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The impact of management incentive policies on worker‟s productivity. The place of good management incentive policies on employee‟s productivity cannot be over emphasized. Most incentives plans are designed to help increase efficiency in the organization. However, obtaining employee‟s acceptance of incentive system may be difficult at the onset. This research has been necessitated by the need of raise awareness of practitioners and the employers of labour to the need of high productivity through good incentive policies. The researcher‟s search light was beamed on several theories of incentive usefulness and purpose of a good incentive policy in an organization. Problems associated with individual incentive plans were also enumerated with a view to providing solutions to those problems in form of recommendations, which is that the management should concentrate more on individual incentive scheme whereby reward will be based on individual effort. Organizations have divergent policies on incentive, but towards what extent has these packages improve productivity? This research work is significantly useful as a reference point for subsequent researches and more useful to every organization that that desires to achieve high productivity.




An incentive is a form of financial encouragement recognizing a particular contribution made by the work force, in other words, it is a sum of money paid in addition to the basic rate which the organization pays to ensure that its most important production aspects are being optimized . For instance, a capital intensive company might have an incentive linked to machine utilization.

Performance incentives are payment made to an employee or group of employee based on amount of output. The use of performance incentive policies is premised on the belief that output can be measured and performance by workers, it used dated back to the era of the scientific management movement championed by Fedrick Winslow Taylor who argued passionately for the use of incentive wage system as a way of getting more output from the workers.



Most incentive plans are designed to assist in increasing efficiency in the organization. However, obtaining employees acceptance of an incentive system may be difficult at the onset. There may be fear that the plan will lead to a speed up layoffs or reduce wage can cause workers resistance.

1. To what extent has incentive policy affected workers productivity?

2. What is the purpose and importance of these incentives?

3. What is the effect of the absence of these incentives?

4. What is the way out?



Good incentive policies, when put in place, motivate workers and make them happy and happy workers are often productive. Good management incentive could be financial or non financial in nature. Financial incentive happens to be the most important of the incentive schemes and it includes wages and salaries, profit sharing scheme, etc.

i. To examine the nature and feature of various incentive schemes

ii. To examine the usefulness and purpose of incentive in an organization

iii. To examine problems associated with individual incentive plans



i. To what extent does money motivate employee?

ii. How do workers respond to different incentive?

iii. How does management incentive policy impaction workers productivity?

iv. How can workers implement or improve incentive system in their work place?


The significance of this study cannot be over emphasized. It is particularly useful to the organization in question, Dangote cement factory obajana and to other organizations. It will serve as a guide to show the different incentive scheme and packages organizations can adopt as well the need to inculcate the principle of responsibility, motivation and fairness in every organization.



This study will cover the impact of management incentive policies on workers‟ productivity in Dangote Cement Factory Obajana located in Kogi State in North central region of Nigeria within the period of the year 2013.


Some limitations that were identified and encountered in the process of the study include:

i. Financial constraint:- in running around to gather material for this study considering the economic meltdown, money and other resources where involved delayed the completion of this work.

ii. Time; - The researcher was constrained by time in running round for the completion of this project.

iii. Attitude of respondents;- the research found it difficult initially to source required information from the members of staff of obajana cement factory, this also delayed the completion of this work.

iv. Electricity ;- the researcher had a hard time in typing, proof reading, printing, and editing of this work due to the incessant seizure and interruption of power supply by the power holding company of Nigeria .



Anderson, R. (1963). A Dictionary of Management Term. Plymorith: McDonald and Evans Ltd.

Asika, N. (2004). Research Methodology in Behavioural Sciences. Ibadan Nigeria: Longman Nigeria.

Simbo, A.B. (2009). Human Resource Management. Ibadan Nigeria: Oluseyi Plc.

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