DESCRIPTION

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study

1.2   Statement of the Problem

1.3     Objectives of the Study                                                                     

1.4     Significance of the Study                                                                  

1.5     Research Questions                                                                          

1.6     Scope of the Study                                                                            

1.7     Definition of key Term                                                                      

CHAPTER TWO

LITERATURE REVIEW

2.1     Introduction                                                                                      

2.2     Conceptual Framework                                                                     

2.2.1  The Concept of Financial and Non Financial Incentives                     

2.2.2  Concept of Employee Performance                                                    

2.2.3  Concept of Performance Incentives in Workplace                             

2.2.4  The Nexus between Incentives and Productivity                                

2.3     Theoretical Framework                                                                     

2.3.1  The Evolution of Motivational Concepts                                           

2.3.2  Process Theories of Motivation                                                         

2.3.3  Need Theories                                                                                  

2.3.4  Abraham Maslow Theory                                                                 

2.3.5  Murray’s Manifest Needs Theory                                                      

2.3.6  Herzberg, and his Two-Factory Theory                                             

2.3.7  Evaluation of the Motivational Theories Reviewed                            

2.4     Empirical Literature                                                                          

2.4.1  The Effect of Financial and Non Financial Incentive to the Employee Performance                                                                                      

2.4.2  Impact of Incentive on Employee’s Motivation                                  

2.5     Summary                                                                                         

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Introduction                                                                                      

3.2     Population and Sample Size of the Study                                           

3.3     Source of Data Collection                                                                 

3.4     Method of Data Collection                                                                

3.5     Method of Data Analysis                                                                  

3.6     Summary                                                                                         

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1     Introduction                                                                                      

4.2     Analysis of Respondent’s Demographic Variables                             

4.3     Data Analysis                                                                                   

4.4     Summary of Findings                                                                       

4.5     Discussion of Findings                                                                      

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1     Summary                                                                                         

5.2     Conclusion                                                                                       

5.3     Recommendations                                                                            

Bibliography                                                                                    

Appendix I                                                                                       

Appendix II                                                                             

ABSTRACT

The study examines the effect of non-monetary rewards towards employees motivation in De-united food limited Ota, Ogun state. The research question that guided the study were: Is De-united food limited remuneration based on incentive scheme? What kind of financial incentive does De-united food limited give to its works and what are the effect on what workers? What kind of non financial incentives does De-united food limited use to boost workers productivity? What are the constraints militating against De-united food limited incentive schemes and how can it be overcome?A survey method was used for this study. The population  consisted of all Staff of De-united food limited Ota, Ogun state. Out of 158 persons, a  sample size of 70 was drawn from the total population using the stratified random sampling technique. A questionnaire developed by the researcher based on likert 5-point scale was used for the study. Mean scores was used to analyse the data based on the research questions. The research result shows that De-united food limited incentive scheme does not enhance  workers performance because, it does not take into cognizance in it remuneration and do  not even evaluate or appraisal workers  performance.It was recommended that  Other non financial incentives like lectures, seminar, symposium as well as Recreational facilities, such as club with sporting facilities, entry bar and other recreational facility that would help staff unwind after work should be designed and adopted. This will facilitate efficiency and increase productivity in De-united food limited.

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

In recent times organizations are drastically changing their method of operations, which put great focus on the Human Resource (HR) strategies and operations of an organization. Companies often claim that their employees or human capital are their most important asset. As such, work motivation and effort towards humanizing the work place has become a subject of serious focus (Oztopioik and Landmark, 2007). Though there many research on the effect of motivation on employee’s productivity has been a prominent area of interest in human resource management, it has been largely ignored by public sector scholars (Reilly, 2003).  This may have been impinged on the fact that the goods of the public sector is different from those of the private sector and  contemporary scholars of public administration believe that while private sector employees are motivated to maximize their own utilities, public sector employees should seek to maximize the social welfare of the people in the society (Wright, 2000). Luthans (2000) highlighted two types of rewards which are monetary or financial (extrinsic) and nonmonetary or non-financial (intrinsic) reward and both can be utilized positively to enhance employees performance. Financial rewards means pay-for-performance such as performance bonus, job promotion, commission, tips, gratuities and gifts etc. Non-financial rewards are non-monetary/non cash and it is a social recognition, praise and genuine appreciation etc. Lotta (2012) agreed that financial incentives are indeed effective in motivating employees. Also, Ojokuku and Sajuyigbe (2009) found out that financial incentives (pay satisfactions dimensions) have significant effect on employee’s performance. But Perry et al, (2006) discovered that financial reward is not the most motivating factor and financial incentives have a de-motivating effect among employees (Srivastava, 2001). Nelson (2004) noted that praise and recognition are the most efficient intrinsic reward that motivates an employee and leads to increased or better performance while Jensen et al (2007) see intrinsic reward as a tool that motivates employees to perform as expected. Reward had been seen to be a vital instrument in employee performance. A well rewarded employee feels that he/she is being valued by the company that he/she is working for. They are also encouraged to work harder and better if they are aware that their well-being is taken seriously by their employers, and that their career and self-development are also being honed and taken care of by their company. Employees are the engine of organization vehicles while reward is the fuel. No organization can achieve its stated objectives without its employees. Akerele (1991) blamed the productivity of Nigerian workers on several factors, among them is employer’s failure to provide adequate compensation for hard work and the indiscipline of the privileged class that arrogantly displays their wealth, which is very demoralizing to working class and consequently reduced their productivity. While research on the impact of incentives on employees’ productivity has been a prominent area of interest in human resource management; it has been largely ignored by public sector scholars (Behn, 1995; Reilly, 2003). This may have been occasioned by the fact that the goals of the public sector is different from those of the private sector; and contemporary scholars of public administration believe that while private sector employees are motivated to maximize their own utilities, public sector employees should seek to maximize the social welfare of the people in society (Wright, 2000). In other words, employees in the public sector should possess a motivational need for public service. This is referred to as public service motivation (March and Olsen, 1989; Perry, 2000; Wright, 2000). This research therefore investigates the effect of non-monetary rewards towards employee motivation in Nigeria.

1.2   Statement of the Problem

Ways in which employee are valued and rewarded can make a considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship. Failure of adoption of ample reward frameworks can have a significant negative effect on the motivation, commitment and morale of employees, hence a decline in organizational performance and effectiveness. Many organizations are suffering from high turnover rates and down falls because they do not apply non-monetary rewards that may only need little effort (Aktar, Sachu & Ali, 2012). Additionally, though organizations are channeling more resources in enhancing organizational performance, there is widespread ignorance on how employee performance could increase when managers and human resource personnel use non-monetary rewards on employees, the relationship existing between the kind of rewards and performance and how effective they can be utilized in an organization. Most importantly, the high cost of monetary rewards forces employers to give to employees sparingly, out of the failure to realize that small offers like recognition and open communication can be given any time, at very little cost, and could boost employee performance to a great extent. This proves the fact that most organizations are far away from realizing the importance of non-financial rewards; hence they continue offering monetary ones that can never be enough for employees. Although everyone needs money to obtain the smallest of essentials to live, employees prefer the benefits of non-monetary gifts and incentives for motivation in the workplace. This implies that; regardless of how monetary incentives have been used widely in organizations, sometimes they discourage creativity in the workplace, a concept that can be achieved via the use of non-monetary rewards like career development via free trainings and work orientation, this research therefore investigates the effect of non-monetary reward toward employee motivation in De-United Food Limited (DUFIL)

1.3     Objectives of the Study

The main objective of this study is to examine the effect of non-monetary rewards towards employees motivation on staff of De-united food limited. Other Specific objectives are to:

1. Assess whether staff remuneration is based on incentive schemes that motivate them.
2. Examine all financial incentives given to staff and their effect on worker productivity.
3. Identify non financial incentives used in boosting staff productivity.
4. Evaluate out the constraints militating against incentive scheme De-united food limited and make recommendations to the identified problems.

1.4     Significance of the Study

This study brings to light the effect of non-monetary rewards towards employees motivations on staff performance in organization. The study may therefore be beneficial to the organization understudy in area of policy formulations as regard staff incentive schemes and remuneration.

To education, the study may contribute to already existing knowledge on the effect of financial and non financial incentives on workers’ performance.

Finally, to those in academics and human resource researches, the study may serve as a springboard for further investigations.

1.5     Research Questions

This study  provide answers to the following research questions:

1. Is De-united food limited’s remuneration based on incentive scheme that motivate staff performance?
2. What kind of financial incentive do De-united food limited give to its workers and what are their effect on workers productivity?
3. What kind of non financial incentive do De-united food limited use to boost workers productivity?
4. What are the constraints militating against De-united food limited incentive scheme and how can these constraints be overcome?

1.6     Scope of the Study

The study covers an empirical investigation of the effect of  non monetary motivation on staff productivity in De-united food limited. The main scope and time frame for this investigation covers De-united food limited incentive schemes.

1.7     Definition of key Term

The key terms below were used in this study

Financial Incentives: Monetary reward or compensation use to motivate workers.

Non Financial Incentives: Other incentives apart from monetary rewards.

Performance Incentive: Rewards that motivates worker to put in more efforts.

Productivity: The rate at which employee work and their yield in their organization.

Adequate Motivation: These are factors (familiarity, concern and driving

force), which exist or are provided in a work situation either physically or

psychologically which determine the input and productivity level of the worker.

Implication of Motivation: The term could be defined as the work disposition of an employee, which affects the mode of doing his work.

Intimacy: Intimacy or Familiarity could be described as the feeling of warmth and friendliness based on interpersonal relationship among people.

Consideration: Consideration or Concern refers to a situation where both their colleagues and managers treat staffs with understanding. In this case, there is both a personal and human touch in dealing with workers,

Thrust: Thrust or driving force deals with leadership by example as a means of motivating subordinates. Leadership in this context takes personal interest in staff while also displaying a high degree of professional competence and dynamic leadership qualities.

Morale: Moral refers to staff emotional and mental level of zeal.

Productivity: Productivity is the relationship between the amount of one or more inputs and the amount of outputs from a clearly identified process.

Permanent Staff: Permanent staff refers to those experienced member of staff who irrespective of their ages have been working for a minimum period of five years

Contract Staff: Members of staff who irrespective of their academic

accomplishments and status are  regarded as adhoc staff.

Management Staff: Management staff refers to those member of staff who

irrespective of their ages have attain grade level 6 and above.

Training: The process of increasing knowledge and skills of staffs in doing their job.

Development: The process of adding to the skills of workers, improving their general knowledge and altering their attitudes.

Productivity: A rate at which workers produce goods or services.

Human capital: Workers’ skills and abilities considered as resources to business.

H. R. M: An acronym for human resource management.