Impact Of Monetary Incentive On Organizational Performance

Impact Of Monetary Incentive On Organizational Performance (A Case Study Of First Bank Plc) Enugu

                                                                     ABSTRACT

In all organization productivity is beckoned on the design of its incentive variable to believe among various management levels. These are several incentive variables that could motivate people to work to their optional level and when these variables are not there, their productivity will greatly affected. This may come inform of package remuneration, still others may not necessarily be motivated with a well packaged incentive scheme.

In generating data needed to achieve the objectives of the study descriptive survey research design was adopted. Questionnaire was used on the major instrument for primary data collection. To     broaden the researcher’s depth of knowledge in the study area the researcher embarked upon review of related literature with data drawn from secondary sources. Data generated in the study was presented on frequency table and analyzed using simple percentage while the hypotheses were tested Z test.

Finally, the study concluded that monetary incentives make the workers satisfied with the treatment given to them, the organization will achieve its goals, targets and objectives in a very short time.

CHAPTER ONE

1.0      INTRODUCTION

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

Given the above illustration management scholars have tried to define what motivation relates to the tense, need or fear etc, that attempts on individual to act. Also Wole Adewuni (1992) defined motivation as “the inner stimulus that induces one to behave the way he does”. It has to with that inner state that energizes, activates or moves and therefore directs behaviours towards goals.

In an organization, productivity is beckoned on the design of its incentive variables to balance among various management levels. There are several incentive variables that could motivate people to work in their optional level and when these variables are not there, their productivity will be greatly affected. This may come inform of a well packaged incentive scheme. The group believes that is not everything.

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

Extrinsic rewards include figure pay proportion, compliments etc and are often independent of the task performed and are controlled by other people. Intrinsic rewards on the other hand include the feeling of accomplishment of task and are administered by the individual during the task. However, workers performance in an organization depends on these rewards among other incentives which may in one way or the other command job satisfaction.

  • BACKGROUND OF THE STUDY

Incentives are objectives or goals which are capable and satisfying what the employ is view 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. In other words, incentives do not only refer to wages payments but other things like job enrichment, here flow of information, good relationship among junior and senior officers relationship.

Above all the recognition accorded to individuals by society to their contribution also goes as long way to induce and energize them to work harder to achieve not only the organizational goals but also societal goal.

It is worthy of not that such incentives like monetary rewards which may motivate the younger people who are beginners or the lower does of people in the society. People in various positions, even though at a similar level, must be given incentive that reflects their individual performance and expectations.

A higher performance must be rewarded more than the lower performance for a feeling of quality to prevail. Given this, money is likely to be a motivator. Variable remuneration has been favoured as the means of given employees incentives to produce or sell increased volume or improve the quality of their performance.

In most business and other organization, money is actually used in keeping an organization adequately staff and not primarily as a motivator. Any bonus scheme for manual workers should be related to criteria which are meaningful to the employees and which are capable of being mentored consistently. The incentive to achieve a particular objective for example, increased volume should not set as an incentive to worsen other standards of achievement like quality, it is therefore, important to know what induces a worker most, as many people have difference needs and aspiration. People work for various reasons, depending on what they want, they are looking forward to achieving, here, it is the duty of the management of any organization to find out the needs its employees and then  channel efforts towards attaining them.

Incentive  which may be seen as payment or reward for work or services rendered have been a common features in Nigeria establishments to  which First Bank of Nigeria Plc is not on exception. It is therefore the objectives of this that could motivate workers to greater achievement.

Management scholar and other employers of labour will also find this work very useful as it would enable them to be vast of the value of incentive to performance of workers, if appropriately applied. This will in effect bring greater efficiency of workers if adequately employed.

Furthermore, students and other people who wish to carry out a similar study in other establishment will find this work beneficial as the ideas exposed in this work will be a guide in the right direction.

First Bank of Nigeria Plc, for over a century, has distinguish itself as a lending banking institution and a major contributor to the economic achievement and development of Nigeria. This bank was found in 1894 by a shipping magnate from Liverpool, Sir Alfred.

It was incorporated as Limited Liability Company on March 31st 1894, with head office in Liverpool. It started business under the corporate name of the Bank   for British West Africa (BBWA) with a paid up capital of 12,000 pounds sterling, after absorbing its predecessor.

Over the years, the bank has experienced phenomenal growth with a share  capital and N55.6 million in 1980, the bank’s share capital grow to N650.385 million at 31st March, 2000 the bank total assets base was N180.553 billion while it deposit base stood at N127.230 billion as at 31st March 2000.

The bank has improved tremendously judging from a number of parameters including member of branches, growth in deposit basis, asset size of loans and advances.

  • THE STATEMENT OF THE PROBLEM

It is fundamentally unrealistic to assume that people would continue to find satisfaction in co-operating in organization’s affairs, if no interest is shown in their individual needs and problems.

It is agreed that in spite of whatever, gains must have been achieved ensuring adequate compensation among workers around the world. Existing compensation programmes have failed to attract hold and motivate employees because the individual worker is not considered and he did not participate in the planning and design of such incentives before its execution or implementation. However, the economic and social development of Nigeria depends to a great extent on the ability of the public services to attract and retain the services of qualified manpower. Therefore, the concepts of total compensation programme has economic, social, behaviour and legal basis or consequences. To what extent is this recognized by the First Bank of Nigeria Plc’s incentives scheme on the performance of workers in the company.

  • PURPOSE OF THE STUDY

The above problems bring to file the following sub-problem

  1. What types of incentive schemes are variable in First bank of Nigeria?
  2. Are employees of the company actually reaping benefits which provide job satisfaction from these schemes?
  3. Is first bank of Nigeria Plc, attaining the main objectives for administrating these scheme?
  4. To examine the different types of incentive scheme put in lace by the First Bank Plc.
  5. To test the effectives, adequacy and relevance of these incentives schemes to the overall performances of individual worker or group of workers.
  6. To examine the extent the organization is achieving its objectives for administering these incentive schemes.
    • SCOPE OF THE STUDY

This study aimed at investigating the impact of monetary incentive scheme for the performance of workers in an organization. First Bank of Nigeria Plc, Enugu as a model organization was used because of resource constraints, a branch of first bank of Nigeria Plc was studies. All eh department and cadres of employees were covered in the study, to examine incentives and its administration in first bank Plc, the study will also evaluate the appropriateness of the programme with a view to ascertaining how they influence workers to perform efficiently which results in an increase in the organizational productivity finally, the study will also address the impact of the incentive of the existing worker as well those that have left the organization.

  • RESEARCH HYPOTHESIS

Ho:First bank Plc incentive scheme has no impact on the employees job performance.

H1:First bank Plc incentive scheme has an impact on the employee job performance.

Ho:All cadres of workers in first bank Nigeria Plc are involved in planning the incentive scheme

H1:All cadres of workers in first bank Nigeria are not involved in planning the incentive scheme.

  • SIGNIFICANCE OF THE STUDY 

It is hoped that this study when completed will assist business enterprises in their operations and enable them  to employ incentive schemes and other motivational variables that would optimized the productivity, that management find useful for further planning.

This work will be of assistance to the management of the first bank Plc as it will enable them to restructure their incentive scheme s as to reflect the aspiration and need of their workers. Besides, it will be of great important to offer organization, since it will expose them to some of the incentives.

  • LIMITATION OF THE STUDY

Some problems were encountered while in one form of the other constituted limitation to the collected data.

  1. The sampling frame obtained from the personnel department of First Bank Nigeria Plc indicated that there are more then 300 staff members. It was the intention of the researcher to obtain information from the entire employee but as a result of time and financial constrains, the coverage was united to only 101 representing about 50% of the proportion.
  2. Out of the 101 questionnaire administered, only 76 were returned thereby rendering the assumed margin of error unreliable.
  3. Some respondents were not very less operative and could have given non-reliable information, as they feared publicly despite the assurance by the researcher to treat every information with utmost jealousy.
  4. Time was one of the major constraints faced by the researcher. The time allocated for eh study was too small because the researcher has to attend lectures, prepare for quizzes and examinations and as results too little time was deviated to the study.

Effective Planning As A Tool For Managing Business Organizations

Effective Planning As A Tool For Managing Business Organizations In Enugu Metropolis (A Case Study Of Calipak Nig. Ltd)

CHAPTER ONE

INTRODUCTION

  • Background Of The Study

The word effective planning is a indispensable tool in business management. The first step a business takes is to  define its missions,  secondly, it sets its goals and thirdly, it pursues the goals or objective. Planning is involved in each of these steps. Hence, we say that planning precedes all the other management function. Continue reading Effective Planning As A Tool For Managing Business Organizations

Multi National Companies And Their Social Responsibilities In Communities

Multi National Companies And Their Social Responsibilities In Their Host Communities(A Case Study Of Shell Company Port-Harcourt, River State)

   CHAPTER ONE

INTRODUCTION

  • Background Of Study

Profit maximization was regarded as the primary mission and over-reaching economic motive of any business enterprises little or no attention was paid to the fact that, in pursuit of their profit objective, business enterprises have to be ask to assemble the resource from the local environment and have the Continue reading Multi National Companies And Their Social Responsibilities In Communities

Implications Of Entrepreneurship On Employment Generation

Implications Of Entrepreneurship On Employment Generation: Evidence From Enugu State

 Abstract

The topic of this study, implication of entrepreneurship on employment generation: evidence from Enugu State, seeks to find out the employment potentials of entrepreneurship in Enugu State, to identify the core problems militating against the establishment of small business and to determine the contributions of employment to economic growth. Data was collected from CBN Continue reading Implications Of Entrepreneurship On Employment Generation

BUSINESS ADMINISTRATION PROJECT TOPICS

Business Administration Project Topics and Materials

Bravoprojecthelp has lots of high quality project materials on Business Administration. Click to view any of the topics below:

The role and Impact of delegation of Authority in Nigeria Port Authority

The  problems of raw material in paint Industries

Managing industrial dispute in higher institutions

Effect of leadership style on workers morale and productivity

A  study of the effects of compensation on workers performance.

The impact of small scale business on the economic development of Anambra State

The impact of effective compensation on the employees performance

The impact of corporate social responsibility to nigeria business organization

A study of the effect of human resources management techniques on organizational goal achievement in first bank

The establishment and management of small scale firms Continue reading BUSINESS ADMINISTRATION PROJECT TOPICS

The role and Impact of delegation of Authority in Nigeria Port Authority

The role and Impact of delegation of Authority in Nigeria Port Authority, Port Harcourt, Rivers State.

ABSTRACT

THE ATTAINMENT OF ORGANIZATION GOALS IN MOST ORGANIZATION HAS BEEN HINDERED BY MANAGERS WHO DID NOT OFTEN DELEGATE AUTHORITY TO THEIR SUBORDINATES DUE TO THE FOLLOWING REASON “FEAR OF BEING SUPERSEDED” MANY MANAGERS BELIEVE THAT DELEGATING AUTHORITY TO THEIR SUBORDINATES WILL EVENTUALLY CREATE WAY FOR THEIR EXIST IN THE ORGANIZATION.SECONDARY, DELEGATION TO THEM INVOLVES RISK BECAUSE, THEY ARE HELD RESPONSIBLE AND ACCOUNTABLE FOR ANY MISAPPLICATION OF AUTHORITY MADE BY THEIR SUBORDINATES. BESIDES, IT INVOLVES TIME CONSUMING BECAUSE THE MANAGER WILL BE ADDING THE COACHING OF SUBORDINATES TO HIS WORKLOAD.AGAIN, MANAGERS LACK CONFIDENCE IN THEIR SUBORDINATES BECAUSE THEY CAN’T PERFORM CONFRONTED WITH THESE PROBLEMS, THE PURPOSE OF THE STUDY WILL BE TO EXPLAIN THE NATURE, IMPORTANCE OF DELEGATION OF AUTHORITY: TO EXAMINE THE FACTORS MILITATING AGAINST THE PROGRESS OF DELEGATION OF AUTHORITY IN ORGANIZATION: TO IMPROVE SUPERIOR SUBORDINATE RELATIONSHIP AND DECISION MAKING IN ORGANIZATION AND TO ESTABLISH THE EXTENT TO WHICH THE ROLE AND IMPACT OF DELEGATION OF AUTHORITY CAN BE ASCERTAINED IN ORGANIZATION. IN ORDER TO SUBSTANTIATE THE RESEARCH QUESTION METHODOLOGY EMPLOYED INCLUDED THE USE OF QUESTIONNAIRE TO GATHER DATA, WHILE SIMPLE PERCENTAGE WAS USED TO TEST THE RESEARCH QUESTIONS AND TO ASCERTAIN THE LEVEL OF THEIR SIGNIFICANCE FROM THE STUDY OUR FINDINGS REVEALED THAT, DELEGATION OF AUTHORITY HAVE IMPACT ON DECISION MAKING. ALSO INTER PERSONAL RELATIONSHIP WITH BOSS AFFECTS DELEGATION OF AUTHORITY IN ORGANIZATIONS. BESIDES, INEFFECTIVE DELEGATION OF AUTHORITY LEADS TO LOWER PRODUCTION IN ORGANIZATION. FINALLY, TO FACILITATE EFFECTIVE DELEGATION OF AUTHORITY ON ORGANIZATION, THE FOLLOWING RECOMMENDATION WERE SUGGESTED: MANAGERS SHOULD EDUCATE SUBORDINATES BASED ON DELEGATION OF AUTHORITY THROUGH SEMINARS, TRAINING, SYMPOSIA AND ANY OTHER ORGANIZED PROGRAMME TO AID EFFECTIVE DELEGATION OF AUTHORITY IN ORGANIZATION, MANAGERS SHOULD SEE. THE NEED TO DELEGATE AUTHORITY WISELY TO THEIR SUBORDINATES AS IT WILL AID THEM LOOK AHEAD IN ANTICIPATION OF PROBLEMS AND FINDING A WAY TO GET AHEAD OF COMPETITORS

                   CHAPTER 1

                   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The development of seaport in Nigeria started in the mid 19th century in the era of explorers and trades. This initiated opening of the Lagos lagoon, which resulted in the opening of port at Apapa and Port-Harcourt in brief, the length is about 1,877 in meter and the development of the seaport started in 18th June, 1953. Continue reading The role and Impact of delegation of Authority in Nigeria Port Authority

THE PROBLEMS OF RAW MATERIAL IN PAINT INDUSTRIES

THE  PROBLEMS OF RAW MATERIAL IN PAINT INDUSTRY IN  ZUMBA  AND MACOS PAINT ONITSHA.

Abstract

This work was centred on  the problems of raw  materials in paint n  industries a case study of zumba and macos paint Onitsha. Five hypothesis were formulated in chapter one. The hypothesis were used to formulate the questionnaire which were used  in chapter three  of this  project, 50 questionnaire were used and share equally between these two industries,  Oral interview format were also used for carrying out the research. The method used in analysis the data was simple percentage. Moreover, within the scope of the hypothesis Statement, it was found out that had equate supply of raw material pose problems to production of paint in Onitsha, despite that cheap source of raw materials leads to increased  productivity, cheaper product and high quality of goods, importation of raw material leads to paint industry producing below installed capacity, inadequate supply of raw materials leads to paint industry producing below installed capacity, inadequate supply  of raw materials is key factor that  influence  closure of pain industries in Nigeria and Government policy  has a significant  influence on the supply  of  raw material to paint industry, then  within  the constraint, of this study, the research gave recommendation as a result of the problem enumerated above. In conclusion, inadequate supply of raw materials pose problems to the production of paint in Onitsha and this was accepted by the respondents and hence government should formulate policy that ensure easy access to raw materials and encourage  local sources of  the raw materials.

CHAPTER 1

INTRODUCTION

1.1   Background of the Study

The intention of this study is to investigate the marketing strategies of paint industry (a case study of ZUMBA and MACOS). It is unwise to think of survival as regard to food and clothing  without considering  individual environment, as how neat the building  are kept decorating, these does not means beautifying the building only but is away of presenting the appearance of the building to fight against organic, growth such as fungi and algae. Continue reading THE PROBLEMS OF RAW MATERIAL IN PAINT INDUSTRIES

MANAGING INDUSTRIAL DISPUTE IN HIGHER INSTITUTIONS

MANAGING INDUSTRIAL DISPUTE IN HIGHER INSTITUTIONS, A CASE STUDY OF ENUGU STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY (ESUT)

Chapter 1

1.1 Background of the Study

In the formation of the national industrial policy, the federal government was influenced by the country’s social and economic conditions and the standard set by the International Labour Organization (ILO) which Nigeria is a member.

In Nigeria, trade union service and industrial relation department under the federal ministry of labour and productivity are primarily responsible for the promotion and maintenance of industrial peace and harmony in all the trade disputes which (i.e Employers and Employees or union members) have failed to settle through internal machinery designed to reach amicable settlement of disputes. Despite the existence of these two departments (i.e Employees with their unions), industrial crises involving a total of 1,029 trade disputes were handled within the year (1990-2002), resulting in 899 strikes and lockout, only 801 of the disputes were resolved through intervention and conciliation, number of workers involved are 3,090,049 number of disputes days was 809,017 and total day lost    was 3,541,732,628. SOURCE: Labour and productivity office 2005. But in situation where the disputes cannot be settled through intervention and conciliation, the case will be referred to the industrial Arbitration panel (IAP) or the National Industrial Count (NIC).

According to Joy Nonye Ugwu, industrial relation can be defined as the intervening activities of trade union, Employers and the state. Continue reading MANAGING INDUSTRIAL DISPUTE IN HIGHER INSTITUTIONS

EFFECT OF LEADERSHIP STYLE ON WORKERS MORALE AND PRODUCTIVITY

EFFECT OF LEADERSHIP STYLE ON WORKERS MORALE AND PRODUCTIVITY (A STUDY OF NIGERIAN BOTTLING COMPANY ONTISHA ANAMBRA STATE.

ABSTRACT

This study is concerned with the effect of leadership style on workers morale and productivity with a particular reference on bottling company  PLC Onitsha Anambra State. The purpose of the study was focused towards the understanding of the leadership style with emphasis on workers morale and productivity, the type of leadership style and finding some problems associated with these styles, also to find out how those leadership style  can help in the increase of the  organizational productivity and workers morale in Nigerian bottling company Onitsha. The significance of this study was to expose him to various ways leadership style could effect the morale of the employees and increase the productivity of the organization.However, it is the questionnaire that constitute the major instrument for data collection in this study, random sampling techniques were used to select the respondent for  the study. These data collected were analyzed using tables and sample percentage.  The major conclusion of this study is that the company should provides effective leadership to ensure sense of direction and purposefulness because companies led of capable leaders are confident of achieving its goals. It appear more appropriate for company to adopt a multiphase leadership posture especially when  considering the given operation situations. The recommendation of the study is that management of this company should adopt more versatile leadership approach that takes into consideration the variability operating situation this in turn will further enhance workers because morale and eradiate the most basic productivity problems because this leadership style is an important aspect in management policy, for higher efficient productivity and increase performance.

CHAPTER ONE

1.0  INTRODUCTION

The research work is aimed at a study of leadership style, its impact on a workers morale and productivity and on the workers attitude of employees of Nigeria bottling company Plc, Onitsha, which is used as a study. Continue reading EFFECT OF LEADERSHIP STYLE ON WORKERS MORALE AND PRODUCTIVITY

A STUDY OF THE EFFECTS OF COMPENSATION ON WORKERS PERFORMANCE.

A STUDY OF THE EFFECTS OF COMPENSATION ON WORKERS PERFORMANCE. (A CASE STUDY OF GUINNESS BREWERIES PLC                  BENIN CITY

Abstract

This research work is carried out on the effects of compensation on the performance of workers. The objectives of the study is aimed at knowing the effects of compensation on workers in Guinness Breweries Plc Benin City. For the above purpose to be achieved data were obtained from both primary and secondary sources. The primary sources were questionnaires and interviews while the secondary sources were textbooks, Journals, magazines and newspapers. The findings showed that competitive compensation package motivates workers of Guinness Breweries Plc for effective and efficient performance which directly increase productivity in organizations. It was also observed that inadequate compensation has adverse and dysfunctional effect on the performance of the workers. Based on the findings, it has been concluded and suggested that the management of Guinness Breweries Plc should motivate the workers by designing competitive compensation packages. Finally, it has also been suggested that Guinness Breweries Plc should embark on job evaluation and performance appraisal exercise so as to able to assess different jobs and capabilities of the staff properly for equitable compensation.

CHAPTER 1

Introduction

  • Background of the study

Guinness Breweries plc is relatively young company but from parent with a long worthy history spreading back more than 200 years. Guinness stout is sold in every country of the world. It’s popularity is based on natural goodness and unique flavor. In 1959, Arthur Guinness established his brewery on a four near the western entrance to the city of Dublin, Ireland, called St. James gate. Although, the gate has disappeared the brewery which bears its name now covers 66 acres and is one of the largest in the world. Continue reading A STUDY OF THE EFFECTS OF COMPENSATION ON WORKERS PERFORMANCE.