TABLE OF CONTENTS
of Content vii
Background to the Study 1
Statement of the Problem 3
of the Study 4
of the Study 4
of the Study 5
of key Term 6
2.1 Introduction 8
Concept of Financial and Non Financial Incentives 8
of Employee Performance 11
Concept of Performance Incentives in Workplace 12
Nexus between Incentives and Productivity 13
Evolution of Motivational Concepts 17
Theories of Motivation 24
Maslow Theory 29
Manifest Needs Theory 33
and his Two-Factory Theory 36
of the Motivational Theories Reviewed 39
Effect of Financial and Non Financial Incentive to the Employee Performance 40
2.4.2 Impact of Incentive on Employee’s Motivation 54
2.5 Summary 58
3.1 Introduction 60
3.2 Population and Sample Size of the Study 60
3.3 Source of Data Collection 61
3.4 Method of Data Collection 61
3.5 Method of Data Analysis 62
3.6 Summary 62
PRESENTATION AND ANALYSIS
4.1 Introduction 63
of Respondent’s Demographic Variables 63
4.4 Summary of Findings 73
4.5 Discussion of Findings 74
CONCLUSION AND RECOMMENDATIONS
5.1 Summary 76
5.2 Conclusion 77
5.3 Recommendations 77
The study examines the effect of financial
incentives on staff productivity in Niyya foods Kaduna. The research question
that guided the study were: Is Niyya Food remuneration based on incentive
scheme? What kind of financial incentive does Niyya Food give to its works and
what are the effect on what workers? What kind of non financial incentives does
Niyya Food use to boost workers productivity? What are the constraints
militating against Niyya Food incentive schemes and how can it be overcome?A
survey method was used for this study. The population consisted of all Staff of Niyya Food Kaduna. 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 Niyya Food 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 Niyya Food.
to the Study
organizations are concerned with what should be done to achieve high level of
productivity through staff motivation using the right kind of incentive. Most
organizations in the past have been using financial incentives but their
workers are still agitating for increment in salaries. Consequently the effect
of non financial incentive becomes a burning issue in human resource management
issue of adequate motivation and consequently workers productivity is a product
of a person’s set up of needs, goals, drive and experience. By implication,
this means that factors which govern motivation, job satisfaction, workers
productivity and attitude to work differ from one society to another.
the entire issue of the implication of adequate motivation on workers productivity
is embedded in the various theories of motivation.
are motivated by various factors at different times, according to
et al, the first factor is the combination of the individual perceptions of the
expectations other people have of them, and their own expectations of themselves.
This happens because people come into work situations with various
work together in large organisations like bank, factory where they are expected
to follow orders, which they may not approve of. In addition, they may have to
obey instruction from supervisors they had no hand in selecting. This is the
type of situation where the worker might have no opportunity for
self-expression. The basic question that now arises, relates to how to create a
situation in which workers can satisfy their individual needs while working
towards organisational goals. How can workers in corporate organisation in Nigeria
who’s workers feel that their salaries are low when compared with their contemporaries
in other organisation?
such a lot of theoretical concept, principles and techniques of management have
evolved in response to these challenges/ but most scholars suggest that more
conceptual and empirical work is required to show the link between financial
and non financial incentive and staff productivity is still vague but some
studies have documented in their work that financial incentive is readily
perceived as having a high instrumental value that makes putting forth extra
effort worthwhile and its has a long term effect in terms of labour turnover
rate because of comparative value for alternative employment while non
financial incentive has less initial impact as the pragmatics of financial
gain, they seem to have a steady, sustainable impact(Egbe,2008).
the growing body of literature and empirical study on the effect of non financial incentive on workers
productivity, the subject matter still remains complex. Hence, the need to
undertake a survey on the effect of non
monetary incentives on staff productivity in Niyya food and drinks company Ltd
of the Problem
organizations in Nigeria are constraint with the problem of using non
performance based element like salaries to compensate it staff as against
performance-related pay structure which has hamper productivity because it does
not make worker put in extra effort in their work. This is so because their
compensation is not based on incentive schemes that elicit additional effort of
workers sequel to unfriendly government legislation on wages clause and
bureaucratic inefficiency. Hence the need for the research to examine the
effect of non monetary incentive on
employee productivity in Niyya Food and drinks Ltd Kaduna.
1.3 Objectives of the Study
main objective of this study is to examine the effect of non monetary incentive
on staff of Niyya food and drinks Kaduna. Other Specific objectives are to:
Assess whether staff remuneration is
based on incentive schemes that motivate them.
Examine all financial incentives given
to staff and their effect on worker productivity.
Identify non financial incentives used
in boosting staff productivity.
Evaluate out the constraints militating
against incentive scheme Niyya Food and drinks and make recommendations to the
1.4 Significance of the Study
study brings to light the effect of non monetary incentives 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
education, the study may contribute to already existing knowledge on the effect
of financial and non financial incentives on workers’ performance.
to those in academics and human resource researches, the study may serve as a
springboard for further investigations.
1.5 Research Questions
study provide answers to the following
Is Niyya Food and drinks limited’s
remuneration based on incentive scheme that motivate staff performance?
What kind of financial incentive do
Niyya food and drinks give to its workers and what are their effect on workers
What kind of non financial incentive do
Niyya food and drinks use to boost workers productivity?
What are the constraints militating
against Niyya Food and drinks incentive scheme and how can these constraints be
1.6 Scope of the Study
study covers an empirical investigation of the effect of non monetary motivation on staff productivity
in Niyya Food and drinks. The main scope and time frame for this investigation
covers Niyya Food and drinks incentive schemes from 2006-2011.
1.7 Definition of key Term
key terms below were used in this study
Monetary reward or compensation use to motivate workers.
Financial Incentives: Other incentives apart from monetary
Rewards that motivates worker to put in more efforts.
The rate at which employee work and their yield in their organization.
These are factors (familiarity, concern and driving
which exist or are provided in a work situation either physically or
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 or Familiarity could be described as the feeling of warmth and
friendliness based on interpersonal relationship among people.
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 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
Moral refers to staff emotional and mental level of zeal.
Productivity is the relationship between the amount of one or more inputs and
the amount of outputs from a clearly identified process.
Permanent staff refers to those experienced member of staff who irrespective of
their ages have been working for a minimum period of five years
Staff: Members of staff who irrespective of their
status are regarded as adhoc staff.
Staff: Management staff refers to those member of staff
irrespective of their
ages have attain grade level 6 and above.
The process of increasing knowledge and skills of staffs in doing their job.
The process of adding to the skills of workers, improving their general
knowledge and altering their attitudes.
A rate at which workers produce goods or services.
capital: Workers’ skills and abilities considered as
resources to business.
R. M: An acronym for human resource management.