IMPACT OF FRINGE BENEFITS ON EMPLOYEE PERFORMANCE
Chapter one
Introduction
1.1 Background of the Study
The cement business in Nigeria began in the 1950s with the creation of the first cement factory in Nigeria, approximately 11956, at Nkalagu, with an installed capacity of 489000 metric tonnes per year.
With the increased demand for cement in the economy, the building industry expanded, and the postwar oil boom, which improved the standard of life of the masses, led to an increase in cement demand.
To fulfil Nigeria’s national goals of self-sufficiency in industrial product supply and import substitution with this product locally, governmental and private sector organisations increased their operations aimed at increasing cement output.
Cement is in the early stages of development in Nigeria, owing to the growth of the building industry and increasing demand. A huge amount of cement was still being imported.
Between 1956 and 978, successive governments made a concerted effort to maintain the pace of growth in the construction and building industries while also saving hard-earned foreign cash derived from huge cement imports.
Against this backdrop, the Delta Cement Company Limited Ughelli was founded to capitalise on the unmet demand for cement. Between 1950 and 1962, Nigeria’s geological survey agency conducted a geographical survey in the Aladja division of Delta province, discovering two marble and limestone deposits in the Ughelli area.
These mineral deposits were assessed to be 10.23 million tonnes. A detailed chemical investigation revealed that the marble and limestone deposit, which reached to a depth of 606m, was adequate for the production of cement when properly blended with clay and literate.
A subsequent assessment reveals that adequate clay and literacy were evenly distributed locally. The western region did not attempt to export these mineral deposits, but shortly after the formation of the mind-west region in 1964
the government became eager to develop the region, now known as Delta State, and sponsored the Ughelli Cement Company Limited, which was incorporated on June 18, 1964 as a private limited liability company with an equity share capacity of 2.2 million.
This share was increased to N20 million following the growth of capacity from 50,000 tonnes per year to 950,000 tonnes per year. The company’s facility is located at km 154 Delta Eruemekowtiarun Road,
Ughelli in the Ughelli local government area of Delta State, and its requested office is at No.6 Reservation Road Press Centre Building G.R.A Delta State. Delta Cement Company Limited is owned in partnership by three investors, whose percentage equity holdings are as follows:
Delta State Government: 7–9% Edewor and Co-Limited 20% Onanife Caro and co- 1.1%
The cement plant was completed and ready for operation by 1966, but it could not be commissioned due to difficulties in installing electricity for power supply.
As this became evident, the state government instructed the ministry of transportation and work to aid in equipping the factory with its own power generators, which were made available, setting the commissioning process in motion in 1969.
The Nigerian civil war may have made it hard to recruit the services of its essential expatriate technical professionals to take on management for the additional two years without operation.
Early 1970. Jarpur Udyog, an Indian corporation, served as the factory’s management agent immediately following the civil war. The management agent began operations in March 1972.
1.2 Statement of the Research Problem
Fringe benefits are non-pay perks that employees receive, such as housing, transportation, pensions, subsidised meals, and goods discounts. They are frequently delivered as a box of products. There benefits provide additional cash to the worker and frequently meet demands and desires that were not met by salaries or wages.
This goes a long way towards improving staff morale. Most benefit plans do not allow employees to choose their desired range of perks. Benefits are typically supplied on a take-it-or-leave-it basis, with the exception of pension plans, which are mandated.
Employers of labour introduced fringe benefits with the true notion that employees were entitled to share in their organisations’ wealth. It developed as a result of the country’s economic circumstances.
In a country where the government is unable to provide for the welfare of its citizens, some organisations adopt some of the tasks that would otherwise fall to the government, which is the focus of this study.The study’s objectives
The study’s aims are:
To promote fringe benefits for workers.
To explain the management advantage inherent in fringe benefits.
To determine whether the application of fringe benefits has been optimised.
To determine the extent to which fringe benefits have helped employees provide more efficient services.
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