Motivation and employee performance

Abstract

The main objective of the study was to establish the relationship between motivation and employee performance in Mbale Municipal Council. The specific objectives of the study were to examine how intrinsic motivation affects employee performance, to examine how extrinsic motivation affects employee Performance and to determine the relationship between motivation and employee performance in MMC. This study used a case study design where both quantitative and qualitative approaches were applied. The population of the study included the staff in all departments of Mbale Municipal Council. The sample size was arrived at from the total population of 60 with the sample error of 0.05. Using the Taro sample selection, the sample size was closed to 52 respondents. The researcher used two types of sampling technique, namely purposive and simple random sampling technique. Data was collected using both primary and secondary data collection techniques. The data collection instruments included the interview guide and the questionnaire. Data collected from the field was edited, coded and categorized into themes. Thereafter, it was entered into a computer programme known as Statistical Package for Social Scientists (SPSS). The findings of the study revealed that employees in MMC have freedom to make decisions in the council as revealed by the majority (78.8%) of the respondents. Results revealed that there is a significant and positive effect between the intrinsic motivation factors and employee performance in MMC (r=0.632; P<0.000). The results show a statistically significant but positive Unstandardized (Beta) coefficients of 0.473. Which meant that intrinsic motivation only accounts for only 47.3% of the variations in employee performance and it implies that a 100% change in the independent variable (intrinsic variables) will lead to a subsequent improvement in employee performance by 47.3%. Results revealed that there is a significant and positive effect between the extrinsic motivation factors and employee performance in MMC (r=.688; P<0.000). The Pearson correlation coefficient above reveals that there is a very strong positive and significant relationship between employee motivation and their performance in Mbale municipal council. This is shown by the Pearson correlation of 0.833** tested at 0.01 level of significance (P-value < 0.05). The results show a statistically significant but positive unstandardized (Beta) coefficients of 0.204 for intrinsic motivators and 0.777for the extrinsic motivators. If the intrinsic motivators are in place, they will account for 20.4% of the variations in employee performance which is significant and it implies that a 100% change in the independent variable (intrinsic variables) will lead to a subsequent improvement in employee performance by 20.4%. On the other hand, if the extrinsic motivators are in place, they will account for 77.7% of the variations in employee performance which is very significant and it implies that a 100% change in the independent variable (extrinsic variables) will lead to a subsequent improvement in employee performance by 77.7%. From the findings, it can be concluded that though the non-financial tools such as reducing the workload, job security, acknowledgment are all good motivators, financial tools such as salary and performance related pay are better motivators. It can also be concluded the management of MMC is the trying to motivate its employees though the tools it is using do not exactly match with the expectations of the employees. The study therefore recommends that the council should consider further informing and training of its staff to equip them with more skills in order to improve their performance. MMC must devise a mechanism of pleasing those who equally merited promotion by say increasing their pay and reduce on the punishments on the poor performers