EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION
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EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIAN ORGANISATION
CHAPITRE ONE
INTRODUCTION
Sometimes one wonders why certain people perform better than others on the job, or why people work together. Man in his natural state is somewhat lethargic and tends to gravitate towards his comfort zone unless confronted by external forces or situations.
This force or situation pushes him out of his comfort zone in order to avoid unpleasant consequences or reap a positive return, as the case may be. This force of circumstance has now become the impetus for him to go towards his predetermined goal (motivating factor).
Given the preceding example, management researchers have struggled to define motivation.
According to the Webster Encyclopaedic Dictionary of the English Language (1975), motivation refers to the perception, need, or fear that leads an individual to act. Wole Adewunmi (1992) defined motivation as “the inner stimulus that induces one to behave the way he does” and it has to do with that inner state that energises, activates, or moves and therefore directs conduct towards goals.
Productivity is beckoned on the design of its incentive variable to balance among various management levels in all organisations.
There are various incentive variables that might encourage people to work at their best, and when these variables are missing, their productivity suffers. This could take the form of a well-packaged remuneration. Others might not be motivated by a well-designed incentive plan. Money, according to the group, is not everything.”
According to Starke (1976:35), “people work for broadly defined rewards,” and these rewards can be divided into two categories: intrinsic and extrinsic incentives.
Extrinsic rewards include the figure pay proportion, compliments, and so on, and are frequently independent of the activity accomplished and controlled by others.
Intrinsic reward, on the other hand, includes the sense of work completion and is administered by the person performing the task. However, employee performance in an organisation is dependent on these rewards, as well as other incentives that may or may not command job satisfaction.
1.0 BACKGROUND OF THE STUDY
Incentives are objectives or goals that can satisfy what the employee perceives to be a need, drive, or desire. Accelerated reward for increased production and environmental conditions is included. Infrastructure, transport, and canteen services, for example, do not directly offer money to workers but are required for their effective performance.
In other words, incentives include not just payment for usage but also job enrichment, free flow of information, and good relationships between junior and senior officers.
Above all, the recognition given to individuals by society for their contributions motivates and energises them to work harder to attain not only organisational but also social goals.
It is important to note that monetary benefits, which may drive younger people who are beginning or the lower class of people in society, may not necessarily be motivating factors for some middle and upper class people in society. People in society, even those in comparable positions, must be provided incentives that reflect their particular performance and aspirations.
For a sense of equality to prevail, higher performance must be rewarded more than poorer performance. Given that money is likely to be a motivational variable, compensation has been chosen as a technique of providing incentives to employees to produce or sell more or to enhance the quality of their performance.
In most businesses and other organisations, money is utilised to keep an organisation sufficiently staffed rather than as a motivation. Any bonus programme for manual workers should be linked to criteria that are meaningful to the employees and can be regularly measured.
The motivation to reach a certain goal, such as increasing volume, should not be used to lower other standards of achievement, such as quality. As a result, it is critical to understand what motivates workers the most, as everyone has distinct wants and goals. People labour for a variety of reasons, based on what they desire or what they want to achieve.
It is the responsibility of any organization’s management to identify its employees’ requirements and then insist that efforts be made to meet those needs.
Incentives that might be viewed as payment or reward for work or service performed are a typical component in Nigerian organisations, and communications limited is no exception. As a result, the goal of this could drive personnel to attain higher success.
Management scholars and other labour employers will find this work quite beneficial because it will enable them to be vast of the worth of incentives to worker performance, if effectively used, which will in turn bring improved efficiency of workers if adequately employed.
Furthermore, students and others who intend to conduct a similar study in another institution will find this work useful because the ideas presented in this work will serve as a guide in the right way.
Nigeria Telecommunication Limited has distinguished itself as a leading telecommunication system and a vital contributor to Nigeria’s economic success and development for over a century.
1.1 CONTINUATION OF THE BACKGROUND
Nigerian federal policy established Telecommunication Limited in 1985. During the Shagari administration, the Nitel belt concept was mooted, and a bill was passed in the National Assembly to provide it the necessary legal legitimacy. It is the law that established Nitel. Its communication status was a probationary decision under Babangida’s administration, which transformed Nitel into a profit-oriented organisation.
In 1985, it was in off short of font P&T and NET, which stands for Nigeria Internal Telegramms. P&T collaborated with NET to respond to Nitel. It has its own destructions with generic transfers to work with at the time.
Nitel achieves commercial status in 1983/89, at which point they restructure their organisation and become profit-oriented. The MANAGING DIRECTOR AND CHIEF is at the apex of Nitel’s organisational structure or cooperative Headquarter.
EXECUTIVE.
The managing director reports to the three EDs, who are the executive directors of the department. The DMC, LD, and ED handle domestic and long-distance communications.
We have order general managers as deputies under it, and the general managers have order deputies surrounding them before the boss. Apart from the cooperative headquarters, Nitel has zonal administration, each of which is led by a GENERAL MANAGEMENT, for example, the south, east, and north west zones, the Lagos zone, and the south west zone. It also operates in three tears.
Each zone has a deputy general manager as head of department, administration, and finance, all of which report to the zone’s general manager.
Territorial management is overseen by TMSs, or territorial managers, under the third-tier administration system. Territorial management are chief executive of the several states. SMA, SMM, SMSS, SM planning and works, and territorial accountants, for example, each have a distinct job and purpose. Nitel’s works are obtained at the territorial zone. Nitel continues to practise what is known as the fouth tear.
Fourth tear:- Each exchange is administered by functions of territory managers by extension line, intellection take place, and their consumer.
Nitel’s operations rely on this structural setup to provide service to their various consumers.
The same federal government is currently aiming for Nitel to be privatised, most likely by the year 2006.
STATEMENT OF THE PROBLEM
It is essentially impractical to expect people to continue to find joy in participating in the business of organisations if little attention is exhibited in their individual needs and difficulties.
It is agreed that, despite whatever gains must have been made in ensuring adequate compensation among workers worldwide, existing compensation programmes have failed to attract, retain, and motivate employees because the individual worker is not taken into account and does not participate in the planning and design of such incentives prior to their execution or implementation.
However, Nigeria’s economic and social progress is heavily reliant on the ability of the public sector to attract and retain qualified labour. As a result, the concept of comprehensive compensation programmes has economic, social, behavioural, and legal implications. To what extent does the Nigeria telecommunications limited incentive system recognise this in terms of worker performance in the company?
1.3 THE OBJECTIVE OF THE STUDY
The preceding issues spark the following sub-issues.
(a) What types of incentive packages do Nigerian Telecommunications Limited offer?
(b) Do the company’s employees genuinely gain from these schemes in terms of job satisfaction?
(c) Is Nigeria telecommunications limited in achieving the primary goals for administering these schemes?
(d) To investigate the various forms of incentive schemes implemented by Nigerian Telecommunications Limited.
(e) Conduct a thorough examination of Nigeria’s limited incentive schemes and productivity trends over time.
(f) To investigate the extent to which these incentive schemes result in job satisfaction and worker motivation.
(g) To assess the effectiveness, sufficiency, and relevance of various incentive schemes to overall worker or group worker performance.
(h) Assess the extent to which the organisation is meeting its objectives for administering these incentive schemes.
1.4 SCOPE OF THE STUDY
The purpose of this research is to look into the impact of a monetary incentive plan on employee performance in an organisation. Nigerian Telecommunications Limited Enugu was utilised as a model organisation. A sector of Nigerian telecommunications was studied due to resource restrictions.
The study examined incentives and their management in Nigerian telecommunications across all departments and employee ranks. The study will also assess the program’s suitability in order to determine how they influence people to function efficiently, resulting in a rise in organisational productivity. Finally, the study will look at the effect of the incentive on current employees as well as those who have left the organisation.
1.5 RESEARCH QUESTIONS
To what extent are these incentive systems successful and suitably relevant to overall performance?
To what extent has the Nitel implemented these various forms of incentive schemes?
To what extent have current pay plans failed to recruit, retain, and encourage employees?
To what extent does the incentive scheme lead to job satisfaction and worker motivation?
To what extent do the company’s employees benefit from the schemes, and who offers job satisfaction?
To what extent is Nigerian telecoms limited in terms of achieving the primary goals for administering these schemes?
1.6 RESEARCH HYPOTHESIS
To guide data collecting, hypotheses have been developed.
The first hypothesis is as follows:
(a) The restricted incentives plan in Nigerian telecommunications has little effect on employee work performance.
(a) The Nigerian telecommunications limited incentives scheme affects employee work performance.
Hypothesis number two:
(a) The incentive scheme is not planned by all cadres of workers at Nigerian Telecommunication Limited.
(a) All worker cadres in Nigerian Telecommunications Limited are involved in the incentive scheme’s design.
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