CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years, the relationship between employees’ motivation and organizational performance
has provoked arguments among academic researchers and personnel management professionals.
Employee motivation is significant to the organization and the factors of motivation play a vital
role in increasing employee job satisfaction, as a result leads to the improvement organizational
performance. Motivated employee is a valuable benefit who produces value for revenue, growth
and strengthening organization’s business. Motivation works if the right employee with
appropriate skills is made responsible for the job or otherwise it will lead to job dissatisfaction
and the wastage of time and resources (Armstrong, 2009).
Motivation is probably one of the most researched areas of management. If a manager can grasp
what will motivate his/her employees, that manager will have more productive force (Mullins,
1996). In order to motivate workers to work for the organizational goals, managers must
determine the needs of employees, factors that motivate them and provide an avenue in which
appropriate incentives are available for their satisfaction. If the management is successful in
doing so, there will be a positive impact on the willingness of the workers to work and hence the
efficiency and effectiveness of the organization will be increased. In other words, such
organization would experience increased performance.
One of the major concerns of the organization is its profitability, hence the need for efficiency.
The success or failure of a company is dependent on the enthusiasm and dedication of its
employees to their jobs. Motivation plays a key role in enhancing employee effectiveness and
efficiency. In this era, organizations are in a continuous state of competition and this has
intensified the need to improve employee’s performances and invariably that of the organization.
Organizations are faced with a quickly changing environment and this means that they have to
develop a more focused and coherent approach in how they manage people. This has been
challenging for employers for a long time and has been dealt with in different ways across
organizations over time. Hence, it is vital for any organization to constantly discover different
ways to motivate employees so as to improve performance, productivity and qualities, which will
also reflect on the overall performance of the company and help maintain competitive advantage

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in the market. This is due, in part to the fact that what motivates employees’ changes
continuously.
1.2 STATEMENT OF THE PROBLEM
The Banking Sector has grown from a few institutions who primarily were involved in deposit
acceptance and trade finance into a complex multiplayer market where large number of financial
institutions, commercial banks operate with diverse products and services. On a daily basis,
banks are involved in various activities that require appropriate manpower and a highly effective
team to function effectively. As such, corporate goals are set and translated into viable realities
only when employees play their due roles in achieving desired results. In today’s chaotic
business environment, success depends on employees utilizing their talents. Despite the myriad
of available theories and practices, there has always been a misconception around motivation
because individuals are motivated by different things or needs and in different ways.
Over time, it has been established that the main problem towards an effective motivation system
is the ability for managers to examine and analyze the employee’s needs. Furthermore, there
exist some contradiction between employee’s identification of his/her need and the company’s
identification of the employee’s needs. This is due to the fact that employees are different and
are motivated by different factors. Also, not all employees’ needs would correspond to the
organization’s needs; hence some needs may relate entirely to the individual’s private life and be
neutral to company’s goals.
Based on known facts, the concept of motivation in management has been widely investigated
into by several researchers before this researcher is attempting to make headway for further
investigations in it recently. From all the observed research works conducted on motivation as a
determinant of organizational performance, no research work on it as critically examined the
three key elements (promotion, pay and praise) of motivation on the performance of an
organization. Hence, this research work provides information on promotion, pay and praise as
some of the elements of motivation that serves as determinants to performance in banking
industry.
1.3 OBJECTIVE OF THE STUDY
The primary objective of this study is to determine the impact of motivation of employees on
organization’s performance. The specific objectives of this study seek to:
i. Determine the effect of pay to employees on organizational performance.

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 ii. Determine the effect of promotion of employees on organizational performance.
iii. Determine the effect of praise to employees on organizational performance.
1.4 RESEARCH QUESTIONS
i. What effect does pay to employees has on organizational performance?
ii. What influence does promotion of employees has on organizational performance?
iii. How does praise of employees affect organizational performance?

1.5 RESEARCH HYPOTHESIS

i. H0: Pay of an employee does not have an effect on organization’s performance.
H1: Pay of employees has an effect on organization’s performance.
ii. H0: Promotion of an employee does not have an influence on organization’s
performance.
H1: Promotion of employees has an influence on organization’s performance.
ii. H0: Praise of an employee does not affect organization’s performance.
H1: Praise of an employee affects organization’s performance.

1.6 SIGNIFICANCE OF THE STUDY

For this study not to be an effort in futility, it has to be useful to a number of people and
institutions among which are;
i. Organizations: The aim of this study is that the outcomes, results or findings should
be beneficial to business owners, managers and organizations especially in the
locality where this study is being conducted. This is to enable them understand the
concept of motivation and its effect on productivity. It also gives an insight to
managers and business owners on the importance of knowing their employees and
ensuring adequate motivation in their organizations.
ii. Research Institutions: This study is also relevant to research bodies and institutions in
the nation as a whole because findings would also be relevant to students and users of
information in conducting further research in areas similar to this study.
iii. Government Agencies: This research is also of paramount importance because it would
aid government agencies in making and implementing policies that would enhance the
stability, growth and development of businesses throughout the region in matters concerning

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 organizational productivity by seeking ways ensure that employees are adequately motivated
in their various organizations thereby increasing overall productivity and performance levels.
1.7 SCOPE OF THE STUDY
The scope of this study is limited to a selected financial institution (Polaris Bank Nigeria
Plc) at Old Garage Ado-Ekiti, Ekiti State, Nigeria where the study is being conducted. This
study examines employee motivation and its resulting effects on organizational performance.
Polaris Bank Nigeria Plc was selected because it is one of the fastest growing financial
institutions currently situated in Ekiti state.
1.8 LIMITATIONS OF THE STUDY
The demanding schedule of respondents at work made it very difficult getting the
respondents to participate in the survey. As a result, retrieving copies of questionnaire in
timely fashion was very challenging. Also, the researcher is an undergraduate (student) and
therefore has limited time as well as resources in covering extensive literature available in
conducting this research. Information provided by the researcher may not hold true for all
businesses or organizations but is restricted to the selected organization used as a study in
this research especially in the financial institution where this study is being conducted.
Finally, the researcher is restricted only to the evidence provided by the participants in the
research and therefore cannot determine the reliability and accuracy of the information
provided.
1.9 DEFINITION OF TERMS
Motivation: refers to what stimulates and guides human behaviors and how these behaviors
are sustained to attain a specific goal.
Organizational performance: Organizational performance comprises the actual output or
results of an organization as measured against its intended outputs (or goals and objectives).
Pay: Pay in this research works represents all forms of financial rewards such as
compensation/remuneration in wages and salaries, fringe benefit, commission, allowances,
etc. Hence, pay refers to monetary incentives that an employee earns as a result of good
performance.
Promotion: Promotion means the advancement of an employee to a higher job involving more
work, greater responsibility and higher status.

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Praise: Praise as a form of social interaction expresses recognition, reassurance or admiration.
Praise is expressed verbally as well as by body language (facial expression and gestures). In this
research work, praise represents encouragement or recognition given to employees during work
hours for commitment to their work.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 CONCEPTUAL REVIEW
2.1.1 MOTIVATION
What is motivation?
Stanley Vance (2015) defines motivation as any emotion or desire which so conditions one's
will that the individual is propelled into action. Davies (2005) suggested that the concept of
motivation entails what goes on inside a person that results certain behaviors. As regards
organizations, he stresses that an absence of motivation is reason enough for a worker not to
attain gratification from the work.
Luthans (1992) says, “Motivation is a combination of needs, drives and incentives.
Motivation is defined as the process that starts with physiological or psychological
deficiency or need that activates behavior or a drive that is aimed at a goal or incentive”.
Obikeze (2005) viewed motivation as the process of guiding an employee’s actions towards
a particular end via the manipulation of rewards. Jennifer and George (2006) defined
motivation as a mental force that governs the direction of an individual’s behavior in an
organization, an individual’s level of effort, and an individual’s level of determination when
faced with obstacles. In addition she stated that even with appropriate strategies and
administrative structures in place, an organization can only be productive if its employees
are sufficiently motivated to perform at higher levels.
Herzberg (2000) says motivation could be defined in relation to forces within employees that
justify the levels, directions, and resolution as regards efforts they expend in the workplace.
George and Jones (2012) termed work motivation as self- induced forces that control the
directions and behavioral patterns of the workforce in an organization taking into account
their levels of commitment and enthusiasm towards the successful accomplishment of set
goals.
Can you find a common thread from all of the above definitions?
From the above definitions it can be said that motivation as a whole, is more or less
fundamentally concerned with those forces or elements that triggers certain human actions or
behaviors. It can also be deduced that creating a work place environment in which adequate
motivation is sustained has a positive impact on employee performance. This is because

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employee motivation is the core of the field of an organization’s behavior and a high level of
motivation encourages employees to be highly productive, perform better at their jobs and
wholly increase the performance levels of such an organization. However, creating such an
environment still poses a challenge to managers and organizations as a whole. This problem may
be based on the fact that an organization’s productivity levels only increases when the level of
employee motivation rises.
2.1.1.2 TYPES OF MOTIVATION
Lin (2007) proposed that motivation can either be intrinsic or extrinsic. In the workplace as well
as other settings, motivation is often classified as being naturally extrinsic or intrinsic
(Martocchio, 2006). Lin, 2007; Deci & Ryan (2000) also identified several classes of motivation
namely; extrinsic and intrinsic motivation.
Intrinsic motivation: can be referred to as motivation derived from within the individual or
from the activity itself, it can be said to have an affirmative outcome on the conduct,
performance and well-being of an individual ( Deci & Ryan, 2000). In the workplace, it springs
from impulses that are characteristic of the work itself. It is what workers derive because of their
success in completing a task. Such Intrinsically motivated reward comprises the chance to
showcase expertise and abilities, receive gratitude, good recognition, freedom, responsibility and
mutual respect. Intrinsically driven work conducts are behaviors performed for one’s own sake,
that is, the inspiration to work emanates from within the individual. Here the worker is motivated
because he derives happiness in doing the job.
External motivation: Extrinsic motivated behaviors are those that are external to the activity or
the work, such as compensation, conditions of work, welfares, safety, and elevation etc. these
motivators are usually determined by the company the individual works for. Extrinsic behaviors
require workers to work hard or put in extra hours so as to get the reward that comes with it.
Workers may not like the task but are inspired by the additional benefits, awards etc. It is a
behavior that is put up to obtain substantial or social rewards and to evade chastisement. For
instance, a receiver in a guesthouse is aware that working hard and diligently would bring about
additional benefits and even promotion may not be happy putting in extra hours but the incentive
forces him/her to work harder.

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The universal difference between intrinsic and extrinsic motivation is that whereas intrinsic
motivation is triggered by internal forces or those within oneself, extrinsic motivation is
determined by external forces.
2.1.2 ORGANIZATIONAL PERFORMANCE
Organizational Performance is "the idea which comprehends what used to be acquired as the
outcome of intentional and planned activity in set up circumstances.
Griffin (2006) Organizational performance is depicted as an organization's ability to collect and
utilize its scarce resources and valuables or immediately as feasible in the pursuit for its
operational objectives. According to Campbell (1999) Organizational performance concept
defined overall performance as conduct or action applicable to the attainment of an
organization’s goals that can be scaled, which is measured.
Performance is the level of attaining the goal both for the organization and the individual. Some
researchers like Campbell (1999) state that performance is now not simply the end results of the
activity, it is the activity itself. Campbell (1999) defines performance as behavior suitable to the
purpose of the enterprise which can be measured in accordance to the contribution level.
Considering the definition, it is understood that performance depends on the personal traits,
mental competencies and eagerness to be integrated with institutional purposes of each
individual.
Hence, Organizational performance comprises the actual output or results of an organization as
measured against its intended outputs (or goals and objectives).
2.1.2.1 METHODS OF MEASURING ORGANIZATIONAL PERFORMANCE
There are two methods of measuring organizational performance: Subjective and Objective.
Subjective Measures are non-Financial or non-Economic indicators of performance dimension
like sales growth, market share, employee satisfaction, consumer satisfaction, product
development, competitive advantage, consumer retention and some different factors.
Objective assessment is monetary or economic measure of organizational performance by way
of using financial information like profit, revenue, return on investment (ROA), return on equity
(ROA), and return on assets (ROA), share price, liquidity and operational efficiency.
2.1.3 ORGANIZATIONAL PROFIT

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Profitability is the primary goal of all business ventures. Without profitability the business will
not survive in the long run. So measuring current and past profitability and projecting future
profitability is very important.
Profit is the remaining revenue, also known as income, after a company has accounted for all
expenses. In small businesses, the profit usually goes directly to the company's owner or owners.
Publicly owned and traded corporations pay out profits to stockholders in dividends. A business
owner can keep the money or reinvest it into the company to encourage growth and more profit.
Profit is an essential outcome of running a business. Often, earning a profit is the company's
primary goal. A positive bottom line shows that the company is healthy and performing well.
Profit is capital that companies can use for a variety of purposes, like maintaining the workplace
or equipment, replacing or upgrading vehicles or other high-cost items, or investing in new
products, services or employees. With good profits, businesses can expect to continue
flourishing.
Sarngadharan&Rajitha (2011) differentiate profit from profitability based on how it measure the
earning capacity, in which profit is an absolute measure of earning capacity but profitability is a
relative measure of earning capacity. Profitability can be defined as the ability of a firm to
generate profits. Profit indicates a firm’s earning during a specified period. While, profitability
denotes whether these profits are constant or improved or deteriorated, how and to what extent
they can be improved. That is why profits of two different firms might be identical, however not
for the profitability. Company profitability was company's ability to generate net income from
the activity undertaken in an accounting period. Profitability can become an important
consideration for investors in their investment decisions. With a bid to get the high profits, was
expected to attract investors in investing. Many leaders use financial performance as basis for
company's performance. Companies that can get huge profits can be said to be successful, or
have a good financial performance (Moeljadi, 2014). Profitability was the end result of a number
policy and decision management (Brigham et al., 2006). Company profitability was a company's
ability to generate net income from the activities carried out in an accounting period.

2.1.4. PRAISE AS A MOTIVATIONAL TOOL

When it comes to motivating team members, offering praise and recognition for a job well done
can be extremely powerful.

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Praise or recognition is a form of nonfinancial motivator that plays a crucial role in satisfying the
ego needs of the organization workforce. Robbins (2011) is of the opinion that praise motivates
the employees and can be very instrumental in employee motivation than the other incentives.
Praising employees make them respond positively. In this case, employees strive to perform to
their maximum for the good of the organization. Praise is also important in the long-term
relationships between the employees and managers. The managers who praise and celebrate
employees’ success at work tend to have motivated staff than unappreciative managers. Praise on
the other has its counterpoints as illustrated by Robbins.
Praise may tend to be paradoxical, not genuine, and may just come from people whom the
employees try to appease (Robbins, 2011). Praise can greatly influence the organizational
behavior of any organization. According to Robbins (2011), six dependent variables influence
organizational behavior. These variables include absenteeism, turnover, deviant behavior at the
workplace, productivity, job satisfaction, and organizational citizenship behavior.
2.1.5 PROMOTION AS A MOTIVATIONAL TOOL
A promotion, understood as an advancement of employees position within an organization,
evaluated positively by the promoted, constitutes an important motivation factor. It satisfies
the need of recognition and increases employee’s self-assessment. If correct, a promotion has a
beneficial effect on the employee’s behavior and their environment. It increases their eagerness
and willingness to act, gives them an opportunity to perform a better and better-paid work,
encourages them to improving their competence. While an unjust promotion weakens relations
in an employee group and leads to frustration and desire to change the workplace, especially
among those employees who feel that they were the ones who should have been promoted. If a
promotion is to play a motivational role in an enterprise, it is necessary to carry out an
authentic promotion policy, based on reasonable, proven principles that open promotion
opportunities, primarily for employees who are creative, gifted and achieving outstanding results
in their work.
The principles may be defined as follows:
a) strict criteria of promoting to particular positions should be established,
b) the criteria should be set forth in employee regulations and communicated to all staff
members,
c) they should be applied consistently and in an open manner,

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d) the use of those criteria should be subject to social control,
e) the criteria should be stable in long periods, a new management of the organization should not
change them.
Using those principles requires an appropriate selection of personnel and relatively regular
evaluation of all employees. An organization may and should conduct systematic employee
evaluations. The need of evaluation is a natural human need and satisfying it has a motivating
value. An evaluation given to an employee constitutes a direct stimulus for them to act. When
using descriptions of skills and attitudes which form a given competency, it is possible and even
desirable to prepare an interview questionnaire which can be used to measure
competencies. A correctly specified scope of competencies should be a basis for effective
promotion of relevant people in an organization. Only such a procedure seems to be just and
evaluated appropriately by human resources in an enterprise. In order for a promotion of a given
person to be considered just, a multisource competence assessment method can be used. It
consist in collecting information about an employee from the people who currently work with
them.
2.1.6 PAY AS A MOTIVATONAL TOOL
As earlier agreed, pay, in this research work represents all forms of financial rewards such as
compensation/remuneration in wages and salaries, allowances, fringe benefit, commission, etc.
Pay refers to the amount of money and benefits that an employee receives from his organization
in return for his or her contributions to the organization. This practically satisfies material, social
and psychological needs of the individual. Compensation or pay is linked with general
satisfaction and more closely linked with pay satisfaction (Lumley et.al, 2011).
Employees receive different kinds of benefits in the form of wages, salaries and pay. Mostly
individuals with good education, relevant skills and experience are unsatisfied with their job and
salary packages resulting in high rates of turnover and low productivity. As such organizations
make compensation plans for them in a bid to minimize the turnover and to motivate them. In
other words you can say that compensation motivates employee for better performance and
higher productivity levels. Compensation may also come in the form of Fringe benefits which
focuses on maintaining the quality in terms of lifestyle as workers, provide them with a certain
level of safety and financial security taking into consideration their family relations. Some
common examples are; retirement or pension plans, medical insurance, education reimbursement

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and time off. Fringe benefits are forms of indirect compensation provided for a worker or group
of workers as a result of their status as members of the organization (Matthias and Jackson,
2003).
According to Allis and Ryan (2008), the cost of compensating workers that is in form of
payments, wages, and other benefits - are a huge and increasing part of operational expenditures;
yet, productivity may decrease amongst employees if such payments and benefits are not made
available to them. Simply put employees are more industrious and productive when reasonable
pay is attached to performance.
Although compensating workers may have an effect on productivity, other factors can also
increase output with little or no costs to the organization. While pay can be seen as an example,
workers also appreciate being validated if they are to be productive in the workplace. The need
to feel that their jobs are of value and contributes significantly to the success of the organization
is important to the workers. While adequately compensating them may help, validation does not
necessarily have to be financial. This is because simply thanking them can also make an
employee feel appreciated. As regards validation, workers may also be extremely productive
when they can envision where they fit in the big picture.

2.1.7 PRAISE AND ORGANIZATIONAL PERFORMANCE

There are many theories that support the perspective that praise motivates. In his theory of
reinforcement, Skinner argues that a firm can motivate its employees in two ways. According to
Skinner, positive reinforcement is a situation whereby organizations motivate employees through
both intrinsic and extrinsic rewards. Companies give these incentives as a positive response to
individual performance and behavior.
Praise can be a positive reinforce of motivation if employees are going to be stimulated by it.
The aspect of praise sufficiently fits into the reinforcement theory. This is because it influences
employee behavior. However, Skinner also argues that the organization can also use negative
reinforcement to remove undesirable consequences. This could be through demotions,
punishments, penalties or transfers (Phillips & Gully, 2012).
This perspective is also consistent with the theory X and Y as postulated by Douglas McGregor
(Robbins, 2011). According to McGregor, managers who embrace theory X tend to have

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demotivated staff because of their perception that employee know what is expected of them and
need not be coerced to perform their duties.
Praise fits in this exhibit because the managers who practice theory Y believe that satisfying
employees’ needs will influence their behavior at the workplace. This will positively affect the
employees’ motivation. Praise of recognition as an esteem factor is important in maximizing
employee motivation.
Herzberg postulated the third theory of motivation in 1959. Herzberg identified two factors that
are crucial in employee satisfaction. He identified hygiene factors as those factors essential for
employee motivation in an organization. According Herzberg, hygiene factors do not lead to
long-term employee satisfaction.
However, when they are absent in an organization, it leads to dissatisfaction. Herzberg identified
remuneration; job security; physical, working conditions; employee status; work conditions and
fringe benefits as critical hygiene factors. In his second factors, Herzberg categorized praise or
recognition, sense of achievement, work promotions, responsibility and meaningful work as
motivational factors.
Herzberg was of the opinion that motivational factors are intrinsic satisfiers that result in positive
satisfaction among the employees in an organization (Herzberg, Mausner&Snyderman, 2005).
Praise is consistent with the illustration by Robbins as one of the satisfying factors that can lead
to extreme satisfaction in an organization.
Meanwhile, it is agreed from various research findings that once employees are motivated, it
automatically translates to increased organization performance. Hence, there exist a close
relationship between praise of employees and organizational performance.
2.1.8 PROMOTION AND ORGANIZATIONAL PERFORMANCE
Promotion is simply defined as an act of placing a worker or moving him to a more important job
or rank in a company or organization. Some things are attached to the promotion of workers
such as incentives, increased allowances and salary packages, accommodation, drivers,
messengers and company cars. The sole purpose of promotion in any business organization is to
motivate the workers towards achieving organizational goals. Certain job positions with
excellent promotion prospects have been the objects of hot pursuits and desires of workers in any
business organization. Sometimes a promotion result in an employee taking on responsibility for
managing or overseeing the work of other employees. Decision making authority tends to rise

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with a promotion as well. (Heathfield,2011) Visually, a promotion moves an employee’s job up
one level on an organizational chart.
Individual contributors must be eligible for promotions that recognize and reward their role as
contributors. Promotion is a powerful communication tool about is valued within an
organization. Thus, a promotion must be available to employees who pay any role in the
contribution of work and value.
People will be persuaded to give their best in their jobs if they are motivated through
promotion. To be motivated means to be moved to do something. Excitement, interest and
enthusiasm towards are the primary components of job satisfaction and to motivate those
rendering better services to the organization. Promoted workers are easily moved to pursue after
organizational goals and objectives.
Therefore, pursuit of the goals and objectives of an organization by a promoted employee
signifies an attempt to speed up the rate in the initial level of the organization’s performance.
2.1.9 PAY AND ORGANIZATIONAL PERFORMANCE
The impact of Pay and benefits on employee performance and organizational effectiveness
depends on the existing compensation and performance management programs at an individual
organization. Typically, most employees respond to increases in pay and benefits with a positive
and more productive attitude. However, the opposite is true as well. Sometimes, employees only
notice rewards of a salary increase the day the increase is communicated to them, and the day
they receive the first paycheck that includes the salary increase (Wadhwa, & Tripathi,2018). In
the long run, the effects of compensation and benefits diminish as employees begin to feel a
sense of loyalty and organizational commitment. When employees begin to feel they are an
indispensable part of the organization, they often become dissatisfied with their compensation
and benefits. Finally, when employees feel they are a superior part of an organization, they
typically believe that the organization owes them much more than what they are already
receiving. At this point, Pay is simply the glue which holds many dissatisfied employees in place
(Okoye, 2022).

Two important ways organizations measure their performance are in terms of their profits and
their stock price. In a competitive marketplace, profits result when an organization is efficiently
providing products that customers want at a price they are willing to pay. Stock is the owners'
investment in a corporation; when the stock price is rising, the value of that investment is

14
growing. Rather than trying to figure out what performance measures will motivate employees to
do the things that generate high profits and a rising stock price, many organizations offer
incentive pay tied to those organizational performance measures. The expectation is that
employees will focus on what is best for the organization.
These organization-level incentives can motivate employees to align their activities with the
organization's goals. Linking incentives to the organization's profits or stock price exposes
employees to a high degree of risk. Profits and stock price can soar very high very fast, but they
can also fall, as witnessed by many wary investors. The result is a great deal of uncertainty about
the amount of incentive pay each employee will receive in each period. Therefore, these kinds of
incentive pay are likely to be most effective in organizations that emphasize growth and
innovation, which tend to need employees who thrive in a risk-taking environment.
Since the reason for performance of work by an employee in a contract of employment is to get
compensation or pay which represents sustenance for means of livelihood. That is to say, to a
considerable extent there is a high degree or tendency that an organization performs excellently
well as long as employees of such organization gets their pay in due time.

2.2 THEORETICAL REVIEW

2.2.1 ABRAHAM MASLOW’S HIERARCHY OF NEEDS THEORY
In the book titled Motivation and Personality, Abraham Maslow a distinguished psychologist
postulated the Hierarchy of Needs theory (Maslow, 1954). He Stated that human needs can be
categorized into five groups and that these groups can be organized in a pecking order ranging
from the most important to the least important. These comprised needs such as basic or
physiological, safety, belongingness, esteem as well as self-actualization needs. He was of the
opinion that an individual is primarily motivated to fulfill physiological needs first before
considering others. This is because physiological needs otherwise known as basic needs are
essential for an individual’s survival. As such once these basic needs are fulfilled they are no
longer perceived as primary motivational elements by the individual who now moves up the
hierarchy seeking to fulfill safety needs. The process lingers pending when self-actualization
needs are fulfilled.
In the business setting, this implies that if workers are unable to satisfy their desires, there would
be a loss of morale to work and perform excellently in the discharge of their jobs to the

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organization. Maslow believed that needs can’t be fully satisfied citing that needs that are more
or less achieved stops to be a motivator. Therefore, managers in a bid to improve productivity
need to recognize the position of members of its workforce in relation to the hierarchy so as to be
able to motivate them accordingly bearing in mind that motivational tools should be tailored to
meeting their desires (Robbins, 2009).

The diagram below illustrates the hierarchy of needs;

Esteem needs

Belongingness needs

Safety needs

Physiological needs

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Physiological needs: represents those needs at the lower end of the pyramid which is also
referred to as basic human needs. They involve the necessity to ensure satisfaction of the basic
natural drives like food, air, water and shelter. Maslow is of the notion that organizations must
provide workers with salaries or payments that assists them in meeting expenses associated with
suitable living standards.
Safety needs: this is the need for security constituting the need for safety, freedom from any
form of injury be it physical, mental or fiscal terms. Such needs are stimulated after basic
survival needs have been achieved. They refer to a worker’s desire for safer and favorable work
settings without any prospective fears or injuries. Businesses try to gratify such desires by
providing their workforce with safety kits like helmets, health and well-being initiatives, safety
equipment, safety wears and boots etc. The logic is to make sure workers are inspired to perform
well and discharge their duties successfully devoid of tension or injury in a setting they assume
to be secured.
Belongingness needs: describes the desire of the workforce for a sense of belonging, approval,
rapport and love. They are initiated after security requirements are fulfilled. These needs create
room for members of a workforce to be associated and bond with themselves. Workers are
moved to perform well in their jobs when there is a feeling of acceptance.
Esteem needs: focuses on the needs of workers to be cherished and appreciated. It involves a
worker’s longing to be acknowledged and to have self-respect. When workers are elevated and
recognized in their numerous work achievements, these kinds of needs are fulfilled.
Self-actualization needs: is a worker’s desire to attain self-satisfaction and individual growth. It
is the desire of workers to evolve and make the most of their potentials. The idea is for workers
to be driven to put in their best performances for the organization as long it provides room for
them to attain self-satisfaction in their areas of expertise giving them the chance to be all they
can be.
The aforementioned needs comprise Abraham Maslow’s hierarchy of needs from the lower
levels to the higher levels. He stated that people would attempt to placate those needs that are of
utmost priority to them first. Employers in a bid to maximize workers performance have to seek
ways to gratify their needs. This is because workers are only interested in performing well if
their wants are well catered for.

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2.2.2 FREDERICK HERZBERG TWO-FACTOR THEORY
Frederick Herzberg maintained that two completely distinct set of factors determine employee
behavior in organizations. These include Hygiene factors and Motivators. Herzberg established
that factors which appeared to ensure an employee’s job satisfaction were connected to the job
contents or the aspects of the job itself and he referred to them as motivators, meanwhile, factors
which appeared to cause employees dissatisfaction were connected to the job context; and he
referred to them as hygiene factors (Herzberg, 2000).
Hygiene factors are factors that will eliminate dissatisfaction when present; examples are
company policy, basic needs, status, working environment, salary, supervision etc. while
motivators are those factors that will result in demotivation and lack of interest in the job when
not fulfilled and this could result in employees looking outside the organization for employment.
Hygiene elements are described as upkeep elements considered important in evading
dissatisfaction. On the other hand, these elements single-handedly do not ensure employee job
fulfillment and high levels of motivation. These are factors not directly concerned with the job
but concerned with the job context (Smerek& Peterson, 2007). These factors are termed hygiene
factors because their presence ensures a reasonable level of satisfaction and their absence can
cause dissatisfaction.
Hence, it is imperative that managers make available hygiene elements in order to minimize
bases of employee dissatisfaction, however to it is much more important to ensure that
motivators are present since these are the factors that motivate employees and eventually result
in satisfaction. Motivators include job associated aspects including thought-provoking tasks,
work achievements, acknowledgment and responsibility, chances for advancement and growth,
recognition for achievement (Lumley, Coetzee Tladinyane& Ferreira, 2011). Motivated and
contented workers are better positioned to be more committed as such productive than those who
are merely not dissatisfied.
This theory therefore admonishes that business managers should avoid being one-sided in
making decisions concerning factors that ensure satisfaction and motivation for optimum
performance. Based on his work, Herzberg (1974) then posited that in order to ensure job
satisfaction, the following conditions should be ensured in the organization; provision of
achievement and advancement opportunities, recognition for performance, ensuring fit between
employees’ competencies and tasks, ensuring learning and development opportunities.

18
The diagram below illustrates Herzberg’s two factor theory;

Hygiene Factors

i. Quality of work Supervision

Low High
ii. Salary
Job Satisfaction
iii. Organizational Policy

iv. Physical working conditions

v. Relationship with others Motivation Factors

vi. Job security I. Advancement

II. Opportunities
for personal
development
High Job dissatisfaction Low III. Recognition
IV. Responsibility
V. Achievement

Source: (Herzberg, 1974)

Figure 2: Herzberg Two Factor Theory

2.2.3 VICTOR VROOM’S EXPECTANCY THEORY

The expectancy theory, as opposed to the need theory, is a process theory. It relates to the
diversity existing in the workplace as regards the opinions, thoughts and concerns of workers
including their attitude and behaviors towards the job (Purvis, Zagenczyk& McCray, 2015;
George & Jones, 2012). This theory specifically focuses on the personal evaluations of a
workforce and their work place. It assesses the activities of workers based on their hopes and
aspirations (Purvis, Zagenczyk& McCray, 2015).
The theory identifies two major concerns; the first concern is that irrespective of various possible
outcomes, workers are motivated to commit their efforts to an organization only if they are
certain that the end result or outcome will realize a specific level of performance (George &
Jones, 2012). This means that, if the members of a workforce lack faith in their ability to perform

19
at a particular level, the inspiration to perform the job effectively will be low or lost (George &
Jones, 2012). The other concern is that workers would only be encouraged to perform at a
particular level, if their performance at this level would bring about preferred outcomes (George
& Jones, 2012). Schedlitzki& Edwards (2014) linked the path-goal theory to the assumptions of
the expectancy theory stating that workers have a tendency to perform effectively if they believe
that they have the capability of fulfilling the assignment, achieving the expected outcome and
that this expected outcome is of utmost value to them. The theory implies that workers will only
be willing to put their energy to work if the outcome of both concerns is positive (George &
Jones, 2012). This means that the positivity of an outcome is assumed to be associated with a
specific action, as such the willingness of a workforce to perform is largely dependent on how
positively inclined they view the outcome (Vroom, 1964; Lin, 2007). The theory outlines three
key elements that determine a worker’s level of motivation: valence, instrumentality, and
expectancy (Estes &Polnick, 2012).
The diagram below illustrates the theory;

Effort Performance Outcome Motivation.

Expectancy: Perceived likelihood that effort leads to quality performance

Instrumentality: Perceived likelihood that quality performance leads to preferred outcomes
Valence: Value of expected outcomes to the worker
The theory projects that the workforce of an organization will be motivated if they are convinced
that:
i. Committing their efforts will result in improved work performances
ii. Improved work performance will result in organizational rewards, like increase in
salaries and other benefits
iii. Rewards offered are of value to members of the workforce. In attempt to improve the
performance-outcome relationship, employers should consider using methods linking
rewards strictly to productivity. Managers should make sure that rewards provided are
merited and desired by the workers. As regards improving the effort-performance
relationship, management should participate in developing their workforce to improve

20
 their competencies and beliefs that more effort will certainly result in better performance
and productivity levels.

2.3 EMPIRICAL FRAMEWORK

This section provides for review of the studies done in the past that are related to the current
study so that the gaps identified in the related studies can be addressed by this study.
Ukaejiofo Rex Uzonna (2013) studied on the “impact of motivation on employees’
performance”. The study, which was published in a journal article, was carried out to identify the
impact of monetary and non-monetary motivation on employee. The non-monetary motivation
variables discussed include: Recognition, challenging work, advancement and opportunities, job
autonomy, authority, job security, prestigious job titles and responsibility. The monetary
motivation variables discussed include: Fringe benefits, salary, bonuses, pensions, profit sharing
and performance pay. Identifying the impact of each of these variables on employees‟
performance from the data analysis and interpretation, the following conclusions were drawn: If
managers wish to be effective, they need to have at least a basic understanding of motivation and
the different motivational theories that try to explain the concept of motivation. They must be
able to grasp the key components of theories such as Maslow’s hierarchy of needs, and
Herzberg’s two-factor theory and make an effort to truly understand their employees. It is only
by grasping these concepts that they can hope to effectively bringing about continual high
performance in their workers. The research, survey results, and interviews have given us some
valuable insight into motivation and its role in the workplace. Managers need to provide growth
opportunity and challenging jobs in order to better motivate today's workers. Without these
challenges and opportunities for growth, employees may not see a need to perform highly at
work. We have seen that recognition plays a major role in employees‟ motivation and that it is a
very effective motivator. Employees want and need to feel that their contributions make a
difference and recognition is one way to satisfy those wants or needs.
The research and interviews have confirmed that the use of non-cash rewards can be an effective
and cost-efficient way to motivate employees, and the majority of our survey respondents agree
with this statement. In conclusion, when it comes to bringing out the best performance of
employees, growth opportunities and challenges, recognition and non-cash rewards are more
effective motivators than money.

21
Alase, Gbenga Ayofe,Akinbo, and Tina Martha (2021) studied employee motivation and job
performance. This article revealed that both monetary (competitive salary, salary raise,
allowances, bonuses, and percentage profit sharing) and non-monetary (job security, job training,
career advancement opportunities, flexible working hours, and retirement benefits) motivational
incentives have a significant positive correlation with employee job performance in study
organization. Specifically, it was revealed that competitive salary (R= 0.809) is the leading
monetary motivational factor as job security (R=0.835) tops the ranking for non-monetary
motivational factors. It was recommended that study organization will have to employ a mix of
both monetary and non-monetary incentives in driving higher performance. Findings in this
study also showed that female employees are more motivated by non-monetary incentives (58%)
while male employees are more motivated by monetary incentives (61%). The study, therefore,
recommends that management should be more strategic in implementing its yearly financial
reward contest and public recognition as this will induce the employees to engage in work
behavior that drives higher-level performance.
Boamah Richard(2014) studied the “the effect of motivation on employees’ performance”. The
study reveals that employees believes that nature of work and promotion in the organization
highly influences their level of performance This implies that the management must ensure that
promotions in the organization are done fairly to encourage employees who have consistently
performed. A further finding reveals that opportunity for advancement and sense of
responsibility has effect on performance. Appreciated for work done, salary, working conditions,
how well superiors relate with subordinates and relationships with peers has greater effects on
employees’ performance.
Lawler (1968) stated that certain elements affect worker’s productivity levels in relation to their
jobs. First, productivity is dependent on the amount of monetary or non-monetary benefits they
actually receive as opposed to the amount they feel they deserve. Also, evaluating what other
workers receive in comparison to their own affects their individual performances, while the
worker’s contentment with both 46 intrinsic and extrinsic rewards acquired has an effect on
overall work performance and productivity levels. Furthermore, workers vary largely in the
rewards they crave and the degree of value they attribute to each reward. Finally, it is observed
that extrinsic rewards tend to please workers more than intrinsic because they lead to the

22
achievement of other rewards. As such, these observations propose the necessity for a diverse
reward system.
Mc, Ssekakubo, Lwanga, &Ndiwalana (2014) This study investigates the impact of motivation
on organizational performance in the public security sector in Nairobi County, Kenya. The unit
of analysis was the regular police. The study used a mixed research design of exploratory,
descriptive and quantitative designs with the list of regular police officers serving as the
sampling frame. The questionnaire was used to gather relevant information from the respondents.
Data collected was analyzed using both the descriptive and inferential statistics. The study
established that there is a strong influence on performance of the regular police officers
attributable to units of change in motivation. The study recommended that government and other
concerned stakeholders should adequately motivate the police for improved performance /
service delivery.
Solomon, Hashim, Mehdi, & Ajagbe (2012) studied “the relationship between effects of
employee’s motivation on organizational performance”. The investigation, which was published
in a journal article, seeks to look into the effectiveness of employee motivation for enhanced
organizational performance in multinational companies in Nigeria, especially the manufacturing
sector. A survey of personnel of Cadbury Nig Plc was undertaken. A total of 100 self-
administered questionnaires were distributed while 87 of them were returned. The data collated
and analyzed using simple Percentages and Pearson’s Product Moment Correlation. The findings
show provision of adequate motivation by Cadbury Nigeria Plc and improvement in employee
productivity and, a positive correlation between employee productivity .Senior managers are
however advised to adapt continuous improvement in motivational programs as a core ingredient
for enhanced employee productivity.
Curtis, Upchurch, & Severt, (2015) This study was conducted to explore motivational and
organizational performance factors of tipped and no tipped restaurant employees when
differentiated by gender. The data collected from employees of a nationally known, branded
restaurant chain was analyzed using the ANOVA procedure in an effort to determine if
significant differences existed between the tipped and no tipped employees Relative to their level
of motivation and organizational commitment. The results show that limited differences does
exist for certain motivational factors and organizational commitment factors when employees
were differentiated by tipped versus no tipped employee status and by gender. The study

23
concludes by offering management implications and suggestions for future research relative to
implementing operational systems, policies, and procedures that attend to restaurant employee
classification difference as well as gender preference.
Olumuyiwa, Adelaja, &Oluwatosin (2012) This study takes a look at motivation, an engine for
organizational performance, a case study of Lagos State University, External System. the study
make use of primary data and questionnaire were distributed to one hundred and fifty resource
person (lecturers) in Lagos State University, external system and Spearman’s rank Correlation
coefficient was adopted as the estimation techniques. The study reveals that motivation plays a
lot of role in affecting individual lecturers’ performance in Lagos State University, external
system and at the same time Job satisfaction has not enhances productivity among the lecturer’s
in Lagos State University, External system, and that many resource person (lecturers) in LASU
external system are not happy with the system and the way it is been coordinated, according to
them, bad leadership.
Suthara, Chakravarthi, &Pradhanc (2014) This research identifies factors that shape the
employees` motivation, job Satisfaction and organizational performance. Bharat Sanchar Nigam
Limited faces the problem on managing its human power and not occupying delightful
Performance from the last three consequent years. This paper aims to examine the relationship
between organizational Performance and employee job analysis in context to Bharat Sanchar
Nigam Limited, Vadodara Telecom District, and Gujarat. The survey questionnaire was
administered to employees of Bharat Sanchar Nigam Limited, Vadodara Telecom District
through email and in person by (417 out of 1361) by employing sample size determinants like:
confidence level, Confidence interval and population. The questionnaire consists of factors like;
organizational performance, job design, job Description, organizational policies and practices,
job specification and job evaluation. All the 417 respondents are considered as valid respondents
for further investigation. The study is quantitative research approach and the collected data are
analyzed by scale reliability for questionnaire scaling validity, descriptive statistics,
measurement of items, correlation, and regression analysis and other applicable tests with a view
to know that at what level job analysis is related with organizational performance. The collected
data reveals that organizational performance and job analysis are positively related with each
other. This study shows that employee job analysis can be a powerful tool to enhance

24
Organizational performance. Further research can be held with more samples by extending the
area of research.
Afful-Broni (2012) This research was carried out to examine the relationship between motivation
and organizational job performance of staff at the University of Mines and Technology, Tarkwa
and the leadership lessons to be derived. A sample of 200 respondents comprising 40 senior
members, 60 senior staff and 100 junior staff was employed using the purposive and simple
random sampling methods. Low monthly salaries and the general lack of motivation were the
major factors that reduce morale for high performance at the University. Recommendations
included the need to encourage the University Council and other stakeholders to support
management in developing income generating programs internally to help provide adequate
incentives and allowances for the staff of the University.

25
 CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter outlines processes followed to give solution to the research problem in the study. It
consists of the research design, research population, sample size and sampling techniques,
method of data collection and method of data analysis.
3.1 Research Design
Descriptive research design as well as casual design was used. Descriptive research design was
used to describe some phenomena because it aids a researcher in gathering, summarizing,
presenting and interpreting information for the purpose of clarification (Mugenda & Mugenda,
2003).
3.2 Research Population
Research population is the aggregate of all cases that conform to some designated set of
specifications. The study population was 50 staff of the Polaris Bank Nigeria Plc, Old garage,
Ado-Ekiti. The research instrument would be surveyed on the workforce of the organization
considering the fact that they all fall under the category of employees within an organization.
3.3 Sample and Sampling Technique
The sample size was determined using the Taro Yamani’s method of sampling which allows for
5% error margin.
Taro Yamani’s formula:
n= N
1 + N(e)2
Where n = desired sample size
N = population of the study
e = precision of sampling error (0.05)
Thus:
n= 50 = 50 = 50
1 + 50(0.05)2 1 + 0.125 1.125

n =44.
Hence, the sample size is given as 44.

26
The sample was selected using a simple random sampling technique.
3.4 Method of Data Collection
Primary source of data was used for gathering data in this research work. Data was collected
using questionnaire. The questions were structured in such a way to ensure definite, concrete,
and precise responses. It consists of list of questions relating to the field of enquiry and providing
space for answers to be filled by the respondents.
3.5 Method of Data Presentation and Analysis
The data obtained was analyzed using descriptive statistics such as percentage and frequency
counts. More so, 5 point likert scale method was used to describe and interpret the data collected
from the field as well as Chi-square (x2) was used to test the hypothesis. Chi-square is a
statistical tool used in testing hypothesis when the data are in normal or ordinal form. The
formula for calculating chi-square(x2) used in testing the hypothesis of the study is given as:
X2 = ∑(f0 –fe)2
fe
where;
x2 = chi-square
∑ = summation of value
F0 = observed frequency
Fe = expected value

Decision rule: If chi-square (x2) is greater than the table value at the appropriate level of
significance and degree of freedom, the null hypothesis will be rejected and alternate hypothesis
accepted. But where it is lesser than the table value of chi-square, the null hypothesis is accepted
and alternate hypothesis rejected.

27
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 INTRODUCTION
There is need to analyze data collected from the respondents through questionnaire for clarity,
simplicity and better comprehension. Tables were used to clearly show the responses obtained in
each questions of the questionnaire and chi-square was used in testing the research hypothesis.
A total number of 44 questionnaires were administered to members of staff of Polaris Bank Plc,
Old-garage, Ado-Ekiti, Ekiti state in which 35 of them were recovered.
4.2 PRESENTATION ANDANALYSIS OF DATA
Table 1: Research question 1: what effect does pay to employee has on organizational
performance?
S/ ITEM SA A U D SD TOTAL
N (%) (%) (%) (%) (%) (%)
1. Commission received for 32 2 1 - - 35
meeting up with targets brings (91.4%) (5.7%) (2.9%) (0%) (0%) (100%)
positive impact to
organizational performance
2. Prompt payment of salaries 13 22 - - - 35
has impact on the overall (37.1%) (62.9% (0%) (0%) (0%) (100%)
organizational performance )

3. Extra pay (overtime) for extra 25 8 2 - - 35

28
 hours spent on duty boost your (71.4%) (22.9% (5.7%) (0%) (0%) (100%)
performance )
4. Taking leave and receiving 12 20 3 - - 35
appropriate allowances for it (34.3%) (57.1% (8.6%) (0%) (0%) (100%)
has greatly helped in )
increasing organizational
performance
5. Pay decisions are linked to 15 14 3 2 1 35
performance achievement (42.8%) (40%) (8.6%) (5.7%) (2.3%) (100%)

Source: Field Survey, 2022

In the table above, item 1 reveals that 32 of the respondents representing 91.4% strongly agreed
that commission received for meeting up with targets brings positive impact to organizational
performance, 2 of them representing 5.7% agreed to the term, 1 of them representing 2.9%
remains undecided while none of them disagreed as well as strongly disagreed to the term.
In item 2, 13 of the respondents representing 37.1% strongly agreed that prompt payment of
salaries has impact on the overall organizational performance, 22 of them representing 62.9%
agreed to the term while none disagreed, undecide or strongly disagreed with the term.
In item 3, 25 of the respondents representing 71.4% strongly agreed that extra pay for extra hours
spent on duty boost your performance, 8 of them representing 22.9% agreed to the term, 2 of
them representing 5.7% remains undecided while none of them disagreed or strongly agreed to
the term.
In item 4, 12 of the respondents representing 34.3% strongly agreed that taking leave and
receiving appropriate allowances for it has greatly helped in increasing organizational
performance, 20 of them representing 57.1% agreed to the term, 3 of them representing 8.6%
while none of them disagreed nor strongly disagreed to the term.
In item 5, 15 of the respondents representing 42.8% strongly agreed that pay decisions are linked
to performance achievements, 14 of them representing 40% agreed to the term, 3 of them
representing 8.6% remains undecided, 2 of them representing 5.7% disagreed to the term, while
1 of them representing 2.3% strongly disagreed to the term.

29
Table 2: Research question 2: What influence does promotion of employees have on
organizational performance?
S/ ITEM SA A U D SD TOTAL
N (%) (%) (%) (%) (%) (%)
1. Regular promotion with 20 15 - - - 35
financial backing has (57.1% (42.9%) (0%) (0%) (%) (100%)
improved organizational )
performance
2. Introduction of national 10 15 6 2 2 35
health scheme upon (28.6% (42.9%) (17.1%) (5.7% (5.7%) (100%)
promotion has largely ) )
improved organizational
performance
3. Promotion boosts your 25 7 2 - - 35
morale on the job (71.4% (20%) (5.7%) (0%) (0%) (100%)
)

4. Increase in allowance 19 21 2 2 - 35
structure which is (54.3% (60%) (5.7%) (5.7% (0%) (100%)
accompanied by virtue of ) )
promotion brings positive
impact to organizational
performance
5. Numerous benefits that 15 13 4 3 - 35
come with promotion has (42.9% (37.1%) (11.4%) (8.6% (0%) (100%)
significant impact on the ) )
performance of the
organization
Source: Field survey, 2022
In the table above, item 1 reveals that 20 of the respondents representing 57.1% strongly agreed
that regular promotion with financial backing has improved organizational performance, 15 of

30
them representing 42.9% agreed to the term, while none of them disagreed, undecided or
strongly disagreed to the term.
In item 2, 10 of the respondents representing 28.6% strongly agreed that introduction of national
health scheme upon promotion has largely improved organizational performance, 15 of them
representing 42.9% agreed to the term, 6 of them representing 17.1% remains undecided, 2 of
them representing 5.7% disagreed to the term, and 2 of them representing 5.7% strongly
disagreed to the term.
In item 3, 25 of the respondents representing 71.4% strongly agreed that promotion boosts your
morale on the job, 7 of them representing 20% agreed to the term, 2 of them representing 5.7%
remains undecided while none of them disagreed or strongly disagreed with the term.
In item 4, 19 of the respondents representing 43.2% strongly agreed that increase in allowance
structure which is accompanied by virtue of promotion brings positive impact to organizational
performance, 21 of them representing 47.7% agreed to the term, 2 of them representing 4.5%
remains undecided, 2 of them representing 4.5% disagreed with the term while none strongly
disagreed with the term.
In item 5, 15 of the respondents representing 42.9% strongly agreed that numerous benefits that
come with promotion has significant impact on the performance of the organization, 13 of them
representing 37.1% agreed to the term, 4 of them representing 11.4% remains undecided, 3 of
them representing 8.6% disagreed with the term while none strongly disagreed with the term.

Table 3: Research question 3: Hoe does praise of employees affect organizational

performance?

S/ ITEM SA A U D SD TOTA
N (%) (%) (%) (%) (%) L
(%)
1. Praise for work-done has 20 8 7 - - 35
significant impact on (57.1% (22.9% (20%) (0%) (0%) (100%)
organizational ) )
performance
2. Special recognition in 19 16 - - - 35

31
 terms of commendation (54.3% (45.7% (0%) (0%) (0%) (100%)
packages for hard work ) )
improves organizational
performance
3. Creating wall of fame in 16 15 3 1 - 35
appreciation for (45.7% (42.9% (8.6%) (2.9%) (0%) (100%)
achievements improves ) )
organizational
performance
4. Using phrases such as 12 18 4 - 1 35
“thank you”, “good job”, (34.3% (51.4% (11.4% (0%) (2.9%) (100%)
“well-done”, etc ) ) )
contributes more to
organizationalperformanc
e
5. Praise reduce employees’ 9 7 1 5 13 35
turnover rate (25.7% (20%) (2.9%) (14.3% (37.1% (100%)
) ) )
Source: Field survey, 2022

From the table above, item 1 reveals that 20 of the respondents representing 57.1% strongly
agreed that praise for work-done has significant impact on organizational performance, 8 of them
representing 22.9% agreed to the term, 7 of them representing 20% remains undecided, none of
them disagreed or strongly disagreed with the term.
In item 2, 19 of the respondents representing 54.3% strongly agreed that special recognition in
terms of commendation packages for hard-work improves organizational performance, 16 of
them representing 45.7% agreed to the term, while none of them disagreed, undecided or
strongly disagreed with the term.
In item 3, 16 of the respondents representing 45.7% strongly agreed that creating wall of fame in
appreciation for achievements improves organizational performance, 15 of them representing

32
42.9% agreed to the term, 3 of them representing 8.6% remains undecided, 1 of them
representing 2.9% disagreed to the term, while none of them strongly disagreed with the term.
In item 4, 12 of the respondents representing 34.3% strongly agreed that using appreciative
phrases contributes more to organizational performance, 18 of them representing 51.4% agreed
to the term, 4 of them representing 11.4% remains undecided, none of them disagreed with the
term, while 1 of them representing 2.9% strongly agreed with the term.
In item 5, 9 of the respondents representing 25.7% strongly agreed that praise reduce employees’
turnover rate, 7 of them representing 20% agreed to the term, 1 of them representing 2.9%
remains undecided, 5 of them representing 14.3% disagreed with the term, while 13 of them
representing 37.1% strongly disagreed with the term.

4.3 HYPOTHESIS TESTING

The researcher made use of chi-square analytical tools in testing the three research hypothesis.
HO1: Pay of employees does not have an effect on organizational performance.
Table 4.3.1 Chi-square Table on pay of employees on Polaris Bank, Old-garage, Ado-Ekiti.

Respondent O! E! O! - E! (O! – E!)2 (O! – E!)2

views E!
Strongly 15 7 8 64 9.14
agree
Agree 14 7 7 49 7
Undecided 3 7 -4 16 2.29
Disagree 2 7 -5 25 3.57
Strongly 1 7 -6 36 5.14
disagree
TOTAL 35 35 0 190 27.14

Therefore, X2 (chi-square) value calculated is 27.14

The degree of freedom (k-1), 5-1= 4
Using the statistical table to find the value Z24: 0.05, the result is 9.488
Therefore, X2 calculated = 27.14 while X2 tabulated = 9.488

33
Decision rule: X2 calculated is greater than X2 tabulated (27.14 > 9.488) at 5% confidence level
and 4 as degree of freedom. That is, the null hypothesis is rejected and the alternative hypothesis
is accepted. Therefore, it is concluded that ‘Pay of employees has an effect on organizational
performance.

Ho2: Promotion of employee does not have an impact on organizational performance.

Table 4.3.2 chi-square table on promotion of employee of Polaris Bank Plc
Respondent O! E! O! – E! (O! – E!)2 (O! – E!)2
views E!
Strongly 10 7 3 9 1.29
agree
Agree 15 7 8 64 9.14
Undecided 6 7 -1 1 1.64
Disagree 2 7 -5 25 3.57
Strongly 2 7 -5 25 3.57
disagree
TOTAL 35 35 0 124 19.21

Therefore, X2 (chi-square) value calculated is 19.21

The degree of freedom (k-1), 5-1= 4
Using the statistical table to find the value Z24: 0.05, the result is 9.488
Therefore, X2 calculated = 19.21 while X2 tabulated = 9.488
Decision rule: X2 calculated is greater than X2 tabulated (19.21 > 9.488) at 5% confidence level
and 4 as degree of freedom. That is, the null hypothesis is rejected and the alternative hypothesis
is accepted. Therefore, it is concluded that ‘Promotion of employee has an impact on
organizational performance’.

Ho3: Praise of employees does not affect organizational performance

Table 4.3.3: chi-square table on praise of employees of Polaris bank
Respondent O! E! O! – E! (O! – E!)2 (O! – E!)2
views E!

34
Strongly 9 7 2 4 0.57
agree
Agree 7 7 0 0 0
Undecided 1 7 -6 36 5.14
Disagree 5 7 -2 4 0.57
Strongly 13 7 6 36 5.14
agree
TOTAL 35 35 0 80 11.42

Therefore, X2 (chi-square) value calculated is 11.42

The degree of freedom (k-1), 5-1= 4
Using the statistical table to find the value Z24: 0.05, the result is 9.488
Therefore, X2 calculated = 11.42 while X2 tabulated = 9.488
Decision rule: X2 calculated is greater than X2 tabulated (11.42 > 9.488) at 5% confidence level
and 4 as degree of freedom. That is, the null hypothesis is accepted and the alternative hypothesis
is rejected. Therefore, it is concluded that ‘Promotion of employee has an impact on
organizational performance’
4.4 DISCUSSION OF FINDINGS
The findings from the study were based on the objectives of the study and research questions.
From the field survey, the following decisions were arrived at from the tested hypothesis:
i. It was observed that majority of the respondents strongly agreed that pay given to
employees has significant impact on organizational performance. It was discovered
that pay decisions of an organization are linked to achievements of performance. As,
pay in this research work represents all forms monetary compensation given to
employees. The staff of Polaris Bank, Old-garage, Ado-Ekiti in general is purely
motivated by their pay because it is seen as the strongest element of motivation for
which employees work in organization.
ii. The study revealed that promotion of employees has a positive relationship with
organizational performance. It was discovered that promotion in any form boosts the
morale of employees because of the numerous benefits associated with it. Hence, it

35
 has a significant effect on the performance level of an organization in that it triggers
employees to work more towards achieving the objectives of the organization.
iii. Also, the findings from the study revealed that the respondents really appreciate the
actions of their employers in praising them for the work they do, as it boosts their
morale while working on the job. Hence, praise is also a significant factor required in
achieving performance in organizations.

CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
This chapter summarizes the findings of the research work done and highlights conclusions
arrived at. Recommendations were also made on the impact of the motivation of employees on
organizational performance in Polaris Bank plc Ado-Ekiti, Ekiti state.
5.1 SUMMARY OF THE STUDY
This study generally examines the impact of the motivation of employees on organizational
performance in Polaris Bank, Old-garage, Ado Ekiti, Ekiti state.
In chapter one, The need for employee motivation and issues associated with the motivation of
employees in organization was discussed in the introductory part, as well as the specific
objectives of the study were highlighted. The study examines the effect and impact of pay,
promotion and praise of employees respectively on organizational performance.
Chapter two focused on the literature review of the study where the conceptual, theoretical and
the empirical review of motivation were highlighted.
In chapter three, The research design used were the descriptive and survey research design. The
study population was 50 in which the sample selected for the study was 44 based on Taro
Yamani’s sapling model. The primary source of data (questionnaire) and secondary source of
data were utilized for the study. Questionnaires were administered to the members of staff of
Polaris Bank plc, Ado-Ekiti, Ekiti state. 44 questionnaires were administered in which 35 were
recovered Secondary data were obtained from journals and internet. Data collected were
analyzed using descriptive statistics through averages, percentages while hypothesis was tested
using chi-square test.

36
In chapter four, the information gotten from the respondents through the questionnaires were
analyzed respectively. The analysis revealed that:
1. There exists a positive relationship between pay of employees and organizational
performance. That is to say, pay given to employees has a significant impact on the
productivity of employees which then wholly translates into the performance of an
organization.
2. There exists a positive relationship between promotion of employees and organizational
performance. That is to say, effective promotion of employees brings about improved
organizational performance.
3. There exists a positive relationship between praise of employees and organizational
performance. That is to say, praising an employee has a contributory significance on the
performance of an organization.
Chapter five gives the summary, conclusion and recommendation of the research work.

5.2 CONCLUSION
This research work has extended earlier reviews in terms of both theoretical perspectives and the
scope of empirical evidence.
From this study, it can be easily inferred that employees’ motivation matters a lot in an attempt
to achieve an improved organizational performance. Therefore, it should be the concern of both
the employers and employees. The results obtained from the analysis of results showed that
employees place great value on different motivational incentives given to them by their
employers. Hence, as it is generally agreed from previous findings on the concept of employees’
motivation, this study also campaigns that when motivational incentives are adequately put in
place and the needs of employees are studied, the performance level of an organization is
enhanced. This is simply because “a happy worker they say, is a productive worker” and hence,
productivity of an employee translates into the performance level of an organization. Aluko
(2014) stated that an organization is only as good as the workforce that runs the organization.
This is to say that when employees are motivated chances are that their morale would be high as
such performance and productivity levels would increase thereby to a large extent boosting
overall organizational performance level. In order to achieve high levels of productivity as such
boost organizational performance or productivity, managers therefore need to continually seek

37
ways of ensuring that their employees stay motivated. This is because a lack of employee
motivation leads to reduced productivity which is harmful to organizational performance and
continuous success.
In addition, in modern industrial settings of today, different organizations have been capable to
source for employees across countries. In an attempt of organizations to achieve competitive
advantage in their employed workforce, it is imperative for employers and managers to
understand and recognize those factors that affect employees’ performance in the workplace and
ensure that those needs are fulfilled accordingly. As earlier agreed, motivated employees are the
ones that raise the performance level of an organization.
For example, some employees may prefer adequate pay, while some prefers regular promotion or
it may be that some cherish the rate at which they are praised for the work they do or activities
they carry out and so on.
Based on the feedback from the respondents, it was therefore concluded in this research work
that praise of employees has an impact on organizational performance, pay of employees has a
great significance on the performance of an organization and lastly, promotion of employees has
an influence on organizational performance.
5.3 RECOMMENDATION
The following recommendations are made based on the findings of the study;
1. Managers must ensure employees are adequately motivated. Employee well-being should
be given due consideration and well-being programs should be organized to cater for the
needs and welfare of employees.
2. Managers should from time to time praise their employees undermining the fact that they
receive remuneration for the work they do. Praising employees make them respond
positively. In this case, employees strive to perform to their maximum for the good of the
organization. Praise is also important in the long-term relationships between the
employees and managers. The managers who praise and celebrate employees’ success at
work tend to have motivated staff than unappreciative managers.
3. Managers should always consider regular promotion of employees at intervals as it
greatly improves the productive effort of employees.

38
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 APPENDIX I
QUESTIONNAIRE

Department of Business Administration and Management,

School of Business Studies,

The Federal Polytechnic, Ado-Ekiti

Dear Respondent,

QUESTIONNAIRE ON “THE IMPACT OF THE MOTIVATION OF EMPLOYEES’

ON ORGANIZATIONAL PERFPRMANCE”

I am a Higher National Diploma (HND) student of Business Administration and Management in

The Federal Polytechnic, Ado-Ekiti. This questionnaire is part of my research project as a
requirement for the award of an HND degree in Business Administration and Management. I
would indeed be very grateful if I can be assisted kindly in the completion of the research
questions. The information provided in the questionnaire, which I therefore solicit for your
sincerity and honesty in responding to the questions, will be strictly used for academic purposes
and will be treated with utmost confidentiality.

Thanks for your anticipated cooperation.

Yours Faithfully,

Abolade Abdulwahab Abiodun.

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 APPENDIX II
SECTION B: EMPLOYEE MOTIVATION

INSTRUCTION: Please tick or mark in the appropriate column that correspond with the
view using the following scale.

SA= Strongly Agree, A= Agree, U= Undecided, D= Disagree, SD= Strongly Disagree

Research Question 1: What effect does pay to employees has on organizational

performance?
S/N SA A U D SD
1. Commission received for meeting up with targets
brings positive impact to organizational performance
2. Prompt payment of salaries has impact on the overall
organizational performance
3. Extra pay (overtime) for extra hours spent on duty
boosts your performance
4. Taking leave and receiving appropriate allowances for
it has greatly helped in increasing organization
performance
5. Pay decisions are linked to performance achievements

Research Question 2: What influence does promotion of employees have on

organizational performance?

S/N ITEM SA A U D SD

1. Regular promotion with financial backing has improved

organizational performance
2. Introduction of National Health Insurance Scheme upon
promotion has largely improved organization performance

46
3. Promotion boosts your morale on the job

4. Increase in allowance structure which is accompanied by

virtue of promotion brings positive impact to
organizational performance.
5. Numerous benefits that comes with promotion has
significant impact on the performance of the organization

Research question 3: How does praise of employees affect organizational performance?

S/N ITEM SA A U D SD

1. Praise for work-done has significant impact on

organizational performance
2. Special recognition in terms of commendation packages for
hard-work improves organizational performance
3. Creating “wall of fame” in appreciation for achievements
improves organizational performance
4. Using phrases such as ‘Thank you’, ‘Good job’, ‘Well-
done’, etc contributes more to organizational performance
5. Praise reduces employees’ turnover rate

47