Impact Of Incentive (Welfare Scheme) On The Performance Of Workers
(A Case Study Of Nepa Plc Enugu, Enugu State)
The implementation of a welfare scheme, particularly incentives, has demonstrated a profound effect on enhancing the performance of workers across various sectors. By introducing targeted incentives, organizations can cultivate a motivational environment that stimulates employee engagement and productivity. Such schemes often encompass financial rewards, recognition programs, and other non-monetary benefits, all tailored to acknowledge and appreciate the efforts of the workforce. This approach not only fosters a sense of job satisfaction and loyalty but also serves as a potent tool for talent retention. The positive correlation between the welfare scheme and improved worker performance underscores the significance of recognizing and addressing the intrinsic and extrinsic needs of employees within the workplace. In essence, a well-designed incentive system can act as a catalyst for heightened productivity, job satisfaction, and overall organizational success.
Since the day of Abraham Maslow’s hierarchy of needs and Douglass Mcgregor’s hygiene factors, a lot of management intellectual have been carrying out research, and writing on good management of staff welfare schemes and ways of motivating workers and increasing productivity. but the good ideas suggested by these searchers (authors) have not been fully realized by the employee of out time in general and the good workers of NEPA Plc, Enugu Zone in particular.
Although the colonial history of Nigeria there has been employer/employee unrest at different time due to financial s malfeasance, administrative malversation, neglect of and imposition of inhuman workers welfare scheme and consequent negative results on labour productivity. The killing of many coal miners in Enugu in 1949 by the an autocratic white regime is a case to mention here, since then, many organized labour unions have sprung-up in many organizations and governments at different times at different parts of this country of fight for the right of workers, workers motivational incentives, and society. Responsibilities of employers of labour to the employees in particular, and society at large.
It is against this background that this research work was conducted to investigate the problems militating against the full realization of the benefits of a good workers welfare scheme by the employees of NEPA Plc, Enugu Zone in particular. The method of data collection employed in this study was primary and secondary sources. Simple percentage was used in the analysis of data to generated in the course of this research.
It is expected that this work would assist the corporate/business level strategic planners and mangers of NEPA Plc, Enugu zone in particular and those of other companies, industries, corporations and government in productivity as they are in constant search for practical approaches to the solution of the problems hindering improvement of NEPA performance (in supply of power) in the Enugu zone, and workers productivity in the economy.
It is also hope that all the other employer of labour whose business are so small to be classified under the entrepreneurial code such as all small/medium scale enterprises vis-visa, those other bigger business discussed above which classed under the adaptative and planning code shall as well benefit motivate workers, provide workers participation in decision making process, and lead to eventual increase in labour productivity.
Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table of Contents
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 6
1.4 Scope of the Study 7
1.5 Limitation of the Study 7
1.6 Significance of the Study 8
1.7 Definition of Terms 9
References 10
CHAPTER TWO
2.1 Literature Review 11
2.2 Nature of Scope of Staff Welfare 13
2.3 Growth of Staff Welfare 13
2.4 Purpose of Staff Welfare Scheme 20
2.5 Categories of Staff Welfare Services/Types of Fringe Benefits 22
2.6 Disadvantages of Staff Welfare Provision 38
2.7 Summary of Literature Review 43
References 46
CHAPTER THREE
3.1 Research Design and Methodology 48
3.2 Area of the Study 48
3.3 Population of the Study 49
3.4 Sample and Sampling Procedure/Technique 49
3.5 Instrument for Data Collection 50
3.6 Validation of the Instrument 52
3.7 Reliability of the Instrument 52
References 55
CHAPTER FOUR
4.0 Data Presentation and Analysis 56
4.1 Introduction 56
4.2 Testing of Hypothesis 73
4.3 Summary of Result 78
CHAPTER FIVE
Discussions, Recommendation And Conclusions 80
5.1 Discussion of Result/Findings 80
5.2 Conclusion 82
5.3 Implication(s) of the Research Findings 84
5.4 Recommendations 85
5.5 Suggestions for Further Research 87
Bibliography 94
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The administration of staff incentives scheme has now become a popular phenomenon of the total personnel policy of any organization. The scheme involves these extra benefits which may not necessarily be money, which emanate from the kind relationship of the employer to the employees, to supplement their usual wages, from time and which are at most times geared purposely towards the enhancement of workers performance in the organization.
This scheme, is very important to both the organization and the employees, from the employer’s point of view, it is anticipated that a good staff employee incentive scheme will induce the employees to work hard and improve their general attitude toward the organization. But for the employee, these benefit represent some additional right such as extra income, additional security or more desirable working conditions that should not require any additional effort.
In business organizations, employers of labour have seen in staff welfare services the ability to invoke commitment and co-operation of the subordinates to contribute more to the achievement of the organizational goals and aspiration. This discovery has led many employers of labour to the introduction of well packaged welfare services, with the sincere belief that a good staff services will induce staff to work hard and improve the general staff morale.
The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraisal of the staff welfare scheme are defined as “something of value apart from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work.
Staff welfare services exist in all culture and in all organization and had existed at all times. They take different shapes and forms and attracts different names. In recognition of their worker need fulfillment functions, they are variously called “welfare services” “welfare benefits employees” “income” or simply “supplementary, compensation or “pay and non wage remuneration. As non taxable income and expenses, they are beginning to be called “indirect compensation and non tax benefit”.
In the past, they used to be tiny bits and pieces of goodies that occasionally full from the high tables of paternalistic employer i.e when the top management play a fatherly role of the staff.
It should be noted that for the company to achieve its objective her welfare service should be adequate, competitive and tailored towards the real need of the staff. Staff are directly influenced by nature, quality and quality of welfare services offered because they compare themselves with their counterparts in other organizations.
In this research work, workers do prefer increase in welfare services to increases in salaries especially during the period of inflation and rising prices, workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.
Welfare scheme, is a kind of incentives given in cash or kind aimed at getting the best out of an employee or group of employees. Motivation aims at optimum performance of employees. Many factors have to do with characteristics of the individuals, different people are endorsed with different potentials, training, skills and receptions ability to change. Employees attitude and behaviour are also influenced by their remuneration and other incentive such as prestige, special allowance and retirement benefits. Conditions and environment of work also affect productivity.
Incentive (welfare scheme) can also be a compensation package, reward for performance, staff prefer cash items such as salary, allowances, Christians bonus, or in non cash items such which we call fringe benefits such as giving the product of the organization to the workers, protective clothing, cars with or without driver.
1.2 STATEMENT OF THE PROBLEMS
Often workers or employees are attracted to certain organization not only because of the pay packets that are stated in the advert but also because of the benefits attached to them. Those benefits usually include, housing, transport and medical allowances together with pension or retirement benefits to mention but a few.
These attractions may constitute a considerable objective for which such individuals made-up their mind to serve in each organization. The Spence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as the efficiency of such individuals performance, which will in turn reflect on the organizations productivity.
CORRECTION FROM STATEMENT OF PROBLEM
These dissatisfaction expressed by the staff either on the provision or administration to staff welfare service activities become some serious problem which demand for proper investigation and examination in order to find lasting solution to them, are as follows:
(i) The implementation of staff welfare scheme in the company is not too effective.
(ii) Workers welfare is not taken care of their salary structure or payment is nothing to write home about.
(iii) The management function is not effective as workers or employees show a negative attitude towards their job, that is inadequate responsibility, high rate of absenteeism and indiscipline.
(iv) Also, the flow of communication between the workers and management is inadequate.
(v) Measure to be used in making sue this problems are tackled to enhance productivity.
1.3 OBJECTIVE OF THE STUDY
The objective of this study are as follow:
(a) To determine if any incentive welfare scheme exist in NEPA.
(b) To ascertain whether any of the service rendered by the staff in the company has been withdrawn due to withdrawal of some incentives.
(c) To identify if welfare scheme package is given by NEPA.
(d) To ascertain whether there are other benefits which the staff demanded for effective performance of their job that are not yet provided.
(e) To ascertain the problems if any that is encounter by the company in the administration of welfare services.
(f) To determine the effectiveness of staff welfare programme in National Electric Power Authority as perceived by the staff.
(g) To make recommendation based on this study on how to improve the provision and administration of staff welfare scheme in NEPA Plc Enugu Zone if need be.
1.4 SCOPE OF THE STUDY
The scope of this study covers only a large spectrum of government owned enterprises in Nigeria called NEPA Plc Enugu Zone.
It is hoped that the study of the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria.
1.5 LIMITATION OF THE STUDY
A study of this nature cannot be completed without encountering some constraints or limitations, in the course of this research, these constraints range from time, duration posed a limitation, finance, cost to get these materials. Another notable limitation as experienced by the researcher was the unco-operative and uncompromising respondents.
1.6 SIGNIFICANCE OF THE STUDY
In view of this research work, the beneficiaries are as follows, management, staff and other organization.
MANAGEMENT: The management tends to benefit when this incentives such as special allowance and retirement benefits, prestige, condition and environment of work are provided. Workers are committed to give off their best to the achievement of the company’s objective.
STAFF: – The staff will also benefit when welfare services are introduced in the organization due to the employers sincere belief that a good staff/employee service activity will induce them to work hard and improve general staff morale.
Other organization thus, try as much as possible to attain their corporate objectives by helping their staffs to accomplish their own personal objectives. This they do by setting ups ideal welfare scheme for the benefit of their staff.
1.7 DEFINITION OF TERMS
For the purpose of this research work the following key words are defined as follows:
STAFF: Any person who enters into a (employer in return for wages, salary or other valuable consideration.
ORGANIZATION: It is an act of organizing a body of people, company, school. It is also the structure of relations that exist between positives in a group.
MORAL: This means the moral condition of workers regarding discipline and confidence.
INCENTIVES: These are wages and salaries.
EMPLOYEE: Those employed to work in an organization.
WORK: A task which employee is assigned to perform.
PERFORMANCE: This refers to the execution of carrying out notable worker.
Impact Of Incentive (Welfare Scheme) On The Performance Of Workers
Incentives, such as welfare schemes, can have a significant impact on the performance of workers in various ways. These schemes are designed to provide additional benefits or rewards to employees beyond their regular compensation. Here are some of the key ways in which incentives can influence worker performance:
Motivation: Incentives can serve as powerful motivators for employees. When workers know that they can earn additional rewards or benefits by performing well, they are often more motivated to put in their best effort. This motivation can lead to increased productivity and better performance.
Retention: Welfare schemes and incentives can contribute to higher employee retention rates. When employees feel that their organization cares about their well-being and provides valuable perks, they are more likely to stay with the company. Reduced turnover means that the organization retains experienced and skilled workers, which can positively impact performance.
Productivity: Incentives can lead to increased productivity among workers. Whether it’s through monetary bonuses, extra time off, or other perks, employees may work harder and more efficiently when they know there’s a tangible reward for their efforts.
Job Satisfaction: Welfare schemes and incentives can enhance job satisfaction. When employees feel appreciated and rewarded, they are more likely to enjoy their work and feel a sense of fulfillment. This positive attitude can translate into better performance and a more positive work environment.
Competitive Advantage: Offering attractive welfare schemes and incentives can give an organization a competitive edge in attracting and retaining top talent. Skilled and motivated employees are more likely to outperform competitors and help the company achieve its goals.
Team Collaboration: Incentives can encourage teamwork and collaboration. When incentives are tied to team performance or achievement of group goals, employees may work together more effectively, leading to improved overall performance.
Innovation: Some incentive programs may be designed to encourage innovation and creativity among employees. For example, offering rewards for innovative ideas can stimulate employees to think outside the box and contribute to the organization’s growth and success.
Health and Well-being: Welfare schemes that promote the health and well-being of employees, such as health insurance, fitness programs, or flexible work arrangements, can lead to healthier, less stressed, and more focused workers. This can result in improved performance due to better physical and mental health.
Ethical Behavior: Incentive programs that promote ethical behavior and compliance with company policies can help create a more ethical work environment, reducing the risk of unethical conduct that could harm the organization’s reputation.
Employee Engagement: Employees who feel engaged and connected to their work and the organization are more likely to perform at their best. Incentives and welfare schemes can contribute to higher levels of engagement by making employees feel valued and appreciated.
It’s important to note that the effectiveness of incentive programs can vary depending on factors such as the design of the program, the organizational culture, and the specific needs and preferences of the workforce. Therefore, it’s essential for organizations to carefully plan and tailor their incentive programs to align with their goals and the needs of their employees. Additionally, regular evaluation and adjustments to these programs may be necessary to ensure they continue to have a positive impact on worker performance.