CHAPTER
ONE
INTRODUCTION
1.1
Background
of 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.
Consequently the effect of financial incentive becomes a burning issue in human
resource management.
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
incentives 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 it’s has a long term effect in terms of labour turnover rate
because of comparative value for alternative employment. financial incentive
has high initial impact on the pragmatics of financial gain, it seem to have a
steady, sustainable impact.
Despite
the growing body of literature and empirical study on the effect of financial
incentive on workers’ productivity, the subject matter still remains complex.
Hence, the need to undertake a survey on the effect of financial incentives on staff productivity in Nigeria
Postal Services Kaduna.
1.2 Statement of problem
Nigeria
Postal Services (NIPOST) like other public enterprise is 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 to examine the
effect of financial incentive on staff productivity in Nigeria Postal Services
Kaduna.
1.3 Objectives of the Study
The
central objectives of this study are to examine the effect of financial incentive on staff productivity in NIPOST
Kaduna.
Specifically
the study is set out to:
i.
Identify whether NIPOST remuneration is
based on incentive schemes that motivate staff to perform.
ii.
Examine all financial incentives NIPOST
give to it staff and their effect on worker productivity.
iii.
Identify the most germane financial
incentives used in boosting staff productivity in NIPOST Kaduna.
iv.
Find out the constraints militating
against NIPOST incentive scheme and make recommendations to the identified
problems.
1.4 Significance of the Study
This
study brings to light the effect of financial incentives on staff performance
in organization. The study will therefore be beneficial to the organization
understudy (NIPOST) in area of policy formulations as regard staff incentive
schemes and remuneration.
To
education, the study will contribute to already existing knowledge on the effect
of financial incentives on workers’ performance.
Finally,
to those in academics and human resource researches, the study will serve as a
springboard for further investigations.
1.5 Research Questions
This
study provide answers to the following research questions:
i.
Is NIPOST remuneration based on incentive
scheme that motivate staff performance?
ii.
What kind of financial incentive do
NIPOST give to its workers and what are their effect on workers’ productivity?
iii.
What are the evident/germane financial
incentive NIPOST use to boost workers’ productivity?
iv.
What are the constraints militating
against NIPOST 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 financial incentives
on staff productivity in NIPOST Kaduna. The time frame for this investigation
covers NIPOST incentive schemes from 2006-2011.
1.7 Limitation of the Study
The
study is limited to bias in respondent opinion about the subject matter as well
as the use of a single study area and the uncertainly about the generalization
of finding sequel to the use of a single research design as well as instrument.
For
the fact that only NIPOST was used as the sole area of study it is no certain
if the same result would be obtained in other organization.
Respondent
bias and nonchalant attitude also constitute a greater limitation to this
research.
For
the fact that questionnaire constitute the only instrument use to collect data
and survey research design the sole design used for the study. It is not
certain if the same result will be used if other type of design as well as
instrument were used. All these factor constitute a greater limitation to the
research.
1.8 Definition of Term
Financial Incentives:
Monetary reward or compensation use to motivate workers.
Performance Incentive:
Rewards that motivates worker to put in more efforts.
Productivity:
The rate at which employee work and their yield in their organization.