The Effect of Incentives on Job Performance in Dannic Hotels Limited Enugu State


In this work, the literature review help in bringing out some point that are necessary for a prospect.

Literature review helped the researcher to carryout out a review of existing literature on the effect of incentive on job performance so as expose her to the work and experience of others in the field.  The review also help in providing a theoretical framework upon which the research work is based.

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It has been noted that employees attitudes to work for increase productivity has attracted much interest among researcher industrial sociology and industrial psychology.  It is pertinacity to highlight the fact that varying degree of importance have been attributed to different variable as being more central, inducing employee attitude to work toward increasing productivity.

According to Oloko (1977) that categorized the variable in to three types and they are as followings:

  1. Factors in the employment
  2. Factors in the individual
  3. Factors in the outside of the employment

Subsumed under the factors in the environment situation and the factors in this individual includes such variables as the eye of the worker level of education, sex, the individual needs.

Vuline and the factors outside of the employment is the distance from place to place of work and place of residence.

In the study of Morre (1977) the following eight reward classification, increase in pay, additional job security promotion, increase in fringe benefits recognition and praise from supervisor popular with ones workers additional discretion and autonomy and greater satisfaction from providing additional service to client.  House (1966) carry a study to ascertain the relationship this finding is place on job security.

Above all, the value of each reward was determined by asking each of the respondent to list the reward in the order in which they preferred them and then by assigning a point valve of 8 to the first item, and to first item, and to the second.  And it is known that the study was concluded that of the subjecting in the sample 52% ranked pay as being that most important.

Also Read: The Impact of Monetary Incentive on Organizational Performance

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Also, in the study of Mohoney (1964), he founded that the subject in the survey choose salary increase from which the respondents were asked to choose where salary increase, current and differed group incentives pension contribution in the company pay insurance and other benefits attached to it.  It was also ranks were put into consideration and that respondents gave the same answer.  Furthermore, Mohoney concluded that new forms of non-salary compensation are considered less important in motivation than is often suggested, and that re-enforcement in a powerful force that reduces a felt need and leads to both learning of few behaviour and reporting other behaviours under similar circumstances.



According to Ejiofor P.N.O. (1981), he said that the link is missing in among the employees, this is as a result of employees enjoying a lot of good things while other Nigerians are still not motivated to produce any.  To know more about the missing link. Valence, expectancy theory will be used.


Furthermore, the story stated that performance can be brought of a multiple that is, P = F (MXA).  Motivation in other hand varies with the valence (V) or attractiveness of outcome upon the performance of that instrumentality of performance for attaining of the outcome.  Major outcome are identify as follows:

  1. Major (salary) fringe benefits promotion
  2. Supportive behaviour (the leadership style of the supervisor, or boss, fairness, honesty.
  3. Group acceptance (the attitude to other people towards hand work).
  4. And the job device in doing the work itself (instruction motivation).

Additionally, building on this model, thus other four critical variables in worker motivation that should also be identify. (AVIT)

  1. Ability of the worker (A)
  2. Attractiveness of the rewards of working (V)
  3. Relationship between efforts and reward instrumentality (I)
  4. Existence of infrastructure support (Tools) (T)

According to the variable listed below, each of them has a direct relationship with motivation.  Also the greater this ability of the worker, the higher his motivation.  The more attractive the rewards of the working, the mouse intimate causal relationship between efforts.  Moreso, the more adequate the infrastructure supports the high this motivation of this worker.  This means that can able worker will not be motivated if he does not perceive that there is an intimate relationship between his efforts and the reward.

Moreso, since instrumentality relates the organizations reactions reaction to this worker actions the instrumentality can be said to positive or negative.  Positive in the worker action which may result in an increase in organizational reaction.  While it is negative where an increase in worker action result in a reduction in organizational reaction.

Note that, if there is a perfect correlation between effort and reward, there will be high performance.

Question now, how can the performance be measured.  It is measured in many instances, foe example in a piece rate system, the more you produce, the higher your income payment to seller of raffle ticket.  The move ticket you sell, the more you income become.  They went further to prove that the relationship between direct perfect correlation and reward is both practically and theoretically feasible.  To this, they performance of the lectures can be evaluate by distributing written questionnaires to students to fill from the student s observation, if the lecturers performance or perform below a certain level, you reduce his promotion.

Finally, it is note worthy to know that there are empirical studies that found attitude to work which depend largely on the nature and type of social relationship in the organisaiton and this will lead to do with the amount of friends existing among co-workers.  And the empirical studies in question will not be discussed have as it is outside out scope of study as security prestige recognition and achievement are very pre-dominant and fundamental in the work place, the correlation between job security and employees attitude to work equal occupied with the attentive of many researchers.


Under this theory, the following as follows:

  • Physiological need
  • Safety need
  • Social need
  • Esteem need
  • Self actualization need

According to Maslow need, individuals and full of or their lives are full of these basic need mentioned above.

  1. Physiological Needs: The physiological needs are needs such as food, clothing and shelter, all sum total as a physical requirement in an individual.  Once all these needs are reasonably satisfied the individual desire, he will then look forward for a higher one which is the safety need.
  2. Safety and security need: This include the desire for stability and the absence of pain, orderly, socially, insurance, retirement programs, fringe benefits and disbursement of safety equipment to employees working hazardous area.  And immediately this one is okey or he is satisfy with this need, the next follow.
  3. Social need: Social needs involves the needs that makes one to feel needed.  And these needs are satisfied through social interaction in which people give and receive friendship and affection.  In an organization, informational groups plays a vital role in satisfying those needs.
  4. Esteem needs: This is the individual needs to feel important and they also receive recognition from others which go a long way to support these feelings as reinforcement which leads to feelings of self-confidence and prestige.  And positives feedback of the nature is often given to by one’s peers, and once it is satisfied one will later go for another which is the lastly, that is self actualization needs.
  5. Self actualization needs: This is refers to the desire for self-fulfillment and achievement.  Is the highest level needed and has lowest priority.  It is not a motivate of behaviour until and unless the need of love, self esteem, social approval and self actualization are fairly satisfied, that means that man’s needs have been completely satisfied.

The theory x and y was propounded by Douglas McGregor.  According to hum, the theory of x proposes that:

  1. The average man has inherited dislike of work and will avoid it, if possible.
  2. Because of this, human characteristics of dislike of work must be controlled, directed and threatened with punishment to get them to put forth adequate effort.
  3. The average man prefer to be directed, wishes to avoid responsibility and has relatively little ambition.



  1. The expenditure of physical and mental effect in work is as natural as play or rest
  2. People will exercise self control in the service of objective to which they are committed.
  3. Commitment to objective in a function of the rewards associated with achievement.
  4. The average human being learn under people conditions not only to accept but also to seek responsibility.
  5. The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problem, which is widely distributed in the population.
  6. Under condition of modern industrial life, the intellectual potentialities of the average human being are only particularly utilized.



In criticizing Herzerberg’s two factors theory of motivation, Victor Vrooms (1964) offered an expectancy approach to the understanding of motivation.  He suggested that a person motivation towards an action at anytime would be determined by his or her anticipated value of the strengths of that person expectancy value of the outcome (both negative and positive) action multiplied by the strength of that person’s expectancy which outcome with yield the desired goal, that is, the motivation was a product of the anticipated worth to a person of an action and perceived probability that persons goal would be achieved.  It is stated this:

F       =       VXE that is

F       =       valence x expectancy, where as valence is the attractiveness of the reward of workings.

On the other hand, expectancy is the probability that a particular action will less to a desire outcome.

From this model, if valance is zero, an individual is difference about achieving a certain goal.  A negative valence occurs when the person would rather not performs, such as, a person would have no motivation to achieve a goal if the expectancy were zero or negative.



The implication for managers are as follows:

  1. Determine their reward valued by each subordinates, if reward are to serve as motivators. They must be valve or suitable for the subordinate.  Managers could know this by asking their subordinate what they desire their or by wasting their reactions in different situation.
  2. Determine the performance your desired, managers have to identify the behaviours or performance level expected of subordinates so that they will know they have to be rewarded.
  3. Make the performance level attainable level of performance expected of subordinate should not be too different or too easy to achieve.
  4. Link rewards to performance, appropriate reward should with in a short period of time be linked with successful performance.
  5. Analysis factors that counteract the affect varies of the reward system and other influences, the manager will have to bake adjustments.
  6. Make the reward to be adequate if minor reward mostly non out to be minor motivators.



  1. Organisation usually get what they reward not what they want. The organization reward system should be designed to match the desired behaviour from employees.
  2. The job itself it job are desired to be intrinsically rewarding like creativity, independence etc.
  3. The immediate leader. The leader is in the best position to define clear goods and provide clear and correct reward.  He should also be trained in the motivation process and given enough authority to administer rewards.



According to this study, reward is motivation which is discussed by incentives to external goods for satisfying this internal needs which in turn are likened to urges and determining their particular pattern of behaviours.  The derives towards a particular behaviour becomes this foundation giving rise to the provision of rewards system in which employers exploits to get this employees more to get a desire achievement goal such like increase output.  And the reward system is an important instrument in motivating employees due to the internal satisfaction which is derived from the fact that an organisation will recognize their contribution to the total will being of this organisation.

Mcclelland (1965) refuse to recognize the importance of reward as a motivating factor his submission is that, it is people with low achievement need who require more incentive to work harder.  Other protagonist debunked Mcclelland idea when he looked at pay, a direct form of compensation as a unique incentive because it is able satisfy both the lower physiological and security needs and higher needs such as esteem and recognition, and this influence employee’s altitude to work.

Vroom (1982) in his expectancy theory, he observed that stimulating motivation in an employee to determine the level of performance that he will put into the job depending on two variables.  The first is the probability of perceived like hood that the persons efforts will lead to perceive outcome.  While the second is the valve of utility of such outcomes to the employees attitude to work and the job performance forms part of the money challenges faced by a manager in his day to day discharge of his functions.


Finally, Skinner (1981), made a valued contribution to our understanding on reinforcement as a powerful managerial tool for controlling and shaping patterns of employee behaviour.  The question of reward attitude to work have continued to agitate this minds of researchers.  Effort has been made to approach it from both direct and indirect sources.

All illustrations tend to indicate that:

  1. What can motivate
  2. What can bring about change of attitude towards or to work?

Are numerous to take from a not less than multidimensional standpoint.


Efficiency expert as represented by the research of Elton Mayor (1965) and his associate on effects of illustration on productivity brought about an answer to this.


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