Abstract
The main aim of
this research work is to investigate the relationship of the two types of
rewards namely financial rewards and non-financial rewards towards employees
motivation. The research work was restricted towards manufacturing company that
is, West African Portland Cement. Based on the past literature, it is found
that financial rewards or money has become the main motivator for employees
performance in an organization. Traditionally, little thought has been given to
the impact of non-financial rewards as it does not hold any immediate monetary
value to the employees. However, in the context of heightened awareness among
employers and employees, there has been greater emphasis on non-financial rewards,
such as praise and recognition as it holds a deep and greater impact to the
employees especially in the long run. This work defines the nature of financial
and non financial rewards on employees motivation. By undertaking a comparison
between the financial and non-financial rewards, the outcome of this paper
provides vital information for organizations to structure a better rewards plan
for their employees.
TABLE OF CONTENTS
Title
i
Approval ii
Dedication iii
Acknowledgements iv
Table
of Content v
Abstract ix
Chapter 1 1
1.0 Introduction 1
1.1
Background to the Study 5
1.2
Statement of the Problem 7
1.3
Purpose of the Study 8
1.4
Significance of the study 10
1.5
Research Questions 11
1.6
Hypothesis 13
1.7
Scope/Delimitation of the Study 14
1.8
Definition of Terms 15
Chapter 2 17
2.0 Literature
review (Conceptual framework) 17
2.1
The concept of Motivation 17
2.2
Types of financial method of motivation 18
2.3 Types of non financial method of motivation 22
2.4
Nature and scope
of financial and non financial motivation on employees
performance. 24
2.5
Motivational theories (Theoretical
framework) 27
2.6
Different views on motivation 32
2.7
The studies on employees motivation
empirical framework) 36
2.8
Summary of literature review 42
Chapter 3 48
3.0 Research Methodology 45
3.1 Design of the Study 46
3.2 Area of the Study 46
3.3 Population of the Study 46
3.4 Sample/Sampling Techniques 47
3.5 Instrument for Data Collection 49
3.6 Validation of the Instrument 49
3.7 Distribution and Retrieval of the Instrument
50
3.8 Method of Data Analysis 51
Chapter 4 52
4.1 Presentation of Data and Analysis 52
4.2 Discussion
of Findings 80
Chapter 5 83
Summary of findings, Conclusion and Recommendation 83
5.1 Summary of Findings 83
5.2 Conclusions 84
5.3 Recommendations 85
5.4 Limitations of the study 86
5.5 Suggestion or further research 87
References
88
Appendix 90
Questionnaire
91
CHAPTER 1
1.0 GENERAL INTRODUCTION
It is obvious that financial and non
financial motivation of employees in an organization is very essential because
it aids the performance evaluation of employees in various department section
etc and also assist managers to know why
worker behave in certain ways and really motivate them to perform well at work
place.
Motivating the personnel of an
organization to make minimum effort towards the attainment of its objectives
has along occupied the mind of managers from the managing directors to the
invest ranking supervisors. Managers should be aware of the fact that people of
the same organization work for different reasons for example, if a manger looks at a group of workers performing
the same job for some time he cannot observe that some workers perform better
than others. In explaining this two variables come to mind immediately, one is
the difference in degree of skill and ability displayed by individual works,
the other variables can be describe as motivation therefore, to guide workers
activities in the described direction, it is important for managers to know why
workers behave in certain ways and what really motivate them to perform well at
work place.
In an industrial organization, the
importance of incentives cannot be over emphasized. Incentives are intended to
stimulate the desire to work, they are eternal factors or condition brought to
bear on individual to induce him to the right attitude to work. The order of an
extra reward can be used in other to achieve minimum efficiency among workers.
An adequate financial fair wages and salaries is further emphasized by the fact
that they are reckoned in monetary terms. Financial uncreative is inform of
increase in pay or bonus and also special holiday pay. Management must also
give consideration to the environment in which the worker performs their works.
They should be an atmosphere of co-operation and trust between the various
works at all level. The proper display of equipment and proper lightening will
ensure a smooth performance of the job. In addition the leader can be a
motivator for his group, this depends on the quality of the relationship
between him and group members. All groups as they begin to work together are
highly dependent on the authority of the leader. A leader needs to be sensitive
to the rule of group standard and their far reaching influence on efficiency and
productivity for leadership to affects motivation, it must conform and identify
group standard. The value of an incentive is the extent to which the workers
responds by contributing to the best of his ability to the company’s success.
Finally, recognition of the effort of
the workers is also important. All employees like to feel that their efforts
are appreciated, particularly if some improvement is achieved. When the work
become monotonous in nature, it militate
against a positive attitudes by workers to the job. Job satisfaction can be
improved by simple expedient of making the work more interesting and requiring a greater
application of thought skill. This can be done by increasing the job content.
The other method will be extend to the
range of tax that has to be performed by individual workers.
1.1 Background of the Study
West African Portland Cement Plc was
created in 1833 presently Lafarge
cement Nigeria plc (WAPCO) was
established in 1960 with its first factory in Ewekoro, Ogun state. The second
factory in Sagamu, also in Ogun state was established in 1978. The company
commenced production with an initial capacity of 200,000 tons per annum, but
later grew with demand to about 1.5million tones per annum. This has led to an
increase in the company capacity by over 1 million tons per annum.
The
company has consistently won the Nigerian industrial standard (NIS) certificate
for a quality product. The company was listed on the Nigeria stock exchange on
February 16, 1979. In February 2008, the name West African Portland Cement plc
was changed to Lafarge Cement WAPCO Nigeria plc, to reflect the rebirth of the
company as part of an international organization, strategically positioned for
greater heights.
WAPCO
is the leader in building materials and hole top-ranking positions in all of
its businesses such as cement, aggregates, concrete and gypsum, with more than
84,000 employees in 70 countries. WAPCO businesses are truely fundamental; it
extracts mineral resources from the earth and transformed them into major
construction materials. Their principal activities are the manufacturing and
marketing of cement products, they designs and produces building materials to
meet the requirements of people throughout the world for housing, transport,
healthcare education, and essential infrastructural for economic growth and
social progress.
1.2 Statement of the Problem
In an organization, management uses
motivation in order to reach their stated objectives, because motivation is one
of the important role which management play to accomplish the organizational
goals. Any attempt made by the management which is not taking the financial and
non financial motivation of employees performance into consideration, the
following difficulties will be confronting the management in attaining their
stated objectives.
•
Lack of suitable environment to work
for the employee.
•
Losing a lot of skill and well
trained employees
•
Attitude of workers in searching for
another better job.
•
The level of productivity of goods
and services.
•
Reducing the total turnover of the
business.
1.3 Purpose of the Study
The purpose of the study, include the
following
•
To determine the impact of financial
incentives such as increase in wages and salaries, cash bonus and holiday pay
on employee’s performance.
•
To examine the effect of non
financial motivation that is (job security, job satisfaction, status at work
etc) on employee’s performances.
•
To determine what makes an employee
to do his/her best or perform well on a given job.
•
To compare the various effect of
financial incentives and non financial motivation
•
To be able to determine whether
promotion and job security will improve the level of productivity.
•
To determine whether employees pay is
commensurate to their labour or efforts.
1.4 Significance of the Study
The importance or significance of the
study is to determine the influence of increasing wages and salaries in worker
performance and also the non financial motivation that really makes workers to
ensure that objective of the organization can be achieved. The significance of
the study will also be a valuable contribution to the following groups.
The organization: it will give the
managers reasonable insight into achieving the organizational goals and
improving working condition to maximize productivity. It will enable the
mangers to know how to reduce and adopt scientific method of management. It is
particularly useful to the organization in question. West Africa Portland
Cement Industries.
The government: With this study, the
state government will appreciate the benefit of giving workers fringe benefits
and incentives in the management or organization. The financial and
non-financial motivation will also encourage workers in order to promote the
level of productivity.
The
research work will also be useful for academic purpose in the sense that it is
an improvement on past academic work of other researcher. It also serves as a
reference point for subsequent researchers.
1.5 Research
Question
The researcher will attempt to answer
the following questions
•
What are the impacts of financial
incentives on employee’s performance?
•
What are the effects of non financial
motivation on employee’s performance?
•
How can employee’s performance be
increase at his work place?
•
What are the various effects of
financial incentive and non financial motivation?
•
Does promotion and job security
increase the level of productivity?
•
Does
employees pay commensurate to their labour of efforts?
1.6 Research Hypothesis
The research will be carried out to
test the value of these statement or assertion.
•
Ho:
That increase in wages and salaries would not to a great extend increase
workers performance.
Hi:
That increase in wages and salaries would to a great extent increase workers
performance.
•
Ho:
That increase in productivity is not due to an atmosphere of cooperation and
trust between workers.
Hi:
That increase in productivity is due to an atmosphere of co-operations and
trust between workers.
•
Ho:
that recognition of effort does not improve employees performance.
Hi:
That recognition of effort improves employees performance.
1.7 Scope/Delimitation of the Study
In relation to financial incentives
and non financial motivation, the research project will look into the aspect of
motivation. The research study will be carried out in a manufacturing company
West, African Portland and Cement plc. In order to make generalization about
the population from which the same is selected.
1.8 Definition of Terms
Motivation:
This involves taken into consideration individuals psychological needs and
motivation is the process of achieving or organizing goal. A motive is a need
or a driving fierce within a person.
Objective:
These are goals a firm seeks to attain and which constitute the principle
reasons for existence.
Organization:
This is the framework of the management process, it can also be defined as the
system of behavior designed to enable human and their machines to accomplish
goals.
Incentive:
These are external factor brought to bear the individuals to induce him to the
right attitude to work for example bonus, cash gift etc.
Management:
This is an operational process initially best to disserted by analyzing the
management function – planning, organization, staffing, directing, lading and
controlling.
Managers:
Is the part of management team, who perform a lot of functions as ascribed to
management. He does this by working with and through other people.
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