THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION (A CASE STUDY OF NIGERIAN TELECOMMUNICATIONS LIMITED ENUGU)

ABSTRACT

In all organisation, productivity is beckoned on the design of its incentive variables to balance various management levels.  There are several incentive variable 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 in the form of a will packed remuneration.  Still others may not necessarily be motivated with a well packaged incentive scheme.  The group believe that money is not every thing.  First Bank of Nigeria Plc is not an exceptional.

In generating data needed to achieve the objectives of the study, descriptive survey research design was adopted.  Questionnaire was not as the major instrument for primary data collection.  To broaden the researcher’s depth of knowledge in the study area the research embarked upon review of related literatures with data drawn from secondary sources.  Data generated in the study was present on frequency tables and analysed using simple percentage while the hypothesis were tested with two test.

It was realized at the end of the research work that most organization cannot get the best out of their organisation goals and objectives because of absent of monetary incentives, workers are not allowed to join in deciding affairs that concern them etc. arising from the findings, the study recommended monetary incentive apart from other types of incentives used by the organizations, effective administration of incentive schemes, and participatory management.

Finally, the study concluded that monetary incentives make the workers were satisfied with the treatment give to them, the organization will achieve its goals, targets and objective in here short time.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1       General background to the study

1.2              Statement of the problem

1.3              Purpose of the study

1.4              Scope of the study

1.5              Research hypothesis

1.6              Significance of the study

1.7              Limitations of the study

1.8              Definition of terms

CHAPTER TWO

LITERATURE RE VIEW

2.0              Incentive and productivity

2.1              Directly related productivity

2.2              Concept of inceptive system

2.3              Types of incentive scheme

2.4              Nigerian telecommunication limited

2.5              Summary of review of related literature

References

CHAPTER THREE

3.0       Research design

3.1              Area of the study

3.2              Population of the study

3.3              Sample and sampling process

3.4              Instrument for data collection

3.5              Validation of the instrument

3.6              Reliability of the instrument

3.7              Method of data collection

3.8              Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0              Data presentation and analysis

4.1       Presentation and analysis of data

4.2              Testing of hypothesis

4.3              Summary of the results.

CHAPTER FIVE

DISCUSSIONS, RECOMMENDATIONS AND CONCLUSIONS.

5.0              Discussion, re commendation and conclusions

5.1       Discussion of results / findings

5.2              Conclusions

5.3              Implications of research findings

5.4              Recommendations

Bibliography

Appendix  i

Appendix  ii

CHAPTER ONE

INTRODUCTION

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

Given the above illustration, management scholars have tired to define what motivation is all about.

The Webster Encyclopedic Dictionary of the English Language (1975) said that motivation relates to the sense, need or fear etc.  that prompts an individual to act.  Also Wole Adewunmi (1992) defined motivation as “the inner stimulus that induces one to behave the way he does” it has to do with that inner states that energizes, activates or moves and therefore directs behaviour towards goals

In all organization, productivity is beckoned on the design of its incentive variable to balance among various management levels. 

There are several incentive variables that could motivate people to work to their optimal level and when these variables are not there, their productivity will be greatly affected.  This may come in the form of a well packaged remuneration.  Still others may not necessarily be motivated with well packaged incentive scheme.  The group believe that money is not everything”

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

Extrinsic rewards includes the figure pay proportion, compliments etc and are often independent of the task performed and are control by other people.

Intrinsic reward on the other hand include the feeling of accomplishment of  task and is administered by the individual doing the task.  However, workers performance in an organisation depends on these rewards among other incentives which may in one way or the other command job satisfaction.

1.0        BACKGROUND OF THE STUDY

Incentives are objectives or goals which are capable of satisfying what the employee views 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. though they do no directly provide income to workers, but are necessary for their effective performance. In other words, incentives do not only refer to usages payment but other things like job enrichment, free flow of information good relationship among junior and senior officers. Above all, the recognition accorded to individuals by society to their contribution also goes a long way to induce and energize them to work harder to achieve not only the organizational goals but also societal goals.

It is worthy of not that such incentives like, monetary rewards which may motivate the younger people who are beginners or the lower class of people in the society may not necessarily be motivating factor for some middle class and upper class of people in the society. People in the society, people in various positions even though at a similar level, must be given incentives that reflect their individual performance and expectations.

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

In most business and other organizations, 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 measured consistently. The incentive to achieve one particular objective for example, increased volume, should not act as an incentive to worsen other standards of achievement like quality. It is therefore, important to know what induces worker most, as many people have different needs and aspirations. People work for various reason, depending on what they want or what they are looking forward to achieving. Here, it is the duty of the management of any organization to find out the needs of its employees and then demand efforts toward attaining them.

Incentives which may be seen as payment or reward for work or service rendered have been a common feature in Nigeria establishments to which telecommunication limited is not an exception. It is therefore, the objective of this that could motivate workers to greater achievement.

Management scholars and other employers of labour will also find this work every useful as it would enable them to be vast of the value of incentives 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.

Nigeria telecommunication limited, for over a century, has distinguished itself as a leading telecommunication system and a major contributor to the economic advancement and development of Nigeria.

1.1       CONTINUATION OF BACKGROUND

telecommunication limited was founded in the year 1985 by federal policy of Nigeria. The idea of Nitel belt was moulted during Shagari administration and a bill was pass in the National Assembly to give it its desired legal backing. It is the law establishing Nitel. Its communication status was a probation of decree during Babangida’s Administration that saw Nitel into profit oriented body.

In the year 1985, it was in off short of font P&T and NET that is Nigeria Internal Telegramms. P&T joined with NET to answer Nitel. As at that time it has its own destructions with general transfers to work with.

In 1983/89 Nitel grows into commercial status from that time the re-shape their organigram and they become profit oriented. At the Apex of the organigram or cooperate Headquarter of Nitel, is the MANAGING DIRECTOR AND CHIEF

EXECUTIVE.

The three ED that is the executive director, each managers in the department are accountable to the managing director. The DMC, the LD and the ED domestic communications, the long distance.

Under it we have order general managers like deputy, the general managers have order deputies around them before the leader. Apart from cooperate headquarter Nitel have zonal administration each is headed by the GENERAL MANAGERS example south, east zone and north west zone, Lagos zone and south west zone. And it operate in three tears.

Each have deputy general manager as head of department, administration, finance all are accountable to the general manager of the zone.

In the third tears administration structure the exist territorial management heed by the TMS ie. Territorial managers. Territorial management are chief executive of the various states. Example, SMA, SMM, SMSS, SM planning and works and territorial accountants, each have specific role and function. The get the works of Nitel at territorial zone. Nitel still practice what one may call fouth tear.

Fourth tear:- The exchange area administration each exchange is being headed by functions of territorial managers by extension line, intellection take place and their customer.

It is upon this structural arrangement that Nitel operation render service to their numerous customers.

The same federal government is at this point in time planning for Nitel to go into privatization process, probably by the year 2006.

1.2              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 in 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 designing 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 man power. Therefore, the concept of total compensation programme has economic, social, behavioral and legal basis consequence. To what extent is this recognized by the Nigeria telecommunication limited incentive scheme on the performance of workers in the company?

1.3              PURPOSE OF THE STUDY

(a)                What type of incentive schemes are available in Nigerian telecommunications limited?

(b)               Are employees of the company actually reaping benefit which provides job satisfaction from these scheme?

(c)                Is Nigeria telecommunication limited attaining the main objectives for administering these scheme?

(d)               To examine the different types of incentives scheme put in place by the Nigerian telecommunications limited.

(e)                To do an in depth analysis of the Nigeria telecommunications limited incentives schemes and productivity trend over the years.

(f)                To examine the extent to which these incentives schemes lead to attainment of job satisfaction and motivation of workers.

(g)               To test the effectiveness, adequacy and relevance of these incentives schemes to the overall performance of individual worker or group of workers.

(h)               To examine the extent the organization is achieving its objectives for administering these incentive schemes.

1.4              SCOPE OF THE STUDY

This study is aimed at investigating the effect of monetary incentive scheme for the performance of workers in an organization. Nigerian telecommunications limited Enugu as a model organization was used. Because of resource constraints a branch of Nigerian telecommunication limited was studies. All the department and cadres of employees were covered in the study, to examine incentives and its administration in Nigerian telecommunication 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 on the existing workers as well as those that have left the organization.

1.5              RESEARCH QUESTIONS

1.                  To what extent is the effectiveness, adequately relevance of these incentives schemes to the overall performance?

2.                  To what extent are these different types of incentives scheme put in place by the Nitel?

3.                  To what extent do the existing compensation programmes failed to attract, hold and motivate employees?

4.                  To what extent is the incentive scheme lead to attainment of job satisfaction and motivation of the workers?

5.                  To what extent are the employees of the company actually reaping benefits who provides job satisfaction from the schemes?

6.                  To what extent is Nigerian telecommunications limited, attaining the main objectives for administratering these schemes?

1.6              RESEARCH HYPOTHESIS

Hypothesis have been formulated to guide the collection of data.

Hypothesis one:

(a)                Nigerian telecommunication limited incentives scheme has no impact on the employee’s job performance

(b)               Nigerian telecommunication limited incentives scheme has an impact on the employee’s job performance

Hypothesis two:

(a)                All cadres of workers in Nigerian telecommunication limited are not involved in planning the incentive scheme.

(b)               All cadres of worker in Nigerian telecommunications limited are involved in planning the incentive scheme.

1.7              SIGNIFICANCE OF THE STUDY

It is hoped that this 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 of the firm in area of its job performance and productivity, that management find useful for future planning.