The effect of financial and non financial incentives on staff productivity

Project Abstract

The effect of financial and non-financial incentives on staff productivity is a crucial aspect of organizational management. This research project aims to investigate the impact of various types of incentives on staff productivity in the workplace. The study will explore how financial incentives, such as bonuses, salary increments, and commissions, influence employee performance and motivation. Additionally, the research will examine the effectiveness of non-financial incentives, including recognition, flexible work hours, training opportunities, and career development programs, in enhancing staff productivity. A comprehensive review of existing literature on incentives, motivation theories, and organizational behavior will provide a theoretical framework for the study. This will help in understanding the underlying principles and mechanisms through which incentives affect employee productivity. The research will utilize both quantitative and qualitative methods to collect and analyze data. Surveys and interviews will be conducted to gather information on the types of incentives offered by organizations, employee perceptions of these incentives, and their impact on productivity. The research project will involve a sample of employees from various industries and organizational sizes to ensure a diverse perspective on the topic. Statistical analysis will be used to identify correlations between different types of incentives and staff productivity levels. The findings of this study are expected to provide valuable insights for managers and organizational leaders on the most effective ways to motivate employees and improve overall productivity. By understanding the preferences and responses of employees to different incentives, organizations can tailor their reward systems to better align with employee needs and goals. The implications of this research are significant for human resource management practices and organizational performance. By optimizing their incentive systems, businesses can create a more engaging and productive work environment, leading to higher employee satisfaction and retention rates. Ultimately, the findings of this study can contribute to the development of strategies that foster a culture of motivation and performance within organizations. This research project is essential for understanding the complex relationship between incentives and staff productivity and for guiding management decisions to enhance employee performance.

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><ul><li><strong>Background of the study</strong></li></ul><p>All organizations are concerned with what should be done to achieve high level of productivity through staff motivation using the right kind of incentive. Consequently the effect of financial and non financial incentive becomes a burning issue in human resource management.</p><p>&nbsp;</p><p>As 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.</p><p>&nbsp;</p><p>Despite the growing body of literature and empirical study on the effect of financial and non financial incentive on workers productivity, the subject matter still remains complex. Hence, the need to undertake a survey on the effect of financial and non financial incentives on staff productivity in Nigeria Postal Services Kaduna.</p><p>&nbsp;</p><p><strong>1.2 &nbsp; &nbsp; Statement of problem</strong></p><p>Nigeria Postal Services (NIPOST) like other public enterprise is 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 to examine the effect of financial and non financial incentive on staff productivity in Nigeria Postal Services Kaduna.</p><p><strong>&nbsp;</strong></p><p><strong>1.3 &nbsp; &nbsp; Objectives of the Study</strong></p><p>The central objectives of this study are to examine the effect of financial and non financial incentive on staff productivity in NIPOST Kaduna.</p><p>Specifically the study is set out to:</p><ol><li>Identify whether NIPOST remuneration is based on incentive schemes that motivate staff to perform.</li><li>Examine all financial incentives NIPOST give to it staff and their effect on worker productivity.</li></ol><ul><li>Identify non financial incentives used in boosting staff productivity in NIPOST Kaduna.</li></ul><ol><li>Find out the constraints militating against NIPOST incentive scheme and make recommendations to the identified problems.</li></ol><p><strong>&nbsp;</strong></p><p><strong>1.4 &nbsp; &nbsp; Significance of the Study</strong></p><p>This study brings to light the effect of financial and non financial incentives on staff performance in organization. The study will therefore be beneficial to the organization understudy (NIPOST) in area of policy formulations as regard staff incentive schemes and remuneration.</p><p>To education, the study will contribute to already existing knowledge on the effect of financial and non financial incentives on workers’ performance.</p><p>Finally, to those in academics and human resource researches, the study will serve as a springboard for further investigations.</p><p><strong>1.5 &nbsp; &nbsp; Research Questions</strong></p><p>This study provide answers to the following research questions:</p><ol><li>Is NIPOST remuneration based on incentive scheme that motivate staff performance?</li><li>What kind of financial incentive do NIPOST give to its workers and what are their effect on workers productivity?</li></ol><ul><li>What kind of non financial incentive do NIPOST use to boost workers productivity?</li></ul><ol><li>What are the constraints militating against NIPOST incentive scheme and how can these constraints be overcome?</li></ol><p><strong>&nbsp;</strong></p><p><strong>1.6 &nbsp; &nbsp; Scope of the study</strong></p><p>The study covers an empirical investigation of the effect of financial and non financial incentives on staff productivity in NIPOST Kaduna. The time frame for this investigation covers NIPOST incentive schemes from 2006-2011.</p><p>&nbsp;</p><p><strong>1.7 &nbsp; &nbsp; Limitation of the Study</strong></p><p>The study is limited to bias in respondent opinion about the subject matter as well as the use of a single study area and the uncertainly about the generalization of finding sequel to the use of a single research design as well as instrument.</p><p>For the fact that only NIPOST was used as the sole area of study it is no certain if the same result would be obtained in other organization.</p><p>&nbsp;</p><p>Respondent bias and non challant attitude also constitute a greater limitation to this research.</p><p>For the fact that questionnaire constitute the only instrument use to collect data and survey research design the sole design used for the study. It is not certain if the same result will be used if other type of design as well as instrument were used. All these factor constitute a greater limitation to the research.</p><p>&nbsp;</p><p><strong>1.8 &nbsp; &nbsp; Definition of Term</strong></p><p><strong>Financial Incentives:</strong>&nbsp;Monetary reward or compensation use to motivate workers.<strong>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</strong></p><p><strong>Non Financial Incentives:</strong>&nbsp;Other incentives apart from monetary rewards.</p><p><strong>Performance Incentive:</strong>&nbsp;Rewards that motivates worker to put in more efforts.</p><p><strong>Productivity:</strong>&nbsp;The rate at which employee work and their yield in their organization.</p> <br><p></p>