EFFECT OF INCENTIVE SCHEME ON EMPLOYEES' PRODUCTIVITY IN CADBURY NIGERIA LIMITED KADUNA

TOPIC: EFFECT OF INCENTIVE SCHEME ON EMPLOYEES' PRODUCTIVITY IN CADBURY NIGERIA LIMITED KADUNA

THIS TOPIC IS ALSO SUITABLE FOR: 
1. Business Administration Department

2. Human Resource Management Department

3. Industrial Relations and Personnel Management Department

This research material contains:

1-Chapter One to Five

2-Recent References/citations

3-Tables/Charts/Graphs in Chapter Four

4-Accurate Data Analysis

5-Table of Contents

6-Questionnare

ABSTRACT
This study was carried out to examine the effect of incentive schemes on employees' productivity in Cadbury Nigeria Limited, Kaduna. The study was specifically carried out to examine the effect of financial incentives on employees' productivity in Cadbury Nigeria Limited, assess the influence of recognition and reward schemes on employees' productivity in Cadbury Nigeria Limited, determine the effect of promotion opportunities on employees' productivity in Cadbury Nigeria Limited and examine the influence of employee welfare benefits on employees' productivity in Cadbury Nigeria Limited. The study employed the descriptive cross-sectional research design. The population of the study comprised 420 permanent employees of Cadbury Nigeria Limited, Kaduna, from which a sample size of 205 respondents was determined using the Taro Yamane formula and selected through a multi-stage sampling technique involving stratified and convenience sampling methods. Hence, the questionnaire was used for data collection, while the data collected were analyzed using descriptive and inferential statistics comprising frequency tables, mean scores, and standard deviation. The hypotheses were tested using multiple regression analysis with the aid of SPSS version 23. Out of the administered questionnaires, 190 were correctly completed and used for the analysis. From the responses obtained and analyzed, the findings revealed that financial incentives had a significant positive effect on employees' productivity at β = 0.318, R² = 0.674, P = .000. The study also revealed that recognition and reward schemes had a significant positive influence on employees' productivity at β = 0.249, R² = 0.674, P = .000. Likewise, the findings further showed that promotion opportunities had a significant positive effect on employees' productivity at β = 0.205, R² = 0.674, P = .001, while employee welfare benefits significantly influenced employees' productivity at β = 0.241, R² = 0.674, P = .000. The study therefore recommends that the management of Cadbury Nigeria Limited should strengthen financial incentives, implement transparent recognition and reward programs, provide fair promotion opportunities, and continuously improve employee welfare benefits in order to sustain higher employee productivity.

Keywords: Incentive Scheme, Financial Incentives, Recognition and Reward Schemes, Promotion Opportunities, Employee Welfare Benefits, Employees' Productivity.

CHAPTER ONE
INTRODUCTION (Preview)
1.1 Background to the Study
The organizations exist in a global environment that is increasingly competitive and dynamic, and the performance of HRM has proved to be the key to sustainable organizational performance. In all developed and developing economies, enterprises and institutions constantly seek ways to improve their performance in order to gain efficiency, better service and competitive advantage by strategically using their human resources. Employees are the most important resource of the organization because they convert the objectives of an organization into measurable results with the help of their knowledge, skills and commitment. Onwuka and Ijeoma (2021) state that achieving the organizational goals was largely dependent on the ability of the employees to perform assigned duties efficiently. Likewise, Ibrahim and Salihu (2022) stated that human resources are now viewed by organizations as assets whose performance plays a major role on their productivity, innovation, and organizational sustainability. Akintoye (2024) also noted that employee potential had a huge impact on the success of the business and was dependent on how well they were leveraged and aligned with business goals. Similarly, Lawani et al. (2024) argued that ongoing professional growth and proper management of employees boosted the adaptability and competitiveness of the organization. Hence, in the modern world, companies have persisted to focus on supporting human resource practices that will boost employee commitment and organizational effectiveness.

The increasing realization that employees are strategic assets of organization has made it interesting to adopt incentive schemes as essential instruments for motivating and rewarding employee performance. Incentive schemes are any kind of financial or non-financial rewards that are deliberately designed to reward employees for their desirable work behaviours and for them to maintain a high level of commitment to the organisation's goals. Based on the findings of Adebola and Omopupa (2022), incentive schemes include salaries, bonuses, commissions, award programmes, promotions, allowances and other motivational packages designed to encourage quality employee work. According to Mwalukoba and Abayo (2023), incentive schemes were a way by which the organizations tied the aspirations of employees to the organizational requirements, thus inducing commitment and improving the work environment. Olayisade and Awolusi (2021) also described that the effective incentive systems comprised of both intrinsic and extrinsic motivational factors that enhance job satisfaction and positive work attitude. Similarly, Felicia et al. (2024) noted that a well-designed incentive system fostered an organization's positive environment, leading to employee recognition, fairness, and an increase in commitment to organizational obligations. Thus, incentive schemes have become more and more a core of the contemporary human resource management because of its ability to enhance employee motivation and the effectiveness of the organization.

Rising incentive schemes has also magnified focus on employees' productivity, one of the most important measures of organisational performance. Employees' productivity is the ability of employees to use the resources, skills and competencies efficiently and effectively to complete assigned tasks to meet quality standards. Chukwuma (2023) defined employees' productivity as the measurable contribution of employees to the performance of the organisation in relation to efficiency, effectiveness, innovation and quality service delivery. Maduekeh et al. (2023) argued that productivity was attained when the staff members were consistently competent, committed and optimally utilized organizational resources to perform their duties. Likewise, Ademola (2023) reported that employees who were productive had a high level of diligence, punctuality, creativity, and accountability, which positively impacted the organization's growth and sustainability. Igbashangev (2023) further posited that the productivity of the employees was not only about the volume of work produced but also about the quality, timeliness, and effectiveness of work done in line with the goal of the organization. These viewpoints highlight the continued importance of employees' productivity as a performance measure by which organizations measure the effectiveness of their HRM practices, including incentive schemes.

In the manufacturing industry, in particular, where efficiency, quality of products and competitiveness of the organization relies mainly on the productivity of the human factor, the link between incentive schemes and productivity becomes very significant. Motivated employees are a vital asset to manufacturing organizations to maintain production efficiency, meet quality requirements and support an organization's ongoing improvement efforts. Ibrahim and Salihu (2022) reported that manufacturing companies were more likely to adopt formal incentive packages as an integral part of human resource management in order to ensure employee commitment and performance excellence. Similarly, Adebola and Omopupa (2022) asserted that manufacturing companies in Nigeria have different incentive systems that were tailored to the needs of the company and what the employees are expecting in a changing business landscape. Cadbury Nigeria Limited, Kaduna is one of the outstanding manufacturing organizations that perform their production activities mainly based on coordinated effort of employees and structured human resource practices. Due to its dependence on an efficient and motivated work force to meet production targets, it is an appropriate empirical setting for the analysis of interaction of incentive schemes with the productivity of employees. In view of this, this study is an investigation into the impact of incentive scheme on employees' productivity at Cadbury Nigeria Limited Kaduna to add to the current knowledge on incentive management in the manufacturing sector of the Nigerian economy.

1.2 Statement of the Problem

Productivity has emerged as a critical factor in the manufacturing industry, as more and more organizations understand that it is a key component in the effectiveness, quality, and competitiveness of their operations. As a result, many organizations have continued to use various incentive schemes and hope that they will motivate their employees and enhance the performance of organizations. Incentive schemes were set up to motivate higher employee engagement and to bring the employee's work into line with the goals of the organization, as reported by Adebola and Omopupa (2022). Likewise, Olayisade and Awolusi (2021) reported that good reward system had a positive impact on attitudes to work and organizational effectiveness. The right incentive program should motivate and inspire employees to do their best work, and allow companies to consistently produce and operate at their best. This expectation has taken incentive management an important aspect of human resource administration, especially in the manufacturing organizations where the efficiency and commitment of employees have important impact on the processes of production and the achievement of the company's goals.

The adoption of incentive schemes is widespread, but productivity differences persist amongst the employees in organizations, implying that the desired results of incentive programmes are not always achieved. Incentive schemes should continuously encourage the increased motivation, commitment, efficiency and quality performance of all classes of staff. However, in real life the structure and administration of incentive schemes, as well as their perceived fairness, may play a role in the degree of positive response by employees to organizational incentives. Mwalukoba and Abayo (2023) found that effectiveness of incentive schemes hinged on their ability to satisfy both employees' expectations and organizational goals. Similarly, Chukwuma (2023) insisted that productivity of employees as a result of their individual efforts and their organizational practices which enable them to sustain their high level of productivity. Therefore, there are doubts about the effect of the existing incentive schemes on employees productivity in manufacturing firms like Cadbury Nigeria Limited, Kaduna.

Despite the fact that incentive schemes and employee productivity have been widely studied in practice, studies have yielded mixed results due to the different organizational contexts, workforce characteristics and incentive structures, which prevent generalizations. Some studies highlighted the favorable impact of incentive schemes on the productivity of employees, but others indicated that the extent of the positive impact varied based on the circumstances in the organization and the methods used for implementation. In addition, little empirical study has been given to Cadbury Nigeria Limited, Kaduna, in spite of the importance of the company in the Nigeria manufacturing industry. Ibrahim and Salihu (2022) found that organisational context was important in the effectiveness of human resource practices. Likewise, Felicia et al., (2024) noted that contextual factors influenced employees' reactions to organizational incentive programmes. This knowledge gap calls for an empirical study of the impact of incentive schemes on the productivity of employees in Cadbury Nigeria Limited, Kaduna to give scientific facts that could assist in the proper management of incentives and boost the productivity of the organization.

1.3 Objective of the Study

The study's overall purpose is to examine the effect of incentive scheme on employees' productivity in Cadbury Nigeria Limited Kaduna. The study, on the other hand, was focused on achieving these precise goals:

1.Examine the effect of financial incentives on employees' productivity in Cadbury Nigeria Plc.

2.Assess the influence of recognition and reward schemes on employees' productivity in Cadbury Nigeria Plc.

3.Determine the effect of promotion opportunities on employees' productivity in Cadbury Nigeria Plc.

4.Examine the influence of employee welfare benefits on employees' productivity in Cadbury Nigeria Plc.

Other parts of chapter one include:
1.4 Research Questions

1.5 Research Hypotheses

1.6 Significance of the Study

1.7 Scope of the Study

1.8 Operational Definition of Terms

CHAPTER TWO
REVIEW OF LITERATURE (Preview)
This chapter critically examines relevant literature that would assist in explaining the research problem and, furthermore, recognizes the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps. This chapter therefore focuses on the concept of incentive scheme, types of incentive schemes, concept of employees' productivity, effect of financial incentives on employees' productivity, etc. The chapter is sub-grouped into the following major headings:
Conceptual framework

Theoretical framework

Empirical review

Summary of Literature Reviewed

CHAPTER THREE
METHODOLOGY (Preview)
Presented below is a snapshot of key areas of the study methodology, the full and detail chapter three methodology is contained in the instant download document.

Research Design: The study adopted a descriptive research design.

Population of the Study: The population of the study comprises permanent employees of Cadbury Nigeria Limited, Kaduna, drawn from various departments, including production, administration, finance, human resources, marketing, sales, quality control, and maintenance.

Sample Size Determination: The study adopted the Taro Yamane formula to determine a sample size of 205 participants.

Sampling Technique: The study employed a multi-stage sampling technique involving stratified and convenience sampling methods to select the individual respondents across the various departments.

Research Instrument: The study utilized a structured questionnaire titled “Effect of Incentive Scheme on Employees' Productivity in Cadbury Nigeria Limited, Kaduna” as the instrument for data collection.

Methods of Data Analysis: The collected data were analyzed using frequencies, percentages, means, and standard deviations to summarize and present the demographic characteristics of the respondents and their opinions. Inferential statistics, such as Multiple Regression, were used to test the hypotheses. The data were analyzed using SPSS.
Full outline for chapter three;
3.1 Research Design

3.2 Population of the Study

3.3 Sample Size

3.4 Sampling Technique

3.5 Instrument for Data Collection

3.6 Validity of the Instrument

3.7 Reliability of the Instrument

3.8 Method Of Data Collection

3.9 Method of Data Analysis

3.10 Ethical Consideration

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
MAJOR FINDINGS (Preview)
The analysis results were presented in tables and charts. Based on the results obtained from the analysis, the following major findings were made:

i. The study found that financial incentives have a positive and significant effect on employees’ productivity in Cadbury Nigeria Limited, Kaduna, as evidenced by a regression coefficient (B) of 0.291, t-value of 5.291 and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis. This implies that financial incentives increase employees’ productivity.

ii. The study found that recognition and reward schemes have a positive and significant effect on employees’ productivity in Cadbury Nigeria Limited, Kaduna, as evidenced by a regression coefficient (B) of 0.243, t-value of 3.984 and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis. This implies that recognition and reward schemes improve employees’ productivity.

iii. The study found that promotion opportunities have a positive and significant effect on employees’ productivity in Cadbury Nigeria Limited, Kaduna, as evidenced by a regression coefficient (B) of 0.196, t-value of 3.379 and p-value of 0.001 (p < 0.05), leading to the rejection of the null hypothesis. This implies that promotion opportunities enhance employees’ productivity.

iv. The study found that employee welfare benefits have a positive and significant effect on employees’ productivity in Cadbury Nigeria Limited, Kaduna, as evidenced by a regression coefficient (B) of 0.228, t-value of 4.000 and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis. This implies that employee welfare benefits boost employees’ productivity.

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter covers the following outline:

5.1 Introduction

5.2 Summary  

5.3 Conclusion

5.4 Limitations of the Study

5.5 Recommendations

5.6 Suggestions for Further Studies

Reference
Appendix

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