Impact of Incentives Alignment on Operational Effectiveness in Food and Beverages Industry in Nigeria
Vol. 4 Issue 1
The impact of incentives alignment on operational effectiveness was the focal point of this study. It examined the influence of incentives alignment on quality, delivery speed and operational cost. From extant literature, the concept of incentives alignment and operational effectiveness was critically examined. Incentives alignment is a mechanism for realigning benefits and costs when there is a process change in the supply chain. The target population for this study was fourteen (14) food and beverages firms in Nigeria domiciled in Rivers State, and a sample of 70 respondents were drawn from the managements of the selected firms under our study. A self-administered structured questionnaire was used to collect primary data and data obtained through the survey instrument were analyzed. The testing of hypotheses was done using Spearman Rank Order Correlation Coefficient Statistical Tool and Least Squares Regression Tool and the reliability of the research instrument was tested using the Cronbach’s Alpha which revealed that all the scores of the variables satisfied the standard Cronbach’s Alpha threshold of 0.7. By means of the SPSS version 20.0, frequencies were computed to show the sample characteristics. The study finds that; incentives alignment positively influences operational effectiveness and its measures; quality, delivery speed and operational cost. Based on the findings of this study, the paper concludes that incentives alignment has a positive and significant influence on operational effectiveness. The paper therefore recommends that the emerging partners should continue to inspire an unwavering incentives alignment techniques, workers understanding and commitment will be enhanced leading to increase quality in operations. A happy workforce with well package incentives will perhaps be the answer to boosting employee’s morale and subsequently grow into increased operational effectiveness.
