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EFFECT OF MOTIVATIONAL INCENTIVE
ON EMPLOYEE PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.0 General Introduction
Most corporate executives in most public and
private sectors organizations regarded materials and financial source as the
most important assets in any given industry or organization. This, thinking as
stated above, has dramatically changed. In most organizations, human resources
are now given without priority. It is people that make organizations and unless
they are recognized and treated, the result will be negative attitudes which
can, by extension lead to negative result in the form of poor performance. Therefore,
the first thing to communicate to the men you have to manage is the fact that
they are important people.
You can achieve something with the most difficult
individual if you realize and sincerely believe in his personal importance,
dignity and potential. You can boost his morale so that his productivity will
rise beyond your hopes. Output is as much dependent on morale as an incentive
(financial or otherwise) or physical working conditions. People like to feel
they matter as individuals to their management, that they are been consulted
about things, that their work matter, that the superior really knows what they
are doing and they are also compensated to do more (incentives).
1.1 Background of the Study
It is known fact that the principal motive of
management of any organization is to make individual and people contribute
positively towards the activities which it consists. So as to achieve the
mission and goal of the enterprise employee motivated.
Hermann motivates are based on need such as psychological
requirement for water, food, sleep and shelter while others needs may be
regarded as secondary such as self esteem status, affiliation with others,
compliment and self assertion or satisfaction (Daniel, 1982).
A motives as well as directs motivate their
subordinated is to say why they do those thing, which they hope will satisfy,
these drives and desires as to induce in the subordinate so as to act in
desired manner if the motivation of employee is to be more productive and for
it to produce at a higher level of quality often required what a variety of an
incentive be used in varying proportion as can best be esteemed by Human
Resource managers. Because of the differences in need patterns and their ever
changing natures, the incentive that may be best for one group or an individual
may not be effective for another of a particular time.
The use of incentive does not only involve the
monetary aspect but also comprise non-financial incentive such as
transportation facilities, accommodation facilities, welfare service etc.
It is usually the responsibility of the
supervision to ensure that the employees feels that the up (the organization)
came about their view and suggestions on work emplacement, income
simplification and such other routine matter (Ibekwu, 1984).
It
is described that job should be varied and given to employee accomplished which
boost their age and gives them a feeling of pride and sense of achievement
which includes some individuals to remain with an organization so as to reach
individual satisfactory level of performance.
Hence incentive tend to be cost to their
employers while it is a benefit or major source of income to employees. No
organization can hopefully succeed without the effort of the employee
performance with focus on Nigeria Brewery Plc as a case study.
1.2 Statement of the Problem
The failure of top management to appreciate the
human element as the most crucial factor and the determinant of attainment of
goals and objective have constituted serious eroding problem.
The employees are faced with unhealthy working
environment and this have resulted in poor productivity.
The general relationship between the top
management and the rank files are not cordial.
The employees are not send or given training as
at when due.
The take home/incentive of the employees are not
encouraging. These and many more are the problems face by employee and which in
turns affect their performance.
1.3 Objective of the Study
1.
To determine
whether employee need to be motivated.
2.
To determine
whether incentive is related to performance.
3.
To determine
whether promotion is motivating factor to performance.
4.
To determine
whether employee do perform optionally.
5.
To determine
whether workers do get adequate remuneration.
1.4 Statement of the Study
H0: Incentive has no effect on employee
performance in Nigerian Breweries.
H1: Incentive has effect on employee performance
in Nigerian Breweries.
1.5 Significance of the Study
The study is significant in that it would serve
as a basic for future researcher who would like to carry out a research on a
similar topic. It would also give an impetus to policy makers on how best to
improve incentives on employee performance in an organization especially the
Nigerian Breweries Plc. Also the result of this study would give relatively
good understanding on the effect of incentive on employee performance in an
organization.
1.6 Scope of the Study
The study shall cover Nigerian Breweries Plc
Kaduna. In relation to motivational (incentive) tools been used to affect its
employee to theories of motivation (incentive), importance of incentive and its
impact on the employee’s working environments.
1.7 Limitation of the Study
1.
Inaccessibility
of sufficient research material: The
materials used for the research were not readily available and adequate enough
for a comprehensive research as desired by the researcher must comment lent
books and other relevant publication in libraries within and outside the
school.
2.
Uncooperative
attitude of respondent: These were
some respondents that were not ready to answer vital information for the
purpose of this research such valuable information was considered to be
confidential and as well ere not ready to release confidential secret of the
organization.
3.
Low Return
rate of Questionnaire: Some of the
questionnaires distributed to respondents without properly filling as such that
they were not used in analyzing the data.
4.
Academic
pressure: This is the
frequent test in school, assignment and always pay visit to library in the
search of relevant material hampered the researcher in writing a name
comprehensive and better research work done.
5.
Finance: This was another area where the researcher faced
differently but with the help of God and his divine provision the work was
done.
1.8 Historical Background of the Case Study
Nigerian Breweries Plc (NB) is the pioneer and
largest brewering company in Niegria. The company was incorporated on 16th
November 1946, under the name, Nigerian Brewery Limited. The name changed on 7th
January 1957 to Nigerian Breweries Limited and thereafter to Nigerian Breweries
Plc in 1990 when the Companies and Allied Matetrs Act of the year came into
effect.
The company is a subsidiary of Heineken N.V of
the Netherlands the lather having a 54.10% interest in the equity of Nigerian
Breweries Plc. NB recorded a landmark when the first bottle of star lager beer
rolled off the bottling lines in its Lagos Brewery in June 1949. This was
followed by Aba Brewery which was commissioned in 1957, Kaduna Brewery in 1963
and Ibadan Brewery in 1982. In September 1993, the company acquired its fifth
brewery in Enugu, while in October 2003, a sixth and biggest brewery sited in
Ama Enugu state was commissioned.
Thus, from the humble beginning in 1946, Nigerian
Breweries Plc has eight operational breweries from which its high quality
products are distributed to all parts of Nigeria, in addition to the ultra
modern malting plants in Aba and Kaduna.
Products: The company portfolio of high quality
brand, including:
1.
Star lager
beer (launched in 1949) in pale lager
2.
Gulder lager
(1970) pale lager
3.
Legend extra
stout (1992) 7.5% ABV Extra Stout
4.
Heineken
(June 1998) premium lager
Heineken
(June 1998) premium lager
5.
Gold berg
lager
6.
Life
continental lager
Alcohol Free Drinks
1.
Maltina
(1976) in the varieties namely Maltina classic, Maltina strawberry and maltina
pineapple, Maltina Sip-it (2005) in tetrapak
2.
Amstel malta
(1994)
3.
Fayroz in
pear and pineapple
4.
Climax energy
drink
5.
Malta Gold
(Became part of Nigerian brewery family in October 2011.
Most of the product are packed in returnable
bottles and all products are now available in cans. Fayrouz is also produced in
PET.
Nigeria Breweries keep pace with key
international development, thus ensuring that its systems,s processes and
operational procedures are always in conformity with world class standards.
This is in line with this policy that the company established a research and
development centre in 19876 to enhance its research activities on all aspects
of brewing operations. The company is a socially responsible corporate citizen
with a very good record of corporate philanthropy in the areas of education,
the environment (water) and sports, among others. Thus company in 1994
established an Education Trust Fund of N100m to take more active part in
funding of educational and research facilities in high institutions, all in an
effort to provide and encourage academic excellence in Nigeria. This is in
addition to its secondary and university scholarship programme for children of
it employees.
Nigerian Breweries is the foremost sponsor of
sport by variety in the country with sponsorship covering football, athletics,
tennis, cycling, chess, golf, badminton, dart and boat racing. The aim of the
company is to develop Nigeria sportsmen and women and to participate in
national and international sports and boost the sport profile of the country.
1.9 Definition of Terms
In research of this nature, it is quite necessary
to define some of the key occurring terms. The essence is to make them
operational in the context in which they have been used.
Human
Resource: This refers to the
people who work for an organization (employee).
Performance: This is a measure of how well the employee do in
the organization so as to achieve the goals and objectives.
Satisfaction: The state of being contended, pleased or the
state of acquiring what one wants or needs the act of satisfying.
Remuneration: This simply mean amount of money that is paid
for somebody for the work that have been done.
Organization: This is a cooperative and coordinated social
system of two or more people with a common purpose.
Incentives: This is something that encourage action or
effort.
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