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THE EFFECT OF MOTIVATIONAL INCENTIVES ON THE PERFORMANCE OF EMPLOYEES

CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

Most corporate executives in most public and private sectors organizations regarded materials and financial source as the most important assets in any given industry or organization. This, thinking as stated above, has dramatically changed. In most organizations, human resources are now given without priority. It is people that make organizations and unless they are recognized and treated, the result will be negative attitudes which can, by extension lead to negative result in the form of poor performance. Therefore, the first thing to communicate to the men you have to manage is the fact that they are important people.

You can achieve something with the most difficult individual if you realize and sincerely believe in his personal importance, dignity and potential. You can boost his morale so that his productivity will rise beyond your hopes. Output is as much dependent on morale as an incentive (financial or otherwise) or physical working conditions. People like to feel they matter as individuals to their management, that they are been consulted about things, that their work matter, that the superior really knows what they are doing and they are also compensated to do more (incentives).

It is known fact that the principal motive of management of any organization is to make individual and people contribute positively towards the activities which it consists. So as to achieve the mission and goal of the enterprise employee motivated. Hermann motivates are based on need such as psychological requirement for water, food, sleep and shelter while others needs may be regarded as secondary such as self esteem status, affiliation with others, compliment and self assertion or satisfaction (Daniel, 1982).

A motives as well as directs motivate their subordinated is to say why they do those thing, which they hope will satisfy, these drives and desires as to induce in the subordinate so as to act in desired manner if the motivation of employee is to be more productive and for it to produce at a higher level of quality often required what a variety of an incentive be used in varying proportion as can best be esteemed by Human Resource managers. Because of the differences in need patterns and their ever changing natures, the incentive that may be best for one group or an individual may not be effective for another of a particular time.

The use of incentive does not only involve the monetary aspect but also comprise non-financial incentive such as transportation facilities, accommodation facilities, welfare service etc. It is usually the responsibility of the supervision to ensure that the employees feels that the up (the organization) came about their view and suggestions on work emplacement, income simplification and such other routine matter (Ibekwu, 1984).

It is described that job should be varied and given to employee accomplished which boost their age and gives them a feeling of pride and sense of achievement which includes some individuals to remain with an organization so as to reach individual satisfactory level of performance. Hence incentive tend to be cost to their employers while it is a benefit or major source of income to employees. No organization can hopefully succeed without the effort of the employee performance with focus on Nigeria Brewery Plc as a case study.

1.2      Statement of the Problem

The failure of top management to appreciate the human element as the most crucial factor and the determinant of attainment of goals and objective have constituted serious eroding problem. The employees are faced with unhealthy working environment and this have resulted in poor productivity. The general relationship between the top management and the rank files are not cordial. The employees are not send or given training as at when due. The take home/incentive of the employees are not encouraging. These and many more are the problems face by employee and which in turns affect their performance.

1.3   Objectives of the Study

i.  To determine whether employee need to be motivated.

ii.  To determine whether incentive is related to performance.

iii.  To determine whether promotion is motivating factor to performance.

iv.  To determine whether employee do perform optionally.

v.  To determine whether workers do get adequate remuneration.

1.4   Research Questions

i.  How does an employee need to be motivated?

ii.  What incentive is related to performance?

iii.  Is promotion a motivating factor to performance?

iv.  Do employees perform optionally?

v.  Do workers get adequate remuneration?

1.5    Research Hypotheses

H0:    Incentive has no effect on employee performance in Nigerian Breweries.

H1:    Incentive has effect on employee performance in Nigerian Breweries.

1.6    Significance of the Study

The study is significant in that it would serve as a basic for future researcher who would like to carry out a research on a similar topic. It would also give an impetus to policy makers on how best to improve incentives on employee performance in an organization especially the Nigerian Breweries Plc. Also the result of this study would give relatively good understanding on the effect of incentive on employee performance in an organization.

1.7       Scope of the Study

The study shall cover Nigerian Breweries Plc Kaduna. In relation to motivational (incentive) tools been used to affect its employee to theories of motivation (incentive), importance of incentive and its impact on the employee’s working environments.

1.8       Limitations of the study

Inaccessibility of sufficient research material: The materials used for the research were not readily available and adequate enough for a comprehensive research as desired by the researcher must comment lent books and other relevant publication in libraries within and outside the school. Uncooperative attitude of respondent: These were some respondents that were not ready to answer vital information for the purpose of this research such valuable information was considered to be confidential and as well ere not ready to release confidential secret of the organization. Low Return rate of Questionnaire: Some of the questionnaires distributed to respondents without properly filling as such that they were not used in analyzing the data. Academic pressure: This is the frequent test in school, assignment and always pay visit to library in the search of relevant material hampered the researcher in writing a name comprehensive and better research work done. Finance: This was another area where the researcher faced differently but with the help of God and his divine provision the work was done.

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