The Effect Of Motivation On Workers’ Productivity: (a Case Study Of The Nigerian National Petroleum Corporation

Society, as it is known today, simply could not exist with a steady of managers to guide its organizations.  It is important especially at the time of the advent of numerous organizations allover the world bearing aggressive tendencies at achieving set objective.  It is particularly important that we should have adequate knowledge of how to handle effectively individuals that constitute the organizational workforce.  It is imperative because we can realize that the worker is a fundamental and indispensable agent, a salient variable in the achievement of organizational objectives.

The state of mind of the workforce is reflected in the mental attitude towards work and their enthusiasm for the role they have been given to play.  Morale is often the crucial factor, which determines the achievement of the organization’s objectives.  If morale plays a very important role in enhancing job satisfaction and performance, therefore achieving organization’s objectives, what can be done to improve it and make the workforce more effective?

As a pre-requisite we must attempt to find a method of assessing performance either by predicting and controlling the level of morale in the organization.  Most policy makers, managers and administrators will agree that, one of the most difficult facts of their work is controlling and predicting the enthusiasm attitude and resulting effort of the individual (i.e. employees) constituting their workforce.

The advocates of profit sharing and joint consultation believe that incentives and benefits will stimulate and encourage the employee to take more interest in the organization to identify with it and therefore strive to increase productivity.  Also a different approach, although not mutually exclusive is the belief that workers will produce more if as a result their earnings will increase (the theory of payment by result) which was for many years and still often today, the most popular method of enlisting workers cooperation in high productivity.

Incentives are an integral part of management control, since as measure of recognition of performance, are significant motivating factors for management.  The design of good incentive plan has been of interest to managers and researchers for long time.  The relevance of the incentive problems in public sector dominated economies (e.g. Nigerian Economy is obvious and has received considerable attention.  However, even in private sector economy, incentive plans are becoming an integral part of management control.  Since it has been widely recognized that incentives as contributors to incline as well as a measure of recognition of performance, are significant motivating factors for corporate executives.  The design of an incentive plan could be viewed as a choice of “enforcement rule” to persuade managers to act in the interest of the corporation.

In principle, an incentive system should encourage effective planning and honest report of goal/targets, and it should simultaneously motivate managers to work harder to achieve better performance once these goals are specified.  These conflicting requirements need to be resolved in the design of an incentive compensation plan for managers in the allocation of resources in an organization and in the development of some structures for the divisions in the centrally planned from or enterprise.

In this write-up therefore, it is intended to discuss how multiple measures of performance can be incorporated in the design of incentive plans, since production quantity, profit and quantity attained and other factors may all be important in determining the aggregate performance measures, it is useful in that regard for practical implementation of the incentive plans.

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