CHAPTER ONE1.0 INTRODUCTIONAn incentive is a form of financial encouragementrecognizing a particular contribution made by the work force, inother words, it is a sum of money paid in addition to the basic ratewhich the organization pays to ensure that its most importantproduction aspects are being optimized . For instance, a capitalintensive company might have an incentive linked to machineutilization.Performance incentives are payment made to an employeeor group of employee based on amount of output. The use ofperformance incentive policies is premised on the belief thatoutput can be measured and performance by workers, it useddated back to the era of the scientific management movementchampioned by Fedrick Winslow Taylor who argued passionatelyfor the use of incentive wage system as a way of getting moreoutput from the workers. It was also aimed at combating“soldering” or boondoggling” which was a practice of deliberaterestriction of output by workers on the job as at that time. Taylorbelieve that workers could always exert greater efforts if they were2to be paid a financial incentive based upon the number of units ofwork they were able to produce. He then developed thedifferential rate system which gives a worker a lesser piece rate e.g #1.0 per piece if he produced less than the standard amount ofoutput required by so doing; individual workers are motivated toproduce greater output.In every organization, large or small private or publicenterprises, human resources (employees) are always the pillar ofthe success of the organization. The human elements have theirindividual drives, desires, needs, wishes and similar forces whichthey intend to satisfy when they are coming into an organization.The satisfaction or non-satisfaction of these needs by theorganization has an impact on the behaviour or performance ofthe employee and eventually on productivity.The usefulness of good incentive policies which leads tomotivation of the employee cannot be over emphasized. Everyorganization depends on motivation among other factors for theattainment of their objectives. The monetary incentives likebonuses, wages, salary increment, e t c to put more effort intheir work which help to improve the level of productivity in bothprivate and public industries.Many a time, the most concern of employer is to make theemployee to contribute to the attainment of organizationalobjectives, but they should know that if the employees are nothappy with the management of the organization, there will be avery low rate of production in the organization, that is why Hekinaand Jones (1967) page 120 visualize that employees should beseen and valued as assets for the allocation of organizationalresources. This project will be based on the impact ofmanagement incentive policies on workers‟ productivity usingDangote cement factory obajana, kogi state as a case study.1.1 STATEMENT OF PROBLEMMost incentive plans are designed to assist in increasingefficiency in the organization. However, obtaining employeesacceptance of an incentive system may be difficult at the onset.There may be fear that the plan will lead to a speed up layoffs orreduce wage can cause workers resistance.Most employers do different things for instance ranking ofpeople, contest, performance appraisals, production, teams anddepartments, shifts, commission pay etc. all this are believed toenhance performance. Some researchers think it does the oppositeinstead of trying to use the external motivation (something outsidethe work itself such as promised rewards or incentives) to gethigher levels of performance from people. Employers will be betterserved by studying the organization as a system. Employersdemand results. Without good result organization will find itdifficult to survive. Managing incentive policies is a requirement forhigher productivity.Consequent upon a systematic survey of the constraintinimical to the success of management incentives policies1. To what extent has incentive policy affected workersproductivity?2. What is the purpose and importance of these incentives?3. What is the effect of the absence of these incentives?4. What is the way out?1.2 OBJECTIVES OF THE STUDYGood incentive policies, when put in place, motivate workersand make them happy and happy workers are often productive.Good management incentive could be financial or non financial innature. Financial incentive happens to be the most important ofthe incentive schemes and it includes wages and salaries, profitsharing scheme, etc.This researcher shall, by this study therefore beam searchlight on various aspect of management incentive policies vis-à-visproductivity, with a view to achieve the following objectives amongothers.i. To examine the nature and feature of various incentiveschemesii. To examine the usefulness and purpose of incentive in anorganizationiii. To examine problems associated with individual incentiveplansiv. To make relevant recommendations based on findings.