The Impact Of Incentive Welfare Schemes On The Performance Of Workers

Project and Seminar Material for Human Resource Management (HRM)

The Impact Of Incentive Welfare Schemes On The Performance Of Workers


The main aim of the study is to know the welfare facilities strategy implementation at NEPA Enugu. Welfare facilities include statutory and non-statutory facilities i.e. health facility, good work place, working environment, good food and so on which help in motivation of the staff to achieve objectives. The environmental conditions facing many firms have changed rapidly. Today’s global competitive environment is complex, dynamic, and largely unpredictable. The study reviewed on the facilities provided by organization to its staff and the impact of these facilities in the performance of employees. This study was conducted through a case study and it was considered suitable as it allows an in-depth study of the subject on impact of welfare facilities on the performance of employees in NEPA Enugu zone.

Chapter One


1.1 Background of the Study

The administration of staff incentive scheme has now become a popular phenomenon of the total personnel policy of nay organization. The scheme involves those extra benefits which may not necessarily be money, which emanate from the kind relationship of the employer to the employees, to supplement their usual wages, from the to time which are at most times geared purposely towards the enhancement of worker performance in the organization.

This scheme, where in existence is very important to both the organization and the employees. From the employer’s point of view, it is anticipated that a good staff employees incentive schemes will induce the employees to work hard and improve their general attitude towards the organization. But for the employee, these benefit represent some additional right such as extra income, additional security or more desirable working conditions that should not required any additional effort.

In business organization, employers of labour have seen in staff welfare services, as the ability to evoke commitment and co-operation of the subordinates to contribute more to the achievement of the organization goals and aspirations. This discovery has led many employers of labour to the introduction of well packaged welfare services, with the sincere belief that a good staff services, scheme will induce staff to work hard and improve the general staff moral.

The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraised of the staff welfare scheme are defined as “something of value, a part from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work.

Staff welfare services exist, in all cultures and in all organization and had existed at all times. They like different shapes and forms and attract different names.

In recognition of their worker need fulfillment functions, they are variously called “welfare services” welfare benefit employees “income” or simply “supplementary compensation” pay and non wage remuneration”. As non-taxable income and expense, they are beginning to be called “indirect compensation and on tax benefit”.

In the past, they used to be tiny bits and pieces of goodies that occasionally fell from the light tables of paternalistic employers ie when the top management, play a fatherly role of the staff.

Its should be noted that for the company to achieve its objectives her welfare services should be adequate competitive who tailored towards the real need of the staff are directly influenced by nature quality and quantity of welfare services offered because they compare themselves with their counterparts in the organization.

In my research work and analysis I have found that workers do prefer increases in welfare services to increase in salaries especially during the period of inflation and rising prices. Workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails, workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.

1.2 Statement of the Problem

Often workers or employees are attracted to certain organizations not only because of the pay packets that are stated in the advert but also because of the benefits attached to them: These benefits usually include housing, transports and medical allowances to mention but a few.

These attractions may constitute a considerable objective is which such individuals made up their mind to serve in such organization. The absence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as efficiency of such individual’s performance, which will in turn reflect on the organization’s productivity.

Examples a bound where organizations in recent times, have been faced with instant agitation from the workers union and staff association, poor administration of the existing ones or total withdrawal of these benefits. These dissatisfaction expressed by the staff either on the provision or administration to staff welfare service. Activities become same serious problems, which demand my proper investigation and examination in order to find lasting solution to them. These assetions will be examined with respect to a govenrmetn owned enterprise called “THE NATIONAL ELECTRIC POWER AUTHORITY PLC, ENUGU ZONE.

1.3 Objective / Purpose of the Study

The objective or purpose of this study is as follows:

  1. To ascertain whether any of the services formally by the staff in the company has been withdrawn and the reasons that necessitated they’re withdrawal.
  2. To ascertain whether there is other benefit which the staff demanded for effective performance of their jobs that are not yet provided.
  3. To ascertain the problems of any that is encounter by the company in the administration of welfare services.
  4. To determine the effectiveness or otherwise of staff welfare program in national electric power authority as perceived by the staff.
  5. To make recommendation based on this study on how to improve the provision and administration staff welfare scheme in NEPA Plc Enugu zone if need be.

1.4 Research Hypotheses

  1. H0: there is no challenges encounter by the company in the administration of welfare services
    H1: there are challenges encounter by the company in the administration of welfare services
  2. H0: staff welfare program in national electric power authority is not effective as perceived by the staff
    H2: staff welfare program in national electric power authority is very effective as perceived by the staff

1.5 Scope and Limitation of the Study

In the nature of the research, students are often faced with many constraints. To evade some of these constraints, students are now required to carryout a case study where a small area will be selected for study sued as a reference point for large areas. So the scope of this study covers only a large spectrum of government owned enterprise in Nigeria called NEPA Plc Enugu zone.It is hoped that the study of the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria. Below are some of the limitation of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study.

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Finance:

The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

1.6 Significances of the Study

The role that a comprehensive staff welfare scheme plays in the efficiency with which an average worker discharges his responsibilities and the achievement of the overall corporate of an organization cannot be under played. Organization thus, try as much as possible to attain their corporate objectives by helping their staff to accomplish their own personal objectives. This they do by setting up ideal welfare scheme for the benefit of their staff. In another breadth, it is a matter of curiosity to observe who might be pondering on the new welfare scheme that I would be evolved by NEPA Plc Enugu zone, considering the circumstances in which the company as a new cooperate body is formed, leaving behind tow clearly distinct staff welfare scheme.

1.7 Definition of Terms

For the purpose of this research work the following key works are defined as follows:


Any person who enters into a company, through an (employers) in return for wages salary or other valuable consideration. In this research work, this embraces both those ordinarily involved with the execution of the assigned work and those involved in the day decision making of the firm.


Is a wide variety of services that is provided by companies for their staff, and in some cases for members of staff families. This word shall be used in this research interchangeable with fringes benefits, employee benefits, welfare services, supplementary benefits and supplementary compensation.


This refers to a predetermined agreement of programmes events or development planned to accrue to a given expected outcome.

Monetary Incentive

Monetary incentive is a money-based reward given when an employee meets or exceeds expectations. Monetary incentives can include cash bonuses, stock options, profit-sharing and any other type of reward that increases an employee’s compensation


Motivation is the reason for people’s actions, desires, and needs. Motivation is also one’s direction to behavior, or what causes a person to want to repeat a behavior.


Productivity describes various measures of the efficiency of production. A productivity measure is expressed as the ratio of output to inputs used in a production process, i.e. output per unit of input


A person who does a specified type of work or who works in a specified way, a person who achieves a specified thing

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this research was aimed at finding out the “impact of incentives welfare on the performance of workers

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges associated with motivation of employees performance in NEPA Enugu zone.

5.2 Summary

The main goal of this study was for knowing the existing welfare status, awareness and implementation of employee welfare facilities and its impact on the performance of the employees of workers Taking into consideration, all the principles of “labor welfare” like social responsibility, efficiency, participation, accountability and timeliness all of these aim to convey that inducing an employee welfare program which helps to build up a sense of loyalty which will helps to achieve organizational goals.

5.3 Conclusion

The findings with regard to public sector’s job satisfaction and motivation display a general dominance of intrinsic motivation that may have induced public workers to choose public sector jobs. The findings of the study shows that, any organizations that pay sufficient attention to its staffs motivation will always improve their organizational performance. By linking rewards to employee performance, you can increase employee motivation and achieve winning results. It was discovered that if workers are not satisfied with their wages, they lack motivation and this mostly expressed to professional and administrative levels of employees and a bit less concerns high-level managers in public sectors. Low wage incentives as motivational factors have significant impact on the performance of workers in public administrations. The lack of motivation has negative impacts not just on low performance in the sector, but also this increases the opportunity for corruption under public sector workers.

From the research study, we have reached to the conclusion that public sector employees and private sector employees were ranking the motivational dimensions in the different order. The results of study have confirmed that work motivation of organizations is significantly dependent upon their salary, fringe benefit, efficiency in work, quality supervision, and co-worker relationship.

5.4 Recommendations

The following recommendations are considered:

  1. The management of National Identity Card Management Commission Abuja should find ways to motivate their employees to work up to the maximum level, improve their work attitudes towards work values and the most important is to be aware of public opinion towards the public service.
  2. Proper and efficient working conditions should be instituted in the public offices to help increase employees performance level.
  3. Also better compensation and rewards systems should be instituted by the heads of the public institutions to aid employee work harder in the various public corporations.
  4. In addition, the heads of the various public institutions should organise training programs meant to increase the knowledge and skills of employees.
  5. Employees who work harder and perform well and meet their targets should be motivated by their respective organizations by giving them a special treatment in terms of incentives like bonus etc. to induce others to follow their footsteps.

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