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EFFECT OF SALARIES AND WAGES ADMINISTRATION ON EMPLOYEE’S ATTITUDE TO WORK IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Salaries and wages administration is an essential factor that determine to success and failure of any organization. This system of motivating workers is very important for every organization to take proper consideration through salaries and wages as a factor of motivation can work to some extent, which means they have limitation in motivating workers to effectively if when they are not apply in proper way.

According to Edward Flippo (2002) salaries and wages administration is one of the essential ways of managing an organizations employees (which is called personal management) which involves planning, organizing, directing and Controlling of the procurement, development compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.

Wayne F. Cascio (2000) states that ‘compensation which involves direct cash payment, indirect payments in the form of employees benefits and incentives to motivates employees to strive for higher level of productivity is what is meant by salaries and wages. And it is a critical component of the employment relationship.A good compensation package (salaries and wages) is a good motivator; hence, the primary responsibility of manager is to ensure that the company’s employees are well paid.According to John Wales (2007), money as a factor which serves as a potential dissatisfies if not present in an appropriate quantity but starting us on essential satisfier or positive motivation. It is apply in an appropriate way. Therefore this study is basically carried out to examine factors that make workers to be committed to their work while others are not.

Human resources management involves a series of activities in which the job, the individual and change. It is oriented towards efficiency and the welding of people in effective organizations for the pursuit of abstract organizational.

Objectives some of the major activities of human resources management are: recruitment, selection, placement, wages and salaries, staff development e.t.c in business the “salaries” has come to be associated with white-collar administrative staff who are not paid by the how and the word “wages mainly with manual workers, who are paid by the how. Salaries and wages are compensation of workers for the jobs they have dome or service rendered. Salaries and wages are supposed to motivate workers, which is not applicable in all cases despite the fact that some employees are paid and even heavily paid, they still behave anyhow at work while others that are not paid as much, yet have a good attitude to work. This study is purposely to examine how salaries and wages affect employee’s attitude to work in an organization.

1.2    STATEMENT OF THE PROBLEM

            Lack of understanding of employee’s behaviour at work and their attitude to such work has posed a number of problems to the society. Most managers and employees believe that the important thing that can motivate the workers to work is to pay their salaries and wages in time. Another problem that people said to understanding is that there is what is said to understand is that there is what is called intrinsic reward that motivate employees to work, rather the salaries and wages they are being paid.Lack of understanding that employees are mostly concerned with wages and salaries (extrinsic reward) as well as job satisfaction (intrinsic reward) and not only how far the salaries and wages can affect employee’s attitude. The reasons for above problems have made salaries and wages administration a researchable problem in our society.

1.3       RESEARCH QUESTIONS

1.      To what extent has salary and wages affected the performance of workers in an organization.

2.      Can salaries and wages alone satisfy employees in an organization?

3.      Do salaries can motivate employees more that intrinsic rewards?

4.      To what extent is the effect of salaries and wages administration affect employees’ attitude?

5.      How has salary and wages affected the improvement of the workers’ performance?

1.4       OBJECTIVES OF THE STUDY

It is one thing to be blessed with abundant human resources and another to manage these resources to achieve stated objectives.  No organization can hope to move or improve positively without the effort of her workers and as such sound salaries or wages is a sine qua non for improved performance of workers. They contributed in no small way towards improved performance in the organization. Therefore, this study among other things is aimed at achieving the following objectives:

(1)  To determine the relationship between salaries and wages and workers’ productivity in an organization.

(2)  To measure if a day work: earning is directly proportional to the time worked but rates are graded.  This is mostly applied to daily paid employees.

(3)  To ascertain whether salaries and wages administration boosts the performances of the workers.

(4)        Fringe benefit: this is an extra amount paid to employees to better their working conditions, it is inform of rent supplements, transport allowances, etc.  It gives employee a desirable working conditions and it satisfies their needs.

1.5       RESEARCH HYPOTHESES

For the purpose of this study, the following hypotheses are postulated:

(a)  That the salaries and wages of the organization has no significant relationship with the employee attitude (Ho)

That salaries and wages administration has a significant relationship with the employee attitude in the organization (Hi) 

(b)  There are no inadequacies in the provision of salaries and wages of workers as at when due (Ho)

There are inadequacies in the provision of salaries and wages of workers as at when due (Hi).

(c)   Salary and wages administration is not important in an organization (Ho)

Salary and wages administration is important in an organization (Hi)

(d)  Improvement of workers is not based on salaries and wages (Ho)

Improvement of workers is based on salaries and wages (Hi)

(e)  There is no need for salary and wages administration in an organization (Ho)

There is need for salary and wages administration in an organization (Hi)

1.6   SIGNIFICANCE OF THE STUDY

At the end of this study, the researcher hopes that, those who come across this research work will be able to understand the need for salaries and wages administration and their place in the organization. Business organizations students and employees of labour may also find the recommendation at the end of the study useful, if they can strictly adhered to it.

1. 7    LIMITATION OF THE STUDY

            This researcher work suffers a lot of limitation in the areas of fiancé, absence from lectures, time factors, inadequate text books and relunctancy of the respondents to give relevant information.

1.8     OPERATIONALIZATION

The aim of this research work is to expand the scope of knowledge about the possibility of measuring the positive effect of salaries and wages administration on employee’s attitude in an organization. This research work is going to be conducted in first bank on Nigeria. The research model will be described by assuming salaries and wages administration as the independent variable and employee’s attitude as the dependent variable. This can be mathematically written in a linear equation model as follows: Y=f (x), where y represent employee’s attitudes and x represent salaries and wages administration.

1.9       DEFINITION OF TERMS

1.            Effects:  The way in which an event, action or person changes something.

2.            Salary:  Money that someone is paid for service rendered according to number of hour, days, week or monthly.

3.            Wages:  money that someone earn, that is paid according to numbers of hours, days, or weeks that he worked.

4.            Organization: A group of people that come together for a particular purpose or group of people that form a particular aim.

5.            Administration: all the activities that are involved in managing, organizing and controlling the affairs of company institution and organization.

6.            Employees: These are set of people who do regular work or occupation and are paid wages or salaries in return.

7.            Attitude: to Work:Way of feeling, thinking or behaving towards work.

8.            Extrinsic Reward: Reward that come from outside. It can be salaries or Wages

9.            Intrinsic Reward: This is reward that comes from within the employ, such ads job satisfaction.

10.        Payment: This is a reward payable to employee according to performance.

11.        Special Allowance: This is payment made to employ who displays high skills or who stayed for along period in the company

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