EMPLOYEE MOTIVATION AND PERFORMANCE OF SELECTED MOTOR SPARE PARTS DEALERS
ABSTRACT
Employee motivation shows a crucial significant part in all private and public organizations. Organization cannot run
and cannot attain their desire goals and objectives without motivating their employees. The main purpose of this
research work was to find out the impact of employee motivation on employee performance in selected motor spares
parts dealers in Lagos State. Purposeful sampling technique was used to select 210 respondents form 70 from each
of the company. The data for current research study has been collected from the staff of the selected motor spares
parts companies using structural questionnaire. The data collected were analysed using descriptive statics of mean
and standard deviation, and inferential statistics of correlation and regression analysis. The results from current study
explores that employee motivation have positive and significant effects on employee performance in the selected
motor spare parts dealers in Lagos. The study recommends that motor spare parts dealers needs to consider staff
motivation as its cardinal objective because productivity and progress of the organization depends on how readily available and committed the workforce is.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Global sales of passenger cars are forecast to hit 78.6 million vehicles in 2017. Along with China, the United States is
counted among the largest automobile markets worldwide, both in terms of production and sales. About 6.9 million
passenger cars were sold to U.S. customers in 2016, and around four million cars were produced here in the same
year. The United States became a key automotive market in the early 1900s, when Ford introduced assembly line car
production to mass-manufacture its Model T. Today, the Ford Motor Company still ranks among the leading
manufacturers of passenger car model currently being the Ford Focus, which was also one of 2016’s best-selling light
vehicles worldwide. In terms of revenue, Toyota, Volkswagen, and Daimier topped the list of major automobile makers
in 2016, while the automotive supplier industry was dominated by Bosch, Continental, Denso and Magna. Prompted
by global initiatives, such as the Paris Agreement, several countries around the globe are enacting stricter emissions
controls on new vehicles models. As such, automakers are beginning to expand their business into the electric
mobility sector. Germany is expected to lead the way with projected electric car production to reach some 1.3 million
units by 2021. Over the next decade, internet connected car technologies and autonomous vehicles are set to stir up
yet another revolution in the automotive sector. In 2016, some 40 percent of U.S. respondents stated that they were
willing to use fully autonomous vehicles to be safer than conventional cars. The global market for autonomous driving
hardware components is expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S. dollars in 2030.
The global auto industry is always in flux, as new models and designs alter the shape and performance of
automobiles. Nonetheless, few periods in automotive history match today’s pace of change. Over the next five to ten
years, five trends will dominate, and each will carry with it specific challenges that auto industry executives will have
to confront. In this complex environment, auto companies can no longer hope to be everything to everyone. There are
simply too many technical options, markets, and social and demographic changes to address. And as the competitive
landscape intensifies, being average at many things will not be good enough anymore; companies will need to pick
their bets and become great at the things that truly matter for the customers they have chosen to serve. Recovery in
global economy, expansion into new markets is driving the industry growth in terms of surge in M & A activities, site
relocations, and vertical integration of operations worldwide. The new factors have a significant impact on the sales of
major vehicle manufacturers. Both passenger cars and commercial vehicle manufacturers are aiming to strengthen
their self-sufficiency across the value chain. Over the near term future, it is expected that significant investments flow
into the automobile market, in particular, in the component sector and new production centres. Shifting consumer
preferences, climate related policies and advancements in technology are driving the demand for environment
friendly, fuel efficient and smart vehicles. In particular, the medium term outlook remains strong for hybrid vehicles.
Demand for commercial vehicles is also expected to surge across emerging markets, driven by recovering economic
conditions. In particular, growth in construction activity in these markets will drive the demand for heavy trucks, buses
and other commercial vehicles. This new report provides comprehensive analysis of automobile markets including
Passengers cars, and commercial vehicles across countries worldwide. The ensuing graphs and tables in the report
provide market growth in two times series: historic from 2005 to 2017 and forecast from 2018 to 2025. 2018 market
conditions in global Automobile sector are analysed through detailed SWOT analysis, evolving trends, industry drivers
and restraints. Further, manufacturers, importers and exporters along with their growth strategies are analysed in the
research work. Over the five years to 2017, revenue for the Global Car and Automobile Manufacturing industry is
expected to rise, bolstered by improving economic conditions, such as rising disposable income. Another driving force
behind the industry’s growth has been the favourable economic environment set forth by Central banks around the
world. During the five-year period, developed economies such as the United States, Japan, and the European Union
provided monetary stimulus to spur economic growth to varying degrees of success.
Algeria’s automotive industry is among the largest on the African continent (together with South Africa, Egypt and
Morocco) and can exceed 500,000 units a year. Renault is the largest manufacturer with an estimated 25.5 percent of
the national car market. Other car makers represented there include Volkswagen (second largest), Peugeot, Hyundai
(fifth largest), Nissan, and Fiat. In 2014 a partnership between Daimler and the Ministry of defence for the
manufacture of trucks and armored cars will produce 17,000 Mercedes units annually in accordance with international
quality standards applied by Mercedes at its plants around the world, while the rest of the quota will be owned by the
German companies specialized in mechanical industries (Man and Ferrostaa). The same standards will be applied in
both Tiaret, which will produce 10.000 G-Class SUVs and utility wagons of average size annually, while the
production site of engines in Constantine will produce 26,000 water cooled engines by licenses production for the
Marks Meto – Deutz – Daimler respectively, to prepare the cars and industrial machinery, agricultural machines, and
machines of public works, as the production will be launched in 2014. The National Company of Industrial vehicles
(SNVI) in Rouiba, as part of an Algerian-German-Emirati investment project five trucks models to be assembled on
the same industrial site namely Actros, Atego, Axor and Unimog in addition to other bus models will reach some
15,000 trucks and 1,500 buses in 2018 and 2019. In October 2015 Iran Khodro group intends to establish a car
assembly plant in Algeria located 300km from Algiers, will produce 30,000 cars/year, three options open to the group
for that and they will have to choose between relocation of Senegalese assembly line which is the first option, that of
Bardo (pick-up), and that of the establishment of a new chain. In December 2015 an agreement signed with an
Algerian company and the Iranian auto making group Saipa will produce X100, Tiba I and II, Saina and Pride in the
country as of mid-2016. The beginnings of the Egyptian automotive industry date back to 1960. During the socialist era, the government
pledged to transform the country from an agricultural economy to an industrial one, and the first completely Egyptian
car was produced. The car soon went out of production, as it was unable to compete with foreign brands, especially
following the end of socialism and the move toward a more liberal market. It was not until 1985 that automotive giant,
General Motors (GM), set up its first assembly plant in Egypt, revolutionising the industry. In the more than two dozen
years since, the Egyptian automotive assembly business has grown from just three plants relying on mostly imported
components, to 16 businesses with 26 assembly lines, manufacturing now near 100,000 units annually of passenger
cars, light commercial vehicles, trucks, and buses, as well as 300 factories that produce most automotive
components (IDA’s Vision for the Automotive Industry Report). Besides GM, giants such as BYD, BMW, Nissan,
Hyundai, and Daewoo produce a majority of the models in their product lines in their factories in Egypt. In fact, the
BMW assembly line in Egypt is the only factory outside Germany where the BMW 7 Series is produced. But it was not
until 2004 that the Egyptian automotive market began to expand exponentially, along with the local production of both
assembled cars and components. The total production market in Egypt consisted of only 49,335 vehicles in 2004.
This figure rose to 116,683 vehicles in 2010; a 136% increase. However, due to the political changes starting in 2011,
production was down over 31% in 2012. In 2013, Egypt was the third largest car-producing market in Africa, after
South Africa and Morocco. The Automotive industry in Kenya is primarily involved in the assembly, retail and
distribution of motor vehicles. There are a number of motor vehicle dealers operating in the country, with the most
established being: Major Retailers: Toyota East Africa/Toyota Kenya Ltd, Cooper Motor Corporation, General Motors
East Africa (GMEA), Simba Colt and DT Dobie. Major Assemblers: Associated Vehicle Assemblers Ltd (AVA), Kenya
Vehicle Manufacturers (KVM), General Motors East Africa (GMEA) and Honda Motorcycle Kenya Ltd. Kenya is
currently attempting to completely build its own cars. After building its first car in the late ‘80s, the Nyayo Car, Kenya
has a shot at the industry with Mobius Motors, which was founded in 2009. A new factory having an auto assembly
capability of nearly 400,000 vehicles annually was opened by Renault in February 2012 in Tangier. It will mainly
produce cars for the European market. Before 2012, the only other assembly plant in Morocco was the Renault
factory in Casablanca. Another factory by PSA Peugeot-Citroen, is expected to start production by 2019, with a
starting capacity of 90,000 cars/year and a 200,000 cars/year in the future. The main specificity of this factory is the
introduction of car engines production for the first time to the country. BYD signed an agreement on December 9,
2017 to open a factory near the Moroccan city of Tangiers to build battery-powered vehicles. BYD will become the
third car manufacturer to build cars in the North African state. South Africa is traditionally the leader in Africa of the
automotive industry and now produces more than half a million annually of all types of automobiles. While domestic
development of trucks and military vehicles exists, cars built under license of foreign brands are the mainstay.
The Nigeria automotive sector comprises of manufacturing/assembly of bicycles, motor bikes, cars and spare
parts. The country is said to be next Africa’s frontier for the automotive industry, with a potential market for one million
new-cars per annum. Up until 2015, Nigeria imported about 400,000 vehicles (100,000 new and 300,000 used)
valued at US$4.2 billion. Local production capacity (assembly) is about 300,000 units, but utilization is currently at
about 15 percent of installed capacity. Nigeria imports nearly all of the cars on its roads and absorbs huge automobile
component parts annually. In 2013, Nigeria spent 500 billion Naira on automobile spare parts and 150 billion Naira on
purchase of tyres. According to the Federal Road Safety Corps, about 6.6 million and 10.6 million registered vehicles
plied the roads in 2010 and 2016 respectively. According to a 2013 estimate, by the International Organization of
Motor Vehicle Manufacturers (OICA), the auto industry directly employs over nine million people which make about
5% of the world’s total manufacturing employment. A study by PWC (The company focuses on audit and assurance,
tax and consulting services) in 2015 states that ‘of the 14 million cars on Nigerian roads, over 50% are beyond 12
years old while 26% are beyond 5 years old’. Given this background, the market for automotive spare parts is equal
to or larger than the market for new cars. Thus, large scale manufacturing of automobile components in Nigeria will
not only result in substantial import substitution but also create economic growth and employment opportunities.
Another study by the National Automobile Council of Nigeria (NACN, 2014) estimates that, imports were to be
substituted by domestic production, it will not only result in potential value added of over N100 billion per annum, but
will also create over 70,000 direct and 700,000 indirect new jobs in the economy (MSMEs) input suppliers for manufacturing auto parts etc.)
EMPLOYEE MOTIVATION AND PERFORMANCE OF SELECTED MOTOR SPARE PARTS DEALERS