ABSTRACT
This study is a research
work that seeks to examine the impact of non-financial incentives as
motivational strategies for achieving organizational objectives. A branch
office of Wema Bank Plc, the oldest indigenous commercial bank in Nigeria was
choose as the case study.
No matter how carefully
management may forecast, formulate policies and plan elaborate organizational
structures success of its planning is ultimately in the hands of the employees
at all levels. Management should therefore not only plan, it must also lead and
inspire those whom it relies on to implement it’s policies and make the
organization work. Towards this end, this research study places emphasis on
motivating employees through the use of non-financial incentives and the
possible effect on he attainment of the objectives of the organization.
CHAPTER ONE
1.0 INTRODUCTION
1.1 GENERAL
DESCRIPTION OF THE STUDY
It is worthwhile to take
a closer took at the impact of non-financial incentives as motivational
strategies in achieving organizational objectives.
People act only when
they have a reasonable expectation that their actions will lead to a desired
goal. Because of this, employers put in more in motivating employees and one of
the ways through which this (motivating) can be done, is through the means of non-financial
incentives so that workers are treated in right manner in order to accomplish
the organization’s objectives. Although organizations are being faced with what
resources to give out as these non-financial incentives, because of the poor
state of the economy.
The dynamic state of the
economy had led the federal government to take some measures to stop the
downward economic trend which has adversely affected many organizations. For
instance, a good number of companies have cut down their incentives and some
have even stopped giving any to their employees. This has prompted me to write
on Non-Financial Incentives as Motivational Strategies in
achieving organizational objectives.
Non-financial incentives
can be defined as the benefits given to workers by their employers other than
wages and salaries, either in kind or services. However, there is an important
group of motivating forces that can be considered under the broad heading of
“Non-Financial Incentives”. The management of a company cannot afford to
overlook these incentives or forces which intangible though they may be, have
much to do with the spirit of an organization and its power of accomplishment.
According to the result
of the study made by the Committee headed by General Johnson of Johnson in
Maryland, U.S.A. (1960). “Top Management Handbook”, showed that the following
are important requisite of a successful organization.
a. Every
member of the organization must be proud of his work.
b. Everyone
must be proud of the reputation of his company.
c. All
must have a sense of belonging.
But the attitude of both
employees and the general public towards this programme has changed
considerably. The various legislation’s that are being passed by the government
had led many to believe that the private firm is morally responsible for the
lives of its employees, it is no longer what the employers need to introduce,
but a requirement imposed by government, competitors or the labour unions.
Examples of such legislation made by the government are:
a. The
Productivity, Prices and Income Act of 1977.
b. The
Labour Decree of 1974.
c. Employees
Housing Scheme (Special Provisions) Act of 1979, which regulates the terms and
conditions of employment and collective bargaining and agreement.
As stated earlier that
non-financial incentives is motivational strategies, one would want to ask the
meaning of motivation.
Motivation can be
defined as the psychological process that gives behaviour and direction. By
appealing to this process, managers attempt to get individuals to willingly
perform an activity or willingly pursue organizational objectives. When this
activity is conditioned by the ability to satisfy an individual’s wants, it can
also be referred to as the ways, urges, aspirations, drives and needs of human
beings that direct, control or explain their behaviours. It can also be looked
at as the conditions, which influences the arousal, direction and maintenance
of behaviours relevant in work settings. Every organization exist to accomplish
particular objective and individuals to satisfy some needs.
However, since all
organizations cannot achieve all its objectives and individuals cannot fulfill
all their needs, the manager has the responsibility of directing individuals so
that they can satisfy their needs, the manager has the responsibility of
directing individuals so that they can satisfy their needs as much as possibly
while they still strive to accomplish organizational objectives. Managers must
therefore study how to motivate every employee or group of employees in a way
that fits their particular status or attitude. Some of the factors that can
satisfy an individual or group of workers include:
a. Job
enrichment
b. Job
rotation
c. Job
retention
d. Conducive
work environment
e. Positive
criticisms
f. Participation
in all levels of the decision process
g. Recognition
for contribution made in the organization
h. Extrinsic
rewards.
These will help in
achieving the overall objectives of the organization which may be in form of
a. Reduction
in absenteeism rate.
b. Improved
morale and loyalty
c. Reduction
of union influence and
d. Ability
of the employees to grow.
Therefore, any Nigerian
organization that plans to achieve better job performance that will enhance the
attainment of the organization’s objectives, through its workforce, should
endeavour to motivate the workforce not only by improving the social factors
i.e. supervision, interpersonal relationship, company policies and
administration and working conditions described by Herzberg as “Hygiene
Factors”, but also introduce what Herzberg called true motivators i.e. work
itself, advancement, recognition for achievement and responsibility.
1.2 STATEMENT
OF PROBLEM
Human resources
management is a vital ingredient for achieving organization’s objectives. One
of the strategies for proper management of human resources is through the use
of non-financial incentives to motivate workers. Meanwhile, only few of the
empirical studies on motivation has been able to identify their impact on
organization’s objectives.
So, the main issue to be
addressed by this study is the impact or value of non-financial incentives as a
means of motivating workers in achieving company’s objectives.
1.3 PURPOSE
OF STUDY
The vital importance of
non-financial incentives as a means of satisfying employee’s needs which could
inspire them to work hard cannot be over emphasized, but at the same time the
fact that motivation is inherent in human beings remains.
The purpose of this
study is to find out the motivational impact of non-financial incentives on
employees’ productivity and efficiency in achieving organizational objectives.
This study is designed to
a. Determine
the extent to which non-financial incentives can motivate workers.
b. Analyze
the impact of non-financial incentives on workers’ productivity in achieving
organizational objectives.
c. Make
recommendation(s) for further improvement in employees motivation where necessary.
d. Identify
possible operational problems associated with workers motivation and recommend
possible solution to such problems.
e. And
for the partial fulfillment of the requirement for the award of the Bachelor
Degree.
1.4 SIGNIFICANCE
OF THE STUDY
In a contribution made
by STRAUS and SAYLES: The Human problems of management, states that with the
possible exception of profit-salary plans, there is no little evidence that
non-financial incentives provide any direct motivation for higher
productivity”. That is, non-financial incentives only help to meet employees’
needs for security.
The frustration caused
by insecurity may lead to lower productivity or output, and fear of
unemployment may result in workers working slowly to make the available work
last longer.
Therefore, in a
situation like this, managers are expected to achieve the organizational
objectives by influencing the human element of the company through
non-financial incentives.
However, the
significance of this study will be to identify the various non-financial
incentives and their impact on workers’ motivation as well as on the
organization’s objective. Like any other valuable resource, people can be
employed appropriately and to full capacity, or they can be wasteful depleted.
Therefore, the study
shall focus on the process of getting individuals to contribute effectively and
efficiently to organizational objectives through non-financial objectives.
1.5 SCOPE AND
LIMITATION OF THE STUDY
The basic premise on
which this study is based is that organizational objectives can be achieved by
motivating employees through non-financial incentives. Therefore, this study
will concentrate on motivating job performance and identifying the various
non-financial incentives and their impact on worker motivation as well as on
the organization’s objectives. And for this purpose, Wema Bank Plc will be used
as the case study and the bank’s branch office situated at Jibowu Lagos shall
be used precisely for this purpose.
Since only a branch
office of Wema Bank Plc will be used as the case study, and generalization is
going to be based on the findings from the case study, the possibility of
making errors may be present. And also, there may be bias in filling out the
questionnaire by the respondents which can affect the outcome of this study.
Finally, the difficulty encountered in obtaining relevant information in the
face of time constraint and the financial requirement of the study, remain the
major limiting factors for the research study.
1.6 RESEARCH
QUESTION
Lawal, A. A. (1994), in
his book noted that “a critical look at the compensation package of most
Nigerian Public Limited Companies will reveal that they officer competitive
packages compared to those of government establishments. Apart from the
competitive wages and salaries, public limited companies provide services such
as subsidized or free catering services, free medical services, staff housing
scheme. Subsidized of free transportation service, fund, bonus and pension
schemes to encourage productivity”.
However, the industrial
actions embarked upon by the workers of these companies reveals that there is
no enough non-financial incentives offered by these companies to their
employees. Therefore, it will be necessary to find out what are the
non-financial incentives that motivate employees towards achieving
organizational objectives. Perhaps it will be useful to put the research
question thus:
i. What
impact does non-financial incentives have on workers’ motivation?
ii. Can
non-financial incentives increase employees’ productivity?
iii. Does
non-financial incentives have any impact on organizational objectives?
1.7 STATEMENT
OF HYPOTHESIS THAT PROVIDE ANSWERS TO THE RESEARCH QUESTIONS
The following hypothesis
will be tested:
Ho:
That non-financial incentives do not motivate workers.
H1:
That non-financial incentives motivate workers.
Ho: That there is no
positive relationship between non-financial incentives and workers’
productivity.
H1: That there is
positive relationship between non-financial incentives and workers’ productivity.
Ho: That non-financial
incentives is not positively correlated to achieving organizational objectives.
H1: That non-financial
incentives is positively correlated to achieving organizational objectives.
1.8
HISTORICAL BACKGROUND OF WEMA BANK PLC
Wema Bank Plc, formerly
known as Agbonmagbe Bank; was incorporated as a private limited liability
company in May 1945 and commenced commercial banking business in the same year.
It is the oldest indigenous commercial bank in Nigeria.
Chief M. A. Okupe and
Mr. A. A. Alade promoted the Bank as Agbonmagbe Bank; thereafter it was taken
over by the government of the then Western Region (made of the present, Oyo,
Osun, Ondo, Ekiti and Ogun States) in 1968 through O’dua Investment Company
Limited.
The Bank was initially
run as a parastatal of government with a focus on agricultural finance. In
April 1987, the Bank was converted to a public limited liability company and it
was quoted on the Nigerian Stock Exchange in the same year. On the 5th of
February 2001, the Bank received its universal banking license from the Central
Bank of Nigeria.
Wema Bank Plc is an
associate company of O’dua Investment Company Limited, which has a 31% equity
stake in the Bank.
The Bank’s head office is
located at Wema Towers, 54, Marina, Lagos. The Bank has 93 branches in Lagos,
Ogun, Oyo, Osun, Ekiti, Kwara, Kano, Anambra, Rivers, Abia, Delta and Akwa Ibom
State.
The Bank equally has
branches in the Federal Capital Territory, Abuka. The following are
subsidiaries of the Bank:
- Wema
Securities and Finance Plc
- Wema
Registrar Limited and
- Wema
Trustees Limited.
Department | Business Administration and Management |
Project ID Code | BAM0397 |
Chapters | 5 Chapters |
No of Pages | 95 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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