treating the workers equally. TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION 1.1 Background to the Study - 1.2 Statement of the Research Problem - 1.3 Research Questions - - - 1.4 Objectives of the study - - 1.5 Research Hypotheses - - - 1.6 Significance of the study - - 1.7 Limitations of the Study - - CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction - - 2.2 Concept of Performance - 2.3 The Meaning of Motivation - 2.4 The Relationship between Employee Motivation and Job Performance 49 CHAPTER THREE: METHODOLOGY 3.1 Introduction - - - - - 3.2 Research Design 3.3 Research Population - - - 3.4 Sampling and Sample Size 3.5 Research Instrument - - - 3.6 Reliability of Research Instrument - 3.7 Operationalization an Measurement of Variables 3.8 Sources of Data - 3.9 Methods of Data Analysis - CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction - - 4.2 Profile of Respondents - - 4.3 Analysis of Research Objectives - - 4.4 Discussion of Findings - - CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION 5.1 Introduction - - - - 5.2 Summary of Findings - - 5.3 Contribution to Knowledge - - 5.4 Conclusion - - - - 5.5 Recommendations - - 5.6 Suggestion for Future Studies - - Bibliography - - - Appendix I - - - CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Workers are the crucial asset to an organization and they engage in preserving the booming image of organization. Employee performance is the key reason in ensuring that the organization is run easily and productively. Good employee performance will improve the organization performance. To maintain a good employee performance, a suitable performance management is needed (Deci & Ryan, 1985). Motivation entails a host of psychological processes that culminate in an individual’s needs and intentions to perform in a certain way. Motivation is the term used to refer to the whole class of drives, desires, needs, requests and related forces. It is a drive towards an outcome (Bruzelius & Skarvad, 2004). According to Nnadi (2010), motivation is aimed at mobilizing and utilizing the fullest potentials of the employees towards the accomplishment of the goals and objectives of the organization. Any individual who has been following the problems surrounding labor-management affairs in Nigeria would agree that the real crisis facing Nigerian workers is that they are lacking in enthusiasm and under-appreciated (Nnadi, 2010). Comparatively speaking, reward system in Nigeria is amongst the poorest in the world. The workers are not paid living income; they are used and often not needed without effective compensations program and social security benefits to see them throughout their unproductive years (Bruzelius & Skarvad, 2004). Researchers and managers have thought that organizational objectives and goals are unachievable without enduring loyalty of members and employees of the organization. The globe is going through mammoth change. Globalization of businesses are growing and information technologies are progressing (Dockel, 2003).These major changes reshape significantly, for better and for worse (Keritner, 2004). They create changes in the way business is done, the way workers behave and the way managers handle their employees. For companies to continue thriving, they are expected to adapt to these changes (Vercueil, 2001). The changes that are reshaping the world altered the way organizations especially the Nigerian public health sector function and have also led to changes in workers characteristics (Robbins, 2000).When employees have elevated independence, extrinsic motivation and receive response about their performance, and have an essential, identifiable piece of work to do which requires skill diversity, they may well experience mind-set of joy and also intrinsic motivation to keep performing well (Hackmam & Oldham, 1980). Hygiene factors like pay, bonus benefits, and also work conditions can avoid disappointment, but it doesn’t motivate the workers. Motivators such as accomplishment, acknowledgment, responsibility, and advancement enhances satisfaction from work and stimulate people to a larger effort and performance (Frederick Herzberg, 1952).According to Adam Equity Theory (1963), less incentive may result to the declining of employees' performance such as high number of absenteeism, in addition to lack of awareness in doing task not integrated in their job depiction. In other words calculative in whatever task given to them, not focusing on their job which is also decreasing in job quality. The theory also propagates that the decrease in employees' performance could take place whenever they felt that their assistance was not fairly rewarded. Alternatively, incentives can influence employees' performance. Employer or organization should reward the positive performance. Rewards will encourage the workers and when the workers motivation is increased, it also will increase the employee’s performance. Additionally, employee performance also can be enhanced through an incessant and interactive method to assist departments and teams attain business goals and to help workers to improve their performance. Increase in employees’ performances will increase the public health sector’s performance. It is no longer questioned that motivation plays a vital part in influencing employees’ performance (Buelens, Carrell & Elbert, 2010). Instinctively, being ambitious and engaged will support a superior work effort. Thus, it is obvious that motivating employees is a major challenge in front of all types of managers in the present day. According to Buelens et al (2010), endless theories over the past 80 years have tried to work out how motivation works and what requirements managers need to take in order to instigate an efficient workforce. Theories have lengthened from wanting to decide the universally applicable drives, like Maslow’s hierarchy of needs and Alderfer’s ERG theory, to creating realistic models of do’s and don’ts within motivation, like Locke’s goal-setting theory or Vroom’s expectancy theory (Buelens et al., 2010). In business, however, it seems that one particular motivational tool is used greatly, namely money. Proof of this can obviously be seen by the wide-ranging use of bonuses, necessities and stock options in companies today; money is, and always has been, the traditional go-to motivator (Dewhurst, Bhattacharya & Mukherjee, 2010). But how well do these economic carrots and other extrinsic incentives really work to motivate today’s workers? Numerous motivation theories have before now questioned if monetary incentives can actually work as long-term motivators; such as Herzberg’s two-factor theory and Hackman & Oldham’s job characteristic model. Herzberg’s hypothesis is that money is one of the important hygiene factors that need to be satisfied in order for the employee not to feel dissatisfaction. However, Herzberg holds that money does not work as a stimulant, at least not in the long-run (Buelens et al., 2010). This research work looks at the role of extrinsic motivation in employee performance with specific reference of the Nigerian public health workers. 1.2 STATEMENT OF RESEARCH PROBLEM Extrinsic motivation is very pivotal to the growth and wealth creation of the Nigerian public health sector (Phalomano, 2003). Extrinsic motivation can reward and motivate the public health workers to enable them to put in their best performances into the Nigerian public health sector (Phalomano, 2003). Workers are extrinsically motivated if they are competent of satisfying their needs ultimately, particularly through financial compensation (Amabile, 1993). Wealth is a “goal which provides satisfaction independent of the actual activity itself” (Phalomano, 2003). Extrinsically motivated organization in firms is achieved by involving employees‟ financial motives to the goals of the company. The ideal incentive system is strict pay-for performance. Ideally the health sector is supposed to provide thriving work environment that will allow the workers to execute at their best and give maximum output. The health sector should also be allied with staff trainings to maximize the productivity of the workers and ensure maximum returns for the organization (Latham, 2007). The public health sector should provide the employees with good compensation packages and provide opportunities for career growth. The health sector ought to offer adequate opportunities for their staff to realize expand and exploit their talents and capabilities to their fullest potentials. The health sector has plenty of opportunities to maintain the overall growth of the workers as well as the organization itself (Philips, 2012). The present situation in the Nigerian’s health sector is worrying with the most complaints emanating from this sector. There are numerous complaints of staff exploitation and neglect (Numerof, 2003). Most often, the cases of lack of compensation for job done by the workers have become a norm. There are issues of workers leaving the organization among other employee related issues. Most employers usually cite poor economic conditions as their excuse. Alternatively, the employee who knows his worth usually cites his contributions to the development of the organization as his reason for the claim for a better condition. Fear of losing one's job makes it impossible for him to stipulate for an improvement in his working conditions. Some public health workers may know their rights but they cannot demand for them for fear of losing their jobs. The study tends to focus on one of these causes of unsatisfactory performance, namely, the lack of motivation in the Nigerian workplace. There are many theories and approaches to employee motivation, Carrell et al. (1995) affirmed that there is one significant aspect about motivation and that is to decide what the employee wants and offer it as a reward for good performance. One of management’s most complicated responsibilities is to ascertain employee needs and also to create an enabling environment in which those desires are fulfilled. One of the techniques to stimulate employees and enhance job performance is by rewarding good work. It has mainly been the taxing techniques to identify the most suitable reward and to implement it in such a way that the business benefits. It is therefore important to look at reward systems, view the alternatives available and understand them. According to Kreitner, Kinicki and Buelens (1999) the focus is on different components: types of rewards; distribution criterion, and preferred outcomes. 1.3 RESEARCH QUESTIONS In the light of the above, the research study intends to ask the following questions: 1. What are the types of extrinsic systems available in Nigerian organizations? 2. What is the relationship between extrinsic systems on employee performance? 3. What type of extrinsic motivation do employees value most? 4. What are the factors that affect the type of extrinsic systems being used? 1.4 OBJECTIVES OF STUDY Based on the above research questions, the objectives can be put forward as thus: 1. To ascertain the types of extrinsic systems available in Nigerian organizations. 2. To establish the relationship between extrinsic system on employee performance. 3. To ascertain the type of extrinsic motivation employee value most. 4. To determine the factors that affects the type of extrinsic systems being used. 1.5 RESEARCH HYPOTHESIS Subsequent to the aforementioned objectives and research questions, the following hypotheses have been formulated: H1: There are types of extrinsic systems available in Nigerian organization H2: There is a significant relationship extrinsic systems and employee performance H3: There are different factors that affect the type of extrinsic systems being used. 1.6 SIGNIFICANCE OF THE STUDY The study is significant because it seeks to examine if the system of extrinsic incentives which till date has occupied a vital premise in an endeavor to motivate public workers needs to be sustained, modified or discontinued. This is most relevant since majority of recent industrial conflicts have to do with economic issues. On human relations aspect, numerous appeals are aimed at the Nigeria management personnel requesting them to develop favorable attitude towards their jobs and to be more devoted to cooperate goals. But in the day to day operations of various organizations much importance has been on motivational patterns or factors not congruent with the “national character” and societal expectations. The fact is that workers bring various built in set of goals, values and need with them to the job and expectations of their realization determined participation in organization. 1.7 SCOPE OF THE STUDY This study centered on influence of extrinsic motivation on job performance among public workers. Geographically, the research work was limited to public workers working in the University of Benin Teaching Hospital (UBTH), Benin City, Edo State.
EXTRINSIC MOTIVATION AND EMPLOYEE PERFORMANCE AMONG HEALTH WORKERS IN EDO STATE
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