Impact Of Compensation In Reducing Employee Benefits In CIH Bank

Question: Discuss about the Impact Of Compensation Benefits In Reducing Employee Turnover In CIH Bank Casablanca Morocco. Answer: Introduction Background and Statement of the problem The CIH (Crdit immobilier et htelierBank) has for a long period experienced peace with its employee. It has been in a position to provide very nice services to the workers. For the past one decade, the CIH Bank has been able to retain its employees with certainty. According to, The Network of Moroccan Listed Companies, (2016), the bank is rated top ten in Morocco banking services. The organization ofmanagement team starts from the top management, there is also the middle and the low management. The topmanagement has enjoyed the Banks services than any other department. The managers at this level like the CEOs can praise the services offered by the bank. Their compensation benefits match their expectations. As we go down the management levels, the middle managers in CIH Bank has less employee compensation benefits. 12.5% of the middle level management are still not contented. When we come to the low management, things are worse. The lower management are always complaining of their compensation benefits (Hancock et al., 2013, p.273). Though they are there, there is nobody to offer them. The top management has violated the psychological contract of their employee. This has resulted to employee turnover in the CIH Bank. Every year, there is recruitment of very many employees in CIH Bank. Many of the recruited personnel are from the low management. After the turn over, the management always keep on recruiting a new work force in the lower management. Instead of retaining the old employee, they overlook their compensation benefits and thus, employee decides to quit to another organization (Moore and Viscusi, 2014, p.41). Low management turnover in the bank has caused slow development of the bank. Low man agent are the main implementers of all the decisions that are passed from the top management. When it is experienced that, only the low management team are not satisfied with the working conditions, appraising th em with compensation benefits would reduce the employee turnover in CIH Bank, Morocco. Justification of the research The research will be of much benefit to the CIH Bank and the management at large as it will be investigating to give concrete findings on how employee turnover can be minimized by compensation benefits to the employee. The scholars also who will come across this research will be able to develop their managerial skills and also apply the research technique portrayed in this research. Purpose of the Research The research will be seeking to collect information about the compensation benefits offered to employees in CIH Bank. It will also purpose to evaluate the cases of employee turnover in CIH Bank and use the data analytically to explain the impact of compensation benefits I reducing the employee turnover. Research Questions The research will be answering the following questions: What are the impacts of compensation benefits in reducing employee turnover in CIH Bank? What are the possible methods that the Bank top managers can use in compensating employee in CIH Bank? Research Hypothesis Compensation benefits helps in reducing employee turnover Providing the employee with compensation benefits increases the productivity of the employee in an organization. Research Objectives The research will seek to: Investigate the impacts of compensation benefits in reducing employee turnover in CIH Bank, Morocco. Evaluating the possible methods usable by the bank top managers in compensating employee in CIH Bank. Evaluate the performance and productivity level of a well-compensated employee. Literature Review Compensation and reward program are items that fits the employee in an organization. It may include the salary that one is given after the agreed time and may also mean the direct and indirect, or the intrinsic and extrinsic rewards that the employer is given as appraisals for motivating them. Any organization need to develop the program so that the employer may be in a position to know what exactly would happen to him/her if he did something recommendable. For instance, the employee on the ground can be rewarded after a certain level of sales for the company and thus, they e=will be motivated to work extra hard for more reward (Taylor, 2016, p.166). According McDonald (2008) and the system theory of management, the organization acts like a system. The system, which is the organization, has got many parts. The defined parts functions separately but with a single and specific objective. The organizations., for instance a banking organization like CIH Bank has got many departments. The departments are the parts of the system. Each part should harmonize so that the results may be clear at the end. However, when the parts of the systems are ignored, there results discord and many at times, there results to employee turnover in the organization. McDonald says that, when one organizational unit is neglected or weakened, the whole system is likely to collapse (Cerasoli, Nicklin and Ford, 2014, p.980). Mostly, the low management are forgotten, not rewarded for achievements, not compensated for good work, sometimes their basic salary comes very late while the top management received it earlier and all becomes unpleasant to the employee. T urnover follows and the company loses its service power. According to Deci and Ryans theory of motivation, they propose two types of motivation, Intrinsic and extrinsic motivation. Compensation benefits and rewards falls under extrinsic motivation (Deci and Ryan, 2014, p.53). An employees actions are influenced by some string desires to attain or achieve something when they are sure of a tangible reward (Olafsen et al., 2015, p.447). It suggests that once the employer is sure of compensation benefits, he will be in a position to perform better and make the reward once again. The research therefore, relates all these concepts from existing literature to investigate employee turnover in CIH Bank as a result of poor, inadequate or no compensation. The theories there above will be related to actual data collected and the actual cases of the research for validity and accuracy in application. Research Methodology: Theoretical framework The theories for the research will be the theory of motivation by Deci and Ryan (2012) on intrinsic and extrinsic theory. It will assist to explain the impact of compensation of reducing turnover of employee. The management theories will also be used in the research. More specifically, the system theory of management and the X and Y theory. Research Design The research will involve descriptive survey. It will involve interviewing and administration of questionnaires to the samples which will be selected for the research. The survey will be usable to collect quantifiable data from the intended sample. The research will also use simple descriptive design. The design will be used to establish the relationship between the variables for the research Gollenia, 2016, P.103). Target population and sampling technique The research will be carried to the population in CIH Bank, Morocco. The samples will be selected by purposive sampling. The researcher will use the samples selected from the basis of the information needed. In this case, the researcher will use approximately 30 samples. Fifteen (15) of these samples will be obtained from the low management, then ten of the samples will be selected from the middle management and five of the samples will be obtained from the top management. The selected samples will be the representatives of the whole banking organization. Data Collection and Analysis procedure The data will be collected through the use of questionnaires. The questionnaire will include both the open headed items and closed ended items. The open headed questions will give the respondent a chance to express themselves fully without the questionnaire limitations. Some closed ended questions are few in number and the respondent is free to fill in any of them. The researcher will also employ interviews. A third of each sample group will be asked to be interviewed by the researcher. Data will be analyzed by quantitative technique. The collected data from the questionnaires will need to be quantified and analyzed by using a statistical tool, most probably the SPSS software. Access to data and ethical issues Prior, I will first seek the letter of good conduct from a certified body and from my school and inform the bank management a month earlier. It will help them to sit and discuss my request and give me a positive feedback. During the research, I will assure the respondents to my research tools that all the information that they will be giving to me is safe and confidential. It will help avoid suspicion from licking out the information. I will consider personal discipline, through someones presentation, I will be received. I will observe good communication ques and etiquette. I will avoid imposing questions to the respondent if they will not be willing to answer a certain question. Finally, I will avoid being biased in my research, from sampling, data collection and data analysis. Timescale WEEKS ACTIVITY ACTIVITIES ALLOCATED PER WEEK 1 2 3 4 5 6 7 8 Introduction: Drafting of the background of CIH Bank. Reading the existing literature Drafting and preparing the research tools Carrying out of the Field Research Data Analysis and Interpretation Research Write up and submission References Arekar, K., Jain, R., Desphande, B. and Sherin, P., 2016. Relationship between individual and structural determinants on job satisfactionanalysis of employee turnover in the Indian context. The Journal of Developing Areas, 50(6), pp.387-398. Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA. Cerasoli, C.P., Nicklin, J.M. and Ford, M.T., 2014. Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological bulletin, 140(4), p.980. Deci, E.L. and Ryan, R.M., 2014. Autonomy and need satisfaction in close relationships: Relationships motivation theory. 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