Performance of employees in any organization is vital, not only for the growth of the organization, but also for the growth of individual employees. An organization must know who are its outstanding workers, those who need additional training and those not contributing to the efficiency and welfare of the company or organization. The study examined the impact of motivational incentives on staff performances in an organization. Specifically, the study identified the socio-economic characteristics of the staff of Guaranty Trust Bank, examined the effects of motivation incentives on staff performance in Guaranty Trust Bank. Finally, the study finds out the constraints militating against effectiveness of motivational incentives and staff performance.
Primary data were used for the purpose of this research and the data were sourced with the aid of structured questionnaire. Descriptive statistics was used to show the trends of motivational incentives variables. Ordinary Least Square regression analysis (OLS) was employed to Effect of employee motivation on workers’ performance of banks. Structural equation modelling technique was adopted in this study to evaluate whether associations exist in the constructs used for the study.
The result indicated that there was a positive significant effect of motivational incentives on worker’s performance as t = 25.22 and which is above the rule of thumb positivity of 2 and the coefficient of training and development is (0.895). The variations from the model are explained by the model as indicated from the coefficient of the determination (R2) value of 78.6%. Also the result indicated that there is a positive relationship between motivational incentives such as training and development and workers’ performance as indicated by R value of 0.87.5 which is positive as shown by beta value of 0.965.
It was concluded that both monetary and non-monetary incentives had effect on the level of performance and productivity of workers. This has increased their job satisfaction level which has led towards improvement in their responsibility towards their organizations, less turnover, loyalty, employees’ retention towards their jobs and their efficiency has progressed in their organizational setup.
- Background to the study
First and foremost, good remuneration has been found over the years to be one of the policies the organization can adopt to increase their workers’ performance and thereby increase the organizations productivity. Also, with the present global economic trend, most employers of labour have realized the fact that for their organizations to compete favourably, the performance of their employees goes a long way in determining the success of the organization. On the other hand, performance of employees in any organization is vital, not only for the growth of the organization, but also for the growth of individual employees (Meyer & Peng 2006). An organization must know who are its outstanding workers, those who need additional training and those not contributing to the efficiency and welfare of the company or organization. Also, performance on the job can be assessed at all levels of employment such as: Personnel decision relating to promotion, job rotation, job enrichments etc (Aidis, 2005; Meyer & Peng 2006). Also in some ways, such assessments are based on objective and systematic criteria, which include factors relevant to the person‘s ability to perform on the job.
Hence, the overall purpose of performance evaluation is to provide an accurate measure of how well a person is performing the task or job assigned to him or her. Based on this information, decisions will be made affecting the future of the individual employee. Therefore, a careful evaluation of an employee‘s performance can uncover weak-nesses or deficiencies in a specific job skill, knowledge, or areas where motivation is lacking. Once identified, the deficiencies may be remedied through additional training or the provision of the needed rewards.
In Nigeria, interest in effective use of rewards to influence workers performance to motivate them began in the 1970’s. So many people have carried out researches in this area, some of which are Oloko (2003), Kayode (2003), Nwachukwu (2004), Meyer & Nguyen (2005) and Egwurudi (2008). The performance of workers has become important due to the increase concern of human resources and personnel experts about the level of output obtained from workers due to poor remuneration. This attitude is also a social concern and is very important to identify problems that are obtained in industrial setting due to nonchalant attitudes of managers to manage their workers by rewarding them well to maximize their productivity.
In view of this, this study attempts to identify the impact that motivation has on employee performance in order to address problems arising from motivational approaches in organizational settings. Vroom (1964), supported the assumptions that workers tend to perform more effectively if their wages are related to performance which is not based on personal bias or prejudice, but on objective evaluation of an employee’s merit. Though several technique of measuring job performance has been developed, in general, the specific technique chosen varies with the type of work. For achieving prosperity, organization designs different strategies to compete with their rivals and for increasing the performance of the organizations. A very few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success or if not focused well, to decline. Unless and until, the employees of any organization are satisfied with it, are motivated for the tasks fulfillment and goals achievement and encouraged, none of the organization can progress or achieve success.
All these issues call for research efforts, so as to bring to focus how an appropriate reward package can jeer up or influence workers to develop positive attitude towards their job and thereby increase their productivity.
- Statement of the Problem
The performance of organizations and employee motivation has been the focus of intensive research effort in recent times. How well an organization motivates its workers in order to achieve their mission and vision is of paramount concern. Employers in both private and public organizations are becoming increasingly aware that motivations increase productivity. From the foregoing, and looking at today’s economic trend, it is evident that the pace of change in our business environment presents fresh challenges daily. Despite these, no research work has targeted to investigate the influence of extrinsic and intrinsic motivation on employees’ performance in Nigeria. Existing studies in Nigeria, aimed at the effect of motivators and hygiene on job performance by Jibowo (2007). Related studies on this study was on influence of monetary incentives and its removal on performance (Bergum and Lehr‘s, 2004). Of these studies in Nigeria, very few assessed the influence of Extrinsic and intrinsic motivation on employees’ performance on manufacturing sub-sector of the economy.
Moreover, scanty studies have been done on motivation in Africa (Centres and Bugental, 2007), Daniel and Caryl(1998 in Kenya, Akerele (2001) did not cover indeed, the areas that the objectives of this work covers. To this effect, this study will identify the socio-economic characteristics of staff as a major determinant of performance. The study will examine the effects of motivational incentives on staff performance. It will as well analyze the constraints militating against the effectiveness of motivational incentives empirically analyze the extent to which various motivation incentives in stimulating staff performance.
- Research Questions
Arising from the statement above, the following research questions are stated:
- What are the socio-economic characteristics of the staff of Guaranty Trust Bank?
- What is the effect of motivational incentives on staff performance in Guaranty Trust Bank?
- What are the constraints militating against the effectiveness of motivational incentives on staff performance?
- Objectives of the Study
The general objective of the study is to examine the impact of motivational incentives on staff performances in an organisation. The following specific objectives are formulated for further examination.
- To identify the socio-economic characteristics of the staff of Guaranty Trust Bank
- To examine the effects of motivation incentives on staff performance in Guaranty Trust Bank.
- To find out the constraints militating against effectiveness of motivational incentives and staff performance.
1.5 Research Hypotheses
The following hypotheses are formulated for the study:
H01: There is no significant relationship between socio-economic characteristics of staff and performance in Guaranty Trust Bank
H02: There is no significant relationship between motivation incentives and staff performance in Guaranty Trust Bank.
H03: There is no significant relationship between constraints militating against motivational incentives and staff performance in Guaranty Trust Bank.
1.6 Significance of the Study
The significance of the study cannot be over emphasized. The study will enable the banking sector to see the need for motivation of their employees for optimum productivity. The study will also reveal the need for improvement in the use of various financial and non-financial motivators.
The outcome of this study is also expected to be of great benefit to professional practitioners, the policy makers both in the private and public sectors in their attempt to provide efficiency driven factors among the employees. The banks operators will find a study of this kind useful as it attempts to provide a framework for understanding the factors that spurs employees’ effectiveness and efficiency in work place. The study will enable government to prioritize policies that are appropriate for labour management in the private sector.
It will as well contribute to the existing literatures on motivation techniques for employees’ performance. Finally, this research study is expected to stimulate research interests in other employees’ productivity and organisational performance.
- Scope of the Study
This study covers the impact of motivational techniques on worker performances in Guaranty trust bank in Ogbomoso, Oyo state. Time covered by the study is five years (2013-2017). The dependent variable is staff performance measured by level of productivity and profit of the bank, while the independent variable is motivational incentives which include money, job security, Status, relationship with peers and subordinates, leading to satisfaction, achievement and recognition.
1.8 Definition of Operational Terms
Motivation: Motivation by definition refers to what activates, directs human behaviour and how this behaviour is sustained to achieve a particular goal. Also it can be defined as the set of processes that arouse, direct and maintain human behaviour towards attaining some goals.
Employee satisfaction: This refers to the positive or negative aspects of employee’s altitude towards their jobs or some features of the job.
Organisational Goals: A concept, which refers to the focus of attention and decision-making among employees of a sub-unit.
Organising: This involves the complete understanding of the goals of organisation, the necessity of proper co-ordination, and the environmental factors that influence the goals and employees within the organisation.
Employee attitudes: Mental state of readiness for motive arousal.
Performance: The act of performing; of doing something successfully; using knowledge as distinguished from merely possessing it; A performance comprises an event in which generally one group of people (the performer or performers) behave in a particular way for another group of people.
Efficiency: The ratio of the output to the input of any system. Economic efficiency is a general term for the value assigned to a situation by some measure designed to capture the amount of waste or "friction" or other undesirable and undesirable economic features present.