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IMPACT OF EMPLOYEE WELFARE SERVICES IN EMENITE CO LTD

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IMPACT OF EMPLOYEE WELFARE SERVICES IN EMENITE CO LTD

 

ABSTRACT

This research is aimed at examining the impact of Employee welfare services in business organization n Nigeria. It is organized in five chapters. Chapter one deals with the introduction which presents the background of the study where the topic under study was introduced, statement of the problem under study was given. Objective of the study research quotations, significance of the study, delimitations and definition of terms were dealt with. In chapter two, a review of related literature to the topic of study was extensively made. Moreover, in chapter three, the research design and methodology describing our respondents, methods of data collection was explained. Chapter four dealt with data collected and analyzed, the researcher found out that the management of Emenite co. ltd, and is not serious with the provision of welfare services. This inadvertly affected the productivity of the workers, which is poor. The research recommended that services of the company to the employees should be looked into and improved upon so that the workers will perform above average to avoid strikes, stoppages and the like.

 

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The practice of awarding welfare services to the employees has grown tremendously during the past two decades. New types of welfare are added each year and collective bargaining contract with unions deal as much with benefits as with direct payment. In any business organization be it private or public, there are set out objectives to be achieved. If that organization is profit oriented, it’s continuing existence depends on the degree of the achievement of it\s organization goals. Achievement of the objectives also depend on how judiciously the human and material resources of the organization are managed. If they are well managed, there will be profit but if otherwise there will be loss. The accomplishment of this is by giving incentives and benefits to employees called welfare services. Employers of labour have found out that for them to get full commitment and co=operation from their employees for the achievement of the organizational objectives, that the employees well – being should be given priority. Based on this observation, many organizations started to introduced welfare service programmes, with strong belief that a good employee service programme will improve employee morale.

The development of welfare services can be traced but to the Elizabethan Poor Law Act of 1988. this call for the appointment of overseer of the poor in every parish to set the able bodies on work and relieve those who could not work, and for the levying by each parish of a local rate to provide the means. This provision was strengthened by the Act settlement of 162 under which every one had a parish of settlement which was legally obliged to relieve him if he fell into need and under which there began the system of removal of those in need to the parish settlement. Throughout the chequered history of the poor law in the seventeenth and eighteenth century, the British parliament was continently craven to try to make these provision more effective in the face of the weakness of the local government machinery of their time and the lack of any adequate central administration to enforce standards.

The social security Act of 1953, passed in the make of the great depression was the federal government’s first general attempt at income maintenance on a sustained basis. The Act established two group of programmes. (a) Social insurance programmes – including old age, survivors, disability and unemployment insurance which distribute income payment, on the basis of prior earning and tax contribution. (b) Public assistance programmes – for the elderly, the blind, the disabled and families with dependent children which provide income support on the basis of need alone. Because benefits under the social insurance programmes depends on earning history and labour force attachment, only those with income in the past qualify for full time payments. Thus those mostly in need may be excluded.

The welfare service programme is not alien to our culture. Traditionally, our chiefs or the influential men are known to have had generous compensation packages for their subordinates or subjects who offered dedicated services. In the researcher’s area of study and other parts of Nigeria, the welfare packages does not only include the amount paid for a job or the fruit of their labour in the form of yams and normal days entertainment but other welfare services such as parcel of land to cultivate for himself, free seedlings and farm implements etc. At times, the employee, if under a chief is given free accommodation in the chief’s palace and such services make the workers happy and always willing to bring out his best whenever called upon to do something. This situation is the same with the modern business organizations. The only difference is in the method of payment and apparent charges in emphasis. The system in modern business organization is scientific. Employee welfare services is therefore the supplementary benefits which a worker receives apart from regular wages and salaries.

According to Michael Armartrong and Helen Mutis (1980) employee welfare service are “items in the total package offered to employees over and above salary, which increase their wealth and well – being at same cost to the employer”. The last 20 years have seen an unprecedented growth in the range of welfare service provided. Some of this growth has been hastily and ill – considered a short – term response to pressure imposed by the actual or supposed effects of taxation and by the well publicized activities of the more elements in salary market. Nwachukwu (1984) describes it as “something of value apart from the agreed regular monetary payment of salaries and wages given by an employer to an employee. As earlier stated, welfare scheme exists in all cultures and in all organizations and had existed at all times. They are called different names but fundamentally, each name is used to describe the well being of employees. Such names are welfare services, welfare benefits, employee benefits and amenties, fringe benefits etc. There are some who regard welfare services as employee income, such people call it supplementary compensation or pay and non – wage remuneration. Because such benefits are non taxable, they are called indirect compensations and non tax benefits

In the past some organizations that use the paternalistic approach of management occasionally give out something that could be regarded as “goodies” that from the high table of the master and they are called fringe benefit “marginal benefits”. But now welfare services have grown in size that some companies regard their own as “hidden pay roll”. For a company to achieve its objectives of introducing the scheme, it should be adequate, competitor and tailored towards the real need of the employee. Some organization lose their employees due to the poor nature of welfare services given to them and also because the employees are influenced by nature quality and quantity of welfare services offered, in the sense that they do compare themselves with their counterparts in other organizations. In Emenite Enugu, there are some sections where the employee show a laissez – faire attitude which the researcher might attributed to inadequate welfare services.

1.2 STATEMENT OF PROBLEM

Employees of most organizations because of welfare services attached and not only for the salary. These services include housing, transportation leave allowances, fee medical services, together with pension and gratuity.  There are example where organization in recent times have been faced with incessant angulations from the workers union and staff associations because of the inadequate employee welfare services, poor administration of the existing ones or total withdrawal of these services that attract them. Emenite company ltd is one of the few industrial establishment still operating in Enugu state whereas other such establishments have been plagues by incessant strikes and shut-downs and in many cases outright downs. One then wonders what makes Emenite tick, why are their workers happy and highly productive. Is it because of their salary structure or is it the welfare incentives given to their workers. As companied with other establishments, what welfare incentives does Emenite provide its worker. These and other related issues are what this research waits to unravel.

1.3 OBJECTIVE OF THE STUDY

The main objectives of this study are as follows:-

(1) To obtain information concerning the type of welfare services presently enjoyed by workers of Emenite co. ltd.

(2) To ascertain whether any of the services formally enjoyed by the employees in the company had been withdrawn and the reason for its withdrawal.

(3) To ascertain the problems if any that are encountered by the company in the administration of welfare services.

(4) To find out the truth about the motion that welfare services is one of the motivating factor for increased productivity.

(5) To ascertain the effect, if any, that non-provision of such welfare services has on the company by the impending actions of the employees.

(6) To make recommendations, if any, on the future administration of the welfare services in the company.

1.4 RESEARCH QUESTIONS

In order to guide the researchers in carrying out a meaningful study, the following research question were formulated:-

1. Has Emenite any welfare scheme far its workers.

1.5 SIGNIFICANCE OF THE STUDY

This study of the will help Emenite company limited, Enugu to realize the importance of good welfare services for the growth of the company. The study will also enable the company to solve managerial problems that involve welfare services. It will also help the employees to know their legitimate rights as employees, that is to know the welfare services due to them. The recommendations, if adopted, will help to minimize the frequently of industrial actions by workers other companies will also borrow a leaf from Emenite for smooth operation. In Nigeria today, both private and public organizations are facing problems because of the poor welfare services received by their workers. This has resulted in too productivity in most establishments and some have even stopped operation. This particular problem has thrown many employees into confusion.

1.6 DELIMITATION

This research work is limits to Emenite co. only and does not pretend to cover any or all such establishment.

1.7 DEFINITION OF TERMS

Frings Benefit:- This is the benefit granted by an employer to an employee that involes a money cost without affecting the basic wage rate. Remuneration Payment in reward made for work or services rendered.

Welfare Services These and Service Organized for the Improvement of Good Health, Comfortable Living and Working Conditions of Workers.

Industrial Action This is an act whereby Employees Embacked on Strike in order show Dissatisfaction.

Laisser – Faire Attitude Showing Unseriousness or Carefree Attitude Toward Ones Obligations.

Emenite This is a Business Organization Located in Emene, Enugu East Local Government, Enugu State. It Manufacture Building Materials for Example Roofing Sheets.

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