AN
APPRAISAL OF THE RELEVANCE OF FINANCIAL INCENTIVES TO WORKERS MOTIVATION
(A CASE STUDY OF NATIONAL BOARD FOR
TECHNICAL EDUCATION, KADUNA)
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the word of Armstrong (1988), the process of motivation is initiated
by the conscious and unconscious recognition of an unsatisfied need. A goal is
then established which, it is thought will satisfy the need and of course
action is determined that lead towards the attainment of a goal. Management should provide incentive schemes and pay workers
on the basis of the result they achieve on the job instead of the more physical
routine performance series activities and to retain them on their job making
them feel satisfied, a motivationally-oriented wage system must adequately
distinguish “Naira” wise between the different levels of efficiency for the
people performing essentially job and different job categories and
specialization.
In every organization, the management emphasis on high
productivity, quality of services, quality workmanship, industrial peace,
cooperative labour etc. On the other hand, employees need fair wages, job
satisfaction, good working conditions, participation in decision making, self
recognition and opportunity for advancement.
Organizations and managers have suffered tremendously in trying to
utilize their human resources, they usually encounter frequent industrial
conflicts and several unresolved agitations by workers and different categories
of employees basically steaming from one form of dissatisfaction or the other.
The main point of misunderstanding between management and employees/workers in
most cases is found in the arrears of inadequate and inequitable monetary
rewards.
Financial incentive as we all
know is a process of guiding the conduct and influencing people so that they
strives individual or group towards the achievement of group goals. Every
employee comes to an organization with one motive, to earn a living and
financial incentive play a vital role in the lives of these employees. Taking
away financial incentive might jeopardize this individual or the group
interest. Management on the other hand, established the organization for the
purpose of return of investment and profit making, high productivity, quality
of services, industrial peace, cooperative labour and to remain a going
concern. Skinner B. F. (1953), states that by providing properly scheduled
rewards is possible to influence behaviours.
The objective and purpose of this study is to examine whether or not
financial incentives has contributed to workers performance and industrial
harmony in National Board for technical Education. This research is by no means
exhaustive but will help the establishment to take a second look that financial
incentives has a significant role to play in maintaining industrial peace,
increase productivity and boost the morale of the employees in an
establishment.
It has generally been observed and noted that in a sample group of
workers performing the same type of job, some do it better than others. This
observation will raise and arouse the notion or questions or psychological
tendencies, interest and differences in performance. One school of though holds the view that
“differences in performance reflect varying characteristics, abilities and
skills on the part of ‘workers’. F.B. Skinner, (1985), an Industrial
psychologist argues that differences in performance of workers doing the same
kind of job, might be as a result of
extra monetary rewards attached to the job, conductive working environment or
friends they meet in the workplace.
As a result of these possibilities, recognition and thorough
understanding of workers needs/wants before adopting any form of motivational
techniques such as financial rewards (money) human relations, conducive,
working environment, leadership and good supervision among others, becomes
apparently important since these factors has different influence and impact on
different categories of workers and individuals.
The complexity of human nature, expectation, urges and drives/motives
make the art of motivation of workers and employees a critical and complex
point for consideration. A definite answer could not be reached since people
differ in characteristics, background, traits, and needs. Thus it becomes
imperative for the manager to incorporate positive motivational incentive
programmes to motivate workers behaviour towards achievement of predetermine
goals and objective of the organization.
Motivation is a very important issues in managing people. A happy
employee is said to be a motivated employee. So it is important for managers,
especially human resource managers to figure out what motivate an employee to
excel at his/her work. Workers in any organization need something to keep them
working. Most times the salary of the employee is not enough to keep him/her
working for an organization due to economic factors and other variables. Sometime
also just working for salary is not enough for employees to stay in the
organization. An employee needs to be adequately motivated, the absence
motivation scheme results to deteriorate in quality of work/performance either
on individual or at corporate level. Even in conductive work environment it is
generally observed that while some people work willing, others work very
willing. The question then is what is responsible for people’s motives and
attitude to work.
By definition, managers work with and through people to get things done.
But people are complex and their motivations are not always easy to understand.
It involves the unique feelings, through past experience of individuals as they
share a variety of relationships within and outside the organization. Many
theories exist about motivation and most of them differ in what they suggest
managers should do to obtain the most effective performance from their
employees. Most successful managers, however have learned by experience that
people are generally very responsive to praise and encouragement-expressed not
only in words but also in actions such as financial rewards-and they need to
feel successful in their work in order to give their best effort to the
organization. Managers who find the key to their employees’ inner motivations
can tap an immense source of productive energy.
While motivation is essentially a personal experience, managers, in
particular, should be keen to find reliable links between motivation and
effective performance. They should also be concerned with creating the
conditions under which organizational and personal goals may be harmonized. The
key feature of motivation is that it determines the extent to which an
individual desires to place his/her knowledge and skill at the disposal of
others, and more than that to push off the effects of obstacles and
difficulties in so doing. This project work examines the motivating power and
relevance of financial incentive in boasting the performance of workers.
1.2 Statement of the Research
Problem
The general concept of financial incentives is one form of motivating
techniques and its indispensability for achievement of desired organizational
goals and increase productivity and reward for performance has been a subject
of controversy over the years globally generating diverse research arguments,
criticisms and assumptions especially in developing country like ours.
Although many researches had been conducted on this concept, there are
many avenues not yet explored and considered as per the complexities to the
time understanding of what actually motivate the individuals in the work place.
Organizations and managers have suffered tremendously in trying to utilize
their human resources, they usually encounter frequent industrial conflicts and
several unresolved agitations by workers and different categories of employees
basically steaming from one form of dissatisfaction or the other. The main
point of misunderstanding between management and employees/workers in most
cases is found in the arrears of inadequate and inequitable monetary rewards.
One of the problems of workers in National Board for Technical Education
is financial incentives which led to workers dissatisfaction and low
productivity. It is evident here that the mode of financial incentives used by
National Board for Technical Education has not been effective.
Secondly, there
is correlation between financial incentives and workers
productivity
in National Board for Technical Education which the
management is
not implementing.
Thirdly, the problems militating against National Board for Technical
Education staff is financial incentives because there are not adequately
provided. Another problem is delay in paying those who have performed
their
duties.
1.3 Research Questions
Even in most conductive work environment, it is generally observed that;
while some people work willingly, others work unwillingly, the question then is
what is responsible for people’s motive/attitude to work? As one psychologist
puts it, “One of the most powerful positive tools that motivate people at work
is financial incentives (money) at the prime stage.
To aid the
research work, the following research questions were drawn;
–
What types of motivation or financial incentive do workers
received at
National Board for Technical Education?
– Is there any correlation
between financial incentives for workers and productivity in National Board for
Technical Education?
– What are the problems
militating against financial incentives of staff of National Board for
Technical Education?
–
How can these weaknesses be overcome to enhance motivation
and
productivity National Board for Technical Education?
1.4 Objective of the Study
The objective
of this study is to examine and highlight the negative impact of financial
incentives to National Board for Technical Education staff. – It is expected that the findings of this
research will be beneficial to policy makers, the Nigerian Public Sector and National
Board for Technical Education.
– To analyze the objectives
of this research to know whether or not financial incentives are the
highest/greatest motivators to workers performance in National Board for
Technical Education.
– The study is aimed at adding to the
existing body of knowledge on the
subject matter
and serve as a useful reference source for researchers in the field.
– This study is not intended
to find faults with any motivation techniques adopted by the National Board for
Technical Education or negate the idea but to establish the effects and
appraisal of financial rewards to their employees contribution in terms of
productivity/efficiency being an indispensable management tool for achieving
desired organizational goals and objectives.
1.5
Hypothesis
The hypothesis
below were made in relation with stated problems and objectives of the study
i. Lack of financial incentives has been
the major impediment to workers motivation in National Board for Technical
Education.
ii. Financial incentive has been the major
boost/influence to workers motivation in National Board for Technical
Education.
iii. Financial incentive can be
considered by management as a indispensable tool for workers motivation in
National Board for Technical Education.
1.6
Significance of the Study
Every organization in Nigeria today whether profit or non-profit
oriented, is most concerned continuously with how to meet its organizational
goals. A successful motivation strategy would result not only through the
attainment of corporate objectives but through individual recognition or
perceptions, aspirations, ability, skills and motives, desires and
satisfaction. These of course, will also enhance increase in aggregate output
level. Nigeria today moved far ahead from period when inducement or threat of
any kind seen as effective tools of management for rapid development and
growing economy.
The researchers’ choice on the topic
“Appraisal of the relevance of financial incentive to workers motivation”
therefore emanates from the fact that early available research on the topic
seems to have conducted based on developed nations with totally different socio
economic, political and other background different from ours which to some
extent still is under-affluent economy.
We have witnessed in the past few years in our industries, the increased
rate of industrial disharmony (strike, lock-out etc) with frequent demand for
higher wages more than other countries both in the public and private sectors
respectively. This of course indicates that a lot is yet to be done in human
resource management particularly in the aspect of employee’s motivation
(Oshomole, 2007). This study therefore is meant to contribute to the unresolved
controversy as to whether or not financial remuneration is a positive incentive
in motivating human behaviour at work.
1.7 Methodology
For the
purpose of gathering information for this research project, secondary method of
data collection was used.
1.7.1. Sources of Data
Collection;
The secondary
methods of data collection was used. Secondary data was used by administered
questionnaire on the staff of National Board for Technical
Education,
Annual Report, Staff Manual, Workshop, Seminar papers,
Conferences,
Paper presentation at NBTE floras and journals, Internets,
policy Papers
among others were consulted.
i.
Population and Sample Size
The total
population and staff strength of National Board for Technical Education Kaduna
constituted a population of 308 workers and this number served as the
population and sample size of this study.
ii.
Sampling Technique
A random
sampling method was employed for this study whereby questionnaires was
administered to a cross-section involving management staff, senior/junior staff
of National Board for Technical Education in different Department/Divisions
iii. Questionnaires
Administered
Questionnaires
was designed and administered to the different categories of National Board for
Technical Education workers. Questions were intended to obtain information
about the authenticity of the relevance of financial incentives in motivating
National Board for Technical Education employees.
1.8 Scope and Limitations of the Study
This study is about the appraisals of financial incentives to workers
motivation of National Board for Technical Education as a case study. The study
therefore is limited to National Board for Technical Education only. In the
course of carrying out this research work, the researcher encountered some
problems among which are:
i.
Accessibility to data
The researcher
could not have full access to some of the information needed from the
management due to the fact that the custodians of such information could not be
reached.
ii.
Time Wastage
Bureaucratic
bottlenecks created a big problem because of continuous visit to the
establishment due to unavoidable absence of people in the right position that
gave birth to unnecessary time wastage and delays in completing the project
work.
iii. Financial
Constraints
Much spending
going up and down without contacting the appropriate personnel on seat, typing
cost and increase in materials needed. Despite all these constraints.
iv. Employees
Attitude
Despite the
fact that a questionnaire was designed to eliminate bias and misunderstanding,
some employees refuse to complete the questionnaires form, due to nonchalant
attitude and forgetfulness.
1.9 Definition of
Terms
i. Intrinsic
Motivation
Intrinsic and
Extrinsic motivations refers to motivation that is driven by an interest or
enjoyment in the task itself and exist within the individual rather than
relying on any external pressure. While
intrinsic motivation has been studied by social and educational psychologists
since the early 1970s. research has found that it is usually associated with
high educational achievement and enjoyment by students. Expectations of
intrinsic motivation have been given in the context of Fritz Heider, (1873),
attribution theory. Bandura, (1980),
work on self-efficiency and Dedi and Ryan (1964), cognitive evaluation theory
(see determination theory) students are likely to be intrinsically motivated if
they.
i Attribute their
educational results to internal factors that
they can control (e.g. amount of effort they put in).
ii. Believe they can be
effective agents in reading and reaching their desired goal (e.g. the result
are determined by luck but hard work).
iii. Are interested in
mastering a topic, rather than just rote-learning to achieve good grades.
xii.
Extrinsic Motivation
This type of
motivation comes from outsides of the individual. Common extrinsic motivations
are rewards like money and grades, coercion and threat of punishment.
Competition is in general extrinsic because it encourages the performer to win
and beat others not to enjoy the intrinsic rewards of the activity. A crowd
cheering on the individual and trophies are also extrinsic incentives. Social
psychologist has indicated that extrinsic rewards can lead to
over-justification and a subsequent reduction intrinsic motivation.