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IMPACT OF NON-FINANCIAL MOTIVATION SCHEMES ON CONSTRUCTION WORKERS’ OUPUT IN NIGERIA

CHAPTER ONE                                                      

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

It is worthwhile to take a closer took at the impact of non-financial incentives as motivational strategies in achieving organizational objectives.

People act only when they have a reasonable expectation that their actions will lead to a desired goal. Because of this, employers put in more in motivating employees and one of the ways through which this (motivating) can be done, is through the means of non-financial incentives so that workers are treated in right manner in order to accomplish the organization’s objectives. Although organizations are being faced with what resources to give out as these non-financial incentives, because of the poor state of the economy.

The dynamic state of the economy had led the federal government to take some measures to stop the downward economic trend which has adversely affected many organizations. For instance, a good number of companies have cut down their incentives and some have even stopped giving any to their employees. This has prompted me to write on Non-Financial Incentives as Motivational Strategies in achieving organizational objectives.

Non-financial incentives can be defined as the benefits given to workers by their employers other than wages and salaries, either in kind or services. However, there is an important group of motivating forces that can be considered under the broad heading of “Non-Financial Incentives”. The management of a company cannot afford to overlook these incentives or forces which intangible though they may be, have much to do with the spirit of an organization and its power of accomplishment.

According to the result of the study made by the Committee headed by General Johnson of Johnson in Maryland, U.S.A. (1960). “Top Management Handbook”, showed that the following are important requisite of a successful organization.

a.           Every member of the organization must be proud of his work.

b.           Everyone must be proud of the reputation of his company.

c.           All must have a sense of belonging.

But the attitude of both employees and the general public towards this programme has changed considerably. The various legislation’s that are being passed by the government had led many to believe that the private firm is morally responsible for the lives of its employees, it is no longer what the employers need to introduce, but a requirement imposed by government, competitors or the labour unions. Examples of such legislation made by the government are:

a.         The Productivity, Prices and Income Act of 1977.

b.         The Labour Decree of 1974.

c.         Employees Housing Scheme (Special Provisions) Act of 1979, which regulates the terms and conditions of employment and collective bargaining and agreement.

As stated earlier that non-financial incentives is motivational strategies, one would want to ask the meaning of motivation.

Motivation can be defined as the psychological process that gives behaviour and direction. By appealing to this process, managers attempt to get individuals to willingly perform an activity or willingly pursue organizational objectives. When this activity is conditioned by the ability to satisfy an individual’s wants, it can also be referred to as the ways, urges, aspirations, drives and needs of human beings that direct, control or explain their behaviours. It can also be looked at as the conditions, which influences the arousal, direction and maintenance of behaviours relevant in work settings. Every organization exist to accomplish particular objective and individuals to satisfy some needs.

However, since all organizations cannot achieve all its objectives and individuals cannot fulfill all their needs, the manager has the responsibility of directing individuals so that they can satisfy their needs, the manager has the responsibility of directing individuals so that they can satisfy their needs as much as possibly while they still strive to accomplish organizational objectives. Managers must therefore study how to motivate every employee or group of employees in a way that fits their particular status or attitude. Some of the factors that can satisfy an individual or group of workers include:

a.           Job enrichment

b.           Job rotation

c.           Job retention

d.           Conducive work environment

e.           Positive criticisms

f.            Participation in all levels of the decision process

g.           Recognition for contribution made in the organization

h.           Extrinsic rewards.

These will help in achieving the overall objectives of the organization which may be in form of

a.           Reduction in absenteeism rate.

b.           Improved morale and loyalty

c.           Reduction of union influence and

d.           Ability of the employees to grow.

Therefore, any Nigerian organization that plans to achieve better job performance that will enhance the attainment of the organization’s objectives, through its workforce, should endeavour to motivate the workforce not only by improving the social factors i.e. supervision, interpersonal relationship, company policies and administration and working conditions described by Herzberg as “Hygiene Factors”, but also introduce what Herzberg called true motivators i.e. work itself, advancement, recognition for achievement and responsibility.

1.2      STATEMENT OF PROBLEM

Human resources management is a vital ingredient for achieving organization’s objectives. One of the strategies for proper management of human resources is through the use of non-financial incentives to motivate workers. Meanwhile, only few of the empirical studies on motivation has been able to identify their impact on organization’s objectives.

So, the main issue to be addressed by this study is the impact or value of non-financial incentives as a means of motivating workers in achieving company’s objectives.

1.3      PURPOSE OF STUDY

The vital importance of non-financial incentives as a means of satisfying employee’s needs which could inspire them to work hard cannot be over emphasized, but at the same time the fact that motivation is inherent in human beings remains.

The purpose of this study is to find out the motivational impact of non-financial incentives on employees’ productivity and efficiency in achieving organizational objectives. This study is designed to

a.           Determine the extent to which non-financial incentives can motivate workers.

b.           Analyze the impact of non-financial incentives on workers’ productivity in achieving organizational objectives.

c.           Make recommendation(s) for further improvement in employees motivation where necessary.

d.           Identify possible operational problems associated with workers motivation and recommend possible solution to such problems.

e.           And for the partial fulfillment of the requirement for the award of the Bachelor Degree.

1.4      SIGNIFICANCE OF THE STUDY

In a contribution made by STRAUS and SAYLES: The Human problems of management, states that with the possible exception of profit-salary plans, there is no little evidence that non-financial incentives provide any direct motivation for higher productivity”. That is, non-financial incentives only help to meet employees’ needs for security.

The frustration caused by insecurity may lead to lower productivity or output, and fear of unemployment may result in workers working slowly to make the available work last longer.

Therefore, in a situation like this, managers are expected to achieve the organizational objectives by influencing the human element of the company through non-financial incentives.

However, the significance of this study will be to identify the various non-financial incentives and their impact on workers’ motivation as well as on the organization’s objective. Like any other valuable resource, people can be employed appropriately and to full capacity, or they can be wasteful depleted.

Therefore, the study shall focus on the process of getting individuals to contribute effectively and efficiently to organizational objectives through non-financial objectives.

1.5      SCOPE AND LIMITATION OF THE STUDY

The basic premise on which this study is based is that organizational objectives can be achieved by motivating employees through non-financial incentives. Therefore, this study will concentrate on motivating job performance and identifying the various non-financial incentives and their impact on worker motivation as well as on the organization’s objectives. And for this purpose, Wema Bank Plc will be used as the case study and the bank’s branch office situated at Jibowu Lagos shall be used precisely for this purpose.

Since only a branch office of Wema Bank Plc will be used as the case study, and generalization is going to be based on the findings from the case study, the possibility of making errors may be present. And also, there may be bias in filling out the questionnaire by the respondents which can affect the outcome of this study. Finally, the difficulty encountered in obtaining relevant information in the face of time constraint and the financial requirement of the study, remain the major limiting factors for the research study.

1.6      RESEARCH QUESTION

Lawal, A. A. (1994), in his book noted that “a critical look at the compensation package of most Nigerian Public Limited Companies will reveal that they officer competitive packages compared to those of government establishments. Apart from the competitive wages and salaries, public limited companies provide services such as subsidized or free catering services, free medical services, staff housing scheme. Subsidized of free transportation service, fund, bonus and pension schemes to encourage productivity”.

However, the industrial actions embarked upon by the workers of these companies reveals that there is no enough non-financial incentives offered by these companies to their employees. Therefore, it will be necessary to find out what are the non-financial incentives that motivate employees towards achieving organizational objectives. Perhaps it will be useful to put the research question thus:

i.             What impact does non-financial incentives have on workers’ motivation?

ii.           Can non-financial incentives increase employees’ productivity?

iii.         Does non-financial incentives have any impact on organizational objectives?

1.7      STATEMENT OF HYPOTHESIS THAT PROVIDE ANSWERS TO THE RESEARCH QUESTIONS

The following hypothesis will be tested:

Ho:   That non-financial incentives do not motivate workers.

H1:   That non-financial incentives motivate workers.

Ho:   That there is no positive relationship between non-financial incentives and workers’ productivity.

H1:   That there is positive relationship between non-financial incentives and workers’ productivity.

Ho:   That non-financial incentives is not positively correlated to achieving organizational objectives.

H1:   That non-financial incentives is positively correlated to achieving organizational objectives.

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