Effect of Salaries and Wages Administration on Employee’s Attitude to Work in an Organization
CHAPTER ONE
Objectives of the study
The broad objective of the study is to examine the impact of effective wages administration on first bank employee’s attitude.
However, the specific objectives of the study are to examine:
- The relationship between wages administration and employee attitude in first bank Nigeria.
- The constraints to full implementation of adequate wages by banks in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Review of related literature
Past works relating to the subject matter of this study were reviewed in this section of the study. The review was carried out under the following sub heading: conceptual reviews, relationship between effective wages administration and the employees performance in the organizations, perceived constraints to full implementation of adequate wage by some state bank management in Nigeria, theoretical framework and empirical review.
Conceptual Review
Wages administration like many other concepts in the social and behavioural or managerial sciences has been given a variety of definition. This is because most literature on the concept sees authors defining it from their various world views. However, within the context of this study, wage administration simply put, means the management of human resources with respect to salary payment to workers when services are rendered. In keeping with their own side of the contract, employers endeavour to pay their workers. The implication is that there exist a contractual agreement between workers and the employer. The way and manner the wages or salaries are paid determines to a large extent the performance of the employees.
In the opinion of Manadhar (2005), there are levels to bank wages, namely, reservation wage, efficiency wage and capitation wage. Reservation is given on opportunistic event, efficiency is fixed far and above the opportunistic wages while capitation is deliberately made very low because it is presumed that employees make extra income through corrupt practices. This presumption has not passed through any test for authentication. Therefore, it can as well be regarded as a sweeping generalization.
The Theory of Wages.
Propounded by David Ricado , a classical economist born in 1772 and lived to 1823. Graham (1988) defined wage as the payment made to manual workers while a salary is a fix periodical payment to a non-manual employee. It is usually expressed in annual terms implying a relatively permanent employment relationship, although normally paid at monthly intervals. He further explains that “salaried workers are usually termed „staff‟ while, wage earners are called „casual workers.
Wages are something received by a worker or paid by an employer for time on the job; money received or paid usually for work by the hour, day, or week, or month; a calculation or statement of money earned for a period of time from one hour (hourly wage) up to one year (annual wages). Now let us discuss about wage level.
What is a Wage Level?
May be defined as the money an average worker makes in a geographic area or within in an organization. It is only an average; specific markets or firms and individual wages can vary widely from the average.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
A descriptive survey design was used in carrying out this study. As a plan for research project, it provided us with guidelines which directed the researcher toward solving the research problem. As Nwana (1981) puts it, research design is a term \ used to describe a number of decisions which need to be taken regarding the collection of data before ever the data are collected.
Population of the Study
The population for the study consists of workers at First Bank PLC Lagos state, Nigeria. including those whose establishments have not been scheduled but are drawing salaries and wages from the organization. However, for convenient sake, the population was stratified into scheduled and unscheduled staff. Two Thousand Nine Hundred and Fifty One (2951) Senior Staff of these two categories of workers were identified for the purposes of this study. That is, 1918 of the scheduled staff and 1033 of unscheduled staff.
CHAPTER FOUR
PRESENTATION OF DATA AND ANALYSIS
Analysis of Research Questions Research Question One:
This research question is concerned with the relationship between effective wages administration in first bank and employees performance. The responses from the respondents were presented in Table 2 below.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
Conclusion
Wage administration is an aspect of industrial relations. It is one of the many areas of interaction between workers and bank management or employees and management. Therefore cordial relationship must exist between bank management and the workers for organizational goals to be realized. The employees in First Bank PLC are not paid living wages and as a result, many engage in other means of earning extra income for lively hood and sustenance. Poor salaries and wages contribute to corruption and un-productivities. Reasonable evidence exist in literature that adequate and regular salary are some of the motivational factors that employees need to be efficient and productive. Unfortunately, experience from the field (respondent opinion) did not suggest that employee in the state are so encouraged. In fact inefficiency, unproductiveness and corrupt practices observable in the system were necessitated by poor wage administration within the period under study.
The excuse that non-implementation of adequate wage policy is as a result of bank management’s learn resources is unfounded. Bank management has the capacity to implement the policy but the problem is weak leadership and misplacement of priority. Other problems leading to non-implementation of adequate wage are corruption, over bloated work force which leads to low productivity and lack of political will to improve condition of service for workers.
Recommendations
Based on the findings and conclusion made from this study, the following recommendations were made:
The bank management should endavour to identify the needs of the worker and address them promptly so that the employee can be at their best all the times. This is in line with Maslow’s theory of Hierarchy of needs, human beings have many needs that are different in nature, ranging from biological need at lower level to psychological need at the upper level.
The success or failure of any bank management is a function of its relationship with the employees. In the light of this, the bank management should give priority to the welfare of those in its employment because they can make or move bank management programmes.
Wages administration in the state should be seen as a very serious issue by the bank management. In fact, bank management should set-up a standing-committee for salaries and wages review at regular intervals of not more than five years. This will take care of effect of inflation on workers salary and as well reflect the real economic realities in the economy.
The bank management should maintain optimal size of workforce. This they can do by stopping the politically motivated employment which has encouraged redundancy and low productivity. Instead, the bank management should pay unemployment allowance to the unemployed while creating enabling environment for the private sector to thrive and give employment to the people.
Finally, bank management should always enhance the salary of employees so that their take-home pay can provide at least their basic needs so as to dissuade the few corrupt ones from engaging on sharp practices as a result of insecurity arising from such inadequate salary. It is believed that the nonchalance and laxity currently being observed among some employees is as a result of loss of confidence in the bank management to fulfill its own part of the contract of employment between it and its employees.
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