Minimum Wage And Workers Productivity In Nigeria

Project and Seminar material for Public Administration

Abstract

This work tries to examine the impact of minimum wages on workers productivity in Nigeria. Public enterprises, with reference to Anambra State Board of Internal revenue. The study was borne out of the fact that workers are not adequately motivated in the organization. The study adopted survey design with a total population of 326 and a sample size of 180 which was determined through Yaro Yamane sampling Technique. Questionnaires and interview were the instrument used in generating data for the study. It was found out that there is a relationship between minimum wage motivates worker for higher productivity. It was also found out that the organization often motivates workers with wages incentives. The study concludes that human resource is a vital element in an organization which is the agent of productivity and every attention should be turned to motivating the workers so as to maximize organizational productivity. It was recommended that there should be a periodic wage increment for workers so as to be able to match the ever price rising commodities in the market. Workers should also be promoted as when due and all wages attachment should apply.

Chapter One

Introduction

1.1 Background of the Study

For many decades, the image of an average Nigeria government workers has been very poor, it projects a pictures of an uncomplicated individuals, whose sense of responsibility has been dulled by frustration and negativism. An average Nigeria government workers or civil servant is habitually non-challant to his duties. He needs to be closely supervised before he could discharge his duties. Bad attitudes displayed by the workers include , habitual lateness to duty, constant absence from duty under fictions excuses, maligning, sabotage of official interest etc.

The researcher believes that those multi-furious bad attitudes of an average government worker is rooted in a popular adage that “a hungry man is an angry man”.

The exponent of scientific management Taylor and his followers-maintained that the basic motive of a man at work was economic. Money was seen as a principal motivation instrument. Wage incentives are motivational factors. According to Croft (1996) motivation can be defined as “impulses that stem from a within a person and lead him to act in a way that will satisfy to get reward for their effort. The exchange of labour for financial reward in the market in the heart of pay process. People do not put forward their best unless they get reward for their work. Ubeku,(1975) stated that, the payment of goods salaries and wages is fundamental to the increase in the prerequisite for effective performance. In order to motivate people to put maximum efforts, it is essential that their various needs especially as it concerns their wage and salaries be satisfies as far as practicable.

According to Papola(1970: 123) “a just minimum wage to maintain not only the life but the health and the vigour of the working people is a law of necessity and knows no other law”. Therefore, motivation and productivity are twin concept in organizational development.

1.2 Statement of the Problem

Currently, the poor performance , lack of dedication and commitment of government worker have been a matter of concern and debate. How to improve the productivity of employees has been the topic of many seminars, symposia and conference. The reason for this trend, as well as appropriate avenue for the appointment of blame has formed the basis for the controversies. Many reforms in the public service a such as work ethics, transparency, dedication and commitment to duties are some of the ways of trying to improve productivity of the workers in the country.

According to Nwachukwu (1988:102)Nigeria people have always come with the impression that generally, Nigeria workers are lazy, sleepy, reluctant to act, unconcerned and deceitful in their approach; these workers are said to lack the zeal, the business and the momentum of hardworking people and generally, they dislike having anybody talk about efficiency, dedication, competence, determination and productivity of which characterise people in a production oriented society. In production oriented society, the employees strive to boost the morale of their employees with a view to eliciting positive attitude towards work. While the workers respond by fashioning ways of making their organization successful. In Nigeria, however there is inadequate stimulus to attract such responses, so the workers are still performing below average, morale still down and efficiency still nil. The problem therefore, lies in the low productivity of government workers in Oba Anambra state because.

The management sees motivating their effort force as something not too important because they do not value their employees.
They lack an enabling environment for work performance, poor incentive, tribalism, and sentiments, bureaucracy and quota system helps in contributing to poor performance.
The management do not adequately motivate their employees giving rise to low morale among the workers.

1.4 Objective of the Study

The general purpose of the study is to examine the impact of minimum wage on workers productivity with reference to Anambra State Board of Internal Revenue.

Other specific objectives include:

To find out the relationship between minimum wage and worker productivity in Anambra State Board of Internal Revenue Akwa.
To ascertain the extent of implementation of minimum wage policy in Anambra State Board of Internal Revenue Akwa.
To explore how workers get motivated through minimum wage increment in Anambra State Board of Internal Revenue Akwa.
To make recommendations on how to maximize workers productivity in Anambra State Board of Internal Revenue Awka.

1.4 Research Hypotheses

Hypotheses one

Ho: Minimum wage increase does not influence staff motivation
Hi: Minimum wage increase influences staff motivation

Hypotheses Two

Ho: There is no relationship between minimum wage and productivity
Hi: There is a relationship between minimum wage and productivity

1.5 Significance of the Study

The importance of this study stems from the fact that the government workers play vital roles in nation development and sovereign existence of any country.

Therefore, the welfare and efficient performance of the government workers could be given priority attention by any successive administration (be it military or civilian administration).

The benefactors of this study are:

Workers:

This will help the workers to be move devoted to their work and improve in place where they are lacking

Future Research:

It also enable future researchers to make use of this work for more finding and future reference.

1.6 Scope and Limitation of the Study

This study is primary concerned with minimum wage and worker’ productivity in Nigeria. This study covers Board of internal Revenue Awka. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 Definition of Terms

Wages:

A total earning a worker receives for the performances of services within a period of time.

Productivity:

Is the capacity or situation where an individual or organization produces maximum results with available human, financial and material resources to achieve set organizational objectives.

Motivation:

Is a theoretical construct used to explain behaviour. It represents the reasons for peoples actions desires and needs.

Performance:

Is deemed to be the fulfilment of an obligation, in a manner that releases the performer from all liabilities under the contract.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concerned 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, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain a critical analysis of minimum wage and workers’ productivity in Nigeria.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations are made, which in the opinion of the researcher will be of benefit in addressing the challenges of minimum wage and workers’ productivity.

5.2 Summary

This study aimed at having a critical analysis of minimum wage and workers’ productivity in Nigeria. Four objectives were raised. These objectives include: To find out the relationship between minimum wage and worker productivity in Anambra State Board of Internal Revenue Akwa, to ascertain the extent of implementation of minimum wage policy in Anambra State Board of Internal Revenue Akwa, to explore how workers get motivated through minimum wage increment in Anambra State Board of Internal Revenue Akwa, to make recommendations on how to maximize workers’ productivity in Anambra State Board of Internal Revenue Awka.

5.3 Conclusion

Based on the above findings pertaining to the objectives of the study Nigerians who are lucky to have jobs are finding it increasingly difficult to survive on their monthly pay because the pay of the Nigerian worker is one of the lowest in the world. The pay and conditions of work have continued to deteriorate. Workers in the public sector are particularly worse off. The effective management and implementation of the minimum wage requires the efforts, commitment and collaboration of all stakeholders.

5.4 Recommendation

Individual states should be allowed to pay their workers minimum wage based on their financial strength and the subsisting cost of living or living wage. The variation in revenue profile of states in Nigeria is undermining their respective ability to pay minimum wage. Therefore, Federal government overriding role in wage fixing and labour related matters without giving primacy to the economic considerations of states amount to an exercise in futility.
Government should ensure they monitor organizations with culture of unfair labour practice and low wages. Unfortunately, some organizations have very bad culture of unfair labour practice and exploit every available opportunity to oppress, repress, and even make minimum wage bill not to be passed into law in other to enslave workers. Such organizations convert their workers to contract or casual staff so that none of their staff working strength would be up to 50 workers since the minimum wage apply to organizations with at least 50 workers.
There is need for Government to reduce the cost of governance and improve the living standard of workers by fixing a better wage, also tackle political corruption necessary for taming or curbing the flamboyant and ostentations lifestyle of political office holders. This must be done so that minimum wage laws will not remain a “paper tiger” but an effective government policy.
Diversifying the Nigerian economy is necessary for states to enhance their internally generated revenue and step into creation of employment opportunities. The labour market situation has a strong interplay as determinant of wage or compensation. This is as a result of the unprecedented level of unemployment and poverty in the country, period of unemployment do not generally favour high pays as employers have the opportunity to attract high caliber employees without necessarily offering the legal minimum wage which may be considered as adequate or excessive.