Human Resource Management

Impact of Motivational Incentives on Employee Performance

Impact of Motivational Incentives on Employee Performance




Since the beginning of time, leaders have risen to take charge of societies and make decisions. These decisions often meant the difference between being successful and being a failure, having shelter or being homeless, and sometimes the difference between life and death. As society progressed, there have been great technological advances that have brought a high level of convenience to our lives. Despite having advancements, the basic needs for humans remain the same. A question often asked by business managers is, “How do we motivate our employees to ensure optimal performance?” Effectively motivating employees to achieve the desired outcome is one of the most important functions of a business manager. There are pointers to show that business organizations are facing challenges retaining employees due to limited opportunities for advancement and the current competitive labour market in Nigeria. It does not appear things will get any better in the future. The loss of employees means loss of skills, knowledge, and experiences and can create a significant economic impact and cost to corporations as well as impacting the needs of customers/clients. Business managers who can motivate employees to assist the organization by improving employee retention and reinforcing positive behaviours and consequently, their enduring ability to effectively motivate workers to achieve the highest result determines the level of success of a business. Motivation is the intention of achieving an objective or aim, an ability to change behaviour, that inner directing drive, leading to goal-directed behaviour towards the attaining goal. Motivational rewards/incentives can be either non-monetary or monetary. For motivation to be present, the manager must both value promotion and see the relationship between his efforts and promotion. Thus, for an individual reward or outcome, the argument is that a combination of its value and the appropriate effort-reward probability is necessary. However, an individual’s motivation is influenced by more than one outcome. Thus, to determine an individual’s motivation, it is necessary to combine data concerned with several different outcomes. One of the major problems confronting management today is that of motivating to perform assigned task to meet or surpasses the predetermined standard. Motivation is that energizing force that induces or compels and maintains behaviour. It is not easy to motivate an individual, for the success of any motivational effort depends on the extent to which the motivator meets the needs of the individual employees for whom it is intended. Motivation is an internal psychological process whose presence or absence is intended from observed performance. In Nigeria today, lack of proper managerial knowledge, economic depression and high rate of unemployment have made most workers subjected, to deplorable working conditions, which of course are the catalyst of low performance. The management of most organizations tends to believe that workers are satisfied with their job but unfortunately, they are not. Job satisfaction presupposes going to work and getting believed of work done. In Nigeria, most of the time, the pay given to a worker is not commensurable to the type of work done. This is the reason why sometimes efficient and experience worker leaves an organization for another organization that pay more or stay in the organization and perform below expectation. Job dissatisfaction is quite prevalent in most organizations. The low performance which comes as a result of job dissatisfaction is always the basis for conflict between organizations and workers. Managers always blame the workers for not putting in their best, and on side of the workers, they blame management for not providing or creating an enabling environment as in motivation. Whoever may be guilty, the bottom line is satisfying the objective of the organization, which of course is to make enough profit to keep the organization moving.

To meet the above object there need for both the management and employee to reach a consensus, the management meeting the desires of the workers and in turn the employees put in their best in terms of performance. The workers need the security of all types; physical, psychological and economic are important for effective and efficient performance.


Over time, there has been a steady increase in most Nigerian industries, the crisis is a result of poor working conditions, stringent rules, poor and delayed payment of workers’ wages and salaries.

Again the crises also result from the failure of the top management to appreciate to the human element as the most crucial factor and the determinant of attainment of goals and objectives this result into frustration which manifests itself differently by individual or workers. It is a view of this that this research intends to look at the effect of motivation on employee performance in an organization taking Nigeria bottling company plc as a case study.


The major aim of the study is to examine the impact of motivational incentives on employee performance. Other specific objectives of the study include;

1. To examine the importance of employee performance to organizational performance.

2. To assess the current level of motivational incentives at the Nigerian bottling company.

3. To examine the relationship between motivational incentives and employee performance.

4. To examine the impact of motivational incentives on organizational performance.

5. To examine the relationship between employee performance and organizational performance.

6. To recommend other ways of enhancing employee performance.


1. What is the importance of employee performance to organizational performance?

2. What is the current level of motivational incentives at the Nigerian bottling company?

3. What is the relationship between motivational incentives and employee performance?

4. What is the impact of motivational incentives on organizational performance?

5. What is the relationship between employee performance and organizational performance?

6. Are there other ways of enhancing employee performance?


H01: There is no significant relationship between motivational incentives and employee performance.

H02: There is a significant relationship between employee performance and organizational performance.


The study could be useful to Nigerian bottling companies and indeed other organizations in Nigeria and beyond in improving their level of productivity and employee’s performance in future. It will also aid management in making decisions on how employees could be motivated, not only with money but other incentives. The study would also benefit students, researchers and scholars who are interested in developing further studies on the subject matter.


The study is restricted to the impact of motivational incentives on employee performance using the Nigeria bottling company in Lagos state as a case study.


Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted to the research work.


In research of this nature, it is quite necessary to define some of the key occurring terms. The essence is to make them operational in the context in which they have been used.

Personnel: This refers to the people who work for an organization.

Performance: This is a measure of how well the personnel do in the organization to achieve the goals and objectives.

Satisfaction: The state of being contended pleased or the state of acquiring what one wants or need the act of satisfying.

Remuneration: This simply means the amount of money that is paid for somebody for the work that has been done.

Organizations: This refers to a group of people that forms a business club etc. together to order to achieve a particular aim this also means the act of making arrangements or preparation for something.

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