Topic: AN APPRAISAL OF THE RELEVANCE OF FINANCIAL INCENTIVES TO WORKERS MOTIVATION

Chapter One

INTRODUCTION

1.1 Background of 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 organi

1.2 Statement of 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 Aim and Objectives 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.

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