CHAPTER ONE
INTRODUCTION
1.1 Background to the Study.
The business world is gradually changing
into a complex sector of the society and there are many problems in the
business sector, but that which involves reward to workers is difficult
to understand. The question now is: how long will the worker work for
just salaries? Only bad labour relations and reward system in an
organisation have negative and reward system in an organisation have
negative impact on the workers morale as well as on productivity.
Studies have shown that there are
several benefit include workers motivation and increased productivity.
If workers are well motivated, they work with high morale and put in
their best. But if they are under appreciated, their productivity is
bound to drop.
An example, a poor and un-motivated
worker will not, no matter how information conscious he may be, spend
the little money at his disposal on newspaper which enhances the
productivity of the organisation. An organisation with un-motivated
workforce does not expect the employee to produce good quality products
and service. Most micro-finance banks reward system is very poor. In
many cases the workers are used and abused, harassed, threatened and
often discarded without proper reward and terminal benefit.
Lack of adequate reward for honest
effort and good skills is one of the reasons why corruption is a
pandemic in organisation productivity will remain low is the reward
system does not improve. This may result in plant closure, loss of
workers and increase in human misery. A happy and healthy worker is
normally a productive employee (all things being equal). In the
organisation, the basic ton for motivating workers to perform adequately
is through incentive scheme that matches the job they do in the
organisation.
Workers are very sensitive to unfair
treatment by managers. They have need, perception and goals which are
unique. As a result of the above, there is need for the organisation to
employ reward system which will be able to meet the needs. Adequate
reward gives satisfaction to the worker because they will accept the
burden imposed on them by their superiors and be will to contribute
their quota to the realization of the organisation objectives. It is in
view of this importance of motivation to higher productivity, the
researcher decide to choose the topic as his researcher decide to choose
the topic as his research topic using Auchi micro-finance bank as my
case study.
Reward system play a very vital role in
the success of any business organisation. In view of this the
researcher, took interest in identifying how reward system motivate
workers to a higher productivity in order to achieve organisation
objective.
1.2 Statement of Research problem
In our business organisation today, the
welfare of the workers is not taken into serious consideration and they
fail to realize without a motivated workforce, the organisation will
crumble.
1.3 Objective of the Study
The overall objective is to highlight
the impact of reward system in the banking sector, using Auchi Micro-
Finance Bank, Auchi, Edo state as a case study. The specified objectives
are:
i. To examine how reward system affect workers in the banking sector.
ii. To find out the impact of job motivation on employee productivity.
iii. To identify the need for effective reward system policies in employee’s administration.
iv. To ascertain different problems arising from inadequate reward system.
v. To find out how reward system is being administration in the banking sector.
1.4 Research Questions
In order to carry out this properly, the following question were asked
(1) Does monetary reward for workers increase organization productivity?
(2) Does organization provide healthy and safe service to work?
(3) Does organization pay workers pension and terminal benefit?
(4) Does pension and retirement benefit helpto reduce employee turnover?
(5) Does better reward system for workers lead to high productivity in the organization?
1.5 Statement of Hypotheses
In order to achieve the purpose of this research, the following hypothesis shall be tested.
(1) Monetary reward system does not enhance workers performance.
(2) Better reward system for workers will not lead to higher productivity in the organization.
(3) Provision of health and safety services does not enhance workers performance.
1.6 Scope of the Study
The research work focuses on the impact
of reward system on worker’s productivity and is restricted to Auchi
Microfinance Bank, Auchi. Also this research work will cover the nature
of reward system, theories of motivation, relationship between job
motivation, effect of reward system and problems of reward system.
17 Significance of the Study
This research work will be greatly
important to all Microfinance Banks in Nigeria. The study will also be
help to managers especially personnel managers in carrying out their
duties or tasks. It is hoped that this research will broaden the
knowledge of business students that will be interested in making use of
it.
The findings and recommendation of this
research work will be useful to any person who wishes to carry out
research project on the same topic. The work will also enrich and
fertilize ahead already existing literatures on the impact of reward
system on worker’s job performance in the banking industry.
1.8 Limitation of Study
In the process of carrying out this research work, the researcher encountered many problems as discussed below;
One of the problems is the attitude of
respondents. The respondents were very sceptical about the purpose of
the use of this information. Their scepticism which was due to constant
disputes between management and labour union made the respondent not to
give out information willing to researcher.
1.9 Operational Definition of Terms
The following terms are operationally defined as used in this study.
Reward: All forms of
compensation in payment or otherwise which goes to the employees at all
organizational level arising from the employment in a work place.
Motivation: These are complex forces which start and keep the individual at work in the organization.
Incentives: A general terms for compensation payment plans that are geared to result, such as unit of sales.
Satisfaction: Workers contention with the job.
Salaries: These are payment made to employees other than those who are hourly rated.
Wages: Wages are tantamount to compensation and it includes hourly pay monthly salaries, bonuses, commission and draw account.
Workers: The total workforce of employee in organization to carry out specific function for which they are rewarded.
Objectives: These are
goals which the organization wants to achieve within a given time
dimension of optional allocation of organization human and material
resources.
Management: All those involves in social and technical process of utilizing resources and influencing human action to get the job done.
Reward System: The
pattern of combination and administration of various techniques of
worker’s compensation which is adopted a given organization.
Organization: This is
the coordination of people for the achievement of a common goal through
division of labour and functions also hierarchy of authority’
Productivity: This is referred to the increase level of output and performance of workers.
Persuasion: This refers to convince or persuade followers to perform a particular tax.
Performance: Is how well or badly a person, company etc, does a particular job or activity.
Bank: A business that keeps and lends money out and provides other financial services.