IMPACT OF WAGES AND SALARIES ADMINISTRATION ON EMPLOYEE PRODUCTIVITY (A Case Study of Sona Breweries Nigeria Plc)
This research project is on the impact of wages and salaries administration on employee productivity. The purpose of this research work is to know the impact of wages and salaries administration on the staff of Sona Breweries Nigeria Plc. The aim of the wages and salaries administration program of Sona Breweries is to improve the quality of productivity and to prepare employees for greater organization productivity, for, without wages and salaries administration personnel, an organization will find it difficult, to achieve its objectives or organizational goals. This is because of the immense role played by manpower and its plausible impact on the efficiency of the organization.
Three research working hypotheses were formulated by the study researcher in order to avoid deviation from the study. These are centered on the impact of wages and salaries administration on employee productivity in private organizations. The use of questionnaires and personal interviews are analyzed on different tables, using percentages where appropriate. The data collected were analyzed and the hypothesis tested. The finding summary, recommendation including conclusion is based upon the study that was made.
TABLE OF CONTENT
Table of Content
1.0 Introduction of the Study
1.1 Statement of the Problem
1.2 Objectives of the Study
1.3 Research hypothesis and question
1.5 Scope of the study
1.6 Significance of Study
1.8 Definition of Terms
2.0 Literature Review
2.1 Measured Day work System
2.2 Profit Sharing Scheme
2.3 Wages Salaries Policy
3.0 Research Methodology
3.1 Population of the Study
3.2 Sample Size of the Study
3.3 Source of Data Collection
3.4 Method of Data Collection
3.5 Research Design
4.0 Research and Analysis of Data
4.1 Data Presentation
4.2 Data Analysis
4.3 Testing of Hypothesis
4.4 Computation and Interpretation of Hypothesis Test
4.5 Statistical Tools
4.6 Decision Rule
5.0 Summary of Findings, Recommendation, and Conclusion
5.1 Summary of Findings
5.4 Suggestion for Further Studies
1.0 INTRODUCTION OF 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 schemes involve paying an employee a bridge that reflects his productivity on contribution to the organization. Equity demands that what ‘A’ gets in relation to ‘B” must be justifiable in terms of the productivity of ‘B’ to the same organization.
The ultimate purpose of an incentive payment system is to enhance productivity, thus each incentive payment system used must be justifiable in terms of motivating employees to higher productivity.
In the private sector, i.e SONA Breweries Nigeria Plc review of wages and salaries are done at regular intervals 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 the 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 characteristics of the job as contained generally in the job description. Extrinsic rewards refer to the financial compensation, i.e monetary attached to the job.
In fact, wages and salaries administration determines or influences productivity in any organization. What is wages and salaries administration? What roles do wages and salaries administration play in productivity? Why should employees/workers be motivated? Are there incentives in a private sector like SONA Breweries Nigeria Plc? These are some of the relevant issues addressed in this study.
1.1 STATEMENT OF THE PROBLEM
Wages and Salaries administration aspect, which is the most vital in achieving productivity of the organization. This is the major problem facing most organizations 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, efficiency, and morals of the firms their-by leading to the organization effectiveness.
1.2 OBJECTIVES OF THE STUDY
To identify the organization's policies, objectives, and procedures of wages and salaries. To evaluate the impact of wages and salaries administration as a tool for attaining organization productivity. To determine the effect of wages and salaries administration in the private sector and the employee performance with particular reference. To ascertain the effectiveness of wages and salaries administration. To evaluate the impact of wages and salaries administration as a tool for motivating, promoting, training, and staff development in order to enhance employee productivity. To find out how wages and salaries can contribute to improving employee productivity in their organization.
1.3 RESEARCH HYPOTHESIS
From the problem identified, the following hypothetical statements are
formed, and will be tested to ascertain the level of correlation between the hypothetical statement and research findings.
Ho: There is no significant difference between the hypothetical statement and research findings. Hi: There is a significant difference between hypothetical statements and research findings. Ho: There are no significant differences between salaries and wages administration and employees productivity. Hi: There are significant differences between salaries and wages administration and employees productivity. Ho: There is no significant difference between staff training, development, and employee productivity. Hi: There is a significant difference between staff training, development, and employee productivity.
To what extent is motivation influence employee productivity? Is there any significant difference between wages and salaries administration and employee productivity? Do training and staff development have any correlation Impact on employee Productivity?
D. To what extent have wages and salaries and other incentives have an impact on organization efficiency?
The method of collecting data in this work is through an accessible textbook in libraries, SONA Breweries Nigeria Plc, House Journals Newspapers, Magazines, a questionnaire which was administered directly on the staff of the SONA Breweries Nigeria Plc department, Direct Personal Interviews, Indirect Oral Interviews, Mailed Questionnaire Method, e.t.c. The method of data collection adopted by the researcher is the satisfied random sampling technique. The reason is that it is applicable where we have heterogeneous populations (i.e populations with distinct characteristics).
1.5 SCOPE OF THE STUDY
In the study, effort shall be made to identify the remote and immediate causes of administration of wages and salaries on employee productivity in a private organization. In order words, the study shall be limited to the issues in objectives of the study then examine the wages by which private sectors administer wages and salaries being paid to employees in their organization or establishment.
1.5 LIMITATION OF THE STUDY
This research study focuses on the impact of wages and salaries administration on employee productivity with a case study of SONA Breweries Nigeria Plc, Km 38, Lagos Abeokuta Expressway, Sango-Ota, Ogun State. The researcher was faced with some problems in the course of carrying out the study.
The first problem encounter was financial problems and secondly, the time factor, the research, was carried out alongside academic works and other day-to-day activities. Thirdly, there was no enough co-operation from the respondent as some of them felt reluctant to answer most of the questions being asked by them.
1.6 SIGNIFICANCE OF STUDY
The significance of this study, therefore, is that it explores ways in which maximum productivity or efficiency through the adequate, motivation of workers can be assured within an organization, say a private sector like the SONA Breweries Nigeria Plc. Within all organizations, the utilization of labor 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.
The research project affords an opportunity of going into 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 SONA Breweries Nigeria Plc.
The researcher highlights the need to ensure efficiency in everything, doing the right thing at the right time. The reason for the research work is, in order for employees or workers to perform better or to the inspired good administration of wages and salaries must be used to enhance organizational productivity.
Good administration of wages and salaries is very important in any establishment for the achievement of overall organization aims and objectives within a very short period of time, so it is very difficult to divorce it.
1.8 DEFINITION OF TERMS
WAGES: It can be described as compensation being paid to employees on an hourly basis.
SALARIES: This is referred to as compensation being paid to employees on monthly basis.
ADMINISTRATION: It may be thought of 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 perform 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 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 effective..