IMPACT OF REWARD SYSTEM IN THE BANKING SECTOR OF NIGERIA

IMPACT OF REWARD SYSTEM IN THE BANKING SECTOR OF NIGERIA

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.