An Appraisal Of The Relevance Of Financial Incentives To Workers Motivation (A Case Study Of National Board For Technical Education, Kaduna)
A part from the basic objectives of this research thesis, the impartial fulfillment for the award of master degree in Public Administration in the Department of political Science And Defence Studies, Nigerian Defecnce Academy, Kaduna. The thesis was conducted primarily to ascertain the effectiveness of financial incentives to workers motivation in National Board for Technical Education.
The whole research was divided into five chapters. Chapter one deals with the General Introduction, Background to the study, Statement of the Research Problems, Study, Research Questions, Objectives of the study, Hypothesis, Significant of the study, Methodology, Sources of Data Collections, Scope and Limitations of the Study and Definitions of Terms.
While Chapter two highlight Literature Review and Theatrical Frame Work, introduction motivation Concepts, Extrinsic Motivation, Six basic Desires Concepts, Transcendent motivation, Self determination and Self Control, Motivation and Incentives as viewed by various School of Thought, Theoretical Framework and Incentive theory.
However, Chapter three discussed extensively on the Historical Background of National Board for Technical Education, Kaduna. Introduction, Functions of the Board, The Structures of the Board, The Departments of the Board, Major Achievement of the Board, Challenges of the Board, Lingering issues in Federal Polytechnics.
Chapter four, presented and analyzed financial incentives to workers motivation in National Board for Technical Education, Data presentations and Analysis, Presentation of Tables, Pie Chart Computation and Major findings.
Chapter five, highlighted the Summary, Conclusion and Recommendations of the Study, Appendices and Bibliography of the Thesis. The researcher gave some recommendations which we hope will help to minimize the problems and enhance productivity, efficiency and Industrial harmony in the Organization. More so, in identifying the above problems not intented to discredit the present system being in operation in the organization but there are merely views as depicted through and felt in the course of the research carried out.
If researcher’s views and suggestions were implemented well, it may definitely lead to greater productivity, job satisfactions and Industrial harmony between the workers and Management of National Board for Technical Education, which will stand the test of time and assist in enhancing workers performance.
Table of Contents
- Title Page
- Table of Content
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Research Questions
- 1.4 Objectives of the Study
- 1.5 Hypothesis
- 1.6 Significance of the Study
- 1.7 Methodology
- 1.7.1 Sources of Data Collection
- 1.8 Scope and limitation of the Study
- 1.8 Definitions of Terms
Literature Review and Theatrical Frame Work
- 2.0 Introduction
- 2.1.1 Motivation Concepts
- 2.1.2 Intrinsic motivation and the sixteen basic desires concepts
- 2.1.3 Transcendent motivation, self determination and Self Control
- 2.1.4 Motivation and incentives as view by various School of thought.
- 2.2 Theoretical Framework
- 2.2.1 Theoretical Theory
- 3.0 Introduction
- 3.1.1 Functions of the Board
- 3.1.2 The Structures of the Board
- 3.1.3 The Board is Structured into Four Departments
- 3.2 Major Achievements of the Board
- 3.3 Challenges of the Board
- 3.4 Lingering Issues in Federal Polytechnics
Financial Incentives to Workers Motivation in NBTE
- 4.1 Introduction
- 4.2 Data Preparation and Analysis
- 4.3 Pie Chart Computations
- 4.4 Major Findings
Summary, Conclusion and Recommendations
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendations
1.1 Background to the Study
In the word of Armstrong (1988), the process of motivation is initiated by the conscious and unconscious recognition of an unsatisfied need. A goal is then established which, it is thought will satisfy the need and of course action is determined that lead towards the attainment of a goal. Management should provide incentive schemes and pay workers on the basis of the result they achieve on the job instead of the more physical routine performance series activities and to retain them on their job making them feel satisfied, a motivationally-oriented wage system must adequately distinguish “Naira” wise between the different levels of efficiency for the people performing essentially job and different job categories and specialization.
In every organization, the management emphasis on high productivity, quality of services, quality workmanship, industrial peace, cooperative labour etc. On the other hand, employees need fair wages, job satisfaction, good working conditions, participation in decision making, self recognition and opportunity for advancement.
Organizations and managers have suffered tremendously in trying to utilize their human resources, they usually encounter frequent industrial conflicts and several unresolved agitations by workers and different categories of employees basically steaming from one form of dissatisfaction or the other. The main point of misunderstanding between management and employees/workers in most cases is found in the arrears of inadequate and inequitable monetary rewards.
Financial incentive as we all know is a process of guiding the conduct and influencing people so that they strives individual or group towards the achievement of group goals. Every employee comes to an organization with one motive, to earn a living and financial incentive play a vital role in the lives of these employees. Taking away financial incentive might jeopardize this individual or the group interest. Management on the other hand, established the organization for the purpose of return of investment and profit making, high productivity, quality of services, industrial peace, cooperative labour and to remain a going concern. Skinner B. F. (1953), states that by providing properly scheduled rewards is possible to influence behaviours.
The objective and purpose of this study is to examine whether or not financial incentives has contributed to workers performance and industrial harmony in National Board for technical Education. This research is by no means exhaustive but will help the establishment to take a second look that financial incentives has a significant role to play in maintaining industrial peace, increase productivity and boost the morale of the employees in an establishment.
It has generally been observed and noted that in a sample group of workers performing the same type of job, some do it better than others. This observation will raise and arouse the notion or questions or psychological tendencies, interest and differences in performance. One school of though holds the view that “differences in performance reflect varying characteristics, abilities and skills on the part of ‘workers’. F.B. Skinner, (1985), an Industrial psychologist argues that differences in performance of workers doing the same kind of job, might be as a result of extra monetary rewards attached to the job, conductive working environment or friends they meet in the workplace.
As a result of these possibilities, recognition and thorough understanding of workers needs/wants before adopting any form of motivational techniques such as financial rewards (money) human relations, conducive, working environment, leadership and good supervision among others, becomes apparently important since these factors has different influence and impact on different categories of workers and individuals.
The complexity of human nature, expectation, urges and drives/motives make the art of motivation of workers and employees a critical and complex point for consideration. A definite answer could not be reached since people differ in characteristics, background, traits, and needs. Thus it becomes imperative for the manager to incorporate positive motivational incentive programmes to motivate workers behaviour towards achievement of predetermine goals and objective of the organization.
Motivation is a very important issues in managing people. A happy employee is said to be a motivated employee. So it is important for managers, especially human resource managers to figure out what motivate an employee to excel at his/her work. Workers in any organization need something to keep them working. Most times the salary of the employee is not enough to keep him/her working for an organization due to economic factors and other variables. Sometime also just working for salary is not enough for employees to stay in the organization. An employee needs to be adequately motivated, the absence motivation scheme results to deteriorate in quality of work/performance either on individual or at corporate level. Even in conductive work environment it is generally observed that while some people work willing, others work very willing. The question then is what is responsible for people’s motives and attitude to work.
By definition, managers work with and through people to get things done. But people are complex and their motivations are not always easy to understand. It involves the unique feelings, through past experience of individuals as they share a variety of relationships within and outside the organization. Many theories exist about motivation and most of them differ in what they suggest managers should do to obtain the most effective performance from their employees. Most successful managers, however have learned by experience that people are generally very responsive to praise and encouragement-expressed not only in words but also in actions such as financial rewards-and they need to feel successful in their work in order to give their best effort to the organization. Managers who find the key to their employees’ inner motivations can tap an immense source of productive energy.
While motivation is essentially a personal experience, managers, in particular, should be keen to find reliable links between motivation and effective performance. They should also be concerned with creating the conditions under which organizational and personal goals may be harmonized. The key feature of motivation is that it determines the extent to which an individual desires to place his/her knowledge and skill at the disposal of others, and more than that to push off the effects of obstacles and difficulties in so doing. This project work examines the motivating power and relevance of financial incentive in boasting the performance of workers.
1.2 Statement of the Research Problem
The general concept of financial incentives is one form of motivating techniques and its indispensability for achievement of desired organizational goals and increase productivity and reward for performance has been a subject of controversy over the years globally generating diverse research arguments, criticisms and assumptions especially in developing country like ours.
Although many researches had been conducted on this concept, there are many avenues not yet explored and considered as per the complexities to the time understanding of what actually motivate the individuals in the work place. Organizations and managers have suffered tremendously in trying to utilize their human resources, they usually encounter frequent industrial conflicts and several unresolved agitations by workers and different categories of employees basically steaming from one form of dissatisfaction or the other. The main point of misunderstanding between management and employees/workers in most cases is found in the arrears of inadequate and inequitable monetary rewards.
One of the problems of workers in National Board for Technical Education is financial incentives which led to workers dissatisfaction and low productivity. It is evident here that the mode of financial incentives used by National Board for Technical Education has not been effective.
Secondly, there is correlation between financial incentives and workers productivity in National Board for Technical Education which the management is not implementing.
Thirdly, the problems militating against National Board for Technical Education staff is financial incentives because there are not adequately provided. Another problem is delay in paying those who have performed their duties.
1.3 Research Questions
Even in most conductive work environment, it is generally observed that; while some people work willingly, others work unwillingly, the question then is what is responsible for people’s motive/attitude to work? As one psychologist puts it, “One of the most powerful positive tools that motivate people at work is financial incentives (money) at the prime stage.
To aid the research work, the following research questions were drawn;
- What types of motivation or financial incentive do workers received at National Board for Technical Education?
- Is there any correlation between financial incentives for workers and productivity in National Board for Technical Education?
- What are the problems militating against financial incentives of staff of National Board for Technical Education?
- How can these weaknesses be overcome to enhance motivation and productivity National Board for Technical Education?
1.4 Objective of the Study
The objective of this study is to examine and highlight the negative impact of financial incentives to National Board for Technical Education staff. – It is expected that the findings of this research will be beneficial to policy makers, the Nigerian Public Sector and National Board for Technical Education.
- To analyze the objectives of this research to know whether or not financial incentives are the highest/greatest motivators to workers performance in National Board for Technical Education.
- The study is aimed at adding to the existing body of knowledge on the subject matter and serve as a useful reference source for researchers in the field.
- This study is not intended to find faults with any motivation techniques adopted by the National Board for Technical Education or negate the idea but to establish the effects and appraisal of financial rewards to their employees contribution in terms of productivity/efficiency being an indispensable management tool for achieving desired organizational goals and objectives.
The hypothesis below were made in relation with stated problems and objectives of the study
- Lack of financial incentives has been the major impediment to workers motivation in National Board for Technical Education.
- Financial incentive has been the major boost/influence to workers motivation in National Board for Technical Education.
- Financial incentive can be considered by management as a indispensable tool for workers motivation in National Board for Technical Education.
1.6 Significance of the Study
Every organization in Nigeria today whether profit or non-profit oriented, is most concerned continuously with how to meet its organizational goals. A successful motivation strategy would result not only through the attainment of corporate objectives but through individual recognition or perceptions, aspirations, ability, skills and motives, desires and satisfaction. These of course, will also enhance increase in aggregate output level. Nigeria today moved far ahead from period when inducement or threat of any kind seen as effective tools of management for rapid development and growing economy.
The researchers’ choice on the topic “Appraisal of the relevance of financial incentive to workers motivation” therefore emanates from the fact that early available research on the topic seems to have conducted based on developed nations with totally different socio economic, political and other background different from ours which to some extent still is under-affluent economy.
We have witnessed in the past few years in our industries, the increased rate of industrial disharmony (strike, lock-out etc) with frequent demand for higher wages more than other countries both in the public and private sectors respectively. This of course indicates that a lot is yet to be done in human resource management particularly in the aspect of employee’s motivation (Oshomole, 2007). This study therefore is meant to contribute to the unresolved controversy as to whether or not financial remuneration is a positive incentive in motivating human behaviour at work.
For the purpose of gathering information for this research project, secondary method of data collection was used.
1.7.1. Sources of Data Collection;
The secondary methods of data collection was used. Secondary data was used by administered questionnaire on the staff of National Board for Technical Education, Annual Report, Staff Manual, Workshop, Seminar papers, Conferences, Paper presentation at NBTE floras and journals, Internets, policy Papers among others were consulted.
i. Population and Sample Size
The total population and staff strength of National Board for Technical Education Kaduna constituted a population of 308 workers and this number served as the population and sample size of this study.
ii. Sampling Technique
A random sampling method was employed for this study whereby questionnaires was administered to a cross-section involving management staff, senior/junior staff of National Board for Technical Education in different Department/Divisions
iii. Questionnaires Administered
Questionnaires was designed and administered to the different categories of National Board for Technical Education workers. Questions were intended to obtain information about the authenticity of the relevance of financial incentives in motivating National Board for Technical Education employees.
1.8 Scope and Limitations of the Study
This study is about the appraisals of financial incentives to workers motivation of National Board for Technical Education as a case study. The study therefore is limited to National Board for Technical Education only. In the course of carrying out this research work, the researcher encountered some problems among which are:
i. Accessibility to data
The researcher could not have full access to some of the information needed from the management due to the fact that the custodians of such information could not be reached.
ii. Time Wastage
Bureaucratic bottlenecks created a big problem because of continuous visit to the establishment due to unavoidable absence of people in the right position that gave birth to unnecessary time wastage and delays in completing the project work.
iii. Financial Constraints
Much spending going up and down without contacting the appropriate personnel on seat, typing cost and increase in materials needed. Despite all these constraints.
iv. Employees Attitude
Despite the fact that a questionnaire was designed to eliminate bias and misunderstanding, some employees refuse to complete the questionnaires form, due to nonchalant attitude and forgetfulness.
1.9 Definition of Terms
i. Intrinsic Motivation
Intrinsic and Extrinsic motivations refers to motivation that is driven by an interest or enjoyment in the task itself and exist within the individual rather than relying on any external pressure. While intrinsic motivation has been studied by social and educational psychologists since the early 1970s. research has found that it is usually associated with high educational achievement and enjoyment by students. Expectations of intrinsic motivation have been given in the context of Fritz Heider, (1873), attribution theory. Bandura, (1980), work on self-efficiency and Dedi and Ryan (1964), cognitive evaluation theory (see determination theory) students are likely to be intrinsically motivated if they.
- Attribute their educational results to internal factors that they can control (e.g. amount of effort they put in).
- Believe they can be effective agents in reading and reaching their desired goal (e.g. the result are determined by luck but hard work).
- Are interested in mastering a topic, rather than just rote-learning to achieve good grades.
ii. Extrinsic Motivation
This type of motivation comes from outsides of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives. Social psychologist has indicated that extrinsic rewards can lead to over-justification and a subsequent reduction intrinsic motivation.
Summary Conclusion and Recommendations
The summary of findings in this chapter is in accordance with inference deduced in chapter four on presentation and analysis of data. In trying to test the validity of hypothesis one which states that money is a strong motivator to workers performance, data obtained showed that financial rewards (money) ranked high with 33.52% in the area of 120.673% with the highest scores of 59. This was followed by job security with 20.46% in area of 73.656% with 36 scores. The acceptance of this hypothesis implies that money is a good weapon of motivation especially in our Nigerian Society taking into consideration also the prevailing economic and political situations. Every worker tends to need extra money/fat pay packets to meet up with current living standard especially at the lowest level.
Hypotheses two stating that “these financial incentives can be considered as an indispensable management tool in motivating workers to better performance” was also accepted. In the test it was observed that 61.550/0 of the sampled population agreed with the null-hypotheses. On the pie chart the “yes” response in respect of this question ranked highest with an area of 221.72% while negative response ranked 138.276% on a score of 63 with 38.41%
The acceptance of these null-hypotheses was further proved by other findings in respect of question 13 a close interview with senior and junior workers of Nigerian Board for Technical Education, Kaduna, Nigeria revealed that the absence of financial incentive can jeopardize organizational operatives/objectives and in most cases will result to conflict, frustration strike actions in the work environment. To be candid in all hypotheses tested the conclusive result is that monitory reward is a strong motivator to performance and positive productivity in Nigerian Board for Technical Education, Kaduna, Nigeria.
Motivation is an internal state beyond the ability of another person to manipulate directly. A situation external to the individual may be structured in such a way as to channel motivational forces and efforts into desired activities. Obtaining the incentive for particular behaviours satisfies the need and thus removes it, just as drinking water quenches thirst sensations.
Motivation is a complex process because of the varying needs of individuals. The incentives which appeals to and spur up one individual or worker may be less than fully successful with another worker.
Another factor that complicates the process of motivation is that, motivation changes from time to time, because the strong motivators of today may not retain the degree of potency tomorrow. Wages alone for instance will not continue to elicit the same level of motivational response in future. The manager must therefore be sensitive to the changes that take place in the economy, society and general environment.
Needs consequently, knowledge of these varying needs provides more effective employee motivation and these posses a big challenge for the management because the manager must endeavor to understand people as individuals and know each worker/employee in terms of those things that he personally want most. It is only when the manager and his organization have this type of insight that they will be in position to successfully motivate their workers.
Today financial incentive schemes are often seen though as providing the necessary motivation for workers to reach optimum level of productivity. Progressive managers now look on them like the other “panacea” as possible part of a much wider setting that must include human satisfaction and technical organizational efficiency. The need and desires that subordinates bring to their work place are also considerations that affect the application of incentive programmes.
Effective incentives when appropriately applied will give direction and expression of behaviour of organization members. The common conception on money-intrinsic motivating value fulfills maintenance needs and serves as a surrogate who contributes to the successful attainment of organizational objectives and survival. Monetary rewards is seen to be the best motivator even when it means more than money, that is, when it means such other things as status, power and achievement.
In the light of the research findings, recommendations are made as follows:
- Even though, it is true that monetary rewards are strongholds in workers motivation towards performance, but management should remember that both the incentive being offered and the kind of behaviour needed to achieve it must be viewed from the employers frame of reference because when organization offers a wage increase based on achieving a given level of performance, the employee will be motivated only if these conditions underneath are present.
- The size of the potential incentive scheme will be perceived as being worth the extra effort required to earn it.
- The employee will be interested in making more money in the instance.
- Superior performance does actually result in some kind of extra ordinary financial rewards.
- The absence of financial incentive Schemes and Programmes can jeopardize organizational operations and objectives, therefore management must make sure the incentive schemes are hinge on these factors below:
- Individual are tailored to suit the objectives of the organization.
- Role and purpose for all participants must be spelt out.
- Conditions peculiar to the organization involved should dictate an internal/external scheme that seems appropriate
- Failure to recognize and properly regulate these conditions will cause many other problems in existing schemes.
- Perceptions and considerations of equity play important role in financial incentive motivation. If behaviour is motivated by perceived probability of successful performance then, the effective manager must have discretionary ability to administer rewards for task performance, therefore to maintain better performance and to motivate individuals whose performance falls below certain standard, the organization and management must maintain overall pay reward structure that is equitable to employees and to be organization as a whole and must incorporate good payment system to its superior subordinate relations.
- Organization and managers should strive to incorporate in their motivation schemes/programmes non-financial forms of incentives such as:
- Job security
- Training & Development scheme
- Social/humane considerations for workers.
- Re-creational facilities
- The basic goal and objectives of most organization is “survival”. These goal and objective is in turn is the strategy and policy of that organization. To obtain this objective therefore, the manager should provide good financial incentive schemes and programmes that will stimulates- the workers behaviour towards effective implementation and achievement of the pre-determined goals and objectives.
- Failure to provide monetary incentive programmes may lead to frustration and aggression by employees that will reflect hostility to workers towards the survival of the organization and hamper national economy as the case may be, therefore, management should not only provide and maintain pay/equitable reward structure, but give priority to it and also constantly reviewing needs and desires of the workers at all times. Management should also recognize the need of the employees and worth of the individual in their right to seek for their own goal through working in the organization and consider these workers as individuals not as a group. This will alleviate frustration and labour turnover to enhance improvement in productivity, organizational goals and survival.
- Management should provide incentive schemes and pay workers on the basis of the result they achieve on the job instead of the more physical routine performance series activities and to retain them on their job making them feel satisfied, a motivationally-oriented wage system must adequately distinguish “Naira” wise between the different levels of efficiency for the people performing essentially job and different job categories and specialization. Increase, if any must be given voluntarily and must be large enough to have a favourable effect on the individual standard of living.
- Finally, management and organization should be involved in designing positive motivational programmes so that they encourage behaviours that will contribute meaningfully to organizational objectives. Employees usually know the lowest acceptable performance level why should the work harder than necessary? What may be needed is a conscious attempt to enlist enthusiastic contribution of effort and initiative above this bare minimum. Manager should therefore practice a philosophy of the organization and worth of the individual in their own goals through working in the organization and consider these workers as individual not as a group. This will reduce labour turnover, reduce industrial dispute and enhance improvement in productivity in the organization and it’s survival.
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