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EFFECT OF
SALARIES AND WAGES ADMINISTRATION ON EMPLOYEE’S ATTITUDE TO WORK IN AN
ORGANIZATION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Salaries and
wages administration is an essential factor that determine to success and
failure of any organization. This system of motivating workers is very
important for every organization to take proper consideration through salaries
and wages as a factor of motivation can work to some extent, which means they
have limitation in motivating workers to effectively if when they are not apply
in proper way.
According to
Edward Flippo (2002) salaries and wages administration is one of the essential
ways of managing an organizations employees (which is called personal
management) which involves planning, organizing, directing and Controlling of
the procurement, development compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and
societal objectives are accomplished.
Wayne F.
Cascio (2000) states that ‘compensation which involves direct cash payment,
indirect payments in the form of employees benefits and incentives to motivates
employees to strive for higher level of productivity is what is meant by
salaries and wages. And it is a critical component of the employment
relationship.A good compensation package (salaries and wages) is a good
motivator; hence, the primary responsibility of manager is to ensure that the
company’s employees are well paid.According to John Wales (2007), money as a
factor which serves as a potential dissatisfies if not present in an
appropriate quantity but starting us on essential satisfier or positive
motivation. It is apply in an appropriate way. Therefore this study is
basically carried out to examine factors that make workers to be committed to
their work while others are not.
Human
resources management involves a series of activities in which the job, the
individual and change. It is oriented towards efficiency and the welding of
people in effective organizations for the pursuit of abstract organizational.
Objectives
some of the major activities of human resources management are: recruitment,
selection, placement, wages and salaries, staff development e.t.c in business
the “salaries” has come to be associated with white-collar administrative staff
who are not paid by the how and the word “wages mainly with manual workers, who
are paid by the how. Salaries and wages are compensation of workers for the
jobs they have dome or service rendered. Salaries and wages are supposed to
motivate workers, which is not applicable in all cases despite the fact that
some employees are paid and even heavily paid, they still behave anyhow at work
while others that are not paid as much, yet have a good attitude to work. This
study is purposely to examine how salaries and wages affect employee’s attitude
to work in an organization.
1.2 STATEMENT OF THE PROBLEM
Lack of understanding of employee’s
behaviour at work and their attitude to such work has posed a number of
problems to the society. Most managers and employees believe that the important
thing that can motivate the workers to work is to pay their salaries and wages
in time. Another problem that people said to understanding is that there is
what is said to understand is that there is what is called intrinsic reward
that motivate employees to work, rather the salaries and wages they are being
paid.Lack of understanding that employees are mostly concerned with wages and
salaries (extrinsic reward) as well as job satisfaction (intrinsic reward) and
not only how far the salaries and wages can affect employee’s attitude. The
reasons for above problems have made salaries and wages administration a
researchable problem in our society.
1.3 RESEARCH QUESTIONS
1. To what extent has salary and wages
affected the performance of workers in an organization.
2. Can salaries and wages alone satisfy
employees in an organization?
3. Do salaries can motivate employees more
that intrinsic rewards?
4. To what extent is the effect of salaries
and wages administration affect employees’ attitude?
5. How has salary and wages affected the
improvement of the workers’ performance?
1.4 OBJECTIVES OF THE STUDY
It is one
thing to be blessed with abundant human resources and another to manage these resources
to achieve stated objectives. No
organization can hope to move or improve positively without the effort of her
workers and as such sound salaries or wages is a sine qua non for improved
performance of workers. They contributed in no small way towards improved
performance in the organization. Therefore, this study among other things is
aimed at achieving the following objectives:
(1) To determine the relationship between
salaries and wages and workers’ productivity in an organization.
(2) To measure if a day work: earning is directly
proportional to the time worked but rates are graded. This is mostly applied to daily paid
employees.
(3) To ascertain whether salaries and wages
administration boosts the performances of the workers.
(4) Fringe benefit: this is an extra amount
paid to employees to better their working conditions, it is inform of rent
supplements, transport allowances, etc.
It gives employee a desirable working conditions and it satisfies their
needs.
1.5 RESEARCH HYPOTHESES
For the
purpose of this study, the following hypotheses are postulated:
(a) That the salaries and wages of the
organization has no significant relationship with the employee attitude (Ho)
That
salaries and wages administration has a significant relationship with the
employee attitude in the organization (Hi)
(b) There are no inadequacies in the provision of
salaries and wages of workers as at when due (Ho)
There are
inadequacies in the provision of salaries and wages of workers as at when due
(Hi).
(c) Salary and wages administration is not
important in an organization (Ho)
Salary and
wages administration is important in an organization (Hi)
(d) Improvement of workers is not based on
salaries and wages (Ho)
Improvement
of workers is based on salaries and wages (Hi)
(e) There is no need for salary and wages
administration in an organization (Ho)
There is
need for salary and wages administration in an organization (Hi)
1.6 SIGNIFICANCE OF THE STUDY
At the end
of this study, the researcher hopes that, those who come across this research
work will be able to understand the need for salaries and wages administration
and their place in the organization. Business organizations students and
employees of labour may also find the recommendation at the end of the study
useful, if they can strictly adhered to it.
1. 7 LIMITATION OF THE STUDY
This researcher work suffers a lot
of limitation in the areas of fiancé, absence from lectures, time factors,
inadequate text books and relunctancy of the respondents to give relevant
information.
1.8 OPERATIONALIZATION
The aim of
this research work is to expand the scope of knowledge about the possibility of
measuring the positive effect of salaries and wages administration on
employee’s attitude in an organization. This research work is going to be
conducted in first bank on Nigeria. The research model will be described by
assuming salaries and wages administration as the independent variable and
employee’s attitude as the dependent variable. This can be mathematically
written in a linear equation model as follows: Y=f (x), where y represent
employee’s attitudes and x represent salaries and wages administration.
1.9 DEFINITION OF TERMS
1. Effects: The way in which an event, action or person
changes something.
2. Salary: Money that someone is paid for service
rendered according to number of hour, days, week or monthly.
3. Wages: money that someone earn, that is paid
according to numbers of hours, days, or weeks that he worked.
4. Organization: A group of people
that come together for a particular purpose or group of people that form a
particular aim.
5. Administration: all the activities
that are involved in managing, organizing and controlling the affairs of
company institution and organization.
6. Employees: These are set of people
who do regular work or occupation and are paid wages or salaries in return.
7. Attitude: to Work:Way of feeling,
thinking or behaving towards work.
8. Extrinsic Reward: Reward that come
from outside. It can be salaries or Wages
9. Intrinsic Reward: This is reward
that comes from within the employ, such ads job satisfaction.
10. Payment: This is a reward payable to
employee according to performance.
11. Special Allowance: This is payment made
to employ who displays high skills or who stayed for along period in the
company
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