REMUNERATION AND WORKERS’ PRODUCTIVITY: A STUDY OF EBONYI STATE WATER CORPORATION, ABAKALIKI

ABSTRACT

This study titled “Remuneration and Workers Productivity: A Study of Ebonyi State Water Corporation, Abakaliki” was geared towards examining the relationship between remuneration and Workers Productivity. The study covered all the Water Schemes in Ebonyi State with a population of 1481 staff which was reduced to the sample size of 315 using Taro Yemenis statistical formular and simple random sampling techniques was used. The study is guided by research questions, objectives and hypotheses. The research adopted Expectancy Theory propounded by Victor Vroom in 1964. Descriptive survey design was adopted using structured questionnaire. Frequency distribution table, simple percentage methods were used to analyze the data collected. Whereas Chi-square statistics (X²) was used for testing the hypotheses. The findings of the study reveals that remuneration is one of the basic factors used in motivating workers to put up better performances at their duty post; Economic meltdown, saturation of labour market, job requirements etc are factors affecting workers remuneration; Government has not adequately ensured that workers of Ebonyi State Water Corporation are adequately motivated and employee recognition is one of the non financial rewards that can enhanced Workers productivity. The study recommends that Government should endeavour to provide employees with adequate pay reward to facilitate the achievement of desired high productivity; Government should provide training opportunities for the employees to enhance their productivity; Government at all levels should find out what actually motivates individual employees most, so that incentives can be effectively applied to achieve enhanced productivity in civil service; Government should ensure that work environment is made as conducive as possible.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Remuneration is a total compensation that an employee receives in exchange for the service he/she performs for his/her employer. Typically, this consists of monetary rewards, also referred to as wages or salary. A number of complementary benefits, however, are increasingly popular remuneration mechanisms.

According to Collins (2012), remuneration has been defined as a policy which addresses compensation, earnings, emoluments, fees, income, indemnity, payment, profit, recompense, reimbursement, reparation, repayment retainer, return, reward, salary, stipend, and wages.

For Bowman (2006), remuneration can be defined as all the employers’ available tools that may be used to attract, retain, motivates and satisfy employees. This encompasses every single investment that an organization makes in its people and everything its employees value in the employment relationship.

Good remuneration has been found over the years to be one of the policies that organization can adopt to increase their workers’ performance and thereby increase the organizations productivity. Also with the present global economic trends, most employers of labour have realized the fact that for their organizations to compete favorably, the performance of their workers goes a long way in determining the success of the organization. On the other hand, performance of the employees in any organization is vital, not only for the growth of the organization, but also for the growth of individual employee (Meyer and Peng, 2006). An organization must know who are its outstanding workers, those who need additional training and those not contributing to the efficiency and welfare of the organization or company.

In Ebonyi state Water Corporation, Abakaliki workers are generally under-trapped, underutilized, poorly remunerated and consequently perform low blow their standard to ensure effective productivity. The usually enhanced inadequate by the high rate of inflation pervading the economy over the years. Workers have witnessed a lot of neglect which has to lead to drop in salary and wages.

The problems associated with unmotivated workers includes the complacency or service quality, strikes/industrial disputes, breakdowns in employee communication and relationship, complaints about pay and working conditions, a widespread discouragement. 

Ejumudo, (2014), found that remuneration systems are arguably at the heart of employee performance in any organization. This assertion is premised on the understanding that reward systems have the potency of engendering through the stimulation and direction of employees along the path of goal accomplishment. As a matter of fact, employees are the most critical of all organizational resources and their capacity to function of both their inward potentials and the outward environment in which they operate. This nature-nurture perspective of explaining the indicators of employee performance underscores the indispensability of reward systems as an integral part of organizational environments. In the light of this, it is instructive to assert that well rewarded employees are much likely to feel valued and cherished by their organizations

Works remuneration can either be financial or non-financial or both. What is important is that an employee is adequately compensated for his efforts and such practice actually induces him for greater performance (Gunu, 2005). However, reward that motivates employees may not be the same for everybody. In fact, Fery (1997) argues that once pay exceeds a subsistence level, intrinsic factors are stronger motivators and staff motivation requires intrinsic rewards such as satisfaction at doing a good job and sense of doing something worthwhile. There are mixed findings in the literature to determine which type of reward is more effective in increasing employees’ performance. According to Perry (2006), financial rewards is not the most motivating factors as it sometimes show some de-motivating effects among high level employees.

On the other hand, although Perry (2006) found that financial reward is not the most motivating factor and that financial incentives have de-motivating effect among employees, Lotta (2012) insists that financial incentives are indeed very effective in motivating employee. Also, Ojokuku and Sajuyigbe (2009) lent their own support to the finding when they found in their own study that financial incentives (pay satisfaction dimensions) have significant effect on employee’s performance. However, good as these findings appear, it is important to note that in applying financial and non-financial rewards to workers, effective manager must as a matter of necessity realize that different motivators are appropriate for different staff and that different staff will demonstrate differing inherent levels of motivation in setting their own targets and striving to achieve them (Kida, Mahmud and Nuhu, 2015).

On productivity, the need for productivity improvement exists virtually in all countries of the world whether developed or developing countries like Nigeria etc. The primary reason for this is precisely because of increased productivity and performance and economic growth. Consequently, industrial development effort will come to naught unless a nation’s productivity also improves in the developing countries. It is generally accepted that salaries and wages have to bear some relationship to productivity. The theory is that wages cannot diverge significantly from productivity without causing either inflation or unemployment. The implication is that a dynamic economy with full employment and no inflation might be an achievement in the performance of the organization

1.2 Statement of the Problem

The usually enhanced remuneration paid to the civil servants, have been rendered inadequate by the high rates of inflation pervading the economy over the years. The civil and public services have witnessed a lot of neglect which has led to a drop in salary and wages and efficiency of both civil and public servants. In response to this, public and civil services, the employers of labour (government and private enterprises) introduce the method and process of compensating their employees through what is called salaries and wages administration. Also, comparisons have always been made between private sector employees and the civil servants, in terms of efficiency and productivity, with many conceding to the high commitment and efficiency of the private sector employees.

It must be noted, however, that civil servants face a lot of difficulties in the discharge of their duties in Nigeria (Ejumudo, 2014). Also, Behn (2003) notes that problems of civil servant in Nigeria ranges from poor and irregular pay to lack of rewards to motivate them and enhance their performance.

But the continued decline in the workers/productivity particularly those of Ebonyi State Water Corporation despite their constant pay that have always been based on the agreed remuneration packages, necessitude this research. In view of the foregoing, the following research questions were raised to guide the study

1. To what extent does Remuneration affect workers productivity in Ebonyi State Water Corporation?
2. How has the Government of Ebonyi state ensured that Workers of Water Corporation are adequately motivated?
3. What are the factors that affect Workers Remuneration in Ebonyi state Water Corporation?
4. How does employee Recognition affect workers Productivity in Ebonyi State Water Corporation?

1.3 Objectives of the study

The broad objective of this study is to examine remuneration and workers productivity in Ebonyi state Water Corporation. The specific objectives are:

1. To ascertain the extent does remuneration affect workers productivity in Ebonyi State Water Corporation.
2. To determine the Government of Ebonyi state ensured that Workers of Water Corporation are adequately motivated.
3. To ascertain the factors that affect workers remuneration in Ebonyi state Water Corporation.
4. To ascertain the effects of workers recognition affect workers productivity in Ebonyi State Water Corporation.

1.4 Research Hypotheses

The following were formulated to guide the study.

HO₁: Remuneration has not significant effect on workers’ productivity in

        Ebonyi State Water Corporation.

HA₁: Remuneration has significant effect on workers’ productivity in Ebonyi

        State Water Corporation.

HO₂: Government has not made significant effort in ensuring that Workers    

         of Ebonyi State Water Corporation is adequately motivated.

HA₂: Government has made significant effort in ensuring that Workers of   

           Ebonyi State Water Corporation is adequately motivated.

HO₃: There are no factors that affect workers remuneration in Ebonyi state

         Water Corporation.

HA₃: There are factors that affect workers remuneration in Ebonyi state

          Water Corporation.

HO₄: Workers recognition has no significant effect workers productivity in

          Ebonyi State Water Corporation.

HA₄: Workers recognition has n significant effect workers productivity in

          Ebonyi State Water Corporation.

1.5 Significance of the Study

A study of this nature will go a long way in bringing best practice in formulating remuneration policy to boost productivity in the Ebonyi State civil service and Nigeria at large.

The research work will be a great importance to the employees because it will reveals the extent to which remuneration policy can go a long way in improving workers performance in the organization and hence lead to increased productivity.

Furthermore, this research will be exposing all students of public administration by providing a comprehensive document that would discuss remuneration policy and workers productivity in an organization.

Moreover, this research work will enable the Ebonyi state government to understand the indispensible contribution of remuneration and workers productivity for the growth of Ebonyi state economy and Nigeria at large the study will serve as a good reference material for future researchers / writers on remuneration policy workers productivity. This study introduces another dimension to the study on public sector. The reason being that, it investigate and brings to focus the effects of remuneration policy as it affects employee productivity

Lastly the policy makers in the three ties of government will find the recommendation that will follows in the study very useful because it will give sufficient insight into the issue of remuneration management and employees productivity in the civil servers and public servant. The government will see the need to take the issue of remuneration both financial and non-financial very serious and improve productivity in civil servicers.

1.6 Scope and Limitation of the Study

The study centers on the remuneration and workers productivity, using Ebonyi State Water Corporation as the case study. The nature of the study precludes the Staff of Ebonyi State Water Corporation who are not expected to be involved in management decision making process of the study group.

The study went future to capture and examined the effects of remuneration on Workers productivity, factors affecting workers remuneration in Ebonyi State Water Corporation, and the impact of employee’s recognition on workers’ productivity in Ebonyi state Water Corporation.

In the course of the investigation, the researcher was contained by a lot of factors which includes the following.

1. Financial constrains was the challenges: The researcher face since the research required many for typing, printing and transportation. But the researcher was able to make ends meets with his limited resources thus cost were minimized as possible.
2. It was difficult to lay land on some statistical records and on certain information where treated as top secret and for public consumption.
3. Bias is another factor that is worth mentioning. Most of respondents were biased in their answers.
4. Time: The research was faced with the problem of too much pressure; as she had limited time to carry out the research and at the same time had to read for other courses. But the researcher was able to devote most of her time for the work and ensure that it was accomplished.
5. Another factor that needs mentioning is the sample error: Any work based on that never has accurate as it would have been if were based on the entire population. However, no matter how responsible the sample may be, its statistics are only estimate of the population.

1.7 Theoretical Framework

The theory upon which this study was anchored is the Expectancy Theory propounded by Victor Vroom in 1964. The choice of Victor Vroom’s Valance Expectancy Theory was informed by the fact that the issues involved in employee motivation to induce better performance in the workplace, can be adequately analyzed within the framework of the theory. The theory is popularly referred to as Valence-Instrumentality-Expectancy (VIE).

The major and critical assumption of the theory is that if one thing happens, it will lead to another and that the expectancy in the proposition is the probability that an action or effort will lead to an outcome. Vroom clarified thus: Where an individual chooses between alternatives which involve uncertain outcomes, it seems clear that his behavior is affected not only by his preferences among these outcomes but also by the degree to which he believes these outcomes to be possible. Expectancy is … a momentary belief concerning the likelihood that a particular act will be followed by a particular outcome.

In fact, according to Vroom, the model is based on the assumption that man is a relational being and will always try to maximize his pay-off. He will choose an alternative that will give him the most benefit. Hence according to the theory, motivation to work is strongly determined by an individual’s perception that a certain type of behavior will lead to certain type of outcome and his personal performance for that type of outcome (Chandan, 1987). Put differently, Vroom who attacked Herzberg’s two-factor theory on the ground of being too dependent on the constant and context of his research alone, was of the opinion that a person’s motivation toward an action is determined by his anticipated values of all positive and negative outcomes of the action multiplied by the person’s expectancy that the outcome would yield the desired goals (Vroom, 1964). He further contended that motivation is produced by the anticipated worth of an action to a person’s perception of the probability that his goal would be achieved. Vroom’s theory can be stated thus: motivational force=valency x expectancy.

Expectancy is the perception that a particular outcome will occur as a result of certain behaviour while valence is concerned with how much value an individual places on a specific outcome. Both must be present before a high level of motivation can occur (Ile, 1999). In its form, the theory is concerned more with choice behaviour of both management and the worker, which can lead to desired outcomes of regards (Peretomode, 1991). According to Ejiofor (1984), the theory states that motivation force which an employee exerts to do his job depends on both expectancy and valence.

The theory has found wide application in explaining the complex issues of employee motivation and performance in both private and public sector organizations. It is like a social contract in which the law of reciprocity prevails. The employee expects fair treatment from the employer so that he/she can reciprocate with better performance.

1.8 Operationalization of the key Concept

Remuneration: This refers to direct and indirect rewards given to employee on the basis of the value of the job, their personal contribution and their performances.

Workers: The person who work for compensation weather direct or indirect for another in return for stipulated series.

Productivity: The measures of the output of goods and services relative to resources available. It is also the extent of goods and services produced for work within some specific unity of the hours, day, work, month or year.

Organization: A group of people from a business in order to achieve a particular aim.

Public Sector: The area of the nation’s affairs under government rather than private control.     

Tagged with: Productivity, Remuneration, Workers, Workers' Productivity