ABSTRACT
The focus of this study is to take a
critical look at "how improved remuneration increment can affect
performance input or productivity" with particular reference to various
cadre of staff of Lagos State University, Ojo Campus.
The literature review of the
definition, what constitute a salary wage remunerator allowances, fringe
benefit as well as the similarities and differences, if there are any, in this
terms was embarked upon. Also, examined are the history and system of
remuneration impact of remuneration increase on workers psycho-socio-economic wellbeing,
as well as workers values.
In an attempt to critically examine,
investigate and substantiate the effect of salary/wage Increase on performance
five hypotheses were postulated. Questionnaires were designed and tested using
chi-square.
The five hypotheses tested were
upheld, as they all lend credence to the fact that enhanced remuneration has a
positive significance bearing on productivity. Based on the findings
recommendations were made and suggestions proffered.
TABLE OF CONTENTS
CHAPTER
ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study\
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope of limitations of study
1.7 Significance of the study
1.8 Definition of terms
1.9 Organisation of the study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Framework
2.3 Impact of salary increase on workers
performance
2.4 Workers values and job performance
2.5 Principles, Determinants and duties of
wages and salary administration
2.6 Theoretical framework
2.7 Historical Background of Lagos State
University
2.8 Summary of the Chapter
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design for the study
3.3 Sources of Data Collection
3.4 Instruments of Data Collection
3.5 Coding of the Instrument
3.6 Population of the Study
3.7 Sample and Sampling Procedure
3.8 Method of Data Presentation &
Analysis
3.9 Validation & reliability of the
Instruments
3.10 Research Instruments
3.11 Limitations of the Study
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Classification & Characteristics of
Responses
4.3 Presentation & Analysis of Data
According to Research Questions
4.4 Testing of Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Introduction
5.2 Summary of the Study
5.3 Conclusion
5.4 Recommendation
References
Appendix I
Appendix
II: Chi-square statistical table
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Human existence is logically based on
work. Existence relates to satisfaction of different types of materials arid
bodily needs or wants. Thus, the ultimate aim of working is to an individual
needs, which implies that benefits, monetary reward and physical environment of
work are essential to the wall being of workers. They also form parts of the
attributes used in assessing how successful or unsuccessful an individual is,
because the society appraises him in line with his life style and achievement.
Work is an essential part of human
existence, we all live to work, either for or as a source of living. Every
worker gets either a salary or wages depending on his/her type of condition on
employment. Wages and salary are often discussed in loose sense, as they are
used interchangeably. But the International Labour Organization (ILO) (1995) defined the term wage as remuneration paid by the
employer for service of hourly, daily, weekly and forth nightly
employees". On the other hand, Rao and Rao (1995) defined salary "as the remuneration paid to the
clerical, and managerial personnel employed a monthly or annual basis".
From the above, one could see that
the basic difference between wages and salaries (if any) is the kind and duration or employment.
However, the distinction between salary and wage does not seem to be valid in
these modern days of scientific human resource approach to management where all
employees are treated as human resources. Hence these two terms i.e. (salary
and wages) are capable of being mutually substituted for one another.
Coupled with this the introduction of
various types of fringe benefits (e.g. Lagos State University gives to its
workers the following allowances, Transport, Rent, Responsibility, Meal,
Entertainment, Utility, Journal, Research, Examination Supervision, Learned
Society, Hazard Teaching/Industrial Supervision call duly. leave allowance
etc.) has made it necessary to use "remuneration and compensation to
describe the total benefit accruing to an employee for his service and the
actual cost of such service to his employer.
Therefore, for the purpose of this
study, wages and salary, or remuneration shall be used interchangeably and
would be taken to mean the same thing.
One of the important duties of modern
managers is to get things done through people. They have to bring employees
into contact with the organization in such a way that the objectives of both
groups are achieved. He must be interested in the people, the work and the
achievement of assigned objectives. To be effective, he must balance his
concern for people and work. In other words, he must know how to utilize human
as well as non-human resources while translating goals into action. It is in
managing human assets that the manager's capabilities are tested fully because,
human resources are heterogeneous. The Lagos State University consist of many
different individuals each of whom has a unique personality, a combination of
different emotional responses to different stimuli and different values,
attitude, motives, mode of thought, in which has a consideration bearing in
determining what he contributes toward the success of an organization. If he is
motivated, he will work for an organisation more effectively and efficiently.
Rao and Rao (1995) asserted that the
development and administration of sound wage and salary policies are not only
important but also complex managerial functions. The complexities stem from the
fact that on the one hand, a majority of union management problems and disputes
relate to the question of wage payment and on the other, remuneration is often
one of the largest components of cost of production. Thus it influences the
survival and growth of an organisation to the greatest extent. (Rao and Rao, 1995).
The early Need theories like Applewhite
(1965) and Alderfer (1969) were of the opinion that an increase in pay cannot
satisfy all man's need. Hence, no increase in pay will motivate the individual
to work for psychological returns which are not forth coming with monetary
reward. And that salary decision made that provides one person or group of
people with more pay eliminates the possibility of some person or group getting
extra money. This property of existence needs frequently means that a person's
or group's satisfaction beyond a bare minimum depends upon the comparison of what others get in the
same situation. (Applewhite,
1965 and Alderfer, 1969).
It is also generally accepted that
wages must bear some relationship to productivity, since any divergence of the
two variable can cause either inflation of unemployment. But the most
interesting development in wage determination has been productivity standard
(job performance). The simple correlation is based on the fact that employee's
satisfaction will result in an increase in productivity or job performance and
contribution to the organization.
Ironically, the concept of
determining or measuring the level individual input or performance in an
organization has always been puzzling and very difficult to determine in more
cases, unless standards and quantifiable criteria are established. Level of commitment
or loyalty to an organization can also have effect on job performance. It is a
known fact that commitment cannot be divorced completely from workers
satisfaction. Ames (1982) in relating level of commitment to teaching was of
the view that teachers can range from low to high in their commitment to
excellence, depending on degree of motivation. This argument can be generalized
to all work and workers' satisfaction. (Ames, 1982).
Ejiogu (1985) while analyzing job
satisfaction and performance as it relates to teaching after due examination of
"satisfaction causes performance" and "performance causes
satisfaction" propositions, contended that measures of performance or
productivity are very difficult, mostly because of the extended period of the
return on investment in education and the problem in isolating the individual
teacher's contribution towards children's education. (Ejiogu,1985).
1.2 STATEMENT OF THE PROBLEM
Remuneration policies in Nigeria are
generally governed by the prevailing social, economic and political decisions.
The earliest evidence of the development income recommended the establishment
of National Wages Advisory Council to observe, co-ordinate and advice on all
aspects of the national wage policy. A landmark was reached concerning income
policy when the Second National Development Plan (1970-71), argued that the
absence of an income policy can negate other development efforts and lead to social frustrations.
The main problematic issues being
addressed in this study centres on the continued decrease in the level of
motivation and productivity in most Nigerian organizations both private and
sector/organizations. Thus, the recent development in the economy have called
for these major objectives of salary/wages package to be filed as one in
preference to the other or could the work atmosphere be smooth in the absence
of one. Therefore for any organisation to meet its aim, profit, growth and
survive there is a greater need to devote more attention to the 'formulation of
salary/wages administration policy of the organization and its impact on
employee motivation towards productivity. The essence of this is that majority of the employees are
somewhat concerned with bread and butter issues and the likes of this. However,
meanings attached to the salary/wages administration policy in an organization
are multifarious and this affect its success in achieving its goal to both the
organization and the employee, this can largely be held responsible for the low
performance or ineffectiveness of most salary/wages policies in many
organizations.
Therefore, because of the complex
nature of salary/wages administration, this research work will seek to find out
the impact of salary/wages administration on employees: motivation. It is also
aim at correcting the type of salary/wages administration mode available or
operational in Insurance Industry and effectiveness of such compensation in
keeping employees devoted to company's goals.
Above all, this study will enable us
to see what would be done to make the organisation's salary/wages
administration plan to stimulate employees to be more committed and perform
effectively for the achievement of the organizational goals. All these problems
could be attributed to the fact that the appropriate policy planners are not
well aware of the problems or they might have been misinformed. As this study
suggests recommendations as solutions to remedy some of the problems
highlighted in this section.
Workers generally need material
(monetary) incentives to perform and produce well, especially when they
perceive that increased performance will result in increased benefits. Based on this
fact, this research work will investigate the socio-economic and psychological
effects of enhanced salary structure on job performance of staff of Lagos State
University, Ojo.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is
to investigate the perceived effect of enhanced salary structure on job
performance of the staff of Lagos State University. Other specific objectives
include:
1. To investigate both academic and
non-academic staffs perceived impact of enhanced salary structure on their
socio-economic status.
2.
To investigate the extent to which the enhance
salary structure has affected staff in-put and level of commitment to job
performance.
3. To determine how enhanced salary
structure in relation to job in-put and level of commitment to work affect
staff productivity.
4.
To analyze how salary structure can
cause conflict between government and staff.
5. To examine how monetization acts as
effective tools towards salary stabilization.
1.4 RESEARCH QUESTIONS
1.
What are the effects of effects of
enhanced salary structure
on job performance?
2. How do the University staff perceive
enhanced salary structure in relation to their socio-economic status?
3.
To what extent has enhanced salary
structure affected staff input and level of commitment to job performance?
4. Can effective salary structure cause
conflict between government and staff?
5.
Can concept of monetization acts as
effective tools towards salary stabilization?
1.5 RESEARCH HYPOTHESES
1. Ho: There is no significant indicator
that enhanced salary structure is a motivator of job performance.
H1: There is significant
indicator that enhanced salary structure is a motivator of job performance.
2. Ho: There is no significant relationship
between staff perceived effects of enhanced salary structure and socio-economic
status.
H1: There is significant
relationship between staff perceived effects of enhanced salary structure and
socio-economic status.
3. Ho: There is no significant relationship
between staff perceived effects of enhanced salary structure on input and level
of commitment to job performance.
H1: There is significant
relationship between staff perceived effects of enhanced salary structure on
input and level of commitment to job performance.
4. Ho: There is no correlation between
salary structure and conflict between government and staff.
H1: There is correlation
between salary structure and conflict between government and staff.
5. Ho: There is no significant relationship
between the concept of monetization acts as effective tools towards salary
stabilization.
H1: There is significant
relation between the concept of monetization and salary stabilization.
1.6 SCOPE AND LIMITATIONS OF STUDY
The study is limited to Lagos State
University, Ojo, where the researcher have easy interpersonal relationship with
both academic and non-academic staff and easy access to records (salary
schedules) of staff.
Although, to greater extent, the
study can be generalized to other universities, inspite of differences in geographical location, since they
all operated similar salary structure. Also, the time delimitation of these
studies will be between 2004 to 2009 i.e. 5 years.
It would be fallacious to claim that
the research will be constraints free. The
research project will be limited to several constraints importantly amongst
are;
1.
Time factor: The time duration will
not be enough to collect and collate more past studies on the topic for
evaluation, so as to give more information on the topics.
2.
Financial Constraints: The high cost of materials
will definitely restrain the researcher from testing more models, which will
further enhance the results to be derived from the study.
3. The
problem of inadequate materials on the topics.
4. The problem of inadequate response from
the respondents, and other limitation that comes in forms of simultaneous
problem, which affects variable to be used in the study.
1.7 SIGNIFICANCE
OF THE STUDY
It is hoped that the knowledge gained
from' the study will help employer of labour, most especially state and federal
governments in anticipating that workers salary and other fringe benefits are
essential motivating variables which affects job performance. The research
findings should also help administrators and employer of labour to know that
employees have means of comparing their inputs/effort to what they receive in
form of reward in relation to others in same situation.
The information provided in the study
may also persuade governments and other employers of labour to understand that
financial reward does not only affects job performance, but alleviate undue
anxiety among workers in attending to their various socio-economic problems.
1.8 DEFINITION OF TERMS
I this section, attempt is made to
operationalise some concepts relevant to the study.
Wage: refers to the remuneration paid by
the employer for the services of hourly, daily, weekly and fortnightly employees.
Salary: refers to the remuneration paid to
the clerical and managerial personnel employed on, monthly or annual basics.
Minimum Wage: In this study refers to the amount or
remuneration which may be sufficient to enable a worker to live in reasonable
comfort, having regard to all obligations to which an average worker would
ordinarily be subjected to.
Wage Differentials: is a kind variation existing among
workers working in the same unit, doing different units, occupations, regions
and the like.
Job Evaluation: in
this study refers to process of determining the relative worth of jobs, ranking
and grading them by comparing the duties responsibilities, requirements like
skill, knowledge of a job other jobs, with a view to fixing compensation payable
to concerned job holder.
Performance: Performance means the process or act
of performing a task or job and how well or badly it is done.
Motivation:
This is the force that energizes
behaviour or gives direction to behaviour (Fagbemi, A 2006:197).
Conflict: This is a state of disagreement
between two or more people or groups of people. It could also be seen as a
misconception of issues among individuals, -groups or communities in a given
society.
Socio-economic Status: This can be described as the state of
a person within the society. It could also be seen as the social status i.e
one's economic and social stand either as a commoner or as a rich man.
1.9 ORGANISATION OF THE STUDY
Chapter One, which is the
introductory part, gives among other things, the background to the study. It
maintains that many workers are dissatisfied with their jobs because of the
salary/wages they are paid and in this regards it is affecting their job
performance negatively.
Chapter two, deals with the
literature review. Here, the characteristics and structure as well as the
functions of a typical organization are reviewed (Lagos State University). Then
the salary structures of the organization were outlined.
Chapter Three, describes the research
method used. In this chapter, the research design adopted, characteristics of
the study population, sample and sampling techniques, data collection
instruments and administration, techniques of data analysis and limitations of
the methodology were discussed.
Chapter Four, the data collected from
120 staff of Lagos State University are presented and analyzed. This chapter
treats the respondents characteristics, data presentation and analysis
according to research questions and hypotheses, as well as discussion of
findings.
Chapter Five, Summarizes the whole
study and the findings. It bears the conclusions and recommendations.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment