Relationship between incentive and job performance

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Numerous researchers have studied the impact of incentives and related programs for at least 100 years without establishing a clear consensus among business circles as to whether or not incentive programs deliver measurable and meaningful performance results. “Incentives, Motivation and Workplace Performance: Research & Best Practices,” conducted by researchers for the International Society of Performance Improvement, and funded with a grant by the SITE Foundation, was designed to analyze the complete body of scientific research on incentive programs, determine what if any research-supported conclusions exist as to their effectiveness and the circumstances under which they can succeed, and to benchmark these findings with actual business conditions through surveys and interviews with business executives whose organizations use incentives.
The study was designed to help answer four questions: Do incentives increase work performance (and under what circumstances)? Which incentive programs are most effective? What types of organizations need incentives? And what model best expresses how to select and implement successful programs?

Title page     i
Approval page   -ii
Dedication     iii
Acknowledgement    iv
Abstract    v
Table of content
1.1  Background of the study  -1
1.2 Statement of the Problem  -3
1.3 Purpose of the Study   4
1.4 Scope of the Study   5
1.5 Significance of the study  -5
1.6 Research Hypothesis   6
1.7 Historical background of case study -7
1.8 Definition of Terms   8
    References    -11

2.1 What is incentive?   12
2.2 Nature of incentive scheme  13
2.3 Types of incentive plans   -14
2.4 Types of reward incentive  -20
2.5 Categories of incentive scheme  23
2.6 Other forms of incentive to motivate performance-29
2.7 Effective reward/incentive programme -33
2.8 Effect of incentive on job performance -35
2.9 Incentive benefits to organisations  37

3.1 Introduction   -39
3.2 Sources of data collection  -39
3.3 Population of the study  -41
3.4 Method of data collection  -41
3.5 Problems encountered in data collection -42
3.6 Sample size technique  -43
4.0 Introduction   -45
4.1 Data Presentation and Analysis  45
4.2 Testing of Hypothesis  -51
4.3 Interpretation of findings  -55

Discussions, Recommendation And Conclusions
5.1 Summary of Result/Findings  57
5.2 Conclusion   -60
5.3 Recommendations   62
    Bibliography    -65
    Appendix    68
In business organizations, employers of labour have seen staff incentive services as the ability to evoke commitment and co-operation of the subordinates to contribute more to the achievement of the organization goals and aspirations. This discovery has led many employers of labour to the introduction of well packaged incentive services, with the sincere belief that a good staff services, incentive scheme will induce staff to work hard and improve the general performance.    

The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraised of the staff incentive scheme are defined as “something of value”, apart from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work. 

These schemes have been in existence and are very important to both the organization and the employees. From the employer’s point of view, it is anticipated that a good staff employees incentive schemes will induce the employees to work hard and improve their general attitude towards the organization. But for the employee, these benefits represent some additional right such as extra income, additional security or more desirable working conditions that should not required any additional effort. 

Staff incentive services exist, in all cultures and in all organization and had existed at all times. They take different shapes and forms and attract different names. 

In recognition of their worker need fulfillment functions, they are variously called “incentive services” “incentive benefit” “employees income” or simply “supplementary compensation” “pay and non wage remuneration”. As non-taxable income and expense, they are beginning to be called “indirect compensation and on tax benefit”. 

It should be noted that for the company to achieve its objectives her incentive services must be adequate and competitively tailored toward the real needs of the staff. The staffs are directly influenced by nature, quality and quantity of incentive services offered because they compare themselves with their counterparts in other organization. 


Often workers or employees are

attracted to certain organizations not only because of the pay packets that are

stated in the advert but also because of the benefits attached to them: These

benefits usually include housing, transports and medical allowances to mention

but a few.

These attractions may constitute a

considerable objective in which such individuals make up their mind to serve in

such organization. The absence or reduction in these primary attractions of

such individuals into the organization will certainly lower the morale as well

as efficiency of such individual’s performance, which will in turn reflect on

the organization’s productivity.

Examples abound where organizations

in recent times, have been faced with instant agitation from the workers union

and staff association for the poor administration of existing incentives or

total withdrawal of these benefits. These are the dissatisfactions expressed by

the staff either on the provision or administration of staff incentive service.

Activities become same serious problems, which demand my proper investigation

and examination in order to find lasting solution to them.

1.3     RESEARCH


In order to achieve the objective of

this study, the following research questions are therefore formulated to guide

the realization of the research objective:



the administration of staff incentive have any effect on job performance?



there problems encountered in the administration of incentive services, if so,

how can they be managed?



organisations that engage in giving incentive to their workers derive any

benefit from it?



is the effectiveness or otherwise of staff incentive programmes in Nestle

Nigeria Plc?

1.4       OBJECTIVE


The objective or purposes of this

study are as follows:



find out the effect of staff incentive on job performance.



determine the problems if any that is encountered in the administration of incentive




find out if the practicing organisation derive any benefit from giving

incentives to workers.



determine the effectiveness or otherwise of staff incentive programmes in

Nestle Nigeria Plc.

1.5       STATEMENT


The research work brought to

limelight the impact of incentive scheme on employee performance in an

organization. This was based on two hypothesis – Null (Ho) and Alternative (H1)


Ho -    The

provision of adequate staff incentive does not lead to improved employee’s performance

in an organization.

Hi – The provision of adequate staff

incentive leads to improved employee’s performance in an organization.

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Abia-Bassey, W. (2018). Relationship between incentive and job performance. Afribary. Retrieved from

MLA 8th

Abia-Bassey, Walter "Relationship between incentive and job performance" Afribary. Afribary, 29 Jan. 2018, Accessed 28 Feb. 2024.


Abia-Bassey, Walter . "Relationship between incentive and job performance". Afribary, Afribary, 29 Jan. 2018. Web. 28 Feb. 2024. < >.


Abia-Bassey, Walter . "Relationship between incentive and job performance" Afribary (2018). Accessed February 28, 2024.