The Effect Of Compensation On Employees Performance

INTRODUCTION

1.1 BACKGROUND OF THE STUDY 

 It is often said that there is a direct correlation between compensation management and employee performance on the job. Compensation refers to the salary or wages and all other allowances and financial benefits payable to an employee either in cash or promotion in return for his or her services well done. This salary or wages and other allowances may include pay which an employee receives. The salary aspect of compensation is designed to encourage the employees for effect beyond normal performance expectation and benefits here are reward available to employee or group of employee as part of organizing membership (Agulanna and Madu 2003).

Personal/human resource managers are primarily interested on the impact that pay will have on individual employee performance and organization effectiveness. Employee compensation programmes are designed to attract quality job applicants to the organizations, motivate employees to perform to their full capabilities and allow the organization to return its best employees. 

Compensation is the total reward received by an employee in exchange for services performed for an organization.  It can include both direct pay (salary and wages) and indirect pay (benefits programs) 

It is an agreement with the nation that better pay accord workers do better performance and be satisfied on the job at least to some reasonable extent that makes the researcher set on the research work. 

Mathis and Jackson (1985) defined compensation management as all the rewards employees received as a result of their employment.  It is not just salary but many include pay benefits incentives and non financial rewards. 

1.1 PROFILE/HISTORICAL BACKGROUND OF UNITED BANK FOR AFRICA PLC (UBA)

 United Bank for Africa Plc (UBA) is the product of the merger of Nigeria’s third (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank Plc limited (STB) respectively, and a subsequent acquisition of the erstwhile continental Trust Bank Limited (CTB).

 The union emerged as the first successful corporate combination in the history of Nigerian banking.

 UBA’s history dates back to 1948 when the British and French bank limited (“BFB”) commenced business in Nigeria

 In 1990 following Nigeria’s independence from Britian, UBA emerged at a time of industry consolidation induced by regulation, the consolidated UBA was borne out of a desire to lead the domestic sector to a new area of global relevance by championing the creation of the Nigerian Consumer Finance market leading a private/public sector partnership at supporting the acceleration of Nigeria’s economic development, and growing the institution from a banking to a one-stop financial services institution while spreading its footprints across Africa to earn the reputation as the face of banking in the continent. 

Today, United bank for Africa Plc is one of Africa leading financial institutions offering Universal Banking to more than 7 million customers across 750 branches in 19 African Countries. With presence in New York, London and Paris and assets in excess of $ 19 billion, UBA is your partner for banking services for Africans and African related business globally. 

It give enough space for heading is generally recognized that job satisfaction performance of the employee is a factor that cannot be overlooked wherever the questions of employee commitment or performance arises though it may not lead to higher performance of the work force. It is necessary condition in developing a committed workforce  high levels of job satisfaction do necessary guarantee high level of employee productivity. Conversely dissatisfied employee may on occasion, exhibit high levels of job performance. 

 It is probably safe to say that compensation specialist has tried thousands of different combinations of pay and employees benefits to motivate high levels of job performance infact no two organization have exactly the same philosophy and methods for structuring their compensation packages in an attempt to induces extra effort from employers. 

There is also a tendency that a satisfied worker would identify more with his job than a dissatisfied one. The scientific management school of Fredrick Taylor (1911) advocated the use of the incentive wage system as a means of stimulating workers to higher performance. In most organizations remuneration is used as motivating factors. The idea is that an employee who enjoys good compensation in terms of monetary or otherwise is likely to put in extra effort and therefore produce more monetary reward is assumed to lead to higher employee performance which in turn results to higher productivity. 

It is an agreement with the nation that better pay accord workers do better performance and to be satisfied on the job at least to some reasonable extent that makes the researcher set on the research.