This research examined the Effect of
Employee Welfare Management on Organizational Performance with special
reference to Nestle Nigeria Plc. The research adopted survey research
design. Data were gathered through primary source with the aid of a
well-structured questionnaire. Simple random sampling technique was
adopted in the selection of sample, this was used to eliminate biasness
in the selection process of the respondents.
Data garnered were presented on table
using percentage and the formulated hypotheses were analysed with the
used of Chi-square statistical method. The result of the analysis shows
that employee welfare affects organizational results. Also, welfare
benefits are the determinants of company’s success.
Based on the conclusion of the analysis recommendations were proffered to the staff and management of Nestle Nigeria Plc.
TABLE OF CONTENTS
TITLE PAGE 1
TABLE OF CONTENTS 3
CHAPTER ONE: INTRODUCTION
1.0 BACKGROUND OF THE STUDY 5
1.1 HISTORICAL BACKGROUND TO THE CASE STUDY 6
1.2 STATEMENT OF PROBLEM 8
1.3 PURPOSE OF THE STUDY 9
1.4 SIGNIFICANCE OF STUDY 9
1.5 RESEARCH QUESTIONS 10
1.6 RESEARCH HYPOTHESIS 10
1.7 METHODOLOGY OF STUDY 11
1.8 SCOPE OF THE STUDY 12
1.9 LIMITATION OF STUDY 12
1.10 DEFINITION OF TERMS 13
1.11 ORGANIZATION OF THE STUDY 14
CHAPTER TWO: LITERATURE REVIEW
2.0 OVERVIEW OF THE STUDY 16
2.1 THE MEANING OF EMPLOYEE WELFARE 16
2.2 TYPES OF EMPLOYEE WELFARE SERVICES 19
2.3 CATEGORIES OF EMPLOYEE WELFARE SERVICES 23
2.4 IMPORTANCE OF EMPLOYEE WELFARE 32
2.5 DISADVANTAGES OF EMPLOYEE WELFARE PROVISIONS 34
2.6 PRINCIPLES OF EMPLOYEE WELFARE PROGRAMMES 35
2.7 PROBLEM OF EMPLOYEE WELFARE SERVICES IN
DEVELOPED COUNTRIES 37
2.8 COMPANY PERFORMANCE 39
2.9 TYPES OF PERFORMANCE INDICATOR 40
2.10 EMPLOYEE PARTICIPATION 41
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 INTRODUCTION 43
3.1 RESEARCH DESIGN 43
3.2 SCOPE OF THE STUDY 43
3.3 RESEARCH DESIGN 40
3.4 SOURCES OF DATA COLLECTION 44
3.5 DATA ANALYSIS TECHNIQUE 45
3.6 RESTATEMENT OF HYPOTHESIS 45
3.7 POPULATION OF THE STUDY 45
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 INTRODUCTION 46
4.1 DATA ANALYSIS 46
4.2 TESTING OF HYPOTHESIS 58
4.3 DISCUSSION OF FINDINGS 73
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
5.0 INTRODUCTION 62
5.1 SUMMARY 62
5.2 FINDINGS 63
5.3 RECOMMENDATION 63
5.4 CONCLUSION 64
1.0 BACKGROUND OF THE STUDY
This research seeks to examine and
determine the relationship between employees’ welfare management and
measurement of company performance. It will also evaluate the impact of
employee welfare on what an organization achieves.
Employee welfare has become an issue for
stakeholders at work place. Employee demand better and safety working
conditions to help them satisfy their individual needs while employee
desire higher efficiency at a reduced cost. This differing view drives
the desire for this research. This project would
conclude by making or suggesting possible ways of improving company
performance through efficient welfare services.
The central thesis of this research is
how the organization evaluate and measure the value added to the
business result through efficient employee welfare management. Today’s
global business climate is marked by extreme geopolitical and economic
uncertainties. The need to remain competitive and to be the leader in
the industry, have induced businesses to ensuring that their employees
are able to respond effectively to feedbacks at marked place. These
businesses are under extreme pressure to increase revenue and grow,
while decreasing costs, optimizing resources utilization and tightening
corporate governance. Organizations know they must adapt their business
and it system to survive, innovate and grow. And, behind it all,
executives remain firmly convinced that people are their most important
From the foregoing, it follows therefore
that organizations needs to develop an approach of linking employee
welfare to organizations performance with the following objective in
- Identify and measure the factors that affect employee performance in the organization.
- Develop a repeatable measurement scheme that is, one that can be
carried out over successive time periods in a single organization to
track its performance over time.
- Establish a datable enabling company to benchmark in key human
capital development areas against their competition, and to predict
return on investment from specific human capital investment and
The core of this work would be to verify
in simple terms that the economic benefits an organization realize from
employee welfare management is in direct proportion to the quality of
the welfare provided for its employees.
1.1 HISTORICAL BACKGROUND OF THE CASE STUDY
Nestle Nigeria Plc is associated with
the Nestle Company worldwide; the simple trading operations in Nigeria
started in 1961 and have today grown into a leading food manufacturing
and marketing company. It is publicly quoted company listed since 1978
in the Nigeria Stock Exchange, 43% of its equity is owned by Nigeria
shareholders, while Nestle S. A. of Switzerland owns 57%. The Company’s
Head Office and Registered Office is located at Ilupeju, Lagos State.
There is Board of Directors responsible
for formulating policies for the attainment of the objectives and aims
of the company. The department that makes up the factory is human
resources department headed by a human resource manager. Accountant
department headed by a professional cost accountant in charge of costing
section, production department headed by production manager who is also
the production engineer. Transport and warehouse department, finance
department, security and health centre come under Administration or
The Nestle Nigeria Plc is in the Food
and Beverage industry and its objective is to satisfy the requirement of
consumers with high quality food products, mainly by processing
agricultural raw materials into products, adapted to the taste and food
habits of the consumer.
The manufacturing facilities are located
at Agbara Industrial Estate, in Ogun State. The main production areas
have been designed in line with modern manufacturing methods, which
ensure efficient production of the various products they manufacture –
infant Dietetic products, Beverages and culinary products. The company
with the assistance of its technical advisers, Nestle Ltd of Switzerland
has built and commissioned at its Agbara site, a fully integrated plant
producing concentrated saghom malt Extract. The company also produces
hydrolyzed protein mix using local raw materials.
Through all the activities enumerated
above, Nestle Nigeria Plc aims to optimize its long-term viability with
the physical and skilled human available to it high quality products,
high standard of integrity, efficient management and access to the
technical know-how of its success, continue to contribute to the
progress, prosperity and Economic development in Nigeria.
1.2 STATEMENT OF PROBLEM
Often, workers or employee are attracted
into certain organization not only because of the pay package that are
in the advert but also because of the benefits attracted to them. These
benefits usually include housing, transport and medical allowance
together with pension or retirement benefits to mention but a few.
This attraction may constitute a
consideration objective for which such individuals make up their minds
in such organization. The absence or reduction in these primary
attractions of such individuals into the organization will certainly
lower the morale as well as the efficiency of such individual’s
performance, which will in turn reflect on the organization
Many examples abound where organization
in recent times have been faced with incessant agitation from the
worker-union and staffs Association because of the inadequate employee
welfare services. Poor management of the existing ones or total
withdrawal of those benefits.
The dissatisfaction expressed by the
employee either on the provision or management of these benefits needs
proper investigation and examination in order to find lasting solution
to these numerous problems. These assertions will be examined with
respect to Nestle Nigeria Plc.
1.3 PURPOSE OF THE STUDY
The aim of this research project is as follows:
v To explain the concept of employee welfare management and organizational performance.
v To evaluate the impact of employee on the performance of an organization
v To explain the various employee welfare processes open to management
v This research aims to also provide suggestions for further studies
v It would also identify the ways of getting the best performance out of employees.
1.4 SIGNIFICANCE OF STUDY
This study would help management of the
organization appreciate the employee thereby ensuring a better employee
welfare plan, and giving participation to employees.
It would also help to suggest ways of
improving employees competency and evaluating the value added to
organizational results by providing employee welfare services.
1.5 RESEARCH QUESTIONS
It is expected that the following questions would be answered in the course of this work.
- What constitutes employee welfare processes?
- How can organization measure its success helping in view the employees constrictions?
- What are the various performance indicators?
- What does employees feel about their wages package and work environment?
- What are job satisfiers?
- How does an organization adapt to change in manufacturing schedule
when the marketing plans changes and keeping workforce happy at the same
- Do management accept idea of employees?
1.6 RESEARCH HYPOTHESIS
The following hypothesis will be tested:
Ho: employee welfare does not affect organization results.
Hi: employee welfare affects organizational results.
Ho: Welfare benefits are not the determinants of the company’s success.
Hi: Welfare benefits are the determinants of company’s success.
1.7 METHODOLOGY OF STUDY
This study will evaluate the effect of
providing welfare services to the employees on the performance of the
organization they work for.
To obtain relevant data form the
respondents. A questionnaire will be designed to help elicit information
on some welfare services provided by Nestle Nigeria Plc to its
These services include medical services,
transportation allowances, break time, housing etc, in additional,
questions on performance indicators that are affected by the welfare
services will also be included in the questionnaire.
This will include productivity, sales innovation and working capital.
The administration of the questionnaire
is expected to last about three weeks after which the returned
questionnaire shall be analyzed. Data collected from the questionnaire
will represent the observed. Using the chi-square statistical tool,
expected responses would be arrived at, thereafter; the chi-square X2 will be calculated.
To test the result is X2, a degree of freedom and at a significant level, the X2 from statistical table would be obtained and the X2 calculated from facts obtained in the questionnaire will be compared to X2 in statistical table. This comparison would help to arrive at a conclusion, upon which recommendations shall be made.
1.8 SCOPE OF THE STUDY
This project will confine itself to
Nestle Nigeria Plc. This is because Nestle Nigeria is a multinational
company employing over 300 staffs placed in different sections. It is
thus a major player in the manufacturing industries making it suitable
for this research.
1.9 LIMITATION OF STUDY
This piece of constrained with adequate
financing and time of completion, which has informed the choice of a
case study minimum of 100 research respondent and only five-year annual
reports and accounts consideration.
Furthermore, more library books did not
extensively deal on employee welfare management in relation to company
performance hence the resolve to use more of current literatures and
articles from the World Wide Web. However, inspite of the aforementioned
difficulties, this research piece would richly benefit from
consultation from the real world business executive and numerous growing
debates on how to improve employee welfare programmes which is an issue
for every organization.