The Effect Of Motivational Incentives On Employee Performance
Chapter One
AIMS AND OBJECTIVES OF THE STUDY
The major aim of the study is to examine the impact of motivational incentives on employee performance. Other specific objectives of the study include;
- To examine the importance of employee performance to organizational performance.
- To assess the current level of motivational incentives at the Nigerian bottling company.
- To examine the relationship between motivational incentives and employee performance.
- To examine the impact of motivational incentives on organizational performance.
- To examine the relationship between employee performance and organizational performance.
- To recommend other ways of enhancing employee performance.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in three sub-headings:
- Conceptual Framework
- Theoretical Framework
- Chapter Summary
CONCEPTUAL FRAMEWORK
Motivation
Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. It is what causes you to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge.
Motivation involves the biological, emotional, social, and cognitive forces that activate behavior. In everyday usage, the term “motivation” is frequently used to describe why a person does something. It is the driving force behind human actions.
Motivation doesn’t just refer to the factors that activate behaviors; it also involves the factors that direct and maintain these goal-directed actions (though such motives are rarely directly observable). As a result, we often have to infer the reasons why people do the things that they do based on observable behaviors.
What exactly lies behind the motivations for why we act? Psychologists have proposed different theories of motivation, including drive theory, instinct theory, and humanistic theory such as Maslow’s hierarchy of needs. The reality is that there are many different forces that guide and direct our motivations.(cormam, 1988)
Intrinsic motivation
refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Research has found that it is usually associated with high educational achievement and enjoyment by students. Explanations of intrinsic motivation have been given in the context of Fritz Heider’s attribution theory, Bandura’s work on self-efficacy, and Deci and Ryan’s cognitive evaluation theory (see self-determination theory). Students are likely to be intrinsically motivated if they:
- attribute their educational results to internal factors that they can control e.g. the amount of effort they put in,
- believe they can be effective agents in reaching desired goals i.e. the results are not determined by luck
- are interested in mastering a topic, rather than just rote-learning to achieve good grades.
Advantages:
Intrinsic motivation can be long-lasting and self-sustaining. Efforts to build this kind of motivation are also typically efforts at promoting student learning. Such efforts often focus on the subject rather than rewards or punishments.
Disadvantages:
Efforts at fostering intrinsic motivation can be slow to affect behavior and can require special and lengthy preparation. Students are individuals, so a variety of approaches may be needed to motivate different students. It is often helpful to know what interests one’s students in order to connect these interests with the subject matter. This requires getting to know one’s students. Also, it helps if the instructor is interested in the subject.
Extrinsic motivation
comes from outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives. Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition and to children who received no extrinsic reward. Self-determination theory proposes that extrinsic motivation can be internalised by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs.
Advantages:
Allows individuals to become easily motivated and work towards a goal.
Disadvantages:
Motivation will only last as long as the external rewards are satisfying
Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a person may be highly intelligent according to a more conservative definition (as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale School of Management professor Victor Vroom’s “expectancy theory” provides an account of when people will decide whether to exert self control to pursue a particular goal. Drives and desires can be described as a deficiency or need that activates behavior that is aimed at a goal or an incentive. These are thought to originate within the individual and may not require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger, which motivates a person to seek food; whereas more subtle drives might be the desire for praise and approval, which motivates a person to behave in a manner pleasing to others. By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training animals by giving them treats when they perform a trick correctly. The treat motivates the animals to perform the trick consistently, even later when the treat is removed from the process.
CHAPTER THREE
RESEARCH METHODOLOGY
AREA OF STUDY
Nigerian Bottling Company Limited is located in Lagos Mainland, Nigeria and is part of the Soft Drink Manufacturing Industry. Nigerian Bottling Company Limited has 2,700 employees at this location and generates $595.22 million in sales (USD). There are 237 companies in the Nigerian Bottling Company Limited corporate family.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine impact of motivational incentives on employee performance using Nigeria bottling company Lagos state as a case study. The staff of the sampled organization drawn from five (5) selected department was used as the population of this study. The selected department include; inventory control department, purchasing department, quality control department, production department, and human resource department.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of seventy (70) questionnaires were administered to respondents of which only fifty (50) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 50 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
In this study, our focus was to examine impact of incentive on employee performance using Nigeria bottling company Lagos state as case study. The study specifically was aimed at highlighting, importance of employee performance to organizational performance, assess the current level of motivational incentives at the Nigerian bottling company, examine the relationship between motivational incentives and employee performance, examine the impact of motivational incentives on organizational performance, examine the relationship between employee performance and organizational performance, recommend other ways of enhancing employee performance.The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are drawn from inventory control department, purchasing department, quality control department, human resource department and production department from the organization of NBC Lagos state.
CONCLUSION
Based on the finding of this study, the following conclusions were made:
- There is a significant relationship between motivational incentive and employee performance .
- There is a significant relationship between employee performance and organizational performance
- Discipline has a positive impact on organizational performance by employee performance
- Motivation has a positive impact on employee performance
- Motivation has a positive impact on organizational performance by employee
- performance
- Motivational incentives shape the behaviour or outlook of subordinate towards work increasing efficiency,
- Motivational incentivespsychologically satisfy a person which leads to job satisfaction and avoid turnover
- Motivational incentives drive or arouse a stimulus work,
- Motivational incentives inculcate zeal and enthusiasm towards work,
- Motivational incentives enhance commitment in work performance
- Motivational incentives increase productivity,
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
- As revealed by the findings of the study, there is need for motivational incentive care facilities accessible at all times to help meet with urgent needs.
- There should be systems for recognition and appreciation of quality efforts in order to motivate the staff to work effectively.
- The organization should ensure that there is an adequate provision and availability of motivational incentives to help boost workers’ performance.
REFERENCE
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