ABSTRACT
This work is concerned with salaries and
wages administration in Nigeria public sector, a case study of
Olamaboro Local Government Area of Kogi State. It is on this premise
that the study is set to evaluate and highlight the significances of
salaries and wages as factors towards achieving the aims and objectives
of an organization. The employers of labour are aware of the fact that
salary is also one way of motivating workers in an organization. The
research design used in this study is descriptive research method. The
sample used is 150 and the sampling technique simple random technique.
The sources of data collection used in this research are personal
interview, personal observation and the use of questionnaire. Method of
data analysis used is Chi-square formular. Based on the analysis of data
for the study, the following findings were pertinent. (1) That salary
and wages administration is an essential part of any productive
organization. (2) The researcher also found out that salary and wages
improves the performances of the employee’s in an organization. The
major conclusion of this study is that importance of salary and wages
administration in an organization cannot be overemphasized. In view of
the above, the following recommendation are. That the salary
administration policy to be implemented across board so that all the
level officers especially the junior cadre can have a sense of
belonging. The promotion policy in the public services especially in
Olamaboro local government be improved.
TABLE OF CONTENT
TITLE PAGE- 1
APPROVAL PAGE- 2
DEDICATION- 2
ACKNOWLEDGEMENT- 3
TABLE OF CONTENT- 4
1.1 Background of
the Study - - - - -
- - 1
1.2 Statement of
the Problems - - - - -
- - 3
1.3 Significance of
the study - - - - -
- - 3
1.4 Scope of the study - -
- - - - - -
4 1.5 Limitations of study - - -
- - - - - 5
1.6 Research
questions - - - - -
- - - 5
1.7 Hypothesis
- - - - - -
- - - 6
1.8 Objectives of
the study - - - - - -
- - 7
1.9 Definition of
Terms - - - - - -
- - 8
1.10 Theoretical
framework - - - - -
- - 9
CHAPTER TWO: LITERATURE REVIEW
2.1
Theoretical Review - - - - -
- - - 12
2.2 Empirical
review - - - - -
- - - 24
CHAPTER THREE
3.1 Design of
the study - - - - - -
- - 49
3.2 Area of the study - - - - - - - 50
3.3 Population of the study - - - - - - 50
3.4 Sample and Sampling Technique - - - - - 51
3.5 Instrument for data collection - - - - - 51
3.6 Validity of the Instrument - - - - - - 52
3.7 Reliability of the Instrument - - - - - 53
3.8 Method of Data Collection - - - - - - 53
3.9 Method of Data Analysis - - - - - - 53
CHAPTER FOUR: DATA PRESENTATION
4.1
Discussion of Results - - - -
- - - 55
CHAPTER FIVE: SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSION,
RECOMMENDATIONS, IMPLICATIONS AND LIMITATIONS
5.1 Summary of Findings - - - - - - 71
5.2 Conclusion - - - - - - - - - 72
5.3 Recommendations - - - - - - - - 73
5.4 Implications - - - - - - - - 75
5.5 Limitations of study - - - - - - - 75
5.6 Suggestion for further study - - - - - 76
Bibliography
- - - - - -
- - 77
Appendix - - - - - - - - 78
LIST OF TABLES
Table 4.1.1 Age Distribution of Respondents - - - - 56
Table 4.1.2 Sex Distribution of Respondents - - - - 56
Table 4.1.3 Marital Status of Respondents - - - - 57
Table 4.1.4 Religious Distribution of Respondents - - - 58
Table 4.1.5 Income Distribution of Respondents - - - - 58
Table 4.1.6 Education Level Distribution of Respondents - - 59
Table 4.1.7 Length of Service Distribution of Respondents - - 64
Table 4.1.8 Respondents view on Salary and Motivation - - 64
Table 4.1.9 Respondents view on the way the council handles salaries and wages
matter - - - - - - - 65
Table 4.1.10 respondents view on salary Increment - - - - 66
Table 4.1.11 Respondents’ views on whether salary increment boosts their morale 66
Table 4.1.12 Respondents’’ views on salary payment method - - - 67
Table 4.1.13 Respondents view on whether the method of salary
administration by management enhance productivity - - - - 68
Table 4.1.14 Respondents view on Promotion Policy - - - - 68
Table 4.1.15 Respondents views on the way to manage salary and wage in the Council 69
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organization is the most significant and
integral point of administration. Without proper organization,
administration is not possible. Thus organization is important to every
administrative action. For no administrative action can be implemented
without an organization. Therefore, no organization can exist without
people or human resources to pilot its affairs. People or human
resources have been identified as the core element in an organization.
The concept of organization has been
variously defined, for instance, Waldo (1978) defined it as “the
structure of authoritative and habitual personal interrelations in an
administrative system”. Organisation has also been defined as “social
units deliberately constructed and reconstructed to seek specific goals”
(Quoted in Makae and Pitt. 1980).
Gulick (1937) defines organization as a
formal structure of authority through which work sub-divided are
arranged, defined and coordinated for the designated objective or goal.
As it were, individuals who created an organization in order to achieve
some specific aims and objectives in turn, the organization attract
individuals who wish to become members for the purpose of their own need
for money, interest status and symbols.
Organization is said to be a holistic of
both human, capital and material resources with the aim of putting
their resources together to meet goals and objectives. Ideally an
organization should seek to accomplish all its set objectives. However,
salary is one of the first and basic fundamental human needs. This is
because the immediate problems confronting a school graduate or a new
applicant is how to secure a good job so that he can earn a living.
Therefore, salary administration, means a method and process that any
organization uses for compensating their workers for service rendered.
Salary is also a process of determining monetary reward for service
rendered by the employees to an organization. In a nutshell, salaries
and wages administration is the establishment and implementation of
sound policies and method of employee’s compensation.
On productivity, the need for
productivity improvement exists virtually in all countries of the world
whether developed or developing countries like Nigeria etc. The primary
reason for this, is precisely because of increased productivity and
performance and economic growth. Consequently, industrial development
effort will come to naught unless a nation’s productivity also improves
in the developing countries. It is generally accepted that salaries and
wages have to bear some relationship to productivity. The theory is
that wages cannot diverge significantly from productivity without
causing either inflation or unemployment. The implication is that a
dynamic economy with full employment and no inflation might be an
achievement in the performance of the organization.
1.2 STATEMENT OF THE PROBLEMS
The usually enhanced remuneration paid
to the civil servants, have been rendered inadequate by the high rates
of inflation pervading the economy over the years. The civil and public
services have witnessed a lot of neglect which has led to a drop in
salary and wages and efficiency of both civil and public servants. In
response to this, study in the public and civil services, the employers
of labour (government and private enterprises) introduce the method and
process of compensating their employees through what is called salaries
and wages administration. Though, employers will impact positively on
the employees morale and subsequently induce their performance. This
work is set to solve the problems of salaries and wages and performances
in an organization. This will go a long way in improving their
performance and hence lead to higher productivity. Promotion policy
should be awarded as at when due. From the analysis above, it shows
that if workers’ salaries and wages are equitable it will enhance the
performance of the employees. The problems of salaries and wages not
paid as at when due, salaries and wages increment etc need to be solved
through good salaries and wages policy. There should be no delay on
annual leave, maternity leave, transport allowance, housing allowances,
and medical allowances.
1.3 SIGNIFICANCE OF THE STUDY
Salaries and wages administration is one
of the newest personnel challenges in modern organization. This study
hopes to provide a comprehensive document that would discuss salaries
and wages administration in Nigeria and its impact on performance in an
organization. The research work is of a great importance to the
employers and employees in the following ways:
(1) To attract and retain sufficient and suitable employees that will help the organization to achieve its objectives.
(2) To reward employees of their efforts and commitment to the
organization.
(3) To motivate workers to a high performance.
(4) It also reveals the extent
to which salary and wages administration policy can go a long way in
improving workers’ performance in the organization and hence lead to
increased productivity.
The employees and the employers are the
beneficiaries of this study because when employees are well paid, they
tend to work well by so doing, the organization is increasing their
productivity because the employees are committed to their work.
1.4 SCOPE OF THE STUDY
The scope of the study is limited to
Olamaboro Local Government Area of Kogi State. In understanding a
research work, its scope is normally defined with respect to a
geographical and time dimension. The fixing of such boundaries is
usually resorted to due to the problems posed by the administration of a
large data. This study therefore, conforms to enhance the salaries and
wages of the worker within the organization to increase their
performance.
1.5 LIMITATIONS OF THE STUDY
The obvious limitations of time, finance
and materials such as textbooks and other resources on the researcher
makes it absolutely impossible to embark on such comprehensive study
that will cover the comparative study of the whole local government in
the state. Hence, the limitation has necessitated the choice of a case
study which is Olamaboro local government area.
Hence, the choice local government as a
case study is not arbitrarily embarked upon by the researcher. It was
expected that the study would serve as a representation of a state from
whose inductive research finding would be of general application. The
researcher hopes that other scholars interested in salaries and wages
administration will undertake a more comprehensive study to cover the
entire state in the future. Therefore, wages are regularly, hourly or
weekly payment made or received by workers for services rendered by an
employer. Hence, both salaries and wages are payment for labour
service.
1.6 RESEARCH QUESTIONS
The following research questions are posed to aid the researcher in the study.
(1) To what extent has salary and wages affected the performance of workers in an organization.
(2) Why salary and wages administration in an organization?
(3) To what extent has lack
of salary and wages administration affected workers’ performance
particularly in Olamaboro local government?
(4) Do management offer adequate salaries and wages to workers in Olamaboro local government?
(5) Are salaries and wages a motivator for performance or dissatisfier?
(6) How has salary and wages affected the improvement of the workers’ performance?
1.7 HYPOTHESES
For the purpose of this study, the following hypotheses are postulated:
(a) That the salaries and wages of the organization has no significant relationship with the workers’ performance (Ho)
That salaries and wages administration has a significant relationship with the workers’ performance in the organization (Hi)
(b) Salaries and wages is not a criteria for employees’ commitment to work (Ho)
Salaries and wages is a criteria for employees’ commitment to work (Hi)
(c) There are no inadequacies in the provision of salaries and wages of workers as at when due (Ho)
There are inadequacies in the provision of salaries and wages of workers as at when due (Hi).
(d) Salary and wages administration is
not important in an organization (Ho) Salary and wages administration
is important in an organization (Hi)
(e) Improvement of workers is not based on salaries and wages (Ho)
Improvement of workers is based on salaries and wages (Hi)
(f) There is no need for salary and wages administration in an organization (Ho)
There is need for salary and wages administration in an organization (Hi)
1.8 OBJECTIVES OF THE STUDY
It is one thing to be blessed with
abundant human resources and another to manage these resources to
achieve stated objectives. No organization can hope to move or improve
positively without the effort of her workers and as such sound salaries
or wages is a sine qua non for improved performance of workers. They
contributed in no small way towards improved performance in the
organization.
Therefore, this study among other things is aimed at achieving the following objectives:
(1) To determine the relationship between salaries and wages and workers productivity in Olamaboro local government area.
(2) To measure if a day work: earning
is directly proportional to the time worked but rates are graded. This
is mostly applied to daily paid employees.
(3) To ascertain whether salaries and wages administration boosts the performances of the workers.
(4) To identify how workers
productivity, negative attitude to work during working hours and low
payment of remuneration affect performance in Olamaboro local
government and to proffer suitable suggestions and
solutions.
(5) Fringe benefit: this is an extra
amount paid to employees to better their working conditions, it is
inform of rent supplements, transport allowances, etc. It gives
employee a desirable working conditions and it satisfies their needs.
1.9 DEFINITION OF TERMS
(1) SALARY:
a major responsibility of an organization is to make sure that its
workers’ salaries are paid as at when due. The organization has to be
certain that salaries paid can satisfy the basic physiological and
safety needs of their employees, which when satisfied, one can expect
them to put their best effort in order to achieve the organizational
objectives. Therefore, salary refers to a fixed regular payment usually
made every month or annually to the employees of an organization
concerned. Salary could be an agreed amount of money between the
employer and the employee to be paid at the end of every month in
respect of the services to be rendered. Salaries are compensation paid
based on an annual rate of pay, though it is usually paid monthly
irrespective of the number of hours worked.
(2) WAGES: It
is the reward that individual receives from an organization in exchange
of his labour. People who work in an organization are engaged in an
exchange relationship. The employees exchange the labour for financial
rewards. To the employer, the most important oblication he owes his
employees is their wages. Wages are compensation paid on hourly, daily
or weekly basis. It is usually paid to labourer, part time workers
etc. workers are paid based on the number of hours worked and not
actually on the amount of work done. Therefore, wages are regularly or
usually hourly, daily etc payment made or received for work or services
rendered by an employee.
However, both salaries and wages are payment for labour or services rendered.
(3) ADMINISTRATION: There
is no universality in defining administration. Administration is
inevitable because where policies or decision are made, they must be
applied. According to Augustus Adebayo, administration is the
organization and direction of resources both human and material for the
accomplishment of specific goal. Individual now tend to define
administration from their personal.
(4) FRINGE BENEFIT:
This is an extra amount paid to employees to better their working
conditions, it is inform of rent supplements, transport allowances,
etc. It gives employee a desirable working conditions and it satisfies
their needs.
1.10 THEORETICAL FRAMEWORK
Theoretical framework is defined as a
theoretical mirror or pillar upon which research works are seen or
built. The importance of it cannot be over emphasized. According to
Obasi (1999:9) it is a device or scheme for adopting or applying the
assumption, a theoretical framework is a way of describing, analyzing
and interpreting and predicting phenomena. It involves linking problems
under investigation to assumptions, postulation and principles of a
theory. It has the potentiality to provide the significance or
rationale of a study. Therefore it provides the overall background of
the research. The theoretical framework of this study is based on
Abraham Maslow hierarchy of needs theory (1965).
Psychological Needs: These include body’s automatic efforts to certain normal
functioning such as satisfaction or
hunger and thirst. The need for air and shelter also the need for
sleep, sensory pleasures activity and arguable sexual desire. People
concentrate on satisfying these needs before turning to higher order
needs.
Safety Needs: These
include safety and security freedom from pain or threat of physical
attack, protection from danger or deprivation, the need for orderliness.
Love Needs: These include affection, sense of belonging, social activities, and both the giving and receiving of love.
Esteem Needs: These
include both self respect and the esteem of other self respect involving
the desire for confidence, strength, independence and freedom and
achieving of esteem of other involves reputation or prestige, status,
recognition and attention.
Self Actualization: This is the development and realization of one’s potential.