Literature Review Chapter Two

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    CHAPTER TWO

    LITERATURE REVIEW AND CORPORATE PROFILE

    2.1 Introduction

    This chapter appraises previous research by accredited scholars and researchers. A

    literature review is a body of text that aims to review the critical points of current

    knowledge on a particular topic. Its ultimate goal is to bring the reader up to date with

    current literature on a topic and forms the basis for another goal, such as the justification

    for future research in the area. For this particular study, the chapter shall be a systematic

    review of available resources, the current practices in budget control, significance of

    budget control, strategies imposed at the Ministry of Health to counter corruptions that

    significantly affect budgeting practices and operational definitions.

    Public budget preparation is one of the tedious tasks that any country

    should look down upon. The preparation process for the annual budget involves

    a great deal of energy, time, and expense. Hence, it is important that a country

    must be able to follow accurately all the methods of preparing an annual budget.

    Budgets can be prepared for and used by anyone and anything. That is, we can

    prepare and use personal budgets and organisations, ministries and non-profit

    making organisations can all use them.

    Budgets have to be prepared in advance; and for this reason, they are

    often referred to in terms of their being part of a feed forward system. Feedback

    is a term frequently heard both in accounting and ordinary use. Feed forward,

    on the other hand tends to be less frequently heard, yet this word incorporates

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    the most important aspect of budgeting. That is, looking at situations in

    advance, thinking about the impact and implications of things in advance, and

    attempting to take control of situations in advance. Consequently, a budget is

    composed of different functional budgets that could help a country for such

    development such as agriculture, technology, tourism, and other budgets. The

    combination of each functional budget made up the capital budget, master

    budget and even the cash flow budget which consists of income and balance

    sheets (Smith, & Mcgeary, 1997).

    Aside from determining the financial needs, other purpose of budgeting is

    to assess the social spending in any country (Schmidt, 1992). Other essential

    reasons for having a budget plan is to effectively allocate resources,

    coordination, rendering tasks, dimensioning of the activities of the country,

    efficient communication and a foundation for incentive systems.

    In budgeting, the focus is not only to prepare the budget, but more

    importantly to have a follow-up operation for budgeting and to act according to

    known data. In addition, budgets are also known as a financial expression of a

    countrys plan for a period of time (Falk, 1994). It tells where and how the

    organisation will spend money and where the money will come from to pay these

    expenses. Budgets also set limits. Imagine how chaotic an industry or country

    would be if everyone was allowed to spend as much as they wished on whatever

    they wanted. Besides setting limits, budgets also enables the assurance that the

    most important needs of a country are met first and less important needs are

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    deferred until there are sufficient funds in which to pay for them. (Andrews & Hill,

    2003).

    Even though budget preparation is not the sole thing that needs

    consideration in budgeting, the basis of it is still needed in order to have at least

    close estimation. Actually, there are different models of assessing the basis of

    financial budget of a certain country. And these are through increments,

    redistribution, zero-based budget, Planning, Programming, and Budgeting

    Systems Models (PPBS) and etc. In this paper, well be discussing the

    advantages and disadvantages of using increments in public budget preparation.

    2.2 The concept of motivation

    The word motivation has been derived from motive which means any idea, need or

    emotion that prompts a man into action. Whatever may be the behaviour of man, there is

    some stimulus behind it. Stimulus is dependent upon the motive of the person concerned.

    Motive can be known by studying his needs and desires.

    There is no universal theory that can explain the factors influencing motives which

    control mans behaviour at any particular point of time. In general, the different motives

    operate at different times among different people and influence their behaviors. The

    process of motivation studies the motives of individuals which cause different types of

    behaviour.

    2.3 Significance of Motivation

    Motivation involves getting the employees of the organization to pull weight

    effectively, to give their loyalty to the organization and to carry out properly the purpose

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    of the organization. The following results may be expected if the employees are properly

    motivated.

    1. The workforce will be better satisfied if the management provides them with

    opportunities to fulfill their physiological and psychological needs. The workers will

    cooperate voluntarily with the management and will contribute their maximum

    towards the goals of the organization.

    2. Workers will tend to be as efficient as possible by improving upon their skills and

    knowledge so that they are able to contribute to the progress of the organization. This

    will also result in increased performance.

    3. The rates of labours turnover and absenteeism among the employees will be low.

    4. There will be good human relations in the organization as friction among the

    employees themselves and between the employees and the management will

    decrease.

    5. The number of complaints and grievances will come down. Accident will also be low.

    2.4 Types of Motivation.

    According to Susan Harter (1981), intrinsic motivation occurs when people are

    internally motivated to do something because it either brings them pleasure, they think it

    is important, or they feel that what they are learning is morally significant.

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    Extrinsic motivation comes into play when a student is compelled to do something

    or act in a certain way because of factors external to him or her like money (Harter,

    1981).

    2.5 Incentives

    An incentive is something which stimulates a person towards some goal. It activates

    human needs and creates the desire to work. Thus, an incentive is a means of motivation.

    In organizations, increase in incentive leads to better performance and vice versa (Bonner

    and Sprinkle, 2002).

    2.5.1 Need for Incentives

    Man is a wanting animal, he continues to want something or other. He is never

    fully satisfied. If one need is satisfied, the other need arises. In order to motivate the

    employees, the management should try to satisfy their needs. For this purpose, both

    financial and non financial incentives may be used by the management to motivate the

    workers. Financial incentives or motivators are those which are associated with money.

    They include wages and salaries, fringe benefits, bonus, retirement benefits etc.

    Non financial motivators are those which are not associated with monetary rewards. They

    include intangible incentives like ego-satisfaction, self-actualization and responsibility.

    Fig. 2.3 INCENTIVES (Aastha Dogra, 2010)

    Financial Incentives Non-Financial Incentives

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    - Wages and Salaries. - Competition

    - Bonus - Group recognition

    - Medical reimbursement - Job security

    - Insurance - Praise

    - Housing facility - Knowledge of result

    - Retirement benefits. - Workers participation.

    - Suggestion system.

    - Opportunities for growth

    2.6PerformancePerformance is a commonly used, yet poorly defined concept in industries and

    organizations. It most commonly refers to whether an employee performs their job well.

    Despite the confusion over how it should be exactly defined, performance is an extremely

    important criterion that relates to organizational outcomes and success.

    Performance refers to output results and their outcomes obtained from processes,

    products, and services that permit evaluation and comparison relative to goals, standards,

    past results, and other organizations. Performance can be expressed in non-financial and

    financial terms (Archer, 1998).

    Performance in any organization is the cornerstone of business excellence.

    Business excellence models encourage the use of performance measures, but in addition

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    and more importantly, they consider the design of performance measurement systems to

    ensure that measures are aligned to strategy, and that the system is working effectively in

    monitoring, communicating, and driving performance. Performance in any organization

    is the systematic process by which an agency involves its employees, as individuals and

    members of a group, in improving organizational effectiveness in the accomplishment of

    organizational mission and goals.

    2.7 Factors that affect Performance

    To meet satisfactory or exceed performance goals, employees should have;

    Ability. This refers to the character traits, skills and knowledge of employees which

    are used in the performance of achieving organizational goals. At this point, the

    capacity of the employee to learn and perform tasks required is key and essential. If

    an employee lacks ability, the organization can provide training or replace the

    employee.

    Effort. This refers to the amount of manual or mental energy that an employee is

    prepared to expand on a job to reach a certain level of performance. Efforts

    employees exert in achieving tasks vary according to incentive and motivation an

    organization implements.

    Knowledge and Skill. This is where an employee is required to have the

    information and expertise necessary to perform the job in the organization. Without

    knowledge and skills, an employee cannot perform to achieve the set goals of the

    organization. Hence, the need for all employees to have the requisite knowledge and

    skills on products and services of the organization.

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    Serene Environment. This refers to acceptable working conditions, such as enough

    time and equipment to perform the job effectively. On the other hand if there is an

    environmental problem, the employers of the organization can also usually make

    adjustments to promote higher performance.

    Feedback. Feedback from management that effectively communicates the status of

    the employees performance, based on measurable guidelines and tools.

    Motivation. These include the incentives in place that positively reinforce good

    performance. Organizations which know how to motivate their employees can

    achieve optimum output, meet expected targets and the performance of employees

    soar. But if motivation is a problem, the organization's task is more challenging.

    Individual behavior is a complex phenomenon, and the organization may not be able

    to figure out why the employee is not motivated and how to change the behaviour.

    Thus, also motivation plays a vital role since it might influence negatively

    performance and because of its intangible nature.

    Although all of these factors are crucial to an employees success on the job, only

    one aspectknowledge and skillcan actually be improved by training. If any of the

    other factors are the cause of decreased performance, management or other forces in the

    organization must institute the changes necessary to resolve the problem.

    2.8 Evaluation of the Performance Concept

    Performance has now become an everyday word. Since the Second World War,

    governments, politicians, academics and economists have all stressed the importance of

    performance because of its relationship with the general economic health of a nation.

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    Corporate management globally is concerned with performance because it is

    regarded as a main indicator of efficiency when comparisons are made with competitors

    in world markets. Governments stress the relationship between productivity, the standard

    of living, inflation and economic growth (Craig, 1972).

    Over this period, whole careers have been spent addressing the problem of

    performance and how it can be measured, without coming to any conclusions. Faraday

    (1971) comments "The calculation of performance has long been a field of controversy

    when attempts are made, little value is placed on the results because they seem to contain

    so many imperfections".

    Craig (1972) sums up the problem when he says 'performance remains as one of

    the most elusive concepts in business and economic literature. It remains elusive because

    of a lack of definitive theoretical work - mainly at the firm level."

    2.9 Performance Indicators

    A performance indicator or Key Performance Indicator (KPI) is an industry jargon

    term for a type of measure of performance. Key Performance Indicators (KPIs) are

    commonly used by an organization to evaluate its success or the success of a particular

    activity in which it is engaged (Fitz-Gibbon, 1990). KPIs help an organization to define

    and measure progress of employees toward organizational goals. Sometimes success is

    defined in terms of making progress toward strategic goals, but often, success is simply

    the repeated achievement of some level of operational goal (zero defects, 10/10

    customer satisfaction etc.).

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    Accordingly, choosing the right KPIs is reliant upon having a good understanding

    of what is important to the organization. 'What is important' often depends on the

    department measuring the performance - the KPIs useful to a Finance Team will be

    quite different to the KPIs assigned to the sales force, for example. Because of the need

    to develop a good understanding of what is important, performance indicator selection is

    often closely associated with the use of various techniques to assess the present state of

    the business, and its key activities. These assessments often lead to the identification of

    potential improvements; and as a consequence, performance indicators are routinely

    associated with performance improvement initiatives for both the organization and

    employees.

    2.10 Effects of Performance on

    2.10.1 Job Satisfaction

    Performance of employees is a powerful tool for the long-term success of the

    organization. Performance in relation to job satisfaction is a critical characteristic of

    organizations management since it reflects the progress and achievement of the

    organization. The root of job satisfaction to achieve the desired goal can vary from

    individual to individual. For instance one employee may be satisfied in his work to earn

    higher commission, whereas another employee may be more interested for its

    satisfaction or the surrounding environment solely (Tietjen & Myers, 1998).

    Locke and Lathan (1976) give a comprehensive definition of job satisfaction as

    pleasurable or positive emotional state resulting from the appraisal of ones job or job

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    experience. Job satisfaction is a result of employee's perception of how well their job

    provides those things that are viewed as important.

    Attempting to understand the nature of job satisfaction and its effects on work

    performance is not easy. Researchers have put a considerable amount of effort into

    attempts to demonstrate that the two are positively related in a particular fashion: a

    happy worker is a good worker (Swanson, 1994). Although this sounds like a very

    appealing idea, the results of empirical literature are too mixed to support the

    proposition that job satisfaction leads to better performance or even that there is a

    reliable positive correlation between these two variables. On the other hand some

    researchers argue that the results are equally inconclusive with respect to the proposition

    that there is no such relationship. As a result of this ambiguity, this relationship

    continues to stimulate research and re-examination of previous attempts.

    According to (Mitchell and Lasan, 1987), it is generally recognized in the

    organizational behaviour field that job satisfaction is the most important and frequently

    studied attitude. Some important dimensions to job satisfaction are;

    Job satisfaction is an emotional response to a job situation. As such it cannot be seen,

    it can only be inferred.

    Job satisfaction is often determined by how well outcome meet or exceed

    expectations. For instance, if organization participants feel that they are working

    much harder than others in the department but are receiving fewer rewards they will

    probably have a negative attitudes towards the work, the boss and or coworkers. On

    the other hand, if they feel they are being treated very well and are being paid

    equitably, they are likely to have positive attitudes towards the job.

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    Job satisfaction represents several related attitudes which are most important

    characteristics of a job about which people have effective response. These are: the

    work itself, pay, promotion opportunities, supervision and co-employees.

    2.10.2 Employees Commitment

    Bateman and Strasser (1984), defined employee commitment as,

    multidimensional in nature, involving an employees loyalty to the organization,

    willingness to exert effort on behalf of the organization, degree of goal and value

    congruency with the organization, and desire to maintain membership

    Employees commitment to their work, to their individual department and to the

    organization as a whole can influence turnover and boost the performance of the

    organization. Building employees commitment to the organization is one important

    goal of human resource policies and practices. Research shows that commitment has a

    positive effect on performance, turnover and employees willingness to help co-workers

    or peers (Becker and Billings, 1993).

    Employees commitment has an important place in the study of organizational

    performance. This is in part due to the vast number of works that have found

    relationships between organizational commitment and attitudes and performance in the

    workplace (Porter et al., 1974).

    Managers may be able to increase employee commitment by focusing attention on

    specific variables aimed at achieving organizational goals and. Employers must also

    give numerous opportunities to employees to make them feel committed to the

    organization since this is significantly correlated to performance. This in turn will lead

    to employees putting up a spirited performance in the advancement of the organization.

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    2.10.3 Employee Retention

    Retaining top talents remain a primary concern for many organizations today.

    Critical analysis of workforce trends points to an impending shortage of highly-skilled

    employees who possess the requisite knowledge and ability to perform at high levels,

    meaning that organizations failing to retain high performers will be left with an

    understaffed, less qualified workforce that ultimately hinders their ability to remain

    competitive (Rappaport, Bancroft, & Okum, 2003).

    Researchers emphasize performance-specific differences when studying employee

    retention processes because of the negative consequences that are associated with

    turnover among high performers (Griffeth & Hom, 1995). Organizations must bear

    performance losses, high replacement costs, and potential talent shortages, all of which

    ultimately erode the core leadership base of the organization. Therefore, employers seek

    to retain high performers and replace low performers with employees who bring greater

    skills and abilities to the organization.

    Dalton & Todor, (1979) have argued that turnover is functional when high

    performers stay (and low performers leave) and dysfunctional when low performers stay

    (and high performers leave). Thus, an effective approach to retention management

    involves understanding why employees stay, but also examines differences in reasons

    based on what the organization is trying to accomplish from a talent management

    perspective (e.g., retaining high performers).

    Employees who are high performers are presumably also those who can leverage

    their superior skills in the labor market to secure another position with greater

    motivation rewards. The skills and attributes that enhance an individuals mobility

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    outside of the organization have been termed movement capital, and include

    dimensions such as education, cognitive ability, and occupation-specific training

    (Trevor, 2001).

    Given that these elements are positively related to job performance, high

    performers likely have a greater capacity to act on dissatisfaction with workplace

    elements than low performers because they can turn to the external market when

    conditions are unfavorable (Jackofsky & Peters, 1983). Factors that promote retention

    among high performers may be organization-specific (or else they would likely leave),

    which suggests that dimensions such as organizational prestige or constituent

    attachments may be more prominent in high performers decisions to stay.

    High employee performers are more likely to stay in an organization when there

    is opportunity for salary growth, when they are satisfied with their work, and when

    contingent rewards are available.

    2.10.4 Productivity

    Organizations rely on performance systems to evaluate how well employees

    perform. Employees performance processes can provide useful information to

    employers, as well as positively and negatively impact organizational productivity.

    The concept of productivity is often vaguely defined and poorly understood,

    although it is a widely discussed topic. Different meanings, definitions, interpretations

    and concepts have emerged as experts working in various areas of operations have

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    looked at it from their own perspectives (Sardana 1987). But a different view is that the

    terms `performance' and `productivity' are used incorrectly. People who claim to be

    discussing productivity are actually looking at the more general issue of performance.

    Productivity is a fairly specific concept while performance includes many more

    attributes.

    Performance is a broader term than productivity. It includes factors that are not

    easily quantified, such as quality, customer satisfaction, and worker morale. The

    inclusion of these fuzzy terms into the mix reduces the crispness of the measure and

    makes the calculation more difficult. However, these terms more fully describe what

    actually occurs in production (Sink, 1985). When the performance of employees is high,

    it will soar the productivity of the organization in achieving set targets.

    2.11 Performance Appraisals

    Performance appraisals are one of the most important requirements for successful

    business and human resource policy (Kressler, 2003). Rewarding and promoting

    effective performance in organizations, as well as identifying ineffective performers for

    developmental programs or other personnel actions are essential to effective to human

    resource management (Pulakos, 2003). The ability to conduct performance appraisals

    relies on the ability to assess an employees performance in a fair and accurate manner.

    Evaluating employee performance is a difficult task.

    Once the supervisor understands the nature of the job and the sources of

    information, the information needs to be collected in a systematic way, provided as

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    feedback, and integrated into the organizations performance management process for

    use in making compensation, job placement, and training decisions and assignments.

    Performance evaluations have been conducted since the times of Aristotle (Landy,

    Zedeck, Cleveland, 1983). The measurement of an employees performance allows for

    rational administrative decisions at the individual employee level. It also provides for

    the raw data for the evaluation of the effectiveness of such personnel- system

    components and processes as recruiting policies, training programs, selection rules,

    promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In

    addition, it provides the foundation for behaviourally based employee counseling. In the

    counseling setting, performance information provides the vehicle for increasing

    satisfaction, commitment, and motivation of the employee.

    Performance measurement allows the organization to tell the employee something

    about their rates of growth, their competencies, and their potentials. There is little

    disagreement that if well done, performance measurements and feedback can play a

    valuable role in effecting the grand compromise between the needs of the individual and

    the needs of the organization (Landy, Zedeck, Cleveland, 1983).

    2.12 Operational Definitions

    2.12.1 Definition of Motivation

    According to Flippo, (1984), Motivation is the process of attempting to influence

    others to do their work through the possibility of gain or reward.

    Cofer, Appley, and Mortimer (1967), in their book; Motivation: Theory and

    Research, definedmotivation as, The process that initiates, guides and maintains goal-

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    oriented behaviours. They also argue that, motivation is what causes employees to act

    and involves the biological, emotional, social and cognitive forces that activate

    behaviour.

    Dubin (1974) defined motivation as, The complex forces starting and keeping a

    person at work in an organization. Motivation is something that moves the person to action

    and continues him in the course of action already initiated

    2.12.2 Definition of Performance

    Hartle and Weiss (1997), defined performance as, a process for establishing a

    shared understanding about what is to be achieved, and how it is to be achieved; an

    approach to manage people which increase the probability of achieving job-related

    success.

    According to Houldsworth (2006), performance is the actual effort that an

    employee undertakes in order to carry out the work.

    Performance relates to the person's ability to perform all of the tasks and duties

    required for a specific job. It is not considered in isolation but is considered based on the

    interrelationship with productivity and profitability. Performance is also in relation to the

    amount of work produced in a given period of time. It relates to the person's ability to

    produce the standard amount or number of products, services or outcomes as described in

    a work description. It is not considered in isolation but is considered based on the

    interrelationship with profitability.

    Performance includes activities to ensure that goals are consistently being met in an

    effective and efficient manner. As such, performance can focus on performance of the

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    organization, a department, processes to build a product or service and employees.

    (Houldsworth, 2006).

    2.13 Theoretical Framework (Theories of Motivation).

    Understanding what motivated employees and how they were motivated was the

    focus of many researchers following the publication of the Hawthorne study results

    (George Elton Mayo, Western Electric company in Chicago, 1924 - 1927). Six major

    approaches that have led to our understanding of motivation are; McClellands

    Achievement Need Theory, Frederick Herzbergs Two - Factor Theory, Abraham H.

    Mallows Need Hierarchy, J.S. Adams Equity Theory, and Vrooms Expectation.

    2.13.1 McClellands Achievement Need Theory.

    According to McClellands (Acquired-Needs Theory, 1961), individuals specific

    needs are acquired over time and are shaped by ones life experiences. The three types of

    needs he proposed are;

    Need for Achievement (n Ach);

    This need is the strongest and lasting motivating factor. People with this

    need seek to excel and thus tend to avoid both low-risk and high-risk situations.

    Achievers avoid low-risk situations because the easily attained success is not a

    genuine achievement and in high-risk projects, achievers see the outcome as one

    of chance rather than one's own effort. They need regular feedback in order to

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    monitor the progress of their achievements. They prefer either to work alone or

    with other high achievers. They set more difficult but achievable goals for

    themselves because success with easily achievable goals hardly provides a sense

    of achievement.

    Need for Power (n Pow)

    It is the desire to control the behaviour of the other people and to

    manipulate the surroundings. A persons need for power can either be personal or

    institutional. Those who need personal power want to direct others, and this need

    often is perceived as undesirable. Persons who need institutional power want to

    organize the efforts of others to further the goals of the organization.

    Need for affiliation (n Aff)

    Those with a high need for affiliation need harmonious relationships with

    other people and need to feel accepted by other people. They tend to conform to

    the norms of their work group. Individuals with high need for affiliation prefer

    work that provides significant personal interaction. They perform well in

    customer service and client interaction situations.

    2.13.2 Frederick Herzbergs Two - Factor Theory

    Herzberg (1959) proposed the Two Factor Theory (Motivation-Hygiene Theory),

    which is also known as the Dual Structure Theory of job satisfaction. According to this

    theory, people are influenced by two sets of factors.

    Hygiene Factors are needed to ensure an employee does not become dissatisfied.

    They do not lead to higher levels of motivation, but without them there is dissatisfaction.

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    Motivation Factors are needed in order to motivate an employee into higher

    performance. These factors result from internal instincts in employees yielding

    motivation rather than movement.

    Both of these approaches (hygiene and motivation) must be done simultaneously.

    Employers must treat people as best as they can so they have a minimum of

    dissatisfaction. They must use people so they get achievement, recognition for

    achievement, interest, and responsibility and they can grow and advance in their work.

    These factors are:

    Fig. 2.1. Frederick Herzbergs Two - Factor Theory

    (Source: www.onlinejobapplications.biz/motivation-herzberg-two-factor-theory-for-

    employee)

    Herzberg proposed several key findings as a result of this identification. According

    to this theory,

    1. People are made dissatisfied by a bad environment, but they are seldom made

    satisfied by a good environment.

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    2. The prevention of dissatisfaction is just as important as encouragement of motivator

    satisfaction.

    3. Hygiene factors operate independently of motivation factors. An individual can be

    highly motivated in his work and be dissatisfied with his work environment.

    4. All hygiene factors are equally important, although their frequency of occurrence

    differs considerably.

    5. Hygiene improvements have short-term effects. Any improvements result in a short-

    term removal of, or prevention of, dissatisfaction.

    6. Hygiene needs are cyclical in nature and come back to a starting point. This leads to

    the "What have you done for me lately?" syndrome.

    7. Hygiene needs have an escalating zero point and no final answer.

    In summary, the hygiene factor and motivation factor results in the following

    scenarios:

    1. High Hygiene + High Motivation: The ideal situation where employees are highly

    motivated and have few complaints.

    2. High Hygiene + Low Motivation: Employees have few complaints but highly

    motivated. The job is perceived as a paycheck.

    3. Low Hygiene + High Motivation: Employees are motivated but have a lot of

    complaints. A situation where the job is exciting and challenging but salaries and

    work conditions are not up to par.

    4. Low Hygiene + Low Motivation: The worst situation. Unmotivated employees with

    lots of complaints.

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    2.13.3 Abraham H. Maslows Need Hierarchy.

    The intellectual basis for most of motivation thinking has been provided by

    behavioral scientists, Maslow and Frederick Herzberg, whose published works are the

    Bible of Motivation. Although Maslow himself did not apply his theory to industrial

    situation, it has wide impact for beyond academic circles. Douglas McGregor has used

    Maslows theory to interpret specific problems in personnel administration and industrial

    relations. The crux of Maslows theory (Motivation and Personality, 1954) is that human

    needs are arranged in hierarchy composed of five categories. The lowest level needs are

    physiological and the highest levels are the self actualization needs. Maslow starts with

    the formation that as the lower needs are satisfied, higher needs emerge. Higher needs

    cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator.

    This resembles the standard economic theory of diminishing returns. The hierarchy

    of needs at work in the individual is today a routine tool of personnel trade and when

    these needs are active, they act as powerful conditioners of behaviour- as Motivators.

    Hierarchy of needs; the main needs of men are five. They are physiological needs, safety

    needs, social needs, ego needs and self actualization needs as shown in order of their

    importance.

    Fig. 2.2 Maslows Hierarchy of Needs

    ( Source: http://www.abraham-maslow.com/m_motivation/Hierarchy_of_Needs.asp)

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    The above five basic needs are regarded as striving needs which make a person do

    things and it is an excellent model for understanding human motivation.

    Physiological Needs: - The individual move up the ladder responding first to the

    physiological needs for nourishment, clothing and shelter. These physical needs

    must be equated with pay rate, pay practices and to an extent with physical

    condition of the job.

    Safety Needs: The next in order of needs is safety needs. That is the need to be

    free from danger, either from other people or from environment. The individual

    employee wants to be assured, once his bodily needs are satisfied, that he is

    secured and will continue to be satisfied for the foreseeable future. The safety

    needs may take the form of job security. That is security against disease,

    misfortune, old age and industrial injury. Such needs are generally met by safety

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    laws, measure of social security, protective labour laws and collective bargaining

    agreements.

    Social Needs: Going up the scale of needs, the individual feels the desire to work

    in a cohesive group and develop a sense of belonging and identification with a

    group. He feels the need to love and be loved and the need to belong and be

    identified with a group. In a large organization it is not easy to build up social

    relations. However, close relationship can be built up with at least some fellow

    workers. Every employee wants to feel that he is wanted or accepted and that he is

    not an alien facing a hostile group.

    Ego or Esteem Needs: These needs are reflected in our desire for status and

    recognition, respect and prestige in the work group or work place such as is

    conferred by the recognition of ones merit by promotion, by participation in

    management meeting and by fulfillment of workers urge for self expression.

    Some of the needs relate to ones esteem. Examples are the need for achievement,

    self confidence, knowledge and competence. On the job, this means praise for a

    job but more important it means a feeling by employee that at all times he has the

    respect of his supervisor as a person and as a contributor to the organizational

    goals.

    Self Actualization Needs: This upper level need is one which when satisfied

    provide insights to support future research regarding strategic guidance for

    organizations that are both providing and using reward or recognition programs to

    makes the employee give up the dependence on others or on the environment. He

    becomes growth oriented, self oriented, directed, detached and creative. This need

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    reflects a state defined in terms of the extent to which an individual attains his

    personnel goal. This is the need which totally lies within oneself and there is no

    demand from any external situation or person.

    2.13.4 John Stacey (J. S) Adams Equity Theory

    Adams (Job Motivation, 1963) equity theory states that, employees compare their

    job inputs outcome ratio with that of reference. If employees feel that their ratio of inputs

    to outputs is less beneficial than the ratio enjoyed by referent others, then they become

    demotivated in relation to our job and employer. People respond to a feeling of inequity

    in different ways. Some people reduce effort and application and become inwardly

    disgruntled, or outwardly difficult, recalcitrant or even disruptive. Other people seek to

    improve the outputs by making claims or demands for more reward, or seeking an

    alternative job.

    2.13.5 Victor Vrooms Expectation Theory

    Vrooms theory ( Management and Motivation, 1970) is based on the belief that

    employee effort will lead to performance and performance will lead to rewards. Reward

    may be either positive or negative. The more positive the reward the more likely the

    employee will be highly motivated. Conversely, the more negative the reward the less

    likely the employee will be motivated.

    Vroom's Expectancy Theory is based upon the following three beliefs:

    Valence. This is the emotional orientations people hold with respect to outcomes

    (rewards). The depth of the want of an employee for extrinsic (money, promotion,

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    time-off, benefits) or intrinsic (satisfaction) rewards. Management must discover

    what employees value. Expectancy. Here, employees have different expectations and levels of

    confidence about what they are capable of doing. Management must discover

    what resources, training, or supervision employees need. Instrumentality. This is the perception of employees whether they will actually

    get what they desire even if it has been promised by a manager. Management

    must ensure that promises of rewards are fulfilled and that employees are aware

    of that.

    2.14 Summary

    From the discussions it is clear that employees who are satisfied with their work do

    not necessarily mean they are highly motivated employees and vice versa. However one

    cannot rule out the fact that the satisfaction of workers and their will to work are linked to

    some extent by how enriched their jobs are, the job design, level of empowerment,

    training, performance appraisal, incentives, and flexible working hours among others.

    Additionally the relationship between performance and motivation cannot be

    overlooked and organizations who have a desire to be successful must appreciate the

    interrelatedness of the two in fulfilling the aspirations of their employees which is key to

    organizational performance. Furthermore it is important for organizations to put in place

    monitoring systems to assess the needs of employees at all levels in other to develop

    programmes for staff development and to appreciate employee perceptions about the

    conditions under which they work. This can help organizations to stay competitive in an

    era where it is believed that employees who put up high performance are satisfied with

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    their job and are likely to be more committed to organizational goals. In concluding,

    management must strive to incorporate individual employees performance, needs and

    aspirations with organizational goals and leave no stone unturned in finding a fit between

    them.

    There is an old saying you can take a horse to the water but you cannot force it to

    drink; it will drink only if it's thirsty - so with people. They will do what they want to do

    or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory

    tower' they must be motivated or driven to it, either by themselves or through external

    stimulus.

    Are they born with the self-motivation or drive? Yes and no. If no, they can be

    motivated, for motivation is a skill which can and must be learnt. This is essential for any

    business to survive and succeed.

    Self-motivation can go only so far and it needs to be constantly reinforced by rewards. Inparticular, merit must be measured and rewarded regularly, if it is to be encouraged and

    sustained. The 'gold banana' in Foxboro has its origin in just an ordinary banana which one of thepioneers could muster on the spur of the moment when he discovered extraordinary performance

    by one of the employees. Motivating for high performance can cost a lot of money. Not everyonecan be motivated by money alone, however much. Incentive pay plans should be designed

    (Ivancevich, 1983) not only to reward good performance but also to minimize the negative side-effects, such as conflict and grievance. At times it is difficult to develop a valid, equitable and

    acceptable means of performance. Many pay plans fail because of either not being suited to theparticular situation or because of poor implementation.

    Corporate Profile

    As a critical sector of the economy, the Ministry of Health (MOH) in Ghana, seeks

    to improve the health status of all people living in Ghana thereby contributing to

    Government's vision of transforming Ghana into a middle income country by 2015. The

    Ministry of Health, working in partnership with its agencies and stakeholders aims at

    improving the human capital thus, "creating wealth through health" through the

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    development and implementation of proactive policies that will ensure improved health

    and vitality among Ghanaians.

    These policies and strategies are human centered and aim at contributing to the

    socio economic development of the country by ensuring access to quality health,

    population and nutrition services for all people living in Ghana and by promoting the

    development of the local health industry. The Ministry of Health also ensures that

    services are delivered in a humane, efficient and effective manner by well-trained,

    friendly, highly motivated, and client-oriented personnel.

    Mission Statement

    The Ministry of Health has specific mandate to access and monitor the country's

    health status, advise central government on health policies and legislation, formulate

    strategies and design programmes to address health problems of the country, and

    implement, monitor and evaluate (in collaboration with other related sectors and

    agencies) all health programmes and activities in the country.

    As a policy, the MOH is to maximise the potential health life years of all

    individuals resident in Ghana by reducing the incidence and prevalence of illness, injury

    and disability, and the prevention of premature death.

    Objectives of MOH

    To address the inequalities between and within regions and districts emergency

    care, diseases eradication, elimination, financing policy and health insurance,

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    chemotherapy and HIV/AIDS and quality care. The Ministry of Health has identified

    seven priority areas. These are HIV/AIDS and sexually transmitted Diseases, Malaria,

    Guinea Worm, Tuberculosis, Reproductive and Child Health, Expanded Programme of

    Immunisation, and Emergency care.

    Achievements by MOH

    i. Increased Out Patient Department (OPD) visits per capital.

    ii. Decreased under 5 malaria case fatality rate

    iii. Increased Tuberculosis (TB) treatment success rate.

    iv. Increase in number of people on Anti-Retroviral Therapy (ART).

    v. Number of guinea worm cases declined by 85%.

    vi. Proportion of guinea worm cases contained 85%