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An Empirical Analysis of Job Incentives on Employee Performance
Chapter One
Introduction
1.1 Background of the Study
Incentive programs to foster and reward
employee performance make sense in the theory and carry an intrinsic appeal.
Most people agree that the programs work in varying degrees if the criteria are
objective, and the employees can influence the factor on which the reward is
based. The evaluation is objective, and there is certainty that the incentive
will come as promised. Therefore, process and programs of compensation must be
established and operated with great care. In Chad Basin Development Authority,
where incentive programs remain in a relatively minor part of the total human
resources management scheme, their development is even more complex. The
challenges to the success of employee incentive programs and process in the
Chad Basin Authority environment tend to come from all sides. They come from
the civil service tradition and applicable provisions of civil service law and
regulation, which theoretically protect employees from being treated
differently. The challenges may come from unions, which must be assured that
performance based compensation does not threaten principles of equity. The
staff of Chad Basin Authority and the elected officials who represent them may
take a view of incentives feeling that they cannot be honestly defended because
public service lacks the quality that warrants this kind of reward.
Despite the difficulties and the
financial strain, the organization tries to improve its human resource
development through incentives with real impact. The value of employee
programs, are evident in several dimensions. At face value is the simple reward
to individuals or groups for having accomplished something that moves the
organization towards its goals. At another level, the feel that the
organization really cares about how they do, as well as separating out the
truly extraordinary effort and result from the run-of-the mills, is likely to
release even greater creativity and commitment in the future. The incentives
are a bridge that buys the employee into the organization’s goal by connecting
the goals with personal success. The concept of linking employee compensation
or recognition to specific accomplishments has long been of interest to
employers, including those in the Chad Basin Development Authority. For the
purpose of this study, incentive programs are considered to be those that
provide a onetime payment or recognition for particular job accomplishment. The
structure of an incentive generally includes; definition of the accomplishment
to be recognized; the population eligible for recognition; the period of time
over which performance will be rewarded; provisions for measuring and
evaluating an accomplishment. The public service has a tradition of not
differentiating among employees, which is not entirely compatible with
incentive programs’ insistence on singling out superior performance within the
realm of public sector employment. Nevertheless, Chad Basin Development
Authority offers some further challenges. They include data collection,
selecting measures that are both objective and within employees’ control, and
acceptability within the collective bargaining context that is within the norms
of the organization. A number of changes have taken place in recent years that
tend to create an environment more hospitable to incentive. The demographic and
values of the workforce are much more diverse, governments have been under
increasing pressure to demonstrate efficiencies, the Chad Basin Development
Authority mission is changing in response to changes in work and committee
patterns, and advanced technologies are being brought to the organization which
open new opportunity to account for the work.
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