The Impact Of Management Incentive Policies On Worker’s Productivity (a Case Study Of Dangote Cement Factory, Obajana, Kogi State.)

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The impact of management incentive policies on worker‟s productivity. The place of good management incentive policies on employee‟s productivity cannot be over emphasized. Most incentives plans are designed to help increase efficiency in the organization. However, obtaining employee‟s acceptance of incentive system may be difficult at the onset. This research has been necessitated by the need of raise awareness of practitioners and the employers of labour to the need of high productivity through good incentive policies. The researcher‟s search light was beamed on several theories of incentive usefulness and purpose of a good incentive policy in an organization. Problems associated with individual incentive plans were also enumerated with a view to providing solutions to those problems in form of recommendations, which is that the management should concentrate more on individual incentive scheme whereby reward will be based on individual effort. Organizations have divergent policies on incentive, but towards what extent has these packages improve productivity? This research work is significantly useful as a reference point for subsequent researches and more useful to every organization that that desires to achieve high productivity. The descriptive research was adopted, while both primary and secondary source of data were explored. The population of the study was 187 and the sample size is 127 by using Yaro Yamane method. The study revealed that good incentive polices motivate workers, motivated workers are happy workers and happy workers are productive workers. The study also revealed that a monetary incentive is essential in getting workers to perform better. However, money is not everything for other factors are equally important.
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract vi
1.1 Introduction 1
1.2 Statement of problem 3
1.3 Objectives of the study 5
1.4 Research questions 5
1.5 Significance of the study 6
1.6 Scope of the study 7
1.7 Limitation 7
2.0 Review of Related Literature 10
2.1 Theoretical Frame Work the Study 11
2.2 Historical back ground of Dangote Cement
factory, Obajana, kogi State. 25
2.3 Current literature on theories postulated 28
3.0 Research Design and Methodology 42
3.1 Research Design 42
3.2 Source Of Data 42
3.2.1 Primary Source of Data 42
3.2.2 Secondary Source of Data 42
3.3 Postulation of The Study 43
3.4 Sample Design and Determination Of Design Size 43
3.5 Method Of Data Collection 45
3.5.1 Questionnaire Design, Distribution
and Collection Of Response 45
3.6 Methods Of Data Presentation And Analysis 46
4.0 Data Presentation and Analysis 48
4.1 Demographic Characteristics 48
4.2 Presentations According To the Key
Research Questions 49
5.0 Summary of findings, conclusion
and recommendation 61
5.1 Summary of findings 51
5.2 Conclusion 63
5.3 Recommendation 64
An incentive is a form of financial encouragement recognizing a particular contribution made by the work force, in other words, it is a sum of money paid in addition to the basic rate which the organization pays to ensure that its most important production aspects are being optimized . For instance, a capital intensive company might have an incentive linked to machine utilization.
Performance incentives are payment made to an employee or group of employee based on amount of output. The use of performance incentive policies is premised on the belief that output can be measured and performance by workers, it used dated back to the era of the scientific management movement championed by Fedrick Winslow Taylor who argued passionately for the use of incentive wage system as a way of getting more output from the workers. It was also aimed at combating “soldering” or boondoggling” which was a practice of deliberate restriction of output by workers on the job as at that time. Taylor believe that workers could always exert greater efforts if they were
to be paid a financial incentive based upon the number of units of work they were able to produce. He then developed the differential rate system which gives a worker a lesser piece rate e .g #1.0 per piece if he produced less than the standard amount of output required by so doing; individual workers are motivated to produce greater output.
In every organization, large or small private or public enterprises, human resources (employees) are always the pillar of the success of the organization. The human elements have their individual drives, desires, needs, wishes and similar forces which they intend to satisfy when they are coming into an organization. The satisfaction or non-satisfaction of these needs by the organization has an impact on the behaviour or performance of the employee and eventually on productivity.
The usefulness of good incentive policies which leads to motivation of the employee cannot be over emphasized. Every organization depends on motivation among other factors for the attainment of their objectives. The monetary incentives like bonuses, wages, salary increment, e t c to put more effort in
their work which help to improve the level of productivity in both private and public industries.
Many a time, the most concern of employer is to make the employee to contribute to the attainment of organizational objectives, but they should know that if the employees are not happy with the management of the organization, there will be a very low rate of production in the organization, that is why Hekina and Jones (1967) page 120 visualize that employees should be seen and valued as assets for the allocation of organizational resources. This project will be based on the impact of management incentive policies on workers‟ productivity using Dangote cement factory obajana, kogi state as a case study.
Most incentive plans are designed to assist in increasing efficiency in the organization. However, obtaining employees acceptance of an incentive system may be difficult at the onset. There may be fear that the plan will lead to a speed up layoffs or reduce wage can cause workers resistance.
Most employers do different things for instance ranking of people, contest, performance appraisals, production, teams and departments, shifts, commission pay etc. all this are believed to enhance performance. Some researchers think it does the opposite instead of trying to use the external motivation (something outside the work itself such as promised rewards or incentives) to get higher levels of performance from people. Employers will be better served by studying the organization as a system. Employers demand results. Without good result organization will find it difficult to survive. Managing incentive policies is a requirement for higher productivity.
Consequent upon a systematic survey of the constraint inimical to the success of management incentives policies
1. To what extent has incentive policy affected workers productivity?
2. What is the purpose and importance of these incentives?
3. What is the effect of the absence of these incentives?
4. What is the way out?

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