Importance of Incentives in Enhancing Workers Performance in 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 LITERATURE
The Construction Industry
Performance has been an essential contributor to corporate success. This is as a result ofits direct translation into cost savings and profitability. Performance has also been a keyto long-term growth and sustainable improvement and when associated with economicgrowth and development generates non-inflationary increases in wages and salaries(Mojahed, 2005). The construction industry generally plays a vital role in a nationaleconomy due to the usage of its products such as roads, buildings and dams for theproduction of goods and services.
In spite of the immense size andsignificance of the construction industry to the economies of most nations, itsperformance is one of the controversial and least understood factors (Haskell, 2004).Performance in the Nigeria ian construction industry is largely unmeasured due to theunavailability 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 anadverse effect on worker incentive that tends to make minimal effort towards workt hereby lowering performance. Non empirical evidence shows that financial incentive is understood by the craftsmen tobe 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 inNigeria being similar to that of Nigeria, it could be concluded that similar man-days willbe 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.
Sample and Sampling Technique
The targeted population was construction firms with classifications foreign contractors and imdegenous contractor. Simple random sampling techniques were utilized in the study. These techniques allow every member of the target population equal chance to be selected. It has advantage of reducing bias associated with non-random selection. A total number of 2 construction sites located within the study area (Abuja ). The population of these sites was 385 workers. Out of this population, a sample size of 200 was used as respondents. This sample size of 100 was selected from each contractor respondents out of 385 to enable the study to involve reasonable number of respondents for the study. According to Sanders (2005) 35% or more samples is necessary to authenticate the results, hence making the findings more sensitive.
CHAPTER FOUR
RESULTS ANALYSIS
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.
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.
- Management should structure organizations and methods of operation to allow people to set their own goals and direct their own efforts toward organizational objectives. This will improve the creativity and freedom for own judgment in on-the- job execution of task.
- Management should sort out the job environment to allow people achieve their higher-order individual goals.
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