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THE EFFECTIVINESS OF COMPENSATION PACKAGE ON WORKERS PERFORMANCE IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Pay in one form or another is certainly one of the main springs of motivation in our society. It was further argued that pay has overwhelmed symbolic value - Ghisclli and Hyman Porter, Haired and Mason (1963). Despite the above philosophical phase which identifies the role of compensation pay or reward as an effective instrument in an organizational growth drastic changes are now affecting the world of work. These according to "Coscio 1995" result from increase global competition, the impact of information technology, the re-engineering of business processes and the gradual deterioration and disappearance of job as a fixed bundle of task. This trends are producing a redefinition of job itself and it is from this perspective that management can be seen as an Intermediary between organization and the individual employee, focusing, developing and implementing policies for attracting maintaining and motivating the individual within an organization.

Merton (1957) proposed the societal or (organization) state is most likely to give rise to feelings of alienation which are characterized by a disjunction between those norms that define the appropriate ways of obtaining the set goals of the organization. This implies that the Merton, model contends that the discrepancy between socially appropriate end and available means tends' to produce individual feeling of alienation which in turn give rise to such outcome or result as grievances, job dissatisfaction, absenteeism and individual apathy to work. The Mertonian model forms the framework for this study, which is an empirical examination of the relationships between the following variables among junior and senior staff of the Nigeria Police, Lagos State Command, Railway Command and Force Head Quarters Maloney, Lagos.

1. Perceived compensation cum incentives which is regarded as an indicator of the degree of felt disjunction between approved ends and available means.

2. Employee voice and representation, which reflects an individual feelings of power less ness isolation, intimidation and power lessens and

3. Job dissatisfaction, which is taken as an outcome or result of feeling alienated by management policies in work situation. The research, therefore look at management policies as specified structural conditions which could lead to a set of feelings of alienation or otherwise that will result into certain specified outcomes, like job dissatisfaction or job satisfaction.

1.2   STATEMENT OF THE PROBLEM

As far as compensation is concerned, no organization can dispute the fact that incentive (money) remains the most motivator to employees of any organization or company. But in recent time, the compensation cum incentive given to employees by the private and public companies has become a peanut in our today economy.The importance of incentive, compensation (money) as a motivator cannot be over emphasized, particularly in this part of the world where money is seems to be the most motivating factor. Money is a crucial incentive in any work setting; and to most workers in many parts of the world particularly in the developing countries where the level of poverty, unemployment and other social malaise reign supreme. "It is the single most important motivator to an African worker" Obisi C (1996) to some individuals, money can symbolize almost anything to the extent of worshipping it. One major trend in industrial relation practice in Nigeria is the patronizing if not condescending attitude of management and heavy investment of the state in industrial relations.

The Labour Act is supposed to protect workers against abuses presumably by employers· The Act deals with wages, contract of employment, terms and conditions of employment, recommitment and special category of workers such as apprentices women, young persons, domestic servants. The Act does not guarantee the right of individual to gainful employment and if one is lucky to get one, nothing guarantees the (tenure) security to tenure and more so the hours of job is not strictly adhered to Although the labour Act makes provision for payment of wages the criteria for arriving at a fair wage and what constitute a fair wage or what is sustainable are not stated and when workers agitate for what they considered fair, sustainable and human wages, punitive measures are taken against them. Management becomeshostile and aggressive.

1.3   OBJECTIVES OF THE RESEARCH

With the situation of this research problem, the research tends to:

1. Examine workers views on the management policies with regards to compensation cum incentives and employee's voice cum representation in the Nigeria Police (Lagos State Police Command, R/way command and FHQ (Maloney).

2. To identify if it has bought about job satisfaction or otherwise to them (workers, both junior and senior staff) and if there is a mark difference between the junior and senior staff in relation to job satisfaction or otherwise.

1.4    RESEARCH QUESTIONS

This study tends to provide answers to the following questions.

i. Junior staff should perceive themselves to be given significantly less compensation, incentives, employee voice and representation than the senior staff by these management policies.

ii.   Junior staff should feel more alienated than the senior staff in the organization.

iii.    Junior staff should be less satisfied than the senior staff.

iv.    Junior and senior should be dissatisfied with the management policies (on compensation cum incentives and employee voice cum representation).

1.5    RESEARCH HYPOTHESES

This research can be summed up in the following hypotheses:

Ho1:  Junior staff do not perceive themselves to be given significantly less compensated with incentives, employee voice and representation than the senior staff by the management policies.

Ho2: Junior staff do not feel more alienated than the senior staff in the organization.

Ho3:  Junior staff should be less satisfied than the senior staff.

Ho4:  Junior and senior should be dissatisfied with the management policies (on compensation cum incentives and employee voice cum representation).

1.6  SIGNIFICANCE OF THE STUDY

The research is to confirm whether management polices could lead to the feeling of alienation (anomie." normlessness and powerlessness) which 'will lead or result into certain specified outcome such as job dissatisfaction or a contrary outcome, The research was to also confirm whether job satisfaction or otherwise is a function of the individual position in an organization (senior and junior officer). It is also to help Open Avenue for more researches in this area in another sector of the Nigeria economy can the world at large.

1.7  SCOPE AND LIMITATION OF STUDY.

The scope of this study revolves around measuring the Effectiveness of Compensation Package on Workers Performance in an Organization with special reference to The Nigeria Police Force)

The major constrain in the course of this study is the inadequate access to related material as well as difficulties in sourcing information. Also, scarcity of consistent comparable data is another major hindrance to efficient and effective analysis of the impact of entrepreneurship innovation in the course of this study.

1.8   DEFINITION OF TERMS

i. Management Policies:These may be defined as predetermined guide established to provide direction in decision making, concerning employees in an organization.

ii. Compensation Cum Incentives:This is seen as all rewards individual receives as result of their employment in an organization such as financial rewards, promotion, retirement programs holidays, medical, insurance and pleasant working environment.

iii. Job satisfaction:It could be defined as a feeling of fulfillment and

iv. Alienation:This is used to mean powerlessness, normlessness and anomic or feelings in an individual owing to the management policies in an organization.

a. Powerlessness: a feeling of lack of influence OVEH events that affect oneself.

b. Normlessness: a feeling that accepted standard are breaking down e.g. due to favoritism.

c. Anomie: a feeling of hopelessness with current organization (work place).

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