The Impact of Incentives in the Private Sector Worker’s Performance
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To investigate how work and the environment might encourage employees and improve company performance in private sector
- To ascertain the impact of management on employee recognition and empowerment through incentive on organization performance in private sector
- To investigate the outcome of employee, pay and benefits on organization performance in private sector
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concept of Performance Incentives
Flippo (1984) defined performance incentives as the payment made to workers or group of workers based on the amount of output or result achieved or payment made for the purpose of motivating workers’ performance towards a particular high target. Performance incentives are a combination of both financial and non-financial incentives. Typically, different types of incentives are categorized into two groups: financial and non-financial incentives. While financial incentives include base pay, profit sharing, gain sharing, benefits, initiative rewards and special rewards (Huttu, 2010), non-financial incentives comprise feedback to employees (Bari, Arif & Shaib, 2013; Huttu, 2010), recognition (Bari, Arif & Shaib, 2013; Huttu, 2010; Oburu & Atambo, 2016; Sammer, 2011), employee participation (Huttu, 2010; Oburu & Atambo, 2016), better work environment (Bari, Arif & Shaib, 2013; Oburu & Atambo, 2016) career development 10 (Bari, Arif & Shaib, 2013; Oburu & Atambo, 2016; Sammer, 2011) and training (Oburu & Atambo, 2016; Sammer, 2011; Waqas & Saleem, 2014).
Financial Performance Incentives
There is nothing new about using incentives to motivate workers. Fredrick Taylor popularized the use of financial incentives – financial rewards paid to workers whose production exceeds some predetermined standard – in the late 1800s. As a supervisory employee of the Midvale Steel Company, Taylor had become concerned with what he called “systematic soldiering”, which is the tendency of employees to work at the slowest pace possible and to produce at the minimum acceptable level (Dessler, 2005). Financial incentives aim to raise production efficiency and improve performance through encouraging individual to behave in a desired way.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
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. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
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 constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the impact of incentives in the private sector workers performance. Edustore Ng plc, Ibadan forms the population of the study.
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 eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
TEST OF HYPOTHESIS
H0: there is no impact of management on employee recognition and empowerment through incentive on organization performance in private sector
H1: there is impact of management on employee recognition and empowerment through incentive on organization performance in private sector
H0: work and the environment cannot encourage employees and improve company performance in private sector
H2: work and the environment can encourage employees and improve company performance in private sector
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of incentives in the private sector workers performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the impact of incentives in the private sector workers performance.
Summary
This study was on the impact of incentives in the private sector workers performance. Three objectives were raised which included: To investigate how work and the environment might encourage employees and improve company performance in private sector, to ascertain the impact of management on employee recognition and empowerment through incentive on organization performance in private sector and to investigate the outcome of employee, pay and benefits on organization performance in private sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected SMES in FCT Abuja. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
This has increased their job satisfaction level which has led towards improvement in their responsibility towards their organizations, less turnover, loyalty, employees’ retention towards their jobs and their efficiency has progressed in their organizational setup. This had led to considerable decrease in turnover benefitting the organizations in successfully attaining their targets and long term objectives
Recommendation
Edustore Ng plc should evaluate current payment systems with respect to the strength of pay-performance relationships. Although most non-public employees are apparently paid on the basis of merit, examination of most companies’ pay systems reveals little differentiation in rising between average and superior performers as evidence by the response to the question, the roses are too few and far between. Payperformance contingencies are generally limited by such practices as setting job grade ceilings and paying for no merit considerations (e.g., external equity adjustments or matching competing offers) out of the “merit” pay budget. Similarly, pay-performance contingencies should also be evaluated at the supra-individual level
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