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1-5 Wages and Salarie

This chapter provides an introduction to the study. It discusses wages and salaries administration as part of total compensation packages and how they are used to attract, motivate, and retain employees. It also discusses incentive schemes, job evaluation, intrinsic and extrinsic rewards, and how wages and salaries administration can impact productivity. The chapter then presents the statement of the problem as determining appropriate wages and salaries after privatization to satisfy organizational and employee needs. Finally, it outlines the objectives and research questions that will guide the study.

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0% found this document useful (0 votes)
170 views40 pages

1-5 Wages and Salarie

This chapter provides an introduction to the study. It discusses wages and salaries administration as part of total compensation packages and how they are used to attract, motivate, and retain employees. It also discusses incentive schemes, job evaluation, intrinsic and extrinsic rewards, and how wages and salaries administration can impact productivity. The chapter then presents the statement of the problem as determining appropriate wages and salaries after privatization to satisfy organizational and employee needs. Finally, it outlines the objectives and research questions that will guide the study.

Uploaded by

Kvng Lear
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 40

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. Abuja Electricity Distribution Company.. review of wages

and salaries are done at regular interval through negotiation between the management and the

employee’s representatives. Also, salaries are promptly paid to employees. Again, the payment

of double increment and productivity bonus. Otherwise 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

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characteristic of the job as contained generally in the job description. Extrinsic rewards refer 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

Abuja Electricity Distribution Company.. These are some of the relevant issues addressed in this

study.

1.2 Statement of the problem  

Once the firm is privatized the reconstruction is done on the expenditure of the firm cutting

down some of the expenditures such as wages and salaries, material cost power cost etc to

achieve the objective of cost minimization. When the low wages and salaries is set the

employees show dissatisfaction especially when it fails to meet their cost of living and request

or more pays but the firm on its part decides not to grant due to its implication on the firm return

of the investment when often result in unhealthy industrial harmony in the privatized firm.

However the privatized firm faced with the problem of wages and salary determination after its

privatization to satisfy both the requirement of the organization and that of the workers on the

other hand.

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.to this end, this project seeks to evaluate the impact of wages and salaries

administration on workers productivity in Abuja Electricity Distribution Company.

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1.3 Objectives of the study   

The main aim of this study is to assess the problems of wages and salary administration in

Abuja Electricity Distribution Company Abuja.

1. To evaluate the impact of wages and salaries administration as a tool for attaining

organization productivity in Abuja Electricity Distribution Company.

2.  To ascertain the effectiveness of wages and salaries administration in in Abuja Electricity

Distribution Company.

3. To find out how wages and salaries can contributes to improve employee productivity in

Abuja Electricity Distribution Company.

1.4 Research questions

1. How does wages and salaries administration serve as a tool for attaining organization

productivity in Abuja Electricity Distribution Company.?

2.  How effective is the wages and salaries administration in Abuja Electricity Distribution

Company.

3 how does wages and salaries administration contributes to improving employee productivity

in Abuja Electricity Distribution Company.

1.5Significance 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;

says a private sector like the Abuja Electricity Distribution Company.. 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

employee’s effectiveness and efficiency.

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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 suggests ways, if necessary on how to enhances,

improved wages and salaries. In the kefir organization

1.6 Scope of the study

The research work will focus on evaluating the impact of wages and salary administration in

Abuja Electricity Distribution Company. .

1.7   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.

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CHAPTER TWO

LITERAATURE REVIEW AND THEORETICAL FRAMEWORK

2.0 Introduction.

This chapter talks about the review of related literature, clarification of concepts and theories

related the topic under study

2.1 Conceptual framework

2.1.1 Concept of Wages.

The term ‘wage’ can be defined as the payment made to workers for placing their skill and

energy at the disposal of an employer, the method of use of that skill and energy being at the

employer’s discretion and the amount of payment being in accordance with the terms stipulated

in a contract of employment of service. Wage forms the basis for the calculation of the

compensation of an employee.

A wage is payment made by an employer to an employee for work done in a specific period of

time. Some examples of wage payments include compensatory payments such as minimum

wage, prevailing wage, and yearly bonuses, and remunerative payments such as prizes and tip

payouts. Wages are part of the expenses that are involved in running a business. It is an

obligation to the employee regardless of the profitability of the company.

Payment by wage contrasts with salaried work, in which the employer pays an arranged amount

at steady intervals (such as a week or month) regardless of hours worked, with commission

which conditions pay on individual performance, and with compensation based on the

performance of the company as a whole. Waged employees may also receive tips or gratuity

paid directly by clients and employee benefits which are non-monetary forms of compensation.

Since wage labour is the predominant form of work, the term "wage" sometimes refers to all

forms (or all monetary forms) of employee compensation.

Wages are the total earning a worker receives for the performance of services within a period of

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time. That they are equal to the product of an hourly rate, times the number of pieces plus

houses, premiums and fringe benefits. Thus a rate of pay may be based on time output or

guaranteed hourly rate plus a bonus ordinarily based on the amount of extra work put beyond

the standard required. Rose (2008) also defined “wage as a stated sum per price, hour, day or

any other unit or period”. Salary on the other hand refers to the weekly or monthly rates to

clerical, administrative and professional employees Salary is mostly determined by mutual

agreement between the individual and the employer (Odoh (2012). They are sometimes

determined or fixed by the government. The two concepts could therefore be used inter-

changeably to mean the same thing. Wage or salary is usually based on an agreement between

the labourer who offers to sell his services to the management who in turn accepts to pay money

in return for the services of the labourer. The monetary value of the services rendered by the

employee depends on the quality of services rendered and effort put into such services by the

employee.

Odoh (2012) maintained that wage and salaries that workers receive from his organization is

significant to him or her in three major ways: economic, psychological growth and motivation.

The economic importance of wage and incentives is most obvious because it serves as a way of

obtaining the necessities and luxuries people need and want. Many workers do not have sources

of income besides their pay; therefore employment in organization is the way to obtain the

material necessities of life which can be expected for such items as food, rent, clothes and

countless other goods and services. Obasa (2015) noted that wages are important for what they

symbolize.

2.1.2.1 Types of Wages

i. Minimum Wage:

A minimum wage is a compensation to be paid by the employer to his employee irrespective of

his ability to pay. The minimum wage must provide not only for the bare necessities of life but

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also for preservation of efficiency of the worker namely education health, other requirements

and amenities.

ii. Living Wage:

A living wage is a compensation which enables the earner to provide himself and his family

with not only the barest necessities of life like food, shelter, and clothing but also a measure of

frugal comfort including education for children, protection against ill health, demands of social

needs, insurance against misfortunes and old age needs. This wage ensures standard of living.

iii. Fair Wage:

It represents the average of minimum wage and living wage. It is above the minimum wage and

below the living wage. The wage is linked with the capacity of the industry to pay. It depends

on factors like labour productivity, wage prevailing in the same and neighbouring localities, the

level of national income and its distribution and the place of industry in the economy of the

country.

iv. Direct and Indirect Compensation:

Direct compensation refers to monetary benefits offered to the employees for the services

rendered by them to the organisation. The monetary benefits include basic salary, HRA,

conveyance, leave travel allowance, medical reimbursements, bonus, gratuity, PF, etc. Indirect

compensation includes non-monetary benefits such as leave, insurance, holiday homes,

hospitalisation, etc.

v. Time Rate and Piece Rate System:

In time rate system, wages are paid based on the time spent by the employees in the factory. The

production by workers is not considered. In piece rate system, the payment is related to the

output given by the worker. The wage rate is fixed for piece of work or for certain quantity of

production.

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2.1.2 Concept of Administration.

According to Theo Haimann, “Administration means overall determination of policies, setting

of major objectives, the identification of general purposes, and laying down of broad

programmes and projects”. According to Newman “Administration means guidance, leadership

& control of the efforts of the groups towards some common goals.” According to Pfiffner and

Presthus (1967) administration means “An activity or process mainly concerned with the means

for carrying out prescribed ends.” As the definition clearly indicates, administration is mainly

concerned with the means that are necessary for the accomplishment of pre-determined goals.

Here means is the way by which something is done or obtained. When groups of individuals are

working for the accomplishment of a common goal, a division of labor is necessary, so that each

individual will know what to do. Or there is the need for an authority structure to control and

coordinate the activities of the individuals involved. Thus dividing the work among the

members, having a proper role assigned to every member in the group, following the leaders

instructions are nothing but the means to achieve the goal. In this sense, administration is an

activity mainly concerned with the means which also requires cooperation as well. According to

Simon, Smithburg, Thompson (1950) “Administration can be defined as the activities of groups

cooperating to accomplish common goals” Human activity is cooperative if it has the effects

that would be absent if the cooperation did not take place. Thus, administration can be defined

as “the complete effort of the group to control, guide, and adapt to accomplish the pre-

determined goals.”

2.1.2.1. Types of Administration

i. Public administration

Dimock, a Professor of Public Administration at the Department of Government at New York

University, said that public administration is the fulfillment or enforcement of public policy as

declared by the competent authorities. Certainly, it deals with the problems and powers of the

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organization and techniques of management involved in carrying out the laws and policies

formulated by the policy-making agencies of government. Public administration is the law in

action. It is the executive side of a government.

ii. Business administration

According to Wikipedia, business administration is the administration of a commercial

enterprise. It includes the performance or management of business operations and decision-

making, as well as the efficient organization of people and other resources to direct activities

towards common goals and objectives.

2.1.2.2 Functions of Administration

The following are some of the functions that are closely related to administration:

1. Planning

Before starting a project, you must make a plan. The things you need to determine include what

to do, how to do it, when to do it and who should do it. In planning, you must establish goals

and arrange them in logical order. Plans are useful for mapping the path from where your

company stands to where you want it to be in the future.

2. Organizing

This function involves task division, grouping responsibilities into departments, specifying

organizational relationships, and staffing (recruitment of workers to fulfill certain positions).

The goal is to achieve coordinated efforts among all elements within the company. Organization

must take into account delegation of authority and responsibility and span of control within

supervisory units.

3. Managing resources

Generally, sufficient resources must always be available for the plan to work properly.

Resources include labor, capital, facilities, and others. Here’s a curated list of resource

management best practices to consider:

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 Understand which resources are in short supply and focus on them

 Agree on a common approach to prioritizing work across shared resources

 Embrace different ways of working across the organization and resources

 Realize resource management is an ongoing process, conflicts will occur, and changes

are inevitable

 Use Procurement Software to help you prepare resources and get the best deals

4. Directing

Employees must receive guidance towards a common goal. In this case, you must allocate

resources appropriately and provide effective support. Directing requires good interpersonal

skills and the ability to motivate people. One of the most important things in directing is finding

the right balance between emphasis on staff needs and emphasis on economic production.

5. Controlling

Control is the evaluation of quality in all areas and the detection of possible or actual deviations

from the plan. This ensures high-quality performance in order to deliver satisfactory results

while maintaining an orderly and trouble-free environment.

6. Budgeting

Budgeting is a process of looking at a business’ estimated incomes (the money that comes into

the business from selling products and services) and expenditures (the money that goes out from

paying expenses and bills) over a specific period in the future. So, it allows a business to see if

they will be able to continue operating at their expected level with these projected incomes and

expenditures. To stay within your budget, you can

2.2 Review of related literature

Agburu (2012) investigated the recent trends in wage and salary administration in Nigeria. This

study took a critical perspective on the generic forces at work in recent times that relate to wage

policies, strategies and schemes aimed at creating a conducive atmosphere for the workers (both

10
in the private and public sectors) in Nigeria to perform. The main objective of the study is to

determine the key forces affecting wage and salary administration in Nigeria. Data collected

were analyzed using descriptive statistics. The study found an unwarranted lags between labour

(employee) pay and productivity. The study also found huge income differentials between the

various levels of government where the employees buy from the same market. The research

further found that the cost of living has been rising astronomically relative to wages and salaries

paid the workers as the aggregate Okeke, Nwele and Achilike (2017) examined the impact of

effective wages and salary administration on civil service productivity in Nigeria with specific

reference to Anambra State. Percentages, mean ratings, Chi-square test and T- test for

independent were employed in analyzing the data. The study revealed that employees need

effective salary and wages administration to achieve high productivity in the civil service. The

study found also that poor leadership and lack of political will were the major reasons for not

fully implementing the minimum wage policy by some state governments including Anambra

State. Ojoromi (2012) investigated salaries and wages administration as a tool for improving

employee’s performance in an organisation with particular reference to Olamaboro Local

Government Area of Kogi State. The data generated were analyzed using Chi-square technique.

The study found that salary and wages administration is an essential part of any productive

organization. The study also found that salary and wages improves the performances of the

employee’s in an organization Odoh (2012) investigated the effects of wage incentives and

fringe benefits on the productivity of Nigeria workers using Enugu State Local Government

Service Commission as the focus of the study for the period between 1999 to 2007. Descriptive

statistics like frequency and percentage were employed in analyzing the data. The study found

that irregular and inadequate wages/salaries, low level of fringe benefits and lack of collective

bargaining process brought about low productivity of workers of Enugu State Local

Government Service Commission. The study also found out that financial as well as

11
nonfinancial reward, promotion and conversion are strategic in the promotion of productivity in

organizations. Olatunji and Sarat (2014) examined wages and salaries administration as

motivational tool in Nigerian organisation using Nestle Nigeria Plc as the focus of the study.

The study went further to distinguish between gratuitous and paid job with possible effect of

wages and salaries as it relates to individual contribution and effort towards the achievement of

the corporate goals and objectives. The study made use of a self-designed questionnaire. Chi-

square technique was employed in analyzing the data. The study found that wages and salaries

serves as motivational tool and that wages and salaries has significant relationship with workers

performance in Nigerian organisation. Iyida (2015) examined the effect of increase in wage and

fringe benefits on the productivity of workers in Federal Ministry of Transportation, Enugu,

Nigeria. The data generated were analyzed using frequency and percentage. The study found

that increase wage in the Federal Ministry of Transportation enhances the productivity of

workers to a large extent thereby affecting their attitude to work. The study also shows that the

monetization of fringe benefits has improved the performance of workers to a very large extent

thereby bringing job satisfaction among workers. The study also showed that the monetized

fringe benefits could only satisfy the basic needs of workers to a very small extent because of

high cost of living. Obiora (2012) carried out an empirical analysis on wages administration and

civil services productivity in Anambra State. The population consisted of some civil servants in

Anambra. The data generated were analyzed using simple percentage and chi-square (X2). The

study found no significant difference between the opinions of the senior and junior civil

servants in Anambra state on wage administration and workers productivity in Anambra State.

The study recommends that at intervals, the state government should review the wages and

salaries of civil servants so as to ensure that it reflects the economic realities of the period it is

being paid. The empirical literatures depict different and disaggregated findings and some of the

studies are old and must have been overtaken by current realities. Also, most of the studies have

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a serious methodological issues as most of them used non-parametric method in analyzing their

data which is most often ingrained with errors. Therefore, the study will fill the identified gap

by using a more robust method in analyzing the data.

2.3 Theoretical framework:

2.3.1 Abraham Maslow: Hierarchy of Needs

Maslow (1943) was the first to use people’s needs in motivation theory. He worked with

individuals having neurotic ailments and assessed their hierarchy of needs in 1943. Maslow’s

theory on motivation has attracted management theorists. The hierarchies of needs according to

Maslow are the following: Physiological needs, Safety needs, Love needs, Esteem needs and

Self-Actualization Needs. These needs are arrange from the lower needs to the higher needs.

Five needs rank in a hierarchical order from owest to highest: physiological, safety, belonging,

esteem, and self-actualization. An individual moves up the hierarchy, when a need is

substantially realized (Shah and Shah, 2007).

1. Physiological Needs: The basic physical needs for sustaining the human life. For example

food, water, sleep, medicine, education etc.

2. Safety Needs: To be free of physical danger and of the fear of losing a job, property, food or

shelter and to protect against any emotional harm. To have a safe home, secure income,

sufficient salary, benefits and medical insurance.

3. Social Needs: Because people are social beings, they need to belong and be accepted by

others. They like to have family and friends. People try to satisfy their need for affection,

acceptance and friendship. Interaction and cooperation with co-workers and leaders

4. Esteem Needs: To be held in esteem both by themselves and by others. This kind of need

produces such satisfaction as power, prestige status and self-confidence. It includes both

internal esteem factors like self-respect, autonomy, achievements and external esteem

factorssuch as status, recognition and attention.

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5. Self-actualization: This is the highest need in Mallow’s hierarchy. This need is to fulfil one’s

potential and self-fulfilment and maximize one’s potential and to accomplish something.

Employees in this rank try to maximize their knowledge, skills and performance to do a good

job In principle the human being’s desire is to satisfy his basic needs first and as he or she is

always encouraged, seeking for higher needs. Mallow’s message is simply this; people always

have needs, and when one need is relatively fulfilled, others emerge in the predictable sequence

to take its place. According to Mallow’s theory, most individuals are not consciously aware of

these needs yet we all supposedly proceed up the hierarchy of needs, one level at a time

(Kreitner, 1995).

The relevance of Maslow’s Theory for Manager’s; behavioral Scientists who have attempted to

test Maslow’s Theory in real life claim it has some deficiencies. Even Maslow’s hierarchical

arrangement has been questioned. Practical evidence points toward a two level rather than a

five-level hierarchy (Kreitner, 1995). Although, Maslow’s theory is still useful in certain areas,

the main strength of this theory is the recognition and identification of individual needs for the

purpose of motivating behavior (Bowditch et al., 1997). Although Maslow’s theory has not

stood up well under actual testing, it teaches managers one important lesson: a fulfilled need

does not motivate an individual. For example, the promise of unemployment benefits may

partially fulfill an employee’s need for economic security (the safety need). In competing view,

physiological and safety needs are arranged in hierarchical fashion, as Maslow contends. The

contrary view is that, any one of the needs may emerge as the single most important need,

depending on an individual. Edward Lawler, a leading motivation researcher, observed, ‘Which

higher-order needs come into play after the lower ones are satisfied and in which order they

come into play cannot be predicted. If anything, it seems that most people are simultaneously

motivated by several of the same-level need’.

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The ‘motivation to work’ published by Maslow (Maslow 1943: 370) probably provided the field

of organizational behaviour and management with a new way of looking at employees job

attitudes or behaviours in understanding how humans are motivated. Probably the best-known

conceptualisation of human needs in organisations has been proposed by this theory. Abraham

Maslow was a clinical psychologist who introduced his theory based on personal judgment,

which was generally known as the need hierarchy theory. According to him if people grew in an

environment in which their needs are not met, they will be unlikely to function as healthy

individuals or welladjusted individuals . This idea was later applied to organizations to

emphasize the idea that unless employees get their needs met on the job, they will not function

as effectively as possible.

Specifically Maslow theorized that people have five types of needs and that these are activated

in a hierarchical manner. This means that these needs are aroused in a specific order from

lowest to highest, such that the lowest-order need must be fulfilled before the next order need is

triggered and the process continues If you look at this from a motivational point of view,

Mallow’s theory says that a need can never be fully met, but a need that is almost fulfilled does

not longer motivate. According to Maslow, you need to know where a person is on the

hierarchical pyramid in order to motivate him/her. Then you need to focus on meeting that

person’s needs at that level (Robbins 2001). The fundamental flaws of Mallow’s Needs Theory,

stems from his claim that, human needs patterned systematically from one stage to another. In

reality, human needs, though revolve around the stages identified by him, but in some situations

do not necessarily move progressively from one stage to another as he would have us believe.

For instance, a person in some circumstances might compromise his physiological or safety

needs in order to achieve some social goals. This research will examine relevance of the needs

theory as a strategy for motivation by managers. Bassett-Jones and Lloyd (2005) suggests that

the content theorists led by Herzberg, assumed a more complex interaction between both

15
internal and external factors, and explored the circumstances in which individuals respond to

different internal and external stimuli. On the other hand, process theory, where victor Vroom

was the first exponent considers how factors internal to the person result in different behaviours.

From the focus point of these two groups, one could observe that the process theories attempt or

try to understand the thinking processes an individual might go through in determining how to

behave in a workplace. The primary focus was on how and why questions of motivation, how

certain behaviour starts, developed and sustained over time. It is true that human behaviour in

general is dynamic and could affect the individual’s personal altitude as well as factors

surrounding that individual. These exogenous factors emanate from the environment in which

the individual operates enerate stimuli to employees. It is my belief that employees in general

are goal seeking and look for challenges and expect positive re-enforcement at all times. Hence,

it could only be of benefit if organisations could provide these rewards and factors. As noted

earlier, albeit employees are financially motivated, motivation could be seen as a moving target.

What motivates differs among different people and may even change for the same person over a

given period of time, developments within the modern organisation has probably made

motivating employees even more difficult due to the nature of every individual, behaviour

increasing the complexity of what can really motivate employees. According to Bassette-Jones

and Lloyd (2005) expectancy, equity, goal setting and reinforcement theories have resulted in

the development of a simple model of motivational alignment. The models suggest that once

needs of employees are identified and organizational objectives and also satisfy employee

needs. If poorly aligned, then

low motivation will be the outcome.

2.3.2 Douglas McGregor: Theory X/Theory Y

McGregor’s theory, which is built on Maslow’s theory, adds a central idea: those managers’

assumptions about their employees can affect their motivation. This theory proposes two

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alternative and extreme views to see the human being: Theory X and Theory Y. According to

Theory X the employee is viewed as mainly negative, lazy, resist change and unable to

motivate. This produces a controlled environment with strict rules, threats and punishments.

Employees in an organization like this tends to perform less effectively, give low productivity,

produces aggressions and conflicts (Bolman et al., 1997). Theory Y on the other hand strives to

maximize the employee’s individual goals and efforts by giving workers greater job

involvement and autonomy This means that employees are given the possibility to grow and

achieve their own goals within the organization. Employees are viewed as positive and open to

development.

Management’s goal is to make the employee happy and satisfied with their work and

performance (Bolman et al., 1997; Matteson 1999). Taken not too literally the theory can

provide a useful tool for motivation and management research (Shah and Shah, 2007). In

addition, these theories remain as a guiding principle of positive approaches for management, to

organizational development and to improve organizational culture. MacGregor suggested that

there exist two sets of employees (lazy and ambitious employees) with lazy employees

representing theory X, hard and ambitious workers representing Y. According to him, the lazy

employee should be motivated to increase performance in an organization Geogopalaus path

Goal theory of motivation states that, if a worker sees high productivity as a path leading to the

attainment of one or more of his personal goals, he will turn to be a high producer. But if he

sees low productivity as the path leading to the attainment of his goal he will turn to be a low

producer and hence needs to be motivated.

This discussion on the above motivational theories explains the fact that the concept of

Employee’s motivation has been a critical factor addressed by previous authors as what

determines the core competence of every organization in achieving a competitive position.

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Skinner who propounded that any behavior that is rewarded tends to be repeated supported this

view. The term motivation has been used in numerous and often contradictory ways. Presently

there appears to be some agreements that the crucial thread that distinguishes employee’s

motivated behaviors from other behavior is that it is goal directed behavior (Bindra; 2000).

2.3.3 Frederick Herzberg: Motivation-Hygiene

In 1959 Herzberg, Mausner and Snyderman processed a research concerning motivation to

work. They chose similar companies situated in Pittsburgh Industry area. They interviewed

approximately 200 engineers and accountants working for those companies. The theory

developed from this research concerns hygiene factors, which are necessary for the employee to

experience but do not motivate them to work. The explanation for hygiene factors could be a

person’s relationship with the environment in which one operates.

Herzbergargues that intrinsic job factors are motivating, whereas extrinsic factors only placate

employees. In this theory, there are two group factors. The first one is motivating factors or

satisfaction and the second one is hygiene factors or dissatisfaction. According to Herzberg, the

workers get motivated when they are responsible for their work. He also proposed that

managers can give their employees more authority to their job and offer them direct and

individual feedback in order to motivate and help employees to connect to their work

(Wirralmet, 2007). Furthermore, Herzberg also recommended that the job should have sufficient

challenges to utilize the full ability of the employee. If the job is not sufficiently challenging

enough and not used for an employee’s full abilities, the company should replace the employee

with the one who has a lower level of skill to do the job (Shah and Shah, 2007).

Most empirical studies have refuted predictions based on Herzberg’s theory. According to

Herzberg’s theory, he concluded that hygiene factors are related to dissatisfaction rather than

satisfaction. However, recent researchers have found contradictions and opposite to his theory

(Examstutor, 2007). Another problem with Herzberg’s theory is that some employees show no

18
particular interest in such motivators as opportunity for growth and advancement (Dubrin,

2002).

In spite of criticisms, Herzberg’s theory provided a new way of thinking about worker

motivation and his theory remains as an influential factor in an attempt to make the motivation

theory in an organizational way (Dubrin, 2002).

Herzberg’s theory implication in real work life for a manager and management in the company

who want to motivate their employees would include these activities: provide the employees

with good compensation, flexible company policies and being connected to their own

employees. In addition, the manager also recognizes the good work from their employees and

gives their employees the opportunities to grow and develop their skills, knowledge and

experience.

A significant development in motivation was distinction between motivational and maintenance

factors in job situation. This led to draw a distinction between what are called as „motivators’

and „hygiene factors’. Thus, hygiene factors provide no motivation to the employees, but the

absence of these factors serves as dissatisfied. Some job conditions operate primarily to

dissatisfy employees when they are absent, but their presence does not motivate employees in a

strong way. Many of these factors are traditionally perceived by management as motivators, but

the factors are really potent as dissatisfies. They are termed as maintenance factors in job

because they are necessary to maintain a reasonable level of satisfaction among the employees.

The maintenance factors include, Company policy and Administration, Technical supervision,

interpersonal relations with supervision, interpersonal relations with peers, salary, job security

working conditions and among others. Herzberg also identifies the motivational factors to

include achievement, recognition, advancement, work itself and possibility of growth.

There appears to be a great similarity between Herzberg’s and Maslow’s models. A careful

examination of Herzberg’s model indicates that what he actually says is that some employees

19
may have achieved a level of social and economic progress in the society and for them higher

level needs of Maslow (esteem and self-actualization) are the primary motivators. However,

they still must satisfy the lower level needs for maintenance of their current state. Thus, we can

say that money might still be a motivator for operative employees and for some managerial

employees (Chhabra 2010: p11.7-11.8).

In this vein, hygiene factors are not sufficient condition in motivating employees but rather a

precondition in enticing employees in promoting the organizational mission and objectives.

This further suggests that, the issue of motivation is still a challenge in modern context

despite the efforts of government policy of promoting workers well-being.

20
CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

Research methodology refers to the overarching strategy and rationale of

your research project. It also refers to the arrangement through which a research is been

embarked upon and it consists of the research design of the study, the population of the

study, sample and sampling techniques, sources of data collection, which is primary and

secondary, and also the technique of data collection, questionnaires distribution and

collection.

3.1 Research Design

Research design refers to the overall strategy utilized to carry out research that defines a

succinct and logical plan to tackle established research question(s) through the

collection, interpretation, analysis, and discussion of data.

3.2 Population of the study

A population is the entire pool from which a statistical sample is drawn, The population

is hereby defined as consisting of all staff of Abuja Electricity Distribution Company.

which amounts to 240

3.3 Sample and sampling technique

A sample is a fraction of an entire population which is studied for the purpose of making

generalization about the population. A sample is used when it is almost impossible to

study an entire population. The techniques used to draw the sample used in this project

is simple randomly sampling technique. The sample drawn from a population is . To

calculate the sample needed for this study,

21
Taro Yamani formula is n= N/1+N(e)2

Where N = 240

e=0.05

n= 240

(1+240(0.0025))

n= 240

1.6

=150

3.4 Source of Data

For the purpose of this study, the primary and secondary data collection were used.

Primary Data – This refers to the first-hand information gathered specifically for

purposely of this work. This data was obtained from the organization’s staff during the

interview and administration of questionnaire.

Secondary Data – This are the data or information which already exist and have been

gathered for some other purpose relating to these area of study such as newspaper,

journals, textbooks, internet etc.

3.5 Instruments and method of data collection:

The instruments of data collection used in this research basically were three which

include:- interview, questionnaire and internet search.

i. Interviews:

An interview is a face-to-face conversation between two individuals with the sole

purpose of collecting relevant information to satisfy a research purpose.

ii. Questionnaires:

22
This is the process of collecting data through an instrument consisting of a series

of questions and prompts to receive a response from individuals it is

administered.

3.6 Method of data analysis

For easy analysis and interpretation of data collected frequency table and simple

percentage. The researcher added the responses of each respondent in the question and

computed the frequency of responses by using the percentage. Below is the statistical

technique used in analyzing the data obtained.

Formula = X x 100

Y 1
Where:

X means the number of response

Y means the total number of respondents

100 is the percentage.

23
CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data presentation

This chapter will focus on discussing the analysis of data collected through questionnaire. The

data collected bothers around the level of application of total quality management techniques to

ensure service delivery in the organization. A total 150 questionnaire were administered and

only 145 were returned for analysis.

4.2 Data analysis and result

Table 4.1.1 Age Distribution of Respondents

AGE GROUP FREQUENCY PERCENTAGE

(YEAR)

18 –35 46 31.75

36- 55 69 47.59

56 and above 30 20.69

Total 145 100

Source: Field Survey, 2023


Table 4.1.1 shows that out of the 150 respondents in Keffi 69 (47.59%) respondents were under

the age bracket of 36 – 55 years while 46(31.75%) respondents are within the age bracket of 18

–35 years while 30 representing (20.69%) respondents are within from the age bracket of 56

years and above. It might therefore be logical to summarize from the observation that workers

in Abuja Electricity Distribution Company. falls within the working age. This is because as

managers, they must have undergone through some experience and educational training.

24
Table 4.1.2 Sex Distribution of Respondents

SEX FREQUENCY PERCENTAGE

Male 93 64.14

Female 52 35.86

Total 145 100

Source: Field Survey, 2023

The frequency distribution of respondents by gender shows that there was a wide disparity in

gender distribution of the 150 sample. Male respondents had much greater population of the

total number of employees in the organization than the female respondents. 93 respondents

representing 64.14% constituted the male while 52 (35.86%) respondents constitute the female.

The gap was wider in the case of unemployment.

Table 4.1.3 Marital Status of Respondents

Marital status FREQUENCY PERCENTAGE

Single 40 27.58

Married 100 68.97

Divorce 5 3.45

Total 145 100

Source: Field Survey, 2023

The data shows that most of the respondents were married. The married respondents

constituted 100 representing 68.97 while 40(27.58%) respondents are single and 5(3.45%)

respondents are divorced which is the lowest. It is the general belief that married people are

responsible human being. It can be deduced from the table that a majority of the respondents is

responsible. However, the table above shows the detail data collected from the survey

25
Table 4.1.4 Education Level Distribution of Respondents

LEVEL OF EDUCATION FREQUENCY PERCENTAGE

WASSCE/GCE O. Level 40 27.58

OND/NCE 92 63.45

B.Sc/BA/HND 9 6.21

M.Sc/MBA/MPA/Proof Certificate 4 2.76

Total 145 100

Source: Field Survey, 2023

From the table above, 27.58% of the respondents have WASSCE/GCE O level, 63.45% HAS

OND/NCE, 6.21% has B.Sc/BA/HND and 2.76% has M.Sc/MBA/MPA etc

Table 4.1.7 Length of Service Distribution of respondents

LENGTH OF SERVICE FREQUENCY PERCENTAGE

Between 1-5 years 20 13.79

Between 6-10 years 23 15.87

Between 11-15 years 22 15.17

Between 16-20 years 55 37.93

Between 20 and above 25 17.24

Total 145 100

Source: Field Survey, 2023

From table. 4.1.7 above, 13.79% of the respondents have served between 1 to 5 years, 15.87%

has served between 6 to 10 years, 15.17 has served between 11 to 15 years, 37.93 has served

between 16 to 20 years and 17.24 has served between 20 years and above.

26
Table 4.1.5 Respondents view on Salary and Motivation

OPTION FREQUENCY PERCENTAGE

Yes 90 62.07

No 51 35.17

I don’t know 4 2.76

Total 145 100

Source: Field Survey 2023

Table 4.1.5 above shows that 90 representing 62.07% accepted that the salary they earn

motivates them to work harder. However, 51(35.17%) respondents are with a contrary view,

while 4(2.76%) respondents says they did not know whether the salaries have a motivating

effect on their work. It will therefore be deduced that since majority of the respondents have

agreed to the view, we conclude that, what they earn increases their productivity and their

performance.

Table 4.1.6 respondents view on the way the organization handles salaries and wages
matter

OPTION FREQUENCY PERCENTAGE

Yes 89 61.38

No 37 25.52

I don’t know 17 11.75

Terrible 2 1.38

Total 145 100

Source: Field Survey, 2023

From the survey, 89 (61.38%) respondents says that they are satisfied with the way salary and

wages matters are being handled by the organization, while 37 (25.52%) respondents are not

satisfied and 17(11.75%) respondents said the organization handles salary and wages in a

27
terrible manner which could be as a result of lack of prudence and accountability while

2(1.36%) respondents said they did not know the management handle their salaries and wages.

Table 4.1.7 respondents view on salary Increment

OPTION FREQUENCY PERCENTAGE

Every year 68 46.90

Every 2 years 29 20

Every 5 years 29 20

Once in a while 19 13.10


Total 145 100
Source: Field Survey, 2023

The survey indicated that 68(46.90%) of the respondents often get salary increment every year

while 29(20%) respondents get salary increment in every 2 and 5 years respectively while this

means that something is responsible for lack of constant increase in salary ranging from lack of

promotion, corruption and misappropriation of funds or denying employees entitlement such

as fringe benefits and bonus.

Table 4.1.8 Respondents’ views on whether salary boost workers morale

OPTION FREQUENCY PERCENTAGE

Yes 100 68.96

No 37 25.52

Not certain 8 5.52

Total 145 100

Source: Field Survey, 2023

The data reveals that 100(68.96%) respondents accepted that increase in salary boosts

workers morals while 37 (25.52%) respondents disagreed with that opinion and 8(5.52%)

28
respondents are not sure whether increase in salary boosts their morale. From the analysis, it

could be deduced that if salary increases, it will also increase workers productivity and

performance.

Table 4.1.9 Respondents’ views on how salary is paid.

OPTION FREQUENCY PERCENTAGE

Table Payment 40 27.59

Via Bank 73 50.34

Others 12 8.28

Total 145 100

Source: Field Survey 2023

The table above shows that 73(50.34%) respondents agreed that bank payment is used by the

organization while 40(27.59%) respondents also said that table payment is used and

12(8.28%) respondents said they did others not know because sometimes the organization

uses both table and bank payment just as responded by the 20 respondents.

Table 4.1.10 Respondents view on whether the method of salary administration

by management enhance productivity

OPTION FREQUENCY PERCENTAGE

Yes 97 66.89

No 48 33.11

Not Certain 0 0

Total 145 100

Source: Field Survey, 2023

29
The data shows that 97(66.89%) respondents agreed that the method of salary administration is

a motivating factor for the enhancement of productivity while 48(33.11%) respondents

disagreed with the view. From the above table we can deduce that the method of salary

administration increase productivity. The table above shows clear description made above

Table 4.1.11 Respondents view on Promotion Policy

OPTION FREQUENCY PERCENTAGE

Satisfactory 59 40.69

Unsatisfactory 39 26.89

Fair 34 23.45

I don’t know 13 8.97

Total 145 100

Source: Field Survey 2023

The data show that 59(40.69%) respondents are satisfied with the promotion policy in Abuja

Electricity Distribution Company.. 39 (26.89%) are unsatisfied with the policy. 34(23.45%)

respondents are fairly satisfied.

4.3 research findings

1. Majority of the staff falls within the aga bracket of 36-55 years

2. Majority of the staff are males

3. Majority of the staff are married

4. Majority of the staff OND/NCE

5. Majority of the staff has stayed for 16 to 20 years

6. Majority of the staff their salary is a major source of motivation

7. Findings also show that the staff are comfortable with the way the organization handles

salaries and wages matter

30
8. It was also discovered that staff wants slary increment every year to stay productive and

motivated

9. Findings shows that prefers their salaries to be paid to the banks

10. Analysis also shows that the staff agree that the method of salaries administration is a

motivating factor.

11. It was also discovered that the respondents are comfortable with promotion policy

31
CHAPTER FIVE

SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY

The purpose of this work is to examine salary and wages administration as a tool for

improving employees’ performance in an Abuja Electricity Distribution Company. ..In the

course of this work, the objectives of the study raised research question on what salary and

wages administration is all about. The study objective, questioned if the existence of salary

and wags administration could lead to improvement of employee performance. The study

was to ascertain product of salary and wages administration. The study made an attempt to

explore the role salary administration play in increasing productivity and performance in

the development of public service. The study also investigated the contribution of salary

administration with regard to increment, how the organization handles salary and wages,

how salary motivates workers on the enhancement of productivity and performance of

economic growth in the Nigeria economy. This is because employees believe that the

method of payment will also boost their purchasing power. The analysis of the data

indicated that salary administration has positive role to play and has been playing in

fostering economic and administrative development in Nigeria.

5.2 Conclusion

The importance of human resources to any organization be it private or public cannot be

overemphasized. Organization objectives cannot be accomplished without taking care of the

interest of employees who co-ordinate the activities of the organization. To achieve effectiveness

and efficiency of workers and to reduce wastage at the work place, employers of labour must take

care of the interest of their workers. However, it is generally assumed that salaries and wages

administrators should be a model who should establish terms and conditions for employers which

32
set standard for employers to follow. The impact of salary adminis respect has not been

encouraging in Nigeria.

There has been a drastic reduction in the real salaries of workers both in private and pubic

organizations which has not been possible for them to live on their grossly reduced salaries and

wages. It is therefore inevitable that if such large reduction is real salaries and wages take place,

they will service adverse effect on morale, productivity and the devoting which the employees

give to their official duties. It should also be noted that there will be strong pressure on them to

take second job or engage in strong pressure to take other form of income generation which

could have delicious effects on the provision of service to public. This will require that job

objectives be produced so that there are some criteria against which to judge individual

performance (output).

5.4 Recommendations

People are the most important of all the resources required for the attainment of organizational

goal. As such, human resources have to be managed with the greatest care and skills in order to

motivate staff and enhance productivity and performance of their organization. Boosting

people’s m provision of external rewards like pay rise and method of administration, promotions

and praise compliments. It also involves the creation of conducive environment so that people

can get self administered reward such as satisfaction from accomplishing of challenging task.

However, among the salary administration.

In view of the above, the following recommendations are made:

(1) That the salary administration policy for public officers be implemented across board so

that all the level officers especially the junior cadre can have a sense of belonging. This

will go a long way in improving their performance and hence lead to higher

productivity.

(2) That salary increment should be rewarded as at when due from the analysis, it shows

33
that if workers remuneration increases, it will improve employee performance. They

should be no delay on the increment.

(3) Promotion policy in the public service especially in Abuja Electricity Distribution

Company. be improved and should be done on merit as when due to deserving officers.

(4) The researcher also advocates for good government. Adequate funding, onstant auditing

and accountability be strictly adhered to in handling salaries and wages matter in Abuja

Electricity Distribution Company..

(5) Staff training and development should be pursuing vigorously. Training should

be organized by pursuing vigorous fie the execution of their responsibilities and their

performance.

(6) There should be cordial relationship between the leader and the lead. There should be

forum created where the top management officers interact and share ideas with their

subordinates. This will give subordinate a sense of belonging and a psychological boost

their morale which will enhance their productivity and their performance in an

organization.

5.4 Limitations of the study

The finding of this research work had its limitations in the following aspects:

(a) Time: The research lacked sufficient time. During this research work one of research

was based on the fact that the research work was combined with the preparation of final

year examination and this expected date of project submission was not shifted.

(b) Finance: The scope of these works was limited due to lack of fund. The fund available at

the time of this research work was not enough for the researcher to execute all she

intends to execute. This lack of fund limited some aspect of the research work.

34
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37
APPENDIX 1

Department of Public Administration,

School of Business studies,

Federal Polytechnic Nasarawa,

29th January, 2023

Dear Sir

REQUEST FOR THE COMPLETION OF QUESTIONNAIRE

I am a final year student of the above mentioned Institution, conducting research on the topic

“An assessment of Wages and Salary administration in a privatized firsm. (A Case of Abuja

Electricity Distribution Company)

This study is part of the requirements for the award of National Diploma in Public

Administration.

This is to kindly request your help to provide me necessary information needed in the

completion of my research work which is purely for academic purpose. I therefore request that

you fill the attached questionnaire.

Whatever information given will be treated confidentially and used only for the research

purpose.

Thanks for your anticipated co-operation.

Yours faithfully,

Waishe Nuhu

FPN/SBS/ND/PAD/2021/2022/6094

38
QUESTIONNAIRE

1. How old are you

(a) 18 –35 [ ] (b) 36 - 55 [ ] (c) 56 and above [ ]

2. Sex

(a) Male [ ] (b)Female [ ]

3. What is your Marital Status

(a) Single [ ] (b) Married [ ] (c) Divorced [ ]

4. What is your educational qualification?

(a) WASSCE/GCE O’Level] [

(b) OND/NCE [ ]

(c) B.Sc/BA/HND [ ]

(d) M.Sc/MPA [ ]

(e) Professional Certificate [ ]

5. How long have you been in Civil Service?

(a) Between 1 –5 years [ ]

(b) Between 6 –10 years [ ]

(c) Between 11 –15 years [ ]

(d) Between 16 –20 years [ ]

(e) Above 20 years [ ]

6. Are you satisfied the way the organization handles salary and wages matters?
(a) Yes [ ] (b) No [ ]
39
7. How often do you get salary Increment?
(a) Every year [ ] (b) Every Two years [ ]
(c) Every five years [ ] (d) Once in a while [ ]

8. Does this salary Increment boost your morale?


(a) Yes [] (b) No [ ] (c) Not Certain [ ]

9 What type of salary mode of payment is being administered in the organization

(a) Table payment [ ] (b) Via Bank [ ]


(b) Both [ ] (d) I don’t know

10. Do you agree that the mode of salary administration by the management
would enhance productivity of the employees?
(a) Yes [ ] (b) No [ ] (c) Not Certain []

11. Are you satisfied with the promotion policy of the organization area?
(a) Satisfied [ ] (b) Unsatisfactory [ ]
(b) Fair [ ] (d) I don’t know

40

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