The Impact of Remuneration on Workers Performance Among Nigerian Workers (A Case Study of Nigerian National Petroleum Corporation, Eleme Refinery)
Chapter One
OBJECTIVE OF THE STUDY
Objectives is to critically examine the list of available conditions of workers and better or equitable remuneration, their practicability and execution, as well as their importance towards improving the performance of their workers.
Hence, the basic objectives includes;
- To determine if there is an effect of wages on employee performance.
- To examine the degree at which incentives affects job satisfaction.
- To ascertain the level at which indirect rewards affects workers rate of turnover in business organization.
- To determine if there is any correlation between workers performance and the provision of adequate forms of remuneration.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in four sub-headings:
- Conceptual Framework
- Theoretical Framework
- Empirical Review
- Chapter Summary
CONCEPTUAL FRAMEWORK
EMPLOYEES PERFORMANCE
Hellriegel, Jackson and Slocum (1999) defined performance as the level of an individual’s work achievement after having exerted effort. Job performance can be viewed as an activity in which an individual is able to accomplish the task assigned to him/her successfully, subject to the normal constraints of reasonable utilization of the available resources ( Dar, Akmal, Akram & Khan, 2011) . Motowidlo, Borman, & Schmidt (1997) defined job performance as the overall expected value from employees’ behaviours carried out over the course of a set period of time. This definition according to Bullock(2013) although fairly technical, includes specific ideas that are worth breaking down:
Performance is a property of behavior, or, plainly stated, what people do at work
An employee’s behavior adds expected value to the organization – that is, an employee’s behaviors may be distinguished as helping or hindering an organization, but the outcomes of employee behaviors are rarely measured so their value is merely expected Performance can further be broken down into two distinct types: Task Performance and Contextual performance. Task Performance are the actions that contribute to transforming raw materials to goods and services, the things that are typically included in job descriptions. Examples include selling clothes, drilling holes, or teaching a class. Contextual performance are the behaviors that contribute to overall effectiveness through supporting the social and psychological climate of the workplace. Examples include cooperating with teammates, diffusing conflicts, and cleaning up the conference room (Borman & Motowidlo, 1993) (Bullocks 2013). Three basic assumptions are associated with the differentiation between task and contextual performance (Borman & Motowidlo, (1997); Motowidlo & Schmit, 1999), :
(1) Activities relevant for task performance vary between jobs whereas contextual performance activities are relatively similar across jobs;
(2) task performance is related to ability, whereas contextual performance is related to personality and motivation;
(3) task performance is more prescribed and constitutes in-role behavior, whereas contextual performance is more discretionary and extra-role (Sonnentag & Frese, 2001). Measurement of employee performance is an activity that is very important because it can be used as a measure of success in supporting the success of the organization’s employees (Said, 2008).
REMUNERATION
Remuneration is about the satisfaction that workers gets for the work done which includes all forms of payment or rewards and adding to the satisfaction, moreover this support the organisation to acquire, keep up and hold a beneficial workforce. It is believed that remuneration is the “stick” that ties the workers and the business together and in the cooperate organisation, this is furthermore classified as an contract which is legally binding and spells out specifically what sum should be paid to the employee and the components of the remuneration package. Generally, motivation as a procedure is an internal interest of the individuals and this is the motivation of the conduct of the person who will aim to address this issue. This stream is described by Reeve (2004), Davis and Newstrom (2003). The progression of motivation is dynamic and individual, these have diverse components for instance physiological, psychological and social and these collaborate between theirs. Applying the model of Davis and Newstrom (2003), the remuneration is the prize gotten by explicit behaviors.
Incentives and Rewards:
Reward is very important for employee productivity. Employees feels the worth of their organisation if their well-being is considered first. Employee becomes the device of the organizational expansion and can accomplish organisational intentions if their career self-evaluation is considered too. Mark and ford (2001) posit that organisational success from employee is the preparedness to use their inventiveness and increase the positive inputs and obtain their rewards duly. It is important to motivate the employee duly especially if the employee is highly productive, effectively contributing and eager to perform their obligations in the organizations. Hurtreatal 1990; Entwested 1987 observed that when employee performance is effective more than their employers, employers rewards them in accordance with their performance. Employees assist their organisation to achieve its objectives and build advantages for their company when they are highly motivated (Rizal and Ali, 2010). Hasiban 2003 specified that the level of employee performance increases if they feel satisfied with their job which means that satisfaction derived from rewards thus makes the workers feel so good. The most vital instrument used to inspire employee for putting their best energies to generate the creativity and the new ideas for the firm performance whether financial or non-financial is reward. Dee prose (2014) posit that employee increases their productivity if they are motivated. The capability of the organization to accommodate the needs of employees towards effective job performance lies on good rewards.
Indirect Compensation
As per (Dessler, 2011) Indirect Compensation is the indirect financial and non-money related remuneration workers get for continuing on with their assignment with the business enterprise, this is a basic component of employee’s pay. Different vocabularies utilized for indirect pay are fringe benefits, workers administrations, advantageous remuneration and beneficial compensation. According to (Chhabra, 2001), Indirect or Supplementary remuneration comprises of ‘fringe advantages’ rendered through various workers services and advantages like housing, financial help for nourishment, medical allowance, childcare places for children’s, etc. In the organisation rewards are given by managers to workers for their enrollment, participation or cooperation. Due to the consistent increment in the expenses of fringe benefits, a few people used the term ‘shrouded finance’ for them .Presently these advantages comprise around 40 % of the entire remuneration charges for every worker of the organisation. The essential objective of fringe benefits or indirect remuneration is to attract, energize and retain competent HR in the organisation.
CHAPTER THREE
RESEARCH METHODOLOGY
AREA OF STUDY
This study was carried at NIGERIAN NATIONAL PETROLEUM CORPORATION, ELEME REFINERY.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out on the impact of remuneration on workers performance among Nigerian workers using Nigerian National Petroleum Corporation, Eleme Refinery as case study. Hence all workers of Nigerian National Petroleum Corporation, Eleme Refinery form the population of the study.
SAMPLE SIZE DETERMINATION
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Udoyen, 2019). In this study, the researcher adopted the simple random sampling (srs.) method to determine the sample size.
SAMPLE SIZE SELECTION TECHNIQUE AND PROCEDURE
To determine the sample size of this study, the researcher adopted the purposive sampling techniques. Therefore, the researcher purposively selected 121 staffs of Nigerian National Petroleum Corporation, Eleme Refinery comprising of 74 full time workers and 47 part-time workers, making a sum of 121 respondents as the sample size.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of one hundred and twenty one (121) questionnaires were administered to respondents of which one hundred (100) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 100 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
Introduction
This chapter summarizes the findings into impact of remuneration on workers performance among Nigerian workers using Nigerian national petroleum corporation, Eleme refinery as case study. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was to examine the list of available conditions of workers and better or equitable remuneration, their practicability and execution, as well as their importance towards improving the performance of their workers. The study specifically was aimed at determining if there is an effect of wages on employee performance; examine the degree at which incentives affects job satisfaction; ascertain the level at which indirect rewards affects workers rate of turnover in business organization; determine if there is any correlation between workers performance and the provision of adequate forms of remuneration.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are active staff of Nigerian national petroleum corporation, Eleme refinery.
Conclusions
Based on the findings of this study, the researcher made the following conclusion.
- Wages and salaries have an effect on employee performance?
- Incentives also affects to a certain high degree the job satisfaction of employees.
- Indirect rewards has a high level effect on workers rate of turnover.
- There is a correlation between workers performance and the availability of adequate forms of remuneration.
RECOMMENDATIONS
Based on the findings of this study, the researcher recommends that;
1) The employers of labour both private and government must not take the remuneration of their employees for granted because it will result in low productivity. The research showed that there is a positive significant relationship between remuneration and employees’ performance.
2) The reason for frequent workers strike is borne out of poor remuneration and condition of services which the government must see as a twin scourge destroying the economy.
3) Participation of employees should be encouraged and allowed in pay determination both in the private and public sector.
4) Since employees usually take the issue of equity in pay at work seriously, employers of labour should ensure that their pay is competitive when compared to firms in the same or similar industry.
5) Prompt payment of salaries, wages and all entitlements is also advised.
REFERENCE
- Borman, W., & Motowidlo, S. (1993). Expanding the criterion domain to include elements of contextual performance. In N. Schmitt & W. Borman (Eds.), Personnel selection in organizations. San Francisco, CA: Jossey-Bass.
- Motowidlo, S., Borman, W. & Schmidt, N. (1997). A theory of individual differences in task and contextual performance. Human Performance, 10, 71-83.
- Bullock, R. (2013). Job Performance defined. Retrieved on 23rd August, 2016 from http://www.consultingcafe.com/articles/job-performance-defined.
- Hellriegel. D., Jackson, S.E. & Slocum, J.W. (1999). Management. Cincinnati: SouthWestern College Publishing.
- Said, M.D. (2008), Employee Performance Analysis In Education and Training Center for Religious Semarang. Thesis Magister Administrasi Publik UNDIP.
- Kanzunnudin, M. (2007), Effect of wages and supervision of employee productivity: A case Study on PT Tonga Tiur Son Zenith District Kragan. Fokus Ekonomi, 2(1), 11-20.
- Surbhi, S. (2015). Differences between Salaries and Wages. Retrieved on 24th August, 2016 from .http://keydifferences.com/difference-between-salary-andwages.html#ixzz4IG1CT6Vu
