THE IMPACT OF INCENTIVES AND WELFARE SCITEMES ON THE PERFORMANCE OF WORKERS IN AN ORGANISATION

THE IMPACT OF INCENTIVES AND WELFARE SCITEMES ON THE PERFORMANCE OF WORKERS IN AN ORGANISATION

CHAPTER ONE

INTRODUCTION

1.0     BACKGROUND OF THE STUDY: 

The administration of staff incentives schemes has now become a popular phenomenon of the total personal policy of any organization. The scheme involves necessarily by money which emanates from the relationship of the employer to the employees,  to supplement their most wage from the time which is at most  times geared purposely towards the enhancement of worker's  performance in the organization. 

The scheme where in existence is very important to both the organization and the employees. From the employer's point of view, it is anticipated that a good staff employee's incentives scheme will induce the employees to work hard and improve their general attitudes towards the organization. But for the employee, these benefits represent some additional right such gas extra income, additional security or more desirable working conditions that should not require any additional effort. 

In business organization, employers of labor have seen in staff welfare services, as the ability to evoke commitment and co-operations of the subordinates to contribute more to the achievement of the organization goals and aspiration. This discovery has led many employers of labor to the introduction of  well packaged welfare services, with the sincere belief that a good  staff services scheme will induce staff to work hard and improve the  good staff morale. 

The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraisals of the staff welfare scheme are defined as “something of value, apart from the agreed regular monetary  payment of salaries and wages given to staff”. This will be used as the working definition for this research work. Staff welfare services exist in all cultures and organization and had existed at all times.  They like different shapes and forms and attract different names in  recognition of their workers’ need fulfillment functions; they are  variously called “welfare services” welfare benefit employees  “income” or simply “supplementary compensation” pay and non-  wage remuneration. A non-taxation income and expense, they are beginning to be called “indirect compensation and on tax benefit”.  In the past, they used to be tiny bits and pieces of goodies that occasionally fell from the light tables of paternalistic employers i.e. when the top management plays a fatherly role of the staff.

1.2     STATEMENT OF THE PROBLEM:

Often workers or employees are attracted to certain organization not only because of the pay packages that are stated in the advert but also because of the benefits attached to them.  These benefits usually include housing, transports and medical allowance to mention but a few. These attractions may constitute a considerable objective in which such individuals made up their mind to serve in such organization. The absence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as efficiency of such individuals performance, which will in turn reflect on the organization's  productivity example a bound where organization in recent times  have been faced with instant agitation from the workers’ union and  staff association, poor administration of the existing ones or total  withdrawal of these benefits. This dissatisfaction expressed by the staff either on the provision or administration of staff welfare services. Activities become some serious problems which demand proper investigation and examination in order to find lasting solution to them. 

1.3     OBJECTIVE OF THE STUDY

The objective of this study is as follows: 

1.       To ascertain whether any of the services formerly by the staff in the company has been withdrawn and the reasons that necessitated their withdrawal. 

2.       To make recommendation based on this study on how to improve the provision and administration of staff welfare scheme in Port Harcourt Electricity Distribution Company  (PHEDC). 

3.       To determine the effective or otherwise of staff welfare programmed in PHEDC as perceived by the staff.

4.       To certain the problems of welfare of any staff that is encounter by the company in the administration of welfare services. 

5.       To certain whether there is other benefit which the staff demands for effective performance of their jobs that are not yet provided.

  1.4   SIGNIFICANCE OF THE STUDY:

The role of a comprehensive staff welfare scheme plays in efficiency with which an average worker discharges his responsibility and the achievement of the overall corporate of an organization cannot be underplayed. Organization thus, tries as much as possible to attain their corporate objectives by helping their staff to accomplish their own personal objectives. 

 

 

1.5     RESEARCH QUESTIONS

In the process of carrying out this study, the following  questions were raised.

          1.       Does appropriate attention given to the performance of  workers?

2.       To what extent is the organization contributes to the  performance of workers? 

3.       Does organization impact on the welfare schemes of the  workers?

4.      Is there any problem militating against incentives and welfare schemes on the performance of workers? 

1.6     RESEARCH HYPOTHESES

The following research hypotheses are formulated to guide the direction of the study. 

1.       There is no significant relationship difference between workers and motivations. 

2.       There is no significant difference between incentives and motivations. 

1.7     SCOPE OF THE STUDY:

In the nature of the research, students are often faced with many constraints. To evade, some carryout a case study where a small area will be selected for study such as a reference point for large area. So the scope of this study covers only a large spectrum of government owned enterprise in Nigeria PHEDC. It is hoped that the study of the administration of staff welfare scheme in PHEDC will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria. 

1.8     LIMITATION OF THE STUDY: 

The researcher was within and limited to Uyo Local Government Council. However, the study facilitated proper appraisal of workers. The benefits of workers in terms of performance were also ascertained.  In the course of the study, the following were some aberrations: financial constraints, time factors and scanty materials  for the successful completion of their research work.

1.9     DEFINITION OF TERMS: 

In a study of this type, there is need, no doubt that some terms be defined for clarity purpose. It should be borne in mind that the terms are not given their literary meaning, but operational meaning. Such terms include: 

i.        INCENTIVE: This is anything that attracts a person or worker and stimulates him to work. According to English Dictionary, incentive is something that encourages a person to perform an action and is also a driving force of any employee.

ii        MOTIVATION: According to Herbage (1957), Motivation is defined as a process whereby management creates conditions under which workers are willing and voluntary works toward organizational objectives because they enjoy the work. 

iii.      WELFARE: This means help given especially by the State or an organization to people who need it especially because they do not have enough money. 

iv.      EMPLOYEES: Is someone who works under an employment contract.

v.       SALARY: This is the fixed regular wages usually monthly or quarterly, especially for white-collar work. 

vi.      APPRAISAL: This is an evaluation of the performance of workers in their respective responsibilities. 

vii.     EMPLOYEE PERFORMANCE APPRAISAL: Is a method of evaluating the behavior of employees in the work spot. 

viii.    COMMUNICATION: According to Koontz et al (1993) defines communication to mean the transfer of information  from a sender to a receiver, with the information being  understood by the receiver.       

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