CHAPTER ONE

1.0 Introduction

This chapter presents the background of the study, problem statement, pupose of the study, objectives of the study, research questions, scope, and significance of the study, and conceptual frame work of the research.

1.1 Background of the study

Motivation is the most important matter for every organization public or a private sector. For the success of any organization, motivation plays an important role. All organization encounter the matter of motivation whether they are in the public or private sector (Chintallo and Mahadeo, 2013). According to Chaudhary and Sharma (2012) basically, the word motivation is derived from "Motive". This means; needs, wants, and the desires of the persons. "Employees motivation means the process in which the organization inspires employee with the shape of rewards, bonus etc. for achieving the organizational goals.

According to McCormick and Tifflin (1979), motivation can be either intrinsic or extrinsic. Intrinsic motivation stems from motivations that are inherent in the job itself and which the individual enjoys as a result of successfully completing the task or attaining his goals. While extrinsic motivations are those that are external to the task of the job, such as pay, work condition, fringe benefits, security, promotion, contract of service, the work environment and conditions of work. Such tangible motivations are often determined at the organizational level, and may be largely outside the control of individual managers. Intrinsic motivation on the other hand are those rewards that can be termed „psychological motivationsee and examples are opportunity to use one”s ability, a sense of challenge and achievement, receiving appreciation, positive recognition, and being treated in a caring and considerate manner. An intrinsically motivated individual, according to Ajila (1997) will be committed to his work to the extent to which the job inherently contains tasks that are rewarding to him or her. And an extrinsically motivated person will be committed to the extent that he can gain or receive extemal rewards for his or her job. He further suggested that for an individual to be motivated in a work situation there must be a need, which the individual would have to perceive a possibility of satisfying through some reward. If the reward is intrinsic to the job, such desire or motivation is intrinsic. But, if the reward is described as external to the job, the motivation is described as extrinsic.

Today organization can easily change their material, needs, goods and services to other organization, or to other countries. But the only one resource which is not easily exchangeable is human resources. So we can say that human resources are the very important or most competitive assets of any organization that cannot be exchangeable. Human resources or human assets mean the workers or the employee of any organization. So motivation is the main factor that affects human resources of the organization. The organization should be motivating their employees for the best perfonnance or for achieving the organizational goals. In fact motivation is the best tool for best perfonnance. Today there are many discussions about motivation and the relationship of employee”s efficiency and the organizational efficiencies. Motivation will lead to the fact that workers or employees of the organization will seriously do his duties and responsibilities (Azar and Shafighi, 2013). Attractive Salaries or pays also a Valuable tool and play an important role to increase employee”s performance and also increase the productivity of an organization (MUOGBO U.s, 2013).

According to Iqbal et al. (2012), Employee”s motivation and their ability collectively panicipate into employee”s performance and in their difficult tasks given by the manger are to purposely get maximum productivity. Now a day”s researcher have more concerned with increase productivity, perfection and working ability. Employee”s needs and wants having more important in research history.

Employees play important role in the customer perception about the company. Company spend huge amount of money to gain customer loyalty but they forget the Employees motivation. Customers interact with the employees and also carry the company”s image in their mind through the behavior and attitude. So company should be moving their attention toward the employee motivation. Now the era of globalization companies face competition in the market, if company could not successfully motivate their employee. Company didn”t exist in competitive environment of business (Ahmad, 2012).

Employees are motivated in many ways as discussed earlier but this study will focus on only three which are; salary, incentives, and benefits. Salary is the remuneration paid to the clerical and personnel employed on monthly or annual basis. (Hill, 1998). Fredrick Taylor believed that the use of salary as a motivation linked to various objectives would offer the best motivation for performance. In this commentary, salary was the primary motivator and workers would be motivated by obtaining the highest possible salaries and wages. (Boddy, 2005). However, one of the traps many managers fall into is thinking that employees are motivated by only money. Although, salary is imponant as a motivator, it is not the only reward that people seek and that managers can use. Salaries cause conflicts and high labour turnover if not well administered.

(Decenzo and Robbins 2001).

Obajana Cement Plant (OCP) is Dangote”s first green field project with two lines built to international standards deploying latest technology to produce 5 MTPA. It is one of the largest private sector investments in Nigeria outside the oil sector. This maiden project was engineered by best in class associates from world over and was commissioned in 2008 against all odds. In 2011, OCP has commissioned Line 3 with 5 MTPA capacities. It achieved 100% production, shipping additional 5 MTPA in to the Nigerian market. Obajana is supplied with high-quality limestone from quarry with an estimated reserve of about 100 years.

Obajana is powered by a gas pipeline that delivers gas for its three production lines as well as its 135MW power plant. As a back-up, the plant uses low-pour fuel oil for its kilns and diesel for its power plant.

Work will soon commence to build another 3 million tonne production line by the end of 2014.

At 13 million tonnes, the expanded facility will be one of the largest in the world.

Dangote Cement Plc (DCP) is Nigeria”s largest cement manufacturer with ambitious plans to expand into 14 other African countries. A fully integrated quarry-to-depot producer, the Group has production capacity of about 19 million tonnes a year in Nigeria. At 10mt, its Obajana plant in Kogi state is the largest in Sub-Saharan Africa. The recently opened 6mt Ibese plant is less than 100km from Lagos, in the fast-growing South West of Nigeria. The Group”s Gboko plant, in Benue state, is expected to be upgraded from 3mt to 4mt in early 2013.

Dangote Cement is investing more than $4bn to expand its production and import capacity to around 50 million tonnes a year by the end of 2015. The investment will increase capacity in Nigeria to at least 32mt, with new capacity being added at Ibese and Obajana, and a new factory being planned for Calabar, in Cross River state.

The Group”s African operations will include factories in Senegal, South Africa, Cameroon, Gabon, Benin, Ethiopia, Tanzania, Zambia and the Republic of Congo. Import and bagging facilities are planned for countries including Ghana, Sierra Leone, Liberia, Cote d”Ivoire and Togo.

This Theory was chosen for this study simply because "employee motivation is one of many mechanisms used in organization to address the performance of an employee"

Another way used to monitor employee performance is Performance Appraisal.by performance appraisal we can monitor quality of performance of an employee. We monitor perfonnance by using these broader performance management systems that links:

1.         Organization objective

2.         Day by day performance

3.         Professional development

4.         Rewards and incentives.

In simple words we said that appraisal is the assessment in individual perfonnance in a systematic way, performance can be measured in such factors e.g. job knowledge, quality and quantity of output, leadership abilities, supervision, dependency, cooperation, judgment, and versatility. Performance cannot depend on past performance of employee.

There are various theories that linked motivation to performance. The Vroom”s expectancy theory states that an individual tends to act in a certain way on the basis of the expectation that the act will be followed by a given outcome and according to the attractiveness of that outcome. It entails three variables and among them is performance reward linkage. The degree at which the individual believes that performance at a particular level will lead to the attainment of a desired outcome. Attractiveness is the importance that the individual places on the potential compensation that can be achieved in the job. . (Decenzo and Robbins 2001).

According to the equity theory, workers are motivated if they are being compensated in accordance with their perceived contribution to the organization. Equity theory suggests that compensation should be equitable or in proportion to the employees contribution. (Madura and

Decenzo, 1998)

1.2 Statement of the Problem

Employee performance is assessing whether a person executes their job duties and responsibilities well. Many companies asses employee”s performance on annual or quarterly bases in order to define cefiain areas that needs improvement. Performance is a critical factor in an organizational success.

Finding ways to motivate employees has long been an issue with managers. It doesn”t matter much for which company a person works, employees can often find it hard to get motivated for a job after being employed at the same company for more than a few months. Perhaps it is because there”s a sense of repetition in the day-to-day job duties or maybe another underlying factor. To tackle employee motivation, one needs to figure out how to motivate people.

Often an employee knows how to perfonn con•ectly, the process is good, and all resources are available, but for one reason or another, chooses not to do so, which nonnally means it is a motivational issue. While many jobs have problems that are inherent to the position, it is the problems that are inherent to the person that normally cause us to lose focus from our main task of getting results. These motivational problems could anive from family pressures, personality conflicts, a lack of understanding on how the behavior affects other people or process, etc.

1.3 Purpose of the study

The purpose of this study was to identify what motivates employees to perform.

1.4 Specific objectives

The objectives to be investigated in this study included;

i.          To establish what motivates employees to perform at Dangote cement plc.

ii.         To examine the level of employee performance at Dangote cement plc.

iii.        To determine the relationship between employee performance and motivation at Dangote cement plc.

1.5 Research questions

This study was intending to answer the following questions.

i.          What is the effect of salary on employee performance in Dangote cement plc?

ii.         What impact do benefits have on employee perfonnance in Dangote cement plc?

iii.        What effects do incentives have on employee performance in Dangote cement plc?

1.6 Scope of the study

1.6.1    Geographical scope

The study was carried out in Obajana, Kogi State, Nigeria. Purposive sampling was used to select Nigeria for the study since it has the largest cement factory in Africa in which compensation and motivation practices take place. In Kogi State, Dangote cement Plc was selected as the study location. This is because Dangote cement Plc was once on papers that employees were almost striking due to poor motivational practices. The organization is also well known to the researcher who has faced motivation problem with them in the past.

1.6.2    Content scope

The study was motivation and employee performance. This study focused on prevailing situation in Dangote cement plc. and also to act as the springboard to the way forward to having a sound motivational system.

1.7       Significance of the study

The study will enrich the researcher”s knowledge on the variables under study and help the researcher fulfill the requirements that lead to the award of the degree of Bachelor of Arts in Economics at Kampala international university.

Findings will also be available for reference by academician, researchers who seek to conduct further research in any of their variable under this study.