The Impact Of Wages Increment On Workers Performance In Abia State (A Case Of Umuahia Water Board Corporation)

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


This project was examined from it’s entire ramification, what could be the possible impact of wages increase on workers performance in Abia State. It is believed that when wages increase, the aims is to alleviate the sufferings of workers in regard to increasing their purchasing poor and meeting the cost of living. But the consequence which will come quickly to mind is that many job will be lost and very little created.

Employers will pay higher wages but will do so at the cost of Reduction in their labour force. Those who have been desperate for job will sink furthers into desperation and more would join them through retrenchment. In analyzing the effect on workers, the researcher carried out a research work at Nigeria water board corporation Umuahia, where opinions of some workers are sampled. By so doing, questionnaire and personal interview were used. We equally examined the more dynamic aspect or wage and emergence of wage employment. Wages structure, the responsibility for wage and the method of fixed wages and fringe benefits.

The project also highlighted the method of wages increase by workers and the probable side effect such as inflation increase in the price of commodities etc. recommendations as to how government could come to the aid of workers in minimizing the increase in prices of goods and services when wages are increased are also discussed.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problems
  • 1.3 Objectives of the study
  • 1.4 Research questions
  • 1.5 Statement of hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitations of the study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Methods of fixing wages
  • 2.3 System of wage payment
  • 2.4 Essentially of wage and wage administration
  • 2.5 Benefits of incentive and fringe benefits
  • 2.6 Effect of wages increases on workers productivity
  • 2.7 Governments efforts on wages increment
  • Reference

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sources/Methods of data collection
  • 3.4 Population and sample size
  • 3.5 Sample technique
  • 3.6 Validity and reliability of measurement
  • 3.7 Method of data analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of data
  • 4.3 Analysis of data
  • 4.4 Test of hypothesis
  • 4.5 Interpretation of results

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References
  • Appendix.

Chapter One

1.0 Introduction

1.1 Background Of The Study

In any establishment either private or public, the impact of wages increment cannot be over emphasized. To Abia State water board Corporation Umuahia, satisfaction of the public and standard of living has been their major concern.

The objective has been the development and utilization of local raw material (coal) and mobilization of fund for the purpose of satisfaction of Nigerians. In the bid to actualize this, the corporation finds it difficult and almost impossible to pay it’s workers the exact wages and pension at the appropriate time.

This as a result leads to inefficiency since the workers are not motivated to carry out their function effectively. Facilities provided by the government are not being-used by the corporation in their operation. This as a result may lead to scarcity of some important goods.

The carriage of bulky goods by the trailer is now more preferable than the use of train, since the water board corporation is inefficient; goods that are supposed to be carried by trains are now being carried by vehicles, which thereby create obstruction in our roads. Presently, the corporation is not generating accurate revenue for the society, because the people who make use of the water board transportation are few.

This discussion so far, means that the water Board Corporation is unable to achieve its objectives.

1.2 Statement Of Problems

Water is a basic necessity of life; no human being can live without adequate and safe potable drinking water.

Productivity in water supply is essential for meeting the needs of the people. The problem of productivity due to low wages includes:

  1. Inadequate or inefficient supply of water to the citizens.
  2. Low moral of workers to improve productivity
  3. Lateness and absenteeism to work by workers
  4. Prevalent of water borne disease in the state.

1.3 Objectives Of The Study

It is expected for any research work to provide answer to a particular problem. In view of this, this project tends:

  1. To examine the impact of wages increment on workers performance in Abia State.
  2. To highlight the problems that are inherent in increasing the wages of workers who work in the public sector.
  3. To identify and correct the environmental factor that affects the wages increase of workers.

1.4 Research Questions

This study will attempt to answer various specific questions like:

  1. Have the employers ever demanded for wages increase?
  2. Has there been any trade dispute in the corporation?
  3. Have the employee ever enjoyed or been given any fringe benefit?
  4. Has corporation recorded any demonstration work to rule strike action?
  5. Does wage increment motivate workers for high productivity?

1.5 Statement Of Hypothesis

Ho: Workers performance is not a major determinant of equitable wage/wages increase.
Hi: Workers performance is a major determinant of equitable wage/wages increase.

1.6 Significance Of The Study

This study is of great importance in the following ways:

  1. By virtue of this study, it is needed most to ascertain the impact of wage increase on workers productivity.
  2. Income and expenditure of an industrial sector would be determined, hence, the number of workers will also be accounted for. This tells whether more workers are to be employed or deployed.

1.7 Scope Of The Study

This project work is not directed at providing solutions at all problems that arises in corporation generally. Rather, it is narrowed to the impact of wages increase and fringe

benefits. However, the suggestion offered may be found useful by other corporations.

1.8 Limitations Of The Study

In carrying out this research work, there were a lot of limitations that affected the study. These involve;

Financial Resources:

The physical cash could not meet the materials needed for this project work because of the increase in the cost of things generally.

Time Constraint:

The time allocated for this project work was not really enough since lectures were going on simultaneously.

Literature Related:

To this, study was not sufficient enough, as a result of limited collection of relevant data.

1.9 Definition Of Terms


This can be defined as affixed payment at regular interval for service. It is a payment made to workers for service rendered. However, wages are payment received. Hence, it becomes obvious that man has to labour to the point of satisfaction in order to meet up with the necessities of life either in private or public sector as case of water Board Corporation concerned. To buttress this statement it is stated clearly in the theory of Douglas McGregor that the “expenditure of physical and mental efforts in the work is natural as play or rest” the average human being does not inherently dislike work.

Fringe Benefits:

Fringe benefit are payment other than wage or wages made to an employee such as pension, leave, bonus, insurance etc.


A worker is a person who apply or contribute both physically and mental strength with the purpose of getting things some to a particular objective in order to earn his living.

Public Sector:

Public sector are those infrastructural organization fundamental to the natural economy which the government decided to control in order to ensure a proper balance between social and commercial aims. These organizations include: Corporation, Nigeria Post Authority, Nigeria Airways and National Power Authority etc.


Corporation can be defined as an institution operating the service of an economic or social character on behalf of the government corporation manage and operate in accordance with the provision of this act, the water board undertaking transferred to the corporation by virtue of the provision of all act.

These undertaking may include, any expansion or extension construction of new water board and the provision of all reasonable facilities for carriage of passengers and good

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Introduction

Succinctly this chapter will reveal one to five. However, workers performance as an effective tool for wage/wages is what this research work aims to encapsulate.

5.2 Summary Of Findings

This research work is mainly concerned with workers performance as an effective tool for wages/salaries structure, determination with particular reference to Abia State water board Corporation Umuahia. However, the research work started by defining the concept of workers performance and relating it to wage/wages determination. Also the statement of the problem was stated including its significance and purpose of the study were also stated.

In chapter two a detailed review of literature made by consulting published texts on the subject matter by various researchers and authors.

In the third chapter, the method and procedures of data collection of data including primary and secondary sources. In analyzing the date or hypothesis calculation involving the use of statistical tools and techniques of tables, simple percentage and Chi square.

After the analysis and hypothesis were tested the researcher found out the following. Workers performance is an indispensable tool. In the determination of wage/wages increase in Nigeria. There is a correlation between workers remuneration and the value added in productivity workers performance harmonies the structures of wages thereby anchoring the disparity inherent in a wide range of different professions and skills workers performance has also helped in resolving the conflict between the staff managers and the line managers in the company by clearly defining their jobs and pay levels assigning each position in the company.

5.3 Conclusion

Workers performance is only concerned with rating and many methods are available for doing this. However, ranking methods seems to be most widely in use in Nigeria than other methods.

Workers performance as a tool for wage/wages increase determination is a worth while phenomenon of a formal process that provides an equitable rational and justifiable explanation of the level of remuneration commensurate with a given job hierarchy or position.

5.4 Recommendation

Based on the findings in the previous chapter therefore put forward the following recommendation to correct and improve the impact of wages increase and benefit among workers in water board corporation Umuahia Abia State with following reasons.

1) For the fact that workers believe that motivation force towards high productivity capacity, organization or corporation must pay attention vigorously to his aspect so as for productivity to increase.

2) Impact of wages increase: This aspect has contributed to the down fall of the economy in general first of all, wages increase, have revealed that people only give their best of their needs are satisfied. These cannot be successfully achieved except through monetary incentive works.

Strike action: This occurs as a result of disagreement between workers and management. It is a means through which dissatisfaction is shown by workers. The trade dispute act of 1976 define strike as the cessation of work by a body of person employed to accept or not to accept term of employment and physical condition of work.

Collective Bargaining: This is the machinery of interaction between employers and employees of workers. However, collective bargaining is defined as “The negotiation about working condition and terms of employment between the employers and a group of employees or labour union in an organization with a view of reaching an agreement.

Workers in the public sector, especially the Nigerian water board corporation, resort to the use of collective bargaining of there increase in the price of commodities, as this therefore lead to inflation. If wages is increased, it will lead to a situation whereby consumers will not be able to reach certain needs and as such when increasing salaries consideration must be given to it’s side effect and not just increasing it to motivate workers alone.

3) As part of motivation structure design, management must ensure that various allowance are given to each individual worker in order to enable them carry out their duties effectively and efficiently.

4) I will strongly recommend that any increase in wages should not be proclaimed but should no knows about their wages package.

In conclusion if corporation or management wants the duties assigned to workers to be carried out effectively and efficiently as well as for workers to be happy in all their undertaking in the company adequate motivation system, fringe benefit, allowance etc must be designed or built in the plan of the company.

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