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.
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