The impact of management incentive policies on worker’s productivity (a case study of dangote cement factory, obajana, kogi state.)

Thesis Overview

<p> </p><p>1.0 INTRODUCTION<br>An incentive is a form of financial encouragement<br>recognizing a particular contribution made by the work force, in<br>other words, it is a sum of money paid in addition to the basic rate<br>which the organization pays to ensure that its most important<br>production aspects are being optimized . For instance, a capital<br>intensive company might have an incentive linked to machine<br>utilization.<br>Performance incentives are payment made to an employee<br>or group of employee based on amount of output. The use of<br>performance incentive policies is premised on the belief that<br>output can be measured and performance by workers, it used<br>dated back to the era of the scientific management movement<br>championed by Fedrick Winslow Taylor who argued passionately<br>for the use of incentive wage system as a way of getting more<br>output from the workers. It was also aimed at combating<br>“soldering” or boondoggling” which was a practice of deliberate<br>restriction of output by workers on the job as at that time. Taylor<br>believe that workers could always exert greater efforts if they were<br>2<br>to be paid a financial incentive based upon the number of units of<br>work they were able to produce. He then developed the<br>differential rate system which gives a worker a lesser piece rate e<br>.g #1.0 per piece if he produced less than the standard amount of<br>output required by so doing; individual workers are motivated to<br>produce greater output.<br>In every organization, large or small private or public<br>enterprises, human resources (employees) are always the pillar of<br>the success of the organization. The human elements have their<br>individual drives, desires, needs, wishes and similar forces which<br>they intend to satisfy when they are coming into an organization.<br>The satisfaction or non-satisfaction of these needs by the<br>organization has an impact on the behaviour or performance of<br>the employee and eventually on productivity.<br>The usefulness of good incentive policies which leads to<br>motivation of the employee cannot be over emphasized. Every<br>organization depends on motivation among other factors for the<br>attainment of their objectives. The monetary incentives like<br>bonuses, wages, salary increment, e t c to put more effort in<br>their work which help to improve the level of productivity in both<br>private and public industries.<br>Many a time, the most concern of employer is to make the<br>employee to contribute to the attainment of organizational<br>objectives, but they should know that if the employees are not<br>happy with the management of the organization, there will be a<br>very low rate of production in the organization, that is why Hekina<br>and Jones (1967) page 120 visualize that employees should be<br>seen and valued as assets for the allocation of organizational<br>resources. This project will be based on the impact of<br>management incentive policies on workers‟ productivity using<br>Dangote cement factory obajana, kogi state as a case study.<br>1.1 STATEMENT OF PROBLEM<br>Most incentive plans are designed to assist in increasing<br>efficiency in the organization. However, obtaining employees<br>acceptance of an incentive system may be difficult at the onset.<br>There may be fear that the plan will lead to a speed up layoffs or<br>reduce wage can cause workers resistance.<br>Most employers do different things for instance ranking of<br>people, contest, performance appraisals, production, teams and<br>departments, shifts, commission pay etc. all this are believed to<br>enhance performance. Some researchers think it does the opposite<br>instead of trying to use the external motivation (something outside<br>the work itself such as promised rewards or incentives) to get<br>higher levels of performance from people. Employers will be better<br>served by studying the organization as a system. Employers<br>demand results. Without good result organization will find it<br>difficult to survive. Managing incentive policies is a requirement for<br>higher productivity.<br>Consequent upon a systematic survey of the constraint<br>inimical to the success of management incentives policies<br>1. To what extent has incentive policy affected workers<br>productivity?<br>2. What is the purpose and importance of these incentives?<br>3. What is the effect of the absence of these incentives?<br>4. What is the way out?<br>1.2 OBJECTIVES OF THE STUDY<br>Good incentive policies, when put in place, motivate workers<br>and make them happy and happy workers are often productive.<br>Good management incentive could be financial or non financial in<br>nature. Financial incentive happens to be the most important of<br>the incentive schemes and it includes wages and salaries, profit<br>sharing scheme, etc.<br>This researcher shall, by this study therefore beam search<br>light on various aspect of management incentive policies vis-à-vis<br>productivity, with a view to achieve the following objectives among<br>others.<br>i. To examine the nature and feature of various incentive<br>schemes<br>ii. To examine the usefulness and purpose of incentive in an<br>organization<br>iii. To examine problems associated with individual incentive<br>plans<br>iv. To make relevant recommendations based on findings.</p><div><div></div></div><br> <br><p></p>