THE EFFECT OF SALARY INCREASE ON THE PRODUCTIVITY OF WORKERS (A STUDY OF NIGERIA DISTILLERIES LIMITED, OTA)

ABSTRACT

This research work focuses on the role of salary increase as a means of increasing productivity of workers particularly in NDL.

The need for salary increase, qualities of a good salary increase, different types of incentive scheme were highlighted.  Questionnaires were drawn up and administered on the worker in other to know and examine the cause of low productivity of workers.

The findings indicate that there are shortages of certain vital incentives such as lack of participative management, provision of salary upfront and granting of loan, periodic review of salary etc.

This work then recommend that the provision of upfront salary, periodic review of salary, participative management amongst all should be adopted in the organisation.

Conclusively, the use of salary increment serves as a catalyst for productivity and also the provision of a conducive atmosphere / environment is also necessary for best job performance.

TABLE OF CONTENTS

                                                                                                Pages

Title Page                                                                                 i

Certification                                                                              ii

Dedication                                                                                iii

Preface                                                                                     iv

Acknowledgment                                                                      v

Declaration                                                                               vi

Table of Content                                                                       vii

CHAPTER ONE

1.0     Introduction                                                                    1       

1.1     Problem Analysis                                                             2

1.2     Purpose of the study                                                       3

1.3     Research questions                                                         4

1.4     Research hypothesis                                                       4

1.5     Definition of terms                                                          5

1.6     Limitation of the study                                                    6

1.7     Significance of the study                                                 6

CHAPTER TWO

 2.0    Introduction                                                                    8

2.1     Literature Review                                                            9

CHAPTER THREE

3.0         Introduction                                                                    32

3.1     Sources of data                                                               32

3.2     Research population                                                        33

3.3     Sample, sample procedures and sample size                    33

3.4     Research instrument                                                       34

3.5     Hypothesis formulation                                                   35

3.6     Instrument of data analysis                                             35

3.7     Research design                                                              36

3.8     Instrument of Data analysed                                           36

CHAPTER FOUR

4.0     Data presentation and Analysis                                       42

4.1     Interpretation of data                                                      66

CHAPTER FIVE

5.0     Summary                                                                        72

5.1     Conclusion                                                                      73

5.2     Recommendations and area of further research               76

BIBLIOGRAPHY                                                                     79

CHAPTER ONE

1.0    INTRODUCTION

The word salary increase in simple English context means to add to what an employee earns in terms of monetary aspect.

Ubeku, A.K in his book “personnel management in Nigeria” sees the term “INCENTIVE” as wage payment, overall salary increase plans, which tie increase in salary directly or indirectly to productivity standard.

The above definition denotes that salary increase is an energizer that propels the employees to be more productive. This means to say, in achieving organizational goals and objective salary increase becomes an indispensable factor in management.

Management of organisation having been worried over low productivity levels, the non – chalant attitude exhibited by workers to the attainment of organisational goals then thought of how to increase the depreciating standards of production by introducing incentives of which salary increament happens to be part of. Every human being needs satisfaction and as a result reacts positively to anything that could induce him/her to perform better in a particular job situation. It is the responsibility of the management of any organisation to build into system those factors that will influence the workforce to contribute effectively and efficiently as much as possible for the realization of the corporate objective.

This can only be achievable through mutual understanding and implementation of inspiring incentive scheme of which the salary technique can be adopted.

1.1       PROBLEM ANALYSIS

Management as a body of team of policy and decision makers owes a lot to the business as an entity. Their sensitivity to the needs and aspiration of their workers at a given period of time and finding lasting solutions to these needs. It has been stated and noted that the success and growth of any business depends largely on its workforce needs and projections and the managements ability to appreciate such. It is on this premised therefore, that this study seeks to bridge the gap created by lack of salary increase in organisation and finding solution for maximum productivity.

Main focus of this study is as summarized below;

(a)         To analyse critically the purpose and usefulness of incentives policy / salary increase policy.

(b)         Lack of adequate increase in salary as it affect productivity.

(c)         Possible solutions through the use of salary increase to increase productivity.

1.2       PURPOSE OF THE STUDY

The purpose of this study is to harness the significant impact of the effect of salary increase as a means of increasing on the productivity of workers and the resultant effect on the organisational goals and objectives. To examine the effect of lack of increase in salary of workers, the general attitude to work vice-visa how productivity could be improved upon through the application of salary increase and the benefits that can be derived by both the employees and the employers and subsequently.

Its resultant effect on the overall productivity.

1.3    SIGNIFICANCE OF THE STUDY

Organisations are set up with the aim of achieving certain objectives. In view of this study, entrepreneurs, management will benefit from this study.

1.4       RESEARCH QUESTIONS

1)           Are there any kind of incentives scheme for the workers in the organisation?

2)           Is there any need for the organisation to give something extra to their workers in other to induce them to perform better in their work station?

3)           Will adequate salary increase make the workers put in their best performance.

4)           Will employees be more productive when they are highly remunerated in their work place?

5)           Will good incentive through salary increase enhance efficient performance of workers ranging from punctuality to dedication to service?

6)           Should the management review financial incentives periodically to reflect the standard cost of living?

1.5       RESEARCH HYPOTHESIS

The following hypothesis is to be derived from the understanding of the significance of the subject matter in relation to higher productivity and analysis of investigations to be conducted through questionnaire on it to classify the study.

A)           That adequate salary increase will make employees to put in their best performance at work.

B)           That the creation of attractive environment, which is conducive to working develops employees interest in higher productivity.

C)           That when employees experience satisfaction in their work, they are more productive

D)          That good salary increase will result in efficient performance of workers ranging from punctuality to dedication to service.

1.6    DEFINITION OF TERMS

In the course of writing this project, some terms will be used to clarify some statements of fact, they are;

A        FEAT: This is used to represent the organisation achievement.

B        INCENTIVE:- These are elements, factor schemes designed to motivate workers for greater performance so as to achieve the corporate objective of the entire organisation.

C        NEEDS:- This are the basic things an individual aspires to satisfy

D       WORKFORCE:- Employees who are gainfully employed by the organisation

E        OVERHEAD:- This represents the total cost of production (expenditure) of the organisation.

F        BEHAVIOUR:- This is used to described the attitude on individual manifestation at the job situation

G       DRIVE:- Things that urges an individual to do something or react positively or negatively.

1.7    LIMITATION OF THE STUDY

In the course of the study we shall limit our study to the below;

1             Effect of salary increase in an organisation

2             How salary increase scheme are given to various levels of staff.

3             Management attitude towards salary increase policy

4             Recommendation for implementation with a view to increasing productivity.

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