THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN
NIGERIA ORGANIZATION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Wendel (1973) described
human resources in his books as consisting of all individuals engaged in any of
the organizations activities regardless of their levels. Human resources from
the above simply means, men and women working for an organization, irrespective
of the post they are holding. However, this went further to emphasis that there
was no demarcation for men and women working for the organization that belong
or do not belong to the human resources of the organization.
Meanwhile, any activity in the organization from the
beginning to the end stage depends on human resources. Therefore, any
organization aiming at achieving some of their goals must ensure not only
maintaining constant and adequate supply of human resources but also ensure
that they were adequately motivated. This is because, the human resources that
are motivated will be answering human resources of the organization without
putting in their best.
James (1946) stated that the effective use of people is
still the key to productivity and your assignment is to motivate people to get
the best of their skills and abilities. He affirmed that organization will
achieve high productivity more than ever before by motivating their workers and
sending them for training.
Morevover,
Ubeku (1983) went further to say that although the task of motivating workers
is vested on the management team as a while but said that managers have more
roles to play. He said that managers, can provide the organization a continuous
day to day coaching, appraisal and encouragement – that the employees will need
more than ever before. He was of the opinion that manager have upper hand in
motivating workers. He further stated that the supervisor who works with his
subordinates on this intimate basis can do much to influence his organizations
programme.
Training and
development of human resources have been considered an expandable luxury in
terms of financial constraints. The growth and development of any organization
depends on its human resources, a specific cost of management to develop
individual skills or a means of developing people for promotion to the next
level of organization leadership. While these views carry some validity of
human resources should be regarded in the large context of trends in society
and the need of changing organization.
In the past,
not much importance was attached to the role or human resources development on
the growth and efficiency of organizations.
No pride of place was given man-power planning and development as a save
way to enhance skills knowledge and capacities of personnel in organizations.
The importance of investing in human resources has become much clear in recent
years because of mounting evidence on the extent of which such investment as an
engine change. Although, human resources management is that sub system of an
organization which is directly concerned with planning, controlling the
procurement, development, compensation, integration and maintenance of the
human resources component of the organization. The effectiveness of this
sub-system will be judged by the way policies and practices affect the
performance and productivity of individual workers will be achieved towards the
realization of the effectiveness of the organization.
Today, one of
the major problems confronting management in an organization is the most
effective way of putting the right position. Management should identify and
provide for its human resources to accomplish its task. The concept of
organizational effectiveness is that which organizations as a social system
give certain resources and means fulfils its objectives without a capacitating
its means and resources and without placing undue strain upon its members. The
means and resources referred to have cannot be personal constituents of the
organization on who the achievement of effectiveness in the organization is
based through their increased performance and productivity. The existence of a
conducive and carefully designed human resources management policies and
practices appear inevitable for the attainment of these goals.
Human
resources are the most vital of all the factors input of organization, for
without it, all the other factors have to wait. Due to the immense
contributions of man power programmes, the government of Nigeria has set
up many institutions to help in management education in the country.
The National
man-power board is responsible for the periodic appraisal of requirements for
man power in all occupations and the development of measures for in service training of
employed man-power both in the public and private sectors. Among these
institutions is the industrial training fund (ITF) on which these research work
is carried. Industrial training fund was
established to promote and encourage the acquisition of skills in industry and
commercial with a view of generating a pool of indigenous trained man power
sufficient to meet the needs of the economy.
Others include
the administrative staff college
of Nigeria (ASCON) the
Nigerian Institute of Management (NIM) and the Center for Management
Development (CMD) it is simply defined as the potential available organization from
the people who work in it.
To fully
achieve this its corporate objectives, an organization must establish it human
resources base adequately in both quantity and quality. The effects of human
resources on the economic and industrial development has been underscored by
Paul G. Hoffinan who said of all the resources required economic development of
human resources appear the most strategic if the countries are to achieve self
sustaining growth.
Furthermore,
in reaction to the felt need for the development of human resources in this
country.
The federal
government established the training agencies;
(i)
Industrial Training Fund (ITF) in 1971.
(ii)
The Center for Management Developm,ent (CMD) in 1973
(iii)
The Administrative Staff
College of Nigeria (ASCON)
in 1973.
(iv)
Six Federal Training Centers (FTCS) scattered in
different locations across the country Lagos.
1.2 STATEMENT OF THE
PROBLEM
One of the major problems
confronting management in any organization is the most effective way of
matching people with jobs. This calls for man power planning programme.
Many organizations fail to progress due to their inability
to train and develop their work force. Lack of adequate skills and knowledge,
which are required to work and attain the major organizational objectives,
constitute a cog in the wheel of achieving them. There has been criticisms from
different works of life both within and outside the country about the
inefficient performance of our parastatals. The personnel officer should
understand and identify certain conditions that will serve as pointers for the
need for training.
As noted by Likent (1967) all activities of any enterprise
are initiated and determined by the persons who make up the institution. Plants,
offices, computer, automated equipment and all these that a modern firm uses
are unproductive except for human efforts and direction. The researcher wants
to identify the major problems and proffer a suggestion for the progress of the
entire organization.
1.3
PURPOSE OF THE STUDY
The paramount aim of this
research work as could be seen from the title and with the observed problems in
mind is to ascertain the effects of human resources development on
organizational growth. A case of industrial training fund (ITF) Enugu Area
office in essence it seeks to;
(i)
Identify various human resources development plans and
programmes.
(ii)
To identify
industrialists and understand the potentials available to them from the people
who work in the organization.
(iii)
Furthermore, this will help to serve the purpose of setting
standards for formulating personnel policies and ways of implementing them
regards being hard to the following.
The cultural
framework of the enterprise and the individualistic differences of the
employees for whom they are meant. With the foregoing, organization will be
able to understand the best optimum population of personnel qualities and mode
of increasing their staff and knowledge to active organizational growth and
effectiveness.
1.4 SCOPE OF THE
STUDY
This research work was
intended to cover the effects of human resources development on organizational
growth with the industrial training fund, Enugu Area office as a case study. Various
attempts were made to covert the historical background of industrial training
fund, the purpose of establishing it, the problems and prospects thereof. The
study includes the functions, sources of fund objectives, grants, and
reimbursement scheme of industrial training fund inter-alia.
1.5 RESEARCH
QUESTIONS
In order to elicit
information from respondents, the following respondents, the following research
questions were generated.
(i)
What are the
employers/employers relationship in attainment of organizational growth.
(ii)
In which areas of industrial training fund (ITF) training
activities do you think human resources development programme has improved.
(iii)
What are the factors responsible for the poor performance of
the business organization?
(iv)
What are the importance of human resources in a business
organization.
1.6 RESEARCH
HYPOTHESIS
Webster New International
dictionary defines (Hypothesis as a basic for reasoning a supposition
formulated from proved data and presented as a temporary explanation of
occurrence, as in science in order to establish a basis for further research.
The purpose of hypothesis therefore is to enable one make inference about
something.
In a continued effort to reach an appreciable equilibrium
in the effects of human resources development on organizational growth, the
researcher employed a selected statistical tools to enable us reach a fair
conclusion.
In the light of the above therefore, the following major
hypothesis have been formulated. Hypothesis may be said to mean a tentative
statement made by a research (subject to tests) with a view to forming basis to
study a phenomenon, researcher
situational dentition.
These hypothesis when tested can confirm or refute the
extent at which these advanced statement can be upheld. It can equally place
the researcher on the solid ground of drawing his conclusions and subsequent
recommendation.
In order to determine the effectiveness of the effects of
human resources development. On organizational growth, it is necessary to list
the hypothesis below.
Null hypothesis Ho: human resources development does not
affects organization growth.
Alternative hypothesis Hi: Human resources development affects
organizational growth.
Null hypothesis Ho: Human resources development is not most
important sub-system on organizational growth.
1.7 SIGNIFICANCE OF
THE STUDY
Generally speaking, the
effectiveness of any organization irrespective of its nature, is measured by
one significant and objective criterion, namely the quality of its product in
services is to a large extent a function of the caliber of human resources or
man power component of the organizations production resources.
This research work is significant to both the management
(employers) and the labour (employees). Secondly
a close look at the work carried out will reveal a significant effect of human
resources development on the organizational growth. Moreso, the research work
will serve the role of shaping the organizational policies on human resources
(personnel) for the overall attainment of the set objectives. It is only when
the human resources is adequately qualified for the job to be performed that we
can hope that the material resources in put can be effectively allocated and
usefully utilized in the most optimum manner. If personnel administration is to
be successful, management must give it sincere support in order to sustain organizational growth. The practical relevance of this study lives in
the fact that no organization can achieve its set objectives without competent
employees. Hence the issue of training and development becomes a central
pre-occupation of any organization out to achieve and sustain efficient operation.
In essence, this study is likely to be of immense value not
only to industrial training fund (ITF) but also to all organizations
irrespective of size, background and activity.
Also the result of this study will hopefully sharpen the ground of the
problems besetting human resources development in organization and leading to a
more effective grip of the importance of well-developed manpower programme.
1.8 LIMITATION OF
THE STUDY
Analyzing the efficient
human resources development an organizational growth is not a shallow topic to
be handled haphazardly, it is not only
technical also sensitive and broad. For the purpose of this project, it is
restricted to the business concern. Also
for want of time resources, industrial training fund (ITF) Enugu Area office is
sampled out as a base for the research work, so many factors are deemed to
militate against quicker and easier completion of the work. These include among
others.
COST: Inadequate fund may
stunt this work beyond our taste, lack of fund may also affect not only the
period of the research but also its quality. To exalt everything about
analyzing the effects of human resources
development on the organizational growth and come out of legacy for the
posterity one need to travel far and near.
TIME: Time is as costly as
money, it is even easier facing financial problems than time, time lost is
hardly regained. Financial markets do exist but time existed for time, with the
school academic (leader, the period for the research work is too short. Putting
other courses into the budget.
RELUCTANT TO COOPERATE:
The management of some business organization are too reluctant to disclose the
required information and Moreso when it comes to disclosing exposing the
organizational books record. The idea equally affects the quality of facts
given in the research some do pith pact to suit the firm.
1.8 DEFINITION OF
TERMS
TRAINING: The process of
learning the skills that you need to do a job.
COG: A person who is a
small part of a large organization.
RECRUITMENT: To find new
people to join a company, an organization.
STRATEGY: A plan that is
intended to achieve a particular purpose.
INEVITABLE: Something that
you cannot avoid or prevent.
INTEGRATION: The act or
process of contributing two or more things together so that they can work.
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