CHAPTERONE
INTRODUCTION
1.1 BACKGROUNDOFTHESTUDY
Organization is the most significant and integral point of administration. Without proper organization, administration is not possible. Thus organization is important to every administrative action. For no administrative action can be implemented without an organization. Therefore,noorganizationcan existwithoutpeople or human resources topilotitsaffairs. Peopleorhumanresources havebeenidentified asthe coreelementinanorganization.
Theconceptoforganizationhasbeenvariously defined,forinstance,Waldo(1978) defineditas“thestructureofauthoritative andhabitualpersonalinterrelationsinan administrative system”. Organizationhasalsobeendefinedas“socialunits deliberately constructedandreconstructedtoseekspecificgoals”(QuotedinMake andPitt.1980).
Gulick(1937)definesorganization asaformalstructureofauthoritythroughwhich worksub-dividedarearranged,definedandcoordinatedforthedesignatedobjective orgoal. Asitwere,individualswhocreatedanorganizationinordertoachievesome specificaimsandobjectivesinturn,theorganizationattractindividuals whowishto becomemembers forthepurpose oftheirownneedformoney,intereststatus and symbols. Organizationis saidtobe aholisticofbothhuman,capitaland materialresourceswith theaimofputtingtheirresourcestogethertomeetgoalsandobjectives. deally an organizationshouldseektoaccomplishallitssetobjectives. However,salaryisone ofthefirstandbasicfundamental humanneeds. Thisisbecausetheimmediate problemsconfrontingaschoolgraduateor anewapplicantis howto secureagoodjob sothathecanearnaliving. Therefore,salaryadministration, meansamethodand process that any organization uses for compensating their workers for service rendered. Salary is also a process of determining monetaryreward for service renderedbytheemployeestoanorganization. Inanutshell,salariesandwages administrationistheestablishment andimplementation ofsoundpoliciesandmethod of employee’scompensation.
1.2STATEMENTOFTHEPROBLEMS
Theusuallyenhancedremuneration paidtothecivilservants,havebeenrendered inadequatebythehighratesofinflationpervadingtheeconomy overtheyears.The civilandpublicserviceshavewitnessed alotofneglectwhichhasledtoadropin salaryandwagesandefficiencyofbothcivilandpublic servants. Inresponse tothis, studyin thepublicandcivilservices,theemployersof labour(governmentandprivate enterprises) introducethemethodandprocessofcompensating theiremployees throughwhatiscalledsalariesandwagesadministration. Though,employerswill impact positively on the employees morale and subsequently induce their performance. Thisworkissettosolvetheproblemsofsalariesandwagesand performances inanorganization. Thiswillgoalongwayinimprovingtheir performanceandhenceleadtohigherproductivity. Promotionpolicyshouldbe awarded asatwhendue. Fromtheanalysisabove,itshowsthatifworkers’ salaries andwagesareequitableitwillenhancetheperformanceoftheemployees. The problemsofsalariesandwages notpaidasatwhendue,salariesandwages increment etcneedtobesolvedthroughgoodsalariesandwagespolicy.Thereshouldbeno delayonannualleave,maternity leave,transportallowance,housingallowances,and medicalallowances.
1.3 SIGNIFICANCEOFTHESTUDY
Salaries and wages administrationis one of the newest personnel challenges in modernorganization. Thisstudyhopestoprovideacomprehensive documentthat would discuss salaries and wages administration in Nigeria and its impact on performance inanorganization. Theresearchworkisofagreatimportancetothe employersandemployeesinthefollowingways:
(1) Toattractandretainsufficientandsuitableemployeesthatwillhelpthe organizationtoachieveitsobjectives.
(2) To reward employees of their efforts and commitment to the organization.
(3) Tomotivateworkersto ahighperformance.
(4) Italsoreveals theextenttowhichsalaryandwagesadministrationpolicy can go a long way in improving workers’ performance in the organizationandhenceleadtoincreasedproductivity.
Theemployeesandtheemployersarethebeneficiaries ofthisstudybecausewhen employeesarewellpaid,theytendtoworkwellbysodoing,theorganization is increasingtheirproductivitybecausetheemployeesarecommittedtotheirwork.
1.4 SCOPEOFTHESTUDY
Thescopeofthestudyis limitedto P & G Agbara Plant, OgunState. Inunderstanding aresearchwork,itsscopeisnormally definedwithrespecttoa geographicalandtimedimension.Thefixingofsuchboundariesis usuallyresortedto duetotheproblemsposedbytheadministrationofalargedata. Thisstudytherefore, conformstoenhancethesalariesandwagesoftheworkerwithintheorganization to increasetheirperformance.
1.5 LIMITATIONSOFTHESTUDY
Theobviouslimitationsoftime,financeandmaterials suchastextbooks andother resourcesontheresearchermakesitabsolutely impossibletoembarkonsuch comprehensive studythatwillcoverthecomparativestudyofthewholelocal government inthestate. Hence,thelimitationhasnecessitatedthechoiceofacase studywhichisP & G Agbara Plant, OgunState.
Hence,thechoicecasestudyisnotarbitrarilyembarkedupon bytheresearcher. Itwasexpectedthatthestudywouldserveasarepresentationofa statefromwhoseinductiveresearchfindingwouldbeofgeneralapplication. The researcherhopesthatotherscholarsinterestedinsalariesandwagesdetermination willundertakeamorecomprehensive studytocovertheentirestateinthefuture. Therefore,wages are regularly,hourlyor weeklypayment made or received by workersforservicesrendered byanemployer. Hence,bothsalariesandwagesare paymentforlabourservice.
1.6 RESEARCHQUESTIONS
Thefollowingresearchquestionsareposedto aidtheresearcherinthestudy.
(1) Towhatextenthassalaryandwagesaffectedtheperformanceofworkersin anorganization.
(2) Whysalaryandwagesadministrationinanorganization?
(3) Towhatextenthaslackofsalaryandwagesdeterminationaffectedworkers?’
(4) Domanagementofferadequatesalariesandwagestoworkers?
(5) Aresalariesandwagesamotivatorforperformanceordissatisfied?
(6) How has salary and wages affected the improvement of the workers’ performance?
1.7 HYPOTHESES
Forthepurposeof thisstudy,thefollowinghypothesesarepostulated:
Ho: Therearenoinadequaciesintheprovisionofsalariesandwagesofworkersas atwhendue.
Hi: Thereareinadequaciesintheprovisionofsalariesandwagesofworkersasat whendue.
Ho: Salaryandwagesadministrationisnotimportantinanorganization
Hi: Salaryandwagesadministrationisimportantinanorganization
Ho: Improvementof workersisnotbasedonsalariesandwages
Hi: Improvementof workersisbasedonsalariesandwages
1.8 OBJECTIVESOFTHESTUDY
Itisonethingtobeblessedwithabundant humanresources andanothertomanage theseresourcestoachievestatedobjectives. Noorganization canhopetomoveor improvepositively withouttheeffortofherworkersandassuchsoundsalariesor wages isasinequanonforimprovedperformanceofworkers.Theycontributedinno smallwaytowardsimprovedperformancein theorganization.
Therefore, thisstudyamongotherthingsisaimedatachievingthefollowing objectives:
(1)To determine the relationship between salaries and wages and workers productivityinP & G Agbara Plant, OgunState.
(2)Tomeasureifadaywork:earningisdirectlyproportionaltothetimeworked butratesaregraded.Thisis mostlyappliedto dailypaidemployees.
(3)To ascertain whether salaries and wages administration boosts the performancesof theworkers.
1.9 DEFINITIONOFTERMS
- SALARY: amajorresponsibilityofanorganizationistomakesurethatits workers’salarie Theorganization hastobecertain thatsalariespaidcansatisfythebasicphysiological andsafetyneedsoftheir employees,whichwhensatisfied,onecanexpectthemtoputtheirbesteffort inordertoachievetheorganizational objectives. Therefore,salaryreferstoa fixedregularpaymentusuallymadeeverymonthorannuallytotheemployees ofanorganizationconcerned. Salarycouldbeanagreedamountofmoney betweentheemployerandtheemployeetobepaidattheendofeverymonth inrespect oftheservicestoberendered. Salariesarecompensationpaidbased onanannualrateofpay,thoughitisusuallypaidmonthly irrespectiveofthe numberof hoursworked.
(2) WAGES:Itistherewardthatindividualreceivesfromanorganizationin exchangeofhislabour. Peoplewhoworkinanorganizationareengagedinan exchangerelationship. Theemployees exchangethelabourforfinancial rewards. To the employer, the most important oblication he owes his employeesistheirwages. Wagesarecompensation paidonhourly,dailyor weeklybasis. Itisusuallypaidtolabourer,part timeworkersetc. workersare paidbasedonthenumberof hoursworkedandnotactually ontheamountof work done. Therefore, wages are regularly or usually hourly, daily etc paymentmadeorreceived forworkorservices renderedbyanemployee. However,bothsalariesandwagesarepaymentforlabourorservicesrendered.
ADMINISTRATION:
Thereisnouniversalityindefiningadministration.
Administrationisinevitablebecausewherepoliciesordecisionaremade,they must be applied. According to Augustus Adebayo, administrationis the organization anddirectionofresourcesbothhumanandmaterialforthe accomplishmentofspecificgoal. Individualnowtendtodefine administration fromtheirpersonal.
FRINGEBENEFIT:
Thisisanextraamountpaidtoemployeestobetter their working conditions, it is inform of rent supplements, transport allowances,etc. It givesemployeea desirableworkingconditionsandit satisfiestheirneeds.
1.10 HISTORICAL BACKGROUND OF THE CASE STUDY
P&G was founded in the US in 1837 by two men who met by chance. William Procter and James Gamble were from England and Ireland respectively and were on separate journeys through the United States when the challenges of travel led both of them to Cincinnati. They might never have met had they not married sisters – Olivia and Elizabeth Norris – whose father convinced them to become business partners and In 1837, a humble but bold new enterprise called
Procter & Gamble was born. What began as a small, family-oriented soap and candle company grew and thrived, inspired by P&G’s Purpose of providing products and services of superior quality and value.
P&G started in Nigeria in 1992 with the acquisition of the Richardson Vicks manufacturing plant in Ibadan by Procter and Gamble. Local production of Vicks and Always began in 1993 and Pampersin1994, P&G is now a leading consumer packaged goods-company in Nigeria, reaching almost 6 million Nigerian households daily. Our innovative brands touch and improve the lives of people all across Nigeria. With cumulative investments in millions of dollars, and a new state-of the art Pampers plant under construction in Ogun State, P&G is now expanding across West Africa with a vision of making Nigeria a major production.
The power of P&G’s Purpose is the one factor above all others that has contributed to the Company’s long heritage of growth. This collection of moments in our history explores how, from the very beginning, P&Gers have been in touch, in the lead and improving lives every day. Our Purpose is an essential part of who we are, who we have been, and who we will be for generations to come.
1924 P&G becomes the first company to conduct deliberate, data-based market research with consumers. This forward-thinking approach enables us to improve consumer understanding, anticipate consumer needs and respond with products that improve their everyday life.
1930 P&G is the first business to advertise direct to consumers on a national level with the first TV ad for the Ivory soap brand in 1939. P&G is also responsible for the concept of the “soap opera” as the first sponsor of a radio drama.
1948 P&G becomes one of the first companies to formally respond to consumer correspondence by establishing our Consumer Relations department. The addition of free phone numbers in 1973 and email in the 1980s further enhance consumers’ ability to contact us and keep the consumer at the heart of all we do.
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