CHAPTER ONE

INTRODUCTION

1.1 Background to the Study.

The business world is gradually changing into a complex sector of the society and there are many problems in the business sector, but that which involves reward to workers is difficult to understand. The question now is: how long will the worker work for just salaries? Only bad labour relations and reward system in an organisation have negative and reward system in an organisation have negative impact on the workers morale as well as on productivity.

Studies have shown that there are several benefit include workers motivation and increased productivity. If workers are well motivated, they work with high morale and put in their best. But if they are under appreciated, their productivity is bound to drop.

An example, a poor and un-motivated worker will not, no matter how information conscious he may be, spend the little money at his disposal on newspaper which enhances the productivity of the organisation. An organisation with un-motivated workforce does not expect the employee to produce good quality products and service. Most micro-finance banks reward system is very poor. In many cases the workers are used and abused, harassed, threatened and often discarded without proper reward and terminal benefit.