Impact Of Organizational Bonus Scheme On Employees’ Productivity

1.0 Introduction

1.1 Background Of The Study

The impact of bonus scheme on employees’ productivity should not be overlooked. Obviously the various forms of behaviors and attitudinal dispositions required of an organizations from its employees to achieve some goals depend greatly on the kind and methods of inducements, motivational tools, incentives on bonus systems that exists in such as methods or patterns of administering incentives or bonus in an organizations whereas bonus itself is an incentive package of monetary value designed for employees to ginger their mind and induce them towards greater work performance.

Ifurueze S. Meshack (2008:89) suggests that bonus scheme varies from one organization to another depending on their policies. He identify S. methods of applying bonus (scheme) in organizations which includes

Halsey bonus scheme

Halsey weir bonus scheme

Rowan bonus scheme

Priest-man’s bonus scheme

Group incentive bonus scheme

The adoption or non application of bonus scheme in an organizations would have positive and a negative influence on employees work performance, therefore it has the tendency of increasing or reducing productivity rate.

Most organizational bonus scheme has ceased to be a motivating factor to most employees due to the static and unimproved nature, when a particular bonus scheme is in use over a long period of time in an organizations without changes, it ceases to be a job motivator to employees because they will begin to look forward to another higher incentive that could ginger their mind and induced, sustain them towards putting more efforts to work, have positive attitude in the course of discharging their duties so as to achieve efficiency.

1.2 Statement Of Problem

My selected banks of study (Union Bank Nig. Plc & Fidelity Bank Plc Owerri) like every other firms have a stated target to achieve, and for them to accomplish these objectives, workers must be employed. Despite the availability of human resource management in these banks, observation has shown that there are still certain problems that lingers which could be traced as employee poor performance (inefficiency), which is as a result of men or inadequate bonus incentive packages existing in these banks. It is believed that good bonus scheme could motivate, sustain employees’ interest and improve their performance.

Is employees’ poor performance traceable to the kind of bonus scheme present in these organizations?
Are there some needs which the existing bonus system has failed to address in these organizations?

1.3 Objective Of The Study

This research work will specifically focus on the following objectives:-

To find out the various bonus schemes that exists in these banks of study.

To identify the roles bonus scheme play on employee’s productivity.

To evaluate various employees performance and know which bonus scheme has encouraged higher productivity so as to adopt it.

To comer up with conclusion whether the bonus scheme can be used to motivate workers or not, to achieve high productivity.

1.4 Research Question

The following are the research questions relevant to this work:

How does the bonus scheme of these organizations affect their job performance?

How effective are bonus schemes as motivational techniques?

What is the impact off organizational bonus scheme on employees’ productivity in the banking sector?

What are the various methods of bonus schemes applied to motivate employees in these banks?

1.5 Statement Of Hypothesis

This research work seeks to explore two methods of hypothesis.

Hypotheses I:

HO: There is no significant relationship between organizational bonus scheme and high productivity within banking industries.

Hi: There is a significant relationship between organizational bonus scheme and high productivity within industries.

Hypotheses II:

HO: Bonus scheme is not effective in changing the nature of organizational operation.

Hi: bonus schemes are effective in changing the nature of organizational operations.

1.6 Significance Of The Study

This study will be beneficial to

The researcher, in the sense that it will enable him to know the impact OF bonus schemes and its outcomes in an organization.

This study will also become a part of reference to other researchers, so the public and other scholars will also benefit from it.

The study will also be of benefit to my banks of study and to entire banking sectors because the outcome of this work will help them in formulating organizational policies that take cognizance of the impact of bonus scheme.

1.7 Scope Of The Study

The impact of organizational bonus scheme is and extensive topic whose study is all embracing and required carefulness, therefore the researcher has decided to restrict the study to two selected banks in Owerri (Union Bank Plc & Fidelity Bank Plc)

1.8 Limitation Of The Study

The researcher encountered some problems in the course of this work.

Financial Constraints:

The inadequacy of parts of the fund requires for this research work posed some problems.

Co-Operation:

The managements and staff of these banks find it difficult to co-operate with the researcher in terms of leaching out information required by the researcher.

Time Factor:

This work required a lot of time and commitments, but the combination of this research work and classroom lectures posed a threat, though the work is a huge success.

1.9 Definition Of Terms.

Bonus:

This is an additional pay, an incentive package designed to induce or motivate employees towards high productivity.

Incentives:

This is anything that is capable of encouraging somebody to do something more and perfectly.

Productivity:

This means efficiency which is measured by comparing the amount (quality) produced with the time consumed and the resources used.

Policy:

This is a laid down rules governing organizational behaviour.

Motivation:

This is an internal stimulus responsible for variations of individual behaviour and attitude towards something.

Objectives:

This is the aim of an organizational existence.

Efficiency:

This is the utilization of factor inputs effectively in minimizing wastes and maximizing profit.