The Effect of Irregular Payment of Workers Salaries on Productivity of Workers in Imo State (A Case Study of Owerri Municipal Council)
Chapter One
OBJECTIVES OF THE STUDY
There is no gain saying on the fact that Owerri Municipal Council is faced with irregular payment of workers salary which has often been a controversial issue in the council. Indeed, success in labour compensation management has became an acid test for management efficiency.
The researcher is motivated by the worrisome state of affairs caused by our study in hand. Thus, the researcher seeks to examine, analyze and proffer solution to the attendant problems. She thereby came up with the following objectives:
- To ascertain whether irregular payment of workers salary can attract potential skilled workers to the hands available in the economy to work.
- To determine the extent irregular payment of workers salary affect productivity.
- To ascertain ways of solving the problems associated with irregular payment of workers salary in Owerri Municipal Council and in Imo State in general.
- To determine the best ways of solving the problem of irregular payment of workers salary.
CHAPTER TWO
LITRATURE REVIEW
INTRODUCTION
A lot has been said and done in the areas of workers welfare and reward management by scholars, which are already in the market. However, the nature of our present work is one that there is no room, for assumptions or take position. Therefore, we shall use some of the views of scholars who have consolidate on the already existing guidelines on this issue of irregular payment of workers salaries in Owerri Municipal Council and where possible apply new principles.
It has been a general observation that reward management is a very essential aspect of industrial relations and a very fragile aspect in the determination of productivity in any organization of productivity in any organization.
Anugwon (2007:173) defines reward management as all those actions and processes by which an organization deploys tangible and intangible benefits, privileges and incentives at its disposal to induce staff of the organization to accept those norms of behaviours, performances and codes of conducts that will lead to achievement of the corporate objectives. Reward in this aspect may be direct in the form of salary or indirect in the form of fringe benefits. But salary which is the direct form of reward is what the researcher is concerned about and its administration.
Several authors have defined salary in different ways. In the words of Ogunna (1999:258), salary administration constitutes perhaps the most important aspect of personnel management as without employees remuneration, there would be no performance and indeed no business or government organization. Workers put efforts to make sure that the set objectives of the organization is achieved, in carrying out their functions. The ability of some organizations or government parastatals to attract and retain workers in sometimes a function of how much they pay and how they pay it. The salaries been paid to workers have a great influence o n the degree of organizations efficiency and productivity. Salary is always a substantial portion of an organization total cost of operation and could be more than 50% of the operating cost in some organizations.
Ogunna (1999:257) also defined wage as the cost of the employees service to the employers. He continues that it is the compensation which is calculated on the basis of hours. It is a general term reflecting to the direct monetary compensation. Wage is been paid on the ground that work has been completed. It is normally periodical and could be instant or weekly.
On the other hand, Ogunna (1999:257) quotes Beach (1995) as saying that salary is compensation that is uniform from one pay period to the other and does not depend upon the number of hour worked. Ogunna added that salary is associated to the white collar job. In other words, salary refers to monthly rate paid to clerical administrator and professional employees.
Moreso, in the words of Anugwom (2007:173), compensation plays a useful role in the exchange relationship between an employer and employee. While the employee has at his disposal knowledge, skills attitudes, experiences and qualification, and the employee while the employee has at her disposal, pay, benefits and incentives. In other to attract the employee to work for the organization and incentives whereas the worker uses his skills, attitude, knowledge, experience and qualification to stimulates the organizations interest in the worker.
Meanwhile, how the salary is been administered is very important. Fashoyin (1980:129) defines irregular payment of salaries as a situation whereby workers basic pay is not as at when due, either due to lack of fund or other organizational problems. Irregular payment as defined may be seen as an unfavourable situation to the employee and even to the employer because if the employee is not paid with interest i.e. may be demoralized thereby causing a negative effect on productivity. A continual occurrence of this situation may result to industrial conflict or industrial action.
However, Carter (1998:112) points out that irregular payment of salaries reduces the workers quit rate. He adds that with less turnover, fewer job openings exists, lessening the need for unemployment as a worker discipline device. Other authors like Drazen (1986) and Perry (1990) have found a complementary result. They are of the view that regular payment of salaries will raise productivity and welfare even as they lower employment. In the same vein, Shapiro and Stiglits (1984:249) opined that regular payment of wages can raise welfare because they lower turnover or shirking and so the higher unemployment can be output increasing if it further reduces turnover or shirking and so further raises productivity.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
INTRODUCTION
This research work is a review and consolidation of those principle that tends to work for or against the productivity of workers in general and Owerri Municipal in particular. More so, this chapter attempts to give a clear picture of the research design and methodology that will be used in the study. Research methodology is concerned with the processes, methods or procedures and tools adopted in obtaining and analyzing the data obtained in the study of the subject matter “irregular payment of workers salaries in Owerri Municipal”.
RESEARCH DESIGN
This is the specification of method and procedures for acquiring the information needed to solve the problem of the subject matter. The research design used in this study is the survey techniques. This is because survey research techniques studies large population and also small population, usually as samples that are representatives of such populations. This means that it will need to survey the population being studied in other to draw correct conclusions.
Also, the research design adopts the sampling methods, the simple random sampling was also used. This was because the researcher wants to give equal chances of selection to the number of the population chosen. The methods were preferred because of its suitability for the nature of the population used and it is simpler and clear to understand.
METHODS OF DATA COLLECTION
This refers to the various means or sources through which information was gathered for the research work. In the collection of data for this research work, the main sources are primary and secondary methods of data collected were utilized.
Primary Method of Data Collection: This was mainly through oral interview, observation and questionnaire.
Secondary Method of Data Collection: This refers to the works of authors through textbooks, magazine, journals, and other important published and unpublished materials used for this research work. The library was a reliance and informative source from which data were collected. Among other material were articles, seminar paper, public lecture papers, undergraduate project works etc. All provided us with information on the aspect of the work or the other.
POPULATION AND SAMPLE SIZE
Population
The population involved in this project work includes the management, supervisors, and the junior staff from the Ministry of Works and Health of the Owerri Municipal Council of Imo State. The record of Owerri Municipal of Imo State revealed the total number of staff in the services of the ministries of works and health in the Owerri Municipal Council which is 600 staffs. There are 320 males and 280 females staff in the ministries.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
INTRODUCTION
Data collected from primary data source and questionnaires are presented in the table and the result findings analyzed one after the other. The final result are used in finding out solution to the research questions.
Out of the questionnaires distributed, 200 were correct. Therefore, the analysis was done based on the questionnaire collected although it is a strong relationship between the Owerri Municipal and their workers. The researcher also took time to verify the reliability of the answers from the various respondents.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
INTRODUCTION
We have tried to present our view in a manner, we think that is best for the topic, “the impact of irregular payment of workers salaries on productivity”. In this chapter therefore, we shall summarize all we have done in the other chapters, especially summarizing our findings, making a befitting conclusion for the topic and also making recommendations on the way forward. The recommendations were itemized in a comprehensive manner.
SUMMARY OF THE FINDINGS
In the course of our study, it was realized among other things that if Imo State workers are properly compensated, it will enhance their performance at work and also make them put in their best to achieve the objectives of the organization.
Irregular payment of workers salaries had been emphasized as a factor which had led to enhancing workers performance. It has been described as a process of creating organizational conditions that will cause workers to strive to superior performance. This study has been able to establish the relationship between workers salary and their performance. This will go a long way to prove that the more salaries a worker receive, the higher the performance and productivity.
Effective and efficient wage and salary management will bring about effectiveness and efficiency in civil servants performance especially in Owerri Municipal. Workers are eager for wage increment and incentives that will boost performance and productivity. Every state government would naturally want to see workers work hard at all times, it has been established that workers satisfaction brings about joy and creativity at work.
Moreover, it has been exposed several times that government had proposed for one wage or the other but it had been adequately implemented. Government should looked into propose wage policies and ensure that her set up committee or commission monitor the proposal and implementation. This will bring about good performance in the Owerri Municipal Imo State and dignity in labour.
CONCLUSION
Having toured so much on the issues of irregular payment of workers salaries and having encountered so many difficulties on the way t o achieving this, we now posit that the future of salary management in Owerri Municipal is bright and crucial in our time, when computer and globalization are with us and as a result governments and other employers now have the burning desire to maintain high productivity because of the severe competition in the economies.
More so, an attempt has been made in this research work to present guideline for the organization of salary in Imo State in general and Owerri Municipal in particular. From the basis of workers when not adequately motivated leads to low morale, low productivity and less performance.
Hard work is simply considered to be the amount of efforts attaining the desired goals of any organization. Workers of Owerri municipal are looked upon to work hard at all times, but hard work does not always come on its own. This calls for government to do something to motivate the workers to work hard.
Effective irregular payment of workers salaries has significant effects on the enhancement of workers productivity in remunerating workers. Individual should not be considered rather the job itself.
Effective irregular payment of workers salaries has significant effects on the enhancement of workers productivity in remunerating workers and should not be considered rather the job itself. Finally, Owerri Municipal require setting motivational strategies, techniques and means capable of taking care of situational and individual difference on the job.
RECOMMENDATIONS
Based on the exposition and findings of this research work, couple with problems identified and in line with the objectives of the study, we hereby present the following recommendations that would necessary in enhance the civil servants productivity and performance especially Imo State workers.
- Government should strive to encourage that state workers by improving factors currently in use in motivating them and also make sure that wages are administered in order to cover strike and low performances.
- Job security which one of the motivational factors should be provided to workers as this will lead to effective performance and boom to the state.
- Workers performance should be appraised from time to time and they should be informed periodically of the extent to know if they are measuring up to standard.
- Most employees satisfaction and dissatisfaction and work performance is based on their pay. Therefore, workers should be give a reasonable pay.
- Financial reward should not be the only incentive used to motivate workers.
- The cost of living prevailing in the state where the civil servants are, should be put into consideration in compensation to Imo State workers.
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