1-5 Wages and Salarie
1-5 Wages and Salarie
INTRODUCTION
Wages and salaries administration is part of the total compensation packages of any
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
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
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.
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
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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
1. To evaluate the impact of wages and salaries administration as a tool for attaining
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
1. How does wages and salaries administration serve as a tool for attaining organization
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
1.5Significance of study
The significance of this study therefore, is that it explores ways in which maximum productivity
says a private sector like the Abuja Electricity Distribution Company.. Within all organizations
Thus in bureaucratic organizations, the enhancement of wages and salaries is vital to the
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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,
The research work will focus on evaluating the impact of wages and salary administration in
1.7 Definition of terms
activities of a company in relation to the direct and indirect payment being paid to employees
conflicting, social energies in a single organization in an orderly manner such that they can
operate in Unity.
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
2.0 Introduction.
This chapter talks about the review of related literature, clarification of concepts and theories
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
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
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
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.
i. Minimum Wage:
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.
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.
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.
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
hospitalisation, etc.
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.
of major objectives, the identification of general purposes, and laying down of broad
& 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.”
i. Public administration
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
making, as well as the efficient organization of people and other resources to direct activities
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
2. Organizing
This function involves task division, grouping responsibilities into departments, specifying
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
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Understand which resources are in short supply and focus on them
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
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
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
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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
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
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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
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
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,
1. Physiological Needs: The basic physical needs for sustaining the human life. For example
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,
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
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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,
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
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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
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
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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
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
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
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
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
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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).
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
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
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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
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.
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
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
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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
In this vein, hygiene factors are not sufficient condition in motivating employees but rather a
This further suggests that, the issue of motivation is still a challenge in modern context
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CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
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.
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
A population is the entire pool from which a statistical sample is drawn, The population
A sample is a fraction of an entire population which is studied for the purpose of making
study an entire population. The techniques used to draw the sample used in this project
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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
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
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,
The instruments of data collection used in this research basically were three which
i. Interviews:
ii. Questionnaires:
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This is the process of collecting data through an instrument consisting of a series
administered.
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
Formula = X x 100
Y 1
Where:
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CHAPTER FOUR
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
(YEAR)
18 –35 46 31.75
36- 55 69 47.59
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.
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Table 4.1.2 Sex Distribution of Respondents
Male 93 64.14
Female 52 35.86
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.
Single 40 27.58
Divorce 5 3.45
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
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Table 4.1.4 Education Level Distribution of Respondents
OND/NCE 92 63.45
B.Sc/BA/HND 9 6.21
From the table above, 27.58% of the respondents have WASSCE/GCE O level, 63.45% HAS
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.
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Table 4.1.5 Respondents view on Salary and Motivation
Yes 90 62.07
No 51 35.17
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
Yes 89 61.38
No 37 25.52
Terrible 2 1.38
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.
Every 2 years 29 20
Every 5 years 29 20
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
No 37 25.52
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.
Others 12 8.28
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.
Yes 97 66.89
No 48 33.11
Not Certain 0 0
29
The data shows that 97(66.89%) respondents agreed that the method of salary administration is
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
Satisfactory 59 40.69
Unsatisfactory 39 26.89
Fair 34 23.45
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%)
1. Majority of the staff falls within the aga bracket of 36-55 years
7. Findings also show that the staff are comfortable with the way the organization handles
30
8. It was also discovered that staff wants slary increment every year to stay productive and
motivated
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
5.1 SUMMARY
The purpose of this work is to examine salary and wages administration as a tool for
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,
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
5.2 Conclusion
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.
(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
(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
(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.
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
Reference
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37
APPENDIX 1
Dear Sir
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
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
Whatever information given will be treated confidentially and used only for the research
purpose.
Yours faithfully,
Waishe Nuhu
FPN/SBS/ND/PAD/2021/2022/6094
38
QUESTIONNAIRE
2. Sex
(b) OND/NCE [ ]
(c) B.Sc/BA/HND [ ]
(d) M.Sc/MPA [ ]
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 [ ]
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