Compensation management is one of the
most important aspects of personnel management. It covers economic
rewards in form of wages and salaries as well as in various forms of
non-wage economic payment known as fringe benefits, indirect
compensation or supplementary pay. Therefore, this research work has
been carried out to look at the impact of organizational compensation
management system on the performance of employees in the public sector.
The research found out that compensation
management has a great impact on the performance of employees in the
organization and that there are other factors which re not monetary
inclined that contributed greatly to the performance of employees.
Factors such as; motivation, leadership, communication, control, sense
of belonging and decision making. It is therefore hoped that this
project will help in understanding the impact of compensation management
on employees’ performance. The project is intended to create awareness
for organization members, society and government. Also the general
reader will find it educating and informative. The need for this study
arises from the variation in performance of employees in the
organization that has been noticed and this research work hoped to
improve the standard and in order to achieve this, project has gone into
so many past works of authors and related literatures in order to
This study is divided into five chapters
covering the wide scope of compensation management. Chapter one deals
with the general focus of the study. Chapter two tries to review
various concepts and theoretical strands that are relevant to this
study. In chapter three, attempt was made to look into the methodology
of the study. Chapter four endeavour to present, analyze and summarize
the data collected in the course of the study. The conclusion of the
study is in chapter five where general discussions, conclusion and
recommendations were made. These were considered relevant to improve
the impact of compensation management on employees’ performance. In the
analysis of the research work it was concluded that compensation
management system has a great impact on employees’ performance.
TABLE OF CONTENT
Title page 1
Table of contents 3
CHAPTER ONE: Introduction
1.0 Introduction 5
1.1 Statement of Problem 8
1.2 Research Questions 8
1.3 The Hypothesis which this study tested 9
1.4 Purpose of Study 9
1.5. Relevance of Study 9
1.6 Scope of the Study 10
1.7 Significance of the Study 10
1.8 Limitations of the Study 11
1.9 Literature to be Reviewed 11
1.10 Method to be Sold 11
1.11 Definition of Terms 12
1.12 Operationalisation/Definition of Variables 12
1.13 Brief History of Guaranty Trust Bank Plc 12
CHAPTER TWO: Literature Review
2.1 Introduction 16
2.2 Assessment of Training Needs 19
2.3 Training Objectives 20
2.4 Present Status 20
2.5 Determination of Training Effectiveness 23
CHAPTER THREE: Research Methodology
3.0 Introduction 48
3.1 Research Design 48
3.2 Characteristics of the Study Population 49
3.3 Sample Size and Procedure 49
3.4 Data Collection and Administration 49
3.5 Data Analysis 49
CHAPTER FOUR: Presentation of Data Analysis
4.0 Introduction 51
CHAPTER FIVE: Summary, Conclusion and Recommendation
5.0 Summary 66
5.1 Research Findings 66
5.2 Conclusions 66
5.3 Recommendation 67
Appendix I 70
Appendix II 71
Business is becoming more complex and
human elements remain an indispensable component of its survival.
Training is a sort of investment from which an organization expect some
positive returns. It involves the development or modification of
behaviour of employee in such a way that they become more effective at
their duty post.
Flippo (1980) said that when employees
have been selected, recruited and inducted, such employee must be
develop to better fit the job and the organization since on one is
perfectly fit at the time of hire. Soetan, (1995) also buttressed this
point when he said that training is always necessary when required
skills, attitude and knowledge are either inadequate or completely
lacking and when performance deficiencies that can be eliminated through
training are identified.
However, training is often aimed at
increasing productivity, improving quality of work, raise moral as well
as development of new skills, knowledge and attitude. Development on the
other hand, is a learning activity which is directed toward future
rather than present needs and which is concerned more with career
growth than immediate performance. The focus of development tends to be
more on future manpower requirement and other growth needs of individual
in the workplace.
Training and development are not
synonymous. Whiles training is the process of improving job behaviour of
an employee immediately, while development is future oriented often
geared toward preparing an employee for greater responsibilities in the
Effective management of change calls for
a dynamic human resources development policy to ensure that each staff
in an organization possesses requisite knowledge, skills experience and
expertise for the performance of his task.
The Administrative approach is based on
the number of employees to be trained in one year at a particular
period. The needs of the employee or the organization is not considered
rather it depend on whose turn it is to go for training and the number
of staff the budget can take care of. This approach, the employees is
sent to improve his/her welfare either financially academically or
otherwise. The employees is sent for training for his/her personal
benefit. In organization, a measure of polities exist as the employee
interact with one another here, training selection is based on either or
some of the following lobbying, setting rid of some troublesome
employees and projection of individual’s personal image, this is know as
political approach. The organization development approach is usually
adopted where the management cadre in an organization are made to attend
training programmes as a result of poor performance of a unit or
division as the case may be.
In systematic approach, the need of the
employee is identified from the gap between his actual performance and
the desired performance. Periodic performance appraisal can provide very
useful data to identify these needs` systematic approach to training is
preferred in profit oriented organization because it is often job
related and is directed toward the achievement of organization goals.
Training and development usually takes two forms namely:
- House training
- Off house training
In-house training is usually carried out
within the organization e.g. induction course, on-the-job training
coaching programmes, etc here, the training is done in the normal work
environment situation with the trainee using the actual tools, equipment
and material that he/she will use when he/she is fully trained. On the
other hand, off-house training takes place outside the organization, for
instance management consultant and training institutions organized
training programmes which employee attends. Evaluation training it
decides whether training justifies it cost or whether it is doing what
it set out to do.
The main goal of training is to improve
employee ability to perform specific tasks. Many organization therefore
spend a deal of time and money on training and development of their
employees. However, management is justifiable worried about the
effectiveness of training programmes in term of content, method
usefulness and result. There are many approaches to training depending
on the purpose it is expected to serve.
v Administrative Approach
v Welfare Approach
v Political Approach
v Organizational development Approach
v Systematic Approach
Boydel C. (1971) has suggested the following ten steps as constituting systematic training process.
v Identification of the occupation chosen as priority.
v Examination of the occupation chosen as priority
v Analysis of the occupation
v Specification, selection, and appraisal of the people to be training
v Setting training objectives
v Planning of the training programme
v Implementation of training programme
v Checking / assessment of the training
Budgeting for training can be described
as a process for systematically relating expenditure of funds for
training to accomplish its planned objectives. The main purpose of
training budget is to have realistic estimates of funding necessary for
the training services which are meant to be crucial to the achievement
for organizational goal both in short times and long time basis.
According to Douglas (1969), the step to follow in preparing a training
budget are as follows.
- Assess the training needs of the organization
- Draw a training programme for the year
- Document the annual budget for the training schools or department
The time to be spend on training
The number of people to be trained
The incidental expenses such as traveling expenses.
1.1 STATEMENT OF PROBLEM
In line with recent changes in business
circles, human resources department (HRD) have come to stay. This
department is usually responsible for handling matters on training and
development while personnel and administrative department which have
been in existences are still in charge of all other matters. This is
done to ensure that all employees are assisted with programmes to enable
them acquire additional knowledge, skill and attitude with which to
perform their jobs.
It is common knowledge that most
companies recognize that their principal asset lies within the skill
of their employee at all level. Therefore, this research work is aimed
at finding answer to questions relating to the impact of training on
1.2 RESEARCH QUESTIONS
In the research, attempt shall be made to find answer to the following question
Is job performance dependent on staff training?
Is job dedication dependent on training received?
Is job commitment a function of training received?
Is labour turn-over a function of training received?
1.3 THE HYPOTHESIS WHICH THIS STUDY TESTED ARE:
HO: Job performance is not dependent on staff training?
H1: Job performance is dependent on staff training?
HO: Job dedication is not dependent on training received?
H1: Job dedication is dependent on training received?
HO: Job commitment is not a function of training received?
H1: Job commitment is a function of training received?
HO: Job security is not a function of staff training?
H1: Job security is a function of staff training?
HO: Labour turn over is not function of training received?
H1: Labour turn over is not function of training received?
1.4 PURPOSE OF STUDY
The purpose of this study is to examine
the effect or extent which training motivates workers toward greater job
performance in the banking industries. It also examines the training
method being employed and it examine what can be regarded as adequate
manpower raining and development on employees performance and how
organization can improve employee performance beyond the impact of
training and development.
1.5 RELEVANCE OF STUDY
Many organization spend a great deal of
time and money on training and development of their employees, however
the management of some companies are often worries about the
effectiveness of such training and development programmes in terms of
content, methods, usefulness and desire results. This research effort
attempt to evaluate the impact of training and development on employees
performance of a firm in the banking industry.
Training and development of employee is
very relevant to an organization since it may increase high rate of
workers turn over and encourage employee to stay with an employer for an
Secondly, there are chance of prevention
of industries folding up if they have competent and well trained staff
delivering improved and better services in line with the organization’s
goal and objectivities. This will in turn enable our home made product
and services to compete favorably with foreign products and services.
Training programme also usually provide a job chance designed to improve
the quality of work life the hope that the employees will reciprocate
with training gives the employees a fair chance to better performance
and avoids the frustrating experience of poor performance. Effective
training and motivation therefore ensure the loyalty of employee and
invariable, high productivity through the avoidance of wastages.
1.6 SCOPE OF THE STUDY
Many organization spend a great deal
time and money on training and development of their employee, however
the management of some companies are often worried about the
effectiveness of such training and development programmes in terms of
content, method usefulness and desired to content, this research effort
attempt to evaluate the impact of training and development on employees
performance of term in the banking industries.
1.7 SIGNIFICANCE OF THE STUDY
Training can result in improve
individual dedication and job satisfaction as performance when training
requirement are determine by analyzing the work to be done the manpower
resources available and the present and future environmental demand or
All new employees, regardless of their
previous training, education and experience, need to be introduced to
their new employee’s work environment and to be taught how to perform
specific tasks, moreover specific occasion, for training arise when job
changes, and new skills must be introduced by advancing automatic.
As some employees respond to continue
training, they can be progressively increase their value to organization
and prepare themselves for promotion. Continues training can help
employee to develop their ability to learn, adapt themselves to work
methods, learn to use new kinds of equipment and adjust to method
changes in job content and work relationship.
1.8 LIMITATIONS OF THE STUDY
The bank under investigating, guaranty
Trust Bank had about 3,000 employee in the entire organization, it also
has about 15 branches in Lagos due to the monetary and time constraints,
the researcher limit the research to the Allen Avenue branch and
training center also situated and it head office.
The study also does not intend to look
into other factors hat are known to improve employees job performance
such as motivation of staff in terms of monetary reward and fringe
1.9 LITERATURE TO BE REVIEWED
This existing literature reviewed is on
manpower training and development. The view of management expert in the
relationship between training, development and performance was examined.
Training is a process of changing behavior of member of an organization
in such a way to contribute effectively to the growth of the
1.10 METHOD TO BE SOLD
This is the method through which the
research was conducted; the focus is highlighting, the effective
training on employees’ performance. In other words, we are interested in
evaluating the effect of training and development on employee. The
research activity was confirmed to the workers of Guaranty Trust Bank
Plc. The subjects were both female and male the research instrument use
for the study was a questionnaire the questionnaire was designed to find
a number of issue such as:
- Whether employees who are trained enhance the performance of employee.
- Whether training has no significant relationship to labour turn over.
- Whether the time, money, material etc. invested on training is justified.
1.11 DEFINITION OF TERMS
Training and development it all about
growth of an organization, training has been one of the great factor
that makes organization to achieve their growth, goals and objectives
performance, the word performance is all about the effort carried out in
an organization by the employee to me training and development
contribute to performance, after every employees have been trained with
high training, it will surely enable them to perform very well, so in
the other word training and development leads to higher performance.
1.12 OPERATIONALISATION / DEFINITION OF VARIABLES
For the purpose of this study, a number
of concepts would feature prominently and attempts will be made to
define them within the frame work of this project.
TRAINING: This is the
systematic acquisition of skill, concept or attitude that results in
improved performance in an organizational setting.
Training needs: This
represent the gap between the kind of performance an employee has and
the kind of performance which is expected to have which can otherwise be
bridged by systematic training.
1.13 BRIEF HISTORY OF GUARANTY TRUST BANK PLC
Guaranty Trust Bank Plc received it
license to commence commercial banking activities in Nigeria in August
1990, however the curtain actually rose in February 1991 when the bank
opened the doors of its first office called “the Plaza” to the public.
The Plaza becomes a high benchmark for
style and service in financial service provision. It may not have been
rare but it was certainly not common that a new bank would insist on
having its own purpose built premises and they go ahead to invest
massively in functional technology before official commencing business.
This was simply a reflection of Guaranty Trust Bank’s insistence on
doing things right and doing the right things, from the very beginning
it was important that the customers should begin to perceive and
experience value added services, right from the moment they stepped into
the premises. This is they unifying aesthetic quality at all branches
from one branch in 1991, guaranty rust ban currently has twelve branches
each strategically located to penetrate the major hubs of commerce in
Nigeria. The following year, the Ikeja and broad street branches
opened between 1995 and 1998, branches were opened in Apapa, Kaduna,
Abuja, Onitsha, Aba Ibadan and Warri.
Meanwhile, the bank was moved its
corporate headquarters from the plaza to plural house in October 1994.
Then in September 1996, the bank became a publicly quoted organization
with its share traded on the Nigeria stock exchange.
In its first year on the exchange,
Guaranty Trust Bank earned the president’s merit award, the highest
award bestowed on deserving members of the stock exchange. In 1998,
after an in-depth strategic planning exercise, the offshoot of which
included a major restructuring of the organization, the vision was
tested and held through while the mission statement was reviewed as
“We are the first class financial
services provider possessing the urge to win at all times consistently
adding value to all stakeholder.
Than bank has remained a learning
organization learning new ways to delight its customer-sweet on the
counters, a hand umbrella on a rainy day, aesthetic, function premises
and technology has always been a passion with management from its early
days of operations until today, guaranty trust bank has utilized
functional contemporary technology that has kept is ahead of the curve.