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Transcript of Sheba Final Work
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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
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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
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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.
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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
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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.
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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
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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.
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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,
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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.
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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
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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.
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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
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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
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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
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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
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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
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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.
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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.
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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.
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(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.
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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
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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).
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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.
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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.
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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
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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.
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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
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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.
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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.
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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,
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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
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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.
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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
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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
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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%)
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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
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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
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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
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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
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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
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*
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
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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
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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
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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
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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
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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.
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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
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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
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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.
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