human relation and employee motivation
TRANSCRIPT
AN INVESTIGATION INTO HUMAN RELATION AND EMPLOYEE MOTIVATION:
A CASE STUDY OF BARINGO TEACHERS SACCO.
BY
BERNARD
REG NO.
A Research Proposal Submitted To the UoN in Partial Fulfillment for the Requirement for
Award of Diploma in business Management.
YEAR 2011
DECLARATION
This research proposal is my original work and has not been presented for any of the study
programmes in any College/University.
Name Sign Date
Bernard .......................... ............................
SUPERVISOR
This proposal has been submitted for examination with my approval as the University
Supervisor.
Name Sign Date
……………………………….. …………………… ………………….
DEDICATION
This proposal is dedicated to the Lord God Almighty who gave me physical and mental health to
undertake and accomplish this project. And to my entire family who supported me morally and
financially tirelessly.
May the Lord almighty bless you all.
ACKNOWLEDGEMENT
I wish to acknowledge the Lord God Almighty for the strength, chance, knowledge and wisdom
He has given me all through my studies. Much appreciation goes to my supervisor, who devoted
a lot of time and patience to this study.
God bless you abundantly.
ABSTRACT
The purpose of this study will be to study human relation and employee motivation in Baringo
Teachers Sacco and come up with recommendations on improvement. This research will be
carried out in Elderma Ravine town and its other branches. Some of the objectives of this
research will be; to find out effects of poor pay on employee productivity, to find out factors
responsible for workers unproductiveness, to find out effects of salary increase, reward and other
welfare packages on productivity of workers and to find out factors responsible for job
satisfaction. This study will adopt the descriptive survey design. This research design will be
most appropriate for it will help the researcher to gather information, summarize it, present it and
interpret it for the purpose of Simple random sampling technique will be used to select 25
respondents. The researcher will use structured questionnaires and interview schedules as
research instruments. The data collected will then be analysed using the quantitative technique
then represent by the use of tables, bar graphs, pie charts and pictures. The research findings will
help the top management of equity bank and other banks in Nakuru town in coming up with
possible solutions to the employee problems. This will also assist the other researchers as they
research on the same problem.
ABBREVIATION
HRM - Human Resource Management
HR - Human Resource
TABLE OF CONTENTS
DECLARATION………………...................…………………………… i
DEDICATION………………………....................................…………… ii
ACKNOWLEDGEMENT………………….………………………….… iii
ABSTRACT.............................................................................................. iv
ABBREVIATION……………………...............……………………… v
TABLE OF CONTENTS.......................................................................... vi
CHAPTER ONE
1.0 Introduction……………………………………………………. 1
1.1 Background of the study………………………………………. 1
1.2 Statement of the problem……………………………………… 2
1.3 Purpose of the study…………………………………………… 2
1.4 Objectives of the Study…………………………………………. 2
1.5 Research questions……………………………………………… 3
1.6 Significance of the study………………………………………… 3
1.7 Scope and Limitation of the study…………………………… 4
CHAPTER TWO; LITERATURE REVIEW
2.0 Introduction ………………………………………………………..
2.1 General Over View …………………………………………………
2.2 What Influences Motivation? ………………………………………
2.3 The Context of Human Resource Management (HRM)……………
2.4 Productivity of Workforce ………………………………………….
2.5 Promotions, Transfers, Demotions and Separation…………………
2.6 Salary and Wages (Compensation) Administration…………………
2.7 The Role of Money as a Motivator ………………………………..
2.8 Summary of Related Literature……………………………………..
CHAPTER THREE; RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction ………………………………………………………… 20
3.2 The research design ……………………………………………….. 20
3.3 The study area ……………………………………………………… 20
3.4 Target population ……………………………………………………. 20
3.5 Sample size and technique ………………………………………… 20
3.6 Research instruments and tools ……………………………………….. 21
3.7 Data Analysis………………………………………………………….. 21
Reference………………………………………………………………… 22
CHAPTER ONE
1.0 Introduction
This chapter will highlight the background information, statement of the problem, purpose and
objectives of the study, research questions, limitations and delimitations of the study.
1.1 Background to the study
It is a well known fact that, the primary concern of an organization is its viability and hence its
efficiency. For effective functioning of any organization employees must learn to perform their
jobs at a satisfactory level of proficiency and also the organization must provide opportunities for
the continued development and training of employees not only on their jobs, but as well develop
them for other jobs for which they might later be considered. According to Obikoya (1996)
employee training is a systematic process of altering the behaviour, knowledge and or motivation
of employees in a direction to increase the trainees' effectiveness and organization goal
achievement. Koontz et al. (1983) opined that people are unique- they have different needs,
different ambition, different attitudes, and different desires for responsibility, different levels of
knowledge and skills and different potentials.
However, Obikoya (2003) believed that both private and public sectors in Kenya are guilty of
wrong utilization of available human resources. This is especially in the banking industry where
graduates are employed in the area which they lack expertise. It is in this direction that Bulama
(1999) opined that banks must engage in intensive staff training and research.
Moreover, Agbato (1982) said that objectives of a bank is to maximize the long term return on
the resources it employed, therefore management by objectives approach is suggested to focus
attention on the right priorities and of securing performance standard and appraisal. According to
Stoner et al. (2002) performance appraisal compares individuals job performance to standards
developed for the individual's position. How performance may prompt corrective action like
additional training, a demotion or separation while high performance may merit reward, such as
bonus or promotion.
The business environment is ever dynamic and changes create problem for the managers in terms
of human resources. It is of important for employers in order to get the best of his employees,
should improve very often upon the factors that persistently motivates employees, since they are
bound to be affected by time.
David et al. (1986) said pay systems have always responded to change, so do day pattern and
practices. Employers move through different stages of accepting the fact that their pay systems
are going to change and understanding the process of change makes it easier to accept the
changes. Also Banjoko (1996) sees compensation of employee as the totality of the financial and
other non-financial rewards that an employee receives in return for his or services. It includes his
basic pay and other numerous financial benefits and incentives the totality of which determines
how well he/she lives in the society. Aggarwal (1986) observed that companies have long sought
management reward systems designed to ensure long and short term productivity and corporate
loyalty. He observed further that top talent is easily woven to a competitor by more challenge
and better rewards. Consequently, corporations have devised many ways to appropriately reward
key staff members while hoping to instill a sense of company loyalty. Therefore most companies
tie their mangers' raises and bonuses to the annual profit level. He argued that wages are
established by ostensibly neutral process of supply and demand.
Yesufu (1965) stated that the condition under which work is performed should be such as to
make workers not only economically highly productive and efficient, but happy human beings
and properly developed citizens. He also states that workers have only tended to pay more
attention to what they can derive from themselves in the nature of higher pay packets, sick
benefits, generous leave and good working conditions.
Whyte (1955) while agreeing that there is no doubt that money has an important effect on the
thinking and behaviour of productive workers, explained that monetary incentive become
quickly entangled with a lot of other motives that have little or nothing to do with money, so that
the ultimate effect of money itself is not easily identified. He however, confirmed that one reason
why money with has proved to be handy is the fact that it is partly true.
Shubin (1957) viewed services such as rest room, lunch stand, cooperative purchasing, medical
attention in premises, hospitalization, pension plan, sports designed by an organization for
providing an occupational environment that would enhance physical, mental and emotional
fitness of employees as well as being a special incentive for better performance.
From all the above discussion, one can easily deduce that it is advantageous for every
organization to give room for good human resources relation and employee motivation. This
involves setting up of programmes of various types, good pay packages, good welfare packages,
adequate training and development and to crate enabling satisfaction which will eventually result
to the realization of the expected productivity level.
1.2 Statement of the problem
Both public and private organization in Kenya contributes to the wrong utilization of available
human resources. This is because college graduates are employed in the area where they lack
expertise. The management of some banks does not seem to know the importance of good
employee relation, employee training and development on their productivity. Some management
believes that if workers have acquired university/college education, there is no need to train
again. Also provisions of welfare facilities are not given adequate attention in some organization.
Despite many policies being put in place to ensure workers productivity and efficiency and to
possibly get rid of unethical practices in the banking sector little has been achieved in some
banks and other organizations. Therefore, the researcher will try to investigate on human relation
and employee motivation in equity bank and come up with recommendations on improvement.
1.3 Purpose of the study
The study will be basically concerned with the study on human relation and employee motivation
in equity bank and come up with recommendations on improvement. The research findings will
help the top management of equity bank and other banks in Nakuru town in coming up with
possible solutions to the employee problems. This will also assist the other researchers as they
research on the same problem.
1.4 Objectives of the study
To find out effects of poor pay on employee productivity.
To find out factors responsible for workers unproductiveness.
To find out effects of salary increase, reward and other welfare packages on productivity
of workers.
To find out factors responsible for job satisfaction.
1.5 Research Questions
In carrying out this research work, the following questions will be asked:
How does poor pay affect employee productivity?
What are the factors responsible for workers unproductiveness?
How do salary increase, reward and other welfare packages affect productivity of
workers?
What are the factors responsible for job satisfaction?
1.6 Significance of the study
The study will find out factors contributing to employee unproductiveness and it will be of
beneficial to the top management of equity bank and other banks in Nakuru town in coming up
with possible solutions to the employee problems. This will also assist the other researchers as
they research on the same problem. By addressing the problems of the workers, banks will help
the workers live a better life and be able to perform their tasks well. The researcher also hopes
that the study will form base for further research by other scholars leading to solving this
problem and motivating workers more.
1.7 Scope and Limitation of the Study
1.7.1 Scope
The study will focus on investigating human relation and employee motivation in equity bank.
The study will be carried out in the human resource department of equity bank in Nakuru town.
The town has over 15 commercial banks. During the research process information will be
collected from both the senior and junior staff at the human resource department in the bank.
1.7.2 Limitations
The finding from the study will be limited to the equity bank in Nakuru town. This will not allow
generalizations to all other commercial banks; however the findings could be helpful to other
banks with similar challenges.
CHAPTER TWO; LITERATURE REVIEW
2.0 Introduction
This chapter presents a review of related literature to the research problem. Studies carried out in
Kenya and other parts of the world will be reviewed.
2.1 General Over View
In today's marketplace, where companies seek a competitive edge, motivation is key for talent
retention and performance. No matter the economic environment, the goal is to create a
workplace that is engaging and motivating, where employees want to stay, grow and contribute
their knowledge, experience and expertise.
Motivation is generally defined as the psychological forces that determine the direction of a
person's level of effort, as well as a person's persistence in the face of obstacles. The direction of
a person's behavior refers to the many possible actions that a person could engage in, while
persistence refers to whether, when faced with roadblocks and obstacles, an individual keeps
trying or gives up.
The responsibility for motivation is three-fold: it falls on the senior leadership, the direct
manager and the employee. Numerous factors are involved, from trust, engagement and values
(individual and organizational) to job satisfaction, achievement, acknowledgement and rewards.
Motivation is essential for working autonomously, as well as for collaboration and effective
teamwork. The ultimate focus of the organization is to successfully retain talent, meet goals and
go beyond expectations. It is the role of HR and organizational leaders to foster an environment
for excellence. Through a foundation of research, theory, studies and practical examples, this
article addresses the questions of what motivates employees, what managers need to do, and
what supports motivation and, thus, performance.
2.2 What Influences Motivation?
Motivating employees for better performance encompasses these critical factors: employee
engagement, organizational vision and values, management acknowledgment and appreciation of
work well done, and overall authenticity of leadership. Chana Anderson, CCP
, SPHR-CA, director of HR and a member of the SHRM Employee Relations Special Expertise
Panel, says that motivation is influenced equally by the employee and the company: "Motivation
and engagement is truly a 50-50 relationship between the employee and employer. Employees
are expected to come to the workplace with the intrinsic motivation and desire to be successful,
be value-added and contribute to the obtainment of an employer's vision. Conversely, it is
incumbent upon the employer to provide resources, opportunities, recognition and a cohesive
work environment for employees to be successful."
2.2.1 Employee Engagement
Engagement influences motivation. It is reflected in the extent to which employees commit, how
hard they work and how long they stay. People join organizations for different reasons,
motivated by intrinsic and extrinsic rewards. Intrinsic rewards are reflected in actions believed to
be important. Examples include an employee who wants to help people by providing excellent
customer service or a senior manager who gains a sense of accomplishment from overseeing a
large corporation. Intrinsic outcomes include responsibility, autonomy, feelings of
accomplishment and the pleasure of doing interesting work. Extrinsic-motivated behavior
includes actions performed with the goal to have material or social rewards, with outcomes such
as job security, benefits, vacation time and public recognition. It is the responsibility of managers
to motivate employees, with the goal for employees to contribute to the organization. Managers
can best motivate employees by offering rewards that are meaningful to them.
2.2.2 Vision and Values
Employees are often motivated differently. To develop a work environment that promotes
motivation, organizations need to know what is important to their employees and then to
emphasize these factors. In fact, some companies and researchers are beginning to look at "work
spirituality"--not in a religious sense, but in a sense that what an employee does aligns with his
or her greater sense of life and purpose. Aside from monetary gain, work provides people with
fulfillment on various levels, from earning a living and "doing good work" to aspiring to a vision
and ultimately having an impact on the quality of life. These reasons can change over time in
response to changes in people's home life and responsibilities. Further, in response to drastic
economic changes and natural disasters, companies can change over time as well.
2.2.3 Management Acknowledgment and Appreciation
How employees are treated is a strong determinant of employee motivation and performance.
Edward E. Lawler III, author and consultant for human resource management, emphasizes that
"treating people right is fundamental to creating organizational effectiveness and success. It is
also easier said than done." According to Lawler, this includes "a highly complex set of actions
on the part of both organizations and employees. Organizations must develop ways to treat their
employees so that they are motivated and satisfied; employees must behave in ways to help their
organizations become effective and high-performing." This winning combination for
performance requires a partnership between the organization and the employees. Lawler states:
"One can't succeed without the other. To provide people with meaningful work and rewards,
organizations need to be successful. And to be successful, organizations need high-performing
individuals. The challenge is to design organizations that perform at high levels and treat people
in ways that are rewarding and satisfying." To describe this mutually beneficial relationship,
Lawler uses the term virtuous spiral, a relationship that occurs when the organization values its
employees, and in return, workers are committed to high performance.
2.2.4 Leadership and Making a Difference
In today's pressure-cooker environment, performance is carefully noted at all levels of the
organization. No matter an individual's title, everyone has the opportunity to lead in some
capacity and have a positive impact on performance. Understanding the value that can be
achieved through different roles is one way of providing motivation, performance and thus
leadership skills. A recent article published on Knowledge@Wharton, titled "Putting a Face to a
Name: The Art of Motivating Employees," emphasizes that workers have better results when
they can identify with those they serve. Specifically, face-to-face interactions and task
significance ("what I do makes a difference") are key drivers for motivation and performance.
Research by Adam Grant, Ph.D., a Wharton management professor, indicates that making human
connections is critical for motivation, leadership and high job performance. He found that face-
to-face interactions--no matter how superficial--can lead to significant improvements in
performance, and that motivation and performance increase simply by an employee's awareness
of the impact of his or her job on others. Dr. Grant has observed this result through studies of all
types of jobs and roles in the workplace, from customer service representatives, managers,
nurses, doctors and medical technicians to security guards, engineers, salespeople, police officers
and fire fighters--based on when people can directly see the impact of their efforts.
2.3 The Context of Human Resource Management (HRM)
The context of "Human Resources" implies that people in a work organization are endowed with
a range of abilities, talents and attitude necessary to influence productivity, quality and
profitability. Human resources as viewed by Giant (1978) as the supply of physical labour,
technical and professional skills which are germane to the development policies, programmes,
projects and daily activities. Ndiomu (1992) contended that the human resources of a nation
comprise men and women, young and old who engage in the production of goods and services
and who are the greatest and indeed the most precious assets of the nation.
Udo-Udo Aka (1992) asserted that the concept of human resources refers to the management,
scientific, engineering, technical, craft and other skills which are developed and employed in
creating, designing and developing organizations and in managing and operating productive and
service enterprises and economic institutions. Human resources are composed of individuals
working for an organization, employed these days on a variety of contracts; some as "core" long-
term staff, some as temporary staff, some as contracted staff but collectively making up the most
important of an organization's resources as opined by Cowling (1998).
In general, regardless of the job, the most effective employees are those who provide the highest
possible quality and quantity of a product or service at the lowest possible cost and in the
timeliest fashion with a maximum of positive impact on co-workers, organizational units and the
client/ customer population. However, HRM is that part of the management process that
specializes in the management of people in the work place from recruitment to training to salary
to the point of Exit. HRM emphasizes that employees are the primary resource for gaining
sustainable competitive advantage that human resources activities need to be integrated with
corporate strategy and that human resource specialists help organizational controllers to meet
both efficiency and equity objectives.
According to Glueck (1982) HRM is the function of all enterprises which provides for effective
use of human resources to achieve both the objectives of the enterprises and that of the
employees. HRM consists of activities that relate to people within the firm, rather than activities
that deal with finance, engineering, marketing accounting. HRM deals with recruiting, selection,
appraising rewarding and developing of employees as well as negotiating with labour unions.
Obikoya (2002) quoted Yoder, Heinemann, Turnbull and Stone (1984) as saying that human
resource management involves procedure through which human resources are organized and
directed towards the attainment of organizational, individual and social goals. It makes the best
possible utilization of the rank and the employees. Summarizing what Human resource
management is, Cole (1990) write: "It is that specialist function of management which has prime
responsibility for the following.
Formulating, proposing and gaining acceptance for the human resource management
policies and strategies of the organization.
Providing adequate human resource management services for the organization to enable
it to recruit, motivate, and develop sufficient and sustainable employees at all levels.
Advising the organization management of the human consequences of change"
It has been argued in the past and up till now that productive workforce determines the
placement and importance of an organization in the society. Then the question comes to mind,
what makes people or personnel in an organization to be productive or unproductive as the case
may be?
Therefore, personnel management in the context of productivity of workforce and sustenance of
such organization is a condition that guarantees optimally, the interests of workers versus their
welfare, education, training, health, job security the need to be important and motivation of such
workers either materially or through other rewards. Thus, it could be assumed that most
organizations with industrial harmony have well designed articulated and observed policies that
ensure the job satisfaction which in turn positively affects the productivity of the workforce.
In line with the above, most human resource managers always play active role in the outcome of
the performance of their organizations. The advent of staff competition in the banking industry
coupled with the fact that customers now have full knowledge of their importance to the industry
have made most banks to place very high premium on the quality and quantity of their personnel
with a view to getting the best that will guarantee optimum returns on investment. This in
consequence has given rise to very robust profit reported yearly by these banks.
2.4 Productivity of Workforce
An understanding of the concept of productivity improvement programmes requires clear
definition of the following concept issues, productivity, quality improvement and programmes.
According to Ulrich (1997), productivity refers to a ratio of output to input. Input may include
labour hours or costs, production costs and equipment costs. Output may consist of sales,
earnings, and market share. Many firms now assume or have shown that productivity is affected
by employee's knowledge, skills, abilities, attitude, motivation and behaviours. The improvement
programme starts with this assumption and proceeds with different intervention strategies.
Prokopenko (1996) defined productivity as the relationship between the output generated by a
production or service system and the input provided to create this output.
According to Obikoya (2002), quality can be assessed by looking at performance, reliability,
conformance to standards, durability, serviceability, aesthetics and complying with customer
requirements. Crosby defined quality as "conformance to the requirements". Improvement refers
to the deliberate efforts of an organization to increase in value or excellence. In other words, the
enhancement or betterment of a company's performance, for example, increase in a company's
share turnover from year to year gaining the company's share of the market or a continuous
research and development activities of a company. Programme means a schedule of plan to be
followed. It is an intended plan of action to guide the activities of a business organization. By
productivity improvement programmes, it means the various schedules or plan put forward by an
organization to enhance its effectiveness and efficiency. In other words, it is all the concerned
efforts of an organization to gain competitive advantage over its competitors to accomplish the
organization's mission at a low enough cost. Better training and development programmes have
been shown to improve the performance of current employees, while certain incentive and
compensation systems translate into higher productivity and performance as opined by Benker,
Lee and Porter (1996).
2.4.1 Objectives of Performance Appraisal
The main purpose of any performance in appraisal system according to Killen (1977) is to:
Evaluate an employee's works to the organization
Provide basis for wages, salary, increases, promotion, demotion and transfer.
Point out employee's specific needs for additional education, training and development
which will lead to their improved performance and the overall organizational
performance.
Acknowledge high performance and motivate high performances.
Enable workers know how their superiors view their performance
Provide appraisal reports which will serve as the basis determine training and
development need.
Provide appraisal reports which will serve as the basis for job redesigning.
Help determine training and development need.
Provide the employer with the data that could be used for staff development to serve in
greater capacity.
Improve communication line between the supervisors and their subordinates in work
environment.
However, employees should receive regular indications from their supervisors on how they are
doing. That is to say there should be no surprise at annual review time. The performance
appraisal should be a summary of what the superior and the employee have been taking about all
the year along. Report by William (1977) indicates that human resource manger is responsible
for designing and overseeing the appraisal programmes. The person who conducts performance
appraisal varies from company to company. However, direct participation by line manager in the
operation of the programme is necessary, for success.
2.5 Promotions, Transfers, Demotions and Separation
According to Stoner et al. (2002) movement of personnel within an organization their promotion,
transfer, demotion and separation-is a major aspect of human resource management. The actual
decisions about whom to promote and whom to fine can also be among the most difficult and
important aspect of human resource management a manager has to make.
2.5.1 Promotions
The possibility of advancement often serves as a major incentive for superior management
performance. Therefore, it is extremely important that promotions be fair-based on merit and
untainted by favouritism still, even fair and appropriate promotions can create a number of
problems. One major problem is that frequently organizations members who are bye- passed for
promotion feel resentful which may affect their morale and productivity.
2.5.2 Transfers
Transfers serve a number of purposes: They are used to give people broader. Job experience as
part of their development and to fill vacancies as they occur. Transfers are also used to keep
promotion ladders open and to keep individuals interested in the work. For example, many
middle managers reach plateau simply because there is no room for all of them at the top. Such
managers may be shifted to other positions to keep their job motivation and interest high.
Finally, inadequately performing employees may be transferred to other jobs simply because a
higher-level manager is reluctant to demote or fire them. Increasingly however, some employees
are refusing transfers because they do not want to move their families or jeopardize a spouse's
course.
2.5.3 Discipline, Demotions and Separations
Discipline is generally administered when an employee violates company policy of fall short of
work expectations and mangers must act to remedy the situation. Discipline usually progresses
through a series of step-warning, reprimand, probation, suspension, disciplinary transfer,
demotion and discharge until the problem is solved or eliminated. If demotion or transfer is not
feasible, separation is usually better than letting a poor performer stay on the job. No matter how
agonizing the separation decision may be, the logic of human resource planning frequently
requires that it be made.
2.6 Salary and Wages (Compensation) Administration
Employee compensation administration has given much and careful thought to build job effort
firm employees so that both they and the employers will be limited together in a bargain based
upon a fair days' work for a fair day's pay. Rachel (1971) said equal pay for equal work is an
acceptable principle for achieving equity of compensation. This is an important criterion.
Employees expect what their members are paid to be at least comparable to that of other
reference groups. Consistent with this principle, and with the concept of an employment
exchange, people expect to be paid differently for work in different jobs. A major task in reward
systems management is the determination of a structure of compensation differentials that both
employer and employees can accept as being reflective of differences in the work associated with
these jobs.
2.7 The Role of Money as a Motivator
According to Obikoya (2003) some behaviour scientists have been interpreted as implying that
money is not a motivator of behaviour. Herzberg, categorized pay as hygienic factor. However,
in considering the role of hygiene factors, we must remember that if they are not adequately
supplied, employees will become dissatisfied and restrict their productivity. Therefore it seems
that money plays an important role in employee behaviour and motivation. The role of money as
a motivator is not deniable. The question is "To what extent does money motivate?" For
individuals with strong physiological needs, pay would likely serve as a most important of the
basic necessities. The organization must however reward employees according to their
productivity. A clear relationship must exist between performances and pay if money is to serve
as an effective motivator.
2.8 Summary of Related Literature
It is now evident that Human Resource Management has to do with the inception of personnel in
the organization till the exit period. That is why today, the management of human resource is
generally accepted to be the primary responsibility of all managers, line or staff, facilitated and
supported by a lean and competent human resource department. Druker (1977) charged
management with three functions: economic performance, managing managers and managing
workers and work. According to him "man alone of all the resources available to man can grow
and develop and the added".
Management of human resources is therefore very important business function. An organization
must have the right numbers and types of employees who must be managed in such a way that
they will be able to achieve their personnel and organizational objective simultaneously.
Furthermore, people in work organizations endowed with a range of abilities, talents and
attitudes influenced productivity, quality and profitability. Individuals therefore become human
resources by virtue of the roles they assume in the work organization.
The specific reward for the employee must complement the performance not vice-versa.
Monetary rewards must not be used as the only reward feedback to the employee. Immediate
supervision must use intrinsic motivational tools such as unexpected minor rewards and/or verbal
compliments. Again, the central focus must be on the task. The focus cannot be allowed to shift
to the reward. Monetary systems do motivate employees to perform above their normal work
standard, but in so doing, management must be aware of what impact these systems have on
decreasing intrinsic motivation. This is why they must be used carefully, and they can not be
used as a substitute for management.
If management expects the worker to be motivated, then management must allow for the above
actions to take place. If one of these actions is missing, it may not doom a system to failure, but
it certainly can create deterioration of the system. The key to success of any management team is
believability through actions taken. If these actions are not present, failure will likely occur.
CHAPTER THREE; RESEARCH METHODOLOGY
3.1 Introduction
A research methodology is a systematic procedure of gathering information about a particular
area of study. This chapter will contain research design, study area, target population, sample
size and technique then the research tools and data analysis.
3.2 The research design
The study will adopt the descriptive survey design to collect the opinions of staff through the use
of questionnaires. This survey research design will be used to study the aspect of human relation
and employee motivation in equity bank in Nakuru town and come up with recommendations on
how to improve.
3.3 The study area
The study will be carried out in equity bank, Nakuru town branch. The town has more that 15
other commercial banks. The town is a cosmopolitan and it’s a home of all tribes and races.
3.4 Target population
The target population of the research will be the employees working at the bank. The study will
specifically be carried out at the human resource department of the bank. Both the senior and
junior staff of the bank will be interviewed and their opinions collected.
3.5 Sample size and technique
Sampling is a procedure of selecting a part of population on which research can be conducted,
which ensures that conclusions from the study can be generalized to the entire population.
Simple random sampling technique will be used to select 20 junior staff and 5 senior staff of the
bank.
3.6 Research instruments and tools
3.6.1 Questionnaires
Sounders (2003) states that a questionnaire is a general term to include all technique of data
collection in which each person is asked to respond to the same set of questions on a
predetermined outcome. Researcher will use questionnaires because the respondents will answer
anonymously without fear. More so, researcher will collect large data in a shorter period of time.
It will therefore save time.
3.6.2 Interview schedule
An interview is a purposeful discussion between two or more people Sounders (2003). The
researcher will carry out verbal conversation with the respondents. The researcher will choose
this method of data collection so as to get first hand information from the bank workers. This
method will be successful since the respondents will be cooperative and flexible in answering
questions. The researcher will be in a position to clarify to the respondents anything.
3.7 Data Analysis
Data collected will be processed, coded and analyzed to facilitate answering the research
objectives and questions. The descriptive statistics will be used to analyze data which will be
presented as frequencies, percentages, tables and bars.
REFERENCE
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