THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION

THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION

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Abstract

The study explore the impact of Monetary incentives on employees' performance. Eighty three employees of Abdul Gusau polytechnic and state college of education both in Zamfara state were handed structured questionnaire to solicit data on Monetary incentives and performance. The dependent variable is employees' performance while the independent variable is Monetary iincentives (salary/wages, bonus/incentives).Pearson correlation and multiple regression model were used to analysed the data using SPSS 22.0 and E-views 9.0. The finding suggested that the is a strong and positive relationship between Monetary iincentives and employees' performance and that salary/wage and bonus/incentives also serve as a form of motivation to the employees. The study recommends Prompt payment of salaries, wages and all entitlements and encouragement of employees' participation in pay determination.

CHAPTER ONE

 INTRODUCTION

Sometimes, one wonders why some people perform more than others on the job or better still why people work hand.  Man in his natural form is somehow lazy and always tries to granitite towards his comfort zone unless some kind of forces or situation confronts him.  It is this force or situation that arouses his desire or more out of this comfort zone in order to avert negative consequences or reap a positive reward as the case may be.  This force of situation now becomes the motive for his working towards his set target (motivating factor). Given the above illustration, management scholars have tired to define what motivation is all about. The Webster Encyclopedic Dictionary of the English Language (1975) said that motivation relates to the sense, need or fear etc.  that prompts an individual to act.  Also Wole Adewunmi (1992) defined motivation as “the inner stimulus that induces one to behave the way he does” it has to do with that inner states that energizes, activates or moves and therefore directs behaviour towards goals In all organization, productivity is beckoned on the design of its incentive variable to balance among various management levels. There are several incentive variables that could motivate people to work to their optimal level and when these variables are not there, their productivity will be greatly affected.  This may come in the form of a well packaged Monetary incentines.  Still others may not necessarily be motivated with well packaged incentive scheme.  The group believe that money is not everything” Starke (1976:35) is of the opinion that “people work for broadly defined rewards” these rewards can be broken down into general classes known as intrinsic and extrinsic rewards. Extrinsic rewards includes the figure pay proportion, compliments etc and are often independent of the task performed and are control by other people. Intrinsic reward on the other hand include the feeling of accomplishment of  task and is administered by the individual doing the task.  However, workers performance in an organisation depends on these rewards among other incentives which may in one way or the other command job satisfaction.

1.0      BACKGROUND OF THE STUDY

Incentives are objectives or goals which are capable of satisfying what the employee views as need, drive or desire.  It includes accelerated payment for improved productivity as well as environment conditions.  For example, infrastructures transportation facilities, canteen services etc. though they do no directly provide income to workers, but are necessary for their effective performance. In other words, incentives do not only refer to usages payment but other things like job enrichment, free flow of information good relationship among junior and senior officers. Above all, the recognition accorded to individuals by society to their contribution also goes a long way to induce and energize them to work harder to achieve not only the organizational goals but also societal goals.

It is worthy of not that such incentives like, Monetary rewards which may motivate the younger people who are beginners or the lower class of people in the society may not necessarily be motivating factor for some middle class and upper class of people in the society. People in the society, people in various positions even though at a similar level, must be given incentives that reflect their individual performance and expectations.

1.1 STATEMENT OF THE PROBLEM

In  any  organization  tasks  are  performed  with  the  help  of resources;  material,  machine, money and most importantly men. All other resources except for human beings as employees are non-living. Employees make use of these resources to generate output without them other resources will be useless, dormant and will not produce anything. Therefore, human resource is  the  greatest asset  any organization  can  have  and  should  be  given the  highest priority. (Ojeleye & Okoro, 2016). Similar view is supported by Zaman (2011), he argued that human resource  provides  basis  for  an  organization to  achieve  sustainable competitive  advantage.

Since organizations are operating in a dynamic and competitive business environment, they  need to develop strategies to acquire and retain the competent workforce. He also emphasize, nowadays human asset considered to be the most important asset of any organization and in order to get the efficient and effective result from human resource motivation is necessary  Monetary incentines is traditionally seen as the total income of an individual and may comprise a range of separate payments determined according to  different rules. For example, the total Monetary incentines of medical staff may comprise a capitation fee and a fee for services, or it may include a salary and shared MONETARY risk (Buchan, Thompson & O'May, 2000).  Organizations need highly performing individuals in order to meet their goals, to deliver the products  and  services  they  specialized  in,  and  finally  to  achieve  competitive  advantage.

Performance is also important for the individual. Accomplishing tasks and performing at  a high  level  can  be  a  source  of satisfaction,  with  feelings  of  mastery  and  pride.  Low performance and not achieving the goals might be experienced as dissatisfying or even as a personal failure. Moreover, performance if it is recognized by others within the organization is often rewarded  by MONETARY and other benefits. Performance is a major although not the only prerequisite for future career development and success in the labor market. Although there might be exceptions, high performers get promoted more easily within an organization and generally have better career opportunities than low performers (VanScotter, Motowidlo, & Cross, 2000) Sonnentag & Frese (2001).

Therefore the neglect of many organization to compensate their employees with adequate MONETAR Incentives is retarding the efforts and productivity of many employees.The research seek to appraise  the effect of Monetary incentive on workers performance in Nigerian organization.

1.2 OBJECTIVES OF THE STUDY

1. To examine the role of salaries, wages, bonus and incentives play as   motivational tools in improving employees’ performance.

2. To determine the relationship between Monetary incentines and employee performance. 

3. To make suitable recommendations on the important or otherwise of Monetary incentines.

1.3 RESEARCH QUESTIONS

1. What is the role of Monetary incentives such as salaries, wages, bonus as   motivational tools in improving employees’ performance.

2. .What is the relationship between monetary incentines and employee performance. 

3. What suitable recommendations on the important or otherwise of Monetary incentines are available

1.4 STATEMENT OF THE HYPOTHESIS

The following null hypotheses will be test

H01:  Monetary incentines does not play any vital role in motivating employees’ performance  

H02:  There  is  no  significant  relationship  between  Monetary           incentines  and  employees'  performance.

1.5  SIGNIFICANCE OF THE STUDY

The study  provides an appraisal which will serve as a motivation for managers to effectively deploy Monetary incentives to improves employees performance and the over performance of the organization.

1.6 SCOPE OF THE STUDY

The study focuses on the appraisal of the effect of Monetary incentive on workers performance in Nigerian organization.

1.7 LIMITATION OF THE STUDY

The study was confronted my logistics and geographical factors

1.8   DEFINITION OF TERMS

MONETARY INCENTIVES   DEFINED

MONETARY incentives may mean the amounts paid to employees, either in the form of a lump sum or in the form of monthly payments or in any other form which serves as additional income to an employee. It is considered the oldest forms of incentives which is characterized by quick and immediate form that make employee feel of an immediate feedback of their effort in meeting the organizational goal. Lawzi [1] defined MONETARY incentives as a set which may satisfy basic human needs, encourage employee to do their best, and increase the level of their competences such as through prompt payment of salary, bonuses, allowances, profit sharing and rewards.

EMPLYEE   PERFORMANCE   DEFINED

Hellriegel, Jackson and Slocum (1999)  defined performance  as the level of an individual's work achievement after having exerted effort.

JOB PEFORMANCE DEFINED

Job performance can be viewed as an activity in which an individual is able to accomplish the task assigned to him/her successfully, subject to the normal constraints of reasonable utilization of the available resources





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