1.
Introduction
The study investigates the impact of motivation on employee performance, focusing on
financial rewards, promotions, and recognition. The Ministry of Finance in Hargeisa,
Somaliland, was selected as the study area due to its organizational challenges,
including absenteeism, low morale, and employee turnover. The research seeks to
bridge gaps in understanding the relationship between motivation and performance by
addressing how motivational factors affect organizational outcomes.
Chapter One: Introduction
Background:
Motivation is a significant factor influencing employee performance globally.
Studies have shown a strong link between motivation and organizational success.
Locally, the Ministry of Finance in Hargeisa faces challenges like absenteeism and low
morale, often due to poor working conditions, unfair policies, and lack of proper
payment systems.
The chapter highlights the importance of viewing employees as valuable assets and
implementing motivation strategies.
Statement of the Problem:
The Ministry suffers from poor employee motivation, leading to issues such as turnover,
delays, and low morale.
The organization needs to prioritize motivation to enhance employee performance.
2. Research Objectives
General Objective: To determine the role of motivation in enhancing employee
performance at the Ministry of Finance.
Specific Objectives:
Evaluate how financial rewards influence employee performance.
Analyze the effect of promotions on performance.
Assess how employee recognition impacts performance.
Research Questions:
What are the effects of financial rewards, promotion, and recognition on employee
performance?
Significance:
Academic and practical implications: Contributing to existing knowledge and guiding
HR practices in the Ministry.
3. Key Findings from Literature Review
Motivation Theories:
Maslow’s Hierarchy of Needs: Employees must satisfy lower-level needs (e.g., security,
food) before progressing to higher-level needs like self-actualization.
Herzberg’s Two-Factor Theory: Hygiene factors (e.g., salary, conditions) prevent
dissatisfaction, while motivators (e.g., achievement, recognition) enhance satisfaction.
Equity Theory: Employees are motivated when fairness in rewards and promotions is
perceived.
Financial Rewards: Bonuses and fair salaries enhance employee morale and reduce
turnover. Effective financial incentives also fulfill higher-level social and esteem needs.
Promotions: Promotions validate employee contributions, boost morale, and increase
productivity through skill development.
Recognition: Public acknowledgment of employees' work fosters motivation and loyalty
while reducing burnout and turnover.
Chapter Three: Research Design
1. Research Design:
a. Descriptive research using quantitative methods to explore motivation's
effects.
2. Sample Design:
a. Population: 2,630 employees at the Ministry of Finance.
b. Sample Size: 347 employees determined using Slovin's formula.
c. Sampling Technique: Cluster and random sampling.
3. Data Collection:
a. Primary data: Questionnaires distributed to employees.
b. Secondary data: Collected from existing research and records.
4. Analysis Methods:
a. Tools like Excel, SPSS, and Stata were employed for statistical analysis
and data presentation.
5. Validity and Reliability:
a. Structured questionnaires ensured reliable responses, though online
methods faced challenges like limited internet access.
6. Ethical Considerations:
a. Confidentiality, informed consent, and proper citation were prioritized.
5. Challenges Identified
The Ministry faces several barriers to employee motivation:
Poor working conditions and unfair payment systems.
Lack of recognition and inconsistent promotion practices.
Inefficient interpersonal relationships and strict supervision methods.
6. Significance of the Study
The findings will provide actionable insights for policymakers and leaders at the Ministry
of Finance. The study is expected to guide the development of effective HR practices to
enhance motivation and performance, thereby improving organizational productivity.
7. Conclusion
The study underscores the critical importance of employee motivation through fair
financial rewards, equitable promotion systems, and robust recognition programs.
Addressing these factors is essential to achieving better performance and retention of
employees in competitive organizational settings like the Ministry of Finance.
