Module MGT4900/10/20/50 Proposal

RESEARCH PROPOSAL

THIS RESEARCH PROPOSAL IS DESIGNED TO GIVE THE KEY SECTIONS

THAT HAVE TO BE COMPLETED FOR A SUCCESSFUL PROPOSAL. THE
NUMBER OF WORDS IN THIS DOCUMENT SHOULD BE 2000.

STUDENT NAME: SHETTIMAH BAKO

STUDENT NUMBER:

MODULE NUMBER: MGT 4900

TITLE OF THE RESEARCH PROPOSAL:

THE EFFECT OF MONETARY INCENTIVES ON THE

PERFORMANCE OF PUBLIC SECTOR ORGANISATIONS (A CASE
STUDY OF ECONOMOMIC AND FINANCIAL CRIME
COMMISSION NIGERIA)

DEADLINE:

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Table of Contents
1. SECTION 1: THE RESEARCH TOPIC..................................................................................................2
1.1 Background............................................................................................................................2
1.2 What is the issue/problem that your proposal addresses and why is it important to the
reader?..............................................................................................................................................2
1.3 Why is the topic of interest to you?.......................................................................................2
2. SECTION 2: RESEARCH AIMS, QUESTIONS AND OBJECTIVES.........................................................3
2.1 Research Aim(s) / Purpose.....................................................................................................3
2.2 Research Questions/Sub Questions.......................................................................................3
2.2.1 Research Question.........................................................................................................3
2.2.2 Sub Questions................................................................................................................3
2.3 Research Objectives...............................................................................................................3
2.4 Key theories/Conceptual Models considered/used to address your topic............................3
3. SECTION 3 KEY LITERATURE..........................................................................................................4
3.1 Main arguments (& supporting citations) where authors agree/disagree on your Topic......4
4. SECTION 4 METHODOLOGY...........................................................................................................5
4.1 Alternative methodologies considered..................................................................................5
4.2 Actual Methodology that you plan to use..............................................................................5
4.2.1 Justification for the Methodology that you plan to use.................................................6
5. SECTION 5 RESEARCH TIMETABLE.................................................................................................6
6. SECTION 6. RESEARCH ETHICS.......................................................................................................6
7. SECTION 7 REFERENCES.................................................................................................................6

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1. SECTION 1: THE RESEARCH TOPIC

1.1 Background
Reports have shown that the effectiveness of public service delivery is influenced by the
effort and skills of the worker in the public sector. Moreover, (Reference) recommends the
public sectors to adopt the provision of monetary incentives as a potential strategy to
motivate better job performance and attract better trust from the public. Most public sectors
are highly prone to corruption from both internal and external sources which in some ways
influence their performance and their integrity in providing services to the society. In this
regard, it is important to adopt different strategies to motivate employees in the public sectors
in order to promote better performance. However, theorists have addressed the role of
financial incentives in the public sector, drawing attention to some features such as missions,
multiple tasks and principals. In this respect, this research is meant to investigate the effect of
monetary incentives regarding the performance of employees and public sector organisations
with emphasis on the Economic and Financial Crime Commission Nigeria.

1.2 What is the issue/problem that your proposal addresses and why is it important
to the reader?
The issue of bribery and corruption in the public sectors is arguably a more severe issue in
some countries, especially developing countries than private sectors which might be a
prerequisite for controlling the corruption in private sectors. The causes of corruption are
contextual, rooted in the policies of a country, social history, political developments, as well
as bureaucratic traditions. However, the normal motivation of employees in the public sector
to work productively may be undermined by several factors, including low and declining civil
service salaries and lack of incentives. The motivation to remain honest and prudent may be
weakened if the management or leaders use public office for private gains or if there is no
protection to those that resist bribery and corruption

1.3 Why is the topic of interest to you?

The interest of this topic is influenced by a statement by Poister (2010) in an article on the
effect of monetary incentives on individual and organizational performance: “public services
face challenges as the pressure to enhance performance increases and to improve
performance, its drivers have to be clearly defined and identified. So, this study will elaborate
concepts rather than to offer an in-depth empirical assessment of the drivers of performance
in the public sector organizations with emphasis of the Economic and Financial Crime
Commission (EFCC) Nigeria
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2. SECTION 2: RESEARCH AIMS, QUESTIONS AND

OBJECTIVES

2.1 Research Aim(s) / Purpose

 Understand the role of monetary incentive with regards to the performance and
better outcome of employees and public sector organizations
 Investigate the factors that influences the critical issues associated with monetary
incentives as a tool for motivation.

2.2 Research Questions/Sub Questions

2.2.1 Research Question
Does monetary incentive enhance or hurt the chances for optimum performance and success
of public sector organizations?

2.2.2 Sub Questions

Is the monetary incentive positively related to individual performance in public sectors?

Does a monetary incentive induce virtuous behaviour at an individual level in public sectors?

Does a monetary incentive reduce the rate of bribery and corruption in public sectors?

2.3 Research Objectives

 Assess the importance of monetary incentives and how they are applied in public
sectors
 Apply extrinsic incentive mechanisms with regards to the conduct and
management of employees
 Examine the significant relationship between monetary incentives and
performance
 Analyze the behaviour of the employees in public sector firms that adopt the
contingent pay systems

2.4 Key theories/Conceptual Models considered/used to address your topic

Public sectors typically have ambiguous objectives that are influenced by several needs of
stakeholders such as clients, users, local citizens, the media, regulatory agencies, employees,
managers and the government. The study will further investigate whether the critical issues
that are associated with using monetary incentives as a motivational tool in the public sector
emerge by analyzing the behavior of the employees of public sector firms that adopt the
contingent pay systems. Also, the study will investigate if the adoption of monetary

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incentives provides motivation to competition that propels employees to achieve better

outcomes through improved performance.

3. SECTION 3 KEY LITERATURE

The key literatures to be covered in this study will include several academic journals and
reports from the operations of public services. In this regard, a study by Dowling, Bernard
and Ray 1997 on “evaluating performance-related pay for managers in the National Health
Service” would be used alongside other literatures that discussed the several factors as
highlighted on the headings below.

3.1 Service Productivity

Literatures by Sahay, 2005; Gronroos, 2001; Vuorinen et al., 1998; and Gronroos and
Ojasalo, 2004 will be used to address this theme. This section will investigate the factors that
influences service productivity in the public sectors.

3.2 Public Service Performance

A study conducted by Jeffrey and Shaffer (2007) stated that successful organisations in the
public sector always employe some type of performance-based pay method or structure that
encourages improves performance among its workers, also to improve their flexibility. In this
regard, the role of performance-based structures and public service organisations apply it as a
performance pointer will be investigated.

3.3 Factors influencing performance in public service organisations

The factors influencing performance in public sectors will be critically analysed based on the
concepts from several literatures

3.4 Monetary Incentives

Different types of monetary incentives provided to the employees in public sectors will be
critically analysed based on the concepts from several literatures

3.5 Management strategies for employee motivation in public service organisations

The strategies adopted by management or leaders in public sectors will be critically analysed
based on the concepts from several literatures to determine the level of influence it has on the
performance of the employees and organisation

3.6 Factors Influencing employee performance

The factors influencing the performance of employees in public sectors will be critically
analysed based on the concepts from several literatures

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3.7 Main arguments (& supporting citations) where authors agree/disagree on your
Topic
The study will investigate why optimal structure of monetary incentives in the public sectors
is likely different from those in the private sector. In this respect, theory suggests some
argument in contrast to the use of high-powered schemes for monetary incentives. Such
arguments relate to extreme measurement issues, multiple principals, intrinsic motivation and
the importance of team in achieving maximum productivity (Azofra, Prieto and Santidrián,
2003). According to Arnolds et al. (2010), public services are faced with challenges as the
pressure to improve performance increases. Performance is an ambiguous idea that is
regarded as a major success factor in public organizations, as well as companies. incentives
are simple and easy to understand, also they are related to measurable targets. However,
operational performance relates to the efficiency and effectiveness of processes as efficiency
relate more to the utilization of resources while effectiveness refers to the capability of a firm
to reach a desired goal or the degree to which a firm achieves its desired results.

Qureshi, Zaman and Shah (2010), asserts that high performance of a firm usually has a
positive impact on its productivity. On the other hand, Mazzanti, Pini and Tortia (2006)
claims that the high performance of an organization depends on the performance of the
employees, so it is vital for employees to be motivated, especially in public sectors in order to
influence productivity. Past studies have endorsed some theories such as agency theory in
evaluating the performance of firms and employees, as well as the role of monetary
incentives. According to the agency theory, a dilemma occurs when an employee is
motivated to act in their best interest, which might contrary to those of the organization.
Likewise, theories such as paying f bonuses based on seniority, has been used by some public
service firms as a tool to boost work motivation, and increase the performance of the
employees. However, a study conducted by Hendry et al. (2000) found that monetary
incentives given to the employees of a police service organization helped to reduce financial
and economic crimes.

4. SECTION 4 METHODOLOGY

4.1 Alternative methodologies considered

To achieve the aims of this study which includes addressing the practical issues and the
research questions, several strategies or methods can be applied; however, the method can be
either qualitative or quantitative study or it can include both research approach to determine
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the effect of monetary incentive on performance. According to Heras (1995), research in this
nature involves several tools and techniques such as method of data collection, research
design, research strategy, and research approach. Research design allows the researcher to get
insights on how research would be conducted using a specific method such as regression
research design using time series empirical data on the variables to analyse the effect of
monetary incentives in respect to either positive and negative influence on the performance of
public sector organisations. Other alternative methodologies could be case study analysis of
several public firms and their performance. Likewise, experimental research can be used as
an alternative method to observe the reactions of employees towards factors implemented by
the organisations to motivate and empower them for success.

4.2 Actual Methodology that you plan to use

Notwithstanding the alternative methodologies that can be used to achieve the aims of this
study, this study will be conducted following a philosophical approach that will allow the
research to make decisions on how data would be collected, used and analysed. In this regard,
a pragmatist philosophy will be followed to accept relevant concepts based on supported
actions. This philosophy would include both quantitative and qualitative research approach to
proper investigate the different factors that influences organizational performance in public
sectors, as well as the role of using monetary incentives as a motivational tool for employees.
The quantitative study will be conducted using questionnaires as the research instrument,
while the qualitative study will include conducting of interviews with different members of
the chosen organization. The study will be cross-sectional and will involve both descriptive
and exploratory research design with a minimum population sample of 50 staffs form the
Economic and Financial Crimes commission Nigeria

4.2.1 Justification for the Methodology that you plan to use

The pragmatism philosophy which is planned for use in the study accepts concepts to be
relevant only if the actions are supported, also it combines positivist and interpretivism
positions within the scope of specific research. Unlike other research philosophies,
pragmatism integrates more than one research approach and research strategy within the same
study such as quantitative and qualitative research methods. Also, the ontology of this
planned method can either be objective or subjective, in other words, the analysis of the data
would be subjective or objective.

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5. SECTION 5 RESEARCH TIMETABLE

6. SECTION 6. RESEARCH ETHICS

Though secondary research does not always involve the collection of data from participants,
there is a huge amount of data collected through the routine management information system
and other research activities. The fundamental ethical issues in secondary research have
become more pressing with the advent of new technologies. By this, sharing of data,
compiling and storage have become much easier and faster. Concurrently, concerns about
privacy and security arise. In most cases, the concerns about the secondary use of data
revolve around the issue of return for consent and potential harm to individual subjects. In the
process of conducting the secondary research, the research will avoid the use of data with no
identifying information or coded to restrict access because it does not require a full review of
the ethical board. However, if the data is freely available on the internet, digital libraries,
financial forums, permission will be sought in order to use them in this study. In such a case,
written authorisation for the use of data will be obtained from the research team included in
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the ethical clearance. Considering the sensitivity of data from public sectors, the ownership of
data would be dully acknowledged, and the use of data from public sectors in different
countries to measure or test the hypothesis would be strictly avoided.

7. SECTION 7 REFERENCES
Azofra, V., Prieto, B. and Santidrián, A., 2003. The usefulness of a performance
measurement system in the daily life of an organisation: a note on a case study. The British
Accounting Review, 35(4), pp.367-384.
Arnolds, C., Boshoff, C., Mazibuko, N. and Klemz, B., 2010. The motivational impact of job
security, recognition, monetary incentives and training on the job performance of blue-collar
employees. South African Journal of Labour Relations, 34(1), pp.86-102.
Boachie-Mensah, F. and Dogbe, O.D., 2011. Performance-based pay as a motivational tool
for achieving organisational performance: An exploratory case study. International Journal
of Business and Management, 6(12), pp.270-285.
Gerhart, B. and Milkovich, G.T., 1990. Organizational differences in managerial
compensation and financial performance. Academy of Management journal, 33(4), pp.663-
691.

Heras, M., 1995. FROM PERFORMANCE MEASUREMENT TO PERFORMANCE

MANAGEMENT. FULL TIME MBA ELECTIVES, p.76.
Hendry, C., Woodward, S., Bradley, P. and Perkins, S., 2000. Performance and rewards:
cleaning out the stables. Human Resource Management Journal, 10(3), pp.46-62.
Jeffrey, S.A. and Shaffer, V., 2007. The motivational properties of tangible incentives.
Compensation & Benefits Review, 39(3), pp.44-50.

Jenkins Jr, G.D., Mitra, A., Gupta, N. and Shaw, J.D., 1998. Are financial incentives related
to performance? A meta-analytic review of empirical research. Journal of applied
psychology, 83(5), p.777.
Mazzanti, M., Pini, P. and Tortia, E., 2006. Organizational innovations, human resources and
firm performance: The Emilia-Romagna food sector. The Journal of Socio-Economics, 35(1),
pp.123-141.
Nandanwar, M.V., Surnis, S.V. and Nandanwar, L.M., 2010. Intervening factors affecting the
relationship between incentives and employee motivation: a case study of pharmaceutical
manufacturing organisation in Navi Mumbai. Journal of Business Excellence, 1(2), p.6.
Sonawane, P., 2008. Non-monetary rewards: Employee choices & organizational practices.
Indian Journal of Industrial Relations, pp.256-271.

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Ramprasad, K., 2013. Motivation and workforce performance in Indian industries. Research
Journal of Management Sciences
Qureshi, M.I., Zaman, K. and Shah, I.A., 2010. Relationship between rewards and
employee’s performance in the cement industry in Pakistan. Journal of international
academic research, 10(2), pp.19-29.

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