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International Journal of Applied Environmental Sciences ISSN 0973-6077 Volume 12, Number 12 (2017), pp. 2049-2067 © Research India Publications http://www.ripublication.com Review of Incentive scheme provisions for enhanced motivation and service delivery Owusu Ernest K. Ph.D Scholar, M.S. Ramaiah University of Applied Sciences Bangalore, India Faculty of Management and Commence, M.S. Ramaiah University of Applied Sciences Bangalore, India Abstract The objective of this review article is to evince the effectiveness of performance related incentive scheme provision on both employees and organisations. Incentive provisions have been used since ages by managers as motivational tools to enhance employee potentials for effective service delivery. Pay, which is incentive scheme provision is correlated with enhanced service delivery and improved the quality of the employee. However, measuring effectiveness and motivating employees to improve performance is very significant, but motivating personnel to harness their potentials for effective and efficient service delivery has been the major concern. There are concerns about the failing standards of employees in the performance of their statutory duties, due to unprofessional human resource practices, unsatisfactory and unpleasant compensation packages. After study and analysis of literatures and verifiable results from organisations, it is considered that incentive provision has strong impact on employee’s enhancement, and its performance. The assumption is that Efficiency and Effective delivery is more prevalent in institutions that have adopted incentive scheme provisions and work ethics than in institutions that do not practiced such provisions. The study describes the different motivational tools which impacts on organisational performance. Research shows that the motivation approach has helped to improve efficiency and employee’s motivation and their collective capability enhances employee’s performance which leads to maximum productivity. Whilst some believe that motivation has no role in the employee performance, others are of the view

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Page 1: Review of Incentive scheme provisions for enhanced ...compensation can impact positively on performance. The study also seeks to ... dimensions of non-financial incentives for motivation

International Journal of Applied Environmental Sciences

ISSN 0973-6077 Volume 12, Number 12 (2017), pp. 2049-2067

© Research India Publications http://www.ripublication.com

Review of Incentive scheme provisions for enhanced

motivation and service delivery

Owusu Ernest K.

Ph.D Scholar, M.S. Ramaiah University of Applied Sciences Bangalore, India Faculty of Management and Commence, M.S. Ramaiah University of Applied Sciences

Bangalore, India

Abstract

The objective of this review article is to evince the effectiveness of

performance related incentive scheme provision on both employees and

organisations. Incentive provisions have been used since ages by managers as

motivational tools to enhance employee potentials for effective service

delivery. Pay, which is incentive scheme provision is correlated with enhanced

service delivery and improved the quality of the employee. However,

measuring effectiveness and motivating employees to improve performance is

very significant, but motivating personnel to harness their potentials for

effective and efficient service delivery has been the major concern. There are

concerns about the failing standards of employees in the performance of their

statutory duties, due to unprofessional human resource practices,

unsatisfactory and unpleasant compensation packages.

After study and analysis of literatures and verifiable results from

organisations, it is considered that incentive provision has strong impact on

employee’s enhancement, and its performance. The assumption is that

Efficiency and Effective delivery is more prevalent in institutions that have

adopted incentive scheme provisions and work ethics than in institutions that

do not practiced such provisions. The study describes the different

motivational tools which impacts on organisational performance. Research

shows that the motivation approach has helped to improve efficiency and

employee’s motivation and their collective capability enhances employee’s

performance which leads to maximum productivity. Whilst some believe that

motivation has no role in the employee performance, others are of the view

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2050 Owusu Ernest K.

that employee performance does depend on motivation. Due to this

controversy, the study seeks to review and investigate the claims that incentive

compensation can impact positively on performance. The study also seeks to

explain what incentive scheme provision is, its future impact on employees

and organisations, challenges and how culture practices enhance efficiency

and service delivery.

Keywords: Incentive scheme provision, enhanced motivation, effective

performance, compensation packages, service delivery,

JEL Classification: J33, M12, M52

1 INTRODUCTION

Incentive pay scheme is one of the compensation packages of organisations. Pay is

associated with employee or company performance, Scot I. (2015). The development

in incentive package was encouraged by concerns over extant inefficiencies in the

workplace and the supposition that incentives increase delivery and improves

financial gains.

Incentives are awards given for the achievement of set goals and are positively related

to employee performance and organisational success WHO, (2004). According to

WHO, (2004) Incentives are reward and sanctions to improve employee’s

performance and motivation by supplying benefits which work at the levels of the

individual and the organisation, WHO, World Bank et al. (2004). It is evident from

existing knowledge on incentive compensation in general that using incentives in

workplace results in employee effectiveness and subsequent increase in production,

Kwao Isaac Tetteh, et al, (2015).

Similarly, Scott, (2015), posits that Incentives effects on receivers may vary between

urban and rural areas, professional categories, genders, security institutions and ages.

For instance, while the security services may require increase in salary to boost

personnel motivation, other professions may demand bonuses to enhance their

potentials for efficient service delivery. The incentives enhance employee’s potentials

for effective delivery and subsequent reward in performance, which is in line with the

expectancy theory’s assertion that employee’s ability to perform depend on his

expected outcome, Porter, L. W., & Lawler, E. E. (1968).

In his study on the Innovative incentive mechanism of comparative student

performance, Imberman, S. (2015), asserted that facts gathered on individual

incentives in most developed countries has been mixed, which is positive and

insignificant reaction of incentive impacts, and that credentials (degrees, certificates)

and experience are the yardstick in awarding teachers in most parts of the world.

Nonetheless, gains from experience are little and that degrees and certificates impact

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Review of Incentive scheme provisions for enhanced motivation and service .. 2051

little on student achievement. Since there is disengagement between awards and

performances of teachers, pay related incentives has been adopted, which associates

with the evaluation of student performance, Imberman S. (2015).

The motivating concept underlying workers incentives is to foster employees to put in

more effort to improve organisations performance, Scott A. Imberman, (2015).

Motivation is one of the factors influencing the work attitude of any establishment.

According to Kalimullah et al, (2010), to learn how to motivate employees to execute

assigned duties and responsibilities in the organisation is the objective of work

motivation. Kalimullah et al, (2010) describes motivation as a set of courses

concerned with a kind of strength that boosts performance and directs towards

accomplishing some definite targets. These explanations show that to achieve positive

goal, employees must be adequately active and their objective clearly stated.

Organisational growth, rest on identification factor analysis that ascertains the success

of the organization, Kennedy, et al. (2014).

The study on motivational factors affecting professional conduct in the workplace,

Nzulma,(2014) evinced that poor professional conduct has been put forward as a

precursor to low morale and is said to lead to poor work performance. The low state of

the spirits of a person or group as exhibited by confidence, cheerfulness, discipline, and

willingness to perform assigned tasks emanate from lack of motivation and failure by

Employers to address employee needs, drives and capabilities, Nzulma,(2014).

Financial incentives have focused on the payment mechanisms for workers, rather

than benefit packages and wage structures which have not received sufficient

attention, despite their potential importance in the context of employee motivation.

However, it has been suggested that it is problematic to focus solely on financial

incentives, Franco, Bennett et al. (2002), dimensions of non-financial incentives for

motivation are also needed.

The argument about merits of monetary incentive and non-monetary incentives is

often swayed in the direction of monetary incentives, Chaix-Couturier et al, (2000).

According to Okafor, et al, (2014), financial incentives are preferred by the junior

staff, because they perceived non-financial incentives as not a motivational technique.

Consequently, they may not be effective if they are the only method used in the public

sector, Chaix-Couturier, Durand-Zaleski et al. (2000). Although not denying the

strength of financial incentives per se, their limited ability to resolve complex

problems in areas have seen support from complementary non-financial incentives

Okafor, et al, (2014).

The assumption of the research, based on literature review and researcher’s

knowledge of employees, is that employees consider monetary and non- monetary

incentives to be more effective in enhancing employee’s effective delivery. For

instance, female Police workers who have different pre-determined values and

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2052 Owusu Ernest K.

beliefs consider different set of incentives to be important than do male Police

workers. Performance represents the realistic result that organisations are able to

measure objectively, and achieving targeted results within defined inputs is said to be

efficiency, Muhammad et al. (2011).

It has been documented by many, Igbal, et al. (2012), that the motivation approach has

helped to improve efficiency and employee motivation and their collective capabilities

enhances employee performance. These lead to maximum productivity, but how best

to get employees committed to their work in accomplishing organisational goal has

been the main concern of managers, Okafor, et al, (2014).

The paper reviewed and analysed the theoretical literature describing the key concepts

of motivation, incentive compensation packages, organization’s professional conducts

and ethics, employees’ performances, organisational effectiveness, and relationships

between the variables which are likely to influence job performance in an institution.

2. KEY STUDIES IN THE FIELD OF MOTIVATION, WORK INCENTIVE,

AND ENHANCED SERVICE DELIVERY

It is evident from existing knowledge on incentive compensation in general that

using incentives in workplace results in employee effectiveness and subsequent

increase in service delivery Kwao Isaac Tetteh, et al, (2015).

The literature on motivation suggests that there are two categories, extrinsic and

intrinsic.

Kwao, et al, (2015), posit that Intrinsic factors are considered to be those rewards (or

outcomes) that derive directly from or are inherently connected to the job/task, such as

recognition, degree of autonomy and responsibility, sense of accomplishment and

growth, demanding and challenging job. Consequently, the individual receives the

intrinsic rewards by the very act of performance. In contrast, extrinsic factors are

considered to be those rewards (outcomes) which are seen as being external to or

separate from the task, and form part of the job context or environment, such as pay,

working conditions, and job security. Lawler, (2003), considered employees as the

most essential asset of an organisation. However, organisations need to know what it

is that harness individuals potential for effective delivery.

According to Imberman S. (2015), who researched into the impact of financial

incentives on student performance, asserted that many has supported the idea of

incentive pay given to teachers as the cause of increase in students performances.

Hence the need to foster teachers to put in as much effort as they could, given such

incentives in improving student performance.

Kwao IsaacTetteh, et al, (2015) relates their findings to Imberman ( 2015), in their

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Review of Incentive scheme provisions for enhanced motivation and service .. 2053

research into employees’ incentives and performance relations at Ghana Oil Company

limited in the southern zone, Ghana, and claimed that employees job performance and

satisfaction depends on incentive packages from their employers. The authors claimed

that, proper and attractive motivational tool must be developed and maintained couple

with good working environment and rewards for hardworking employees will foster

workers to be satisfied in executing their assigned duties, and subsequently increase

performance.

The authors finding is unvarying with the submissions of Sonawane (2008) who is of

the opinion that monetary and non-monetary incentives are used by organisations to

enhance employees’ job satisfaction and commitment. These require granting of

rewards in terms of payment of cash and bonuses, while non-monetary or noncash

incentives involve material or non- material rewards.

Nevertheless, monetary and non- monetary incentives do not directly impact on

employees’ job performance. Incentives strongly impact on employee job

performance if employee’s satisfaction is boosted with the varied motivational tools.

If employees become aware of the positive impact of the different forms of incentives,

they are probable to be pleased with, which subsequently lead to increase in job

performances.

Hameed, et al. (2014), claimed that, reward influences positively on employee

performance. The obligation to assess the impact of compensation meant that

attracting and motivating employees for effective performance has been a challenged.

Compensation attracts, retain and help increase employee’s performance. Rizal and

Ali, (2010) asserted that highly motivated employee enhances an organisational

success.

In the study on the Effectiveness of Incentive Compensation, Radek Knesl, et

al.(2013), assessed the effectiveness of frequently use incentive rewards being

currently practices in the U.S. construction industry. The authors claimed that in some

instances, the incentive is unproductive because it is not well communicated, properly

understood, or not sufficiently great enough to inspire the employees. The justification

of incentive compensation is to strengthen the expected outcomes and conducts, and

to achieve the desired aims of an incentive compensation program commences with

well design reward system that assist and compensate initiatives attainment, Radek

Knesl, et al. (2013).

Gordon & Kaswin (2010) in their research work on the effect of wide-ranging

employee incentives, and identification of the attributes of effective plans, claimed

that incentive pay significantly motivate and enhance productivity. Nonetheless,

relating pay to performance motivates and helps to recruit and retain talented

employees, Cornell, (2010). The authors’ conclude that incentive plans can be used as

a medium for fostering both employee performance and productivity increase.

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2054 Owusu Ernest K.

However, incentives plans associated with good human resources practices and work

environment leads to successful employee productivity.

In the works of Nzulma (2014) on Motivational Factors Affecting High School

Teachers’ Professional Conduct and Work Performance; Professional conduct is vital

to efficient and effective work performance of employees. Organisations require some

level of professionalism as entailed in the organisation’s ethical codes. Nzulma

(2014), in her work on the extent to which motivational factors affected public high

school teachers’ professional conduct and work performance in Nairobi City, claims,

professional conduct and work performance of teachers is highly effected by

incentives which requires a review of the existing motivational tools to support

teachers professional conduct. Nzulma’s (2014) claim that employees discharge their

best under the state in which they work and that force as motivational plan for

employees’ productivity does not justify the motivational principles.

Similarly, Javed, and Javed ( 2013) researched into motivational factors affecting

employee motivation and their relationship with the resulted employee performance

outcome in Pakistan, and disclosed that access to quality experience, good

environmental working condition, positive, alignment of employee skills and job need

as well as incentive packages have a notable influence on job performance. Javed and

Javed (2013) claim also relates to the works of Sofat (2012) motivational tools on

employee performance, which she listed a number of organisational factors affecting

employee’s drives, comprising salary, job security, promotion, bonuses and

appreciation. Additionally, Manzoor (2012) in her work on employee’s motivational

influence on organisational effectiveness concluded that an organisation’s future

performance and outcome of allotted jobs depend on inspired employees. This goes to

confirm that a motivated worker increases service delivery.

According to Chandrasekar (2011), some principals and superintendents work under

the suspicion that the level of employee performance on the job is pro rata to the

amount of money the employee earns. Despite the fact that this may be true in some

instant cases, many employee surveys generally have shown to be untrue,

Chandrasekar, (2011). The excellent workplace environment of employees mostly

influences employees’ level of motivation and subsequently performance increases.

The Cambridge Advanced Learner’s Dictionary, defined Culture as the general

customs and beliefs, of a certain class of people at a specific time, and the extent to

which employees values and priorities help managed the individual’s affair.

According to Sheikhalizadeh, (2014) in his study on the organisational culture impact

in Islamic Azad Universities effectiveness, using Denison’s model claims that

organisational culture effects positively on the organisation’s effectiveness,

suggesting culture do increase organisational effectiveness greatly because of the

highly stable, and well integrated nature of the culture at workplace. The findings of

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Review of Incentive scheme provisions for enhanced motivation and service .. 2055

the research are compatible with the foregoing research conducted by Sheikhalizadeh,

et al, (2013), and Amah (2012). Organisational culture functions as a network of

social control which effect individuals’ attitudes and behaviour through the work

ethics operating in the organisation, Sheikha and Mahboub, (2014).

3. SPECIFIC ISSUES ON MOTIVATION, WORK INCENTIVE, AND

ENHANCED SERVICE DELIVERY

Introduction

The rationale for the study is based on recent concerns about the failing standards of

employees in the performance of their statutory duties. This poor performance has

been attributed to lack of motivation in the form of incentive compensation and poor

service conditions. Whilst some believe that motivation has no role in the employee

performance, others are of the view that employee performance does depend on

motivation. Due to this controversy, the study was conducted to investigate the claims

that incentive compensation can impact positively on organisational performance.

According to Igbal, et al. (2012) to get employees committed to their work and put in

their best towards accomplishment of organisational goal is one of the biggest

problems managers face today.

3.1 Compensation on Employee Performance

In the study on the “Impact of Compensation on Employee Performance” Empirical

Evidence from Banking Sector by Abdul Hameed, et al. (2014), the authors set out to

inform the banking sector of Pakistan of the employees’ perception towards benefits

policy, rewards, salary, and indirect compensation on employee performance in the

banking sectors of Punjab-Pakistan. The obligation to assess the impact of

compensation meant that attracting and motivating employees for effective

performance has been a challenged. Compensation attracts, retain and help increase

employee’s performance.

The research highlights factors affecting employee’s performance that could have

implications in the banking sector’s output. The authors were informed by research

and theoretical literature on compensation on employee performance, including their

case study on the banking sector of Punjab, Pakistan. They were guided by

psychological and social perspective.

It was concluded that highly motivated workers help improved the organisation’s

performance and leads to achieve its objectives Rizal and Ali, (2010).

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2056 Owusu Ernest K.

Figure1. The Relationship between the Independent and the Dependable

Variables Independent Variables

The authors claimed there is moderately positive relationship among salary and

rewards, and weak positive relationship b/n salary and indirect compensation. The

independent variables (salary, rewards, indirect compensation) enhances dependent

variable (employee performance), hence a positive impacts on employee performance.

Organisations with better compensation systems combined with good policies impact

positively on their employees thereby enhancing their organisational effectiveness,

Allen et al. (1990).

3.2 Motivation on Employee Productivity

Obiefuna Okafor, et al. (2014) studied on the “Effect of motivation on employee

productivity” of manufacturing companies in Nnewi, Nigeria. In the said study, they

looked into the significance of motivation in the management of the workforce.

The authors researched into the manufacturing firms in Nnewi , to find out how

employees are committed in accomplishing the organisational objectives, (Kalimullah

et al 2010). This was done to inform the managers of the manufacturing firms in

Nnewi, Nigeria. The employees of Nnewi firms prefer monetary rewards to non-

monetary rewards, mostly the junior workers, because they perceived non-monetary

rewards as non- motivational technique. The companies challenges of retention of

their employees leads to low performance and productivity and subsequently work

dissatisfaction. This research highlights factors affecting employee effectiveness that

could have implications, and were informed by research and theoretical literature on

motivation and employee effectiveness, including the study of workers of the

manufacturing firm effectiveness in Nnewi.

The authors claim that motivational mechanisms used by the firms in retaining

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Review of Incentive scheme provisions for enhanced motivation and service .. 2057

employees are offered to justify extensive employee effectiveness and productivity.

However, theories reflecting these principles are realistic for the Nnewi context. The

management and junior staff of the manufacturing firm were used for the study to

ascertain whether the workers were adequately motivated and the effects on their job

performance. Even though employees do significantly respond to the motivational

techniques adopted by the firm, most staffs are not motivated to work for the company

and feel the urge to leave.

3.3 Motivational Factors Affecting Professional Conduct

One key factor for effective work performance of employees which teachers are no

exception is professional conduct, Nzulma, (2014). Every profession requires a high

degree of professionalism as demanded in their ethical code of conduct, and

professional ethics given the important role workers play in high productivity.

In the study of “ Motivational Factors Affecting High School Teachers’ Professional

Conduct and Work Performance in Nairobi, Joyce Nzulma, (2014), the author sought

to inform the government of Nairobi about the educational system. Despite the

foregoing there have been reports indicating teacher’s professional conduct not

consistent with their professional call. The teacher inculcates attitude, behaviour and

values through teaching, and serves as a role model for his students. On the contrary,

work performance and professional conduct of teachers has been a subject of public

scrutiny for the past two decades. Proper understanding and appreciation of the

underlying motivational factors affecting the professional conduct of teachers is

critical to effective management of the challenge therein. The research throws more

light on both theoretical and practical issues on motivation and professional conduct

of teachers in Nairobi. Practically, the Research informed why motivation and

professional conduct are considered important in improving service delivery.

3.4 Work Place Environment and Organisational Performance

In the study of Work place environments and its impact on public sector performance

by Chandrasekar K. (2011), the author set out to inform employees of their

performance level in public sector organisational environment. The environment of

most firms and industries is not conducive for smooth economic activities. The

workplace is poorly designed, inefficient environmental systems, unavailable space

and furniture, overcrowded, unsuitable furniture, insufficient safety measures and

inadequate personal protective equipment. Workers in such environment easily attract

occupational disease which influences employee performance, and subsequent

decrease in productivity, Chandrasekar K. (2011). The research highlights factors

affecting employees’ performance and strategies to enhance the workplace

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2058 Owusu Ernest K.

environment for effective delivery. The author was informed by research and

theoretical literature on working environment, employee performance, including his

study of public sector organisations.

The author’s research supports Joroff et al. (2003) assertion that in the relation

between work, the workplace and the working tools, workplace becomes an integral

part of work itself.

3.5 Organisational Culture/Leadership on Organisational Performance

The will of organisations and managers is to get committed employees to improve

productivity, Fakhar Shahzad, et al. (2012). The introduction of employee with

beliefs, principles and objectives is essential to properly understand the organisational

norms impact on employee performance, Fakhar Shahzad, et al. (2012).

In the study on the impact of organisational culture on organisational performance by

Fakhar Shahzad, et al. (2012), the authors defined and measured organisational culture

and it influence on performance, by means of existing empirical studies analysis and

models linking organisational culture and performance. The authors were informed by

theoretical literature on organisational culture and organisational performance. The

authors opined that organisational culture effects strongly on employee and it

performance, and the awareness of organisational culture improves the capability to

investigate the behaviour of organisation, Brooks, (2006).

Figure 1. Culture Effect on Growth in Net Income

Source: Fakhar Shahzad, et al.( 2012)

The authors’ claim the percentage variance of net income of firms with performance

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Review of Incentive scheme provisions for enhanced motivation and service .. 2059

enhanced culture is greater than without performance enhancing culture within given

study period.

According to Fakhar Shahzad, et al. (2012), the onion model is one of the known

conceptualisation of culture. The organisational culture is considered like onion due to

it layers.

Figure 2. The Onion Model of Organisational Culture

Source: Fakhar Shahzad, et al. 2012

The use of Strategic performance measurement system (SPMS) was preferred to the

traditional way of measuring performance. The SPMS helps translate and measure

monetary and non- monetary achievements, Fakhar Shahzad, et al. (2012). The

authors identified the Balance Scorecard (BSC) as an important SPMS tool, with the

aim of interpreting the strategy into a set of performance measurement.

The authors claimed that organisational culture is important for businesses because of

it social control that effect on the employee decision and behavior. Secondly, the

organisational culture bond workers and encourage them to experience the corporate

gains. Lastly, the employee efficiency and effectiveness are enhanced through

organisational culture by understanding the activities of the organisation. When

employees have the same beliefs and principles as their organisations, they are

committed to achieve the oraganisational set goals, Fakhar Shahzad, et al. (2012).

In the study on Leadership styles and organisational effectiveness, Rafaela, M.M., et

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2060 Owusu Ernest K.

al. (2013) the authors set out to describe how leadership styles in the small

construction businesses located in Puebla are perceived differently in relation to

organisational effectiveness. The obligation to research into this meant that though

there are leaders in the organisations, not all of them contribute to organizational

effectiveness. The authors case studies involves research work, interviews, collection

of data, to determine the style of leadership described by the behavior theory (Laissez-

faire (liberal), democratic and autocratic and its relationship with organisational

effectiveness; The results of the investigation show a positive and significant

correlation between effectiveness, and democratic leadership, and Laissez-faire

(liberal) leadership. Contrary to what was expected, the bureaucratic or hierarchical

traits were not directly related to performance, Obiwuru Timothy C. et al,,( 2011).

Nonetheless, the generalizability of the findings to businesses within puebla remains

uncertain due to the small sample size of construction businesses. The authors’

research does not address the possibility that situational leadership may contribute to

organisational effectiveness. However, situational/ contingency theory provides the

most effective diagnosis of complex situations and increases the likelihood of

appropriate actions to be taken. The authors define key concepts and employ the

perspective extensively in reporting findings, leading to the generation of a regression

model to explain the variations. Nonetheless, this perspective does not embrace other

factors that might significantly affect organisational effectiveness, including

situational leadership /contingency theory, Bass B. M. and Avolio B. J., (1994). The

authors relate their findings to other researchers’ work. Therefore, they remain tested

against other research or theories that might support or challenge them. The authors

work focused on the individual perspective of efficiency than the group or

organisational effectiveness. In my experience democratic and liberal leader improves

organisational effectiveness than an autocratic leader, Peris M. K & Namusong G.S

(2012).

3.6 The Relationship between the Variables

The study defines various concepts and related literatures studied. This section

consolidates among others the relationship of the variables.

Measuring effectiveness and enhancing employee potentials for effective performance

is significant than ever before. Work motivation effects employee’s effort in

achieving the assigned task, Ahlstrom and Bruton, 2009).

The relationship between rewards (recognition) and employee motivation, using

(pearson correlation) revealed that recognition relates significantly (0.65) with work

motivation of employee, Kali, et al, (2010). Hence building motivational factors

requires hygiene factors as a foundation and the motivators to enhance employees’

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Review of Incentive scheme provisions for enhanced motivation and service .. 2061

disposition for pursuance of professionalism, Herzberg (1968).

Poor professional conduct an antecedent to low morale, is said to lead to poor work

performance Nzulma, (2014). While workers professional conduct and work

performance is greatly influenced by motivational factors, good performances and

professionalism are said to go hand in hand. Highly motivated employees perform

better, thus enhancing their professional growth through training and experience.

Similarly, a delighted, satisfied and motivated worker is actually a productive

employee which contributes in the organisation’s efficiency and effectiveness, and

subsequently leads to profit maximization, Matthew. J. et al. (2009).

Thus, from the literature and various studies there exists a positive relationship

between employee motivation and organisational effectiveness

4. FINDINGS

Empirical Evidence from the Banking Sector of Pakistan, Abdul Hameed, et al.

(2014) revealed a positive relationship among incentive variables which invariably

forecast performance. The authors finding is consistent with Allen et al, (1990))

assertion that, there is a relationship between compensation or benefit packages of

employee and turnover.

On the study of the “Effect of motivation on employee productivity” Obiefuna

Okafor, et al. (2014) indicates that for higher performances close supervision and

penalties are adopted by the company rather than incentive motivation. The research

also reveals that the take home pay of the junior staff in the company were far below

the provisions of Nigerian National Joint Industrial Council. This shows that

employee potentials are not properly enhanced, hence low productivity. The authors

claim that the use of force as motivation technique to effect employee productivity

does not justify the motivational principles. Effective motivational strategies

(financial and non-financial) combined with the environment do significantly lead to

higher employee performance and productivity. The authors relate their findings to

other researchers’ work. Therefore, they remain tested against other research or

theories that might challenge them.

For instance, the authors work is related to Javeds (2013), motivational factors impact

on employee motivation and performance in Pakistan. According to Javeds, employee

motivational level is low in Pakistan because of lack of extrinsic and intrinsic

rewards, poor staff management and other motivational tools that enhances employee

potentials. While Javeds, (2013), assumed that various extrinsic and intrinsic factors

determine employee motivation, Adewunmi, Omotuyole and John (2011) opined that

Job satisfaction and motivation

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2062 Owusu Ernest K.

are major determining factors that cause the employee towards the attainment of

organisational goal. The obligation to research into this meant that de- motivation leads to

bad service delivery and organisational failure. Similarly, the authors relate their work to

Sofat (2012) in her work on motivation and employee performance relations, which he

listed a number of factors such as salary, job security, promotion and appreciation that

affect employee motivation. The authors concluded that motivated employees are good

for a company’s future overall performance, Manzoor, (2012).

On the work of Motivational Factors Affecting High School Teachers’ Professional

Conduct and Work Performance in Nairobi, Nzulma, J. (2014), claimed that

motivational factors greatly impact on teacher’s professional conduct and work

performance hence the need to review the existing motivational tools to be aligned

with teachers need. The author related professional conduct to motivational and

mainly based the study on Herzberg’s two factor theory excluding the process theory

approach.

The author further claimed the motivational requirements of teachers are not

adequately met. According to Nzulma (2014), incentives such as training and

development, career development, study leaves, health and educational funds, were

found inadequate or non-existent. Hence, majority of school teachers do not

appreciate their job leading to high absenteeism.

On the research of work place environments and its impact on public sector

performance, Chandrasekar, (2011) revealed that employee performance on the job is

not pro rata to the amount of money earned. Management mainly focused on work

environment infrastructure and personal motivation, and claimed that conducive

environment of employee workplace mostly effects on employee level of motivation

and subsequent performance, Chandrasekar, (2011).

Findings also indicate that, individuals with different beliefs and values adjust to the

organisation culture for organisational success, Fakhar Shahzad, et al. (2012). Hence

organisational culture is correlated with performance based on the competitive role

advantage culture plays

5. CONCLUSIONS AND FUTURE DIRECTIONS

Motivating employees to improve performance is very significant, but motivating

personnel to harness their potentials for effective and efficient service delivery has

been the major concern. There are concerns about the failing standards of employees

in the performance of their statutory duties, due to unprofessional human resource

practices, unsatisfactory and unpleasant compensation packages.

Most authors conclude on public sector organisation, and should include private

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sector organisation to make a proper comparable analysis. The key concepts of

compensation in reporting findings are defined. However, the authors’ perspective on

findings does not embrace other variable compensation that might significantly affect

employee’s performance, including leadership and skills.

Motivational factors (financial incentives and non-financial incentives) do improve

employees’ effectiveness and productivity than close supervision, penalties and threat

of sack employed by the companies.

Employees enhanced their professional growth through training and experience and

do better in their jobs. However, clearly defined responsibilities, proper arrangement

of workplace and good pay enhance employees to achieve the targeted goal.

To salvage the situation, certain pragmatic measures such as examination of

incentives likely to impact heavily on workers motivation, concept and theories of

motivation, and organisation’s culture are investigated and the right theory adhered to.

Enhancing employees potential and subsequent good delivery required well trained

work force, good rapport existing among employees, creating free environment, other

motivational tools supplied and monitoring at the workplace. Similarly Chen, Wu and

Chen (2010) stated that motivational tools such as fostering good working

environment, teamwork, the sentiment of achievement through job demands, are

usually overlooked by the manager, Tella et al. (2007).

Culture also needs to be integrated in a way to ensure everyone feels they are part of

the process. While other theorists are saying there is no correlation between culture

and employee performance, others are of the view that there is a relationship between

culture and performance Fakhar Shahzad, et al. (2012), hence more research is needed

in this area.

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