CHAPTER ONE

1.0 INTRODUCTION

An incentive is a form of financial encouragement

recognizing a particular contribution made by the work force in

other words it is a sum of money paid in addition to the basic rate

which the organization pays to ensure that its most important

production aspects are being optimized . For instance a capital

intensive company might have an incentive linked to machine

utilization.

Performance incentives are payment made to an employee

or group of employee based on amount of output. The use of

performance incentive policies is premised on the belief that

output can be measured and performance by workers it used

dated back to the era of the scientific management movement

championed by Fedrick Winslow Taylor who argued passionately

for the use of incentive wage system as a way of getting more

output from the workers. It was also aimed at combating

“soldering” or boondoggling” which was a practice of deliberate

restriction of output by workers on the job as at that time. Taylor

believe that workers could always exert greater efforts if they were

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to be paid a financial incentive based upon the number of units of

work they were able to produce. He then developed the

differential rate system which gives a worker a lesser piece rate e

.g #1.0 per piece if he produced less than the standard amount of

output required by so doing; individual workers are motivated to

produce greater output.

In every organization large or small private or public

enterprises human resources (employees) are always the pillar of

the success of the organization. The human elements have their

individual drives desires needs wishes and similar forces which

they intend to satisfy when they are coming into an organization.

The satisfaction or non-satisfaction of these needs by the

organization has an impact on the behaviour or performance of

the employee and eventually on productivity.

The usefulness of good incentive policies which leads to

motivation of the employee cannot be over emphasized. Every

organization depends on motivation among other factors for the

attainment of their objectives. The monetary incentives like

bonuses wages salary increment e t c to put more effort in

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their work which help to improve the level of productivity in both

private and public industries.

Many a time the most concern of employer is to make the

employee to contribute to the attainment of organizational

objectives but they should know that if the employees are not

happy with the management of the organization there will be a

very low rate of production in the organization that is why Hekina

and Jones (1967) page 120 visualize that employees should be

seen and valued as assets for the allocation of organizational

resources. This project will be based on the impact of

management incentive policies on workers‟ productivity using

Dangote cement factory obajana kogi state as a case study.

1.1 STATEMENT OF PROBLEM

Most incentive plans are designed to assist in increasing

efficiency in the organization. However obtaining employees

acceptance of an incentive system may be difficult at the onset.

There may be fear that the plan will lead to a speed up layoffs or

reduce wage can cause workers resistance.

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Most employers do different things for instance ranking of

people contest performance appraisals production teams and

departments shifts commission pay etc. all this are believed to

enhance performance. Some researchers think it does the opposite

instead of trying to use the external motivation (something outside

the work itself such as promised rewards or incentives) to get

higher levels of performance from people. Employers will be better

served by studying the organization as a system. Employers

demand results. Without good result organization will find it

difficult to survive. Managing incentive policies is a requirement for

higher productivity.

Consequent upon a systematic survey of the constraint

inimical to the success of management incentives policies

1. To what extent has incentive policy affected workers

productivity?

2. What is the purpose and importance of these incentives?

3. What is the effect of the absence of these incentives?

4. What is the way out?

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1.2 OBJECTIVES OF THE STUDY

Good incentive policies when put in place motivate workers

and make them happy and happy workers are often productive.

Good management incentive could be financial or non financial in

nature. Financial incentive happens to be the most important of

the incentive schemes and it includes wages and salaries profit

sharing scheme etc.

This researcher shall by this study therefore beam search

light on various aspect of management incentive policies vis-à-vis

productivity with a view to achieve the following objectives among

others.

i. To examine the nature and feature of various incentive

schemes

ii. To examine the usefulness and purpose of incentive in an

organization

iii. To examine problems associated with individual incentive

plans

iv. To make relevant recommendations based on findings.

1.3 RESEARCH QUESTION

i. To what extent does money motivate employee?

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ii. How do workers respond to different incentive?

iii. How does management incentive policy impaction workers

productivity?

iv. How can workers implement or improve incentive system in

their work place?

1.4 SIGNIFICANCE OF THE STUDY

The significance of this study cannot be over emphasized. It

is particularly useful to the organization in question Dangote

cement factory obajana and to other organizations. It will serve as

a guide to show the different incentive scheme and packages

organizations can adopt as well the need to inculcate the principle

of responsibility motivation and fairness in every organization.

The research work will also be useful for academic purpose

in the sense that it is an improvement on past academic work of

other researchers on the subject of management incentive policies

vis-à-vis employee productivity. It also serves as a reference point

for subsequent researchers.

The need for the study therefore becomes stronger and

consequently the desire to find out how and to what extent

effective incentive policy could help in increasing workers

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productivity. Above all this research work is significant to the

society at large as it includes the need for efficiency and

effectiveness which will encourage growth and development.

1.5 SCOPE OF THE STUDY

This study will cover the impact of management incentive

policies on workers‟ productivity in Dangote Cement Factory

Obajana located in Kogi State in North central region of Nigeria

within the period of the year 2013.

1.6 LIMITATION

Some limitations that were identified and encountered

in the process of the study include:

i. Financial constraint:- in running around to gather material

for this study considering the economic meltdown money

and other resources where involved delayed the

completion of this work.

ii. Time; - The researcher was constrained by time in

running round for the completion of this project.

iii. Attitude of respondents;- the research found it difficult

initially to source required information from the members

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of staff of obajana cement factory this also delayed the

completion of this work.

iv. Electricity ;- the researcher had a hard time in typing

proof reading printing and editing of this work due to

the incessant seizure and interruption of power supply by

the power holding company of Nigeria .

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REFERENCE

Anderson R. (1963). A Dictionary of Management Term.

Plymorith: McDonald and Evans Ltd.

Asika N. (2004). Research Methodology in Behavioural Sciences.

Ibadan Nigeria: Longman Nigeria.

Simbo A.B. (2009). Human Resource Management. Ibadan

Nigeria: Oluseyi Plc.

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