This research work investigated “Employer employees perception on incentives and reward
system in West African Examination Council, Ibadan”. The study examined the inducement of
incentives in boosting the productivity of staff for the organization to become more important as
well as identifying the nature, purpose, significance, justification and limitation of the study. The
study revealed relevant textbooks and journals on the Employer Employees Perception on
Incentives and Reward System to unfold gaps in literatures. Primary and Secondary data
collection was the two methods used to generate necessary information for the establishment.
The sample size considered for this study is 203 respondents out of which 186 respondents
participated. Simple percentage analytical tools was adopted for analyzing the primary data, chi
square statistical tool was used for testing hypotheses of the study while the secondary means of
data used were finished work of renowned authors, publications, textbooks and internet. The
study reveals that the establishment provides adequate reward system for the staff. 85% of
respondents opined that adequate incentive benefits were well disseminated. 90% of the
respondents agreed that promotion as at when due increases workers performance. 60% of the
respondents affirm that trainings and development will have positive influence on workers.
These and many other factors as adopted by the establishment have been responsible for good
performance recorded among staff. Conclusively, the study recommends that the establishment
should put more efforts to sustain this satisfactory record of performance.


Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
1.1 Background to the study 1
1.2 Statement of the problem 2
1.3 Objectives of the study 3
1.4 Significance of the study 3
1.5 Scope of the study 4
1.6 Statement of hypotheses 4
1.7 Limitations of the study 5
1.8 Definitions of operational terms 5
1.9 Historical Background of the Organization 7
2.1 Conceptual Definition of Organization 8
2.1.1 Formal Organization 8

2.1.2 Informal Organization 10
2.2 Bureaucratic Organization 10
2.2.1 Criticisms of the Classical Bureaucratic Model 11
2.3 Levels of Organization 12
2.3.1 Logical Steps in Forming an Organization 13
2.3.2 Principles of Organization 15
2.4 Types of Organization Structure 15
2.4.1 Line Organization 16
2.4.2 Staff Organization 16
2.4.3 Functional Organization 17
2.4.4 Committee Organization 18
2.5 Types of Committee 18
2.6 Authority and Responsibility 19
2.6.1 Kinds of Authority 20
2.7 Delegation 21
2.7.1 Reasons for Delegation 22
2.8 Motivation 23
2.8.1 The Concept of Motivation and Job Satisfaction 25

2.9 Variable Pay: Incentives for Performance 26
2.9.1 Types of Variable Pay 27
2.9.2 Successes and Failure of Variable Pay Plans 28
2.9.3 Factors Affecting Successful Variable Pay Plans 28
2.10 Concept of Incentive 31
2.10.1 Organizational Incentives 32
2.11 Incentives and Types 33
2.12 Bonuses and Types 37
2.13 Gain Sharing 40
2.14 The Early Theories of Motivation and Job Satisfaction 41
3.1 Introduction 45
3.2 Research Design 45
3.3 Study Population 46
3.4 Sampling Techniques 46
3.5 Sample Size 46
3.6 Research Instrument 47
3.7 The Questionnaire 47

3.8 Validity and Reliability 48
3.9 Administration of Instrument/Collection of Data 48
3.10 Method of Data Analysis 49
4.1 Introduction 50
4.2 Demographic Data 50
4.3 Figures and Illustrations on Respondents Responses on Variables 67
4.4 Test of Hypotheses 70
4.5 Discussion of the findings 74
5.1 Summary of findings 76
5.2 Conclusion 77
5.3 Recommendations 79
5.4 Proposal for further studies 80
References 82
Appendix 83


4.2.1 Demographic Characteristics of Respondents based on Sex 50
4.2.2 Demographic Characteristics of Respondents based on Age 51
4.2.3 Demographic Characteristics of Respondents based on Working Cadre 51
4.2.4 Demographic Characteristics of Respondents based on Marital Status 52
4.2.5 Demographic Characteristics of Respondents based on Length of Service 52
4.2.6 Demographic characteristics of respondents based on educational qualifications 53
4.2.7 Incentive simply means extra benefit which may not necessarily be money 53
4.2.8 Incentive is very important to both the organization and employees 54
4.2.9 Employers of labour sees incentive as an ability to invoke commitment
and cooperation of the subordinates to organizational goals and aspiration 55
4.2.10 Incentive is a means of improving general staff morale 55
4.2.11 Reward system has significant influence on performance 56
4.2.12 Well paid employees will perform better on the job 57
4.2.13 Workers are influenced by nature, quality of welfare services
provided by the organization 57
4.2.14 Profit sharing, awards, promotions and allowances can motivate employees
towards work 58

4.2.15 Training and development as a form of incentive in an organization will
have positive influence on employees 59
4.2.16 The skill and knowledge acquired is translated into efficiency and effectiveness 59
4.2.17 Employee and employer enjoy cordial relationship due to motivation
and adequate reward system 60
4.2.18 Good working condition in an organization will influence employees’
performance 61
4.2.19 Employees’ performance appraisal will influence their performances 61
4.2.20 Monetary incentive is far better that non-monetary incentive (housing
or car allowance, promotion) 62
4.2.21 Workers promotion as at when due is bound to increase workers efforts
and performance in an organization 62
4.2.22 Motivation tools are well utilized and planned by the management 63
4.2.23 Incentive induces employees to work hard and improve their general
attitude towards the organization 63
4.2.24 There is a strong relationship between organization development and
staff performance 64

4.2.25 There is perfect relationship between employees’ motivation and productivity 65
4.2.26 Satisfaction of an employee directly influences the organizational performance 65
4.2.27 Are you presently running an academic programme? 66


Organizational Pyramid 14
Figure 1: Employees’ Works Cadre 67
Figure 2: Employees Incentive and Staff Morale 68
Figure 3: Employees’ Cordial Relationship and Influence on Performance 68
Figure 4: Job Satisfaction and Staff Performance 69


1.1 Background of the Study
An Organization exists where two or more people agree to get together and co-ordinate their
activities so as to achieve common goals. Organization theories developed from the early part of
the 20th century and seek to understand, explain and attempt to predict human behavior in
The Organization structure is the basic framework within which the executive’s decision making
behavior occurs. The quality and nature of the decisions made are influenced by the nature of the
structure. Organization, as an element of management, is concerned with the grouping of
activities in such a manner that enterprise objectives are attained, the assignment of these
activities to appropriate departments and the provision for authority, delegation and co
ordination. In order to accomplish any goal, activities must be grouped logically and authority
should be granted so that conflicts do not occur.
Motivation as relating to an organization meeting its mission/goal is very important to both the
organization and to employees, from the employers’ point of view, it is anticipated that a good
staff employee motivation scheme will induce the employees to work hard and improve their
general attitude towards the organization. But for the employee, these benefits represent some
additional right such as extra income, additional security, or more designed working conditions
that should not require any additional effort.
Hence, employers of labour have seen motivation as the ability to invoke commitment and
cooperation of the subordinates to contribute more to the achievement of the organizational goals

and aspiration. This discovery has led many employers of labor to the introduction of well
packaged welfare services with the sincere belief that it enables a good staff to work hard and
improve the general staff morale.
The situation remains relatively the same in both private and public enterprises in Nigeria but
there are difference in methods of payment and apparent change in emphasis. However, the
productivity of public servants in Nigeria, little or nothing is known about the extent to which
non-financial motivation could also be utilized in achieving the same purpose with their counter
part in the private settings. Because staff/workers are directly influenced by nature, quality and
quantity of welfare services offered because they compare themselves with their counterparts in
other organizations.
1.2 Statement of the Problem
Often workers or employees are attracted to certain organization not only because of the pay
packets that are stated in advert, but also because of the benefits attached to them. This
dissatisfaction expressed by staff/worker either on the provision or administration to workers
motivation programme becomes some serious problem which demands proper investigation and
Moreover, inadequate provision of staff/employee motivation scheme that will have
induced the employee to productivity has been the bane of poor performance in most public


1.3 Objectives of the Study
The study objectives tend to;
i) Discuss the concept of administration, human capital, employee motivation and
ii) Determine the criteria used in the choice of motivation that will enhance high
iii) Examine the relationship between employees’ motivation, development and staff
iv) Investigate the organizational effectiveness and productivity in the West African
Examination Council, Ibadan and to;
Recommend further or appropriate use of employers’ motivation scheme for high productivity in
the establishment.
1.4 Significance of the Study
The administration of organizational incentives and reward system has far reaching
effects on organizational behavior and performance.
For instance, both financial and non-financial incentives have significant influence on
organizational productivity which includes reduction in labour turnover and retention,
employee’s job commitment, job satisfaction, compliance, harmonious labour management

Most scholars among which are lei et al 1999, lepak and snell, 1999, Garvin 1993, yahya and
Goh 2002, Akintayo 2010. These scholars submitted that organizational incentives and reward
system has much impact on staff productivity.
1.5 Scope of the Study
Management is viewed as a system and therefore management understanding of organizational
behavior is vital to productivity. This study therefore is to draw the attention of management to
the fact that human resources are as important as any other resources and therefore be accorded
equal attention, particularly needed for staff motivation for productivity.
The study focused on administration of organizational incentives and reward system in WAEC,
Ibadan, Oyo State. The study dwells extensively on staff motivation and its impact on
productivity. Efforts will be made on this study to investigate both financial and non-financial
reward system in the establishment and its impact on staff performance
1.6 Statement of Hypotheses
Hypotheses 1
Ho: workers performance is not directly influenced by any external motives and motivational
H1: workers performance is influenced by external motives and motivational tools.
Hypotheses 2
Ho: incentives and reward system provided by the management is inadequate and has positive
influence on staff performance.

H1: incentives and reward system provided by the management is adequate and has positive
influence on staff performance.
Hypotheses 3
Ho: administration of organizational incentives and reward system is hindered by inadequate
H1: administration of organizational incentives and reward system is not hindered by
inadequate fund.
1.7 Limitations of the Study
A study of this nature cannot be complete without encountering some constraints or limitation,
and this limitations range from time, finance and unavailable data.
The researcher is faced with the limited time given, and financial constraint.
Meanwhile, the management of the organizations under study initially refused to release some
vital data that are necessary for this study; however, in view of all these limitations, the study
was accomplished.
1.8 Definition of Operational Terms
For the purpose of this research work the following key words are defined as follows:
Staff: This can be described as workers employed in an organization considered as a group.
Worker: Employed and paid to do physical work or rather organizing things or managing
Employer: A body or company that pays people to work for them.

Organization: connotes social unit of people that is structured and managed to meet a need or to
pursue collective goals.
Management: is principally the scientific way of planning, controlling, coordinating and
directing the organization human and material resources with the aim of achieving organizational
goals and objectives.
Impact: is powerful effect of something.
Resources: a stock or supply of money, materials, staff and other assets that can be drawn on by
a person or organization in order to function effectively.
Influence: the capacity to have an effect on the character, development and behavior of someone
or something.
Benefits: extra advantage gotten for performance.
Productivity: The rate at which a worker produces and the amount produced compared with
how much time, work, and money is needed to produce them.
Performance: is the outcome of an action concerning a given task.
Motivation: It concerns the factors that cause channel and sustain an individual’s behavior.
Essentially, motivation has its roots in motives within a person which induce him to behave in a
particular manner.
Administration: Basically, administration involves principles and practice of governance, is
essential concerns compliance with the organizational rules, regulations and policies generally in
order to ensure the achievement of the corporate objectives or aims.

However, Oxford Advanced Learners Dictionary (7th Edition) defines administration as the
activities that are done in order to plan, organize and run a business, schools or other institutions.
1.9 Historical Background of the Organization
The West African Examination Council (WAEC) is a not-for-profit examination board formed
out of the concern for education in Africa. Established in 1952, the council has contributed to
education in some countries of West Africa (Ghana, Liberia, Nigeria, Sierra Leone and the
Gambia) The WAEC zonal office here in Ibadan started its operation in Molete as an outlet,
before it was moved to Adamasingba in the late 70’s where Oyo State gives them their present
site which is located at 1/3 Akintoye Adesina way, Ijokodo, Ibadan, Oyo State. And was
established in the year 1982.
The legislative assemblies of Nigeria, Ghana, Sierra Leone and the Gambia passed an ordinate
(West African Examination Council Ordinance No. 40) approving the West African Examination
Council in December 1951. The ordinance agreed to the coordination of Examinations and
issuing of certificate to students in individual countries by the West African Examination
Council. Liberia later issued their ordinance in 1974, at the annual meeting held in Lagos,