University of Ghana http://ugspace.ug.edu.gh DEPARTMENT OF ORGANISATION AND HUMAN RESOURCES MANAGEMENT WEEKKEND MASTER OF BUSINESS ADMINISTRATION HUMAN RESOURCE MANAGEMENT MOTIVATION AND PERFORMANCE ENHANCEMENT IN ORGANISATIONS: A CASE STUDY OF PASSIONAIR GHANA. JENNIFER NAA ASHORKOR TETTEH 10638515 0244368879 / 0245126315 jennifernatetteh@gmail.com PROFESSOR DAN OFORI 25/04/19. University of Ghana http://ugspace.ug.edu.gh Declaration I, Jennifer Naa Ashorkor Tetteh, hereby declare that except for the references to other people’s works which have been duly acknowledged, this research “Motivation and Performance Enhancement in Organisations: A Case study of PassionAir, Ghana” is the result of my own research work undertaken under the supervision of Professor Dan Ofori of the University of Ghana Business School, and that no part of this work has been presented elsewhere. Jennifer Naa Ashorkor Tetteh (10638515) …...……………… …………………… Student’s Name & ID Signature Date Professor Dan Ofori ........................……. ............................ Supervisor’s Name Signature Date i University of Ghana http://ugspace.ug.edu.gh Acknowledgement My gratitude goes to the Almighty God for granting me good health, guidance, and helping me this far in my education. I wish to express my sincere thanks to my supervisor Professor Dan Ofori, a lecturer at the University of Ghana Business School for his support, directions, and guidance which enabled me to complete this work. I am also grateful to the management and staff of PassionAir Ghana for their supports. A special thanks also goes to my husband, Mr. Jerry Nyanteh, for his immerse contribution towards this programme of study. ii University of Ghana http://ugspace.ug.edu.gh Dedication This work is dedicated to the Almighty God for His protection and guidance; and my entire family. iii University of Ghana http://ugspace.ug.edu.gh ABSTRACT The issue of employee dissatisfaction and related attitude towards work is assuming alarming rate worldwide. The situation is even more serious in developing countries where working conditions are unattractive (Miroshnik, 2002). As indicated by Dartey-Baah & Amoako (2011), motivation is a key determinant of work performance. It strengthens, directs, and sustains human behavior. Motivation is crucial for organisations to function; without motivation employees will not put up their best and the company’s performance would affect negatively. This study critically examines the impact of motivation and performance enhancement at PassionAir Ghana. The data were collected from 209 self-administered questionnaires distributed to employees. Both qualitative and quantitative techniques are employed in the analysis of data collected from the field. The study found that, monetary rewards like pay, commission and bonuses motivated employees, and at the same time non-monetary rewards like recognition, decision making roles, promotion, staff bus, flexible working hours etc. were major sources of motivation. The study also found that, enabling working conditions such as temperature of offices, health and safety, well-lit environment, good chairs and tables, etc. at the workplace were some sources of motivation to employees. Also, the study found that, job design in terms of the tasks, freedom, autonomy and opportunity to decide what and how to perform job motivated employees. The study recommended that, to motivate and satisfy employees, managers need to effectively blend the factors well to suit the special needs of their employees. Managers at PassionAir Ghana should strike a balance between the monetary factors and non-monetary factors with more emphasis on the non-monetary factors since the study found non-monetary factors to motivate employees PassionAir Ghana better. iv University of Ghana http://ugspace.ug.edu.gh Table of Contents Declaration.....................................................................................................................................................i Acknowledgement........................................................................................................................................ii Dedication....................................................................................................................................................iii Abstract........................................................................................................................................................iv CHAPTER ONE: INTRODUCTION ....................................................................................................... 1 1.1 Background of the Study................................................................................................................... 1 1.2 Statement of the Problem .................................................................................................................. 5 1.3 Study Objectives ............................................................................................................................... 6 1.4 Research Questions ........................................................................................................................... 7 1.5 Significance of the Study .................................................................................................................. 7 1.6 Scope of the Study ............................................................................................................................ 8 1.7 Research Methodology……………………………………………………………………………………………………………....8 1.8 Limitations of the Study. ..................................................................................................................12 1.9 Organization of the Study ................................................................................................................12 CHAPTER TWO: LITERATURE REVIEW ........................................................................................ 13 2.1 Introduction ........................................................................................................................................... 13 2.2. Theoretical Review .............................................................................................................................. 13 2.2.1 The Concept of Motivation ................................................................................................................ 13 2.2.2 Types of Motivation ........................................................................................................................... 14 2.3.1 Effect of Motivation on Organisation Performance ........................................................................... 14 2.3.2 Performance ....................................................................................................................................... 15 2.3.3 Job Satisfaction .................................................................................................................................. 15 2.4 Motivational Theories ........................................................................................................................... 16 2.4.1 Early Theories of Motivation: Herzberg and Maslow ....................................................................... 16 2.4.2 Frederick Herzberg’s Two-Factor Approach (1968) ......................................................................... 17 2.5 Equity Approach by Adams Agnaia (1989) .......................................................................................... 17 2.6 ERG Theory by Clayton Alderferin (1972) .......................................................................................... 18 University of Ghana http://ugspace.ug.edu.gh 2.6.3 Growth Needs: ................................................................................................................................... 19 2.7 Maslow’s Needs Hierarchy ................................................................................................................... 19 2.7.1 Physiological Needs ........................................................................................................................... 21 2.7.2 Safety Needs ...................................................................................................................................... 22 2.7.3 Social Needs (Belongingness Needs) ................................................................................................ 22 2.7.4 Esteem Needs ..................................................................................................................................... 22 2.7.5 Self-Actualization Needs ................................................................................................................... 23 2.8 Employees’ Perception of the Motivational Strategies ......................................................................... 23 2.9 Frederick Winslow Taylor Theory of Motivation (1856 – 1917) ......................................................... 24 2.9.1 Recognition and Rewards .................................................................................................................. 25 2.10 Motivation and organisational performance .................................................................................. ... 26 2.11 Motivation and organisational performance in Ghana ........................................................................ 28 2.12 Conceptual Framework………………………………………………………………………………………………………………….30 2.13 Chapter Summary ............................................................................................................................... 32 CHAPTER THREE: RESEARCH METHODOLOGY ........................................................................ 33 3.1 Introduction ........................................................................................................................................... 33 3.2 Research Design .................................................................................................................................... 33 3.3 Population and Sampling Design .......................................................................................................... 33 3.3.1 Population .......................................................................................................................................... 33 3.3.2 Sampling Design ................................................................................................................................ 34 3.3.2.1 Sampling Frame .............................................................................................................................. 34 3.3.2.2 Sampling Technique ....................................................................................................................... 34 3.3.2.3 Sampling Size ................................................................................................................................. 35 3.4 Data Collection Methods ...................................................................................................................... 35 3.5 Research Procedures ............................................................................................................................. 36 3.6 Data Analysis Methods ......................................................................................................................... 37 3.7 Profile of PassionAir Ghana………………………………………………………………………………………………………....….37 3.8 Chapter Summary ……………………………………………………………………………………………………………………....….38 CHAPTER FOUR: PRESENTATION OF DATA, ANALYSIS AND DISCUSSION OF FINDINGS..................................................................................................................................................39 4.1 Introduction............................................................................................................................................39 University of Ghana http://ugspace.ug.edu.gh 4.2 Quantitative Analysis.........................................................................................………......…..............39 4.3 Respondents' Profile...........................................................................................…………....................39 4.3.1 Gender of Respondents...................................................................................………......…..............39 4.3.2 Departments of Respondents.......………….......................................................................................40 4.3.3 Duration working at PassionAir.......…………..................................................................................40 4.4 Factors that influence Employees’ Performance.......…….……...........................................................41 4.4.1 Monetary Rewards.............………….................................................................................................41 4.4.2 Non-monetary Factors to Motivation.......…………...........................................................................42 4.4.3 Enabling Working Environment.......…………..................................................................................43 4.4.4 Training and Development.......…………...........................................................................................44 4.4.5 Job Design...........................................................................................................................................46 4.5 Qualitative Analysis.….……………………………………....………………………......…......…….47 4.5.1 Factors that motivate employees.…...............………………..........………………………......…….47 4.5.2 Determinants of employees' Performance...........………….….…..........…………………….......….48 4.5.3 Effects of motivation on employees' Performance.........……….……………………………….......49 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS...........................51 5.1 Introduction............................................................................................................................................51 5.2 Summary of findings..............................................................................................................................51 5.2.1 Background Information of Respondents...........................................................................................51 5.2.2 Factors that influence Employee Performance...................................................................................51 5.2.3 Preference for Monetary and Non-monetary Rewards.......................................................................53 5.3 Motivation factors affecting Employees’ Performance.........................................................................55 5.4 Determinants of Employee Performance...............................................................................................56 5.5 Effects of Motivation on the Employee Performance............................................................................56 5.6 Conclusion..............................................................................................................................................57 5.7 Recommendations - How should PassionAir Managers Motivate Employees......................................57 University of Ghana http://ugspace.ug.edu.gh 5.8 Area for further research.........................................................................................................................58 References..................................................................................................................................................59 APPENDICES.............................................................................................................................................71 University of Ghana http://ugspace.ug.edu.gh List of Tables Table 1.1 Population Distribution....................................................................................................9 Table 1.2 Sample Size Distribution................................................................................................11 Table 3.1 Population Distribution..................................................................................................34 Table 4.1 Gender Distribution........................................................................................................39 4.2 Department Distribution...........................................................................................................40 4.3 Length of Time Working at PassionAir (years) Distribution....................................................41 Table 4.4 Monetary Rewards to Motivation Distribution...............................................................42 Table 4.5 Non-monetary Rewards to Motivation Distribution.......................................................43 Table 4.6 Enabling Working Environment Distribution.................................................................44 Table 4.7 Relevant Training and Development Programs Distribution..........................................45 Table 4.8 Relevant Training and Development Programs to Motivation Distribution...................46 Table 4.9 Job Design to Motivation Distribution............................................................................46 University of Ghana http://ugspace.ug.edu.gh List of Figures Figure 2.1 Maslow Hierarchy of Needs..........................................................................................20 Figure 2.2 Conceptual framework explaining the relationship between motivation and performance...................................................................................................................................31 Figure 4.1 Determinants of Employees’ Performance....................................................................49 University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.1 Background of the Study All organisations want to be successful, even in current environment which is highly competitive. Therefore, companies irrespective of size and market, strive to motivate their best employees, acknowledging their important role and influence on organisational effectiveness (Dobre, 2013). In order to encourage performance, companies should create a strong and positive relationship with its employees and direct them towards task fulfillment (Albeiti, 2015). In order to achieve their goals and objectives, organisations develop strategies to compete in highly competitive markets and to increase their performance (Knapp & Mujtaba, 2010). Nevertheless, just a few organisations consider the human capital as being their main asset, capable of leading them to success or if not managed properly, to decline (Dobre, 2013). This implies that, if employees are not satisfied with their jobs and not motivated to fulfill their tasks and achieve their goals, the organisation cannot attain success. As stated, the performance of employees is a concern for any organisation because it determines whether the organisation meets its targets and goals. Various resources are necessary for an organisation to succeed and meet its targets, and this includes the human resource or employees (Shanks, 2012). However, skilled and talented employees may not achieve the desired results if they lack motivation and therefore, motivation is also considered an important value which is vital in the achievement of the organisation’s goals (Osei, 2011). Due to lack of motivation employees would not give their all to the organisation as they will distribute their time to other non-work-related activities such as long lunch hours, or surfing the internet for non-work-related purposes (Shanks, 2012). 1 University of Ghana http://ugspace.ug.edu.gh Although some of these activities may seem harmless, they may result in a loss of effectiveness and efficiency that may be required to meet targets and goals the organisation intends to achieve (Asim, 2013). The only way to get people to work hard is to motivate them. Today, people must understand why they are working hard. Every individual in an organisation is motivated by some different way (Dobre, 2013). The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that is easier said than done (Dinler, 2008). According to Shahzadi et al. (2014) motivation practice and theory are difficult subjects, touching on several disciplines. The authors state that, in spite of enormous research, basic as well as applied; the subject of motivation is not clearly understood and more often than not poorly practiced. Uzona (2013) states that, to understand motivation, one must understand human nature itself, and that is where the problem of motivation lies. He states that, human nature can be very simple, yet very complex too, and that an understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. Uzona (2013) states that it has therefore been taken upon by organisations to come up with ways of motivating employees if they are to get the best performance out of them and ultimately that of the organisation as a whole. According to Yang (2008), the motivational techniques implemented by organisations vary and can include team building, training, enhanced communication, targets, rewards and incentives, job enrichment, quality of working life programs, encouraging participation, checking system for equity, money, and recognizing individual differences. Dutta, et al (2015) consider motivation a powerful tool that reinforces behavior and triggers the tendency to continue. In other words, motivation is an internal drive to satisfy an unsatisfied need and to achieve a certain goal. It is also a procedure that begins through a physiological or 2 University of Ghana http://ugspace.ug.edu.gh psychological need that stimulates a performance set by an objective. Shanks (2012) defined motivation as the act of providing motive that causes someone to act, but notes that, only an individual person can decide if they are going to be motivated. According to Shanks (2012), motivation is an individual concept that can be described using three main pillars of motivation: arousal, referring to the drive or energy that ignites behaviour; direction, which has to do with the type of behaviour that is exerted and whether it is in line with demand or organisation goal; and persistence which deals with the lastingness of behaviour. Dobre (2013) notes that, as a result, different employees will be motivated by different things and it is therefore important for managers to understand what really motivates employees, and that cannot be achieved by simply asking them. Motivation can be intrinsic or extrinsic. Intrinsic motivation originates from within the individual and causes the individual to feel stimulated internally (Re’em, 2011). According to Burton (2012) intrinsic motivation is more about an individual’s self-satisfaction and the reward is normally within the action itself and does not need external factors to influence behavior. As a result, intrinsic motivation is the most important and pervasive motivation because it is through this kind of natural motivational tendency that humans develop cognitive, social, and physical abilities (Ryan & Deci, 2000). However, sometimes people act because external factors have influenced them or prompted them to act in a certain way, and this is referred to as extrinsic motivation (Ryan & Deci, 2000). As opposed to intrinsic motivation where the reward of the action is within the action itself, for extrinsic motivation the outcome or reward is separable from the activity itself (Re’em, 2011). At the workplace the extrinsic motivation would be to attain goals that are non-work related such as getting money to pay personal bills. Burton (2012) argued that extrinsic motivation can 3 University of Ghana http://ugspace.ug.edu.gh come from a fear of a consequence of the actions taken or not taken, such that if the manager tells the employee to do something, it will be done because of extrinsic motivation. Having looked at motivation, focus is now on employee performance and what it entails. In every organisation, there are many factors that come into play if the organisation is to meet its targets. However, employees are the most important resource to the organisation because they contribute to innovation, adjustment and other important values that would not be done by other resources such as machinery (Uzona, 2013). Employees mainly perform tasks like manufacturing, marketing, production, transportation, storage, distribution, purchasing promotion of business, finance and accounting, human resource, research and public relations (Dinler, 2008). Employees need to give their best in all these activities as the activities are inter-related and to achieve the organisation’s goals all have to be done properly (Yazıcı, 2008). Employee performance is considered as what an employee does and what he does not do. Employee performance involves quality and quantity of output, presence at work, accommodative and helpful nature and timeliness of output. According to the results of the study conducted by Yang (2008) on individual performance showed that performance of the individuals cannot be verified. Similarly, he asserts that organisations can use direct bonuses and rewards based on individual performance if employee performance is noticeable. Re’em (2011) investigated employee performance and revealed that acknowledgment and recognition and reward of performance of employees direct the discrimination between employee productivity. Morale and productivity of employees is highly influenced by the effectiveness of performance of an organisation and its reward management system (Yazıcı, 2008). To satisfy customers, firms pay much effort but do not pay attention to satisfying employees. But the fact is that customer would not be satisfied until and unless employees are satisfied. 4 University of Ghana http://ugspace.ug.edu.gh Because, if employees are satisfied, they will do more work therefore ultimately customers will be satisfied (Ahmad, Wasay & Malik, 2012). Employee performance is actually influenced by motivation because if employees are motivated then they will do work with more effort and by which performance will ultimately improve (Azar & Shafighi, 2013). PassionAir is a Ghanaian airline that started scheduled domestic operations in Ghana in August 2018. With a vision of creating an exceptional travelling experience, the airline seeks to provide the Ghanaian aviation market with timely, safe and secure schedules between Accra and the main cities. It is PassionAir's goal to be the airline of choice, providing competitive service within Ghana and the West African region as a whole. PassionAir provides scheduled domestic operations from its Accra hub to Kumasi, Takoradi and Tamale. The focus is to consolidate aviation traffic between the main cities and then stimulate traffic to the other domestic airports. The product lines provided includes the schedule and charter operations offering competitive rates utilizing our efficient Dash 8 Q400 fleet. Passengers can expect to experience excellent customer service that depicts the proverbial Ghanaian hospitality (https://flypassionair.com/company-information/). 1.2 Statement of the Problem Several studies have been carried out relating to employee motivation, but few have focused on its impact on employees’ performance, rather focusing on the motivational techniques (Dinler, 2008). A study by Uzona (2013) revealed that employees from different regions and cultures would not be motivated using the same motivational techniques meaning that different techniques may need to be applied for different regions and cultures. Asim (2013) found that training is an important motivational technique that leads to a positive impact on employee performance in the construction sector in Pakistan. However, the study only focused on training as a source of motivation leaving a gap to be filled by examining other motivational techniques. 5 University of Ghana http://ugspace.ug.edu.gh In Ghana, Gichunge & Musungu (2010) found that there is a direct relationship between motivation and employees’ productivity in the Ghanaian construction Industry. Njoroge (2011) also found a positive effect of motivational techniques such as good performance appraisals, training, and enhanced job security on the performance of employees in Ghanaian government ministries. Albeiti (2015) found that reward systems such as stock options, profit sharing, and pay were the most popular and had a positive effect on the performance of employees at Ghana Commercial Bank. The above studies were all carried out in Ghana, and all point towards a positive impact of motivation on the performance of employees, but none of the studies examines the aviation industry in Ghana, which will be examined in this study through the PassionAir Ghana. The above are empirical works carried out by different researchers (Uzona, 2013; Asim, 2013; Gichunge & Musungu, 2010; Njoroge, 2011; Albeiti, 2015) in the areas of employee motivation and performance. However, the question that has not been answered is, “what magnitude of performance variation can reward both extrinsic and intrinsic induce taking into consideration the argument and counter argument on the consequences of tying motivation to performance (Dinler, 2008). Therefore, the identified gap needs to be filled, and thus the need for this study to examine the impact of motivation and performance enhancement in the Ghanaian aviation sector considering monetary, non-monetary and staff training factors to motivation in enhancing performance. 1.3 Study Objectives The general objective of the study is to determine the factors that motivate the staff of PassionAir Ghana. To achieve this, the study specifically seeks to: i. To determine the extent to which monetary factors impact on the performance of employees at PassionAir. 6 University of Ghana http://ugspace.ug.edu.gh ii. To evaluate the extent at which job design impacts on the performance of staff at PassionAir Ghana. iii. To examine how staff training and development impacts on the performance of employees at PassionAir Ghana. 1.4 Research Questions The above specific objectives made it possible to address key research questions driving this study. These include the following: i. How do monetary factors impact the performance of employees at PassionAir Ghana? ii. How does job design impact the performance of staff at PassionAir Ghana? iii. How does staff training and development impact the performance of employees at PassionAir Ghana? 1.5 Significance of the Study Organisational Leaders The findings of this study would benefit managers especially in PassionAir Ghana as it would enable them understand their employees better and how or why they behave the way they do. It would also shed light to other organisational leaders on how to motivate their employees. The recommendations that have been offered in the study may guide the leaders and especially the human resource department on how to best motivate employees. Aviation industry The findings of this study would be beneficial to aviation industry as it would help them understand what happens at the workplace between employers and employees in terms of motivation and performance, and therefore enable them to restructure their objectives in line with employee motivation. 7 University of Ghana http://ugspace.ug.edu.gh Other Organisations The results of this study would be of benefit to other organisations. Since the mode of business operations differ from public and private institutions, the results of this study may enable policy makers of organisations to best understand their employees’ needs in terms of motivation. Researchers and Academicians The findings of this study would benefit researchers and academicians as it would contribute to the body of knowledge on motivation and management of human resource in aviation sector. The study has given suggestions on new areas for further research that would be explored. 1.6 Scope of the Study The study intended to determine the impact of motivation on employees’ performance. The study was conducted using a population of 209 employees of PassionAir Ghana. The respondents were from various departments which included: Finance, Human Resources, Administration, Programme Staff. 1.7 Research Methodology This chapter presents the research methodology to be used to conduct this study, and the chapter is organized as follows: research design, population and sampling techniques, data collection methods, research procedures, and data analysis methods. Research Design The study adopted a descriptive research design. According to Thornhill (2011) the key purpose of descriptive research is that it describes affairs as they exist and involves collection of data to test hypothesis regarding the current status of the study subject. The researcher deemed the descriptive research design as appropriate for the study because the study was 8 University of Ghana http://ugspace.ug.edu.gh concerned with finding answers to a key question of the motivational techniques implemented, the impact of these motivational techniques on the employees’ performance and the challenges faced in implementing them. Population and Sampling Design Population Babie & Halley (2010) define target population as the entire aggregation of respondents that meet the designated set of criteria within a study. According to Onwuegbuzie & Leech (2005) a population element is the study subject and may consist of a person, an organisation, customer database, or the amount of quantitative data on which the study measurement is being taken. The population of this study comprised of all the employees of PassionAir Ghana (209 in total), because they were the basis of the study and provided the relevant answers to the study questions. The study population comprised of all the staff members who came from various departments within the organisation. Table 1.1 Population Distribution Section Population distribution Flight Operations - (Pilots, Cabin Crew, 51 = (15, 21, 11, 4 respectively) Dispatchers, In-Flight Catering). Ground & Passenger Handling - (Check-in, 71 = (53, 8, 4, 10 respectively) Loaders, Security, Drivers). Commercial – (Customer Service, Ticketing 33 & Reservations, Sales). IT 08 Finance 06 Human Resource 26 Engineering 14 Total 209 Source: Survey Data (2019) 9 University of Ghana http://ugspace.ug.edu.gh Sampling Design Sampling Frame A sampling frame alludes to the arrangement of source materials from which the population is chosen (Turner, 2012), and that the reason for the frame is to give a way of picking the specific sample size from the target population that are to be interviewed in the study. The sampling frame for this study consisted of a list all employees that worked at PassionAir Ghana and it was obtained from the Human Resources department. Sampling Technique The study employed a census sampling technique. According to Lohr (2010) a census is an investigation of each unit, everybody or everything, in a population. It is known as a complete identification, which implies a complete count. The census technique was used in the study to select the respondents from the list of employees provided by the human resource department in order to capture the entire population. Sampling Size A sample is defined as a small proportion of an entire population; a selection from the population (Lohr, 2010). To ensure that this was achieved, the researcher focused on the target population only. Given that, the nature of the sampling technique selected for the study was a census, the sample size of the study was all the 209 employees that worked at the PassionAir Ghana. 10 University of Ghana http://ugspace.ug.edu.gh Table 1.2 Sample Size Distribution Section Population distribution Flight Operations - (Pilots, Cabin Crew, 51 = (15, 21, 11, 4 respectively) Dispatchers, In-Flight Catering). Ground & Passenger Handling - (Check-in, 71 = (53, 8, 4, 10 respectively) Loaders, Security, Drivers). Commercial – (Customer Service, Ticketing & 33 Reservations, Sales). IT 08 Finance 06 Human Resource 26 Engineering 14 Total 209 Source: Survey Data (2019) Data Collection Methods The questionnaires were issued to the respondents through informal self-introduction. Each entity within the questionnaire was developed to tackle a specific research question to fit best in the research problem. Structured questionnaires were more convenient since employees were busy people and it was expected that they would have less time to take part in oral interviews. Research Procedures A carefully fit organized questionnaire was created by the researcher, particularly for this study. The data collection method used was a structured questionnaire and more specifically, a self- administered structured questionnaire. The information collection instrument (organized questionnaire) was pilot tried with 10 respondents representing the different functions or divisions in PassionAir Ghana. The pilot test was not carried out on staff from the Support Centre since the study employed a census sampling design. 11 University of Ghana http://ugspace.ug.edu.gh Data Analysis Methods Descriptive analysis was used to determine the proportions and frequency of the variables. Inferences about the population from the sample were drawn and Statistical Package for Social Scientists (SPSS v14) was used to facilitate the data analysis. The results were presented in the form of tables and figures. 1.8 Limitations of the Study The researcher foresaw the non-availability of time by bank staff to provide needed or vital information in much detail. Interview with managers of the various branches of the bank is foreseen to be aborted because their workload would not enable them to give the researcher their full attention. Also, fear by the bank staff to probably divulge strategic information to competitors is another limitation. To be able to avoid these occurrences, the researcher will ensure that, employees are issued with the questionnaires and interviews when they are free. 1.9 Organisation of the Study This work is organized into five chapters. Chapter One deals with the introduction. This takes a look at the background to the study, statement of the problem, purpose of the study, research questions, significance of the study, brief methodology, scope of the study, and limitations of the study as well as the organization of the study. Chapter Two deals with reviewing existing literature that primarily deals with discussions and review of literature related to the concepts of the research. The third chapter describes the methodology adopted for the study. This includes the research design, area of study, population, sample and sampling techniques, research instrument, administration of the questionnaire, and data analysis procedure. Chapter Four comprises compilation, analysis and discussion of data collected from the fieldwork. Chapter Five also looks at the summary of the findings, conclusions and recommendations. 12 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO LITERATURE REVIEW 2.1 Introduction This chapter presents a review of significant theoretical and empirical literature in relation to the research questions being analyzed. The purpose of this study is to determine the impact of motivation on employees’ performance using the case study of PassionAir Ghana. This section elaborates on the impact of motivational goal-setting on performance of employees, effect of financial incentives on employees’ performance and finally, the impact of recognition and reward programs on performance. 2.2. Theoretical Review 2.2.1 The Concept of Motivation The word motivation is derived from the Latin word “movere”, which means to “transfer” or “push”. Robbins and Coulter (2014) describe motivation as a process by which a person’s efforts are energized, directed and sustained toward attaining a goal. Sansone and Harackiewicz (2000) define motivation as an internal mechanism that guides behavior. This can be referred to the catalyzer for individual employees to enhance their working performance to achieve organisational performance (Sekhar et al., 2013). Debrah and Ofori (2015) reveal that, the goal of motivation among organisations in Ghana is to enable employees to improve productivity, increase efficiency and improve overall organisational performance. It is important for organisations to find the factors that motivate employees to perform to their maximum ability. Employees are assumed to value intrinsic and extrinsic rewards. Both forms of rewards contribute significantly to the levels of employees’ motivation to work (Herzberg et al., 1959; Afshan et al, 2015). Different theories of motivation (e.g. content theories and process theories) describe why and how human behavior is activated and directed (Seiler et al., 2012). These motivation theories have been discussed extensively in prior literature (Latham and Ernst, 13 University of Ghana http://ugspace.ug.edu.gh 2006; Sekhar et al., 2013). Organisations utilize various motivation and reward system to motivate employees. 2.2.2 Types of Motivation According to Crabbe (2013), researchers identified two sources of motivation; these are internal and external sources which have also been labeled as the intrinsic and extrinsic motivation. Intrinsic motivation: This arises between the relationship between the worker and the task and is usually self-applied. Feelings of accomplishment, achievement challenge and competence derived from performing one’s work are examples of intrinsic motivation. 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, favored company policies and various forms of supervision are examples of extrinsic motivation. 2.3.1 Effect of Motivation on Organisational Performance Motivation is central to any discussion of work behavior because it is believed that it has a direct link to good work performance; it is assumed that the motivated worker is the productive worker (Riggio, 2014). Barry et al (2015) were of the view that, most employees are not motivated by the same rewards, and for that reason, sales managers must work towards tailoring the motivational environment to the individual, within the boundaries and policies of the company. Motivation and learning theories suggest that pay should be based on performance (Georges and Jones, 2013). However, having highly motivated workers does not automatically lead to high levels of productivity- the work dynamic is more complex than that (Riggio, 2014). Therefore, a manager must approach a productivity problem very carefully- a detailed assessment of all other variables that can affect productivity must first be undertaken 14 University of Ghana http://ugspace.ug.edu.gh (Aguinis, 2012). The adoption of a performance management system can be seen as an attempt to integrate HRM processes with strategy (Cole and Kelly, 2011). Appraisals are used to ensure an individual’s performance is contributing to business goals and managers are encouraged to combine the perspectives of several models to create a complete motivational environment for their employees (Newstrom 2011; Riggio, 2014). 2.3.2 Performance Cole and Kelly (2011) describe performance as a continuous process for improving the performance of individuals by aligning actual performance with that desired (and with the strategic goals of the organisation) through a variety of means such as standard-setting, appraisal and evaluation both informally, day-to-day, and formally/systematically through appraisal interviews and goal-setting. Job performance is defined as the value of the set of employees’ behaviors that contribute, either positively or negatively to organisational goal accomplishment while task performance are employees’ behaviors that are directly involved in the transformation of organisational resources into the goods or services that the organisation produces or renders (Colquitt, Lepine and Wesson, 2014). 2.3.3 Job Satisfaction Job satisfaction is how fulfilled a person is from the job that they perform. It is linked with performance, motivation, absenteeism, mental/physical health and general life satisfaction of a particular employee (Saleem, 2011). Several Job Satisfaction studies have found that Job Satisfaction has a strong impact on Job performance, nonappearance, turnover, and psychological disorders (Storey, 2013). A number of research findings as cited by (Ismail, Guatleng, Chhekiong, & Ibrahim, 2009) have suggested a positive relationship between motivation and job satisfaction to the extent that Kreitner and Kinicki (2001), suggest that managers can potentially enhance employee motivation through employee job satisfaction. 15 University of Ghana http://ugspace.ug.edu.gh Jepsen (2003) posits that almost every worker tries to find satisfaction in his work, especially if the job matches his occupational choices, he will nearly attain job satisfaction. 2.4 Motivational Theories 2.4.1 Early Theories of Motivation: Herzberg (1959) and Maslow (1954) Fredrick Herzberg developed a theory of motivation that highlighted the role of job satisfaction in determining employee motivation (Riggio, 2014). He proposed that the determinants of job satisfaction were different from those of job dissatisfaction. The factors giving rise to satisfaction were called motivators (e.g. recognition, responsibility and achievement), while those giving rise to dissatisfaction were called hygiene factors (e.g. salary, company policy and working conditions) (Cole and Kelly, 2011). Motivators are things that lead employees to be satisfied and motivated by their jobs and have to do with job content, they are inherent in the work itself: Their presence result in job satisfaction and motivation, but their absence result only in neutrality (Levy, 2013). Motivators include intrinsic factors such as possibility for promotion, demanding work, recognition, achievement and responsibility (Stanley, 2012). Motivator factors function only to increase job satisfaction (Hansen, Smith and Hansen, 2012). Herzberg’s motivation theory emphasizes that only motivation factors have the probability of raising job satisfaction, in comparison to motivation factors, hygiene factors can only be used to preclude dissatisfaction and can therefore not be used as incentives to create satisfaction (Steers and Porter, 2011). An employee may therefore be very satisfied with his/her overall working conditions, but not especially motivated to work and perform to his/her full potential (Storey, 2013). 16 University of Ghana http://ugspace.ug.edu.gh 2.4.2 Frederick Herzberg’s Two-Factor Approach (1968) Herzberg (1968) proposed this theory. It is also known as motivator-hygiene thesis; an alternative to Taylorism which showed concerns for the quality of working life of people in organisations. This theory implies that there are two different sets of factors, hygiene and motivators or satisfiers, which affect individual motivation and job satisfaction. Herzberg discovered that there were certain factors associated with job satisfaction (motivation factors) which are those factors that are related to the content of one’s job and are necessary to maintain a reasonable level of motivation among employees, such as the nature of the work itself, the possibility for growth, responsibility, advancement, recognition and status. A completely different set of factors are associated with dissatisfaction which are referred to as hygiene or maintenance factors. For instance, inadequate monthly salary to employees could cause dissatisfaction at work when hygiene factors are absent, for example, when good relations with supervisors and peers, good pay and working conditions, job security and among others are absent (Herzberg et al., 1959). However, a high salary would not necessarily cause job satisfaction. Herzberg’s work challenged the central thesis of Taylorism that job satisfaction was one-dimensional, ranging along a continuum from satisfaction to dissatisfaction. Instead, Herzberg found motivation to be two-dimensional. 2.5 Equity Approach by Adams Agnaia (1989) Adams (1989) formulated the equity approach as an appropriate way to effective supervision. The equity approach is another important means of ensuring motivation of workers. Workers tend to believe in it if the organisational reward system is fair. This theory assumes that people want to be treated fairly and they tend to compare contributions and rewards to those received by others. The equity theory states that people need to perceive equal outcomes for perceived equal circumstances (Ott, 1989). The principles for this theory are that if workers discover that 17 University of Ghana http://ugspace.ug.edu.gh the company does not properly reward them, they will feel dissatisfied and their morale will be lower. The outcome is that they will not work hard anymore or they may choose to depart from the current company. If the workers believe that they are adequately rewarded for what they do, they will maintain the same level of output and performance. On the other hand, if workers perceive the rewards as more than they consider fair, then they will most likely work even harder in the organisation. The core of equity theory says that individuals judge the fairness of their treatment based on how others like them are treated. Employees make social comparisons with others who are similarly situated in the organisation. Equity theory says that employees view a situation as equitable when employees who give similar inputs receive similar outcomes. When the rewards differ for the same degree of effort, employees view the situation as inequitable. Equity theory shows that inequities (perceived or real) harm employee motivation. Employees who feel that they are receiving inequitable treatment will be emotionally motivated to gain equity. The strengths of the equity theory in relation to leadership styles in organisation is that, workers want to be treated equally and fairly by leaders. Workers are motivated when they discover that they are treated fairly in compensation, in promotion and there is transparency in their evaluations. 2.6 ERG Theory by Clayton Alderferin (1972) The ERG theory 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. Many attempts have been made to classify needs because of the long-standing debate as to how many categories of needs exist. Some claim there are only two needs while others say there are seven. ERG is a well-known 18 University of Ghana http://ugspace.ug.edu.gh simplification. Clayton Alderfer reorganizes Maslow’s hierarchy of needs into three levels: existence (Physiological and safety), Relatedness (social) and Growth (esteem and self- actualization). Alderfer maintains the higher and the lower order needs who agrees with Maslow that unsatisfied needs motivate individuals. The ERG he defined as; Existence, Relatedness and Growth. 2.6.1 Existence Needs: Maslow defined as including all basic material existence requirements (Maslow’s physiological and safety needs). 2.6.2 Relatedness Needs: Maslow 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). 2.6.3 Growth Needs: Maslow 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 needs 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- actualization). 2.7 Maslow’s Needs Hierarchy Maslow (1954) published his ‘hierarchy of motives’ theory that introduced the notion of individual choice and preference within Murray’s essentially deterministic framework. Murray had identified twenty distinctive needs that he thought compelled people to act so as to reduce the tension caused by the unsatisfied need. Murray also distinguished between physiological needs (which he called viscerogenic needs) and affective or cognitive needs (which he called psychogenic needs). 19 University of Ghana http://ugspace.ug.edu.gh Figure 2.1 Maslow Hierarchy of Needs Maslow (1954) Currently, there seems to be some reconciliation that the critical thread that differentiates employees motivated behaviors from other behavior is that it is goal-directed behavior (Basset- Jones and Lloyd, 2005). Bandura (2003) argues that the core benefit of motivating individuals lies in the goal directed aspect of behavior. Jones (2012) suggested “motivation is concerned with how behavior gets started, is energized, is sustained, is directed, is stopped and what kind of subjective re-action is present in the organisation while this is going on. At the bottom of Maslow’s pyramid are needs essential to survival, such as the needs for food, water, and sleep. The need for safety follows these physiological needs. According to Maslow, higher-level needs become important to us only after our more basic needs are satisfied. Hierarchy of need identifies five levels of human needs: physiological, safety, social, ego and self-actualizing. These higher needs include the need for love and belongingness, the need for esteem, and the need for self-actualization (in Maslow’s theory, a state in which people realize their greatest potential). Lower level needs must be satisfied first before the next higher-level need since this will motivate employees. 20 University of Ghana http://ugspace.ug.edu.gh The organisation can satisfy its employees’ various needs. In the long run, physiological needs may be satisfied by the person’s pay, but it is important to remember that pay may satisfy other needs such as safety and esteem as well. Providing generous benefits that include health insurance and company-sponsored retirement plans, as well as offering a measure of job security, will help satisfy safety needs. Social needs may be satisfied by having a friendly environment and providing a workplace conducive for collaboration and communication with others. Providing promotion opportunities at work, recognizing a person’s accomplishment verbally or through more formal reward systems and job titles are ways of satisfying esteem needs. Finally, self-actualization need may be satisfied by the provision of development and growth opportunities on or off the job, as well as by work that is interesting and challenging. By making the effort to satisfy the different needs of each employee, organisations may ensure a highly motivated workforce. 2.7.1 Physiological Needs Physiological needs according to Maslow are the basic needs for survival and deemed it to be the lowest-level needs. These needs included needs such as food, water and shelter. These are the basic necessities a human being needs to survive and as a matter of fact cannot do without it. He was of the strong opinion that even if all the other needs are unsatisfied then physiological needs will dominate. So long as physiological needs are unsatisfied, they exist as a driving or motivating force in a person’s life. According to Anyim (2012) physiological or basic needs are the basic need of a person. It serves as driving force. This is also called felt need. This need causes physiological tension which is shown by anybody’s behavior. This can be reduced by eating something. Chintalloo and Mahadeo (2013) also explain physiological needs. According to them physiological needs basically are satisfied basic needs of human. Physiological needs or basic needs are also called 21 University of Ghana http://ugspace.ug.edu.gh biological needs. Maslow said when a person fulfills the basic, physiological or biological needs, for example, food, shelter, clothes, sleeping and breathing etc. he moves up to the next level. These are the basic needs of an individual which includes food, clothing, shelter, air, water, etc. These needs relate to the survival and maintenance of human life. 2.7.2 Safety Needs The next level in the hierarchy is what he termed as safety needs - the search for shelter, security, stability, dependency, protection, freedom from (anxiety, fear and chaos), and a need for structure, order and law. In the work settings, this needs 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. 2.7.3 Social Needs (Belongingness Needs) According to Hayes (2009), if a person has the first two levels of needs well gratified, the emergence of social needs (sense of belongingness and love) becomes the next objective. At this stage, a person desires for the affection of others and would want to be placed in a group or family. Relating this to the work place, as outgoing creatures, humans have a need of belongingness and this can only be satisfied by the interaction with one’s colleagues and be able to collaborate effectively to achieve organisational goals. These needs emerge from society. Man is a social animal and therefore these needs become important. For example-love, affection, belongingness, friendship, conversation, etc. 2.7.4 Esteem Needs After the first three needs have been satisfied, esteem needs become increasingly important. Esteem needs are also known as egoistic needs. In this need, a man needs self-respect and the esteem of other. Examples of such needs are reputation, prestige, status, fame, glory, 22 University of Ghana http://ugspace.ug.edu.gh dominance and recognition, etc. Esteem needs are difficult to satisfy in some industries. In an organisation a manager should respectively treat their employees. And the workers should also respect the policies or the law of the organisation. Workers also should respect each other. Example of these needs include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment. These needs relate to desire for self-respect, recognition and respect from others (Aacha, 2015). 2.7.5 Self-Actualization Needs These are the needs of the highest order and these needs are found in those people whose previous four needs are satisfied. These will include need for social service. Self-actualization people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested in fulfilling their potential. A man wants self-realization and self- development and desires to be able to do something (Across, 2015). 2.8 Employees’ Perception of the Motivational Strategies Motivation within an organisation remains high if an employee perceives that there are opportunities for personal development or professional advancement, if an employee feels capable of completing tasks correctly and is involved with various organisational decision- making and goal-setting processes. Motivation can be reduced if the worker perceives a lack of opportunity for growth, a lack of involvement or a lack of opportunities to demonstrate any creativity. Motivating employees to complete their work correctly and on time is one of the major tasks of management (Afful-Broni, 2015). Changing an employee’s perception of his place within a company is sometimes an effective way of improving organisational behavior constructively. Employees who perceive that they have a greater control over their work lives will likely be more motivated to excel within the organisational structure (Afful-Broni, 2012). 23 University of Ghana http://ugspace.ug.edu.gh A worker’s social perception of others within the organisation can affect his motivation to complete work effectively to a large degree. Motivation within an organisation remains high if a worker perceives that there are opportunities for personal development or professional advancement, if he feels capable of completing tasks correctly and is involved with various organisational decision-making and goal setting processes. Motivation can be reduced if the worker perceives a lack of opportunity for growth, a lack of involvement or a lack of opportunities to demonstrate any creativity. Once they perceive that work they perform not only meets your needs but theirs as well, you have the three elements in place that lead to business prosperity: perception, motivation and action. Bassett-Jones and Lloyd (2005) stipulate that the “content theory” led by Herzberg, assumed a more complex interaction between both internal and external factors, and explored the circumstances in which individuals respond to different internal and external stimuli. Bandura (2000) affirms that the function of employee motivation begins because of tension within demands of an employee and thereafter, there is a pursuit within the company or within employee to fulfill his/her desires. When the employee is satisfied with his financial motivation, he/she redefines his/her desires and needs and the process is started again (Basset- Jones and Lloyd, 2005). 2.9 Frederick Winslow Taylor Theory of Motivation (1856 – 1917) Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so need close supervision and control. Therefore, managers should break down production into a series of small tasks. Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task. Workers are then paid according to the number of items they produce in a period of time - piece-rate pay. As a 24 University of Ghana http://ugspace.ug.edu.gh result, workers are encouraged to work hard and maximize their productivity. Taylor’s (1916) methods were widely adopted as businesses saw the benefits of increased productivity levels and lower unit costs. The most notable 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 (1916) approach has close links with the concept of an autocratic management style (managers take all the 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 (1916) 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. 2.9.1 Recognition and Rewards The type of reward practices used by an organisation plays an important role in motivating employees to perform (Beer and Walton, 2014). This ultimately affects the performance of the organisation (Hansen, Smith and Hansen, 2012). Based on decades of research on operant conditioning and behavior modification, it is commonly believed that if rewards are used effectively, they can motivate individuals to perform at higher levels, and the use of proper rewards culminates in firm performance at the organisational level (Giancola, 2011). Many organisations have formal recognition and reward programs and these recognition programs usually include rewards because good performers are recognized with rewards (Deci, 2013). Among the rewards given are plaques, gift cards, jewelry and on the spot cast awards (Allen and Helms, 2011). More sophisticated recognition programs recognize behavior that supports organisational values, so the awards are a reminder of what is important to the company (Aguinis, 2012). Teams, as well as individuals should receive recognition to enhance 25 University of Ghana http://ugspace.ug.edu.gh motivation (Riggio, 2014). As with most motivation and retention programs, recognition and rewards must be carefully planned, otherwise they may backfire and lose money for the company (Kinicki and Kreitner, 2016). Increasingly, it has become clear that the battle for talent involves much more than highly effective, strategically designed compensation and benefit programs. While these programs remain critical, the most successful companies have realized that they must make a much broader look at the factors involved in attraction, retention, and motivation (Giancola, 2011), and they must deploy all of the factors—including compensation and benefits—to their strategic advantage (Hansen, Smith and Hansen, 2012). 2.10 Motivation and Organisational Performance The motivation theorists such as Maslow (1946), Herzberg (1968), Alderfer (2014) and McClelland (2013) have suggested specific things that managers can do to help their subordinates become self-actualized, because such employees are likely to work at their maximum creative potential when their needs are met. They agree that by promoting a healthy workforce, providing financial security, providing opportunities to socialize and recognizing employees’ accomplishments help to satisfy the employees’ physiological needs which in turn also increase their performance. These authors (Koch, 1990; Stuart, 1992) all stated that recognition of a job well done or full appreciation for work done is often among the top motivators of employee performance and involves feedback. Positive feedback follows the principles advocated in Reinforcement Theory, which states that behaviour is contingent on reinforcement. Agarwal (2015) gave some examples of positive reinforcement in this context which include workplace visits by top executives to high-performance employees, personal handwritten notes of thanks accompanying paychecks, and telephone calls by top executives to employees at home. 26 University of Ghana http://ugspace.ug.edu.gh Theories such as Equity has some important implications for ways of motivating people by not underpay, overpay and presenting information about outcomes in a thorough and socially sensitive manner. It states that, companies that attempt to save money by reducing employees’ salaries may find that employees respond in many different ways to even the score; those that overpay some employees as a useful motivational technique to increase performance may later realize that when you overpay one employee, you are underpaying all the others. When the majority of the employees feel underpaid, they will lower their performance, resulting in a net decrease in productivity and widespread dissatisfaction. Hence, the conclusion is that managers should strive to treat all employees equitably; and this suggestion follows from research showing that people’s assessments of fairness on the job go beyond merely what their outcomes and inputs are to their knowledge of how these were determined, that is, to their sense of procedural justice (perceptions of the fairness of the procedures used to determine outcomes). Osei (2011), also agrees with the equity theory that, one of the fundamental issues that is sensitive and critical which can make or unmake any organisation is wage or salary determination. Justice, fairness and equity in salary determination, to a large extent, put to rest all the traumas any individual or any organisation may experience, and that is highly motivational enough to assess the optimal usage of time and energy. Also, theories such as Expectancy theory have several important implications for ways of motivating employees by clarify people’s expectancies that their effort will lead to performance, that is by training employees to do their jobs more efficiently and so achieve higher levels of performance from their efforts and linking valued rewards and performance by specifying exactly what job behaviours will lead to what rewards. It is possible for employees 27 University of Ghana http://ugspace.ug.edu.gh to be paid in ways directly linked to their performance such as through piece-rate incentive systems, sales commission plans or bonuses. 2.11 Motivation and Organisational Performance in Ghana All organisations, regardless of size, market, and technology, want to be successful and maintain a constant progress even in a highly competitive business environment. In order to achieve goals and objectives, strategies must be developed and well-implemented with the effective utilization of all capable resources. A few companies in Ghana believe that their employees are an important asset that can lead them to overcome difficulties, exceed their limits and reach prosperity. In contrast, companies like Ghana Manganese Company put their personnel in the centre of the business, maintaining a positive and strong relationship with its employees, persuading them towards task fulfillment are proved to result in higher effectively and productivity (Adi, 2015, Anka, 2015, Rothberg 2015). However, today, companies are also facing challenges in employee retention. Acknowledging the important role of employees and the huge influence they bring towards organisational effectiveness, companies are trying to retain employees by creating motivation and a healthier workplace. This is very important because if the personnel are not focused well, it associates with a decline in business productivity and effectiveness. Unless and until the employees are motivated and satisfied, an organisation cannot foster to success (Manzoor 2012). Many researches have shown that motivated employees in any sector work better than demotivated ones. These motivated employees are more innovative as they are always looking for better ways to complete a task. They can produce high-quality work with more or maximized efficiency and productivity (Boundless 2017) which also leads to maximization of profits (Matthew, Grawhich & Barber 2009). 28 University of Ghana http://ugspace.ug.edu.gh Employee motivation has a strong influence on the effectiveness of an organisation (Paul 2017). Organisational effectiveness is a broad term but this study follows the concept as “locating targets and attaining them proficiently in spirited and energetic surroundings” (Constant 2001). “An effective organisation will make sure that there is a spirit of cooperation and sense of commitment and satisfaction within the sphere of its influence” (Abbah 2014). There are no fixed parameters to compute the effectiveness of an organisation since it varies from company to company and from case to case. However, it can be used to measure anything within an organisation, from leadership, communication, accountability, metric, human performance, to the delivery systems (Anderson & Adams 2015). Locke’s (1968), Goal Setting Theory states that you can achieve effective performance goals by assigning specific goals; difficult but acceptable performance goals; and providing feedback concerning goal attainment. He further indicated that giving praises, Management by Objectives (MBO), and job-design increases employees’ performance. Praise is a motivator (not hygiene) because it meets employees’ needs for esteem, self-actualization, growth and achievement. It is most powerful, less expensive, and simplest, yet the most underused motivational technique. To motivate people to high-levels of performance, objectives should be difficult but achievable, observable and measurable, specific, with a target date, participatively set when possible and accepted by employees. Employee who meet their objectives should be rewarded through recognition, praise, pay raises, promotions etc. Many organisations now link pay to meeting goals (Lussier, 2005) and the way the first step in organisation design is job design - the process by which managers decide how to divide tasks into specific jobs, for example, McDonaldisation (Jones et al, 2000). In summary, motivation is important to both an individual and the organisation. For an individual, motivation is an essential factor that encourages a person to achieve his/her personal 29 University of Ghana http://ugspace.ug.edu.gh goals. Within an organisation, motivation is said to be a factor that leads to employee satisfaction. Also, motivation inspires a person to widen his/her knowledge, to explore and unleash his/her full capabilities and potential. Correspondingly, from the organisational perspective, motivation leads to a positive attitude in the workplace, easy adaptation to changes and more creativity. The more motivated the employees are, the more contribution they bring, thus the more profitable and successful is the business (MSG Experts 2017). 2.12 Conceptual Framework Employee Motivation is the independent variable and will be examined through two of its factors, recognition and empowerment. The dependent variable is organisational effectiveness. From the above discussion, motivation the drive behind effort to satisfy needs can come from within or from external force (intrinsic and extrinsic) respectively. The need theorists’ focus on the question of what arouses, sustains and regulates goal directed behaviour that is what particular things motivate people and the process theorists’ also emphasize on the process of motivation and importance of rewards. Employees want to earn reasonable salary/payment and employees desire their employers to feel that is what they are getting. Money is the fundamental inducement, no other incentive or motivational technique comes even close to it with respect to its influential value (Muogbo, 2013). It has the tendency to attract, retain and motivate individuals towards higher performance. Frederick Taylor and his scientific management associate described money as the most fundamental factor in motivating the industrial workers to attain greater productivity (Abadi, et al., 2011). Research has suggested that reward causes motivation of the employee which directly influences performance of the employee (Kalimullah, et al., 2010). 30 University of Ghana http://ugspace.ug.edu.gh Figure 2.2 Conceptual framework explaining the relationship between motivation and performance Source: Researcher’s construct (2019) Employee level of motivation is also influenced by the quality of the working environment both its physical attributes and the degree to which it provides meaningful work. While a comfortable physical environment is correlated with employee motivation, the relationship is not merely as strong as the relationship between motivation and managerial behavior (Manzoor, 2012). A good managerial relation is an important factor in fostering employee motivation (Wright, et al 2012). Employees want to have input into decisions that affect them, to feel important and appreciated. They want to be informed and involved at work place. When a job brings recognition and respect, employees are motivated with it. This is an easy condition to create with feedback (Tella, 2007). As illustrated in the conceptual framework in Figure 2.2 above, factors such as salaries, fringe benefits, responsibility, promotion in the organisation nature of work, recognition of work done; opportunity for advancement, working conditions, and 31 University of Ghana http://ugspace.ug.edu.gh relationships with superior and peers motivates employees, and concluded with a conceptual framework of the study. 2.13 Chapter Summary This chapter has presented a preview of pertinent literature on employee motivation and performance in organisations and various research theories have been presented. The section has highlighted the impact of goal setting on employee performance. The section also discusses the impact of monetary incentives on performance. It also highlights the impact of rewards and recognition on employee performance. The next chapter presents the research methodology that will be used to carry out this research. 32 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction This chapter presents the research methodology that is used to conduct this study, and the chapter is organized as follows: research design, population and sampling techniques, data collection methods, research procedures, and data analysis methods. 3.2 Research Design Saunders et al. (2003) describe research design as a procedure that provides answers to issues such as techniques to use to gather data, the kind of sampling strategies and tools to be used and how time and cost constrain will be dealt with. The study adopted a descriptive research design. According to Thornhill (2011) the key purpose of descriptive research is that it describes affairs as they exist and involves collection of data to test hypothesis regarding the current status of the study subject. The researcher deemed the descriptive research design as appropriate for the study because the study was concerned with finding answers to a key question of the motivational techniques implemented, the impact of these motivational techniques on employees’ performance and the challenges faced in implementing them. 3.3 Population and Sampling Design 3.3.1 Population Babie & Halley (2010) define target population as the entire aggregation of respondents that meet the designated set of criteria within a study. According to Onwuegbuzie & Leech (2005) a population element is the study subject and may consist of a person, an organisation, customer database, or the amount of quantitative data on which the study measurement is being taken. The population of the research is the entire group of people that the researcher wished to investigate (Sekaran 2003). It comprised a cross section of the staff of PassionAir Ghana with 33 University of Ghana http://ugspace.ug.edu.gh a working force of 209. These employees were the basis of the study and provided the relevant answers to the study questions. The study population comprised of all the staff members who came from various departments within PassionAir Ghana. Table 3.1 Population Distribution Section Population Distribution Flight Operations - (Pilots, Cabin Crew, 51 = (15, 21, 11, 4 respectively) Dispatchers, In-Flight Catering). Ground & Passenger Handling - (Check-in, 71 = (53, 8, 4, 10 respectively) Loaders, Security, Drivers). Commercial – (Customer Service, Ticketing 33 & Reservations, Sales). IT 08 Finance 06 Human Resource 26 Engineering 14 Total 209 Source: Researcher’s Survey Data (2019) 3.3.2 Sampling Design 3.3.2.1 Sampling Frame A sampling frame alludes to the arrangement of source materials from which the population is chosen (Turner, 2012), and that the reason for the frame is to give a way of picking the specific sample size from the target population that are to be interviewed in the study. Sampling frame can therefore be defined as the actual set of units from which a sample has been drawn (Verschuren, 2009). The sampling frame for this study consisted of a list of all employees that work at PassionAir Ghana and it was obtained from the Human Resources department. 3.3.2.2 Sampling Technique Statistical sampling techniques are the strategies applied by researchers during the statistical sampling process (Noy, 2008). The study employed a census sampling technique. According to Lohr (2010) a census is an investigation of each unit, everybody or everything, in a 34 University of Ghana http://ugspace.ug.edu.gh population. It is known as a complete identification, which implies a complete count. The census technique was used in the study to select the respondents from the list of employees provided by the human resource department in order to capture the entire population. This procedure was chosen by the researcher since it gave a genuine measure of the population with no sampling error, it also sets benchmark information that can be used for future studies, and it offers a point by point data about the little sub-bunches inside the population. 3.3.2.3 Sampling Size A sample is defined as a small proportion of an entire population; a selection from the population (Lohr, 2010). Sample size determination is the act of choosing the number of observations to include in a statistical sample (Singh, 2008). The sample size is an important feature of any empirical study in which the goal is to make inferences about a population using a sample (Noy, 2008). Singh (2008) states that a sample is a subset of a population, but that subset is only useful if it accurately represents the larger population. To ensure that this was achieved, the researcher focused on the target population only. Given that, the nature of the sampling technique selected for the study was a census, the sample size of the study was all the 209 employees that worked at the PassionAir Ghana. 3.4 Data Collection Methods Data collection methods refer to the process of collecting data after the researcher has identified the types of information needed which is based on the research questions which guide the study (Fielding, 2010). The researcher used primary data for the study and a structured questionnaire was the tool that was used to collect primary data. Singh (2008) notes that structured questionnaires are easier to administer, analyze and economical in terms of time and money. The questionnaires were self-administered to the respondents. Each question within the questionnaire was developed to tackle a specific research question to fit best in the research 35 University of Ghana http://ugspace.ug.edu.gh problem. Structured questionnaires were more convenient since employees were busy and it was expected that they would have less time to take part in oral interviews. The questionnaire had four sections: The first part analyzed demographic data, which focused on obtaining information on personality characteristics that influenced employee motivation and how it impacted on the employee performance. The second part looked at the employee techniques implemented at PassionAir Ghana. This section consisted of questions based on the identified motivational techniques studied in the literature review with an aim of determining if they applied to PassionAir Ghana. The third part of the questionnaire looked at how the motivational techniques impacted on the employees’ performance at PassionAir Ghana. The fourth part of the questionnaire looked at the challenges that were faced in implementing the motivational techniques. 3.5 Research Procedures A carefully organized questionnaire was created by the researcher particularly for this research. The data collection method used was a structured questionnaire and more specifically, a self- administered structured questionnaire. The information collection instrument (organized questionnaire) was preliminarily tried with 10 respondents representing the different departments in PassionAir Ghana. The pilot test was not carried out on staff from the Support Centre since the study employed a census sampling design. The issues experienced amid the pilot testing of the information collection instrument were addressed by making important conformity to the questionnaire before managing it all in all study test. After update of the information gathering instrument and refinement, the entire study test was subjected to the information collection instrument. Various strategies were utilized to enhance the response rate, for example, follow up updates through phone and email. 36 University of Ghana http://ugspace.ug.edu.gh 3.6 Data Analysis Methods Data analysis is the systematic organisation and synthesis of the research data and the testing of research hypotheses, using data (Creswell & Plano, 2010). Data analysis also entails categorizing, ordering, manipulating and summarizing the data and describing them in meaningful terms (Pearson, 2010). As per Cooper and Schindler (2011), the reason for information analysis is to lessen aggregated information to a sensible size, creating synopses, searching for examples, and applying statistical techniques. Descriptive analysis was used to determine the proportions and frequency of the variables. Correlation tests were used to draw inferences about the population from the sample and Statistical Package for Social Scientists (SPSS) was used to facilitate the data analysis. The results were presented in the form of tables and figures. 3.7 Profile of PassionAir Ghana PassionAir is a Ghanaian airline company that started scheduled domestic operations in Ghana in August 2018. With a vision of creating an exceptional travelling experience, the airline seeks to provide the Ghanaian aviation market with timely, safe and secure schedules between Accra and the main cities. It is PassionAir's goal to be the airline of choice, providing competitive service within Ghana and the West African region as a whole. PassionAir provides scheduled domestic flight operations from Accra to Kumasi, Takoradi and Tamale. The product lines of the company include the ‘schedule’ and ‘charter’ operations offering competitive rates. Plans to provide regional flights within the West African sub-region form the major goal for the medium term. The company seeks to provide efficient linkages with the West African cities and developing Accra as a major hub for the region. PassionAir Ghana also provides seamless 37 University of Ghana http://ugspace.ug.edu.gh connectivity for passengers with the carriers flying to the popular European, American, Middle East and African destinations through our partnerships and interline initiatives. The mission of the company is to provide the best quality service to bring a memorable in-air and on-ground experience, through leadership, excellence and accountability. The objectives of PassionAir Ghana are to; • Create a network that provides feeder traffic to existing and future intercontinental operators to Accra. • Implement an operational quality control system to ensure safe and reliable flight operations. • Implement a sound marketing strategy to maximize revenues while controlling costs; • Achieve long-term positive net profits to enable PassionAir to consider operating to regional destinations. • Use advanced electronic and information technology to reduce operational cost and enhance customer convenience and satisfaction. (https://flypassionair.com/company- information/). 3.8 Chapter Summary This chapter presented the methodology and method used in this study including information gathering, data collection and data analysis. Data collection included a discussion of population, sampling design and size, the survey procedure among others. 38 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR PRESENTATION OF DATA, ANALYSIS AND DISCUSSION OF FINDINGS 4.1 Introduction This chapter presents data collected from the respondents (employees) on motivation and employees’ performance at PassionAir Ghana. The chapter is in two sections: quantitative analysis and qualitative analysis. The chapter begins with the quantitative data analysis and findings. The second section also seeks to qualitatively establish the factors that motivate employees at PassionAir Ghana. This is followed by an examination of the effects of motivation on employees’ performance. The chapter ends with a discussion on the conclusions drawn from both the quantitative and qualitative analysis. 4.2 Quantitative analysis The quantitative analysis involves the use of a variety of statistical procedures including basic descriptive statistics (e.g. tables and percentages). The survey was conducted on a total of Two hundred and Nine (209) employees of PassionAir Ghana. 4.3 Respondents’ Profile This section shows the gender of the respondents, department or section respondents work, and the number of years respondents have worked at PassionAir Ghana. 4.3.1 Gender of Respondents Respondents were asked to indicate their gender and the following data was obtained. Table 4.1 Gender Distribution Frequency Percent Valid Percent Cumulative Percent Male 88 42.1 42.1 42.1 Valid Female 121 57.9 57.9 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 39 University of Ghana http://ugspace.ug.edu.gh From Table 4.1 above, it can be noted that females form the majority (121) of employees constituting 57.9% while the males represent 42.1%. 4.3.2 Department or Section of Respondents Respondents were asked to indicate the department or section of PassionAir Ghana they work, and the following data was obtained. Table 4.2 Department Distribution Frequency Percent Valid Percent Cumulative Percent Flight Operations 51 24.4 24.4 24.4 Ground and Passenger 71 34.0 34.0 58.4 Handling Commercial 33 15.8 15.8 74.2 Valid IT 8 3.8 3.8 78.0 Finance 6 2.9 2.9 80.9 HR 26 12.4 12.4 93.3 Engineering 14 6.7 6.7 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) Table 4.2 above indicates that greater percentage of employees at PassionAir Ghana constituting 34.0% work with Ground and Passenger Handling Department. Flight Operations and Commercial departments follow in terms of the number of employees with 24.4% and 15.8% respectively. IT and Finance departments have the lowest number of employees according to the table above constituting 3.8% and 2.9% respectively. 4.3.3 Duration working at PassionAir Ghana From Table 4.3 below, 96.7% of the respondents (employees of PassionAir Ghana) indicated 0-2 years working at PassionAir. The rest of the employees who constitute 3.3% of the respondents also indicated 3-5 years working at PassionAir Ghana. 40 University of Ghana http://ugspace.ug.edu.gh Table 4.3 Length of Time Working at PassionAir (years) Distribution Frequency Percent Valid Percent Cumulative Percent 0-2 years 202 96.7 96.7 96.7 Valid 3-5 years 7 3.3 3.3 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 4.4 Factors that influence Employees’ Performance Many factors like capital, human resource and environmental factors influence performance of Organisations (Collins et al, 2003). Among these factors, human resource is seen as having the most influence on the performance of organisation (Boxall et al, 2011). It is logical therefore to argue that an organisation needs to motivate its employees in order to achieve its stated goals and objectives. An understanding of the factors that motivate employees and their appropriate application would have significant effect on the organisation’s performance. The respondents were asked to indicate their level of agreement or disagreement to the motivational factors and indicate how each factor motivates employees. 4.4.1 Monetary Rewards According to McCoy et al (2008) the money that employees receive is actually a package made up of salary, and other fringe benefits such as transport, housing, and medical allowance. Others include meal subsidy and utility on effort and persistence. The money that employees receive is actually a package of salary and benefits. Most employees consider monetary gains and rewards the best form of extrinsic motivation (Makuma, 2015). Furthermore, responses from respondents confirm those of a previous study by Lopes (2011) that, financial incentive is a good extrinsic motivating factor in determining work performance. Staff at PassionAir Ghana are convinced that such financial rewards are the best form of extrinsic factors since 41 University of Ghana http://ugspace.ug.edu.gh such rewards enable them to sort out some miscellaneous expenditures, like transportation and feeding, which affect work performance. From Table 4.4 below, 121 employees constituting 57.9% of respondents indicated that they strongly agree financial or monetary rewards motivate them to perform well. The number of respondents who agree that monetary rewards drive motivation constituted 31.6% of all the respondents. Nineteen (19) employees constituting 9.1% were neutral whereas Three (3) respondents (1.4%) disagreed that monetary rewards drive motivation. Table 4.4 Monetary Rewards to Motivation Distribution Frequency Percent Valid Percent Cumulative Percent Disagree 3 1.4 1.4 1.4 Neutral 19 9.1 9.1 10.5 Valid Agree 66 31.6 31.6 42.1 Strongly Agree 121 57.9 57.9 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 4.4.2 Non-monetary factors to Motivation Non-monetary factors to motivation such as interesting work, recognition or appreciation for work done, flexible working hours, cohesive work teams, challenging jobs, job roles and title, opportunity for growth, etc. contribute to quality work life (Anyim et al, 2012). The idea of quality work life has received attention for several decades (Dannefer, 2003). Employees become increasingly dissatisfied and frustrated by routine tasks. According to Hayes et al (2012), this may result in lower output, poor attitude, lower quality, absenteeism, high turnover, and pressure for better conditions and greater participation in decision-making. According to Maeran et al (2013), job enrichment provides employees with an opportunity to grow psychologically and mature in a job. Job enrichment attempts to make the job itself motivational. Maeran et al (2013) indicate that jobs higher in enrichment factors result in higher 42 University of Ghana http://ugspace.ug.edu.gh satisfaction. Job enrichment increases a job's range and depth, which refers to the number of activities and the autonomy, responsibility, discretion, and control. Organisations are faced with an increasingly diverse workforce that includes nursing mothers, single parents with young children, employees with very different responsibilities, and those taking classes or pursuing degrees to improve skills and abilities or for self-improvement. The concept of flexible working hours has motivational appeal to many organisations’ staff (Ramlall, 2004). Table 4.5 Non-monetary Rewards to Motivation Distribution Frequency Percent Valid Percent Cumulative Percent Disagree 1 .5 .5 .5 Neutral 7 3.3 3.3 3.8 Valid Agree 55 26.3 26.3 30.1 Strongly Agree 146 69.9 69.9 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) Respondents were asked whether non-monetary rewards motivate them. From Table 4.5 above, 146 employees constituting 69.9% of respondents indicated that they strongly agree non- monetary rewards motivate them to perform well. The number of respondents who agree that non-monetary rewards drive motivation constituted 26.3% of all the respondents. Seven (7) employees constituting 3.3% were neutral whereas One (1) respondent (0.5%) disagreed that non-monetary rewards drive motivation. 4.4.3 Enabling Working Environment According to Giorgi (2012), employees are effective at work in an enabling environment. Creating an enabling work environment is a form of intrinsic motivation that affects employees’ work performance (Locke and Latham, 2002). Studies have confirmed that 43 University of Ghana http://ugspace.ug.edu.gh motivation factors are innate and natural; however, they differ based on the profession and the work environment of employees (Ryan et al., 2000). Respondents were asked whether working conditions such as temperature of offices, health and safety, on-job training, well-lit environment, good chairs and tables, security of office premises among others motivate them. From Table 4.6 below, as much as 56.5% of the respondents were strongly in agreement that enabling working environment motivates them. The number of respondents who agreed that enabling working environment drives motivation constituted 35.9% of all the respondents whilst 7.7% were uncertain. Table 4.6 Enabling Working Environment Distribution Frequency Percent Valid Percent Cumulative Percent Neutral 16 7.7 7.7 7.7 Agree 75 35.9 35.9 43.5 Valid Strongly Agree 118 56.5 56.5 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 4.4.4 Training and Development According to Puhakainen and Siponen (2010), training and development is a process that attempts to provide employees with information, skills and understanding of the organisation and its goals, and how to achieve these goals. Human resources are a crucial and expensive resource and therefore in order to sustain economic and effective performance of this resource, it is important to optimize their contribution to the achievement of the aims and objectives of the organisation through training and development (Harry, 2007). Training is therefore necessary to ensure an adequate supply of employees that are technically and socially competent for both departmental and management positions. (Ndulue, 2012). According to Sageer et al., (2012), the right employee training, and development programs at the right time, provides big payoffs for the organisation in increasing productivity, knowledge, loyalty and 44 University of Ghana http://ugspace.ug.edu.gh commitment. Respondents were asked whether they required training and development programs in order to carry out their duties. Table 4.7 Relevant Training and Development Programs Distribution Frequency Percent Valid Percent Cumulative Percent Strongly Disagree 3 1.4 1.4 1.4 Disagree 3 1.4 1.4 2.9 Neutral 15 7.2 7.2 10.0 Valid Agree 83 39.7 39.7 49.8 Strongly Agree 105 50.2 50.2 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) From Table 4.7 above, as much as 50.2% of the respondents strongly agreed that they required relevant training from time to time in order to carry out their duties. The number of respondents who agreed to the fact that relevant training was required constituted 39.7% of all the respondents whilst 7.2% were uncertain or neutral. Respondents were also asked to indicate if such training opportunities motivated them. From Table 4.8 below, 47.8% of the respondents were strongly in agreement that relevant training and development programs occasionally offered to employees motivated participants. The number of respondents who agreed to the fact that relevant training motivated them constituted 45.9% of all the respondents whereas 5.7% were uncertain or neutral. Only One (1) respondent held a contrary opinion and disagreed to the fact that, relevant training gave any form of motivation. 45 University of Ghana http://ugspace.ug.edu.gh Table 4.8 Relevant Training and Development Programs to Motivation Distribution Frequency Percent Valid Percent Cumulative Percent Disagree 1 .5 .5 .5 Neutral 12 5.7 5.7 6.2 Valid Agree 96 45.9 45.9 52.2 Strongly Agree 100 47.8 47.8 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 4.4.5 Job Design The respondents were asked to indicate how happy or motivated they are with job design in terms the tasks, freedom, autonomy and opportunity to decide what and how to perform job. Table 4.9 below, 46.9% of the respondents were strongly in agreement that job design in terms the tasks, freedom, autonomy and opportunity to decide how to perform job motivated participants. The number of respondents who agreed to the fact that job design motivated them constituted 33.5% of all the respondents whereas 17.7% were uncertain or neutral. Two (2) respondents constituting 1.0% of all respondents held a contrary opinion and disagreed to the fact that, job design gave any form of motivation. The remaining 1.0% of the respondents also strongly disagreed job design gave any form of motivation. Table 4.9 Job Design to Motivation Distribution Frequency Percent Valid Percent Cumulative Percent Strongly Disagree 2 1.0 1.0 1.0 Disagree 2 1.0 1.0 1.9 Neutral 37 17.7 17.7 19.6 Valid Agree 70 33.5 33.5 53.1 Strongly Agree 98 46.9 46.9 100.0 Total 209 100.0 100.0 Source: Survey Data (2019) 46 University of Ghana http://ugspace.ug.edu.gh 4.5 Qualitative Analysis The qualitative analysis involves the use of non-numerical data or explanation of text data to interpret and analyze peoples' experiences and actions; data display and drawing and verifying conclusions. The interview was conducted on Two (2) key management staff of PassionAir Ghana. 4.5.1 Factors that Motivate Employees The interviewees were asked to mention some of the factors that motivate them as employees of PassionAir Ghana. The following were the responses given as factors that motivate them: According to respondent one (R1): “Better wages and salaries, fringe benefits, bonus, retirement benefits, responsibility, promotion, recognition, job-satisfaction, achievement, team work, respect, nature of work, opportunity for advancement, job security, good working conditions, management style, cordial relationships with superior and peers, and good working environment”. As indicated by respondent one (R1) when asked to indicate which of the motivational factors amongst the ones mentioned above motivates greatly, the respondent rated salary as the highest motivator, followed by fringe benefits, opportunity for advancement, promotions, good working conditions, and cordial relationships with peers, and Good working environment. Mehran et al., (2011) present an argument that monetary incentives may be used to circumvent problems in the workplace. For example, incentives to boost sales can be used to compensate for poor management. 47 University of Ghana http://ugspace.ug.edu.gh When asked why our part of the world we consider monetary incentive as the highest motivational factor but that is not the best motivator in line with Herzberg (1968) doctrine, this is what one key management staff had to say: “The cost of living in the country has risen due to high inflation rates, arbitrary increases in utility tariffs and everything, without better salary it would be difficult for an employee to survive throughout the month”. 4.5.2 Determinants of Employee Performance The interviews sought to find out from the interviewees the factors that serve as determinants of employee performance among employees at PassionAir Ghana. Two management staff (interviewees) who were interviewed were asked to mention some of the factors in their opinion help them to perform their work better. They gave several of them which are presented below: Qualification, quality and style of supervision, working environment, compensation package, tools and equipment, support from other colleagues, production materials, health condition of employees, job security, and retirement and other benefits, age, loyalty or commitment etc. As per the assertion of Aguinis (2007), individual differences on performance are a function of three main determinants: declarative knowledge, procedural knowledge, and motivation. Declarative Knowledge, also referred to as conceptual, propositional or descriptive knowledge, describes things, events, or processes, their attributes, and their relation to each other. Procedural knowledge, also known as imperative knowledge, is the knowledge exercised in the performance of some task. The third predictor of performance is motivation, the driving force behind every human activity. All three determinants of performance must be present for performance to reach high levels. If any of the determinants has a value of zero (0), then performance also has a value of Zero (0). Thus, Performance = Declarative Knowledge* Procedural Knowledge*Motivation. 48 University of Ghana http://ugspace.ug.edu.gh Determinants of performance can be illustrated in pictorial form as shown in Figure 4.1 below. Figure 4.1 Determinants of Employees’ Performance Source: Researcher’s construct (2019) 4.5.3 Effects of Motivation on Employees’ Performance Motivation is central to any discussion of work behavior because it is believed that it has a direct link to good work performance; it is assumed that the motivated worker is the productive worker (Riggio, 2014). Barry et al (2015) were of the view that, most employees are not motivated by the same rewards, and for that reason, sales managers must work towards tailoring the motivational environment to the individual, within the boundaries and policies of the company. The interviewees were asked whether motivation has effects on performance among employees of PassionAir Ghana. There was consensus agreement between the respondents that good motivation packages have high effects on their performance which also agrees with Maslow 49 University of Ghana http://ugspace.ug.edu.gh (1946) that by promoting a healthy workforce, providing financial security, providing opportunities to socialize and recognizing employees’ accomplishments help to satisfy the employees’ physiological needs which in turn also increase their performance. Employees are social being with needs and they will always want to satisfy these needs, and only motivation will push them to achieve that aim in the face of obstacles. This reaffirms the definition of motivation by SHRM (2010), “the psychological forces that determine the direction of a person’s level of effort, as well as a person’s persistence in the face of obstacles”. This implies that for PassionAir Ghana to get the best out from its employees, motivation packages should be reviewed to enhance employees ‘performance. 50 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction This chapter presents the summary of the findings of the study, draws conclusions from the study and also makes recommendations for the study, and areas of further research suggested. 5.2 Summary of findings The summary of findings is organized around the questionnaire which was based on the research objectives of the study. 5.2.1 Background Information of Respondents From the study, it can be noted that females form the majority (121) of employees constituting 57.9% while the males represent 42.1%. The study also reveals that a greater percentage of employees at PassionAir Ghana constituting 34.0% work with Ground and Passenger Handling Department. Flight Operations and Commercial departments follow in terms of the number of employees with 24.4% and 15.8% respectively. IT and Finance departments have the lowest number of employees according to the study constituting 3.8% and 2.9% respectively. Majority of the employees constituting 96.7% have worked between 0-2 years at PassionAir. The rest of the employees who constitute 3.3% have worked between 3-5 years at PassionAir Ghana. 5.2.2 Factors that influence Employee Performance The effective performance of an employee is very critical for any organisation, because for any organisation to survive depends on competitive environment to survive and its workers 51 University of Ghana http://ugspace.ug.edu.gh (Drucker, 2018). The factors that influence or motivate the staff of PassionAir Ghana to perform better were taken into consideration; monetary and non-monetary factors, provision of enabling working conditions, training and job design were indicated to be very influential. From the analysis, a total of 89.5% (Strongly agree 57.9% + Agree 31.6%) of the workers were of the view that, when incentives, commission, bonus and healthy allowances are put in place for a job well done, they will be able to perform their duties well. However, a total of 96.2 % (Strongly agree 69.9% + Agree 26.3%) of the workers were also of the view that motivational issues in the form of non-monetary rewards like recognition, decision making roles, promotion, staff bus, flexible working hours and company uniforms, interesting work, flexible working hours, cohesive work teams, challenging jobs, job roles and title, opportunity for growth, etc. influence or greatly motivate them to perform better at work. This therefore means that, if workers are given more monetary rewards without maintaining a good non-monetary rewards, it will not yield high performance at work. All employees desire to work in a safe and protected atmosphere (Freeman and Rogers, 2006). Enabling working conditions such as temperature of offices, ventilation, health and safety, well-lit environment, good chairs and tables, security of office premises among others were viewed to be the facilitators of enhanced work performance at PassionAir Ghana, and this constituted a total response of 92.4 % (Strongly agree 56.5% + Agree 35.9%) from the workers at PassionAir Ghana as far as performance is concerned. According to Fuller et al. (2005) employees have some weaknesses in their workplace skills. Training presents a prime opportunity to expand the knowledge base of all employees, but many employers find training and development opportunities expensive (Smith, 2001). It must 52 University of Ghana http://ugspace.ug.edu.gh be noted that employees attending training sessions also miss out on work time which may delay the completion of projects. However, despite these potential drawbacks, training and development provides both the individual and organisations as a whole with benefits that make the cost and time a worthwhile investment (Bowen, 2018). Results show that the provision of relevant training largely influenced employees’ performance at PassionAir as indicated by a total of 89.9% (Strongly agree 50.2% + Agree 39.7%) of respondents, as employees were also of the view that training opportunities that PassionAir provided showed employees that they are valued. The training creates a supportive workplace. Employees may gain access to training they wouldn’t have otherwise known about or sought out themselves. Employees who feel appreciated and challenged through training opportunities may feel more satisfied toward their jobs (Ashkanasy et al., 2002). 5.2.3 Preference for Monetary and Non-monetary Rewards According to Gelfand et al. (2007), preferences for rewards vary among individual or organisation. The primary focus according to Morrison et al. (2000), agree in their analysis with other views regarding motivation on how and why certain behavior starts, develop and are sustained over time. In line with that analysis, Nisbet et al. (2009) are of the opinion that, human behaviour in general is dynamic and could affect the individual’s personal attitude as well as factors surrounding that individual. These exogenous factors emanate from the environment in which the individual operates and generate stimuli to employees. Employees are individuals that come from different backgrounds; they have different education with different experiences, different family orientations, etc. within which their needs can be located (Goffman, 2017). 53 University of Ghana http://ugspace.ug.edu.gh According to Danish et al. (2010), the reason employers motivate employees is purposely for survival. Despite this fact, workers are always agitating for compensation for work done to keep them alive (Acker, 2006). This seems to be problematic because, when workers are satisfied with their survival needs, they tend to fight for recognition and other needs. Although most employees consider monetary gains and rewards the best form of extrinsic motivation (Makuma, 2015), there are non-monetary rewards that play a central role on employees’ motivation and their performance at PassionAir Ghana. Out of the 209 respondents that were interviewed, 96.2 % (‘Strongly agree’ 69.9% + ‘Agree’ 26.3%) of the employees considered non-monetary rewards like recognition, decision making roles, promotion, staff bus, flexible working hours and company uniforms, interesting work, flexible working hours, cohesive work teams, challenging jobs, job roles and title, opportunity for growth, etc. as factors that motivated them. The implication for such statistics for managers and management of PassionAir Ghana who want to motivate their employees should include non-monetary factors but should be evenly or fairly distributed and that staff view such non-monetary rewards equally. In addition, management should recognize good work from staff to motivate them give their best. PassionAir Ghana can simply provide the enabling environment for motivation to be enhanced and improved as supported by Aktar et al. (2012) in their assessment of the impact of rewards on employee performance in commercial banks of Bangladesh. If the right working environment is provided, staff will be motivated. This confirms Lawler’s (2003) argument that different theories questioning why people prefer certain careers, why they seek particular rewards and why they feel satisfied or dissatisfied with their work and rewards are inextricably linked. 54 University of Ghana http://ugspace.ug.edu.gh 5.3 Motivation factors affecting Employees’ Performance On the factors that motivate employees, majority of the respondents agree that monetary rewards like pay, commission and bonuses motivate them, and at the same time non-monetary rewards like recognition, decision making roles, promotion, staff bus, flexible working hours etc. are major source of motivation. Another finding is that, greater majority of respondents (92.4 %) were in favour of the fact that, enabling working conditions such as temperature of offices, health and safety, well-lit environment, good chairs and tables, etc. at the workplace motivate them. Also, most of the respondents were in agreement that job design in terms of the tasks, freedom, autonomy and opportunity to decide what and how to perform job motivate them. Employees become satisfied when they are recognized at workplace and when they are given authority to make necessary decisions in order to complete assigned tasks. Tabel 5.1 below summarizes the various statements and their respective responses as indicated by employees of PassionAir Ghana. Table 5.1 List of Statement and Corresponding Responses Statement Response in % SA A N D SD 1 Our company uses monetary rewards like base pay, merit pay, 57.9 31.6 9.1 1.4 - incentives, commission, bonus and healthy allowances to motivate us. 2 Our company uses non-monetary rewards like recognition, 69.9 26.3 3.3 0.5 - decision making roles, promotion, staff bus, flexible working hours and company uniforms, interesting work, flexible working hours, cohesive work teams, challenging jobs, job roles and title, opportunity for growth, etc. to motivate us. 3 Provision of enabling working conditions such as temperature 56.5 35.9 7.7 - - of offices, health and safety, well-lit environment, good chairs and tables, security of office premises among others motivate us. 4 As an employee I am I am given the relevant training to acquire 50.2 39.7 7.2 1.4 1.4 and improve my knowledge, skills and attitudes towards my work. 5 As an employee I am happy or motivated with job design in 46.9 33.5 17.7 1.0 1.0 terms the tasks, freedom, autonomy and opportunity to decide what and how to perform my job. Source: Survey Data (2019) 55 University of Ghana http://ugspace.ug.edu.gh 5.4 Determinants of Employee Performance The act of inducing employees with distinctive needs and personalities to pursue personal and organisational objectives encourages them to perform better (Mekonnen, 2016). Ability is an explanation of an individual’s knowhow, qualifications, and experience which are a necessary condition for determining individual performance (Hailesilasie, 2009). The most important variables which explain employee performance and which effectively influence such performance at PassionAir Ghana as revealed by the study are in terms of ratings; qualification, quality and style of supervision, working environment, compensation package, tools and equipment, support from other colleagues, production materials, health condition of employees, job security, and retirement and other benefits, age, loyalty or commitment etc., are some of the determinants of employee performance. Also, respondent rated salary as the highest motivator, followed by fringe benefits, opportunity for advancement, promotions, good working conditions, and cordial relationships with peers, and good working environment as revealed through the interview session. 5.5 Effects of Motivation on Employee Performance Employee motivation has a strong influence on the effectiveness of an organisation (Chiaburu et al., 2005). According to Shalley et al. (2004), employees are likely to work at their maximum creative potential when their needs are met. By promoting a healthy workforce, providing financial security, providing opportunities to socialize and recognizing employees’ accomplishments help to satisfy the employees’ physiological needs which in turn also increase their performance. Many studies have shown that motivated employees in any sector work better than demotivated ones. These motivated employees are more innovative as they are always looking for better ways to complete a task. They can produce high-quality work with more or maximized efficiency and productivity which also leads to maximization of profits 56 University of Ghana http://ugspace.ug.edu.gh (Matthew, Grawhich & Barber, 2009). In summary, motivation is important to both an individual and the organisation. For an individual, motivation is an essential factor that encourages a person to achieve his/her personal goals (Bartol & Srivastava, 2002). Within an organisation, motivation is said to be a factor that leads to employee satisfaction (Ramlall, 2004). 5.6 Conclusion It does not take only the monetary factors to motivate employees (Vroom, 1964), neither does it take the non-monetary factors to remove dissatisfaction (Lindner, 1998). To motivate and satisfy employees, managers need to effectively blend the factors well to suit the special needs of their employees. At PassionAir Ghana, it would be more prudent for managers to strike a balance between the monetary factors and non-monetary factors with more emphasis on the non-monetary factors since it appears to motivate employees at PassionAir Ghana better. 5.7 Recommendations - How should PassionAir Managers Motivate Employees? Based on the above analysis, the managers at PassionAir Ghana should do more to make the work environment more challenging and interesting. It is an acknowledged fact that, a bored employee is not motivated or productive (Dartey-Baah and Amoako, 2011). Jobs should continuously be designed in a way that will constantly challenge employees to be innovative and doing away with repetitions and monotony in their work or duties. Managers in collaboration with human resource department at PassionAir Ghana should incorporate job rotation and responsibilities so that new challenges are presented to employees on a regular basis. Management of PassionAir Ghana should adopt policies that practice performance related pay approach in giving financial rewards to its employees. Tying performance and salary increases 57 University of Ghana http://ugspace.ug.edu.gh to work outputs may be one of the ways to encouraging commitment and advancing organisations aspirations. When employees are given specific tasks to accomplish and they are assessed based on the result of their work, it encourages employees to extend themselves for the good of the company knowing that they will be rewarded adequately. Furthermore, employees are not only motivated by the monetary rewards but also by non- monetary factors like recognition that they get from their managers. The results show that, this has been the practice of management and should be a culture. Additionally, by ensuring fairness in pay structures, promotions and work allocations and eschewing favoritism and nepotism by managers, would be essential to addressing employee motivation issues at PassionAir Ghana. Employee’s participation in the decision-making process will make them more courageous and enthusiastic towards working in the company. 5.8 Area for further research This researcher could not research satisfactorily on all areas of this topic and therefore future guidelines for this study must also be noted. The study must be replicated in different contexts of industry sector so that its wide generalization could be possible by; • Focusing on collecting data evenly from different managerial level i.e. top, middle and low level of management so that a true picture may be depicted what motivates employees at different managerial levels. 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The study will focus on PassionAir Ghana. The following questionnaire has been developed to help the researcher gather information necessary to answer the research questions of the study. Kindly fill it appropriately. SECTION A: Demographics 1. Please indicate your gender Male [ ] Female [ ] 2. Please indicate the department that you work in Flight Operations [ ] Ground & Passenger Handling [ ] Commercial [ ] IT [ ] Finance [ ] Human Resource [ ] Engineering [ ] 3. How long have you held that position? 1-5 years [ ] 6-10 years [ ] 11-15 years [ ] 16-20 years [ ] 4. How long have you been working with PassionAir Ghana? 0-2 years [ ] 3-5 years [ ] 6-10 years [ ] SECTION B: Impact of Monetary Factors on Employee Performance 5. Using the following key (1=‘strongly disagree’, 2=‘disagree’, 3=‘neutral’, 4=‘agree’, 5=‘strongly agree’), how would you agree with the following statements in relation to monetary factors on employee performance? Monetary Factors Factors that Motivate Employees 1 2 3 4 5 Our company uses monetary rewards like base pay, merit pay, incentives, commission, bonus and healthy allowances to motivate us. Our company uses non-monetary rewards like recognition, decision making roles, promotion, staff bus, flexible working hours and company uniforms to motivate us. Performance based promotion policy leads to improvement in employees’ performance. 71 University of Ghana http://ugspace.ug.edu.gh Provision of medical assistance scheme increases employees’ performance. The provision and access to company’s loan increases employees’ performance. Performance based salary increase leads to improvement in employees’ performance My salary and other hygienic factors have led to a dis- satisfaction of my employment. Our organisation has observed a long-term enhancement on the quality of work as a result of the reward system in place. I find challenging jobs, feedback, cohesive work teams and other non-monetary factors more motivating than monetary factors. Bonus based on achievement of targets leads to improvement in employees’ performance. As an employee, I find small raises being dysfunctional in terms of motivation because I become irritated with the little appreciation of my hard work. I believe the provision of training opportunities at the workplace increases employees’ performance. Provision of life insurance policy for employees increases their performance. SECTION C: Impact of Job Design on Employee Performance 6. Using the following key (1=‘strongly disagree’, 2=‘disagree’, 3=‘neutral’, 4=‘agree’, 5=‘strongly agree’), how would you agree with the following statements in relation to job design and employee performance? Job Design Factors that Motivate Employees 1 2 3 4 5 As an employee, I am not happy with my job design in terms the tasks that I perform. Our organisation involves us in the job design, thus motivating us to perform better. Our company employs job rotation to help us earn new skills and job independence. Job rotation has been used in our organisation to increase individual knowledge and experience as well as decrease employee burnout and exhaustion. The type of chairs and tables used affect employees’ performance. The lightning system in our offices affects employees’ performance. Job rotation is also used in our organisation to increase our motivation and enthusiasm. Job rotation in our organisation has improved management and supervision in the organisation. The temperature of offices affects employees’ performance 72 University of Ghana http://ugspace.ug.edu.gh The physical security of offices affects employees’ performance Our management increases our responsibilities with the aim of building our sense of self-management and self-sufficiency I find my job satisfying due to the increased level of responsibility and the sense of freedom, autonomy and opportunity to decide what and how I perform my job. SECTION D: Impact of Staff Training and Development on Employee Performance 7. Using the following key (1=‘strongly disagree’, 2=‘disagree’, 3=‘neutral’, 4=‘agree’, 5=‘strongly agree’), how would you agree with the following statements in relation to staff training and development and employee performance? Training and Development Factors that Motivate Employees 1 2 3 4 5 As an employee I am trained to acquire and improve my knowledge, skills and attitudes towards my work. Training gives me high morale since I become more confident and feel motivated. Since I am trained, I have built a sense of security at my workplace. My training has helped me manage changes that have occurred by increasing my understanding and involvement and also adjust to new situations. As an employee, I undertake courses and programs when I am off work to increase my skill level. As an employee, I have developed my skills within organisation through internal transfers. While I was a new recruit in the organisation, I was given a mentor to guide and train me. My orientation in the organisation helped me to familiarize myself as well as get training while on the job. My training has placed my organisations in the better position to face competition and stay at the top. Training in our organisation has facilitated the bridging of the performance gap by implementing a relevant training intervention that enhances employee performance. 73