This study focuses on the effect of compensation in employees performance with particular reference to First Bank Plc Owerri. Given the alarming rate of decrease in productivity, the researcher tried to establish the correlation between productivity and motivation workers get at their work places. The researcher tried to emphasize on the relevance of motivating employees, as that would propel them to step up productivity. In achieving this, primary and secondary sources of data collection were employed, interview, administering questionnaires and consulting relevant literatures on the procedures of workers motivation. The statement were tested using the chi-square, which attested to the imperative of workers motivation and welfare packages on productivity. Forthwith, conclusions were drawn from the research findings where recommendations were made in order to forestall the employees welfare and motivation and its resultant effects on productivity.
1.1 BACKGROUND OF THE STUDY
The basic reason for this study is to evaluate the effect of compensation in employees performance, taking First Bank of Nigeria Plc Owerri Imo State as a case study. The study was carried out in Owerri metropolis with the customers of First Bank of Nigeria Plc, Owerri.
First Bank of Nigeria Plc was founded in 1894 by Sir Alfred Jone, on shipping magnate from Liverpool. The bank commenced as a small bank in the office of Elder Dempoter and Company in Lagos.
It was in corporate as a limited liability corporate name of Bank of British West Africa (BBWA) with an authorized share capital of 100,000 pounds. It thus became the First Bank to be established in Nigeria. The bank remarkable growth and by 1907, it has established a branch in Calabar. It extended its services to the North a few years later. Until 1958, the bank performed the role of a Central Bank of Nigeria as Africa Currency Board. In line with the colonization process often 1950’s the bank’s name was changed to bank of West Africa (BWA) in 1957. A merger with the Standard Bank of West Africa Limited in 1966, in compliance with the Companies Decree of 1968, the bank was incorporated as Standard Bank of Nigeria Limited in 1969. The Federal Government of Nigeria purchased 36.1% of the bank’s equity while Nigeria investors took up 12.9% in line with the indigenization process that commenced in 1972.
The banks name was again changed in 1979 to First Bank of Nigeria Limited and it’s share were listed on the floor of the Nigeria Stock Exchanged in the further year. In compliance with the requirements of Section 31 of the Companies and Allied Matters Decree 1990, the name of the Bank was further changed to First Bank of Nigeria Plc.,
There is a strong relationship between the production of workers and the compensation they get. In First Bank of Nigeria Plc Owerri Imo State given the alarming rate of decrease in productivity, the researcher tried to establish the correction between productivity and motivation workers get at their work places. Workers were complaining that many of them have worked for many years yet they do not get the motivation or compensation required for work well done. This, morale was low thereby resulting to low production and services to the customers no matter the high level of profit the bank is making, still their workers are not well compensated compared with the stress and restlessness involved in banking sector work.
There are various compensation schemes that do not exercise in most Nigerian firms but with a particular reference to First Bank Plc Owerri, these compensation scheme include the following:
i. Basic Wage/Salary: This is the stated minimum pay to a worker at the end of every day, week, month, or as the case may be for all his efforts and sacrifice made to his organization. But workers in First Bank Plc Owerri complained that despite that they are getting their basic salaries regularly but some incentives that are supposed to be paid to them are not regularly given to them. Thereby making them to feel unmotivated towards their job in the bank.
2. Fringe Benefits: This is another motivational package that is given to a worker in form of financial or non financially payments in addition to his or her basic salary. Fringe benefits boots the morale of employees, makes them feel belonging and spurs them into adding more efforts to their work. This fringe benefit comes as a result of a good rapport existing between the employers and employee. Examples of fringe benefits are: housing allowance, transport allowance, free medical care, meal, subsidy, refurbishing loans, leave allowance, pension and retirement benefits, journal allowance etc. These benefits are what an average workers supposed to get but First Bank of Nigeria Plc Owerri workers complained bitterly that despite the years they have worked with the bank that some of these benefits are not given to them, and is as a result of low motivation or compensational schemes. And this will lead to decrease in productivity of the workers.
1.2 STATEMENT OF THE PROBLEM
The problems which lack of compensation have caused in the production circle of First Bank plc Owerri cannot be over-emphasized. It is clear that when a workers is satisfied he/she puts more effort.
1. There is little or no supervisory work that goes on in the production circle, workers therefore have as they like because according to them “there is no adequate reward for stressful /hard work since there is poor supervisory style in the production or service circle, production or service is now very slow thereby reducing the level of output.
2. There is lack of good plan and effectiveness because employees are no longer satisfied with their work in the sense that they are not sure of the regularity of their incentives and other benefits they suppose to get.
3. Many of their customers have left the bank because of they are no longer satisfied with level of service they receive.
4. Some of these competent workers or staff have even left to other organization where they will be highly motivated. This has reduced the level of efficiency and the standard of the banks services to the customers. These are the problems created by lack of compensation in production on service circle of First Bank Plc Owerri which this study will find solution to.
1.3 THE OBJECTIVE OF THE STUDY
The study will generally contributes to the solution of solving problems caused by lack compensation in First Bank Plc Owerri, in order to increase productivity. The objectives included the following:
a. To ascertain whether the supervisory styles of First Banks Plc Owerri has any effect on compensation workers get.
b. To find out whether highly motivated workers achieve success in the absence of good plans.
c. To find out whether applying good rewards or compensation scheme to workers can boost productivity or increase in production or service in order to maintain customers.
d. To find out whether good incentives to competent workers or staff can increase their morale and make them put more effort.
1.4 RESEARCH QUESTIONS
1. Does the supervisory style of First Bank Plc Owerri have any effect on compensation worker get?
2. Does motivated workers achieve success in the absence of good plan.
3. Does applying good compensation scheme have any effect on productivity and customers satisfaction?
4. Does good incentives measures have any effect on the morale of competent workers.
1.5 SIGNIFICANCE OF THE STUDY
The study is to investigate work compensation and the employee performance in the public sector with particular reference to First Bank Plc Owerri.
It is therefore expected that it will help First Bank Plc in a large measure in providing possible solution to its problems of compensation and productivity.
Academically, this study constitutes or contributes in the field of increasing compensation and the employee performance in the public sector with the emphasis on First Bank Plc Owerri. It will help future researchers who will like to do research in the effect of compensation in employees performance for further consultation of performance and rewards. This also gives the researcher the opportunity to know more about First Bank Plc Owerri Imo State.
1.6 SCOPE OF STUDY AND LIMITATIONS
It will be difficult to carry out a research covering the whole firm hence the work is limited to compensation and its impact in employees performance of First Bank of Nigeria Plc Owerri, Imo State.
Furthermore, the study focuses only on the effect of compensation in employees performance. It is designed to cover the public sector. The research is of the belief that this dispersal will capture the real essence of this work. The study is realized that the workers of First Bank Plc Owerri is a minimal fraction in relation to the number of workers and people employed in other banks in Nigeria but due to time and financial constraint, the study is specifically centered on First Bank of Nigeria Plc Owerri, Imo State.
1.7 LIMITATIONS OF THE STUDY
These factors limiting the scope of this study include inadequate finance to assist in gathering of facts or research materials and the duration of time set for this work.
Another constraints is time factor since data may be collected through personal interview, the respondents might not devote all the time needed to the work. Also part of the time was allocated to class work (lectures) and other extra curricular activities.
The respondent also might not fully cooperate you with the researcher as they may not be willing to disclose all relevant information.
1.8 DEFINITION OF TERMS
Compensation: A reward given to a worker or an employee to high the morale and also to higher productivity in the organization.
Productivity: A measure of low efficient given sit of resources is used to produce goods and services, simply put in the ration of output and input.
Employee: A person employed for wages in the organization.
Incentives: Those instrument or material and possible statement to motivate employees or workers in an organization.
Employer: A person firm or other entity which pays for or hires the services of another person.
Bonus: An extra sum given as a premium to an employee or reward for successful performance.
Base pay: This is the fixed salary or wage, which forms the rate for the job. It may also govern pension entitlement and life insurance when they are related to pay.
Commission: This is a special type of incentives in which payment to salesmen are made on the basis of percentage made on the sale value they achieved.
Total earnings: These are the sum of the base pay and additional payment. They constitute the amount of money paid into someone’s bank account or placed in one’s pay packets.
Reward: A price or something of value given in return for the achievement of a particular task or target.
Wages: The amount or payment made to a hired employee for a particular or specified quality of work.
Equity: The net monetary value of a business/firm.
Motivation: Is an incentive for doing something given to employee by the employee or means of encouragement to employee.
Organization: As a co-operative social system involving the coordinated efforts of two or more people pursuing a shared purpose.
Customer: Any person who maintain an account with a bank and also transacts business of any kind with it is known as customer.
Efficient: Producing result within the shortest possible time.
Structure: This refers to the way in which something is organized or put together in hierarchy.
Continent: Unpredictable event which may or may not occur or unexpected expenses which occur by chance.
Respondent: A person involved in a research involving questionnaires.
Salary: A fixed amount of money paid to a worker either monthly or yearly order than wages which is made hourly. This implies a degree of professionalism or autonomy.