EFFECT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL PRODUCTIVITY

Abstract

The issue of motivation has continually posed a big challenge to business organizations around the globe especially in the manufacturing industries where high levels of productivity affect or play a major role in determining the profitability, growth, development, stability and future success of an organization. Therefore an organization in a bid to achieve success in maintaining a competitive edge over its rival as well as avoid a steady decline in the productivity levels of its employees, must ensure members of the workforce are adequately motivated. The primary purpose of this study is to examine the effect of employee motivation on organizational productivity. This study adopted a descriptive and causal research design as well as the survey method in investigating the effects of motivation on organizational productivity levels. The entire population of the study was 475 as a result the sample size determined is 217. A well- structured self-administered questionnaire was used as the main tool for data collection and was administered to 217 respondents out of which 185 were retrieved and appropriately filled. Reliability of the research instrument was calculated and the Cronbach’s alpha coefficient was 0.868. Data were analyzed using multiple regression analysis. From the hypotheses tested, the result indicated that there is a significant relationship between employee motivation and organizational productivity. Findings also revealed that 35.8% of the variations in productivity can be explained by employee motivation in the organization used as a study in this research. The results also revealed that extrinsic factors were considered to have more significant effects on organizational productivity than intrinsic factors. The study concluded that although both intrinsic and extrinsic factors are significant predictors of productivity, extrinsic factors appear to be more significant or valued by respondents in the organization used as a study. Furthermore this study also recommended that management of organizations should take appropriate measures in figuring out those factors that motivate their employees and seek ways of ensuring that they are adequately motivated in order to improve their performance and productivity levels. Finally the study also suggested that future studies should focus on other industries apart from the pharmaceutical manufacturing sector.

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