Final Paper
Final Paper
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
BY
JUNE, 2016
ADDIS ABABA, ETHIOPIA
ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
BY
FITSUM TSEGAYE
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BOARD OF EXAMINERS
ADMINISTRATION.
______________________________ ________________________
______________________________ ________________________
ADVISOR
______________________________ ________________________
EXTERNAL EXAMINER
______________________________ ________________________
--------------------------------------------- --------------------------------
Name Signature and Date
St. Mary’s University, Addis Ababa JUNE, 2016
ENDORSEMENT
This thesis has been submitted to St. Mary’s University, school of
Graduate Studies for examination with my approval as a university
advisor.
ACRONYMS……………………………………………………………………………………...ii
LIST OF FIGURE…......................................................................................................................iv
ABSTRACT…………………………………………………………………………………...…..v
REFERENCES…………………………………………………………………………………..44
APPENDICES…………………………………………………………………………………...49
ACKNOWLEDGEMENT
First and for most I have to thank the almighty God for everything he has done for me. Next, I
would like to express my heartfelt gratitude to my advisor Worku Mekonen (PhD) for his fruitful
guidance and constructive suggestion in organizing, structuring and completing this thesis. My
special thanks also goes to all the pharmacists working at Addis Ababa Health Bureau Office of
Kenema Pharmacies for their constant help during questionnaire filling, interview and other
supports provided for the success in completion of this paper.
Last but not least my deepest appreciation goes to all my families especially my Mam and Dad
for their unlimited support in my life.
i
List of Acronyms
iii
List of Tables
Table 4.2 Description of the marital status vs. education level of respondents …………………28
Table 4.5 Analysis of financial rewards by mean and standard deviation ……………………..31
Table 4.6 Analysis of non-financial rewards by mean and standard deviation …….…………..32
Table 4.7 Analysis of motivation level by mean and standard deviation ………………………34
Table 4.8 Analysis of job safety by mean and standard deviation …………………….………. 35
The research was conducted in pursuit of identifying employee motivational practices at Addis
Ababa Regional Health Bureau office of Kenema Pharmacies. Descriptive research design was
employed for data analysis; sample units were selected using purposive sampling method, and
pharmacists working in different branches were taken as sample. The result indicated that the
application of financial and non-financial rewards were very low. The study also showed that
there was no good job safety; moreover, pharmacists were not motivated to stay in the
organization for long period of time. In addition to this, interesting job, work environment and
Salary increment were the most effective motivational factors which helps to increase employee
productivity, employee work efficiency and employee loyalty. However, each organizations
internal environment, rules and regulations and policies are different hence, results are also
varies as per organizations. Most of the factors are within the controls of the organizational
management and can as such be exploited by the management in order to boost the levels of
employee motivation. To enhance staff motivation, the administration should take measures to
improve work conditions, raise work reward and pay more attention to the professional
development of their employees.
Key words: Addis Ababa Health Bureau office of Kenema Pharmacies, Employee motivation
practice, Motivation, Pharmacist,
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CHAPTER ONE
1. INTRODUCTION
This research is designed to assess the employee motivational practices at Addis Ababa Health
bureau office of kenema pharmacies; basically the paper has five chapters; chapter one includes
the introduction part, chapter two incorporate reviews of literature, chapter three discuss about
the methodology part, and chapter four and five deals about data analysis and conclusion part
respectively.
Motivation has long been a central topic for scholars and practitioners. An abundance of theories
and approaches were developed in order to explain the nature of employee motivation. Another
handful of studies were conducted in an attempt to discover whether employees have different
motivation antecedents than their private sector counterparts (Reem, 2011).Within current
dispensation organizations are now realizing that their accomplishments are dependent on their
capabilities to create a center of attention, develop and hold on to talented employees. The future
of the organization’s capabilities to create a center of attention, develop, and hold on to a talented
work force will be a significant factor in developing a high-performance organization (Sims,
2007).
Motivation is the catalyst that spurns employees' eagerness to work without pressure. To
motivate is to provide employees with a motive to do some tasks. It is to cause or provoke
somebody to act either positively or negatively (Sunita, 2012). To say that nobody can motivate
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employees at work is like saying there are no influential leaders, that there are no effective
managers, that there are no motivational speakers, that the psychologists in sports management
teams are useless and that motivation is not achievable. Motivation has been used by effective
managers to prompt ordinary people to achieve uncommon results in all fields of endeavors
(Sunita, 2012).
Notwithstanding the fact that motivation is very important to determine employee’s ability so do
other factors such as the resources given to an employee to do his or her job (William, 2010).
According to Jones & George, (2003), cited on Ayam et al. (2012) even with the best strategy in
place and appropriate organizational architecture, an organization will be effective only if it
members are motivated to perform at a high level. Contemporary research and observations show
that well motivated employees are more productive and creative towards achieving company or
organizational goals. On the other hand less motivated employees are less performant and tend to
divert from attaining organizational goals. Motivation as incentive systems are fundamental to
developing capacities and to translating developed capacities into better performance (William,
2010).
Health care workers are commonly described as being intrinsically motivated; the literature on
health care is full of references to terms such as professionalism, esteem and caring. At the same
time, all health systems invest significant resources in regulation and quality assurance, thereby
declining to leave quality up to the caring instincts of providers (Brock & Leonard, 2012). As
causes for retention are likely to be rooted in both personal and work-related factors, strategies
must address these multiple causes simultaneously. Interventions can take place at the macro or
health-system level, such as human resource policy and planning, rural recruitment and training
and bonding. They can also take place at micro or facility level, aimed at improving job
satisfaction by addressing working conditions, providing incentives and offering professional
development. Interventions can also aim to improve the living conditions of individual workers,
or address the needs of specific groups (Dieleman & Harnmeijer, 2006).
Human resources determine the use of other available resources. They are the most important
category of the health systems inputs (WHO, 2000). Despite of the importance, human resource
management systems are facing serious problems in developing countries (Adano, 2006).
Evidence suggests that the inheritance of constant under-investment in human resources could
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lead to the underperformance of health systems (Razee et al., 2012). Therefore, health worker
retention is crucial for health system performance (Willis-Shattuck et al., 2008). There is a wide
range of reasons why health workers leave their jobs, and financial reasons are often not the only
reasons. Factors are also likely to be interrelated and their influence on health providers depends
on the political, socioeconomic and cultural environment (Dieleman & Harnmeijer, 2006).
Therefore, this research was conducted to assess employee motivational practices of Addis
Ababa Health Bureau offices of pharmacies.
According to Azar and Shafighi, (2013) cited on Zameer et al. (2014) today organization can
easily change their material, needs, goods and services to other organization, or to other
countries. But the only one resource which is not easily exchangeable is human resources. So we
can say that human resources are the very important or most competitive assets of any
organization that cannot be exchangeable. Human resources or human assets mean the workers
or the employee of any organization. So the motivation is main factor that affect the human
resources of the organization. The organization should be motivating their employees for the best
performance or for achieving the organizational goals. In fact motivation is the best tool for best
performance.
A variety of factors motivate people at work, some of which are tangible, such as money, and
some of which are intangible, such as a sense of achievement (Spector, 2003). Although
employees derive satisfaction from their work, places of work, and for different reasons. This
study was concerned specifically with employee motivation practice associated with the
incentive culture of the organization. The primary point of departure is that the success of any
organization is heavily dependent on the inputs of its workforce, and that such inputs are
determined to a large extent by personal characteristics, and by those facets of people’s work
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environments that motivate them to invest more physical and mental energy into their work. In
this way the organization’s objectives are pursued and met. Motivation are therefore regarded as
key determinants of organizational success which are influenced by aspects of organizational
motivational incentive culture (Roos, 2005).
Companies and organizations of all sizes, large, medium or small are offering performance based
incentives and rewards to keep their staff motivated. More and more companies are offering long
service bonuses to retain skilled and competent staff and to minimize the rates of staff turnover.
Any army that is not sufficiently motivated cannot win a war against its enemies. Similarly, a
work force which is not sufficiently motivated cannot meet the objectives of its organization
whether the organization is a profit making organization or a not-for profit organization (Suliman
& Al-sabri, 2009). Keeping the above rational in mind, it is found necessary to assess the
motivational packages given by Addis Ababa Health Bureau offices of pharmacies. Therefore,
this research was conducted to assess the pharmacist’s motivational packages in the organization.
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To identify determinant variables for pharmacist motivation in Addis Ababa Health
Bureau office of kenema pharmacies.
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CHAPTER TWO
Motivation is essential to almost any aspect of life. Nature has an intrinsic motivation; it does
what it does in and out of itself, without further reflection. What difference with human activity!
There are few humans on this planet who don’t question or reflect on their motivation for certain
tasks every day (Ball, 2013)
Motivation depends on the human's will to act in a certain way. Motivation represents the
internal state of the employee who guides and directs its behavior by meeting certain
requirements. The employee's motivation depends on the influence behavior. Once aware of this,
the chance of achieving better results at both organizational and individual levels. Managers
cannot order their employees to be motivated, what they can do instead, is to create an
atmosphere through which to cultivate accountability, dedication and improvement at work.
Some managers choose a shorter path, but not effective- they try to motivate through fear. This
method, however, quickly loses the effect. True managers motivate trough their personality and
authority, not trough fear (Neagu, 2014).
Motivation is a Latin word meaning ‘to move’. Motivation presents that unsatisfied needs which
creates a state of tension or disequilibrium, causing the individual to move in a goal-directed
pattern towards restoring a state of equilibrium by satisfying the need. Motivation implies any
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emotion or desire, which so conditions ones will that the individual is properly lead into action.
Performance results from the interaction of physical, financial, human resources. The first two
are inanimate; they are translated into “productivity” only when the human element is
introduced. However, the human element interjects a variable over which a management has a
limited control. Motivating employees involves more than simply offering rewards to submitter
if their suggestion is put to use (Shahzad, 2013).
Considerable research has been conducted regarding the definition of motivation. According to
(Dessler, 1980) “motivation is both one of the simplest and most complex of management jobs.
It is simple because people are basically motivated or driven to behave in a way that they feel
leads to rewards. So motivating someone should be easy: just find out what he or she wants and
hold it out as a possible reward”. Daschler & Ninemeier, (1989) said “Motivation is a state or
force within an individual that makes the employee act in a way designed to achieve some goal.
Taking this broad definition and putting it into the context of supervision in the hospitality
operation, we might say that motivation is what the supervisor does to encourage and influence
other people to take necessary action”.
According to Kast and Rosenzweig (1985, 296) cited on Pardee, (1990) a motive what prompts a
person to act in a certain way or at least develop an inclination for specific behavior.
Motivation" can be defined as those forces within an individual that push or propel him to satisfy
basic needs or wants (Yorks, 1976).
Motivation involves a constellation of beliefs, perceptions, values, interests, and actions that are
all closely related. As a result, various approaches to motivation can focus on cognitive
behaviors (such as monitoring and strategy use), non-cognitive aspects (such as perceptions,
beliefs, and attitudes), or both (Lai, 2011).
Bartol & Martin, (1998) consider motivation a powerful tool that reinforces behavior and triggers
the tendency to continue. In other words, motivation is an internal drive to satisfy an unsatisfied
need and to achieve a certain goal. It is also a procedure that begins through a physiological or
psychological need that stimulates a performance set by an objective.
As compared to financial resources, human resources have the capability to create competitive
advantage for their organizations. Generally speaking, employee performance depends on a large
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number of factors, such as motivation, appraisals, job satisfaction, training and development. As
Kamalian et al. (2010) suggested, a motivated employee has his/her goals aligned with those of
the organization and directs his/her efforts in that direction. In addition, these organizations are
more successful, as their employees continuously look for ways to improve their work. Getting
the employees to reach their full potential at work under stressful conditions is a tough challenge,
but this can be achieved by motivating them.
According to Dubin (2002), cited on Abonam, (2011) “Motivation is the complex of forces
starting and keeping a person at work in an organization. Motivation is something that puts the
person to action, and continues him in the course of action already initiated”. Further, he
elucidate motivation refers to the way a person is enthused at work to intensify his desire and
willingness to use his energy for the achievement of organizations objectives. It is something that
moves a person into action and continues him in the course of action enthusiastically.
Two major postulates can be derived from Maslow's need hierarchy. They are:
1. A satisfied need is not a motivator of behavior.
2. To the extent that lower-order needs become satisfied, the next higher-order level of
needs becomes the most proponent determinant of behavior (Hamner & Organ 1978,
139).
The extent that jobs incorporate elements that satisfy some higher order human needs determines
their potential for motivating workers (Imel 1982, 3).
Herzberg used the term "hygiene" in the medical sense- the sense that it operates to remove
hazards from the environment (Duttweiler, 1986). Herzberg identifies and compares the
dynamics of hygiene and motivation as illustrated below.
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The Dynamics of Hygiene
The psychological basis of hygiene needs is the avoidance of pain from the
environment
There are infinite sources of pain in the environment
Hygiene improvements have short-term effects
Hygiene needs are cyclical in nature
Hygiene needs have an escalating zero point
There is no final answer to hygiene needs
According to Herzberg, hygiene cannot motivate, and when used to achieve this goal it can
actually produce negative effects over the long run. A "hygienic" environment prevents
discontent with a job, but such an environment cannot lead the individual beyond a minimal
adjustment consisting of the absence of dissatisfaction. A positive "happiness" seems to require
some attainment of psycho-logical growth (Herzberg, 1966).
The hygiene’s have always been and probably always will be easier to measure, control, and
manipulate than the motivators. The motivators are more complex and subjective, and often too
elusive to measure. But to the extent that management concentrates on hygiene’s, while at the
same time neglecting motivators, workers are probably going to seek more of the hygiene’s
(Hamner & Organ, 1978). This has a negative effect on developing a motivated workforce.
The proper management of hygiene is an important first step in applying Herzberg's two factor
theory, which is shown in a five part process a shown below.
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1. Identify type of hygiene
Fig. 1.The five rules for administering hygiene (Herzberg 1976, 93).
The fact that job satisfaction is made up of two unipolar traits is not unique, but it remains a
difficult concept to grasp. The opposite of job satisfaction would not be job dissatisfaction, but
rather no job satisfaction; similarly, the opposite of job dissatisfaction is no job dissatisfaction,
not satisfaction with one's job (Herzberg, 1976).
Herzberg also says, "A deprivation in hygiene factors can lead to job dissatisfaction, but their
amelioration does not lead to job satisfaction." (Herzberg, 1976). Hersey describes hygiene
saying, "Hygiene factors, when satisfied, tend to eliminate dissatisfaction and work restriction,
but they do little to motivate an individual to superior performance or increased
capacity."(Hersey & Blanchard, 1982).
There are three primary psychological states that significantly affect worker satisfaction:
1. Experienced meaningfulness of the work itself
2. Experienced responsibility for the work and its outcomes
3. Knowledge of results, or performance feedback
The more that work is designed to enhance these states, the more satisfying the work will be
(Wallace et al., 1987 and Burke, 1987).
The dimension of job dissatisfaction differs psychologically from job satisfaction, but it is also
associated with an escalation phenomenon, or what some have called the principle of (rising
expectations): the more people receive, the more they want (Burke, 1987).This clarifies
Herzberg's escalating zero point statement. Mathis said it this way, "Hygiene factors provide a
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base which must be carefully considered if dissatisfaction is to be avoided. But, even if all of the
maintenance needs are taken care of, the people will still not necessarily be motivated to work
harder." (Mathis & Jackson, 1979).
Herzberg suggests that factors that lead to job satisfaction are primarily intrinsic, whereas factors
leading to job dissatisfaction are primarily extrinsic. The cluster of intrinsic factors was found to
include the work itself, achievement, advancement, recognition, and responsibility. The cluster
of extrinsic factors was found to include supervision, interpersonal relations, working conditions,
salary, company policies, and administration (Caston & Braoto, 1985).
The need for achievement involves the desire to independently master objects, ideas and other
people, and to increase one's self-esteem through the exercise of one's talent (Wallace et al.,
1987). Based on research results, McClelland developed a descriptive set of factors which reflect
a high need for achievement. These are:
1. Achievers like situations in which they take personal responsibility for finding solutions
to problems.
2. Achievers haw, a tendency to set moderate achievement goals and take "calculated risks."
3. Achievers want concrete feedback about how well they are doing (McClelland &
Johnson, 1984).
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2.2.4. Douglas McGregor: Theory X/Theory Y
McGregor’s theory, which is built on Maslow’s theory, adds a central idea: that manager’s
assumption about their employees can affect their motivation. This theory proposes two
alternative and extreme views to see the human being: Theory X and Theory Y. According to
Theory X the employee is viewed as mainly negative, lazy, resist change and unable to motivate.
This produces a controlled environment with strict rules, threats and punishments. Employees in
an organization like this tends to perform less effectively, give low productivity, produces
aggressions and conflicts (Bolman et al., 1997). Theory Y on the other hand strives to maximize
the employee’s individual goals and efforts by giving workers greater job involvement and
autonomy.
This means that employees are given the possibility to grow and achieve their own goals within
the organization. Employees are viewed as positive and open to development. Management’s
goal is to make the employee happy and satisfied with their work and performance (Bolman et
al., 1997; Matteson, 1999).
Taken not too literally the theory can provide a useful tool for motivation and management
research (Shah and Shah, 2007). In addition, these theories remain as a guiding principle of
positive approaches for management, to organizational development and to improve
organizational culture.
McGregor suggested that there exist two sets of employees (lazy and ambitious employees) with
lazy employees representing theory X, hard and ambitious workers representing Y. According to
him, the lazy employee should be motivated to increase performance in an organization.
This discussion on the above motivational theories explains the fact that the concept of
Employee’s motivation has been a critical factor addressed by previous authors as what
determines the core competence of every organization in achieving a competitive position.
Skinner who propounded that any behavior that is rewarded tends to be repeated supported this
view. The term motivation has been used in numerous and often contradictory ways. Presently
there appears to be some agreements that the crucial thread that distinguishes employee’s
motivated behaviors from other behavior is that it is goal directed behavior (Bindra, 2000)
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2.3. Contemporary Theories of Motivation
Thus, part of the attractiveness of rewards in a work context is the extent to which they are seen
to be comparable to those available to the peer-group. Such thinking, however, is best applied to
extrinsic rewards, such as pay, promotion, pension arrangements, company car and similar
benefits, since they (a) depend on others for their provision, and (b) have an objective truth about
them. Equity theory cannot apply in the same way to intrinsic rewards, such as intrinsic job
interest, personal achievement and exercise of responsibility, which by their very nature are
personal to the individual, entirely subjective, and therefore less capable of comparison in any
credible sense.
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which the individual has little or no control. Kelley (1972) cited on Abonam (2011) suggests that
when people make attributions, they do so with three major criteria in mind: Distinctiveness,
Consensus and Consistency. In case of the internally caused behavior, we would be likely to
draw the conclusion that this person was unmotivated individual who dislike his job, and
therefore ‘chose’ to be late. Where the behavior was seen as essentially caused by external
factors, we would likely to conclude that this was a one-off event caused by circumstances
outside his control, such as a major traffic hold-up in route to work. This attribution may be true
reflection of particular person behavior or not because human behavior is said to be
unpredictable from the on sett of creation and therefore call for appropriation ways of motivating
the work force to increase productivity. That aside, the taste and preferences of the employees
are not uniform and therefore differ from worker to worker.
Strict Reinforcement Theory would argue that an individual’s own understandings, emotions,
needs and expectations do not enter into motivation, which is purely about the consequences of
behavior. However, modifications of the theory (e.g. Social Learning Theory) do allow for the
effect of individuals‟ perceptions of the rewards/punishments obtained by others as a contributor
to motivation. Thus, an employee is not just affected by the consequences of his own actions at
work, but is able to infer „appropriate‟ behavior from what he sees as the consequences for
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others of their behavior. Reinforcement Theory is not basically concerned with what motivates
behavior, or how, and is not strictly a theory of motivation. It is more concerned with control of
behavior (i.e. power over others). Supporters of Reinforcement Theory (Jablonsky and De Vries,
1972) offer some important guidelines to those intending to use it as a motivating tool in the
workplace.
The underlying assumption behind this approach is that people are there to be controlled, and
that management’s task is to provide the ‘right’ conditions to encourage high performance. This
is not quite such a negative view of people as is suggested by McGregor’s concept of human
motivation (McGregor, 1960).
The core of this theory relates to how a person perceives the relationships between three things
that is effort, performance and rewards. Vroom (1964) proposes that people are motivated by
how much they want something and how likely they think they are to get it. He suggests that
motivation leads to efforts and the efforts combined with employees’ ability together with
environmental factors interplay to determine performance. This performance in turn leads to
various outcomes, such of which has an associated value called valence. The three key factors
are based on the individual’s perception of the situation. These are:
Expectancy; which is the extent of the individual’s perception, or belief, that a particular
act will produce a particular outcome.
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The instrumentality is the extent to which the individual perceives that effective
performance will lead to desired rewards and
Valence which is the strength of the belief that attractive rewards are potentially available
(Gole, 2004)
It is important to note that Vroom distinguishes ‘valence’ from ‘Value’. He does so by defining
the former in terms of the anticipated satisfaction the individual hopes to obtain from the
outcome or reward, and by defining ‘value’ in terms of the actual satisfaction obtained by the
individual. According to Vroom the three factors that is, Expectancy, Instrumentality and
Valence combine together to create a driving force, which motivates an individual to put in an
effort, achieve a level of performance, and obtain rewards at the end.
It is prudent to note that, effort alone may not necessarily lead to effective performance. Other
factors are involved, such as the individual’s own characteristics and the way in which he
perceives his role. For example, the prospect of promotion could be seen by a newly appointed
employee as an attractive prospect, but his expectancy of gaining promotion could be low, if he
perceives that promotion is attained primarily on length of service. In such a situation,
performance does not lead to rewards, so effort in that direction is not seen as worthwhile. These
analyses clearly show that individual worker’s expectancy of returns for a job performed vary
and which has become a problem of management as to which is the satisfactory way of
motivating workers for a good job done.
It can be said that people are the only scarce resource companies have which other competitors
cannot copy. Based on this point of view investment on employees should be of high importance
to the companies which have understood the real gains they can retrain from their unique
employees (Jensen et al., 2007). Markova & Ford (2011) mentioned that the real success of the
companies originate from the employees’ willingness to use their creativity, abilities and know-
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how in favor of the company and it is the organization’s task to encourage and nourish these
positive employee inputs by putting effective reward practices in place.
The aim of rewarding employees for the work they have done is to motivate, commit, develop
employees and attract new employees. Rewarding practices are not out of context; those are
linked to the internal organizational culture, wider culture outside of the organization referring to
the pay levels and benefits offered by the other companies, and the emphasis management is
putting on reward practices (Armstrong, 2009).
When money is used to recognize the employees for the good work done it sends wrong signals
to the employees; the emphasis put on monetary rewards drives employees to reach for
individual gains and reduces team work (Nelson, 2004). Gupta & Shaw (1998) also
acknowledged the signals monetary rewards send to the employees but they appealed humans to
be ‘cognitive processors’ who understand the signals management is sending by rewards;
rewarding shows employees what kind of behavior is valued.
Kohn (1993) stated that monetary rewards are at their best creating temporary compliance
meaning that money motivates us as long as we get another pay increase. Temporary compliance
refers to the short sighted value it manages to add in individual’s motivation. Once a pay
increase is received it motivates for a short period of time until motivation is again declined and
employees start to wait for another pay increase. He said that: “promising a reward to someone
who appears unmotivated is a bit like offering salt water to someone who is thirsty.” The
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criticism he presented against using money as a motivator is that money do motivate employees
to get more money.
Non-financial rewards play important role to satisfies and motivate the employees. Non-financial
rewards involve promotion, job enrichment and job autonomy. Monetary rewards give
considerable levels of employee satisfaction at some or no cost. Employees are more likely to be
motivated and satisfied through the use of non-monetary rewards. Non-financial Rewards have
been a key element in improving employees’ satisfaction, in order to increase productivity as
well as sustain competitive advantage (Cantt, 2012).
There is large amount of literature available about rewards and employee satisfaction. Pragya
(2008) described the relationship between non-financial rewards and employees satisfaction and
told that non-monetary rewards increase the satisfaction of the employees. Dambisya (2007)
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investigated that the use of nonfinancial incentives for health worker leads to satisfaction of
employees. Danish & Usman (2010) revealed that human resources are the most essential area
among all the resources of organization. Competent and knowledgeable personnel in an
organization are very essential in overall performance of an organization. Motivated employees
can help and make an organization competitively more value added and cost-effective. He also
originate that different degree of work motivation and satisfaction are considerably linked and
reward and recognition have great influence on motivation of the workers, and if the worker is
motivated than it would increase his job performance, which leads to job satisfaction.
Tippet & Kluvers (2009) established that non-financial rewards are the helpful instrument to
enhance the satisfaction of the workers. Stovall (2003) conducted research on non-financial
rewards and worker job satisfaction and research told that an effective reward package could
have an important impact on the employee’s performance. They explained that non-financial
rewards motivate workers which lead to job satisfaction. Douglas et al. (1991) had concluded
that the old workforce is more satisfied with their job rewards than young workers.
According to Jensen et al. (2007) it is the intangible rewards which determine why an employee
would choose one company over another when tangible rewards are given the same. This is a
way how companies can really stand out of the crowd by the use of the attractive rewards.
Armstrong et al., (2010) admit that reward management can never be totally 100 per cent
scientific or 100 per cent right. The challenge is to find the best fit practice for your organization.
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They also emphasized the importance of tailoring the reward programs to suit individual needs at
the organization as many of the reward programs fail if the ‘one-size fits all’ approach is used
without careful consideration and implementation. Jensen et al., (2007) said that the “best-
practice” regarding the reward programs is simply the one which suits your organization.
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managers’ support and good working relations with colleagues. Given the results of the study
strengthening managerial capacity in health services should be emphasized in order to increase
motivation of health workers. Considering the negative impact of perceived unfairness on
motivation, managers must apply personnel policies fairly on day to day basis, communicate
appropriate information about equity to all employees and act in a transparent manner. Also,
more attention needs to be given to developing a fair and objective performance appraisal system
and implementing supportive supervision strategies.
Leshabari et al., (2008) employed descriptive research design to assess motivation of health care
workers in Tanzania: a case study of Muhimbili national hospital. The result showed that low
salary levels, the frequent unavailability of necessary equipment and consumables to ensure
proper patient care, inadequate performance evaluation and feedback, poor communication
channels in different organizational units and between workers and management, lack of
participation in decision-making processes, and a general lack of concern for workers welfare by
the hospital management were amongst the contributing factors for low motivation of the
employees.
Wiese & Coetzee (2013) used a descriptive approach of likert scale in order to analyze the
importance of non-financial motivators to pharmaceutical sales representatives; and they found
out that good relationship with customers and being well informed were the two most important
non-financial motivators. The study also showed that demographic groups differ in the
importance they attach to non-financial motivators. Having power over other people’ was a more
important motivator for sales representatives with a lower educational background. Furthermore,
growth and promotion opportunities were more important to males, while differences were found
between various age groups and the importance they attached to flexibility of their job.
Nandanwar et al., (2010) used descriptive and causal research design in order to assess the
intervening factors affecting the relationship between incentives and employee motivation: a
case study of pharmaceutical manufacturing organization in India Mumbai. Accordingly, they
found that monetary and non-monetary incentives schemes had a great impact on employee
motivation. But it was also observed that but the similar incentives in an organization can
motivate some section of employees while some other employees get deeply de-motivated. The
study was an attempt to understand which the factors that are intervening the success of
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incentives towards positive employee motivation. The study also revealed that the types of
incentives employee’s age and gender were important intervening variables. Designation and
background of employee did not have significant impact on employees’ motivation.
Such review is very important in identifying missing gaps of the earlier studies and suggests
hypothesis that can be tested empirically. Changes are taking place on the extent of employee
interest and motivational practices of organizations. Hence, conducting such studies in different
localities and organizations at different times is very help full to capture the extent and effects of
the changing situations.
23
CHAPTER THREE
3. RESEARCH METHODOLOGY
The research method is a strategy of enquiry, which moves from the underlying assumptions to
research design, and data collection (Myers, 2009). Accordingly this chapter specifically
contains the type of research design, population and sampling design, research instrument and
data analysis technique.
24
the appropriate target population. The quality of samples selected by using this approach depends
on the accuracy of subjective interpretations of what constitutes a typical sample (Ross, 2005).
Accordingly the study covered only those employees working as pharmacist and branch
managers (who are also pharmacists). Hence, it was not consider the views and opinions of other
employees like administrative staffs. This is because most of the job burdens like purchasing of
pharmaceuticals, arrangement on shelves, dispensing and consulting the patient, lie only on the
pharmacists; so that the researcher selects only the pharmacists as a sample purposively.
n=
Where, n is the sample size, N is the total population or sampling frame, and e is the level of
precision (the value of e = 0.05).
n= 79 . . = 66
1+79(0.05)2
25
26
3.3. Research Instrument and Data Collection
Both primary and secondary data were gathered. Primary data was collected from pharmacists
using semi-structured questioner and interview; and the secondary data were taken from different
books, journals and previous studies. Furthermore, the instrument used in this study was a semi-
structured questionnaire that was designed by the researcher. The questionnaire comprises two
(2) parts or sections; with section “A” comprising five (5) items seeking demographic data such
as age, sex, marital status, level of education etc. Section “B” consists of thirty three (33) items,
which sought to collect information about the employee motivation practices.
27
CHAPTER FOUR
28
Table 4.1 Description of age vs. sex of respondents
Sex of Respondents
Age of Respondents Male Percent Female Percent Total Percent
18-30 13 50 28 70 41 62.12
31-45 11 42.30 10 25 21 31.81
46-55 2 7.69 2 5 4 6.06
29
4.1.3. Working Experience of Respondents
This sub topic describes the working experience of respondents; hence, more than 74 percent of
respondents had experience of 1 to 5 years; 16.7 percent had 6-10 years of working experience,
and the rest 9.1 percent had a working experience of 11-20 years (Table 4.3). Based on the
analysis majority of the pharmacists who work for this organization were young as well as a new
for the organization. Furthermore, it implies that the organization filled with young and new
professionals.
11-20 6 9.1
Total 66 100.0
30
was only financial motivational package in the organization, the same (10.6 %) amounts of
respondents also confirmed that only non-financial rewards were applied in the organization
(Table 4.4). The analysis indicates the pharmacists are not happy with the type and application of
motivational packages; further this may had a direct effect on the organization.
31
otherwise it is sure that the pharmacist leave the organization at any moment of time when a
slight different opportunity come.
It is needless to say in current competitive business world the most important precious asset of an
organization is human power; therefore, any organization need to be take care of their employees
in controlling their motivation and productivity. One of these techniques was providing financial
rewards for its employees; in line with this, in Addis Ababa Health Bureau Office of Kenema
Pharmacies the practice of financial reward system was very low, this may make the employees
off course to search another option and better opportunities. Hence, the organization need to be
sure most of the pharmacists leave the organization at any moment of time unless it makes some
amendment on it financial reward policies.
32
There were 8 items under non-financial rewards; and its grand mean score was 3.022 with a
standard deviation of 1.33 (Table 4.6). Visibility of the top management scored the highest mean
of 3.47. The items which scored the lowest mean were the feel that the job gives a good status
with the mean score of 2.17. But looking at the grand mean we can conclude that the
pharmacists were not as such happy on non-financial reward policies of the office; the office
need to revise its rewarding policies in order to retain its employees, otherwise it is sure that the
pharmacists leave the organization at any moment of time when a slight different opportunity
came. Furthermore, the analysis indicates only 28.8 percent of the respondents were satisfied
with the non-financial rewards; the rest didn’t
Satisfied, highly-motivated and loyal employees represent the basis of competitive company.
The growth of satisfaction is to be reflected in the increase of productivity, improvement of the
service quality or rendered services and higher number of innovations. Satisfied employees form
positive reference to the employer and thus increase its attractiveness for potential job seekers
and strengthen its competitive position in the market. Management of the organization does not
often know opinions of own employees and underestimates dependence between motivation of
employees and total successfulness of the company in the market. This sub-article brings the
results of the employees’ survey in non-financial rewards, over all with regard to this point it is
possible to generalize that the pharmacist was not happy with the non-financial rewards;
therefore, the office need to see its rewarding policies.
33
4.2.4. Motivation Level of Respondents
One of the objectives of this study was to measure the motivation level of employees with the
intension of in sighting some ways to the organization. The researcher measures this with eight
different questions. Hence, 68.2 percent of the respondents confirmed that the mission statement
of the organization makes them to feel good on the importance of their job; however, 13.75
percent replied the mission statement doesn’t give any sense for them. Apart from this, 39.4
percent agreed that they had all the necessary materials and equipment’s which was needed to
accomplish their day to day activities, as well as their duty; to the reverse, considerable (34.8 %)
amounts of respondents said that all the necessary materials was not there. The analysis
indicates, even though most of the pharmacists understand the reason why they are there,
nonetheless, considerable amount of respondents confirmed that every necessary material was
not provided to them which would help them much to achieve the stated missions of the
organization; this indirectly affect the productivity of the pharmacist in a way that if the
necessary and important resources couldn’t provide to them they may not use their full potential;
and this ultimately reduce the productivity of the organization.
Moreover, consecutively 48.5 and 65.1 percent agreed that they have got the necessary feedback
regarding their work performance and good relationship makes them to discuss openly with their
bosses; conversely, 36.4 percent and 24.3 percent reported that they didn’t get any feedback on
their progress as well as their relation with their bosses didn’t help them to discuss openly with
their superiors. Apparently, 56.1 percent and 51.1 percent agreed that they are free to use their
own method of working and also they had opportunity to innovate and work on their own
initiation. Conversely, 22.7 percent and 30.45 percent confirmed that they were not free to use
their own method to work and also they didn’t have opportunities to work on their own initiation.
In addition to this, 42.4 percent of the respondents agreed on that currently they had good
motivation to stay and work in the organization; unlikely, 37.8 percent didn’t have any
motivation to stay and work in the organization (Table 4.7). Furthermore, the grand mean score
of motivation level was 2.74. Employees have got motivational rewards when they perform well has
score the highest mean of 3.32. The mission of the organization makes employees feel their job is
34
important has the lowest mean score of 2.21. The overall grand mean score was 2.74 (Table 4.7).
Therefore, possibly to say the motivation level of the pharmacists were low to stay and work in
the organization.
The analysis indicates it is not confidently to say the pharmacists are motivated well to stay in
the organization. This is may be because of they didn’t get enough motivational rewards, they
are not free to use their own method of work, and also they were not let to work with their own
initiation. Even if this generalization didn’t represent the whole respondents but considerable
amounts of respondents confirmed this.
35
satisfactory; whereas, 56.1 and 56 percent confirmed these benefits was not sufficient
respectively.
The medical benefits provided in the organization are satisfactory has the highest mean score of
3.68; and Good physical working conditions were provided in the organization has the lowest
mean score of 3.15. Furthermore, the grand mean score for job safety is near to 3.45. From these
it is possible to conclude that the job safety in Addis Ababa Health Offices of pharmacies were
not good.
Organizations that manage safety and health successfully invariably have a positive safety
culture and active safety consultation programs in place. Successful organizations can establish
and maintain a culture that supports safety and health. Practical methods of designing, building,
operating, and maintaining the appropriate systems should be there in order to maintain the
safety of employees. In regard to this the pharmacists are not happy with their job safety such as
on their working condition, job security and medical benefit; this may insight to the organization
to look at it this issues.
1 Good physical working conditions are provided in the organization 3.15 1.522
2 The employees in the organization feel secured in their job 3.36 1.355
3 The retirement benefits available are sufficient 3.62 1.274
4 The medical benefits provided in the organization are satisfactory 3.68 1.267
Job safety 3.45 0.2448
Source: Survey result, 2016
36
15 respondents gave a rank of 7 for fringe benefit, 13 of them gave a rank of 2 for training, 15
respondents gave a rank of 5 for delegation and decision making, 13 respondents gave a rank of
5 for job security, 16 respondents gave a rank of 4 for opportunity for advancement, and 22
respondents gave a rank of 3 for working environment. accordingly, interesting job was the
number one factor which motivate the pharmacists, the factor which take the second rank was the
working environment, the third influential factor was salary, existence of opportunity for
advancement takes the fourth rank, both fringe benefit and decision making takes the 5th rank in
which they both score the same amount and the factors which takes the least rank was training
and job security (Table 4.9).
37
CHAPTER FIVE
5.1. Summary
Employee motivation is vital to the success of organizations. A lack of employee motivation may
cause organizational problems in turnover and retention, morale, and poor productivity. Most
organization are familiar with human resource issue including organizations which involve
pharmaceutical business. Recognition of the problem of employee motivation is the first step the
organization may choose to tackle the problem. There have been numerous studies on employee
motivation, but this issue does not addressed in Addis Ababa city administration office of
kenama pharmacies; therefore, particularly the study was performed to examine current
employee motivational practice.
The purpose of the study was to assess the employee motivational practice of Addis Ababa
health bureau Office of Kenema Pharmacies. In pursuit of this the researcher employed
descriptive research design and also it used five point likert scales to measure the variables;
Furthermore, 66 pharmacists were taken as a sample.
Accordingly, in terms of proportion 60.6 percent of the respondents were male and 39.4
percent were female; out of this 62.1 percent were single, 36.4 percent married and 1.5
percent were divorced. Further, 74 percent of had 1 to 5 years’ experience; 16.7 percent
had 6-10 years’ experience, and 9.1 percent had 11-20 years’ experience.
Two kinds of motivational packages were applied in the organization, financial and non-
financial; this was confirmed by 53 percent of the respondents. But 47 percent of the
respondents confirmed that there were no any kinds of motivational package in the
organization.
Regarding the financial rewards the overall grand mean was 3.85 which are near to 4; this
indicates concerning financial rewards respondents were disagree on the availability of
financial rewards.
38
The grand mean score of non-financial rewards were 3.022; which was almost equal to 3;
since 3 represents neutral, respondents couldn’t decide the availability of non-financial
rewards. This may insight there is some gap on the implementation of non-financial
rewards.
The study also tries to determine the motivation level of the pharmacists; the overall
grand mean of the motivation level was 2.74. This average number fall between agree
and neutral but it slightly close to neutral; this may indicate the pharmacists are not as
such motivated to stay in the organization.
Furthermore, with regard to job safety, the grand mean score for job safety was near to 4
i.e. 3.45; hence, this may indicate the pharmacist almost disagree on the job safety
condition; they are highly dissatisfied with the condition of job safety.
With regard to the employee motivational factors, pharmacists ranked their most to least
important factors which makes them to perform well. From the given eight alternatives
the pharmacists confirmed that interesting job should be given priority from all other
factors, secondly working environment should be comfortable, the third influential factor
was salary, existence of opportunity for advancement takes the fourth rank, both fringe
benefit and delegation and decision making takes the 5th rank and also the factors which
takes the least rank was training and job security.
5.2. Conclusion
39
5.3 Recommendation and Implication
Employers are continually challenged to develop pay policies and procedures that will enable
them to attract, motivate, retain and satisfy their employees. The findings of this study can be
handy tool which could be used to provide solutions to individual conflict that has resulted from
poor reward system. Further, this study provides information which could benefit the human
resources department in better understanding the feelings and needs of the pharmacists. The
human resource director could consider and develop the following factors to respond to the needs
of his employees:
To provide the right motivational factors to employees, the human resources director
should evaluate the needs of employees every year. Based on the finding of this
study the kenema office should make amendment on salary, working environment
and as well as should strive to make their job more interesting.
Management can make a job more interesting by using job design such as job
rotation or job characteristics, because an interesting job is in the first rank for a
pharmacist motivational factors.
Managers of each branch should develop a family atmosphere within the office
Recommendations for Further Studies
Apart from assessing the motivational practices it is very pertinent at this juncture to suggest that
more research should be conducted on the relationship and influence of rewards on workers
performance. It is important for further studies to be carried out in order to do justice to all the
factors that influence workers performance.
40
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45
APPENDICES
QUESTIONER
I would like to express my sincere appreciation and deepest thanks in advance for sharing your
valuable experience and time in completing the questionnaires.
Confidentiality
I would like to assure you that this research is only for the purpose of academic requirement
which is authorized by St. Mary’s University; and the result will not be submitted to other
purposes. Thus, your ideas and comments are highly honored and kept confidential.
You are respectfully required to return the questionnaire to the person who brought to you.
Kind regards,
Fitsum Tsegaye
46
Section A: Personal Information
The following personal information is necessary for validation of the questionnaire. All
responses will be kept confidential. Your cooperation in providing this information will be
greatly appreciated; please select by circling
1. Demographic characteristics of the respondents
1.1. Gender A. Male B. Female
1.2. Age A. 18-30 B. 31-45 C. 46-55 E. above 60
1.3. Marital status A. single B. Married C. Widowed E. Divorced
1.4. Education A. diploma B. Degree C. Masters D. other if any_______________________
1.5. Year of Experience A) 1-5 B) 6-10 C) 11-20 D) 21-30 E) 31-40 F) > 41
2. What are the motivational packages applied in the organization?
A. Financial B. Non-financial C. Both financial and Non-financial D. Non
Section B
This section concerns about your feeling, observation and perception about the
motivational packages implemented or practiced by your organization. Please mark the
appropriate response to indicate your own personal feeling by making tick (√) on the
following scale:
SA = Strongly Agree; A = Agree; N = neither Agree nor Disagree (Neutral); D =Disagree; SD = Strongly
Disagree
No. Description
3. FINANCIAL REWARDS SA A N D SD
3.1 My payment compared with my contribution is good enough
3.2 My yearly and periodic salary increment is reasonable
3.3 I am adequately paid for what I do
3.4 I have fair and competitive housing allowance
3.5 I have transport and hardship allowance that consider the cost of
living
3.6 The yearly bonus I have got deserves my contribution
3.7 The administrative allowance is good enough to the position I have
3.8 I have good insurance allowance like life, health insurance etc.
3.9 I am motivated to work in the organization until retirement
3.10 I am satisfied with financial rewards
4. NON-FINANCIAL REWARDS
4.1 I participate and recognized in decision making authority
concerning the organization
4.2 Visibility of the top management is good enough
4.3 I feel that my superior always recognizes the work done by me
4.4 I feel that the job I do gives me a good status
4.5 I am satisfied with the support from the HR department
4.6 In this organization there is fair amount of team spirit
4.7 I find opportunities for advancement in this organization
4.8 Over all I am satisfied with non-financial rewards
47
5 MOTIVATION
5.1 The mission or purpose of my organization makes me feel my job
is important
5.2 I have the opportunity to do what I do best every day
5.3 I have all the materials and equipment I need to do my best every
day
5.4 The relationship with my boss enables me to be open when
discussing work problems and concerns.
5.5 I have opportunities to innovate and work on my initiative.
5.6 I am free to choose my own method of working
5.7 I got feedback about my job performance in the organization
5.8 I have got motivational rewards when I perform good
5.9 Currently I have good motivation to work in this organization
6 SAFETY
6.1 Good physical working conditions are provided in the organization
6.2 The employees in the organization feel secured in their job
6.3 The retirement benefits available are sufficient
6.4 The medical benefits provided in the organization are satisfactory
SA = Strongly Agree A = Agree N =neither Agree nor Disagree (Neutral) D =Disagree SD = Strongly Disagree
5. Rate each of the following factors from the best to the least that motivate you to
perform good on your job ( or which one of the following factors motivate you more)
write the ranked number on the black space provided. (eg. If you feel salary motivate
you more than any others write 1, and so on)
Salary_________________ Delegation and decision making________
Interesting job___________ Job security_____________
Fringe benefits__________ Opportunity for advancement___________
Training________________ Working environment_______________
6. Note: if you have further explanation on motivational practices applied on your
organization and other problems, please specify on the space provided below
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
48