CHAPTER ONE
1.1
INTRODUCTION
Employee’s interest in higher productivity does
not develop without some stimulation by management; either directly or through
the creation of an atmosphere in which employees wants to contribute their best
effort to the job.
It must be received that in any organization,
motivation `has a great impact on worker’s performance, if properly
administered. It will enhance the output of the workers which has a multiplier
effect on the rate of profit and turnover of the organization.
Remuneration policy and methods can be considered in
isolation from the country’s economic policies. That is why the state of the
economy must be critically analyzed before any policy on remuneration could be
implemented.
According to Haire (1963), in his wages and salary
policy and administration, he states that pay in one form or another is
certainly one of the main spring of motivation in one society.
As a motivator, it becomes part of general
psychological problem’’. An incentive is a systematic procedure for
establishing a sound compensation structure. By reducing inequalities among
employees earning, a good programme raised individual moral and reduces inter
group friction.
Similarly, motivation (incentives) policy shall be
the policy of an organization to promote incentives that are at least as good
as, if not better than, those paid by the competitors for similar types of work
under similar conditions of works in the communities in which it operates.
1.2
STATEMENT
OF THE PROBLEMS
One approach to employees’ motivation has been to
add incentive to an individual’s job as the primary factor in improving
performance. Endless mixes of employee benefit –such as Health care, Life
insurance, profit sharing , Employee’s stock ownership plans, Exercise
facilities, Subsidized meal plans, Child care availability, company’s car and
more have been used by companies in
their effort to maintain happy employees in the belief that happy
employee are motivated employee. To what extent has these incentives affect
employees productivity in Nigeria: A case study of Afribank plc.
1.3
PURPOSE
OF THE STUDY
Motivating employees to contribute their efforts to
accomplish organizational duties and task requires the identification variables
that could be influencing such efforts. The identification of such variable is
not an easy task. This could be attributed to the variety of employees need and
aspiration from the jobs which imply that motivating factors are multi
dimensional.
Basically, the purposes of the study are:-
(1) To
resolve problem in process of motivating workers.
(2) To
examine various leading theories of motivation and their effect on
productivity.
(3) To determine whether a group of workers will
have some need and wants which effects their productivity.
(4) To determine whether financial motivation
alone can satisfy the employees need and wants
therefore stimulate them
to work harder.
(5) To arrive at suggestions which if
implemented can help to improve the workers output and efficiency and thus achieve
company goals and objectives.
(6) To serve as guidelines for the easy study.
(7) To serve as reference for other staffs.
1.4
THE
SIGNIFICANCE OF THE STUDY
For modern days business enterprises to be
successful, the presence of committed and dedicated managers and highly
motivate workers is required.
To get the workers motivated, the manager must
understand those factors that will motivate a particular employee at a
particular point in time.
The study will however, assist managers in getting
the best out of their workers to achieve the enterprises objectives.
This will be achieve by establishing the importance
of motivation in today’s highly
competitive and dynamic business environment and how the concept could be used
to inspire appropriate co-operation
effort essential for achieving individual and organizational goals.
1.5
SCOPE
AND LIMITATION OF THE STUDY
There are certain motivational factors that would
account for a specific type of behaviour (better performance, higher
productivity) from the workers. The area which the study covers are:-
n
Motivation and employee
services
n
Maslow’s hierarchy of needs
n
McGregor theory x and theory Y
n
McClelland theory of human motives
n
Victor Vroom’s expectancy theory
n
motivational techniques
n
Relationship between fringe benefit and motivation.
n
Relationship between motivation and performance.
The study also takes a case study of Afribank of
Nigeria Plc and twenty five (25) numbers of respondents to arrive at the
objective of the study.
HISTORICAL
BACKGROUND OF AFRIBANK NIGERIA
PLC
Afribank Nigeria plc, formerly known as
International Bank for West Africa (IBWA) was granted a license to carryout
banking business on 26th October, 1959 and began operations on 4th
January, 1960 with the opening of a branch in Kano and shortly afterwards
another branch was opened in Apapa. The head office was subsequently
established in 1960 at 94 Broad Street, Lagos. Originally owned by banque del
Afrique Occidental (BIAO” IBWA’’) To reflect its 49% acquisition In 1964 by
First National City Bank Icn. and consequently, its has international
ownership.
The Bank was later incorporated under the Nigeria
companies Act of 1968 as a private limited liability company on 30th
May,
1976, the federal government of Nigeria has 60% ownership of the bank, later
10% was off loaded by the staff trustee ownership scheme while BIAO retained
40% shareholding on technical partnership. Afribank is one of the most
diversify banks in the country over the last few years. The Bank has worked
itself up to be among the top four (4) leading banks in Nigeria and it has
a network of 250 branches covering entire country with an asset base of over
N11.06 billion and a wide spectrum of corporate institution and individual
customers that enjoy the professional services of the Bank.
In meeting the full range of its customers
requirements, the bank has diversify its operation into the following wholly
owned subsidiaries to compliment it comprehensive financial services delivery
n
Afribank International
limited (Merchant Bankers)
n
Afribank insurance brokers
n
Afribank estate company limited (for in house
services)
n
Afribank trustee and Security Company limited.
Afribank mission is to achieve the position of a
leading International growth providing comprehensive and qualitative banking
and financing services which meet the change needs of its customers through the
employment within the group of high caliber personnel and utilization of up to
date technology, while ensuring optimum returns of its shareholders. As
approved by Federal ministry government based upon the recommendation of the
technical committee for privatization and commercialization (TCPC), the
ministry of finance incorporation (MOFI) in 1993 relinquished all of its equity holding in Afribank for sale to
the public.
The share of Afribank were admitted and listed on
the first tier market of Nigeria Stock Exchange (NSE) on 29th
October, 1993.
ORGANIZATIONAL CHART
However, taking a critical look on this above
organogram, one would see that Afribank of Nigeria has employed line and staff
organization structure. In this form of organization there are functional
aspect appointed, but in this instance, they have no executive power and act in
an advisory capacity only. The result of this is that line manager and supervisors
maintain direct control and authority over their members of their department
but also available to them except knowledge to assist their department in the
effective operation of their functional area.
1.6
DEFINITION
OF THE TERMS USED
For clarity purpose, the following words (and
possible others) and terms will be used in the course of research work. The
specific meanings assigned to these works are essential for a full
understanding of the study. Among these words includes the following.
(1)
Fringe
benefit:- These are extra benefit given especially to employee in addition
to their salaries or wages.
(2)
Work:- That essential part of human life that
relate to his Sustenance, survival, status and link to the society.
(3)
Workers:- Davidson (1979) defines a worker as any
Person who has entered or works under a
contract with an employer whether the contract of personality to execute any
work of labour
(4)
Administration:- According
to breech, he defines
Administration as that part of management
process concerned with the institution and carry out procedure by which the
programme is laid dawn and communicated and the progress of activities is
regulated and checked against target and plan (Robert Appleby C: Modern
Business Administration P.4).
(5)
Management :- It is a social process entailing
responsibility for the effective and economical
planning and regulation of the operation of an enterprise in fulfillment of
given purpose or task.
(6)
Motivation: – It is kind of inducement which spur the
individual externally to undertake a task on a particular action.
(7)
Productivity/performance:- The qualitative and
quantitative turnout of worker in the goods and services
produced.
(8)
Efficiency :- The sums up of qualities and
quantities
of Job produced within a given time and resources.
(9)
Compensation:- That which is given as an equivalent for
Services.
(10)
Job :- A set of task or responsibilities grouped
together under a
particular title.