Saturday 6 January 2018

Effects of Monetary Incentives on Employee Performance 2

Effect of monetary incentive on employees performance

1.2   Statement of the Problem

Incentives are designed to promote workers enthusiasm to work. Any worker who knows that such a thing exist where he works strive to get it by putting interest, and showing sign of commitment towards achievement of organizational goals.
The incentive schemes available in Ebonyi State Ministry of Works seem to be sparsely distributed to the beneficiaries and this has consequences on the workforce. Most of the incentives are not redeemable as it takes months to be claimed. Again, this attitude dampens the urge of the workers to put their best in attaining organizational objectives thereby reducing productivity.

Means adopted for identifying the best performed worker is very selective and skewed along line of sectional or tribal lines. This singular way seems to hinder the desire to go beyond targeted projection of the organization's action and the quality of job executed and supervised by staff. Inappropriate distribution of incentives has brought about inflation of contract and low quality jobs executed by the staff of Ebonyi State Ministry of Works try to pay themselves upfront and acceptance of gratifications become the order of the day. Again, allowances due to staff that are in outside station duties are not regularly paid, thereby reducing their urge to put more effort in their duties and in attending organizational objectives.
Hence, the lack of consistency in payment of allowances, delay in redeeming incentive packages and the distribution of incentives packages along tribal and sectional lines have effects on the performance and productivity of civil servants including those in Ebonyi State Ministry of Work.

1.3   Objectives of the Study:

The general objective of the study is to investigate the effects of monetary incentives on employee performance in Nigerian civil service system with specific focus on Ebonyi State Ministry of Works. Specifically, the research will: 
  1. Determine the extent to which workers of Ebonyi State Ministry of Works receive their allowances regularly.
  2. Ascertain whether there is any relationship between distribution of incentive schemes and performance of workers in Ebonyi State Ministry of Works.
  3. Examine whether there is significant relationship between the delay in the redemption of incentives and performance of the staff of Ebonyi State Ministry of Works.

1.4    Research Questions

The following research questions were formed to guide this study.
  1. To what extent do workers in Ebonyi State Ministry of Works receive their allowances regularly?
  2. Is there any relationship between distribution of incentive schemes and productivity of workers in Ebonyi State Ministry of Work?
  3. What is the significant relationship between the delay in the redemption of incentives and performance of staff of Ebonyi State Ministry of Works? 

1.5   Research Hypotheses:           

The following research hypotheses were formed from the above stated research questions to guide the research.
Ho1 -     workers Ebonyi State ministry of works do not receive their allowances regularly.
Ho2 - there is no relationship between inappropriate distribution of incentive schemes and productivity of the staff of Ebonyi State Ministry of Works.
Ho3-     There is no significant relationship between the delay in the redemption of incentives and performance of Ebonyi State Ministry of Works.

1.6   Significance of the Study:

This research will be significant or beneficial to students, government agencies and parastatals, private business organizations and members of the general public. The recommendations of this research will help government agencies and parastatals to come up with better ways of improving employees' performance through monetary incentives and fringe benefits.
The research will help government agencies to establish and maintain good relationship with employees (civil servants) in order to enhance effective employee performance in the civil service sector. The research will also help private business organizations to adopt strategies that will help them boost employee performance through effective monetary incentives. The research will serve as educative materials to members of the general public. It will educate them on the importance of monetary incentives on employee performance as well as what to expect from the government and civil servants.
The research will serve as a source of reference for further studies particularly for students in public administration and other related disciplines in that it will provide them with the methodological guides and techniques needed for handling matters of this nature.
The recommendations of this research will help government agencies and parastatals to come up with better ways of improving employees' performance through monetary incentives and fringe benefits. The research will help government agencies to establish and maintain good relationship with employees (civil servants) in order to enhance effective employee performance in the civil service sector. The research will also help private business organizations to adopt strategies that will help them boost employee performance through effective monetary incentives. The research will serve as educative materials to members of the general public. It will educate them on the importance of monetary incentives on employee performance as well as what to expect from the government and civil servants.

1.7   Scope of the Study:

This research focuses on effect of monetary incentives on employee performance in Ebonyi State Ministry of Works as a focus of interest.

1.8 Limitations of the Study:

Some factors pose limitations to the completion of this research. These factors are discussed below.
     The time allowed for this research could not permit the   researcher   to   cover   larger   area. Combining   the research with other activities like lectures, assignment, term paper presentation, exams etc was very tasking but the researcher overcome this by maintaining  a strict time schedule for each of the activities.
     Some of the respondents hesitated giving out information on the extent of using incentives by the government to motivate employees to perform better, for fear of being indicted. But, the researcher visited and revisited them in order convince them that their responses will be used for academic purposes only and treated with the strictest confidence.
     Some of the assumptions held and shared by research can not be generalized without carrying out an investigation to find out its veracity,

1.9     Operational Definition of Terms

Some of the terms   used   in this   research that require clarification include:
  • Incentive: Incentive refers to something that encourages an employee to put more effort in his job, especially something that makes an employee to perform better.
  • Monetary incentive: This refers to reward for excellent job performances   through   financial   rewards   such   as   cash bonuses, compensation and profit shares.
  • Employee: an employee is a person who is paid to work for somebody. An employee is a person who contributes his human resources and human capital to the realization of a firm's corporate objectives and is being paid salary or wage for doing this.
  • Employee performance: this refers to whether an employee executes his/ her job, duties and responsibilities well. It refers to the extent to which an employee meet or surpass the expectations of his employer through the way he carryout his duties.
  • Civil service: this refers to those branches of public service concerned with all governmental administration functions outside the armed services.
CHAPTER TWO
REVIEW OF RELATED LITERATURE

This chapter focuses on the review of related literatures written by management scholars who have explored the concept of incentive, monetary incentive and the impact of monetary incentives in promoting employees’ performance. The review of related literature was based on books, articles, journals, and monographs written by management scholars on the topic of this research. Available literatures online were also tapped in other to ensure adequate analysis of the topic under study. Hence, the review was presented in the following order...............................................................................

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