CHAPTER ONE (BODY OF THE WORK)

INTRODUCTION

1.1 BACKGROUD OF THE STUDY

        Fisher, et al (1996) noted that the system that an organization uses to reward employees can play a important role in the organization efforts to gain a competitive advantage and achieve its major objective. It is a known fact that an organization is what it pays, for the  way an organization pays its employes contains a philosophy about how they are motivated.

        Hence the need for every employer of labour to have a well worked out compensation system that is able to attract and keep competent and well motivated employees.

        An employee offers his service to an organization because he has wants and needs which the organization can satisfy and by so doinf he helps the organization to achieve its own goal.

        For the service he renders, he is rewarded if the reward is in congnience write the services he render,he tries to give out his best at the same time retains his job. For this to happen, the employer requires proper and efficient management of their compensation system.

        Employee compensations is very important in attaining the objectives of business organizations. The banking sector are expected to formulate compensations policies which will satisfy the economic needs of their employees so that they can contribute to the attainment of the objective of the organization.

        For employees to contribute positively to the fulfillment of the objectives of the banking industry, the bank(s) should formulate compensation policies which will satisfy the economic needs of the employees.

        There are basically three types of compensation policies in organizations. They are basic, variable and supplementary otherwise referred to as fringe benefits. The all have different functions in the business organizations.

        In the Nigerian banking sector, employees pay package is quite encouraging as compared with other sectors of the economy. It is enough to meet his/her expected expenditure even if they rate boxers. The issue of strikes here and there (every time) is not in the book of the Nigerian banks.     

        However, it has been noted that the employees level of  contentment in his./her job greatly affect his/her productivity.

STATEMENT OF PROBLEM

        The problem of this research bother on the investigation of the compensation policies and practices in the Nigerian banks industry. On the basis of the knowledge gained from this study, some recommendations can be made on how to improve organizations stability and practices. If the workers feel that the compensation policies of the organization are not satisfactory, they usually confront management. This may be major source of instability which may affect the employee productivity and consequently affect the sustainability of the organization.

        First Bank engaged in the business of commercial Banking. The mission statement of First Bank is to remain true to their name by providing the best financial services possible.

        Incorporate in 1894 and head quartered in maina, the heart of Lagos. First international; branch was opened in Accra in 1896. Opened second branch in Freetown, Sierra eone in 1898. In 1912 Calabar branch was opened by King Jaja of Opobo the second in today’s Nigeria and Zaria branch was also opened in the same year  as the First Bank branch in what is today’s Northern Nigerian. The bank was shown business leadership since, its inception, having acquired Ango-African Bank in 1912, its competition in thevery first M&A recorded in this region. 1914 saw the amalgamation of Northern and Southern protectorates- First Bank had branches in what would today be Kano, Zaria, Calabar, Lagos, and Ibadan. In 1947 advances the first long  term loan to the colonial government.

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