This research was undertaken to study the Effect of Monetary Incentive on the
Performances of Workers in an Organization. A case study of IMT Enugu.
In all organization, productivity is beckoned on the design of its incentive
visible to balance among various management levels. There are several incentive
variables that could motivate people to work to their optimist level and when
these variables are not there their productivity will be greatly effected.
This may come in the form of a well packaged remuneration. Still others may not
necessarily be motivated with a well packaged incentive scheme.
In general data needs to achieve the objectives of the study, descriptive
survey research design was adopted questionnaire was used as the major
instrument for primary data collection. To broaden the researchers depth
of knowledge in the study areas the researcher embarked upon review of related
literature, with data draw from secondary sources. Data generated in the study
was presented on frequently tables and analyzed using simple percentage while
the hypothesis were tested with two (2) tests.
TABLE OF CONTENTS
Background of the Study
Statement of the Study
Purpose of the Study
Scope of the Study
Significance of the Study
Limitations of the Study
Definition of Terms
REVIEW OF RELATED LITERATURE
The Meaning of Incentive and Productivity
The Importance of Incentive in the Productivity of Workers
Directly Related Lit. On (Incentive Productivity)
The Concept of Incentive Scheme
Type of Incentive Scheme
IMT Incentive Scheme
The Effect of Incentive on Workers Productivity in IMT
Summary of the Review of the Related Literature
RESEARCH DESIGN AND
Scope of the Study
Population of the Study
Sample Size and Sampling Process
Instrument of Data Collection
Method of Data Collection
Method of Data Analysis
DATA PRESENTATION AND ANALYSIS
Data Presentation and Analysis
Pr3sentation and Analysis of Data
Testing of Hypothesis
Summary of Results
DISCUSSION RECOMMENDATION AND
Discussion Recommendation and Conclusion
Discussion of Result/Finding
Implication of Research Findings
Sometimes one wonders why some people
perform more than others on the job or why people work hard. Man in his
natural form is lazy and always tries to gratitude toward his comfort zone
unless some kind of forces or situations confront 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 or situation now becomes the motive for his working
towards his set target (motivating factor).
Wole Adewunmi (1992) defined motivation as “the inner stimulus that induces one
to behave the way he does. It has to do with inner states that energizes
activities of moves and therefore directs behaviour toward goals,
In an organization, productivity is beckoned on the design of its incentives
variable to balance among various management levels.
There are several incentive variable 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
packed incentive scheme. The group believe that money is not
everything. People work for either intrinsic or extrinsic rewards.
Extrinsic rewards include the figure pay proportion, controlled by other
people. Intrinsic reward on the other hand include the feelings of
accomplishment of task and is administered by the individual doing the task.
1.1 BACKGROUND OF THE STUDY
Incentives are objectives or goals which are capable of satisfying the
employee’s need, drive or desire. It includes payment for improved
productivity as well as environment conditions. Example, infrastructures,
transportation facilities and canteen services etc. Though they do not
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.
It is worthy of note 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 or
upper class in the society.
People in the society, in various positions even though at a similar level,
must be given incentives that reflect their individual performances and
The Institute of Management and Technology (IMT) Enugu started operation on 1st July 1973 as a result of Edict No.
10 1973 titled Institute of Management and Technology Edict 1973. This
Edict united two schools to form institution under the chairmanship of Dr. Ukwu
I. Ukwu and its first rector Professor M. O. Chijoke. The united schools
were the former college of technology which operated engineering and laboratory
technology to National Diploma (ND).
Today (IMT) has grown and developed with more than 20 departments having Dr.
Onyisi as its current Recto-in-charge of both campuses;- Campus II and III
1.2 STATEMENT OF THE PROBLEM
It is fundamentally unrealistic for
managers to assume that employees would continue to find satisfaction in
co-operating in organization’s affairs if their needs and wants are not
recognized. The success of failure of this depends on the management
approach to effective motivation of the employees.
The researcher identifies the below problems as major factors militating
against the management success which there is need to know.
What has been the management incentive scheme
What is the effect of monetary incentive to workers as regards to increased
How effective is the participation of workers in planning and designing IMT
How has the existing composition programmes failed to attract the motives
workers in IMT.
In view of this, the researcher is determined to highlight the problem areas
and how to improve on the organization’s incentive programmes to enhance
productivity in the organization.
1.3 PURPOSE OF THE STUDY
The purpose (objective) of carrying out
this research work is;
To determine the type of incentive schemes that are available in IMT.
To find out if the employees (workers) are actually reaping the benefits which
the laboured for.
To ascertain if IMT is attaining the main objectives for administering these
To examine the different types of incentives scheme put in place by the
To do an indepth analysis institute's incentives
schemes and productivity trend over the years.
To determine the extent to which these incentive
schemes has led to the overall performance and
To identify and test the effectiveness adequacy and
these incentive schemes to the overall
performance of individual workers or group of workers.
To find out the extent the institute is achieving its objectives
for administering these incentive schemes.
1.4 SCOPE OF THE STUDY
The area of coverage of this research work is basically the Institute of
Management and Technology (IMT) Enugu, Enugu State. The project is
primarily concerned with the effect of monetary incentive scheme for the
performance of workers in an organization, IMT in particular. All the
departments were covered to examine incentives and its administration. The
study will also evaluate the appropriateness of the programme with a view to
ascertaining how they influence workers to perform efficiently which results to
an increase in the organizational productivity.
An empirical research can only be achieved
when it includes hypothetically tested statement. This will be a
tentative statement that will proffer the solution to the problem study.
The researcher will check the validity of the following assertions.
Ho1: IMT incentive scheme has a
impact on the employees
IMT incentive scheme has no impact on the employees
Ho2: All cadres of workers in IMT
are involved in planning the
All cadres of workers in IMT are not involved in
planning the incentive scheme.
Ho3: The management of IMT embarks
on proper incentive
The management of IMT does not embark on proper
1.6 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
scheme and other motivational variables that would optimize the productivity
and performance of their operations.
It would help the IMT management to 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.
The management would find it useful for future planning.
1.8 DEFINITION OF TERMS
Persons who answer questions especially in
the survey or questionnaire.
A thing that limits or restricts.
Plan of an arrangement for doing or
amount of money given to compensate
A thing that encourages or excites
somebody to activity.
CONSEQUENCES: A result or an
effect of something else.
TERMS AND CONDITIONS APPLY
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