A Study on Employee Motivation at Tanfac Industries Limited Cuddalore
term paper_2
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CHAPTER ONE
GENERAL INTRODUCTION
1.0 Introduction
The section presents an overview of the content of this study which sought to examine the
motivational programs and recommended improvements at Seed Production Division of Ghana
Cocoa Board in the Greater Accra Region of Ghana. It covers the background of the study,
statement of problem, brief literature review and suggestions for improvement.
1.1 Background of the Study
Employee motivation has been central research topic for scholars and practitioners. As a result,
an abundance of theories and approaches were developed in order to explain the nature of
employee motivation in organizations and how it influences employee performance at work. The
number of publications is often used as an indicator for the important, interest and trends of
certain subjects. In that sense, motivation is really an important topic. This is because, the
number of research articles and books that incorporated the word ‘’motivation’’ in their title or
abstract from 1950 to 2008 is around 65,000 ( Landy & Coute, 2010).
Some studies have suggested that motivation causes satisfaction of the employee which directly
influences performance of the employee which directly influences performance of the employee
( Kalimullah & Ali, 2010). Motivation therefore, has become management tools that expectantly
contribute to firm’s effectiveness by influencing individual or group behavior. All businesses
use pay, promotion, bonuses or other types of motivation to influence and encourage high level
performances through motivational measures are therefore made today by many organizations
with the hope of future benefits for an organization through the enhancement of the performance
of their employees (Storey, 2001). In this study, the research sought to investigate empirically
the motivational programs (both financial and non financial) at Seed Production Division of
Ghana Cocoa Board, in the Greater Accra Region of Ghana and recommended improvements.
The Seed Production Division (SPD) is a unit of Ghana Cocoa Board (COCOBOD) that was set
up in January 2001 following the dissolution of the Cocoa Services Division as part of the re-
organization of the Agriculture sector with the unification of Cocoa Extension with the
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mainstream Department of Agricultural Extension Services (DAES) of the Ministry of Food and
Agriculture (MoFA) to produce and supply Cocoa Seed to farmers.
The functions of COCOBOD centre concentrates on the production, research, extension, internal
and external marketing and quality control. The mission of the Seed Production Division is to
multiply and distribute the best quality planting materials in the most efficient and cost effective
manner in adequate quantities to farmers. These units are located in the Eastern, Western,
Ashanti, Central, Brong Ahafo, and Volta with Greater Accra serving as the head office
( COCOBOD, 2014).
1.2 Statement of the Problem
It appears that motivation plays a key role in employee performance in organizations. According
to Perry and Porter (1982), managers must motivate their employees to perform at the highest
levels for the benefits of their organizations. This is because most managers often fulfill their
organizational goals through the work of employees. This suggests that how people are
motivated determines how high or low their performance would be. There were various studies
that examined motivation and employee performance, both international and local levels.
Example of some researchers who conducted studies in the international context on motivation
are Asim (2013) in Pakistan, Kiruja and Mukuru (2013) in Kenya, Uzonna (2013) in Cyprus,
Solomon, Hashim, Mehdi, and Ajagbe (2012) in Nigeria. At the local level, Nduro (2012), Osei
(2011), Owusu (2012) and Vormawah (2009) also studied motivation and employee
performance. These studies found that motivation has significant positive influence on employee
performance. However, almost all these studies were conducted other sectors such as education,
insurance, local government, banking and finance sector. Thus, studies examining the influence
of motivation on employee performance in the agricultural sector are few or non-existent,
particularly in Ghana.
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1.3 ResearchObjectives
The general objective of this study was to identify and discuss motivational programs at the Seed
Production Division (SPD) of Ghana Cocoa Board in relation to the motivation theories and
recommend improvements.
Ascertain the motivational programs at Seed Production Division of Ghana Cocoa Board
Relate the motivational programs to the motivational theories
Assess whether motivation has a significant influence on employee performance at SPD
Recommend new motivational programs and ways of improving existing motivational
programs at SPD
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews some literature considered relevant to the study. Concepts relevant to the
study explained; motivation, types of motivation and employee performance. Theoretical
literature and empirical literature also were discussed. The theoretical literature section discusses
Maslow’s Hierarchy of needs, Herzberg’s Motivation- Hygiene theory, Equity theory and
Vroom’s Expectancy theory. Some previous studies done on the topic are also reviewed under
the empirical literature of the chapter
2.1 Explanation of Concepts
2.1.1 Motivation
Motivation is defined variously in literature by scholars. For example, Huczynski and Buchanan
(2007) argued that “motivation” is a combination of goals towards which human behavior is
directed; the process through which those goals are pursued and achieved and social factors
involved. Also, Chowdhury (2007) sees motivation as a progression of moving and supporting
oriented behavior.
Furthermore motivation is defined as a psychological drive that directs a person towards an
objective; Motives are “whys” of a behavior. Motivation is not a simple concept; instead
motivation pertains to various drives, desires, needs, wishes and other forces. Managers motivate
by providing an environment that induces organization members to contribute. The need-want-
satisfaction chain is somewhat oversimplified (Uzonna, 2013).
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2.1.2 Types of Motivators
a. Financial/Monetary Motivation
Motivators are of two main types in the Seed Production Division of Ghana Cocoa Board;
Financial (monetary) motivation or motivators and non financial (non-monetary) motivators or
motivation. Financial motivators comprise all motivational packages that have monetary value
and add up to total remuneration-base-pay, pay contingent on performance, contribution,
competency or skill, pay related to service, financial recognition schemes, and benefits such
pensions, sick pay and health insurance.
Monetary factors of motivational programs in Seed Production Division comprise the following
elements:
i. Salaries or wages
Salaries or wages is one of the most important motivational factors. Reasonable salaries must be
paid on time. While fixing salaries, the organization must consider factors such as: Cost of
living, company ability to pay, capability to pay etc. Ghana Cocoa Board (SPD) wages are
among the top ten companies which have higher wage paid to employees. Salaries are paid on
timely basis and every year salaries are reviewed upwards. This has highly reduced the level of
labour turnover in the industry.
ii. Bonus
It refers to extra payment to employee over and above salary given as an incentive. In Ghana
Cocoa Board, employees are given adequate amount of bonuses. At the end of every year
salaries of employees are doubled in the Christmas festivity month.
iii. Incentives
Ghana Cocoa Board (SPU) also provides additional incentives such as medical allowance,
educational allowance, duty travel allowance, overtime allowance, risk allowance, fuel
allowance and utility allowance to its employee.
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b. Non-Financial/Monetary Motivation
According to Armstrong (2010), non-financial motivators are those that focus on the needs
people have to varying degrees for recognition, achievement, responsibility, autonomy, influence
and personal growth. He further maintains that non-financial motivators can be extrinsic such as
praise or recognition, or intrinsic, associated with job challenge and interest, and feeling that the
work is worthwhile.
The following are non monetary motivational programs in Ghana Cocoa Board (SPD).
i. Status or Job title
Employees of Ghana Cocoa Board are provided higher status or designations that make the
employee motivated. Employees prefer and proud of designations or titles. Example a labourer at
the Directorate of SPD is called “EXECUTIVE ASSISTANCE” instead of the usual
“LABOURER”.
ii. Working Conditions
Better working conditions such as air conditioned rooms, proper plant layout, proper sanitation
equipment and machines are provided at Ghana Cocoa Board which highly motivates employees.
iii. Job Security
In Ghana Cocoa Board, SPD, there is a guaranteed job security, lack of fear of dismissal. This
also is a good way to motivate employees.
2.2 Theoretical Literature Reviews
There are various theories that seek to explain motivation and performance link. The following
presents some of the theories that are relevant to the study: Maslow theory of needs, the two
factor theory of Herzberg, Equity theory and Expectation theory of Vroom.
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2.2.1 Maslow’s Theory of Needs
Maslow’s theory specifies that there are five basic human needs. These are activated in a
hierarchical manner. These needs are physiological needs; safety and security needs; social
(affection) needs; esteem needs, and self-actualization needs (Maslow, 1943). When one level of
need is satisfied, it ceases to motivate. The next higher level needs then become a motivator to
the person. The following briefly explained the various needs;
a. Psychological needs
These needs are the ones that assure yourself that you have satisfied your basic needs. They are
also called biological needs and few of these needs are breathing, food, shelter, clothing and
sleep. According to Maslow, you have to fulfill these needs to move up to the next level. In
Ghana Cocoa Board (SPD), employees have satisfied the first need on the hierarchy of Maslow.
b. Safety needs
Safety needs are also called the security needs. They are needs that are to be felt and fulfilled in
order to move on, such as job security. Private organization’s workers are the one that mostly
feel that their work is at risk during financial crisis. However at Ghana Cocoa Board (SPD),
employees feel secured about their work.
c. Belonging needs
The needs in this level also known as social needs. People need to feel that they belong to a
group (social ties) and are accepted the way they are. These are feelings of friendship, love, and
sexual intimacy. At work, having colleagues and not feeling you are wanted is a lack in a
person’s life. At Ghana Cocoa Board (SPD), though there are colleagues, most employees feel
not wanted. These highly de-motivate staff of the company.
d. Esteem needs
This are also called ‘egoistic’ needs and are difficult to satisfy in many organization including
Ghana Cocoa Board (SPD). People need to feel that they are respected; we have a self esteem so
we have to be valued whiles respecting others. Examples of these needs are promotion, status,
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advancement, achievement, recognition and confidence. Although staffs are promoted in Ghana
Cocoa Board, (SPD), most employees feel cheated because there is unfairness in doing so.
e. Self –actualization
We feel a need to grow at work and that we have the potential of doing things. For instance,
we are born to be a manager, to impose rules and set discipline, incentives to work
productively and boost their moral. Morality, acceptance of facts, lack of prejudice,
creativity, spontaneity, and problem solving are all examples of self-actualization needs. It is
based on doing what we can, in other words we must be what we are able to be.
2.2.2 Herzberg’s Motivation-Hygiene Theory
To better understand employee attitudes and motivation, Frederick Herzberg performed
studies to determine which factors in an employee’s work environment caused satisfaction or
dissatisfaction.
He published his findings in the 1959 book (the motivation to work). The studies included
interviews in which employees were asked that pleased and displeased them about their
work.
Herzberg’s theory provides a strong link between motivation and productivity of employees
in the SPD of Ghana Cocoa Board. He presents that performance can come as an emanation
of feelings like achievement, advancement, growth which are related with motivation. He
emphasized the importance of job enlargement which includes increased responsibility and
involvement, opportunities for advancement and the sense of achievement. The following is a
glance at each of the motivation factors according to Herzberg.
a. Achievement: An example of positive achievement might be if an employee completes a
task or project before the deadline and receives high reviews on the result, the
satisfaction the employee feels would increase. However, if that same individual is
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unable to finish the project in time or feels rushed and unable to do the job well, the
satisfaction level may decrease.
b. Recognition: When the employees receive the acknowledgement they deserve for a job
well done, the satisfaction will increase. If the employees work is overlooked or
criticized it will have the opposite effect.
c. Work itself: This involves the employees perception of whether the work is too difficult
or challenging, too easy, boring or interesting
d. Responsibility: This involves the degree of freedom employees have in making their own
decisions and implementing their own ideas. The more liberty to take on that
responsibility the more inclined the employee may be to work harder on the project, and
be more satisfied with the result.
e. Advancement: This refers to the expected or unexpected possibility of promotion. An
example of negative advancement would be if employee did not receive an expected
promotion or demotion. In SPD, most employees are not motivated due to what they call
unfairness in promotion.
f. Possibility of Growth: This motivation factor includes the chance one might have for
advancement within the institution. This could also include the opportunity to learn a new
skill or trade. Though there is this opportunity of growth at Ghana Cocoa Board, SPD, it
has a bureaucratic system which flaws the elements of motivation in that system.
2.2.3 Vroom’s Expectancy Theory
Vroom’s expectancy theory of motivation asserts that people are motivated to work when
they expect that they will be able to achieve the things that they want from their jobs.
(Greenberg & Baron, 2003). Vroom (1964) in an influential work, focused his attention on
individual behavior in the work place. He observed the work behavior of individuals with the
object of explaining the processes involved. He assumed that most of the observed behavior
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would be motivated, and thus, was result of preferences among possible outcomes and
expectations concerning the consequences of preferences among possible outcomes and
expectations concerning the consequences of actions. His principal objective methodology
was ‘objective observation’. The essential elements of Vroom’s ideals have come to be
called ‘Expectancy theory’. The crux of this theory is that motivated behavior is a product of
two key variables:
The valence of an outcome for the individual and
The expectancy that a particular act will be followed by a predictable outcome.
2.2.4 The Equity Theory
Adam’s (1965) Equity theory argues that an individual would compare what they are
receiving to what others are receiving and if they discover that they receive less this would
lead to dissatisfaction. It is only when rewards and efforts are seen reasonable compared to
the rewards of others, it influence their motivation. Equity theory suggests that individuals
engage in social comparison by comparing their efforts and rewards with those of relevant
others. The perception of individuals about the fairness of their reward relative to others
influences their level of motivation. Equity exists when individuals perceive that the ratio of
efforts to rewards is the same for them as it is for others to whom they compare themselves.
At SPD, in terms of wage and bonuses, staffs feel satisfied and motivated because they
believe that the reward gain merits their effort and is in line across all the divisions and
subsidiaries.
Inequity in his view, exists when individuals perceive that the ratio of efforts to rewards is
different (usually negatively so) for them than it is for others whom they compare
themselves. They are basically two types of reward: over reward and under reward.
Under reward occurs when a person believes that he or she puts more effort than another, yet
receives same reward, or puts in the same effort as another for a lesser reward. For instance,
at Ghana Cocoa Board, SPD sections of the staff are of the view that they are not treated
fairly in terms of assessment and promotions. This de-motivates employees and affects
output of staff thereby affecting production at large.
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CHAPTER THREE
RECOMMENDATION AND CONCLUSION
3.1 Recommendations
The following recommendations are made based on motivational findings at Seed Production
Division
i. The management of Seed Production Division of COCOBOD must design financial
reward systems in a way that motivate workers to improve performance. This can be
done by designing pay and incentive schemes that align workers interest to the goals of
the organization
ii. Management should provide opportunity for growth and advancement of the workers by
giving them more challenging tasks. This will help in unleashing their potential for
enhanced performance
iii. Training and development programmes can help in providing possibility of growth for
the employees. Management therefore should develop and implement employee training
and development programmes based on their performance appraisal which normally
identifies their training needs. Selection criteria for the beneficiaries should be fair,
equitable, and transparent.
iv. Proper mix of financial and non financial reward system should be designed so as to
ensure that workers are well energized to do more. This is important because people are
motivated by different factors. Such appropriate mix could reduce such a problem to the
barest minimum
v. Managers and supervisors of Seed Production Division of COCOBOD should also
motivate the workers by praise and recognition when they deserve it. Recognition could
be realized by instituting best workers award to reward publicly workers who chalked a
particular success for the organization. This should include incentives to be given to
deserving employees for giving valuable suggestions. The administration and
management of this programme should also be open, fair and transparent. Instead of
managers selecting such awardees, the workers should be given the power to elect
workers for such recognitions.
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vi. Managers of Seed Production Division should also delegate authority to subordinates so
as to motivate them perform the task with dedication and commitment. This is because
when authority is delegated, the subordinate knows that his superior has placed faith and
trust in him.
vii. Management should also organize training programmes for staff of the Division on
regular basis. This will not just enrich their job performance but very key tool for
motivating workers.
viii. Staff should be integrated as a member of quality circles, or a committee or some other
form of employee participation so as to motivate employees. This will make employees
feel as being recognized or feel as a part of the company. In addition, managers of the
division should force staff work in groups to achieve an organizational goal and promote
teamwork. Some private firms cater for assistance and counseling in which case workers
feel free to share their views. Managers of Seed Production should adopt this since it
highly motivates the employees.
3.2 CONCLUSION
The study examined motivational programs at Seed Production Division in relationship to the
motivational theories, and recommended improvements. The study found that although there are
a number of motivational programs at the Division which includes the financial and non financial
motivations such as: Lucrative wages and salaries, bonuses, medical care, status of job title, good
working environment and others. However Management still needs to take consideration in some
motivational programs which employees sometimes cherish and feel proud of even more than
what already exist.
Employees of Seed Production Division feel much motivated when their superiors praise and
give recognition to their effort on assignments, give training to add value to their experience and
status, delegate works of high experience that will challenge them to give out their very best,
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social programs like celebrating of birthdays of staff, excursions and regular keep fit exercise
and games do not just reduces stress and boost morale of staff but it help motivate employees
and make them feel proud and members of the organization
Finally, staff; especially the junior staff feels very motivated if Management considers their
views and sometimes implements them.
We therefore urge Management to improve on the existing motivational programs and give
consideration to the aforementioned motivational programs.
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REFERENCES
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Kiruja, E.K & Mukuru, E. (2013). Effect of motivation on employee performance in
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Maslow, A.H (1943). A theory of human motivation, psychological review, 370-396
Mullins, L.J (2005) Management and organizational behavior, Prentice Hall, UK
Esi D. (2015) The effect of motivation on employee performance at Seed Production
Division of Ghana Cocoa Board. Unpublished Maters Thesis, University of Ghana,
Legon
COCOBOD (2004) Subsidiaries or subdivisions of Ghana Cocoa Board
https://www.cocobod.gh.com
Justice S. Introduction to organizational behavior (Chapter Four).