AN ANALYSIS ON COST-VOLUME-PROFIT AND PROFITABILITY TARGET

CHAPTER ONE/INTRODUCTION

Background to the study

Cost volume profit analysis is a methodical way to look at how changes in volume, or production, affect overall savings, revenue, expenses, and net profit. Cost volume profit analysis, which serves as a model for these connections, simplifies the actual conditions that a corporation would encounter, unlike models, which are an abstraction of reality. A variety of underlying assumptions and restrictions are placed on cost-volume-profit analysis.
Profit is a key indicator of a company’s success in a free market economy since it serves as a guide for wise resource allocation. Understanding how different variables impact profit is a crucial step in financial planning and decision-making. Making. Cost volume profit analysis refers to the analytical methods used to investigate how profit responds to changes in volume, price, and other variables (CVP). However. It should be emphasized that budgets and other forecasts are used in formal profit planning and management. Cost volume profit analysis is a good place to start when figuring out how much must be sold to break even and how much must be sold to reach the company’s profit target.
Consequently, the “concealed in efficiency” that was first stated by Outer and Brown (1984) in order to thrive in the modern economic environment must be found and standards established.

To guarantee even a small profit margin, strict supervision must be instituted and forecasts must be prepared. The cost variations are managed efficiently and effectively.
The development and survival of an organization will mostly depend on price, production (volume), and eventually profit. The activity (volume saving) point at which overall revenues and total costs are equal is known as the break-even point. It serves no purpose less or more. Only in cases when decisions about pricing, volume, and cost can be divided into two categories is the break-even point possible. Cost volume analysis is a tool used to evaluate the effectiveness of the firm’s short-term profit planning. It is an analytical approach used to examine how profit behaves in response to changes in volume, cost, and price.
An application of marginal costing, cost volume profit analysis, also known as break-even analysis, tries to investigate the link between cost volume and profit at various activity levels. It may be a valuable tool for short-term planning and decision-making. For known cost patterns and linkages to continue to hold true with bigger changes in activity and over the long term existing cost structure of the amount of fixed cost and marginal, it is more pertinent when the proposed changes in activity are relatively minor. Cost volume profit analysis is unlikely to provide valuable information since cost per unit is likely to fluctuate.

 

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THE IMPACT OF POOR BUDGETARY IMPLEMENTATION ON CONSTRUCTION COMPANIES

THE IMPACT OF POOR BUDGETARY IMPLEMENTATION ON CONSTRUCTION COMPANIES  (A STUDY OF SELECTED COMPANIES)

ABSTRACT

The study intends to investigate the impact of poor budgetary implementation in construction companies. The purpose is to specifically identify the major causes of poor budgetary implementation practices in construction companies using megastar technical and Construction Company Ltd, Aleed Construction Company, Anasami Construction Nig Ltd, Sametech Construction and C &C Construction Co. Ltd as case study. It is to determine the impact of poor budgetary implementation in construction companies and offer useful and meaningful suggestions for improving on the identified problems based on the findings. The study was carried out for the five companies. The researcher made use of primary and secondary sources of data. The primary sources with respect to this study include the various management staff of the companies and the account staff of the companies selected. Information obtained from these people were by asking face to face questions and recording their responses, then questionnaires were also administered to them for more response. A statistical approach (yaro yamen) was used in determining both the sample size and the proportion of the sample. Then the researcher used simple percentage and chi-square analysis to analyze the data collected. The study revealed that inadequate or poor budgetary implementation practices are as a result of deviation from the budgetary principles and standards, manipulation of budget by corrupt officials, late release of fund budgeted, etc. Recommendations were made based on the findings. The researcher recommended that there should be timely release of budget so as not to disrupt smooth operations of the companies. There should be an efficient monitoring of how the budget is implemented in the companies. It was also recommended that all employees of the companies should understand how a budget is implemented in the companies. The management of the companies were also adviced to motivate employees by encouraging employees through incentives and benefits in order to achieve the objectives of the organization.

CHAPTER ONE

1.1  BACKGROUND OF THE STUDY

            In the traditional sense, the primary purpose of preparing budget is to understand and control costs. Budget preparation is very useful in a project as a planning and controlling tool. Budget could be employed by the company to get priorities among projects competing for limited resources. It enables the company to set the machinery in motion for meeting the interim valuations as when due and also used to justify the  elimination of uneconomic projects as well as the revision of its objectives to meet the demand of a manageable project.

Results of descriptive/non parametric statistical technique indicate that one of the major problems confronting the construction sector in Nigeria is inadequate managerial control in the form of sound budget planning and control. The primary concern during implementation of budget is to ensure the fulfillment of the financial and economic aspect of budget outlays. The financial tasks include programmed spending of the amounts for the purpose specified and avoiding lapses or a rush of expenditure towards the end of the financial year. Budgetary implementation is the enforcement of the set objectives taking appropriate actions to bring performance in line with planned targets.

 

  • STATEMENT OF THE PROBLEM

Numerous problems militate against an efficient budgetary implementation. Benneth (1975:23) was of the view that “statute differences or more accurately role conflict between budget staff and line personnel is an important source of unfunctional consequence of a budgetary system. This implies that the basic problem of budgetary implementation arise from differences in the way budget staff and line personnel understand the budgeting system.

Line employees see budgets as merely emphasizing history, being too rigid, unrealistic, unattainable and ambiguous. The budget staff are seen as over-concerned with figures, unconcerned with line problems and cut off by a language of their own (ie presenting complicated format). These problems would affect the effectiveness of budget system directly or indirectly through their effects on communication, motivation and participation.

Again, under the volatile conditions in which they work, managers often lack up-to-date information on which to base their decisions. There is always a time lag involved in the process of preparing and approving estimates of proposed expenditures in most companies. This time lag matters less in a stable economy where factors affecting budgetary decisions change  slowly. But in the fast changing financial conditions of low income countries, it can make formal budgetary procedures impossible to follow.

Another important problem of budgetary implementation is the unrestricted transfer of funds from one category of expenditure to another. Lewis (1967:208) opined that “the characteristics of the African financial environment and changes that take place after the budget has been approved”. So all these lead to the study of “The Impact of Poor Budgetary Implementation in Construction Companies (A study of Megastar Technical and Construction Company Limited, Aleed Construction Company, Anasami Construction Nig Ltd, Sametech Construction and C & C Construction Co. Ltd).

1.3       OBJECTIVES OF THE STUDY

Major objectives of this study is to investigate the impact of poor budgetary implementation in construction companies, using Megastar Technical and construction company Ltd, Aleed Construction Company, Anasami Construction Nig Ltd, Sametech Construction and C & C Construction Co. Ltd as a case study.

The study will specifically:

  1. Identify the major causes of poor budgetary implementation practices in the companies under study.
  2. Determine the impact of poor budgetary implementation in construction companies.
  • Offer useful and meaningful suggestion for improving on the identified problems based on findings.

 

1.4   RESEARCH QUESTIONS

The following research questions are formulated for the purpose of the  study:

  1. What are the causes of poor budgetary implementation practices in construction companies?
  2. To what extent has poor budgetary implementation practices impacted in construction companies?
  3. How can poor budgetary implementation problems be improved to enhance the viability of construction companies to achieve their desired goals and objectives?

 

1.5       HYPOTHESIS

            In order to solve the problems of poor budgetary implementation, the study intends to test and prove or disapprove the following hypothesis

  • Ho: There is no significant relationship between poor budgetary implementation and late release of fund by responsible officials in construction companies.
  • Ho: Poor budgetary implementations do not hamper the growth of construction companies.
  • H0: Poor budgetary implementation problems cannot be improved in construction companies to enhance   viability of projects.

 

1.6       SIGNIFICANCE OF THE STUDY   

The result of the study is important for the following reasons:

It is to serve as standpoint from which business managers could design an effective machinery for budgetary implementation practices. Enhancing the viability of projects embarked upon by companies to achieve the desired objectives by improving the status of the company.

Helping prospective and potential investors/industrialists to realize the need for adequate budgetary implementation towards industrial growth. The study will also give research  students and interest groups in future an insight into the various aspect of budgetary procedures and its impact on the efficient resource management in companies.

 

 

1.7       LIMITATIONS OF THE STUDY

The following limitations are inherent in the study.

Lack of enough available sufficient data, because most of the vital documents needed for the research from the company were not completely provided for the researcher.

Poor information management and outdated materials in our libraries also pose a problem. Also time is another factor since no research work is exhaustible, the fact is that the time required for completion of this work is reasonably short.

However, the study has proffered much efforts to analyze the budgetary implementation procedure based on the available data taking into consideration the above limitations

 

1.8       SCOPE OF THE STUDY

The scope of this study is restricted to the impact of poor budgetary implementation in construction companies. The areas especially in focus are the construction industry where Megaster technical and Construction Company Ltd, Aleed Construction Company, Anasami Construction Nig Ltd, Sametech Construction and C & C Construction Co. Ltd has been used as case study. The scope in terms of respondents include: management and staff of accounts departments of the various companies for the study. These are people that believed to provide the required information on the subject matter for the study.

1.9       DEFINITION OF TERMS

Traditional Budgeting: a short range fiscal management and expenditure control carried out through assemblage of costs by type of resources, input and by organizational nor functional activities. Norvick (19967:3742)

BUDGET IMPLEMENTATION: The science based art of regulating the actual to be in parity with the set standard, to meet the economic demands placed on a business enterprise.

RESPONSIBILITY HOLDER: One appointed to lead and account for the operational unit of a firm with clear definition of their areas of responsibility.

BUDGET: A financial or quantitative statement, prepared prior to a specified accounting period, containing the plans and policies to be pursued during that period. It is used as the basis for budgetary control.

MANAGEMENT ACCOUNTING: The techniques used to collect, process and present financial and quantitative data within an organization to help effective performance measurement, cost control, planning, pricing and decision making to take place.

ZERO-BASE BUDGETING (ZBB): Is a management process that provides for systematic consideration of all programmes and activities in conjunction with the formulation of budget requests and programme planning.

BUDGETARY CONTROL: The process by which financial control is exercised with in an organization. Budgets for income and expenditure for each function of the organization are prepared in advance of an accounting period and then compared with actual performance to establish any variances

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THE IMPACT OF TAXATION ON THE ECONOMIC AND SOCIAL DEVELOPMENT IN NIGERIA

ABSTRACT

This research work focuses on the impact of Taxation on the economic and social development in Nigeria. Using secondary data gotten from the CBN statistical bulletin with the help of regression as a statistical tool, we analyzed the postulated hypothesis which dwelt on the relationship that exist between taxation and Economic and social development in Nigeria. It was discovered that taxation has a positive relationship with the economic and social development in Nigeria.  The researcher then recommends a well defined policy for inter governmental collaboration, co-operation and co-ordination between different tiers and agencies of government, awareness on the tax payers on the role of taxation in the economic and social development in Nigeria should be created and has been created in this research work.  Efforts should also be made by the government to ensure they channel revenue from taxation towards socio-economic activities that will benefit the tax payers.

 

CHAPTER ONE

  • INTRODUCTION

1.1   BACKGROUND TO THE STUDY

The world we live in presents a picture of appalling contrasts.  Some Countries are immensely prosperous, nearly two-thirds of the population of the world subsists on sub-standard incomes. Some Countries of the world are considered as developed and others developing, underdeveloped, or less developed with characteristics including illiteracy, inadequate housing and infrastructural facilitates, lack of medical care, malnutrition, unemployment and low levels of technology.

Nigeria is the most populous Nation in Africa and the 11th in the world and is also endowed with vast human and natural resources but unfortunately, Nigeria is also one of the Nations regarded as underdeveloped or developing.

According to Udabah (2000:1) “the fundamental challenge facing counties like Nigeria is in the transformation of their economic or economic structures from an underdeveloped to a developed status”. This entails the development of their economic wealth for the well-being of their citizens and the formation of social structures in a manner which improves their capacity to fulfill their aspirations.

Okpe (1998:1) stated that the existence of government is a necessity that cannot continue without financial means to pay it’s expenses as there are certain services which the government must provide to it’s citizens because of their essential nature.  Government does this to ensure that the supply of such goods and services are evenly distributed in any given society so that the rich and poor alike may benefit.  One may ask how does government get such huge amounts to finance the supply of such essential good and services to her citizens.  It is true that government mints money but there are other important economic factors that should be considered so that excessive money is not, in circulation in any economic. Thus Olashore (1999:23) noted that for an economic and social balance to be maintained in an economy government found ways of financing her activities and one of such finance apart from loans and grants is taxation.

 

 

Taxation plays a crucial role in promoting economic and social activities and growth. Though taxation, government ensures that resources are channeled towards important projects in the society while giving succor to the weak.  Orjih (2001:153) stated that taxation is useful in raising revenue, controlling the consumption of certain commodities, controlling monopoly, reducing income inequalities, improving the balance of payments as well as protecting infant industries.

In essence, taxation is a core pillar of a country’s regulatory framework for investment and growth. It features prominently in investment decision making motivated by profit maximization while also spurring local enterprise development but this can only happen when taxation and it’s administration are properly designed.

 

1.2   STATEMENT OF THE PROBLEM

Nigeria and other African Countries at large are facing a series of challenges when it comes to optimizing taxation for economic and social growth while aiming to reach development targets.  Perhaps the most inherently difficult challenge is how to find the optimal balance between a tax regime that is business and investment friendly while at the same time leveraging enough revenue for public service delivery which in turn makes economics more attractive to investors.

The taxation system in Nigeria has not been fully tapped and maximized and its role in promoting economic and social activities and growth is not felt because of it’s poor administration. Thus, Olashore (1999:53) stated that the economy has remained in deep slumber as all macro economic indicators show an economy in dire need of rejuvenation, balancing and indeed radical reform.

Identifying the impact of taxation on economic and social development in Nigeria is a research work born at the right time as there is an urgent need to delve deep and look into the situation of tax evasion and the likes which are punishable by law and also to look into measures required to meet challenges.

This will not only guarantee improved revenue base for the country but also position the country properly to take full advantage offered by the new millennium global tax reform system.  This research work shall examine the impact of taxation on economic and social development in Nigeria by analysing the tax gap in the system over the years thereby revealing the critical challenges that need to be tackled.

 

1.3   OBJECTIVES OF THE STUDY

The primary objective of this research work is identifying the impact of taxation on economic and social development in Nigeria. Also the research work will attempt to:

  1. Critically examine tax administration challenges in Nigeria in the last decades and in the new millennium
  2. Review measures that have been advanced in the time past by tax authorities and practitioners to meet these challenges.
  3. Expose factors militating against the impact of taxation as a tool for socio-economic development in Nigeria.
  4. Recommend policies to help in effective tax administration to enable social and economic growth and development in Nigeria.

1.4   RESEARCH QUESTIONS

The following research questions were formulated to guide this study effectively and successfully.

  1. Does tax Administration have any significant impact in an economy?
  2. Is there any tax gap in the Nigeria tax system?
  3. What factors are responsible for the ineffective nature of tax system in Nigeria?
  4. What measures could be adopted to improve the tax Administration process in Nigeria?

 

1.5   HYPOTHESES OF THE STUDY

The hypotheses are stated below:

  1. There is no significant relationship between taxation and economic and social development in Nigeria
  2. There is a significant relationship between taxation and economic and social development in Nigeria.

The decision criteria is to accept the null hypothesis and reject the alternative hypothesis or otherwise based on the result of the test carried out.

1.6       SCOPE OF THE STUDY

This research work shall cover the following areas:

  1. The origin of taxation in Nigeria
  2. The objectives of taxation
  3. A time line of the growth of tax Administration system in Nigeria
  4. An evaluation of tax Administration and the critical tax Administration challenges in the new millennium in Nigeria.
  5. Measures that have been advanced by the tax Authorities and practitioners to meet those challenges.

 

1.7   SIGNIFICANCE OF THE STUDY

The significance of this study can be viewed from two major stands points-academic and practical.

  1. Academic Significance:

In the academic arena, this study will prove to be significant in the following ways:

  1. It will contribute to the enrichment of the literature by adding a new body of knowledge to the existing body of knowledge in the research work related to the research topic.
  2. The study aims at exposing factors responsible for low level of revenue from taxation in Nigeria
  • It will suggest ways (of interest to academics) based on empirical evidence of improving tax Administration process in Nigeria.
  1. The research work also aim at providing recommendation to address the savagery impact of poor taxation and tax system as an aid to economic and social development in Nigeria
  2. Practical Significance

This kind of study will assist in broadening understanding and scope of knowledge of the following:

  1. To policy makers and regulators, it will present a scheme through it’s analysis of the loopholes in the taxation Administration and taxation system.
  2. To economic watchers and interested public, it will provide some insight into the factors militating against the impact of taxation as a tool for socio-economic development in Nigeria
  • To students, it will provide more information on the origin of taxation in Nigeria and it’s importance to economic and social development when properly designed.

 

1.8   OPERATIONAL DEFINITION OF TERMS

  1. Development: this is a multidimensional process involving the reorganization and reorientation of the entire economic and social system.
  2. Impact: The effect or influence that an event, situation etc has on someone or something.
  3. Taxation: this is the transfer of resources and income from the private sector to the public sector in order to achieve some of the Nation’s economic and social goals.

d.     Tax Administration: This is the Administration, management, conduct, direction and supervision of the execution and application of the internal revenue laws or related statutes and tax conventions

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Impact of Performance Appraisal on Employees Motivation

Impact of Performance Appraisal on Employees Motivation

Abstract

Appraisal is very significant tool inside the man supremacy management, stipulation it is conduct properly along with reasonably, it can carry out the organization to their ambition and the employees determination accomplish their wellbeing. Within this manuscript I study the sound possessions of concert assessment consequences taking place the staff enthusiasm.

“The aptitude to craft superior verdict Vis-à-vis populace corresponds to solitary of the preceding steadfast foundation of workforce assessment, while exceptionally hardly any association is good by the side of it.” Peter Drucker

 

CHAPTER ONE

Introduction

Performance appraisal refers to a process, which studies and evaluated the job performance. Appraisal is an effective instrument in the human resources management, which if performance correctly and logically used, the organizations will achieve their interest (Rezghi Ros tami, 2000). The act of motivating the employees is in the heart of the organizations. Success in every organization depends upon the personnel motivation conducted by their directors (Abedinirad & Hazer, 1995).

Identifying the proficient employees and presenting them rewards (bonus) as a sign of motivation, in order to improve their performance are among the essential factors in performance appraisal (loker,1977).

KavussiShal (1999) believes that the appraisal system is a good instrument to improve the quality and quantity of the manpower’s performance. Nowadays, performance appraisal is considered as an important aspect in human resources management and a part of the control process in administration (KavussiShal, 1999). Planning the appraisal process is an important subject in the government’s official system which is annually conducted in the governmental organizations, spending a large amount of time and expenditures to reach the objectives like: manpower development, including improvements, promotions and assignments in managerial positions, persuasion and punishment, salary increase, personnel’s performance feedback and determining their educational needs. In order to reach the objectives of an organization, every person must have sufficient awareness of his/her position with such as awareness, the employees will detect the strong and weak points of their performance and behavior, so that they will probably resolve the problems and deficiencies and will turn them into more efficiency and effectiveness.

Therefore, appraisal can be considered as an important factor in identifying the people’s talents and capacities and its results can make them aware of advancements, plans and goals. An organization, itself, needs to detect the employees’ efficiency to improve the manpower’s status, for the purpose of increasing the volume of the production and services and making positive changes in its trend (KavussiShal, 1999). In spite of the permanent efforts in planning more effective system for performance appraisal, there is convincing evidence of the authority’s dissatisfaction of the appraisal methods (Fox, 1987).

The appraisal systems are usually involved with the following problems: the lack of adequate support by managers, impracticability, the appraiser’s failure in conducting a right and fair appraisal, and the lack of accordance with realities (Lures, 1980).

Performance appraisals are indispensable for the effectual supervision and costing of staff. Appraisal help to enlarge individuals, perk up secretarial routine, and nourish into dealing development. Ceremonial performance judgment is commonly conducted per annum for each and every one workforce in the organization everyone is appraised by their line supervisor. Performance appraisals are also crucial for career and succession development. Performance review designed for workforce inspiration, position and conduct improvement, converse directorial aims, along with nurturing optimistic associations between supervision and workforce. Performance appraisals provide a recognized, recorded, customary assessment of an individual’s routine, and a sketch for potential enlargement. In diminutive, performance and career judgment are crucial for administration the performance of natives and organizations. (Panagar 2009) Performance evaluation ought to be treated as an enduring developmental progression to a certain extent than a prescribed once-a-year review. It ought to be intimately monitored by both worker and assessor to guarantee that targets are mortal achieved. By preparing physically conscientiously and signifying a keenness to work together with your reviewer to enlarge your responsibility, you will craft an encouraging consciousness. Worker act, in common, submit to behavior with the intention of applicable to directorial goals and with the intention to organize entity workforce (J.P et al. 1993) Performance assessment are perchance the preponderance vague along with ill-treated administration means in the times of yore. While raise, the mainstream of individual director will pledge canopy with the intention of their mass crucial means for analysis constituent of the section. The authenticity is that, on the whole, managers, supervisors, and employees abhorrence the inference for them and they hardly ever obtain complete. Individual reserve specialized squander an assortment of moment trouncing lay people into doing them, while managers appear for a diversity of motivation to wildcat strike the sequence. The intention for this is that it’s consistently an abrasive follow to clutch out, group get on performance assessment for the erroneous grounds and from the erroneous summit of view. This can ending up put the administrative and the employee on sundry “sides”. Assessments are worn for influential disburse boost, who acquire let go, who acquire sponsor. Nearly everyone frequently, they are worn to hub on what populace contain invalid. (Jr 2009). Provides management with decision-making information on human resources expand and progress report with employees erect stronger working relationships Identifies performers needing enhancement for coaching/guidance support taking responsibility for their performance and improvement.

(Armstrong 2005).According to Kewin Dwyer Performance Appraisal should be the Opportunity for an organizer in an organization to set the enlargement opportunity for their workforce flaming it should be a revitalizing invigorating juncture. Admittedly sometimes it may be tough practice as some home truths are formally collective about performance and leadership but it should never, never be a flabbergasted.

Motivation signifies a worker yearning and obligation, which is marked as effort. Some populace wishes for to absolute project excluding efficiently distracted or dejected. They have greatest point but diminutive guarantee.

Other hoof next to with splendid principle, but there is effort unimaginative. This populace has elevated pledge but little need (KAMAL1 et al. 2005). According to Luthans with the intention of inspiration this is the procedure which arouse, stimulate, leads, and with position manners and concert

 

1.2. STATEMENT OF THE PROBLEMS

The problems of what motivates workers into improving their work performance for an efficient organizations operation have undergone a very big strain given to writer of motivation series.

In most cases, workers in some manufacturing companies do not receive adequate bonus and incentive which could contribute immensely to inactive performance in their job or work. However, the problems in question can be highlighted viz:

  1. Low productivity and profitability in a manufacturing company.
  2. The production of inferior goods and rendering of poor services
  3. Negative attitudes of workers in carrying out assigned duties
  4. There seem to be an insatiable demand from some employees in an organization.

 

1.3. OBJECTIVES OF THE STUDY

Although, there is a general believe that appraisal as a techniques, motivate employees towards greater productivity and therefore, it increase profit.

However, the objectives of this study are to:

  • To examine the relationship between Performance Appraisal and Employees motivation.
  • To determine the effect of high and low workers appraisal that motivate employees in an organization.
  • Finally, to contribute to the existing stock of knowledge in this specific subject area.

 

1.4. SIGNIFICANCE OF THE STUDY

There is a great need of a research of this kind at a time when questions are being asked to the practical and theoretical foundation of performance appraisal on employee’s motivation in an organization.

However, this study shall provide new and avalanche knowledge to the following categories of people:

  1. Professional Secretaries in an organization
  2. Employees in an organization
  3. The government
  4. Trade Union
  5. Scholars in this particular topic
  6. Society at large

 

 

1.5. SCOPE OF THE STUDY

This research work “impact of performance appraisal in motivating workers” covers operations of First Bank plc, Nigeria.

1.6. RESEARCH HYPOTHESIS

HO: Appraisal does not motivate employee’s performance

HI: Appraisal motivate employee’s performance

HO: there is no relationship between Performance Appraisal and Employees motivation.

HI: there is a relationship between Performance Appraisal and Employees motivation.

HO: there is no different types of appraisal that motivate employees

HI: there are different types of appraisal that motivate employees

1.7. RESEARCH QUESTION

The following research question will guide this study and also enable the researcher to achieve the set objective of the research.

  1. Does appraisal motivate workers performance?
  2. What are the impacts of performance appraisal in employee’s motivation?
  3. What are the different ways of motivating workers in an organization?

1.8. LIMITATION OF THE STUDY

This study has certain limitations, which fall short of the ideas which the researcher has established viz;

  1. Lack of cooperation from some of the respondent (employees) of the firms under study
  2. The time large available for this study was not sufficient for a very detailed work of this nature
  3. Inefficient transportation system
  4. Fear of employees to disclose relevant information which they felt confidential.

1.9. DEFINITION OF TERMS

The terms used in this study (though might have different meaning to different people), are simple and unambiguous statement which are in one way or the other related to the topic sentence viz.

PRODUCTION: Production as used in this study simple means the creation of goods and services.

PROFIT: Profit as used in this study is the amount by which output is greater than the input after expenses have been duly deducted

BONUS: This is used here as money added to employees wage or salary especially as a result of good job performance.

INCENTIVE; Incentive is used in this study as the kind of compensation given to workers of an organization designed to influence the employees performance.

SALARY: This is used in this study as the regular amount an employee receive monthly for service rendered.

PERFORMANCE: Performance is the act, process or manner of functioning well in an organization.

ORGANIZATION: This is used in this study as the combination of human and material effort gained towards the achievement of certain objective.

EMPLOYEES: It is used in this study as persons who are paid for the work they carried out for their organizations

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