Incentives Schemes and Worker’s Performance in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The primary objective of this study is to examine how incentive can be used to motivate workers in an organization. It aims at explaining the necessity for managers to motivate their subordinates so that the subordinates act in a desired manner.
The other objectives are: (maslow 1954. p. 288).
To examine the role of incentive system in the organization under review, taking cognizance of the incentive system available in the organization.
To evaluate the effectiveness and efficiency of the incentive system adopted in the organization to be reviewed.
To examine the degree to which the incentive have served as security and performance enhancing tool.
If possible, measure how incentive system has enabled the management to achieve its goals.
Suggest how to improve the incentive system in the organization under review.
CHAPTER TWO
LITERATURE REVIEW
CONCEPT OF MOTIVATION
Motivation is concerned with why people do (or refrain from doing) things. A motive is a need or a driving force within a person. The process of motivation involves choosing between alternative forms of action of order to achieve some desired end or goal. As figure 1.1 shows, goals can be tangible, such as higher earnings, or intangible, such as personal reputation.
Basic Model of Motivation
Understanding human motivation is a complex matter. A person’s motives may be clear to him but quite puzzling to other. On the other hand a person under stress may well not understand his own motives, even though these may be perfectly clear to a trained observer. On other occasions, both the person concerned and those around him understand what his motives are. It is important for people in management and supervisory positions such alternatives and adapt their leadership style accordingly.
Not surprisingly, our understanding of another’s motivation is influenced considerably by our own attitudes towards people. When a manager speaks of “highly motivated staff” he is indicating concerned share his motives e.g. Customer satisfaction, lively working environment e.tc., but equally they could be “motivated” by fear of dismissal (the stick) or by greed for lavish bonuses (the carrot).
If a manager assures that younger employer employees are generally hardworking and ambitious as well, take the view that they can be motivated by means of demanding work, promotion opportunities and the exercise of responsibility. If, however, he assures that younger people are lazy and unreliable he will take the view that they must be given undemanding tasks to perform and will want their supervisors to take responsibility in case things go wrong. In either of the above examples, if the manager has assumed wrongly, he will have de-motivated staff on his hands. The choices or viewpoint open to a manager are dealt with in professor Schein’s classification of peoples’ assumptions about man. These are considered now.
MANAGEMENT’S ASSUMPTIONS ABOUT PEOPLE
The American academic professor Edgar Schein, published in 1965, a classification of the assumptions about people implicit in managerial ideas about what motivates employees. Following a broadly historical order, he identifies four sets of assumptions as follows:
Rational- economic man- This view of man has its roots in the economic theories of Adam Smith in 177’s. It states that the pursuit of self- interest and the maximization of gain are the prime motivators of people. It lays stress on man’s rational calculator of self- interest, especially in relation to economic needs. Ultimately, according to schein, this set of assumptions place human beings into two categories (a) the untrustworthy, money motivated calculated mass and (b) the trustworthy, more broadly motivated, moral elite who must and mange the mass. Schein sees these assumptions as being too black and white to private any useful exploratory of motivation. Nevertheless, in actual practices the rational- economic approach was clearly an important assumption in the minds of Taylor and the Gibrths, for example. It has also been an important assumption for the entrepreneurs of mass production technology.
Social man- In categorizing social man, schein draws heavily on Mayo’s conclusion from the Hawthrone Experiment, which is described more predominantly motivated by social needs and dinging their identity though relationships with others. Acceptance of this view by managers means more attention to people’s needs and less to task needs; it means more attention to the role of groups within the organization and its also implies a change of role for the manger to organize, control to guide and support Research studies have shown that productivity and morale can be improved where manger management deliberately foster social relationships in order to improve co-operation and team work. It is unlikely, though, that this emphasis alone can improve these two factors, and the evidence for social man needs to be treated with some reservation. (c) Self- actualizing man- The concept of self- actualizing man is based on Maslow’s theory of human needs. This view of human motivation sees not social needs but self-fulfillment needs as being the prime driving force behind individuals. Self actualizing man needs challenge reasonability and a sense of pride in his work.
The managerial strategy which operates under this set of assumptions sets out to provide demanding, challenging work. It aims to maximize opportunities for real delegation of responsibility, or to put it another way, it aims for greater autonomy at work. Research studies have indicated a considerable degree of support for the idea of self- actualizing man. This support appears to be particularly strong amongst professional and skilled grades of staff. However, it is less clear whether this model of motivation applies as strongly to lower- graded employees .
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter covers the description and discussion on the various techniques and procedures used in the study to collect and analyze the data as it is deemed appropriate
Research Design
For this study, the survey research design was adopted. The choice of the design was informed by the objectives of the study as outlined in chapter one. This research design provides a quickly efficient and accurate means of assessing information about a population of interest. It intends to study incentives schemes and worker’s performance in Nigeria. The study will be conducted in Abuja metropolis.
Population of the Study
The population for this study were staff of First Bank of Nigeria Plc (FBN) in Abuja metropolis, FCT, Nigeria. A total of 134 respondents were selected from the population figure out of which the sample size was determined. The reason for choosing Abuja metropolis is because of its proximity to the researcher.
Sample and Sampling Techniques
The researcher used Taro Yamane’s formula to determine the sample size from the population.
Taro Yamane’s formula is given as;
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
Introduction
This chapter deals with the presentation and analysis of the result obtained from questionnaires. The data gathered were presented according to the order in which they were arranged in the research questions and simple percentage were used to analyze the demographic information of the respondents while the chi square test was adopted to test the research hypothesis.
Analysis of Demographic Data of Respondents
Table 1: Gender of Respondents
CHAPTER FIVE
CONCLUSION
The first finding in this research is that high level of incentive given by organizations to staff leads to greater productivity.
According to Guion, an organization that provides adequate incentive to make a worker satisfied turns the worker to an efficient and effective employee. This Finding is similar to the First finding in this research.
From the above, it has been made clear that an employee increases or improves upon his performance when the organization provides adequate incentive to him or her.
The second finding in his research is that the level of performance after the introduction of the incentive scheme enhanced organizational productivity.
According to McGregor’s Theory Y, one of his assumptions slates that “commitment to object yes is a fit net ion of the rewards associated with their achievement’’. This finding is similar to the second finding in this research.
This shows that employees arc more committed to the organizations objectives when they are rewarded adequately for their, performance. In order words, introduction of an incentive scheme in organizations will cause staff performance to rise above what it was before the incentive scheme was introduced.
The third finding in this research is that the incentive scheme universal i.e. arit applies to all levels of staff will improves the performance of the organization.
According to the equity theory of motivation by Adams, an important factor in motivation is whether individuals perceive the reward structure as being fair. This finding is similar lo the third finding in this research.
This shows that if the incentive scheme applies to only selected levels of staff, the ones who do not benefit form the incentive scheme will be discouraged and will not he motivated to put in their best into the organization.
The fourth finding is that the characteristic of incentive scheme ie frequency of payment of the benefits which accrue from the incentive scheme which are different from that of staff salary, does not add to improved performance. According to Aghato, “an average worker will only be motivated in the first place by money” i.e. what is there for me
How much are you going to pay? Thus a worker will be prepared to do his best if he is sure of adequate compensation. This finding is similar to the fourth finding in this research.
In other words the frequency of payment of the benefit which accrues from the incentive scheme is not priority to the worker. He is motivate in the first place by the incentive (the money). He is very satisfied just knowing he gets incentive as part of Ins entitlement. Whether it is paid monthly, quarterly or hi- annually will or biannually will not cause him or her to increase or reduce the performance.
The last finding in this research is that incentive is applied to all levels of staff and brings about increase in staff productivity. According to Adams who formulated the equity theory motivation, an important factor in motivation is whether is individual perceive the reward structure as being fair. If people feel they are inequitably rewarded, they may be dissatisfied, reduce the quantity or quality of output, or leave the organization. This finding is also similar to the last finding iii this research. –
This shows that it is very important the incentive scheme to be fair or proportional. Staff on higher level should get higher incentive then their junior colleagues, as it is unfair to give an officer the same incentive as a clerk, if the Incentive system is proportional, staff performance will improve and also organizational productivity will increase.
According to Herzberg, there arc certain Factors which are not associated with money ii at will induce an individual to put forth adequate effort in the accomplishment of organizational goals. These factors are called ‘‘motivators” or job content. They arc ach achievement, recognition, work itself, responsibility, advancement growth. thus, accord to Herzberg, if’ a employer continues to build more opportunities for achievement and recognition into the job, then his employees should become more motivated. These factors are also called intrinsic factors’ because they come from “inside” the person.
Another work carried out by Myers corresponds to Herzbergs Study. Myers raised three important quest ions about motivation.
These three questions and the answers are as follows:
What motivates employees to work effectively?
- What dissatisfies workers’?
- When do workers become dissatisfied?
The answer to his I question which is “A challenging joy which allows a feeling of achievement, responsibility, growth achievement, enjoyment of work itself and earned recognition” corresponds with Herzberg’s motivators while answer to his second question which is “ mostly factors peripheral to the job, work rules, lighting, coffee breaks, fringe benefits e.t.c” corresponded to his dissatisfies. Although Herzberg’s theory is widely discussed, it has been seriously contested. For example, Herzberg listed money as a dissatisfier, evidence point to the fact that money can be either a motivator or a dissatlisfer depending on the individual. A man who does not have a degree from a tertiary institution and has been given a job in a company as a junior staff may willingly take the offer but after working for some months he may want to earn as much as his bosses who are degree holders. To such a man, no amount of incentive given to him is adequate because he fails to realize he should not earn the same salary as his seniors. As a result he will be very unwilling to put in his best into the organization so as to improve on his performance and achieve the organizations goals.
RECOMMENDATION AND CONCLUSION
In conclusion, organizations are advised to ensure adequate and proportional incentive programmes are been introduced in their organization, to all levels of staff. It motivates staff to greater productivity and increase in staff performance which leads to overall achievement of the organizations goals and objectives.
Organizations, are also advised to avoid selective form of incentive programme i.e giving incentives to some group of staff and leaving others. Findings, shows that where this is applied, it bring about those staffs been left out not to perform, in order words not achieving the organizational goals. Also, organizations should introduce incentive packages, that are very attractive for the staffs of their organization. Finding shows, that some incentive packages introduced by some organizations are not very attractive, in order words, cannot in anyway make the employees of their organization to put in their best.
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