THE EFFECTS OF FRINGE BENEFITS ON THE MORAL AND PERFORMANCE OF STAFF
(A CASE STUDY OF NIGERIA BOTTLING COMPANY, UGHELLI DEPOT)
CHAPTER ONE
INTRODUCTION
One of the primary objectives of any organisation is to satisfy both organisation and employees in order to motivate and inspire them to reach their common goal. Any attempt to satisfy one at the determent of the other, will result to chaos and conflict, hence achievement of set objective will be difficult to attain.
Workers performance depends on how well they are treated or motivated. If a man knows that he will be duely rewarded at the end of the month in his or her place of work, such one will surly put in all their best.  We should not expect much more from a man who is hungry and has no way of feeding himself.
In every organisation, the primary aim has to do with the improvement of employees’ efficiency. And in achieving this aim, the management must work in harmony with various groups within the organisation.
Adequate and prompt payment of basic salary as well as fringe benefits for the improvement of services must be accorded to the employees in order to advent problems.
Every organisation has its ways of providing these benefits e.g. amenities or cash etc to their workers.
Fringe benefits are very important issues, especially when a country is undergoing economic hardship. This will enable them meet their immediate and real needs because no amount of salary paid to workers will be considered adequate.                
1.1    BACKGROUND OF THE STUDY
The growth of employee’s benefits has been a common issue particularly since Second World War and apparently no end is in sight. The wide spread adoption of such  benefits as company, car housing allowance etc began during the era of paternalism, attitude to both employees and the general public towards benefits changed.
Fringe benefits may be provided by laws establishing them. In some cases, it may be fixed unilaterally by the employees in case of private enterprises or by representative. Fringe benefits are included in employees compensation cost in an organisation’s animal estimates and they are not yet offered in Nigeria organisation but with increase information and union education in the country. It is believed that they are not yet offered by the employers and will eventually be made available because it makes an employee stand longer.
There are lots of problems in fringe benefits. Some of them emanates from administering and implementing the employer. Moreso, the cost of administering fringe benefits in an organisation is meritable the management should find a better way to that.
On the other hand employees constant demand for increase on fringe benefits and threat to strike cause a lot of concern to the employer. As a result of high cost of living, owing to inflation in the country, employees are compelled to demand for supplementary compensation and basic salary incase. This is because salaries are fixed and they cannot cope with rising cost of commodities. So employers may came to the aid of these employer by reviewing the previous fringe benefits in way that the organisation will not feel the cost involved.
Implementation of fringe benefits is difficult; most organisations exploits other revenues as either paying more wages to employer and fewer benefits and reduced wages or by increasing the price of their product. Also employees could be giving the opportunity to participate in decision making process in the organisation to advice management on the type and how benefits will be granted to them to avoid much cost.
1.2    STATEMENT OF PROBLEM
The research wants to find out how the effect of fringe benefits could be improved.
Now the question is how do we resolve the conflicts emanating from the implementation and administration of fringe benefits between workers and employers.
The management of Nigeria Bottling Company, Ughelli depot is facing the problem of constant demand from workers and what should be the best method of payment to them in cost.
Some fringe benefits are paid to some categories of workers; what are the required criterials for such payment and why should there be discrimination at all?
Hence the essence of this research is looking into the problem and finding out what is wrong and ways resolving it.
1.3    PURPOSE/OBJECTIVES OF THE STUDY
This research work wants to carryout a study of the necessary improvement required for an effective administration.
The purpose of this study is to expose the importance of fringe benefits on the moral and performance of staff in Nigeria Bottling Company, Ughelli Depot.
In the course of this study, it is expected to encourage both management and employees towards achieving their objectives.
The research is as follows;
The functions of fringe benefits as a motivator?
Fringe benefits are effective to both employees and employers.
1.4    RESEARCH QUESTIONS   
In order to conduct a study on the effect of fringe benefit on the moral and performance of staff in Nigeria Bottling Company, Ughelli Depot. The following question has been formulated:
Do workers need fringe benefits?
Has fringe benefits made any difference in Nigeria Bottling Company, Ughelli Depot?
Does all organisations offer similar fringe benefits to their staffs?
Is there any need to have fringe benefit adequately?
Has fringe benefits been a conflict between the management and staffs?
1.5    SIGNIFICANCE OF STUDY
The importance of this study on effect of fringe benefits is to improve on the health, morale and performance of both staffs and employers. Moreso, it stimulates the loyalty of the organisation as a whole.
1.6    SCOPE/DELIMITATION OF THE STUDY
This is to the extent on the basis of effect of fringe benefits on moral and performance of staffs in Nigeria Bottling Company, Ughelli Depot, identifying the problems of implementing fringe benefits in the company.
1.7    LIMITATION OF STUDY  
The researcher was able to discover on his observation & findings the factors of constraints and limitations on the ways and means of how fringe benefits should be applied by an organisation, how it can be used in boosting the morals of staffs for higher productivity, have no ample of time and finance to explore other necessary avenues of other organisation.
1.8    OPERATIONAL DEFINITION OF TERMS  
Effect: The strong occurrence that fringe benefits have on duties of business administration and management.
Compensation: This refers to the act of giving towards workers performance as a means of saying a job well done.
Worker performance: The act of carrying out duties.
Paternalism: This is a system in which an employer protects the people who are employed by providing them with what they need but no freedom of choice is given in an organisation.
Worker morale: This is the amount of confidence and enthusiasm that a worker or group of workers has at a particular time.
Fringe benefits: They are the compensation made to an employee beyond the regular benefit of being paid for their work (salary or wage).
Motivation: This is an inner dime that leads to a goal directed behaviour.