THE EFFECT OF MOTIVATIONAL POLICIES AND PRACTICE ON SALES FORCE IN NIGERIA BANKING INDUSTRY

TITLE

THE EFFECT OF MOTIVATIONAL POLICIES AND PRACTICE ON SALES FORCE IN NIGERIA BANKING INDUSTRY (A CASE STUDY OF FIRST BANK NIGERIA PLC NNEWI)

 

TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgement

Table of Content

Abstract

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

1.2   Statement of the Study

1.3   Objectives of the Study

1.4   Relevant research questions

1.5   Statement of hypothesis

1.6   Scope and limitations of the study

1.8   Definition of terms

CHAPTER TWO

Literature Review

2.1 Compensation and motivation policies

2.2 Reasons for motivating sales force

2.3 Methods of remunerating and rewarding sales force

2.4 training of sales force

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1   Empirical investigation

3.2   Sample size determination

3.3   Source of data

3.3.1 Primary source of Data

3.3.2  Secondary source of data

3.4   Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data presentation

4.2 Analysis of research questions

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1   Summary of the Findings

5.2   Conclusions

5.3   Recommendations

BIBLIOGRAPHY

APPNDIXES

 

 

 

 

 

 

 

 

 

 

 

 

 

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 compensation policies 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.

 

 

CHAPTER ONE (BODY OF THE WORK)

INTRODUCTION

BACKGROUD OF THE STUDY

Fisher, et al (1996) noted that the system that an organization uses to reward employees can play a 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  way an organization pays its employes 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 doinf 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 render,he tries to give out his best at the same time retains 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 sector 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. The 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.

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 maina, the heart of Lagos. First international; branch was opened in Accra in 1896. Opened second branch in Freetown, Sierra eone in 1898. In 1912 Calabar branch was opened by King Jaja of Opobo the second 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 Ango-African Bank in 1912, its competition in thevery 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 of West Africa (BWA) to only 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 retat 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 169, 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 36 marina as part of ease of convenience, round the clock 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. 199 a former Md 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 Bankv (UK), regulated by the FSA, the first Nigerian Bank to own a wholly fledged bank in the Uk. Established forst internation 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 is the world’s highest accreditation foria formation protection and security. In 2011, establishes First Bank representatives 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.

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 underlisted 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.

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 brings happiness to employees opportunity to make use of their skill, accumulate wealth, security and hep 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.

RESEARCH QUESTIONS

The relevant research questions to be answered by research hypothesis of the study include the following:

  1. Is 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?

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.

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

  1. Payments for goods and service which are bought for cash and those that are bought on credit and paid for later .
  2. Payments when intangible claims to wealth, such as stocks and bonds (financial instrument) are purchased.

INDUSTRY

Industry otherwise called business organizations generally are associations of uman 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 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 syste.

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.

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 ids defined in the Labour Decree of 1973 as a person who has enterned into or is working under a contract service to apprenticesip 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 writng 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 nwuchekwa (1995) equity means justice and fairness.

CHAPTER TWO

COPENSATION AND MOTIVCATIONAL POLICIES

  1. Hall (1974) states that no matter how carefully management may forecast, formulate policies and plan elaborate organization structures, the success of its plkannng is ultimately in the hands of the employees at all levels. Management must therefore not only plan; it must also lead and inspire those it relies to implement policy and make the organization work.

According to Obiesie (2014), motivation is the driving force that activates behaviour and provides purpose to it. May be nature appreciates and direction, be it in cash or in kind. Therefore, in anticipation of these cash or kind. Therefore, in sales people are encouraged to give in their best so as to help the organizations achieve its cooperate objectives. The organizations sales force will do this when their morale is high. Therefore any organization that wants to keep its good and goal-getting salesforce should try to boost their morale in order to retain them and at the same time attract other good ones by means of a great motivational programme.

REASONS FOR MOTIVATING SALES FORCE

Okafor (1996) states that despite that managers do motivate their entire staff adequately if they want a desired  result to be obtained, it is a known fact that, the percentage of incentives dier3cted at the sales force is much more longer than those goven to the other category of staff. Some reasons have been addressed as being responsible for this management behaviour. Why do managers tend to motivate sales force than the other employee? This is as a result of the following reasons:

  1. Sales job is a lonely one; and on most occasions, the sales rep feels rejected for the fact that he cannot net in a sale on most sales calls.
  2. For most of the periods, the sales force is always away from home on official duties in this than means he is not present always to take care family problems.
  3. The tendency of apportioning a sales force to a particular sales territory and almost same customers makes their sales calls to be less interesting. This tends to lower the sales force morale. It then means that in order to maintain the sales force morale in his/ her work that we need to adequately motivate and stimulate such an individual.

METHODS OF REMUNERATING AND REWARDING SALES FORCE

According to Okafor (1996) in order to be able to attract quality sales force, motivate and keep them, the organization is required to make use the right mix of compensations tools at any point in time. Studies have shown  that the right spark of remuneration and reward systems do determine to a greatent how motivated a company’s sales force is going to be. There is no one particular sales force remuneration and/or reward that can be used singularly to motivate sales force to be top flight sales representatives. Gone are the days  when managers rely solely or remuneration system centered on payment by result (PBR) i.e straight commission which tends to the rewards to only the units or value product/service sold by the sales force during a given period of time. Payment by PBR (i.e Commission) has become unpopular and has given way to a variety of remuneration and reward system in order to be able to take care of the different needs of the sales force. Because what motivate sales person “A” may not be what will motivate sales person “B” at a given point in time. Furthermore, the motivating tool that stimulate a company’s sales force to be able to accomplish a particular set goal/task may not be able to appropriate for a new entirely different task that management have necessary that the sales manager utilize variety of incentives in order to be able to adequately “Lead” and motivate his sales force all the time.

These are various remuneration and reward system trying to motivate being used by most firms I trying to motivate their sales force to be top flight sales force. They are as follows:

  1. Salary Based remuneration
  2. Straight commission
  3. Salary plus commission or combination plan.

Financial and non financial incentives by (Morder A.R. 1987, pp. %cb-517) includes the following:

  1. Achievement awards
  2. Status symbols
  3. Promotion
  4. Published league tables
  5. Contest ad competitions.

Salary Based Remuneration

The present tendency among firms is to reward their sales force on straight salary and to allow their sales force a reasonable expense allowance with a company car to the services of the dales force. This is mostly done ine situations where emphasis is mostly paid to the provision technical or professional service that need be resulted from  sales provision of service cannot be tied to a particular sales force. The organization may often to a particular sales force. The organization may often decide to pay only straight salary (commission exclusive) to their sales force. The popular rule however seems to favour “making about 70 percent of sales force’s total income fixed and allocating the remaining 30 percent among the other compensation elements. The fixed amount, which can either be straight salary, or a drawing account tend to stabilize the income of the sales force than the other variable income. The straight salary allow the sales representative to receive a stipulated salary for having provided his/her employer a needed service. Straight salaries (depending on the nation concerned) are normally paid on bin weekly or monthly basis.

  1. Straight Commission

This allows the sales force to receive compensation based on a particular rate or declining rate depending on his/her  productivity (i.e amount of sales obtained) during a particular time within his or her territory straight commission type f compensating the sales force, the sales representative may or may not receive reimbursement for expenses incurred while trying to sell.

In trying to utilize straight commission plan, companies are advised to consider the acceptability of their product in the market place, the stage of the product in its cycle, and the rate of competition in the market.

  1. Salary plus commission or combination plans

Most organization in order to eliminate the inherent demerits and to take advantage of the merits known with the use of either straight  salary commission have been forced to opt for the combination plan in order to have a better motivated sales force. The adequate administration of the combination plans (i.e salary plus commission) will allow management to motivate those that sell more than normal; and to also e able to determine the amount of non selling activities which management wants sales force to undertake. The salary plus-commission also do allow selling expenses to be brought into line drastic fall in sales volume.

4 achievement Awards

Achievement Awards Usually Receive wide publicity within the awarding the firms. It may take the form of prizes or paid holidays trip (with family to any country or location of the sales force choice.

5 Status Symbols

The organization may provide those top flight sales force with much more bigger and expensive company cars allowing them a bigger expense accounts, or the provision of distinctive change card facilities. So that, they can serve a good reference point for those other sales representatives who are yet to make it in the field of selling.

6 Published League Tables

This tends to show “who is who” among the sales force. It goes to compare the performance of the sales representative during a given period of time. The only negative effect of this incentive as that, instead of going to propel those at the lower end of the list, it may go to lower their morale if the sales department tend not to accord these particular sales people their desired respect and friendly atmosphere.

7 Promotion

Occasionally, the provision of only, monetary incentive to motivate sales force all the time may turn to a dis-incentive. People may appear to get a part at the back if given promotion to more responsible position than being stagnated at one position un-necessary too long. Despite the attractive monetary incentives, sales forces do aspire to be promoted to a senior sales post and finally to sales management positions.

8 Contest and Competitions

These are used to create competitive spirit among the sales people. This type of motivational tool is mostly used during planned sales promotional campaign for slow moving products for a short duration of time. In order to win the specified prize(s), sales representatives re-double their efforts inorder to be the best seller of the promoted items. Apart from the contest and competitive being set on selling more of the product, the prizes (s) for the contest may be set aside for the sales person who receive the highest level of praise for having provided efficient service to buyers in their respective sales territories.

Training of sales force

Allen (1973) states, in the training of sales personnel it is necessary to lay emphasis upon the reason why a job should be learned, and so far so possible to see the job from the recruit point of view. It is fair to say that no one learns anything unless he sees good cause to do so.

Methods of training the sales force

There are two broad methods of training sales force (Okafor, 1996) namely:

  1. Those involving group participation and
  2. Those that only involves individual training

Group instructional methods

The group instrument methods are basically about four in member. They include;

  1. Lecture
  2. Group discussion
  3. Role playing
  4. Simulation or game.
  5. Lecture:

The lecture type of sales force training tends to be mainly for the  purpose of the dissemination of basic information via oral presentation by an experience sales personnel or manager to the trainees. Apart from oral presentation, audio, visual aids can also be used to compliant oral presentation. The lecture form of training the sales force only allows the trainees to watch and listen without contributing much during the training. Trainees can however ask questions when and where necessary.

  1. The group discussion method

This enables the trainees to play active role- instead of the passive role they are known to play in the lecture method. In the group discussional method, the learning atmosphere tends to be more released with the trainer playing less dominant role. Group discussion method (unlike lecture method) is normally not prepared advanced minor or conference or the use of case study.

Despite that the trainer do play a passive role, he is expected to understand the topics under discussion and also to be able to be a good leader in order to command the respect of the trainees.

  1. With the role playing method

The leader or trainer introduces the topic under consideration with a detailed analysis of the different personalities and environment or situation involved. After the provision of adequate information, he then appoints trainees to play the various  role of prospect, sales representative, and commentators.

  1. The role playing method

This allows the performance of the different role players to be scared/assessed by the trainees and the leader or trainer. Despite that role playing allows trainees to practice what they learnt in other formal training, its major weakness are mainly that those assigned specific roles might not have played the roles very well, and the emotional tendencies usually exhibited with the role players while trying to act the role they were assigned.

  1. Simulation or game method

Simulation or game method of training for both newly recruited and old sales representatives have something in common with the playing; however what differentiates it from role playing is that  it is based on rela life situations. In stimulation or game method, trainees are made to assure the position makers are after the other.

Experiences on previous research

Onuchekwa (1993), considers organizational participants as the most strategic element of an organization. One can only contribute when one is satisfied with his/her membership in the organization. So he/she must be motivated or introduced to make contributions in the organization. Therefore, the subject of incentive in organization is fundamental.

Operationalizing incentive strategy could be facilitated by giving consideration to some motivation to some of motivation theories, some of these are the need theory Mascow (1993), human relations theory, inequity theory (Adams, 1990), theory of mature individual  (Argyris, 1987), Mc gregors theory X and Y (1990) etc. these theories can give basic ideas on how we can improve our conceptions beings and human nature.

In considerations of the above heories, Onuchuekwa (1995:52), considers Maslow humanistic theory and Agyris theory of nature of individual fundamentals for formulation of incentives theories. He further strongly believe that the first state of Maslow’s  hierarchy of needs will continue to be  applicable in Nigeria  form many years before the social part of that theory (higher than other needs).

Okoye (1980:35) further stipulated conditions for compensations to be paid at all in respect of an injury to or death of a sales force  not only that the employment must be the one envisaged by the sales force compensation act but also the employer and the sales force, as we as the dependency and membership of one family if applicable shall be within the contemplation of Act. The accident which resulted in the injury to the sales force or to his death must not only have occurred during the course of the sales forces employment but must also arise out of the said employment.

Organization according to Onwuchekwa (1993: 24) operates or formulate three types of compensation policies. These are basic, variable and supplementary or fringe benefit compensation policies. Each of these compensation policies perform specific functions for the business organization. Basic compensation policies aim at attracting sales force/ workers to the organization, variable compensation policies is motivational and it is aimed at directing workers towards superior performance, fringe benefits aimed at retaining workers in the organization.

In conclusion, in Nigeria today, according to Onwuchekwa (1995) people talk about Banks, Oil companies, etc. these are popular companies noted for treating their sale force well through design of diverse effective fringe benefits. Business faculties in the present day Nigerian universities and Polytechnic are gradually loosing lecturers to the private sector especially banks and other business organization because of more attractive basic salary, variable and fringe benefits. Banks are even completing among themselves. Companies that are deficient in supplementary compensation policies may lose their skilled sale force to companies that have attractive supplementary compensation policies.

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE

RESEARCH METHODLOGY

This chapter will be used to discuss the major issues in this research project. Two major methodology approached have been taken in this research project to solve the statement of problem in Chapter One. The first methodology approach is literature review. The contribution of literature to the methodology of this research is that it prepared the background for the empirical study in this chapter. However, this chapter will concentrate on discussing the major methodological issues in the research investigation policies. Primarily, this research is to describe the basic compensation policies in the Nigerian Banking Industry Plc, Nnewi Branch.

The system approach provides the frame work for this descriptive analysis. However, we do not intend to discuss the system approach here, instead we shall discuss primary the empirical investigation which was carried out at the First Bank Nigeria Plc Nnewi Branch.

RESEARCH DESIGN

The field investigation focused primarily on investigating the compensation policies and practices in the first Bank Nigeria Plc, Nnewi Branch

PPOPULATION OF THE STUDY

The population of study constitute 21 staff of First Bank Branch.

SAMPLEOF THE STUDY

A total of 17 employees were selected (sample size) out of a population size of 21 for the purpose of generating relevant information on compensation policies and practices in the bank. For this study random smapling technique was used on the selection of the respondents.

These employees were categorized into groups A and B. group A refers to senior staff while group B refers to junior staff. However, 10 of them were junior staff while 7 of them are senior staff.

INSTRUMENT FOR DATA COLLECTION

The method of data collection include questionnaire interview, observation and study of secondary materials gotten from books, journals and internets.

PRIMARY DATA SOURCE

QUESTIONNAIRES

A total of 17 questionnaires were administered on the selected respondents for the purpose of gathering relevant information about compensation policies and practices in the bank.

INTERVIEW

The researcher carried out both format and in a formal interviews with  the key personnel (the manager and a few other members of senior staff). The formal interview was guided by already formulated questionnaires on the research problem.

OBSERVATION METHOD

Observation method involved the visit of the researcher to observe the physical conditions on selection observable activities in the bank.

SECONDARY DATA SOURCES.

This involves the study of annual reports, journals the bank’s newsletter and relevant documents on the activities of the organization investigated. This methodological approach has been helpful in describing the major activities in this research project.

METHODS OF DATA ANALYSIS

Both tabular and analytical methods were used to present and analyze the data collected, percentage were used to analyze the proportions and relatives distributions of numeric information gathered.

Chi-square test was used to evaluate the hypothesis. This is computed using the formular

X2=

Where X2 = chi-square

Fo = frequency observed

Fe = frequency expected

If the chi-square (X2) is computed, the degree of freedom could be used to check the chi-square table value of 95 significant level (1.e 005). This degree of freedom df = (C-1) (r-1)

Where df = degree of freedom

C = Number of columns

R = Number of Rows.

Decision rule, we accept the null hypothesis if computed X2 value is less than the table value of chi-square. On the other hand if the value is more than the table value, we reject the null hypothesis and accept the alternative.

 

 

 

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS.

In this  chapter, the data collected from the staff of First Bank of Nigeria Plc, Ekwulobia will be analyzed.

4.0 DATA PRESENTATION

A total of seventeen questionnaires were administered to the staff of the Bank. Table below show that seventeen of the questionnaires distributed were correctly filled and returned which implies that 100% of the questionnaire distributed was correctly filled and returned. 41% of the questionnaire was administered to senior staff denoted by group A whereas 59% was administered to junior staff denoted by group B.

TABLE 4.0

No of questionnaire Group A Group B Total Percentage
No Correctly filled and returned 7 10 17 100%
No not correctly filled 0 0 0 Nil
Total 7 10 17 100%

 

4.2 ANALYSIS OF DATA COLLECTED FROM THE FIRST BANK STAFF QUESTIONNAIRE

QUESTION ONE

Do you feel that you salary is commensurate with your input on your job?

TABLE 4.1

Assessment of adequacy of their compensation

Assessment Response Group A Group B Total %Response
Not commensurate 5 6 11 64.7%
Commensurate 2 4 6 35.3%
More than commensurate
Total 7 10 17 100%

Source: field study, 2012

From table 4.1 a total of 11 or 64.7% of the sample responded that their salaries not commensurate with their input  33.3% of the sample responded that what they receive is commensurate with their input  while nil agreed that their salary is more than commensurate. This means that more than half of the respondents are of the opinion that compensation policies and practices of the First Bank of Nigeria Plc, are not satisfactory when compared with their input.

QUESTION TWO

Have you ever compared what you are paid with what your contemporary earn in their banks?

Table 4.2

Whether staffs were able to compare their compensation with other banks.

Response Group A Group B Total % response
Yes 7 10 17 100%
No
Total 7 10 17 100%

Source: field study, 2012

From the analysis in table 4.2, all the respondents answered yes affirmed that they have compared First Bank compensation with what is obtainable in other banks while nil answered No.

QUESTION 3

How is your compensation compare with their?

TABLE 4.3

Assessment of salaries with contemporaries

response Group A Group B Total % Response
Higher
The same 2 2 4 23.53%
below 5 8 13 76.47%
Total 7 10 17 100

Source: field study, 2016

In table 4.3 above 76.47% of the respondents affirmed that their salary is below compared with what their contemporaries in other banks receive while 23.53% agreed that salary is the same.

QUESTUION 4

If your answer is that your earning is below, has this situation led to any form of distortion with the management? The response are presented in the table 4.4 below.

TABLE 4.4

Whether staff compensation has generated conflict with management.

Response Group A Group B Total % response
Yes 6 7 13 76.47%
No 1 3 4 23.53%
Total 7 10 17 100%

Source: field study, 2016

From table 4.4 above, it can be observed that 76.47% of the staff answered yes and agreed that due to their inequitable basis of compensation, they have been their management. This means that workers may not give their utmost to the organization due to the fact that some workers are earning more than some people whom they joined the organization. The same time and with the same qualification.

QUESTION 5

What was management’s reaction when you complained?

The respondent’s responses are presented in table 4.5

First Bank Plc, Management’s reaction to employee’s complaint

Reaction Group A Group B Total % Percentage
Positive change 2 3 5 29.42%
No action 3 3 6 25.29%
Promise with expectation 2 4 6 35.29%
Total 7 10 17 100%

Source: field study 2016

From the table above, 29.42% agreed that management reacted positively. 35.29% affirmed% from the table above, it is revealed that management shows negative attitude to worker’s complaints of inequitable compensation.

This attitude will no doubt affect negatively the employees approach to performance and letter will available lead to low overall productivity and profitability in the organization.

QUESTION 6

Do all employees have access to all forms of fringe benefits?

The respondent’s responses are presented in table 4.5 below.

TABLE 4.6

Whether all staffs access to fringe benefit.

response Group A Group B Total % Response
Yes 5 4 9 52.94%
No 2 6 8 47.06%
Total 7 10 17 100%

Source: field study, 2016

From the table presented above, 52.94% of the sample size affirmed that all employees have access to fringe benefits while 47.06 says No that all works do not have access to fringe benefits.

QUESTION 7

Do you put in extra hours of work outside you normal schedule?

TABLE 4.7

Whether staff put in extra hours

Response Group A Group B Total % Response
Yes 7 8 15 88.24%
No 2 2 11.76%
Total 7 10 17 100%

Source: field study, 2016

From the table above, 15 respondents or 88.24% agreed that outside their normal  schedule, they put extra hours in their organization while 11.76% answered no.

QUESTION 8

Do you receive extra monetary reward from management as a result of these extra hours of work put in?

TABLE 4.8

Compensation received when staff put in extra hours

Response Group A Group B Total % Response
Money

Bonuses

7 7 41.18%
Nothing only 4 12 5 29.41%
Appreciation 3 2 5 29.41%
Total 7 10 17 100&

Source: field study, 2016

From the table above 41.18% of the respondents agreed that the they receive money bonuses for the extra work they perform for the organization. About 29.41% agreed that they receive nothing for extra work they perform for the organization 29.41% equally agreed that they get appreciation.

QUSTION 9

When management gives extra responsibilities, are you paid extra money?

TABLE 4.9

Response Group A Group B Total & Response
Yes 5 5 29.41%
No 7 5 17 70.59%
Total 7 10 17 100%

Source: field study, 2016

From the response of the respondents above in table 4.8, 29.41% or 5 of the workers agreed that their organization pay them monetary compensation when they are given extra job in the organization while 70./59% of the sample affirmed that they do not receive any monetary compensation.

TESTING OF HYPOTHESIS

Step 1: statement of the hypothesis

Ho: compensation of sales force in First Bank of Nigeria Plc does not lead to dissonance with management.

Step 2: INDENTIFICATION OF TEST STATEMENT

X2 =

Where X2 = Chi-square

Fo = frequency observed

Fe = frequency expected

Step 3: FORMULATION OF DECISION RULE

The level of significance is special as 0.05 while degree of freedom of (df) is (c-1) (R-1) (2-1) (3-1). Reading from the Chi-square distribution table, we have 5.99 as the Ho if the calculated values of the Chi-square are less that 54.99 otherwise accept Ho.

COMPUTATION OF TEST STATISTICS

Response Group A Group B Total % Response
Not commensurate 5 6 11 64.7%
Commensurate 2 4 6 35
More than commensurate  
Total 7 10 17 100%

Source: field study, 2016

To calculate the expected frequency the formular is used

Fe = (TR X TC)/Op

Where TR = Total Row

TC = Total Column

OT = Overall Total

Response Fo Fe Fo-Fe (Fo-Fe)2
Not commensurate 5 4.5 0.5 0.25 0.06
Commensurate 2 2.5 0.5 0.25 0.10
More than commensurate 0.0 0.0 0.00 0.0
           
Not commensurate 6 6.5 -0.5 0.25 0.04
More than commensurate 0.0 0.0 0.00 0.00
Total 17 17 0.27

Source: field study 2016

i.e X2  =  0.27

table X2 = 5.99

the calculated value of Chi –square is 0.27, and since this value is less than the table  X2 which is 5.99. we accept the Ho and conclude that compensation of sales force in First Bank of Nigeria Plc does not lead to dissolve with management.

i.e X2 = 0.27

Table X2 = 5.99

The calculated value of Chi-square is 0.27, and since this value is less than the table X2 which is 5.99, we accept  the Ho and conclude that compensation of sales force in First bank of Nigeria Plc does not lead to dissolve with management.

 

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.

5.1 SUMMARY/FINDINGS

This research work started with problem formulation in chapter one. The problem formulation is to investigate the compensation policies and practices in the Nigeria Plc, as a case study. In order to solve this research problem, one hypothesis were formulated to guide the problem, one hypothesis were formulated to guide the work especially in data collection because of the need for empirical investigation. There was detailed review of relevant literature which provided the theoretical background for the empirical investigation which was carried out among selected workers in the bank.

The major methodological activities of this research work was presented in chapter three, chapter four was used to present the results of the empirical overview of organization (Bank), that was studies and data presentation and a summary of the major activities of this research project, the conclusions and recommendation for improvement.

The major findings of this study include:

  1. The bank studies has compensation policy and practice that is not equitable.
  2. Management of the bank pays little attention to valuable compensation issues raised by workers.
  3. They also pay little or no attention to supplementary or fringe benefits. The workers are only paid their normal salary without over time allowance no matter the extra hours and effort put in.
  4. Management of the bank has some integrity problem they do not fulfill their promise to workers which they assign them with special or extra tasks.
  5. Details of supplementary compensation are not communicated to the employees. The workers do not know exactly what they would get when they are deployed to perform special or extra tack.
    • CONCLSION

the major conclusion to be drawn in this research is that compensation policies and practices  there are very important in managing a firm. If compensation policies is equitable, it will lead to stability among employees.

On the other hand if compensation policies is not equitable, it may be major source of conflict in the organization.

Variable compensation need to be directed towards the needs of the workers. However, when such fringe benefits are not communicated to the workers they may not show appreciation and this may cause management not to reap the benefits of implementing supplementary compensation policies. With respect to the organization studies,  the approaches to implement basic, variables and supplementary policies are not effective e compare with the input of the workers. Therefore, improvement is needed.

RECOMMENDATIONS

The recommendations for improvement include:

  1. there is need for management to use job evaluation method to assess job and responsibilities before forming compensation policies and implementing it.
  2. Effective job evaluation depends on effective job analysis method, so management should also analyze job effectively to obtain adequate job information from description and job specification.
  3. Management should also help workers to develop appropriate skills on their jobs. This will lead to improvement on job performance and productivity of the workers.
  4. Management should study the general needs of the workers and design appropriate compensation and communicate them to the workers for their general awareness in order to motivate them to enhance performance.

LIMITATIONS OF THE STUDY

The study is limited to First Bank of Nigeria Plc, Nnewi Branch with a view to generalize it to other branches of the bank.

Attwmpt to gather relevant data for this study will be met with challenges because some staff regard such as a classified data and will be relevant to disclose some of the required information. These will also be complaint of lack of time on the part of the respondents to complete the relevant questionnaire and interviews.

However the researcher will try tom overcome these limitations by making a copy of recommendation of the study available to the organization being used for the study.

 

 

 

 

 

 

 

 

 

 

REFERENCES

Adeyemi, M.O (1989), The Workers Compensation Degree Gravities Review of Business and Property law.

Agyris, C. (1962), Intetrnationa Competence and Organizational Effect5iveness, New York: Taristock Publishers.

Fisher, et al (1996), Human Behaviour at Work, Japan Mc Graw-Hill Kogakusha Ltd

Maslow, A. (1970), theory of Human Motivation, BVoston Mass: Harper and Row.

Obiesie, M.C (2014) making Communication, Enugu Christian way Publishers.

Okafor A.I. (1996) Sales Management, Anambra, Onwubiko,Press Ltd.

Morden A.R Elements of Marketing Guensey Press Co. Ltd; Guenersey Channel Island, 1987.

Allen, P Sales and Sales Management; Mc Donald & Evans Ltd; Ibadan 1973.

Obi Okotye, A. (1980), Essays on Cuivil Precodings, Enugu; Fourth Dimension Publishers.

Onwuchekwa, C.I (1993), Management theory and Organization Analysis Awka; Gosten.

Onwuchekwa, C.I (1995) Personal Management, Awka Gosten Publishers.

Tosi and Carrel (1982), personal Management, Principle and Practice, New York; Oxford University Press.

Scott, W.R (1981) Organizational Natural and Open System, New Jersey; Englewood Clifts.

 

 

 

 

 

 

APPENDIX A

Department of Marketing

School of Business Studies

Federal Polytechnic, Oko

Orumba Local Government Area,

Anambra State.

Dear Sir/Madam,

LETTER OF REQUEST

I am a student of the above mentioned Institution in Department of Marketing.

I am carrying out a research work on the topic “The effect of motivational policies and practice on sales force in Nigeria Banking industry (A case study of First Bank Nigeria Plc Nnewi) which is one of the Requirements for the Award of Higher National Diploma (HND) in the Institution.

Any information given will be treated confidentially.

Your anticipated co-operation will be highly appreciated.

 

 

Yours faithfully,

 

Mbanusi Reseline Chika

APPENDIX B

QUESTIONNAIRE

Please tick ion the appropriate box provided.

  1. Sex:
  2. Male ( )
  3. Female (        )
  4. Marital status:
  5. married ( )
  6. Single ( )
  7. Educational Level:
  8. Diploma ( )
  9. graduate ( )
  10. What is your age?
  11. 20-29 ( )
  12. 30-39 ( )
  13. 40 – 49 9 ( )
  14. 50-59 ( )
  15. How long have you works in this organization?
  16. Less than 5 years ( )
  17. 5-10 years 9( )
  18. 11-15 years ( )
  19. Do you feel that your salary is commensurate with your input on your job?
  20. No ( )
  21. Yes ( )
  22. Have you ever compared what you are paid with what you contemporary earn in other banks?
  23. Yes (      )
  24. No ( )
  25. How is you compensation compare with others?
  26. Higher ( )
  27. Below ( )
  28. the same ( )
  29. If your answer is that your earning is below, has this situation led to any form of dissonance with the management?
  30. Yes ( )
  31. No ( )
  32. Has staff compensation ever generated conflict with the management before?
  33. Yes ( )
  34. No ( )
  35. What was management’s reaction when you complained? a. Positive change ( )
  36. No action ( )
  37. Promise expectation ( )
  38. Do all employees have access to all forms of fringe benefits?
  39. Yes ( )
  40. No ( )
  41. Do you put in extra hours of work outside your normal schedule?
  42. Yes ( )
  43. No ( )
  44. Do you receive extra monetary reward from management as a result of these extra hours of work put in?
  45. monetary reward ( )
  46. Nothing only ( )
  47. Appreciation ( )
  48. When management gives extra responsibilities, are you paid extra money?
  49. Yeas ( )
  50. No ( )
  51. Is some percentage of your salary attached to the performance?
  52. Yes ( )
  53. No ( )
  54. Are high performers rewarded by management?
  55. Yes ( )
  56. No ( )
  57. If yes how?
  58. Cash reward ( )
  59. Promotion ( )
  60. Appreciation ( )

 

 

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