JOB EVALUATION A TOOL FOR SALARY/ WAGE DETERMINATION (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, ENUGU)

ABSTRACT

Basically Job evaluation is not new in organizational structure of Nigeria. It started as complain by employee that the relative worth of jobs are not usually determined by the application of objectives criteria or systematic principles, they are noted more often than not by a host of extraneous and sometimes subjective factors such as kinship relationships. Hence, the important part made by organization in the economy of the nation, the plan was not neglected.  To avert this unfavourable situation. A more systematic and objective approach was made in the determination of the relation worth of each job.  It is necessary in a country like ours where the rate of production in a country like ours where rate of production of knowledgeable workers who are generally very sensitive to irregularities in rate in increasing in leaps and bound. Infact, steps are being taken by organizations in Nigeria to save the situation. This will be discussed in later chapters.  This research work will study the extent to which Nigeria organization have worked to harmonize the situations and  a references will be made to Nigerian Bottling Company Plc. This  is because of the uniformity in operation among most organization.  This study will critically examine and analyze the objectives and significant of the study.  In carrying out the study existing texts on similar subjects will be reviewed in the study. Interview will be carriedout in order to get correct and accurate facts about the problem, questionnaire will also be used in information source.

TABLE OF CONTENTS

Title page                                                              ii

Approval page                                                        iii

Dedication                                                             iv

Acknowledgements                                                 v

Abstract                                                                vi

Table of Contents                                                   vii

List of Table                                                           viii

CHAPTER ONE

INTRODUCTION

1.1  Background of the Study                                   1

• Statement of the Problem 3
• Objectives of the Study 5
• Research Hypothesis 6
• Signification of the study 8
• Scope of the study 9
• Definition of terms 10

CHAPTER TWO

LITERATURE REVIEW

2.1  Introduction                                                    12

2.2  Limitation of Job Evaluation                                29

2.3  Reasons for Using Job Evaluation                        34

2.3  Benefits of Job Evaluation                                  35

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1  Research Design                                              39

• Area of Study 39
• Population of the study 41
• Sample And Sampling Procedures 42
• Instrument for data collection 46
• Validation and Reliability of the Instrument 46
• Method of Data Collection and Analysis               47
• Presentation and Analysis of Data 49
• Test of Hypothesis 56

CHAPTER FOUR

DISSUSION, RECOMMENDATION AND CONCLUSION

• Discussion of Result 62
• Recommendations 63
• Conclusion 65

References

Appendix

CHAPTER ONE

• BACKGROUND OF THE STUDY

Strictly speaking, in Nigeria and the world in general, wages classifications is included in the general conditions of their employees, management strives hard to convince employees to perceive that their salaries are both fair and equitable.  Employers fix wages arbitrary or negotiable with prospective employees individually.  Some times collective bargaining may be used to determine salary structure.

Job evaluation is the evaluation of one’s job in relation of others in the organization. It is finding the worth of a job in an organization in relation to others.  Job evolution is done irrespective of the person occupying the job. It is based on job description that is without ob description which comes from job analysis, you cannot attempt job evaluation.

Employees salaries are primarily determined by the grade of job followed by the worth of each job and lastly that each individual on each job must be worth it, it is recognized that in practice, the two most important factors used in determining rate of pay are:

1. What are the firm can afford.
2. Existing market rates payable for similar work.

Employees in general have shown little or no interest to know how their salaries are determined and how the salary differences between different jobs are established and this rates are justified. In the light of the forgoing, it is pertinent and convenient to standardize rates of pay for similar and different kinds of work.

Job evaluation is merely used by management to standardized and inject “fairness and equity” in  salary scales.  Employees have widely accepted job evaluation schemes to mean fairness and equity. A field survey is made on the extent to which job evaluation schme are employed in Nigerian Bottling Company Plc, Enugu as a tool in fixing internal wages differential and comparison.  The limitation and benefits of jobs evaluation practices are established.  Also the job evaluation techniques are listed.

Finally, management role and union participation in determining wage structure and fixing internal wage difference are looked into. The instability and confusion that pervades among organization that do not engage in any job evaluation schemes are also identified.  Constructive recommendation on how job evaluation could be problem used as salary structures determination are also suggested.

• STATEMENT OF PROBLEM

Nigeria Bottling Company workers complained that there is lack of equity between their output and compensation.

Management generally considered in rating a job, the general factors of skill responsibility effort add the value of;

1. The type of supervision received.
2. The congeniality of the work.
3. The steadiness of the work.
4. The amount of overtime and
5. The tightness of incentive standards.

Another problem arising from the installation of jobs evaluation is that it usually promote immediate increase in the number of grievance concerning wages.  Job evaluation gives the wage a sharp structure definition that it did not have before and in effect turns a spot light on wages.  When this new clarity of structure is combined with the systems admitted lack of inflammability. It is obvious that it’s grievance will be filled. It is not so certain that these same grievance were not already present prior to job evaluation there by provides a basis on which the grievances can be filled on the account of the forgoing, the following questions were asked:

1. Is there any equity between the salaries of the Nigerian Bottling Company workers received and their output?
2. Is the fringe benefits relative to the employees output?
3. Is the job environment suitable for the workers?

1.3  OBJECTIVES OF THE STUDY

Job evaluation schemes are valuable management tools that have stood that text of time and gradually but increasingly employed by different organizations throughout the world. It is against this background that this project work is conceived. It aims primarily to answer to answer the questions:

1. To determine the extent to which job evaluation schemes, method or practice are used in Nigeria Bottling Company.
2. To determine the limitations in the practical application of job evaluation if any.
3. To determine who prepares the job evaluation scheme adopted by Nigeria Bottling Company and how it is administered.
4. To ascertain the management value and worker’s value in the application of job evaluation.
5. To make sure there is equity between the salary Nigeria Bottling Company are receiving and their work to make sure that the fringe benefits received by the employees are commensurate to their output.
6. TO make sure that the working environment is suitable by the workers.
   • RESEARCH HYPOTHESIS

Systematically, there are usually two main types  of hypothesis, they are null or negative and alternative or positive.  The null hypothesis usually designated as Ho’ is the negative version of a hypothesis because it assumes that there is no differences.  The alternative or positive hypothesis is the proposition that may be accepted if the statistical null hypothesis is rejected by the sample evidence. The alternative hypothesis is the formal or leading hypothesis of a research study.

In this study, we have three hypothesis

Note – Hi – Alternative

1. Hi – Job evaluation is a major determinant for fair

wage/salary structure.

H₀ – Job evaluation is a major determinant for fair

wage/salary structure.

2. Hi – Wage/ salary structure has positive relationship

with value added in productivity.

Hi – Wage/ salary structure has negative relationship

with value added in productivity.

• SIGNIFICANCE OF THE STUDY

Job evaluation schemes as valuable management tools, have stood the extent the text of time and are increasingly employed by different organization throughout the whole world. Essentially, job evaluation emphasis on analysis of job contents and relative value to job to determine fair and equity pay structure. However, it is worth noting that some authors view job evaluation as only one factor used in the actually fixing of salaries, this however, depends on the organization and it’s objectives.

Employee remains the most important determinant of organizational effectiveness, and this study is geared towards greater employment motivation through establishing fair and equitable pay structure. This will enhance performance and productivity in the Nigeria Bottling Company. It is pertinent that the outcome of this study would help the personal department or administration authorities and policy maker to perform their job effectively. It would also serve as a guide in general administration planning in Nigeria Bottling Company.

• SCOPE OF THE STUDY

This research work focuses on job evaluation in the Nigerian organization system with particular reference to Nigeria.

Nigeria Bottling Company Plc, Enugu was chosen for the fairness and equitable wage and salary determination structure in Nigeria economy.  This came in to study as a result of workers grievance with management, saying that they are not fairly compensated irrespective of the firm output.

• LIMITATIONS OF THE STUDY

I encountered many constraints in the course of this research work. I had the problem of time using the limited time available in making this research work a reality.

Finance was another constraint that made me not to do better than the present quality of this work.  Transporting myself to and from the research places, home and school.  The incorporate attitude of some principles officers also hindered the production of this research work.  There are other constraints that I encountered by they are insignificant restraints that cannot be put down in this research.

• DEFINITION OF TERMS

2. Job Evaluation: An attempt to consider and measure the inputs required of employees (skill, effort and responsibility etc) for minimum job performance and to translate such measure in the specific monetary returns.
3. Job Analysis: This is concerned with the collection of data about jobs.
4. Wage: This is the amount paid for work, if might be a day job, it is not on regular basis.
5. Salary: Payment for regular employment usually paid monthly.

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