EFFECT OF NON-MONETARY
INCENTIVES ON EMPLOYEES IN NIYYA FOODS AND DRINKS CO. LTD. KADUNA
CHAPTER
ONE
INTRODUCTION
1.1
Background
to the Study
All
organizations are concerned with what should be done to achieve high level of
productivity through staff motivation using the right kind of incentive. Most
organizations in the past have been using financial incentives but their
workers are still agitating for increment in salaries. Consequently the effect
of non financial incentive becomes a burning issue in human resource management
(Okoh, 2008).
The
issue of adequate motivation and consequently workers productivity is a product
of a person’s set up of needs, goals, drive and experience. By implication,
this means that factors which govern motivation, job satisfaction, workers
productivity and attitude to work differ from one society to another.
However,
the entire issue of the implication of adequate motivation on workers productivity
is embedded in the various theories of motivation.
People
are motivated by various factors at different times, according to
Wilkinson
et al, the first factor is the combination of the individual perceptions of the
expectations other people have of them, and their own expectations of themselves.
This happens because people come into work situations with various
expectations.
People
work together in large organisations like bank, factory where they are expected
to follow orders, which they may not approve of. In addition, they may have to
obey instruction from supervisors they had no hand in selecting. This is the
type of situation where the worker might have no opportunity for
self-expression. The basic question that now arises, relates to how to create a
situation in which workers can satisfy their individual needs while working
towards organisational goals. How can workers in corporate organisation in Nigeria
who’s workers feel that their salaries are low when compared with their contemporaries
in other organisation?
As
such a lot of theoretical concept, principles and techniques of management have
evolved in response to these challenges/ but most scholars suggest that more
conceptual and empirical work is required to show the link between financial
and non financial incentive and staff productivity is still vague but some
studies have documented in their work that financial incentive is readily
perceived as having a high instrumental value that makes putting forth extra
effort worthwhile and its has a long term effect in terms of labour turnover
rate because of comparative value for alternative employment while non
financial incentive has less initial impact as the pragmatics of financial
gain, they seem to have a steady, sustainable impact(Egbe,2008).
Despite
the growing body of literature and empirical study on the effect of non financial incentive on workers
productivity, the subject matter still remains complex. Hence, the need to
undertake a survey on the effect of non
monetary incentives on staff productivity in Niyya food and drinks company Ltd
Kaduna.
1.2
Statement
of the Problem
Most
organizations in Nigeria are constraint with the problem of using non
performance based element like salaries to compensate it staff as against
performance-related pay structure which has hamper productivity because it does
not make worker put in extra effort in their work. This is so because their
compensation is not based on incentive schemes that elicit additional effort of
workers sequel to unfriendly government legislation on wages clause and
bureaucratic inefficiency. Hence the need for the research to examine the
effect of non monetary incentive on
employee productivity in Niyya Food and drinks Ltd Kaduna.
1.3 Objectives of the Study
The
main objective of this study is to examine the effect of non monetary incentive
on staff of Niyya food and drinks Kaduna. Other Specific objectives are to:
i.
Assess whether staff
remuneration is based on incentive schemes that motivate them.
ii.
Examine all financial
incentives given to staff and their effect on worker productivity.
iii.
Identify non financial
incentives used in boosting staff productivity.
iv.
Evaluate out the constraints
militating against incentive scheme Niyya Food and drinks and make
recommendations to the identified problems.
1.4 Significance of the Study
This
study brings to light the effect of non monetary incentives on staff
performance in organization. The study may therefore be beneficial to the organization
understudy in area of policy formulations as regard staff incentive schemes and
remuneration.
To
education, the study may contribute to already existing knowledge on the effect
of financial and non financial incentives on workers’ performance.
Finally,
to those in academics and human resource researches, the study may serve as a
springboard for further investigations.
1.5 Research Questions
This
study provide answers to the following
research questions:
i.
Is Niyya Food and
drinks limited’s remuneration based on incentive scheme that motivate staff
performance?
ii.
What kind of financial
incentive do Niyya food and drinks give to its workers and what are their
effect on workers productivity?
iii.
What kind of non
financial incentive do Niyya food and drinks use to boost workers productivity?
iv.
What are the constraints
militating against Niyya Food and drinks incentive scheme and how can these
constraints be overcome?
1.6 Scope of the Study
The
study covers an empirical investigation of the effect of non monetary motivation on staff productivity
in Niyya Food and drinks. The main scope and time frame for this investigation
covers Niyya Food and drinks incentive schemes from 2006-2011.
1.7 Definition of key Term
The
key terms below were used in this study
Financial Incentives:
Monetary reward or compensation use to motivate workers.
Non Financial Incentives:
Other incentives apart from monetary rewards.
Performance Incentive:
Rewards that motivates worker to put in more efforts.
Productivity:
The rate at which employee work and their yield in their organization.
Adequate Motivation:
These are factors (familiarity, concern and driving
force),
which exist or are provided in a work situation either physically or
psychologically
which determine the input and productivity level of the worker.
Implication of
Motivation: The term could be defined as the work disposition
of an employee, which affects the mode of doing his work.
Intimacy:
Intimacy or Familiarity could be described as the feeling of warmth and
friendliness based on interpersonal relationship among people.
Consideration:
Consideration or Concern refers to a situation where both their colleagues and
managers treat staffs with understanding. In this case, there is both a
personal and human touch in dealing with workers,
Thrust:
Thrust or driving force deals with leadership by example as a means of
motivating subordinates. Leadership in this context takes personal interest in staff
while also displaying a high degree of professional competence and dynamic
leadership qualities.
Morale:
Moral refers to staff emotional and mental level of zeal.
Productivity:
Productivity is the relationship between the amount of one or more inputs and
the amount of outputs from a clearly identified process.
Permanent Staff:
Permanent staff refers to those experienced member of staff who irrespective of
their ages have been working for a minimum period of five years
Contract Staff:
Members of staff who irrespective of their academic
accomplishments
and status are regarded as adhoc staff.
Management Staff:
Management staff refers to those member of staff who
irrespective of
their ages have attain grade level 6 and above.
Training:
The process of increasing knowledge and skills of staffs in doing their job.
Development:
The process of adding to the skills of workers, improving their general
knowledge and altering their attitudes.
Productivity:
A rate at which workers produce goods or services.
Human capital: Workers’
skills and abilities considered as resources to business.
H. R. M:
An acronym for human resource management.