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EFFECT OF DELAYED
PAYMENT OF SALARIES AND WAGES ON EMPLOYEE PERFORMANCE IN NIGERIA
ABSTRACT
In recent years, cases of irregular payment of salaries and
wages to workers in government ministries and parastatals have become a house
hold issue. Hardly would nay month pass with out the media report about the
difficulties being faced by workers as a result of delayed payment of their
remuneration in the form of salaries, wage gratuity or pensions. At one time it
will be in the federal ministry at other time it may be in the state ministries
on the local government.
The strategic position assumed to be occupied by financial
rewards in the relationship between the workers and their organization aroused
the curiosity of the researcher to such extent that he decide to find out the
effect of delayed payment of salaries and wage on the performance of employees,
using the federal ministry of agriculture and natural resources, Enugu branch
as a case study.
In carrying out the study, survey methodology was used in
gathering data, after gathering and analyzing the data, it was discovered that
factors such as financial impropriety, ghost workers syndrome and diversion of
funds were instrumental to government decision to carryout series of
identification and screening exercises and change in there accounting system
which combined to cause delays in the payment of workers salaries and wages which I turn
resulted in the decrease in the volume of work performed.
Based on these findings, recommendations were made on how to
solve the lingering problem. They include. Training the employees especially
those in account and personnel department on the modern methods and technique
of carrying out their assignment, computerization of the operation at least the
above two departments, effort to retain the civil service glamour and a special
recurrent expenditure account for the ministries. It is hope that when these
recommendations are applied, the problem of delayed payment of salaries and
wages will become a thing of the past.
CHAPTER ONE
1.1
BACKGROUND OF THE STUDY
Every business is of primarily profit oriented, which I see
as the objective which it set out achieves. The objective are stated or defined
in their policy or mission statement.
In order to achieve the set goal, management ensures that all
operations, activities of the organization conform to the established guides.
The attitude of the employee leads to the achievement of the organization and
the organization should ensure that employees are not created bad so that their
attitude could not affect their performance.
Most of the things which affects the performance of the
employee is, if there is any delay in payment f their salaries and wages.
What is performance? According to the oxford advance
learner’s dictionary of current English (Homby, 1995: 860).
Performance means an action or achievement considered in
relation to how useful it is in relation to workers performance refers to the
action of the employees as they relate to the achievement of the set objective
of the ministry. Employee performance occupies a central position in determine
the success or failure of any organization.
This could be the reason why Mba, (1992:25), state that of
all the resource of any organization, human resources remain the pivot on which
other resource revolve and its performance determined the effectiveness and
efficiency of the organization.
In the light of the above it is penitent to ask one vital
question. The question remains, what is responsible for employee how
performance? To answer question correctly, one has to look into the factor
affecting performance e of worker and see it any of them is present in this
ministry, one of the known factory militating against workers performance is
poor conditions of services.
Chief among these condition is the method of payment and this
is one are in which federal ministry of agriculture and natural resources has
not being doing well. Reports from the workers themselves indicate that there
has been irregular payment of salaries and wages and other fringe benefit to
workers in recent times. In the course of this study, we attempt to find out
the effect of delayed payment of wages and salaries on employee performance
using Enugu branch of federal ministry of agriculture and natural resource as a
case study.
1.2
STATEMENT OF THE PROBLEM
For about two years now, employees of federal ministry of
agriculture and natural resources Enugu branch have been facing difficulties in
receiving their salaries and wages as at when due. Complaints shown that since
the inception of the present democratic government, payment of salaries and
other Fringe benefits to workers in this ministry has been irregular. Sometimes
it is delayed up to three months and at other times at say up to five months
before it is paid this situation has lingered to the extent that the workers
have lost hope of ever receiving their salaries at the end of every month, as
was the case some years age.
In recent
time, changes in the attitude of employees of this ministry have become
noticeable. These changes include; going to work later, truancy in the office,
quarrelling among workers themselves and frequent absence from duty without
leave. All these could be regarded as the result of lack of motivation. The
question now is, does delayed payment of workers salaries and wages affect.
Their performance? If it does, what should be done to remedy the situation
before it gets out of hand?
1.3
OBJECTIVE OF STUDY
The objective of this study includes the following:
· To find out
why payment of salaries and wages are delayed in the federal ministry of
agriculture and natural resource Enugu Branch.
· To determine
if this delay has affected the performance of employee in this ministries
· To ascertain
feelings of the workers
· To suggest
solution to the problem.
1.4 THE
SIGNIFICANT OF THY STUDY
The aim of this research is to look into the cause of delay
in the payment of salaries and wages of the employee with a view to proffering
a lasting solution to the problem.
It hoped that when these solutions have been applied and the
situation brought under control, it would have brought to an end, the suffering
and agony which has lingered in the lives of workers of this establishment and
thereby giving them a sense of belonging which will in turn improves their
performance and help organization to achieve the objectives for which it was
established it will also serve as a reference, which shall aid parishioners of
management in solving similar problem in future.
1.5 THE
RESEARCH QUESTION
The following research question formed the basis for the
questionnaire and interview that will be used for data collection.
· What are the
causes of irregular payment of workers salaries in the federal ministry of
agriculture and natural resources Enugu branch?
· What is the
effect of delayed payment on the performance of workers in the ministry?
· How do the
employees feel about the situation?
· What should be
done to bring the situation to an end?
1.6 THE
SCOPE OF THE STUDY
Since this study seeks to find out the causes of delay in the
payment of work salaries and wages and the effect which the situation may have
on the performance.
Therefore, the scope of this study is limited to the federal
ministry of agriculture and natural resources Enugu branch (FMANR).
All categories of workers are involved and the entire
department covered.
1.7
LIMITATION OF THE STUDY
There is some
factor, which have contributed in making this research work not to be as thorough
and comprehensive as it ought to be.
The include the following.
· Time
construing: the time within which this research was expected to be completed
was very short compared to the enormous work required to be done in the course
of these writing. This was further compounded by the fact that the researcher
needed to fulfill other academic obligations necessary for the award of in
higher national diploma in business administration and management.
· Finance;
limited finance resource also constitute a significant factor in hindering the
success of this research. A lot of money was required for transportation to the
organization being studied and other resource centers where relevant materials
and information were to be collected.
· Lack of
cooperation: the unwillingness of officers of the ministry to answer contain
question limited the information available to the researcher. Some of them
consider some information to be government secret, which should not be given
out, which some claimed they have no authority to speak on the matter.
· Scope of the
study: the research was limited to the federal ministry of agriculture Enugu
branch. This made it that only the information gathered forms this branch was
considered.
1.8
DEFINITIONS OF TERMS
· Performance –
this refers to action considered in relation to how successful it is.
· FEANR: this an
abbreviated forms for federal ministry of agriculture and national resources.
· Salary: this
means a fixed regular payment made to employees of an organization usually on
monthly basis
· Wages: a
regular, usually weekly payment made or received for work or service.
· Inefficiency:
this refers to the gap between the actual performance and expected performance.
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