THE EFFECT OF MONETARY INCENTIVE ON WORKERS PERFORMANCE IN NIGERIA ORGANIZATION

 

CHAPTER ONE

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Wendel (1973) described human resources in his books as consisting of all individuals engaged in any of the organizations activities regardless of their levels. Human resources from the above simply means, men and women working for an organization, irrespective of the post they are holding. However, this went further to emphasis that there was no demarcation for men and women working for the organization that belong or do not belong to the human resources of the organization.

          Meanwhile, any activity in the organization from the beginning to the end stage depends on human resources. Therefore, any organization aiming at achieving some of their goals must ensure not only maintaining constant and adequate supply of human resources but also ensure that they were adequately motivated. This is because, the human resources that are motivated will be answering human resources of the organization without putting in their best.

          James (1946) stated that the effective use of people is still the key to productivity and your assignment is to motivate people to get the best of their skills and abilities. He affirmed that organization will achieve high productivity more than ever before by motivating their workers and sending them for training.

Morevover, Ubeku (1983) went further to say that although the task of motivating workers is vested on the management team as a while but said that managers have more roles to play. He said that managers, can provide the organization a continuous day to day coaching, appraisal and encouragement – that the employees will need more than ever before. He was of the opinion that manager have upper hand in motivating workers. He further stated that the supervisor who works with his subordinates on this intimate basis can do much to influence his organizations programme.

Training and development of human resources have been considered an expandable luxury in terms of financial constraints. The growth and development of any organization depends on its human resources, a specific cost of management to develop individual skills or a means of developing people for promotion to the next level of organization leadership. While these views carry some validity of human resources should be regarded in the large context of trends in society and the need of changing organization.

In the past, not much importance was attached to the role or human resources development on the growth and efficiency of organizations.  No pride of place was given man-power planning and development as a save way to enhance skills knowledge and capacities of personnel in organizations. The importance of investing in human resources has become much clear in recent years because of mounting evidence on the extent of which such investment as an engine change. Although, human resources management is that sub system of an organization which is directly concerned with planning, controlling the procurement, development, compensation, integration and maintenance of the human resources component of the organization. The effectiveness of this sub-system will be judged by the way policies and practices affect the performance and productivity of individual workers will be achieved towards the realization of the effectiveness of the organization.

Today, one of the major problems confronting management in an organization is the most effective way of putting the right position. Management should identify and provide for its human resources to accomplish its task. The concept of organizational effectiveness is that which organizations as a social system give certain resources and means fulfils its objectives without a capacitating its means and resources and without placing undue strain upon its members. The means and resources referred to have cannot be personal constituents of the organization on who the achievement of effectiveness in the organization is based through their increased performance and productivity. The existence of a conducive and carefully designed human resources management policies and practices appear inevitable for the attainment of these goals.

Human resources are the most vital of all the factors input of organization, for without it, all the other factors have to wait. Due to the immense contributions of man power programmes, the government of Nigeria has set up many institutions to help in management education in the country.

The National man-power board is responsible for the periodic appraisal of requirements for man power in all occupations and the development  of measures for in service training of employed man-power both in the public and private sectors. Among these institutions is the industrial training fund (ITF) on which these research work is carried.  Industrial training fund was established to promote and encourage the acquisition of skills in industry and commercial with a view of generating a pool of indigenous trained man power sufficient to meet the needs of the economy.

Others include the administrative staff college of Nigeria (ASCON) the Nigerian Institute of Management (NIM) and the Center for Management Development (CMD) it is simply defined as the potential available organization from the people who work in it.

To fully achieve this its corporate objectives, an organization must establish it human resources base adequately in both quantity and quality. The effects of human resources on the economic and industrial development has been underscored by Paul G. Hoffinan who said of all the resources required economic development of human resources appear the most strategic if the countries are to achieve self sustaining growth.

Furthermore, in reaction to the felt need for the development of human resources in this country.

The federal government established the training agencies;

(i)                            Industrial Training Fund (ITF) in 1971.

(ii)                         The Center for Management Developm,ent (CMD) in 1973

(iii)                       The Administrative StaffCollege of Nigeria (ASCON) in 1973.

(iv)                       Six Federal Training Centers (FTCS) scattered in different  locations across the country Lagos.

1.2     STATEMENT OF THE PROBLEM

One of the major problems confronting management in any organization is the most effective way of matching people with jobs. This calls for man power planning programme.

          Many organizations fail to progress due to their inability to train and develop their work force. Lack of adequate skills and knowledge, which are required to work and attain the major organizational objectives, constitute a cog in the wheel of achieving them. There has been criticisms from different works of life both within and outside the country about the inefficient performance of our parastatals. The personnel officer should understand and identify certain conditions that will serve as pointers for the need for training.

          As noted by Likent (1967) all activities of any enterprise are initiated and determined by the persons who make up the institution. Plants, offices, computer, automated equipment and all these that a modern firm uses are unproductive except for human efforts and direction. The researcher wants to identify the major problems and proffer a suggestion for the progress of the entire organization.

 

1.3            PURPOSE OF THE STUDY

The paramount aim of this research work as could be seen from the title and with the observed problems in mind is to ascertain the effects of human resources development on organizational growth. A case of industrial training fund (ITF) Enugu Area office in essence it seeks to;

(i)                Identify various human resources development plans and programmes.

(ii)              To identify industrialists and understand the potentials available to them from the people who work in the organization.

(iii)           Furthermore, this will help to serve the purpose of setting standards for formulating personnel policies and ways of implementing them regards being hard to the following.

The cultural framework of the enterprise and the individualistic differences of the employees for whom they are meant. With the foregoing, organization will be able to understand the best optimum population of personnel qualities and mode of increasing their staff and knowledge to active organizational growth and effectiveness.

1.4     SCOPE OF THE STUDY

This research work was intended to cover the effects of human resources development on organizational growth with the industrial training fund, Enugu Area office as a case study. Various attempts were made to covert the historical background of industrial training fund, the purpose of establishing it, the problems and prospects thereof. The study includes the functions, sources of fund objectives, grants, and reimbursement scheme of industrial training fund inter-alia.

1.5     RESEARCH QUESTIONS

In order to elicit information from respondents, the following respondents, the following research questions were generated.

(i)                            What  are the employers/employers relationship in attainment of organizational growth.

(ii)                         In which areas of industrial training fund (ITF) training activities do you think human resources development programme has improved.

(iii)                       What are the factors responsible for the poor performance of the business organization?

(iv)                       What are the importance of human resources in a business organization.

1.6     RESEARCH HYPOTHESIS

Webster New International dictionary defines (Hypothesis as a basic for reasoning a supposition formulated from proved data and presented as a temporary explanation of occurrence, as in science in order to establish a basis for further research. The purpose of hypothesis therefore is to enable one make inference about something.

          In a continued effort to reach an appreciable equilibrium in the effects of human resources development on organizational growth, the researcher employed a selected  statistical tools to enable us reach a fair conclusion.

          In the light of the above therefore, the following major hypothesis have been formulated. Hypothesis may be said to mean a tentative statement made by a research (subject to tests) with a view to forming basis to study a phenomenon,  researcher situational dentition.

          These hypothesis when tested can confirm or refute the extent at which these advanced statement can be upheld. It can equally place the researcher on the solid ground of drawing his conclusions and subsequent recommendation.

          In order to determine the effectiveness of the effects of human resources development. On organizational growth, it is necessary to list the hypothesis below.

          Null hypothesis Ho: human resources development does not affects organization growth.

          Alternative hypothesis Hi: Human resources development affects organizational growth.

          Null hypothesis Ho: Human resources development is not most important sub-system on organizational growth.

1.7     SIGNIFICANCE OF THE STUDY

Generally speaking, the effectiveness of any organization irrespective of its nature, is measured by one significant and objective criterion, namely the quality of its product in services is to a large extent a function of the caliber of human resources or man power component of the organizations production resources.

          This research work is significant to both the management (employers) and the labour (employees).  Secondly a close look at the work carried out will reveal a significant effect of human resources development on the organizational growth. Moreso, the research work will serve the role of shaping the organizational policies on human resources (personnel) for the overall attainment of the set objectives. It is only when the human resources is adequately qualified for the job to be performed that we can hope that the material resources in put can be effectively allocated and usefully utilized in the most optimum manner. If personnel administration is to be successful, management must give it sincere support in order to sustain  organizational growth.  The practical relevance of this study lives in the fact that no organization can achieve its set objectives without competent employees. Hence the issue of training and development becomes a central pre-occupation of any organization out to achieve and sustain efficient operation.

          In essence, this study is likely to be of immense value not only to industrial training fund (ITF) but also to all organizations irrespective of size, background and activity.  Also the result of this study will hopefully sharpen the ground of the problems besetting human resources development in organization and leading to a more effective grip of the importance of well-developed manpower programme.

1.8     LIMITATION OF THE STUDY

Analyzing the efficient human resources development an organizational growth is not a shallow topic to be  handled haphazardly, it is not only technical also sensitive and broad. For the purpose of this project, it is restricted to the business concern.  Also for want of time resources, industrial training fund (ITF) Enugu Area office is sampled out as a base for the research work, so many factors are deemed to militate against quicker and easier completion of the work. These include among others.

COST: Inadequate fund may stunt this work beyond our taste, lack of fund may also affect not only the period of the research but also its quality. To exalt everything about analyzing  the effects of human resources development on the organizational growth and come out of legacy for the posterity one need to travel far and near.

TIME: Time is as costly as money, it is even easier facing financial problems than time, time lost is hardly regained. Financial markets do exist but time existed for time, with the school academic (leader, the period for the research work is too short. Putting other courses into the budget.

RELUCTANT TO COOPERATE: The management of some business organization are too reluctant to disclose the required information and Moreso when it comes to disclosing exposing the organizational books record. The idea equally affects the quality of facts given in the research some do pith pact to suit the firm.

1.8     DEFINITION OF TERMS

TRAINING: The process of learning the skills that you need to do a job.

COG: A person who is a small part of a large organization.

RECRUITMENT: To find new people to join a company, an organization.

STRATEGY: A plan that is intended to achieve a particular purpose.

INEVITABLE: Something that you cannot avoid or prevent.

INTEGRATION: The act or process of contributing two or more things together so that they can work.   

REFERENCES

 

Ojemba G. A. (2000):    Small Scale Business Management Enugu Iyke, Ventures Production.

Ojemba G. A. (2002) Human Resources Management  Enugu, Iyke Ventures Production.

French, Wendell (1973): The Personnel Management Process Thomson Business Press.

James O. (1946):  Management Theory and Practice  JTC Publishers.

Nnenna B. Ani (1999):  Entrepreneurial Development an Overview Enugu, JTC Publishers.

Miller (1979): Behaviour Management: Theory and Practice Onitsha. Africa EFB Publisher.

Ejiofor Rita M. (1984) Managing the Nigeria Work Ibadan Longman Nigeria Ltd.

Ojemba G. A. (2003) Small Scale Business Management  Business Management  Enugu, Iyke Ventures Production.

Nwachukwu C. C. (1995): Management: Theory and Practice Onitsha. Africa FEB Publishers.