THE EFFECT OF INCENTIVES ON IMPROVING ORGANIZATIONAL OUTPUT
(A CASE STUDY OF CHAMPION BREWERIES PLC, UYO PLAN)
CHAPTER ONE
1.0 INTRODUCTION
All organization have (or must have) properly defined . The management of organizations has the tasks of achieving the desired objectives by managing the resources at its disposal. There is general acceptance that the most valuable resources of any organization are its human resources. The extent, therefore to which an organization succeeds in achieving its objectives rests very much on the productivity of its human resources. Robert Kreitner (1995:7) opined that organization without objectives the management process is like a trip with a specific, distinction, would be aimless and wasteful.
The success or failure of an organization depends on management. An unproductive and undisciplined supervisor could hardly motivate employees. Many Nigerian managers are lacking in elementary principles of organizational behavior. Some are technicians, company secretaries and lawyers, while a majority is high school graduates who do not know the human relations approach to management. They do not know how to identify employee’s goals and link them with organizational rewards in order to motivate employees. Some employees do not know what rewards are available or the means to achieve these rewards. Many managers do not appropriate the importance of performance evaluation and feedbacks. Employees get frustrated and productivity suffers (Nwachukwu, 1992).
It is therefore of paramount importance that for maximum efficiency and productivity the management of every organization has to motivate its workforce. The organizations have to identify the appropriate incentives really needed by the workers in order to achieve the desired results.
Given incentives to an average employee in an organization is a matter of utmost importance because the overall performance of the organization depends on the performance of the workers in the organization. According to Ubeku (1974), effective performance on the part of employees is essential for the success of any organization. Such performance according to him will to a great measure depends on the knowledge and skills. But, while the knowledge and skills possessed by the individual employee are important in determining his job performance these factors alone are not sufficient. Ubeku observed that understanding of what motivates the individuals is needed to review how abilities and skills are activated and their potential released.
The term incentive system should encourage effective planning and hones report of goals and it should simultaneously motivate managers to work harder to achieve a better performance once these goals are specified. These conflicting requirements need to be resolved in the design of an incentive compensation plan for managers in the allocation of resources in an organization, and in the development of bonus structures for the divisions in a firm or enterprise in a centrally planned economy. (Institute of Management Journal, 1980).
The term incentive has become one of the basic and difficult problems confronting most organizations. For instance, motivation to work and productivity which have been neglected in Nigeria and the developing world in general is as a result of social norms (benefits and values) and their relationship to incentives, motivation, and productivity (Deji Popoola, 1981).
Professor Oloko (1977) raised this critical issue thus: The beliefs and values of the members of these social systems influenced a great deal the beliefs and values about rewards for effort held by social actor in employing organization. In Nigeria, the system of reward for effort is essential based on colonialist and neo-colonialist assumptions about what the employee wants or needs.
This simply means that managements must identify means of motivating and directing employee’s behavior in the direction of meeting their person needs as well as the attainment of organizational objectives. To isolate the various means implies that management will have to understand the employee’s motivation to work, their needs and personality in the context of social and work environment.
It is not an easy task, since many people desire only slight personal satisfaction from their job and enjoy or no sense or accomplishments rather than being after acquiring personal wealth. It is against these backgrounds that one interest is focused on the likely impact of incentives on employment.
1.1 HISTORICAL BACKGROUND OF CHAMPION BREWERIES PLC
The Champion Breweries Plc is the first brewing firm in Nigeria. The original founder of Champion Breweries Plc were United African Company (U.A.C) International Limited and Brewery together with some local trading companies.
Champion Breweries Plc came into existing on 16th November 1946 when it was first incorporated as Champion Brewery Limited. Later, it became Champion Breweries Limited following the commencement of operations of its second Brewery at Uyo in 1957. In accordance with the companies and Allied Matter Act 1990, the name was again change to Champion Breweries Plc. Other branches of the company are situated at Ibadan, Kaduna, and Enugu from which highly refreshing quality brands are distributed to all nooks and crannies of Nigeria and beyond.
The product of the company include: Champion Larger Beer, Champ Malta, Grand Larger Beer Star Larger Beer, and 33 Larger Beer.
1.2 STATEMENT OF THE PROBLEM
The aims of the researcher were to evaluate the impact of incentives on improving organizational output.
The problem that most organizations, companies or enterprises are facing today has been attributed to the manner in which most managers in the organizations have been controlling the people (subordinates) below them. This has resulted to the poor performance of the subordinates which is as a result of low motivation (inadequate incentive system).
To an employee of an organizations, the offer or salary, wages or rewards are his most obvious personal incentives. The important characteristic of his relationship with the organization is that in return for these inducements, the offer of the organization goes about achieving its goals and objectives.
In Champion Breweries Plc, the result of adequate incentive scheme to the employees by the management revealed high productivity and good behavior by the employees. Outside oil companies, Champion Breweries Plc’s pay is highly competitive, that explains why many people want to work for the company.
The researcher therefore has decided to go into these areas deeply to find out the impact of incentive on improving organizational out put.
1.3 OBJECTIVES OF THE STUDY
The research is aimed at achieving the following objectives:
(i) To ascertain whether incentive affect labour intake in Champion Breweries Plc.
(ii) To critically examine the theories related to the subject matter of this study.
(iii) To determine how incentives should be given (individually, collectively or both) by Champion Breweries Plc.
(iv) To determine whether incentives should be associated with performance.
(v) To find out whether job enrichment make a worker feel satisfied doing his job.
(vi) To stimulate intellectual discussion for future research.
1.4 SCOPE AND LIMITATION OF THE STUDY
As has already been stated, this work restricts itself to examining the impact of incentives on employment, a case study of Champion Breweries Plc, Uyo plant.
Fundamental problems were encountered in the course of this study and this adds to our numerous limitations.
The study is conducted under the ambit of human limitation. Since no human being is perfect and the researcher being a human being, the study is not expected to be 100% correct.
There is limited material on the impact of incentives on employment couple with the fact that much research has not been conducted in this area of management in Nigeria.
The distribution of questionnaires and their collection also created the problems of non-returns in some cases. Even though, these cases where relatively negligible, the researcher had to take the troubles of seeking the assistance of an employee in the collection of questionnaires.
Finally, the time period within which this research was carried out made it impossible to collect adequate data for analysis.
1.5 RESEARCH HYPOTHESIS
The research hypothesis is a tentative answer to a research question. It is an intelligent or educated guess of an answer to the problem of the research under investigation.
Taking the identified problems and objectives of the study into consideration, the following hypothesis have been formulated as a bases for analyzing the data from which a conclusion will be drawn.
H1 = There is a significant relationship between the level of labour intake when incentives are given to workers and when incentives are not given to them.
H0 = There is no significant relation between the level of labour intake when incentives are given to workers and when incentives are not given to them.
H2 = There is a positive and significant effect between the level of production when incentives are given to workers and when workers are not given incentives.
H3 = There is a positive and significant effect between employees performance when incentives are given to them and when incentives are not given them.
H0 = There is no positive and significant effect between employees performance when incentives are given to them and when incentives are not given to them.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this research work will not be overemphasized bearing in mind the usefulness of proper incentives on employment.
Based on this reason therefore, the study will help management substantive guidance on how to apply the various incentive schemes to motivate their staff which will produce the desired goals of both the organization and the employees.
It will help determine how much or the type of incentive scheme to be given to an employee for extra effort put forth.
It will help explore various incentive schemes and types, and when they will be introduced to suit performance and productivity.
It will also help to reduce indiscriminate use of incentive by organizations (particularly Champion Breweries Plc).
Finally, this study will assist people who want to make meaningful comparison of individual and group incentive.
1.7 RESEARCH QUESTIONS
These are questions designed to achieve the objectives of this research project. Each of the questions is geared towards getting certain ideas from the workers.
(i) Does incentive affect labour intake in Champion Breweries Plc?
(ii) Do job enrichment make a worker feel satisfied doing his job?
(iii) Does incentives have motivational effect on employees performance?
(iv) Should incentives be given individually, collectively or both by Champion Breweries Plc?
(v) What must be done for incentives to suit employment?
1.8 DEFINITION OF TERMS
Incentive – Incentives (sales, commissions, profile sharing) are rewards designed to encourage and reimburse employees for efforts beyond normal performance expectations (Perman, 1981).
Incentive Scheme – Incentive schemes are schemes that state remunerations to performance. It aims at improving punctuality or reducing material waste, the majority aims at increasing production (Harper, 1987:47).
Performance – it defines what is expected of employees plus the continuous orientation on employees toward effective job performance. Job performance = (ability) (Motivation) – Wayne (1989:460).
Motivation – The processes that affects the inner needs or drives that emerges the channel and maintain behavior of oneself and others to work towards the attainment of individual and organizational objective (Onuaha, 1991:198).
Productivity – It is the mea sure of how well resources are brought together in organizations and utilized for accomplishing a set of results. Productivity is reaching the highest level of performance with the least expenditure of resources (Mall, 1978:48).
Efficiency – It is a central element in the process of management that balances the amount or resources used to achieve an objective against what was actu
