Full Project – FRINGE BENEFITS AND EMPLOYEES PRODUCTIVITY IN PUBLIC SECTOR

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ABSTRACT

The purpose of this study is to investigate the role of fringe benefits in enhancing the productivity of the public sector employees, it also goes further to examine the relationship between fringe benefits and the morale of employees in the public sector, to discuss the impact of fringe benefits on the efficiency of public sector employees and to analyse the relationship between fringe benefits and organizational performance in the public sector. The researcher work makes use of random sampling techniques system, which ensures that every probable unit of analyses of the population has equal chances of being selected. A sample that is properly randomized enables the results of a study to be generalized. The total population of the case study is about fifteen thousand but for the purpose of this research, about four hundred and fifty is our target as members of staff of the Ikeja Passport Office of NIS, out of which one hundred were given questionnaires and with the expectation of about sixty questionnaires to be duly completed and returned. There are two basic instruments of data collection or source available to this research. These are the primary and secondary sources of data collection instruments. Primary data were collected through the use of questionnaire, close-ended questionnaires to be precise. Here questions are structured in line with the research hypothesis and other relevant questions in the research study. The secondary data were gathered through “articles” from journals, newspapers, magazines, textbooks and other publications were also utilized in the course of our data gathering exercise.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

There is nothing more preoccupying to modem government than how to provide efficient, effective and quality services to the populace. This emphasis on workers productivity became more pronounced with the ever changing economic, social and investment environments which determine the ways government should function. The process of government has become more sophisticated because of the increasing demand for the introduction of modern management technique in the act of public governance (Klotz, 1998: 15-16). The role of fringe benefits on workers productivity cannot be ignored in the public sector. The Nigeria Immigration Service (NIS) had long realized this and had placed motivation of its employees as top priority and which constitute the need for using NIS as a case study. Compensation can be offered using three types of rewards which are pay, incentive and benefits which is the basic remuneration employees receive, using in the form of wages or salary while incentives are rewards designed to encourage and reimburse employees for effort beyond normal performance expectation. Benefits are rewards available to employees or group of employees as part of organizational membership (Philip, 2001).

The Nigerian Public Service is not immune from the trend and assertions that fringe benefits are linked with payment received in addition to the basic allowance or salary i.e. (Medical, Housing, Transport etc. Meanwhile, benefits have to be handled with care because once they are granted in a boom period, they are not easily withdrawn in recession because the proportion of cost attributable to workers in the form of labour cost is increasing in several organizations and this cost need to be managed if the organizations are to make profit and to survive within the public (Fajana, 2002:345). There is another opinion that benefits are supplementary or “in kind” payment made to all employees of the organization, in addition to their basic salaries. Unlike the Incentive System which are enjoyed by workers on the basis of their individual performance on contribution to the profitability of the organization, benefits are made available to all employees irrespective of difference in individual performance, for as long as they retain their organizational membership (Banjoko 1996: 135). Another postulation states the reward system in an organization goes a long way to determine jobs satisfactions and performance. It is equally pertinent to state that any employee, who expects return from its investment, has no options but to ensure that its employees are well and fit for work all the time.

By identifying himself very seriously with the problem of the community and assume some of the responsibilities which otherwise should be borne by the government especially in the country like Nigeria where the government has not been able to undertake its duty towards the welfare of the citizen. To this extent, it is found that up to a point, performance increases with increasing motivation. This is to say that little motivation leads to better benefits, as often used, is no longer descriptive of the amount or importance of the benefits paid out to employees (Idowu, 2002:65).

1.2    STATEMENT OF PROBLEM

The Nigeria Civil Servants are often described as inefficient, ineffective, have low morale and low productivity. This statement presumes that the Civil Servants are not doing their work as it should be done. This, of course will have a negative consequence on the general well being and growth of the economy. In Nigeria today, there is no doubt that the government is the largest employee of labour and such perceived inadequate performance as contrary to the objective of government which is to increase productivity in the nation. The Nigeria Public Service is known to have a motivational problem thus the need to study the impact of fringe benefits on workers productivity in the public sector in Nigeria therefore becomes inevitable.

Managers and public officers in these developed countries operate in a different environment from what is obtainable in the developing countries. The inability of an organization to provide adequate security for the employees against social risk and ensure a fairly comfortable life after retirement in the country is a problem affecting employees productivity. How can human resources be managed to ensure organizational growth and profitability in the Nigerian Public Services? This should be the fulcrum or hub upon which the research work will be founded.

1.3    OBJECTIVES OF THE STUDY

The main objective of this study is to investigate the role of fringe benefits in enhancing the productivity of the public sector employees.

Other specific objectives include:

1. To examine the relationship between fringe benefits and the morale of employees in the public sector.

2. To discuss the impact of fringe benefits on the efficiency of public sector employees.

3. To analyze the relationship between fringe benefits and organizational performance in the public sector.

1.4    RESEARCH QUESTIONS

In this study, attempt will be made to beam searchlight on the following research questions.

1. How can fringe benefits enhance the level of productivity in the public sector?

2. Is there any relationship between fringe benefits and the morale of employees in the public sector?

3.      What are the impacts of fringe benefits on the efficiency of employees in the public sector?

4. To what extent can fringe benefit increase organizational performance in the public sector?

1.5    RESEARCH HYPOTHESES

This study will be geared towards testing the following hypotheses:

1. That fringe benefit tends to enhance the level of productivity in the public sector.

2. That there is a direct relationship between fringe benefits and the morale of employees in the public sector.

3. That fringe benefit tends to engender efficiency in the public sector.

4. That there is a positive relationship between fringe benefits and organizational performance in the public sector.

1.6    SCOPE OF THE STUDY

The prime target of these research study is to identify benefit and worker’s productivity in the public sector, with reference to the Nigeria Immigration Service (NIS). As a result of limited time and finance involved, we have decided to restrict our scope to the Ikeja Passport Office of the parastatal. Both junior and senior officer shall be covered in the study.

1.7    SIGNIFICANCE OF THE STUDY

This study will be valuable in a number of ways. One, aside from contributing to the existing body of literature in human resources management, it will also help employees and policy maker to have a idea of what priority to give fringe benefit in their efforts to satisfy and motivate workers for better level of productivity. The study will also satisfy the curiosity to understanding the relationship between fringe benefits and employees’ productivity. It will be useful to evaluate fringe benefit as a tool to employees’ productivity. It will also be useful to the Nigeria. Immigration Service.  In getting the best from their employees.  Moreso, the study will equally examine employee attitude towards fringe benefits. Finally, the study will be relevant to both scholars and students of Human Resources Management and Public Administration in general.

1.8    CONCEPTUAL CLARIFICATIONS

In this section attempt was made to clarify some important concepts relevant to this study. These include:

Benefits: Could be seen as supplementary or “in kind” payment made to all employees of the organization in addition to their basic salaries. It could also be described as money provided by the government to people who need financial help due to some reasons.

Employee: It is defined as a person who is paid to work for somebody.

Employee Benefits: Employee benefits are sometimes referred to as Indirect or Supplementary Compensation.

Fringe: It could be defined as “an ornamental border, an edging, trimming or a margin”, it is also seen as events or activity that are not part of the main group or activity.

Fringe Benefits: The term can be defined as “these benefits which are provided by an employer to or for the benefits of an employee and which are not in the form of wages, salaries and time-related payments. It is also referred to as extra things that an employer gives you as well as your wages.

Productivity: Is defined as the output resulting from a resource input at a given time. In other words, it could be defined as the rate at which a worker, a company or a country produces goods, and the amount produced, compared with how much time, work and money is to produce them.

Public: Could be defined as something provided, especially by the government, for the use of people in general.

Public Sector: public sector is defined as the part of economy of a country that is owned or controlled by the government.

Public Service: Is seen as such service as transport. or health care general in a particular society. It could alsobe seen as something that is done to help people rather than to make a profit, the government and government department.

Sector: Is a part of an area of a country’s economy.

Service: Could be seen as system that provides something that the public needs, organized by the government or a private company.

Worker: A person who works, especially one who does a particular kind of job, a person who is employed to do physical rather than organizing things or managing people. Or a person who works in a particular way.

1.9    ORGANISATION OF THE STUDY

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