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This  project examines the effect of incentive scheme on employee performance in an organization using Guinness Nigeria Plc as a case study. Incentive scheme is very important to both the organization and the employee. The main objective of this research is to examine if lack of incentive scheme leads to low morale and to determine if lack of incentive scheme lead to labour turnover rate. We suggested that if well implemented, the outcome of incentive scheme as an employee job performance would translate into higher record system for any organization in a competitive business environment.



  • Background to the Study

People that work in the organization  have some needs to satisfy. Thus, the desire to satisfy these needs make people to work. A need accompanied by a state, a drive or tension that gives  rise to behaviour directed towards the desire or tension.

Schindle (1974) believes that a man would like to put in his best to work and earn the joy of doing some thing well, if he feels pleased at producing some thing of value to the society. One of the ways a worker may feels pleased with his works is when it provides with the means  of satisfying  his needs.

Incentive scheme is any system wage payments which is intended to induce higher productivity in workers. Hence employees strive to put in their best in order to achieve their needs readily why embracing the aims and objectives of the organization.

These incentives are aimed at motivating the workers to perform  and employee development. It is in view of this that this research wants to take an analytical look at  the significance of incentive schemes on the motivation of workers to perform, using Guinness Nigeria PLC as a case study.

These incentive schemes could be in the form  of a promotion , a transfer, increases in wages and salaries, training or performance improvement, free medical care,  retirement entitlements, housing and transport allowance.


  • Statement Of The Problem

Organization use incentive schemes to motivate employees to earn more and work harder. It has been observed that some organizations do not apply incentive scheme there by the employee most often are not  motivated.

The  problems organization mostly encounter are lack  of      incentive scheme that lead to labour turnover, lack of incentive scheme that lead to absenteeism, absent of incentive scheme that will result to low morale and lastly, absence of incentive scheme that will lead to job satisfaction.           The above problems question is what this researcher hopes to proper solution to, using Guinness as a case study.

  • Research Questions

The under listed research question looked  at, will be given appropriate solutions.

  1. Can lack of incentive scheme lead to labour turnover rate?
  2. Does lack of incentive scheme lead to absenteeism?
  3. Does lack of incentive scheme lead to low morale?
  4. Does absence of incentive scheme lead to job satisfaction?
    • Objective Of The Study

This study  is aimed at achieving the following:

To examine if lack of incentive scheme leads to  low morale.

To determine if lack of incentive scheme lead to labour turnover

To determine if lack of incentive scheme leads to absenteeism.

To examine if absence of incentive scheme lead to job satisfaction.

  • Statement Of Research Hypotheses

           In order to achieve the objectives of this study, the hypotheses which are in null form are considered and are intended to guide the researcher, they are;

  1. There is no significance relationship between lack of incentive schemes and low morale.
  2. There is no significance relationship between lack of incentive schemes and labour turnover rate.
  3. There is no significance relationship between lack of incentive schemes and absenteeism.
    • Scope Of Study

Due to the fact that incentive scheme on employee job performance is a broad concept, the scope of this study is restricted to Guinness Nigeria Plc with emphasis on the organization. Significance of incentive scheme on the motivation of workers in the company. Also, it is intent of the researcher to investigate the various policies or the organization as regards bonuses and fringes benefits as well as other job satisfaction policies. However, this research covers the role of the improved physical working conditions and management by objectives (MBO) in motivating a typical worker.

  • Significance Of The Study

           The major significance of this research is to ascertain the extent to which incentive scheme can motivate properly in an organization and to enhance better performance and high level of productivity. Also, the study is meant to educate the management staff of Guinness Nigeria Plc on the importance of  adopting  better methods of motivating employees to improve productivity and encourage better job performance.

Above all, the study will further enrich the literatures on organization behaviour and management of human being in an organization.

  • Limitation Of The Study

          In the course of conducting this study, certain obstacles are likely to confront the researcher; these may threaten the success of this study. However, we shall try to be systematic as possible in order for the perceived obstacles not to affect the eventual findings of this research work.

The common anticipated problem/limitations of this research work include the following;

  1. Limited time and resources to complete the work due to congested academic calendar.
  2. Smallness or sample size.
  3. Imprecise measurement or variable.
  4. Disappointment in keeping appointments with some of the respondent.

Above all, despite these anticipated problems that may seem to limit the level of accuracy and reliability of this specific research endeavour, the researcher intends to employ scientific tools and method to overcome the methodological imperfection of this research work.

  • Operational Definition of Terms

               For easy understanding, some terms used in this research study are defined and explained as follows;

Incentive schemes: Incentive schemes refer to all forms that compensation and benefit plan that reward performance. In other words, there are various rewards granted to individuals or groups that recognizes differences in achieving result either in cash or in kind and also encourages them to improve productivity. Its determines the rate of monetary rewards that should accurate to employee.

Performance: This refers to the execution of carrying out notable workers. It is concern with individual potential and development on job.

Employee: Those employed to work in an organization.

Work: A task which employee is assigned to perform.

Employer: An employer refers to that person who employs or engages people to work  and in return pay salaries under a contract of employment.

Organization: An organization is refer to as a group of people who came together for the purpose or sole aim of achieving specific objectives and goals for which the organization was set up.

It is the coordination of common goals through division of labour and function and also the hierarchy of authority.

Motivation : This can be defined as the driving force which compels an individual to do certain things. In short term, it is the willingness to do some thing and it is conditioned by the actions ability to satisfy some needs for the individual concern.

Moral: this means the moral condition of workers regarding discipline and confidence.

Management: this is the process of planning, organizing, staffing, directing, controlling and coordinating of necessary human and material resources in order to attain organizational objectives.

Goal: this refers to the aim, objective or desire result which an individual strive to achieve in an organization.



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