sheba final work

8/8/2019 Sheba Final Work

1/51

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 Introduction

Retention of employees the world over has been of serious concern to employers in

the face of the ever increasing high rate of employee turnover. Globalization has

given rise to intense competition in todays business environment, thus making

employees the major differentiating factor for most organizations (Samuel and

Chipunza, 2009). Organizations in the building (roofing) industry rely on the

expertise of their employees in order to compete favourably and indeed gain

competitive advantage in the international market. However, retention of skilled

employees has become a difficult task for managers as this category of employees is

being attracted by more than one organisation at a time with various kinds of

incentives. Furthermore, skilled employees in Ghana are daily migrating abroad for

better job conditions. This phenomenon, according to Samuel and Chipunza (2009),

tends to have adverse effects on investment as emigrating employees move clients

investments offshore.

Organizations in the building (roofing) industry in Ghana invest a lot in their

employees in terms of induction and training, developing, maintaining and retaining

them in their organizations. To recoup these investments, managers at all costs try to

minimize employees turnover. This comes against the backdrop that skilled

1


2/51

employees are extremely crucial to the organization since their value to the

organization is essentially intangible and not easily replicated. (Meaghan et al, 2002).

Motivational variables, both intrinsic and extrinsic, have been identified to play a key

role in the retention of skilled employees (Samuel and Chipunza, 2009). Indeed,

employees are motivated to stay in organizations if there is the right mix of training,

career development, good remuneration, exciting work environment among others

(Cheryl, 1989). In the absence of these, Ongori (2007) posits that organizations will

continue to lose valuable employees to competitor organizations until managers are

able to identify and apply appropriate retention strategies that will help in reducing

the frequent turnover of key employees to stay in an organization.

1.2 Problem Statement

The advent of globalization and liberalization has led to investor friendly policies

which have invigorated the private sector. Indeed, the private sector in Ghana has

been touted as the engine of growth of the countrys economy. Many private

individuals have established businesses which have employed many qualified

Ghanaians who are manning key areas of such business especially in the building

(roofing) industry.

Every corporate entity has its own philosophical underpinnings which serve as a

roadmap to its operations. These philosophical underpinnings have found expression

in the visions and missions that direct employees to give off their best. Indeed, for an

employee to become devoted to an organization's plan and stay longer according to

2


3/51

Gutteridge (1986), the individual needs to understand what the company wants to

accomplish and what he or she has to offer now and wants to achieve in the future.

Once the right mix of employees aspirations find comfort in the organizations

practices they are more than motivated to stay longer.

The problem with the building (roofing) industry is that workers are required to go to

work on Saturdays and sometimes even on national holidays. And what is worst, the

corresponding rewards that must go with these extra duties are not given. Besides,

many skilled employees are aware of the difficulties associated with replacing them.

They therefore demand what they deem commensurate with their efforts. Once such

incentives are denied them, movement between jobs follows as a matter of natural

sequence. This creates an intriguing puzzle for most managers to resolve. In fact,

managers in charge of rewards have not been able to correctly identify and apply

motivational variables that can influence employees to stay in an organization. Thus

there is a high turnover of skilled employees in many organizations of which Alu

Africa Ghana Limited is no exception.

The issue at stake is whether to allow qualified and well trained professionals to

continue to leave their mother organizations or find an antidote to retain them.

Certainly, the right motivation strategy appears to be the panacea to the high turnover

of skilled professionals in the building (roofing) industry.

3


4/51

1.3 Aim of the study

The importance of motivation in any human endeavor and the subsequent satisfaction

it affords employees, leading to their retention, cannot be overstated. Indeed, retention

prevents the loss of competent employees from the organization, with its attendant

adverse effects on productivity and service delivery. This research aims to find out the

role of motivational variables in influencing employee retention and hence reduction

of turnover of employees.

1.4 Objectives of the Study

The right motivational strategy to cater for the varied needs of skilled employees

creates a safe haven for organizations to satisfy and retain their skilled employees.

Given the difficulties encountered by managers in retaining their best employees, the

present study intends to find out to what extent intrinsic and extrinsic motivational

variables are being used to influence employee retention and reduction of turnover of

employees in Alu Africa Ghana Limited. To achieve this aim, the following

objectives are to be examined:

1. 4.1 Broad Objective

The main objective of the study is to ascertain the relationship between motivation

and employee retention of Alu Africa Ghana Limited in the building (roofing)

industry.

1. 4.2 Specific Objectives

4


5/51

To find out the nature of motivation in Alu Africa Ghana Limited.

To examine the relationship between creation of motivational variables

and retention of employees.

To identify challenges faced by the employees in their attempt to assert

their rights.

1.5 Research Questions

The questions this research seeks to answer are:

What is the nature of motivation in Alu Africa Ghana Limited?

What relationship exists between creation of motivation opportunities and

retention of employees?

What challenges are faced by employees in their attempt to assert their rights?

1.6 Significance of the study

Employees have expectations about any effort they exert in the production or service

process of any work environment. They are satisfied where their performance is

rewarded with the commensurate pay. If an organization consistently fails to motivate

its employees, productivity is greatly affected. This may lead to increased turnover of

employees. A way to avert this situation is what the current study seeks to do.

5


6/51

With the increasing competition within the building (roofing) industry in Ghana, it is

not just enough to meet the monthly salary of workers but rather provide the right mix

of motivational variables that will keep employees satisfied. This will ensure retention

of employees which will eventually affect productivity and hence the profit of the

organization. This could be achieved through the right mix of motivational variables.

The need to retain core and skilled employees of Alu Africa Ghana Limited to help in

the operations of the organization and to enable it to remain competitive in the

building (roofing) industry has given rise to this study to help to critically examine

this issue in the context of the building (roofing) industry.

The findings of the study, it is hoped, will help policy makers in the building (roofing)

industry to design appropriate reward programmes and formulate policy interventions

to tackle the problem of employee turnover through making motivation the fulcrum of

the operations of the organization. The findings of the present study will assist

managers in the formulation of effective retention policies using appropriate

motivational variables. In addition, it is expected that the study will bridge the gap in

literature and advance the frontiers of knowledge.

1.7 Scope and organization of the study

This research covers workers of Alu Africa Ghana Limited, a manufacturer of roofing

products in Ghana. The study was organized into five main chapters. Chapter One

6


7/51

focuses on the general introduction; giving background to the study, the objectives,

research questions and significance of the study. Chapter Two presents a review of

literature on the subject matter and explanations of the various concepts and theories

involved in the study as well as information about the study organization. Chapter

Three features research methodology that was used for the study and the various

statistical tools and techniques went with it. Chapter Four takes up analysis of field

data in matrix and descriptive forms and the various analytical tools. Finally,

Chapter Five draws up a summary of the study, conclusion and recommendations.

7


8/51

CHAPTER TWO

LITERATURE REVIEW

2.1 Theoretical Literature

Herzbergs (1959) two factor theory has often been cited as the basis for motivation of

employees (Bassett-Jones and Lloyd 2005). Indeed, this theory serves as the locale for

this study.

Herzberg argued that employees are motivated by internal values rather than values

that are external to the work. This means motivation comes from within and is

propelled by variables that are intrinsic to the work. Indeed, Herzberg referred to

these variables as satisfiers (or motivators). These intrinsic variables include

achievement, recognition, the work itself, responsibility, advancement, and growth.

On the other hand, Herzberg identified certain factors which cause dissatisfying

experiences to employees. For him, these factors largely result from non-job related

variables (extrinsic). These variables were referred to by Herzberg as dissatisfiers (or

hygiene) factors which, although they do not motivate employees, nevertheless, must

be present in the workplace to make employees happy (Samuel and Chipunza, 2009).

The dissatisfiers are company policies and administrative processes, working

conditions, salary, relationship with peers, personal life (and the impact of work on

it), status, security and supervisory styles (Forsyth, 2000). Herzberg (1959) as cited in

Bassett-Jones and Lloyd (2005) argued further that, eliminating the causes of

dissatisfaction (through hygiene factors) would not result in a state of satisfaction,

8


9/51

instead, it would result in a neutral state. Motivation would only occur as a result of

the use of intrinsic factors.

Empirical studies (Kinnear and Sutherland, 2001, Meudell and Rodham, 1998, Maertz

and Griffeth, 2004), have however revealed that extrinsic factors such as competitive

salary, good interpersonal relationships, friendly working environment, and job

security were mentioned by employees as key motivational variables that influenced

their retention in the organizations (Samuel and Chipunza, 2009).

The inference from this is that management should not rely only on intrinsic variables

to influence employee retention, rather, a combination of both intrinsic and extrinsic

variables should be considered as an effective strategy to retain employees.

Motivation theories according to Iguisi (2009) are classified into two groups: content

theories and process theories. While content theories explore what arouses and

energize the behaviour of people, process theories look at the specifics of the

motivation. The most famous content theories are Maslow's need hierarchy,

Herzberg's two-factor theory, and McClelland's three-factor theory. Well known

process theories include Vroom's expectancy theory and Adam's equity theory. The

locale of this study is grounded in Herzbergs two-factor theory, Vrooms expectancy

theory and Adamss equity theory.

9


10/51

2.1.1 Herzbergs two-factor theory

Herzberg argued that employees are motivated by internal values rather than values

that are external to the work. This means motivation comes from within and is

propelled by variables that are intrinsic to the work. Indeed, Herzberg referred to

these variables as satisfiers (or motivators). These intrinsic variables include

achievement, recognition, the work itself, responsibility, advancement, and growth.

On the other hand, Herzberg identified certain factors which cause dissatisfying

experiences to employees. For him, these factors largely result from non-job related

variables (extrinsic). These variables were referred to by Herzberg as dissatisfiers (or

hygiene) factors which, although do not motivate employees; nevertheless, they must

be present in the workplace to make employees happy (Samuel and Chipunza 2009).

The dissatisfiers are company policies and administrative processes, working

conditions, salary, relationship with peers, personal life (and the impact of work on

it), status, security and supervisory styles (Forsyth 2000). Herzberg (1959) as cited in

Bassett-Jones and Lloyd (2005) argued further that, eliminating the causes of

dissatisfaction (through hygiene factors) would not result in a state of satisfaction;

instead, it would result in a neutral state. Motivation would only occur as a result of

the use of intrinsic factors.

Empirical studies (Kinnear and Sutherland, 2001; Meudell and Rodham, 1998;Maertz

and Griffeth, 2004) have, however revealed that extrinsic factors such as competitive

salary, good interpersonal relationships, friendly working environment, and job

10


11/51

security were mentioned by employees as key motivational variables that influenced

their retention in the organisations (Samuel and Chipunza (2009).

The inference from this is that management should not rely only on intrinsic variables

to influence employee retention; rather, a combination of both intrinsic and extrinsic

variables should be considered as an effective strategy to retain employees.

2.1.2 Vroom expectancy theory

Vroom approaches the issue of human motivation quite differently from the ways

Maslow and Herzberg did. He holds that people will be motivated to pursue the

achievement of a desired goal if: (1) they believe in the worth of the goal; and (2) they

believe that their actions will ensure the attainment of the goal. In a more detailed

form, Vroom believe that a persons motivation to perform will depend on the value

the person places on the outcome of his efforts multiplied by his confidence that the

efforts will actually help to desired goal; that is F = V E

Vrooms theory shows that individuals have goals and are motivated towards actions

that will ensure the achievement of these goals (Iguisi 2009). This implies that,

managers should communicate how employees goals, such as promotion, more pay,

recognition, and so on, can be earned in terms of what behavioural patterns are known

to employees, such patterns should form the basis for administering rewards.

Otherwise problems will occur in terms of workers lack of confidence in

organizational policy, and the result may be detrimental to good working

environment.

11


12/51

2.1.3 Equity theory

Adams Equity Theory calls for a fair balance to be struck between an employees

inputs (hard work, skill level, tolerance, enthusiasm, etc.) and an employees outputs

(salary, benefits, intangibles such as recognition, etc.). According to the theory,

finding this fair balance serves to ensure a strong and productive relationship is

achieved with the employee, with the overall result being contented, motivated

employees.

Equity Theory acknowledges that subtle and variable individual factors affect each

persons assessment and perception of their relationship with their relational partners

(Guerrero et al., 2007). According to Adams (1965), anger is induced by

underpayment inequity and guilt is induced with overpayment equity (Spector 2008).

Payment whether hourly wage or salary, is the main concern and therefore the cause

of equity or inequity in most cases. In any position, an employee wants to feel that

their contributions and work performance are being rewarded with their pay. If an

employee feels underpaid then it will result in the employee feeling hostile towards

the organization and perhaps their co-workers, which may result in the employee not

performing well at work anymore. It is the subtle variables that also play an important

role for the feeling of equity. Just the idea of recognition for the job performance and

the mere act of thanking the employee will cause a feeling of satisfaction and

therefore help the employee feel worthwhile and have more outcomes.

The theory introduces the concept of social comparison, whereby employees evaluate

their own input/output ratios based on their comparison with the input/outcome ratios

12


13/51

of other employees (Carrell and Dittrich, 1978). Inputs in this context include the

employees time, expertise, qualifications, experience, intangible personal qualities

such as drive and ambition, and interpersonal skills. Outcomes include monetary

compensation, perquisites (perks), benefits, and flexible work arrangements.

Employees who perceive inequity will seek to reduce it, either by distorting inputs

and/or outcomes in their own minds ("cognitive distortion"), directly altering inputs

and/or outcomes, or leaving the organization (Carrell and Dittrich, 1978). Thus, the

theory has wide-reaching implications for employee morale, efficiency, productivity,

and turnover.

2. 2 Empirical Literature

2.2.1 Nature of motivation

Rewards that an individual receive are very much a part of the understanding of

motivation. According to Flamholtz (1996), an organizational reward system is a set

of methods and procedures designed to administer things which are valued by

organizational members in order to simultaneously motivate people to achieve goals

and reinforce past behavior.

Everyone has motives that are inspired by certain factors that encourage the desire to

enhance performance. Motive literally means the mainspring and the rationale behind

any action (Kressler, 2003). Motivation according to Higgins (1994) in Lindner

(1998), is a predisposition to behave in a purposeful manner to achieve specific unmet

needs, the psychological forces that determine the direction of a persons behavior in

13
http://en.wikipedia.org/wiki/Moralehttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Turnover_(employment)http://en.wikipedia.org/wiki/Moralehttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Turnover_(employment)


14/51

an organization, a persons level effort, and a persons level of persistence in the face

of obstacles. The force an individual has that accounts for the direction, level and

persistence of his or her effort expended at work (Schernerhorn et al, 2003) and the

process that accounts for an individuals intensity and persistence of effort toward

attaining a goal (Robbins,2005).

The concept of motivation overlaps with the concept of morale, meaning the extent to

which the employee feels positive or negative about his or her work (Gary, 2004). The

level of motivation varies between individuals and within individuals at different

times and in different situations (Robbins, 2005).

2.2.2 Sources of motivation

All motivation ultimately comes from a person. In other words, all motivation is self-

motivation. Freemantle (2001) emphasizes that people are already motivated.

However, differences exist because we are motivated more or less as a result of the

ups and downs in life and what we encounter that are beyond our control. Hence, a

person is demotivated consciously or subconsciously. Motivation is therefore about

what a person wants and about his emotional state, which drives him in the direction

of achieving what he wants (Freemantle, 2001).

Sources of motivation can be intrinsic or extrinsic (Jones and George, 2004).

Intrinsically motivated behavior is a behavior that is performed for ones own sake

14


15/51


16/51

Secondly, the relationship between the employees performance and organizational

reward is important. Managers must make sure that the employees believe that if they

get a performance appraisal, it will lead to organizational rewards. Many employees

see this relationship as weak because the organization does not give rewards just on

their performance, so there is a lack of motivation (Robbins, 2007).

The third important relationship is one between the rewards received and the rewards

desired. The managers must know whether the rewards the employees receive are the

ones they desire. Some employees might want a promotion but instead get a pay rise,

or vice versa. Sometimes the managers assume that all employees want the same

rewards and so fail to notice the motivational effects of individualizing rewards. If

this is the case, employees motivation is likely to suffer (Robbins, 2003).

Thus, to keep employees motivated, managers must strengthen these three

relationships. If any or all of these three relationships are weak, the employees efforts

are likely to suffer (Lin, 2007). When these relationships are strong, the employees

tend to be motivated, so the company is likely to gain competitive advantages through

human resources (Robbins, 2003).

Motivation needs to be long lasting and reinforced by rewards and praise (Lin, 2007).

Motivation needs to be maintained by mangers to ensure a high level of performance

and productivity, and to create a working environment where employees will have

16


17/51

positive attitudes, commitment toward their work and most importantly, the belief that

they are not only valued but of crucial interest to the company (Sunderland and

Canwell, 2004).

2.2.4 Creation of Motivational Variables and Retention

Retention is a voluntary move by an organization to create an environment which

engages employees for long term (Chaminade, 2007). The main purpose of retention

is to prevent the loss of competent employees from the organization as this could have

adverse effect on productivity and service delivery. However, retention of high

performing employees has become more challenging for managers as this category of

employees frequently move from one job to another as they are being attracted by

more than one organization at a time.

The private sector managers also admit that one of the most difficult aspects of their

jobs is the retention of key employees in their organizations (Litheko, 2008). Most of

the time when these employees move, they migrate to competing organizations with

the knowledge and trade secrets acquired from their former employers, thereby

creating an even more critical situation for the latter (Abassi and Hollman, 2000).

Empirical studies such as Stovel and Bontis (2002) have shown that employees, on an

average switch employers every six years. This situation demands that management

identifies the reasons for this frequent change of employment by employees. Once

17


18/51

these reasons have been identified, management can then device retention strategies

that will help in keeping essential employees for a longer tenure.

Abassi and Hollman (2000), Hewitts Associates (2006), Sherman et al. (2006),

highlight reasons for employee turnover in organizations as hiring practices,

managerial style, lack of recognition, lack of competitive compensation system, and

toxic workplace environments. Others include lack of interesting work, lack of job

security, lack of promotion and inadequate training and development opportunities,

amongst others.

There are intrinsic and extrinsic motivational factors which can assist managers to

influence employee retention in their organizations. The problem however, is that,

managers have failed in identifying and properly using these variables as retention

strategies thereby resulting in the prevailing high turnover rate in the organization.

Every time an employee quits, a replacement must be recruited, selected, trained and

permitted time on the job to gain experience. Apart from the costs that are directly

associated with recruiting and training a new employee, other indirect costs exist.

Bliss (2007) and Sutherland (2004) contend that organizations lost productivity, social

capital and suffer customer defection when a productive employee quits. Knowledge,

skills and contacts that a departing employee takes out of the organization constitutes

a huge loss. These attributes are, in most cases, lost to a competitor that may use this

to gain competitive advantage.

18


19/51

Griffeth et al. (2000) noted that pay and pay-related variables have a modest effect on

turnover. Their analysis also included studies that examined the relationship between

pay, a persons performance and turnover. They concluded that when high performers

are insufficiently rewarded, they quit. If jobs provide adequate financial incentives,

the more likely employees remain with organization and vice versa.

In a study carried out by Centres and Bugental (1970), they base their research on

Herzbergs two-factor theory of motivation, which separated job variables into two

groups, hygiene factors and motivators. They made use of a sample of 692 subjects to

test the validity of the two-factor theory. And it was discovered that at higher

occupational level, motivators or intrinsic job factors were more valued, while at

lower occupational levels hygiene factors or extrinsic job factors were more valued.

From this work they concluded that an organization that satisfies both intrinsic and

extrinsic factors of employees get the best out of them.

In contrast, Egwuridi (1981) also investigated motivation among Nigerian workers

using a sample of workers of high and low occupational levels. The hypothesis that

low-income workers will be intrinsically motivated was not confirmed, and the

expectation that higher income worker will place a greater value on intrinsic job-

factors than low-income workers was also not confirmed. This shows clearly the

extent of value placed on extrinsic job factors.

19


20/51

Akerele (1991) observed that poor remuneration is related to profits made by

organization. However, wage differential between high and low income earners in the

same organization was related to the low morale, lack of commitment and low

productivity.

Also, in another study, Kulkarni (1983) compared the relative importance of ten

factors such as pay, security, and others which are extrinsic to the job, and other

intrinsic factors like recognition, self esteem, responsibility others among 80 white

collar employees. It was hypothesized that higher value will be placed on intrinsic

rather than extrinsic job factors. Data was obtained through personal interview in

which individuals were asked to rank each factor according to its importance. The

result did not uphold the hypothesis and it shows two extrinsic factors adequate

earnings and job security as the most important.

Judging from all these empirical studies and findings, one may generally conclude

that it is important for the motivational systems to be managed properly in order to

elicit the right behavior from workers.

2.2.5 Challenges faced by employees

Every organization has departments with their heads who supervise the work of their

subordinates. The assessment of these departmental heads normally feed into the

reward system of the organization. Research by Greene (1976) and Podsakoff et al.

20


21/51

(1984), suggests that leaders who administer rewards contingent upon performance

cause increases or decreases in subordinates' satisfaction.

Kohli (1985) on the other hand found a strong relationship between contingent

approving behaviour and job satisfaction among salespeople. Clearly, a relation of a

sort develops between these departmental heads and their subordinates on one hand

and top management on the other.

According to Adams (1979) social relationships involve an exchange process where a

person may expect equity in comparison with others. For instance, promotion as an

outcome of a high level of contribution in helping to achieve an important

organizational objective. He further argues that, a persons feeling about the equity of

the exchange is affected by the treatment they receive when compared with what

happens to other people. When there is an unequal comparison of ratios, the person

experiences a sense of inequity. Adams posits that a feeling of inequity causes tension

which in turn causes the person to decrease the amount of quality work or working

additional hours without pay. He concluded that once such a scenario plays out, a

person may try to find a new situation with a more favourable balance by resigning

from a job or from the organization altogether. Or the person may attempt to bring

about changes in others to lower their output or may force others to leave the field.

21


22/51

From the available literature, one sees a clear picture of mixed extrinsic and intrinsic

rewards as a fundamental motivating strategy in managing rewards at the workplace.

At the same time, it appears every employee is different and unique therefore one-

size-fits-all strategy in managing rewards could be disastrous. The current study is

thus, well positioned to examine the extent to which the scenarios painted in the

available literature are supported within the context of Alu Africa Ghana Limited.

CHAPTER THREE

METHODOLOGY

3.1 Introduction

22


23/51

This chapter covers the study organization and different methods used in the study.

These methods include the sampling procedure, selection of study organization and

respondents, the sample size, the instrument for data collection and the data collection

procedure and the analysis of the data.

3.2 Selection of Study Organization

The research was conducted in Alu Africa Ghana Limited (Roofing Production

Company) in the Tema Metropolis, Greater Accra Region. Respondents were

purposively selected from the organization for this research. The choice of Alu Africa

Ghana Limited was influenced by its accessibility to the researchers.

Alu Africa Ghana Limited is a Roofing Production Company established in Ghana in

the year 2006. The core business of Alu Africa Ghana Limited is to provide roofing

materials of all shades to the building and construction industry of Ghana. The

business thrives on good products and efficient service delivery.

The current staff strength of the organization stands at 50 distributed into five

operational areas namely, Finance, Marketing and Sales, Operations and Human

Resource, Quality, Production and Technical (estimation).

23


24/51

The mission of Alu Africa Ghana Limited is to develop and market a wide range of

sophisticated roofing products for businesses and individuals which are affordable and

durable to meet the changing technological needs of customers hence its motto we

shelter you for life.

The organizational structure has the Chief Executive Officer at the apex of the

organogram followed by the Human Resource and Operations Manager who deputizes

whenever the Chief Executive Officer is not available. The Finance, Marketing and

Sales, Technical, Production and Quality Managers are on the same level in hierarchy

before the junior workers.

3.3 Selection of Respondents

The study relied on the survey method for the collection of data. In the survey, semi

structured questionnaires with in-depth interviews was administered to a chosen

sample of thirty (30) employees of Alu Africa Ghana Limited.

This research applied a convenience research sampling method as it is most suitable

considering the characteristics of the study population. Respondents were contacted at

the work place and they expressed willingness and availability to participate in the

study hence the use of convenience method was apparent.

24


25/51

3.4 Data Collection Techniques (instrumentation)

Two types of data was collected for the study primary and secondary data. In the

collection of primary data, a semi-structured questionnaire was used to collect

information from the respondents. This was done with the help of all the members of

the research team over a two week period. Also, in-depth interviews was held with the

top management staff of Alu Africa Ghana Limited to solicit their views on the

process of formulating motivational variables, and the synergy between employees

satisfaction and retention at their place of work.

The empirical research component of the study consisted of the completion of semi-

structured questionnaires through personal interviews. The questionnaire consisted of

a structured format and incorporated with two types of questions, namely closed-

ended questions to gather demographic data on the profile of respondents and five

point Likert-type statements to test respondents current and ideal level of

motivational principles. The reason for applying a five point Likert scale to the study

compared to a seven point Likert scale is because the satisfaction levels of employees

can be measured more successfully through the use of five point Likert type

statements.

Secondary data was obtained through extensive review of written documents, which

included but not be limited to articles in newspapers, textbooks, articles on the

Internet and publications.

25


26/51

3.5 Data Analysis

The questionnaire administered to respondents was edited and coded. Computer

software, the Statistical Package for the Social Science (SPSS) as well as Microsoft

Excel was used to analyze the data to obtain descriptive statistics mainly in the form

of frequencies and percentages. For the statistical analysis, cross tabulation was used.

This technique was employed to examine variables considered to be of relevance.

Qualitative data from in-depth interviews was also analyzed and the information

generated used to further support the information from the questionnaire. For

discussion of results, tables and graphs was used to present the data.

3.6 Validity and Reliability

Validity and reliability form an important aspect of any research work. The

researchers intended to maximize validity by exercising tight controls over extraneous

variables and conditions. Data collected from all the different sources was double

checked while ensuring that the data are related to the operational objectives of the

study. Again, the representativeness of the sample was ensured through the selection

of over 60% of the employees of the organization.

Indeed, the questionnaire was first pre-tested on respondents chosen from

organizations in the roofing sheet industry in Accra by a convenient sampling method.

This was done to evaluate the validity and reliability of the instrument to be used. It

26


27/51

also served as a means of identifying and solving unforeseen problems in the

administration of the questionnaires. As a result of the pre-test, a few of the original

items were reworded while some were completely deleted where necessary.

27


28/51

CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION OF RESULTS

4.1 Introduction

This section presents an analysis of the research results. It starts with the bio-data of

the respondents followed by the nature of motivation in Alu Africa Ghana Limited,

creation of motivational variables and retention of employees and challenges faced by

employees in their attempt to assert their rights.

4.2 Bio data of respondents

The characteristics that were examined include sex and age, level of education,

marital status, department, salary, number of dependants, duration of employment and

current status. This provides a basis for assessing the subject matter of the study.

Analysis of the sex of the respondents indicates that 73.3% are males while 26.7% are

females. Further, the age distribution of the respondents shows that most of the staffs

of Alu Africa Ghana Limited are relatively young. In fact, the modal age is 29 years.

This indicates that the organization can make maximum use of the youthful

exuberance associated with workers who fall into this age category if the question of

motivation is properly managed. Table 4.2.1 indicates the sex of respondents.

Table 4.2.1: Sex of Respondents

Sex of Respondents Frequency Percent

Male 22 73.3

Female 8 26.7

Total 30 100.0

28


29/51

The study probed further to find out the educational qualification of the respondents

since this is an important variable in human resource base of any organization. From

the study, 50% of the respondents are diploma holders while 20% are degree holders.

Indeed, 23.3% of the staff of Alu Africa Ghana Limited holds high school/technical

certificates while 6.7% holds other qualifications. This indicates that the human

resource base of Alu Africa Ghana Limited is relatively solid in terms of relevant

education. On marital status, 56.7% have never married while 40% are married. In

fact, 3.3% of the respondents are divorced. The results also indicate that on the

average, each respondent has two dependents. This means the likelihood of many

mouths to feed and therefore motivation at the work place is key and critical for

maximum output and retention of employees.

The structure of Alu Africa Ghana Limited is divided into six main departments

namely: customer service, finance and accounts, marketing/commercial/legal, human

resource, information technology and logistics (transport, operations and shipping).

Seventeen percent of the respondents are in customer service positions while 13% are

in finance and accounts. Besides, another 13% of the respondents hold marketing and

commercial while 7% in human resource department Indeed, 27% of the respondents

hold other positions in the company. Figure 4.2.1 illustrates the various departments

in Alu Africa Ghana Ltd.

29


30/51

Figure 4.2.1 Departments in Alu Africa Ghana Ltd

department

customer service

finance and accounts

marketing,commercial

human resource

logistics(transport,

information technolo

others

3020100

27

13

10

7

13

13

17

4.3 Nature of motivation in Alu Africa Ghana Limited

Management practices play a key role in the motivation of employees and their

subsequent retention. This research investigates the relationship between the nature of

management practices and the various motivational variables which motivate

employees. According to the results, 93.3% of the respondents either strongly agreed

or agreed that their immediate supervisors give them feedback that helps them in

improving their performance while 6.7% either disagree or strongly disagree that their

immediate supervisors give them the needed feedback that helps them in improving

their performance. Further, 76.6% of the respondents either strongly agreed or agreed

that they receive informal praise and appreciation on their work performance while

23.4% either disagreed or strongly disagreed that they receive informal praise and

appreciation on their work performance. Table 4.3.1 illustrates the results.

30


31/51

Table 4.3.1 Informal Praise for Work Performance

Responses Frequency Percentage

Strongly agree 4 13.3

agree 19 63.3

neutral - -

disagree 7 23.4Strongly disagree - -

Total 30 100

The study probed further to find out the feeling of employees on the evaluation of

their jobs. According to the results garnered, 43.3% of the respondents either strongly

agreed or agreed that their job performance is fairly evaluated while 35% either

disagreed or strongly disagreed that their job evaluation process was fair. A

significant percentage of 21.7% were neutral to this test item. Again, a large majority

of the respondents (60%) either strongly agreed or agreed that their immediate

supervisors have reasonable expectations towards their work while measly 18.3%

either disagreed or strongly disagreed that their immediate supervisors have

reasonable expectations towards their work.

Understanding of how ones work contributes to the companys overall goals and

strategies enjoys a favourable response from the respondents. In fact, an

overwhelming 85% either strongly agreed or agreed that they understand how their

work contributes to achieve their organizations goals and strategies while 11.6%

disagreed or strongly disagreed with this assertion. On the issue of the flow of

information as to profitability or otherwise of the organization, 23% of respondents

strongly agreed that they are informed of the status of the organization at any point in

time while 70% agreed that they are informed of status of the organization. However,

31


32/51

7% disagreed that they are informed of the profitability or losses of the organization at

any point in time. Figure 4.3.1 depicts pictorially the results of information flow.

Figure 4.3.1: Flow of Information on the Status of the Company

Further, the study tried to find out whether employees are motivated to see the

organization succeed. According to the results, 28.3% of the respondents either

strongly agreed or agreed that they are motivated to see the organization succeed

while a significant 25% of the respondents remained neutral to this test item. In

contrast, 46.7% of the respondents either disagreed or strongly disagreed that they are

motivated to see their organization succeed. At best they are disillusioned. This result

is significant indication of a possible managerial problem worth further investigating.

Clarity of job requirements has been identified as a key variable in making work

easier for employees to be able to function properly. When this test item was

interrogated, 50% of the respondents either strongly agreed or agreed that their job

32


33/51

requirements are clear while 18.3% of the respondents remain neutral to this issue.

Further, 31.7% of the respondents disagreed and strongly disagreed with the assertion

that their job requirements are clear. This position demonstrates the nature of

employees job schedule in Alu Africa Ghana Limited. Figure 4.3.2 illustrates the

results.

Figure 4.3.2 Clarity of Job Requirements

Again, the force that drives people into action to give off their best is embedded in the

principle of cordial relationship at the office and understanding showed by ones

immediate supervisor. From the results garnered from the field, 48.3% of the

respondents said they either strongly agreed or agreed that their supervisors

understand the problems they face at work at work are prepared to help them while

18.3% of the respondents remained neutral. However, 33.4% of the respondents either

disagreed or strongly disagreed that their supervisors understand their problems at

work. This finding again demonstrates that employees of Alu Africa Ghana Limited

have problems in the office which their supervisors do not help them to solve.

33


34/51

Salary plays a critical role in the motivation of various shades and categories of

employees. On the test item of if employees salary matches their responsibilities, a

measly 8.3% of the respondents either strongly agreed or agreed that their salaries

match their responsibilities while 6.7% remained neutral. An overwhelming 85% of

the respondents either disagreed or strongly disagreed that their salaries match their

respondents. This finding is revealing in the sense that it is clear salaries at Alu Africa

Ghana Limited do not match the responsibilities and the work that employees do. This

is a yawning gap that needs to be addressed in order to motivate and improve the

performance of employees. The study further probed to find out if the company

clearly communicates its goals and strategies to employees. The results indicate that

13.3% of respondents either strongly agreed or agreed that goals and strategies are

communicated to them while an overwhelming 75% either disagreed or strongly

disagreed that company goals and strategies are communicated to them. With goals

and strategies not clearly communicated to employees it will be difficult for them to

work for the company to achieve its goals. This is a direct pointer of the style of

management of the operational philosophy of the company. Figure 4.3.3 pictorially

captures the results.

Figure 4.3.3 Communication of Goals and Strategies to Employees

34


35/51

On respect and flexibility towards employees and their families by their supervisors,

46.7% of the respondents either strongly agreed or agreed that their immediate

supervisors show respect and flexibility towards their families and their

responsibilities while 38.4% of the respondents either disagreed or strongly disagreed

with the assertion. Indeed, 15% of the respondents chose to be neutral. Further, results

indicate that 40% of the respondents are involved in the decisions that affect their

work while another 40% are not involved in the decisions that affect their work.

Twenty percent of the respondents remain neutral to this text item. Besides, 26.7%

posits that they are encouraged and motivated to come up with new and better ideas of

doing things. However, close to one-third (30%) remained neutral to the questions

while 43.4% reported that they are not encouraged and motivated to come with new

or better ideas of doing things. This finding is alarming and worrying because it

appears that there is a systemic problem that is preventing this significant percentage

of employees from contributing new ideas for the success of the organization. The

risk is that this significant number of employees is likely to become demotivated

35


36/51

because the lack of opportunity to contribute new ideas to the success of ones

organization is a major source of employee motivation the world over.

Empowerment to influence the quality of work that one does is another important

variable in the arena of motivation. This study tried to find out how respondents are

empowered to influence the quality of the work they do. According to the results,

40% of the respondents either strongly agreed or agreed that they are empowered to

influence the quality of the work they do while 43.3% of the respondents said they are

not empowered to influence the quality of the work they do. Indeed, 16.7% of the

respondents were neutral to this test item.

Figure 4.3.4 Empowerment to Influence Quality of Work

In addition, 40% of the respondents again posits that they are satisfied with their

immediate supervisor as a positive role model while more than one-third (33.3%)

36


37/51

remain neutral to the role model question. Indeed, 26.7% of the respondents said they

are not satisfied with their immediate supervisor as a positive role model.

The money that one gets as a result of the work one does also motivates people to

work hard and stay with their mother companies or organizations. When this question

was put to the respondents, 25% of them said money is their only motivator at work

while an overwhelming 70% reported that money is not their only motivator at work.

This result indicates that there are other motivators besides money at the workplace.

Further, 35% of the respondents opine that Alu Africa Ghana Limited is a place for

them to work while 36.7% either disagreed or strongly disagreed that Alu Africa

Ghana Limited is a place for them to work. Besides, another 35% claim that the

training given them is enough to enable them do their work well while 36.7% strongly

disagreed with this assertion. It also came to light that 61.7% of respondents are aware

that whatever work they do makes a difference at Alu Africa Ghana Limited while

8.3% reported that what they do makes no difference. However, 23.3% of the

respondents were neutral to the test item.

Leadership of any organization always makes changes that are suppose to inure to the

benefit of the organization. Fifty percent of employees ofAlu Africa Ghana Limited

either strongly agreed or agreed that the company has made changes that were

detrimental to their well-being while 25% said the changes are not detrimental to

them. However, another 25% remain neutral to the question. Table 4.3.2 captures this

result.

Table 4.3.2 Effects of Changes at Alu Africa Ghana Limited

37


38/51

Responses Frequency Percentage

Strongly agreed or agreed 15 50

Agreed 8 26.7

Neutral 7

Total 30 100

Besides, 63.3% posits that they are aware of the promotions, demotions and the rate

of turnover in the company while 25% reported that they are not aware. In addition, a

measly 10% said they are satisfied with the pay and benefits of the company while a

whopping 85% posits that they are not satisfied with the pay and other benefits of the

company. Again, openness and honesty amongst workers of Alu Africa Ghana

Limited received mixed results. While 43.3% responded in the affirmative, 52% said

there were no openness and honesty amongst employees.

Investment in the career development of employees by managers is a crucial

motivation factor that makes employees to remain loyal to their mother companies. A

test item was designed to interrogate this question. According to the results, 15% of

the respondents either strongly agreed or agreed that management is willing to invest

in the career development of employees while more than two-thirds (76%) opine that

management is not willing to invest in the career development of employees. The

study also shows that tolerance of diverse opinions in the various departments is on

the lower side while satisfaction derived by employees as a result of team spirit is

relatively on the average. Job security also recorded mixed results. More than one-

third (36.7%) either strongly agreed or agreed that they are satisfied with their job

38


39/51

security while 41.7% either disagreed or strongly disagreed that they are satisfied with

their job security. Indeed, 21.7% chose to remain neutral to this test item.

Promotion is another key variable in motivating employees. When this question was

put to the respondents, 28.3% either strongly agreed or agreed that their immediate

supervisors are willing to promote them while 38.3% either disagreed or strongly

disagreed that their immediate supervisors are willing to promote them. The

percentage that remains neutral was 33.3. Besides, using employee feedback to make

improvements is another mixed bag. Twenty-three point three percentage (23.3%) of

the respondents either strongly agreed or agreed that employee feedback is used to

make improvements while 45% either disagreed or strongly disagreed with the

assertion.

Figure 4.3.5 Use of Employee Feedback to make Improvements

Further, sense of accomplishment as regards the type of work employees do at Alu

Africa Ghana Limited is also on the lower side. In fact, 21.7% of the respondents

either strongly agreed or agreed that they feel a sense of accomplishment in their job

while 48.4% either disagreed or strongly disagreed that they feel that sense of

39


40/51

accomplishment in their job. Supervisors taking time to meet and listen to employees,

task performed being reasonable and immediate supervisor showing concerns about

personal needs of employees are other variables that also recorded mixed results. In

fact, those who agreed and disagreed are evenly distributed; making the result quite

interesting.

Regular meetings always open the avenue for employees to air their grievances for

redress. According to the results garnered from the field, 25% of the respondents,

either strongly agreed or agreed that the various departments hold regular meetings

while half of the respondents hold disserting view about the regular nature of

meetings. Further, frequent team contest are also absent. This has led to lack of

competition among the various departments. From the discussions, the following

factors have been identified as the main sources of employee turnover in Alu Africa

Ghana Limited: non-investment in career development of employees by management,

salaries not matching responsibilities, goals and strategies not communicated to

employees, lack of information flow from management and employees and

responsibility towards family of employees.

4.4 Creation of motivational variables and retention of employees

Table 1 presents the relations between the three measures of motivation: highly

motivated, motivated and not motivated and the various motivational factors. Most of

the variables have a significant level of statistics with a 99% confidence level and

40


41/51

these are marked with the double stars. Indeed, these are indicated by the p-values

which are smaller than 0.01 this means the variables are reliable. When managers

base promotion on performance, set challenging tasks, job security is assured among

others, employees are bound to stay with their mother organizations. However, the

test indicates that when these things are not done, employees definitely will be

tempted to migrate to other organizations where these variables are allowed to

operate.

Table 4.4.1. Chi-Square Test for Motivational Variables

Variables Chi-square

value

df p-value ObservedValue(N)

ExpectedValue(N)

Setting performance target for

Subordinates

7.357 2 0.025 21 9.3

Promotion based on

performance

12.200 2 0.002*

*

25 10

Challenging/interesting work 9.800 2 .007** 25 10

Recognition/reward for good

performance

7.800 2 .020 18 10

Job security 16.800 2 0.000*

*

22 10

Training & development

opportunities

15.200 2 0.001*

*

24 10

Promotions and growth in the

company

5.600 2 .061 22 10

Participation in decision makingprocess

7.800 2 .020 15 10

Sense of belonging 18.600 2 0.000*

*

24 10

Personal loyalty to employees 5.600 2 0.061 22 10

Tactful discipline in the face of

offense

16.800 2 0.000*

*

28 10

Freedom for innovative thinking 25.800 2 0.000* 28 10

41


42/51

*

Sympathetic help with personal

problems

12.200 2 0.002*

*

16 10

mentoring 22.400 2 0.000** 24 10

Salary package 13.310 2 0.001*

*

16 9.7

P


43/51

Training and

development

Job

security

Challenging/

interesting

work

environment

Recognition/re

ward for good

performance

Performance

bonus/commi

ssion

Chi-

Square(a) 41.200 52.300 57.700 42.700 41.200df 2 2 2 2 2

Asymp.

Sig..000 .000 .000 .000 .000

P


44/51

demotivative and they are prepared to leave once they secure better offers from

competing companies in the same industry and beyond. This state of affairs calls for a

critical look such challenges if employees are to be motivated to give off their

maximum best for the success of the organizations.

CHAPTER FIVE

44


45/51

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter presents the concluding part of the study. It starts with the summary of

findings, followed by the conclusions drawn and finally ends up with

recommendations for policy guidance for the motivation of employees of Alu Africa

Ghana Limited.

5.2 Summary

The main thrust of the study was to examine the role of motivation through

establishment of key intrinsic and extrinsic motivational variables that could be used

in attracting and retaining employees of Alu Africa Ghana Limited. The study

interrogated this question using Alu Africa Ghana Limited.

The findings of the present study will assist managers in the formulation of effective

attraction and retention policies and strategies using appropriate motivational

variables to motivate and kept its employees. The study found the following intrinsic

motivational variables to have significant influence on retention amongst employees

Alu Africa Ghana Limited: training and development; job security; challenging/

interesting work; and reward for good performance.

The results are consistent with previous research findings of Smit and Cronje (2002)

and Hay (1999) who found training and development as one of the major retention

45


46/51

strategies being used by managers in retaining their best employees all over the world.

Hay (1999) argues that lack of training and development of employees skills was the

largest determinant of turnover in organizations. Training and development as a

matter of fact adds values to the marketability and therefore the mobility of

employees. Though it equally contributes to employee turnover, training and

development is a necessarily evil for the attraction and retention of employees.

The present study presents a strong evidence of association between job security and

employee retention. This finding is not strange given the socio-economic stability and

psychological well-being of employees that is associated with a stable employment.

The significant influence presented by challenging/ interesting work on retention in

the present study can be related to the early arguments of Herzberg (1954) that

motivators are those aspects of the job that make people want to perform and provide

employees with satisfaction. Accordingly, job characteristics should be able to arouse

employees interest in taking on a particular job because it is exciting, satisfying, or

personally challenging to say the least. Another aspect of the present research study

shows that the following motivational variables were found to have significant

influence on employee retention. These variables include goal setting techniques;

promotion system based on performance; recognition and rewards for good

performance; and employee mentoring and coaching.

5.3 Conclusions

46


47/51

This study offers a deeper investigative insight into the role of motivation as an

answer to employee turnover and retention in Alu Africa Ghana Limited. The results

were based on the analysis of a semi-structured interview of 30 respondents from the

45 employees of Alu Africa Ghana Limited. In fact, managing human resources

effectively has become a fundamental tool for companies to maintain the right people

who are capable of helping the company stay in competition and also maintain its

leadership in industry. Retaining the right employees saves costs. Also, it takes time

for new employees to learn the culture of a company and acquire the necessary skills

relevant to the efficient performance of their tasks. In order to keep an efficient

workforce, it is important that management attracts the right employees, motivates

them through implicit and explicit motivational means in order to retain them for the

long term sustainability of the company and therefore its profitability.

5.4 Recommendations

The behaviour, attitudes and philosophies of managers can have a significant effect on

the motivation of their employees and thus on whether they are attracted to the

company and retained. This means that the extent to which people are attracted to an

organisation and their willingness to stay longer is largely influenced by the conduct

of managers. Managers should thus take the motivators examined in this study

seriously into consideration when performing the human resource function and also

when drafting strategies and policies to retain and motivate the right calibre of

employees for their organisations.

47


48/51

Firstly, retention policy should incorporate practices which encourage retention and

enhance productivity. Such practices include the introduction of a performance-based

promotion system rather than the present situation in which employees are promoted

based on seniority rather than performance. This present practice is unlikely to give

Alu Africa Ghana Limited any competitive advantage in the aluminum industry. The

practice can deeply demotivate young, ambitious, innovative and hard working

professionals to leave to other companies within the aluminum industry or move into

other industries altogether. This could create serious succession and managerial

problems for the long term interest of the company and also produce a generation of

employees that may not be loyal.

Secondly, Alu Africa Ghana Limited should invest heavily in the education, training

and development of its employees. Training and development appeal greatly to

employees and remain one of the best ways of retaining key employees. Some of

these training programmes can be designed for self-actualisation in order to appeal to

executive career officers who are no longer motivated by money but by their status in

society as emphasised by Maslows hierarchy of need theory. Alu Africa Ghana

Limited presently has a section of its senior officers in this category and if immediate

steps are not taken to address this situation, they may soon become very disillusioned

and demotivated and therefore tempted to find new prospects and opportunities

elsewhere.

Companies should keep their employees constantly motivated in order to lower the

turnover rate and also to save costs. When recruiting employees, the company should

48


49/51

find out from the candidates what they are looking for in their jobs and what they

expect from the company in return. The company should also communicate to

candidates what the company expects from them and what the company is willing to

provide them. This should include a clearly defined career path for young and

ambitious employees, especially those who have the potential to rise quickly and

equally far. The company should constantly assess the employees motivation levels

and also what they need, want or expect from their employee through the use of

questionnaires or interviews. Consulting Firms can also be used to conduct research

into such key managerial issues of modern concern. This is very necessary to meet the

ever changing complexities associated with the management of employees. Modern

organisations are constantly identifying the changing trends in the management of

employees and seeking the professional advice of human resource experts to

effectively deal with any issues identified. The era when companies assume that

salaries alone would motivate employees is well gone. Employees are now very

complex and needs to be managed carefully if an organisation is to derive the best

result from them.

In addition, employee evaluation should be done constantly and regularly. Regular

assessment of employees performance helps to improve organizational performance

through improving individual employee performance; helps to identify and to

recognize existing and potential employees; and also provides an equitable method of

matching pay to performance. Employee evaluation greatly helps managers to

understand how employee performance links to their motivational factors and also

49


50/51

how their performance can be improved through satisfying their needs, wants and

expectations from the company. It is equally important for the company to perform

exit interviews to be able to identify possible reasons for the departure of a staff and

to take corrective measures to ensure that negative factors for the exit are

subsequently managed. Another option is to factor into the performance appraisal of

sectional heads the turnover of employees that occur in their departments and to

reward personal measures taken by a manager to retain his or her workforce. Any

manager who suffers the loss of his or her staff beyond a certain number should be

investigated for possible employee abuse or mistreatment; lack of leadership and

people management skill or cultural sensitivity among others.

50


51/51

sheba final work

Documents