International Journal of Advanced Economics IMPACT
International Journal of Advanced Economics IMPACT
International Journal of Advanced Economics IMPACT
9 OPEN ACCESS
International Journal of
Advanced Economics
P-ISSN: 2707-2134, E-ISSN:
2707-2142
Volume 5, Issue 7, P.No.162-
186, September 2023
DOI: 10.51594/ijae.v5i7.548
1
Coscharis Motors Ltd, Nigeria
2
Independent Researcher, UK
3
Independent Researcher, UK
4
University of Pretoria, South Africa
5
Independent Researcher, Abuja, Nigeria
^Department of Business Administration and Management,
Anambra State Polytechnic, Mgbakwu, Nigeria
Corresponding Author: Chibuike
Daraojimba4 Corresponding Author
Email: chibuike.daraoi [email protected]
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 162
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 163
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 164
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 166
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 169
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 171
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 173
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 174
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 176
Educational Below BSc Bachelor's Master’s Professional Others TOTAL
Qualification Degree
or International Degree Qualification
Equivalent
Journal of
Frequency 29 Advanced 53 24 14 - 120
Economics,
24.2%
Percentage educated 44.2%Table20%
11.6% - experience shows
100%that 80.8% of
staff.
Volume 5
on work
5, Issue
Status Frequency Percentage
7, September
the Nigerian Automobile industry has over two years of work
2023
experience.45We shall look at the 37.5%
Junior Employee various questions as presented
in the feedback form and analyze them according to the several
Senior Employee 45 37.5%
sub-headings (Salary, Bonus, Pay-Raise, Profit Sharing and
Manager Distribution
Retirement of 30
Benefits) 25%
Respondents
Total based on 120 100%
Educational
Below 2 years 23 19.2%
Qualification
2 years and above 97 80.8%
Table 5
Distribution of Respondents based on Work
Experience
Years of Experience Frequency Percentage
(i) Salary
Table 6 on Salary indicated that 30 % of our respondents
strongly agree that the salary and wages in the industry do not
reflect the standard set by the salary and wages commission,
and 43.3% also feel that their salaries should be reviewed
every 2-3 years. The analysis shows that most of the
respondents are not satisfied with the salary structure of the
Sal
automobile industry, which may negatively impact their
ary
Fee
dba
ck
For
m
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 177
similar industry. ; Frq 52 46 4
3 Salaries in automobileInternational
industry need to beof Advanced
Journal 43.3%
% Economics, 38.3% 3.4%
reviewed every 2-3 years
Volume 5, Issue 7, September 2023 12 6
TOTAL 10% 5%
(ii) Bonus
Table 7 on Bonus Payment shows that Bonus has high degree of influence on the performance of
employees in the Automobile Industry, 60% strongly agree that Bonus payment is a key motivating
factor towards performance.
Table 7
Bonus Feedback Form
Bonus SA A U D SD
Pay Rise SA A U D SD
R
i
s
e
F
e
e
d
b
a
(iv) Profit Sharing
c
Table
k 9 shows that more of our respondent (39.2%) does not care
much about profit sharing as it does not determine their
motivation
F to work.
o
Ihemereze,
r Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 178
m
Profit Sharing SA A U D SD
Inter
natio
1
Openness of management nal on profit sharing boost Frq 60
43
2
5
10
stakeholders confidenceJourin the
companyTab nal % 50% 35.8% 1.7% 4.2% 8.3%
le
P9 of
Adva
2 Profit rsharing is a strong
ncedmotivating factor Frq 13 13 4 47 43
o in the Automobile
for staff Econ industry % 10.8% 10.8% 3.4% 39.2% 35.8%
f omic
3 As an employee I benefit from my company Frq 12 18 8 37 45
i
profit sharing s, % 10% 15% 6.7% 30.8% 37.5%
Volu
TOTAL t me
(v) -
Retirement Benefit
5,
Issue
Table 10sshows the impact 7, of retirement on workers' motivation. The employees strongly agreed
h
that the company policies should include good retirement benefits.
Sept
a embe
Table 10 r r
Retirementi Benefit Feedback2023 Form
Retirement Benefit SA A U D SD
n
g
1 Automobile
F companies have the best Frq 30 13 27 24
retirement benefits. 26
e
e % 21.7% 25% 10.8% 22.5% 20%
d
2 The retirement benefit of my company gives Frq 31 33 17 20 19
b
me aa high level of Job Satisfaction % 25.8% 27.5% 14.2% 16.7% 15.8%
3 Good retirement benefits should be included Frq 57 34 4 15 10
c
in company policies % 47.5% 28.3% 3.4% 12.5% 8.3%
k
TOTAL
F
o
r
m
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 179
Factor Agree Disagree Total
International Journal
Salary of Advanced a 89 b 290 c
201
Economics, Volume
5, Issue 7, September
Bonus 325Table 11 d 6 e 331 f
2023
Observed Figures
Pay Rise 353 g 1 h 354 i
from our Study
Profit Sharing 159 j 187 k 346 l
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 180
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
DF = 4
The probability = 0.005
Since the Chi-square value is 397.6 and the degree of freedom
is 4, when this is entered into the chi-square distribution
table with 4 degrees of freedom and reading along the row we
find that at 0.005 probability level, the chi-square value will
be reading 14.86 (or 3.85 which is the square root.) which is
less than the calculated chi-square value of 397.6 (or 19.9
which is the square root) therefore we reject all the null
hypothesis "Ho."
Test For Hypothesis / Discussion on
Findings The hypothesis for the study is:
HO= Null Hypothesis H1=
Alternate Hypothesis
The HO= Null Hypothesis is further broken down into the following
according to test variables:
HO1: Cash Bonus (Sales Commissions) do not have any effect on
employee performance in the Nigerian Automobile Industry
HO2: Retirement Benefits do not lead to Job satisfaction in
the Nigerian Automobile Industry. HO3: Pay rise is not
effective on worker's performance in the Nigerian Automobile
Industry. HO4: Profit sharing is not relevant to workers'
performance in the Nigerian Automobile industry.
However, H1= Alternate Hypothesis, shows that the variables
( Salary, Bonus, Pay Rise, Profit Sharing and Retirement
Benefits) significantly impact worker's performance in the
Nigerian Automobile Industry.
The two hypotheses were examined employing the chi-square
contingency table method. The questionnaire, encompassing
questions related to the Five Factors of monetary incentives,
delved into key aspects such as salary, bonus, pay rise, profit
sharing, and retirement benefits. These questions underwent
scrutiny via the chi-square formula/analysis. The computed chi-
square results established a correlation between the variables
or factors of monetary incentives and the performance of
workers within the Nigerian Automobile Industry. This deduction
arises from the observation that the calculated chi-square
value surpasses the critical value in the chi-distribution
table, considering a degree of freedom of 4—consequently, all
the Null hypotheses "Ho" were refuted.
Thus, the outcomes of the chi-square analysis corroborate the
Alternate Hypothesis, indicating that Monetary Incentives
(Salary, Bonus, Pay Rise, Profit Sharing, and Retirement
Benefits) significantly impact workers' performance in the
Nigerian Automobile Industry.
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 181
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 182
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Recommendations
Based on the comprehensive conclusions drawn from this study,
we offer the following strategic recommendations to optimize
the relationship between monetary incentives and workers'
performance within the Nigerian Automobile Industry. It is
recommended that organizations proactively communicate to their
employees that exemplary performance will be duly rewarded
through monetary incentives. This entails establishing a clear
link between reward and performance, with bonus and pay-raise
structures being predicated on individual or team
accomplishments. Transparency in outlining these performance-
based incentive mechanisms can significantly elevate employee
motivation.
Management across diverse companies within the Automobile
Industry should prioritize consistent and timely reviews of
workers' salaries. Ensuring that remuneration reflects
prevailing standards and expectations, as relevant regulatory
bodies advocate, can cultivate a sense of equity and value
among employees. Equally crucial is the punctual disbursement
of bonus payments, as this punctuality reinforces the
connection between performance and reward, sustaining high
levels of employee motivation. To invigorate employee
performance, organizations are encouraged to adopt pay rise
policies that are intrinsically tied to enhanced performance.
Regular review and adjustment of salaries to reflect employees'
dedication and competence can serve as a potent motivational
tool, amplifying commitment and efforts. Management should
proactively reassess the retirement benefit structure within
the Automobile Industry. The aim is to bolster job satisfaction
among employees, thus fostering a sense of security and well-
being. By enhancing retirement benefits, organizations can
create a more conducive work environment that nurtures
dedication and engenders superior performance. A paramount
recommendation is the cultivation of transparency across all
facets of monetary incentive processes. Management's commitment
to transparent practices ensures that incentive-related
operations are executed fairly and without ambiguity. This
transparency reinforces employees' trust in management and
amplifies their motivation to perform optimally.
References
Abdullah, A. A., & Wan, H. L. (2013). Relationships of non-
monetary incentives, job satisfaction and employee job
performance. International Review of Management and Business Research,
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 183
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 184
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 185
International Journal of Advanced Economics, Volume 5, Issue 7, September 2023
Ihemereze, Eyo-Udo, Egbokhaebho, Daraojimba, Ikwue, & Nwankwo, P.No. 162-186 Page 186