The Impact Of Management Incentive Policies On Worker’s Productivity

The Impact Of Management Incentive Policies On Worker’s Productivity

Abstract

employee productivity and management incentive policies. It is impossible to overstate the impact that effective management incentive strategies have on workers’ productivity. The majority of incentive programs aim to boost organizational efficiency. However, it could be challenging to win the employees’ acceptance of the incentive scheme at first. The necessity to educate professionals and labor employers about the need of high productivity through effective incentive strategies has made this research necessary. The researcher focused their attention on a number of hypotheses regarding the value of incentives and the function of an effective incentive program in an organization. The management should focus more on individual incentive schemes whereby rewards would be based on individual effort. Issues with individual incentive plans were also listed with a view to offering remedies to those issues in the form of recommendations. Different organizations have different incentive systems, but to what extent have these packages increased productivity? This research effort is extremely valuable as a starting point for further studies and is especially beneficial to any firm that aspires to high productivity. While investigating both primary and secondary data sources, the descriptive research approach was used. The study’s population was 187, and the Yaro Yamane method yielded a sample size of 127. The study showed that effective incentive programs motivate employees, and that satisfied employees are more productive. The study also showed that providing employees with financial incentives is crucial for improving performance. Money, however, is not everything; other elements are as significant.

First Chapter Introduction

In other terms, an incentive is a quantity of money provided on top of the base rate that the company pays to make sure that its most crucial production features are being optimized. An incentive is a type of financial encouragement that recognizes a specific contribution made by the work force. A capital-intensive corporation, for instance, might have a bonus tied to machine usage.

Payments paid to a person or group of employees based on production are known as performance incentives. The use of performance incentive policies dates back to the era of the scientific management movement, which was championed by Fedrick Winslow Taylor. Fedrick Winslow Taylor fervently argued for the use of incentive wage systems as a way to get more output from the workers. Additionally, it was intended to fight “soldering” or “boondoggling,” a practice at the time in which employees purposefully limited their productivity. Taylor thought that giving employees a cash incentive based on the quantity of work they could accomplish would always motivate them to work harder. He later created the differential rate system, which incentivizes workers to produce more output by giving them a lower piece rate, such as #1.0 per piece, if they produce less than the minimum amount of production necessary.

Human resources (employees), whether large or little, private or public, are always the cornerstone of the success of the firm. When entering an organization, the human elements have their own unique motivations, needs, wants, and similar factors that they hope to satiate. The organization’s ability to meet or not meet these needs has an effect on the employee’s performance or behavior, which ultimately affects productivity.

It is impossible to overstate the value of effective incentive systems in motivating employees. To achieve its goals, every organization needs on motivation in addition to other elements. Bonuses, pay, salary increases, and other monetary incentives encourage employees to put in more effort, which raises productivity levels in both private and public sectors of the economy.

Employers frequently want their employees to contribute to the achievement of organizational goals, but they should be aware that this will result in a very low rate of production in the organization if the workers are unhappy with the management. For this reason, Hekina and Jones (1967), page 120, illustrate the importance of treating employees as assets when allocating organizational resources. This project will use the Dangote cement facility in Obajana, Kogi State as a case study to examine the effects of management incentive strategies on employee productivity.

1.1 Statement of the problem:

The majority of incentive programs are meant to help a business become more efficient. However, it could be challenging to win over staff to such incentive structure at first. Resistance from the workforce may be brought up by worry that the proposal will hasten layoffs or result in lower wages.

Most organizations implement a variety of practices, including employee rating, competitions, performance reviews, production, teams and departments, shifts, commission income, etc. All of these things are thought to improve performance. Instead of attempting to employ external motivation—i.e., factors other than the task itself—to motivate people to perform at a higher level, some academics believe it really has the opposite effect. Employers will benefit more if they examine the organization as a whole. Employers expect performance. Without successful outcomes, organizations will struggle to thrive. Higher productivity requires managing incentive policies.

Following a thorough analysis of the factors that are harmful to the effectiveness of management incentive policies

1. How much has the productivity of employees been impacted by incentive policies?

2. What are the goals and significance of these rewards?

3. What are the results of these incentives not being present?

4. How do I get out?

1.2 Study’s Objectives

When implemented properly, good incentive policies inspire employees and make them joyful, and joyful employees are frequently productive. Financial or non-financial incentives are both acceptable forms of good management. The most significant incentive program is the financial one, which covers wages and salaries, profit-sharing plans, etc.

In order to accomplish the following goals among others, the researcher will use this study to shed light on various aspects of management incentive systems in relation to productivity.

i. To investigate the characteristics of various incentive programs.

Examining the value and intent of incentives within a company, as well as the issues related to individual incentive plans.

iii. To offer pertinent advice in light of findings.

1.3 QUESTION FOR RESEARCH

i. How much does pay influence employee motivation?

ii. How do employees react to various incentives?

How does the management incentive system affect employees’ productivity?

iv. How can employees apply or enhance the incentive system at their place of employment?

1.4 The Meaning Of The Study

We cannot emphasize this study’s importance enough. For the organization in issue, Dangote Cement Factory Obajana, as well as for other organizations, it is especially helpful. It will act as a guide to demonstrate the many incentive plans and packages that firms can use as well as the requirement to instill the values of accountability, inspiration, and fairness in every organization.

The research will also be helpful for academic purposes in that it advances previous academic work on the relationship between management incentive systems and worker productivity. It also provides future scholars with a reference point.

The urge to learn how and to what extent effective incentive policies could aid in boosting worker productivity grows along with the study’s necessity. This research is important for society as a whole because it addresses the demand for efficacy and efficiency, which will promote growth and development.

1.5 DEFINITION OF THE STUDY

This study will examine the effects of management incentive programs on employees’ productivity at the Dangote Cement Factory Obajana in Kogi State, Nigeria’s North Central Region, during the year 2013.

Limitation 1.6

Following are a few constraints that were noted and experienced during the course of the study:

i. Financial constraints: Since money and other resources were needed to obtain the necessary information for this study due to the economic crisis, this work’s completion was delayed.

ii. Time: The researcher’s ability to complete this project was limited by the amount of time available.

iii. Respondents’ Attitudes: The research found it initially challenging to obtain the necessary data from the employees of the Obajana Cement Factory, which also caused a delay in finishing this job.

iv. Electricity: The researcher had difficulty typing, proofreading, printing, and editing this work as a result of the power holding company of Nigeria’s constant seizure and interruption of the power supply.