CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Motivation is a key factor in the organization’s achievement. In order to obtain better performance, motivation must be accorded appropriate priority level and employed properly as a vital ingredient for organizational progress and survival especially in this competitive era. Motivated employees help an organization to survive in the rapidly changing markets.  It is therefore, important that managers and organizational leaders learn, understand and deal effectively with motivation. This is because motivated employees tend to be committed, creative and loyal in such a way that they become part and parcel to the organization.

In the dynamic environment of manufacturing companies in Buea, employee motivation stands as a critical factor influencing organizational performance and success. The manufacturing sector in Buea contributes significantly to the region’s economy and employs a diverse workforce. Understanding the factors that drive employee motivation within these manufacturing companies is pivotal for enhancing productivity, employee engagement, and fostering a positive work culture.

Kreisman (2002) argues that the most valuable and volatile asset of any institution is a well-motivated and stable workforce which is competent, dedicated and productive. Amabile (1993) on other hand, argues that de-motivated employees are likely to put little effort in their jobs, avoid the workplaces as much as possible, exit the organization and produce low quality of work.

Other researchers like, Bonsu & Kusi (2014), Kiruja & Mukuru (2013) and Salleh, Dzulkifli, Abdullah & Yaakob (2011), conducted studies on effects of motivation on employees’ performance, and found that lack of employee’s motivation brings high absenteeism and high cost to the employer. These studies are in agreement that unmotivated employees underperform at work places.

Ahmad & Shahzad (2011) did a study to investigate the impact of three HR practices on the perceived performance of the university teachers. Their findings was that the compensation practices in relation to the employees’ performance were significantly positively correlated; whereby the performance evaluation and promotion practices have insignificant relationship with the performance of university teachers in AJK Pakistan.

Bonsu & Kusi (2014) for example, argues that employees prefer higher salaries as the main incentive for higher job performance. They also found that the employees are de-motivated by poor working conditions in the organization.

Kiruja & Mukuru (2013) using a sample of 315 employees in public middle level technical training institutions in Kenya reported a statistically significant positive correlation between employee motivation and their performance. Salleh et al (2011) using the sample of 150 employees in state government in Malaysia. Reports a significant positive relationship between motivation levels (achievement motivation, power motivation, affiliation motivation and salary progression) and job performance.

While the empirical literature seen to be biased towards the Western environment Cerasoli; Nickelin & Ford (2014) and Eastern environment, Inayatullah and Jehangir (2012), Saleh, Dzulkifli and Yaakob (2011), Azar & Shafighi (2013), research evidence is now emerging in Africa, for example, Kiruja and Mukuru (2013) in Kenya’s public  level middle technical institution and Bonsu & Kusi (2014) in Ghana. In Tanzania little is known about the relationship between motivation and employee performance.  Few studies have looked at motivation in Tanzania for example Manongi, Marcharoot & Byagbjerg (2006) among primary health care workers and Prytherch, Kakoko, Leshabari, Sallerborn and Marx (2012) among maternal and new-born health care providers.

This research aims to delve into the specific nuances of employee motivation in manufacturing companies in Buea, shedding light on the factors that influence motivation levels, the impact of motivation on individual and organizational performance, and the implications for shaping effective motivational strategies tailored to the manufacturing sector in the region. By unraveling the intricacies of employee motivation within this unique industrial setting, this study aspires to contribute valuable insights to the field of organizational behavior and human resource management in the context of Buea’s manufacturing landscape.

1.2 Statement of the Problem

The need to investigate employee motivation and its outcomes in manufacturing companies of Buea was inevitable. Employee motivation plays a pivotal role in driving performance, productivity, and overall organizational success. However, despite the recognized importance of employee motivation, challenges and gaps persist in understanding and effectively fostering motivation among employees in this specific industrial context. Manufacturing companies in Buea may lack tailored motivational strategies that address the unique needs and motivations of their diverse workforce. Generic motivational approaches may not effectively engage employees in the manufacturing sector, leading to potential decreases in productivity and job satisfaction.

The impact of employee motivation on organizational performance in manufacturing companies in Buea may not be fully understood. Unaddressed issues related to employee motivation could hinder productivity, teamwork, and overall business outcomes, potentially impeding the growth and competitiveness of these companies in the region.

Challenges related to maintaining high levels of employee motivation may contribute to issues of employee retention and engagement in manufacturing companies in Buea. A

Lack of effective motivational strategies could lead to employee dissatisfaction, turnover, and ultimately, a negative impact on organizational stability and growth.

Addressing these challenges is crucial for the long-term success and sustainability of manufacturing companies in Buea. By understanding and enhancing employee motivation, organizations can cultivate a motivated workforce, improve operational efficiency, foster a positive work environment, and ultimately drive competitive advantage in the dynamic manufacturing industry of Buea. This research aims to tackle these challenges and provide actionable insights for optimizing employee motivation and enhancing organizational outcomes in manufacturing companies in Buea.

1.3 Research Questions.

• Main Research Question.

To what extent do financial and non financial incentives affect employee productivity?

• Specific Research Questions.

1. How does financial allowance affect employee productivity?
2. How do bonuses affect employee productivity?

• How does promotion affect employee productivity?

 1.4 Objectives of the study

• Main objectives

To examine the effect of financial and non financial incentives on employee productivity

• Specific objectives

• To examine the effect of financial allowance on employee productivity.
• To analyze the effect of promotion on work quality
• To analyze the effect of bonuses on employee effectiveness