BUSINESS ADMINISTRATION

THE IMPORTANCE OF EMPLOYEE PROMOTION IN BUSINESS ORGANIZATION

THE IMPORTANCE OF EMPLOYEE PROMOTION IN BUSINESS ORGANIZATION

ABSTRACT

This study shows the Importance of Employee Promotion in Business Organization, A Study of Guinness Nigeria Plc.  This study concentrates on four factors or standards (these are promotion and interest in jobs, promotion and job satisfaction, promotion and better service and promotion and organizational goals and objectives) which affect organizational performance. These factors are posed as questions in the questionnaire (the research methodology) which were administered to the respondents; while the secondary data are the information’s acquired through the use of text books, journals and website.  These standards are used to measure the organizational performance. Using a detailed data analytical technique, the chi – square, this study shows that organizational effectiveness can be achieved to a great extent with solid reward structure and that corporate reward policy influence individual employees behaviour. In most organizations, particularly the business organizations the issue of employee promotion has become a controversial issue between the management and the personnel. As a result of this career aims were aborted and organizational goals and objectives were hindered in a retrogressive manner.  The objectives is to determine the role of promotion in motivation of individuals towards having more interest in their jobs, to study the effect of promotion in motivating individual, to determine whether the increased salary package that followed promotion motivate individual towards rendering better services and also to investigate whether individuals to pursue after organizational goals and objectives in Guinness Nigeria Plc.  The findings of this research rejects hypothesis which stated that there is no significant difference between the promotion and individual interest on their jobs in Guinness Nigeria Plc., there is no significant difference between promotion and job satisfaction on the job, there is no significant difference between increased salary package that followed promotion and rendering better service.  Delayed promotion should be stopped and it should be given as at when due.  Award and appreciation should be used to encourage the workers toward job satisfaction.

CHAPTER ONE

INTRODUCTION

1.1.BACKGROUNG TO THE STUDY

Promotion is simply defined as an act of placing a worker or moving him to a more important job or rank in a company or organization.  Some things are attached to the promotion of workers such as incentives, increased allowances and salary packages, accommodation, drivers, messengers and company cars. The sole purpose of promotion in any business organization is to motivate the workers towards achieving organizational goals.  Certain job positions with excellent promotion prospects have been the objects of hot pursuits and desires of workers in any business organization. The advancement of an employee from one job position to another job position that has a higher salary range, a higher job title and often more and higher level job responsibilities is called a Promotion.  Sometimes a promotion result in an employee taking on responsibility for managing or overseeing the work of other employees.  Decision making authority tends to rise with a promotion as well.  Visually, a promotion moves an employee’s job up one level on an organizational chart. (Heathfield, 2011).

Promotion is viewed as desirable by employees because of the impact a promotion has on pay, authority, responsibility and the ability to influence broader organizational decision making.  Promotion raises the status of the employee who receives a promotion which is a visible sign of esteem from the employer (Heathfield, 2011). Promotion is a form of recognition for employees who make significant and effective work contributions.  Consequently, a dilemma arises in organizations since repeated promotions generally place on employee in a management role. Employers are challenged to provide alternative career paths for employees who deserve the benefits and recognition provided by a promotion but do not aspire to manage the work of other employees.

Individual contributors must be eligible for promotions that recognize and reward their role as contributors.  Promotion is a powerful communication tool about is valued within an organization.  Thus, a promotion must be available to employees who pay any role in the contribution of work and value. People will be persuaded to give their best in their jobs if they are motivated through promotion.  To be motivated means to be moved to do something. Excitement, interest and enthusiasm towards are the primary components of job satisfaction and to motivate those rendering better services to the organization. Promoted workers are easily moved to pursue after organizational goals and objectives.

Guinness Nigeria Plc. is an outstanding example of industry that came from abroad.  The Ikeja Brewery was the third Guinness Brewery to be built and the first to be built outside the United Kingdom and Ireland.  In 1939, the second Brewery was established in London.  In the late 1940s and 1950s, Nigeria became the best Guinness overseas market.  Guinness stout has been produced in Nigeria since December 1962 and the company is providing employment for approximately 4500 Nigerians.  The company also has a complex and modern organization for marketing Guinness Stout and Harp.  Training for more responsible position is continually being carried on in all aspects of company’s activities. The research work examines the importance of employee promotion in business organizations using Guinness Nigeria Plc. as a case study.

1.2.  STATEMENT OF PROBLEM

In most organizations, particularly the business organizations the issue of employee promotion has become a controversial issue between the management and the personnel.  Some workers whose promotion are long overdue were either unnecessarily denied and delayed.  As a result of this career aims were aborted and organizational goals and objectives were hindered in a retrogressive manner.

1.3.  RESEARCH QUESTIONS

1. How will promotion motivates individuals towards having more interest in their jobs in Guinness Nigeria Plc.?

2. How will promotion motivates individuals towards having job satisfaction in their jobs in Guinness Nigeria Plc.?

3. How will increased salary package that followed promotion motivate individuals towards rendering better services in Guinness Nigeria Plc.?

4. How will individuals placed on higher ranks after promotion be motivated to pursue after organizational goals and objectives in Guinness Nigeria Plc.?

1.4.RESEARCH HYPOTEHSIS

HO1:  There is no significant difference between the promotion and individual interest on their jobs in Guinness Nigeria Plc.

HO2:  There is no significant difference between the promotion and jobs satisfaction on their job.

HO3:  There is no significant difference between increased salary package that followed promotion and rendering better services in Guinness Nigeria Plc.

HO4:  There is no significant difference between the promotion of individuals to higher ranks and their pursuits organizational goals and objectives in Guinness Nigeria Plc.

1.5.  OBJECTIVES OF THE STUDY

1. To determine the role of promotion in motivation of individuals towards having more interest in their jobs in Guinness Nigeria Plc.

2. To study the effects of promotion in motivating individuals towards having job in satisfaction in their job in Guinness Nigeria Plc.

3. To determine whether the increased salary package that followed promotion motivate individuals towards rendering better services in Guinness Nigeria Plc.

4.  To investigate whether individuals placed on higher ranks after promotion motivate individuals to pursue after organizational goals and objectives in Guinness Nigeria Plc.

1.6.  SCOPE OF THE STUDY

The research is explorative research strategy with a view to examine the importance of employee promotion in Guinness Nigeria Plc.  the study would be limited to the branch located at Ibadan, Oyo State.

1.7.  SIGNIFICANCE OF THE STUDY

The beneficiaries are the management, the workers and the academic researchers.  The outcome of this research study will illuminate the effects of promotion on the workers and the organization.

1.8.  OPERATIONAL DEFINITION OF TERMS

Promotion: The advancement of an employees from one job position to another job position that has a higher salary range, a higher level of job title and often more and higher level job responsibilities.  (Toolika, 2010).

Upgradation: The job is promoted in the organizational hierarchy whereby the employee has higher salary, power and responsibility. (Tooloka, 2010)

Appreciation: The recognition and encouragement of employees to perform better and to retain them.  (Iceman, 2011).

Bonuses: The gifts offered in cash or in kind to motivated the employees so that he can be very thankful, happy and satisfied. (Iceman, 2011).

Awards: The recognition of a derserving employee’s efforts and hard work (Iceman, 2011).

Maslow’s Hierarchy of Need:  The need based theory that explain behaviour in the workplace, whereby employees strive to satisfy their needs in hierarchal order.  (Jexd and Brilt, 2008).

Equity Theory: The cognitive process theory that explains motivation in the workplace as a cognitive process of evaluation, whereby the employee seeks to achieve a balance between inputs or efforts in the workplace and the outcomes or rewards received or anticipated. (ambrose and Kulik, 1999).

Bandura’s Social Cognitive Theory: It is another cognitive process theory that offers the important concepts of self efficacy for explaining employee’s level of motivation relative to workplace tasks or goals. (McClelland, 1965).

Herzberg’s Motivation – Hygiene Theory:  It holds that the content of a person’s job is the primary source of motivation. (Jex and Brilt, 2008).

Job Performance: It represents behavious employees engage in while at work which contributed to organizational goals (Campbell, 1990. Van Dyne and Leping 1998).

Job Satisfaction: It refers to an individual positive emotional reactions to a particular job. (Okpara, 2005) (Locke, 1976).

Productive Behaviour: It is defined as employee behaviour that contributes positively to the goals and objectives of an organization. (Jex and Brilt, 2008).

REFERENCE

Heathfield, Susan M. (2011): Promotion is Often a Reward to an Employee for Work Contribution McCelland, 1965.

Jex and Britt, 2008

Ambrose and Kuhk, 1999

Campbell, 19990. Van Dyne and Lepine, 1998

Leping 1998.

Locke T. V. (1990). A Theory of Goal Setting and Task Performance.

Okpara, 2005: The Impact of Salary Differential on Managerial Job Satisfaction.

Toolika, (2010). Role of Employee Promotion.

Iceman, (2010): Role of Employee Motivation in a Business Organization.