THE IMPACT OF COMPENSATION ON CORPORATE PERFORMANCE - A CASE STUDY OF SOME SELECTED FIRMS

THE IMPACT OF COMPENSATION ON CORPORATE PERFORMANCE - A CASE STUDY OF SOME SELECTED FIRMS

CHAPTER ONE

INTRODUCTION

1.0 Background of the Study
According to Banjoko (2012), compensation is the centerpiece and the manifestation of an exchange relationship between the employee and the employer. The process of effectively managing any organization’s reward system is one of the most complex and problematic issues in human resources management. Given the whole ambit of human resources management, hardly is any other issue more important, relevant and crucial to an employee than what he receives in exchange for his labour and services to the organization. Rarely had any matter led to strained labour-management relations or led to violent strikes, picketing or work stoppages much more than compensation-related issues. Without money, hardly can any employee work. This is because of the benefits that money offers to the individual employee. According to Banjoko (2006), money performs several functions to an individual employee which include the following:- economic role is perceived from the point of what money can buy. An individual’s pay serves as a medium of exchange or a means for acquiring necessities, luxuries and needs for himself and his family. The size of his pay will determine how much of his economic needs he can afford to meet. For instance his pay size will determine whether he will live at Victoria Garden City or at Mushin Olosha, whether he will spend his Christmas holiday with his family at a five star hotel in Dubai or at Ajeromi Ifelodun Town Hall. Money also acts as a social classifier. It classifies individuals into social strata. The amount of an individual salary will classify somebody into income class say salary grade level 14 or salary grade level 5. It provides other roles like psychological roles, serving a tool of inducement to certain behavior as well as a weapon for punishing any deviant or unwholesome behavior or attitude on the part of the employees. Money therefore serves as a tool for inducing certain desired behavior. No wonder employees’ compensation is the heart of every employee.

According to Wardly and Hodges (2008), in this fast-paced world of commerce, sales compensation has become only more complex and critical to a business’ growth and success. Businesses that fail to put in place the appropriate incentive systems to measure and compensate individuals for their outstanding sales contributions can risk losing their top performers to competitors. On the other hand, businesses that automate their sales incentive compensation processes, thus providing visibility into critical compensation data, have a far greater opportunity to not only retain their key sales staff but also recruit valuable, new salespeople to help them drive sales.

Compensation according to (Bernadin, 2007) cited in Odunlade (2012) refers to all forms of financial returns and tangible benefits that employee receives as part of employment relationship. Compensation can be divided into two parts which include cash compensation which is the direct pay provided by employer for work performed by the employee and fringe compensation which refers to employee benefit programs. Cash compensation has two elements which include base pay and pay contingent. Base pay has to do with hourly or weekly wages plus overtime pay, shift differential and uniform allowance while pay contingent is concerned Compensation are those monetary and non monetary payments paid to employees by their employers as a result of their contributions towards organizational success.with performance allowances such as merit increases, incentive pay bonuses and gain sharing. Fringe compensation on the other hand refers to employee benefits programs. Fringe compensation also has two parts to it which are legally required benefit programs and discretional benefits, Odunlade (2012) noted.

Compensation and Corporate Performance
Some research findings have shown that high compensation management is positively related to corporate performance. According to Leslie and Oyer (2009), stronger incentives at Private Equity-backed firms mitigate agency problems and improve performance and profitability.

According to Hodges (2009) Sales incentive compensation applications help align selling processes more directly with organizational objectives and contribute greatly to improving sales performance. An optimal sales reward system encourages specific activities consistent with a firm’s overall marketing and sales force objectives and strategies. It also can be used to attract and retain competent salespeople, thereby enhancing long-term customer relationships. Further, this system allows the kind of adjustments that facilitate administration of the reward system by providing an acceptable ratio of costs and sales force output in volume, profit, or other objectives. Well articulated compensation programmes enable an organization to attract, retain, reward, and motivate skilled and well talented individuals towards achieving organization’s long-term success. Compensation is a key component of an organization’s human capital strategy, in support of corporate overall goal, and to align employee interests with shareholders.

The need to reward the employees fairly and competitively based on performance is balanced with the requirement to do so within the context of principled behavior and actions, particularly in the areas of risk, compliance, and control. Compensation contributes to the achievement of the organization’s objectives in a way that does not encourage excessive risk-taking or the violation of applicable laws, guidelines, and regulations, taking into account the capital position and economic performance of the firm over the long term.

1.2 Statement of Problems
Compensation plays important roles in the employee-employer relations. It also plays important roles in boosting employee’s level of morale which is contingent on productivity. Hardly is there any issue in industrial relations that has led to conflicts and disagreement between trade unions and management than compensation related issues popularly referred to as “butter and bread issues”. Employee’s compensation, no matter the form it takes is at the heart of every employee. This is because of the roles it plays in the life of every employee. The amount of compensation an employee receives is an indication of the value the organization places on such employee; money is also a social classifier, it classifies people into social strata in the society; employee’s compensation also determines the quality of living that can be enjoyed by such employee. Therefore, as it was noted earlier, employee’s compensation is a major determining factor in the type of industrial condition that can exist in any given organization. Compensation if not well managed can lead to serious industrial acrimony and work stoppages. Unfortunately, in most organizations, because of the divergent nature of the interest of the parties in industrial relations – employees and their trade unions and employers and their representatives in management, the spate of conflicts that have been resulting in industries have ever been on the high increase. For instance, the employees always want high remuneration, job security and few working periods. By receiving very fat salaries and wages, the more they shall be able to meet up with their needs and those of their families and also be able to attain higher social status in the society where they find themselves. Consequently, high remuneration is what is so paramount to them. The employer on the other hand wants to minimize the cost of production so that he can maximize his profit. Cost of production includes cost of raw materials, cost of labour and other overhead costs. The higher the wage (labour) rate, the higher the cost of production and invariably the lower the profit that will accrue to the employer. The employer therefore, must of necessity strive to bring down the cost of labour through whatever strategies that are at his disposal. These divergences in the interests of the parties in industrial relations have often time led to industrial conflicts and work stoppages. As noted above, compensation, if not well managed can lead to serious problems in organizations.

1.3 Aims and Objectives of the Study
The cardinal aim of this study is to find out the impact of compensation on corporate performance. Other objectives of the study are to:
i. highlight how compensation can contribute to employees’ level of productivity.
ii. identify the various forms of compensations that organizations can use to boost the employees’ working morale.
iii. find out whether employees’ prefer monetary compensations to non-monetary compensations.
iv. Identify the reasons why compensations related issues have led to serious conflicts between trade union and management in industries.

1.4 Relevant Research Questions
The following questions were asked in this study:-
i. What are the impacts of compensation on corporate performance?
ii. How can compensation contribute to employees’ level of productivity?
iii. What are the various forms of compensations that organizations use to boost the employees’ working morale?
iv. Do employees prefer monetary compensations to non-monetary compensations? v. What are the reasons why compensations related issues do lead to serious conflicts between trade union and management in industries?

1.5 Relevant Research Hypotheses
The following hypotheses were tested in this study:-
H01: Compensation does not improve corporate performance.
H02: Employees’ compensations do not increase employees’ level of productivity.
H03: Employees’ do not prefer monetary compensations to non-monetary compensations.
H04: Good organizational compensation programme does not increase employee’s level of commitment.

1.6 Significance of the Study
The roles that compensations play in attracting, retaining and motivating well skilled employees to an organization are unquantifiable. No singular factor has the effect of motivating employees to higher level of productivity than money related issues. Compensation is at the centre-point of employee-employer exchange relationship. Hardly has any other issue led to strained relationship between management and trade unions than money related issues. This study shall explore the impact of compensation on corporate performance. The researcher shall also examine how compensation can affect employees’ level of motivation and thereby influencing the overall corporate productivity. Efforts shall be geared towards highlighting the various compensation programmes being adopted among Nigerian organizations to remunerate the employees. The researcher shall also identify the reasons why compensations related issues have led to serious conflicts between trade union and management in industries and suggest approaches that can be adopted to reduce the pace of industrial conflict between labour and management. This study shall also offer suggestions to organizations on strategies that they can use to improve their future compensation management programmes. This study when completed shall be made accessible to both organizations and other interested parties by placing this project in the library and also on the internet. This study shall also serve as a useful tool for future referencing by scholars and researchers.

1.7 Scope and Limitations of the Study
The scope of this study is restricted to the impact of compensation on corporate performance, a case study of Nigerian Breweries Plc. This study examines how compensations impact on corporate performance. The researcher limits herself to examining how compensation do affect employees’ level of motivation and invariably impacting the overall corporate performance. The study also highlights the various compensation programmes being adopted among Nigerian managers to remunerate their employees. The researcher also identifies the reasons why bread and butter related issues do lead to serious strained relationship between labour and management in organizations.

As with studies of this nature, time constraint and lack of research resources in terms of money and personnel, inhibited this study. This study was further limited due to the uncooperative attitudes of the respondents who were in most instances reluctant in providing data needed for successful completion of this project just because they were skeptical about the purpose of this study irrespective of the fact that the researcher attaches a covering letter to the questionnaire explaining the purpose of the study.

1.8 Organization of the Study
This project was carried out in five chapters. Chapter one focuses on introduction under which the researcher shall treat topics like background of study, statement of problems, objectives of Studies, research questions and research hypothesis, significance of study, scope limitation of Study and definition of terms.

Chapter two focuses on literature review in which various literatures were reviewed which are works carried out by different authors and researchers relevant to the researcher’s area of study. This was presented under two headings: Theoretical Framework of the Study and Empirical framework of the Study.

Chapter three focuses on Research Methodology in which the researcher shall highlight the nature of the research method, research design to be used in this study, population, sample and sample design, research instrument to use, the reliability and validity of the research instrument, procedure for research instrument administration and method of data presentation and analysis.

Chapter four focuses on presentation and analysis of data. The various data that were gathered from the field shall be presented and later analyzed using various statistical tables, pie charts, frequency tables, chi square analytical tools. Subsequently the hypothesis earlier stated in chapter one shall be tested also in this chapter.

In chapter five, the researcher shall focus on summary, conclusions and recommendations during which she shall present detailed summary of the works to be carried out in this project. Subsequently, the researcher shall present some conclusions she shall draw from this project and shall make recommendations to Management and suggestions for further studies.

1.9 Definition of Terms
1. Employees: These are the people that work in an organization
2. Organization: This is a consciously coordinated social entity with a relatively identifiable boundary that function to achieve some goals.
3. Performance: The ability and the act of increasing in level of growth and achievement of meaningful success and adapting to circumstance through human effort.
4. Power the s the ability to control others, to hire, to fire, to determine who uses what resources. It is the tool to influence one to behave in a particular way. The purpose of power is to control and influence others to direct employees wills and to command respect.
5. Productivity: This is the ratio of output to the input of labour.
6. Compensation: This is salaries and wages that are paid to the employees as members of an organization.
7. Subordinate: A person who works under someone else. He is inferior or a junior to a person above him in the organization hierarchy.


REFERENCES
Agburu John (2012), Recent Trends in Wage and Salary Administration in Nigeria: A Synopsis on Theoretical and Empirical Challenges, International Journal of Basic and Applied Science, Vol. 01, No. 02

Banjoko Simbo A. (2012), Managing Corporate Reward Systems, Lagos: Pumark Nigeria Ltd

Bernadin, (2007) cited in Odunlade, R.O. (2012) Managing Employee Compensation and Benefits for Job Satisfaction in Libraries and Information Centres in Nigeria, Lagos: Library Philosophy and Practice, http://unllib.unl.edu/LPP

Ernst & Young Global Limited (2013), Managing global compensation Time to take control?

Fayomi, Ikeoluwapo Omolara, (2013), Monetization policy in Nigerian public service: The perspective and challenges, International Journal of Educational Research and Development Vol. 2(5), pp. 105-113, http://www.academeresearchjournals.org/journal/ijerd

Kiabel B. D. and Nwokah N. G. (2009), Boosting Revenue Generation by State Governments in Nigeria: The Tax Consultants Option Revisited, European Journal of Social Sciences – Volume 8, Number 4.

Odunlade, R.O. (2012) Managing Employee Compensation and Benefits for Job Satisfaction in Libraries and Information Centres in Nigeria, Lagos: Library Philosophy and Practice, http://unllib.unl.edu/LPP

Olatunji Eniola Sule and Aminu Sarat Iyabo (2014) Wages and Salaries Administration as Motivational Tool in Nigerian Organisation (A Case Study of Nestle Nigeria PLC), Journal of Business Theory and Practice, Vol. 2, No. 2, 2014 www.scholink.org/ojs/index.php/jbtp


INFORMATION ABOUT THIS PROJECT:-

No. of Pages	90
References	10
Project Level	B.Sc./HND
Fee	N40,000

For More Information about this project call this number 234-08028177177

For other Projects visit www.danikingconsulting.com                          

    

The Impact of Brands Promotion on Organisational Performance (A Case Study of Cadbury Nigeria Plc)

THE IMPACT OF BRANDS PROMOTION ON ORGANIZATIONAL PERFORMANCE

 (A CASE STUDY OF CADBURY NIGERIA PLC)

 

 

RESEARCH PROJECT

 

 

WRITTEN BY

YOUR NAME

 

 

PRESENTED TO THE DISTANCE LEARNING INSTITUTES, UNIVERSITY OF LAGOS, AKOKA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE (B.Sc.) BUSINESS ADMINISTRATION OF UNIVERSITY OF LAGOS

                                        

 

 

 

Nov 2017

 

 

 

CHAPTER ONE

INTRODUCTION

 

1.1 Background of the Study

Contemporary marketing calls for more than developing a good product or service, pricing it adequately, and making it available to the target customers or clients. Organizations should also promote their goods and services to present and potential customers.

The Elements of marketing promotions mix include the following:- Advertising, Sales Promotion, Personal Selling, Public Relations and Publicity. The combination of these marketing promotions elements is called Promotional Mix. In their various ways, these elements are involved in communicating information to customers, clients or potential users about goods and services on offer. Their fundamental aim is to prompt customers, clients or potential users to take positive action by placing orders, making enquiries, and purchasing on a continuous basis.

The consumer before he makes his purchase decision passes through the following stages: Awareness, Interest, Desire and Action or what we popularly refer to as the AIDA (Attention, Interest, Desire and Action) process of making a purchase. At each step in the purchase decision, the probability that a purchase will result is enhanced through the use of efficient and effective marketing promotions, and ending ultimately in the purchase of the goods or service being promoted.

Marketing Promotion is the art of transmitting information for marketing purposes. It is the process of establishing communication relationship. Under marketing communications, an organization would be aiming at a deliberately differentiated audience for a commercial purpose, and would employ such means of communication as advertising, personal selling, sales promotion, public relations and publicity.

According to Achumba (2000) a marketing promotion strategy is concerned with the role to be played by each of the promotional mix elements towards effective and efficient dissemination of information to customers, clients or potential users. As Achumba further noted, the suitability of any particular promotional mix is a function of such factors as the type of product or service (i.e. industrial or consumer), the age of the product (i.e. the time for which the product/service has been in the market and its sophistication as compared to competing products/services), and the contribution which it is felt that the other marketing variables can make to the demand-influencing process.

The underlying emphasis and consideration for management is to know the extent to which advertising, personal selling, sales promotion, public relations and publicity will help in achieving the objectives of the marketing promotions programme. Aspects to consider include the objectives of the marketing promotions programme, the budget allocation for it, and the means and tools for disseminating information to customers or clients.

1.2 Statement of Problem

Most organizations, including Cadbury Nigeria Plc has failed to realize the vital roles that marketing promotions can play towards organizational success. They failed to implement effective promotional programmes and strategies that will offer competitive advantage towards their brands and therefore enable consumers have brand preference for their products which is hard to overcome by other competitors.

In most cases, promotional programmes are. not given their right places. Promotional programmes are not usually being handled by experts. Also, in most instances, promotional programmes are not properly planned and executed. The promotional budgets are just conceived and dished out without mapping out appropriate strategies for its implementation and execution tailored towards achieving organizational success.

Advertising programmes are usually targeted at the mass audience instead of focusing on a little market segment. Advertising, sales promotional, publicity and public relations programmes’ objectives are not properly stated. In several instances, the advertising themes are not appropriately conceived. Wrong media for communicating the promotional messages are often been selected. In most cases, there is usually wrong timing of advertisement messages. The sales personnel are often not well trained to carry out their personal selling functions effectively.

The overall consequence of all these anomalies is that promotional objectives in most cases are never realized.

 1.3 The Purpose of the Study

It is against this backdrop that the study set out to

·        determine the impacts of Promotion on organizational performance,

·        determine whether advertising improve corporate and brand images.

·        ascertain which of the promotional strategies that Nigerian managers use in their organizations to achieve their marketing objectives,

·        examine ways by which promotional programmes can be made more effective,

·        identify various problems that confront Nigerian Managers in implementing effective promotional programme,

1.4. Research Questions

The following questions were asked in this study:-

1.     What are the impacts of promotion on organizational performance?

2.     What are the various promotional strategies that are open to Nigerian Managers to achieve organizational success?

3.     Which of the promotional strategies that are mostly used by Nigerian Managers in their organizations to achieve their marketing objectives?

4.     In what way(s) can promotional programmes be made more effective?

5.     What are the various problems confronting Nigerian Managers in implementing effective promotional programmes?

1.5. Research Hypotheses

1.       H₀: Marketing promotion decreases organizational profitability.

H₁   Marketing promotion increases organizational profitability.

2.       H₀: Advertising does not improve corporate and brand images.

          H_1: Advertising improves corporate and brand images.

3.       H₀: Involvement of experts in promotional programmes does not enhance the achievement of promotional objectives.

H₁: : Involvement of experts in promotional programmes do enhance the achievement of promotional objectives.

4.       H₀: Personal Selling is not more precise in making sales than other promotional mix elements

H₁: Personal Selling is more precise in making sales than other promotional mix elements,

1.6. Significance of Study

Corporate Promotional strategies is among the strategies adopted by organizations to

improve on their revenue generation and profitability. Promotional programs when 

successful shall help organizations to have easy in roads into the market place and 

therefore be able to achieve their marketing objectives. The significance of this study 

can be seen by examining  the various contributions that this study shall make to the 

users of the information of this study which include the organization that is being used 

as the case study of this work. This study shall provide reference point to students, 

marketers and researchers who are seeking avenues to improve their marketing 

promotional programmes. The findings of this study shall be hosted on the internet and 

kept in the Library to make them accessible to other users. It is hoped that both the

organization that was used as the case study of this study and the larger society

shall benefit immensely from this work.

1.7     Limitation of Study

The following limitations were encountered in the course of this study:-

·        There was also a time constraint as the researcher has to combine this project work with her school work.

·        Funds to carry out this study were in short supply.

· Furthermore, there were some of the respondents that were un co-operating irrespective of efforts that the researcher made to convince them and to get their support in obtaining information needed for this study.

·        The resource materials personnel and computer needed for data processing were also not available. Consequently, the researcher resort to using calculator and the manual process of data analysis.

 

1.8  Scope of the Study

This study focused on the Impact of Promotion on Organizational

Performance – A Case study of Cadbury Nig Plc. This study

investigated on the impact of Promotion on Organizational Performance.

1.9 Definition of Terms

Advertising:                  To make known to the public, to stress the good                            points of a product with the aim of selling the products.

Billboards:                    Billboards are large structures located in public places                            which display advertisements to passing pedestrians and                                  motorists

Celebrity branding       This is type of advertising that focuses upon using                          celebrity power, fame, and money, popularity to gain                          recognition for their products and promote specific stores or                          products

Coupons:                   A piece of paper which may be exchanged for goods or money 

 Guerrilla marketing:     A recent advertising innovation is "guerrilla marketing" which     involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand  messages, and interactive advertising where the viewer can respond to become part of the advertising message

Informercials:                An infomercial is a long-format television commercial,                              typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial”.  Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Mass Media:                  Means of communication information to a large number of people

Niche Marketing:          These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business or practice at any time, right from their home.

Personal Selling:           Personal Selling is a face-to-face oral presentation of information about products and service in a conversation with one or more buyers for the purpose of making sells.

Persuasion:                   The act of bringing someone to do or think something by arguing with them or by advising them.

Promotion:                    Advertising, or an effort to publicize and increase sales of a particular brand.

Publicity:                       Is an unpaid form of promotion appearing in the mass media. It is a non personal form of promotion which may take the form of favourable news presentation for a product or an organization

Public Relations:            Is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics. 

Sales Promotion:          Sales promotions are those marketing activities, other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness. Sales promotions include things like contests and games, sweepstakes, demonstrations, shows and expositions, product giveaways, samples coupons, loyalty programs, and discounts.

Social Network Advertising: This is online advertising with a focus on social               networking sites.

Sweepstakes:                 A gambling system in which those who take part stake money which goes to the holder of the winning ticket     

REFERENCES

1.  Asika N. (2004) Research Methodology – A Process Approach,  Lagos: Mukugamu and Brothers Enterprises, Pages 129-134

 

2.  Fagbohungbe O. (2002), Research Methods For Nigerian Tertiary                       Institutions. Lagos: Kotleb Publishers

 

The complete part of this project is available for sale

PROJECT PROPERTIES

Project Status	Available
Number of Chapters	5
Number of Pages	112
Number of Words	17,558
Number of References	24
Project Level	B.Sc.
Price	N10,000 (Non-Negotiable)  or USD50 in US Dollar
Abstract, Sample of Questionnaire are included
How to Pay for this Project . . . .Contact us on 23408028177177

 We can also assist you in writing your own project starting from sourcing for project topic to project defending. So contact us on this number for more discussion of how we can help you. 234-08028177177