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CHAPTER ONE

INTRODUCTION

  • Background to the Study

Every day the problem of a functional wage and salaries burdens the government, the employers and the employee in both the public and private sectors of our economy.  Wages and salaries questions are the most important of all terms in any economy.  Not only they come up most frequently they also take more time to discuss and give rise to the greatest number of disputed. This leads to a conflict of interest because while wages are cost to the employers they are income to the workers (employees).

Nigeria workers have not for one day enjoyed a unified salary structure.  In most cases the public sector enjoys a different wage system from that of the private.  Though there has been an advancement in compensation, theories, criteria assumptions, techniques, relief measures and research into wages and salary scientist have for several years devoted much attention to the study of wage and salary and  have developed variety of theories concerning the level of wage and its determination and role, which wages play in the functioning of the economy.

In the public sector organization, individual are employed to carryout various activities to achieve the organization stated goal and objectives. These individuals are the civil servant is the life wire of the state machinery and an essential factors for initial development, also he further stated that civil servant is a large scale organization of per market government paid official who are reunited in a civil capacity by the civil service commission, executive authority of 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 government.

These government officials who are reunited in the service have at their disposal knowledge skills, attitude, experiences and qualification in order to meet with the goals to attract the government. The government/employers on the other hand have its disposal to pay, to attract the employee/civil servants to work for the government organizations and become her members. These pay is the wages and salary that are been paid to the civil servants.

The primary purpose of wages and salaries to the civil servant is to motivate her in order to provide high performance for the service and organizational efficiency and increased in productivity. The development of wages and salaries assumes that availability of accurate jobs prescription, are use in two activities, job evaluation and wages and salaries survey. these are designed to ensure that the payment system is both internally equitable and externally competitive. Wages and salaries play role to the civil servants, in that, it serves as a way of acquiring the necessities, luxuries needs of the civil servants, also it makes employee feel that his efforts have been recognized and may derived a sense of achievement from the job.

More so, on effective wages and salaries, policy provides guidelines for compensating its employees. This policy can address some which can aid in increasing their civil servants efficiency and effectiveness.

Therefore the sensitive impact of differential in wages and salary structure in Nigeria economy demands that the formulation and enforcement of a fair policy should be a matter of central importance at the national level.

 

  • Statement of the Problem

It causes dissatisfaction or lack of satisfaction.  For instance  if workers “A” does not earn equal amount with “B” he will be angry with “B” and will not be satisfied with the amount he is been paid. Also deferential does   not earn equal amount with his labourers or subordinates (workers) have good economy miles to see if they would meet up in economy situation and this will result to restless days and also over working. It causes negative productivity. In this case the difference in wages and salaries or worker will have to affect productivity because by worker not receiving the same amount of

compensation they will lead to a negative productivity or it will reduce the output of the organization.

 

The difference in wages and salary of workers may lead some workers taking unnecessary risk. This is so because the level of wages paid to works depends on the level rise associated with their job. Due to this so many workers have in one way or the other engaged themselves to so many types of risk in the sense that they went to satisfy their employers. After making use of the Federal Polytechnic, Oko library and with the help of the assistant there we were able to know some of the problems that are responsible for the difference in wages and salaries structure in Federal Polytechnic, Oko and they are as follows.

 

 

  1. PROFESSION: The paramedical personnel from the majority number of  the staff within the senior staff cadre followed by the doctors then the administrative personnel.  According to paramedical personnel

 

showed existing among the health personnel in the same organization, performing almost the same function is demoralizing to them and also affect their productivity and professional relationship in the organization. The administrative personnel are also saying that they also feed supervisors to the paramedical personnel.

  1. LENGTH OF SERVICE: From the records we went through and found out that some staff  has served in the organization with 1-5years, some 11-15years and so on.
  2. QUALIFICATION: According to the records we also understand that wages are commensurate to qualification and experience. Over 80% of medical person agreed and experience while 20% remained indifferent saying that all of them are graduates and are suppose to paid the same amount (FEDERAL POLYTECHNIC, OKO JOURNAL)

 

 

 

 

  • Research Question

This study will attempt to answer specific questions like:-

  1. What are the impact of uniform wages and salaries structure in the Nigeria public sector?
  2. What is the problems that are inherent in non uniform in salaries and wages of workers who work in the public sector?
  • What are the environmental factor that affects the salary and wages among workers?

 

  • Purpose of the Study

It is expected for any research work to provide answer to a particular problem.  In view of this, this project tends:

  1. To examine the impact of uniform wages and salaries structure in the Nigeria public sector.
  2. To highlight the problems that are inherent in non inform the salaries and wages of workers who work in the public sector.
  • To identify and correct the environmental factor that affects the salary and wage among workers.

 

  • Significance of the Study

This research study into the difference in wages and salary structure in Nigeria economy. a case study of Federal Polytechnic, Oko (Health sector) has one of  its important and that providing valuable knowledge to workers in general and Federal Polytechnic, Oko staff in particular the volume of economy activities as well as the standard of living for the Nigeria working class citizen.

Other benefit that will be derived from this project work are:

To eliminate inequities within Federal Polytechnic, Oko wage structure and also to maintain an equitable labour cost structure which invariable will help to facilitate Nigeria economic development   . Since the impact of wages and salaries review effect the whole national generally this project will also help recommending for parity in the Nigeria institutional system applicable to the whole public sector. Also this work will help to balance of payment with the various prices increase and reduce the frequently of salary review which negates stability and unifies salary structure.

 

  • Scope of the Study

This project work is not directed at identifying the impact of non uniform wages and salaries structure in the Nigeria public sector using Federal Polytechnic, Oko as the case study.

 

1.7     Limitation of the Study

However, the suggestion offered may be found useful by other corporations.

 

 

 

In carrying out this research work, there were a lot of limitations that affected the study.  These involves:

  1. i) Financial Resources: The physical cash could not meet the materials needed for this project work because of the increase in cost of things generally.
  2. ii) Time Constraint: The time allocated for this project work was not really enough since lectures were going on simultaneously.

iii)     Literatures related to this study were not sufficient enough for thoroughly research, as a result, limiting the collection of relevant data.

 

  • Definition of Basic Terms
  1. Salary: Salary can be defined as a fixed payment at regular interval for service. It is a payment made to workers for service rendered.
  2. Wages: Wages are payment received to become obvious that man has to labour himself to the point of satisfaction in order to met up with the necessities of his life either in private or public sector as the case of railway corporation is concerned.

To buttress this statement, it is stated clearly in the theory of Douglas Mc. Gregor that “the expenditure of physical and mental effort in work is natural as play or rest”.  The average human being does not inherently dislike work.

  1. i) This study will reveal how productivity can be effectively increased since an increase in salaries and fringe benefits of such production section will mentally increase the strength of workers, which enable them to work efficiently and effectively.
  2. ii) To enable the researcher meet the requirement for the award of National Diploma in Public Administration and Management.

iii)     With the aid of the study, an industrial sector either private or public, will know how and when the efficiency of their labour.

  1. Workers: A worker is a person who applies or contributes both physical and mental strength with the purpose of getting things done to achieve a particular objective in order to earn his living.
  1. Public Sector: Public sectors are those infrastructural organizations, fundamental to the natural economy, which the government decided to control in order to ensure a proper balance between social and commercial aims. These organizations include: Nigeria Railway Corporation, Nigerian Post Authority, Nigerian Airways, Enugu Electricity Distribution Company, etc.
  2. Corporation: Corporation can be defined as an institution operating the service of an economic or social character on behalf of the government.
  3. Corporation to manage and operate in accordance with the provision of this act, the railway undertaking transferred to the corporation by virtue of the provision of the Act. These undertaking may include, any expansion or extension, construction of new railway and provision of all reasonable facilities for carriage of passengers and goods.

 

 

 

1.9     Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, purpose of the study, research questions, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter.     Chapter three is a research methodology covers deals on the research design, area of the study, population of the study, sample and sampling techniques, methods of data collection, instruments for data collection, reliability of the instruments, validity of the instruments, distribution and retrieval of instruments and methods of data analysis. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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