THE IMPACT OF MONETARY MACENTIVE ONE ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF FIRST BANK PLC ENUGU)
ABSTRACT
In all organisation, productivity is beckoned on the design of its incetive variables to balance various managemnet levels. There are several incentive variable that coued motivate people to work to their optinal level and when these variables are not there, their productivity will greatly affected. This may come in the form of a will packed remuneration. Still others may not necessarily be necessarily be motivated with a well packaged incetive scheme. The group believe that ‘money is not every thing”. First Bank Nigeria Plc is not an exceptional.
In generating data needed to achieve the objectives of the study, descriptive survey research design was adopted. questionnaire was not as the major instrument for primary data collection. To broaden the researcher’ s depth of knowledge in the study area the research embarked upon review of related literatures with data drawn from secondary sources. Data generated in the study was present on frequency tables and analysed using simple percentage while the hypothesis were tested with 2 test.
It was realized at the end of the research work that most organization can not get the best out of their organization goals and objectives because of absent of monetary incentives, workers re not allowed to join in deciding affairs that concern them etc. arising from the findings, the study recommended monetary incentive apart from other types of incentives used by the organizations, effective administration of incentive schemes, and participatory management.
Finally, the study concluded that monetary incentives make the workers were satisfied with the treatment give to them, the organization will achieve its goals, targets and objective in a here short time.
CHAPTER ONE- INTRODUCTION
3.1 Research Design……………………………………………52
3.2 Area of the study…………………………………………..53
3.3 Population of the study……………………………………54
3.4 Sample and sampling process……………………………55
3.5 Entrustment of data collection…………………………57
3.6 Validation of the Instrument……………………………57
3.7 Reliability of the collection…………………………………58
3.8 Method of data analysis……………………………………58
3.9 Method of data analysis……………………………………
References……………………………………………………61
4.1 presentation and analysis of data………………………62
CHAPTER FIVE-DISCUSSIONS RECOMMENDATION AND CONCLUSIONS
5.1 Discussion of Results/findings………………………79
References…………………………………………………90
BIBLIOGRAPHY……………………………………………92
APPENDIX………………………………………………….94
CHAPTER ONE
INTRODUCTION
Sometimes, one wonders why some people perform more than others on the job or better still why people work hard. Man in his natural form is somehow lazy and always tries to gravitate towards his comfort unless some kind of force or situation arouses his desire to move out of this confronts zone in order to avert negative consequences or reap a positive reward as the becomes the motive for his working towards his set target (motivating factor)
Given the above illustration, management scholars have tried to define what motivation, is all……….
The Webster, Encyclopedic Dictionary of the English language (1995) said that motivation relates to the sense< need or year etc< that prompts an individual to act> also< wale adewunmi (992) defined motivation as “the inner stimulus that induces one to behave the way he does”. It has to do with inner state that energzes, activates or moves and therefore directs behaviour towards goals.
In all organization, productivity is beckoned on the design of its incentive variables to balance among various management levels. There are several incentive variables that couls motivate people to work to their optional level and when these variables are not there, their productivity will be greatly affected. This may come in the form of a well packaged remuneration. Still others may not necessarily be motivated with a well packaged incentive scheme. The group believe that “money is not every thing. “people work for broadly defined rewards”. These rewards can be broken down into two general classes know as intrinsic and extrinsic rewards.
Extrinsic rewards include figure pay proportion, compliments etc, and are often independence of the task performed and are controlled by other people. Intrinsic rewards on the other hand include the feeling of accomplishment of task and is administered by the individual doing the task. However, workers performance in an organization depends on these rewards among other incentives which may in one way or the other command for satisfaction.
Incentives are objectives or goals which are capable of satisfying what the employee views as need, drive or desire. It includes accredited payment for improved productivity as well as environment condition for example, infrastructures, transportation facilities, cantheen services etc, though they do not directly provide income to workers, but are necessary for their effective performance. In other words incentives do not only refer to wages payment but other thins like job enrichment, free flow of information, give relationship among junior and senior officers. Above all, the recognition accorded to their individuals by society to their contribution also goes a long way to induce and energize them to work harder to achieve not only the organization goals but also societal goals.
It is worthy of not that such incentives like monetary rewards which may motivate the younger people who are beginners or the lower class of people in the society may no necessarily be motivating factor for some middle class and upper class of people in the society. People in various positions, even though at a similar level, must be given incentives that reflect their individual performance and expectations.
A higher performance must be rewarded more that the lower performance for a feeling of equity to prevail. Given this, money is likely to be a motivator variables remuneration has been faroured as the means of giving incentives to produce or sell increased volume or to improve the quality of their performance.
In most business and other organization, money is actually used is actually used in keeping an organization adequately staff and not primarily as a motivator. Any bonus schemes for manual worker should be related to criteria which are meaningful to the employees and which are capable of being measured consistently. The incentives to achieve one particular objective for example, increase volume, should not act as an incentive to worsen other standards of achievement for example, increase volume, should not act as an incentive to worsen other standards of achievement like quality. It is therefore, important to know what induces a worker most as many people have different needs and aspiration people work for various reasons, depending on what they want or what they are looking forward to achieving. Here, it is the duty of the management of any organization to find out the needs of its employees and then chanced toward attaining them.
Incentives which may be seen as payment or reward for work or services rendered have been a common feature in Nigeria establishments to which first Bank of Niger Plc is not an exception. It is therefore, the objective of this that could motivate workers to greater achievement.
Management scholars and other employers of labour will also find this work hery useful as it would enable them to be vast of the value of incentives to performance of workers, if appropriately applied.
This will in effect bring greater efficiency of workers if adequately employed.
Furthermore, students and other people who wish to carry out a similar study in other establishments will find this work beneficial as the ideas exposed on this work will be a guide in the right direction.
First Bank of Nigeria Plc, for over a century, has distinguished itself as a leading banking institution and a major contributor to the economic advancement and development of Nigeria. This bank was founded in 1894 by a shipping magnate from liverpool, sir Alfred. Jones, the Bank Commercial as a small operation in the office of Elder Dempster and company in lagos. It was incorporated as a limited liability company on March 31, 1894 with Head office in linerpool. It started business under the corporate name of the Bank for British West Africa (BBWA) with a paid of 12,000 pounds sterling, after absorbing its predecessor, the Africa Bank corporation, which was establish earlier in 1892. This in the banking industry in west Africa. In the early years of operations, the Bank recorded an impressive growth and worked closely with the colonial Government in performing the tradinal functions of a central Bank, such as issue of speech in the West African sub-region.
To justify its West Africa coverage, a branch was opened in Accra, old loast (now Ghand) in 1896 and another in Freetown, sierra leone in 1898. These marketed the genesis of the Bank’s international banking operation. The bank’s international banking in Nigeria was in the second branch of the Bank in Nigeria was in the old calabar in 1900 and two years later, services were extended in Northern Nigeria.
With a network of 315 branches spread throughout the federation. Inducling one in city of London, the Bank maintains the largest branch network in the industry.
To satisfy the needs of its customers, first bank has diversified into a wide range of banking activities and services. These include corporate and Retail Banking, Registra-ship, Trusteeship insurance Brokerage.
Over the years, the Bank has experienced phenomenal growth with a share capital of N55.6 million in 1980, the Bank’s share capital gren to N650. 385 million as at 31 March, 2000, to Bank’s total asset base was N 127. 230 billion as at 31 march, 2000.
To reposition and to take advantage of opportunities in the changing environment, the and embarked on several restructuring initiatives 1957, it changed its name from Bank of Brriti West African. In 1969, the Bank was incorporate locally s the standard Bank of Nigeria limited in the line with companies Decree of 1965.
Changes in the name of the Bank also name of the Bank also occurred in 1979 and 1991, to first Bank of Nigeria Plc respectively. In 1985, the bank introduced a decentralized structure with the regional administrations. This was reconfigured in 1992 to enhance the Bank’s operational efficiency. In 1996, the Bank introduce the FBN century 11 project to revolutionalise its operating in listed in the dynamics of the environment FBN got listed in the Nigeria stock exchange (NSE) in March 1971 and has won the NSE president’s merit award nine times for the best financial report in the banking sector. During the yearit also won the first institute of Accountants fo Nigeria (CAN) award for excellence in the corporate category.
The Bank has continued to be a leader in financing long term investment in the economy which was demonstrated in 1947 when the first long term loan was advanced to the then colonial Government. To demonstrate its commitment to its customers and the development of the Nigeria economy, the Bank has since broadened its loan and credit portfolios to various sectors of the economy.
The Bank has improved tremendously judging from a number of parameters including number of branches, growth in deposit base asset size and of loans and advances furthermore, its track record of profitability and reliability in sound banking has continually placed the Bank in its leadership position.
In line with its mission, statement “remain true to our name by providing the best financial services possible”, the Bank will consistently transform itself as if go ahead in its second century of qualitative bank to the nation.
1.1 THE STATEMENT OF THE PROBLEM
It is fundamentally unrealistic to assure that people would continue to find. Satisfaction in co-operating in organization’s affairs, if no interest is shown in their individual needs and problems.
It is agreed that in spite of whiteness gains must have been achieved in ensuring adequate compensation among workers around the world existing (organization, programs have failed to attract, hold and motivate employees because the individual worker is not considered and he did not participate in the planning and designing of such incentives before its execution or implantation.
However, the economic and social development of Nigeria depends to a great exent on the ability of the public services to attract and retain the services of qualified man power. Therefore, the concept of total compersation programme has economic, social, behavioural and legal basis or consequences. To what extent is this recognized by the first bank of Nigeria PLC’s incentive scheme on the performance of workers the company?
The above problems bring to first the following sub-problems:
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