COMPARATIVE STUDY OF FINANCIAL AND NON FINANCIAL MOTIVATION OF EMPLOYEES IN AN ORGANIZATION
Abstract
The main aim of this research work is to investigate the relationship of the two types of rewards namely financial rewards and non-financial rewards towards employees motivation. The research work was restricted towards manufacturing company that is, West African Portland Cement. Based on the past literature, it is found that financial rewards or money has become the main motivator for employees performance in an organization. Traditionally, little thought has been given to the impact of non-financial rewards as it does not hold any immediate monetary value to the employees. However, in the context of heightened awareness among employers and employees, there has been greater emphasis on non-financial rewards, such as praise and recognition as it holds a deep and greater impact to the employees especially in the long run. This work defines the nature of financial and non financial rewards on employees motivation. By undertaking a comparison between the financial and non-financial rewards, the outcome of this paper provides vital information for organizations to structure a better rewards plan for their employees.
CHAPTER ONE
GENERAL INTRODUCTION
It is obvious that financial and non financial motivation of employees in an organization is very essential because it aids the performance evaluation of employees in various department section etc and also assist managers to know why worker behave in certain ways and really motivate them to perform well at work place. Motivating the personnel of an organization to make minimum effort towards the attainment of its objectives has along occupied the mind of managers from the managing directors to the invest ranking supervisors. Managers should be aware of the fact that people of the same organization work for different reasons for example, if a manger looks at a group of workers performing the same job for some time he cannot observe that some workers perform better than others. In explaining this two variables come to mind immediately, one is the difference in degree of skill and ability displayed by individual works, the other variables can be describe as motivation therefore, to guide workers activities in the described direction, it is important for managers to know why workers behave in certain ways and what really motivate them to perform well at work place.
In an industrial organization, the importance of incentives cannot be over emphasized. Incentives are intended to stimulate the desire to work, they are eternal factors or condition brought to bear on individual to induce him to the right attitude to work. The order of an extra reward can be used in other to achieve minimum efficiency among workers. An adequate financial fair wages and salaries is further emphasized by the fact that they are reckoned in monetary terms. Financial uncreative is inform of increase in pay or bonus and also special holiday pay. Management must also give consideration to the environment in which the worker performs their works. They should be an atmosphere of co-operation and trust between the various works at all level. The proper display of equipment and proper lightening will ensure a smooth performance of the job. In addition the leader can be a motivator for his group, this depends on the quality of the relationship between him and group members. All groups as they begin to work together are highly dependent on the authority of the leader. A leader needs to be sensitive to the rule of group standard and their far reaching influence on efficiency and productivity for leadership to affects motivation, it must conform and identify group standard. The value of an incentive is the extent to which the workers responds by contributing to the best of his ability to the company’s success.
Finally, recognition of the effort of the workers is also important. All employees like to feel that their efforts are appreciated, particularly if some improvement is achieved. When the work become monotonous in nature, it militate against a positive attitudes by workers to the job. Job satisfaction can be improved by simple expedient of making the work more interesting and requiring a greater application of thought skill. This can be done by increasing the job content. The other method will be extend to the range of tax that has to be performed by individual workers.
1.1 Background to the Study
West African Portland Cement Plc was created in 1833 presently Lafarge cement Nigeria plc (WAPCO) was established in 1960 with its first factory in Ewekoro, Ogun state. The second factory in Sagamu, also in Ogun state was established in 1978. The company commenced production with an initial capacity of 200,000 tons per annum, but later grew with demand to about 1.5million tones per annum. This has led to an increase in the company capacity by over 1 million tons per annum. The company has consistently won the Nigerian industrial standard (NIS) certificate for a quality product. The company was listed on the Nigeria stock exchange on February 16, 1979. In February 2008, the name West African Portland Cement plc was changed to Lafarge Cement WAPCO Nigeria plc, to reflect the rebirth of the company as part of an international organization, strategically positioned for greater heights.
WAPCO is the leader in building materials and hole top-ranking positions in all of its businesses such as cement, aggregates, concrete and gypsum, with more than 84,000 employees in 70 countries. WAPCO businesses are truely fundamental; it extracts mineral resources from the earth and transformed them into major construction materials. Their principal activities are the manufacturing and marketing of cement products, they designs and produces building materials to meet the requirements of people throughout the world for housing, transport, healthcare education, and essential infrastructural for economic growth and social progress.
1.2 Statement of the Problem
In an organization, management uses motivation in order to reach their stated objectives, because motivation is one of the important role which management play to accomplish the organizational goals. Any attempt made by the management which is not taking the financial and non financial motivation of employees performance into consideration, the following difficulties will be confronting the management in attaining their stated objectives.
• Lack of suitable environment to work for the employee.
• Losing a lot of skill and well trained employees
• Attitude of workers in searching for another better job.
• The level of productivity of goods and services.
• Reducing the total turnover of the business.
1.3 Purpose of the Study
The purpose of the study, include the following
• To determine the impact of financial incentives such as increase in wages and salaries, cash bonus and holiday pay on employee’s performance.
• To examine the effect of non financial motivation that is (job security, job satisfaction, status at work etc) on employee’s performances.
• To determine what makes an employee to do his/her best or perform well on a given job.
• To compare the various effect of financial incentives and non financial motivation
• To be able to determine whether promotion and job security will improve the level of productivity.
• To determine whether employees pay is commensurate to their labour or efforts.
1.4 Significance of the Study
The importance or significance of the study is to determine the influence of increasing wages and salaries in worker performance and also the non financial motivation that really makes workers to ensure that objective of the organization can be achieved. The significance of the study will also be a valuable contribution to the following groups.
The organization: it will give the managers reasonable insight into achieving the organizational goals and improving working condition to maximize productivity. It will enable the mangers to know how to reduce and adopt scientific method of management. It is particularly useful to the organization in question. West Africa Portland Cement Industries.
The government: With this study, the state government will appreciate the benefit of giving workers fringe benefits and incentives in the management or organization. The financial and non-financial motivation will also encourage workers in order to promote the level of productivity.The research work will also be useful for academic purpose in the sense that it is an improvement on past academic work of other researcher. It also serves as a reference point for subsequent researchers.
1.5 Research Question
The researcher will attempt to answer the following questions
• What are the impacts of financial incentives on employee’s performance?
• What are the effects of non financial motivation on employee’s performance?
• How can employee’s performance be increase at his work place?
• What are the various effects of financial incentive and non financial motivation?
• Does promotion and job security increase the level of productivity?
• Does employees pay commensurate to their labour of efforts?
1.6 Research Hypothesis
The research will be carried out to test the value of these statement or assertion.
• Ho: That increase in wages and salaries would not to a great extend increase workers performance.
Hi: That increase in wages and salaries would to a great extent increase workers performance.
• Ho: That increase in productivity is not due to an atmosphere of cooperation and trust between workers.
Hi: That increase in productivity is due to an atmosphere of co-operations and trust between workers.
• Ho: that recognition of effort does not improve employees performance.
Hi: That recognition of effort improves employees performance.
1.7 Scope/Delimitation of the Study
In relation to financial incentives and non financial motivation, the research project will look into the aspect of motivation. The research study will be carried out in a manufacturing company West, African Portland and Cement plc. In order to make generalization about the population from which the same is selected.
1.8 Definition of Terms
Motivation: This involves taken into consideration individuals psychological needs and motivation is the process of achieving or organizing goal. A motive is a need or a driving fierce within a person.
Objective: These are goals a firm seeks to attain and which constitute the principle reasons for existence.
Organization: This is the framework of the management process, it can also be defined as the system of behavior designed to enable human and their machines to accomplish goals.
Incentive: These are external factor brought to bear the individuals to induce him to the right attitude to work for example bonus, cash gift etc.
Management: This is an operational process initially best to disserted by analyzing the management function – planning, organization, staffing, directing, lading and controlling.
Managers: Is the part of management team, who perform a lot of functions as ascribed to management. He does this by working with and through other people