THE IMPACT OF MONETARY INCENTIVE ON ORGANIZATIONAL PERFORMANCE

(A CASE STUDY OF FIRST BANK – PLC. ENUGU)

By

NNAM IFEOMA CALISTA

Presented To

Department of Accountancy

TABLES OF CONTENT

Title page

Dedication

Acknowledgement

Table of contents

CHAPTER ONE:

INTRODUCTION

1.1 Background of the study

1.2 Statement of problem

1.3 Scope of study

1.4 Objective of the study

1.5 Limitation

1.6 Definition

CHAPTER TWO

2.0 Review of literature

2.1 Incentives and productivity

2.2 Directly related literature on incentives

2.3 Concept of incentive scheme

2.4 Types of incentive scheme

2.5 First bank of Nigeria incentive scheme

2.6 Summary of the review of the related literature

CHAPTER THREE

3.1 Summary up

3.2 Recommendation

Reference

CHAPTER ONE

1.0 INTRODUCTION

Sometimes, on wonders why some people perform more than others on the job or better still why people work hard.

Man in his natural form is somehow lazy and always tries to gravitate towards his comfort unless some kind of force of reap a positive reward as the becomes the motive for his working towards his set target (motivating factor).

Given the above illustration, management scholars have tries to define what motivation is all about.

The Webster, Encyclopedic Dictionary of the English language (1995), said that motivation relates to the senesced or year etc. that prompts an individual to act. It has to do with inner state that energizes activates or moves and therefore directs behaviour towards peoples.

In all organization, productivity is beckoned on the design of its incentives variables to balance among various management levels. Still others may not necessarily be motivated with a well packaged incentive scheme . The group believe that money is not every thing. People work for broadly defined rewards. These rewards can be broken down into two general classes know as intrinsic and extrinsic rewards.

Extrinsic rewards include figure pay proportion, complainants etc. and are often independence of the task perform and controlled by other people.

1.1 BACKGOUND OF STUDY

Incentives are objectives or goals which are capable of

satisfying what the employee views as need, drive or desire. It includes a accredited payment for improved productivity as well as environment condition for example, in infrastructures, transportation facilities, canteen services etc. in other words incentives do not only refer to wages payment but other things like job enrichment, free flow of information, gives relationship among junior and senior officers.

A higher performance must be rewarded ore that the lower performance for a felling of equity to prevail. Given this, money is likely to be motivator variables remuneration has been favored as the means of giving incentives to produce or sell increased volume or to improve the quality of their performance.

Incentives which may be seen as payment or reward for work or services rendered have been a common feature in Nigeria establishments to which first bank of Nigeria Plc. Is not an excerption. It is therefore, the objective of this that could motivate workers to greater achievement.

Management scholars and other employers of labour will also find this work heavy useful as it would enable them to be vast of the value of incentives to performance of workers, if appropriately applied. This will in effect bring great efficiency of workers if adequately employed.

First bank of Nigeria Plc., for over a country, has distinguished itself as a leading banking institution and a major contributor to the economic advancement and development of Nigeria.

1.2 THE STATEMENT OF THE PROBLEM

It is fundamentally unrealistic to assure that people would

continued to find. Satisfaction in co-operating in organization's affairs, if no interest is shown in their individual needs and problems.

It is agreed that in spite of whiteness gains must have been achievement ensuring adequate compensation among workers around the world existing (organization, programs have failed to attract, hold and motivate employees because the individual worker is not considered and he did not participate in the planning and designing of such incentives before its execution or implication.

However, the economic and social development of Nigeria depends to great extent on the ability of the public services to attract and retain the services of qualified man power. Therefore, the concept of total compensation programme has economic, social, behavvioural and legal basis or consequences. To what extent is this recognized by the first bank of Nigeria Plc. incentive scheme on the performance of workers the company.

1.3 PURPOSE OF THE STUDY

The above problems brings to first the following sub

problems:

a. What type o incentive scheme rare available on the first bank of Nigeria Plc?

b. Are employees of the company actually reaping benefits which provides job satisfaction from these scheme?

c. Is first bank of Nigeria Plc. Attaining the main objectives for administering these scheme?

d. To examine the different types of incentives schemes put on place by the first bank of Nigeria Plc.

e. To do an in dept analysis of first bank of Nigeria plc.

f. To test the effectiveness, adequacy and deviance of these incentives schemes to the overall performance of individual group of workers

g. To examine the extent the organization is achieving its objectives for administering these incentive scheme.

h. To examine to which these incentive scheme lead to attainment of workers.

1.4 SCOPE OF THE STUDY

This study is aimed at investigating the impact of monetary

incentives scheme for the performance of workers in an organization. First bank of Nigeria Plc. Enugu as modern organization was used. Because of resource constraints, a branch of first bank of Nigeria Plc. Was studied. All the department and cadres of employees were covered in the study of examine incentive admits administration in first bank Plc.

RESEARCH QUESTION

1. To what extent is the effectiveness adequacy of these

incentives schemes to the overall performance?

2. To what extent are these different types of incentive

schemes put in place the FBC Plc.?

3. To what extent do the existing compensation programme

failed to attract, hold and motivate employees?

4. To what extent is the incentive scheme lead to attainment

of job satisfaction and motivation of the worker?

5. To what extent are the employees of the company actually

reaping benefits who provides job satisfaction form the schemes?

6. To what extent is first bank of Nigeria Plc. Attaining the

main objective for administrating these scheme?

1.5 SIGNIFICANCE OF THE STUDY

It is hoped that this study when completed will assist business

enterprises in their operation and enable them to employ necessary incentive schemes and other motivational variables that would optimize the productivity and performance of their factors and incentive variable, if any that are currently militating against the smooth operations of organization and especially in banking industry.

This work will be of assistance to the management of first bank Plc., as it will enable them to restructure their incentive schemes so as to reflect the aspirations and need of their workers.

Besides, it will be of great importance to the other organizations, since it will expose them to some of the incentive. Scheme that can be employed to improve workers performance.

1.6 LIMITATION OF THE STUDY

Some problems were encountered which in one form or the

other constituted.

Limitation to the collected data:

1. the sampling frame obtained form the person department of first bank Nigeria Plc. Indicated that are than 300 staff members it was the intention of the research to obtain information from all the employee, constrains, the coverage was limited to only 101 representing about 5% of the population.

2. Out of the 101 questionnaires administered only 76 were returned thereby rendering the assured margin error unreliable.

3. Some respondents were not very co-operation and could have given non-reliable information, as they feared publicity despite the assurance by the researcher to the it every information with almost secrecy.

4. The was one of the major constraints faced by the researcher. The time allocated for the study was the small because the researcher has to attend lecturers, prepare for quizzes as an examinations and as a result the little time was devoted to the study.

REFERENCES

Adawunmi W.: Business Management Macmillan Nig. Publishing Co-limited, Lagos Nig. P.7.

The new Cexion Webster Encyclopedic Dictionary of the

Language, (Deluxe Edition) Lexion Publication Inc. Danbury.