THE IMPACT OF INCENTIVE SCHEME ON EMPLOYEE PRODUCTIVITY(A CASE STUDY OF NIGERIA BOTTLING COMPANY PORT HARCOURT COCA-COLA)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In most establishments, the desire to achieve optimal level of productivity is very crucial to managerial objective. In other to achieve this management of every organization needs to be boosted though a number of incentive scheme. Researchers over the years have looked into how best workers can be motivated as well as how employees were expected to conduct themselves for the purpose of organizational effectiveness and high level of productivity. This scheme is very important to both the organization and employees. It is anticipated that a good employees incentive scheme will induce the employee to work hard and improve their general attitude towards the organization.

Numbers of research haven been conducted on this subjective matter. According  to the earliest economist, Adam (1994) he sees man as a rational animal  motivated by the desire to maximize his economic gain and his has subsequently led management, to believe that worker’s can instantly be motivated to increase productivity by means of  mere promise of more money. However, the psychological theory of motivation gives one an insight into factor which influence human behaviour on the attitude disposition of the individual.

Motivation is the sense of need, the desire that prompt an individual to act.  Abraham Mashow (1943) had developed the hierarchy of need concept to explain human behaviour in terms of need fulfillment, as part of his theory of human motivation.

Motivation is a willingness to expand energy to achieve a goal or a reward. It is a process of stimulating people to action to accomplish desired goals. Hacket (1976) Sees, motivation as something which implies a person to act, a reason for behaviour.

1.2 STATEMENT OF THE PROBLEM

Often time, workers or employee are attracted to certain organization not only because of the pay but also because of the benefit attached to them.

1. Those benefit include housing, transport, medical allowance together with pension.
2. Organization needs a system that would ensure work accomplishment through thoughtful attention to the need of work who will in turn be a development in the objective of the organization in which they work.
3. The extent to which the management of these organization have been paying attention to the purpose implementation formulated incentive plan is one major gap that this study is designed to fill.
4. The study is billed to evaluate how various incentive as may be designed by management affects employees productivity of Nigerian bottling company Port Harcourt.

1.3 OBJECTIVE OF THE STUDY

1. To ascertain how the incentive scheme are determined and how they are administered, the impact of employee productivity in production.
2. To being to the audience or management method of motivating workers through incentive in other to achieve the set goals and objective of the organization.
3. To find out the case of low performance with a view of making useful recommendation so that the service can achieve best performance standard.
4. To ascertain whether these are other benefit which staff demand for effective productivity apart from incentive scheme.

1.4 RESEARCH QUESTION

1. Do lack of incentive scheme bring about low productivity by employees in the organization, whereby performance cannot met up set standard?
2. Do employee consider incentive of their organization adequate for their increase productivity?
3. To what extent does management of these organization pay attention to the proper implementation of formulated incentive plan?
4. Does the adoption of incentive scheme impact positively to the labour turnover rate of the organization?
5. What are the factors militating against effective implementation of incentive policies in the organization.

1.5 SIGNIFICANT OF THE STUDY

The significant of this research work is aimed at getting the relevant information on motivating employees  in other to achieve organizational goals.

1. It is hoped that the findings and recommendation of the study will go a long way in providing tools as guide to the related organization that are responsible to formulate incentive policies in the organization.
2. The basic need of this research is for management to maximize resource of an organization.
3. The findings of this study will also benefit various organ of the economy.

1.6 SCOPE OF THE STUDY

The study is aimed to cover Rivers State, Port Harcourt. The coverage of the study is limited to all the workers in coca cola bottling company in Port Harcourt.

1.7 LIMITATION OF THE STUDY

Generally all aspect of human endeavor are characterized some limiting factor and the researcher is faced with some of the following.

1. TIME CONSTRAIN: As a student, the research has little time to get all the data’s needed for the study.
2. SECRECY: This limitation affect the researcher during the cause of doing the research work, in such a way that the organization in which the research was to conduct find it difficult to release file that the researcher can extract relevant information.
3. FINANCIAL: Lack of fund is a major problem due to little cash available, researcher could not go about different place to source for data.

1.8 DEFINITION OF TERMS

To enable a better understanding of this research work, some of the terms used is further explained.

BONUS: It is the payment added to what is usually given to employee.

EFFECTIVENESS: The degree to which objectives are achieved and the extent  to which      targeted   problem are solved.

EFFICIENCY: This is the extent to which time and resource is well used for the indented task.

EMPLOYEE:  An individual who provides labour to a         company or another person in return  for wages or salary.

FRINGE BENEFIT: This refer to something of value apart agreed regular monetary payment of salary given by employee  to an employer.

INCENTIVE:  It is a major instrument through which an individual can be motivated. It can be reward recognition of work or money that is most commonly used      form of incentive.

IMPACT: This is a way of evaluating change from an intervention or development programme.

MANAGEMENT:  According to Peter Ducker (1999), management is that organ of the society specially charged with making resource productive for organized advancement.

MOTIVATION: This refers to the way in which urges, , desire, aspiration, striving, needs, direct, control or explain the bahaviour of human beings.

PRODUCTIVITY:  It is efficiency in an industry by comparing the amount produced with the time taken or the used to produce it.

SALARY: It is a fixed regular payment made to employee every month for doing a  job.