Evaluation of Incentive Schemes on Labour Production in Nigeria Construction Industry
CHAPTER ONE
Aim of the Study
The aim of the study is to investigate into the main incentive practices in use by construction firm in Nigeria as a means to identify those which result in the improvement on the performance of construction workers.
Specific Objectives
- To determine availability of financial and non financial incentives in foreign contracting firms.
- To determine availability of financial and non financial incentives in indigenous contracting firms.
- To determine preferences of workers for financial or non-financial incentives.
- To provide a ranking of incentives in both foreign and indigenous contracting firms.
CHAPTER TWO
REVIEW OF LITERATUR
The Construction Industry
Performance has been an essential contributor to corporate success. This is as a result of its direct translation into cost savings and profitability. Performance has also been a key to long-term growth and sustainable improvement and when associated with economic growth and development generates non-inflationary increases in wages and salaries (Mojahed, 2005). The construction industry generally plays a vital role in a national economy due to the usage of its products such as roads, buildings and dams for the production of goods and services.
In spite of the immense size and significance of the construction industry to the economies of most nations, its performance is one of the controversial and least understood factors (Haskell, 2004).Performance in the Nigerian construction industry is largely unmeasured due to the unavailability of data for its determination.
In the construction industry, site workers account for 40% of direct capital cost of large construction projects and there is the need to maximise the productivity of human resources (Thomas et al., 2004). Lack of workers’ incentive on construction sites has been identified and this has contributed the high employee turnover (Thomas et al., 2004). According to Shun (2004), management is often frustrated by lack of incentive generated by the end of the year bonuses. According to Haskell (2004) an unsatisfactory work environment can have an adverse effect on worker incentive that tends to make minimal effort towards work thereby lowering performance. Non empirical evidence shows that financial incentive is understood by the craftsmen to be a motivator to improve productivity in the Nigeria ian construction industry.
In the United States it was reported that 1.53 man-days is required to put up 1m² of structures whilst Nigeria requires 5.98 man-days (Ahadzie, 2001). Productivity levels in Nigeria being similar to that of Nigeria, it could be concluded that similar man-days will be required to undertake the same task. The onus, therefore, lies on construction managers to improve productivity of workers on construction projects.
CHAPTER THREE
RESEARCH METHODOLOGY
Survey Methods
The researcher used quantitative survey methodology. This is because quantitative approaches are more specific and result oriented and it involves the collection of numerical data in order to explain, predict, and/or control phenomena of interest (Mojaheed, 2005). It also involves collecting data in order to test hypothesis or answer research questions concerning the status of the subject of the study (Gay, 1992). Quantitative survey again seeks to find answers to questions through the analysis of relationship between or among variables Amedahe (2002). Therefore, this design enabled the researcher to gather the necessary data for the study.
CHAPTER FOUR
RESULTS ANALYSIS
AVAILABILITY OF FINANCIAL INCENTIVES IN FOREIGN CONTRACTING FIRMS.
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
Conclusions
The focus of this research work has been the determination of importance of incentives, the financial and non-financial incentives to the workers in the construction industry, comparing foreign and indigenous contracting firms. These forms of incentives among others were noted for having greater influence on level of site workers productivity. It is therefore believed that if these could be well catered for, then the required labor productivity improvement wil1 be ensured.
It was discovered through the analysis of the results that the level of incentive provision in indigenous contracting firm is low compared to their foreign counterparts. This is evident in the availability of incentives like luncheon voucher, piece rates, overtime with pay, sport facilities, non-involvement in decision making, educational training in foreign contracting firms which were absent in the indigenous contracting firms.
This portrays the fact that indigenous contracting firm’s growth is nothing to write home about~ so also, where incentives are provided in indigenous firms; they are usually not adequately provided, thus defeating the real essence of its provision. It has also been discovered that indigenous contracting firms does not put provision of adequate social security into consideration and that it is only provided on request by the client or as part of work preliminaries. This is not good enough as sense of adequate security tends to make workers venture into work crisis.
Interview conducted revealed that majority of workers on construction sites are those Whose major occupation is not construction work, but found themselves there as a result of depressed economy, it could be inferred from this fact that such category of people could lack adequate technical competence, and this at the long run affect productivity
Recommendations
From this study, it is recommended that,
- Management and immediate supervisors should ensure that good teamwork is established through collaboration, both on and off site by assigning task to groups of workforces with qualified and competent team leaders.
- Workers have hidden incentive and liking capabilities, capacity to take on responsibility, and readiness to work to achieve organizational goals. Therefore management’s job is to foster these tendencies and help workers develop these characteristics in themselves. Appreciation and recognition give workers a form of non-financial incentive , which can encourage their desire to put up maximum effort in their operations.
- Information availability and communication should be open to all. There should be free flow of information from the management to the workers and vice versa.
- There should be timely payment of employees’ wages to enable them meet their financial obligations. This can reduce dissatisfaction.
REFERENCES
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- Armstrong, M. (2006). Human resource management practice, San Francisco: Berrettkoehler Publishers Inc.
