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THE ROLE OF FINANCIAL INCENTIVES TO WORKERS MOTIVATION
CHAPTER ONE
1.1 INTRODUCTION
In any organization, the financial capability of employees is a very important factor as it determines the level or the extent to which he or she is motivated to expend his effort on the job performance.
The financial capability and other motivating modules that are at the disposal of a worker(s) is a liable determining factor for his or her level of productivity as this would affect the achievement or otherwise of an organizational set objectives.
In concrete terms, all of the requirements that the workers need to have are aids that will enhance job performance through increase productivity.
The term “incentives” is used to describe wage-payment plans which tie wage directly or indirectly to productivity standards (Ubeku, 1975, pg 139).
Incentives though is different from wages such as financial and material, etc. but in this study, we are mostly concerned with financial incentives as expressly exposed by Ubeku above, it is also referred to as wages incentives. Financial incentives is very important to the wellbeing of an employee as it places a very important role on his job. effort. This is because, a lack or fall short of this will negatively affect his attitude to work. And as a result, the important and the place of financial incentive cannot be undermined.
Hence financial incentive is of paramount importance as it is a payment method that enable employees to earn more money for producing more than a certain quota or set standard. Okoh (2005, pg 169).
Incentive is also regarded or used as a motivating factor in an organization. Ubekwe (1975, pg 139). It is a measure that is employed or been put in place to make a worker put extra effort in his work in other to ensure a high or a maximum productivity.
Financial incentive is regarded as a motivating factor for an employee through which its importance can be deciphered in a number of ways.
One of the ways (importance) is that financial incentive will motivate people (workers) to perform their job effectively to the extent to which they are satisfied with their jobs. That is greater than the extent to which an employee needs are satisfied, the greater the extent to which he or she will respond in terms of high level of productivity.
Another assumption is that when a reward is tied to a job, employee would be motivated to put in his effort maximally into his job.
Therefore, financial incentive helps an organization increase productivities, improve performance of individual employees and the organization needs to overall efficiency. Thus financial incentive to worker is very important as it is a motivating factor or scheme in an organization. Because, the extent of an employee’s economic (financial) will go a long way to arousing his or her innate ability to do his work.
No management system will be effective if it continually emphasizes higher level of performance and improvement, but fails to reward and to reorganize work of the employees. Therefore, managers and workers at all levels should consider productivity and the reward attach to it .which is (financial incentives).
1.2 PURPOSE OF THE STUDY
The aim of this study is to examine and give a comprehensive analysis of the role of financial incentive to workers motivation. Using Nigeria Breweries Plc as case study.
In order for this research study to be meaningful, there must be a purpose which the study is to accomplished.
The following are the purposes of this study
To show the role of financial incentives to workers motivation as practiced in Nigerian Breweries plc. Benin.
To show how Nigerian Breweries Plc view the role of financial incentive to workers.
To establish the strength and or weakness of financial incentives in Nigerian Breweries plc.
To show what is motivating people to work in Nigerian Breweries Plc.
To show the techniques the management of Nigerian Breweries plc has been using to achieve its aims and objectives.
1.3 SCOPE OF STUDY
This study covers a period of five years beginning from 2002 and terminating in 2006. it will look into the proper use of financial incentive in the motivation of workers.
The study will also delve into the major approaches to motivation and guidelines for effective motivation.
The research study will involve information gotten from junior staff, senior staff, management staff and expatriate staff. Nigerian Breweries has both Nigerian staff and international expatriate staff.
1.4 RESEARCH HYPOTHESES
HYPOTHESES II
H0 financial incentive alone outweight the other tools of employee motivation.
Ha Financial incentive alone outweigh the other tools of employee motivation.
HYPOTHESES II
H0 financial incentive alone do not improve employee performance.
Ha Financial incentive alone improve employee motivation.
While
H0 = is accepted Null
Ha = is non-accepted Null
1.5 RELEVANCE OF STUDY
This study after completion will be of immense assistance to students. Corporate bodies and individuals who wants to study more about financial incentives and their impact on the motivation of workers. It will also be of assistance to managers who want to study motivational methods in the organization.
The use of incentives or welfare packages and fabulous allowances to employees from the mani Crux of motivation for the employees, hence this study will take a critical look of financial incentives in the work environment taking Nigerian breweries as a base of evaluation.
HISTORICAL BACK GROUND OF NIGERIAN BREWERIES
Nigerian breweries Plc, as the name implies is a public limited company with the registered head office in Lagos. The ownership structure consists of foreign interests and Nigerians.
Note, the Nigerian breweries plc was established in November 1946, for the main purpose of brewing. It became the first brewing concern to be set up in the country. For logistic reason production did not start until the end June 1949, when the first bottle of star larger rolled out its only plant in Lagos. In 1949, the company had its only brewing plant in Lagos and only one product star.
Presently, it has brewing plants in Edo, Ibadan, Aba, Kaduna and Enugu, and a wider product range, which includes Gulder, legend extra stout, Maltina, Amstel Malta, Heineken and Fayrouz.
The company vigorously pursues a nationwide distribution policy to ensure that its product are made available at every major retail outlet where the consumer is or can be found. In this regard, the location of the brewing plant at different regions in the country is a deliberate intension to facilitate the supply of products efficiently in the service of out teeming consumers. The Nigerian breweries Plc also incorporate good citizenship, the company is committed to a culture of excellence in all its activities hence, it strives at all times to be above boards in its relationship with employees, customers, suppliers, shareholders, competitors, government and its agencies, the general public, etc, progress so far made could not have been possible without a dedicated, efficient and responsible work force. This company does not take for granted, and as such, has a clear police on human resource matters. According to Ikpatt, C and Ibanga M.H. (2001) the company’s human resource policy, ensures effective manpower training and development at all levels of the business. When new employees are engaged, their training needs are planned and judiciously pursued, taking into consideration the particular needs of the business and the individual qualities of the employee(s) concerned. The advancement of members of staff and indeed, their livelihood, depends on the success of the company. The company therefore expects its employees to be loyal and committed to maintain a high standard of efficiency in turn the company is concerned with the well-being and security of all its employees. Therefore both parties have mutual obligations and rights which may be summarized as follows. The company shall Endeavour to recognize the freedom of employees to form and join a trade union registered under the trade union Act.
Given every employee encouragement to develop his potential to the maximum and to pay careful attention to his work and progress. The employee shall in return give to the company.
The assurance to always endevour to discharge their duties/responsibilities to the best of their ability.
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