Research Methodology final report, Assignments of Research Methodology

Research Methodology final report kampala international university

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EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE AT GLOBAL
LOFTY SOLUTIONS LTD, KAMPALA UGANDA
BY
AHEREZA ALLAN
2018-08-03841
A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS
AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR
THE AWARD OF BACHELOR’S DEGREE IN HUMAN RESOURCE
MANAGEMENT OF KAMPALA INTERNATIONAL
UNIVERSITY
MARCH, 2022
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EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE AT GLOBAL

LOFTY SOLUTIONS LTD, KAMPALA UGANDA

BY

AHEREZA ALLAN

A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS

AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR

THE AWARD OF BACHELOR’S DEGREE IN HUMAN RESOURCE

MANAGEMENT OF KAMPALA INTERNATIONAL

UNIVERSITY

MARCH, 2022

DECLARATION

I, AHEREZA ALLAN hereby declare that this thesis is originally mine and has never been submitted in any other academic institution. I also declare that all secondary information used has been acknowledged accordingly. Signature ………………………..…………….. Date :……………………………………………. i

DEDICATION

I dedicate this research to my parents father and mother for the commitment and support that they accorded to me through the academic world, may God bless you abundantly. iii

ACKNOWLEDGEMENTS

I recognize the different personalities who have made my research and academic journey a great success. I recognize the fundamental work done by my supervisor for the advice and guidance that has facilitated early completion of this research report. To my relatives and friends I appreciate your fundamental contribution of guidance, love, passion and every commitment made to enable me pursue to these level, Only God can awards you iv

vi

  • 2.1.1 VROOM'S EXPECTANCY THEORY.................................................................................................................
  • 2.1.2 EQUITY THEORY..........................................................................................................................................
  • 2.1.3 MASLOW'S HIERARCHY OF NEEDS...............................................................................................................
  • 2.3 RELATIONSHIP BETWEEN MOTIVATION AND EMPLOYEE PERFORMANCE.....................................................
  • 2.4 MEASURING MOTIVATION...........................................................................................................................
  • 2.5 REWARDS AND INCENTIVES.........................................................................................................................
  • 2.5.1 FINANCIAL MOTIVATION..........................................................................................................................
  • 2.5.1.1 BASE PAY...............................................................................................................................................
  • 2.5.1.2 CONTINGENT PAY..................................................................................................................................
  • 2.5.2 NON-FINANCIAL MOTIVATION..................................................................................................................
  • 2.5.2.1 RECOGNITION........................................................................................................................................
  • 2.5.2.2 GROWTH AND DEVELOPMENT...............................................................................................................
  • 2.6 RESEARCH GAP............................................................................................................................................
  • CHAPTER THREE................................................................................................................................................
  • METHODOLOGY................................................................................................................................................
  • 3.0 INTRODUCTION...........................................................................................................................................
  • 3.1 RESEARCH DESIGN.......................................................................................................................................
  • 3.2 STUDY POPULATION....................................................................................................................................
  • 3.3 SAMPLE SIZE................................................................................................................................................
  • 3.4 SAMPLING TECHNIQUES AND PROCEDURE...................................................................................................
  • 3.5 DATA COLLECTION METHODS......................................................................................................................
  • 3.5.1 QUESTIONNAIRE METHOD........................................................................................................................
  • 3.5.2 INTERVIEW METHOD................................................................................................................................
  • 3.5.3 DOCUMENT REVIEW METHOD..................................................................................................................
  • 3.6 DATA COLLECTION INSTRUMENTS...............................................................................................................
  • 3.6.2 INTERVIEW GUIDE....................................................................................................................................
    1. 7 VALIDITY AND RELIABILITY OF THE RESEARCH INSTRUMENTS......................................................................
  • 3.7.1 VALIDITY...................................................................................................................................................
  • 3.7.2 RELIABILITY...............................................................................................................................................
  • 3.8 DATA GATHERING........................................................................................................................................
  • 3.9 DATA ANALYSIS...........................................................................................................................................
  • 3.9.1 ANALYSIS OF QUANTITATIVE DATA...........................................................................................................
  • 3.9.2 ANALYSIS OF QUALITATIVE DATA..............................................................................................................
  • 3.10 ETHICAL CONSIDERATION..........................................................................................................................
  • 3.1.1 LIMITATIONS OF THE STUDY.....................................................................................................................
  • CHAPTER FOUR.................................................................................................................................................
  • DATA ANALYSIS, PRESENTATION AND INTERPRETATION....................................................................................
  • 4.0 INTRODUCTION...........................................................................................................................................
      1. 1 RESPONSE RATE......................................................................................................................................
  • 4.2 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS..................................................................................
  • 4.2.1 GENDER DISTRIBUTION.............................................................................................................................
  • 4.2.1 AGE GROUP..............................................................................................................................................
  • 4.2.3 YEARS OF WORKING EXPERIENCE..............................................................................................................
  • 4.3 MOTIVATION...............................................................................................................................................
  • 4.5 EMPLOYEE PERFORMANCE AT GLOBAL SOLUTIONS LIMITED........................................................................
  • CHAPTER FIVE:..................................................................................................................................................
  • SUMMARY, CONCLUSION AND RECOMMENDATION..........................................................................................
  • 5.0 INTRODUCTION...........................................................................................................................................
  • 5.1 SUMMARY OF FINDINGS..............................................................................................................................
  • 5.1.1 LEVEL OF MOTIVATION AT GLOBAL LOFTY SOLUTIONS..............................................................................
  • 5.3 CONCLUSION...............................................................................................................................................
  • 5.3.1 LEVEL OF MOTIVATION AT GLOBAL LOFTY SOLUTIONS LIMITED IN KAMPALA, UGANDA............................
  • 5.4 LIMITATIONS OF THE STUDY........................................................................................................................
  • 5.5 RECOMMENDATIONS..................................................................................................................................
  • 5.5.1 LEVEL OF MOTIVATION ON EMPLOYEE PERFORMANCE AT GLOBAL LOFTY SOLUTIONS..............................
  • 5.6 AREAS FOR FURTHER RESEARCH..................................................................................................................
  • REFERENCES......................................................................................................................................................

LIST OF ACRONYMS

CVI : Content validity index LTD : Limited N : Target population e : Significance level ix

LIST OF TABLES

x

employee' (Gunnigle et al, 2011, p.134). Thirdly, Steers and Porter state that due to external forces such as Lobby groups or unions, managers must look to new mechanisms in order to improve or maintain levels of effectiveness and efficiency within an organisation. Engaging and motivating employees towards these factors is vital for any manager. The fourth reason for the unrelenting interest with motivation is concerned with technological advancement. As new technologies emerge, their relevance to the organisation becomes increasingly important. Two important reasons that employees should be motivated are to achieve their own personal goals and the organizational goals (Shanks, 23). In a study done by the America's Society for Human Resource Management, they found that eighty-six percent of the people they surveyed were satisfied with their jobs (SHRM). This number could increase if the soon to-be discussed techniques are implemented in the specific work sites. In a different study by Career Vision, they found that thirty-three percent of employees feel as though they have reached a dead end in their career ("Job Satisfaction Statistics") (Lufunyo 2013). In realizing the importance of employee's motivation, the government of Uganda established various strategies and policies to improve working conditions for public servants. In early 1990s realized the importance of financial motivation as critical motivation factor to employees as the government experienced high labour turn over in public services. The government introduce "Pay and Incentive Policy" to compensate employee for the work they do. The policy aimed at motivating employees to perform better, retain them and attract talented applicants in public services (Lufunyo, 2013). The policy aimed at minimizing recruitment and training costs to the government. In 1994, the government adopted "Pay Reform" as an integral component of public service reform program (PSRP). The implementation of the pay reform took place in two major phases. 1st phase: covered the period of (1994 -19990 and its priorities were cost containment, rationalization of the public service salary and job-grade structure. 2nd phase: cover the period of 1999 to date, and its major priority was to enhance pay in order to ensure that the public has the capacity to attract retain and adequate motivate personnel with requisite skills to provide the desired public service and government strategic outputs (URT, 2010). Employees must be committed to adapting and .learning to use new, technologies for, the attainment of organisational objectives. Finally, public service need to ensure that a long term 2

plan is set in place to deal with the human capital of the local governments and place similar levels of importance with organisational talent as the perspective on finance and physical resources to ensure the concept of motivation is a primary concern. Therefore this study will conceptualize employee performance in terms of employee reliability, efficiency, effective and meets quality requirement of Global lofty solutions limited (Ryan and Edward, 54). 1.1.2 Theoretical Background Vroom's Expectancy Theory which was formulated by Victor Kroom in the 1960s. This theory suggests that people will choose only work patterns that result in the attainment of particular outcomes in which they hold value to. Therefore this theory helps management at Global lofty solutions limited in Kampala select work patterns that holds value to different employees within Global lofty solutions limited in Kampala. The research project also based on Maslow's Hierarchy of Needs this was introduced by Abraham Maslow 1943, this suggests that it's not only money that motivates employees, according to (Pulasinghage 2010, p.201) 'Maslow's hierarchy of needs model identifies five levels of motivation within an employee. Under this study, this theory helps management at Global lofty solutions to identify different motivators except money that can motivate different employees in order to improve their efficiency and productivity hence leading to profitability of Global lofty solutions. Finally is the Equity Theory, this was first formulated by J. Stacey Adams in the 1960s who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1963). Therefore, this suggests that all individuals have a desire to be treated fairly. This theory helps management at Global lofty solutions to ensure equality of all its employees, this promotes harmony hence promoting employee efficiency. Thus the study shall seek to assess the effects of motivation on employee performance in reference to the mentioned theories of motivation. These will be extensively discussed in the literature review in regards to the variables under study. 3

It was started on 8th/June/2015 the company majorly deals in recruitment and research 1.2 Statement-of the problem Majority of corporate bodies in Uganda especially companies like Global lofty solutions where the demand for a skilled and educated workforce is particularly intense witness a lot of employee turnover, absenteeism, inefficiency which have at many times led to low productivity and losses to many organizations in the country. This according to (Staren 2009) has been due to limited motivation techniques or strategies to the employees in order to entice them to efficiently work to increase productivity of the organizations. However while attracting employees is a pivotal issue, providing a substantial and appealing reward package to promote motivation and entice employee loyalty, to reduce the level of staff turnover is imperative. The productivity of these entities in an intense corporate environment relies on the work motivation of its employees. With this in mind, this research aimed to investigate the effects of motivation on employee performance at Global lofty solutions limited in Kampala-Uganda. 1.3 General objective of the study. The study sought to assess the effect of motivation on employee performance at Global lofty solutions limited, Kampala Uganda. 1.4 Specific objectives. i. To examine the extent of motivation at Global lofty solutions limited in Kampala Uganda ii. To determine the level of employee performance in Global lofty solutions limited, Kampala Uganda. iii. To assess the significant relationship between motivation and employee performance in Global lofty solutions limited, Kampala Uganda. 1.5 Research questions i. What are effects of motivation on employee performance at Global lofty solutions limited in Kampala, Uganda? ii. What is the level of employee performance in Global lofty solutions Kampala Uganda? 5

iii. What is the significant relationship between motivation and employee performance in Global lofty solutions limited Kampala Uganda? 1.6 Scope of the study. 1.6.1 Geographical Scope The study was conducted at Global lofty solutions limited, Uganda located along in Wandegeya in Kampala. This provides an optimal location for this study because it has been faced with a lot of employee related challenges. 1.6.2 Content Scope The independent variable which is motivation included nonfinancial rewards, allowances like housing, transport, education among others. The dependent variable which is employee performance was measured in terms of effectiveness, quality and efficiency of employees within their specific departments within the company. The study focused on motivation towards employee performance because many corporate companies in Uganda a faced by high rates of employee turnover due to low employee morale and yet no study has been conducted to analyse the cause of these. 1.6.3 Time Scope This research dissertation took a period of five months to reach its accomplishment. It started in May 2018 in which topic formulation was done until September 2018 in which the final copy of the dissertation was handed to the College of Economics and Management of Kampala International University. 1.7 Significance of the Study The study will help the researcher to gain skills in conducting research for instance interviewing, making questionnaire, observing, and data collection, widen the knowledge and improve on career and career development. The research will also be used as a future carrier and done as a business in order to earn some income. 6

CHAPTER TWO

LITERATURE REVIEW

1.0 Introduction This chapter started by discussing the underlying theories of Motivation that were developed by different scholars. It later elaborated the study objectives as were listed in chapter one of the research study. 2.1 Theoretical frame work 2.1.1 Vroom's Expectancy theory The expectancy theory was formulated by Victor Kroom in the1960s, a theory that followed on from the work done by Kurt Lewin and Edward Tolman with regards work motivation. According to Beardwell & Claydon (2007, p. 496), Vroom deducted that people will only choose work patterns that result in the attainment of particular outcomes in which they hold value to. There are three main factors that individuals may deliberate on when choosing the level of effort to put into work behaviour; Valence: The level that the anticipated outcome is attractive or otherwise. Instrumentality: The belief that a certain level of performance will result in attaining coveted rewards. Expectancy: The scale in which an individual believes that a certain level of effort will lead to a certain level of satisfactory performance, will that level of effort be enough to attain the goal? For an employee to be highly motivated all three of the 'VIE' factors must be present. However, criticisms of the expectancy theory are prominent as it has been 'criticized for failing to specify the nature and sources of variations in employees' beliefs and judgments' (Grant & Shin, 2011, p.6). The expectancy theory also fails to explain the reasoning behind employees altering their values or beliefs throughout a period of time. (Mitchell &Biglan, 1971). The · Vroom',s expectancy theory helped management to decide what rnotivates different employees within Global lofty solutions limited in Kampala-Uganda. 8

2.1.2 Equity Theory The Equity Theory, Formulated by Stacey Adams (1965), .was done so on the principle that all individuals have a desire to be treated fairly. The Equity Theory is based around the terms equity, as being treated fairly in comparison to others and inequity where individuals believe not to be treated as favourably as others. How an individual bases whether they are being treated with equity or inequity is done so by focusing on the individual's inputs and outputs. Inputs can be defined as what the individual brings to the workplace, such as knowledge, skills and expertise. Outputs are defined as what the individual receives as a result of their inputs. An employee compares his or her job's inputs with an outcomes ratio. If the employee perceives inequality, he or she he will act to correct the inequity.' (Al-Zawahreh and Al-Madi, 2012, p.158) Adams (1965) outlines the available options to individuals to correct any inequity, these are; Modify Inputs, Modify Outputs, Modify perception of self, Modify perception of comparator, Switch Comparator. Grant & Shin (2011) outline that one of the main critical issues regarding the equity theory relates to how management and employees deal with discrepancies that arise from dissimilar types of comparisons. 'When pay dispersion is high, star performers making selfcomparisons perceive high equity, but average and low performers making social comparisons may perceive low equity' (Grant & Shin, 2011, p.9). Colella, Paetzold, Zardkoohi, & Wesson (2007) outline that one solution to solve such a problem may lie in implementing a pay secrecy policy. Therefore this theory was used to show how non-financial motivation like recognition and equal treatment of all employees at Global lofty solutions limited in Kampala Uganda affects employee performance 2.1.3 Maslow's Hierarchy of Needs One of the main contributors to the needs theory (Maslow, 1954) takes this theory further to show that it is not only money that motivates employees. According to (Pulasinghage, 2010, p.201) 'Maslow's hierarchy-of needs model identifies five levels of motivation with in an employee. Within each level, there are needs that employees would like to get fulfilled.' Maslow's hierarchy proves that it is not just money that motivates employees. The five levels are: Self-actualization: Personal -.growth, Problem. solving Secondly is Esteem needs, these include 9