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Chapter one

1.0 Introduction

1.1 Background for the Study

Every organisation, large or small, is founded to fulfil specified goal(s), which can only be achieved by employing and retaining qualified people resources (Achie and Kurah, 2016). To reach organisational goals and objectives, various motivational aspects must be included to encourage employees to do their best at work.

Linda (2001) defines financial incentives as any inducement involving the payment of money, a reduction in the price paid for products or services, or the award of credit. According to human behaviour theory, everyone appears to inherit certain basic drives that are comparable to those observed in animals.

People are frequently ignorant of their urges, which exist in the conscious mind and push them to act in specific ways. If this need is suppressed, frustration ensues, and until action is taken, the individual suffers despair and his zeal is lessened.

All incentive tendencies cause people to behave in specific patterns, which implies that in any organisation, employees’ behaviour dictates the level of incentives provided to them by their employer or management.

This substantially jeopardises employee-employer relationships unless organisational incentives are effectively understood and used. The importance of financial incentives in increasing productivity influenced the selection of this study effort, and the data acquired was thoroughly analysed in order to produce conclusions and recommendations that will stand the test of time.

Financial incentives and awards have a favourable effect on employee commitment or loyalty. Employees stay with an organisation because of the costs of quitting and the benefits of being a member of the organisation.

As a result, it is critical for the organisation to maintain relationships with its employees in ways that promote their loyalty to the company. Financial incentives and rewards ensure the continuation of the employment relationship by establishing the foundation for high levels of commitment.

As a result, firms must develop strategies that include financial incentives and rewards such as promotion, bonuses, profit sharing or gain sharing, employee stock ownership, and so on (Development and Learning Organisation, VOL.25 NO.1, 2011).

staff want their achievements to be rewarded, and providing appropriate rewards and perk packages is an efficient method not only to achieve organisational goals but also to maintain relationships with outstanding staff.

1.3 Statement of Problem

Organisational management has always faced the challenge of motivating employees in order to boost production, which leads to profitability. Most organisations seek to minimise their wealth or profits.

This is only achievable when shareholders or investors’ funds are invested with a higher return on investment, which is only conceivable when the organisation is able to properly encourage its staff to earn a profit (Henry, 1998).

According to Whiting (1963), most organisations fail because they are unable to appropriately encourage their staff for improved production, despite the fact that human resources account for a larger percentage of an organization’s overall assets.

Financial incentive management is a vital issue that should not be overlooked, as failure to do so can result in interruption of work processes, loss of sales and service delivery, and, as a result, financial losses.

The task at hand is to study Nigerian organisations to see if they truly use financial incentives to motivate their employees to increase productivity, which translates to increased profitability.

1.3 Goals and Objectives of the Study

The overarching goal of this study is to critically evaluate the relevance of financial incentives on worker motivation, whereas the specific objectives are:

i) Determine the extent of financial incentives used at the University of Lagos.

ii) Look into the numerous financial motivators at the University of Lagos.

iii) To determine the manner in which financial incentives are successfully carried out at the University of Lagos.

iv) Determine the extent to which wage increases and financial bonuses have influenced worker motivation.

1.4 Relevant Research Questions.

The key question of this study is what factors influence financial incentives in terms of worker motivation. This study will also attempt to answer the following sub-questions:

1. What is the extent of financial incentives at the University of Lagos?

2. What are the financial motivators at University of Lagos?

3. How are financial incentives implemented successfully at the University of Lagos?

4. To what extent have wage increases and financial bonuses influenced employee motivation?

1.5 Relevant Research Hypotheses.

Hypothesis I

Ho: Financial incentives have no meaningful effect on worker motivation.

H1: Financial incentives have a considerable effect on worker motivation.

Hypothesis II.

Ho: Salary increases and cash bonuses have no effect on employee motivation.

H1:Salary increases and cash bonuses have little effect on employee motivation.

Hypothesis III.

Ho: Financial motive has no substantial impact on staff productivity.

H1: Financial motivation has a major impact on staff productivity.

1.6 Significance of the Study

The significance of this study will include, but is not limited to, the following:

i) It will boost understanding of ways for improving employee engagement and motivation.

ii) It will foster a peaceful atmosphere, a sense of equity, and employee-centered management.

iii) It will also benefit the pupils in general.

1.7 Scope of Study

The scope of this study includes financial incentives for increased productivity, with a special focus on University of Lagos staff. By selecting University of Lagos Staff, the researcher would be able to examine the influence of financial incentives, allowing him to determine their contributions and impact on staff motivation, as well as give a basis for drawing objective conclusions.

1.8 Definitions for Terms

Motivation: Motivation may also be defined as a person’s path to behaviour, or what drives a person to repeat an action and vice versa.

Financial incentives are monetary benefits provided to consumers, employees, and organisations to induce behaviour or actions that would not otherwise occur.

Employee: An employee offers labour and skills to the endeavour of an employer or a person conducting a business or enterprise.

Productivity is a measure of the average efficiency of production. It can be represented as the ratio of output to inputs used in the manufacturing process, or output per unit of input.

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