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WAGE ADMINISTRATION AND ITS EFFECT ON EMPLOYEES’ JOB SATISFACTION: (A SURVEY OF SELECTED MANUFACTURING FIRMS IN PORT HARCOURT METROPOLIS).






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WAGE ADMINISTRATION AND ITS EFFECT ON EMPLOYEES’ JOB SATISFACTION: (A SURVEY OF SELECTED MANUFACTURING FIRMS IN PORT HARCOURT METROPOLIS).


TABLE OF CONTENTS
PAGE
CHAPTER ONE: INTRODUCTION
1.1   content of the problem                                                     1
1.2   statement of the problem                                                 5
1.3   purpose of the study                                                                6
1.4   research questions                                                           7
1.5   research hypothesis                                                         8
1.6   significance of the study                                                  8
1.7   scope and limitation of the study                                     9
1.8   operational definition of terms                                         10
1.9   organization of the study                                                 11
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1   Introduction                                                                     13
2.2   wage salary meaning and scope                                       13
2.2.1 wage policies                                                                   16
2.2.2 objectives of wage policy                                                 18
2.3   wage determination                                                         25
2.3.1 factors that determine wage rate                                     26
2.3.2 methods of fixings wages                                                        31
2.4   key determinants of pay                                                   34
2.4.1 internal equity                                                                        34
2.4.1.1 job analysis                                                                 35
2.4.1.2 job evaluation                                                              36
2.4.1.3 performance appraisal                                                 42
2.4.2 external competitiveness                                                46
2.4.2 wage salary surveys                                                                46
2.5   wage structure                                                                         47
2.6   wage administration                                                                54
2.6.1 importance of wage administration                                 59
2.6.2 factors influencing wage administration                         60
2.6.3 wage administration model                                             69
2.7   rewards and motivation                                                   70
2.7.1 pay and motivation                                                         73
2.8   contribution motivational theories in wage
administration                                                                 77
2.9   job satisfaction                                                                        83
2.9.1 determinants of job satisfaction                                      85
2.9.2 theories of job satisfaction                                              95
2.9.3 measuring job satisfaction                                              100
2.9.4 effects of job satisfaction on employee performance                102
2.10 the outcomes of job satisfaction                                      103


CHAPTER THREE: RESEARCH METHODOLOGY
3.1   Introduction                                                                     119
3.2   research design                                                                        119
3.3   sampling procedure                                                         121
3.4   questionnaire design                                                               122
3.5   data collection methods                                                   123
3.5.1 validity and reliability of the instrument                         124
3.6   operational measurements of variable                             124
3.7   data analysis techniques                                                         127
References
Appendix


CHAPTER ONE
CONTEXT OF THE PROBLEM
1.1   INTRODUCTION
Organizations need human resources in order to design and implement operations effectively and efficiently. A properly harnessed human resources therefore is an indispensable requirement for the attainment of organizational objectives.
However, maintenance of a viable workforce desired by any organization for a smooth running of its affairs, devoid of disruptions due to industrial crises and high labour turnover among with the attendant problems of loss pro productivity requires proper consideration of remuneration issues.
The primary purpose of wage and salary administration is to assure both management and employees of equitable compensation for services rendered. This purpose, although simply stated, is difficult to translate into a practical program for implementation.

Furthermore, wage and salary administration is not entirely an internal company matter. The design and function of the compensation plan are influenced greatly by outside forces; such as the government and labour unions.
Wage and salary administration varies, depending on the organization and the emphasis placed on the function by executive management. It is normally an integral part of the human resources department and plays an important role in the total policy making of this department. The principle responsibilities of wage and salary administration are: Rock, Milton (1984).
v    Establishing policies and procedures
v    Research new and changing concepts in this field, and;
v    Auditing the operational levels of wage salary administration to ensure adherence to policies and procedures.
Nwachukwu (2000:43) expressing his opinion on wage administration says “in an organization, money is a very sensitive issue, not only to management, but also to employees, he opined that wages and salary constitute a significant part of the total cost of operation.” To an employee, it is a way of reward for services rendered towards meeting organizational goals while to the employee; it is an element of cost that needs to be controlled in order to avoid financial distress or outright liquidation. Management experts make efforts to ensure that productivity is related to pay (wages and salary).
Oke (1989) advanced that the reward system be managed objectively in a manner that will tie reward with performance in order to make an employee justify his continued stay in the organization.
A good pay package acts like a morale booster; it assures the employee that his/her effort is appreciated. According to Nwachukwu (1997:154) “for an organization to attain its desired objective, it must seek and obtain the willing cooperation of the people who work there”.
Actually, if management will work and achieve its corporate objectives, it must develop programs and policies that will enable it obtain the best from its employee.
Nwachukwu (2000:56) noted that “one of the challenges confronting plan agents is how to make pay plan fit the needs of the recipient. Organizations, for example, attempts to pay fringe benefits according to employee levels in the organization”. He expatiated further, that before an organization establishes its wage rate it must take into consideration some important factors. Each company has to take into consideration its unique circumstance in determining its wage policy and must keep it under constant review. It would be wrong to emulate another company without first studying the extraneous factors peculiar to it.
Ahiazu (1999:218) observed that “to boost productivity the morale of workers must be boosted”. Each employee comes to work with personal aspirations, biases and preferences. To motivate workers to put in their best effort to ensure the realization of organizational goals, their personal needs must be understood and attended to.
Ahiazu (1999:219) observed that the “dissatisfaction among employees in Nigerian has been on the increase inspite of the acclaimed introduction of attractive compensation plan due to poor administration of wages by employers”. Thus, the need for a research to find out the determinants of good pay structure/rate, the administration as well as its effects on employees job satisfaction.
1.2   STATEMENT OF THE PROBLEM
The major factors responsible for the industrial unrest in organizations in general and particularly manufacturing firms is wage payment. Frequently reported are conflict between management and employees over remuneration schemes resulting in work stoppage with adverse effect on productivity. The increasing trend of such issues has become a matter of grave concern since reduced production level due to industrial action over wage demands have adverse consequence that may stimulate inflationary spirals in an economy.
Poor wage administration and its related polices in manufacturing firm have been blamed for such incessant labour strikes. Management can through its poor reward system encourage low work morale that fails to inspite workers towards improved performance (Sobowale, 1997) such workers disenchantment is highly enemical to attainment of corporate objectives. Although critics of manufacturing firms wage administration agree that it may be difficult to produce an acceptable system of wage structure, they insist that equity consideration and regulatory index are guides to establishing a harmonious structure.
In view of these, the researcher intends to find out the importance of wage administration, the determinants of good wage structure/rate, factors influencing it with a view of proffering solutions on how employees could be fairly and equitably rewarded to secure job satisfaction as well as control costs to the organization.
1.3   PURPOSE OF THE STUDY
The purpose of this study is to do empirical/analysis study of wage administration and its effect on employees’ job satisfaction in manufacturing firms in Port Harcourt metropolis. For this reason, the study is designed to achieve the following objectives:
§     To determine the effect of wage administration on employee’s job satisfaction.
§     To determine how wage administration is administered in the manufacturing firm.
§     To determine whether wage administration is effectively administered in big manufacturing firms than small manufacturing firms.
§     To identify the factors that determine wage rate “government minimum wage laws, prevailing wages as determined by union and management during contact negotiations, the company’s ability to pay, the condition of the labour market, the cost of living, and the importance attached to different jobs”.
§     To examine whether wage administration has been effectively and equitably administered among manufacturing employees (senior, middle and junior).
§     To make recommendations based on the research findings.
1.4   RESEARCH QUESTIONS
§     Does wage administration affect employees’ job satisfaction?
§     Does pay inequity affect job satisfaction?
§     What are the purposes of wage administration?
§     Is wage administration effectively administered in big manufacturing firms than small manufacturing firms?
§     Has wage administration been effectively and equitably administered among manufacturing employees?
§     How reliable is job evaluation outcomes in determining job satisfaction?
1.5   RESEARCH HYPOTHESIS
H01: There is no significant relationship between administration of wage and employees job satisfaction.
H02: Pay inequity will not significantly affect job satisfaction
H03: There is no significant relationship between administration of wage in big manufacturing firms and small manufacturing firms.
1.6   SIGNIFICANCE OF THE STUDY
This study would be of immense benefit to corporate decision makers especially those of the manufacturing firms charged with the responsibility of wage administration, as it will guide them in formulation and implementation of reward schemes. In this way, it would assist in providing a well-structured policy that would strike a balance between employers and employees expectation. These are required or sustainable growth and development in the Nigerian manufacturing firms and equally serve as a basis for validating employee job satisfaction. It is also envisaged that researchers in related fields of study will find the study worthwhile as a necessary foundation for further research work.
1.7   SCOPE AND LIMITATION OF THE STUDY
This research work will concentrate on wage administration among manufacturing firms and its effect on employee job satisfaction in Port Harcourt, Rivers State of Nigeria.
Owing to the fact that researchers in Nigeria generally, are usually faced with a number of personal and environmental problems. This researcher is no exception.
In the course of this study, the researcher may experience some problems. Chiefly among this might be the in cooperating attitude of some respondents. Consequently, a lot of scare resources will be sunk in surfing through the internet for related literature on this topic. Inspite of the aforementioned constraints for the study, this does not however, invalidate the conclusion of the study as effort must be made to ensure reasonable coverage.
1.8   OPERATIONAL DEFINITION OF TERMS
Some of the operational concepts used in the study are explained for better understanding of their contextual meaning.
 Wage
This is payment to hired labour at a stipulated rate. This definition covers work range from unskilled worker to the manager of a firm, in so far as they are hired at a stipulated rate Desgupta (1976:1).
Manufacturing Company
This refers to an organization that makes products from raw materials by use of manual labour or machinery.
Policies
These are guides to decision making and action which spells out precisely how the strategy will come to be and set up a follow-up mechanism to make sure all of its aspects are put into effect.
Remuneration
This refers to payment such as wages and salaries to persons providing services to an organization.
Job Satisfaction
This is the extent to which an employee feels positively or negatively about the various facts of job task, the work setting and the relationship with co-workers. For the purpose of this research work the terms wages and salaries are used interchangeably.
 1.9  ORGANIZATION OF THE STUDY
This study will be divided into five chapters.
Chapter one of the study technically outlines the steps to be followed in the identifying basic concepts of the study under review, as it contain the context and statement of the problem, purpose of the study, research questions, hypotheses, significance of the study, scope and limitation of the study, definition of terms.
Chapter two is a literature review, on the researches made by scholars on related field. It will be organized under relevant sub-headings.
Chapter three will explain the research methodology used for the collation of relevant data to address the identified variables of the research topic.
Chapter four, effort will be made to present and analyze the data collected.
Finally, chapter five will contain summary of the findings, conclusions and recommendations.





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