Impact Of Monetary Incentive On Organizational Performance (A Case Study Of First Bank Plc) Enugu
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.
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
- What types of incentive schemes are variable in First bank of Nigeria?
- Are employees of the company actually reaping benefits which provide job satisfaction from these schemes?
- Is first bank of Nigeria Plc, attaining the main objectives for administrating these scheme?
- To examine the different types of incentive scheme put in lace by the First Bank Plc.
- To test the effectives, adequacy and relevance of these incentives schemes to the overall performances of individual worker or group of workers.
- 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.
- 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.
- Out of the 101 questionnaire administered, only 76 were returned thereby rendering the assumed margin of error unreliable.
- 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.
- 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.