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1.1 Background to the Study

Specomill Textile Limited, a manufacturer of Textile Material was established by some of the Indonesian expatriates in the year 1966 at Ikeja. This organization is production oriented, that is, it has six departments out of which three are engaged mainly in production. The three production departments include weaving, dying and spinning. The three other departments as of Specomill Textile includes;

Administrative finance and marketing when the organization was established in 1966, it had just three departments namely weaving, dying and administrative department few years later, precisely in 1970, other departments were formed.

        This organization is created for the purpose of attaining specific goals. This, out of the various resources available to any organization, the human resources which include materials and personnel are budgeted, directed, coordinated, and controlled towards the attainment of the goal of the organization.

        As a result of increasing interest in the areas of welfare, problems of employee’s commitment on their job, special attention must be paid to the employees that is, the human resources of the organization. Motivation is the means of acknowledging and understanding the needs, wants, feelings, ideas and emotions of the employees and then providing ways and methods of boosting their egos which will encourage them to use their abilities and knowledge in their works. Various models have been postulated by renounced men, showing the behaviour of various kinds of human beings and hour they can be motivated maximum performance via the application of the right model-Dubin (1958).

        Gone are the days when salaries and wages accounted for the only reason why people go to work. Past researchers have shown that the efficacy of money as a major tool for motivation is increasingly on the decline. Various forms of “incentives and fringe benefit” in addition to salary now constitute motivating factors for employees and workers alike.

Finally, the importance of motivation among other managerial functions cannot be overemphasized. This is because an organization’s human resources is the most valued resource of the organization.

1.2 Statement of the Problem

The problem has always been to determine what really motivate employees to work harder. The facts that there are various categories of employee have not helped matters. Therefore, the problem at hand to find out whether the appropriate usage of the various motivational tools will arouse their interest as they advance in their job, particularly, attention shall be focused on incentives and fringe benefits and their impact on job performance of employees. Below are some of the consequences of lack of motivation in companies.

1.  Poor performance: Employees who are not motivated perform at a lower level than other workers, if there is no excitement for the mission of the company, it can be difficult to maintain the momentum needs to complete a project.

2.  Dissatisfaction: When one employee lacks motivation it can bring down the morale of the entire office. Gossip and complaining among the ranks can turn competent.

3.  Poor customer service: Unmotivated employees may not have employee’s energy or patience to deal with customers. If your employees are responsible for sales, order fulfilment, return on handling complaints, they may not adequately represent your company to the public.

4.  Decreased Revenue: When an employee is not motivated to do the job properly, it can impact your bottom line. If employees do not produce enough work products to pay for their position, they become an expense instead of an asset. Employee with no motivation, who does not complete assignments, may not help your company keep pace with your projected earnings.

1.3 Objectives of Study

        The objectives of this study are as follows:

    i.        To investigate whether wages and salaries motivate employees.

   ii.        To find out the problems of motivating employee’s in an organization with a view to finding solution to them.

 iii.        To identify different motivational models that when appropriately applied will change negative attitude of employee in an organization towards their work.

 iv.        To what extend does position or status motivate employees

   v.        To recommend workable suggestions on how to motivate staff in an organization with a view to improving their performance and productivity.

1.4 Research Hypothesis

Hypotheses are the researches assumptions that form the basis behind the research study. A researcher uses hypotheses to explain the possible cause-effect relationship between the variable in the research.

In this study, the following are the researcher hypothesis;

Hypothesis One

Ho: Wages and salaries may not motivate an employee

Hi: Wages and salaries may motivate an employee

Hypothesis Two

Ho: Incentives may not help to increase job performance on employee

Hi: Incentives may help to increase job performance on employee

Hypothesis Three

Ho: Fringe benefit might not motivate an employee perform more better on their job performance

Hi: Fringe benefit might motivate an employee perform better on their job performance

1.5 Significance of the Study

This research is significant in the following respects; it serves as the need for motivation among other managerial functions as human resource is the most valued resources of the organization.

        The relationship between the incentive reward and employee satisfaction, this was to be done by correlation analysis.

The impact of employees motivation on organizational effectiveness which fundamentally depend on many factors such as fair pay, special allowances, fringe benefits, incentive pay, merit increases and fringe compensation which refers to employee benefits programs.

The beneficiaries of this study are as follows:

The employees, employer, management of the organization, customers etc

The study has a significant relationship between incentives and increase in job performance.

Finally, the study is therefore significant to the life of modern business organization as it is aimed at estimating out knowledge of people’s motivation on their job.

1.6 Scope and Limitation of the Study

This study will be limited to development brought about by observed improvements in job performance as a result of the addition of various forms of motivation brought about or classified as incentives and or fringe benefits.

It will focus on the study of employees Specomill Textile Limited, Ikeja branch, Lagos Nigeria.

        It must be point out that all needed financial resources were not readily available in carrying out this research work.

        Time of course was another restraining factor. Moreover, as an academic work needed for the award for Bachelor of Science degree in business Administration, a format was given to which I adhered.

1.7 Definition of Terms

The following words are defined as they are used in this study;

Ability: This potential or the inherent drive of employee to give their best.

Job: A type of work, an individual employee performs in the organization.

Efficiency: The extent or an improved level of attainment of organization.

Effectiveness: The extent to which organization object is attained at the expected time.

Employee: Aggregate all human resource in a given organization

Incentives: These are things that encourage somebody to do something.

Motivation: The act of influencing a person to behave in a particular way towards a deserved goal.

Fringe Benefit: This is extra benefit, especially given to an employee in addition to salary and wages.

Performance: This is the functional relationship between the ability so as to attain the hallmark of improved performance for the organization.

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