Abstract:
The main purpose of this study was to examine the effects of financial and nonfinancial
incentives on staff performance in public institutions. The detail of this
research was conducted in an attempt to demonstrate whether incentives have a great
potential to increase public employees’ motivation and work performance. To fulfill
the objective of the research as well as to obtain real and reliable data, a research
study was conducted at the Kumasi Metropolitan Assembly. A projected sample
size of 150 staff was used for the study. However, the study was based on the
retrieved questionnaire totaling 136 from respondents. The representative sample
approach by Krejeie and Morgan (1970) was adapted for the study. The method of
this research study was implemented with a qualitative analysis to investigate the type
of incentives that are existing in the organization, and to identify the correlation
between the rewarding, recognition and employee work performance. The data
analysis proved a significant correlation between incentives in the form of rewards
and recognition, and better work performance. Based on the findings of this research
study, most of the public employees in the above mentioned organization commented
that both financial and non-financial incentives are significantly important to
encourage and motivate them for greater work performance. It also indicated that
employees keenly cherish financial incentive than non-financial benefits. Meanwhile,
the level of utilization of non-financial incentives is extremely poor. Therefore,
within the limitations of the research study, it could be concluded that both financial
and non-financial incentives have a potential effect on staff motivation and work
performance in the public service organization of the Kumasi Metropolitan Assembly.
Description:
A Dissertation in the Department of Management Studies, Faculty of Business
Education, submitted to the School of Graduate Studies, University of
Education, Winneba in partial fulfillment of the requirements for the award of
Master of Business Administration (Organizational Behaviour and Human
Resource Management) degree.