ABSTRACT
The
role in which adequate and equitable motivational policies in the life of sales
force in an organization cannot be overemphasized. It leads to increased in
sales productivity which will result to growth and progress of the organization in question. This study is
an attempt to investigate on motivational compensation policies and practice in
the First bank of Nigeria Plc. Nnewi Brach. This topic was extensively
overwhelmed with a view to understanding the subject matter. Data was collected
from the members of staffs of First Bank of Nigeria Plc Nnewi Branch using
questionnaire. The collected data was duly presented and analyzed using
Chi-square method analysis and result showed that compensation policies and
practices thereby are very important in managing an organization. If
compensation policies is equitable, it will lead to efficiency among employees
as work force and hence increased productivity. On the other hand, if a
compensation policy is not equitable i.e may be a major source of conflict in
the organization. On the basis of the above result, recommendations were made
on how to improve the compensation/motivational policies and practices of the
organization under study.
TABLE
OF CONTENTS
Title Page - - - - - - - - -i
Approval Page - - - - - - - -ii
Dedication - - - - - - - - -iii
Acknowledgement - - - - - - - -iv
Table of Content - - - - - - - -v
Abstract - - - - - - - - - -viii
CHAPTER
ONE
INTRODUCTION
1.1 Background
of the Study - - - - -1
1.2 Statement
of the problem - - - - -3
1.3 purpose
of the study - - - - - -8
1.4 Significance
of the study - - - - -8
1.5 Research
Questions - - - - - -9
1.6 statement
of Hypothesis - - - - - -10
1.8
Scope of the study - - - - - - -11
1.9 Definitions of the terms - - - - - -11
CHAPTER
TWO
Literature Review
2.1 Compensation and motivation policies - - -18
2.2 Reasons for motivating sales force - - - -19
2.3 Methods of remunerating and
rewarding sales force-20
2.4 training of sales force - - - - - -27
CHAPTER
THREE
RESEARCH
DESIGN AND METHODOLOGY
3.1 Design of the study - - - - - - -36
3.2 Area of the study - - - - - - -36
3.3 Population of the study - - - - - -36
3.4
Sample of the study - - - - - - -36
3.5 Instrument for data collection - - - - -37
3.8 Method of data analysis - - - - - -39
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1 Data presentation - - - - - - -41
4.2 Analysis of research questions - - - - -42
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of the Findings - - - - -56
5.2 Conclusions
- - - - - - - -58
5.3 Recommendations
- - - - - - -59
5.4 Limitation of the study - - - - - -60
References - - - - - - - - -61
Appendix A - - - - - - - - -63
Appendix B- - - - - - - - - -64
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUD OF THE STUDY
Fisher, et al (1996) noted that the
system that an organization uses to reward employees can play an important role
in the organization efforts to gain a competitive advantage and achieve its
major objective. It is a known fact that an organization is what it pays, for
the ways an organization pays its employees contains a philosophy about how
they are motivated.
Hence the need for every employer of
labour to have a well worked out compensation system that is able to attract
and keep competent and well motivated employees.
An employee offers his service to an
organization because he has wants and needs which the organization can satisfy
and by so doing he helps the organization to achieve its own goal.
For the service he renders, he is
rewarded if the reward is in congnience write the services he renders, he tries
to give out his best at the same time retain his job. For this to happen, the
employer requires proper and efficient management of their compensation system.
Employee compensations is very important
in attaining the objectives of business organizations. The banking sectors are
expected to formulate compensations policies which will satisfy the economic
needs of their employees so that they can contribute to the attainment of the
objective of the organization.
For employees to contribute positively
to the fulfillment of the objectives of the banking industry, the bank(s)
should formulate compensation policies which will satisfy the economic needs of
the employees.
There are basically three types of
compensation policies in organizations. They are basic, variable and
supplementary otherwise referred to as fringe benefits. They all have different
functions in the business organizations.
In the Nigerian banking sector,
employees pay package is quite encouraging as compared with other sectors of
the economy. It is enough to meet his/her expected expenditure even if they
rate boxers. The issue of strikes here and there (every time) is not in the
book of the Nigerian banks.
However, it has been noted that the
employees level of contentment in
his./her job greatly affect his/her productivity.
1.2 STATEMENT OF PROBLEM
The problem of this research bother on
the investigation of the compensation
policies and practices in the Nigerian banks industry. On the basis of the
knowledge gained from this study, some recommendations can be made on how to
improve organizations stability and practices. If the workers feel that the
compensation policies of the organization are not satisfactory, they usually
confront management. This may be major source of instability which may affect
the employee productivity and consequently affect the sustainability of the
organization.
First Bank engaged in the business of
commercial Banking. The mission statement of First Bank is to remain true to
their name by providing the best financial services possible.
Incorporate in 1894 and head quartered
in marina, the heart of Lagos. First international; branch was opened in Accra
in 1896. Opened second branch in Freetown, Sierra leone in 1898. In 1912
Calabar branch was opened by King Jaja of Opobo the second branch opened in today’s Nigeria and Zaria branch was also
opened in the same year as the First
Bank branch in what is today’s Northern Nigerian. The bank was shown business
leadership since, its inception, having acquired Anglo-African Bank in 1912,
its competitor in the very first M&A
recorded in this region. 1914 saw the amalgamation of Northern and Southern
protectorates- First Bank had branches in what would today be Kano, Zaria,
Calabar, Lagos, and Ibadan. In 1947 advances the first long term loan to the colonial government. A
demonstration of our long term commitment to national development. Changes name from BBWA Bank of British West Africa to bank
of West Africa (BWA) to truly reflect the regional identity of the bank. 1960
at Nigerian’s independence advances the first ever loans to the citizens of the
independent Nigeria. Birth of true retail banking. 1963 operates 114 branches
across West Africa when Nigeria became a republic. In 1955, it adopts the name
Standard Bank of West Africa, following its merger with Standard Bank Uk. In 1969, incorporates locally as Standard
Bank of Nigeria Limited, in line with the companies decree of 1968. In 1979,
changes name to First Bank of Nigeria Limited. 1982, London Branch established
to foster international banking relationship for Nigerian and foreign business
alike. In 1991, changes names to First Bank of Nigeria Plc, following the Bank
and other financial institution decree (BOFID). (1991), first ATM introduced in
35 marina as part of ease of convenience, round the chock Banking. In 1994, the
bank is a hundred years old, a feat for any branch even today. Birth of the
popular and legendary “First Bank O una well done O, una do well O” (centenary
cooperate campaign) URL to jingle and celebrated newspaper article on the
centenary. In 1996 commences business transformation project code named
“Century 11”, to strategically position for its next century to operations.
1999 a former M.D of First Bank was appointed CBN governor. 2001, revalidates
business transformation project code named “Century 11”: the ne frontier to
revolutionize the banks operations in line with the banks brand, leverage and
strengthen the banks branch, leverage and heighten the customers experience and
project Fist bank and sophisticated ad dynamic.
In 2002, establishes FBN Bank (UK),
regulated by the FSA, the first Nigerian Bank to own a wholly fledged bank in
the Uk. Established first international subsidiary of a Nigerian owned bank in
the UK in 2002. 2004, the Nigerian stock exchange annual presidents merit award
for the 2003 financial year. In 2005, acquires two banks- MBC international
Bank ltd and FBN Merchant Bankers) ltd and increase capitalization to #25 billion. 2007,
introduces the innovative finance credit administration software, being the
First Bank in Africa the Pioneer the service and also establishes a global
custody business, emerging as the First Nigerian owned Bank to offer such
services. In 2008. The first Nigerian Bank and indeed the Firs quoted company
in the country to hit the #2 trillion market capitalization. In 2010, First
Bank becomes the first organization in Nigeria to be granted notable
international standardization certification: the prestigious information
security management systems (ISMS) which are the world’s highest accreditation
formation protection and security. In 2011, establishes First Bank
representative office in Abu Dubai, UAE, launches First Biometric ATM in Nigeria
etc. announced the successful completion of the acquisition of ICB assets in
Guinea, Gambia, Sierra Leone and Ghana in November 2013 as part of an ongoing
Pan African expansion programme.
1.3 PURPOSE OF THE STUDY
The major purpose of this study is to
identify, evaluate and analyze the compensation policies and practices in the
Nigerian Banking industry, to see how effective they are in promoting these
under listed purposes:
1. To
attract capable employees to the organization during recruitment exercise.
2. To
motivate the employees sales force towards superior performance.
3. To
retain their services over extended period of time.
4. To
ensure employee satisfaction.
1.4 SIGNIFICANCE OF THE STUDY
The role which compensation plays in the
productivity of the employee cannot be underplayed. The banking industry should
try as much as possible to attain higher organizational productivity by helping
their employees to accomplish their own personal objectives. This can be met by
setting a workable compensation policies and practices for the benefits of
their employee. Compensations and incentives bring happiness to employees
opportunity to make use of their skill, accumulate wealth, security and help
them develop feeling of equality with their mates.
In the view of contemporary utilitarian
philosophies, sustainable (job) wealth, security and equality and factor s that
can contribute towards happiness. So here in Nigeria, there is need to design
adequate incentives strategies in the banking industry. The finding of this work
will be very relevant to the Nigerian Banking Industry policy makers, mangers
who need effective planning strategy, personnel managers etc.
1.6 RESEARCH QUESTIONS
The relevant research questions to be
answered by research hypothesis of the study include the following:
1. The
sales force salary commensurate with their input on the job?
2. Has
sales force compensation ever guaranteed conflict with management?
3. Have
all employees’ access to fringe benefits?
4. Is
compensation received whenever staff put in extra hours?
5. Have
staff ever compare their compensation with what their contemporary earning
other banks?
1.7 STATEMENT OF
HYPOTHESIS
Ho:
compensations of sales force in First Bank Nigeria Plc, does not lead to
dissonance with management.
Hi:
Compensation of sales force in First Bank Plc. Leads to dissonance with
management.
1.8 SCOPE OF THE STUDY
Motivational policies and practices is a
very broad topic. No consensus has been reached about the concept but it is
believed that every human activity involves motivational policies and
practices. The scope of this research project will therefore be limited to
evaluating the effectiveness of motivational policies and practices on sales
force in Nigeria banking Industry (First Bank) Plc. It also focus on factors
that aid effective motivational policies and practices in the banking industry.
The study will also be extended to find out whether motivational policies and
practices process has any effect on sales force of the banking industry.
1.9 DEFINITIONS OF SOME
BASIC TERMS
Banking deal with the principles,
institutions, instruments, and procedures involved in making payments of all
types in our economy. It is also concerned with making available for
investment, business and government money that has been saved.
TYPES OF PAYMENTS
I.
Payments for goods and service which are
bought for cash and those that are bought on credit and paid for later .
II.
Payments when intangible claims to
wealth, such as stocks and bonds (financial instrument) are purchased.
Industry
Industries otherwise called business
organizations generally are associations of human beings working co-operatively
towards common objectives under authority and leadership.
According to Scott (1968), a financial
organization is a system of coordinated activities of a group of people working
co-operatively towards a common goal, under authority and leadership.
Compensation
Compensations on its own may be defined as
remuneration or reward for human services utilized in the process of
production. In its broad sense, the money, goods and/or services the employer
provides to the employees constitute the employees compensations system.
Tosi and Carrel (1982) also see reward or
compensations as payments to persons such as wages salaries, pay increase,
promotion increase recognition, status and other social rewards. They want
further to explain that rewards also include permission to use certain
organizations resources generally limited to a selected group such as access to
organizations vehicle the guests houses etc. which means that compensations
include both intrinsic and extrinsic rewards.
Organizations operate or formulate three
types of compensations policies. These are basic, variable, and supplementary
or fringe benefits compensations policies.
Basic Compensation
Thai is the basic salary that is paid to a
worker. This is the salary advertised by an organization during the period of
recruitment. It aims at attracting workers to the organization. The major
requirement of basic salaries of workers is that they must be equitable.
Variable Compensation
Variable compensation is motivational and it
aims at directing a worker towards superior performance. It is used when extra
performance are expected from employees example is overtime which starts at the
end of the day’s work also when workers
are called back during the public holidays eg. Christmas, Easter etc. extra
compensation is necessary
Supplementary (Fringe
Benefits)
Supplementary compensation or fringe
benefits are extra payments made to workers fringe benefits can be in form of
money or material eg. Medical services,
Caterair services, Christmas bonus etc. the major functions of supplementary
compensation is that it helps to retain employees on the job and they won’t
consider looking for other jobs as alternatives when they are frustrated with
the situation or the other.
Some principles of fringe benefits are:
1. It
must be in the area where there are collective interest or general problem.
2. It
must not be expensive to staffs
3. It
must not be for a section of the staff.
The Concept of Employer
An employer is one who purchases labour or
its service at some price for the achievement of objectives and goals. An
employer can be a business organization of different types; other institutions
etc. there are two broad other institutions etc. there are two broad public
categories of employers, the private and the public employer. The public
employers include the government, business organizations of the government
often called public organization in which the government shares operations with
private capital.
The Concept of Employee
of Worker
An employee or worker is defined in the
Labour Decree of 1973 as a person who has entered into or is working under a
contract service to apprenticeship with an employer whether by a way of manual
labour, clerical work or otherwise and whether the contract is expressed or
implied made orally or in writing and whether it is a contract of service or a
contract personally to executed any work of labour.
Equity
Equity is concerned with felt justice
according to natural law or right. According to onwuchekwa (1995) equity means
justice and fairness.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment