THE IMPACT OF MANAGEMENT INCENTIVE POLICIES ON WORKER’S PRODUCTIVITY (A CASE STUDY OF DANGOTE CEMENT FACTORY, OBAJANA, KOGI STATE.)

ABSTRACT
The impact of management incentive policies on worker‟s
productivity. The place of good management incentive policies on
employee‟s productivity cannot be over emphasized. Most
incentives plans are designed to help increase efficiency in the
organization. However, obtaining employee‟s acceptance of
incentive system may be difficult at the onset. This research has
been necessitated by the need of raise awareness of practitioners
and the employers of labour to the need of high productivity
through good incentive policies. The researcher‟s search light was
beamed on several theories of incentive usefulness and purpose of
a good incentive policy in an organization. Problems associated
with individual incentive plans were also enumerated with a view
to providing solutions to those problems in form of
recommendations, which is that the management should
concentrate more on individual incentive scheme whereby reward
will be based on individual effort. Organizations have divergent
policies on incentive, but towards what extent has these packages
improve productivity? This research work is significantly useful as
a reference point for subsequent researches and more useful to
every organization that that desires to achieve high productivity.
The descriptive research was adopted, while both primary and
secondary source of data were explored. The population of the
and the sample size is 100 by using Yaro Yamane
method. The study revealed that good incentive polices motivate
workers, motivated workers are happy workers and happy workers
are productive workers. The study also revealed that a monetary
incentive is essential in getting workers to perform better.
However, money is not everything for other factors are equally
important.

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