The Impact Of Incentives And Fringe Benefits On Employee Performance. (A Case Study Of Nigerian National Petroleum Corporation NNPC, Calabar).
Chapter One
Background Of The Study
Incentive programme are design are design to elicit specified types of behavior from individuals and groups who contribute to organizational effectiveness. Money can be powerful and motivating, but the design for such motivational programme is tight with difficulties (Floppo, 1983). The remuneration of personnel is the price of services rendered, and it should be fair as far as it is possible to promote the satisfaction of the employees.
Fringe benefits, also known as employee benefit is benefits in kinds. It is also called perquisitics, perks. They are non-wage compensations provided to employee’s in addition to their normal wages or salaries, and some of these benefits are housing (Employer provided or employer-paid), insurance (health dental, life etc). Disability income protection, retirement benefits, Daycare tuition, reimbursement, sick leave, vacation, social security, profit sharing, Relocation assistance and funding of education.
However, the purpose of these benefits is to increase the economic security of employees which leads to profitable employee’s performance. Going back to history; the Term “Fringe Benefits” was coined by the War Labour Board (WLB) during World War II to describe indirect benefits which industries had devised to attract and retain labour when direct way increase were prohibited.
Statement Of The Problem
Right from the inception of the concept of incentives and Fringe benefits; there has been different opinions about the concept. The concept has not been fully appreciated by some institution due to lack of knowledge.
Over the years, there has been both negative and positive reaction toward the initiation of incentives programme and employees benefits in the organization and how these programmes are managed in order to achieve organizational goals.
These is also poor management of Human Resources in the organization and it is against these background that this work has been carried out in order to create awareness about the role incentives and Fringe benefits plays on employees performance.
Objective Of The Study
The objective of the study is to investigate and ascertain the effectives of incentives and Fringe benefits as a managerial tool for employee’s performance in any organization, especially Nigerian National Petroleum Corporation (NNPC) Calabar Branch and how the strategies can help reduce poor performances in the organization.
This study is also conducted to draw the attention of management to weakness in manpower due to poor management.
Others includes:-
To see if the items that makes up the incentives and benefits has any effect on productivity.
To determine the level of awareness of the organization and it staff about these benefits and how it impact on them.
To see what extent the innovative influence of incentives and benefits are desirable to employees.
Research Questions
Does the awareness of incentives and Employees benefits make employees of Nigerian National Petroleum Corporation Committed to the organization?
Do these benefits enhance employees performance in NNPC, Calabar?
What kind of relationship does incentives and these benefits create between staff (employees and employers) of Nigerian National Petroleum Corporation (NNPC) Calabr?
Are the staff of NNPC (Nigerian National Petroleum Corporation) Calabar satisfied with their working conditions?
Is the management of NNPC Calabar efficient and effective in the management of its Human Resources?
Does the management of NNPC Calabar adequately motivate its workers?
Research Hypotheses
From the objectives of the study, statement of the problem, as well as research questions; Research Hypotheses are conducted formulated.
Ho (Null Hypotheses)
Employees performance is not influenced by how attractive the organizational benefits are.
The awareness of incentives and fringe benefits does not make staff of NNPC Calabar Committed to the organization.
Hi (Alternative Hypotheses)
Employees performance is highly influenced by how attractive the organizational benefits are.
The awareness of incentives and employee benefit could make the staff of NNPC Calabar Committed to the organization.
Scope Of The Study
The study is based on or centered on the impact of incentives and fringe benefit on employees performance and focuses mainly on the workers (staff) of NNPC (Nigerian National Petroleum Corporation( Calabar Branch.
Significance Of The Study
This study when completed will be important to the following people.
The members of the public who wishes to know more about the organization and the tools used to motivate employees performance.
The study is intended to examine the impact of incentives and benefits on workers, and this will enable the researcher to understand and have an in-depth knowledge about the concept under study.
Recommendation that is obtained in this study will be useful to management of NNPC (Nigerian National Petroleum Corporation) Calabar in formulating better policies in the area of motivation, welfare and working conditions of employees.
Another group of people to whom the findings will be useful to, are, the employees and trade unions, as well as Researchers in the field of management.
HISTORICAL BACKGROUND OF NIGERIAN NATIONAL PETROLEUM CORPORATION CALABAR BRANCH
The corporation was fined out of the combination of pressure in 1971. The corporation acquired a 33.33 percent state in the Nigerian Agip Oil Company and 35 percent in satrap, the Nigerian arm of the French Company ELF.
After Nigeria joined OPEC, NNPC acquired 35 percent state in shell-BP, Gulf and Mobil on April 1, 1973. In line with the objective of the government 1977, indigenization decree, the NNPC’s holdings in the oil industry operations in Nigeria increased significantly on July 1, 1979 when the stakes in the Nigerian business of the following Companies were raised to 60 percent, ELF, Agip, Gulf, Mobil, Texaco and Pan-Ocean.
The commercially integrated services of this corporation includes:-
Petroleum Resource Service
The Warri Refining and Petrochemicals Company.
And the Engineering Company of Nigeria.
Responsibility and authority, and establishing relationships, for the purpose of enabling people to work most effectively in accomplishing objectives.
Human Resource Management (HRM)
This is that area of management which is concerned with people at work and their relationship with an enterprise. It applies not only to industry and commerce, but also to all field of employment. The British Institute of Personnel Management, 1980.
Definition Of Terms
These are changes to an employees rate of work, savings or investment caused by the offer of enhanced pay, or compensation. It is also something that motivates performance (Flippo, 1982).
FRINGE BENEFITS
According to FLIPPO, (1982) fringe benefits refer to the extra income or satisfaction or benefits employers gives to its employees to encourage them perform or carry out their task better.
MOTIVATION
This is the willingness or propensity of individuals to act in a certain way Etuk (2002).
MANAGEMENT
This may be defined as the rational process of combining and mobilizing physical, financial and human resources effectively and efficiently with a view to achieving designated objectives of the business. Ibekwe (1980).
ORGANIZATION
According to Etuk (2002), organization is the process of identifying and growing the work to be performed, defining and delegating.
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