ABSTRACT
In all organization, productivity is beckoned on the design of the incentive variation given to workers and management. There are different types of incentives that could motivate people to work to their optimal level and when these incentives are not there, their productivity will greatly be affected. Therefore, the researcher from his findings made this recommendation that monetary incentives should adopted other than other types of incentives for effective performance in an organization. The researcher investigated the following research problems by trying to find out the factors that encourage effective behaviour among employees, investigated the effectiveness adequacy and relevant of effective scheme in overall performance of the individual workers and so on. In generating data needed for the study, descriptive survey research design was adopted, questionnaire was used as the major instrument for primary data collection. To widen the researchers depth of knowledge in the study area, the research embarked upon review of related literature with data drawn from secondary sources. It was realized at the end of the research work that most organizations cannot get the best out of their workers or attain their organizational goals and objectives because of absent of monetary incentives, workers are not allowed to join in deciding affairs that concerns them. The study concluded that monetary incentives make the workers satisfied with treatment given to them by the organization in order to achieve its goals, targets and objectives in a very short time.
TABLE OF CONTENT
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vi
Table of Content vii
CHAPTER ONE: INTRODUCTION
Background of the study 1
Statement of the problem 6
Objectives of the study 7
Research Questions 8
Research Hypothesis 9
Significance of the study 9
Scope of the Study 10
Significance of the study 12
Limitations of the Study 13
Definition of Terms 14
CHAPTER TWO: REVIEW OF RELATED LITERATURE
Overview of Monetary Incentives 13
Concept of Incentive Scheme 17
Employees Response to Employers Incentives 18
Motivation and Employee Performance 24
Evidence Regarding the Effects of Monetary Incentives on Effort and Performance 29
CHAPTER THREE: RESEARCH DESIGN AND METHOD
Research Design 34
Area of the study 35
Population of the study 36
Sample size and Sample Techniques 37
Instrument for Data Collection 38
Validity of Instrument 38
Reliability of Instrument 38
Method of Data Collection 39
Method of Data Analysis 39
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
Presentation and Analysis of Results 40
Test of Hypothesis 46
CHAPTER FIVE: FINDINGS, CONCLUSION AND RECOMMENDATIONS.
Findings 51
Conclusion 52
Recommendations 53
Implication for Research Finding 55
Suggestion for Research Finding 55
References
Appendix
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
In recent times, doing business all over the world is very challenging. Corporate performance and revenue growth are challenges by internal and external operating environment factors. To survive in profitable way in the highly challenging and competitive global market economy, all the factors of production machine, materials and men should be managed in an impressive way. Among the factors of production, the human resource constitute the biggest challenges because unlike other inputs employee management calls for accomplished handling of thoughts, feelings and emotions to protect highest productivity. High productivity is a long term benefits of employee motivation. Sometimes, one wonder why some people perform more than others on the job or better still why people work hard. Man in his natural form is somehow lazy and always try to gravitate towards his comfort zone unless some kind of force or situation that arouse his desire to move out of his comfort zone, in order to avert negative consequences or reap a positive reward as the case may be. These forces or situation now become the motive for his work towards his target.
In all organization, productivity is beckoned on the design of the incentive variables to balance among various management levels. There are several incentive variables that could motivate people to work in their optimal level and when these are not there their productivity will be greatly affected. This may come in the form of well packaged remuneration buts still others may not necessarily be motivated with a well packaged incentives scheme.
Starte (2006) is of the opinion that people work for broadly defined rewards that can be broken down into two general classes known as intrinsic and extrinsic rewards. Extrinsic rewards include figure pay proportion, compliments, and are often independent of the task performed and are controlled by other people. Intrinsic rewards on the other hand include the feeling of accomplishment of task and are administered by the individual during the task. However, workers performance in an organization depends on these rewards among other incentive which may in one way or the other command job satisfaction.
Incentives are objectives or goals which are capable of satisfying what the employer view as need, drive or desire. It includes accelerated payment for improved productivity as well as environment conditions. For instance, infrastructures, transportation facilities, canteen services etc through which they do not directly provide income to workers, but are necessary for their effective performance. In other others, incentive does not only refer to wage payment but other things like job enrichment, flow of information, good relationship among junior and senior officers. Above all, the recognition according to individual by society to their contribution also goes a long way to induce and energize them to work harder in order to achieve not only the organizational goals but also societal goals.
It is worthy of note to recognize such incentives like monetary rewards which may motivate the young people who are beginners or the lower class of people in the society, but may not necessarily be a motivating factor for some middle class and upper class of people in the society. People in various positions, even though at a similar level, must be given incentive that reflects their individual performance and expectations.
A higher performance must be rewarded more than the lower performance for a feeling of quality to prevail. Money is likely to be a motivator variable, remuneration has been favoured as the means of giving employees incentives to produce or sell increased volume or improve the quality of their performance.
In most business and other organizations, money is actually used in keeping an organization adequately staffed and primary as a motivator. Any bonus scheme for manual workers should be related to criteria which are meaningful to the employees and which are capable of being mentored consistently. The incentive to achieve a particular objective. For example, increased volume should not set an incentive to worsen other standards of achievement like quality. It is therefore, important to know what induces workers most as many people have different needs and aspirations. People work for various reasons, depending on what they want or what they are looking forward to achieving. It is the duty of the management of any organization to find out the needs, of its employees and then channel efforts towards attaining them.
Incentives which may be seen as payment or reward for work or services rendered have been a common features in Nigeria establishment to which all establishment are involved. It is therefore, the objective of this that could motivate workers to greater achievement Management scholars and other employers of labour will also find this work very useful as it would enable them to vast of the value of incentives to performance of workers. If appropriately applied will effect greater efficiency of workers if adequately employed.
STATEMENT OF THE PROBLEM
Employee management guide to a competitive benefit of improved operational and business performance. The major problem is the identification of the major factors that motivate employees in diverse companies and to see up there is any particular organization. It is fundamentally unrealistic to assume that people would continue to find satisfaction in co-operating in organizations affairs, if no interest is shown in their individual needs and problems. The researcher tends to investigate the problem of monetary incentive not being able to encourage positive motivational behaviour among employees. The researchers will also determine the factors responsible for the inadequacy of workers performance in an organization. The problem of not achieving higher level of commitment on the side of the workers will also be investigated.
OBJECTIVE OF THE STUDY
The above problem brings the following objectives;
- To determine the factors that encourages positive motivational behaviour among employees.
- To test the effectiveness, adequacy and relevant of the incentive schemes to the overall performance of individual workers or group of workers.
- To examine the different type of incentive schemes that will enhance workers performance.
- To examine an in-depth analysis of the incentive schemes and productivity trend over the years.
- To examine the extent to which monetary incentive aids the organization in achieving its objectives.
RESEARCH QUESTIONS
- Does monetary incentives encourage positive motivational behaviour among employees?
- Are effectiveness adequacy relevant to incentive scheme to the overall performance in the organization?
iii. Does incentive schemes enhance workers performance?
- Does incentive scheme have any effect on workers productivity trend over the years.
- Does monetary incentives scheme aid the organization in achieving its objectives.
RESEARCH HYPOTHESIS
H0: Monetary incentives encourage positive motivational behaviour among employees.
H1: Monetary incentives encourage negative motivational behaviour among employees.
H0: Effectiveness adequacies are relevant to incentive scheme to the overall performance in the organization.
H2: Effectiveness adequacies are not relevant to incentive scheme to the overall performance in the organization.
SIGNIFICANCE OF THE STUDY
It is hoped that this study when completed will assist business enterprises in their operations and enable them to employ incentive schemes and other motivational variations that would optimized the productivity and performance of their operations. It will also identify the motivational factors and incentive variations which were currently militating against the smooth operation of the firm in area of its job performance and productivity that management find useful for future planning. This work will be of assistance to the management of First Bank Plc as it will enable them to restructure their incentive scheme so as to reflect the aspirations and need of their workers. Beside, it will be of great important to the organization since it will expose them to some of the incentives.
SCOPE OF THE STUDY
The study aimed at investigating the effect of monetary incentives scheme for the performance of workers in an organization. Because of resource constraints, a branch of first bank of Nigeria plc was studied. All the department and cadres of employees were covered in the study to examine incentive and its administration.
The study will also evaluate the appropriateness of the program with a view to ascertaining how they influence workers to perform efficiently which results in an increase in the organization productivity. Finally, the study will also address the effect of the incentive on the existing workers as well as those that have left the organization.
DEFINITION OF TERMS
- Motivation: Motivation is the word derived from the word ‘motive” which means needs, desired, wants or drives within the persons. It is the process of inspiring people to actions to achieve the goals. The process of motivation consists of three stages.
– A felt need or oblige
– An incentive in which needs have to be aroused
– When needs are satisfied, the satisfaction or achievement of goals.
Note: Motivation is an emotional fact which means needs and wants which have to the tackled by framing an incentive plan.
- Employment Performance: A performance comprises an event in which normally one group of people, the performance act in a particular way for another group of people.
- Productivity: Productivity is that which people can produce with the smallest amount of effort.
- Working Environment: These are stresses, demographics, environment factors that affect the survival and development of a organization. It does not required a job but rather requires that work has to be done in some place.
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