Effect Of Salaries And Wages Administration On Employee’s Attitude To Work In An Organization

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Effect Of Salaries And Wages Administration On Employee’s Attitude To Work In An Organization


Abstract


This study examined the effect of wages and salary administration employee’s attitude in organizations using First bank PLC as case study. As a descriptive survey design, an item structured instrument developed to reflect the modified 5 points Likert Scale format was used to elicit information from the respondents. The population consisted of 2951 Employees from which a sample of 557 respondents was selected, using a formula developed by Borg and Gall (1973). Whereas percentages and mean ratings were used to answer the research questions, Chi-square (x2) test of independence and T- test for independent large sample, (n> 30) were used to test the hypotheses. The study revealed that employees need effective salary and wages administration to achieve high productivity in the work. The study found also that poor leadership and lack of political will were the major reasons for not fully implementing the adequate wage policy by some state bank managements including First Bank PLC. The study recommends that the bank management should take the issue of wages and salary administration serious by giving workers a living wage to enable them take care of their basic needs and be better positioned for enhanced productivity and output level in work.


Chapter One


Introduction

1.1 Background of the Study

Salaries and wages administration is an essential factor that determine to success and failure of any organization. This system of motivating workers is very important for every organization to take proper consideration through salaries and wages as a factor of motivation can work to some extent, which means they have limitation in motivating workers to effectively if when they are not apply in proper way.

According to Edward Flippo (2002) salaries and wages administration is one of the essential ways of managing an organizations employees (which is called personal management) which involves planning, organizing, directing and Controlling of the procurement, development compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.

Wayne F. Cascio (2000) states that ‘compensation which involves direct cash payment, indirect payments in the form of employees benefits and incentives to motivates employees to strive for higher level of productivity is what is meant by salaries and wages. And it is a critical component of the employment relationship.A good compensation package (salaries and wages) is a good motivator; hence, the primary responsibility of manager is to ensure that the company’s employees are well paid.According to John Wales (2007), money as a factor which serves as a potential dissatisfies if not present in an appropriate quantity but starting us on essential satisfier or positive motivation. It is apply in an appropriate way. Therefore this study is basically carried out to examine factors that make workers to be committed to their work while others are not.

Human resources management involves a series of activities in which the job, the individual and change. It is oriented towards efficiency and the welding of people in effective organizations for the pursuit of abstract organizational.

Objectives some of the major activities of human resources management are: recruitment, selection, placement, wages and salaries, staff development e.t.c in business the “salaries” has come to be associated with white-collar administrative staff who are not paid by the how and the word “wages mainly with manual workers, who are paid by the how. Salaries and wages are compensation of workers for the jobs they have dome or service rendered. Salaries and wages are supposed to motivate workers, which is not applicable in all cases despite the fact that some employees are paid and even heavily paid, they still behave anyhow at work while others that are not paid as much, yet have a good attitude to work. This study is purposely to examine how salaries and wages affect employee’s attitude to work in an organization.


1.2 Statement of the Problem

Lack of understanding of employee’s behaviour at work and their attitude to such work has posed a number of problems to the society. Most managers and employees believe that the important thing that can motivate the workers to work is to pay their salaries and wages in time. Another problem that people said to understanding is that there is what is said to understand is that there is what is called intrinsic reward that motivate employees to work, rather the salaries and wages they are being paid. Lack of understanding that employees are mostly concerned with wages and salaries (extrinsic reward) as well as job satisfaction (intrinsic reward) and not only how far the salaries and wages can affect employee’s attitude. The reasons for above problems have made salaries and wages administration a researchable problem in our society.


1.3 Research Questions

  1. To what extent has salary and wages affected the performance of workers in an organization.
  2. Can salaries and wages alone satisfy employees in an organization?
  3. Do salaries can motivate employees more that intrinsic rewards?
  4. To what extent is the effect of salaries and wages administration affect employees’ attitude?
  5. How has salary and wages affected the improvement of the workers’ performance?

1.4 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 an organization.
  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. 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.

1.5 Research Hypotheses

For the purpose of this study, the following hypotheses are postulated:

  1. That the salaries and wages of the organization has no significant relationship with the employee attitude (Ho)
    That salaries and wages administration has a significant relationship with the employee attitude in the organization (Hi)
  2. 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).
  3. Salary and wages administration is not important in an organization (Ho)
    Salary and wages administration is important in an organization (Hi)
  4. Improvement of workers is not based on salaries and wages (Ho)
    Improvement of workers is based on salaries and wages (Hi)
  5. 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)

1.6 Significance of the Study

At the end of this study, the researcher hopes that, those who come across this research work will be able to understand the need for salaries and wages administration and their place in the organization. Business organizations students and employees of labour may also find the recommendation at the end of the study useful, if they can strictly adhered to it.


1.7 Limitation of the Study

This researcher work suffers a lot of limitation in the areas of fiancé, absence from lectures, time factors, inadequate text books and relunctancy of the respondents to give relevant information.


1.8 Operationalization

The aim of this research work is to expand the scope of knowledge about the possibility of measuring the positive effect of salaries and wages administration on employee’s attitude in an organization. This research work is going to be conducted in first bank on Nigeria. The research model will be described by assuming salaries and wages administration as the independent variable and employee’s attitude as the dependent variable. This can be mathematically written in a linear equation model as follows: Y=f (x), where y represent employee’s attitudes and x represent salaries and wages administration.


1.9 Definition of Terms

1. Effects:

The way in which an event, action or person changes something.

2. Salary:

Money that someone is paid for service rendered according to number of hour, days, week or monthly.

3. Wages:

Money that someone earn, that is paid according to numbers of hours, days, or weeks that he worked.

4. Organization:

A group of people that come together for a particular purpose or group of people that form a particular aim.

5. Administration:

All the activities that are involved in managing, organizing and controlling the affairs of company institution and organization.

6. Employees:

These are set of people who do regular work or occupation and are paid wages or salaries in return.

7. Attitude to Work:

Way of feeling, thinking or behaving towards work.

8. Extrinsic Reward:

Reward that come from outside. It can be salaries or Wages

9. Intrinsic Reward:

This is reward that comes from within the employ, such ads job satisfaction.

10. Payment:

This is a reward payable to employee according to performance.

11. Special Allowance:

This is payment made to employ who displays high skills or who stayed for along period in the company


Chapter Five


Conclusion and Recommendations

5.1. Conclusion

Wage administration is an aspect of industrial relations. It is one of the many areas of interaction between workers and bank management or employees and management. Therefore cordial relationship must exist between bank management and the workers for organizational goals to be realized. The employees in First Bank PLC are not paid living wages and as a result, many engage in other means of earning extra income for lively hood and sustenance. Poor salaries and wages contribute to corruption and un-productivities. Reasonable evidence exist in literature that adequate and regular salary are some of the motivational factors that employees need to be efficient and productive. Unfortunately, experience from the field (respondent opinion) did not suggest that employee in the state are so encouraged. In fact inefficiency, unproductiveness and corrupt practices observable in the system were necessitated by poor wage administration within the period under study.

The excuse that non-implementation of adequate wage policy is as a result of bank management’s learn resources is unfounded. Bank management has the capacity to implement the policy but the problem is weak leadership and misplacement of priority. Other problems leading to non-implementation of adequate wage are corruption, over bloated work force which leads to low productivity and lack of political will to improve condition of service for workers.


5.2 Recommendations

Based on the findings and conclusion made from this study, the following recommendations were made:
The bank management should endavour to identify the needs of the worker and address them promptly so that the employee can be at their best all the times. This is in line with Maslow’s theory of Hierarchy of needs, human beings have many needs that are different in nature, ranging from biological need at lower level to psychological need at the upper level.

The success or failure of any bank management is a function of its relationship with the employees. In the light of this, the bank management should give priority to the welfare of those in its employment because they can make or move bank management programmes.

Wages administration in the state should be seen as a very serious issue by the bank management. In fact, bank management should set-up a standing-committee for salaries and wages review at regular intervals of not more than five years. This will take care of effect of inflation on workers salary and as well reflect the real economic realities in the economy.

The bank management should maintain optimal size of workforce. This they can do by stopping the politically motivated employment which has encouraged redundancy and low productivity. Instead, the bank management should pay unemployment allowance to the unemployed while creating enabling environment for the private sector to thrive and give employment to the people.

Finally, bank management should always enhance the salary of employees so that their take-home pay can provide at least their basic needs so as to dissuade the few corrupt ones from engaging on sharp practices as a result of insecurity arising from such inadequate salary. It is believed that the nonchalance and laxity currently being observed among some employees is as a result of loss of confidence in the bank management to fulfill its own part of the contract of employment between it and its employees.


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Frequently Asked Questions


Is there any significant difference between salaries and wages administration and productivity?

Ho: There are no significant differences between salaries and wages administration and employees productivity. Hi: There are significant differences between salaries and wages administration and employees productivity. Ho: There is no significant difference between staff training, development and employee productivity.

What are the objectives of wages and Salaries Administration?

To ascertain the effectiveness of wages and salaries administration. To evaluate the impact of wages and salaries administration as a tools for motivating, promoting, training, and staff development in order to enhance employee productivity. To find out how wages and salaries can contributes to improve employee productivity in their organization.

Why are wages and salaries important in an organization?

Wages and salaries are to attract, hold and motivate employee to put in their best. To ensure the cooperation of employees on a continuing basis. To make sure the right type of employees are attracted to the organization, to help employees maintain a reasonable standard of living. It helps reduce employee turnover.

What is the importance of wages and salaries in bureaucratic organizations?

Within all organizations the utilization of labour towards the accomplishment of organizational goals is emphasized. Thus in bureaucratic organizations, the enhancement of wages and salaries is vital to the employees effectiveness and efficiency.

What are the objectives of wages and Salaries Administration?

To ascertain the effectiveness of wages and salaries administration. To evaluate the impact of wages and salaries administration as a tools for motivating, promoting, training, and staff development in order to enhance employee productivity. To find out how wages and salaries can contributes to improve employee productivity in their organization.

What is the difference between wages and salaries?

Payments made to manual labour is generally called as wages, while money paid periodically (say monthly) to such employees whose output cannot be easily measured in units, such as clerical staff, supervisory staff or managerial personnel, is referred to as salaries. Salary also includes commission, bonus, fringe benefits, etc.

How does productivity affect wages and salaries?

If the total productivity of a country is very high, the tendency is that wages and salaries will be high also.

Why are wages and salaries important in an organization?

Wages and salaries are to attract, hold and motivate employee to put in their best. To ensure the cooperation of employees on a continuing basis. To make sure the right type of employees are attracted to the organization, to help employees maintain a reasonable standard of living. It helps reduce employee turnover.

What are the objectives of salary administration?

Salary is also known as basic pay. The most important objectives of any wage and salary administration are: 1. Fair and Equitable remuneration – The remuneration paid to the employees should be fair and equity should be maintained. (i) Internal equity means similar pay for similar work.

What are the basic principles of wage and salary administration?

PRINCIPLES OF WAGE AND SALARY ADMINISTRATION  External Equity  Internal Equity  Individual Worth 5.

What are the objectives of sound wage and salary administration?

A sound wage and salary administration tries to achieve these objectives: 1. For Employees: (i) Employees are paid according to requirements of their jobs, i.e., highly skilled jobs are paid more compensation them low skilled jobs. This eliminates inequalities.

What is wage and salary administration in HR?

Wage and salary administration is a part of human resource management function. It is a vital area of HR activities. A company which introduces well defined/administered wage and salary package (compensation package) can be able to procure, utilize and retain competent and effective human resources.

Why is a good wage and salary structure important?

A good wage and salary structure will serve as a sound basis for collective bargaining and enable the maintenance of satisfactory union-management and employee- management relations. 9. Ensure Minimum Wages:

How important is salaried salary?

Salary is important in the most basic sense — the vast majority of people wouldn’t do their jobs if they weren’t paid for it. Fair salary for the particular work required is also important.

What are the factors that affect wage and salary?

Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: The organizations ability to pay. Supply and demand of labour. The prevailing market rate. The cost of living. Living wage. Productivity.

How important is salary in keeping employees satisfied?

Fair salary for the particular work required is also important. Two standard human psychology theories from Abraham Maslow and Frank Herzberg explain why salary is critical in keeping employees satisfied at work.

What is the importance of bureaucracy in an organization?

Importance of bureaucracy in an organization, government and large organizations, have noted that significant important role of bureaucracy is administering rules and regulations.

What are the pros and cons of bureaucracy?

Job security is provided. The structure of a bureaucracy creates more job security than other forms of oversight. If a worker abides by the rules and regulations that govern their position, then they are awarded with specific benefits and a steady salary that allows them to live the lifestyle they want.

How important is basic salary in the workplace?

Herzberg said basic salary was important as a survival need because it protects against employee dissatisfaction. It could not, however, strongly motivate. He did note that recognition, promotional opportunities and self-worth are key motivators.

What is a bureaucratic structure?

The term “bureaucracy” is often addressed to governmental structures only, but most people either work in a bureaucracy or encounter one every day. If your work is supervised by another person, that is a bureaucratic structure. A bureaucracy benefits society by creating structures that help to keep people safe and productive. 

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