Effects of Motivation on the Performance of Employees in the banking Sector

The motivation of a bank’s employee plays a major role in achieving high levels of satisfaction among its customers (Petcharack, 2004). Every employee or worker has his or her own set of motivations and personal incentives that ginger him or her to work hard or not as the case may be. Some are motivated by recognition whilst others are motivated by cash incentives. Whatever the form of employee motivation, the key to promoting that motivation as an employer, is understanding and incentives (McCoy, 2000). Employees need to be motivated to actualize their potential and there are several ways of enabling them and empowering them to do so. These include the role of reward systems in motivating employees according to their needs for extrinsic or external motivation and by providing them opportunities that appeal to their intrinsic or internal motivation needs. Motivation is the key to creating an enabling environment where optimal performance is possible. This leads to the question how then ensure that individual motivation is at its peak within the organization or workplace (Chapman, 2004).

The other factors that motivate employees are the kind of job that they are asked to perform, the added benefits like extended vacations and perquisites like company provided accommodation and funding for kids schooling as well as provision of medical insurance coverage for the employees and their families. In recent years, there has been lot of emphasis on motivating employees by organizing offsite events and fun and recreation events where the employees let their hair down and indulge in the much-needed stress relieving activities. In the nutshell, Motivation does not only encourage productive performance but also show employees how much the company cares. Perhaps the most vital impact of employee motivation is that of increased productivity or performance. This according to literature on the subject is the central aim of adopting employee motivational programmed thus, if you can increase employee motivation, Productivity inevitably will follow suit (Ryan, 2011).

Statement of the Problem

The need to increase productivity and efficiency in the work place or any organization has led to increasing academic interest in the area of motivation over the years. Scholars have been keenly interested in knowing what factors are responsible for stimulating the will to work. Thus, motivation has become an issue of concern for both scholars and practitioners of personnel management. From productivity and profitability to recruiting and retention, hardworking and happy employees lead to harmony and organizational triumph (Ryan, 2012). The performance of organization and employee motivation has been the focus of intensive research effort in recent times. Employees are motivated in order to achieve their mission and vision which is of paramount concern. Employees in both public and private sector organization are becoming increasingly aware that motivation increases productivity. Lack of proper motivation may result in losses which may eventually lead to low staff turnover, poor attitude towards work, low output level and low profitability (Sarpong, 2016).

Enew et al. (2007), contend that commercial banking started developing significantly from the 19th Century onwards. Banks grew in response to the need for services such as loans, safe deposit and financing of consignments of exported and imported goods. The services rendered by banks can be grouped into two broad headings:

(i)                 lending and credit

(ii)              saving and investing.

In simple terms, a loan represents the granting of a specific sum of money to an individual or organization for them to spend personally in respect of some specific, previously agreed item. Credit, on the other hand, refers to a means of financing an item or items of expenditure whereby the funds are transferred to the product provider directly by source of credit. Saving and investing are the reciprocal of lending and credit. Saving and investing concern the sacrificing of present consumption in order to provide for some future event or requirement. The term “savings” is used to describe a process associated with the accumulation of a larger fund through regular contributions, while the term “investment” is used to describe the process of managing a lump-sum for the purpose earning recurrent income or for capital growth (Enew et al., 2007). The three-pillar banking structure in the country has been replaced with a universal banking system where there are no barriers in the business areas of operation. Indeed Ghana adopted its current system of universal banking from the developed countries whose banking industries are far advanced (Bank of Ghana, 2010).

 Recommendations Based on the findings of the study (Sarpong, 2016):

1) The study entreats management to make job security their top priority and there must be awareness of how secured workers are on the job to ensure the retention of hardworking and experienced employees.

 2) The researcher entreats the management to ensure that equity prevails in all facets of their activities especially when dealing with issues concerning the employees.

3) Management is also entreated to involve all the employees in all decisions especially ones concerning their lives.

 4) Respect and recognition should be accorded employees to promote cordial relationship amongst themselves as well as management to foster cooperation in achieving the organizational strategic goal.

5) Employees’ development to enhance their performance as well as promoting self-fulfillment and self-actualization should be entreated as a matter of urgency.

 6) The study entreats the management to review its motivational packages in order to incorporate other packages that are also important to gain competitive advantage.

Conclusion

 It is evident from the findings of the study (Sarpong, 2016):

That the best mechanism for an organization to attain its strategic goals is nothing more than good motivational packages that really meet the needs of the employees. It is undisputable fact that, motivation plays a very significant role for any organization which wins competitive advantage. Therefore, an organization without motivational packages is bound to bankruptcy. It is due to this reason that this study was undertaken by the researcher to assess motivation and its effect on performance at Ecobank Limited-KNUST Branch and Stadium Branch. The findings of the study showed that when employees are motivated, they enjoy going to work every working day. They also perform at their best and as well assist the bank to meet its strategic objectives when motivated. Besides, the study revealed that view that motivational packages influence employees to report to work early; to stay on the job; to have inner satisfaction and become loyal to the bank. Again, the study proved with every reasonable doubt that employees’ involvement in the formulation of motivational packages is very crucial for the packages to be effective. Also, findings of the study revealed a number of positive effects of motivation such as work output, profitability, staff retention, enhancement of customer base and efficiency to the advantage of the organization. It can therefore be concluded that the findings of the research have excellently fulfilled the objectives of the study and validated the research questions put forward by the researcher. The results of the study are extremely essential since they show how motivation is the basic need for employees to be able to reach self-actualization. The fact that motivation is noted as a major factor to enhance employees’ performance

References

Enew, C, & Nigel, W 2007. Financial Services Marketing, An International Guide to Principles and Practices. Elsevier Limited. Financial Institutions. New York, Vintage Press Inc.

Management Vol. 1. Retrieved from http://www.Aibuma.Org/Journal/Index.Htm

McCoy,2012. Putting, Employee Motivation’ in its place. Women’s media: U.S.A.

 Petcharack, P 2014. A Comparative Analysis of factors determining motivational level of employees working in commercial banks in Kohat. International journal of business and management, 5(12), 1833-3850. Retrieved from http://www.ccsenet.org/ijbm

Ryan, RM 2000. Self-determination theory and the facilitation of intrinsic motivation, social development and well. American psychologist, 55(1), 68-79.

Sarpong, L 2016, Effects of Motivation on the Performance of Employees of Ecobank Ghana Limited. Knust Branch and Stadium Branch Journal of Business Theory and Practice ISSN 2372-9759 (Print) ISSN 2329-2644 (Online) 4(1).