Effect Of Incentives On Job Performance
(A Case Study In Dannic Hotels Limited Of Enugu State)
Incentives play a crucial role in shaping job performance, acting as catalysts that stimulate productivity and motivation within organizations. Through various incentive structures such as bonuses, recognition programs, and performance-based rewards, employers can effectively encourage employees to strive for higher levels of achievement and excellence in their roles. These incentives serve as powerful tools for fostering a culture of engagement and dedication among workers, thereby enhancing individual and team performance. Moreover, incentives not only fuel short-term productivity spikes but also contribute to long-term organizational success by fostering loyalty, commitment, and a sense of fulfillment among employees. By aligning incentives with strategic objectives and recognizing the diverse needs and aspirations of employees, organizations can create a dynamic environment where individuals are inspired to unleash their full potential and contribute meaningfully to the attainment of shared goals. Consequently, the impact of incentives on job performance extends beyond mere monetary gains, encompassing intrinsic motivators that drive innovation, collaboration, and continuous improvement within the workforce.
This research work would be carried out to enable us know the important of job performance on a worker, an organization and what benefit we stand to obtain from it.
Also, this work would broaden our knowledge to the incentives or motivational force that can be applied in achieving this.
This study focuses at identifying the effects of incentives on job performance in Dannic Hotel Ltd Enugu.
Chapter one given us the overview effect of incentives on job performance with the problem that destroy our business organization which include the background of this study, statement of the problem, purpose of the study, scope of the problem, research questions, significance of the study.
In chapter two a significant members literature relating to the subject were reviewed and this is also work through adequate incentives on the organizational strategic goals to be achieved.
Chapter three show how data collected through questionnaire method by using sample population of two hundred and five workers and the data were analysed using percentage.
Chapter four give the finding of this study. And how it will be analysed through questionnaire.
The study went to recommend some of them that make this study effective such as the Nigeria private sector such as the one in question, Dannic Hotel, that this hotel owners are not being motivated, they are not paid high, low they suppose to be paid.
Finally, chapter five, the researcher concluded that using various theories of motivation, we expected the unbreakable link between incentives motivation on job performance as well as productivity.
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE:
INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 Scope of the study
1.6 Research question
1.7 Limitation of the study
1.8 Definition of term
Reference
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.1 Studies of reward and employees attitude to work
2.2 Maslow’s need of hierarchy
2.3 Theory of x and y
2.4 Vroom valiance expectancy theory
2.5 Reward motivation influencing employees attitude to work
Reference
CHAPTER THREE:
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
3.2 Area of the study
3.3 Population of the study
3.4 Sample and sampling techniques
3.5 Instrument of data collection
3.6 Validation of the instrument
3.7 Reliability of the instrument
3.8 Methods of data collection
3.9 Method of data analysis
Reference
CHAPTER FOUR:
4.1 Marital status
4.2 Transport allowance
4.3 Promotion effect to job performance
4.4 Extra homes and overtime
4.5 Training activities embarked upon
4.6 Promotion of staff
CHAPTER FIVE:
5.1 Discussion of findings
5.2 Conclusions
5.3 Implications of the research finding
5.4 Recommendation
5.5 Suggestion for further study
Bibliography
Appendix A and B
INTRODUCTION
In this chapter, the issue of incentive on job performance is addressed by looking at the background of the study, statement of the problem, purpose of the study, scope of this study, research question, significance of the study and limitations are all part of this chapter.
1.1 BACKGROUND OF THE STUDY
According to Ikeagwu, (1995), observes that incentives are the schemes or programs for remuneration of personnel for their contribution to the organisaiton objectives.
Wendell (1974), that employee incentives are of two types, financial and non-financial salary payment are financial incentives, these include forms such as insurance courage, profit sharing and provision are made. Non-financial incentive involves good working condition, recognition for exceptional achievement and other types of job benefit. That organization have set up wages payment plans that will be design to reward the workers at the same time with added compensation for exception plans, these are based on the piece rate method of making wage payment. And these involve a careful scientific study of each worker and that the will be a consequences that will be fall any of the worker who fails to reach the standard and a higher reward or rate who exceeded it.
Additionally, Julias (1995) observe that gentle task and bonus system will be awarded to any employee who exceeded the set standard by completing the work in his time, he will receive a bonus, a percentage of the base rate. The bonus is seen as something that is usually figured to a sliding scale earning from 15 to 35 percent of the base rate. On the other hand, a worker who fails to complete the task in the time allotted, will receive only this regular hourly rates. And this present two special features the bonus which beings when the worker does there fourth as much as job by doing so, it will help or encourage these who are striving to read more.
Also the standard as well as these who have already read it. The supervisor usually gives a bonus depend upon the amount or the member of bonus paid to the worker.
Finally, Imaga (1981) commented that non-monetary incentive has grown in the last decades and collective bargaining. Contracts with labour unions has now resulted in incentives such as hospitalization, legal aid, life insurance, income and promotion.
To this regard, the research interest is in investigating the effect of incentives on job performance.
A case study of Dannic Hotel Limited Enugu.
1.2 STATEMENT OF THE PROBLEM
Incentives are means through employees are motivated to put in their best. It could come in several ways such as, gift, 13 month allowance containing services, hospital allowance, rent subsidy, transport allowance, refurbishing, loans, study leave.
Workers feel so bad when they are not appropriately workers motivated. Workers are motivated through incentives and they maintain it through absenteeism, how production, non-challant attitude and this affects the organization drastically.
Finally, against this background, the researcher now tries to identify this effect of incentives on job performance by using Dannic Hotel as a case study.
1.3 PURPOSE OF THE STUDY
The following are specific purpose the study and they are as follow:
a. To identify the incentives programme for the staff of Dannic Hotel Limited Enugu and its influence on job performance.
b. To identify, the problem of incentives administration in Dannic Hotel Limited Enugu.
c. To examine the prospects of the use of incentives to improve job performance.
d. To determine the effect of incentives on workers productivity.
1.4 RESEARCH QUESTIONS
i. Do Dannic Hotel have an incentives package for the worker?
ii. Is there any problem with the administration of their incentive programme?
iii. Does productivity increase when workers are given incentives.
iv. What are the prospects of in giving incentives to workers.
1.5 SIGNIFICANCE OF THE STUDY
This study will highlight the problem associated with administration of incentives on job performance. It will also give information on the possible areas for improvement and corporation.
The organisation more especially those in the hospitality industry, for them to help and assess, appraise the performance or the issue of incentives on job performance.
Additionally, the policy makers will be help to formulate new policies that will guide employer relationship by going through the suggestions and recommendation given.
Finally, it will equally serve as a guide to researcher who may wish to develop the cause in the future.
1.6 SCOPE OF THE STUDY
In the course of study, it examines primarily the effect of incentives on job performance in Dannic Hotel Limited Enugu. At the same time, it does not examine the effect of incentives in other Hotels and organizations in the country.
1.7 LIMITATION OF THE STUDY
A study of this nature is bound to experience certain problems such as the constraints that is imposed on the researchers and these includes:
1. Time: A study of this, need a relatively time during which information for accurate or some near accurate should be drawn. Because of short time given, there was a constraint to the research.
ii. Cost: The researcher would have extended the survey to other areas. But limitation have include cost of transportation that will help to some the material and also cost of type settling.
iii. Lack of corporative: Many of the respondents are usually evasive on wire that border corporation on salaries hence the research discovers a lack of compilations.
1.8 DEFINITION OF TERMS
The following of terms includes:
i. Incentives: The schemes or programs for remuneration of personal for their contribution to the achievement of the organizational objectives.
ii. Objectives: The end of an objective which is main aim of what the organisation hope to achieve.
iii. Financial incentives: They are magnetization of incentive inform of money, insurance coverage, profit sharing and pensions.
iv. Non-financial incentives: There includes working condition, hospitalization, legal and staff training, income tax counseling and sick leave.
v. Motivation: This refers to the drive or force to satisfy a want (to achieve an outcome) in any organisaiton.
vi. Job performance: This means that an employee achieve what ever he want under test condition.
vii. Employment contract: A contract entered into by an employee when he accepts an appointment by an employer.
viii. Exceptional performance: This occurs when an employee puts a performance that is above the set standards.
ix: Work: This is a task which an employee is assigned to perform.
x. Employee moral: This is the findings of individuals of groups towards their goals, their associates and the organisation.
Effect Of Incentives On Job Performance:
Incentives can have a significant impact on job performance, and their effectiveness depends on various factors, including the type of incentive, the organization’s culture, and individual motivation. Here are some ways incentives can affect job performance:
Motivation: Incentives are often used to motivate employees to perform at their best. When employees know that they will be rewarded for achieving specific goals or targets, they are more likely to put in extra effort and perform better.
Increased Productivity: Monetary incentives, such as bonuses, commissions, or profit-sharing, can directly link an employee’s performance to their earnings. This can encourage employees to work more efficiently and productively to maximize their income.
Attraction and Retention of Talent: Competitive incentive packages can help attract top talent to an organization and retain experienced employees. People are more likely to stay with a company that recognizes and rewards their contributions.
Goal Alignment: Incentives can be used to align individual and team goals with the organization’s objectives. When employees see a clear connection between their performance and the overall success of the company, they are more likely to work towards achieving those goals.
Increased Engagement: Non-monetary incentives, such as recognition, praise, or career development opportunities, can boost employee engagement. When employees feel valued and appreciated, they are more likely to be emotionally invested in their work and perform at a higher level.
Healthy Competition: Incentives can create a healthy sense of competition among employees. When individuals or teams are rewarded for outperforming their peers, it can drive them to excel and push their limits.
Improved Morale: A well-designed incentive program can improve overall morale within an organization. When employees see their efforts recognized and rewarded, it can create a positive work environment, leading to higher job satisfaction and performance.
However, it’s essential to consider potential drawbacks and challenges associated with incentives:
Risk of Focusing Solely on Incentives: Relying too heavily on incentives can lead to a “carrot-and-stick” mentality, where employees are motivated solely by rewards. This can undermine intrinsic motivation and creativity.
Inequity Concerns: If incentives are not distributed fairly or are perceived as unfair, they can lead to resentment and demotivation among employees.
Short-Term Focus: Incentives may encourage employees to prioritize short-term goals over long-term success or ethical considerations, potentially leading to unethical behavior.
Administrative Burden: Managing and implementing incentive programs can be administratively complex and costly for organizations.
Unintended Consequences: Incentives may lead to unintended consequences, such as employees gaming the system to achieve rewards or neglecting essential aspects of their job that are not incentivized.
To maximize the positive effects of incentives on job performance, organizations should carefully design and monitor their incentive programs, ensuring they align with their values, culture, and long-term objectives. Combining both monetary and non-monetary incentives can create a well-rounded approach to motivate and engage employees effectively. Additionally, regular evaluation and feedback on the incentive program’s impact are essential to make necessary adjustments and improvements.