THE IMPACT OF INCENTIVE (WELFARE SCHEME) ON THE PERFORMANCE OF WORKERS: A CASE STUDY OF NEPA PLC ENUGU, ENUGU STATE
Since the day of Abraham Maslow’s hierarchy of needs and Douglass Mcgregor’s hygiene factors, a lot of management intellectual have been carrying out research, and writing on good management of staff welfare schemes and ways of motivating workers and increasing productivity. but the good ideas suggested by these searchers (authors) have not been fully realized by the employee of out time in general and the good workers of NEPA Plc, Enugu Zone in particular.
Although the colonial history of Nigeria there has been employer/employee unrest at different time due to financial s malfeasance, administrative malversation, neglect of and imposition of inhuman workers welfare scheme and consequent negative results on labour productivity. The killing of many coal miners in Enugu in 1949 by the an autocratic white regime is a case to mention here, since then, many organized labour unions have sprung-up in many organizations and governments at different times at different parts of this country of fight for the right of workers, workers motivational incentives, and society. Responsibilities of employers of labour to the employees in particular, and society at large.
It is against this background that this research work was conducted to investigate the problems militating against the full realization of the benefits of a good workers welfare scheme by the employees of NEPA Plc, Enugu Zone in particular. The method of data collection employed in this study was primary and secondary sources. Simple percentage was used in the analysis of data to generated in the course of this research.
It is expected that this work would assist the corporate/business level strategic planners and mangers of NEPA Plc, Enugu zone in particular and those of other companies, industries, corporations and government in productivity as they are in constant search for practical approaches to the solution of the problems hindering improvement of NEPA performance (in supply of power) in the Enugu zone, and workers productivity in the economy.
It is also hope that all the other employer of labour whose business are so small to be classified under the entrepreneurial code such as all small/medium scale enterprises vis-visa, those other bigger business discussed above which classed under the adaptative and planning code shall as well benefit motivate workers, provide workers participation in decision making process, and lead to eventual increase in labour productivity.
TABLE OF CONTENTS
Title Page ii
Approval Page iii
Table of Contents ix
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 6
1.4 Scope of the Study 7
1.5 Limitation of the Study 7
1.6 Significance of the Study 8
1.7 Definition of Terms 9
2.1 Literature Review 11
2.2 Nature of Scope of Staff Welfare 13
2.3 Growth of Staff Welfare 13
2.4 Purpose of Staff Welfare Scheme 20
2.5 Categories of Staff Welfare Services/Types of Fringe Benefits 22
2.6 Disadvantages of Staff Welfare Provision 38
2.7 Summary of Literature Review 43
3.1 Research Design and Methodology 48
3.2 Area of the Study 48
3.3 Population of the Study 49
3.4 Sample and Sampling Procedure/Technique 49
3.5 Instrument for Data Collection 50
3.6 Validation of the Instrument 52
3.7 Reliability of the Instrument 52
4.0 Data Presentation and Analysis 56
4.1 Introduction 56
4.2 Testing of Hypothesis 73
4.3 Summary of Result 78
Discussions, Recommendation And Conclusions 80
5.1 Discussion of Result/Findings 80
5.2 Conclusion 82
5.3 Implication(s) of the Research Findings 84
5.4 Recommendations 85
5.5 Suggestions for Further Research 87
1.1 BACKGROUND OF THE STUDY
The administration of staff incentives scheme has now become a popular phenomenon of the total personnel policy of any organization. The scheme involves these extra benefits which may not necessarily be money, which emanate from the kind relationship of the employer to the employees, to supplement their usual wages, from time and which are at most times geared purposely towards the enhancement of workers performance in the organization.
This scheme, 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 incentive scheme will induce the employees to work hard and improve their general attitude toward the organization. But for the employee, these benefit represent some additional right such as extra income, additional security or more desirable working conditions that should not require any additional effort.
In business organizations, employers of labour have seen in staff welfare services the ability to invoke commitment and co-operation of the subordinates to contribute more to the achievement of the organizational goals and aspiration. This discovery has led many employers of labour to the introduction of well packaged welfare services, with the sincere belief that a good staff services will induce staff to work hard and improve the general staff morale.
The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraisal 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 culture and in all organization and had existed at all times. They take different shapes and forms and attracts different names. In recognition of their worker need fulfillment functions, they are variously called “welfare services” “welfare benefits employees” “income” or simply “supplementary, compensation or “pay and non wage remuneration. As non taxable income and expenses, they are beginning to be called “indirect compensation and non tax benefit”.
In the past, they used to be tiny bits and pieces of goodies that occasionally full from the high tables of paternalistic employer i.e when the top management play a fatherly role of the staff.
It should be noted that for the company to achieve its objective her welfare service should be adequate, competitive and tailored towards the real need of the staff. Staff are directly influenced by nature, quality and quality of welfare services offered because they compare themselves with their counterparts in other organizations.
In this research work, workers do prefer increase in welfare services to increases in salaries especially during the period of inflation and rising prices, workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.
Welfare scheme, is a kind of incentives given in cash or kind aimed at getting the best out of an employee or group of employees. Motivation aims at optimum performance of employees. Many factors have to do with characteristics of the individuals, different people are endorsed with different potentials, training, skills and receptions ability to change. Employees attitude and behaviour are also influenced by their remuneration and other incentive such as prestige, special allowance and retirement benefits. Conditions and environment of work also affect productivity.
Incentive (welfare scheme) can also be a compensation package, reward for performance, staff prefer cash items such as salary, allowances, Christians bonus, or in non cash items such which we call fringe benefits such as giving the product of the organization to the workers, protective clothing, cars with or without driver.
1.2 STATEMENT OF THE PROBLEMS
Often workers or employees are attracted to certain organization not only because of the pay packets that are stated in the advert but also because of the benefits attached to them. Those benefits usually include, housing, transport and medical allowances together with pension or retirement benefits to mention but a few.
These attractions may constitute a considerable objective for which such individuals made-up their mind to serve in each organization. The Spence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as the efficiency of such individuals performance, which will in turn reflect on the organizations productivity.
CORRECTION FROM STATEMENT OF PROBLEM
These dissatisfaction expressed by the staff either on the provision or administration to staff welfare service activities become some serious problem which demand for proper investigation and examination in order to find lasting solution to them, are as follows:
(i) The implementation of staff welfare scheme in the company is not too effective.
(ii) Workers welfare is not taken care of their salary structure or payment is nothing to write home about.
(iii) The management function is not effective as workers or employees show a negative attitude towards their job, that is inadequate responsibility, high rate of absenteeism and indiscipline.
(iv) Also, the flow of communication between the workers and management is inadequate.
(v) Measure to be used in making sue this problems are tackled to enhance productivity.
1.3 OBJECTIVE OF THE STUDY
The objective of this study are as follow:
(a) To determine if any incentive welfare scheme exist in NEPA.
(b) To ascertain whether any of the service rendered by the staff in the company has been withdrawn due to withdrawal of some incentives.
(c) To identify if welfare scheme package is given by NEPA.
(d) To ascertain whether there are other benefits which the staff demanded for effective performance of their job that are not yet provided.
(e) To ascertain the problems if any that is encounter by the company in the administration of welfare services.
(f) To determine the effectiveness of staff welfare programme in National Electric Power Authority as perceived by the staff.
(g) To make recommendation based on this study on how to improve the provision and administration of staff welfare scheme in NEPA Plc Enugu Zone if need be.
1.4 SCOPE OF THE STUDY
The scope of this study covers only a large spectrum of government owned enterprises in Nigeria called NEPA Plc Enugu Zone.
It is hoped that the study of the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria.