CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This chapter comprises of back ground of the study, statement of the problem, purpose of the study, significance of the study, research question, scope of the study, limitations of the study, and definition of terms.There is a general belief that the productivity of our manufacturing firms are generally low as compared to those of other countries. This no doubt is one of the causes of the low Gross National product experienced in Nigeria today. The above coupled with the ever-increasing population results of the low capital income stop pervading the nation. The foregoing when matched with the soaring inflationary rate leads to high cost of living and consequently low standard of living. Whether management practitioners blame the low productivity on workers or on management. It is an established fact that the efficiency of workers constitute the efficiency of the organization. Consequently the efficiency of the organization enhance the organizational performance. Based on this analysis, all forms of organizations, ranging from small scale to large scale industries need an effective plan to motive their workers to higher performance to enable them face the competition and challenges of this economic down-turn in the country. Considering the different view on what motivates an individual towards high performance, there has been an increased search by behavioural scientists into this problem. An examination of their work reveals that people in an industrial setting are not so different form people in other works of life. To the extent that this is true, the introduction of financial motivation will influence their behaviour. In the words of Gupta and Jenkins 1982. “Research in this area unequivocally demonstrates that money can be used to motivate the employers. The question then becomes what is a company motivational systems, some motivational system reward seniority while others still reward effective performance”. Based on need hierarchy, there are two basic types of needs. The higher and lower order needs. A critical look at these two types of needs that workers in less developed countries are still occupied with the lower order needs. A critical look at these two types of needs that workers in less developed countries are still occupied with the lower order needs. Employers administering motivational plans for employees in Nigeria work setting should address their minds to the satisfaction of these lower order needs which are likely to motivate them. According to Nwosu 1985 “it is important that the application of the management (Motivation) theories in Nigeria should acknowledge some basic problems of survival, viz, shelter, food and clothing. Organization psychologists seem to believe that the motivation of employees has became Ode of them must critical task facing organizations today more especially as it concerns the use of financial motivation as a management tool. This is because all the efforts to influence performance through this technique have not consistently yielded good result. This has kept the management, experts still searching for a more effective way of motivating worker thus the researchers interest in the topic under study.
1.2 Statement of the Problem
There has been definition of financial motivation as there are writers. According to Idow 1987. Financial motivations refer to all monetary (out comes) provided by organizationally functional ways. In this study financial motivation would be defined in terms of monetary compensation, either in form of wages individual bonuses allowances or other types of financial remunerations workers performances been defined in terms of profit level of output and goals attained by the worker within a particular time say, two years. Studies in this topic have gained general acceptance across cultures and nations. But there is still the need for an empirical study of this sort which will evaluate the effect of financial motivation and performance based on a systematic analysis of the situations in work places in the country. There has been a low rate of labour turnover during the last few years. This low rate of turn-over is still witnessed inspite the excess work-load that is being experienced in some of our manufacturing firms could this associated with the financial incentive they receive or because of lack of job opportunities else where?. Another consideration with regard to the uncertain effect of incentive plans on performance is the funding that although many firms believe they have tied pay to performance. Infact their pay polices tie more closely to such factors as age, seniority, job placement, sex and race. Thus, it is often difficult to assure that pay is actually tied to performance even when this management is intention. In view of the forgoing, what readily comes to mind is whether adequate pay tends to the satisfaction in all ramification on this premise, the researchers want to examine the impact of financial motivation on workers performance in a selected manufacturing forms in Enugu urbans.
1.3 Purpose of the Study
i. To know the impact of financial motivation on workers performance in selected manufacturing firm in Enugu urban.
ii. To determine if there is a relationship between financial motivation and workers performance bearing in mind the conditions, external and internal that affect our local firms.
iii. To find out to what extent money acts as a behaviour modificator.
iv. The study will determine the major factors to be considered when relating financial motivation to workers performance