Incentives

HAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Since the beginning of time, leaders have risen to take charge of societies and
make decisions. These decisions often meant the difference between being successful
and being a failure, having shelter or being homeless, and sometimes the difference
between life and death. As society progressed, there have been great technological
advances which have brought a high level of convenience to our lives. Despite
having advancements, the basic needs for humans still remain the same. A question
often asked by business managers is, “How do we motivate our employees to ensure
optimal performance?” Effectively motivating employees to achieve a desired outcome
is one of the most important functions of a business manager. There are pointers to
show that business organizations are facing challenges retaining employees due to
limited opportunities for advancement and the current competitive labour market in
Nigeria. It does not appear things will get any better in the future. The loss of
employees means loss of skills, knowledge, and experiences and can create a
significant economic impact and cost to corporations as well as impacting the needs
of customers/clients. Business managers who can motivate employees assist the
organization by improving employee retention and reinforcing positive behaviours
and consequently, their enduring ability to effectively motivate workers to achieve
the highest result determines the level of success of a business. Motivation is the
intention of achieving an objective or aim, an ability to change behaviour, that
inner directing drive, leading to goal-directed behaviour towards the attaining
goal. Motivational rewards/incentives can be either non-monetary or monetary. In
order for motivation to be present, the manager must both value promotion and see
the relationship between his efforts and promotion. Thus, for an individual reward
or outcome the argument is that a combination of its value and the appropriate
effort-reward probability is necessary. However, an individual's motivation is
influenced by more than one outcome. Thus, in order to determine an individual's
motivation it is necessary to combine data concerned with a number of different
outcomes. One of the major problems confronting management today is that of
motivating to perform assigned task to meet or surpasses predetermined standard.
Motivation is that energizing forces that induces or compels and maintains
behaviour. It is not easy to motivate an individual, for the success of any
motivational effort depends on the extent of which the motivator meets the needs of
the individual employees for whom it is intended. Motivation is an internal
psychological process whose presence or absence is intended from observed
performance. In Nigeria today, lack of proper managerial knowledge, economic
depression and high rate of unemployment have made most workers subjected to
themselves, to deplorable working conditions, which of course are the catalyst of
low performance. The management of most organization tends to believe that workers
are satisfied with their job but unfortunately they are not. Job satisfaction
presupposes going to work and getting believed of work done. In Nigeria, most at
times, the pay given to a worker is not commensurable to the type of work done.
This is the reason why sometimes efficient and experience worker leave an
organization for another organization that pay more or stay in the organization and
perform below expectation. Job dissatisfaction is quite prevalent in most
organization. low performance which comes as a result of job dissatisfaction is
always the basis for conflict between organization and workers. Managers always
blame the workers for not putting in their best, and on side of the workers they
blame management for not providing or creating an enabling environment as in
motivation. Whoever may be guilty, the bottom line is satisfying the objective of
the organization, which of course is to make enough profit to keep the organization
moving.
To meet the above object there need for both the management and employee to reach a
consensus, the management meeting the desires of the workers and in turn the
employees put in their best in terms of performance. The workers need security of
all types; physical, psychological and economic are important for effective and
efficient performance.
STATEMENT OF THE GENERAL PROBLEM
Overtime, there has been a steady increase in most Nigerian industries, the crisis
is as a result of a poor working condition, stringent rules, poor and delayed
payment of workers’ wages and salaries.
Again the crises also results from the failure of the top management to appreciate
to human element as the most crucial factor and the determinant of attainment of
goals and objectives this result into frustration which manifest itself differently
by individual or workers. It is view of this that this research intends to look at
the effect of motivation on employee performance in an organization taking Nigeria
bottling company plc as a case study.
AIMS AND OBJECTIVES OF THE STUDY
The major aim of the study is to examine the impact of motivational incentives on
employee performance. Other specific objectives of the study include;
To examine the importance of employee performance to organizational performance.
To assess the current level of motivational incentives at the Nigerian bottling
company.
To examine the relationship between motivational incentives and employee
performance.
To examine the impact of motivational incentives on organizational performance.
To examine the relationship between employee performance and organizational
performance.
To recommend other ways of enhancing employee performance.
RESEARCH QUESTIONS
What is the importance of employee performance to organizational performance?
What is the current level of motivational incentives at the Nigerian bottling
company?
What is the relationship between motivational incentives and employee performance?
What is the impact of motivational incentives on organizational performance?
What is the relationship between employee performance and organizational
performance?
Are there other ways of enhancing employee performance?
RESEARCH HYPOTHESES
H01: There is no significant relationship between motivational incentives and
employee performance.
H02: There is a significant relationship between employee performance and
organizational performance.
SIGNIFICANCE OF THE STUDY
The study could be useful to Nigerian bottling company and indeed other
organizations in Nigeria and beyond in improving their level of productivity and
employee’s performance in future. It will also aid management in making decision on
how employees could be motivated, not only with money but other incentives. The
study would also benefit students, researchers and scholars who are interested in
developing further studies on the subject matter.
SCOPE AND LIMITATION OF THE STUDY
The study is restricted to the impact of motivational incentives on employee
performance using the Nigeria bottling company in Lagos state as a case study.

Incentives

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HAPTER ONE

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