THE IMPACT OF FRINGE BENEFITS ON THE PERFORMANCE OF WORKERS IN HOTEL AND CATERING INDUSTRY (A CASE STUDY OF ZODIAC HOTEL LTD)
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THE
IMPACT OF FRINGE BENEFITS ON THE PERFORMANCE OF WORKERS IN HOTEL AND CATERING
INDUSTRY
(A CASE
STUDY OF ZODIAC HOTEL LTD)
ABSTRACT
This study examines the impact of fringe benefits
on the performance of works in Hotel and catering industry, with a view to
establishing its importance to the workers and the industry. This is
intended to assert whether or not poor fringe benefit schemes could be an
impediment to the development of the sub sector. The study is organized
in five chapters each of which deals with some specific aspect of the study.
In chapter one provides a framework for the study. It embodies what
may be regarded as the proposal for the study and therefore provided the
necessary background information, which helped to determine the structure of
the study. In chapter two deals with the review of related literature. It
provides the theoretical foundation upon which the intricacies of the subject
matter were closely knitted. In chapter three deals with the
research methodology, which involves a systematic description and analysis of
the tools and methods utilized in the research study. It also shows the different
statistical methods employed in the research analysis. In chapter four the
research data collected in the field through the research tools were presented
and analyzed. Also the hypothesis that guided data collection were
verified. A brief summary of the entire work is presented in the last chapter
together with conclusion and recommendation. The findings of the study
reveal that fringe benefits are of great importance to workers in the industry
and to the industry. And also that poor fringe benefit schemes could serve
as an impediment to the development of the sub-sector because of its
importance. The study made the recommendation that will help to remedy
the situations, to engender a smooth and faster development of the Hotel and
catering industry in Nigeria.
TABLE OF CONTENT
CHAPTER ONE
1.0
Introduction
1.1
Background
to the study
1.2
Statement
of problem
1.3
Purpose
of the study
1.4
Objective
of the study
1.5
Scope of
the study
1.6
Research
hypothesis
1.7
Significance
of the study
1.8
Limitation
of the study
1.9
Definition
of terms
Reference
CHAPTER TWO
2.0
The review of related literature
2.1 The nature
and scope of fringe benefits
2.2
Factors
for effective fringe benefit plan
2.3
Development
and administering the benefit programme
2.4
Suggested
ways of ensuring appreciation and good return on employee benefit plan
2.5
Why
fringe benefits fail to motivate workers
2.6
Reasons
for providing fringe benefit
2.7
Problem
of installing fringe benefit plans
2.8
Some
major types of fringe benefits
Reference
CHAPTER THREE
3.0
Research methodology
3.1
Research
Design
3.2
Area of
study
3.3
The date
and research technique
3.4
Population
of the study
3.5
Description
of the samples
3.6
Sample
size determination
3.7
Sampling
procedure
3.8
Statistical
technique
3.9
Questionnaire
design
3.10
Questionnaire
assumptions
3.11
Questionnaire
distribution and organisational status of respondents
Reference
CHAPTER FOUR
3.0
Presentation
analysis and interpretation of data
4.1
Demographic
characteristic of the respondents
4.2
Findings
on employees attraction and retention
4.3
Findings
on absenteeism and turnover
4.4
Findings
on employee moral
4.5
Testing
of hypothesis
CHAPTER FIVE
5.0
Summary recommendation and conclusion
5.1
Summary
5.2
Recommendations
5.3
Conclusion
5.4
Further
research needs
Bibliography
Appendix
CHAPTER
ONE
1.0
INTRODUCATION
1.1
BACKGROUND TO THE STUDY
The problem of manpower in the Hotel and catering
industry has continued to attract the ion, professional bodies and other
interested parties because of the unique nature of the industry, (Magurn,
1977). This uniqueness lies in the fact that only a few other industries have
such close relations between staff and customers. Also only a few other
industries in the economy offer so much scope to giving satisfactions to others
and for getting satisfaction from work. Yet the problem of inability to
attract retains and actuates personnel effectively in the face (shuaibu, 1979,
ifedi 1986: 3).
Because of the prevailing harsh
economic condition of our time, there is need for a good management of the
organisational resources so as to ensure greater productivity from each unit of
resource input. Of all the management resources available for the purpose
of ensuring survival and growth of the organisation, human resources stand out
as one of the most basic and critical (Drucker 1955:251). In recognition
of this, management usually devote a lot of time and commit other resources
towards attracting and retaining high personnel for the organisation and also
getting the best out of them. But the Hotel catering industry appears to
be lagging behind in this regard especially in development countries like
Nigeria (Onyia 1986:3).
Our Hotel and catering industry has frequently been
criticized in study reports for treating management. A number of workshop
or lecture have been organised in Nigeria to find a solution to the problem,
which may be acting as a hindrance to the development of the Hotel and catering
sub sector.
In view of workshop or lecture,
it was gathered that among other issues like poor salary schemes, degenerates
working conditions, poor fringe benefit scheme prevalent in the industry may
also be instrumental to the inability of the industry to actuate personnel
effectively and efficiently (Ifedi, 1986:3).
Fringe benefit have been
identified of the effective ways management may adopt for attracting retaining
and actuating personnel especially for motivating them to higher performance
(Flippo, 1980:291 Ejiofor, 1984:23). Therefore, for an organisation to
meet its aim of survival profit and growth, there is greater need to devote
more attention to the formulation of sound and good fringe benefit programme
for the organisation and as well maintain a good working condition attracting
salary and a congenial work atmosphere. The reason for this is that
majority of the workers are mainly concerned with the “bread and butter” issue.
Morse in today’s Nigeria with the prevailing economic depression and general
hardship one would see that there is not much hope for the salaried workers
considering the rising inflation which was put at 8.5% (Abacha’s 1998 budget of
transition) with its rise in the cast of living with the rise of unemployment
thereby increasing the number of month to be fed and catered for the families
of these poor workers. Most wage and salary earners now see their pay
package as a sheer mockery of the prevailing market condition.
Again, the meaning attached to the fringe benefit
programmes existing in many organisation are multifarious and this affects its
success in achieving it goals to both the employees and the
organisations. Man is a complex being managing man to increase its
productivity involves a number of variables one of which is to identify those
factors, which can incite him to contribute maximally to organisational growth
and development. Once these factors are identified and established, they
can be manipulated in a way that will enable them actuate labour effectively
and efficiently for improved performance.
The need for the development of Hotel and catering
industry in Nigeria has been on the increase in the recent times. This
arose out of the greater need to diversity the revenue base of the country
considering the persisting slide in the price of crude oil at the international
oil market (The Guardian, Nov.25 1998). The development of Hotel and
catering industry has become pertinent because it provides the fertile ground
for the growth and development of tourism industry.
Tourism as we know is the fastest growing industry
in the world today, considering the tourism potential in the country, it has
been accorded a “preferred sector” status in the national economy (Ugwu
1998:42) but tourism cannot grow without a well established Hotel and catering
industry (Adeoye 1977:11, Duru 1998:46).
Also as Nigeria continue to nurse the ambition of
hosting the world cup tournament by the year 2006, the development of
Hotel and catering industry in the country will be a boost to this
ambition. No country would be allowed to host the world youth soccer
championship if they don’t have Hotels and catering industries.
On the other hand the Nigeria workers been
persistently called upon to improve their performance so as to contribute more
to national development (Ekudayo 1988:11. Agbetuyi 1998:25). But one
would not expect much from a hungry worker. Therefore studies such as the
one undertaken hereby will help to direct the attention of those at them of
affairs to those salient factors that would need to be addressed first before
demand for better performance can be made for the workers.
1.2
STATEMENT
OF PROBLEM
Hotel and catering industry if well developed and
managed has known to complement the tourism industry there by enhancing revenue
generation for the national economy.
Meanwhile it has been discovered that the hotel and
catering industry in Nigeria has not been bracing up to expectation for some
reasons which boarder on the inability to attract, retain and actuate personnel
effectively and efficiently. (Adeoye 1977:11, Ifedi 1986:3)
Lately, it has been noted that among hotelies who
attract, retain and activate personnel play a role here, the bulk of the
problems may centre on the dissatisfaction among workers on the existing salary
and fringe benefits scheme as well as poor working condition which leads to
such vices as lateness to work, absenteeism, and in extreme cases outright
resignation. The leads to loss of customer confidence and therefore
revenue because the employee might even be around to received the customers as
at when due. Also where the employee is not on seat, the reception
accorded a customer is usually very cold and sometimes hostile. There has
also been some reported theft cases. All these continue to impede on the
desire development of the sub-sector.
It is therefore the thrust of
this research study to investigate an aspect of the problem poor fringe benefit
scheme, with the aim of establishing its effects on the performance of workers
in the industry. And also making useful, suggestion that will lead to
improved fringe benefits administration in the hotel and catering industry as a
way of engendering better performance among the workers and consequently
enhancing the viability of the sub-sector.
1.3
PURPOSE OF THE STUDY
The purpose of the study is to assess the impact of
fringe benefit on the performance of workers in the hotel and catering industry
and to established whether poor fringe benefit scheme could be an impediment to
better performance by the worker hereby hindering the growth and development of
sub-sector.
1.4
OBJECTIVE OF THE STUDY
This study examine the impact of fringe benefit on
the performance of workers in the hotels and catering firm with a view to:
i.
Identified
the fringe benefit that are operational in the industry in Nigeria.
ii.
Establishing
whether the fringe benefit are helpful attracting and retaining employee in
industry.
iii.
Establishing
whether fringe benefit affects turnover, absenteeism, level of commitment and
morale of the workers negatively, thereby acting as an impediment to better
performance by the worker and consequently inhibiting the growth and
development of the sub-sector.
1.5
SCOPE OF THE STUDY
The study was intended to cover some of the major
areas of development and administration of fringe benefit scheme with some of
its attendant problem. It has singled out the problem identified as
inhibiting the development hotel and catering industry in Nigeria for study so
as to ensure a through assessment of the situation. The entire work of
research will be concentrated on employees of all cadres in selected hotels and
catering firm in Enugu Urban.
1.6
RESEARCH HYPOTHESIS
To guide the investigation of the issue raised in
the problem definition, it is hypothesized that
1. Ho:
fringe benefit are not helpful in attracting employee to the hotel
and
catering industry
Hi:
Fringe benefits are helpful in attracting employee to the hotel and catering
industry
2.
Ho: Fringe benefits are not helpful in retaining
employee in the
hotel and
catering industry.
Hi: Fringe benefits are helpful in
retaining employee in the hotel
and
catering industry.
3.
Ho: There is no direct relationship between
fringe benefit ‘package’
and
employees level of commitment
Hi:
There is no direct relationship between fringe
benefit package and employees level of commitment.
1.7
SIGNIFICANCE OF THE STUDY
This study will assess the impact of fringe benefit
on the performance of workers in the industry as a way of establishing the
level of importance of fringe benefit to the workers and to the industry.
The study will also determine whether or not poor fringe benefit scheme
contribute to lateness, absenteeism, turnover, low moral and low level of
commitment among the workers. It will summarily conclude whether or not
fringe benefits are importance in attracting, retaining and actuating personnel
in the hotel and catering industry. All these will in a way point to what
may need to be done to facilitate faster growth and development of the
sub-sector.
1.9
DEFINITION OF TERMS
Fringe Benefits: These are additional benefits
(monetary or non-monetary) available to workers as a member of an organization
apart from the normal salary or wages and which are to the total cost of
labour. It may be legally required like maternity leave to workers
compensation, vacation etc or voluntary like recreational facilities, cafeteria
subsidies, Christmas gift, profit sharing bonus etc.
Tourism: This refers to that sector of a nations
economy, which caters for its need for recreation, relaxation, leisure, and
animator of life. It is also viewed as a temporary or short-term movement
of peoples to destinations outside the place where they live and work, as well
as activities during their stay at these destinations. In its wider
sense, it encompasses movement for all purpose including leisure, commerce cultural
exchange and relaxation.
The tourism phenomenon is a
result of man’s inherent desire to change his environment for purposes of
psychological satisfaction, as well as business exploration. Tourism is
the fastest growing industry in the world today. It preaches to change
the world from the manufacturing dominated economy to service-oriented sector.
Effectiveness: This
refers to be achievement of predetermined goals.
Efficiency: This
relates output and input, in assess how will a given output was achieved with
the minimum input.
Productivity: This is
the contribution of unit production output.
Morale: This is
the sum total of the attitude of all the workers of one group. If we can
discover the attitude of individual, we can deduce from them the overall morale
cannot be measured directly a man’s attitude may be revealed indirectly by his
verbal declarations.
Hotel: This
firm that usually provide meals to the public on a commercial basis.
Catering firm: This is
a firm that provides light meals and fast foods to the public on a commercial
basis.
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