THE IMPACT OF FINANCIAL INCENTIVES ON EMPLOYEE PRODUCTIVITY IN PUBLIC SECTOR

CHAPTER ONE

1.0 BACKGROUND OF THE STUDY

Notable management experts such as Abram Maslow, Elton Mayo, Fedbrick Herzberg, Christ Agyris etc. has carried out studies and made recommendations on how to finance employee for effective performance.
Herzberg (1970) sees financial incentive as the management responsibilities to create objectives because they enjoy the work (not just the work) and feel it’s importance to do a good work. He emphasis economic financial incentives and also stresses ego needs.
Abraham Maslow developed a popular content theory which the state that people are finance to five groups of need and that those exist in an hierarchical order. The theories argue that lower order need in their hierarchical order are physiological needs, security needs, belonging needs, esteem needs, and self-actualization need.

The public sector of the society sees to the needs of the society at large. The primary aim is rendering of services to the public and taken care of the public welfare, such as construction of roads, building of hospitals and maternity homes, public sector to achieve the organizational objectives of societies through the institutional structure of the government, their must be highly skilled personal, capitals and materials. However, the availability of materials and high skilled personal, capitals and materials.

However, the availability of materials and high caliber personnel is not sufficient achieving efficiency and productivity in public sector management without influencing and encouraging the human involved.

Hence, management must examine the factor that promotes workers out put one of which is financial incentives. In other to achieve or improve on a particular productivity level of management must derive full potential benefits from the available human resources and this work and produce maximum productivity in order to achieve organization objective.

Difference institution, ministries, parastatals have difference financial incentives. However, not all financial factors aimed at financial employees achieve this purpose. In certain cases some financial incentives applied on employee serves as incentives and wasted financial resources.
In this project, we examine some financial factors used by the Kwara State Ministry of works and based on findings relate or determine whether these factors lead to job satisfaction and job satisfaction in terms leads to high productivity in the Kwara State Ministry of works Ilorin.

1.1 STATEMENT OF THE PROBLEMS

For public organization to be efficient, employee needs to be financed in other to put in their very best because public organization are not profit maximizing organization but their aim is to satisfy the needs of the people.
Another problem is to know the best method to used in finance employee of organization. There are many way is which an employees can be finance such as better salary, job security, spirit of belonging and other kind of benefits
The major question to be answered according to Ailkihsin (1968) “how do I finance my employee to put in their very best” also there is different individual style that is to say that individual react differently to a particular style so there is the need to study each employee socio Kultural environment with a view answering the question to knowing the best method to use.

1.2 OBJECTIVES OF THE STUDY

The purpose of the study are:
– To identify the cause of low productivity
– To examine financial factors and evaluate how they can lead to job satisfaction and increase productivity.
– It will help in suggesting adequate financial incentive style practices for manages and employees who are interested in improving their employee or subordinate performances in order to achieve organizational objectives.
– The main study involves the use of questionnaires and interviews in other to get the required information as per effectiveness of finance style.
– To know the type of record that actually finance the Nigeria works in to action for production.