EMPLOYEES’ MOTIVATION AND WORKERS PRODUCTIVITY IN NIGERIAN MANUFACTURING INDUSTRY

CHAPTER ONE

INTRODUCTION

• Background of the Study

Employee motivation is a major factor in the success or failure for any organization without a motivated work force, productivity, morale, profit, product, and service delivery suffer. The best way to ensure employee commitment and loyalty is to empower, motivate, and involve them in decision making of the day-to-day functioning of the organization. Effective motivation can be instrumental in increasing productivity.

According to Farhad et al (2011), motivation is a procedure that initiate through a physiological or psychological want that stimulates, a performance that is intended at an objectives. It is the concluding product of interface among behaviourand organizational distinctiveness. It symbolizes those psychological producers that foundations the stimulation route, and determination of deliberate actions that are target oriented.

Kalimullah et al (2010) noted that motivation formulate an organization more successful because provoked employees are constantly looking for improved practices to do a work, so it  is essential for organization to persuade motivation of their employees to boost performance toward accomplishing some definite targets.

Employees are the backbone of any organization, they are the most valuable asset of the organization and motivating them is very important for maintaining strong bond between the employers and employees. A manager cannot do the job without knowing what motivate people; the building of motivating factors into roles in the organization, the staffing of these roles, and the entire process of leading people must be built on knowledge of motivation. Koontz et al (2006).

Motivation is the catalyst that spurs employee’s eagerness to work without pressure. It is a psychological process that makes people move willingly towards a goal. To motivate is to provide employees with a motive to do some task. It is to cause or provoke somebody to act either positively or negatively.  It has been used by effective managers to prompt ordinary people to achieve uncommon result in all field of endeavourNwachukwu (2009).

According to Shadare et al (2009) employee motivation is one of the policies of managers to increase effectual job management amongst employees in organization. Chowdhury (2007) described motivation as an internal strength that drives individuals to pull off personal and organizational goals.

Motivation is therefore very important to increase higher performance and productivity. Performance is the extent that organizational goals have been achieved. For the organization to achieve this, it has to take stock from time to time to determine the exposure and experience level of staff in order to determine their potentials. To understand motivation, understanding human nature is very important.

• Statement of Research Problem

Employee motivation and productivity has been focus of intensive research effort in recent times. How well an organization motivates its workers in order to achieve their mission and vision is of paramount concern. Employee in both public and private sector organization are becoming increasingly away that motivation increase productivity. Kalbuurgi et al (2010).

Most organization have to struggle with the problem of low performance and productivity, as a result of stagnation at work place, uncondusive working environment, lack of professional training, rigid schedule, unpunctual and frequent absenteeism, and poor attitude to work, such laziness, rudeness, personal problems, pay decreases and lack of motivation among workers. This situation has been perceived in the product of the working environment, both in the public and private sector. It is believed that people are frustrated because there are no incentives and promotions by those at the top management. It has also led to antagonism between management of organization and their union in the private sector, which has led to dispute and strike as the case may be. Even with the wage review, fringe benefits, and incentives such as; housing, car loan and other allowances, workers are still dissatisfied.

It is very important that steps are taken to find out what people need, what inspired them and what motivates them to higher performance and productivity Nwachukwu (2009).

• Research Questions

This research attempts to answer the following questions:

1. What is the impact of monetary incentives on employees’ motivation?
2. What is the pattern of responses of employees to the motivational techniques employed

by organizations?

• How does job security help to motivate employees in improving their level of

productivity?

1. Does employees’ welfare have any impact on motivation and productivity?

• Objective of the study

The broad objective of this study is to find out the factors that motivate employees in Nigeria Bottling Company Plc. However, the specific objectives of the study include:

1. To examine the impact of monetary incentives on employees’ motivation.
2. To ascertain the pattern of response of employees to the motivational techniques

employed by organizations.

• To find out how job security help to motivate employees in improving their level of

productivity.

1. To understand the impact of employees’ welfare on motivation and productivity.

• Hypothesis

However, to achieve the objective of this paper, the following hypotheses were tested:

Ho₁– There is no significant relationship between monetary incentives and employees’ motivation.

Ho₂– There is no significant relationship between pattern of response of employees and motivational techniques employed by organizations.

Ho₃-There is no significant relationship between job security and employees’ productivity.

Ho₄– There is no significant relationship between employees’ welfare and productivity.

• Significance of the Study

The importance of this study cannot be over emphasized. It will be based on the examination of the motivational practice in Nigeria bottling company limited plc, Edo state and to know the extent to which it is being carried out, the effect on the workers, the organization and the country at large.

It is hoped that the findings of this study will help in formulating industrial relation policies in Nigeria. More so, it will help organization to maintain a high level of productivity and overcome obstacles or challenges to improve performance of employees.

This study is further as it will help managers and leaders in our society to identify the factors that they need to rely on in order to successfully motivate their employees to perform at their optimum.

It will also acquaint the various managers and different categories of employees on the need to embrace motivation which will go a long way in enhancing higher productivity. Yet students in the field of administration will find it educative, interesting and challenging in that, the various ways to increase employee motivation to understand the fundamentals that are required in terms of actually motivating and employee.

This study would be of invaluable assistance to future researchers interested in similar studies of the insight generated in this discourse and hence will help interested researchers and administrators to generate facts that will be useful to management and behavioural scientist who wish to know how employee in beverage industries are motivated to improve their performance.

• Scope of the study

The scope of this study was limited to Nigerian Bottling Company PLC and 7Up Bottling Company Limited PLC, respectively located in Benin City. It covers the aspect of motivation in persuading, stimulating, and improving an imploring an employee to act in a manner which fulfills the objectives of the organization.

• Limitation of the study

This researcher in the course of this study encountered lots of problems. There was the problem of collection of data which almost which almost conflicted with the researcher other engagements.

Another problem is respondent apathy. Some respondent with hold information and did not give complete accurate information. This is termed the unwillingness to disclose organization strategy There was the problem of getting responses from staffs, especially the management staffs, marketing staffs who most times of visits are not around. Further to this, is the problem of some staff that the questionnaires were distributed to but have fear of divulging information about the organization . The unresponsive nature of the establishment, information sources and inadequate materials, textbooks and other materials from close sources was another constraint.

• Corporate Profile:

1.9.1    Nigerian Bottling Company Plc. (NBC)

The Nigerian Bottling Company Plc. (NBC) was incorporated in November 1951, as a subsidiary of the A.G. Leventis Group with the franchise to bottle and sell Coca-Cola products in Nigeria. From a humble beginning as a family business, the company has grown to become a predominant bottler of non-alcoholic beverages in Nigeria, responsible for the manufacture and sale of over 33 different Coca-Cola brands. Other popular brands of beverage produced by the company are Eva Water, Five Alive fruit juice and the newly introduced Burn energy drink. It became a public company in 1972 with its shares listed in the Nigerian Stock Exchange. The company presently has 13 bottling facilities and over 80 distribution warehouses located across the country. Since production started, NBC Plc. has remained the largest bottler of non-alcoholic beverages in the country in terms of sales volume, with about 1.8 billion bottles sold per year, making it the second largest market in Africa. Today, the company is part of the Coca-Cola Hellenic Bottling company (CCHBC), one of Coca-Cola Company’s largest anchor bottlers worldwide. CCHBC operates in 28 countries, serving 540 million consumers and selling over 1.3 billion unit cases of beverage annually. The company is governed by a stable nine member board of directors comprising of very prominent individual who have excelled in different fields of endeavor within and outside Nigeria. The Board is headed by Ambassador Olusegun Apata while the management team is led by Mr. Ronald Ebelt, an expatriate professional. NBC generates its own power and is self-sufficient in carbon dioxide and water production. It has 16 bottling facilities around the country, and it uses 82 distribution warehouses and 200,000 distribution outlets. The company’s head office is on the Lagos mainland at Ebute-Metta NBC employs over 7,000 people, making it the largest employer in the non-oil private sector in Nigeria.

Nigerian bottling company is located in lkpoba-Okha Local Government Area of Edo State with head quarter at Idogbo. The company was built in 2000 and commissioned in 2001. It currently has staff strength of 535 workers (including casuals). The breakdown of staff includes 305 permanent staff made up of 39 management staff, 76 senior staff and 190 junior staff. However the casual number of staff is made up of a total of 230. The company does not entertain the policy of contract staffing.
1.9.2    Seven-up Bottling Company PLC (7UP)

The company was incorporated as private limited liability company on 25th June 1959 under the name Seven-Up Ltd. On 16th May, 1960, the name was changed to Seven-Up Bottling Company Ltd. and in 1978 it became a Public Company. The name Seven-Up Bottling Company was adopted 26th November, 1991 in compliance with the provisions of the Companies and Allied Matters Act 1990.The Company engages in the bottling and distribution of soft drinks which include the brands 7UP, Mirinda, Pepsi, Teem, and Mountain Dew.The Nigerian head office is located along MoshoodAbiola Way, Ijora, Apapa, Nigeria. The Company also has over 200 distribution centers also called Depots spread across Nigeria. It has a workforce in the neighbourhood of 3,500 employees.

A Lebanese Mohammed El-khalil who came to Nigeria for the very first time in 1926 founded the company. Mohammed is the father of the company’s current chairman Faysal El-Khalil. The company metamorphosed from a very successful transport business [El-Khalil Transport] in a bid to diversify the then largest transport company in the entire West of Africa. On October 1st 1960, the exact day our great country Nigeria won her independents, Nigerians also experienced the birth of a soft drink giant as the first bottle of 7Up rolled out from our factory located in Ijora. Since then, our company continued to grow in the leap and the bound. In the late 80s, we established two more plants in Ibadan and Ikeja. In the early 1990s when Pepsi International took over 7Up international, we again got great opportunities to introduce the Pepsi brand to the Nigeria people. Currently, the company has its Headquarters in Beirut and has its operational base in three African countries: Nigeria, Tanzania, and Ghana.

Seven Up Bottling Company was built in 1997. It is located in Ovia North East Local
Government Area of Edo State with headquarter at Okada. It currently has staff strength of 414
workers (including casuals). The breakdown of staff include 221 permanent staff made up of 30
management staff. 77 senior staff, and 114 junior staff. The casual number staffs made up of 193.
The company does not entertain the policy of contract staffing.

• Organization of the Study

In chapter one, examined the introductory aspect of the study. The following were discussed in chapter one: the background of the study, the statement of the problem, the objective of the study, the scope of the study, significance of the study, limitation of the study, statement of hypothesis, organization of study and operational definition. Chapter two focused on review of related literature. In chapter three dealt with the study’s research methodology. In Chapter Four, analysis of data presentation, analysis and interpretation were examined. While the final chapter, that is chapter five, focused on the summary of findings, conclusion as well as recommendations.

• Operational definition of terms

Employee: This is a person who is paid to work for an organization or business firms Extrinsic Reward: Refers to external outcome granted to someone by another person or by organizational system such as money, promotion, etc.

Motivation: This is the process of arousing behaviour, sustaining behavoiur in progress and channeling behaviour into a specific course of action.

Management: This is the process of getting things done through people. It involves planning, organizing, staffing, directing, coordinating, and controlling both human and material resources for the purpose of achieving set goals.

Manager: Is one who performs the function of management (planning, organizing, staffing, etc) and occupies a formal position in an organization.

Organization: This has to do with determination and provision of capital, material, equipment and personnel that may be required in an enterprise in order to achieve the set goals. Productivity: Productivity is the relationship between given amount of output and the amount of input needed to produce it.

Department: Any of the division or unit of a government, business, school or college and so on Intrinsic Reward: Refers to motivation that is driven by the interest or enjoyment in the task itself, and exits within the individual rather than relying on any external pressure.

Behaviour: Is the manner that someone, an animal, a plant, etc do things in a particular way.

Satisfaction: The good feeling that you have when you have achieve something that you wanted to happen does happen

Safety: It is the process of evaluating risks to workers’ safety and health from work place hazards.

EmployeesWelfare: It is broadly define to include compensation, working hours, lobour, insurance, education, vacations, employment services and union organization

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