Effect of Motivation on Performance of Employees in Privately Owned Firms: A Case Study of Mt. Longonot Medical Services Ltd, Kenya

Abstract

Organizations in the modern world consistently strive to succeed in a highly competitive global market environment. However many organizations have not been able to develop strategies which offer competitive advantage and therefore find it difficult to cope with the emerging competitive threats. Managers should put in place good policies to avert the strong competitive forces. Poor management of human resource facilitated by lack of motivational policies are some of the problems most organizations face. Employers today would like to have their workers motivated and ready to work but do not understand what truly motivates a person.  This study explored the effect of motivation on performance of employees in privately owned firms, a case study of Mt. Longonot Medical Services Ltd. The objectives for this study were: to determine the effect of financial motivation on employee’s performance, and to evaluate the impact of non-financial motivators (e.g. job security, recognition and appreciation, promotion and growth, communication and decision making involvement, good working conditions, tools and equipment) on employee’s performance. This study was looking for answers to such questions as to whether financial motivation has an impact on the employees’ performance and whether non-financial motivators affect the employee output. This research was premised on the motivational theories and emphasized on the Maslow’s Hierarchy of needs theory. The research design was a survey and the target population constitutes sixty individuals. Questionnaires were used as the data collection method. Stratified sampling procedure was applied as well. Randomly selected samples of sixty respondents participated from an entire population of two hundred employees. The research was validated using triangulation and member checking approaches. Regression was used; SPSS model of data analysis was employed as a statistical techniques. This research highlighted the expected effects of employee motivation and established whether motivation boosts employee performance. The research is important in that it adds knowledge to the area of strategic human resource management which is of great value to managers, organizations and the government. The study is significant because it would help organizations identify and apply motivational policies to ensure high productivity for achievement of the organizational goals. The researcher suggests a more competitive remuneration, job security and promotion, equitable and fair staff development, provision of adequate tools and equipment, decision making involvement, enhancing effective communication and providing good working conditions