Full Project – The effect of irregular payment of workers salaries on productivity of workers

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

       Individual are employed in every public sector institution to carryout various activities to achieve the institutions set goals and objectives.  These public institutions are government own which are financed and managed with tax payer’s money.

The individuals who work in these public institutions are referred to as civil servants.  Ogunna (1999), states that civil servants are the life wire of the state machinery and an essential factors for initial development.  He further states that civil services is large scale organization of permanent government paid officials who are recruited in civil capacity by the civial commission charge with the responsibility of exercising the executive authority of the government and whose activities are guided by certain rules of procedure and operation in a systematically interrelated pattern, to achieve the complex objectives of its employers.

Like in every other government institution, civil servants who are recruited into the Owerri Municipal have at their disposal knowledge, skills, attitude, experience and qualification in carrying out the activities of the government.  The employer which is the government on the other hand have at its disposal the pay to attract its employee to work and become its members.  This pay is otherwise the salaries paid to civil servants.

The fundamental purpose of this salary is to encourage these civil servants to provide high performance for the organizational effectiveness and efficiency to positively affect productivity.  The development for salary assumes the availability of accurate job description.  This job description includes job evaluation and salary survey.  These are intended to ensure that the pay system is both internally equitable and externally competitive.  The salary to the civil servants is meant to serve as the way of acquiring the necessities, luxuries and all the needs of the workers.  It also makes the worker feels that her efforts have been acknowledged and may derive a sense of achievement from the job.

However, when a worker sacrifices all his/her efforts, knowledge, skill and will power in ensuring that there is a high productivity in organizational and having mind that a monthly entitlement (salary) will be given to him/her in order to take care of his/her problem but at the end, he/she gets nothing.  The worker is being demoralized to work or force to lose interest which in turn will affect productivity thereby resulting to low productivity.

Finally, an effective salary policy provides guideline for compensating employees.  It also addresses some issues servant efficiency and effectiveness.

1.2  STATEMENT OF PROBLEM

Workers are known for their inefficiency especially when not paid.  Hence most government parastatals are even seen as dead woods.  The question is how workers performance and behaviours can be encouraged.  Again, how could the sit syndrome and engagement in private business during official hours could be curbed in order to enhance their enumeration?

Where a worker is owed several months, he/she has no other option than to source to sustain life which may be a sought of engaging in private business.  If this nonpayment of salaries continues, it then results to low productivity as against the organizational goals.

Irregular payment of workers salary may however, result to the following action, demonstration, laziness to work or even absenteeism to work.  Owerri Municipal Council is faced with these problems which thereby result to low productivity in the council.

1.3  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:

1. To ascertain whether irregular payment of workers salary can attract potential skilled workers to the hands available in the economy to work.
2. To determine the extent irregular payment of workers salary affects productivity.
3. To ascertain ways of solving the problems associated with irregular payment of workers salary in Owerri Municipal Council and in Imo State in general.
4. To determine the best ways of solving the problem of irregular payment of workers salary.

1.4  RESEARCH QUESTIONS

1. Can irregular payments of workers salary attract potential skilled workers to the service of Owerri Municipal Council?
2. Irregular payment of workers salary does it affect productivity in Owerri Municipal Council?
3. In what ways can the problem associated with irregular payment of workers salary be solved?

1.5  STATEMENT OF HYPOTHESIS

       This study is exposed to test the following:

Ho:  Irregular payment of workers salary has no negative effect on productivity.

Hi:   Irregular payment of workers salary has negative effect on productivity.

Ho:  Remuneration of workers has no effect on their output.

Hi:  Remuneration of workers has effect on their output.

1.6  SIGNIFICANCE OF THE STUDY

       Statistics has shown that over 60 percent of industrial actions in the state are traceable to agitations about irregular payment of workers salary’s and demand for increase in salaries allowance.

Owerri Municipal Council and Imo State in general are often paralyzed by industrial actions.  Most of the industrial actions in the civil services were industrial conflicts caused by irregular payment of workers salary.

Favorable, we are optimistic that our dream to reveal or to divulge the solution to the problem of irregular payment of workers salary in Owerri Municipal Council would be enthusiastic and of great benefit to other government organization or parastatals both in Imo State and Nigeria in general.

Again, we have in mind that this work would also benefit private owned organization in their effort to overcome the problems associated with irregular payment of workers’ salaries.

Finally, we also hope that at the end of this study, we must have achieved lending support to the already done works on this topic for the benefit of future researchers.

1.7  SCOPE OF STUDY

       A lot has been done in the areas of workers performance, encouragement and efficiency and on productivity by scholars who are already in the market.  We do not promise to give a damaging analysis of those pioneer works but to give credence to the already established guidelines of the issue of irregular payment of workers’ salaries.  Nonetheless, this research work was intended to cover only Owerri Municipal Council of Imo State.  However, it was not possible for research to reach all the ministries but two ministries i.e. Ministry of Works and Ministry of Health were chosen for the research.

1.8  LIMITATION OF THE STUDY

Due to the nature of works, I depended on the data gotten from some workers from Owerri Municipal Council, especially from the Ministries of Works and Health and on the already established guidelines since there is no room to take position or assumptions.

Again, in the course of carrying out this study, the researcher was financially constrained to a large extent by the harsh economic condition in the country. Another limiting factor is the inability of the workers met to divulge useful information required for this study.

1.9  DEFINITION OF TERMS

• Salaries: This is referred to as the monthly rate paid to clerical administrators and professional employees.  It is a direct monetary compensation after the job has been done.
• Workers: These are individuals who are hired or employed with in the capacity of any institution or organization charged with responsibility of achieving the institutions set goals and whose activities are guided by certain rules of procedures and operations.
• Productivity: This is the measure of how well resources are brought together in organizations and utilized for accomplishing a set of result.  (Anugwam, 2007).  It is also defined as reaching the highest level of performances with least expenditure of resources (Mali, 1978).

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Full Project – The effect of irregular payment of workers salaries on productivity of workers