ABSTRACT
This research work investigated the impact of incentives on the
performance of Federal agencies in Nigeria. It will help to appraise how far the level of
incentives given by these Federal agencies to their staff has helped in the
attainment of organization’s goals and objectives. It will also help to ascertain the basis used
by the establishments for the distribution of the incentives to their
staff. Also, this research work will
help to ascertain government commitment towards implementing the incentive
programmes, and whether the decrease in businesses of their enterprise affects
the implementation of the incentive scheme.
Using a descriptive survey method, a total of 348 respondents were
sampled by stratified and simple random sampling methods. Meanwhile, the main instruments used for data
collection were questionnaires and personal interviews. While materials from libraries and other
research units provided the researcher with the secondary data.
The study reveals that Government have failed to provide adequate
incentives for the employees of these agencies such as: housing, social
amenities and free medical services etc.
Based on these findings, conclusion was drawn and some recommendations
made.
TABLE OF CONTENTS
Title page == == == == == i
Certification == == == == ii
Dedication == == == == == iii
Acknowledgement == == == == iv
Abstract == == == == vi
Table of content == == == == viii
CHAPTER
ONE
1.0 Introduction == == == == 1
1.1 Background
of the study == == == 1
1.2 Statement
of the problem == == == 5
1.3 Objectives
of the study == == == 6
1.4 The
significance of the study == == 7
1.5 Scope
and limitation of the study == == 8
1.6 Formulation
of hypothesis == == 9
1.7 Definition
of terms == == == 11
References == == == == 13
CHAPTER
TWO
2.0 Literature
review == == == == 14
2.1 Introduction == == == == 14
2.2 Motivations == == == == 15
2.3 The classical theories of motivation (historical Perspective) by Abraham Maslow’s Hierarchy of need == == == 18
2.4 Mc
Gregor’s postulations == == == 20
2.4.1 Vrooms
valence – expectancy theory == == 23
2.5 Mc.
Clelland’s theory of need == == 24
2.6 Equity
theory == == == == 25
2.7 Reinforcement
theory == == == 26
2.8 Path
goal theory == == == == 27
2.8.1 Incentives
== == == == 27
2.9 Incentives
– a source of motivation == == 28
2.9.1 Types
of incentives == == == 29
2.9.2 Importance of incentives == == == 31
2.9.3
Problems of incentives == == == 32
2.9.4 Review of the related research == == 33
References == == == == 37
CHAPTER
THREE
3.0 Research
methodology == == == 38
3.1 Source
of data == == == == 38
3.1.1 Primary
sources of data == == == 38
3.1.2
Secondary sources of data == == 39
3.2 Population
of study == == == 39
3.2.1
Determination of sample size == == 40
3.3 Method
of data analysis == == == 40
3.4 Instrument
for data collection == == 41
CHAPTER
FOUR
4.0 Presentation,
analysis and interpretation of data 43
4.1 Presentation
of data == == == == 43
4.2 Data
analysis == == == == 44
4.3 Test of
hypothesis == == == == 62
4.3.1
Hypothesis 1 == == == == 62
4.4 Interpretation
of result, meaning and discovery == 75
4.4.1 Hypothesis 1 == == == == 75
4.4.2
Hypothesis 2 == == == == 76
4.4.3 Hypothesis 3 == == == == 77
4.4.4 Hypothesis 4 == == == == 78
CHAPTER
FIVE
- Summary of
findings, conclusion and
recommendations == == == == 80
5.1 Summary
of findings == == == 80
5.2 Conclusion == == == == 85
5.3 Recommendations == == == 87
Questionnaire == == == == 89
Bibliography == == == == 95
CHAPTER ONE
- INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
“Every
organization needs the services of men to achieve its set goals. For these employees to put in their best
towards the achievement of organizational goals and objectives they must be
adequately motivated”, (Ugbaja, 1992:24).
Motivation
is that energizing force that compels or stimulates workers to willingly
contribute their best towards goal attainment.
From the organizational point of view, motivation deals with everything
a manager can use to influence the direction of individuals behavior towards
goal achievement. However, despite
several models of motivation propounded for work, on-the-job motivation has
remained a complex issue. Hence,
management consistent attempt to device effective incentives to enhance
motivation of different categories of work personnel with a view to achieving
staff commitment has failed.
Incentive
is a form of variable reward targeted at a particular performance outcome. It is designed to reward and thus, encourage
positive employee’s action within a clearly defined parameters which is
however, meant to achieve certain business outcome. As an addition to basic pay, they are used to
spur employees in an organization to greater productivity. They are also; strategies put in place to
effectively combine both human and material resources so as to enhance and
improve the performance of the organization by enabling it achieve its overall
goals.
Incentive
payment schemes are sometimes based on the simplistic assumption that employees
are indifferent to corporate needs and require the carrot to bring forward
positive and contributive behavior. Such payments can be made for extra effort
in the shop floor, shouldering extra responsibility in the office, getting more
quotas in the sales division, or achieving increased profit in the
boardroom. As a motivational tool,
incentives can be subdivided into two groups.
They are the financial and non-financial incentives. Financial incentives could be in form of
extra money added to the worker’s salary/wage, while the non-financial
incentives could be in form of promotion.
“It is worthy to note that these incentives are applied to all
categories of workers, since each group varies in extent to which they motivate
workers individually”. (Arnold, 1994:212).
However, it is obvious that Nigerian workers respond to financial
incentives. This is due to the
prevailing socio-economic conditions inherent in the country.
According
to Ejiofor, quoted in Akpala (1993:114), “there is a cheap labor in Nigeria,
low level of education, and satisfaction of basic needs of the Nigerian
workers, hence, managers could influence labor productivity by applying MC
Gregors’ Theory X”. In some industries,
incentives represent a considerable proportion of the task of managing
remuneration. “For the individual on
incentives, the payment can represent a significant element of earning. For the trade union, incentives are subject
for negotiation. For management, the
incentives scheme is designed to offer some hope of reduction in unit cost of
production, or in more general terms, an improvement in corporate well being”,
(Poole and Warner, 1998:23). More so
some organizations have in place fringe benefits such as: accident insurance
Policy, transport allowance, rent and meal subsidy among others.
This
supplementary compensation is often provided partly to attract and keep good
employees, which is partly required by law.
However, “despite the fact that employees do not expect direct tangible
productive job, they hope to be rewarded in terms of higher turnover, high
morale and some other advantages”, (Zolhitsh and Langer, 1970:112-131). “Majority of employees sees these benefits as
their first line of defense against unemployment, illness, and at old age etc”,
(Stranss and sayles, 1972:60).
Meanwhile, Herzberg (1964) opines that, “these could be termed hygiene
factors, but if tied to performance it may serve as an incentive to
perform”. In analyzing this, the
researcher is very curious to ascertain the impact of incentives in an
organization, and in doing this he used the two Federal Government agencies in Nigeria
as his case study, the type of incentives used, and criteria for
dispensation. He also wants to find out
whether workers are favorably responding to the existing incentives used to
motivate them towards improved performance and in goal achievement.
1.2 STATEMENT OF THE PROBLEM:
THE IMPACT OF INCENTIVES ON THE PERFORMANCE OF FEDERAL AGENCIES IN NIGERIA. (A CASE STUDY OF NIGERIA POSTAL SERVICE AND NIGERIA IMMIGRATION SERVICE)
