EMPLOYEE MOTIVATION INCENTIVES AND THEIR EFFECT ON THE ORGANIZATIONAL PRODUCTIVITY: THE CASE OF ELSA KOLO HOME MADE PRODUCTS PRODUCER AND DISTRIBUTOR

Abstract

In today’s highly competitive business environment, organizations are expected to motivate their employees to meet organizational objectives. The purpose of the study was to examine the effect of employee motivational incentive on the organization productivity in the case of Elsa kolo homemade product producer and distributer. The researcher adopted explanatory research design to explain, understand and predict the cause and effect relationship between variables. A self-administered questionnaire applied in order to gather primary data from survey respondent. Survey was conducted on 215 employees of the case organization out of which 204 questionnaires were responded and used for further analysis. Data were analyzed via descriptive statistics (percentages, frequency, mean and standard deviation) as well as inferential statistics (correlation and regression analysis). The finding of the study showed that, all employee motivational factors have positive relationship or correlation with organization productivity. Moreover, the findings of regression analysis revealed that extrinsic factors were considered to have more significant effects on organizational performance than intrinsic factors. From the hypotheses tested, the result indicated that employee motivation has a significant effect on organizational productivity. Therefore, this study recommended that organizations should figure out factors that motivate their employees and seek ways of ensuring their performance level. The more employees are motivated the better the organizational performance will be.