The Impact of Remuneration on Employee Job Satisfaction
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To identify the amount of pay increases given to employees at Olabisi Onabanjo University
- To establish the perceived impact of the increment or the motivation of the beneficiary and employees
- To ascertain the effect of remuneration on employee’s job satisfaction
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Many contemporary authors have defined the concept of motivation. Motivation has been defined as: the psychological process that gives behavior purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian, 1993). In this research, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals. At one time, employees were considered just another input into the production of goods and services. What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation of employees become the primary focus of managers (Bedeian, 1993). Many methods of employee motivation have been developed. The study of work motivation has focused on the motivator (supervisor) as well as the motivatee (employee). Motivation theories are important to supervisors attempting to be effective leaders. Two primary approaches to motivation are content and process.
THEORETICAL FRAMEWORK
There is need to define the two constructs/ variables used in this study, before measuring the impact of compensation on workers attraction.
The compensation packages
The research used the classification of compensation packages used in the Nigerian civil service. A person-focused pay is another compensation plan based on worker’s possession of job-related competences, knowledge or skills, rather than required job performance. These classifications are made up of four groups: salary, allowances, gratuity and pension. In this categorisation, salary is a fixed amount paid to workers for the service or work done ( monthly salary, yearly salary and promotional salary increase). Salary is calculated on a weekly, monthly or annual basis. It is designate to pay white-collar workers administrative, professional and executive employees (White and Drucker,2000). Thus, salary is also called basic pay and allowances. Allowances are monetary benefits other than salary offered to workers for specific purposes such as personnel movement, financial support and personnel engagement allowances. Benefits are supplementary compensation awarded to workers apart from the basic salary as a result of some certain circumstances like retirement in this context. Pension is benefits to workers paid upon retirement monthly. A worker to be entitled for pension pay must put in at least ten years of service. Gratuity is lamp sum amount paid to workers after retirement (Amrstrong,2002). Therefore to qualify for the gratuity a worker must have served for at least five years. b) Job Satisfaction Job-related behaviours go along with need for satisfaction (Herzberg et. al 1959). Job satisfaction is one of the major concerns of organisation because it affects organisational outcomes like employee performance and productivity, absenteeism and turnover (Onukwube, 2012). Most employees are proud of their various jobs (Onukwube, 2012) because they are satisfied. In fact, employees show the high degree of job satisfaction and low turnover intention, when the characteristics of their place of work satisfied their need (Bright, 2008). Job satisfaction has been defined in different ways or perspectives (Locke, 1976).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to effect of remuneration on employee’s job satisfaction
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on effect of remuneration on employee’s job satisfaction. 200 staff of at Olabisi Onabanjo University were selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of remuneration on employee’s job satisfaction. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of remuneration on employee’s job satisfaction
Summary
This study was on the effect of remuneration on employee’s job satisfaction. Three objectives were raised which included: To identify the amount of pay increases given to employees at Olabisi Onabanjo University, to establish the perceived impact of the increment or the motivation of the beneficiary and employees, to ascertain the effect of remuneration on employee’s job satisfaction. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Olabisi Onabanjo University, Ogun state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HODs, senior lecturers, junior lecturers and assistant lecturers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The study concludes that there is a significant and positive relationship between remuneration and employees’ performance. It recommends employees’ participation in pay determination, prompt payment of salaries, wages, bonuses and incentives to prevent negative effects on performance of employees and issues of equity in pay
Recommendation
The following recommendations are forwarded
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
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