THE INTRICATES OF FINANCIAL AND NON-FINANCIAL INCENTIVES AS A TOOL FOR MOTIVATING EMPLOYEE TOWARDS ACHIEVING ORGANISATIONAL GOAL IN THE NIGERIA CONTEXT

Abstract

ABSTRACT

          The dynamism and complexity of human factors of organization constitute a great barrier to effective integration and retention among other functions of human resource management. Because of the complexity of human needs, identifying what could actually meet their needs constitute a herculean task. There is that general agreement that incentives (financial and non-financial) constitute a strong driving force that could induce (motivate) a worker to act in a desired manner, but the complexity of these incentives has also led to its misapplication. The paper examines some of the intricacies of financial and none- financial incentives on motivation, performance and achieving the organizational goal as a whole. It was discovered that human needs apart from being complex and conflicting, varies over time. Because of this, incentives also will vary in terms of their impact on motivation. Also, identifying the right type of incentives which is preferable for the worker makes it more difficult. Finally, the inability of identifying the unforeseen or unintended consequences of incentives could render them of no effect. Therefore, a proper knowledge of the intricacies of financial incentives is the beginning of wisdom for enhancing performance and achieving organizational goal. Finally, a mix of both financial and non-financial incentives is desirable.

Keywords: Employee, incentive, organization, motivation, productivity