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EFFECT OF REMUNERATION ON EMPLOYEES JOB SATISFACTION.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The role of remuneration in shaping the live of an organization cannot be overemphasized. Now, remuneration management has been described as the development, implementation, maintenance, communication and evaluation of reward processes (Galanou et al cited in Aninkan, 2014).Ordinarily, the management of people at work is an integral part of the management process, put differently, managers need to understand the critical importance of people in their organizations so as to recognize that the human element and the organization are synonymous (Popoola et al cited inOdunlade, 2012) Therefore, it is imperative to compensate an employee with benefits if he merits it. It is put that because of the importance that compensation holds for people's lifestyle and self esteem, individuals are very concerned about what they are paid – a fair and competitive wage, while organizations are also concerned about what they pay because it motivates important decisions of employees about taking a job, leaving a job and on the job performance (Cascio cited in Odunlade, 2012).

The concept of compensation according to Bernadin ( in Odunlade, 2012) refers to all forms of financial returns and tangible benefits that employee receives as part of employment relationship. Given the whole ambits of human resource management, hardly is any issue more important, relevant, and crucial to an employee than what he receives in exchange for his labour and services to the organisation. In present days, among manager’s tasks is to create an environment which motivates people to perform satisfactorily and to be a profitable asset, so that they can foster the organisation’s growth. Job satisfaction and motivation are two inseparable brothers.

The issue of job satisfaction has being the cause of incessant disputes with the NLC and the Federal Government. Ditto is the case with the Academic Staff Union of Universities. The issues range from autonomy, bad working conditions, failure to fulfil agreements, to inadequate remuneration. In Lagos State tertiary educational institutions, the complaints have being the unpaid salary arrears, high handedness of governing councils, late payment of monthly salaries and allowances. For employees to be effective and efficient on their job, it is imperative to be satisfied with their job. Hence, the undertaking of this study will examine the Effect of Remuneration on Employees Job Performance with a special reference to Ikorodu Local Government Area (LGA).

1.2   STATEMENT OF THE PROBLEM

Employee performance no doubt is a prerequisite for the growth of any organisation or even a nation. The absence of employee performance is a national disaster in Nigeria. No wonder the nation is not moving forward. The current agitations, gingles and adverts by NULGE as advocacy for the autonomy of local government councils is an indicator of dissatisfaction with their job. Salaries of local council employees are delayed, and that is even when it is paid at all. The academic thrust is not spared of this crises, the ever lingering strikes by the academic and non-academic staff unions of universities and polytechnics have always been on the premises of dissatisfied working terms and poor remuneration package.

Productivity suffers a lag if compensation is poor or inappropriately used. Some of the problems associated with reward management system include the following; the negotiation and bargaining period of total reward system is difficult. This is so because, some portions of total reward were not backed up by laws/legislations but by negotiation and bargaining processes. Sometimes, the employer proves very difficult to negotiate with. While the employee wants the highest and the best package, the employer would like to minimize cost as much as possible for profit maximization. Bad and depressed economic condition in Nigeria makes it difficult to fully implement a good compensation management system.

In organised societies, firms see an average worker as the root source of quality and productivity gains. Those organisations or nations do not look at capital investments but to employees, as the fundamental source of improvement. Over there, is an increased emphasis on people as a key source of competitive advantage, often being regarded as the key differentiator between organisations, and many managers try to comprehend the complexities of motivating people at work and provide them with job satisfaction so that they can gain employee commitment. Most employers of labour in Nigeria disregard labour laws and edicts. Sometimes, this situation leaves the dejected employee with no other condition than to accept what is offered to him, otherwise, he will face unemployment consequences. Therefore, this study seeks to determine the Effect of Remuneration on Employees Job Performance with reference to Ikorodu Local Government Area (LGA).

1.3   OBJECTIVES OF THE STUDY

The major objective of this study is to assess Effect of Remuneration on Employees Job Performance with reference to Ikorodu Local Government Area (LGA). While other specific objectives include the following:

· to examine the effect of compensation on employee’s job performance

· to establish the relationship between compensation management and employee commitment.

· to determine the effect of reward system on industrial action in Ikorodu LGA.

· to assess employees’ job performance and the implementation of compensation management inIkorodu Local Government Area.

1.4   RESEARCH QUESTIONS:

The undertaking of this research project will beam a searchlight on the following research questions;

· Is there an impact of compensation on employee job performance?

· What is the relationship between compensation management and employee commitment?

· Is there any relationship between reward system and industrial action in Ikorodu LGA?

· Does employees’  compensation management has effect on job performance?

1.5    RESEARCH HYPOTHESES:

The researcher intends to test the following hypotheses at 0.05 level 0f significance:

Hypothesis One:

Ho:There is no significant relationship between incentive programme and employee jobperformance.

HI:There is a significant relationship between incentive programme and employee jobperformance.

Hypothesis Two:

Ho: There is no significant relationship between compensation management    and    employee commitment

HI:There is a significant relationship between compensation management       and    employee commitment

Hypothesis Three:

Ho: There is no significant relationship between reward system and  industrial  action in Ikorodu LGA.

HI:There is a significant relationship between reward system and industrial  action inIkorodu LGA.

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