CHAPTER
ONE
INTRODUCTION
1.1 Background to the
study
An incentive is a form
of financial encouragement recognizing a particular contribution made by the
work force, in other words, it is a sum of money paid in addition to the basic
rate which the organization pays to ensure that its most important production
aspects are being optimized . For instance, a capital intensive company might
have an incentive linked to machine utilization.
Performance incentives
are payment made to an employee or group of employee based on amount of output.
The use of performance incentive policies is premised on the belief that output
can be measured and performance by workers, it used dated back to the era of
the scientific management movement championed by Fedrick Winslow Taylor who
argued passionately for the use of incentive wage system as a way of getting
more output from the workers. It was also aimed at combating “solde”oringbo on doggling”
which was a restriction of output by workers on the job as at that time. Taylor
believe that workers could always exert greater efforts if they were to be paid a financial incentive based upon the number of
units of work they were able to produce. He then developed the differential
rate system which gives a worker a lesser piece rate e.g #1.0 per piece if he
produced less than the standard amount of output required by so doing;
individual workers are motivated to produce greater output.
In every organization,
large or small private or public enterprises, human resources (employees) are
always the pillar of the success of the organization. The human elements have
their individual drives, desires, needs, wishes and similar forces which they
intend to satisfy when they are coming into an organization. The satisfaction
or non-satisfaction of these needs by the organization has an impact on the
behaviour or performance of the employee and eventually on productivity.
The usefulness of good
incentive policies which leads to motivation of the employee cannot be over
emphasized. Every organization depends on motivation among other factors for
the attainment of their objectives. The monetary incentives like bonuses,
wages, salary increment, e t c to put more effort in their
work which help to improve the level of productivity in both private and public
industries.
Many a time, the most
concern of employer is to make the employee to contribute to the attainment of
organizational objectives, but they should know that if the employees are not
happy with the management of the organization, there will be a very low rate of
production in the organization, that is why Hekina and Jones (1967) page 120
visualize that employees should be seen and valued as assets for the allocation
of organizational resources. This project will be based on the impact of management incentive
policies on Dangote cement
factory obajana, kogi state as a case study.
1.2 Statement of the problem
Most incentive plans
are designed to assist in increasing efficiency in the organization. However,
obtaining employees acceptance of an incentive system may be difficult at the
onset. There may be fear that the plan will lead to a speed up layoffs or reduce
wage can cause workers resistance.
Most
employers do different things for instance ranking of people, contest,
performance appraisals, production, teams and departments, shifts, commission
pay etc. all this are believed to enhance performance. Some researchers think
it does the opposite instead of trying to use the external motivation
(something outside the work itself such as promised rewards or incentives) to
get higher levels of performance from people. Employers will be better served
by studying the organization as a system. Employers demand results. Without
good result organization will find it difficult to survive. Managing incentive
policies is a requirement for higher productivity.
Consequent upon a
systematic survey of the constraint inimical to the success of management
incentives policies’
To what extent has
incentive policy affected workers productivity?
What is the purpose and
importance of these incentives?
What is the effect of
the absence of these incentives?
What is the way out?
Good incentive
policies, when put in place, motivate workers and make them happy and happy
workers are often productive. Good management incentive could be financial or
non financial in nature. Financial incentive happens to be the most important
of the incentive schemes and it includes wages and salaries, profit sharing
scheme, etc.
This researcher shall,
by this study therefore beam search light on various aspect of management
incentive policies vis-à-vis productivity, with a view to achieve the following
objectives among others.
To examine the nature
and feature of various incentive schemes
To examine the
usefulness and purpose of incentive in an organization
To examine problems
associated with individual incentive plans
To make relevant
recommendations based on findings.
1.4 Research question
To what extent does
money motivate employee?
How does management
incentive policy impaction workers productivity?
How can workers
implement or improve incentive system in their work place?
1.5 Significance of the study
The significance of
this study cannot be over emphasized. It is particularly useful to the
organization in question, Dangote cement factory obajana and to other
organizations. It will serve as a guide to show the different incentive scheme
and packages organizations can adopt as well the need to inculcate the
principle of responsibility, motivation and fairness in every organization.
The research work will
also be useful for academic purpose in the sense that it is an improvement on
past academic work of other researchers on the subject of management incentive
policies vis-à-vis employee productivity. It also serves as a reference point
for subsequent researchers.
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complete materials (Chapter One to Five), visit www.researchshelf.com
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