The Impact Of Wages And Salaries Administration On The Employee Productivity Of Sona Breweries Nigeria Plc

The Impact Of Wages And Salaries Administration On The Employee Productivity Of Sona Breweries Nigeria Plc

Abstract

This research study deals with an evaluation of the impact of wages and salaries administration on the Employee Productivity in Sona Breweries Nigeria Plc, with special reference to Sona Breweries Nigeria Plc Ogun state. The objectives of the study is to find out government policies with respect to wages and salaries in various Sona Breweries Nigeria Plc, the problems encountered while implementing wages and salaries in Nigeria, to also determine the effectiveness of wages and salaries administration on the Employee Productivity in Sona Breweries Nigeria Plc. The research method use in this research work is survey methods for data collection. The findings of this research work are that it is obvious that the most tangible means of compensation are wages and salaries, a major determinant of wages and salaries is the pay level of other organization. In conclusion, this research work concluded that wages and salaries administration influence the Employee Productivity in Sona Breweries Nigeria Plc in Nigeria. The recommendations are since wages and salaries are the most tangible form of compensation, organization should ensure an equitable pay structure for the employees at all time. There should be a proper collective bargaining process to ensure that wages are fixed at the choice of both the employer and employees fixed at the choice of both the employer and employees so that there will not be friction later on.

Chapter One

Introduction of the Study

Wages and salaries administration is part of the total compensation packages of any organization (Public or Private Sector)

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.

Incentive scheme involve paying an employee a bridge that reflects his productivity on contribution to the organization. Equity demands that what ‘A’ get in relation to ‘B” must be justifiable in terms of the productivity of ‘B’ to the same organization.

The ultimate purpose of incentive payment system is to enhance productivity, thus each incentive payment system used must be justifiable in terms of motivating employee to higher productivity.

In the private sector i.e SONA Breweries Nigeria Plc review of wages and salaries are done at regular interval through negotiation between the management and the employees representatives. Also, salaries are promptly paid to employees. Again, the payment of double increment and productivity bonus. Other wise known as the 13th month pay is also a common practice in the private sector.

If the total productivity of a country is very high, the tendency is that wages and salaries will be high also. And it continues to be adjusted in accordance with the trend of the productivity, for example the Udoji Commission awarded increased wages to workers, in 1974 became through the commission’s study of the Nigeria economy, it saw an increase in productivity level. During job evaluation, jobs are graded according to relative amount of skills, effort, mental alertness, education, purposes. An engineer in a company is paid more than the technicians. There should be equal pay for equal work.

Intrinsic rewards are contained in the attributes of the job itself in terms of the task, duties, and characteristic of the job as contained generally in the job description. Extrinsic rewards refers to the financial compensation, i.e monetary attached to the job.

In fact, wages and salaries administration determines, or influences productivity in any organization. What is wages and salaries administration? What roles does wages and salaries administration play in productivity? Why should employees/workers be motivated? Are there incentives in a private sector like SONA Breweries Nigeria Plc. These are some of the relevant issues addressed in this study.

1.1 Statement of the Problem

Wages and Salaries administration aspect, which is the most vital in achieving productivity of the organization. This is the major problem facing most organization and which has consequently deprived them of achieving efficient and effective wages and salaries administration, this cannot be over emphasized because it will help to improve employee productivity, the efficiency and morals of the firms their-by leading to the organization effectiveness.

1.2 Objectives of the Study

1. To identify the organization policies, objectives and procedures of wages and salaries.
2. To evaluate the impact of wages and salaries administration as a tool for attaining organization productivity.
3. To determine the effect of wages and salaries administration in the private sector administration in the private sector and the employee performance with particular reference.
4. To ascertain the effectiveness of wages and salaries administration.
5. 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.
6. To find out how wages and salaries can contributes to improve employee productivity in their organization.

1.3 Research Hypothesis

From the problem identified, the following hypothetical statements are formed, and will be tested to ascertain the level of correlation between the hypothetical statement and research findings.

1. 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.
2. Ho: There is no significant difference between staff training, development and employee productivity.
   Hi: There is significant difference between staff training, development and employee productivity.

1.4 Research Questions

1. To what extent is the motivation influence on employee productivity?
2. Is there and significant difference between wages and salaries administration and employee productivity?
3. Does training and staff development have any correlation Impact on employee Productivity?
4. To what extent has wages and salaries and other incentives have impact on organization efficiency?

1.5 Methodology

The method of collecting data in this work is through accessible textbook in libraries, SONA Breweries Nigeria Plc, House Journals Newspapers, Magazines, a questionnaire which was administered directly on the staff of the SONA Breweries Nigeria Plc department, Direct Personal Interviews, Indirect Oral Interviews, Mailed Questionnaire Method, e.t.c. The method of data collection adopted by the researcher is satisfied random sampling technique. The reason is that it is applicable where we have hiterogenous population (i.e population with distinct characteristics).

1.6 Scope of the Study

In the study, effort shall be made to identify the remote and immediate causes of administration of wages and salaries on employee productivity in a private organization. In order words, the study shall be limited to the issues in objectives of the study then to examine the wages by which private sectors administers wages and salaries being paid to employees in their organization or establishment.

1.7 Limitation of the Study

This research study focuses on the impact of wages and salaries administration on employee productivity with a case study of SONA Breweries Nigeria Plc, Km 38, Lagos Abeokuta Expressway, Sango-Ota, Ogun State. The researcher was faced with some problems in the course of carrying out the study.

The first problem encounter was financial problem and secondly, time factor, the research, was carried out along side with academic works and other day-to-day activities. Thirdly, there was no enough co-operation from the respondent as some of then felt reluctant answering most of the questions being asked by them.

1.8 Significance of Study

The significance of this study therefore, is that it explores ways in which maximum productivity or efficiency through adequate, motivation of workers can be assured within an organization, say a private sector like the SONA Breweries Nigeria Plc. 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.

The research project affords an opportunity of going into an in-depth knowledge as to how the human and technical element can be managed towards improved or higher wages and salaries.

The study is also significant in the sense that it suggest ways, if necessary on how to enhances, improved wages and salaries. In the SONA Breweries Nigeria Plc.

1.7 Chapterization

The researcher highlights the needs to ensure efficiency in everything, doing the right thing at the right time. The reason of the research work is, in order for employee or workers to perform better or to inspired good administration of wages and salaries must be used to enhance organizational productivity.

Good administration of wages and salaries are very important in any establishment for the achievement of overall organization aims and objectives within a very short period of time, so it is very difficult to divorce it.

1.8 Definition of Terms

Wages:

It can be described as compensation being paid to employee on hourly basis.

Salaries:

This is referred to as compensation being paid to employee on monthly basis.

Administration:

It may be though as planning, organizing and controlling of the activities of a company in relation to the direct and indirect payment being paid to employees for the work they performs or the services they render.

Adams (1913) defines administration as the capability to co-ordinate many, and often conflicting, social energies in a single organization in an orderly manner such that they can operate in Unity.

Employee:

This is referred to as a person who works in a company in return for a wages and salaries.

Productivity:

This rate at which works in a company or country produces goods and the amount produced with how much time work or money is needed to produce them.

According to Peter Drunker Productivity can be defined as that balance between all factors of production that would give a great output using the smallest or least effect.

Chapter Five

Summary, Conclusion and Recommendation

5.0 Introduction

This chapter contains summary of the study, conclusion drawn and recommendations proffered by the research.

5.1 Summary

This study was an attempt by the researcher to examine the impact of wages and salaries administration on the Employee Productivity in Sona Breweries Nigeria Plc with reference to Sona Breweries Nigeria Plc Mando Kaduna.

Salary increment has been a problem despite the services rendered by workers in Sona Breweries Nigeria Plc.

Agitation for more salary is still on as a result of increasing level of standard. This is as a result of global economic crisis which results to almost all the industrial actions being embarked by workers in Sona Breweries Nigeria Plc.

Under chapter one of the research work, the researcher discussed the background of the study, statement of problem which points out the problem which government workers are faced with as a result of poor pay structure and increasing level of standard of living.  The objective of the study which try to find out the policies government formulated on wages and salaries in Sona Breweries Nigeria Plc, the effectiveness of all these policies and the problems government face in their study points out the categories of people.  The scope of the study which is the main area that this research work focus its attention on.

Chapter two deals with the definition of the term wages and salaries from various authors base on their own perceptions.  Purpose of wages and salaries, determinant of wages and salaries which ranges from the ability to pay to the bargaining strength of the trade union, labour market conditions to the cost of living. All these enables the researcher to know the factors both external and internal that can determine the wages and salaries administration in Sona Breweries Nigeria Plc.

It is also include government policies on wages and salaries in Nigeria and their effects on wages which include agreement between the employer and employees, collective agreement, voluntary or compulsory arbitration, minimum wage board etc.

The third chapter deals with the research design, method of data collection, method of gathering data and justification of data collected.  Under here the survey method was used only a part of the population was studied.  Findings was generalized to the entire population.  The sample size was sixty employees, both primary and secondary source of data was used for method of gathering employees direct which the secondary are from sources like textbooks, journals, internet e.t.c.

Data presentation and analysis was made under chapter four in order to score and elaborate on the questions used for questionnaire.  Results was also discussed to see the opinion of the employees on the wages and salaries administration in Sona Breweries Nigeria Plc and its impact on their performance.

Hypothesis was tested and at the end the alternative hypothesis (H1) which is wages and salaries administration influence the Employee Productivity in government paratatals was accepted against the null hypothesis (H0).

Under chapter five the research work was summarized, conclusion and recommendation made.  The conclusion brought an eye opener to discover various things that makes employees go high and this gave the research a sense of direction and objectivity.

5.2 Conclusion

Conclusively, this project work has been an evaluation of wages and salaries administration on the Employee Productivity in Sona Breweries Nigeria Plc in Nigeria and the researcher was able to obtain views and opinions relating to the importance attached to wages and salaries in Sona Breweries Nigeria Plc.  It became an eye opener to discuss various things that makes employees go high and this gave the research a sense of direction and objectivity.

5.3 Recommendation

It is a result of the finding from this researcher project.  The following recommendations are therefore made:

• Since wages and salaries are the most tangible form of compensation, organizations should ensure an equitable pay structure for the employees at all times.
• The parastatals pay level should be a emulation of the compensation of pay level in other organization and parastatals.
• The level of compensation for employees should be such that will help the employee get an incremental pay rise in the process.
• Government should ensure that the demanding employee’s job is, the pay package he takes home at the end of the month.
• There should be a proper collective bargaining process to ensure that wages are fixed at the choice of both the employer and employees so that there will not be friction later on.
• The different wages board commission responsible for the fixing of wages and salaries in Sona Breweries Nigeria Plc should ensure an equitable wage level for the employee sustenance.
• Appropriate payment of wages and salaries should be ensured so as to avoid incentive strike.
• There should be in place an effective and efficient salary system in Sona Breweries Nigeria Plc that will give room for the motivation of the employees.
• The grading of salary must have a standard that meets the stated criteria.
• Since there is a direct proportion between the wages and salary of an employee and his performance, the salary state should be such that will motivate the performance of employee higher and better.

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