ABSRACT
Nigeria Postal Services (NIPOST) like
other public enterprise is constraint with the problem of using nonperformance
based element like salaries to compensate it staff as against
performance-related pay structure which has hamper productivity because it does
not make workers put in extra effort in their work. This is so because their
compensation is not based on incentive schemes that elicit additional effort of
workers sequel to unfriendly government legislation on wages clause and
bureaucratic inefficiency. Hence the need to examine the effect of financial
and non-financial incentive on staff productivity in Nigeria Postal Services
Kaduna.
The researcher used Nigeria Postal
Services Kaduna main office located in Yakubu Gowon Way as a case study to
bring to light the effect of financial and non-financial incentives on staff
performance in organizations. The study will therefore be beneficial to the
organization understudy (NIPOST) in area of policy formulations as regard staff
incentive schemes and remuneration.
In the methodology, the data used in
compiling this research were gathered from both Primary and secondary
data sources. The data was analyzed using statistical package which was
presented in frequency tables and percentage.
The study employed the
survey method. The population consisted of all Staff of NIPOST Kaduna. Out of
158 persons, a sample size of 70 was drawn from the total population using the
stratified random sampling technique.
The
findings from this study revealed that Nigeria Postal Services is not based on incentives scheme
that enhance performance, but based on grade levels design by government, which
does not motivate the workers.
The non-financial incentives that
NIPOST use to boost workers’ productivity are in-service training, promotion,
off-duty and cafeteria services.
The challenges confronting NIPOST
incentive schemes arise from the inability of NIPOST to design salary based on
performance, meager salary as compared to other rate currier services, and that
NIPOST does not carry out staff evaluation and performance appraisal when
promoting their staff.
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
All organizations are concerned with
what should be done to achieve high level of productivity through staff
motivation using the right kind of incentive. Consequently the effect of
financial and non financial incentive becomes a burning issue in human resource
management.
As such a lot of theoretical concept,
principles and techniques of management have evolved in response to these
challenges/ but most scholars suggest that more conceptual and empirical work
is required to show the link between financial and non financial incentive and
staff productivity is still vague but some studies have documented in their
work that financial incentive is readily perceived as having a high
instrumental value that makes putting forth extra effort worthwhile and its has
a long term effect in terms of labour turnover rate because of comparative
value for alternative employment while non financial incentive has less initial
impact as the pragmatics of financial gain, they seem to have a steady,
sustainable impact.
Despite the growing body of literature
and empirical study on the effect of financial and non financial incentive on
workers productivity, the subject matter still remains complex. Hence, the need
to undertake a survey on the effect of financial and non financial incentives
on staff productivity in Nigeria Postal Services Kaduna.
1.2 Statement
of problem
Nigeria Postal Services (NIPOST) like
other public enterprise is constraint with the problem of using non performance
based element like salaries to compensate it staff as against
performance-related pay structure which has hamper productivity because it does
not make worker put in extra effort in their work. This is so because their
compensation is not based on incentive schemes that elicit additional effort of
workers sequel to unfriendly government legislation on wages clause and
bureaucratic inefficiency. Hence the need to examine the effect of financial
and non financial incentive on staff productivity in Nigeria Postal Services
Kaduna.
1.3 Objectives
of the Study
The central objectives of this study
are to examine the effect of financial and non financial incentive on staff
productivity in NIPOST Kaduna.
Specifically the study is set out to:
i.
Identify
whether NIPOST remuneration is based on incentive schemes that motivate staff
to perform.
ii.
Examine
all financial incentives NIPOST give to it staff and their effect on worker
productivity.
iii.
Identify
non financial incentives used in boosting staff productivity in NIPOST Kaduna.
iv.
Find
out the constraints militating against NIPOST incentive scheme and make recommendations
to the identified problems.
1.4 Significance
of the Study
This study brings to light the effect
of financial and non financial incentives on staff performance in organization.
The study will therefore be beneficial to the organization understudy (NIPOST)
in area of policy formulations as regard staff incentive schemes and
remuneration.
To education, the study will contribute
to already existing knowledge on the effect of financial and non financial
incentives on workers’ performance.
Finally, to those in academics and
human resource researches, the study will serve as a springboard for further
investigations.
1.5 Research
Questions
This study provide answers to the following research
questions:
i.
Is
NIPOST remuneration based on incentive scheme that motivate staff performance?
ii.
What
kind of financial incentive do NIPOST give to its workers and what are their
effect on workers productivity?
iii.
What
kind of non financial incentive do NIPOST use to boost workers productivity?
iv.
What
are the constraints militating against NIPOST incentive scheme and how can
these constraints be overcome?
1.6 Scope
of the study
The study covers an empirical
investigation of the effect of financial and non financial incentives on staff
productivity in NIPOST Kaduna. The time frame for this investigation covers
NIPOST incentive schemes from 2006-2011.
1.7 Limitation
of the Study
The study is limited to bias in
respondent opinion about the subject matter as well as the use of a single
study area and the uncertainly about the generalization of finding sequel to
the use of a single research design as well as instrument.
For the fact that only NIPOST was used
as the sole area of study it is no certain if the same result would be obtained
in other organization.
Respondent bias and non challant attitude also constitute a greater
limitation to this research.
For the fact that questionnaire
constitute the only instrument use to collect data and survey research design
the sole design used for the study. It
is not certain if the same result will be used if other type of design as well
as instrument were used. All these
factor constitute a greater limitation to the research.
1.8 Definition
of Term
Financial
Incentives:
Monetary reward or compensation use to motivate workers.
Non Financial Incentives: Other incentives apart from monetary
rewards.
Performance
Incentive: Rewards
that motivates worker to put in more efforts.
Productivity: The rate at which employee work and
their yield in their organization.