The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry

Project and Seminar Material for Marketing

The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry


The role in which adequate and equitable motivational policies in the life of the sales force in an organization cannot be overemphasized. It leads to an increase in sales productivity which will result in the growth and progress of the organization in question. This study is an attempt to investigate motivational compensation policies and practices in the First Bank of Nigeria Plc. Nnewi Branch. This topic was extensively overwhelmed with a view to understanding the subject matter. Data was collected from the members of the staff of First Bank of Nigeria Plc Nnewi Branch using questionnaires. The collected data was duly presented and analyzed using Chi-square method analysis and result showed that compensation policies and practices thereby are very important in managing an organization. If compensation policies are equitable, it will lead to efficiency among employees as a workforce and hence increased productivity. On the other hand, if compensation policies are not equitable i.e may be a major source of conflict in the organization. On the basis of the above result, recommendations were made on how to improve the compensation/motivational policies and practices of the organization under study.

Chapter One


1.1 Background Of The Study

Fisher, et al (1996) noted that the system that an organization uses to reward employees can play an important role in the organization’s 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 employees 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 doing he helps the organization to achieve its own goal.

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

Employee compensation is very important in attaining the objectives of business organizations. The banking sector is expected to formulate compensation policies that 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 that 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. They all have different functions in 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 affects his/her productivity.

1.2 Statement Of Problem

The problem of this research bothers on the investigation of the compensation policies and practices in the Nigerian bank’s 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 a major source of instability which may affect 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 its name by providing the best financial services possible.

Incorporate in 1894 and headquartered in Maine, the heart of Lagos. First international; branch was opened in Accra in 1896. An opened second branch in Freetown, Sierra leone in 1898. In 1912 Calabar branch was opened by King Jaja of Opobo the second in today’s Nigeria and the 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 the very 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. A demonstration of our long term commitment to national development. Changes name from BBWA Bank of British West Africa of West Africa (BWA) to only reflect the regional identity of the bank. 1960 at Nigerian’s independence advances the first ever loans to the citizens of the independent Nigeria. Birth of true retat banking. 1963 operates 114 branches across West Africa when Nigeria became a republic. In 1955, it adopts the name Standard Bank of West Africa, following its merger with Standard Bank Uk. In 169, incorporates locally as Standard Bank of Nigeria Limited, in line with the companies decree of 1968. In 1979, changes name to First Bank of Nigeria Limited. 1982, London Branch established to foster international banking relationship for Nigerian and foreign business alike. In 1991, changes names to First Bank of Nigeria Plc, following the Bank and other financial institution decree (BOFID). (1991), first ATM introduced in 36 marina as part of ease of convenience, round the clock Banking. In 1994 the bank is a hundred years old, a feat for any branch even today. Birth of the popular and legendary “First Bank O una well done O, una do well O” (centenary cooperate campaign) URL to jingle and celebrated newspaper article on the centenary. In 1996 commences business transformation project code named “Century 11”, to strategically position for its next century to operations. 199 a former Md of first bank was appointed CBN governor. 2001, revalidates business transformation project code named “Century 11”: the ne frontier to revolutionize the banks operations in line with the banks brand, leverage and strengthen the banks branch, leverage and heighten the customers experience and project Fist bank and sophisticated ad dynamic.

In 2002, establishes FBN Bankv (UK), regulated by the FSA, the first Nigerian Bank to own a wholly fledged bank in the Uk. Established forst internation subsidiary of a Nigerian owned bank in the UK in 2002. 2004, the Nigerian stock exchange annual presidents merit award for the 2003 financial year. In 2005, acquires two banks- MBC international Bank ltd and FBN Merchant Bankers) ltd and increase capitalization to #25 billion. 2007, introduces the innovative finance credit administration software, being the First Bank in Africa the Pioneer the service and also establishes a global custody business, emerging as the First Nigerian owned Bank to offer such services. In 2008,. The first Nigerian Bank and indeed the Firs quoted company in the country to hit the #2 trillion market capitalization. In 2010, First Bank becomes the first organization in Nigeria to be granted notable international standardization certification: the prestigious information security management systems(ISMS) which is the world’s highest accreditation foria formation protection and security. In 2011, establishes First Bank representatives office in Abu Dubai, UAE, launches First Biometric ATM in Nigeria etc. announced the successful completion of the acquisition of ICB assets in Guinea, Gambia, Sierra Leone and Ghana in November 2013 as part of an ongoing Pan African expansion programme.

1.3 Purpose Of The Study

The major purpose of this study is to identify , evaluate and analyze the compensation policies and practices in the Nigerian Banking industry, to see how effective they are in promoting these underlisted purposes:

  1. To attract capable employees to the organization during recruitment exercise.
  2. To motivate the employees sales force towards superior performance.
  3. To retain their services over extended period of time.
  4. To ensure employee satisfaction.

1.4 Significance Of The Study

The role which compensation plays in the productivity of the employee cannot be underplayed. The banking industry should try as much as possible to attain higher organizational productivity by helping their employees to accomplish their own personal objectives . this can be met by setting a workable compensation policies and practices for the benefits of their employee. Compensations and incentives brings happiness to employees opportunity to make use of their skill, accumulate wealth, security and hep them develop feeling of equality with their mates.

In the view of contemporary utilitarian philosophies, sustainable (job) wealth, security and equality and factor s that can contribute towards happiness. So here in Nigeria, there is need to design adequate incentives strategies in the banking industry. The finding of this work will be very relevant to the Nigerian Banking Industry policy makers, mangers who need effective planning strategy, personnel managers etc.

1.5 Research Questions

The relevant research questions to be answered by research hypothesis of the study include the following:

  1. Is sales force salary commensurate with their input on the job?
  2. Has sales force compensation ever guaranteed conflict with management?
  3. Have all employees’ access to fringe benefits?
  4. Is compensation received whenever staff put in extra hours?
  5. Have staff ever compare their compensation with what their contemporary earning other banks?

1.6 Statement Of Hypothesis

  • Ho: Compensations of the sales force in First Bank Nigeria Plc, does not lead to dissonance with management.
  • Hi: Compensation of sales force in First Bank Plc. Leads to dissonance with management.

1.7 Definitions Of Some Basic Terms

Banking deals with the principles, institutions, instruments, and procedures involved in making payments of all types in our economy. It is also concerned with making available for investment, business and government money that has been saved.

Types Of Payments

I. Payments for goods and service which are bought for cash and those that are bought on credit and paid for later .

II. Payments when intangible claims to wealth, such as stocks and bonds (financial instrument) are purchased.


Industry otherwise called business organizations generally are associations of uman beings working co-operatively towards common objectives under authority and leadership.

According to Scott (1968), a financial organization is a system of coordinated activities of a group working co-operatively towards a common goal, under authority and leadership.


Compensations on its own may be defined as remuneration or reward for human services utilized in the process of production. In its broad sense, the money, goods and/or services the employer provides to the employees constitute the employee’s compensation system.

Tosi and Carrel (1982) also see reward or compensations as payments to persons such as wages salaries, pay increase, promotion increase recognition, status and other social rewards. They want further to explain that rewards also include permission to use certain organizations resources generally limited to a selected group such as access to organizations’ vehicle the guests houses etc. which means that compensations include both intrinsic and extrinsic rewards.

Organizations operate or formulate three types of compensations policies. These are basic variable, and supplementary or fringe benefits compensations policies.

Basic Compensation

That is the basic salary that is paid to a worker. This is the salary advertised by an organization during the period of recruitment. It aims at attracting workers to the organization. The major requirement of basic salaries of workers is that they must be equitable.

Variable Compensation

Variable compensation is motivational and it aims at directing a worker towards superior performance. It is used when extra performance are expected from employees example is overtime which starts at the end of the day’s work also when workers are called back during the public holidays eg. Christmas, Easter etc. extra compensation is necessary

Supplementary (Fringe Benefits)

Supplementary compensation or fringe benefits are extra payments made to workers fringe benefits can be in form of money or material eg. Medical services, Caterair services, Christmas bonus etc. the major functions of supplementary compensation is that it helps to retain employees on the job and they won’t consider looking for other jobs as alternatives when they are frustrated with the situation or the other.

The Concept Of Employer

An employer is one who purchases labour or its service at some price for the achievement of objectives and goals. An employer can be a business organization of different types; other institutions etc. there are two broad other institutions etc. there are two broad public categories of employers, the private and the public employer. The public employers include the government, business organizations of the government often called public organization in which the government shares operations with private capital.

The Concept Of Employee Of Worker

An employee or worker ids defined in the Labour Decree of 1973 as a person who has enterned into or is working under a contract service to apprenticesip with an employer whether by a way of manual labour, clerical work or otherwise and whether the contract is expressed or implied made orally or in writng and whether it is a contract of service or a contract personally to executed any work of labour.


Equity is concerned with felt justice according to natural law or right. According to nwuchekwa (1995) equity means justice and fairness.

Complete Material For The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry

Project Material Download

3,000 Naira

The Complete Material will be Sent to You in Just 2 Steps

Quick & Simple…

Step One Purchase

Make a Mobile Transfer or POS Payment of ₦3,000 to any of the Account Below

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current
Zenith BankAccount No.: 1225513212
Name: Samphina Academy
Account Type: Current

Or CLICK HERE To Pay With Debit Card

CLICK HERE To Pay With Debit Card ($15)
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey 

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  • Payment Details
  • Email Address 
  • The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry

The Complete Material Will Be Sent To Your Email Address After Receiving Your Details
T & C Apply

  Contact Our Help Desk

⚠️ Need a different topic? Perform a quick search

Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


This research material “The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”. is only providing this material “The Effects Of Motivational Policies And Practices On Sales Force In Nigeria Banking Industry” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.