ABSTRACT
The
success of an organization in realizing its objectives heavily depends on the
performance of its employees. Performance is considered to be related with the
concepts of ability, opportunity and motivation. There are many contemporary
research studies supporting the effectiveness of monetary incentives as a
motivating tool on organization’s performance.
There has been controversy as to whether employees are motivated by monetary
incentive. This proposed research work attempts
to delve into the use of monetary
incentives on organizations performance. Questionnaire method will be used to
obtain data for the study and the random sampling procedure will be used also in
the selection of respondents from the organizations under study. Simple
percentage method of data analysis and chi-square statistics test will be used
in analyzing the data obtained. The researcher will commence the write-up with
an introduction, statement of the problem, objective of the study and significance
of study. This will be followed by literature review and theoretical framework.
The research methodology, data presentation and analysis will be presented
thereafter. The study will be ended with conclusion and recommendations. Based
on the analysis of the responses, the following will be identified: that
gender, employee’s status, organization performance and preference for monetary
or non-monetary incentives.
BACKGROUND
TO THE STUDY
All
organizations, whether public or private, need motivated employees to be
effective and efficient in their functioning and responsibilities. Employees
who are motivated to work energetically and creatively toward the
accomplishment of organizational goals are one of the most important inputs to
organizational performance and success. Consequently,
the challenge for organizations is to ensure that their employees are highly
motivated. With regard to monetary
incentives, it can be argued that some organizations
have more financial resources to motivate their employees than the others. While many organizations have monetary
incentives such as bonuses, commissions, cash rewards etc., it is quite
challenging for some of the organizations to provide such incentives in
adequate levels in a weak national economy.
As a result, it is important to look for any possible alternative means
that can be used to motivate employees to boost organizational performance
(Ryan and Deci, 2000).
It
is widely accepted by the organizational theorists that manpower is one of the
most important assets of an organization because things are been done through
employees. In other words, the performance
and success of an organization in realizing its objectives heavily depends on
the employees. Therefore, it is
important to focus on the factors affecting the performance of the organization.
Performance is considered to be related with the concepts of ability,
opportunity and motivation (Ivancevich and Matteson, 2008).
STATEMENT OF THE PROBLEM
In line with this
purpose, this study focuses on the use of monetary incentives on organizational
performance. Monetary or cash incentives do involve direct payment of cash. 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 in ensuring
adequate compensation among workers, 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 designing of such
incentives before its execution or implementation. Thus, this have an impact
either ways negatively or positively on the organization’s performance.
OBJECTIVES OF THE STUDY
The main objective of
this proposed study is to assess the extent to which monetary incentives has
impacted on the performance of First Bank of Nigeria Plc. The specific
objectives of the study include;
(a)
What
type of incentive schemes that are available in First Bank of Nigeria Plc?
(b)
Are
employees of the organization actually reaping benefit which provides job
satisfaction from these schemes?
(c)
To
examine the different types of incentives scheme put in place by First Bank of
Nigeria Plc
(d)
To
do an in depth analysis of the Bank’s incentives schemes and productivity trend over the years.
(e)
To
test the effectiveness, adequacy and relevance of these incentives schemes to
the overall performance of individual worker or group of workers and as well
the organization.
SIGNIFICANCE OF THE STUDY
It is hoped that this proposed study
when completed will assist business enterprises in their operations and enable
then to employ incentive schemes and other motivational variables that would
optimize the productivity and performance of their operations.
The study when completed will identify
the motivational factors and incentive variables, if any, that are currently
militating against the smooth operations and performance of organizations in
area of its job performance and productivity that management find useful for
future planning.
RESEARCH
QUESTIONS
These
research questions is a guide and they serve as an objective for the researcher
in the course of this proposed study:
1.
To
what extent is the effectiveness, adequately relevance of these incentives
schemes to the overall organization’s performance?
2.
To
what extent do the existing compensation programmes failed to attract, hold and motivate employees?
3.
To
what extent is the incentive scheme lead to attainment of job satisfaction and
motivation of the workers?
4. To
what extent is First Bank of Nigeria Plc, attaining the main objectives for administering these schemes?
RESEARCH HYPOTHESES
Note that H0 is the Null
hypothesis, while the H1 is the Alternative Hypothesis:
Hypothesis one:
(a)
First
Bank of Nigeria Plc incentives scheme has no impact on the organizational
performance
(b)
First
Bank of Nigeria Plc incentives scheme has an impact on the organizational
performance
Hypothesis
two:
(a)
All
cadres of workers in First Bank of Nigeria Plc are not involved in planning the
incentive scheme.
(b) All
cadres of worker in First Bank Plc are involved in planning the incentive
scheme.
SCOPE OF STUDY
The
study will be conducted in Abuja, the Federal Capital Territory of Nigeria with
reference to First Bank of Nigeria Plc, Wuse II, Abuja. To make the research
work more reliable and valid, the sample study will cut across top management,
middle management and junior staff may be included, but particular emphasis
would be on the top management due to the nature of subject being addressed.
LITERATURE REVIEW
According
to Ubeku (1975: 139-147), the key to behaviour understanding is knowledge of
human needs. People work in order to satisfy monetary incentives. Monetary
incentives are repayment in cash and in money form for a given work done by
employees in the organization.
Employees
would go any extent to increase their cash income just as they will do anything
to prevent their source of income from being eliminated. The fact that
employees fear to lose their job, cash has been an extremely effective motivator
simply because money is indispensable for survival in an economy. Monetary
incentives in modern society are the most transferable means of satisfying
basic needs.
Monetary
incentives take variety of forms and include wages, salary, allowances, bonus,
e.t.c. According to Cole (2000:216), a salary system can best be considered as
a mechanism by which an organization plans how to attract, retain, reward and
motivate its salaried employees to provide a fair reward to those performing
specified roles, to provide an incentive for employees and to keep pace with
inflation. Pitfield (1980:180) explained that bonus provides greater rewards
for output above a certain agreed level. They may be based on individual output
or on the output of a group. Bonus adds flexibility to a compensation plan i.e.
they are paid monthly under the terms of an annual rate of pay.
In
spite of the positive role monetary incentives have played, workers tend to
have different attitude towards money incentives. The most common of the diverse
reaction to wages and salaries by workers is that once it exceeds minimum
levels, it is regarded as a measure of fairness. Pitfield (1980:181) posited
non-monetary incentives as fringe benefits made available to staff and are
regarded as an addition to wages and salaries. It consists of direct and
indirect benefits. The direct benefit may include profit-sharing, sick pay,
pension schemes, etc. the indirect benefits may include welfare amenities,
social and recreational facilities, etc. Gellermen (1976:16) insisted that pay,
if only it could be properly packaged would somehow bring about the desired performance
in organizations.
Ojo
(1991:18) stated that managers and supervisors need to apply situational
appropriate motivational factors in the context of their peculiar
organizational environment.
Kepner,
Wysocki, Mckenzie and Ballentine (2001:1) explained that the purpose of
monetary incentives is to reward employees for excellent performance through
money. He noted that monetary incentives include profit sharing, project
bonuses, stock options warrants and scheduled bonuses. Traditionally, these
have helped maintained a positive motivational environment for employees.
Monetary
incentives encourage compliance rather than risk taking because most rewards
are based only on performance. Nelson (1999) also cited in Kepner et al (2001:
1) posited that research suggests that desired monetary incentives differ for
employee based on carrier stage and generation surveys by American Association
of Retired Persons (AARP) have shown that most employees will work past
retirement age if offered flexible schedules, part-time hours and temporary
employment.
RESEARCH METHODOLOGY
This
section describes the research design area of the research work intended to be
carried out, population of the study, sample and sampling procedure /
technique, instrument for data collection, method of data collection and method
of data analysis. The proposed research will be carried out predominately on
First Bank of Nigeria Plc, Abuja and it is on this organization that the data
will relate.
The
type of research design that will be used in this proposed research work is
descriptive survey. This descriptive survey will be used on the study “ Impacts of Monetary Incentive on
Organization Performance (A case
study of First Bank of Nigeria Plc,
Wuse II, Abuja)”. The instrument for data collection will be
interview and questionnaire as well as contributions from various writers.
SAMPLE
AND SAMPLING PROCEDURE TECHNIQUE
In
determining the sample size, selected persons will be administered with
questionnaires and interview will be done by simple random sampling without
replacement.
To
get the opinion of the cross section of the workers, the researcher intends to
divide the working population into various grades i.e senior staff level,
supervisory staff level and junior staff level may be included also.
METHOD
OF DATA COLLECTION
The
researcher will take cognizance of the descriptive nature of the proposed
research work and will apply it for the completion of the project. The main
methods of data collection that will be considered will be primary and
secondary data.
METHOD
OF DATA ANALYSIS
The
method of data presentation which will be used by the researcher is the tabular
method and percentages. The tabular method involves the systematic arrangement
of facts and figures in series of boxes made up of rows and columns.
The
percentage will show relative values of responses in percentages and the
researcher intends to use Chi-square (X2)
formula in testing the validity of the hypotheses.
INSTRUMENT
FOR THE DATA COLLECTION
The
collection of data is the most crucial operation in the execution of a research
because such data are necessary for arriving at the solution of the problem to
be investigated. The instrument for data collection will be interview and
questionnaire as well as contributions from various writers. The data to be
used to carry out this research will be based on 2015 staff strength of First
Bank of Nigeria Plc, Abuja.
SUMMARY AND CONCLUSION
Based
on the above, when the proposed research study is concluded, the researcher
will be able to summarize the findings, make recommendation, proffer solution where necessary etc.
REFERENCE:
Cole, G, A (2000), Personal
Management, Letts Educational Aldine Palace, London
Kepner
K, Wysocki A, Mckenzie N and Ballentine A (2003) and The Role of Monetary and
Non-Monetary Incentives In The Workplace As Influence By Career Stage,
Institute of Food and Agriculture Sciences, University of Florida, Gainesville
Nwachukwu, C.C (1998) Management Theory and Practice, Africana –Feb
Publishing Ltd, Uyo
Pitfield, R.R (1980) Business
Organization,
Macdonald and Evans, London
Ojo, J.G, (1991), The Nigerian
Bankers, Journal of the Chartered Institute of Bankers Of Nigeria, F&A
Publishers, Lagos ISS No 189 –6679
Ubeku, A.K
(1975), Personal
Management in Nigeria,
Ethiope Publishing, Benin City
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