Full Project – Salary and wages administration as a tool for improving employees performance in an organisation

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In any organization, be it in the private or public sector, money is a very sensitive issue, not only to management but also to employees (Nwachukwu, 2009). Wages and salaries constitute a significant part of the total cost of operation in any organization or establishment. In some organizations, such as civil/ public service, they make up more than 50 percent of operating costs. In the organized private sector, large organization’s ability to attract and retain valuable employees in part depends largely on how much they pay. Poor wages are a constant source of frustration if labour and management are engaged in constant strife with resulting decrease in productivity (Nwachukwu, 2009).

Wages administration in Nigeria is as old as civil service itself. Many administrations have come and gone but not without deliberating on what constitutes the appropriate minimum wage or salary of civil servants should be. In some situation, it has been without industrial disputes, especially during the military era while most of the civilian regimes were dominated by trade disputes initiated by major labour centres in the country (Obiora, 2013). Sometimes, the crises arising from such dispute leads to break down of law and order, especially when they are hijacked by miscreants in the society. Workers, through their labour representatives have always asked for improved conditions of services and can go to any length to press home their demands.

To Egbo and Okeke (2009), salaries and wages of civil servants are not left to the discretion of employers. They are usually backed by a legal instrument stating the minimum pay for workers which usually leads to trade dispute among employees and the employers.

Trade dispute is an evil wind that blows nobody any good. Therefore, every effort must be made always to avoid it. It must however be understood that when workers are not properly treated as ought to, they will not only be demoralized but will also exhibit some negative behaviours in the workplace. Such corrupt practices manifesting in embezzlement, misappropriation of public funds as the feeling of insecurity overwhelms them. They start to steal public funds to take care of the present and also ensure that during retirement, they have enough to fall back on.  There is no doubt that an effective and efficient civil/public service makes every other sector of the economy vibrant by facilitating the desired development that will impact positively on the quality of life of the citizenry. It is on this note that this study examines the wages and Salary administration as a tool for improving the performance of Employees in Federal High Court, Yola.

Federal High Court was then called “Federal Revenue Court”. It was established by the Federal Revenue Act 1973 (1973 No.13). The court was renamed the “Federal High Court” by Section 228 (1) and 230 (2) of the constitution of the Federal Republic of Nigeria, 1979. The Court has its Headquarters in Abuja; the Nigeria’s Federal Capital Territory (FCT) and has about 36 divisions across the nation. Yola, the capital State of Adamawa is one of the divisions where the research will be carried out. It is headed by the Judge as well as the registrar who champion the affaire of the court/sittings at the branch. Several departments were set fit to harness the division of labour as the case may be. Federal High Court Yola has about seventy-seven working and functional staff.

1.2 Statement of the problem

Nigerian civil servants have been yearning for wages and salary administration review for many decades ago which most of the time, the movement is tagged “National Minimum Wages Review”. However, the Nigerian’s agitation for the increment of salary usually coupled with fallen value of naira as well as the high cost of living standard.

As money is the prime value for human being to meet their basic needs, everyone tries to earn as much money as possible. A clerk earning less than a driver may have a vague grievance, but when he earns less than another clerk of comparable qualification and experience he will show his unhappiness more bitterly. This shows that people have the tendency to compare themselves to others who are in similar qualifications (Ogunbameru, 2000). The main objectives of wage and salary administration are to have a scientific, rational and balanced wage and salary structure. In salary administration, the employer should not feel that the employees are paid more than they deserve and they should not feel that they are underpaid. Unless there is a scientific approach/method, we cannot solve this conflict. Here, wages and salary administration includes allowances, leave facilities, housing, utility, travel etc. and non-cost rewards such as recognition, privileges and symbol of status any pay system should create a feeling of equity in the mind of the employees. Otherwise, it will demoralise and demotivate the employees. But in Nigerian conditions it is very difficult to practice.

The present trend in the wages pattern is that the gap between the officers’ pay and workers’ pay is narrowing down, and the difference between organised sector and unorganized sector, men and women, casual and regular workers’ pay is on the rise. The public policy is to reduce the disparity, but cannot be done overnight. (Ogunbameru, 2000)

1.3 Objectives of the Study

This research work is aimed at examining the effectiveness of wages and salary administration on civil service productivity in Federal High Court Yola, Adamawa State as a case study. However, the specific objectives of the study are as follow:

1. To investigate the relationship between wages administration and the productive performance of the staff of Federal High Court Yola.
2. To examine the constraints to full implementation of minimum wage by the Federal Government of Nigeria.

• To find out whether remuneration can serve as a driving force towards attainment of goal and objectives of an organization

1. To ascertain whether the staff of federal High Court are comfortable with their current wage/salary administration.
2. To observe weather the professional staff of Federal High court and the other auxiliary staff are on the same salary scale.

1.4 Research Questions

The research questions will be framed towards the purpose of the study such that if they are properly answered, one will clearly realize why and how wages and salaries administration serves as tool for improving the employee’s performance in Federal High Court Yola, Adamawa State. The questions are as follow:

1. Can workers that cannot fulfil or satisfy his/her social obligations not emotionally disturbed?
2. Are FHC Yola fully satisfied with her employer’s minimum wage/salary administration?

• For how long will a worker continue to be on the job without pay before becoming demoralized?

1. Can compensation (wages and salaries) that are not adequate encourage workers to put in their very best?
2. Is wage/salary the most important tool to gratify employees to put in their best in an organization?

1.5 Research Hypothesis

Ho i. – Wages and Salaries does not serve as a tool for improving employee’s performance in Federal High Court (FHC, Yola.

Ho ii. – Wages and Salaries do not have any significant relationship with workers performance in FHC Yola.

1.6 Significance of the Study

The study is of utmost significance to management theorist as wages and salaries is not specifically mentioned to be an important tool that can affect the morale and performance of workers in the working environment, especially, Nigeria of today. The economic hardship had made people to be suffering and smiling’ at work such that even when they are not well remunerated, they pretend as if all is well and be quietly searching for another opportunity elsewhere. Again, it is difficult to find whether any researcher had ever considered looking at what constitute a ‘minimum’ or better pay for a job considering the kind of economy we are running or operating in this country and the fact that all our entrepreneur wants to do is “winner takes all” attitude by maximizing everything and minimizing nothing. The study will, however, try to look at why it is essential to pay wages and salaries and not just ‘allowance’ in place of wages and salaries and also, to look at some merits of a better wages and salaries to the organisation as well as the workers.

1.7 Scope and Limitation of the Study

Federal High Court is a Government establishment which had her Headquarters in Abuja, the capital city of Nigeria, with many branches across the Federation. Yola, Adamawa State is one of the locations where a division of the Federal High Court is found.

However, this research-work ‘Wages and salary administration as a tool for improving employee’s performance in an organisation is limited to Federal High court Yola, Adamawa State.

Also this kind of research would have been conducted using personal interview and/or observation but quantifying the responses from the interviewers might look cumbersome. Else, we have to use questionnaire which most workers in Nigeria are always afraid of despite the promise that it will be treated with utmost confidentiality. As such, vital information will not be divulged for better conclusion. Though, time and money are not necessarily factors militating against a research anymore but money here, affect the sample size. The researcher uses forty members of staff of FHC to collect data for this research.

1.8 Operational Definition of Terms

English words or terms may mean different things to different fields, however, the following terms are defined as they will be used for the purpose of this research work.

1. Wage: this refers to the payment usually of money for labour or services rendered to the FHC, usually according to contract; and on an hourly, daily or place-work basis.
2. Salary: this means a fixed amount of money or compensation paid to an employee by an employer in return for work performed, it is commonly paid in fixed interval, for instance- monthly (one twelfth of the annual salary)

• Administration: this means the act and processes of administering salary, wages and allowances for the employee by the management of an organisation.

1. Tool: tool here means remuneration or devidence obtained as a result of work (s) done.
2. Employee: employee (s) means one or all the staff working in Federal High Court of Nigeria.
3. Performance: this refers to the efforts given by an employee in an organization.

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Full Project – Salary and wages administration as a tool for improving employees performance in an organisation