THE IMPACT OF INCENTIVES IN THE PRIVATE SECTOR WORKER’S PERFORMANCE

Abstract

This study was on the impact of incentives in the private sector workers performance. Three objectives were raised which included: To investigate how work and the environment might encourage employees and improve company performance in private sector, to ascertain the impact of management on employee recognition and empowerment through incentive on organization performance in private sector and  to investigate the outcome of employee, pay and benefits on organization performance in private sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected SMES in FCT Abuja. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

Any company’s or organization’s performance and advancement can be measured in terms of a variety of factors, including well-planned operations, improved administrative systems, employee work systems, compliance with rules and regulations, and management of resources. as well as many others. These are some of the most fundamental suggestions for promoting a business. However, there are a few others. When it comes to human resource management (H.R.M), an organization’s components must be kept in mind. It was reliant on the human resources it had on hand. Human resources are everything for any company or organization; while a firm need many other resources for promotion and success, it is meaningless without them. It is the man who works the equipment and makes use of other development resources. Hitt, Miller, and Colella (2006), p. 524-526

Every person has his or her own wants and desires, which he or she works to satisfy. It is not enough for an employee to be content on a material level; non-material aspects are just as important, and an employee must be satisfied on both levels. His pay, incentives, allowances, job stability, and other benefits are considered material. While non-material factors such as leaves, a pleasant working environment, and good communication among coworkers and upper management are important, all of these factors have a role in employee motivation. Employees play a critical role in the day-to-day operations of any company, especially in markets that are highly competitive and have an ever-changing environment, as the majority of theorists agree. Employees are usually the ones who determine an organization’s fate, therefore it makes sense to understand how they might be motivated. Employee motivating incentive programs have been shown to be the most widely used method in firms when it comes to employee motivation. The program’s goal is to reward productive work, reinforce excellent behavior, and pique employee interest. Performance, and how it can be improved, is a major concern for industries and organizations. As a result, many organizational scientists are fascinated by various schemes and techniques related to performance, and growth incentives are one of the techniques used in workplaces to motivate employees to achieve desired results.

In truth, the goal of incentive schemes is to develop the kind of highly trained, empowered, self-governing, and flexible workforce that businesses require today to compete. Employees want recognition and other monetary and nonmonetary rewards for a job well done. As companies look for new ways to encourage their employees, this practice is growing in popularity.

Statement of the problem

Workers in any organization require something to keep them motivated. Most of the time, an employee’s wage serves as a motivator; however, various incentive packages and programs are required to keep him or her working for a business on a consistent basis. An employee must be motivated to work for a company; otherwise, that employee’s quality of work, and all work in general, will suffer. In today’s competitive era, it is necessary and mandatory to provide various desired incentives and benefits to employees in order to keep their goal-directed performance on track.

Objective of the study

The objectives of the study are;

1. To investigate how work and the environment might encourage employees and improve company performance in private sector
2. To ascertain the impact of management on employee recognition and empowerment through incentive on organization performance in private sector
3. To investigate the outcome of employee, pay and benefits on organization performance in private sector

Research hypotheses

The following research hypotheses were formulated;

H0: there is no impact of management on employee recognition and empowerment through incentive on organization performance in private sector

H1: there is impact of management on employee recognition and empowerment through incentive on organization performance in private sector

H0: work and the environment cannot encourage employees and improve company performance in private sector

H2: work and the environment can encourage employees and improve company performance in private sector

Significance of the study

Consequently, the findings may aid in the formulation of effective management methods and policies that would have aided in the administration and achievement of organizational goals. The conclusions of this study had to elicit ideas that could help numerous organizations provide excellent service delivery. The goal of the study was to add to the expanding body of knowledge about the impact of management incentives on employee performance in firms. Furthermore, the study aimed to provide a standard for future research in the same or similar fields.

Scope and limitation of the study

The scope of the study covers the impact of incentives in the private sector workers. The study will be limited to Edustore Ng Plc, Ibadan

Research of this type is limited by these problems: 1. Time: Time factor is one of the limiting factor that affect this project work. That is the time limit allocated to complete this work is very short and does not allow for detailed investigation of the factors wanted by the researcher. 2. Insufficient literature material: The greatest hindrance is the unavailability of sufficient literature material for this work to effectively carryout the research and this has been a major constraint to the researcher. 3. Finance: In a project work like this, finance is one of the constraints that limit this research work. As a result of this, the researcher has to limit to available finance.  4. Poor response of workers(respondents): The response of the people during the interview was very poor and they responded very poor to the questions asked to them, some are incompetent to speak on such issues on the question or they will wont the answer to such questions as they think it is confidential. With this information was not let out easily, these result created a lot of complexity in the are of gathering information and made it more difficult for the respondents in getting vital information for this project.

Definition of terms

Incentive: a thing that motivates or encourages someone to do something.

Private sector: The private sector is the part of the economy that is run by individuals and companies for profit and is not state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by the government.

Worker performance: employee performance is how a member of staff fulfils the duties of their role, completes required tasks and behaves in the workplace. Measurements of performance include the quality, quantity and efficiency of work.

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