The Effect Of Employees’ Welfare Management On Organizational Performance

Project and Seminar Material for Industrial Relations and Personnel Management

The Effect Of Employees’ Welfare Management On Organizational Performance


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.

Chapter One


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 asset.

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 mind:

  1. Identify and measure the factors that affect employee performance in the organization.
  2. 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.
  3. 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 interventions.

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 personnel department.

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 productivity.

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:

  1. To explain the concept of employee welfare management and organizational performance.
  2. To evaluate the impact of employee on the performance of an organization
  3. To explain the various employee welfare processes open to management
  4. This research aims to also provide suggestions for further studies
  5. 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.

  1. What constitutes employee welfare processes?
  2. How can organization measure its success helping in view the employees constrictions?
  3. What are the various performance indicators?
  4. What does employees feel about their wages package and work environment?
  5. What are job satisfiers?
  6. How does an organization adapt to change in manufacturing schedule when the marketing plans changes and keeping workforce happy at the same time?
  7. Do management accept idea of employees?

1.6 Research Hypothesis

The following hypothesis will be tested:

Hypothesis I:
  • Ho; employee welfare does not affect organization results.
  • Hi; employee welfare affects organizational results.
Hypothesis II
  • 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 workers.

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 X2from 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.

1.10 Definition Of Terms

Human Capital:

This is the set of skills which an employee acquires on the job, through training and experience, and which increase that employee’s value in the market place.



This involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment, conveying the features, advantages and benefits of a product or service to the lead, closing the sale (or coming to agreement on pricing and services).

(free management library online).

Product quality:

A product or process that is reliable, and that performs its intended function is said to be a quality products.

Employee Relations:

It may be defined as those policies and practices, which are concerned with the management and regulation of relationship between the organization, the individual staff member, and groups of staff within the working environment.

(University of Cape-Town MBA).

Performance Indicators:

Refer to tools or parameters for measuring growth, success or failures.

Return on Investment:

A measure of a corporation’s profitability, equal to a fiscal year’s income divided by common stock and preferred stock equity plus long term debt. It measures how effectively the firm uses its capital to generate profit, the higher the ROI, the better.

Employee Benefits:

A non-salary remuneration and form of insurance, pension, compensated time not worked, or other programs severally entitled by virtue of employment status.

1.11 Organization Of The Study

There is the intense need for efficient management of employee welfare programme if an organization is to pros1per. This research attempts to find out the contribution of effectively and efficiently managing employee welfare services on the performance of any business organization.

To conveniently do so, this work is divided into five chapters, the first chapter deals with the introduction of the study including statement of problems, purpose of the study, significance of the study, hypothesis, definition of terms and limitation of study, chapter two is concerned with the review of related literature while chapter three deals with the method and procedure of the research.

Chapter four tries to appraise the information obtained from chapter three, by presenting and analyzing the data.

Finally, chapter five attempts to summarize the findings of the research, state the recommendations on issues raised and drawn conclusion on the issues and the study in general, followed by bibliography appendices.

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