ABSTRACT

The study looks into workers’ motivation through wages and salaries administration its influence in Nigerian organization. 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 and eventually used chi-square to analyze and conclude on the hypothesis that wages and salaries serves as motivational tool and that wages and salaries has significant relationship with workers performance in Nigerian organization.

CHAPTER ONE

1.0 INTRODUCTION

According to Mc Cormic and Tafflin (1979), motivation can either be intrinsic or extrinsic. Intrinsic motivation stems from motivations that are inherent in the job itself and which the individual enjoys as a result of successful completion of the task or attaining his goals. Intrinsic motivations are rewards that can be termed as “psychological motivations” and examples are opportunity to use one‟s ability, a sense of challenge and achievement, receiving appreciation, positive recognition and being treated in a caring and considerate manner. An intrinsically motivated individual according to (Ajila 1997) will be committed to his work to the extent which the job inherent contains tasks that are rewarding to him or her.

Extrinsic motivation are those that are external to the task of the job such as pay, work condition, fringe benefits, security, promotion, contract of service, the work environment and conditions of work. Such tangible motivations are often determined at the organizational level and may be largely outside the control of individual managers. An extrinsically motivated person will be commit to the extent that he/she can gain or receive external rewards for his/her job. (Ajila 1997) further suggests that for an individual to be motivated in a work situation there must be need, which the individual would have to perceive the possibility of satisfying through some reward. If the reward is intrinsic to the job, such desire or motivation is intrinsic but if the reward is described as external to the job, such motivation is described extrinsic.

Good remuneration has been found over the years to be one of the policies the organization can adopt to increase their workers performance and thereby increase the organization productivity. Also with the present global economic trend, most employers of labour have realized the fact that for their organizations to compete favourably, the performance of their employees goes a long way in determining the success of the organization. On the other hand the performance of employees in an organization is vital not only for the growth of an organization but also for the growth of individual employees. An organization must now who are its outstanding workers, those who need additional training and those not contributing to the efficiency and welfare of the company.

Throughout the years production has increased for many reasons in addition to the particular motivation and has erroneously over simplified a highly complex phenomenon since the psychologists have been especially concerned with understanding an individual through his motives and acquired a body of knowledge in this field that often differs from the Layman‟s knowledge is necessary to review briefly from the psychologists point of view what is known about motivation at the present time. In Uganda, effective use of rewards and motivation to influence workers‟ performance begun in 1970s, since then performance of workers has become important due to the increasing concern of human recourses and personal expects about the level of output obtained from the workers due to poor remuneration. This attitude is also a social concern and is very important to identify problems that are met in industrial settings due to non-challant attitude of managers to manage their workers by rewarding them well to maximize their productivity. All efforts must be geared towards developing workers interest in their job so as to make them happy in giving their best to their work and this will ensure industrial harmony. Vroom (1964) supported the assumption that workers tend to perform more effectively if their wages are related to performance which is not based on personal bias or prejudice but on objective evaluation of an employee on merit. Though several techniques of measuring job performance have been developed in general, the specific technique chosen varies on the type of work. All these issues call research efforts so as to bring focus on how an appropriate reward package can gear up or influence the workers to develop a positive attitude towards their job and thereby increase their productivity.

1.1 BACKGROUND TO THE STUDY

“Thou shall eat from your sweat” says the Lord to our great, great grand-father and mother at the beginning of the world. This has led to people, man and woman, old and young to always engage in one activities or the other to make ends meet and/or to at least put food on their table and possibly to cloth themselves.

These activities we get ourselves involved in, is what is referred to as of today, as employment and where employment scenario occur, there must be an employer – one who engage the services of another and the employee - one who his /her services is engaged. Sales of Goods Act establishes the fact that for there to be a valid contract of sales there must be, among other things, what is referred to as consideration which could otherwise be referred to as the price or value of the transaction(s). The employment related law, as well, established that for a valid employment contract there must be a price to be paid by the employer to the employee at the end of a fixed period monthly, forth nightly, weekly or daily. This is what we otherwise called wages and/or salary. This is the compensation paid to individual for engaging their services or rather a return for their sweat. 

However, the issue of what constitute a fair day’s pay has plagued managers/employers for decades coupled with the fact that most employer of labor are capitalist who want to part with little or nothing as cost to generate huge profit. Therefore, employees require and must be provided with adequate and equitable rewards for their contributions to organizational goals. This is valid because the compensation employees are paid is the most tangible measure they have for their worth to the organization.

Compensation includes all rewards, individual receive as a result of their employment. As such, it is more than monetary income. The reward may be one or a combination of the following:

Pay – the money that a person is paid for performing jobs, that is, direct financial compensation. Benefits – additional financial benefits other than the basic pay such as paid holidays, medical insurance and many more.

Non-financial – non-monetary rewards that an employee may receive such as enjoyment of the work performed and a pleasant working environment and prestige.

All the above types of compensation comprise a total compensation programme. Naturally, financial compensation, both direct and indirect, comprises the heart of such system. In designing a total compensation programme which will attract, retain and motivate employees, all types of rewards should be considered. It is, therefore, pertinent to emphasize that among all these compensation, wages and/or salaries form the major part of compensation. Then, our focus on this study shall be on wages and salaries as a tool for arousing job satisfaction in organization.

1.2 PROBLEM STATEMENT

Salaries though not the only tools for motivation, but we all know and appreciate the fact that money according to a wise saying, “doeth all things”. Many motivational theories were postulated by management theorists talking about things and how those things could help improve the output of workers at work but basically, the issue of salaries administration had really been dwell on as a tool that influence and to boast workers efforts at work.

Yet, there is no workers who can be said to be doing a gratuitous service for his/her employer. No matter how small it may be, such worker must be compensated. Again, the social environment makes most workers to enter into employment agreement because the social conditions left them with no other way to gain a livelihood. Do not forget that other lower animals does most things we do but where distinction is drawn is that human beings can invent and develop new methods of production which the animals is incapable of doing As such, for one to invent and possibly, develop new methods of production, such an employee must be compensated with salaries which will, probably, serve as the driving force or rather energy boaster.

1.3 PURPOSE OF STUDY

This work intend showing the influence of workers on salaries administration. The driving force to putting in more effort by workers daily to organizations. First, it will show the difference between a paid job and a gratuitous job and eventually, how well paid workers put in much more effort to their job and possibly how such staff or worker always avoid what will bring them at logger heads with their employer.

It must be noted that workers with little pay will never feel secured no matter the extent of the job security because the assumption will be that such job is just for them to be leaving the house on daily basis and possibly, to gather working experience. This is because such job cannot and will not be able to fulfill and satisfy their social needs and obligations. This is considering the kind of family tie and circle we operate as Africans. Relatives upon relatives from relatives are still part of your family and there is always the need to cater for them, that is, the super extended family.

1.4 RESEARCH QUESTIONS

The research questions will be tailored towards the purpose of the study such that if they are answered, one will clearly realize why and how salaries administration serves as motivational tool in Nigerian organizations and its influence. The questions are the following:

i. Is there any attitudinal difference in the efforts of paid workers and gratuitous workers?

ii. Can workers that cannot fulfill or satisfy his/her social obligations not emotionally disturbed?

iii. What constitutes a daily wage or monthly salary?

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

v. Can compensation (wages and salaries) that are not adequate encourage workers to put in their very best?

vi. Does adequate compensation (wages and salaries) not part of those factors that determine job security under Maslow’s hierarchy of needs?

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