The Impact Of Salaries And Wages As A Motivational Tool For Workers Productivity (A Case Study Of Federal Polytechnic Nekede Owerri)

The Impact Of Salaries And Wages As A Motivational Tool For Workers Productivity (A Case Study Of Federal Polytechnic Nekede Owerri)
Abstract
This study was carried out to examine the impact of salaries and wages as a motivational tool for workers productivity using Federal Polytechnic Nekede Owerri as a case study. The study was specifically carried out to ascertain whether salaries and wages significantly motivate workers in Federal Polytechnic Nekede Owerri, determine the factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri, and determine the effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of workers in Federal Polytechnic Nekede Owerri. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. While the hypotheses were tested using Chi-square statistical tool. The result of the findings reveals that the effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri includes; enhances workers commitment, improves performance of workers, enhances job satisfaction of workers, reduces labour turnover from employees, and minimizes sabotage by workers. The study also revealed that the factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri includes; labour market conditions, existing country/nation’s cost of living, comparability of wages/salaries in the occupational group, the bargaining power of the trade union, government actions and policies. Therefore, it is recommended that eages/salaries scale and schedule in line with identified factors should be developed for adequate compensation. To mention but a few.
Table of Content
- Title Page
- Certification
- Dedication
- Acknowledgement
- Table of Content
- List of Tables
- Abstract
Chapter One:
Introduction
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organisations of the Study
Chapter Two:
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
Chapter Three:
Research Methodology
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Chapter Four:
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Chapter Five:
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
- References
- APPENDIX
- QUESTIONNAIRE
Chapter One
Introduction
1.1 Background of Study
In any organization tasks are performed with the help of resources; material, machine, money and most importantly men. All other resources except for human beings as employees are non-living. Employees make use of these resources to generate output without them other resources will be useless, dormant and will not produce anything. Therefore, human resource is the greatest asset any organization can have and should be given the highest priority. (Ojeleye & Okoro, 2016). Similar view is supported by Zaman (2011), he argued that human resource provides basis for an organization to achieve sustainable competitive advantage. Since organizations are operating in a dynamic and competitive business environment, they need to develop strategies to acquire and retain the competent workforce. He also emphasize, nowadays human asset considered to be the most important asset of any organization. Therefore, the motivation of human resource is necessary to boost their productivity.
Workers productivity is one of the most important parts of achieving organizational objectives. The happier the employees, the more effective and efficient they can perform. Apparently, workers adequate remuneration(salaries and wages) is among the most essential factors which motivates them to perform optimally. Wages and salaries plays a very important to workers. Salaries and wages is among the form of compensation, where workers receive compensation from the employer for the work or services that have been done to fulfill their necessities of life.
In drawing distinction between wage and salary, Esien (2002) opined that in the past, important distinctions existed between wages and salary, but today, the words are used interchangeably, reflecting the convergence of method of paying skilled and unskilled workers. A salary was defined as a fixed annual amount paid monthly. Wages in contrast were variable weekly payments (usually made in cash) that fluctuated in value through overtime, bonuses, and piecework rates. Salaries were determined individually; wages through management/union collective bargaining”.
Attractive Salaries or wages play an important role in increasing workers performance and also increase the productivity of tertiary institutions(Azar & Shafighi, 2013). Salaries and wages is one of the most important motivational factors. The main reason why workers get involved in paid jobs is to earn a living which is salary or wage. Reasonable Salaries and wages must be paid on time, that is, it must be paid as at when due and promptly, as well. The workers should be able determine the time such salaries will be paid by the organization. Again, there must be a relative uniformity in the mode and manner such salaries and wages will be paid to the workers. While fixing salaries, the organization must consider factors such as the cost of living, company ability to pay, capability of company to pay, etc (Chukwudi, Odogwu & Adedehinbo, 2012).
An important component of a successful organizations’ salary and wage administration policy is monitoring and evaluating all employee’s compensation to ensure that they are being paid appropriately, both with respect to others in the same organization and to the marketplace as a whole. Salary is often an integral function of the organisation’s human resources department, but in general, the larger the organization, the more likely it is that it will be handled by a separate department (Muo, 2007).
1.2 Statement of the Problem
Low productivity is one of the problems that affects many organizations in Nigeria of which selected tertiary institutions in country is not an exception. Akinyele (2009), citing Lambert (2005), stated that provision of adequate fringe benefits, supervision, work method, work environment etc. are key factors to higher productivity.
The tertiary education system has been criticized for being inefficient and ineffective, making it irrelevant to the needs of a global edge. The major issues in Nigerian higher education are similar to those in most developing countries around the world. Problems such as access, infrastructure, quality, funding, welfare, efficient and effective management, and governance have been some of the major issues (Teboha, 2000).
Despite the implementation of the consolidated tertiary institutions salary structure (CONTISS) in 2007 and implementation of the consolidated polytechnic, colleges of education academic staff salary structure (CONPCASS) in 2013 (NSIWC, 2007 & 2013), there is no much improvement in the efficiency and effectiveness of the institutions and academic staffs, because of the incessant strikes due to job dissatisfaction. This has resulted to poor academic standard and performance in tertiary institutions and many parents’ year-in, year-out send their children to other countries abroad where they believe the academic standard of the institutions over there is sound and high compared to ours (Kawugana, 2016).
1.3 Objective of the Study
The general aim of this study is to examine the impact of salaries and wages as a motivational tool for workers productivity using Federal Polytechnic Nekede Owerri as a case study. The specific aims of this study are outlined below:
- Determine whether salaries and wages significantly motivate workers in Federal Polytechnic Nekede Owerri.
- Determine the factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri.
- Determine the effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri.
1.4 Research Questions
The main focus of this research is to provide a valuable response to the questions below.
- Does salaries and wages significantly motivate workers in Federal Polytechnic Nekede Owerri?
- What are the factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri?
- What is the effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri?
1.5 Research Hypothesis
- Ho: Salaries and wages significantly does not motivate workers in Federal Polytechnic Nekede Owerri
- Ha: Salaries and wages significantly motivates workers in Federal Polytechnic Nekede Owerri.
1.6 Significance of the Study
This study hopes to provide a comprehensive document that would discuss salaries and wages administration in Nigeria tertiary institutions and its impact on workers performance in an organization.
This study is fundamental to the manufacturing industries, public sectors, private companies and entrepreneurs who are looking for the way of retain and attract the best hands on their organization to achieve organizational goals. Also governments, organizations and individuals concerned with formulating compensation policies can benefits from this study. Finally, this research study is expected to stimulate research interests in other aspects of public sector in general, and human resource management in particular.
1.7 Scope of the Study
The scope of this study is boarded on the impact of salaries and wages as a motivational tool for workers productivity. Geographically, the study will be carried out in Federal Polytechnic Nekede Owerri.
1.8 Limitation of the Study
Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.
Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.
1.9 Definition of Terms
Motivation:
It is an inner state that energizes activates, move and that directs or channels behaviour towards goals.
Performance:
This is the level of an individual’s work achievement after having exerted effort.
Compensation:
This is monetary worth given to employees in return for inconvenience, suffered in the pursuit of their job for which they are employed by the organization under study.
Salary:
This 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.
Wages:
It is the reward that individual receives from an organization in exchange of his labour.
1.10 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows.
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study.
Chapter Five
Summary, Conclusions and Recommendations:
5.1 Introduction
This chapter summarizes the findings on the impact of salaries and wages as a motivational tool for workers productivity using Federal Polytechnic Nekede Owerri as a case study. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was to examine the impact of salaries and wages as a motivational tool for workers productivity using Federal Polytechnic Nekede Owerri as a case study. The study was specifically carried out to ascertain whether salaries and wages significantly motivate workers in Federal Polytechnic Nekede Owerri, determine the factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri, and determine the effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were staff of Federal Polytechnic Nekede Owerri.
5.3 Conclusions
Based on the findings of this study, the researcher concluded that;
- Salaries and wages significantly motivates workers in Federal Polytechnic Nekede Owerri.
- The factors militating against adequate compensation of workers in Federal Polytechnic Nekede Owerri includes; labour market conditions, existing country/nation’s cost of living, comparability of wages/salaries in the occupational group, the bargaining power of the trade union, government actions and policies.
- The effect of salaries and wages as motivational tools on workers in Federal Polytechnic Nekede Owerri includes; enhances workers commitment, improves performance of workers, enhances job satisfaction of workers, reduces labour turnover from employees, and minimizes sabotage by workers.
5.4 Recommendations
Based on the findings of the study, the following recommendations are proffered.
- Wages/salaries scale and schedule in line with identified factors should be developed for adequate compensation.
- Wages/salaries should be good and adequate based on the identified indices in this study.
- 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.
- 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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