Abstract

This study investigates the impact of employee motivation on productivity at the P&T Cooperative Credit Union in Buea, Cameroon. Grounded in classic theories of motivation—Maslow’s Hierarchy of Needs, Herzberg’s Two‑Factor Theory, Vroom’s Expectancy Theory, and Self‑Determination Theory—the research explores how both intrinsic motivators (recognition, training) and extrinsic motivators (salary, benefits) drive employee outcomes. A descriptive cross‑sectional survey was conducted among all 20 staff members, employing a structured questionnaire validated through expert review and pilot testing.

Quantitative data were analyzed using descriptive statistics and Pearson’s and Spearman’s correlation coefficients. Findings reveal that (1) competitive salary levels significantly boost output, (2) regular recognition enhances efficiency, and (3) ongoing training most strongly improves work quality.

These results not only corroborate well‑established theories but also highlight the specific dynamics within a Cameroonian cooperative context, where resource constraints make tailored motivational strategies vital. Practical recommendations include the implementation of performance‑linked pay, structured recognition programs, and comprehensive training plans.

By illuminating the nuanced interplay between motivation and productivity in a resource‑constrained setting, this research offers both actionable guidance for P&T management and empirical contributions to the broader literature on workplace motivation in developing economies.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In today’s rapidly evolving financial services landscape, especially within the cooperative banking sector, the relationship between employee motivation and productivity has increasingly taken center stage as a fundamental component of institutional development, sustainability, and overall service delivery. Employee motivation is no longer viewed as a secondary concern, but rather a strategic imperative for performance enhancement, particularly within resource-constrained economies such as Cameroon. Financial institutions like P&T Cooperative Credit Union in Buea operate within a socio-economic environment where talent retention, service quality, and operational efficiency are closely tied to the psychological and material satisfaction of employees.

Drawing from established motivational theories such as Abraham Maslow’s Hierarchy of Needs (1943) and Frederick Herzberg’s Two-Factor Theory (1959), the study places emphasis on understanding how foundational human needs and workplace conditions intersect to influence employee engagement and performance. According to Maslow, individuals are motivated in a tiered manner, beginning with the most basic physiological needs such as food, shelter, and health, and progressing through safety, belonging, esteem, and finally, self-actualization. When an organization like P&T ensures that its employees have access to adequate wages, reliable healthcare, and a secure job structure, it satisfies those lower-level needs. This foundation then unlocks the possibility for workers to pursue more intrinsic rewards like recognition, achievement, and self-improvement.

This theoretical framework finds practical relevance at P&T Buea, which, in early 2023, launched a series of initiatives aimed at addressing both the material and psychological drivers of motivation. The introduction of the performance-linked allowance a financial incentive tied directly to measurable outcomes was a deliberate move to align compensation with output. Simultaneously, the establishment of a “well-being foundational needs” program focused on ensuring a clean, safe, and mentally supportive working environment, consistent with Herzberg’s understanding of hygiene factors. Herzberg distinguished between factors that eliminate dissatisfaction (such as safe conditions, fair pay, and administrative policies) and those that actively motivate (such as achievement, responsibility, and recognition). At P&T, both layers are now increasingly being considered in workforce planning.

The 2023 interventions were not merely symbolic they were operational and strategic. For instance, ergonomic office furniture was introduced, regular health and wellness checks were institutionalized, and the frequency of team-building activities was increased to foster interpersonal trust and communication. Break rooms were upgraded, mental health resources were introduced in collaboration with local counselors, and the general ambiance of the workplace was remodeled to reflect employee comfort and dignity. These tangible environmental improvements are believed to have reduced stress-related absenteeism and enhanced overall employee disposition and readiness to serve clients efficiently.

In addition to hygiene factors, P&T sought to ignite intrinsic motivation by establishing the “Innovators in Action” program in 2024. This initiative empowered staff at all levels not just senior officers or department headsto contribute ideas aimed at improving service delivery, organizational processes, or member engagement. The most impactful suggestions were rewarded with both monetary recognition and symbolic opportunities such as participation in regional credit union symposiums. By linking innovation to opportunity, P&T communicated that creativity, initiative, and proactive thinking were valued just as much as punctuality and task completion. Employees thus began to view their roles not merely as jobs but as platforms for professional influence and personal growth.

The quantitative impact of these interventions at P&T was reflected in several key performance metrics. For instance, the average turnaround time for loan processing a critical metric in member satisfaction improved notably, falling from an average of seven working days in early 2022 to just under four days by late 2024. Similarly, internal customer satisfaction surveys indicated that clients increasingly reported improved staff friendliness, problem-solving aptitude, and responsiveness. Importantly, employee turnover rates which previously hovered around 18% annually dropped to under 9%, suggesting that the motivational policies may have also positively influenced employee retention and loyalty.

These transformations were not isolated to upper management or front-desk roles; rather, the motivational strategies pervaded all strata of the institution. Junior staff began to show increased participation in meetings, a higher number of internal referrals were recorded, and mentorship between experienced and newer employees became more commonplace. Employees were no longer merely complying with duties; they were engaging with them at a deeper, more committed level. The overall organizational culture at P&T began to reflect more openness, resilience, and cooperative synergy hallmarks of a truly motivated workforce.

Moreover, the specific context of Buea, the regional capital of the Southwest Region of Cameroon, makes the importance of employee motivation even more pressing. Buea, being a semi-urban economic hub, faces unique employment challenges. It draws a mix of skilled and semi-skilled labor but competes with both government entities and private enterprises for workforce talent. Within this setting, credit unions like P&T must use motivation not just as a retention tool but as a competitive differentiator. The success of P&T’s motivational strategies has allowed it to position itself as an employer of choice within the local finance sector. Workers at P&T began to recommend the organization as a preferred workplace, a trend noticed in employee exit interviews and during recruitment cycles.

Additionally, in 2024, internal HR audits at P&T Buea recorded a 23% increase in employee engagement scores. Engagement in this case referred to behaviors such as volunteering for extra tasks, suggesting workflow improvements, and taking ownership of member feedback. A deeper dive into employee feedback revealed that a growing number of staff identified “feeling heard” and “being appreciated” as top workplace motivators. These intangible factors often harder to quantify but easier to feel became the new pillars upon which motivational policies were being built.

The union also experimented with flexible working arrangements and rotational leadership in team projects, allowing staff to alternate roles and explore different facets of operations. This reduced monotony and introduced variety, which psychological research shows can significantly uplift motivation. The sense of autonomy this created where employees had a say in not only what they did but how they did it aligned with self-determination theory, which posits that autonomy, competence, and relatedness are fundamental to motivation.

As part of its motivation enhancement blueprint, P&T instituted semi-annual training retreats focused not just on technical skill-building but also on emotional intelligence, communication, and problem-solving under pressure. These retreats helped create a safe space for feedback, skill exchange, and interpersonal alignment among employees. The side effect of this holistic development strategy was a noticeable uptick in collaboration across departments, fewer internal conflicts, and faster resolution of inter-team issues, all of which contributed indirectly to productivity.

Furthermore, management at P&T adopted a bottom-up communication strategy during the post-implementation phase of its motivational policies. Instead of relying solely on senior managers to report on staff morale, the institution launched anonymous staff feedback mechanisms and suggestion boxes. Monthly “pulse surveys” were administered to gauge employee sentiment, with findings shared transparently during all-hands meetings. This participatory governance style encouraged staff to express concerns or recommend policy shifts without fear of retribution.

In practice, this meant that when a section of employees voiced fatigue over repetitive customer queries, the management responded by deploying new software that automated basic responses, freeing staff for more complex, fulfilling tasks. Small but responsive acts like these reinforced the message that employee voices mattered a powerful intrinsic motivator that costs little but yields substantial returns in employee goodwill.

1.2 Problem Statement

Employee motivation is a multidimensional concept that encompasses various psychological, social, and economic elements. At its core, motivation is the internal drive that propels individuals to take action and perform tasks to achieve certain objectives. Within organizational settings such as P&T Cooperative Credit Union in Buea, Cameroon, motivation not only influences the individual employee’s attitude toward work but also significantly affects the overall efficiency, output, and long-term sustainability of the institution. Understanding what drives employees to give their best and conversely, what inhibits their performance—is central to organizational growth, especially in developing countries where resource constraints are prevalent.

Motivation, whether driven by external rewards or internal satisfaction, acts as the fuel that drives employees to engage, commit, and remain productive. When this fuel is insufficient or inconsistent, employees may exhibit behaviors such as absenteeism, minimal effort, lack of initiative, and declining performance. In Buea’s socio-economic context, these issues are magnified by broader systemic problems such as inflation, high living costs, and limited access to opportunities, which intensify the struggle for basic survival and make workplace motivation even more critical yet challenging.

Theoretical frameworks such as Maslow’s hierarchy of needs provide a structured way to understand motivation, categorizing it into five levels: physiological, safety, love/belonging, esteem, and self-actualization. Within the walls of P&T Buea, many employees may find themselves primarily concerned with the lower tiers physiological and safety needs because their compensation may not sufficiently meet the costs of living. This undermines their capacity to pursue higher-level needs, such as personal growth, recognition, or contribution to organizational vision, thus stalling motivation at a fundamental level. This aligns with observations that when employees’ salaries are not adequate to meet basic needs such as housing, food, healthcare, and transportation, they are less likely to exhibit engagement, initiative, or innovative behavior.

Moreover, job security plays a crucial role in maintaining motivational levels. In institutions like P&T where budget constraints may limit long-term employment guarantees or promotions, workers may feel uncertain about their future. This uncertainty triggers psychological stress, which can reduce cognitive and emotional capacity to focus on work goals. Employees might become risk-averse, avoid making decisions, or refrain from suggesting improvements all of which dampen productivity. In contrast, environments where job security is assured even when financial rewards are modest can foster a greater sense of belonging and encourage workers to invest emotionally in their tasks.

Additionally, the social and psychological climate within the workplace contributes significantly to employee motivation. At P&T Buea, the presence or absence of collegial support, effective leadership, and open communication channels can determine whether workers feel valued and motivated. Leadership style is particularly influential. Managers who are accessible, empathetic, and transparent tend to foster trust, loyalty, and increased effort from their teams. Conversely, authoritarian or dismissive leadership can alienate employees, causing detachment and passivity.

Intrinsic motivation, which arises from internal satisfaction such as doing meaningful work or achieving mastery, is another key element at play. At P&T Buea, many employees may find purpose in helping fellow citizens through financial services, particularly given the organization’s community-centered mission. However, if their contributions go unrecognized or if there is no clear path for advancement, even the most altruistic workers may lose interest over time. Continuous learning opportunities, constructive feedback, and avenues for skill development are therefore essential to sustaining intrinsic motivation, especially in jobs that may lack routine variety or challenge.

Extrinsic motivation, on the other hand, is shaped by external rewards such as bonuses, promotions, or public acknowledgment. Within P&T’s constrained financial structure, providing competitive extrinsic rewards poses a significant challenge. However, even symbolic rewards such as Employee of the Month recognitions, certificates of appreciation, or participation in decision-making can have a disproportionate positive effect on morale. When structured correctly, such incentives can create a positive feedback loop where increased performance leads to recognition, which in turn spurs even greater effort.

In the absence of such systems, employees might fall into a routine of “doing the bare minimum,” a phenomenon also known as “quiet quitting.” This is not always a conscious withdrawal of effort but rather the outcome of prolonged disengagement and unfulfilled expectations. It can lead to high turnover rates, absenteeism, and underperformance, which are all detrimental to P&T’s service delivery and reputation.

Cultural factors also intersect with motivation at P&T Buea. In many African workplaces, including Cameroon, respect, hierarchy, and community values heavily influence workplace dynamics. Employees often expect their leaders to provide not just directives, but mentorship and support. An absence of culturally attuned management strategies may lead to misunderstandings, resentment, and reduced motivation. For example, a manager who disregards traditional values of respect and inclusion might unknowingly alienate staff, even if their intentions are professionally sound.

Furthermore, peer motivation the influence colleagues exert on one another should not be underestimated. At P&T Buea, team dynamics can either reinforce a culture of excellence or enable a cycle of mediocrity. When high performers are recognized and low effort goes unaddressed, employees receive a clear message about what is expected and rewarded. However, when hard work is ignored and slack behavior tolerated, even the most committed individuals may reduce their effort to match the prevailing norm, thereby dragging down collective productivity.

The physical work environment also influences motivation. Factors such as lighting, ventilation, ergonomics, and cleanliness may seem minor but have measurable effects on concentration, mood, and stamina. A cluttered or uncomfortable workspace can contribute to mental fatigue and irritability, which in turn lowers productivity. At P&T, where front-facing roles require constant interaction with members, the environment must not only support employees’ physical comfort but also enable a professional and welcoming customer service experience.

Communication within the organization is another crucial motivator. Employees who are kept in the dark about organizational goals, performance metrics, or decision-making processes often feel excluded and undervalued. Transparent communication fosters trust, clarifies expectations, and allows employees to see how their contributions fit into the bigger picture. At P&T Buea, this may involve regular staff meetings, performance reviews, or feedback loops where employees can share concerns or suggest improvements without fear of reprimand.

1.3 Research Questions

1.3.1The Main Research Question

What is the effect of employee motivation (both intrinsic and extrinsic) on employee productivity at P&T Cooperative Credit Union?

1.3.2 Specific Research Questions

1. How does salary (an extrinsic motivator) influence employees’ work output at P&T Cooperative Credit Union?
2. How does recognition (an intrinsic motivator) influence employees’ work efficiency at P&T Cooperative Credit Union?
3. How does training (an intrinsic motivator) influence the work quality of employees at P&T Cooperative Credit Union?

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