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THE EFFECT OF INCENTIVES ON EMPLOYEE PERFORMANCE IN DANNIC HOTELS LIMITED

Dept: HOSPITALITY MANAGEMENT File: Word(doc) Chapters: 1-5 Views: 1

Abstract

This study focuses on identifying the effects of incentives on employee performance in Dannic Hotels Limited Enugu. The overview effects of incentives on job performance, with the problem that destroy our Business Organizations were discussed. A significant member literature relating to the subject were reviewed and this is also work through adequate incentives on the organizational strategic goals to be achieved. The data collected through questionnaire method by using sample population of thirty six (36) workers were analyzed using tables and percentages. The summary of findings, conclusion and recommendations were analyzed through the use of questionnaire. The researcher concluded that using various theories of motivation, we expect the unbreakable link between incentives, motivation and job performance as well as productivity.

• INTRODUCTION

Incentives is an act or promise for greater action. It is also also called a stimulus to greater action. Incentives are something which are given in addition to wages. It means additional remuneration or benefit to an employee in recognition of achievement or better work. Incentives provide a spur or zeal in the employees for better performance. it is a natural thing that nobody acts without a purpose behind.

Incentives is needs in an organization to:

1. Increase productivity.
2. Drive or arouse stimulus work.
3. Enhance commitment in work performance.
4. To psychologically satisfy a person which leads to job satisfaction.
5. To shape the behaviour or outlook of subordinate towards work.
6. To indicate zeal and enthusiasm towards work.
7. To get the maximum of their capabilities so that they are exploited and utilized maximally.

Incentives can be grouped into:

(a)     Monetry incentives

(b)     Non-monentry incentives

(c)      Positive incentives

(d)     Negative incentives

MONENTRY INCENTIVES: This has been recognized as a chief source of satisfying needs of people. They satisfy the subordinate social needs and provide them with rewards in terms of rupees. Therefore money does not only satisfy the psychological needs but also the social and security needs.

NON- MONENTRY OR NON-FINANCIAL INCENTIVES: This can satisfy the ego and self actualization needs of employee. The non-financial incentives is used by a manager to satisfy the psychological needs of the subordinate.

POSITIVE INCENTIVES: They are those incentives which provide a positive assurance for fulfilling the needs and wants. It has an optimistic attitude behind and is given to satisfy the psychological requirements of employee. It includes promotion, praise, recognition, perks and allowance etc.

NEGATIVE INCENTIVES: They are those incentives whose purpose is to correct the mistakes and defaults of employee. The purpose is to rectify mistakes in order to get effective result. Negative incentives is generally resorted to when positive incentive does not work and psychological set back has to be given to employees. It is negative by nature and includes; demotion, transfer, fines, penalties.

In this chapter, the issue of incentive is addressed by looking at the background of the study, statement of the problem, purpose of the study, scope of the study, research question, significance of the study and limitations.

• BACKGROUND OF THE STUDY

According to Ikeagwu, (1995) incentives are schemes or programmes for remuneration of personnel for their contribution to the organization objectives.

Wendell (1974), observed that employee incentives are of two types and they are financial and non-financial incentives. Salary payment are financial incentives, these include forms such as insurance courage, profit sharing, pension scheme etc. and provision are made. Non-financial incentives include good working condition, recognition for exceptional plans, these are based on the piece rate methods of making wage payment and this involves a careful scientific study of each worker. This will be consequences that will befall any of the worker who fail to reach the standard, and a higher reward or rate to the worker who exceeded it.

Additionally, Julias (1995) observes that gentle task and bonus system will be awarded to any employee who exceeded the set standard by completing the work in time, he will receive a bonus, a percentage of the base rate. The bonus is seen as something that is usually figured to a sliding scale earning from 15 to 35 percent of the base rate. On the other hand, a worker who fails to complete the task in the allotted time will receive only his regular hourly rates and this present two special features the bonus which begin when the worker does their fourth as much as other job. By doing so, it will help or encourage the workers. The supervisor usually gives a bonus depending upon the amount or member of bonus paid to the workers.

Finally, Imaga (1981) commented that non-monetary incentives has grown in the last decades and collective bargaining contracts with labour union has now resulted in incentives such as hospitalization, legal aid, life insurance, income and promotion.

To this regard, the research interest is in investigating the effect of incentives on job performance. A case study of Dannic Hotels Limited Enugu.

1.2     STATEMENT OF THE PROBLEM

The following are the problem of this research; often workers or employees are attracted to the organization not only because of the pay but because of other benefits such  as promotion, transport allowance, medical allowance etc.

These attraction may constitute a considerable objective for which such individuals made-up their mind to serve in this organization. The reduction in this primary attractions of such individual will certainly lower the morals as well as the efficiency of such individual performance, which will inturn reflect the organizations productivity

CORRECTION FROM STATEMENT OF PROBLEM

There dissatisfaction expressed by the staff either on the provision or administration of incentive packages become some serious problem which demand for proper investigation and examination. The results of  investigation  shows that:

1)The implementation of staff welfare scheme in the hotel is not too effective.

2) Workers welfare is not taken care of, their salary structure or payment is nothing to write home about.

3) The management fuction is not effective as workers or employees show a negative attitude towards their job, that is inadequate responsibility, high rate of absenteeism, low production, non-challant attitude, indiscipline and this affects the organization drastically.

4) Also, the flow of communication between the worker and management is inadequate.

Measures are to be used in making sure these problem are tackled to enhance productivity.

1.3 OBJECTIVE OF THE STUDY

The specific objectives of the are as follows.

1. To determine if any incentive welfare scheme exist in Dannic hotels Ltd Enugu.
2. To identify the incentive programme for the staff of Dannic Hotels limited Enugu and its influence on job performance.
3. To examine the prospects of the use of incentives to improve job performance.

4.To identify the problem of incentive administration in Dannic Hotels Limited Enugu.

1. To determine the effect of incentives on workers productivity.
2. To make recommendation based on this study on how to improve the provision and administration of incentive packages in Dannic Hotels limited Enugu.

1.4 RESEARCH QUESTION

1. Do Dannic Hotel have an incentive packekages for workers?
2. Is there any problem with the administration of the the incentive programme?
3. Does productivity increase when workers are given incentives.
4. What are the prospects of giving incentives to workers.

1.5 SIGNIFICANCE OF THE STUDY

This study will highlight the problem associated with administration of incentives on job performance. It will also give information on the possible areas for improvement and corporation. The organization more especially those in the hospitality industry, for them to help and assess, appraise the performance or the issue of incentives on job performance. Additionally, the policy makers will be of help to formulate new policies that will guide employer relationship by going through the suggestions and recommendation given.

Finally, it will equally serve as guide to researcher who may wish to develop the course in the future.

1.6 SCOPE OF THE STUDY

In the course of study, it examines primarily the effect of incentives on job performance in Dannic Hotel limited Enugu. At the same time, it does not examine the effect of incentives in other Hotels and organizations in the country.

1.7 LIMITATION OF THE STUDY

A study of this nature is bound to experience certain problems such as the  constraints that is imposed on the researcher and this includes:

1 TIME: A study of this nature needs a relatively time during which information for accurate or some near accurate should be drawn. Because of short time given, there was a constraint to the research.

1. COST: The researcher extended the survey to other areas. But limitations have included cost of transportation that will help get some material and also cost of typesetting.
2. LACK OF CORPORATION: Many of the respondents are usually evasive on corporation, hence the research discovers a lack of compilations.

1.8 DEFINITION OF TERMS

1. INCENTIVES: The scheme or programme for remuneration of personnel for their contribution to the achievement of the organizational objectives.
2. OBJECTIVES: This is the main aim of what the organization hope to achieve.
3. FINANCIAL INCENTIVES; They are magnetization of incentive inform of money, insurance coverage, profit sharing and pensions.
4. NON-FINANCIAL INCENTIVES; These includes working condition, hospitalization, legal and staff training, income , tax, counseling and sick leave.
5. MOTIVATION: This refers to the drive or force to satisfy a want (to achieve an outcome) in any organization.
6. JOB PERFORMANCE: This means that an employee achieve whatever he want under tested condition.
7. EMPLOYMENT CONTRACT: A contract entered into by an employee when he accepts an appointment by an employer.
8. EXCEPTIONAL PERFORMANCE: This occurs when an employee puts a performance that is above the set standards.
9. WORK: This is a task which an employee is assigned to perform.
10. EMPLOYEE MORALE; This is the findings of individuals of groups towards goals, their association and the organization.