EFFECT OF MOTIVATIONAL INCENTIVE ON EMPLOYEE PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.0    General Introduction

Most corporate executives in most public and private sectors organizations regarded materials and financial source as the most important assets in any given industry or organization. This, thinking as stated above, has dramatically changed. In most organizations, human resources are now given without priority. It is people that make organizations and unless they are recognized and treated, the result will be negative attitudes which can, by extension lead to negative result in the form of poor performance. Therefore, the first thing to communicate to the men you have to manage is the fact that they are important people.

You can achieve something with the most difficult individual if you realize and sincerely believe in his personal importance, dignity and potential. You can boost his morale so that his productivity will rise beyond your hopes. Output is as much dependent on morale as an incentive (financial or otherwise) or physical working conditions. People like to feel they matter as individuals to their management, that they are been consulted about things, that their work matter, that the superior really knows what they are doing and they are also compensated to do more (incentives).

1.1    Background of the Study

It is known fact that the principal motive of management of any organization is to make individual and people contribute positively towards the activities which it consists. So as to achieve the mission and goal of the enterprise employee motivated.

Hermann motivates are based on need such as psychological requirement for water, food, sleep and shelter while others needs may be regarded as secondary such as self esteem status, affiliation with others, compliment and self assertion or satisfaction (Daniel, 1982).

A motives as well as directs motivate their subordinated is to say why they do those thing, which they hope will satisfy, these drives and desires as to induce in the subordinate so as to act in desired manner if the motivation of employee is to be more productive and for it to produce at a higher level of quality often required what a variety of an incentive be used in varying proportion as can best be esteemed by Human Resource managers. Because of the differences in need patterns and their ever changing natures, the incentive that may be best for one group or an individual may not be effective for another of a particular time.

The use of incentive does not only involve the monetary aspect but also comprise non-financial incentive such as transportation facilities, accommodation facilities, welfare service etc.

It is usually the responsibility of the supervision to ensure that the employees feels that the up (the organization) came about their view and suggestions on work emplacement, income simplification and such other routine matter (Ibekwu, 1984).

It is described that job should be varied and given to employee accomplished which boost their age and gives them a feeling of pride and sense of achievement which includes some individuals to remain with an organization so as to reach individual satisfactory level of performance.

Hence incentive tend to be cost to their employers while it is a benefit or major source of income to employees. No organization can hopefully succeed without the effort of the employee performance with focus on Nigeria Brewery Plc as a case study.

1.2    Statement of the Problem

The failure of top management to appreciate the human element as the most crucial factor and the determinant of attainment of goals and objective have constituted serious eroding problem.

The employees are faced with unhealthy working environment and this have resulted in poor productivity.

The general relationship between the top management and the rank files are not cordial.

The employees are not send or given training as at when due.

The take home/incentive of the employees are not encouraging. These and many more are the problems face by employee and which in turns affect their performance.

1.3    Objective of the Study

1. To determine whether employee need to be motivated.
2. To determine whether incentive is related to performance.
3. To determine whether promotion is motivating factor to performance.
4. To determine whether employee do perform optionally.
5. To determine whether workers do get adequate remuneration.

1.4    Statement of the Study

H0:    Incentive has no effect on employee performance in Nigerian Breweries.

H1:    Incentive has effect on employee performance in Nigerian Breweries.

1.5    Significance of the Study

The study is significant in that it would serve as a basic for future researcher who would like to carry out a research on a similar topic. It would also give an impetus to policy makers on how best to improve incentives on employee performance in an organization especially the Nigerian Breweries Plc. Also the result of this study would give relatively good understanding on the effect of incentive on employee performance in an organization.

1.6    Scope of the Study

The study shall cover Nigerian Breweries Plc Kaduna. In relation to motivational (incentive) tools been used to affect its employee to theories of motivation (incentive), importance of incentive and its impact on the employee’s working environments.

1.7    Limitation of the Study

1. Inaccessibility of sufficient research material: The materials used for the research were not readily available and adequate enough for a comprehensive research as desired by the researcher must comment lent books and other relevant publication in libraries within and outside the school.
2. Uncooperative attitude of respondent: These were some respondents that were not ready to answer vital information for the purpose of this research such valuable information was considered to be confidential and as well ere not ready to release confidential secret of the organization.
3. Low Return rate of Questionnaire: Some of the questionnaires distributed to respondents without properly filling as such that they were not used in analyzing the data.
4. Academic pressure: This is the frequent test in school, assignment and always pay visit to library in the search of relevant material hampered the researcher in writing a name comprehensive and better research work done.
5. Finance: This was another area where the researcher faced differently but with the help of God and his divine provision the work was done.

1.8    Historical Background of the Case Study

Nigerian Breweries Plc (NB) is the pioneer and largest brewering company in Niegria. The company was incorporated on 16th November 1946, under the name, Nigerian Brewery Limited. The name changed on 7th January 1957 to Nigerian Breweries Limited and thereafter to Nigerian Breweries Plc in 1990 when the Companies and Allied Matetrs Act of the year came into effect.

The company is a subsidiary of Heineken N.V of the Netherlands the lather having a 54.10% interest in the equity of Nigerian Breweries Plc. NB recorded a landmark when the first bottle of star lager beer rolled off the bottling lines in its Lagos Brewery in June 1949. This was followed by Aba Brewery which was commissioned in 1957, Kaduna Brewery in 1963 and Ibadan Brewery in 1982. In September 1993, the company acquired its fifth brewery in Enugu, while in October 2003, a sixth and biggest brewery sited in Ama Enugu state was commissioned.

Thus, from the humble beginning in 1946, Nigerian Breweries Plc has eight operational breweries from which its high quality products are distributed to all parts of Nigeria, in addition to the ultra modern malting plants in Aba and Kaduna.

Products: The company portfolio of high quality brand, including:

1. Star lager beer (launched in 1949) in pale lager
2. Gulder lager (1970) pale lager
3. Legend extra stout (1992) 7.5% ABV Extra Stout
4. Heineken (June 1998) premium lager
5. Gold berg lager
6. Life continental lager

Alcohol Free Drinks

1. Maltina (1976) in the varieties namely Maltina classic, Maltina strawberry and maltina pineapple, Maltina Sip-it (2005) in tetrapak
2. Amstel malta (1994)
3. Fayroz in pear and pineapple
4. Climax energy drink
5. Malta Gold (Became part of Nigerian brewery family in October 2011.

Most of the product are packed in returnable bottles and all products are now available in cans. Fayrouz is also produced in PET.

Nigeria Breweries keep pace with key international development, thus ensuring that its systems,s processes and operational procedures are always in conformity with world class standards. This is in line with this policy that the company established a research and development centre in 19876 to enhance its research activities on all aspects of brewing operations. The company is a socially responsible corporate citizen with a very good record of corporate philanthropy in the areas of education, the environment (water) and sports, among others. Thus company in 1994 established an Education Trust Fund of N100m to take more active part in funding of educational and research facilities in high institutions, all in an effort to provide and encourage academic excellence in Nigeria. This is in addition to its secondary and university scholarship programme for children of it employees.

Nigerian Breweries is the foremost sponsor of sport by variety in the country with sponsorship covering football, athletics, tennis, cycling, chess, golf, badminton, dart and boat racing. The aim of the company is to develop Nigeria sportsmen and women and to participate in national and international sports and boost the sport profile of the country.

1.9    Definition of Terms

In research of this nature, it is quite necessary to define some of the key occurring terms. The essence is to make them operational in the context in which they have been used.

Human Resource: This refers to the people who work for an organization (employee).

Performance: This is a measure of how well the employee do in the organization so as to achieve the goals and objectives.

Satisfaction: The state of being contended, pleased or the state of acquiring what one wants or needs the act of satisfying.

Remuneration: This simply mean amount of money that is paid for somebody for the work that have been done.

Organization: This is a cooperative and coordinated social system of two or more people with a common purpose.

Incentives: This is something that encourage action or effort.