Full Project – The impact of welfare packages on employees performance

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

       There is increasing evidence to support that welfare schemes enhances employees productivity in any organization both private and government sectors.  According to Nzuibe and Ezeonwu (1991:94), the assumption that Nigerians are motivated to perform more by packages and other salary supplements seem as paid leave, free health care programmes bonuses, pension and gratuity, plans, insurance etc have received some support from both the labour unions and Nigerian government.

One of the basic assumptions of managerial practice is that workers can be motivated to higher productivity of satisfying their needs.  This internal force which propel him in specific direction towards self fulfillment, not only for the satisfaction in the work place but also towards the realization of his entire life’s ambition.  The direction of those urges or needs differ from one employee to another.

However, certain uniform clusters of needs have been identified, but what has not been easy to determine is the exact nature, sequence and magnitude of needs necessary to keep a group of employee functioning optimally at all times.

Welfare benefits have become common supplements to workers in Nigerian establishments.  It is in realization of the above that emphases are laid on the myth about the nature and work life of the average Nigerian civil servant.  It projects the picture of complacent individuals whose sense of responsibility has been dulled by frustration and negativisms.

Amaechi (1984:13) points a very clean picture of the impact and relevance of employee welfare packages when he contended thus:  If it would be unreasonable to suppose that people will continue to find satisfaction in cooperating in company affairs, if reciprocal, interest is not show in their individual needs and problems; here lies the value of welfare schemes.  This consideration offers the most direct explanation of management regard for its employees as a people.

Also, he stated that a sound and equitably administered programme of employee welfare schemes is an important and integral part of well balanced industrial relations since a programme has the advantage of providing needed protection of improving morale, help to give a sense of loyalty and providing an incentive for quality performance on the job.  All these would definitely enhance employee’s productivity.

1.1.1      Brief History of Nigeria Breweries Plc Aba

       Nigerian Breweries Plc incorporated in 1946, is the pioneer and largest brewing company in Nigeria.  The Nigeria Breweries Aba was commissioned in 1957, which was the second to be commissioned.  The Nigeria Breweries Plc has a rich portfolio of high quality brands; Star Larger Beer, the first in its portfolio which launched in 1949.  This was followed by Guilder Larger Beer in 1970. Maltina the nourishment drink, was introduced in 1976, followed by Legend Extra Stout in 1992.  Amstel Malta was launched in 1994 while Heineken Larger Beer was re-launched into the market in 1998, Maltina Sip-It, packaged in tetrapaks was launched in 2005, while Fayrouz was launched in 2006.  In 2007, the company introduced Star Heineken and Amstel Malta in cans.  In 2011, the company sold a total of 29 stock keeping units including Guilder can, legend can etc.

The Nigeria Breweries Plc Aba which is one of the eight operational Breweries from which its high quality products are distributed to all parts of Aba and Abia as well.  Today, the company produces employment directly t over 1000 staff and indirectly to 10,000 Nigerian’s ad also place high priority on training ad retraining of all categories of staff.  In this regards, the skill and high level manpower needed to the major concern of this study which borders on how they manage people working in the brewery.

Finally, the company has not failed to carry out its social responsibilities to its workers, community and the nation at large. It has supported education by establishing trust funds for funding higher institutions, awarding of scholarship to secondary and university and also foremost sponsor of sports and also to government (federal and state).

1.2  STATEMENT OF THE PROBLEM

Many organizations have suddenly started losing patronage and hence declining sales and revenue.  One possible cause of the problem could be traced to the inability of managers to take the advantage of the numerous benefit derivable from administering welfare packages to their employees as and when due, and other organization that have attempted to do this, do so wrongly and untimely due to their inability to correct predicted changes.

However, in order to help reduce the high mortality rate of organization in Nigeria, there is need to determine the extent to which welfare packages can increase employee performance and increase productivity.

1.3  OBJECTIVES OF THE STUDY

       The objectives of the study are as follows:

1. To determine the relationship between welfare packages and increased performance and productivity.
2. To determine the relationship between well articulated welfare packages and industrial harmony in private organization.
3. To do a comprehensive and systematic analysis of the private service in Nigeria Breweries Plc Aba and the factors that breed inefficiency in that vital organ of the executive branch.

1.4  RESEARCH QUESTIONS

In order to fulfill the research objective, the following research questions were posed and would be addressed.

1. To what extent does quality of welfare package impact on performance and productivity?
2. Does the level quality of welfare packages affect productivity in the private sector?
3. Is the payment of salaries and wages, the only motivating tools or factors for employee’s to put their best in organization?
4. What are the things that constitute the welfare packages in Nigeria Breweries Plc Aba and how they are administered?

1.5  SIGNIFICANCE OF THE STUDY

       The research work will reveal the causes and failure and administrative incompetence in the private organization with special reference to Nigeria Breweries Plc Aba private services.

It will express the fact that it is not just enough to pay workers salaries and conclude that all is well and therefore the employees will discharge their functions effectively and efficiently.

It will emphasize on the relevance of welfare packages and other incentives in private organization and how it increases the performance of the employees.

1.6  SCOPE OF THE STUDY

       The essence of this study is to establish the relationship between productivity and the availability of welfare packages in the private services of the top management level, middle management and supervisory division of the Nigeria Breweries Plc Aba in Abia State.

1.7  LIMITATION OF THE STUDY      

       The researcher was faced with some obstacles.  In the course of carrying out this study as result of some factors such as financial and materials constraints which is beyond the researchers control.

• Time Constraints: The time available for this research to be carried out is limited since other activities are bound to infringe and interfere with the time allocated to the project. This time has constantly been depleted by the incessant changes in the school calendar.  Also being a student research, the research is often expected to complete the work within a specific time for it to be successful.
• Lack of Funds: The research is constrained financially because of the high cost of material.  The high cost of transportation occasioned by increased in fuel has not help matters in any way since one has to travel to places to collect materials for the research.  The result is that research fund may be insufficient in inadequate for one to carry out research as would wish to.
• Infrastructural Inadequacies: There is a general condition of inadequacy of infrastructure such as textbooks, libraries, telecommunication equipment, computers network and social amenities that makes life comfortable for the researcher.  The lack of appropriate textbooks in most libraries is a serious impediment to a research of this nature.  Majority of the libraries is not well stocked with the pre-requisite textbooks.

1.8  DEFINITION OF TERMS

• Productivity: This is a measure on the degree of efficiency of a given set of input resources or labour used to produce goods and services.
• Efficiency: This is the ability to minimize the use of resources in achieving organizational objectives.
• Motivation: This refers to the process which elicits controls and sustains certain behaviour.
• Welfare Packages: These are rewards, benefits, compensation other than wages or salary which are offered to employee to enhance their well being at some cost to the employer.
• Impact: This refers to the powerful effect of something i.e. effect s of something.

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Full Project – The impact of welfare packages on employees performance