Monetary and Non Monetary Incentives

www.readymadeproject.
com
www.programmer2programmer.net
Project Title
An exploratory study of employee attitude towards monetary
and non-monetary incentives in the public enterprises
Submitted By
Mr. XXXXX XXXXXXX
MBA in HR
1
www.readymadeproject.com
XXXXX niversity
Table of Contents
ABSTRACT ......................................................................................................................... 4
INTRODCTION
............................................................................................................................................... !
BAC"#ROND O$ T%& STD'
.................................................................................................................................................. !
STAT&(&NT O$ T%& PROB)&(
.................................................................................................................................................. *
OB+&CTI,&S O$ T%& STD' .........................................................................................*
R&S&ARC% -&STIONS
.................................................................................................................................................. .
$OR()AT&D %'POT%&S&S
.................................................................................................................................................. .
SI#NI$ICANC& O$ T& STD' .........................................................................................
SCOP&/)I(ITATION O$ T%& STD'
.................................................................................................................................................. 0
D&$INITION O$ T&R(S ...................................................................................................0
R&,I&1 O$ R&)&,ANT )IT&RATR&
............................................................................................................................................. 23
INTRODCTION
................................................................................................................................................ 23

&$$&CTS O$ OR#ANI4ATIONA) INC&NTI,&S .....................................................24
,ARIAB)& PA'5 INC&NTI,&S $OR P&R$OR(ANC&
................................................................................................................................................ 2*
T'P&S O$ ,ARIAB)& PA' .......................................................................................... 20
SCC&SS&S AND $AI)R& O$ ,ARIAB)& PA' P)ANS .......................................63
$ACTORS A$$&CTIN# SCC&SS$) ,ARIAB)& PA' P)ANS
................................................................................................................................................ 63
INDI,IDA) INC&NTI,&S.
................................................................................................................................................ 6!
!
T%&OR&TICA) $RA(&1OR" ................................................................................... 73
R&S&ARC% (&T%ODO)O#'
............................................................................................................................................. 78
INTRODCTION
................................................................................................................................................ 78
R&S&ARC% D&SI#N ........................................................................................................78
POP)ATION O$ STD' ...............................................................................................43
SA(P)& AND SA(P)IN# T&C%NI-&S ..................................................................43
INSTR(&NTS .................................................................................................................43
PROC&DR& $OR DATA CO))&CTION
................................................................................................................................................ 46
DATA ANA)'SIS ..............................................................................................................46
DATA ANA)'SIS AND PR&S&NTATION .................................................................. 47
INTRODCTION ...............................................................................................................47
R&SPOND&NTS B)O9DATA
................................................................................................................................................ 44
S((AR' O$ $INDIN#S: CONC)SION AND
............................................................................................................................................. !0
S((AR' O$ $INDIN#S
................................................................................................................................................ !8
CONC)SION ....................................................................................................................*3
R&CO((&NDATION ......................................................................................................*2
R&$&R&NC&S
............................................................................................................................................. *6
"
ABSTRACT
#here has been controversy as to whether Human Resources can be developed in
public enterprises. $t is a%ainst this bac&%round that an evaluation of Human
Resources development in public enterprises was conducted. #he 'uestionnaire
method was used to obtain data for the study and random samplin% procedure was
used in the selection of respondents from the or%ani(ation under study. #he sample
percenta%e method of data analysis was used in analy(in% the data obtained. #he
study found trainin%) motivation* effective evaluation of employee+s performance
can be used to develop Human Resource in public enterprises and various trainin%
methods were used to trainin% employee in this or%ani(ation. #he study there fore
concludes that for effective utili(ation of Human Resources in public ,nterprises)
there is need for trainin% and development policy formulation and implementation.
-
INTRODCTION
BAC"#ROND O$ T%& STD'
.rdinarily an enablin% environment is re'uired for employee /either as a term or
individual0 to improve his1her performances in order to accomplish or%ani(ation
%oals and ob2ectives. $t is based on this bac&%round that mana%er suppose to &now
the attitude of his1her employees1subordinates in the interest of the or%ani(ation. #he
employees could be influences throu%h several incentives* either monetary or non-
monetary. #hese two forms of incentives for improve employee+s performance.
However) there is the need more than ever before to re-discover the wea&ness and
the stren%ths of incentives used in motivatin% employee+s attitudes as a basis for
future improvement and also to unravel the effectiveness of the use of incentives in
motivatin% employees. $t will also reveal the problems) frustrations) anxieties that
employees pass throu%h in their wor& environment where certain incentives are de-
emphasi(ed. $t will e'ually assist mana%ement to en%a%e in staff welfare
development that will aid improved productivity.
3roductivity is concerned with the total value or volume of output in wor& situation
while production refers to the volume) value or 'uantity of %oods and services
produced in a %iven period by employees productivity shows the efficiency of
production. ,mployees attitudes and performance have an immense bearin% on
productivity. 4ob performance of employees is determined by the ability of
individual employee to perform well on his 2ob as well as the level of motivation
offered by the wor& environment and it is of fundamental importance in
productivity. #he study examined the attitude of employees towards monetary and
non-monetary incentives in or%ani(ation with the mindset that mana%ement will
appreciate the needs of the use of incentives in motivatin% employee+s attitude.
5
STAT&(&NT O$ T%& PROB)&(
$n the past) employers of 6abour complained that employees performance were
efficient when they are new but with time) their efficiency and productivity
decreases) in turn the employees have attributed the decreases in efficiency and
productivity to the fact that employers failed to provide ade'uate incentives and
motivation that commensurate with their 2ob and performance.
#herefore) the problems of this study can be stated as follows.
#he inability of the mana%ement to effectively use non-monetary incentives
to improve employees performance.
,mployees+ preferences between monetary and non-monetary incentives
how /the0 mana%ers applied this si%nificantly.
#he composition of factors considered by employees to be non- monetary
incentives.
#he impact of monetary incentives on employees attitude.
OB+&CTI,&S O$ T%& STD'
#he ob2ectives of this study are as follows7
#o ascertain the extent of employees attitudes towards monetary and non-
monetary incentives in the course of their wor&.
#he impact of a%e) %ender and status on employees preference for monetary
and non-monetary incentives.
$dentification of incentives employees li&e best in their wor& place
How mana%ement can use incentives to encoura%e employees to hei%hten
and increase productivity.
8
R&S&ARC% -&STIONS
#hese follows are the research 'uestions for this study7
9hat are wor&ers attitude towards the use of monetary incentives:
9hat are wor&ers attitude towards the use of non-monetary incentives:
9hat are the incentives considered by wor&ers to be non-monetary
incentives:
9hat are the wor&ers preferences between monetary and non- monetary
incentives:
$OR()AT&D %'POT%&S&S
#hese follows primaries statements were formulated as an hypotheses and
subse'uently tested in order to ascertain their reliability.
Ho7 #here is no perfect relationship between employees1wor&ers incentives
motivation and productivity.
Hi7 #here is perfect relationship between employees1wor&ers incentives
motivation and productivity.
Ho7 .ther incentives tend to have little motivation value if monetary
incentives are perceived to be ade'uate.
Hi7 .ther incentives tend not to have little motivation value if monetary
incentives are perceived to be ade'uate.
SI#NI$ICANC& O$ T& STD'
#here is the need now than never to rediscover the wea&nesses and the stren%ths of
incentives used in motivatin% employee attitude to serve as a basis for further
improvement. #he study will throu%h more li%ht into the effectiveness of the use of
;
incentives in motivatin% employees meet in their wor& environment) especially
where incentives are emphasi(ed. $t will also help or%ani(ations to &now the li&ely
incentives to put in place in motivatin% employees.
$n addition) it will assist mana%ement to en%a%e in staff welfare development in
order to improve the output of productivity of employees. #his study will also serve
as a useful tool for those in the mana%ement sciences discipline who would li&e to
carry out further research in this area.
SCOP&/)I(ITATION O$ T%& STD'
#his study focused on the employee+s attitude towards monetary and non-monetary
incentives usin% selected unioni(ed or%ani(ations in 6a%os metropolis as a study.
However) several factors necessitated a%ainst proper investi%ation of this study*
such as time factor) financial constraint and unavailable data. #he researcher was
faced with the time limited time for this study and in combinations of other
en%a%ements) li&e social en%a%ement) wor& time) academic etc* financial constraint
also set in and caused effective implementation and investi%ation* meanwhile) the
or%ani(ations under study refused to reali(e some important data that are necessary
for this study.
D&$INITION O$ T&R(S
&m;loyees Attitude7 #his refers to a persistent tendency to feel and behave
every individual employee exhibited towards a particular issue.
(onetary Incenti<es5 $t refers to remuneration in money form employee
received for performin% his1her official duties.
Non9(onetary Incenti<es7 #hese are incentives that employees %ained in
wor& place) in form of promotion) trainin% etc. #his not in money term.
<
+ob Performance7 #hese are the available 2obs in or%ani(ation at a
particular point in term) in which employees are employed for.
(oti<ation5 #he idea of creatin% an enablin% environment for employee to
increase his1her performances in wor& place. #he motivation may be in
monetary or non-monetary form.
=
R&,I&1 O$ R&)&,ANT )IT&RATR&
INTRODCTION
Accordin% to be&u /1=;50 >the &ey to understandin% of human behavior is
&nowled%e of human needs+. 3eople wor& in order to satisfy their needs and these
needs can be met throu%h monetary incentives. Monetary incentives are repayment
in cash and in money form for a %iven wor& done by employees in the or%ani(ation.
,mployees would %o any extent to increase their cash income 2ust as they will do
anythin% to prevent their source of income from bein% eliminated. #he fact that
employees fear to lose their 2obs) cash has been an extremely effective motivator
simply because money is indispensable for survival in an economy. Monetary
incentives in modem societies are the most transferable means of satisfyin% basic
needs. ?atisfaction of physiolo%ical) security and social needs can hardly be
achieved with money. .ther incentives tend to have little motivational value if
monetary incentives are perceived to be inade'uate. Monetary incentives ta&e
variety of forms and include wa%es) salary) allowances) bonus) e.t.c. Accordin% to
@ole /!AA!0) a salary system can best be considered as a mechanism by which an
or%ani(ation plans how to attract) retain) reward and motivate its salaried employees
to provide a fair reward to those performin% specified roles) to provide an incentive
for employees and to &eep pace with inflation. 3itfield /1=<A0 explained that bonus
provide %reater rewards for output above a certain a%reed level. #hey may be based
on individual output or on the output of a %roup. Bonus adds flexibility to a
compensation plan i.e. they are paid monthly under the terms of an annual rate of
pay. $t includes employee+s benefit which were once associated with salaried staff)
but which are now bein% applied to all %rades of employees. ?alary is a fixed
amount per year payable to the employee monthly and it i%nores both time ta&en and
'uality produced. Bruc&er /1===0 stated that there is a basic conflict between wa%e
/daily pay0 as livin% and wa%e as cost. As >livin%+) wa%e needs to be predictable)
1A
continuous and ade'uate to the expenditures of a family) its aspirations) and its
position in the society and community. 9a%e as a cost needs to be appropriate to the
productivity of a %iven employment or industry.
@ole /!AAA0 posited that benefits are forms of compensation beyond wa%es for time
wor&ed) includin% various protection) man+s services) pay for time not wor&ed) and
income supplements. ?uch benefits include housin% allowance) transport allowance.
$n spite of the positive role monetary incentives have played) wor&ers tend to have
different attitude towards money incentives. #he most common of the diverse
reaction to wa%es and salaries by wor&ers is that once it exceeds minimum levels) it
is re%arded as a measure of fairness. 3itfield /1=<A0 posited non-monetary incentives
as frin%e benefits made availa8ie to staff and are re%arded as an addition to wa%es
and salaries. $t consists of direct and indirect benefits. #he direct benefit may
include profit-sharin%) sic& pay) pension schemes) etc. the indirect benefits may
include welfare amenities) social and recreational facilities) etc. Cellermen /1=;80
insisted that pay) if only it could be properly pac&a%ed would somehow brin% about
the desired approach to wor&. Adam /1===0 ar%ued that employee+s perception of
his pay in relation to other employees of similar status could affect the satisfaction)
which he %ets from the 2ob. Drom his wor&) when there is a discrepancy between
what he %ets and his efforts in relation to what employees of similar status %ets) the
employee become dissatisfied with the 2ob. .2o /1==10 stated that mana%ers and
supervisors need to apply situational appropriate motivational factors in the context
of their peculiar or%ani(ational environment. Eepner et al /!AA10 explained that the
purpose of monetary incentives is to reward employees for excellent performance
throu%h money. He noted that monetary incentives include profit sharin%) pro2ect
bonuses) stoc& options) warrants and scheduled bonuses /e.%. @hristmas and
performance-lin&ed and additional paid vacation0. #raditionally) these have helped
maintained a positive motivational environment for employees. #he purpose of non-
monetary incentives is to reward associates for excellent 2ob performance throu%h
opportunities. Fon- monetary incentives include flexible wor& hours) trainin%)
pleasant wor& environment and sabbaticals. ,mployees encounter problems)
11
frustrations) and anxieties in their wor& environment where certain incentives are
deemphasi(ed. Accordin% to l&pefar /!AA"0 in order to step up the incentives of
employees) trade unions serve as a means of improvin% the terms and conditions for
employees) improve rates of remunerations) raise status of employees) protect
members a%ainst unfair practices and also strive for security of employment. #rade
union Act 1==A provides that employee has a ri%ht to receive all benefits of
employment which are expressed in documents of employment) includin% the letter
of offer) and the condition of service and in collective a%reement. ?.; of the Act
provides the minimum content of the contract of service and shows the place and
nature of employment) terms of wor&) duration and special condition of the contract.
#he Act also %ives employees the ri%ht to health and safety at wor&) ri%ht to resort to
court or tribunal on matters pertainin% to his employment) ri%ht to belon% to union
may be optional in the new proposed trade union Act before the Fational Assembly.
3arties usually fix wa%es of employee. However) where no rate is fixed the rate is
deemed to be what is current in similar trade. @ollective bar%ainin% serves as a
means for trade unions to ne%otiate the terms and conditions of employment. 9hen
ne%otiation brea&down) parties may resort to mediation) conciliation or arbitration.
Covernment sometimes intervenes and the intervention ta&es the form of statutory
enactments. #he ma2or statutory enactments %overnin% contracts of employment in
Fi%eria are7 6abour Act 1=< /as amended0 1==A) Dactories Act /as amended0 1==A)
9or&men+s @ompensation Act 1==A) #rade nion Act /as amended0 1==A. Eohn
/1=="0 cited in Eepner et al stated a balance of monetary and non-monetary
incentives should be used to satisfy the diverse needs and interests of employees. He
ar%ued that monetary incentives encoura%e compliance rather than ris& ta&in%
because most rewards are based only on performance and discoura%es employees
from bein% creative in their wor& place. Felson /1===0 also cited in Eepner et at
/!AA10 posited that research su%%ests that desired monetary incentives differ for
employee based on carrier sta%e and %eneration surveys by American Association of
Retired 3ersons /AAR30 have shown that most employees will wor& past retirement
a%e if offered flexible schedules) part-time hours and temporary employment. Aside
1!
from these types of motivational strate%ies) an or%ani(ation+s reward system is its
most basic tool for mana%in% employee motivation. An or%ani(ational reward
system is the formal and informal mechanisms by which employee performance is
defined) evaluated) and rewarded.
1"

&$$&CTS O$ OR#ANI4ATIONA) INC&NTI,&S
.r%ani(ational incentives can affect attitudes) behaviors) and motivation. #hus) it is
important for mana%ers to understand and appreciate clearly their importance
/Criffin !AA!0
&ffect of Incenti<es on Attitudes
Althou%h employee attitudes such as satisfaction are not a ma2or determinant of 2ob
performance) they are nonetheless important. #hey contribute to /or discoura%e0
absenteeism and affect turnover) and they help establish the culture of the
or%ani(ation. Accordin% to ,dward /1===0 four ma2or %eneral 6(ations about
employee attitudes and incentives. Dirst) employee satisfaction is influenced by how
much is received and how much the individual thin&s should be received. ?econd)
employee satisfaction is affected by comparisons with what happens to others.
#hird) employees often misperceive the incentives of others. 9hen an employee
believes that someone else is ma&in% more money than that person really ma&es) the
potential for dissatisfaction increases. Dourth) overall 2ob satisfaction is affected by
how satisfied employees are with both the extrinsic and the intrinsic rewards they
derive from their 2obs. Brawin% from the content theories and expectancy theory)
this conclusion su%%ests that several needs may cause behavior and that behavior
may be channeled toward various %oal.
&ffect of Incenti<es on Be=a<iour
An or%ani(ation+s primary purpose in %ivin% incentives is to influence employee
behavior. ,xtrinsic incentives affect employee satisfaction) which) in turn) plays a
ma2or role in determinin% whether an employee reward system. #he formal and
informal mechanisms by which employee performance is defined) evaluated) and
rewarded will remain on the 2ob or see& a new 2ob. Reward systems also influence
1-
patterns of attendance and absenteeism* if rewards are based on actual performance)
employees tend to wor& harder to earn those rewards.
15
&ffect of Incenti<es on (oti<ation
$ncentives systems are clearly related to the expectancy theory of motivation. #he
effort-to-performance expectancy is stron%ly influenced by the performance
appraisal that is often part of the reward system. An employee is li&ely to expend
extra effort if he or she &nows that performance will be measured) evaluated) and
rewarded. #he performance-to-outcome expectancy is affected by the extent to
which the employee believes that performance will be followed by rewards. Dinally)
as expectancy theory predicts) each reward or potential reward has a somewhat
different value for each individual. .ne person may want a promotion more than
benefits* someone else may want 2ust the opposite.
,ARIAB)& PA'5 INC&NTI,&S $OR P&R$OR(ANC&
Robert and 4ac&son /!AA-0 states that variable pay is compensation lin&ed to
individual) team) and or%ani(ational performance. #raditionally also &nown as
incentives) variable pay plans attempt to provide tan%ible rewards to employees for
performance beyond normal expectations. #he philosophical foundation of variable
pay rests on several basic assumptions7
?ome 2obs contribute more to or%ani(ational success than others.
?ome people perform better than others.
,mployees who perform better should receive more compensation.
A portion of some employees+ total compensation should be contin%ent on
performance.
@ontrast the assumptions with a pay system based on seniority or len%th of
service7
#ime spent each day is the primary measure of contribution.
6en%th of service with the or%ani(ation is the primary differentiatin% factor
amon% people.
18
@ontributions to the or%ani(ation are reco%ni(ed throu%h different amounts
of base pay.
Civin% rewards to some people but not others is divisive and hampers
employees wor&in% to%ether.
1;
T'P&S O$ ,ARIAB)& PA'
$ndividual incentives are %iven to reward the effort and performance of individuals.
?ome of the most common means of providin% individuals variable pay includes
piece-rate systems) sales commissions) and bonuses. .thers include special
reco%nition rewards such as trips or merchandise. #wo widely used individual
incentives focus on employee safety and attendance. However) individual incentives
can present drawbac&s. .ne of the potential difficulties with individual incentives is
that an employee may focus on what is best individually and may bloc& or inhibit
performance of other individuals with whom the employee is competin%.
@ompetition intensifies if only the top performer or winner receives incentives)
which is why team or %roup incentives have been developed.
Accordin% to @ole /!AAA0) when an or%ani(ation rewards an entire wor& %roup or
team for its performance) cooperation amon% the members usually increases.
However) competition amon% different teams for rewards can lead to decline in
overall performance under certain circumstances. #he most common team or %roup
incentives are %ain sharin% plans) where employee teams that meet certain %oals
share in the %ains measured a%ainst performance tar%ets. .ften) %ainsharin%
pro%rams focus on 'uality improvement) cost reduction) and other measurable
results.
.r%ani(ational incentives reward people based on the performance results of the
entire or%ani(ation. #his approach assumes that all employees wor&in% to%ether can
%enerate %reater or%ani(ational results that lead to better financial performance.
#hese pro%rams often share some of the financial %ains to the firm with employees
throu%h payments calculated as a percenta%e of each employee+s base pay. Also)
or%ani(ational incentives may be %iven as a lump-sum amount to all employees) or
1<
different amounts may be %iven to different levels of employees throu%hout the
or%ani(ation.
#he most prevalent forms of or%ani(ation-wide incentives are profit- sharin% plans
and employee stoc& plans. Dor senior mana%ers and executives) variable pay plans
often are established to provide stoc& options and other forms of deferred
compensation that minimi(e the tax liabilities of the recipients. /Benneth 1==A) @ole
!AAA) 6uthans !AA"0
1=
SCC&SS&S AND $AI)R& O$ ,ARIAB)& PA' P)ANS
,ven thou%h variable pay has %rown in popularity) some attempts to implement it
have succeeded and others have not. .ne study su%%ests that about ;-G of
companies have a variable pay plan of some sort. .f those) most feel these plans
have been successful in ali%nin% pay with performance for executives /;=G0)
mana%ers /;"G0) and exempt1 professionals /8AG0. However) only -<G felt variable
pay was effective for non-exempt1administrative personnel /Alexander and Dred
/!AA10.

Most employees prefer that performance rewards increase their base pay) rather than
be %iven as a one-time) lump-sum payment. Durther) employees prefer individual
rewards to %roup1team or or%ani(ational incentives. $ncentives do wor&) but they are
not a panacea. #he enthusiasm that many employers have for variable pay is not
shared universally by wor&ers. #he success of variable pay plans depends upon the
circumstances.
$ACTORS A$$&CTIN# SCC&SS$) ,ARIAB)& PA' P)ANS
Accordin% to Robert and 4ac&son /!AA-0 most employers adopt variable pay
incentives in order to7 /10 lin& individual performance to business %oals) and /!0
reward superior performance. .ther %oals mi%ht include improvin% productivity or
increasin% employee retention. Hariable pay plans can be considered successful if
they meet the %oals the or%ani(ation had for them when they were initiated. A
number of different elements that can affect the success of a variable pay plan.
#hese factors have been cate%ori(ed into three areas for discussion7
Boes the plan fit the or%ani(ation:
!A
Are the behaviors encoura%ed by the plan the ones desired:
$s the plan bein% administered properly:
!1
Does t=e Plan fit t=e Or>ani?ation@
$n the case of variable pay) one si(e does not fit all. A plan that has wor&ed well for
one company will not necessarily wor& well for another. .bviously) the plan must
be lin&ed to the ob2ectives of the or%ani(ation.
#he success of any variable pay pro%ram relies on its consistency with the culture of
the or%ani(ation. Dor example) if an or%ani(ation is autocratic and adheres to
traditional rules and procedures) an incentive system that rewards flexibility and
teamwor& is li&ely to
fail. #he incentive plan is bein% IplantedJ in the wron% %rowin% environment.
Does t=e Plan &ncoura>e t=e Desired Be=a<iors@
Hariable pay systems should be tied as much as possible to desired performance.
,mployees must see a direct relationship between their efforts and their financial
rewards. $ndeed) hi%her-performin% companies %ive out far more incentive pay to
their top performers than do lower-performin% companies. Criffin /!AAA0
Because people tend to produce what is measured and rewarded) or%ani(ations must
ma&e sure that what is bein% rewarded ties to meetin% or%ani(ational ob2ectives. se
of multiple measures helps assure that various performance dimensions are not
omitted. Dor example) assume a hotel reservation center sets incentives for its
employees to increase productivity by lowerin% their time spent per call. #hat
reduction may occur) but customer service and the number of reservations made
mi%ht drop as employees rush callers to reduce tal& time. #herefore) the center
should consider tal& time) reservations boo&ed) and customer satisfaction survey
results.
$ndeed) lin&in% pay to performance may not always be appropriate. Dor instance) if
the output cannot be ob2ectively measured) mana%ement may not be able to
correctly reward the hi%her performers with more pay. Mana%ers may not even be
!!
able to accurately identify the hi%her performers. nder those circumstances)
individual variable pay is inappropriate. /Martins and Bartol /1===0
!"
Is t=e Plan Administered Pro;erly@
Accordin% to Robert and 4ac&son /!AA-0) a variable pay plan may be complex or
simple) but it will not be successful if employees do not understand what they have
to do to be rewarded. #he more complicated a plan is) the more difficult it will be to
communicate it meanin%fully to employees. ,xperts %enerally recommend that a
variable pay plan include several performance criteria. However) havin% two or
three areas to focus on should not complicate the calculations necessary for
employees to determine their own incentive amounts. Mana%ers also need to be able
to explain clearly what future performance tar%ets need to be met. ?uccessful
variable pay plans clearly identify how much is provided to employees separate
from their base pay amounts. #hat separation ma&es a distinct connection between
performance and pay. $t also reinforces the notion that part of the employees+ pay
must be IreearnedJ in the next performance period.
An incentive system should consistently reflect current technolo%ical and
or%ani(ational conditions. .fferin% an incentive for sales representatives to sell
older-%eneration e'uipment in order to clear it out of stoc& mi%ht be appropriate
until that merchandise is %one) but no incentive may be needed to sell hi%h- demand
items. $ncentive systems should be reviewed continually to determine whether they
are operatin% as desi%ned. Dollow-up) throu%h an attitude survey or other means)
will determine if the incentive system is actually encoura%in% employees to perform
better. $f it is not) then mana%ers should consider chan%in% the system. /3itfield
1=<A) Fwach&wu
1==80.
!-
INDI,IDA) INC&NTI,&S.
Accordin% to 9illiams /!AA10 that conditions necessary for the use of individual
incentive plans are as follows7
$dentification of individual performance7 #he performance of each individual
must be measured and identified because each employee has 2ob
responsibilities and tas&s that can be separated from those of other
employees.
$ndependent wor&7 $ndividual contributions result from independent wor&
and effort %iven by individual employers.
$ndividual competitiveness desired7 Because individuals %enerally pursue the
individual incentives for themselves) competition amon% employees often
occurs. #herefore) independent competition in which some individuals IwinJ
and others do not must be desired.
$ndividualism stressed in or%ani(ational culture7 #he culture of the
or%ani(ation must be one that emphasi(es individual %rowth) achievements)
and rewards. $f an or%ani(ation emphasi(es teamwor& and cooperation) then
individual incentives will be counterproductive.
Piece9Rate Systems
#he most basic individual incentive system is the piece-rate system) whether of the
strai%ht or differential type. nder the strai%ht piece- rate system) wa%es are
determined by multiplyin% the number of units produced /such as %arments sewn or
customers contacted0 by the piece rate for one unit. #he rate per piece does not
chan%e re%ardless of the number of pieces produced. Because the cost is the same
for each unit) the wa%e for each employee is easy to fi%ure) and labor costs can be
accurately predicted. /9illiam !AA10 A differential piece-rate system pays
employees one piece-rate wa%e for units produced up to a standard output and a
hi%her piece- rate wa%e for units produced over the standard. Dor example) assume
!5
that the standard 'uota for a wor&er is set at "AA units per day and the standard rate
is 1- cents per unit. Dor all units over the standard) however) the employee receives
!A cents per unit. But the wor&er producin% -AA units in one day will %et K8! in
wa%es /"AA x 1- cents0 L /1AA x !A cents0. #here are many possible combinations of
strai%ht and differential piece-rate systems that can be used dependin% on situational
factors. /Robert and 4ac&son !AA-0
Bespite their incentive value) piece-rate systems are difficult to use because
standards for many types of 2obs are difficult and costly to determine. $n some
instances) the cost of determinin% and maintainin% the standards may be %reater than
the benefits derived. 4obs in which individuals have limited control over output or in
which hi%h standards of 'uality are necessary also may be unsuited to piecewor&.
Bonuses
Alexander and Dred /!AA10 emphases that individual employees may receive
additional compensation payments in the form of a bonus) which is a one-time
payment that does not become part of the employee+s base pay. Cenerally) bonuses
are less costly to the employer than other pay increases because they do not become
part of employees+ base wa%es) upon which future percenta%e increases are fi%ured.
Crowin% in popularity) individual bonuses often are used at the executive levels in
or%ani(ations) but bonus usa%e also has spread to 2obs at all levels in some firms.
Bonuses also can be used to reward employees for contributin% new ideas)
developin% s&ills) or obtainin% professional certifications. 9hen the s&ills or
certification re'uirements are ac'uired by an employee) a pay increase or a one-time
bonus may follow. Dor example) a financial services firm provides the e'uivalent of
two wee&+s pay to employees who master 2ob-relevant computer s&ills.
A bonus can reco%ni(e performance by an employee) a team) or the or%ani(ation as
a whole. 9hen performance results are %ood) bonuses %o up. 9hen performance
!8
results are not met) bonuses %o down. Most employers base part of the employee+s
bonus on individual performance and part on the company if appropriate.
!;
S;ecial Incenti<e Pro>rams
Fumerous special incentive pro%rams that provide awards to individuals have been
used) ran%in% from one-time contests for meetin% performance tar%ets to rewards for
performance over time. Dor instance) safe-drivin% awards are %iven to truc& drivers
with no accidents or violations on their records durin% a year. Althou%h special
pro%rams also can be developed for %roups and for entire or%ani(ations) these
pro%rams often focus on rewardin% only hi%h per formin% individuals. ,dward
/1===0.
Awards @ash merchandise) %ift certificates) and travel are the most fre'uently used
incentive rewards. @ash is still hi%hly valued by many employees because they have
discretion on how to spend it.
Another type of pro%ram reco%ni(es individual employees for their performance or
service. Dor instance) many or%ani(ations in service industries such as hotels)
restaurants) and retailers have established Iemployee of the monthJ and Iemployee
of the yearJ awards. $n the hotel industry more than half of the hotels surveyed use
favorable %uest comment cards as the basis to provide reco%nition awards to des&
cler&s) house&eepers) and other hourly employees.
#he desi%n of most %roup incentives is based on a Iself-fundin%J principle) which
means that the money to be used as incentive rewards is obtained throu%h
improvement of or%ani(ational results. A %ood example is %ain sharin%) which can
be %roup or plant wide in its incentive scope. /Bruc&er 1===0.
#ain s=arin>
Cain sharin% is the sharin% with employees of %reater-than- expected in %ains in
profits) and1or Cain sharin% attempts to increase discretionary efforts)J that is) the
difference between the maximum amount of effort a person can exert and the
minimum amount of effort necessary to &eep from bein% fired. 9or&ers in many
!<
or%ani(ations currently are not paid for discretionary efforts) but are paid to meet the
minimum acceptable level of effort re'uired. However) when wor&ers demonstrate
discretionary efforts) the or%ani(ation can afford to pay them more than the %oin%
rate) because the extra efforts produce financial %ains over and above the returns of
minimal efforts. #o be%in a %ain sharin% pro%ram) mana%ement must identify the
ways in which increased productivity) 'uality) and financial performance %ain occur
and decide that some of the %ains should be shared with employees. /@ole !AAA0
#he rewards can be distributed in several ways7
A flat amount for all employees
?ame percenta%e of base salary for all employees
3ercenta%e of the %ains by cate%ory of employees
A percenta%e based on individual performance a%ainst measures. @uttan /!AA"0
stated that the first two methods %enerally are preferred because they promote and
reward teamwor& and cooperation more than the other two methods. 9here
performance measures are used) only those measures that employees actually can
affect should be considered. .ften) measures such as labor costs) overtime hours)
and 'uality benchmar&s are used. Both or%ani(ational measures and departmental
measures may be used) with the wei%hts for %ain sharin% split between the two
cate%ories. Faturally) an individual+s performance must be satisfactory in order for
that individual to receive the %ain sharin% payments. #wo older approaches similar
to %ain sharin% exist. .ne) called $mpro share) sets %roup piece rate standards and
pays wee&ly bonuses when the standard is exceeded. #he otherMthe ?canlon planM
uses employee committees and passes on savin%s to the
employees.
!=
T%&OR&TICA) $RA(&1OR"
Criffin /!AA!0 opines that motivation is the set of forces that cause people to behave
in certain ways. .n any %iven day) an employee may choose to wor& as hard as
possible at a 2ob) to wor& 2ust hard enou%h to avoid a reprimand) or to do as little as
possible. #he %oal for the mana%er is to maximi(e the li&elihood of the first
behaviour and to minimi(e the li&elihood of the last. #his %oal becomes all the more
important when mana%er understand how critical motivation is in the wor&place.
$ndividual performance is %enerally determined by three thin%s7 motivation /the
desire to do the 2ob0) ability /the capability to do the 2ob0) and the wor& environment
/the resources needed to do the 2ob0. $f an employee lac&s ability) the mana%er can
provide trainin% or replace) the wor&er. $f there is a resource problem) the mana%er
can correct it. But if motivation is the problem) the tas& for the mana%er is more
challen%in%. $ndividual behavior is a complex phenomenon) and the mana%er may
be hard-pressed to fi%ure out the precise nature of the problem and ho to solve it.
#hus) motivation is important because of its si%nificance as a determinant of
performance and because of its intan%ible character /4effrey
1==<0.
T=e Need %ierarc=y A;;roac=
#he need hierarchy approach has been advanced by many theorists. Feed
hierarchies assume that people have different needs that can be arran%ed in a
hierarchy of importance. #he two best &nown are Maslow+s hierarchy of needs and
the ,RC theory.
Maslow+s Hierarchy of Feeds7 Abraham Maslow /1=5-0 a human relationist) ar%ued
that people are motivated to satisfy five need levels. Maslow+s hierarchy of needs
shown in fi%ure !.1. At the bottom of the hierarchy are the physiolo%ical needs
thin%s li&e food) sex) and air that represent basic issues of survival and biolo%ical
function. $n or%ani(ations) thee needs are %enerally satisfied by ade'uate wa%es and
"A
the wor& environment itself) which provides restrooms) ade'uate li%htin%)
comfortable temperatures) and ventilation.
Fext are the security needs for a secure physical and emotional environment.
,xamples include the desire for housin% and clothin% and the need to be free from
worry about money and 2ob security. #hese needs can be satisfied in the wor&place
by continuity /no layoffs0) a %rievance system /to protect a%ainst arbitrary
supervisory actions0) and an ade'uate insurance and retirement benefits pac&a%e /for
security a%ainst illness and for the provision of income in later life0. ,ven today)
however) depressed industries and economic decline can put people out of wor& and
restore the primacy of security needs.
Belon%in%ness needs relate to social processes. #hey include the need for love and
affection and the need to be accepted by one+s peers. #hese needs are satisfied for
most people by family and community relationships outside wor& and friendships on
the 2ob. A mana%er can help satisfy these needs by allowin% social interaction and
by ma&in% employees feel li&e part of a team or wor& %roup.
,steem needs actually comprise two different sets of needs7 the need for a positive-
ima%e and self-respect and the needs for reco%nition and respect from others. A
mana%er can help address these needs by providin% a variety of extrinsic symbols
accomplishment such as 2ob titles) comfortable offices) and similar rewards as
appropriate. At a more intrinsic level) the mana%er can provide challen%in% 2ob
assi%nments and opportunities for the employee to feel a sense of accomplishment.
#he top of the hierarchy are the self-actuali(ation needs. #hese needs involve
reali(in% one+s potential for continued %rowth and individual development. #he self-
actuali(ation needs are perhaps the most difficult for a mana%er to address. $n fact) it
can be ar%ued that these needs must be met entirely from within the individual. But
a mana%er can help by promotin% a culture wherein self-actuali(ation is possible.
Dor instance) a mana%er could %ive employees a chance to participate in ma&in%
"1
decisions about their wor& and the opportunity to learn and use new information)
s&ills) and capabilities.
"!
Maslow su%%ests that the five need cate%ories constitute a hierarchy. An individual
is motivated first and foremost to satisfy physiolo%ical needs. As lon% as they re-
main) the individual is motivated only to fulfill them. 9hen satisfaction of
physiolo%ical needs is achieved) they cease to act as primary motivational factors
and the individual moves IupJ the hierarchy and becomes concerned with security
needs. #his process continues until the individual reaches the self- actuali(ation
level. Maslow+s concept of the need hierarchy has a certain intuitive lo%ic and has
been accepted by many mana%ers. But research has revealed certain shortcomin%s
and defects in the theory. ?ome research has found that the five levels of need are
not always present and that the order of the levels is not always the same as
postulated by Maslow. $n addition) people from different cultures are li&ely to have
different need cate%ories and hierarchies. /Criffin !AA!0.
""
T=e &R# T=eory
Alderfer /1=;!0 in response to these and similar criticisms) an alternative hierarchy
of needs called the theory of motivation was developed. #his theory collapses the
need hierarchy developed by Maslow into three levels. ,xistence needs correspond
to the physolo%ical and security needs. Relatedness needs focus) on how people
relate to their social environment. $n Maslow+s hierarchy) they would encompass
both the need to belon% and the need to earn the esteem of others. Crowth needs) the
hi%hest 6evel in the ,RC schema) include the needs for self-esteem and self-
actuali(ation.
Althou%h the ,RC theory assumes that motivated behavior follows a hierarchy in
somewhat the same fashion as su%%ested by Maslow)
there are two important differences. Dirst) the ,RC theory su%%ests that more than
one level of need cause motivation at the same time. Dor example) it su%%ests that
"-
people can be motivated by a desire for money /existence0) friendship /relatedness0)
and the opportunity to learn new s&ills /%rowth0 all at once. ?econd) the ,RC theory
has what been called a frustration-re%ression element. #hus) if needs remain
unsatisfied) the individual will become frustrated) re%ress to a lower level) and be%in
to pursue those needs a%ain. Dor example) a wor&er previously motivated by money
/existence needs0 may have 2ust been awarded a pay raise sufficient to satisfy those
needs. ?uppose that he then attempts to establish more friendships to satisfy
relatedness needs. $f) for some reason) he finds that it is impossible to become better
friends with others in the wor&place) he eventually %ets frustrated and re%resses to
bein% motivated to earn even more money. #he #wo-Dactor #heory. Another
popular content perspective is the two-factor theory of motivation. Drederic&
Her(ber% /1=5=0 developed his theory by interviewin% !AA accountants and
en%ineers. He as&ed them to recall occasions when they had been satisfied and
motivated and occasions when they had been dissatisfied and unmotivated.
?urprisin%ly) he found that different sets of factors were associated with satisfaction
and with dissatisfactionMthat is) a person mi%ht identify Ilow payJ as causin%
dissatisfaction but would not necessarily mention Ihi%h payJ as a cause of
satisfaction. $nstead) different factorsMsuch as reco%nition or accomplishmentM
were cited as causin% satisfaction and motivation. #his findin% led Her(ber% to
conclude that the traditional view of 2ob satisfaction was incomplete. #hat view
assumed that satisfaction and dissatisfaction are at opposite ends of a sin%le
continuum. 3eople mi%ht be satisfied) dissatisfied) or somewhere in between. But
Her(ber%+s interviews had identified two different dimensions alto%ether7 one
ran%in% from satisfaction to no satisfaction and the other ran%in% from
dissatisfaction to no dissatisfaction. #his perspective) alon% with several examples
of factors that affect each continuum) is shown in Di%ure !.!. Fote that the factors
influencin% the satisfaction continuum-called motivation factorsMare related
specifically to the wor& content. #he factors presumed to cause dissatisfactionM
called hy%iene factorsMare related to the wor& environment.
#he two-factor theory of motivation
"5
"8
Based on these findin%s Her(ber% ar%ues that there are two sta%es in the process of
motivatin% employees. Dirst) mana%er must ensure that the hy%iene factors are not
deficient. 3ay and security must be appropriate) wor&in% conditions must be safe)
technical supervision must be acceptable) and so on. By providin% hy%iene factors at
an appropriate level) mana%ers do not stimulate motivation but merely ensure that
employees are not dissatisfied.J ,mployees whom mana%ers attempt to IsatisfyJ
throu%h hy%iene factors alone will usually do 2ust enou%h to %et by. #hus) mana%ers
should proceed to sta%e twoM%ivin% employees the opportunity to experience
motivation factors such as achievement and reco%nition. #he result is predicted to be
a hi%h level of satisfaction and motivation. Her(ber% also %oes a step farther than
most theorists and describes exactly how to use the two factor theory in the
wor&place. ?pecifically) he recommends 2ob enrichment. He ar%ues that 2obs should
be redesi%ned to provide hi%her levels of the motivation factors.
Althou%h widely accepted by many mana%ers) Her(ber%+s two-factor theory is not
without its critics. .ne criticism is that the findin%s in Her(ber%+s initial interviews
are sub2ect to different explanations. Another char%e is that his sample was not
";
representative of the %eneral population and that subse'uent research often failed to
uphold the theory. Robert and 6awrence /1=8;0) At the present time) Her(ber%+s
theory is not held in hi%h esteem by researchers in the field. #he theory has had a
ma2or impact on mana%ers) however) and has played a &ey role r increasin% their
awareness of motivation and its importance in the wor&place.
"<
R&S&ARC% (&T%ODO)O#'
INTRODCTION
#his chapter consist of insi%ht into the research desi%n and tactics for the study. $t
focuses on what to study) when to study and how to study* Haven consider the
primary ob2ective of the study* which examine the mana%ement of total 'uality and
monitorin% techni'ues in Fi%erian business environment.
R&S&ARC% D&SI#N
,ssentially) field study approach survey will be adopted for this study because of its
peculiar nature. Meanwhile) the survey will be conducted in the ?&ye Ban&.
However) 'uestionnaires will be the ma2or instrument for collectin% data for this
study. #he 'uestionnaires will be carefully structured and simply desi%ned in order
to ensure easy answerin%* to obtain consistencies in respondents responses and at
same time to eliminate ambi%uity and suspension. All the 'uestions in the
'uestionnaires are desi%ned in open-ended style and %ives alternatives to the
respondents.
#he 'uestionnaires will be personally distributed to the selected population of the
study* and all /the0 'uestionnaires collected will be sub2ected to critical analysis)
appropriately synchroni(ed and analy(ed to aid a reasonable findin%s and
conclusions for the study.
"=
POP)ATION O$ STD'
3opulation may be refers to the universe of research tar%et audience) particularly
those who fall within the cate%ory of respond to the 'uestionnaire of this study.
#herefore) the tar%eted population of this study consists of the Ban&s that are
operatin% in Fi%eria) business environment. However) the ma2or tar%et population
for the study is ?&ye Ban&* it shows that the staff of this or%ani(ation randomly
selected for the study.
SA(P)& AND SA(P)IN# T&C%NI-&S
Accordin% to Asi&a /!AA-0 samplin% plan is a se%ment of the population* selected to
represent the population as a whole) ideally) the sample represents the population in
order to ma&e accurate estimate of the thou%ht and behaviour of the lar%e
population.
#his study will consider both %enders /that is male and female0 in this or%ani(ation*
re%ardless of their marital status) and physical challen%es* in as much as he1she is
mentally alert. #herefore) the sample techni'ues will consider fifty /5A0 staff
randomly selected from the various branches of this ban&s within 6a%os Metropolis.
INSTR(&NTS
$nstrument are the tools) %ad%ets modalities and devices used to collect information
that are necessary for findin% reliable and valid answers to the research 'uestions
and hypothesis raisedJ. #herefore) the ma2or instrument use for this study is
'uestionnaire.
#his instrument is reliability and validity for the fact that the drafted 'uestionnaires
were examine and compared with other collea%ues wor&) and the 'uestionnaires
-A
were also test-and re-test within the same few selected respondents* more so) the
supervisor advice and %uidance also helps a lot to prove the reliability and validity
of instrument.
-1
PROC&DR& $OR DATA CO))&CTION
#he ma2or procedure for data collection of this study is throu%h 'uestionnaires* the
structured 'uestionnaire will be distributed to the randomly selected population.
DATA ANA)'SIS
#he study will employ two ma2or statistics tools for data analysis these tools are as
follows7
?ample percenta%e and
@hi-s'uare /X!0 method
#he simple percenta%e method will be adopted to analysis the 'uestionnaires* while
the chi-s'uare /X!0 method will be adopted to analysis for the formulated
hypotheses.
-!
DATA ANA)'SIS AND PR&S&NTATION
INTRODCTION
#his chapter consists of data presentation and analysis. Bescriptive statistics such as
fre'uencies) percenta%es and the chi-s'uares /X!0 statistics test were used in
analy(in% the data obtained. #he researcher administered the 'uestionnaires) which
were divided into two parts. #he first part contained demo%raphic characteristics of
the respondents while the second part was desi%ned to answer the research 'uestions
and to elicit information on the level of monetary and non-monetary incentive
re'uired to stimulate employee+s attitude in an or%ani(ation.
However) the total number of sixty /8A0 'uestionnaires was randomly administered
into the selected respondents in these or%ani(ations* and forty two /-!0
'uestionnaires were returned) these numbers of 'uestionnaire returned were certified
o&ay and useable for study and the number constitute ;AG.
-"
S&CTION A
R&SPOND&NTS BlO9DATA
Table5 #ender
Cender Dre'uencies @umulative fre'uency 3er /G0
Male !8 81.=
Demale 18 -! "<.1
#otal -! 1AA
0
10
20
30
40
50
Male Female Total
Frequencies
Frequencies
--
Table5 (arital Status
?tatues Dre'uencies @umulative fre'uency 3er /G0
Married !- - 5;.1
?in%le = "" !1.-
Bivorce
d
- "; =.5
9idow ! "= -.<
9idower " -! ;.1
#otal -! 1AA
0
10
20
30
40
50
Married Diorced !idower
Frequencies
Frequencies
-5
Table5 &ducational -ualifications
Nualifications Dre'uencies
@umulative
fre'uency
3er /G0
??@1C@,1F,@. " - ;.1
.FB1A61F@ 5 < 11.=
HFB1B.?c1A@A 1= !; -5.!
MBA1M.?c 11 "< !8.!
.thers - -! =.5
#otal -! 1AA
0
10
20
30
40
50
""#$%#&$'&#( )'D$*."c$+#+ (t,ers
Frequencies
Frequencies
-8
Table 5 'ears in ser<ice
Oears in service

Dre'uencies
@umulative
fre'uency
3er /G0
1M5 - - =.5
8M1A 8 1A 1-."
11M15 1" !" "1.A
18M!A 1" "8 "1.A
!1Mabove 8 -! 1-."
#otal -! 1AA
0
10
20
30
40
50
1-5 .-10 11-15 1.-20 21-a/oe Total
Frequencies
Frequencies
-;
S&CTION B
-29 1ell ;aid em;loyee/AorBers may ;erform better on =eir job.
Table5 Paid em;loyees
3ositions Dre'uencies
@umulative
fre'uency
3er /G0
4unior staff
?enior staff
Mana%er
!1
1-
;
-
"5
-!
5A.A
""."
18.;
#otal -! 1AA
Responds Dre'uencies
@umulative
fre'uency
3er /G0
?tron%ly a%ree !A - -;.8
A%ree 1" "" "1.A
Bisa%reed - "; =.5
?tron%ly disa%ree 5 -! 11.=
#otal -! 1AA
0
10
20
30
40
50
"trongly agree +gree Disagreed "trongly
disagree
Total
Frequencies
Frequencies
-<
#he empirical evidence from the table -.8 research reveals that -;.8G) "1G) =.5G
and 11.=G stron%ly a%reed) a%reed) disa%reed and stron%ly disa%reed) respectively
that well paid wor&ers1 employees may perform better on their 2obs.
-=
-69 Salaries: bonus and alloAances may moti<ates AorBers/ em;loyees
attitudes toAards AorB
Table5 Salaries: Bonus and AlloAances
@umulative
fre'uency
3er /G0
?tron%ly a%ree !1 - 5A.A
A%ree 1; "< -A.5
Bisa%reed ! -A -.<
?tron%ly disa%ree ! -! -.<
#otal -! 1AA
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
$t shows the respondents responds of 5AG stron%ly a%reed) -A.5G a%reed) -.<G
disa%reed and -.<G stron%ly disa%reed that salaries) bonus and allowances may
motivates wor&ers1employees attitudes towards wor&.
5A
-79 Trainin> and de<elo;ment in an or>ani?ation may =a<e ;ositi<e influence
on em;loyees/AorBers ;erformance.
Table 5 Trainin> and De<elo;ment
@umulative
fre'uency
3er /G0
?tron%ly a%ree 1< - -!.=
A%ree 1< "8 -!.=
Bisa%reed ! "< -.<
?tron%ly disa%ree - -! =.5
#otal -! 1AA
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
Drom the responses provided in the data analy(ed in table -.<) -!.=G and -!.=G
stron%ly a%reed and a%reed that trainin% and development in an or%ani(ation may
have positive influences on employees1wor&ers performances) -.<G disa%reed while
=.5G stron%ly disa%reed.
51
-49 Trainin> in an or>ani?ation may reduce cost and as Aell increase
;roducti<ity.
Table 5 Increases ;roducti<ity
@umulative
fre'uency
3er /G0
?tron%ly a%ree
A%ree
Bisa%reed
?tron%ly disa%ree
1<
1;
-
"
-
"5
"=
-!
-!.=
-A.5
=.5
;.1
#otal -! 1AA
#he analy(ed responses on trainin% and cost reduction of research 'uestions 5 shows
that =G) --!.=G) -A.5G) =.5G and ;.1G stron%ly a%reed) a%reed) disa%reed and
stron%ly disa%reed that trainin% in an or%ani(ation may reduce cost and as well
increase productivity. Betails in table -.= above.
5!
-!9 #ood AorBin> conditions in an or>ani?ation may im;ro<e em;loyee
;erformances.
Table 4.235 #ood AorBin> conditions
@umulative
fre'uency
3er /G0
?tron%ly a%ree
A%ree
Bisa%reed
?tron%ly disa%ree
15
1=
-
-
-
"-
"<
-!
"5.;
-5.!
=.!
=.5
#otal -! 1AA
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
#he empirical evidence available in table -.1A shows that "5.;G and -5.!G of the
respondents stron%ly a%reed and a%reed and a%reed that %ood wor&in% conditions in
an or%ani(ation may improve employee performances* =.5G disa%reed and =.5G
stron%ly disa%reed.
5"
-*9 Any em;loyee/AorBer A=o eC;ects ;romotion and dully ;romoted is
bound to increase =is/=er efforts and ;erformances.
Table 5 &m;loyee Promotion
@umulative
fre'uency
3er /G0
?tron%ly a%ree
A%ree
Bisa%reed
?tron%ly disa%ree
!1
15
"
"
-
"8
"=
-!
5A.A
"5.;
;.1
;.1
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
Drom the analy(ed responses in table -.11) it shows that 5AG) "5.;G) ;.1G and
;.1G stron%ly a%reed) a%reed) disa%reed and stron%ly disa%reed respectively that any
employee1wor&er who expects promotion and dully promoted is bound to increase
his1her efforts and performances.
5-
-.9 &m;loyees ;erformance a;;raisal may influence em;loyee ;erformances.
Table 5 Performance A;;raisal
@umulative
fre'uency
3er /G0
?tron%ly a%ree
A%ree
Bisa%reed
?tron%ly disa%ree
18
1=
"
-
-
"5
"<
-!
"<.1
-5.!
;.1
=.5
#otal -! 1AA
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
#he analysis of the responses respondent in table -.1! shows that "<.1G stron%ly
a%reed) -5.!G a%reed) ;.1G disa%reed and =.5G stron%ly disa%reed that employee
performance appraisal may influence employee performance.
55
-09 &m;loyees: Aelfare: ;ension: medical facilities etc may facilitate effecti<e
;erformances.
Table 5 &m;loyees Aelfare
Responses Dre'uencies
@umulative
fre'uency
3er /G0
Monetary
Fon-monetary
!;
15
-
-!
8-."
"5.;
#otal -! 1AA
@umulative
fre'uency
3er /G0
?tron%ly a%ree
A%ree
Bisa%reed
?tron%ly disa%ree
1;
1;
5
"
-
"-
"=
-!
-A.5
-A.5
11.=
;.1
#otal -! 1AA
0
10
20
30
40
50
disagree
Total
Frequencies
Frequencies
#he analy(ed of respondents responses in tale -.1" shows that -A.5G) -A.5G) 11.=G
and ;.1G stron%ly a%reed) a%reed) disa%reed and stron%ly disa%reed that employees
welfare) pension) medical facilities etc may facilitates effective performances.
58

5;
S((AR' O$ $INDIN#S: CONC)SION AND
INTRODCTION
#his chapter consists of the summary from the data analy(ed) the conclusion from
the data analy(ed and recommendation.
5<
S((AR' O$ $INDIN#S
Drom the data analy(ed) it is find that the employee1wor&ers that were well paid will
increase in their performances) the payment in form of salaries bonus and
allowances will also motivate wor&ers1 employees attitudes towards wor&* more so)
frin%e benefit is another factor that may influence employees performances.
$t is also find that the non-monetary incentives such as trainin% and development in
an or%ani(ation have positive influences on employee performances) trainin%) an
or%ani(ation may reduce cost and as well increases productivity* %ood wor&in%
conditions in an or%ani(ation will also improve employees performances.
#he study find that any promoted employees will increase his1her efforts and
performances in wor& place and employee performance appraisal influences
employees performance* employee welfare) pension) medical facilities also
facilitates effective performances) lastly the employee prefer monetary incentives to
non-monetary
incentives.
5=
CONC)SION
$n view of these findin%s) the study thereby conclude that there is clear relationship
between monetary incentives and wor&ers performance* frin%e benefit can motivate
wor&ers+ performance. However) some of the main ob2ectives of trainin% employee
include) increase in productivity) lower labour turn over rate) hi%her morale and
better co-ordination and trainin% helps to reduce cost as it increases productivity)
promotes %oal con%ruency. 6ac& of trainin% increases absenteeism rate) low output)
poor 'uality and re2ects and results in hi%h unit cost.
Fon-monetary incentives) %ood wor&in% conditions promotion) %ood supervision)
staff welfare) scheme) pension) medical facilities facilitates increases in employees+
performances and employee+ prefer monetary incentives to non-monetary
incentives.
8A
R&CO((&NDATION
$n any or%ani(ation) incentives are a very sensitive issue not only to employer but
also to the employees. #herefore) the ability of the or%ani(ation to attract and retain
employees depend on how much monetary and non-monetary incentives) it is
prepared to offer. 3oor wa%es and salaries as well as poor wor&in% conditions is a
constant source of frustration to employees ands when they en%a%e mana%ement in
constant strife) the result is decrease productivity. 3romotion) better pay frin%e
benefit and other social incentives are essential factor that motivate the employees to
increase productivity.
#herefore) it is thereby recommend that or%ani(ation should strive to introduce a
satisfactory incentives pac&a%e to the employees) increases in salary bonus etc. #his
is important because employee+s satisfaction can motivate hi%h performance.
More so) non-monetary incentives) such as trainin% promotion) effective
performance appraisal should be encoura%e) employee needs ade'uate trainin% to
carry out their duties and employees that were promoted as well due will be
motivated to increase its performances) and the mana%ement should ensure effective
performance appraisal) whenever employees+ ratin% is bein% conducted) this should
be done without any fair of favour and bias mind. Fon-monetary incentives should
be tailored in line with monetary incentives in order to motivate employees to put in
their best and at the same time) or%ani(ation should strive towards e'uity in the
administration of monetary and non-monetary incentives.
81
R&$&R&NC&S
BooBs
Adams) 4.? /1===07 Advances in ,xperimental 3sycholo%y Few-Oor&. Academic
3ress.
Bennett) R /1==80 ,ffective Mana%ement 6ondon) Ee%an 3a%e 6td.
@ole. C.A /!AAA0 3ersonal Mana%ement) 6ondon) 6etts ,ducational. Aldine 3alece.
Burc&er) 3. D /1===0 Mana%ement) .xford. Butter 9orth Heinemann)
6uthans D /!AA"0 .r%ani(ational Behaviour Boston) McCraw- Hill $n
Martins) B. @ and Bartol E. M /1==<0 Mana%ement Boston McCraw M Hill
Fwachu&wu) @. @. /1==<0 Mana%ement #heory and 3ractice. O.. African a Deb
3ublishin% 6td.
3itfield) R. R. /1=5A0 Business .r%ani(ation. 6ondon) Macdonald and ,vans.
.to&ih) ?. A. /!AA!0 #heoretical @oncepts and ?cope of Mana%ement) 6a%os.
Hanta%e 3ublication @ompany.
be&u) A. E /1=;=0 3ersonal Mana%ement in Fi%eria . Benin @ity. ,thiope
3ublishin%
Criffin R /!AA!0 Mana%ement) Boston Hou%hton Mifflin @o.
,dward , /1===0 3ay and .r%ani(ational ,ffectiveness A 3sycholo%ical Hiew. Few
M Oor&. McCraw M Hill
Robert) 6.M and 4ac&son) 4 /!AA-0 Human Resource Mana%ement) 6ondon.
#homson M ?urth 9est $nc.
4effrey 3 /1==<07 #he Human ,'uation) Boston) Havard Business ?chool 3ress.
Abraham H. M /1=5-0 Motivation and 3ersonality) Few M Oor&) Harper and Row.
Alderfer @. 3 /1==!0 ,xistence) Relatedness and Crowth) Few M Oor&) Dree 3ress.
Dederic&) H /1===07 #he Motivation to 9or&. Few M Oor&. 9iley
4.RFA6?
Cellerman) A. 3 IMana%ement and subordinates Havard Business Review) May)
8!
1=;8.
Eepner E et al I#he Role of Monetary and Fon-monetary incentives in the
9or&place As influence by career sta%eJ $nstitute of food and a%riculture sciences.
niversity of Dlorisda. Cainesvills. 4une) !AA".
Alexander B. and Dred 6. IBifferential ,ffects of $ncentive Motivators on wor&
performanceJ Academic of 4ournal -" /!AA10
9illiam) M. B I$ncentives ?ystem Dine #unes 3ay1Bonus 3lansJ #he 9all ?treet
4ournal) Au%ust 18) !AA1
Robert H and 6awrence) A. 9. IHer(ber%s Bual M Dactor #heory of 4ob
?atisfaction and Motivation7 A review of the ,vidence and a @riticismJ 3ersonnel
3sycholo%y. 9inter 1=8;.
8"

Monetary and Non Monetary Incentives

Uploaded by

Copyright:

Available Formats

You might also like

Monetary and Non Monetary Incentives

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Monetary and Non Monetary Incentives

Uploaded by

Copyright:

Available Formats

www.readymadeproject.

You might also like