ABSTRACT The study was based on the impact of motivation and employee performance at the municipal council of Mombasa {MMC) which was used as the case study. The general objective of the study was to determine the impact of motivation and employee performance. The research problem was broken down into specific objectives these included to identify the different forms of motivation, to identify the effect of motivation on employee performance and lastly to determine the challenges faced in the motivation of employees. The study employed across sectional quantitative and qualitative research design .this enabled the researcher to collect primary data from the employees with different interests and the employees came from different departments which included, health ,front office ,human resource and the maintenance department. The population size from the target population was composed of forty respondents {40) of which from the four departments were collected ten employees {10) from each of the departments. The findings from the respondents were clear in the sense that you find that the form of motivation that the company was using to motivate its employees was the extrinsic form, and then the extrinsic form of motivation suited them much better whereas the intrinsic form influenced their performance than the others. basing on the second research question it was found that the motivation had an effect on the performance of the employees, and also the much effect that it had was that it boosted the moral of the employees thus making the to perform and lastly it was also found that the organization faced challenges in the motivation of its employees and also was concluded that the highest challenge that it was facing was it was hard for the management to determine the different needs of the employees as employees are motivated by different needs. Basing on the conclusion it was found that the company motivated its employees extrinsically; extrinsic form suited the employees and the form that influenced employee performance was the intrinsic form. It was realized that motivation had an effect on the performance of employees and it much boosted the morale of the workforce. Lastly the organization faced challenges in the motivation of its employees and the challenges that were much faced were to determine the different needs of the employees. Looking on the side of recommendation then it was recommended that motivation should not only be left to the top management alone but it should be everyman's business. In this sense it should be taken as an integral part of both the top management, middle, and operational level v for success in the organization to be achieved. Basing on this it should be everyman's business. In addition the management should promote equality in the treatment of their employee if performance is to be achieved and management should be ready to support motivation in the organization.

TABlE Of CONTENTS

Declaration .............................................................................................................................................. i

Approval ..•..........••..........•..•........••..•........•.•............•..•............••.........•••.........••••••..................•••..•••..••.....• ii

Dedication .•........................•........•..•.........•..•..........................•...........••..................•........•.•..••....••....•...•• iii

Acknowledgement ................................................................................................................................ iv

Abstract ................................................................................................................................................... v

Table of contents ................................................................................................................................. vii

list of tables ............................................................................................................................................ x

list of figures .......................................................................................................................................... xi

CHAPTER ONE ......................................................................................................................................... 1

1.0 Background ..................................................................................................................................... 1

1.1 statement of the problem .............................................................................................................. 1

1.2 Purpose of the study ....................................................................................................................... 3

1.3 Specific objectives ........................................................................................................................... 4

1.4 Research questions ......................................................................................................................... 4

1.5 Significance of the study ................................................................................................................ 4

1.6Scope of the study ............................................................................................................................ 4

CHAPTER TWO ....................................................................................................................................... G

2.0 Literature review ............................................................................................................................. G

2.1Theoritical framework ..................................................................................................................... G

2.2 Conceptual framework ................................................................................................................... 8

2.3.0Related literature .......................................................................................................................... 9

2.3.1The different forms of motivation of employees ..................................................................... 9

2.3.2The effects of motivation on employee performance ........................................................... 10

2.3.3The challenges faced in the motivation of employees .......................................................... 12

vii

CHAPTER THREE .................................................................................................................................. 15

3.0 Research methodology ...•.•••••.•..•.......•....•.•...............••••..••..........•.••...••........•....•••.................•.••..• 15

3.1Reseach design ...•.••.....•.......••..••..•............•....•............•.••.•••..•.......•....•••...•.....••....•••.•................•...•. 15

3.2 Area of the study .••..............•.•.•.............•.•.•........................•.......••...••••.•..........•••..•••..........•....•••.•.• 15

3.3Populationof the study ..........•..•••....•.....•...•••...............•••.•.•.............•••.....••.........•••••..........••...•....•. 15

3.4 population sample .••..•........•••..•••..........•••..•••.............•...•.•..........•.•••..•••...........•.•••..••..........••.•...... 16

3.6 Data collection method •...........•...••.............•....•............•.•......•..•........••....•.•••..........••••........•........ 16

3.6.1Questionnaires ............................................................................................................................ 16

3.6.21nterviews .................................................................................................................................... 16

3.7Data analysis ................................................................................................................................... 17

CHAPTER FOUR .................................................................................................................................... 18

4.0 INTRODUCTION ............................................................................................................................. 18

4.1 DIFFERENT FORMS OF MOTIVATION .......................................................................................... 18

4.2 THE EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE ................................................ 24

4.3 CHALLENGES FACED IN THE MOTIVATION OF EMPLOYEES ..................................................... 28

CHAPTER FIVE ....................................................................................................................................... 33

5.0 INTRODUCTION ............................................................................................................................. 33

5.1 DISCUSSION OF THE FINDINGS .................................................................................................... 33

5.1.1 DETERMINE THE DIFFERENT FORMS OF MOTIVATION ......................................................... 33

5.1.2 DETERMINE THE EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE ....................... 34

5.1.3DETERMINE THE CHALLENGES FACED IN THE MOTIVATION OF EMPLOYEES ...................... 34

5.2CONCLUSION .................................................................................................................................. 35

5.3RECOM MEN DATION ...................................................................................................................... 36

REFERENCES .......................................................................................................................................... 37

APPENDICES 1 ........................................................................................................................................ 39

APPENDICES ii ....................................................................................................................................... 43