Assessment of the Effect of Motivational Factors on the Performance of Employees in Selected SMEs in FCT-Abuja, Nigeria

Abstract

The study assessed the effect of motivational factors on the performance of employees among SMEs in FCT-Abuja, Nigeria covering a period of 5 years from 2016-2020. The primary objective of the study was to examine the effect of motivation by looking at both “intrinsic and extrinsic motivation” on the performance of employees in selected SMEs in FCT-Abuja, Nigeria. The attention of the study was on SMEs in FCT and it adopted a survey research design. The population consists of 533 SMEs. Taro Yamane’s formula was used to determine the sample size of 289 employers and infinite sample size of 246 for customers/employees. Questionnaire was used as a method of data collection and were administered to the respondents. Multiple regression analysis was used as statistical tool. The findings revealed that motivation as a positive and significant effect on employees’ performance in SMEs in FCT-Abuja, Nigeria. The study revealed that intrinsic motivation has a positive and significant effect on employees’ performance in SMEs in Abuja. Also, extrinsic motivation has a positive and significant effect on employees’ performance in SMEs in FCT-Abuja, Nigeria. The study recommends that SMEs in FCT-Abuja should continue to effectively apply motivation to ensure that employees of the organization adequately perform the work by being committed to the objectives and goal of the organization. Also, SMEs in FCT-Abuja, Nigeria should to ensure that they give employees’ opportunity for self-development and recognition the employees’ effort in performing their work. They should also give employees empowerment opportunities to advance in their career.