THE EFFECT OF NON-MONETARY INCENTIVES ON EMPLOYEE PERFORMANCE

THE EFFECT OF NON-MONETARY INCENTIVES ON EMPLOYEE PERFORMANCE

ABSTRACT

The study examines the effect of non-monetary incentives on employees’ performance in Niyya foods Kaduna. The research question that guided the study were: Is Niyya Food remuneration based on incentive scheme? What kind of financial incentive does Niyya Food give to its works and what are the effect on what workers? What kind of non-monetary incentives does Niyya Food use to boost workers productivity? What are the constraints militating against Niyya Food incentive schemes and how can it be overcome? a survey method was used for this study. The population consisted of all Staff of Niyya Food Kaduna. Out of 158 persons, a sample size of 70 was drawn from the total population using the stratified random sampling technique. A questionnaire developed by the researcher based on likert 5-point scale was used for the study. Mean scores was used to analyse the data based on the research questions. The research result shows that Niyya Food incentive scheme does not enhance workers performance because, it does not take into cognizance in it remuneration and do not even evaluate or appraisal workers performance. It was recommended that other non-monetary incentives like lectures, seminar, symposium as well as Recreational facilities, such as club with sporting facilities, entry bar and other recreational facility that would help staff unwind after work should be designed and adopted. This will facilitate efficiency and increase productivity in Niyya Food.

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

All organizations are concerned with what should be done to achieve high level of productivity through staff motivation using the right kind of incentive. Most organizations in the past have been using financial incentives but their workers are still agitating for increment in salaries. Consequently, the effect of non-monetary incentive becomes a burning issue in human resource management (Okoh, 2008).

The issue of adequate motivation and consequently workers productivity is a product of a person’s set up of needs, goals, drive and experience. By implication, this means that factors which govern motivation, job satisfaction, workers productivity and attitude to work differ from one society to another. However, the entire issue of the implication of adequate motivation on workers productivity is embedded in the various theories of motivation. People are motivated by various factors at different times, according to Wilkinson et al, the first factor is the combination of the individual perceptions of the expectations other people have of them, and their own expectations of themselves. This happens because people come into work situations with various expectations.

People work together in large organisations like bank, factory where they are expected to follow orders, which they may not approve of. In addition, they may have to obey instruction from supervisors they had no hand in selecting. This is the type of situation where the worker might have no opportunity for self-expression. The basic question that now arises, relates to how to create a situation in which workers can satisfy their individual needs while working towards organisational goals. How can workers in corporate organisation in Nigeria who’s workers feel that their salaries are low when compared with their contemporaries in other organisation?

As such a lot of theoretical concept, principles and techniques of management have evolved in response to these challenges/ but most scholars suggest that more conceptual and empirical work is required to show the link between financial and non-monetary incentive and staff productivity is still vague but some studies have documented in their work that financial incentive is readily perceived as having a high instrumental value that makes putting forth extra effort worthwhile and its has a long term effect in terms of labour turnover rate because of comparative value for alternative employment while non-monetary incentive has less initial impact as the pragmatics of financial gain, they seem to have a steady, sustainable impact(Egbe,2008).

Despite the growing body of literature and empirical study on the effect of  non-monetary incentive on workers productivity, the subject matter still remains complex. Hence, the need to undertake a survey on the effect of   non monetary incentives on staff productivity in Niyya food and drinks company Ltd Kaduna.

1.2    Statement of the Problem

Most organizations in Nigeria are constraint with the problem of using non performance based element like salaries to compensate it staff as against performance-related pay structure which has