The Impact Of Wages And Salaries Administration On The Efficiency Of Government Owned Establishment In Nigeria (A Study Of Power Holding Company Owerri)

Project and Seminar Material for Business Administration and Management (BAM)

Project and Seminar Material for Business Administration and Management (BAM)


This project work is designed to critically evaluate the impact of wages and salaries administration on the efficiency of government owned establishment in Nigeria using the power holding company Owerri as a case study. The project is arranged in five chapters for easy understanding. Chapter one introduces the work, gave a little background of the study, stated the problems the objectives of the study, and questionnaires designed to help in achieving the objective.

Chapter two received various literatures consulted in the research work, in chapter three the methodology used in gathering the fact were made known. The data collected were presented and analyzed in chapter four in chapter five, findings made were summarized, conclusion where drawn and recommendations were made by the researcher.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents.

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research question
  • 1.5 Significance of the study
  • 1.6 Scope of the study
  • 1.7 Limitations of the study
  • 1.8 Definition of terms.

Chapter Two

2.0 Literature Review

  • 2.1 Theoretical framework
  • 2.2 How wages and salaries are formulated
  • 2.3 Reasons and purpose of paying wages and salaries in Nigeria
  • 2.4 Problems involved in wages and salaries
  • 2.5 How to solve the problem on wages and salaries in Nigeria
  • 2.6 Summary of the chapter

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research design and methods used
  • 3.3 Sources /method of data collection
  • 3.4 Population and sample size
  • 3.5 Validity and reliability of measuring instrument
  • 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 Interpretation of data

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 conclusion
  • 5.4 recommendation
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

We work so that our needs can be met from the reward we get for all service. These reward paid to all workers. It holds a unigal position in the employment process, as no employee is satisfies until salary payable to him is settled.

In union and management discussion salary is the most important item on the negotiation agenda and has led to more trade disputes and strikes than any other issues, wages and salary administration, therefore according to Ogunna (1999:258) “constitute, perhaps, the most important aspect of personnel management as without employees “remuneration, there would be no performances and indeed no business or government organization. He further said “there is therefore a strong correlation between the level of efficiency of wages and salary administration and the degree of organization efficiency and productivity.

To employers, wages and salary paid to workers are important as an unnecessary high salary bill will diminish the profit which a vary poor salary structure well lead to differently in attracting and retaining the right Caliber of staff /workers, poor qualify of product, low productivity and consequent loss of market leading to loss of profit. While workers see salary as an income, which must be steady and progression employees see it as a cost (a price) that must be checked and controlled. Since to both the employers and the employees the question of salaries is very important, management should of a necessity, part particular attention to this formulation of policies relating to salaries administration which is one of the personnel management core challenging functions the employer should not look only at the proportion of his profit the salary bill will consume, but should also remember that a poor salary will not lead him any where and that he will not be able to motivate his workers to do well.

He should remember that since he operates in a free economy, his policies should not make a loss leaders
or a bad employer, but good enough to enable him have a four share of the labour market. The salaries policy should take not that height salaries allowed not, lead to the satisfaction of the workers and should therefore cover the whole compensation

Package comprising basic pay, cash benefits, training and motivation techniques it should aim attaching, retaining and maintaining the best caliber of workers at all level of business operation. Consequently, the provision of a salary policy should cover at grades of employees, skilled un-skilled, semi-skilled, cleric, supervisory any managerial.

The principal aim of wages policy should be to evolve an equitable structure of salary and wage based on skill experience merit and ability ensure a reliable standard of living, compatible with the economic situation in the country (Nigeria to contain, increases in salaries within this limit imposed by the rates of economic growth and productivity increased cost of goods and services which in term cause more unemployment.

As an instrument of economic policy a salary policy should be a means of promoting investment, internal price stability, worked efficiency, a more effective distribution of labour force the international competitive of the economy and an infix of foreign capital. As an instrument of social policy, salary policy should be an alternative to social security systems as a vehicle for security socials justice.

Here in Nigeria, the history of salaries and wages administration could be traced to the first republic era, when according to Ogjuna (1999:263) salaries and wages of public officers was rationalized in keeping with the principle of federal government.

Each government of the federation determined the salary grading and pay for its worker depending on it paying ability.

During the period there existed difference in salaries instrument of various public organization the civil services, the teaching services local government etc.

1.1 Background Of The Study

Brief History Of Power Holding Company Owerri

The power Holding company Nigeria (abbreviated PHC or PHCN) formerly the national electric power authority (abbreviated NEPA) was founded in year 2005 and is headquartered in Abuja Nigeria. It is an organization governing the use of electricity in Nigeria.

Power Holding Company of Nigeria Owerri (PHCN) produce and distributed power through its subsidiaries. The company’s subsidiaries include generation company (GENCO) TRANSYCO, and distribution companies (DISCO) it offers services including construction and engineering of power generating chits, maintenance and serving of power grids, dams operations and water management for power generation, flood control and navigation resettlement, maintenance of control equipment protection and communication, maintenance scheduling and security and pest contingency analysis.

1.2 Statement Of The Problem

With the change in wages and salaries administration have been affected due to not having good management term. Organizations have tried to adopt to certain changes in the policy of wages and salaries administration but still to no avail, organization who have failed to analyze and improves its wages and salaries which have suffered great losses, that is in term of poor return on investment, poor quality of product or service and also lead to low productivity in the public and private sectors of the economy.

1.3 Objective Of The Study

The objective of this study is to determine the following

  1. How wages and salaries in Nigeria are formulated
  2. Reasons /purpose of paying wages and salaries in Nigeria
  3. Problem involved in wages and salaries and
  4. How to solve the problems.

1.4 Research Question

  1. How can wages and salaries administration improved the efficiency of government owned establishment in Nigeria.
  2. What are the reasons/purpose of paying wages and salaries in Nigeria
  3. What are the problems involved in wages and salaries administration. And how can it be solved.
  4. In what way can wages and salaries be formulated?

1.5 Significance Of The Study

The significance of the study is that directors and administrator will know that absence of wages and salaries administration lead to how productivity on public sector of the economy and also it will enable the administration and directors in the public and private sectors to see how wages and salaries administration motivates workers as the result of increase of productivity in the firm or organization, and also will benefit the student the researchers, public. The case study organization and management, and scholar in the following wages:

This work will serve as a guide and reference purpose to the public and other researchers writing on this topic.

1.6 Scope Of The Study

The scope of the study covers the impact of wages and salaries administration on the efficiency of government owned establishment on Nigeria power Holding company Owerri.

1.7 Limitation Of The Study

In the course of this research some constraints were encountered such as, lack of materials, lack of finance which slow down the rate of sourcing, information. Another was time constraints due to non company of individual of firm of reviewing what they considered to be company confidential case.

1.8 Definition Of The Terms


This is the payment for specific work done


This is the activities that are directly or indirectly related to the formation and implementation of public policies.

Public Sector:

It is an institution or organization that government owned and control without the influences of the private sectors.


Involves getting a job done through people.


Is the amount of money paid either weekly or monthly to full-time employees.


This is the rate at which objectives or goals set (target) are achieved at a minimum cost.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Introduction

This chapter gives a brief summary of the research study which focuses on the impact of wages and salaries administration on the efficiency of government owned establishment in Nigeria.

It goes on to summaries all the major findings revealed from the analysis of the data collected as well as draw conclusions and make recommendations on the overall outcome of the research work.

5.2 Summary

This chapter deals with the finding, made in this course of the research, for the purpose of achieving valid conclusions and making useful recommendations.

The following findings are made; the employee enter into contract with the employer because of wages and salaries, and if not paid on time reduced the performance of the employees.

As the employer paid the employees, it is on income to the employees, while the employer sees it as an expenses they incurred. And again when the employees are under paid it is a big problem that is associated in wages and salaries administration, which has not been solved, the personnel department should pay their employees as soon as their performance increases the output of the organization.

The purpose of paying salaries were to meet up with the economic situation, so that the living wages will sustain the employees and his family to enable them to carryout other projects in the family.

5.3 Conclusions

Have seen the findings, the research draw the following conclusion

Salaries and wages should be regularly paid as and when due. Late payment of salaries and allowances are the major cause of corruptions, abuse of office/power and low productivity in the Nigeria’s public service. This state of affairs they added “is very destructive to public organization”. Efficient salary administration should be government by the principle of equal pay for equal work.

The workers salaries are one of the top most items in the priority of the federal government fund. It should therefore be treated as a very important issue on the federal government list through prompt and regular payment of the Nigerian workers before any other service for this will guarantee workers commitment, effective, efficient performance result oriented service and high productivity for payment of salaries is a motivation factor which ensure and reinsure worker and spores his to greater productivity.

Finally, the employees should put in their best and make sure they justify pay they received.

5.4 Recommendations

From the conclusion drawn, the following recommendations are made.

  1. That of productivity increase employees should be paid without delay,
  2. That wages and salaries is a great task of personnel management and should handle with care, also that without employees remuneration there will be no organization.
  3. That what boost the moral of employee are the monetary compensation they received.
  4. That wages and salaries should be paid on time to enable the employees make good use of it.

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