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Mumin Omar Ahmed This dissertation is my original work and has not been presented for a Degree or any other academic award in any University or Institution of Learning other than New Generation University College School of Post Graduate Studies for academic credit".
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A Thesis Presented to the School of Post Graduate Studies New Generation University College Hargeisa, Somaliland
By:
Mumin Omar Ahmed
In Partial Fulfillment of the Requirements for the Master’s Degree
In Human Resource Management & Leadership
September, 2017
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" This dissertation is my original work and has not been presented for a Degree or any other academic award in any University or Institution of Learning other than New Generation University College School of Post Graduate Studies for academic credit".
Mumin Omar Ahmed Name and Signature of Candidate
September, 2017 Date
III
This research thesis is dedicated to everyone who taught me the values of life, and my only and the best teacher in my life my late Father Sheikh Omar Ahmed
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The support, guidance and encouragement of the following individuals are gratefully
acknowledged, because without their support this dissertation would not have been successfully
completed. Special thanks go to my supervisor Prof. Chemachu Ararsa and my fellow students for
sharing their knowledge and giving professional support and guidance. I would like also convey
my appreciation the management and staff of NGUC Specially the President Mr. Abdiwasac and
all my coworkers in NGUC, and the ministry of national development and planning for giving me
the opportunity to conduct this study at their organization.
All my family and friends for their support and prayers, especially My Wife Mumtaz Mohamed
Mohamoud, for her constant encouragement, assistance and support without forgetting lovely
parents, my late father Sheikh Omar Ahmed Furre and My Mother Nimco Sheikh Mumin Ibrahim
who laid the foundation for me to reach this stage in my academic career.
To Allah Almighty for blessing me with the wisdom, strength, courage and determination to reach
for the goals I wish to achieve.
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Introduction
This chapter presents, Back ground of study, statement of the problems, research objectives, research questions, significance of study, Research of scope, description of the study and Organizational Profile.
1.1 Background of the study
The role of motivation on employees work performance in public organization has been developed throughout the world during the era of human resource management as a tool which proposed to promote the organization’s efficiency and performance. Motivation plays a key role in employees’ job performance in any organization (Calder, 2006). The employee’s motivation has been a long concept in human resource management and has drawn more attentions as a central research topic for scholars and practitioners (Calder, 2006). As a result, a lot of theories and approaches have developed in order to explain the nature of employees’ motivation in the private and the public sector. However, most of the previous studies on the role of motivation on employees’ job performance descend little of practical application or offer it only for the private sector. The problem is that with the effects of the latest financial crisis and mismanagement in public sector governments need today, more than ever before, practical ways that can help motivate public employees to be productive and get “more for less” (Robbins, et al., 2007).
In this era of globalization and competition, employee motivation and performance are considered to be the key factors for organizations success (Sakovska, 2012). The employees of an organization are vital for the organizational performance (Bennet, 2002). This is also emphasized by (Harvey and Brown, 2006) who argues that people are the foundation of every organization. Also, it is commonly said that people working for an organization, are the most valuable, the most costly, and the most volatile of all the resources that it can use to enhance the organizational performance. Organizations need motivated people to get things done (Bennet, 2002; Khan, Farooq and Ullah, 2010).
Human Resource Managers most often fulfill their organizational goals through the work of employees. Therefore, managers need to have highly efficient and productive staff members. Although many factors contribute to productivity, job performance is viewed to be the most
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influential one. Job performance itself is a function of four variables: ability, understanding of the task, environment, and motivation (Mitchell, 2000). The human resources and their management staffs are the source of competitive advantage for the business, rather than access to capital or use of technology. It is therefore logical to suggest that, attention needs to be paid to the nature of this resource and how the management assures staff performance through motivation schemes because motivation affects human resource behavior and performance and consequently the performance of the organization.
While most organizations see a clear need to improve employees’ performance, many have yet to motive their employees to achieve this goal. However, a number of companies are gaining competitive advantage through establishing effective motivation practices on overall business performance (Sakovska, 2012). In most organizations, the current leaders are aware that there is much to be done to ensure that they have a focused and highly competitive workforce (Pratheepkanth, 2011). Encouraging the employees to perform highly requires considerable effort and top management focus to a large degree in motivating the employees to give their best (Pınar Gungor, 2011). In order for the organization to compete effectively, managers need to motivate the employees to give their best as part of the valuable resource unavailable in the company (Sakovska, 2012). The motivation of the employees is the best tool in the company’s efforts to gain competitive advantages and stay competitive.
However, (Torrington, et al. 2009) warn that there is no one reward system either intrinsic and extrinsic reward system that can achieve all the above mentioned features for all employees to perform well in an organization at the same time since human being do not perceive things in a uniform manner. (Torrington et al. 2009) recommend that managers are required to weigh up the advantages and disadvantages of each reward system and decide where to put the emphasis on employee performance. On the other hand, the incentive system which includes extrinsic and intrinsic reward system describes an incentive strategy that brings components such as learning and development together with aspects of the work environment into the benefits package (Khan, Farooq and Ullah, 2010). Hence, for organizations faced with many fluctuations and pressures in today's world in order to meet their goals. They have to take employees’ motivation and performance into their development processes and with understanding that effective changes that
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This study was focused on Somaliland public sector organizations and particularly the Ministry of national planning and development the vision of the ministry is to have vital strategic role of leading, facilitating and coordinating national vision and development The issue now that the ministry is facing is motivating the employees for enhanced performance by offering better services to meet the customers’ expectations.
1.2 Problem Statement
This study was required due to the need of human resources management in public Organizations, as the organizations have to be managed effectively and efficiently. The rapid increase of the number of public organizations, degree of competition and the required increase in employee’s turnover and costs of employee’s replacement have forced public organizations to aggressively compete for employees. These issues and problems demand that public organizations continually assess their internal processes and capabilities if it is to remain competitive. According to Armstrong (2007), human resources management can positively contribute to public organization performance. However in Somaliland there are few studies which investigated about this topic, on other hand to assess the role of motivation on employee’s work performance has been an interested topic for both private and public sectors. Ghafoor (2011) argued that employee’s motivation is the most important practice in any organization. On additional to that Lather and Jain, (2005) proposed that motivated employees are the basis of any organization performance, because they possess an awareness of specific goals that must be achieved in particular ways and they therefore direct their efforts towards achieving such goals.
Many organizations especially public organizations have for a long time been blamed for having poor staff motivation schemes resulting to poor corporate performance and hence failure to reach such organizations’ business objectives. The problem is that motivating public employees is easier said than done. Public workers have a reputation for being lazy and lethargic (Wilson, 1994,& Wright, 2001) and mangers’ room for maneuver is apparently very little, due to rigid civil service laws.
To assess the role of motivation on employees’ work performance in the Ministry of National Planning and Development in Somaliland, the role of motivation should be critically elaborated in this study. However, the assessment of the role of motivation on employees work performance in Somaliland has not cited by many researchers though have attempted to discover the causes of
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employee job satisfactions to human resource management. Therefore, to assess the gap that exist to the role of motivation on employees work performance in public organization is the need of this study.
1.3 General Objectives
The general objective of this study was to assess the role of motivation on employees work performance in Public organization, with reference of the Ministry of National Planning and Development in Somaliland
1.4 Specific Objectives
The following research questions guided this study
1. To determine the methods used to motivate employee in the Ministry Of National Planning and Development Hargeisa, Somaliland 2. To know the extent to which extrinsic motivation affect employees’ performance in the Ministry Of National Planning and Development Hargeisa, Somaliland 3. To examine how intrinsic motivation affect employees’ performance in the Ministry Of National Planning and Development Hargeisa, Somaliland 4. To identify how motivation link with employee work performance
1.5 Research Questions
Based on the research topic, the objectives stated above this research shall be guided by the following vital questions;
1. What are the methods used by employer to motivate employees in the Ministry Of National Planning and Development Hargeisa, Somaliland? 2. To what extent does extrinsic motivation affect employees’ performance in the Ministry Of National Planning and Development Hargeisa, Somaliland? 3. To What extent does intrinsic motivation affect employees’ performance in the Ministry Of National Planning and Development Hargeisa, Somaliland? 4. What is the relationship between motivation and work performance?
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1.7 Significance of the Study
This study will make a number of contributions to different organizations, policy makers, Human Resource Managers, present employees and the future ones. The study will help local top management to understand motivation drives that influence employees perform better in their jobs. Also this study will be very important to bring out the information on the effective, motivations at the ministry of National planning and Development in Somaliland as well as different organizations. Criteria used in Motivating Staff, Importance of motivations in relation to the performances will be well analyzed
Furthermore, the study will help the organization to restructure the motivations criteria, and flourish the motivations environments and be able to consider important factors in motivating employees. Also this study will help the managers/administrators to understand the needs of their employees and, hence maximize employee effectiveness and efficiency in order for the institutions/companies to gain a competitive advantage.
Also, the study hopes to provide a concrete context for discussion about what can be done to ensure regeneration of employee’s capability in delivering public services. The study will also help the researcher for practical fulfillment for Master’s degree and wide the knowledge of motivation matters to employees in working areas hence increase effectiveness and efficiency.
1.8. Organization Profile
The research was conducted at Ministry of National Planning and Development. Hargeisa national main office was chosen because it is the main office where all information lies on and also one among the public institution that can be accessed easily by the researcher. Also it is because there is allegation that the ministry is not performing better because employees are not motivated.
Vision
Ministry of National Planning and Development has vital strategic role of leading, facilitating and coordinating national vision and development.
Mission
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To take a leading role in the achievement of a rapid sustainable development, in order to improve the quality of life of the people of Somaliland.
Functions
Provide data that is accurate, relevant and timely about the nation's people and economy Prepare and facilitate national and regional development plans Formulate and provide policy guidelines Mobilize domestic and external resources Register local and international non-governmental organizations Coordinate development activities Ensure efficient allocation of resources Focal point of international development partners
1.9 Operational Definitions of Key Terms
In this study Motivation is the psychological processes that cause the arousal, direction, and persistence of voluntary action that is goal oriented
In this study Motives provide direction to human behavior as they are directed towards certain conscious or subconscious goals
In this study Employee performance involves quality and quantity of output, presence at work, accommodative and helpful nature and timeliness of output.
In this study Extrinsic motivation means that the individual's motivational stimuli are coming from outside
In this study intrinsic motivation means that the individual's motivational stimuli are coming from within.
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According to Antonioni (1999), “the amount of effort people are willing to put in their work depends on the degree to which they feel their motivational needs will be satisfied. On the other hand, individuals become de-motivated if they feel something in the organization prevents them from attaining good outcomes. It can be observed from the above definitions that, motivation in general, is more or less basically concern with factors or events that leads and drives certain human action or inaction over a given period of time given the prevailing conditions.
Furthermore, the definitions suggest that there is the need to be an “invisible force “to push people to do something in return. It could also be deduced from the definition that having a motivated workforce or creating an environment in which high levels of motivation is maintained for the challenge for management today. Its challenge may emanate from the simple fact that motivation is not a fixed trait as it could change with changes in personal, psychological, financial or social factors.
For this research, the definition of motivation by Greenberg and Baron (2003) is adopted, as it is more realistic and simple as it considers the individuals and his performance.
Greenberg and Baron defined motivation as “the set of processes that arouse, direct, and maintain human behavior towards attaining goals.
Jones (1955) argues that “motivation is concerned with how behavior gets started, is energized, is sustained, is directed, and is stopped and what kind of subjective reaction is Present in the organization while all this is going on.
2.1.2. Extrinsic Motivation and Employees’ Performance
Extrinsic motivation refers to someone doing something because it leads to a separable outcome (Mullin, 2010). Extrinsic rewards may play an important role in boosting the employee’s performance as Pierce and Gardner (2004) point out that an individual’s self-esteem, formed around work and organizational experiences, plays a significant role in determining employee motivation. There are various components of extrinsic motivational factors and they include: pay, bonus programs, profit sharing and stock options (Mullin, 2010).
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A. Pay
Pay refers to the amount of money provided to workers for the accomplishment of organization goals (Koch, 2008). Kreitner and Kinicki (2007) suggests that the effectiveness of pay as a motivator depends on a number of circumstances, including the value and needs of individuals and their preference for different types of financial or nonfinancial rewards. Armstrong and Murlis (2004) further commented that pay is important to people because it is instrumental in satisfying a number of their most pressing needs. It is significant not only because of what they can buy but also a highly tangible method of recognizing their worth, thus, improving their self-esteem and gaining esteem of others (Khan, Farooq & Ullah, 2010). Armstrong and Murlis (2004) reflecting on intrinsic motivation pointed out that pay in itself has no intrinsic meaning and acquires significant motivating power only when it comes to symbolize intangible goals.
Yin and Yang (2012) found that the employee incentive of pay, distinctively impacted on their performance. Pay was significantly correlated with job performance (Yin and Yang, 2012).
B. Bonus
Programs Bonus programs are usually rewards provided to individuals for their accomplishment in a particular task (Mullin, 2010). The bonus program has been used in different organizations for some time now. Bonuses are frequently used in sales organizations to encourage salespersons to generate additional business or higher profits. They can also be used, however, to recognize group accomplishments. Indeed, increasing numbers of businesses have switched from individual bonus programs to one which rewards contributions to corporate performance at group, departmental, or company-wide levels (Odell, 2005).
According to Yin and Yang (2012), small businesses interested in long-term benefits should probably consider another type of reward. Bonuses are generally short-term motivators. By rewarding an employee's performance for the previous year, they encourage a short-term perspective rather than future-oriented accomplishments. In addition, these programs need to be carefully structured to ensure they are rewarding accomplishments above and beyond an individual or group's basic functions. Otherwise, they run the risk of being perceived of as entitlements or regular merit pay, rather than a reward for outstanding work. Proponents, however, contend that bonuses are a perfectly legitimate means of rewarding outstanding performance, and they argue
