AN APPRAISAL OF THE RELEVANCE OF FINANCIAL INCENTIVES TO WORKERS MOTIVATION (A CASE STUDY OF NATIONAL BOARD FOR TECHNICAL EDUCATION, KADUNA)
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AN
APPRAISAL OF THE RELEVANCE OF FINANCIAL INCENTIVES TO WORKERS MOTIVATION
(A CASE STUDY OF NATIONAL BOARD FOR TECHNICAL
EDUCATION, KADUNA)
ABSTRACT
A part from the basic objectives of this
research thesis, the impartial fulfillment for
the award of master degree in Public Administration
in the Department of political Science And Defence Studies, Nigerian Defecnce
Academy, Kaduna. The thesis was conducted primarily to ascertain the
effectiveness of financial incentives to
workers motivation in National Board for Technical Education.
The
whole research was divided into five chapters. Chapter one deals with the
General Introduction, Background to the study, Statement of the Research
Problems, Study, Research Questions, Objectives of the study, Hypothesis,
Significant of the study, Methodology,
Sources of Data Collections, Scope and Limitations of the Study and Definitions
of Terms.
While
Chapter two highlight Literature Review and Theatrical Frame Work, introduction
motivation Concepts, Extrinsic Motivation, Six basic Desires Concepts,
Transcendent motivation, Self determination and Self Control, Motivation and
Incentives as viewed by various School of Thought, Theoretical Framework and Incentive theory.
However,
Chapter three discussed extensively on the Historical Background of National
Board for Technical Education, Kaduna. Introduction, Functions of the Board,
The Structures of the Board, The Departments of the Board, Major Achievement of
the Board, Challenges of the Board, Lingering issues in Federal Polytechnics.
Chapter
four, presented and analyzed financial incentives to workers motivation in
National Board for Technical Education, Data presentations and Analysis,
Presentation of Tables, Pie Chart Computation and Major findings.
Chapter
five, highlighted the Summary, Conclusion and Recommendations of the Study,
Appendices and Bibliography of the Thesis. The researcher gave some
recommendations which we hope will help to minimize the problems and enhance
productivity, efficiency and Industrial harmony in the Organization. More so,
in identifying the above problems not intented to discredit the present system
being in operation in the organization but there are merely views as depicted
through and felt in the course of the research carried out.
If
researcher’s views and suggestions were implemented well, it may definitely
lead to greater productivity, job satisfactions and Industrial harmony between
the workers and Management of National Board for Technical Education, which
will stand the test of time and assist in enhancing workers performance.
TABLE OF CONTENTS
CONTENT
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PAGE
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Title Page
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i
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Approval Page
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ii
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Declaration
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iii
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Dedication
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Iv
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Acknowledgment
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V
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Abstract
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vi
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Table of Contents
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vii
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CHAPTER ONE
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1.1
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Background to the Study
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1.2
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Statement of the Problem
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1 - 5
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1.3
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Research Questions
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7 – 8
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1.4
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Objectives of the Study
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8 - 9
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1.5
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Hypothesis
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9
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1.6
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Significance of the Study
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9 - 10
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1.7
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Methodology
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11
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1.7.1
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Sources of Data Collection
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11
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1.8
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Scope and limitation of the Study
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12 - 13
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1.8
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Definitions of Terms
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13 - 14
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CHAPTER TWO
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LITERATURE REVIEW AND THEATRICAL FRAME WORK
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2.0
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Introduction
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15
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2.1.1
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Motivation Concepts
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15 - 16
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2.1.2
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Intrinsic motivation and the
sixteen basic desires concepts
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16 - 18
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2.1.3
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Transcendent motivation, self
determination and Self Control
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18 - 19
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2.1.4
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Motivation
and incentives as view by various School of thought.
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19 - 33
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2.2
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Theoretical Framework
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33
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2.2.1
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Theoretical Theory
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33 - 35
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CHAPTER THREE
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RESEARCH METHODOLOGY
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3.0
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Introduction
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36 - 37
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3.1.1
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Functions of the Board
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37 - 40
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3.1.2
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The Structures of the Board
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40
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3.1.3
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The Board is Structured into Four
Departments
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40 - 41
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3.2
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Major Achievements of the Board
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46 - 47
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3.3
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Challenges of the Board
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47 - 48
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3.4
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Lingering Issues in Federal
Polytechnics
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48
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CHAPTER FOUR
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Financial Incentives to workers
motivation in NBTE
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4.1
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Introduction
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49
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4.2
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Data Preparation and Analysis
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50 - 65
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4.3
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Pie Chart Computations
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65 - 67
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4.4
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Major Findings
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68 - 69
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CHAPTER FIVE
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SUMMARY, CONCLUSION AND RECOMMENDATIONS
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5.1
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Summary
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65
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5.2
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Conclusion
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68
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5.3
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Recommendations
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69
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5.4
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References
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72
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Appendix I
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80
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the word
of Armstrong (1988), the process of motivation is initiated by the conscious
and unconscious recognition of an unsatisfied need. A goal is then established
which, it is thought will satisfy the need and of course action is determined
that lead towards the attainment of a goal. Management should
provide incentive schemes and pay workers on the basis of the result they
achieve on the job instead of the more physical routine performance series
activities and to retain them on their job making them feel satisfied, a motivationally-oriented
wage system must adequately distinguish “Naira” wise between the different
levels of efficiency for the people performing essentially job and different
job categories and specialization.
In
every organization, the management emphasis on high productivity, quality of
services, quality workmanship, industrial peace, cooperative labour etc. On the
other hand, employees need fair wages, job satisfaction, good working
conditions, participation in decision making, self recognition and opportunity
for advancement.
Organizations
and managers have suffered tremendously in trying to utilize their human
resources, they usually encounter frequent industrial conflicts and several
unresolved agitations by workers and different categories of employees basically
steaming from one form of dissatisfaction or the other. The main point of
misunderstanding between management and employees/workers in most cases is
found in the arrears of inadequate and inequitable monetary rewards.
Financial incentive as we all know is a process of guiding
the conduct and influencing people so that they strives individual or group
towards the achievement of group goals. Every employee comes to an organization
with one motive, to earn a living and financial incentive play a vital role in
the lives of these employees. Taking away financial incentive might jeopardize
this individual or the group interest. Management on the other hand,
established the organization for the purpose of return of investment and profit
making, high productivity, quality of services, industrial peace, cooperative
labour and to remain a going concern. Skinner B. F. (1953), states that by
providing properly scheduled rewards is possible to influence behaviours.
The objective
and purpose of this study is to examine whether or not financial incentives has
contributed to workers performance and industrial harmony in National Board for
technical Education. This research is by no means exhaustive but will help the establishment
to take a second look that financial incentives has a significant role to play
in maintaining industrial peace, increase productivity and boost the morale of
the employees in an establishment.
It
has generally been observed and noted that in a sample group of workers
performing the same type of job, some do it better than others. This
observation will raise and arouse the notion or questions or psychological
tendencies, interest and differences in performance. One school of though holds the view that “differences
in performance reflect varying characteristics, abilities and skills on the
part of ‘workers’. F.B. Skinner, (1985), an Industrial psychologist argues that
differences in performance of workers doing the same kind of job, might be as a result of extra monetary
rewards attached to the job, conductive working environment or friends they
meet in the workplace.
As a
result of these possibilities, recognition and thorough understanding of
workers needs/wants before adopting any form of motivational techniques such as
financial rewards (money) human relations, conducive, working environment,
leadership and good supervision among others, becomes apparently important
since these factors has different influence and impact on different categories
of workers and individuals.
The
complexity of human nature, expectation, urges and drives/motives make the art
of motivation of workers and employees a critical and complex point for
consideration. A definite answer could not be reached since people differ in
characteristics, background, traits, and needs. Thus it becomes imperative for
the manager to incorporate positive motivational incentive programmes to
motivate workers behaviour towards achievement of predetermine goals and
objective of the organization.
Motivation is
a very important issues in managing people. A happy employee is said to be a
motivated employee. So it is important for managers, especially human resource
managers to figure out what motivate an employee to excel at his/her work.
Workers in any organization need something to keep them working. Most times the
salary of the employee is not enough to keep him/her working for an
organization due to economic factors and other variables. Sometime also just
working for salary is not enough for employees to stay in the organization. An
employee needs to be adequately motivated, the absence motivation scheme
results to deteriorate in quality of work/performance either on individual or
at corporate level. Even in conductive work environment it is generally
observed that while some people work willing, others work very willing. The
question then is what is responsible for people’s motives and attitude to work.
By
definition, managers work with and through people to get things done. But
people are complex and their motivations are not always easy to understand. It
involves the unique feelings, through past experience of individuals as they
share a variety of relationships within and outside the organization. Many
theories exist about motivation and most of them differ in what they suggest
managers should do to obtain the most effective performance from their
employees. Most successful managers, however have learned by experience that
people are generally very responsive to praise and encouragement-expressed not
only in words but also in actions such as financial rewards-and they need to
feel successful in their work in order to give their best effort to the
organization. Managers who find the key to their employees’ inner motivations
can tap an immense source of productive energy.
While
motivation is essentially a personal experience, managers, in particular,
should be keen to find reliable links between motivation and effective
performance. They should also be concerned with creating the conditions under
which organizational and personal goals may be harmonized. The key feature of
motivation is that it determines the extent to which an individual desires to
place his/her knowledge and skill at the disposal of others, and more than that
to push off the effects of obstacles and difficulties in so doing. This project
work examines the motivating power and relevance of financial incentive in
boasting the performance of workers.
1.2 Statement of the Research Problem
The general
concept of financial incentives is one form of motivating techniques and its
indispensability for achievement of desired organizational goals and increase
productivity and reward for performance has been a subject of controversy over
the years globally generating diverse research arguments, criticisms and
assumptions especially in developing country like ours.
Although many
researches had been conducted on this concept, there are many avenues not yet
explored and considered as per the complexities to the time understanding of
what actually motivate the individuals in the work place. Organizations and
managers have suffered tremendously in trying to utilize their human resources,
they usually encounter frequent industrial conflicts and several unresolved
agitations by workers and different categories of employees basically steaming
from one form of dissatisfaction or the other. The main point of
misunderstanding between management and employees/workers in most cases is
found in the arrears of inadequate and inequitable monetary rewards.
One of the
problems of workers in National Board for Technical Education is financial
incentives which led to workers dissatisfaction and low productivity. It is
evident here that the mode of financial incentives used by National Board for
Technical Education has not been effective.
Secondly, there is correlation
between financial incentives and workers
productivity in National Board for
Technical Education which the
management is not implementing.
Thirdly,
the problems militating against National Board for Technical
Education
staff is financial incentives because there are not adequately
provided.
Another problem is delay in paying those who have performed their
duties.
1.3 Research Questions
Even in most
conductive work environment, it is generally observed that; while some people
work willingly, others work unwillingly, the question then is what is
responsible for people’s motive/attitude to work? As one psychologist puts it,
“One of the most powerful positive tools that motivate people at work is
financial incentives (money) at the prime stage.
To aid the research work, the
following research questions were drawn;
-
What
types of motivation or financial incentive do workers received at
National
Board for Technical Education?
- Is there any correlation between financial
incentives for workers and productivity in National Board for Technical
Education?
- What are the problems militating against
financial incentives of staff of National Board for Technical Education?
-
How
can these weaknesses be overcome to enhance motivation and
productivity
National Board for Technical Education?
1.4 Objective of the Study
The objective of this study is to
examine and highlight the negative impact of financial incentives to National
Board for Technical Education staff. - It
is expected that the findings of this research will be beneficial to policy
makers, the Nigerian Public Sector and National Board for Technical Education.
- To analyze the objectives of this
research to know whether or not financial incentives are the highest/greatest
motivators to workers performance in National Board for Technical Education.
- The
study is aimed at adding to the existing body of knowledge on the
subject matter and serve
as a useful reference source for researchers in the field.
- This study is not intended to find
faults with any motivation techniques adopted by the National Board for Technical
Education or negate the idea but to establish the effects and appraisal of
financial rewards to their employees contribution in terms of productivity/efficiency
being an indispensable management tool for achieving desired organizational
goals and objectives.
1.5
Hypothesis
The hypothesis below were made in
relation with stated problems and objectives of the study
i. Lack of financial incentives has been the
major impediment to workers motivation in National Board for Technical
Education.
ii. Financial incentive has been the major
boost/influence to workers motivation in National Board for Technical
Education.
iii. Financial incentive can be considered by
management as a indispensable tool for workers motivation in National Board for
Technical Education.
1.6
Significance of the Study
Every
organization in Nigeria today whether profit or non-profit oriented, is most
concerned continuously with how to meet its organizational goals. A successful
motivation strategy would result not only through the attainment of corporate
objectives but through individual recognition or perceptions, aspirations,
ability, skills and motives, desires and satisfaction. These of course, will
also enhance increase in aggregate output level. Nigeria today moved far ahead
from period when inducement or threat of any kind seen as effective tools of
management for rapid development and growing economy.
The
researchers’ choice on the topic “Appraisal of the relevance of financial
incentive to workers motivation” therefore emanates from the fact that early
available research on the topic seems to have conducted based on developed
nations with totally different socio economic, political and other background
different from ours which to some extent still is under-affluent economy.
We have
witnessed in the past few years in our industries, the increased rate of
industrial disharmony (strike, lock-out etc) with frequent demand for higher
wages more than other countries both in the public and private sectors
respectively. This of course indicates that a lot is yet to be done in human
resource management particularly in the aspect of employee’s motivation
(Oshomole, 2007). This study therefore is meant to contribute to the unresolved
controversy as to whether or not financial remuneration is a positive incentive
in motivating human behaviour at work.
1.7 Methodology
For the purpose of gathering
information for this research project, secondary method of data collection was
used.
1.7.1. Sources of Data Collection;
The secondary methods of data
collection was used. Secondary data was used by administered questionnaire on
the staff of National Board for Technical
Education, Annual Report, Staff
Manual, Workshop, Seminar papers,
Conferences, Paper presentation at
NBTE floras and journals, Internets,
policy Papers among others were
consulted.
i.
Population and Sample Size
The total population and
staff strength of National Board for Technical Education Kaduna constituted a
population of 308 workers and this number served as the population and sample
size of this study.
ii.
Sampling Technique
A random sampling method
was employed for this study whereby questionnaires was administered to a
cross-section involving management staff, senior/junior staff of National Board
for Technical Education in different Department/Divisions
iii. Questionnaires Administered
Questionnaires was
designed and administered to the different categories of National Board for
Technical Education workers. Questions were intended to obtain information
about the authenticity of the relevance of financial incentives in motivating
National Board for Technical Education employees.
1.8 Scope and Limitations of the Study
This study is
about the appraisals of financial incentives to workers motivation of National
Board for Technical Education as a case study. The study therefore is limited
to National Board for Technical Education only. In the course of carrying out
this research work, the researcher encountered some problems among which are:
i.
Accessibility to data
The researcher could not
have full access to some of the information needed from the management due to
the fact that the custodians of such information could not be reached.
ii.
Time Wastage
Bureaucratic bottlenecks
created a big problem because of continuous visit to the establishment due to
unavoidable absence of people in the right position that gave birth to
unnecessary time wastage and delays in completing the project work.
iii. Financial Constraints
Much spending going up
and down without contacting the appropriate personnel on seat, typing cost and
increase in materials needed. Despite all these constraints.
iv. Employees Attitude
Despite the fact that a
questionnaire was designed to eliminate bias and misunderstanding, some
employees refuse to complete the questionnaires form, due to nonchalant
attitude and forgetfulness.
1.9 Definition of Terms
i. Intrinsic Motivation
Intrinsic and Extrinsic
motivations refers to motivation that is driven by an interest or enjoyment in
the task itself and exist within the individual rather than relying on any
external pressure. While intrinsic
motivation has been studied by social and educational psychologists since the
early 1970s. research has found that it is usually associated with high
educational achievement and enjoyment by students. Expectations of intrinsic
motivation have been given in the context of Fritz Heider, (1873), attribution
theory. Bandura, (1980), work on
self-efficiency and Dedi and Ryan (1964), cognitive evaluation theory (see
determination theory) students are likely to be intrinsically motivated if
they.
i Attribute their educational results to
internal factors that they can control
(e.g. amount of effort they put in).
ii. Believe they can be effective agents in
reading and reaching their desired goal (e.g. the result are determined by luck
but hard work).
iii. Are interested in mastering a topic,
rather than just rote-learning to achieve good grades.
xii.
Extrinsic Motivation
This type of motivation
comes from outsides of the individual. Common extrinsic motivations are rewards
like money and grades, coercion and threat of punishment. Competition is in
general extrinsic because it encourages the performer to win and beat others
not to enjoy the intrinsic rewards of the activity. A crowd cheering on the
individual and trophies are also extrinsic incentives. Social psychologist has
indicated that extrinsic rewards can lead to over-justification and a
subsequent reduction intrinsic motivation.
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