Effects Of Salary And Wages On Motivation Of Workers For Productivity In The Local Government Services

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Effects Of Salary And Wages On Motivation Of Workers For Productivity In The Local Government Services

Abstract

This study examined how the organisation’s human capital was compensated and see whether the compensation (salary and wages) even serves as a motivational tool to enhance organisational performance. Seven research questions were postulated to find solutions to the problems of the study. One hundred and twenty personnel formed the sample size from six organisations. A self-designed instrument labeled Wages and Salaries as a Motivational Tool Questionnaire 2 (WASAMOTOQ2) containing seven sections was used in the collection of data. The findings of the study revealed those factors that militate against adequate compensation to include labour market conditions, the ability of the organisation to pay adequate compensation and the existing country/nation’s present cost of living; what makes up good and adequate compensation include recognition of individual performance and taking care of individual incentives and it shows the relationship between compensation and motivation. It further established the consequential effect of inadequate compensation and motivation on the organisational development. Based on the findings, the following recommendations were proffered that there should be wages/salaries scale and schedule; such should be based on identified indices in the study; that disparity between two identical workers should not be based purely on ‘paper’ qualification but the ability to ‘deliver’; and that wages/salaries should display equality, no ‘sacred cow’.

Chapter One

Introduction

1.1 Background of the Study

The purpose of this research work was to examine the effects of salaries and wages on motivation of workers for the productivity of workers in the Nigerian civil service. The case study adopted was Calabar Municipality Local Government Council, Cross River State.

Pay as a motivator has a very strong positive effect on the productivity of the Nigerian workers. For most employees pay has a direct bearing upon their standard of living and upon their status and recognition. Pay also constitutes a quantitative measure of their relative worth in comparison with their fellow employees. Since the difference of a few kobo can affect these rankings, employees can be quite sensitive to such differences. That is why the Nigerian workers are likely to increase productivity if financial rewards are tied to a measurable level of their work efforts or productivity. The Nigerian worker is even willing to work overtime to produce more if he knows he will earn more income.

Unfortunately, the government has acquired the unenviable reputation of being very slow in meeting workers’ demands. The workers have not been getting their labour’s worth, and they are often not paid when it is due. That is why the Nigerian workers resist any move to deny them entitlements that are due them. They reject less pay for higher effort or outright denial of their rightful benefits. The Nigerian workers would therefore protest these inequities through go-slow, work-to-rule, and outright strike. Obviously, pay constitutes an element of motivation and can influence employees work behavior and attitudes, and it may affects their decision to work more productively.

This study is divided into five parts which are spread across five chapters namely, introduction, review of related literature, research design and methodology, data presentation and analysis, summary, conclusion and recommendation.

1.2 Statement of the Problem

A research problem is an interrogative statement which asks about the relationship between two or more variables that create a particular state of affairs. It should be started in question form because it has the added advantages of sharpening the issue which of course, is different from the problem of the research. (Odu and Thejlamiazu, 2001:12)
Based on the forgoing, the statement of the problems is given below:

Has pay had any effect as a motivator and what are its impacts on productivity within Calabar Municipal Local Government Council?

Again, payment of wage or salary to employees by the employer is mandatory by law but not just for the fun of it. It must be noted that such wage or salary paid is an instrument of motivation or ‘driver’ for the workforce to keep the body and soul together and possibly make them a stakeholder in the organisation. It is a common knowledge that when you are a stakeholder in an organisation, such employee will always want the survival of such organisation at all times. This is one of the challenges of motivation within organisations. Motivation is one of the greatest challenges facing managers across the globe because it influences workers’ performance and thus the extent to which organisations are able to achieve their objectives and justify their existence.

Cummings (1978) argued that the management of human resources is “concerned with obtaining the best staff for an organisation, and having got them, looking after them so that they will stay and give of their best to their jobs”. This is pointing to the fact that proper recruitment process must be strictly adhered to, as ascertained in Sule and Ugoji (2013); recruitment process in organisation and after getting the best staff, the next thing is looking after them so that they will stay to give their best in terms of their input for optimal organisational development. This is talking about motivating the workforce to steer the best attributes in them. Note, the writer presumes the best way to motivate in Nigeria today is for the worker to be paid adequately and promptly.

Therefore, there is need for us to see and to review how and why wages and salaries paid to workers help to motivate on the job. Another issue is that, do wages and salaries really motivate workers on the job such that if not paid, there will be no difference in the attitude of such workers.

1.3 Objective of the Study

The specific objectives of this study include:

  1. Examining whether wages and salaries motivate positively;
  2. The potency of wages and salaries as a motivational tool;
  3. Describe the effects of inadequate compensation as a motivational tool on workers and organisational performance;
  4. The other compensating strategies apart from wages/salaries that serve as motivational tools;
  5. The difference between gratuitous and paid workers performance at work;
  6. To provide theoretical explanations and empirical validations for the linkage between wages/salaries and performance.

1.4 Research Questions

The research questions will be tailored towards the purpose of the study such that if they are answered, one will clearly realize why and how wages and salaries administration serves as motivational tool as well as enhancing organisational performance in the Nigerian workplace. The questions are as follows:

  1. What are those factors that militate against adequate compensation?
  2. What constitutes good and equitable compensation?
  3. What are the likely effects of inadequate compensation as a motivational tool on the workers and organisational performance?
  4. What are the motivational variables that affect individual worker’s performance in the organisation?
  5. Is regular increase in wages and salaries alone being able to motivate positively?
  6. What are those other compensating strategies that can serve as motivational tools in the organisation?
  7. Is there attitudinal difference in the efforts of paid workers and the gratuitous workers?

1.6 Significance of the Study

The rationale of this study was carried out to expose the vital strength of adequate compensation on the employee, in order to reduce labour turnover as indicated through pilot study. The study is of utmost significance to management theorist as wages and salaries has not been specifically mentioned to be an important tool that can affect the morale and performance of workers in the working environment, especially, Nigeria of today. The economic hardship had made people to be ‘suffering and smiling’ at work such that even when they are not well remunerated, they pretend as if all is well and quietly be on the look-out for another job opportunity, elsewhere.
Again, not too many researcher had looked at wages and salaries of workers, especially in Nigeria of today, as per what constitute a better pay for a job considering the kind of economy we operate in this continent and the fact that all what our entrepreneur practically do is the “winner takes all” attitude by maximizing every earnings and minimizing all costs whether relevant or irrelevant. For instance, can you ever imagine the ‘peanuts’ given to the teachers in the private school especially, the kindergarten class? Usually, their ‘take home pay’ is not enough to take care of an able bodied person for a week. The study will, however, focus on why it is essential to pay wages and salaries and not just ‘allowance’ in place of wages and salaries. Also, the researcher will look at some gains of a better wages and salaries to the organisation as well as to the workers. Finally, the work will look at the cultural value Nigerians attach to the family lineage and the consequential cost effects of such belief on our financial demands as a Nigerian worker. The study is also meant to contribute knowledge and lay foundation for further research on adequacy of wages and salaries to employees for enhancing their performance and consequentially, the organisational performance.

Following this background, the remaining sections of the study are structured thus: Section Two presents a comprehensive review of literature; Section Three deals with the methodology employed; Section Four involves analysis of research findings and finally, Section Five for summary and recommendations.

1.7 Scope / Limitation of the Study

This kind of research would have been conducted using personal interview and/or observation but for quantifying the responses from the interviewers might look cumbersome. Else, we have to use questionnaire which most workers in Nigeria are always afraid of despite the promise that it will be treated with utmost confidentiality. As such, vital information will not be divulged for better conclusion.

Though, time and money are not necessarily factors militating against a research anymore but money here, affected the sample size the researcher would have love to cover, at least, the six geopolitical area of Nigeria to make the conclusion more vital.

Chapter Five

Conclusions and Recommendations

5.1 Conclusions

The major findings of the study include:

  1. That those factors militating against adequate compensation were labor market conditions, ability of the organization to pay, existing country/nation’s cost of living, government actions/policies and productivity/performance of employees.
  2. That those things that make-up for good and adequate compensation were recognition of individual performance and taking care of individual worker’s incentives.
  3. That there was relationship between adequate compensation and motivation.
  4. That the consequential effect of inadequate compensation and motivation on the organisational development will be low performance of employees.
  5. That there is significant relationship between wages/salaries and motivational tools in Nigerian workplace.
  6. That there is significant relationship between wages/salaries and workers performance in Nigerian workplace.
  7. That there is significant relationship between wages/salaries and organisational performance and development in Nigerian workplace.

5.2 Recommendations

The following recommendations will help reduce the labour turnover rate and dismal performance of our organizations as revealed by the study.

  1. Wages/salaries scale and schedule in line with identified factors should be developed for adequate compensation.
  2. Wages/salaries should be good and adequate based on the identified indices in this study.
  3. Wages/salaries disparity between two identical workers should not be based purely on ‘paper’ qualifications but much on the ability to ‘deliver’ and individual contribution to the organizational development.
  4. Organizations should ensure that wages/salaries display much equity such that there would not be sacred cow syndrome among the workers.

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