THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION

THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION

CHAPTER ONE

 INTRODUCTION

Sometimes, one wonders why some people perform more than others on the job or better still why people work hand.  Man in his natural form is somehow lazy and always tries to granitite towards his comfort zone unless some kind of forces or situation confronts him.  It is this force or situation that arouses his desire or more out of this comfort zone in order to avert negative consequences or reap a positive reward as the case may be.  This force of situation now becomes the motive for his working towards his set target (motivating factor).

Given the above illustration, management scholars have tired to define what motivation is all about.

The Webster Encyclopedic Dictionary of the English Language (1975) said that motivation relates to the sense, need or fear etc.  that prompts an individual to act.  Also Wole Adewunmi (1992) defined motivation as “the inner stimulus that induces one to behave the way he does” it has to do with that inner states that energizes, activates or moves and therefore directs behaviour towards goals

In all organization, productivity is beckoned on the design of its incentive variable to balance among various management levels.

There are several incentive variables that could motivate people to work to their optimal level and when these variables are not there, their productivity will be greatly affected.  This may come in the form of a well packaged remuneration.  Still others may not necessarily be motivated with well packaged incentive scheme.  The group believe that money is not everything”

Starke (1976:35) is of the opinion that “people work for broadly defined rewards” these rewards can be broken down into general classes known as intrinsic and extrinsic rewards.

Extrinsic rewards includes the figure pay proportion, compliments etc and are often independent of the task performed and are control by other people.

Intrinsic reward on the other hand include the feeling of accomplishment of  task and is administered by the individual doing the task.  However, workers performance in an organisation depends on these rewards among other incentives which may in one way or the other command job satisfaction.

1.0      BACKGROUND OF THE STUDY

Incentives are objectives or goals which are capable of satisfying what the employee views as need, drive or desire.  It includes accelerated payment for improved productivity as well as environment conditions.  For example, infrastructures transportation facilities, canteen services etc. though they do no directly provide income to workers, but are necessary for their effective performance. In other words, incentives do not only refer to usages payment but other things like job enrichment, free flow of information good relationship among junior and senior officers. Above all, the recognition accorded to individuals by society to their contribution also goes a long way to induce and energize them to work harder to achieve not only the organizational goals but also societal goals.

It is worthy of not that such incentives like, monetary rewards which may motivate the younger people who are beginners or the lower class of people in the society may not necessarily be motivating factor for some middle class and upper class of people in the society. People in the society, people in various positions even though at a similar level, must be given incentives that reflect their individual performance and expectations.

THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION