ASSESSMENT OF MOTIVATION AND ITS IMPACT ON EMPLOYEES’

ASSESSMENT OF MOTIVATION AND ITS IMPACT ON EMPLOYEES’
PERFORMANCE IN GOAL ATTAINMENT:
A CASE OF VODACOM TANZANIA LIMITED
ROSEMARY W. MUZE
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF HUMAN RESOURCE
MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA
2014

ii
CERTIFICATION
The undersigned certifies and hereby recommends for the acceptance, by The Open
University of Tanzania, a dissertation titled “Assessment of Motivation and its Impact
on Employees’ Performance in Goal Attainment: A Case of Vodacom Tanzania
Limited”, in partial fulfillment of the requirements for the degree of Master of Human
Resource Management of The Open University of Tanzania.
………………………..……………
Dr. Augustine Y. Hangi
(Supervisor)
………………………..……………
Date

iii
COPYRIGHT
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf, on
intellectual property. No part of this dissertation may be submitted or reproduced, stored
in any retrieval system, or transmitted in any form by any means, electronic or
mechanical photocopying, recording or otherwise without prior written permission of the
author or The Open University of Tanzania in that behalf.

iv
DECLARATION
I, Rosemary W. Muze, do hereby declare that this dissertation is my own original work
and that it has not been presented to any other university or institution for a similar or
any other degree award.
…………..……………
Signature
…………..……………
Date

v
DEDICATION
This report is dedicated to my lovely family who inspired me very much in my academic
pursuit till accomplishment of my studies. Indeed all the family members contributed
immeasurably and untiringly in their support and encouragement in my entire period of
the course study.

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ACKNOWLEDGEMENT
I acknowledge everyone who, in one way or another, has contributed by way of support,
advice, cooperation and guidance towards making this study a success. I am greatly
indebted to my supervisor, Dr. Augustine Y. Hangi, who has supervised this work from
its initial stage up to its completion.
I greatly acknowledge the financial assistance from my employer and his patience
during the whole study duration. I, also wish to express my gratitude to all respondents
in the study area, for their kindness, great cooperation during the whole period of data
collection. They have been a very critical link in facilitating accomplishment of the
study.
Special acknowledgement goes to my family, in particular my son, Moses Maira Jr. and
mother, Susan Omari for their kindness and moral support during the study period.
Further appreciation is extended to all my colleagues who have read this manuscript and
advised me in one way or another.

vii
ABSTRACT
Generally, the study intends to assess the influence of motivation on employ
performance in goal attainment. The study was carried out in Dar es Salaam. The
objectives of the study were: to assess the criteria, which are being used by companies in
motivating their employees; to examine the obstacles, which face companies in
motivating their employees; and to assess the impact of motivation on empl
performance.
A case study design was done using a sample of 63 employees. In collecting the primary
data, the study used questionnaire and interview tools. Data was analyzed by using
Statistical Package for Social Sciences (SPSS) and tables and figures were used to
present data.
The study found out that provision of a positive working environment for employees is a
major criteria used by the company to motivate its employees. Also, the study also found
out that, employee turnover as the main challenge or obstacle in motivating employees
at the company.
The study concluded that there are various criteria used to motivate the employees.
These involve provision of a positive working environment, recognition, reward and
reinforcing the right behavior, employee relationship and developing skills and other
potential. The study recommends, among other aspects, that Human Resource
Department need to implement motivational activities at the workplace.

viii
TABLE OF CONTENT
CERTIFICATION ............................................................................................................ ii
COPYRIGHT ................................................................................................................... iii
DECLARATION .............................................................................................................. iv
DEDICATION ................................................................................................................... v
ACKNOWLEDGEMENT ............................................................................................... vi
ABSTRACT ..................................................................................................................... vii
TABLE OF CONTENT ................................................................................................. viii
LIST OF FIGURES ......................................................................................................... xi
LIST OF TABLES .......................................................................................................... xii
LIST OF ABBREVIATIONS……………………………………………………. ...... xiii
CHAPTER ONE ............................................................................................................... 1
1.0 INTRODUCTION ................................................................................................... 1
1.1 Background to the Problem ....................................................................................... 1
1.2 Statement of the Problem........................................................................................... 3
1.3 Objective of the Study ............................................................................................... 4
1.4 Research Questions .................................................................................................... 5
1.5 Significance of the Study ........................................................................................... 5
1.6 Scope of the Study ..................................................................................................... 6
CHAPTER TWO .............................................................................................................. 7
2.0 LITERATURE REVIEW ....................................................................................... 7
2.1 Introduction................................................................................................................ 7
2.2 Theoretical Literature Review ................................................................................... 7
2.2.1 Definition of the Terms ............................................................................................. 7
2.2.2 The Concept of Work Motivation ............................................................................. 8
2.2.3 Types of Motivation ................................................................................................ 14
2.2.4 The Importance of Motivation to Employees .......................................................... 15

ix
2.2.5 Motivation, Retention and Goal Attainment ........................................................... 15
2.2.6 Theories of Motivation ............................................................................................ 23
2.2.6.1 Maslow’s Hierarchy of Needs ............................................................................... 23
2.2.6.2 Herzberg Motivation/Hygiene Theory .................................................................. 24
2.3 Empirical Literature Review.................................................................................... 25
2.4 Conceptual Framework ............................................................................................ 28
CHAPTER THREE ........................................................................................................ 30
3.0 RESEARCH METHODOLGY ............................................................................ 30
3.1 Introduction.............................................................................................................. 30
3.2 Area of Study ........................................................................................................... 30
3.3 Research Design ...................................................................................................... 30
3.4 Study Population ...................................................................................................... 31
3.5 Sample Size and Sampling Procedure ..................................................................... 31
3.6S ources of Data .......................................................................................................... 32
3.6.1 Primary Data ............................................................................................................ 33
3.6.2 Secondary Data ........................................................................................................ 33
3.7 Data Collection Methods ......................................................................................... 33
3.7.1 Interview .................................................................................................................. 33
3.7.2 Questionnaire ........................................................................................................... 34
3.7.3 Document Review ................................................................................................... 34
3.8 Data Analysis Techniques ....................................................................................... 35
CHAPTER FOUR ........................................................................................................... 37
4.0 RESEARCH FINDINGS .......................................................................................... 37
4.1 Introduction ................................................................................................................. 37
4.2 Characteristics of the Respondents ............................................................................. 37
4.2.1 Respondents Distribution by Age ............................................................................ 37
4.2.2 Respondents Distribution by Gender ....................................................................... 38

x
4.2.3 Respondents Distribution by Level of Education .................................................... 39
4.2.4 Occupation of the Respondents ............................................................................... 40
4.3 Results for Research Objectives .............................................................................. 41
4.3.1 The Criteria Used to Motivate Employees .............................................................. 42
4.3.2 Obstacles in Motivating the Employees .................................................................. 47
4.3.3 Impact of Motivation................................................................................................ 52
CHAPTER FIVE ............................................................................................................. 55
5.0 DISCUSSION OF FINDINDS, CONCLUSION AND
RECOMMENDATIONS ...................................................................................... 55
5.1 Introduction.............................................................................................................. 55
5.2 Discussion of Findings ............................................................................................ 55
5.2.1 What are the Criteria which are being used by Companies in Motivating their
Employees? .............................................................................................................. 55
5.2.2 What are the Obstacles facing Companies in Motivating their Employees?........... 56
5.2.3 What are the Iimpacts of Mmotivation on Eemployees’’ Pperformance?.............. 57
5.3 Conclusion ............................................................................................................... 58
5.3.1 Criteria used to Motivate Employees ...................................................................... 58
5.3.2 Obstacles in Motivating Employees ........................................................................ 59
5.3.3 The Impacts of Motivation on Employees’ Performance........................................ 59
5.4 Recommendations.................................................................................................... 60
REFERENCES ................................................................................................................ 62
APPENDICES ................................................................................................................. 67

xi
LIST OF FIGURES
Figure 1: Maslow’s Need Hierarchy............................................................................................ 24
Figure 2: Conceptual Framework ................................................................................................ 29

xii
LIST OF TABLES
Table 3. 1: Sample Distribution ...................................................................................... 32
Table 4. 1: Age Distribution of the Respondents ............................................................. 38
Table 4. 2: Gender Mix of the Respondents .................................................................... 38
Table 4. 3: Occupation of the Respondents ..................................................................... 40
Table 4. 4: Awareness of the Criteria Used To Motivate the Employees ........................ 42
Table 4. 5: The Criteria Used to Motivate Employees..................................................... 43
Table 4. 6: Motivation Criteria has Positive Impact on Employees’Performance .......... 46
Table 4. 7: Awareness on Obstacles Facing Motivation Programs ................................. 47
Table 4. 8: Obstacles in Motivating the Employees ........................................................ 48
Table 4. 9: Some Effort to Overcome Obstacles Facing Motivation ............................... 51
Table 4. 10: Awareness on the Impacts of Motivation on Employees’ Performance...... 52
Table 4. 11: The Impacts of Motivation on Employees’ Performance............................ 53
Table 4.12: Awareness on the Impacts of Motivation on Employees’
Performance…………………………………………….…………………..52
Table 4. 13: The Impacts of Motivation on Employees’ Performance…………………53

xiii
LIST OF ABBREVIATIONS
DBMS - Database Management System
EM - Extrinsic Motivation
EP - Employees’ Performance
HR - Human Resource
IM - Intrinsic Motivation
SPSS - Statistical Package for Social Sciences

1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Problem
Early in the 1950’s when the selling process was at itsmiddle stage; most employers
treated their employees harshly and did not treat them as a firm’s asset. This was
because of many factors such as competition, rise of skilled labor and rise of labor
unions (Memmott and Growers, 2012; Salanova and Kirmanen, 2010).
The advancement of labor unions and the worsening working conditions in the industrial
age, made it a must for the employers to constantly motivate their employees so as to
give them support and encourage their performance (Evans, 2010).
The importance of motivation even led some known marketing researchers and scholars
to developsome motivationtheoriessuch as; AbrahamMaslow’s Hierarchical
Arrangement of Needs, Hertzberg’s MotivationalFactors and Vroom’s Expectancy
Theory. All these scholars tried to explain the concept of motivation both from outside
and from within the employees themselves (Salanova and Kirmanen, 2010).
The concept of employee motivation is not at all a new idea, as it has been around for a
long time due to employee and employer relations. While the concept itself is not new,
new research and awareness have made new aspects of employee motivation not only a
possibility, but a reality in the world today. Recent beliefs and ideas have introduced
new concepts to the field of employee motivation (Charles and Marshall, 2012). One of
the most common new areas of growth in the area of employee motivation is through the

2
use of work teams. Employee motivation is one of the important factors that can help the
employer to improve employee and organizational performance (Sandhya and Kumar,
2011).
Motivation seems to be one of the most important tools for retaining employees and
increases productivity. Organizations design motivation systems are meant to encourage
employees to perform in the most effective way but also to attract potential candidates.
The key to create the efficient motivation system is an answer to the question what really
motivate employees. One of many ways to motivate and retain employees is by giving
traditional rewards. The employer cannot and should not wait for the employee to come
and ask for a raise or recognition, the employer should be the one to recognize employee
performance and should reward good performance with monetary, benefits and
compensation incentives (Memmott and Growers, 2012).
A good employer should know how to attract and retain his employees (Alkandari,
2009). There might be many other strategies to keep the employees comfortable in the
present job but motivation strategies boost the employees on day to day basis. Contrary
to modern belief, monetary compensation is not the highest employee motivator.
According to the Cruceru and Mihaela (2009), nine out of ten managers think people
stay or go because of money. Open communication tends to keep employees informed
on key issues. Most importantly, they need to know that their opinions matter and that
management is 100 percent interested in their input. Employee Reward Programs as
positive recognition for work boosts the motivational levels of employees. Recognition
can be made explicit by providing awards like best employee of the month or
punctuality award. Project based recognition also has great significance. The award can

3
be in terms of gifts or money (Sandhya and Kumar, 2011).
Motivation factors can be arranged in a hierarchical manner with lower level needs
being a prerequisite of higher order needs. The bottom tier consists of physiological
needs, food and shelter. After an individual has accomplished gratification of the
physiological needs, the next tier progresses to needs consisting of safety and security,
needs for love, affection, and belongingness exist in the tier above safety and security,
then begins to start higher level needs as the two bottom tiers were physical needs. The
next tier above social needs consists of ego and esteem needs. After these needs are met
the final tier consists of the need for self actualization, to be completely developed as a
person (Johnson, 2007). According to Maslow, self-actualization or ego needs can never
be fully satisfied (Tesone, 2005).
1.2 Statement of the Problem
The importance of employee retention and work motivation is growing all the time for
companies. However, most of Tanzanian companies do not emphasize on motivation of
an employee, this results into employee’s mobility and poor performance as well as low
company’sproductivity(Mboya, 2010). Motivation is a crucial factor towards
increasing the performance of employees towards achieving the goals of a given
organization. In any organization that has well recruited and highly skilled labor force
but does not motivate them, then the employees’performance becomes low and the
bottom line is that the achievements of the organization goals will be difficult if not
impossible. Low motivation or complete lack of motivation in the current years at any
organization within Tanzania or across the world has led to high employees’ turnov
inefficiency, fraud, corruption, and indiscipline at work. The lack of employees’

4
motivation in the organization will further cause a higher turnover, absenteeism, lack of
employee retention, lower service and higher operating costs for recruitment, selection
and training. Absenteeism takes place when employees do not report to work (Lee-Ross,
2009). Good Supervisors and Managers try to maintain a positive attitude, by valuing
employees and treating them fairly, thus Managers and Supervisors can create a positive
and supportive environment, which can result in retaining better employees and
motivating employees in their jobs (Memmott and Growers, 2012).
Employee motivation can be investigated in many different ways. Research on employee
motivation is thus looking for factors that are most often chosen by employees when
they are asked to decide what motivates them at work. It usually consists of a number of
motivating factors that are supposed to be ranked or assessed.
Motivation factors include, security, interesting work, opportunity for advancement,
appreciation, company and management and intrinsic aspects of the job.Hertzberg’s
theory is based on two distinct sets of factors: hygiene factors such as pay,
organizations, policies, working environment and motivating factors such as recognition,
promotion and achievement. From the intrinsic nature of the work, Managers can learn
what kind of motivation factors should be provided to employees (Charles and Marshall,
2012). It is the role of the employers to develop and exercise different motivation
policies at all times which in the end provides great benefit towards the organization.
1.3 Objective of the Study
Generally, the study intends to assessmotivationand its impacton employees’
performance in goal attainment.

5
1.3.1 Specifically, the study intends:
i. To assess the criteria, which are being used by companies in motivating their
employees;
ii. To examine the obstacles, which face companies in motivating their employees;
and
iii. To assess the impact of motivation on employees’ performance.
1.4 Research Questions
The study was guided by the following questions:
i. What are the criteria which are being used by companies in motivating their
employees?
ii. What are the obstacles which face companies in motivating their employees?
iii. What are the impacts of motivation on employees’ performance?
1.5 Significance of the Study
i. The study will add knowledge to the existing knowledge concerning
“Assessment of Motivation and its Impact on Employees’ Performance in Goa
Attainment”;
ii. The study will assist in policy formulation concerning motivation in work places.
The study will inform and guide policy makers on obstacles that hinder company
motivation; and
iii. The study will provide other researchers with areas for future research on related
topic areas.

6
1.6 Scope of the Study
The study was conducted in Dar es Salaam. A sample of 63 respondents was used; these
respondents were selected purposively from a population of 341 employees. The sample
involved Vodacom Tanzania Limited employees and Management. The study identified
the criteria that are used to motivate the employees. In addition, the study identified the
various obstacles in motivating the employees. The study also examines how an
organization can motivate its employees. Finally, the study makes some
recommendations on what should be done in order to rectify the situation.

7
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter will present theoretical and empirical literature review, conceptual
framework and finally indicate any research gap.
2.2 Theoretical Literature Review
2.2.1 Definition of the Terms
Motivation is defined as the force or forces that arouse enthusiasm and persistence to
pursue a certain course of action (Daft and Marcic, 2008). Motivation, derived from the
Latin word meaning “to move” represents those psychological goal directed proce
(Kreitner and Kinicki, 2007). Motivation has been recognized as a dilemma that
managers must face because what motivates one individual may not motivate another.
Motivation refers to a response to objects, people, or events in either a positive or
negative way (Dessler, 2008).
Retention means retaining those employees who share the company values, proving their
expertise in business and an appropriate moral profile. Staff retention is the opposite of
staff turnover (Cruceru and Mihaela, 2009). A better orientation of employees can
reduce turnover. Workers who are given opportunities for training and retraining, which
are placed on job matching their training, are less inclined to leave the organization
(Miner, 2013).

8
Attraction refers to process of pulling employees to work with the organization. This
involves provision of great pay, creative benefits and rewards. Also, attraction involves
provision of fun and safe working environment (Bjorklund, 2011).
2.2.2 The Concept of Work Motivation
The term motive usually is explained as desires, needs, emotions or impulses that make
someone do something. Following this definition, motivation is thus the state of being
incited to action. Work motivation refers to motivation within a work setting. Typically,
it refers to employees’ motivation to perform, stay and commitment in a company,
cooperation, lead or support a leader, help customers and so forth (Bailey and Clegg,
2008). Some authors define what motivation is by explaining where it comes from. In
this approach work motivation has been defined as a psychological process resulting
from the reciprocal interaction between the individual and the environment that affects a
person’s choices, effort, and persistence (Latham and Ernst, 2006). In other definitions
work motivation is associated with the goal attainment. People are motivated to do
something if they believe it is likely that it will bring desired result. People who are well
motivated take action that they expect will achieve their clearly defined goals
(Armstrong, 2007). Motivation is a phenomenon which cannot be directly observed. The
only way to infer motivational processes is to analyze streams of behavior caused by
environmental or inherited factors which can be observed through their effects on
abilities, beliefs, knowledge and personality (Bjorklund, 2011).
There are probably as many definitions of motivation as researchers working on this
topic. However, there are some features of motivation that are common for most
definitions. It can be observed from the examples presented above that when authors

9
describe motivation they mention an action or behavior that is directed and sustained as
a result of motivation. In other words motivation is usually described as an invisible
force that pushes people to behave in a certain way (Pinder, 2008).
Pinder (2008) believes that presented definition has some features that make it better
than others. Firstly, it is not general as many other definitions, it presents motivation in
close relation to work and careers. His definition is intended to apply behavior such as
joining or leaving a company, being punctual, respecting or not respecting supervisor’s
orders, inventing better ways to perform a job and accepting relocation to another place.
One of the key elements that are important in defining motivation is a concept of force.
It not only makes the definition consistent with other authors work but also allows
motivation level to be weak or strong depending on circumstances. The idea of force
suggests that motivation is related to an effort.
Motivation is primarily concerned with how behavior is activated and maintained
(Bandura, 2007). In cognitive motivation, people are motivated and guide their actions
through the exercise of forethought. They form beliefs about what they can do,
anticipate likely positive and negative outcomes, set goals for themselves, and plan
future courses of action to attain those goals or avoid aversive ones. Motivation is
sometimes acquired through avoiding aversive external stimuli, such as hunger, thirst
and pain. Motivation is primarily concerned with how behavior is activated and
maintained. A great deal of human motivation, however, is initiated and sustained over
long periods in the absence of external stimulation. The capacity to represent future
consequences in thought provides one cognitively based source of motivation. Many of
the things we do are designed to gain benefits and avert future difficulties. A second

10
cognitively based source of motivation operates through goal setting and self-regulating
reinforcement, which are intervening influences (Bandura, 2005).
Motivation is one of the most crucial factors that determine the efficiency and
effectiveness of an organization. Motivation is an integral part of management process
and every manager must motivate his subordinate to create in them the will to work
(Sandhya and Kumar, 2011). High motivation provides the following advantages:
Higher efficiency: Motivation is an effective instrument in the hands of management to
maximize efficiency of operations. Motivated employees give greater performance than
de-motivated ones. (Sandhya and Kumar, 2011; Samba, 2007).
Optimum utilization of resources: Motivation inspires employees to make best possible
use of different factors of production. Reduction in labor turnover and higher motivation
leads to job satisfaction of workers. Opportunities for need satisfaction make employees
loyal and committed to organizations. As a result, labor absenteeism and turnover are
low (Daft and Marcic, 2008).
Facilities change: High motivation helps to reduce resistance to change. An organization
has to incorporate change to cope with environmental changes. Proper motivated
employees accept, introduce and implement these changes keeping the organization
effective (Gupta, 2004).
Failure to satisfy needs may lead to a reduction or redirection of the motivational force
towards other goals. The motivational force has three basic elements directions, intensity

11
and duration directed to goals; force varies according to str ength of individual’s desire
and may last for long or short depending on the nature of the individual (Katz, 2006).
Motivation is aroused as a result of needs, which have to be satisfied. A state of tension
occurs, which stimulate action. Recognize individual differences. Almost every
contemporary motivation theory recognizes that employees are not homogeneous. They
have different needs. They also differ in terms of attitudes, personality and other
important individual variables. To this end, there is a need to match people to jobs.
There is a great deal of evidence showing the benefits of carefully matching people to
jobs. Do not put a high achiever into a job that is consistent with his or provide
opportunities to participate in setting moderately challenging goals and that involve
autonomy and feedback (Samba, 2007).
There is need to individualize rewards because employees have different needs, what
acts as a re-enforcer for one, may not be for another. Managers should use their
knowledge of employees’ differences to individualize the rewards over which they have
control. Some of the more obvious rewards that managers allocate include pay,
promotion, autonomy and opportunity to participate in goal setting and decision-making.
Employee motivation can also be achieved through linking rewards to performance.
Managers need to make rewards contingent on performance. Rewarding factors other
than performance will only reinforce those other factors. Key rewards such as pay
increases and promotion should be given (Robbins, 2009).
According to research done by Modesta, Peter in 1997/1998 at Tanesco Kidatu, it was
found that, employeescould performbetterafter being motivated.Employee’s
motivation is a universal problem. It is not possible to fulfill all peoples’needs because

12
they differ from one person to another. Non fulfillment of these needs leads to
employees’ tension and frustrations which can even affect the level of work perform
at different organizations.
Effective employees’ motivation by leaders isto start with understanding peoples ’
needs, desires and seeking for ways and means to satisfying the needs. Not only that,
employees should get physiological satisfaction which can reduce their tension and
hence strive to work efficiently and effectively for their organization. This is according
to the research done by Mwakilluma, Peter J.A in 1998/1999 at Sokoine University of
Agriculture (SUA) Morogoro.
In another research study by Odongo (2009), which was based on motivation profile and
productivity in public enterprises, it was concluded that it has been universally accepted
that people can work diligently and efficiently if there is a motive behind such work.
People highly motivated assume their responsibilities heartily and it is true that where
individuals are de-motivated they cannot work effectively and efficiently thereby
affecting the performance of the firm (Ryan and Deci, 2010).
The lack of employees’motivationin organizationwill causea higherturnover,
absenteeism, lack of employee retention, lower service, higher operating costs for
recruitment, selection, and training. Absenteeism takes place when employees do not
report to work (Lee-Ross, 2009). Good supervisors and managers try to maintain a
positive attitude, by valuing employees and treating them fairly. Managers and
supervisors can create a positive and supportive environment, which can result in
retaining better employees and motivating employees in their jobs (Memmott and

13
Growers, 2002).
Employee motivation can be investigated in many different ways. Research on employee
motivation is looking for factors that are most often chosen by employees when they are
asked to decide what motivates them at work. It usually consists of a number of
motivating factors that are supposed to be ranked or assessed. Motivation factors
include, security, interesting work, opportunity for advancement, appreciation, company
and management, intrinsic aspects of the job. Hertzberg’stheory is based on two distinct
sets of factors: hygiene factors such as pay, organizations policies, working environment
and motivating factors such as recognition, promotion, achievement and the intrinsic
nature of the work, managers can learn what kind of motivation factors should be
provided to employees (Charles and Marshall, 1992).
Generally, motivation can be intrinsic or extrinsic. Intrinsic Motivation (IM) can be
described as the process of motivation by work itself in so far as it satisfies the personal
needs of the employee. Intrinsic motivation is self-generated and it is thought that people
seek for a job they think will most satisfy their needs (Salanova and Kirmanen, 2010).
The factors affecting intrinsic motivation include for example responsibility, freedom to
act, courage to use and develop persons own skills, interesting tasks and opportunities
for advancement.
Extrinsic Motivation (EM) is the amount of effort other people give to the person to
motivate them. Extrinsic Motivation is for example, the rewards that management
provide such as pay rise, praise or promotion. Extrinsic motivators are efficient but the
influence does not last long (Rosenbloom, 2005).

14
Intrinsic motivators tend to have a longer effect as they are inherent and not imposed
from outside. The effect of money as a motivator is discussed later in this thesis. As the
needs of individuals differ a lot, it is important to concentrate carefully on the
attachment of goals and incentives given when goals are accomplished. Motivation
theories help to understand different motivators. Motivation theories have been
examined for decades. These theories can be implemented to the company’s
resource policies to get the best out of the employees. The most efficient strategy
motivation should not be based solely on intrinsic motivators neither on extrinsic
motivators. By being aware of the factors that are the most important for future business
persons and companies can meet the challenge of attracting, motivating and retaining
employees (Salanova and Kirmanen, 2010).
2.2.3 Types of Motivation
Motivation can be Intrinsic or Extrinsic. Intrinsic motivation can be described as the
process of motivation by work itself in so far as it satisfies the personal needs of the
employee. Intrinsic motivation is self-generated and it is thought that people seek for a
job they think will most satisfy their needs (Armstrong, 2007). The factors affecting
intrinsic motivation include for example responsibility, freedom to act, courage to use
and develop persons own skills, interesting tasks and opportunities for advancement.
Extrinsic motivation is the amount of effort other people give to the person to motivate
them. Extrinsic motivation is for example the rewards management provide such as pay
rise, praise or promotion. Extrinsic motivators are efficient but the influence does not
last long. Intrinsic motivation is defined as the doing of an activity for its inherent
satisfactions rather than for some separable consequence. When intrinsically motivated a
person is moved to act for the fun or challenge entailed rather than because of external

15
prods, pressures, or rewards. In humans, intrinsic motivation is not the only form of
motivation, or even of volitional activity, but it is a pervasive and important one (Ryan
and Deci, 2010).
2.2.4 The Importance of Motivation to Employees
Rutherford (2010) stated that all managers realize that motivation is important and if
employees are enthusiastic about task accomplishments, try to do their jobs at their best,
the organization will benefit. Rutherford also noted that organizational goals cannot be
effectively attained unless employees work together, so it is obvious that the need for
teamwork in the organization is essential. One thing that managers should realize is that
their jobs are not just to “motivate an employee”. All employees come to a wo
situation motivated to attain personal goals which they have established.
One goal for the service manager is to develop motivated employees and increase their
morale about their work. Employee morale towards work, such as supervisors and peers,
organization, work environment, can be defined as the feelings an employee has about
all aspects of the job. There are many benefits to be gained from building good morale.
Besides, there are proven relationships between morale levels, turnover, and
absenteeism. However, research indicates that high employee morale levels do not
always yield high productivity levels (Bjorklund, 2011).
2.2.5 Motivation, Retention and Goal Attainment
It is important for a company to review its organizational practices to see whether they
are meeting the expectations of employees (Memmott, and Growers, 2012). The labor
market continues to tighten and there are less and less available skilled, loyal and
motivated employees.

16
Morale motivates the employee. For example, allowing employees to hold a hot dog
feed or a potluck to raise money for a co-worker that has fallen on hard times due to a
death of a family member or emergency , giving employee’s balloons on a birthday or
sending flowers due to a birth of a child. These types of activities boosts morale, which
in turn creates unity, which helps employees, feel as if they are part of a family rather
than a part of an organization. It creates a great deal of job satisfaction, and a sense of
security. Once an employee has been motivated by morale, retention comes more easily
(Memmott and Growers, 2002).
One of many ways to motivate and retain employees is by giving traditional rewards.
The employer cannot and should not wait for the employee to come and ask for a raise
or recognition; the employer should be the one to recognize employee performance and
should reward good performance with monetary, benefits and compensation incentives.
Culture differences can create a challenge in motivating and retaining employees
(Memmott and Growers, 2002).
Employee retention refers to the various policies and practices which let the employees
stick to an organization for a longer period of time. Every organization invests time and
money to groom a new joiner, make him a corporate ready material and bring him at par
with the existing employees. The organization is completely at a loss when the
employees leave their job once they are fully trained. Employee retention takes into
account the various measures so that an individual stays in an organization for the
maximum period of time (Gayathri and Kamalambal, 2012).
If an employer lost an employee with a great amount of experience, it would take lots of
time and money to train a new employee for positive production. Experience is an

17
intangible asset that is relied on heavily (Gayathri and Kamalambal, 2012). Every
worker carries with him or her some specific experiences. Employees leave for a variety
of reasons including poor supervision, unchallenging position, limited advancement
opportunities, lack of recognition, limited control over work, perceived pay in equity and
perception of more favorable opportunities in other companies. High employee turnover
is one of the greatest causes of declining productivity and decreased morale in
organizations. While morale decreases, recruiting and training cost increase and an
organization can find itself in a vicious cycle.
Retaining and motivating employees requires strong managerial skills to facilitate a
system to working properly: to fit company needs, employees are given the tools and
conditions to achieve daily attributions. An equally important aspect is also a
performance-based compensation plan that reinforces loyalty to the company employees
and to encourage it to make a significant contribution (Miner, 2013). An Employee
Retention Program (ERP) is said to be effective when a systematic effort is made to
create and foster an environment that encourages and supports employees to remain
employed by maintaining strategies and practices in place that addresses their diverse
needs (Mayo, 2013). Employee Retention (ER) is a process in which the employees are
encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Even though ER has now become a tough task, it is beneficial
for the organization as well as the employee.
Retention is not only important just to reduce the turnover costs or the cost incurred by a
company to recruit and train. But the need of retaining employees is more important to
retain talented employees from getting poached. There are many factors which show the

18
importance of the employee retention. They may be the turnover cost which includes
hundreds of thousands of rupees to the company's expenses. In fact, it is difficult to
calculate the turnover cost which includes hiring costs, training costs and productivity
loss, industry experts often quote 25 percent of the average employee salary as a
conservative estimate.
Company information loss is the next factor which shows the significance of retention
(Alkandari, 2009). When an employee leaves the organization, he takes with him the
valuable information about the organization, the customers, the current projects and also
the past history of its competitors to the new employer. Lot of time and money has been
spent on an employee in expectation that he will work for the organizations future
return. When the employee leaves the organization the investment is not realized.
Customer services are interrupted where customers and clients do business with a
company in part because of the people. Turnover causes to more turnovers because
when an employee terminates from the organization the effect is felt throughout the
organization where co-workers are often required to pick up the slack. The unspoken
negativity from the one who has been terminated often intensifies for the remaining staff
(Mayo, 2013).
Company goodwill also plays an important role in retaining the employees. The
maintenance of goodwill of a company is possible only if the attrition rates are low. By
maintaining higher employee retention rates the employer can motivate potentially
talented employees to join the organization by creating a secured environment (Sandhya
and Kumar, 2011). The problem of regaining efficiency is also seen if an employee
resigns. The good amount of time is lost in hiring a new employee and then training

19
him/her which indulges loss of the company directly which many a time goes unnoticed.
And even after recruiting a new employee one cannot assure the same efficiency from
the new employee as the training imparted to the old employee according to the
employers needs goes waste.
A better orientation of employees can reduce turnover. Workers who are given
opportunities for training and retraining, which are placed on job matching their training,
are less inclined to leave the organization (Garry, 2008). If people receive more general
information on company performance which is desired of them, will think that's good or
not remains. If individuals believe that they have the chance to be advanced, will leave
the organization. Consequently, internal promotion and career planning can help keep
employees in the organization.
In addition, a fair payment system can help prevent turnover. An employee who is paid
less than another worker on a job with similar requirements may leave the organization
if he was offered a better alternative (Barling and Phillips, 2013). In extreme cases,
when a shortage of skilled employees, companies to be competitive, can spend a lot of
improvement. Such situations have led to "return the funds agreements" being executed
where employees leave the organization in a given period.
Another component of the process of retaining and maintaining human resources is to
maintain a low stress. Stress management is to: Identify the causes which produce
measures such as: changing individual responsibilities (reducing or increasing them); the
empowering tasks; agreeing employee objectives; providing appropriate training
(example, in time management techniques); how we select the right people and why

20
should we help the most ambitious employees to develop their career are things whose
importance becomes evident when a valuable employee resigns. Unfortunately, it is too
late (Garry, 2008).
A company's ability to retain, preserve and develop human capital creates a positive
perception in the human resources market, a perception that propelled the top employer
brands (Miner, 2013). A high rate that helps to attract top professionals who will
contribute through their company's success, staff retention is the opposite of staff
turnover (Cruceru and Mihaela, 2009). Retention means retaining those employees who
share the company values, proving their expertise in business and an appropriate moral
profile.
Maintaining human resources is closely related to their satisfaction, so one way to
reduce turnover and thereby to increase staff retention, is control over the
correspondence between expected rewards and satisfaction of the employees, which can
reduce the problems caused by fluctuation. Another way to eliminate the fluctuation is
improving selection in employment, but to dismiss (Miner, 2013).
Apart from the retention success strategies and the different theories of motivation, there
are few retention strategies which are classified into three levels bottom level, middle
level and high level. The following are some of the primary key aspects that Attract and
Retain Talented workforce practiced in different organizations (Sandhya and Kumar,
2011).
According to Alkandari (2009), an organization which retains its experienced hands by
maintaining strong values of trust, caring fairness, and respect within the organization,

21
freedom to operate at work, early responsibility in career, training and learning
opportunities, visible, transparent and accessible leaders, competitive rewards,
innovative HR programs and practices so that it can maintain the reputation.
Another organization which produces body care products for elders assures and retains
its employees by performance-driven r ewards. Its belief in “Growing our own timber”,
comprehensive development and learning programs, flat organization, where
performance could lead to very quick progression, challenging work context,
competitive rewards, exhaustive induction and orientation program which ultimately
attracts the new talent (Alkandari, 2009).
According to Irshad (2009), the employee satisfaction and retention are considered the
cornerstone for success of organization. Past study divided it into social, mental or
physical dimension. The grouping is based on social contacts at works, characteristics of
the work task or the physical and material circumstances associated with work. The
retention factors of the mental dimension are work characteristics, employees are
retaining by flexible tasks where they can use their knowledge and see the results of
their efforts. The social dimension refers to the contact employees have with other
people, both internal and external. The physical dimension consists of working
conditions and pay. In order to retain employees the organization need to gain
information about the dynamics that characterized the motivation to work.
Van Knippenberg (2010), suggested that employee become more loyal and stay in the
organization when they identify themselves within a group and contribute to the
performance as a group. This suggestion relies on work performed by Locke and the

22
goal setting theory he developed. The goal is team performance and the individual
feeling part of the group. The focus of Locke was on the goal, but in order to reach the
goal one must associate oneself with the group and task. Irshad (2009), describes another
framework a manager can use when communicating with employees to know that the
causes of retention which consist of nine different predictors; organizational processes,
role challenge, values, work, life balance, information, stake/leverage/recognition,
management, work environment and product or service.
Irshad (2009), recognized that not only one factor is responsible in management of
employee’s retention, but there areseveral factors influencing employee’s retention
which need to be managed congruently i.e. compensation and rewards, job security,
training and developments, supervisor support culture, work environment and
organization justice.
The job of human resource personnel is done perfect if it places the right person in a
right job at a right place in a right time. But retention is more important than hiring. A
talented employee will never fall shortage of the employment opportunities. If a person
is not satisfied with the present job, he/she may switch over to another, of his/her choice.
The top organizations are on the top because they care for their employees and they
know how to keep them glued to the organization. Employees stay or leave
organizations for many reasons which may be personal or professional. Employees who
are satisfied and happy with their jobs are more dedicated and work for organizatio
growth (Mayo, 2003).

23
2.2.6 Theories of Motivation
2.2.6.1 Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs must be one of the best known motivation theories in the
world (Salanova and Kirmanen, 2010). Maslow is a good starting point to start
examining different motivation theories. Maslow starts with the idea that people always
tend to want something and what they want depends on what they already have
(Rosenbloom, 2005). Maslow proposed that there are five different levels of needs
people have to seek for satisfaction of their basic needs.
The first or lowest level is Physiological Needs. Before these needs which include for
example food, water, shelter and clothing are fulfilled a person does not have any other
needs. When people do not feel hunger, thirst or cold, their needs go to a second level.
The second lowest level is Security Needs. In that level a person needs to feel secure in
his/her family and in a society, and feel protected against violence (Mullins, 2007). The
need for safety is manifested with job security, savings and for insurances of health,
mental health, old age and disability. Love and belonging needs is the third level of
Maslow’s hierarchy. After feeling secure, people need to feel that they receive and
love, they are appreciated and they have good friendships. The fourth level is esteem
needs. It is the need to be unique with self-respect and to enjoy esteem from other
individuals. People want to evaluate themselves highly and based on their achievement
receive appreciation from other people. Lack of these needs may cause inferiority,
helplessness and weakness (Mullins, 2007).
Highest level of Maslow’s Hierarchy of Needs is need of Self-actualization. The
development of this need is based on the satisfaction of the other four lower levels. It

24
refers to the need of self-fulfillment and to the tendency to become actualized in what a
person is potential. The core of this theory lies in the fact that when one need is fulfilled,
its strength diminishes and the strength of the next level increases (Latham, 2007).
Maslow does note that one level of needs does not have to be totally fulfilled before a
person moves to the next level. The individual can be partly satisfied with one level and
still seek for satisfaction at the next level.
Figure 1: Maslow’s Need Hierarchy
Source: Mullins, 2010
The above diagram illustrates the various levels of needs which Maslow believed all
people aspire to.
2.2.6.2 Herzberg Motivation/Hygiene Theory
Herzberg’s motivation/hygiene theory is also knownas the two-factor theory. Herzberg
started to study job satisfaction in the 1950’s in Pittsburg. The basis of Herzberg’s wo
is in the Maslow’s Hierarchy of Needs. He started with the idea that what causes th
satisfaction are the opposite of those things that cause job dissatisfaction (Salanova and

25
Kirmanen, 2010). However, after studying thousands of books he could not draw any
guidelines. He conducted a survey where he asked participants to identify those things
that made them feel positive with their job and those that made them feel negative.
As a result Herzberg found out that what makes people happy is what they do or the way
they are utilized and what makes people unhappy is the way they are treated. Things that
make people satisfied at work are different from those that cause dissatisfaction so those
two feelings cannot be opposite. Based on these findings Herzberg created his theory of
Motivators and Hygiene factors. Both factors can motivate workers but they work for
different reasons. Hygiene factors tend to cause only short-term satisfaction to the
workers while motivators most probably cause longer-term job satisfaction (Mullins,
2007).
2.3 Empirical Literature Review
Salanova and Kirmanen (2010), made a study on employee satisfaction and work
motivation, the main aim was to find out the level of employee satisfaction and to find
out possible aspects of motivation for improvements.
Salanova and Kirmanen (2010), found that, work motivation consists of many different
aspects. It is very important for the managers to make the employees feel motivated
towards the work they do. Motivated workers are less absent from work and the
productivity of the company is more likely to grow. The employees are feeling good
about enjoying working everyday and performing their best. They also say it usually
feels good to come to work every day. According to the results the workers do not feel
so optimistic about the future success with the company, although a number of the

26
respondents feel good about it. This might have an effect on the work motivation.
Employees who feel that their future is successful at the company work better than those
who are insecure about it. Workers get intrinsic motivation from the work itself. Work is
supposed to fulfill the employee’s basic needs. In average most of the employees
feeling fairly satisfied with the fulfillment of their basic needs by work.
Finally the study concluded that, the workers are not satisfied with the current salary and
the fairness of the wages system compared to the tasks they do. Other aspects of the
wages system at the company are fairly satisfying to the employees. The co
benefit design is done very well, since the employees show quite high satisfaction with
it. Also the jobs that are offered to its employees quite satisfy their expectations except
for the possibility to be promoted.
Also Riley (2009), did a study on Employee Retention, the general objective of the study
was to overview employee retention. In order to identify the issues associated with
employee retention, survey of all agency employees was conducted, examining three
dimensions of employee satisfaction. The three aspects of employee satisfaction include:
the relationship dimension, the personal growth dimension, and the system maintenance
dimension. The study found that, staff encouragement is an inexpensive way to boost
employee morale and motivation. Larson and Hewitt (2005) state that it is important to
recognize good work both verbally and formally. The literature indicates that while it is
important to correct negative behavior it is equally important to point out good work. A
simple verbal praise or note from a Supervisor can make a big difference in an
employee’s morale and sense of belonging to the agency.

27
Finally Riley (2009), concluded that, employee retention is one of the principal
problems that company’scurrently faces. In order to provide high quality services to
clients, a company must retain an adequate number of well trained employees. Turnover
rates for residential services in 2008 measured 34.5% meaning that one in every three
employees in the residential program area left the agency in 2008. The high cost of
training new staff, as well as service diminishment, make turnover one of the most
pressing issues for the company.
Samba (2007), who did a study on Evaluation of Motivational Packages in Tanzanian
Public Organizations found that inadequate payment including fringe benefits affects
retention as it causes employees to consider leaving the organizations they work in for
better jobs elsewhere.
Manase (2008), did a study on Assessment of the Role of Fringe Benefits Scheme in
Human Resource Retention. The general objective was to assess the contribution of
fringe benefits to human resource retention. Fringe benefits consist of a broad range of
special payments or benefits in kinds that are made available to workers. They may
include occupational sick pay, maternity pay, pensions, company cars, company
canteens, housing, welfare recreation services, access to education and opportunity for
personal development.
Finally Manase (2008), concluded that despite the fact that adequate fringe benefits
schemes contribute to retention, their effectiveness in retaining employees depends on
other factors like salary schemes, good working environment, industrial relations and
career development schemes.

28
2.4 Conceptual Framework
The link between employee motivation and retention is made by dependent variable, that
is goal attainment and independent variable, that is employee motivation. In order for the
company to achieve its goals, it depends much on how employees are motivated.
Apart from employees motivation policy, there should also be factors which will assist
motivation process to attain company goals, these are mediating factors, which include
achievement, recognition, salary, company policies and work conditions.
The study assumes that employees are motivated by intermediate variables such as
recognition, salary, company policy, work conditions and achievement. Employees can
be retained once he/she is recognized in the company. If employees are not well
retained, these will cause the gaps, that is, high labour turnover and low organizational
performance, but the gaps can be filled through employees motivation, and the factors
that determine employees ’ motivation in organizations includes; high confidence level,
morale, performance and increased retention.

29
Figure 2: Conceptual Framework
Source: Researcher’s Design, 2014
Dependent
variable
Goal Attainment
 Labour
turnover rate
 Employee
competency
Independent variable
Employee motivation
 High confidence
level
 Morale
 Performance
 Increase retention
Intermediate
variables
Achievement
Recognition
Salary
Company policies
Work conditions
GAPS
 High labour
turnover
 Low
performance

30
CHAPTER THREE
2.0 RESEARCH METHODOLGY
3.1 Introduction
Under this chapter various aspects were addressed on the methods that were to apply in
carrying out the research study, including ways on how data were collected. It described
the study design, study area, sampling technique, sample size, data collection techniques
and data analysis.
3.2 Area of Study
The study area was Vodacom Tanzania Limited. Vodacom Tanzania Limited is a
subsidiary company of Vodacom Group (Pty) Limited, South Africa which is also a
subsidiary of Vodafone Group UK. Vodacom Group (Pty) Limited owns a majority
shares of 65 percent. The remaining 35 percent is owned by Tanzanian shareholders.
The area is chosen because the company has sufficient motivation programs.
3.3 Research Design
A case study design research was used. According to Adam and Kamuzora (2007), a
case study involves analysis of a single situation. A case study design was used because
participants come from a single case. Experimental study design is not appropriate here
because the study does not involve random assignment of participants into control and
treatment groups. According to Saunders et. Al (2009), a case study is mostly associated
with qualitative research method used to study organizations. A case study was used
because it allows the use of various data collection methods so as to reach the validity

31
and reliability coverage of the study and is cheaper and less time consuming due to
limitation of resources. A case study design was used in this study because the
researcher intends to gain a deep and through understanding of the phenomena and
because of its flexibility of the data collection methods.
3.4 Study Population
This is the totality of objects under investigations (Kamuzora and Adam, 2008). For the
purpose of the study, the targeted population of the study will be the Vodacom
Tanzanian Limited employees and Management. The total of Vodacom Tanzania
Limited employees is 341 employees. Vodacom Tanzania Limited employees were
taken as a population of the study because, the study used a case study design. Vodacom
Tanzania Limited was the area of the study, therefore only Vodacom Tanzanian Limited
employees and Management were considered as the population of the study.
3.5 Sample Size and Sampling Procedure
A sample is a subject of the population. It comprises some members selected from it. In
other words, some, but not all, elements of the population would form the sample.
Kothari (2004), defines a sample size as the number of items to be selected from the
population to constitute the sample. The researcher selected 63 respondents as a sample
size that was made up by employees and Management of Vodacom Tanzania Limited in
the study area. A total of 63 employees were selected purposive from a population of
341 employees. This is representative sample; this minimizes time of data collection.
Sampling is the process of selecting a sufficient number of elements from the
population, so that a study of the sample and an understanding of its properties or

32
characteristics would make it possible for us to generalize such properties or
characteristics to the population element (Saunders and Thornhill, 2009). Purposive
sampling was used to all respondents who participated in the sample; this sampling
method involves purposive or deliberate selection of particular units of the universe for
constituting a sample which represents the universe. The technique was used because
some of the respondents were not available at the time of data collection as others were
assigned duties out of the office.
Table 3.1: Sample Distribution
Department No of employees
Finance 5
Information Technology 2
Customer Care 21
Marketing 35
Total 63
Source: Researcher, 2014
Table 3.1 presents sample distribution of the study. Sample size of the study was 63
respondents. This is because the sample contains representative number of respondents
and save time during data collection and data analysis.
3.6 Sources of Data
In order to get reliable data, the study used both primary and secondary data sources of
information. From primary data, several data collection techniques namely interviews
and questionnaire were employed. Secondary data were collected through, library search
from published materials and internet/website.

33
3.6.1 Primary Data
The primary data refers to the information collected afresh and for the first time, and
thus happen to be original in character. They are named primary because they are
unsullied and have not been manipulated by any other person. Such data have been
provided by the subjects in the sample through the scheduled interactions by using the
well preferred tools. Various tools were used to obtain primary data (Kothari, 2004).
3.6.2 Secondary Data
The data were obtained from literature sources or data collected by other people for
some other purpose. The data provide second hand information and include both raw
data and published ones. Some of the data collected and stored by organizations include
details on the payroll, income statement, and copies of letters and minutes of meetings,
newspaper, journals and textbooks (Saunders et al, 2000). According to Kothari (2004),
secondary data means data that has already been collected and analyzed by someone
else.
3.7 Data Collection Methods
The researcher used the following data collection methods which are very useful to
extract first hand information as well as second hand information.
3.7.1 Interview
The interview method of collecting data involves presentation of oral-verbal stimuli and
reply in terms of oral-verbal responses (Kothari, 2004). This involves verbal interaction
between the researcher and respondent. The researcher prepared the interview guide
questions in connection to research questions. The technique was used because samples

34
are controlled more effectively and more information in greater depth can be obtained.
In addition, the technique is associated with greater flexibility, therefore the researcher
has the opportunity to restructure questions so as to reach the research objectives.
Interviewees were Vodacom Tanzania Limited officers from different departments.
Interviews allow participants to provide rich, contextual descriptions of events.
According to Saunders and Thornhill (2009), interview helps to get reliable and valid
information relevant to the research. Researcher makes appointment with the
respondents.
3.7.2 Questionnaire
A questionnaire refers to questions printed or typed in a definite order on a form or sets
of forms where the respondents have to answer the questions on their own (Kothari,
2004). The researcher prepared the questionnaire, with structured and unstructured
questions. Structured questionnaires are those questionnaires in which there are definite,
concrete and pre-determined questions. When characteristics are not present in a
questionnaire, it can be termed as unstructured (Saunders and Thornhill, 2009). This
technique is chosen because it does not exert pressure to the respondents; this means
respondents were free and comfortable. It comprised both open ended and close ended
questions.
3.7.3 Document Review
Documentary review refers to the analysis of documents that contain information about
that phenomenon we wish to study (Saunders and Thornhill, 2009). Document analysis
consists of analyzing the contents of documentary materials such as company’s policy,
company performance reports and the contents of all other verbal materials, which can

35
be either spoken or printed. Thus, reading company’s reports and then reporting on the
content, as in a book review, is not document review. This study reviewed a number of
documents in relation to the problem and reviewed necessary documents for adding up
information obtained from questionnaires and interview method.
3.8 Data Analysis Techniques
The study analyzed data by using Statistical Package for Social Science (SPSS)
software. Data processing involved editing, coding, tabulation which were used as key
factors in the whole process of research. This was done in order to make the research
accurate and effective as follows:
Editing; this was done immediately after receiving the filled in questionnaires from
respondents. It involved correction of errors that might appear in the whole process of
research writing. In addition, to help the researcher to translate and look for clarification
on what respondents wrote about.
Coding; after completing data editing the answers from the respondents, the data were
given codes. According to Kothari (2008), coding refers to a process of assigning
numerals or other symbols to answers so as responses can be put into a limited numbers
of categories or classes. Coding allows efficient analysis and through it several replies
may be reduced to small numbers which contain the critical information required for
analysis.
Tabulation; this was done to assemble data into concise and logical order. The
researcher analyzed data collected qualitatively where words were used to explain

36
findings and quantitative analysis where the data used numbers, computation of total and
percentages and data analysis base on research objectives.

37
CHAPTER FOUR
4.0 RESEARCH FINDINGS
4.1 Introduction
This chapter contains presentation and discussion of the research findings. The first
section of the chapter discusses respon dent’s characteristics, section two discusses the
criteria used to motivate the employees at Vodacom Tanzania Limited. Section three
presents the obstacles in motivating the employees and finally the last section gives the
impact of motivation on employees’ performance.
4.2 Characteristics of the Respondents
This section presents background characteristics of the respondents; it presents
respondents variability in their profiles based on questions asked. This section intended
to explore respondents’ composition in terms of age, gender and level of education.
4.2.1 Respondents Distribution by Age
The study found out that age of the respondents contains different composition of all age
groups as illustrated in Table 4.1. It found out that majority of the respondents (52.4
percent) were aged between 18 to 24 years. The study found out that a significant
number of the respondents (31.7 percent) were aged between 25 to 34 years. The results
also show that only a tiny portion (6.3 percent) was between 35 to 44 years old. Further,
the study found small number of the respondents (6.3 percent) and (3.2 percent) were
aged between 45 and 55 and above 55 respectively. This indicates that the study
involved all age groups, which brings a sense of reliability. Therefore, respondents’
suggestions and recommendations will be considered.

38
Table 4.2: Age Distribution of the Respondents
Age Frequency Percent Valid Percent
Cumulative
Percent
Valid 18-24 33 52.4 52.4 52.4
25-34 20 31.7 31.7 84.1
35-44 4 6.3 6.3 90.5
45-55 4 6.3 6.3 96.8
55+ 2 3.2 3.2 100.0
Total 63 100.0 100.0
Source: Field Data, (2014)
4.2.2 Respondents Distribution by Gender
The study examined gender of the respondents. The study contacted both males and
females and it was found that a large number of the respondents were males. The study
found out that, out of the 63 respondents, 63.5 percent were males whereas minority of
the respondents (36.5 percent) was females. Table 4.2 below illustrates gender
distribution of the respondents.
Table 4.3: Gender Mix of the Respondents
Sex Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 40 63.5 63.5 63.5
Female 23 36.5 36.5 100.0
Total 63 100.0 100.0
Source: Field Data, (2014).

39
4.2.3 Respondents Distribution by Level of Education
The study examined the level of education of the respondents. The study found out that a
small number of the respondents (7.9 percent) had postgraduate diploma and masters. In
addition, the study found out that of the 63 respondents, 11 (17.4 percent) had primary
education, whereas (26.9 percent) of the respondents had secondary education. Figure
4.1 presents respondents distribution by level of education. It is observed that, an
average portion of the respondents (23.8 percent) identified had certificate in any
training meanwhile (14.2 percent) of the respondents had a first degree/advanced
diploma. Moreover another portion of respondents (9.5 percent) had a diploma level of
education.
Table 4. 4: Level of Education Attained by Respondents
Level of Education Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Primary Education 11 17.4 17.4 17.4
Secondary Education 17 26.9 26.9 44.3
Certificate 15 23.4 23.4 67.7
Diploma 6 9.5 9.5 77.2
First Degree 9 14.2 14.2 91.4
Masters 5 7.9 7.9 100.0
Total 63 100.0 100.0
Source: Field Data, (2014)

40
4.2.4 Occupation of the Respondents
The study examined occupation of the respondents. The respondents were asked to
identify their occupation. From their replies the study found out that a large number of
the respondents (46 percent) were subordinates employees. Also, the study found
significant number of the respondents (11.1 percent) were Human Resource Officers.
Further, the study found out that a small number of the respondents (4.8 percent) were
Quality Managers and (6.3 percent) were Sales Officers. This indicated that the study
involved respondents with sufficient background on employers’motivation and its
impact on the performance of employees towards goal attainment of the organization.
Furthermore, the study found out that of the 63 respondents, 20 (31.7 percent) were
operational officers, as presented in Table 4.4 below.
Table 4.5: Occupation of the Respondents
Occupation Frequency Percent Valid Percent Cumulative Percent
Valid Subordinate
employees 29 46.0 46.0 46.0
Human
Resources
Officers
7 11.1 11.1 57.1
Quality
Managers 3 4.8 4.8 61.9
Sales
Officers 4 6.3 6.3 68.3
Operational
Officers 20 31.7 31.7 100.0
Total 63 100.0 100.0
Source: Field Data, (2014)

41
Table 4.4 presents occupation of the respondents. The study found out that, respondents
have different positions. The study found out that large a number of the respondents
(46.0 percent) were subordinate employees, as illustrated in Figure 4.4 below.
Table 4. 6: Respondents’ Occupations
Level of Education Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Subordinate employee 29 44.0 44.0 44.0
HR officer 7 11.1 11.1 55.1
Quality Managers 3 4.8 4.8 59.9
Sales officers 4 6.3 6.3 66.2
Operation officers 20 31.7 31.7 100.0
Total 63 100.0 100.0
Source: Field Data, (2014)
Table 4.5 shows occupation of the respondents. It is revealed that, out of the 63
respondents, 29 (46.0 percent) were subordinate employees. Also, the study found out
that a significant number of the respondents 20 (31.7 percent) were Operation Officers.
A small number of the respondents, namely 4.8 and 6.3 were Quality Managers and
Sales Officers respectively.
4.3 Results for Research Objectives
This section presents the findings of the study in line with the objectives of the study.

42
The first part of this section presents the criteria used to motivate the employees whereas
the obstacles faced in motivating the employees are presented in the second part. Part
three of the chapter explores how an organization motivates its employees. The last
section of the chapter explains the impact of motivation on employees’ performance.
4.3.1 The Criteria Used to Motivate Employees
The study identified the criteria used to motivate the employees. Respondents were
asked if they were aware of the criteria used by Vodacom Tanzania Limited to motivate
employees. The study found out that, majority of the respondents (96.8 percent) were
aware of the criteria used to motivate the employees.
Table 4.7: Awareness of the Criteria Used to Motivate the Employees
Awareness Frequency Percent Valid Percent Cumulative
Percent
Valid Yes 61 96.8 96.8 96.8
No 2 3.2 3.2 100.0
Total 63 100.0 100.0
Source: Field Data, (2014)
Table 4.6 presents respondents awareness of the criteria used to motivate the employees.
The study found that, minority of the respondents were not aware of the criteria used to
motivate the employees.
Further, respondents were asked to identify the criteria used to motivate the employees.
The study found that majority of the respondents (53.9 percent) identified provision of a

43
positive working environment for employee as a major criteria used by Vodacom
Tanzania Limited to motivate their employees, as presented in Table 4.7 below.
Table 4.8: The Criteria Used to Motivate Employees
Motivation Criteria Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Provide a Positive
Working Environment 34 53.9 53.9 53.9
Recognize, Reward and
Reinforce the Right
Behavior
14 22.2 22.2 76.1
Employee Relationship 5 7.9 7.9 84
Develop Skills and
Potential 7 11.1 11.1 95.1
Evaluate and Measure 3 4.7 4.7 100.0
Total 63 100.0 100.0
Source: Field Data, (2014).
Table 4.7 shows the criteria used to motivate the employees. The study found out that a
small number of the respondents (4.7 percent) identified that evaluation and
measurement as the criteria used by the company to motivate employees. Further, a
small number of respondents (7.9 percent) identified employee relationship as the
criteria used to motivate employees at the company. This relates to the study made by
Mayo (2013), whereby the study found that employee relations involved the body of

44
work concerned with maintaining employer and employee relationships that contributes
to satisfactory productivity, motivation and morale. Essentially, Employee Relations is
concerned with preventing and resolving problems involving individuals or that affect
work situations. For Vodacom Tanzania Limited, training and advice is provided to
Supervisors on how to correct poor performance and employee misconduct. In such
instances, progressive discipline and other requirements must be considered in effecting
disciplinary actions and in resolving employee grievances and appeals. Information is
provided to employees to promote a better understanding of Management's goals and
policies. Information is also provided to employees to assist them in correcting poor
performance, on or off duty misconduct, and/or to address personal issues that affect
them in the workplace. Employees are advised about applicable procedures, regulations,
legislation and bargaining agreements. Employees are also advised about their grievance
and appeal rights and discrimination.
Meanwhile a good number of respondents (11.1 percent) recognized development of
skills and other potential as the criteria used to motivate employees at Vodacom
Tanzania Limited. However a good number of respondents (22.2 percent) identified to
recognize, reward and reinforce the right behaviour as the criteria used to motivate
employees at an organization. This relates to the study made by Mboya (2010), which
provides that employee rewards is one of the strategies to motivate employees. In
addition to using pay incentives to reward the employee for reaching company goals and
demonstrating loyalty to the organization, efforts can be made by the organization to
improve job satisfaction. This may also increase the numbers of talented employees who
stay in the company. Incentive pay may consist of cash bonuses for employees upon
reaching pre-determined goals. The bonus is normally tied to accounting measures and

45
many times specifically to the employee’s job area.
A large number of respondents (53.9 percent) acknowledged provision of positive
working environment as the criteria used to motivate employees at Vodacom Tanzania
Limited. This is similar to the study made by Miner (2013), which found out that
working environment in terms of office layout is good which leads the company to have
better communication among all departments and promotes efficiency as it follows the
flow of work. Further the layout provides for joint use of machines and equipment and
optimum use, therefore a good layout aims at providing best working conditions. This
improves morale of staff. Working environment in terms of working facilities were
found to be enough office equipment such as printers, photocopy machines, computer,
chairs, tables, adequate lighting and access of internet. These working facilities cause
employees to feel comfortable during the working hours. Figure 4.4 illustrates the
criteria used to motivate employees.
0
5
10
15
20
25
30
35
40
Provide a positive working environmentRecognize, Reward and reinforce the right behaviourEmployee RelationshipDevelop skills and potentialEvaluate and measure
Number of Respondents
Criteria Used
Figure 4. 1: The Criteria Used To Motivate Employees
Source: Field Data, (2014).

46
Figure 4.1 presents the criteria used to motivate employees. The study found there are
different ways used to motivate employees. The study found out that of the 63
respondents, 34 (53.9 percent) identified that the company provided a positive working
environment. This implies that, for large extent the company depends on positive
working environment to motivate employees. Also, the study found that, out of 63
respondents, 14 (22.2 percent) suggested that, the company should recognize, reward
and reinforce the right behavior.
Furthermore, the study was interested to examine if criteria used by the company has
positive impact on employees’ performance. The study foundout that majority of the
respondents (55.5 percent) agree that criteria used by the company has positive impact
on employees’ performance, as presented in Table 4.8
Table 4.9: Motivation Criteria has Positive Impact on Employees’ Performance
Responses Frequency Percent Valid Percent
Cumulative
Percent
Valid Strong Agree 8 12.6 12.6 12.6
Agree 35 55.5 55.5 68.1
Neutral 2 3.2 3.2 71.3
Disagree 11 17.4 17.4 88.8
Strong Disagree 7 11.1 11.1 100
Total 63 100.0 100.0
Source: Field Data, (2014).

47
Table 4.8 presents responses on whether motivation criteria used by the company has
positive impact on employees’ performance. Thestudy found out that, majority of the
respondents (55.5 percent) agrees that motivation criteria used by the company has
positive impact on employees’ performance. This is similar to the study conducted
Miner, (2013), the study found that, most of the motivation criteria used by the company
has positive impact on employees’ performance.
Also, the study found that important number of the respondents (12.5 percent) strongly
agree that motivation criteria used by the company has positive impact on employe
performance. Small number of the respondents (11.1 percent) strongly disagree that
motivationcriteria used by the companyhas positive impact on employees’
performance.
4.3.2 Obstacles in Motivating the Employees
The study examined the obstacles faced in motivating the employees. Respondents were
asked if they were aware of the obstacles facing the company when motivating the
employees. The study found that, majority of the respondents (92.1 percent) were aware
of the obstacles facing the company when motivating the employees, as presented in
Table 4.9.
Table 4. 10: Awareness of Obstacles Facing Motivation Programs
Awareness
Frequency Percent Valid Percent Cumulative
Percent
Valid Yes 58 92.1 92.1 92.1
No 5 7.9 7.9 100.0
Total 63 100.0 100.0
Field Data, (2014)

48
In addition, respondents were asked to identify the obstacles which face the organization
in motivating employees. The study found out that the majority of the respondents (41.2
percent) identified employee turnover as the main challenge or obstacle in motivating
employees at the company, as presented in the Table 4.10
Table 4. 11: Obstacles in Motivating the Employees
Obstacles Frequency Percent Valid Percent Cumulative
Percent
Valid Inadequate managerial
competence and
knowledge
8 12.6 12.6 12.6
Level of education 10 15.8 15.8 28.4
Employee Turn-over 26 41.2 41.2 69.6
Variation in Employee
Desire 12 19.0 19.0 88.6
Consumption
expenditure by the
company
7 11.1 11.1 100
Total 63 100.0 100.0
Source: Field Data, (2014).
Table 4.8 offers the obstacles in motivating employees. The study found out of 63
responders 7 (11.1 percent) identified consumption expenditure by the company as the
obstacle in motivating the employees at an organization. Moreover, a number of
respondents (12.6 percent) identified inadequate managerial competence and knowledge
as one the major obstacles in motivating employees at an organization. This is similar to

49
the study made by Latham, (2007), the study that found out the Management could be
the problem in provision of motivation decisions, the Management of the bank is
supposed to provide motivational decision and initiating motivation issues, but small
number of respondents identified that the bank Management failed to act effectively to
ensure employees were motivated. The effect is that when the bank has effective
Management means employees will be enjoying to stay in an organization, therefore
increase performance of the organization without an effective Management leads to
underperformance. Meanwhile an average number of respondents (15.8 percent)
recognized the level of education as an obstacle in motivating employees.
A significant number of respondents (19 percent ) acknowledged variation of employees’
desires as an obstacle for motivating employees at the organization. This is similar to the
study made by Memmott and Growers, (2012), where the study found variation of the
employee’s desire is among the challenges in employees’motivation to human resource
retentions. Employees are motivated by different factors, there is no a single factor for
motivating all employees. The study found the employees have different desire, but most
of them need high salary while an important number of employees need training and
development. The effect of variation of employee desire may cause increase in the rate
of labour turnover because of various types of motivation needed by each employees
such as salary, recognition, training and development. Management should improve
salary, training and development in order to retain their employees otherwise they will
not retain their staff.
However, a large number of respondents (41.2 percent) identified employee turnover as
the main obstacles in motivating employees. This relates to the study made by Miner

50
(2013), the study found change in work force was among the challenges in employee’s
motivation. Low retention rate affect motivational strategic decisions, this means high
retention rate favor strategic decisions results to effective motivation strategies, but a
significant number of respondents identified the company facing changes in the labour
force, affected strategic decisions. These changes in workforce were due to dissatisfied
types of motivation offered at the bank such as salary, house allowance, and recognition
and overtime allowance. Figure 4.2 illustrates obstacles in motivating the employees
Figure 4. 2: Obstacles in Motivating the Employees
Source: Field Data, (2014).
Figure 4.2 shows obstacles in motivating employees. The study found out that, the large
number of the respondents, 26 (41.2 percent) identified employee turnover as a major
obstacle in motivating employee. This implies that to same extent the company faces
labour mobility problem. Also, the study revealed that out of 63 respondents, 12 (19.0
percent) identified variation of employees desire.

51
Moreover, the study was also interested to examine if the company has made some effort
to overcome obstacles in motivating the employees. The study found out that, a large
number of the respondents (46.0 percent) agree that the company has made some effort
to overcome obstacles in motivating the employees, as presented in Table 4.11.
Table 4.12: The Company has Made Some Effort to Overcome Obstacles Facing
Motivation
Responses Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Agree 7 11.1 11.1 11.1
Agree 29 46.0 46.0 57.1
Neutral 1 1.6 1.6 58.7
Disagree 19 30.2 30.2 88.9
Strongly Disagree 7 11.1 11.1 100
Total 63 100.0 100.0
Source: Field Data, (2014).
Table 4.11 presents responses on whether the company has made some effort to
overcome obstacles in motivating the employees. The study found out that, a small
number of the respondents (11.1 percent) strongly agree that, the company has made
some effort to overcome obstacles in motivating the employees. Also, the study found
out that, important number of the respondents (30.2 percent) disagree that the company
has made some effort to overcome obstacles in motivating the employees. During
interview, one respondent revealed that:

52
“The company has made some effort to overcome obstacles facing
motivation. An effective way of overcoming challenges facing motivations
in an organization involves the provision of training to HR officials. The
effects of investing in appropriate training for an employee will develop a
greater sense of self-worth as they become more valuable to the
company. The company, too, will gain specific benefits from training and
developing its workers, including increased productivity, reduced
employee turnover and decreased need for constant supervision.
However, the fear for many companies is that they spend time and money
developing people, only to see them take those newly acquired skills to
another company.”
4.3.3 Impact of Motivation
The study was interested to examine the impactsof motivationon employees’
performance. Respondents were asked to identify if they were aware of the impacts of
motivationon employees’performance. The study found that majority of the
respondents (79.4 percent) were aware of the impacts of motivation on employees’
performance, as presented in Table 4.12 below.
Table 4.13: Awareness on the Impacts of Motivation on Employees’ Performance
Responses Frequency Percent Valid Percent Cumulative
Percent
Valid Yes 50 79.4 79.4 79.4
No 13 20.6 20.6 100.0
Total 63 100.0 100.0
Source: Field Data, (2014).

53
Table 4.10 present respondents ’ awareness on the impacts of mo tivation on employees’
performances. The study found out that majority of the respondents (79.4 percent) were
aware of the impacts of motivation on employees ’ performance. Also, the studyfound
that, minority of the respondents (20.6 percent) were not aware of the impacts of
motivation on employees’ performance.
The study also requested respondents to identify the impacts of motivation on
employees’ performance. The study found that, there a different outcomes w
company motivates employees. The study found that majority of the respondents (57.1
percent) identified that, motivation programs increase employees ’ morale, as presented
in Table 4.13.
Table 4. 14: The Impacts of Motivation on Employees’ Performance
Impacts of Motivation Frequency Percent Valid Percent
Cumulative
Percent
Valid Increase Retention Rate 21 33.3 33.3 33.3
Increase Employee
Morale 36 57.1 57.1 90.4
Increase Efficiency 6 9.6 9.6 100.0
Total 63 100.0 100.0
Source: Field Data, (2014).
Table 4.11 presents the impacts of motivation on employees’ performance. The
found that, majority of the respondents (57.1 percent) identified that motivation
programs increase employee morale. This is similar to the study conducted by Mayo,
(2013), which study found that, motivation play significant role in improving employee

54
morale. A good motivation strategy tends to satisfy employees and increase emplo
morale.
The study also found that a significant number of the respondents (33.3 percent)
identified that, motivation programs increase employee retention rate. This relates to the
study made by Manase (2008), which found that effective motivation programs retain
employees. The study further found that a small number of the respondents identified
that motivation increases efficiency.

55
CHAPTER FIVE
5.0 DISCUSSION OF FINDINDS, CONCLUSION AND
RECOMMENDATIONS
5.1 Introduction
This chapter provides discussion of findings, conclusion and recommendations of the
study. The first section of the chapter provides discussion of the finding. Section two of
the chapter gives conclusion while recommendations of the study are discussed in
section three.
5.2 Discussion of Findings
5.2.1 What are the Criteria which are being used by Companies in Motivating
their Employees?
The study found that there are various criteria used by the companies to motivate their
employees. In addition, the study found out that the majority of the respondents (53.9
percent) identified provision of a positive working environment for employees as a
major criteria used by the company to motivate their employees. This is similar to the
study conducted by Riley (2009), the study found that, the best way of motivating
employees involves the creation of positive working environment for employees. Miner
(2013), suggested that, the process of creating positive working environment should
ensure employees are empowered. The main driving force of empowerment is having
larger control over ‘how’ jobs are done and carried for moregrowth and productivity
(Charles and Marshall, 2012).

56
Empowering makes employees feel that they are appreciated and for making it possible
continuous and positive feedback on their performance is essential (Katz, 2006).
According to Pastor (1996), for victorious appliance of empowerment it is essential for
an individual to do efforts and take actions in an environment where they are responsible
for what they are doing (Manase, 2008). Employee contribution and their energetic
participation in configuring up the organization are tremendously essential to the hale
and hearty place of work (Matthew, 2009).
Also, the study found out that, important number of the respondents (22.2 percent)
identified that recognition, reward and reinforcing the right behavior as another criteria
used by the company to motivate employees. According to Alkandari (2009), rewards
and recognition are essential factors in enhancing employee job satisfaction and work
motivation which is directly associated to organizational achievement. Garry (2008),
found that, that deficiency of appropriate recognition and rewarding reduces employees
work motivation and job satisfaction. Hence, administration of organizations and
institutions should build up the arrangement for giving that rewards and recognition to
enhance employee job satisfaction and motivational level
5.2.2 What are the Obstacles facing Companies in Motivating their Employees?
The study found out that the majority of the respondents (41.2 percent) identified
employee turnover as the main challenge or obstacle in motivating employees at the
company. This relates to the study conducted by Charles and Marshall (2012), the study
found that, high employee turnover is a major challenge in motivating employees. High
employee turnover makes the attainment of goals of organization unrealistic and
unachievable.

57
Also, the study found that, variation in employee desire is one of the obstacle in
motivating employees. According to Mullins (2007), human beings are motivated by
satisfying their different kind of needs. Needs depend on many factors and vary by the
person, situation, organization, nature of works, risk, educational background of
employees, experiences and skills, position of work. The factors affecting the
employee's motivation working at the company might be different from the factors of
other categories in the organization (Latham, 2007).
5.2.3 What are the Iimpacts of Mmotivation on Eemployees’’ Pperformance?
The study was interestedto examinethe impactof motivationon employees’
performance. The study found that, effective motivation programs increase retention
rate, employee morale and efficiency. This relate to the study made by Bjorklund
(2011), the study found that, employee empowerment and employee motivation towards
organizational tasks have direct and positive relationship between them. The motivated
employees’ works best in the interest of the organizations which leads them
growth, prosperity and productivity. Dessler (2008), found that the employee motivation
and organizational effectiveness are directly related. This is also proven by the study
conducted by Latham (2007). So the organizations should work out and make such
policies and organizational structures that support employee recognition and
empowerment.
An internally satisfied, delighted and motivated worker or employee is actually a
productive employee in an organization which contributes in efficiency and
effectiveness of organization which leads to maximization of profits. Thus from the
literature and various studies the third hypothesis is fully supported that there exists a

58
positive relationship between employee motivation and organizational effectiveness
(Johnson, 2007).
According to Ryan and Deci (2010), for achieving prosperity, organizations design
different strategies to compete with the competitors and for increasing the performance
of the organizations. Very few organizations believe that the human personnel and
employees of any organization are its main assets which can lead them to success or if
not focused well, to decline. Unless and until, the employees of any organization are
satisfied with it, are motivated for the tasks fulfillment and goals achievements and
encouraged, none of the organization can progress or achieve success (Miner, 2013).
5.3 Conclusion
5.3.1 Criteria used to Motivate Employees
The study concludes that there are various criteria used to motivate the employees.
These involves providing a positive working environment; recognition, reward and
reinforcing the right behavior; employee relations; developing skills and other potential
and evaluation and measurement.
The study concludes that, there is a need to provide positive working environment in
order to motivate employees. Nature of work and its surrounding environment is the
factor that affects the level of motivation of employee significantly. However, good
working conditions cannot motivate the employees in themselves, but can determine the
employee's performance and productivity. In addition, recognition and empowerment
play an essential part in enhancing employee motivation towards organizational tasks.
By appreciating the employees for their work done and giving them participation in

59
decision making, internally satisfies them with their job, organization and organizational
environment.
The study concludes further that to motivate employees the company should provide
employee compensation, social recognition and performance related pay. Finally, the
study concluded that to remove obstacles facing motivation, the company should use
non monetary rewards to motivate employees.
5.3.2 Obstacles in Motivating Employees
The study concludes also that there are different obstacles facing the company when
motivating employees. The study concludes that, employee turnover, is a major obstacle
facing motivation. High employee turnover affect motivation programs emplaced by the
company. This makes the attainment of goals of organization unrealistic and
unachievable. Every organization invests time and money to groom a new joiner, make
him a corporate ready material and bring him at par with the existing employees. The
organization is completely at a loss when the employees leave their job once they are
fully trained. Employee retention takes into account the various measures taken so that
an individual stays in an organization for the maximum period of time.
5.3.3 The Impacts of Motivation on Employees’ Performance
The study concludes that the motivated employees’ works best in the intere
organizations which leads them towards growth, prosperity and productivity. Thus the
employee motivation and organizational effectiveness are directly related.
Motivation is a set of courses concerned with a kind of strength that boosts performance
and directs towards accomplishing some definite targets. Motivation has played

60
significant role in improving employees performance. Motivation cause satisfaction of
the employee which directly influences performance of the employee.
5.4 Recommendations
1) Motivation plays a fundamental role in improving employees’performance.
Therefore employers should be committed to put in place appropriate incentive
plans that will encourage workers to be more purposeful and improve their
performance.
2) Managers should also give full attention to their employees and take interest in
their working process. They should motivate their employee towards tasks.
3) Managers’attitude plays a vital role in facilitating employee retention and
discouraging labour turnover. So Manager s’ attitude should be friendly and
unbiased with everyone. Similarly employees should behave in a proper manner.
They should respect their manager to get the same response.
4) The Managements should improve on the most dissatisfying types of motivations
such as positive working environment and recognition, rewarding and
reinforcing the right behavior as an effective way for retaining their employees.
5) Based on the strategies worked at Vodacom Tanzania Limited, organizations
should employ other strategies such as making the employees own their jobs,
recognition, departmental competition, motivation through bonuses and
incentives such as good working environment for employees.
6) Organizations should not rely solely on salary, bonus or other monetary and
nonmonetary incentives to motivate the diverse workforce due to the limitations
it brings. There are various ways for motivating employees.

61
7) Organizations should put arrangement in place for giving out rewards and
recognition to enhance employees’ job satisfaction and motivational levels; since
motivation plays a significant role in enhancing employees’ performance.
8) Organizations should provide training to managers in order to improve
managerial competence and knowledge; organize various internal and external
trainings in order help the managers to learn something extra apart from their
routine work.
9) Organizations should design their rules, policies and organizational structures
that facilitate the employees to work well and appreciate them in order to achieve
tasks fulfillment.
10) Management should improve working conditions. Improving working conditions
at work places encourages retention of productive workers in the organizations
and reduces their turnover.

62
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Institute of Science and Technology, Madanapalle.

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Tenone, M. (2005). Just For the Money. An Economic Theory of Personal Motivation.
Cheltenham: Edward Elgar Publishing.

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APPENDICES
Appendix A: Questionnaire
Dear Respondent,
This is an HRM research study on “Assessmentof Motivation and its Impact on
Employees’ Performance in Goal Attainment: A Case of Vodacom Tanzania Limited. ”
The questionnaire is seeking your invaluable opinion on this subject. The results of this
dissertation could go a long way in providing solution to the problem, with appropriate
knowledge when dealing with employees.
Please, answer the questionnaire as fully as possible. Your responses will remain totally
confidential and at no time be directly attributed back to you. Instead, they will be
aggregated with responses from other subjects in the survey. Please do not write your
name on the questionnaire.
Thank you.
Section A: General information
1. Age
a) 18-24 [ ]
b) 25-34 [ ]
c) 35-44 [ ]
d) 45-55 [ ]
e) 55+ [ ]
2. Gender
a) Male [ ]
b) Female [ ]
3. Level of education
a) Primary School [ ]
b) Secondary School [ ]

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c) Certificate in any training [ ]
d) Diploma [ ]
e) First Degree [ ]
f) Masters/Phd [ ]
4. Occupation
a) Operation Officer [ ]
b) Human Resource Officers [ ]
c) Sales officers [ ]
Others, please specify…………………………………
Section B: Criteria used for Motivation
5. Do you understand criteria used by the company to motivate the employees?
a) Yes [ ]
b) No [ ]
6. What are the criteria used to motivate the employees
a) Provide a positive working environment [ ]
b) Recognize, Reward and reinforce the right behavior [ ]
c) Employee Relationship [ ]
d) Develop skills and potential [ ]
7. What are other criteria used to motivate the employees. Please mention?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
8. What is a major criteria used to motivate the employees?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

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9. Motivation criteria used by the company has positive impact on employees’
performance?
a) Agree [ ]
b) Strongly Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strongly Disagree [ ]
10. Motivation criteria used by the company facilitates the company goal
attainment?
a) Agree [ ]
b) Strongly Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strongly Disagree [ ]
Section C: Obstacles in Motivating the Employees
11. Do you understand obstacles facing the company when motivating the
employees?
a) Yes [ ]
b) No [ ]
12. What are obstacles in motivating the employees?
a) Inadequate managerial competence and knowledge [ ]
b) Level of education [ ]
c) Employee Turn-over [ ]
d) Variation in Employee Desire [ ]
e) Consumption expenditure by the company [ ]
13. What are other obstacles in motivating the employees?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

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14. The company has made some effort to overcome obstacles in motivating the
employees?
a) Agree [ ]
b) Strongly Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strongly Disagree [ ]
15. Variation of employees’ desire is a major obstacle in motivating the employees?
a) Agree [ ]
b) Strong Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strong Disagree [ ]
Section D: Impact of Motivation
16. Do you understand the impact of employees’ motivation in your company?
a) Yes [ ]
b) No [ ]
17. What are the impacts of motivation on employees’ performance?
a) Increase retention rate [ ]
b) Increase employee morale [ ]
c) Increase efficiency [ ]
18. How motivations increase employees’ performance?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
19. Employees’ motivation has positive impact on employees’ performance?
a) Agree [ ]

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b) Strong Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strong Disagree [ ]
20. Employees motivation increase the company performance?
a) Agree [ ]
b) Strong Agree [ ]
c) Neutral [ ]
d) Disagree [ ]
e) Strong Disagree [ ]
Appendix B: Interview Guide
1. What are the criteria which are being used by companies in motivating their
employees?
2. What are the best criteria used by companies in motivating their employees?
3. What should be done to improve criteria used by companies in motivating their
employees?
4. What are the obstacles which face companies in motivating their employees?
5. Do you think the company is able to overcome obstacles during motivation
process?
6. What should be done reduce obstacles which face companies in motivating their
employees?
7. What are the impacts of motivation on employees’ performance?
8. Do you think motivation programs increase employees’ performance?