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1.1 BACKGROUND OF THE STUDY
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, no organization can exist without people or human resources to pilot its affairs. People or human resources have been identified as the core element in an organization.
The concept of organization has been variously defined, for instance, Waldo (1978) defined it as “the structure of authoritative and habitual personal interrelations in an administrative system”. Organization has also been defined as “social units deliberately constructed and reconstructed to seek specific goals” (Quoted in Make and Pitt. 1980).
Gulick (1937) defines organization as a formal structure of authority through which work sub-divided are arranged, defined and coordinated for the designated objective or goal. As it were, individuals who created an organization in order to achieve some specific aims and objectives in turn, the organization attract individuals who wish to become members for the purpose of their own need for money, interest status and symbols. Organization is said to be a holistic of both human, capital and material resources with the aim of putting their resources together to meet goals and objectives. deally an organization should seek to accomplish all its set objectives. However, salary is one of the first and basic fundamental human needs. This is because the immediate problems confronting a school graduate or a new applicant is how to secure a good job so that he can earn a living. Therefore, salary administration, means a method and process that any organization uses for compensating their workers for service rendered. Salary is also a process of determining monetary reward for service rendered by the employees to an organization. In a nutshell, salaries and wages administration is the establishment and implementation of sound policies and method of employee’s compensation.
1.2 STATEMENT OF THE PROBLEMS
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, study in the 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. Though, employers will impact positively on the employees morale and subsequently induce their performance. This work is set to solve the problems of salaries and wages and performances in an organization. This will go a long way in improving their performance and hence lead to higher productivity. Promotion policy should be awarded as at when due. From the analysis above, it shows that if workers’ salaries and wages are equitable it will enhance the performance of the employees. The problems of salaries and wages not paid as at when due, salaries and wages increment etc need to be solved through good salaries and wages policy. There should be no delay on annual leave, maternity leave, transport allowance, housing allowances, and medical allowances.
1.3 SIGNIFICANCE OF THE STUDY
Salaries and wages administration is one of the newest personnel challenges in modern organization. This study hopes to provide a comprehensive document that would discuss salaries and wages administration in Nigeria and its impact on performance in an organization. The research work is of a great importance to the employers and employees in the following ways:
(1) To attract and retain sufficient and suitable employees that will help the organization to achieve its objectives.
(2) To reward employees of their efforts and commitment to the organization.
(3) To motivate workers to a high performance.
(4) It also reveals the extent to which salary and wages administration policy can go a long way in improving workers’ performance in the organization and hence lead to increased productivity.
The employees and the employers are the beneficiaries of this study because when employees are well paid, they tend to work well by so doing, the organization is increasing their productivity because the employees are committed to their work.
1.4 SCOPE OF THE STUDY
The scope of the study is limited to P & G Agbara Plant, Ogun State. In understanding a research work, its scope is normally defined with respect to a geographical and time dimension. The fixing of such boundaries is usually resorted to due to the problems posed by the administration of a large data. This study therefore, conforms to enhance the salaries and wages of the worker within the organization to increase their performance.
1.5 LIMITATIONS OF THE STUDY
The obvious limitations of time, finance and materials such as textbooks and other resources on the researcher makes it absolutely impossible to embark on such comprehensive study that will cover the comparative study of the whole local government in the state. Hence, the limitation has necessitated the choice of a case study which is P & G Agbara Plant, Ogun State.
Hence, the choice case study is not arbitrarily embarked upon by the researcher. It was expected that the study would serve as a representation of a state from whose inductive research finding would be of general application. The researcher hopes that other scholars interested in salaries and wages determination will undertake a more comprehensive study to cover the entire state in the future. Therefore, wages are regularly, hourly or weekly payment made or received by workers for services rendered by an employer. Hence, both salaries and wages are payment for labour service.
1.6 RESEARCH QUESTIONS
The following research questions are posed to aid the researcher in the study.
(1) To what extent has salary and wages affected the performance of workers in an organization.
(2) Why salary and wages administration in an organization?
(3) To what extent has lack of salary and wages determination affected workers?’
(4) Do management offer adequate salaries and wages to workers?
(5) Are salaries and wages a motivator for performance or dissatisfied?
(6) How has salary and wages affected the improvement of the workers’ performance?
For the purpose of this study, the following hypotheses are postulated:
Ho: There are no inadequacies in the provision of salaries and wages of workers as at when due.
Hi: There are inadequacies in the provision of salaries and wages of workers as at when due.
Ho: Salary and wages administration is not important in an organization
Hi: Salary and wages administration is important in an organization
Ho: Improvement of workers is not based on salaries and wages
Hi: Improvement of workers is based on salaries and wages
1.8 OBJECTIVES OF THE STUDY
It is one thing to be blessed with abundant human resources and another to manage these resources to achieve stated objectives. No organization can hope to move or improve positively without the effort of her workers and as such sound salaries or wages is a sine qua non for improved performance of workers. They contributed in no small way towards improved performance in the organization.
Therefore, this study among other things is aimed at achieving the following objectives:
(1) To determine the relationship between salaries and wages and workers productivity in P & G Agbara Plant, Ogun State.
(2) To measure if a day work: earning is directly proportional to the time worked but rates are graded. This is mostly applied to daily paid employees.
(3) To ascertain whether salaries and wages administration boosts the performances of the workers.
1.9 DEFINITION OF TERMS
(2) WAGES: It is the reward that individual receives from an organization in exchange of his labour. People who work in an organization are engaged in an exchange relationship. The employees exchange the labour for financial rewards. To the employer, the most important oblication he owes his employees is their wages. Wages are compensation paid on hourly, daily or weekly basis. It is usually paid to labourer, part time workers etc. workers are paid based on the number of hours worked and not actually on the amount of work done. Therefore, wages are regularly or usually hourly, daily etc payment made or received for work or services rendered by an employee. However, both salaries and wages are payment for labour or services rendered.
There is no universality in defining administration.
Administration is inevitable because where policies or decision are made, they must be applied. According to Augustus Adebayo, administration is the organization and direction of resources both human and material for the accomplishment of specific goal. Individual now tend to define administration from their personal.
This is an extra amount paid to employees to better their working conditions, it is inform of rent supplements, transport allowances, etc. It gives employee a desirable working conditions and it satisfies their needs.
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 Pampers in 1994, 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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