THE IMPACT OF MONETARY INCENTIVE ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF FIRST BANK PLC ENUGU)

CHAPTER ONE

INTRODUCTION

          Sometime, one wonders why some people perform more then others on the job or better still why people work hard. Man in his natural form is somehow lazy and always tries to gravitate towards his comfort zone unless some kind of force or situation that arouses his desire to move out of this comfort zone in order to avert negative consequences or reap a positive reward as the ease may be. These forces of situation now become the motive for his working towards his set target (motivating factor).

          Given the above illustration management scholars have tried to defined what motivation is all.  The Webster Encyclopedic Dictionary of the English Language (1995) said that motivation relates t the tense, need or fear etc. that prompts on individual to act. Also, Wole Adewuni (1992) defined motivation as “the inner stimulus that induces one to behave the way he does”. It has to do with that inner state that energizes, activates or moves and therefore directs behaviour towards goals.

          In all organization, productivity is beckoned on the design of its incentive variables to balance among various management levels. There are several incentive variables that could motivate people to work in their optimal level and when these variables are not there, their productivity will be greatly affected. This may come in the form of a well packaged remuneration. Still others may not necessarily be motivated with a well packaged incentive scheme. The group believes that is not everything.

          Starke (1976:35) is of the opinion that “people work for broadly defined rewards can be broken down into two general classes known as intrinsic and extrinsic rewards.

          Extrinsic rewards include figure pay proportion, compliments etc and are often independent of the task performed and are controlled by other people. Intrinsic rewards on the other hand include the feeling of accomplishment of task and are administered by the individual during the task. However, workers performance in an organization depends on these rewards among other incentives which may in one way or the other command job satisfaction.