ABSTRACT
The study focused on the effects of welfare packages on employees’ performance in First Bank and Union Bank Nigeria Plc, Abia State. The specific objectives of the study were to: ascertain the effect of intra-mural welfare services on employees’ efficiency, ascertain the effect of extra-mural welfare services on employees’ commitment, and find out the effect of salary and bonuses on employees’ job satisfaction in First Bank and Union Bank Nigeria Plc. The study adopted survey research design, primary and secondary data were used. The population of the study consists of all the staff of First Bank and Union Bank Nigeria Plc in Abia State. Descriptive statistics were used to analysed the objectives, and Multiple Regression analysis were used to test the hypotheses posited. Major findings revealed that: Convenience facilities, water/canteen facilities, banks kits, and health services are the intra-mural welfare services that are significant and positively related to employees’ efficiency. Maternity benefits, education facilities, social insurance, and recreational facilities are the extra-mural welfare services that are significant and positively related to employees’ commitment. Basic pay, promotion allowance, thirteen months pay and contingency pay are salary and bonus packages that are significant and positively related to the employees’ job satisfaction in First Bank and Union Bank Nigeria Plc. The study concluded that welfare packages of First Bank and Union Bank Nigeria Plc have a positive effect on their employees’ performance within the periods covered by the study. The study recommended that: First Bank and Union Bank Nigeria Plc should maintain the intra-mural welfare services they are already using. However, they should always crave for opportunities to improve the efficiency of their intra-mural welfare services to be more acceptable to their employees. Arrangements for prevention of fatigue should be incorporated in their intra-mural welfare services. The banks should ensure that salary and bonus are regularly evaluated and augmented to meet with national minimum wage, and are designed to build in inflation rate in the economy and to champion employees’ local needs.
TABLE OF CONTENTS
Title Page i
Certification ii
Declaration iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables x
Abstract xi
CHAPTER 1: INTRODUCTION
1.1
Background
of the Study 1
1.2
Statement
of the Problem 3
1.3
Objectives
of the Study 4
1.4
Research
Questions 4
1.5
Research
Hypotheses 5
1.6
Significance
of the Study 5
1.7
Scope and Limitations
of the Study 7
1.8
Definition of Terms 9
CHAPTER 2: REVIEW OF
RELATED LITERATURE
2.1
Conceptual Review 11
2.1.1
Employee welfare 11
2.1.2
Employees performance 15
2.1.3
Why employer provide welfare benefits 19
2.1.4
Features of welfare measures 20
2.1.5
The relationship between employee welfare services
and performance 21
2.1.6
Impact of employee welfare/wellbeing on workplace productivity 22
2.1.7
Employees’ welfare and job satisfaction 25
2.1.8
How welfare benefits motivate employees 27
2.1.9
Impact of welfare benefits on employee retention 29
2.1.10 Compensation and employee
performance 30
2.1.11 Role of employee welfare services 33
2.1.12
Types of welfare services 34
2.1.13 Statutory welfare facilities 35
2.1.14 Non-statutory welfare facilities 39
2.1.15
Principle types of benefits 44
2.1.16 Welfare
services and benefits in other countries 50
2.1.17 Institutional capacity and protection of
employee’s welfare 51
2.1.18 Trade unions and protections of employee’s
welfare 53
2.1.19 Leave policy 55
2.1.20 Health services 57
2.1.21 Safety and health in the workplace and
service delivery. 58
2.1.22 Importance of labour welfare 59
2.2 Theoretical Review 61
2.2.1
The police
theory 61
2.2.2
The
religious theory 62
2.2.3
The
Philanthropic theory 63
2.2.4
Trusteeship
theory 64
2.2.5
The
placating theory 65
2.2.6
Public
relations theory 65
2.2.7
Functional theory 66
2.2.7.1
Application of functional theory to the study 66
2.3 Empirical Review 67
2.4 Summary of Literature Reviewed 70
2.5 GAP in Literature 71
CHAPTER 3: RESEARCH METHODOLOGY
3.1
Research Design
73
3.2
Population of the Study 73
3.3
Sources of Data Collection 73
3.3.1
Primary sources of data 74
3.3.2
Secondary sources of data 74
3.4 Sample and Sampling Procedure 74
3.4.1
Sample size determination 75
3.5 Validity of the Instruments 76
3.6 Reliability of the Instruments 76
3.7 Method of Data Analysis 77
3.8 Model Specification 78
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
4.1
Data Presentation 82
4.2
Effect of Intra-mural Welfare Services on Employees’ Efficiency in
First
Bank and
Union Bank Nigeria plc 83
4.3 Effect of Extra-mural Welfare Services on
Employees’ Commitment in First
Bank and Union Bank Nigeria plc 84
4.4 Effect of Salary and Bonus on Employees’ Job Satisfaction in First Bank
and
Union Bank Nigeria plc 86
4.5
Hypotheses Testing 88
4.6
Discussion of findings 94
CHAPTER
5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1
Summary of Findings 96
5.2
Conclusion 96
5.3
Recommendations 97
References
Appendices
LIST
OF TABLES
3.1 Showing
coefficient of correlation of the reliability of the research
instrument.
77
4.1, Showing
the total number of questionnaires distributed at both banks
and
the number that were returned completed. 82
4.2, Showing
employees’ responses on the effect of intra-mural
welfare services
on
employees’ efficiency in First Bank and Union Bank Nigeria Plc. 83
4.3, Showing
employees’ responses on the effect of extra-mural
welfare services
on employees’
commitment in First Bank and Union Bank Nigeria Plc. 84
4.4, Showing
employees’ responses on effect of salary and bonus on employees’
job
satisfaction in First Bank and Union Bank Nigeria Plc. 86
4.5.1, Showing Multiple Regression analysis result on
the effects of intra-mural
welfare services on
employees’ efficiency in First Bank and Union Bank
Nigeria
Plc. 88
4.5.2, Showing Multiple Regression analysis result on
the effects of extra-mural
welfare services on
employees’ commitment in First Bank and Union
Bank
Nigeria Plc. 90
4.5.3, Showing Multiple Regression analysis result on
the effects of salary and
bonus
on employees’ job satisfaction in First Bank and Union Bank
Nigeria
Plc. 92
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Effective welfare
packages are sine qua non to enhanced
employees’ performance. The greatest and most valuable asset of every organisation
is its human asset that make up the organisation’s work force, because other
resources of the organisation are directed and controlled by these qualified
and motivated workforces in order to create and deliver value out of the
organisation’s scarce resources, (Aremu and Adeyemi, 2011). Thus, employees
are essential to the means of production and as such they deserve to be treated
with respect and given proper welfare packages and incentives that will improve
their sense of worth, boost their self-esteem, financial status and act as a
sort of motivation to drive them to have more passion for their jobs, which
invariably will transform into enhance organisational productivity (Aremu and Adeyemi, 2011).
Hence, employees’ welfare is expected
to be pursued by employers who look beyond instant profit making as opposed to
enduring sustainable business earning of profits in perpetuity. Therefore, the human resource manager saddled with
the responsibility of employees’ management should secure the cooperation of the
employees in order to increase their production and to earn higher profits. The
cooperation of employees is only possible when they are fully satisfied with
their employer and the working conditions obtainable in the organisation. In
the past, industrialists and employers believed that their only duty towards
their employees was to pay them satisfactory wages and salaries. In the course
of time, with the introduction of human resource management, psychological researchers
convinced employers that employees required something more important. In addition
to providing monetary benefits, human treatment given to the employees plays a
very important role in seeking their cooperation which is essential to maintaining
performance, as employees’ performance is the key determinant in archiving organisational
goals. In view of this, organisations employ different measures such as
remuneration, compensation, incentives and welfare packages made available to
the employees in order to harness and utilise the best of their employees’
abilities, especially in the banking sector where welfare packages helps to
sustain the enthusiasm of employees (Abu, 2000).
Be
it as it may, First Bank Nigeria Plc and Union Bank Nigeria Plc which are among
the leading premium banks in the Nigeria banking sector have consistently
strive to implement best practices in employees’ welfare packages through their
humane human resources policies and organisational culture which imbibe people
integration, managing organisational change with people oriental policies,
promoting diversity and inclusion, with a strategy aimed at supporting employees’
motivation, conducive working conditions, employees’ compensation, training,
transfer, and promotions. Furthermore, their intra-mural welfare services (convenience facilities, banks
kits,
health services etc.), extra-mural welfare services (maternity benefits, education
facilities, social insurance) are harmony with
international best practices as obtainable in the banking sector. Thus, it
cannot be succinctly stated that First Bank Nigeria Plc and Union Bank Nigeria
Plc invest heavily on employees’ welfare packages in the quest to improve
employees’ performance. Therefore, ascertaining the effects welfare packages
are having on employees’ performance in these banks becomes essential. Against this
backdrop, the study; “Effects of welfare packages on employees’ performance in
First Bank and Union Bank Nigeria Plc in Abia State Nigeria were initiated.
1.2 STATEMENT OF THE PROBLEM
Every
business organisation wants to be successful and have the desire to progress on
regular bases. But currently the business world is highly competitive especially
in the service industry where organisations regardless of size, technology and
market focus, are facing employees’ retention challenges due to high job
insecurity inherent in the sector, also lack of inadequate welfare packages for
the employees limits the social and organisational conditions of the workers which
negatively impacts on their daily job performance. It also influence their team
spirit and limits the firm's ability to provide normative or moral framework
within which workplace changes might unfold, leaving team systems vulnerable to
anomic tendencies, to status distinctions among employees, and to other sources
of instability. Thus, the need to avert this obnoxious and unproductive
circumstances in First Bank and Union Bank Nigerian Plc cannot be overemphasised
as the situation can truncate the performance of these banks rendering them
unprofitable.
Furthermore,
welfare services provided by an orgnisation portrays the value they place on their
employees, and it attracts and retain quality personnel required for the
organisation to operate profitably and maintain competitive advantage within
the industry. However, as noted in the introduction, First Bank and Union Bank
Nigeria Plc invest heavily on both intra-mural welfare services (convenience facilities, banks
kits,
health services etc.) and extra-mural welfare services (maternity benefits, education
facilities, social insurance etc.). Thus, ascertaining its
effects on employees’ performance becomes essential, necessitating the need for
First Bank and Union Bank Nigeria Plc to regularly evaluate their welfare
services in order to affirm its desired effects on their employees’ efficiency,
job satisfaction, and employees’ commitment and to ensure that employees’
performance is always outstanding and are measuring up to the organisational
goals and objectives. To this end, the
study; “Effects of welfare packages on employees’ performance in First Bank and
Union Bank Nigeria Plc in Abia State” were initiated.
1.3 OBJECTIVES OF THE STUDY
The
broad objective of this study is to evaluate the effects
of welfare packages on employees’ performance in First Bank and Union Bank
Nigeria Plc in Abia State. The specific objectives are to:
i.
ascertain the effect of intra-mural welfare services (convenience facilities, banks kits, health services etc.) on employees’
efficiency in First Bank and Union Bank Nigeria Plc.
ii.
ascertain the effect of extra-mural welfare services (maternity benefits, education facilities, social insurance)
on employees’ commitment in First Bank and Union Bank Nigeria Plc.
iii.
find out the effect of salary and bonus (basic
pay, promotion allowance, thirteen months pay etc.) on employees’ job
satisfaction in First Bank and Union Bank Nigeria Plc.
1.4 RESEARCH QUESTIONS
The following research questions were answered
by this study:
i.
What are the effect of intra-mural welfare services (convenience facilities, banks kits, health services etc.) on
employees’ efficiency in First Bank and Union Bank Nigeria Plc?
ii.
What are the effect of extra-mural welfare services (maternity benefits, education facilities, social insurance)
on employees’ commitment in First Bank and Union Bank Nigeria Plc?
iii.
What are the effect of salary and bonus (basic
pay, promotion allowance, thirteen months pay etc.) on employees’ job
satisfaction in First Bank and Union Bank Nigeria Plc?
1.5 RESEARCH HYPOTHESES
The following hypotheses were tested in null
form:
HO1:
Intra-mural
welfare services (convenience facilities, banks
kits,
health services etc.) have no significant effect on
employees’ efficiency in First Bank and Union Bank Nigeria Plc.
HO2:
Extra-mural
welfare services (maternity benefits, education facilities,
social insurance etc.) have no significant
effect on employees’ commitment and in First Bank and Union Bank Nigeria Plc.
HO3:
Salary and bonus (basic pay, promotion allowance, thirteen months pay etc.) of
First Bank and Union Bank Nigeria Plc have no significant effect on employees’
job satisfaction.
1.6 SIGNIFICANCE OF THE STUDY
The
study findings will have dual significance (empirical and theoretical
significance). Empirically, the research findings will be of great significance
to the management of First Bank and Union Bank Nigeria Plc and the banking sector
at large. The study findings will help First Bank and Union Bank Nigeria Plc to
have a panoramic view of the effectiveness of their welfare packages in
motivating employees and how it can be enhanced to meet employees’ needs and
wants which is a prerequisite for outstanding performance. The study findings will
also provide the banks understudy with feedback from their employees about
their perception on the welfare packages available in the bank. The study
findings will further help these banks to improve their employees’ performance
and competence by ensuring that the welfare packages esteemed by their
employees as required in the banking sector are made available and are in good
condition. The study findings will also provide the banks understudy with
information about the satisfaction level of their employees based on the
welfare packages available at the banks. Areas that these banks need to work on
to enhance the efficiency of their welfare packages will also be illuminated by
the study.
Furthermore, employees of these banks under study will
also benefit maximally from the study findings. When the recommendations
emanating from the study are implemented, basic welfare services will be
provided which will enhance the banks’ working condition and provide a
conducive and refreshing atmosphere where employees will work un-exhaustively
to their satisfaction. It will also enhance employees’ wellbeing. The study
findings will enable other banks to evaluate the welfare packages available to
their employees and ensure that the basic ones required in the banking sector are
provided. The study findings will also be useful to other organiations in the
manufacturing sector as it will illuminate on the effects of welfare packages
on employees performance.
Theoretically, the study findings will bridge the
perceived gap on the effects of welfare packages (intra-mural welfare services: convenience
facilities, banks kits, health services etc., and extra-mural
welfare services: maternity benefits, education facilities, social insurance
etc.) on employees performance in the banking sector,
especially in the Nigeria context. The study findings will add to available
scholarly material on the subject matter that will vital source of information to academicians, potential researchers and students in their
research endeavours.
1.7 SCOPE AND LIMITATION OF THE STUDY
This study focused on the effects
of welfare packages on employees’ performance in First Bank and Union Bank
Nigeria Plc in Abia State. The researcher encountered some limitations in the process of
completing the study. Notable among the limitations encountered by the
researcher is poor cooperation of the respondents. Because of the busy schedule of the bankers,
many of them felt reluctant to participate in the study, even when they
accepted to participate, completing the questionnaire in due time was a
challenge. The researcher have to make
repeated calls to the bankers before the questionnaire were completed. The risk
and cost of transportation of visiting different branches of First
Bank, and Union Bank Nigeria Plc in Abia State was also devastating in the face of current
economic realities of Nigeria. Certifying the necessary corrections to ensure
that the study merits the approval of my supervisor and other scholars in the
Department of Industrial Relations and Personnel Management were also an
arduous task. However, despite this challenges the researcher were very
resilient to ensure that the study were completed in required time.
1.7.1
Unit scope
The
study involved all the employees of First Bank, and Union Bank Nigeria Plc
branches in Abia State, Nigeria.
1.7.2 Content scope
The
focused its interest mainly on how welfare packages (intra-mural welfare services:
convenience
facilities, banks kits, health services etc.,
and extra-mural
welfare services: maternity benefits, education facilities, social insurance
etc.) administered by First Bank, and Union
Bank Nigeria Plc., has affected the performance (efficiency, commitment, and
job satisfaction) of their employees.
1.7.3 Geographical scope
The
study were conducted in Abia State. Abia State is an abbreviation of four of
the state’s densely populated regions Aba, Bende, Isuikwuato and Afikpo. It is
one of the thirty-six (36) states that constitute the Federal Republic of
Nigeria. Abia people are of the Igbo ethnic group who predominates much of the
south-eastern part of Nigeria. Their traditional language is Igbo. English is
widely spoken and serves as the official language in governance and business.
Abia is 2.4mm people are mainly Christians. Abia state consists of seventeen
(17) Local Government Areas. They are: Aba north, Aba south, Arochukwu, Bende,
Ikwuano, IsialaNgwa North, IsialaNgwa South, Isuikwuato, Obingwa, Ohafia,
OsisiomaNgwa, ugwunagbo, Ukwa, East, Ukwa West, Umuahia North, Umuahia South,
Umunneochi.
Abia
State, which occupies about 5,834 square kilometers. The southern part of the
state lies within the riverine part of Nigeria. It is low-lying tropical rain
forest with some oil-palm brush. The southern portion gets heavy rainfall of
about 2,400 millimetres (941n) per year especially intense between the months
of April through October. The rest of the state is moderately high plain and
wooded savannah.
Crude
oil and gas production is also a prominent activity, as it contributes to 39%
of the GDP. The manufacturing sector only account for 2% of the GDP.
Agriculture, which employs 70% of the second economic sector of Abia with its
adequate seasonal rainfall, Abia has much arable land that produces yam, maize,
potatoes, rice, cashews, plantains, karo and cassava. It is in this environment
that First Bank, and Union Bank Nigeria Plc Branches in Abia State are operates.
1.8 DEFINITION
OF TERMS
The
followings are the operational definition of terms in this study:
Employees’
Commitment: Employees commitment deals the extent
to which employee’s identify with an organisation and is committed to its goals
and objectives. It can also be referred as the degree to which the employee
feels devoted to their organisation.
Employees’
Efficiency: Employees’ efficiency is a measurable
parameter that define and output produced through the efforts or achievement of
an employee. It can also be liken to time taken by an employee to complete a
job compared with the standard of time allowed for carrying out the job. It
explained the level of optimal standard employed by an employee in performing a
required job.
Employees’
Performance: Performance is defined as the record
of outcomes produced on a specified job function or activity during a specified
time period, and employee performance is the job related activities expected of
a worker and how well those activities were executed.
Extra-Mural Welfare Services: Extra-mural welfare services are
welfare services that are provided outside the organisation such as maternity
benefits, social insurance measures like gratuity pension, provident fund and
rehabilitation, physical fitness and efficiency, family planning and child
welfare, education facilities, housing facilities, recreational facilities
including sports, cultural activities, transport to and from the place of work
among others.
First Bank
Nigeria Plc and Union Bank Nigeria Plc: First Bank
Nigeria Plc and Union Bank Nigeria Plc are one of the oldest commercial banks
in Nigeria and they rank high among the Nigerian premium banks.
Intra-Mural Welfare Services: Intra-mural welfare services are
welfare services that are provided within the organisation such as latrines and
urinals, drinking water, washing and bathing facilities, creches, rest shelters
and canteen, arrangements for prevention of fatigue, health services including
occupational safety, uniform and protective clothing and shift allowances among
others.
Job Satisfaction:
Job satisfaction is the feeling of enjoyment and
pleasure emanating from ones job. It is a measure of workers contentedness with
their job, whether or not they like the job or the individual facets of the
jobs, such as the nature of the job, the remuneration and compensation aspect
of the job, and if they feel fulfilled and delighted doing the job and
identifying with the organisation.
Welfare Packages:
Welfare packages covers all the efforts which
employers make for the benefit or their employees over and above the minimum
standard of working conditions fixed by Factories Act and over and above the
provision of social legislation providing against accident, old age,
unemployment and sickness. It can also be seen as services, facilities and
amenities, which may be established in or in the vicinity of, undertakings to
enable persons employed therein to perform their work in healthy, congenial
surroundings and to provide them with amenities conducive to good health and
good morale.
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