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EFFECTS OF MOTIVATIONAL INCENTIVES ON PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The term motivation can be traced to the Latin word “moreover” which means to move. This meaning can be expanded by the following formal definition by Bereson and Sterner (1964) viz - motivation towards goals: the motivation connotes “need, drives” and “goal”. The study of motivation can also be traced back to the Unisom’s of the ancient Greek philosophers like Robert E. Taneke more than twenty -three centuries ago. They presented had monism as a yardstick to express what really is human motivation.

Hadorism is the concept which says that a person seeks out comfort and pleasure and avoids discomfort and pains. We often see this in the assumption of many manger that employees do not want to work, they are essentially lazy and milling if given the chance to avoid the pains of working.

Sigmind Fred also attempted to explain men’s behaviour in terms of three elements, sex aggression or self, preservation and death. Evidence have been shown that after the launching of psychology as a scientific discipline, experiment psychologists of the earlier period were interest largely I looking for the conscious experience produced in human subjects, whose sense organs were being exposed to a particular kind of stimulus or engaged in a particular kind of task.

They were confronted by motivational problems but they did not to an in-depth investigation on these human problems.

After sometime, men like Wastern, Thorndike and pallor beggar to seek laws governing behaviour. They began with the simplest form which could almost conveniently be studied in animals. They otherwise did not see the need to consider the motivation conditions of the organism but only analyzed the behaviour in terms of “refluxed” or stimulus response which relates granular reaction to event in the internal environment.

Fraud and modogally having become involved in abnormal psychology respectively, were brought face to face with some of the dramatic extremes reached by behaviour outside the laboratory reached by behaviour outside the laboratory and felt compelled to denovice the Varity of attempting to explain animals or human actions without reference to “agree” instruct “purpose” goal” etc.

By the beginning of the 19305, early behaviorism, monizi and major, reported in 1949, that reticular formation of the brain  germ that general the electroeven phalagraphic patterns (graphic transaction of information derived from the brain), indicating an alert brain, when part together with the proceeds of other line of research to the psychological concept of arousal level” (which is a older concept of drive) in an indication of the fact that motivation has had a long history.

Many units and social scientists like George Elton Myor, 188o - 1949, fredrick wimslow taylor 1856 - 115 henry fayol 1841-1925, Donglas Murray Mcgregor 1906-1964, fredrick Hezberge and a host of others have all in one way or the other contributed to motivational works.

 1.2  BACKGROUND INFORMATION ABOUT THE UNIVERSAL INSURANCE COMPANY

The universal insurance company limited was formally owned by the old Imo Anambra state government and the African continental bank limited. Its history dates back to the period immediately afterNigeria’s political independence in 1960, which was characterized by inadequacy growth could evolve.

This period reveal the reluctance to invest in long-term tenures as projects which offered quicker returns were generally preferred it was thus a pressing need to raise the level of capital available locally for initital development of the easternNigeriato conceive the ideas for the establishment of an indigenous insurance company.

Following a feasibility study while further indicated governments noble intervention was done by the late Mr. M. T. Okpara, the premier of the thenEastern Nigeriawho directed that, the indigenous government should establish an insurance company. Thus in 1960, the universal insurance company was born, adapting a name that portrayed the scope of vision and driving force that motivate its founder’s

This dream was crystallized on 22nd march, 1961, when the company opened its gate for business in pursuance of those original aims and objective that brought it into existence.

From the then modest beginning there was only eight foundation staff in a single room office. The company has made more than ordinary progress in its “39” years of existence. Today the company occupies and enviable position in the hierarchy of the insurance industry inNigeria, engaging sizeable staff of not more than “500”.

True to the aspiration of the founding fathers, the company has maintained as impressive record of profit margins since 1965 when the company declared its first profit.

Due to the effect of the Nigeria civil war which caused the company to record losses between 1966 declared a profit of N31,09200 in 1977 and 1978 repectively the growth of the company was heightened by the introduction of the universal “budget system” in 1974 as a management tool by which branches are given targets at the beginning of every year and to ensure the achievement of the set targets. Through this method the company ensured itself increased income from both life and non-life business.

The company registered a profit of N582,169, N376, 861,N286,813 and N418 581 in 1982, 1983, 1984 and 1985 respectively.

The company has also received a fair share of the austerity measures, whereby the company experiences a fall in incomes and increased in claims. The company has maintained its useful promptness.

Before the civil war the company had branch office in a few towns in the country such as pot-Harcourt,Lagos,Kano,Ibadan,Onitsha.Aba, Umuahai, Orlu,Okigwe,Benin, Ikort-Epkere and Oya. There was only and arrangement whereby the company opened a representative office inLondonto cater for the needs ofNigerialiving there.

The market survey conducted after the civil war revealed that not all the old branch offices would be viable if re-opened in view of the creation of new states in 1967. Re-opening new ones was therefore done with utmost discretion and some old ones were left out completely. Today, there are many branch offices scattered all over the country.

 1.3   STATEMENT OF PROBLEM

In every organization individuals have different aspirations and aims no two individuals are the same. In an organization like the universal insurance company limitedEnugu, employees have sworn to destroy and work against the objectives of the company, they would come to work every morning and world not like to be usefully engaged. Some of the employees would like then working fine to be reduced and their salaries increased. For some other employees, the reverse is the case these employees would aim at building the company to greater height by their office until their job for that day is completed. All these differences in employees attitude pose a problems to the management. The researcher would attempt to find out how these individual employees would react or respondent, if they are adequately and positively modified with the right incentives. What incentives are employed by the universal insurance company limitedEnuguto motivate their salesman and to what extent have these incentives achieved their defused results  in  terms of increased productivity?

1.4    PURPOSE OF THE STUDY

Managers of organization are very conscious of the fact that no two human beings are the same”. Some salesman always performs at high level and need little or no control and yet appear to enjoy or feel satisfied with their jobs. Other salesman perform at low level, requiring constant attention and direction, and are often absent from work. The reason for this performance differences tarry and are very complex. These include the nature of the job, the behaviour of the manager, the characteristics of the employees the nature of the environment, etc.

Can motivation solve this problem and contribute to higher productivity and higher job satisfaction of the employees.

This work would attempt to probe into the motivational incentives employed by the unversed insurance company limitedEnugu, and how these motivational incentives affect productivity in the company.

The findings of this research would help to highlight organizational problems related to motivation and also suggest possible ways of improving motivation in the company.

1.5   STATEMENT OF HYPOTHESIS

In order to serve as effective guide to this research work  I formulated the following hypotheses.

HYPOTHESIS ONE

Ho: Null hypothesis

The universal insurance company limitedEnuguuses incentives to motivate her salesmen.

Ho: The incentives used by the universal insurance companyEnuguto motivate her salesman are not effective.

Hi: The incentives used by the universal companyEnuguto motivate her salesman are effective.

1.6  SIGNIFICANCE OF STUDY

In an organization like the universal insurance    companyEnugu, the necessary factors of production are available yet the company does not seen to operate at full capacity. The reason  behind this might be that one of the factors of production is not fully utilizing and if this is the case production would not be opinion.

1.7   SCOPE OF STUDY

The focus of this project is the universal insurance company limited,Enugu. The study will be limited to the headquarters of the company, which is located inEnugu, due to time constraint, it is not possible to extrude this study to the branches of the company. I will endeavour to find out the types of  incentive offered to salesman by the company and the effects of such incentives on productivity.

1.8   LIMITATION OF STUDY

I as the researcher was faced with some constraints while carrying out this study. One of constraints faced is time limitation. As a find year student I have to use the limited time at my disposal partly for this project and partly for my other academic work.

A thorough research work imposes a huge financial burden which cannot be borne by a student of my statue. For this reason, this research work had to be restricted to the headquarters of  the universal insurance company Enugu.

I also faced some problems while collecting data for my project. I had to call on the officials of the company several times before I could see them- the obvious result is that conclusions draw from available information mighty be highly be highly vulnerable and defective.

1.9   DEFINITION OF TERMS

Motivation: It is an inner focus that makes one to act in a particular way.

b. Incentives: it is those stimulus that makes one to act in a particular way. Incentives lead to an inner feel or  drive.

Reflexes: They are immediate response o a particular situation.

Behaviorism: it is a doctrine that all human action could be explained by stimulus and response.

Goals: This is some time referred to objectives it is the end to which organization shivers towards achieving. It could be informed of profit efficiency, good service etc.

Organization: It is an act of organizing a body of people, company, school etc. it is also the structure of relations that exist between positives in a group.

Management: it is the act of getting things done through others.

Employee:  those employed to work in an organization

Population: it is that potion of the universe to which the research has access to and it limited to.

Researcher: this is the person who conducts a research.

Respondent: this is refers to all those who responded to the questionnaire and interview administered to them by the researcher.

Managers: those who undertake the task and functions of managing at any level in any kind of enterprise.

Theory: A systematic grouping of interested principles and concept which provides frame work for significant knowledge.

Salesmen: Labour force of the organization which undertakes the sales and distribution of goods and services.

REFERENCES

Berelson, Bernard, and Stoner, Gary A (1964) Human Behaviour N.Y. Harcourt  Braenal  world.

Lutlans, Fred, organizational Behaviour (N77) N.Y Migregor Hill inc.   

Tann Hill, Robert E, (1970) Motivation and Management DevelopmentLondon, Buterwith and Publishers. 

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