1.1            BACK-GROUND OF STUDY:

The word remuneration and incentive and not new but however require frequent and constant up – dating of system applied MALVIN J. 1976 it is in view of this that this research work is designed to investigate and unravel the system and method appropriate considering the line of business one deals on. However special emphasis is paid to manufacturing sector effort will also be made to discuss the principles applicable to all remuneration and incentive schemes.

To be informed, the impact of remuneration and incentive may not need this kind of discussion as it will only mean waste of time kind of discussion as it will only mean waste of time since with ease adequate and appropriate provision for such could be made. But it goes beyond this as a lot of factor and attributes have to be considered before any manufacturing company will venture to pay anything in the name of remuneration. (FEES AND ND WONGER) with the turbulent economics environment in the country it becomes a dicey situation when issues of what is to be paid and the basis of assessment arises (1995 Federal Republic of Nigeria Budget). This is because when enough provision is not made this results to workers being paid less than what this results to workers being paid less than what is appropriate and commensurate with work performed, when this happens the tendency is that such companies loose other dedication consequent upon which production usually talks a pitying situation (Luthans – in this theory of organizational behaviour).

On the other hand, when more that appropriate is recommended, thus on its own paint bring about incusing extra lost because by more than adequate remuneration its only explains that payments are made for works not done. (GARY .W. 1979) with the system, methods principles and approaches out linked in this research work. The problem remunerated above and more mentioned because of space and time, become on the those problem whose solutions has been identified. 



          The statement of problem includes:

  1. Deciding what and how workers should be paid is practical problem.
  2. What method of remuneration to apply
  3. The extent of remuneration and incentive that can motivate workers to increase productivity.
  4. Problem of threat of retrenchment to staff workers



  1. To find out the extent to which decision on what and how workers are paid.
  2. To determine the best method of remuneration to apply.
  3. To find out the extent of remuneration or incentive that will motivate the workers to increase productivity.
  4. To find out the effect of threat of retrenchment to staff.



To guide this study, research question were formulate as show below:

  1. To what extent are the decision of what and how worker are paid effect productivity.
  2. Which of the method of remuneration or incentive is best to apply
  3. to what extent can remuneration or incentive motivate workers to increase productivity.
  4. To what extent are the problem of retrenchment to staff of a company affects performance



The scope of study is mainly focuses on the manufacturing sector; 


          In this work, I have endeavoured to being together materials that will provide a comprehensive converge of topics connected with the impact of remuneration and incentive.

  1. It is a research for the benefits of students studding Engineering, Management, Business course and those who may be preparing for relevant professional examinations.  
  2. I have tired to include virtually all aspects of work involvement, management service, functions and social service approach to industrial relations. Which I think are relevant to my main theme.
  3. Where appropriate, I have also included discussion about research activities and more recent developments in other techniques associated with remuneration and industries.