The Impacts Of Incentives In The Private Sector Worker’s Performance (Case Study Adama Beverages Yola)

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The Impacts Of Incentives In The Private Sector Worker’s Performance (Case Study Adama Beverages Yola)


The study examines the role of incentives in improving the economic performance; productivity of employees. The study focused on Adama Beverages.

The methodology employed is survey questionnaire to be administer to a sample of 150 employees of Adama Beverages company, Statistical packages for social science was used as the method for analysis which were for descriptive statistic, simple frequency table, percentage analysis, inferential statistic and person chi-square.

The study reveals the following findings: Incentives factors have great significance on organizational effectiveness and productivity. The workers of Adama Beverages are not satisfied with the bonus/reward, promotional opportunities, recognition on good performance, recognition from the contribution in the organization, medical benefit, in their organization.

The study concludes that the role of incentives plays a significant role in improving the economic performance; productivity of employees. The study further recommends that: There is need for management of beverages companies precisely Adama beverages to re-evaluate on the type of activities that they initiate on employees. Beverages companies must improve the safety, provide accurate, timely information and make the employees have a favourable incentives to enable the employees give there best. The satisfaction level of employees towards incentives giving by beverages companies should always be known by the management, and to study the safety, assurance and flexibility of there sincerity.

Chapter One


1.1 Background of the study

There has been a general trend of satisfying employees in public and private firms over the past decade. These initiatives reflect a general shift that is complete in the organization to carry out their functions actively. Understanding the impact of different types of incentives on the individual in private firm has been acknowledged on a larger context, there have been major changes to incentives in organizations now in today work environment (McDonald et al., 2010)

Many private sector organizations are implementing different strategies of reward, motivating the employees to perform beyond expectations. Incentive can be in the form of rewards, motivation, or financial benefit, which can be monetary incentives or non-monetary incentives as the case may be. This is because it gives a sense of belonging and fulfillment in satisfying the social and other physical needs of the employees. Companies are now increasing their commitment to employee’s productivity; their performance is of great concern. Different policies are being employed as a tool and rewards systems to enhance the performance of the employee (Ismail, 2019)

Employee performance and wellbeing in the working environment, and beyond every aspect of lifestyle within and outside the organization. The objectives of the company will have a high chance of achieving if it is properly and befitting motivation given to the employees in an organization either private or public. Conversely, if an employee is given higher motivation, financial support it will bring and resulted in maximum productivity with quality. This is because the impact employee gets and reward system on his standard of living will encourage the morale of the worker to contribute seemingly to the overall performance of the employee in an organization. The private organization tends to reward workers with different incentive plans to boost their work behavior, performance measure, and encourage them to perform beyond their productivity. The reward system inspired the worker to provide him/her with incentives to fill the heart of employees with satisfaction and be dedicated to discharging his/her duties with sincerity and honesty. Incentives encourage and stimulate employees to do their job better. On the other hand, the organization has to satisfy their worker with incentives which can be monetary or non-monetary which will untimely lead to performance and productivity in the working environment physical, or socially (McDonald et al., 2010)

The system of incentives adopted by an organization would have an adverse effect on their productivity and marketing plans because incentives promote worker performance, satisfaction, and general establishment being in whatever form of motivation. At times incentives are being rewarded based on meeting targets, company profitability index and general growth of the marketing outlaw. Having and Setting the best people to work in an organization is not enough, but also to set them in terms of competencies, productivity, and capabilities but they must also have an ability to work,. Motivation is the promoter of hard work, dedication and service in an organization.

Motivation depends on certain factors that are intrinsic and extrinsic; incentives rewards are prime factors that impact and influence employee performance, the two major forms of incentives discuses above will be considered under this study.

The reward system can be manifested with different incentives to reduce stress and anxiety and some of the problems that weaken the worker, in general, the need of the worker can be salary which will make and satisfy the need sense both psychological and security, Job security has to do with technological changes, most especially in industrial changes and anything that posed threat to security of the worker. Sometimes workers need time for recreational programs and creating friendships, socialize with colleagues and friends.

The purpose of the study is the impact of incentives in the private sector on worker performance in an organization, we considered Adama beverage as our case study here in Yola Metropolis of Adamawa State Nigeria. A lot of private companies consider incentives relevance because it motivate the employees and make them productive and attractive to do their role work scheduled. Incentives are of two types based on our discussion and research as we established from the beginning.

Incentives can be classified into two these are: monetary incentive and non-monetary incentive, another name for monetary incentives is also called tangible incentives, these are benefits accrued to workers based on performance it is believe that different incentives has great influence on performance and productivity. Monetary incentives are mostly given in the form of money, Monetary incentive are in the form of profit sharing, gain realized and calculated mostly at the end of financial year, such as bonus, benefit plan, special initiated rewards system etc. another form of incentive is called Non-monetary incentives which are usually called non-financial incentive, it is types of incentive which usually comes in the form of feedback, feedback is another way of rewarding motivating employees which is quick and efficient it is often given in a working environment most private sector. Others non-monetary incentives include: recognition in the place of work, participation, and permanency of the employees (Huttu, 2010)

1.2 Problem statement

Incentives have created a lot of challenges to workers in an organization which could be input or output. The lack of proper arrangement of adequate structure put in place to regulate the company incentive plans caused a lot of problems. Over the past years, benefits and bonuses have caused a lot of hitches frees organizational effectiveness, as a result of that we could see the effect on employee productivity. The forgoing research investigates the impact of incentive plans on Adama Beverage worker productivity. The study seeks to determine the factor responsible for worker incentive

1.3 Aim and Objective of the study

The general aim of the research is to investigate the role of incentives in improving the economic performance; productivity of employees using the case study Adama beverages.

The objectives are as follows:

  1. To determine the impact of incentive on worker productivity
  2. Determine the factors affecting worker performance

1.4 Research questions

  1. What are the factors that explain the worker’s productivity in the private sector?

1.5 Research Hypothesis

  • Incentives factors have great significance on organizational effectiveness and productivity.
  • incentive

Dependent variable: workers’ productivity.

Independent variable: Monetary incentives, Nonmonetary incentives.

1.6 Significance of the research

The significance of the research is to measure the productivity, performance of the worker in a private firm, taking into cognizance the incentive plans, benefit system, that motivate, inspired the worker in an organization; also it will contribute to the organization’s effectiveness, and know which types of incentive plans either monetary or non-monetary should be implemented to promote worker leadership, rewards system. Generally, the study will add to the company to determine the factors that contribute to worker incentive and productivity in the private sector.

1.7 Outline of the Report

The research is made up of five chapters:

  • The chapter one gives the introduction, it comprises of the background of the study, the statement of the problem, aim and objectives of the study, research questions, hypothesis, the significance of the study and definition of key terms
  • The second chapter, which is chapter two, gives a further synthesis of the literature and the theoretical framework, authors that have contributed in the same research field, and how the researcher intends to work differently from the author he cited. It also gives scholarly works who contribution in same field. It also gives an overall of works that has been done in the past in related journals
  • Chapter 3 gives the method, research design, study population, sampling size, sampling techniques, data gathering techniques, and the research methodology is discussed in this chapter
  • Chapter 4 talks about the findings of the research. The chapter gives the detail analysis of the result generated from the data, discussion and interpretations of the findings.
  • Chapter Five, which is the final chapter, gives the summary, recommendation, and conclusion are all written in the chapter based on the findings in chapter four.

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