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IMPACT OF WAGES AND SALARIES ADMINISTRATION ON EMPLOYEE PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO 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. Infact, 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 is no significant difference between the hypothetical statement and research findings.

2. Hi: There is significant difference between hypothetical statement and research findings.

3. Ho: There are no significant differences between salaries and wages administration and employees productivity.

4. Hi: There are significant differences between salaries and wages administration and employees productivity.

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

6. Hi: There is significant difference between staff training, development and employee productivity.

RESEARCH QUESTIONS

A.  To what extent is the motivation influence on employee productivity?   

B. Is there and significant difference between wages and salaries administration and employee productivity?

C. Does training and staff development have any correlation Impact on employee Productivity?

D. To what extent has wages and salaries and other incentives have impact on organization efficiency?

1.4   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).

1.5   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.

1.5   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 reluctantion answering most of the questions being asked by them.

1.6   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.

REFERENCES

Ogundele, O.J.K (2004): Comparative Management and Administrative.

Akanji, R. B (2003): Principles of Personnel Management.

Drucker, P. (1964): The Practice of Management

James, M.G (1980): An analysis of Scientific Management and Wages Theories.

Austin, .O, & Ogunbameru, A. (2007): Introductory Text to Management.

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