1

ODOH, FELIX ADIMORA

PG/MSc/09/51683

THE EFFECTS OF WAGE INCENTIVES AND FRINGS BENEFITS ON THE

PRODUCTIVITY OF NIGERIA WORKERS: A STUDY OF ENUGU STATE

LOCAL GOVERNMENT SERVICE

COMMISSION. (1999-2007).

Education

A THESIS SUBMITTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION

AND LOCAL GOVERNMENT, UNIVERSITY OF NIGERIA NSUKKA CAMPUS

Webmaster’s Name

Digitally Signed by Webmaster‟s Name

DN : CN = Webmaster‟s name O= University of Nigeria, Nsukka

OU = Innovation Centre

2011

2

THE EFFECTS OF WAGE INCENTIVES AND

FRINGS BENEFITS ON THE PRODUCTIVITY

OF NIGERIA WORKERS: A STUDY OF ENUGU

STATE LOCAL GOVERNMENT SERVICE

COMMISSION. (1999-2007).

BY

ODOH, FELIX ADIMORA

PG/MSc/09/51683

DEPARTMENT OF PUBLIC ADMINISTRATION

AND LOCAL GOVERNMENT,

UNIVERSITY OF NIGERIA, NSUKKA.

JULY, 2011

3

TITLE PAGE

THE EFFECT OF WAGE INCENTIVITES AND FRINGE BENEFITS ON

THE PRODUCTIVITY OF NIGERIAN WORKERS: A STUDY OF ENUGU

STATE LOCAL GOVERNMENT SERVICE COMMISSION. (1999-2007).

BY

ODOH FELIX ADIMORA

REG. NO. PG/MSC/09/51683

A PROJECT SUBMITTED TO THE DEPARTMENT OF PUBLIC

ADMINISTRATION AND LOCAL GOVERNMENT, UNIVERSITY OF

NIGERIA, NSUKKA.

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF MASTERS OF SCIENCE (M.Sc) DEGREE IN PUBLIC

ADMINISTRATION WITH SPECIALISATION IN HUMAN RESOURCES

MANAGEMENT.

JULY, 2011.

4

APPROVAL/CERTIFICATION PAGE

This is to certify that Odoh Felix Adimora, a post graduate student of Public

Administration and Local Government, University of Nigeria, Nsukka with Reg.

No. PG/M.Sc/09/51683 has satisfactorily completed the requirements for the award

of Master of Science Degree (M.Sc) in Public Administration. (Human Resources

Management).

--------------------------------- -----------------------------------

Dr. B.A. Amujiri Prof. F.O. Onah

Supervisor Head of Department

--------------------------------- ------------------------------------

Prof. E.O. Ezeani External Examiner

Dean of Faculty

5

DEDICATION

This work is dedicated to my God and Personal Saviour, Jesus Christ for his

protection and inspiration throughout the period of this programme. Also to my

beloved wife for her encouragement and support.

6

ACKNOWLEDGMENT

With sincere appreciation and gratitude, I acknowledge the contribution of

many people towards the successful completion of this project.

First and foremost, I am grateful to my ever ready supervisor, Dr. B.A. Amujiri

for his guidance and commitment. It was indeed his close supervision and direction

that immensely contributed to the successful completion of this work.

The same quantum of gratitude is extended to my lecturers in the Department of

Public Administration and Local Government, my Head of Department, Prof. Fab.

O. Onah. Prof. F.C Okoli, Prof.R.C. Onah, Prof. C.Ogonu, Dr. (Mrs.) M.A. Obi, Dr.

(Mrs.) Uche Agu and a host of others for their invaluable knowledge and

encouragement.

My warm gratitude also goes to my wife, Mrs. Ebere Adimora and my

children- Chika, Chdozie, Chinenye, Chimaobi and Arinze for their support and

understanding.

Finally, to my colleagues in the M.Sc class who made the learning

environment conducive and accommodating.

7

ABSTRACT

This work examined the effects of wage incentives and other fringe benefits on the

productivity of Nigerian Workers. (A study of Enugu State Local Government

Service Commission, from 1999-2007). It has been observed that with proper

motivation through adequate wage system and fringe benefits in organization,

Nigerian workers‟ moral will be boosted for higher productivity.

The methodology adopted in this study is empirical approach. Data for the research

were generated from both primary and secondary source. Primary sources included

questionnaire and personal interview. In the area of secondary sources, documented

materials used include text books, journals, conference and seminar papers,

newspapers, the internet and other non-classified documents.

The major findings of this study was that irregular and inadequate wages/salaries,

low level of fringe benefits and lack of collective bargaining process brought about

low productivity of workers of Enugu State Local Government Service

Commission.

The research also found out that financial as well as non-financial reward,

promotion and conversion are strategic in the promotion of productivity in

organizations.

On the basis of the findings, the following recommendations were made; salaries

and allowances should be very regular, free education at all levels, especially

workers children, buying own houses and cars through mortgage system-partnership

with government and other financial institutions, sustainable welfare scheme and

insurance policy for workers, reward for efficiency and hard work and timely

promotion and conversion of workers.

8

TABLE OF CONTENTS.

Title Page …………………………………………………………………….i

Approval/Certificate …………………………………………………………ii

Dedication ……………………………………………………………………iii

Acknowledgment …………………………………………………………….iv

Abstract ………………………………………………………………………v

Table of Contents ……………………………………………………………vi

CHAPTER 1: INTRODUCTION

1.1 Background to the Study ……………………………………………..….1

1.2 Statement of the Problem ………………………………………….…….5

1.3 Objectives of the Study ……………………………………………….…7

1.4 Significance of the Study ………………………………………………..8

1.5 Scope and Limitations of the Study ……………………………………...9

CHAPTER 2: LITERATURE REVIEW AND METHODOLOGY.

2.1 Literature Review …………………………………………………….…12

2.1.1 Concept of Wages and Salaries …………………………………….…12

2.1.2 Concept of Fringe Benefits ……………………………………….…..17

2.1.3 Wage Determination and Collective Bargaining ……………………..22

2.1.4 Principles of Motivation and Productivity ……………………………28

2.1.5 Gap in Knowledge …………………………………………………….35

2.2 Hypotheses …………………………………………………………….36

2.3 Operationalisation of Key Concepts ……………………………….…...36

2.4 Methodology …………………………………………………………....39

9

2.4.1 Type of Study …………………………………………………………39

2.4.2 Data Gathering Instruments ……………………………………….....40

2.4.3 Validation of Instruments …………………………………………....40

2.4.4 Reliability of Instruments ………………………………………….....41

2.4.4 Population of the Study …………………………………………… ..41

2.4.5 Sample of the Study ………………………………………………....41

2.4.6 Method of Data Analysis…………………………………………….42

2.5.Theoretical Framework ……………………………………………….42

CHAPTER3:BACKGROUND INFORMATION ON THE AREA OF STUDY

3.1 Background Study on Enugu State Local Government Service

Commission

………………………………………………………………………….....47

3.2 Organogram/Structure of the Commission …………………………...53

3.3 Functions of the Commission ………………………………………...54

3.4 Funding …………………………………………………………… ...56

3.5 Fringe Benefits in the Commission ………………………………….56

3.6 Salary Structure of the Commission ……………………………… .57

3.7 Achievements of the Commission ………………………………… .58

3.8 Major Setbacks of the Commission …………………………………61

3.9 Tenureship/Memebers of the Commission …………………………..61

CHAPTER 4: DATA PRESENTATION, ANALYSIS AND FINDINGS.

10

4.1 Data Presentation …………………………………………………….63

4.2 Data Analysis ………………………………………………………...67

4.3 Discussions and Findings …………………………………………....91

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS.

5.1 Summary …………………………………………………………....97

5.2 Conclusion …………………………………………………………..98

5.3 Recommendations …………………………………………………..100

Bibliography ……………………………………………………...103

Questionnaire ……………………………………………………..108

11

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The exponents of scientific management Taylor (1911), and his followers –

maintained that the basic motive of man at work was economic. Money was seen as

a principal motivation instrument. While the motivating power of money and

material rewards could not be ignored, emphasis later shifted from economic man to

social man. (Ezeani. 2005:135). This was the outcome of the Hawthorne experiment

conducted by Elton Mayo at the Western Electric Company. The experiment drew

attention to the effects of group membership and interaction on production, attitude

and job satisfaction. The study gave rise to human relations movement which

maintained that man does not just work for money, that other personal and

interpersonal considerations, such as personal worth, recognition, friendship, social

pressures from group members and status are powerful in determining production

and level of job satisfaction. (Osuji,1985:91). In other words, it has become

increasingly clear that beyond economic needs, man has some social-psychological

needs that should be stratified in order to elicit behaviour towards increased

productivity.

While the traditional theories of management as exemplified by the Scientific

Management Movement, stress the motivating power of money and material

rewards, the classical theories take note of the latter, but, lay greater emphasis on

satisfying the psychological needs of the workers.

12

Wage incentives and fringe benefits are motivational factors. According to

Croft, (1996:46), motivation can be defined as “impulses that stem from within a

person and lead him to act in ways that will satisfy those impulses” In other words,

the concept, motivation, implies that there is some driving force within individuals,

which drives to attempt to achieve a goal or objective, in order to satisfy their need

or needs. (Croft, 1996:46). Therefore to say that managers motivate their employees

is to say that they do those things which they hope will satisfy those drives and

desires and induce the subordinates to act in a desired manner. (Koontz et al,

1983:632).

Alugbuo (1981:13) asserts that people work to get reward for their efforts.

The exchange of labour for financial rewards is the heart of pay process. People do

not put forward their best unless they get reward for their work, based on what the

current social and economic climate dictates as fair.

Ubeku (1975:301) stated that, the payment of good salaries and wages is

fundamental to the increase in the prerequisite for effective performance. In order to

motivate people to put maximum efforts, it is essential that their various needs,

especially as it concerns their wages and other fringe benefits, be satisfied as far

as practicable. In Nigeria, the salary structure falls bellow the level to maintain

efficiency of workers. The salary structure is not in line with the economic realities.

According to Papola (1970:79): “a just minimum wage to maintain not only the life

but the health and the vigour of the working people is a law of necessity and knows

no other law”.

13

The single most important obligation owed by an employer to an employee is

to pay his or her wages. Typically, wages, salaries and other related costs (pensions,

etc) make up about 60 percent of the total costs of running a major business.

Employers, therefore have more than a passing interest in this aspect of their

operations. There are other important influences on these activity-trade unions

negotiating a higher price for labour, competitors seeking to attract the best staff and

the state seeking to impose minimum standards of working conditions for all

employees (Cole, 2005:30).

A benefit is an additional compensation given to employees as a reward for

organization membership. Because of fringe benefits cost to employers, it is

important to indicate the scope and the overall costs associated with providing such

benefits to employees. According to Zolthistsch et al (1970:136), it‟s all financial

and non-financial payments to employees that are over and above the agreed upon

basic salary rate due to the employee for the minimum result expected on the job.

Armstrong etal (1970:36) also said that “fringe benefits when combined with the

basic pay of an individual forms that total remuneration which is the entire package

of pay and benefits received by each employee, their value to an individual in more

accurate basis for comparison with outside market rates than straight salary”.

According to Sunken (2008:20) “Motivation and productivity are twin

concepts in organizational development. First, motivation works as the means

toward attaining productivity as an end, secondly, motivation is the best cause to

reach productivity as favourable effects and lastly, motivation is the stimulus to

14

trigger productivity as a response”. People need motivation just as pieces of

equipment need fuel and operators. This is highly demanded to ensure that they are

always at their optimum working condition. In turn, this will absolutely lead to

optimum productivity. (Sunken, 2008:20).

The necessity for managers and administrators to motivate their employees

cannot be over-emphasized. There is no doubt that the ability of any organized

enterprise and, indeed any group, to achieve its goals depends to a large extent on

the motivation of its employees. Indeed no manager or administrator can succeed in

achieving optimal productivity for his or her enterprise without knowing what

motivates the people. (Ezeani 2005:136). As Koontz et al (1983:631) pointed out,

all those who are responsible for the management of any organization most build

into the entire system factors that will induce people to contribute as effectively and

efficiently as possible. A manager does this by building into every possible aspect

of the organizational climate those things which will cause people to act in desired

ways”. According to Onah (2008:279), employee motivation represents one of the

largest competitive reserves and a key element for increasing competitive advantage

of any organization. Motivation is a central force and a strong factor in employee

performance equation. It is a set of force that leads people to act in particular ways.

Motivation represents the forces within a person that affect his or her direction,

intensity, and persistence of voluntary behaviour. (Moorhead and Griffin, 1995:78).

According to Pinder, (1984), direction refers to the fact that motivation is goal-

oriented, not random. People are motivated to arrive to work on time, finish a

15

project a few hours early, or aim for many other targets. Intensity is the amount of

efforts allocated to the goal. For example two employees may be motivated to finish

their job a few hours early (direction), but only one of them puts forth enough effort

(intensity) to achieve this goal. Motivation also involves varying levels of

persistence, which is continuing the efforts for certain amount of time. Moorhead

and Griffin (1995) further assert that the starting point in a motivational process is a

need. Motivated behaviour usually begins when an individual experiences a

deficiency in one or more important needs.

When a worker believes that equity does not prevail; he is bound to withhold a

measure of his productivity in order to restore equity. To encourage higher

productivity, it is essential that a system of reward be designed that attempts to

relate hard-work to reward.

1.2 STATEMENT OF THE PROBLEM.

Currently, the poor performance, lack of dedication and commitment of workers

have been a matter of concern and debate among government officials, private

organization and the general public. How to improve the productivity of employees

has been the topic of many seminars, symposia and conferences. The reasons for

this trend, as well as appropriate avenue for the apportionment of blame, have

formed the basis for the controversy. Many reforms in the public service such as

work ethics, transparency, dedication and commitment to duties are some of the

ways of trying to improve productivity of workers in the country.

16

According to Nwachukwu, (1988:29) Nigerian people have always come with

the impression that generally, Nigerian workers are lazy, sleepy, reluctant to act,

unconcerned and deceitful in their approach. These workers are said to lack the

zeal, the briskness and the momentum of hardworking people and generally, they

dislike hearing anybody talk about efficiency, dedication, competence,

determination and productivity, of which characterize people in a

production oriented society. In production oriented societies, the employers do

every thing humanly possible to retain their workforce and also recruit high quality

staff. The employers strive to boost the morals of their employees with a view to

eliciting positive attitude towards work, while the workers respond by fashioning

ways of making their organizations successful. In Nigeria, there is inadequate

stimulus to attract such responses, so the workers are still performing below

average, moral still down and efficiency still nil.

The problem of this study therefore, focuses on the low productivity in Enugu

State Local Government Service Commission, in the face of irregular and

inadequate salaries and other fringe benefits, between 1999 and 2007. The

problem can best be described with some pertinent questions.

1. Does the issue of irregular salaries/wages persists in Enugu State local

government service commission?

2. Does the issue of inadequate salaries/wage persists in Enugu State local

government service commission?

17

3. Are the levels of fringe benefits in Enugu state local government service

commission affect the moral of workers?

4. What can be done to enhance workers productivity in the commission?

5. Are the salaries and other fringe benefits determined by collective bargaining;

the trade union and the management in the commission?

6. What type of incentives and fringe benefits (financial/non-financial) boost the

morale of workers of Enugu state local government service commission?

1.3 OBJECTIVES OF THE STUDY

The broad objective of the study is to find out the effects of wage incentives

and fringe benefits on the productivity of Nigerian workers: a study of Enugu state

local government service commission (1999-2007).

The specific objectives are:

1. Identify why the issue of irregular salaries/wages persists in organizations

especially in Enugu state local government service commission.

2. Identify why the issue of inadequate salaries/wages persists in

organizations especially in Enugu state local government service

commission.

3. Find out if the level of fringe benefits paid to workers in the commission

affect the morale of workers.

4. To find out the type of incentives that motivates the workers in the

commission and also the relationship between these incentives and

worker‟s productivity.

18

5. Find out whether wages and other fringe benefits are determined by

collective bargaining.

6. To find out the whether financial or non-financial incentives boost the

morale of the workers.

1.3 SIGNIFICANCE OF THE STUDY

Productivity improvement is significant because it has a bearing on the standard

of living, the wages the employees can earn and the profit the organization can

make. Productivity affects costs, prices, output, employments, and investments and

thus plays a part in business fluctuation and in the rise and decline of industries.

Understanding the effects of wage incentives and fringe benefits on productivity in

the context of any organization helps in improving its efficiency and effectiveness.

Therefore in order to achieve high productivity, those who are instrumental to the

high level of productivity must be taken care of, their needs and welfare should be

paid adequately and promptly. The employees should have their own share of the

productivity dividends. Many researches have been conducted on the above subject

matter on both private and public organizations but none has focused on Enugu state

local government service commission. This study however, seeks to fill that

vacuum, especially considering the fact that even though there are basic

organizational principles, their applicability vary from one organization to another.

This work is expected to make some meaningful impact when applied to job

situations in Enugu state local government service commission and many other

organizations having similar problems. The research will equally discuss the means

19

through which wage incentives and fringe benefits can be used as practical

measures to improve productivity. It will serve as a practical operating guide for

those who wish to introduce productivity improvement techniques through incentive

systems in their organizations.

Empirically, the research will serve as a blue print for organizational personnel

who are experiencing decline in productivity and the method to prevent future

occurrences. It will be of great help at any organizational level and to those who are

responsible for the management of a work place-the executives, managers,

supervisors, public administrators, government officials and other human resource

managers.

Finally, it will serve as a theoretical base and also add to the existing body of

knowledge on the effects of wage incentives and fringe benefits on productivity. It

will serve as a resource material in business schools, management programmes,

training sessions, development seminars and conferences on how best to motivate

workers and improve productivity.

1.5 SCOPE AND LIMITATIONS OF THE STUDY

The research work will analyze the activities of Enugu state local government

service commission in relation to wage incentives and fringe benefits given to the

workers of the commission. It has not been possible to generalize all the operational

areas of the activities of the commission but to limit the boundary of the study to the

policies regarding wage incentives and fringe benefits as it affects the seventeen

local government areas of Enugu state.

20

The study will therefore concentrate on the effects of wage incentives and

other fringe benefits on the productivity of workers of Enugu state local government

service commission between 1999 and 2007.

This work has some limiting factors; there is no standard library in the

commission to source information on the establishment, policies and overall

programmes and activities of the commission. Secondly, there is no database from

where other vital information about the commission can be assessed. Some

difficulties were also encountered since we are using survey research whose

information is dependent on opinions, attitudes, values and preferences of the

people. The possibilities of biased answers may not be completely ruled out because

the respondents could be apprehensive that their responses could negatively affect

their job security.

Further more, the resentment by some public officers who are also

apprehensive in making vital information available to the researcher on the excuse

that information has been classified as “secret”.

These limitations were surmounted by visiting some local government

headquarters where I was able to collect useful information and document on the

administration, functions, and achievements, regulatory and supervisory roles of the

local government service commission in Enugu state. I also collected a letter from

the head of department, public administration and local government, University of

Nigeria, Nsukka, ensuring the commission that my research is merely an academic

exercise and the information collected will be treated with utmost secrecy.

21

22

CHAPTER TWO

LITERATURE REVIEW AND METHODOLOGY.

2.1 LITERATURE REVIEW.

2.1.1 Concept of wages and salaries

2.1.2 Concept of fringe benefits

2.1.3 Wage determination and collective bargaining

2.1.4 Principles of motivation and productivity

2.1.5 Gap in knowledge

2.1.1 CONCEPT OF WAGES AND SALARIES

According to Shubin (1980:63), wages are the total earning a worker receives

for the performance of services within a period of time. That they are equal to the

product of an hourly rate, times the number of pieces plus houses, premiums and

fringe benefits. Thus a rate of pay may be based on time output or guaranteed

hourly rate plus a bonus ordinarily based on the amount of extra work put beyond

the standard required. Rosenberg (1978:214) also defined “wage as a stated sum per

price, hour, day or any other unit or period”.

Kiebel, (1983:50), was of the opinion that low productivity seen in the

country was as a result of poor wage administration. Workers are paid without

considering their needs which include feeding, housing, clothing and other higher

needs. Because of the poor wages they earn they are forced to eat low

quality food which tend to reduce their productivity level. Moreover, he asserted

that workers are not happy on their jobs after the end of each month. Employers, he

23

further stated, tend to credit jobs done well by employees without providing workers

with good working conditions and incentives. These reduce the productivity level of

workers and consequently decreased the Gross National Product.

Alugbuo (1980:6) also wrote that, wage and incentive that workers receive

from his organization is significant to him or her in three major ways: economic,

psychological growth and motivation. The economic importance of wage and

incentives is most obvious because it serves as a way of obtaining the necessities

and luxuries people need and want. Many workers do not have sources of income

besides their pay; therefore employment in organization is the way to obtain the

material necessities of life which can be expected for such items as food, rent,

clothes and countless other good and services.

Beach (1980:69) in his writing believes that, wages are important for what

they symbolize. For some wages symbolize security, for other it represents success.

Increase in reward may permit one to join many clubs and associations. If the boss

or organization grants one a sizeable pay increase, this will show the subordinates

that the boss likes him and approves of his performance. He sees

the change in compensation as recognition of efforts, and he may drive a sense of

achievement from his work. On the other hand, the absence of adequate incentives

may cause discouragement, dissatisfaction and low morale at work.

According to Ejimofor (1982:31), Herzberg has postulated that if the people

are paid a wage they perceive as fair, paying them more will not increase

productivity. Unfortunately, the acquisition of more wealth is a form of self

24

actualization for most Nigerian workers and many others allover the world. For

those people money can be used to satisfy the basic psychological and security

needs. It can also help nto satisfy some of the egoistic needs, as it has become a

status symbol indicating a culmination of other successes in life.

Nwachukwu (1988:190) believes that there are many bases for motivation,

job security, emotional security, respect, social acceptance, power, achievement and

son on. He contends that money was erroneously viewed as prime motivator in the

past; money was downgraded as a motivator but did not eliminate it. At times

financial incentives are more important to individuals. At other times financial

incentives occupy the spotlight. For example, a young man who is raising a family

and who just entered industry, the need for money to pay off home mortgage, for the

material of his family, and later for education of his children, may be very pressing.

Yet, at other times in his life, the goal of recognition and status achievement may be

most important. The value of financial reward is determined by what people have

learnt to associate it with.

When pay is tied as a yardstick for performance, money is an important

motivator. When it is not so tied, it does not motivate and satisfaction is low,

turnover and absenteeism high. Thus, a fair wage and salary policy and consistent

internal wage and salary relationships are vital to the achievement of individual and

group effort in any organization.

In our culture, the role of money as a primary motivator has not been

systematically documented. Writing on the importance of money as incentive in

25

Nigerian context, Anikpo (1980:15), argues that the Nigerian worker is so

intimidated and mesmerized by the money hegemony that his primary needs

become money and what money can buy. Okpara (1982:39) observed that no

amount of money can be too much for a Nigerian worker. Thus our system is based

on the values and the behavioural pattern of developed market economies and

anchored in the industrial base of the countries. This is apparent in our consumption

patterns which do not reflect the needs and absolute poverty of our developing

economy. Under the condition of very scarce resources, the emulation of the socio-

cultural system and especially the consumption pattern of the rich development

countries mean first of all that provision for basic food

stuffs, health services, clothing, housing, drinking water, education and

transportation system and the like are neglected. (Okpara, 1982:30).

Okpara further stated that, the provision of these basic amenities would

reduce the emphasis on financial incentives and not money as a motivator. He

observed that most of our civil servants are seen buying with their salary, things that

has no provision for, example water allowance, that it was only recently that

provision for transport allowance was made. Hitherto, transport to and from work

was paid from the workers yearly income or salary.

Onwumere (1982:31) posit that money is a reducer of anxiety, since the

extended family commitments of many people make them anxious about their

financial involvement and obligations. The implication is that, if financial reward

of the worker increase, their performance will improve, because this increase will

26

take care of their needs. Looking at the country today, and its level of development,

one would conclude that Nigerian people including the management and the work

force are still in the first level of human need hierarchy, struggling to satisfy the

basic needs-shelter, food, safety etc. since money is the quikest means of satisfying

these needs, almost every Nigerian today is ruled by a rapacious and inordinate

quest for money at all cost.(Eze,1982:5). The employers should recognize these

needs and increase the financial incentives to workers, in order to improve their

performance.

Schultz (1978:285) is for the opinion that, at the executive level, there is

evidence that salary may be more than at lower working levels. That even though a

higher salary at the executive level may not mean much difference in take-home pay

(because of higher taxes), most executives seems motivated to gain the extra

material possessions it will buy, but because it signifies accomplishment and

achievement in ones work.

Ocho (1982:16) stated that organization theories developed in Europe and

American to explain organization behaviour in Europe-American cultures can never

substitute for concepts for understanding of our organizational behaviour and

attitudes. Nigerian scholars believes that Nigerian workers respond to monetary

incentives more than other physiological and higher order needs as prescribed by

the orthodox western theories.

27

2.1.2 CONCEPT OF FRINGE BENEFITS

The origin of fringe benefits in industries dates back to the 19th

century, the

time of Robert Owen (1800-1825). Owen improved the working conditions in his

factory, provided meals for employees in his factory and build houses for them. Few

fringe benefits which are very common today started in the 25 years of that century.

In 1886, the waiting house cooperation was the first to grant paid vacation to its

workers. (Zolthitsch, 1970:243).

According to Zolthitsch, after the 19th century, the rate at which the new

benefits were granted increased. In 1908, the workmen‟s compensation law for

federal government employee in American enacted. In 1911, Wisconsin enacted the

first state workmen‟s compensation law that was ruled to be constitutional by the

courts. Some companies offered pension and sick benefits to their employees as

many employers recognized that their employees should have desirable place to

work as well as some degree of job security and therefore provide various type of

fringe benefits on a more or less informed basis.

Benefits and services represent a tangible gain to employees in form of

monetary or non-monetary rewards. Over the years, diverse fringe benefits have

been introduced without the management realizing their cost of the organization‟s

finance. It is on this issue of cost that Ubeku categorically stated that every manager

should know that once a benefit has been given to an employee, it would be difficult

to remove it even if an offer of purchase of those fringe benefits is made. Ubeku

noted that fringe benefits have grown in the country today as a result of the

28

economic situation, while others have grown up either as a result of pressure from

the unions or from sheer initiation. Hence, Nzelibe (1991:27) in relation to the study

confirmed that Nigerian government offer many types of benefits which are

competitive and imitative in nature. She listed some Flippo‟s most frequently cited

advantage of offering employees sservices which include effective recruitment,

improved morale and loyalty, good public relations etc.

Employee remuneration is not just about pay, i.e wages and salaries. It is also

concerned with non-pay benefit, and sometimes as fringe benefits-in-kind. These

non-pay benefits are usually known as employee benefits, and sometimes as fringe

benefits or perks. Benefits are usually provided as a package of items, for example

pensions, subsidized meals, discounts on company products and the like. Such

benefits vary in importance to the individual. An older employee will value a

pension scheme much higher than young employee. Subsidized meals appeal more

to some employees than others who perhaps prefer luncheon vouchers. All

employees would probably welcome the opportunity of having a company car

(Core, 2005:38)

Fringe benefits have been accepted to have an important place in boosting

workers effectiveness and therefore are of value to the employer. Fringe benefit

stem from the theory of motivation. Motivation has been defined by many scholars

of management, for instance, Duncan (1978:74), defined it as concerned with how

behaviour is activated, maintained, directed and stopped. From managerial

perspective, we can rightly say that motivation relates to any conscious attempt on

29

the part of a person or group to influence the direction and rate of behaviour towards

the accomplishment of organizational goals. Glupeck, (1980:234), stated that

motivation explains why some people work hard and are well paid while others

perform poorly. He came with three critical factors that effect individual motivation

and they are: (i) individual needs, (ii) the nature of the job, (iii) the work

environment.

According to Beach (1972:213) employee benefits and services may be

classified into four; each category is in turn divided into principal kinds of benefits

and services commonly found in work organization. They are as follows:

(a) Employee security ( financial protection against risk).

1. Legally required employer contributions: old age, supervisor, disability, and

health insurance, unemployment insurance, workers compensation, state disability,

railroad unemployment.

2. Pensions

3. Life Insurance

4. Hospitalization

5. Medical and Surgical

6. Paid sick leave

7. Supplemental unemployment

8. Accident Insurance

9. Contribution to saving plans.

(b) Pay for time not worked

30

1. Holiday pay

2. Vacation pay

3. Paid leave for personal business

4. Military service

5. Voting time pay

(c) Social and recreational programmes such as parties, pennies, athletics facilities,

clubs and dances were financed wholly or partly by the employer.

2. Special aids and services such as saving plans, credit unions, loan funds, and

scholarship for employees and families, company purchasing service, medical

sickness for minor sickness, subsidy for food service, discount on purchase of

company, discount on purchase of company products, employee newspaper etc.

(d) Bonuses and Awards (not related directly to employee output).

1. Profit sharing bonus

2. Christmas bonus

3.Anniversary Awards

Many people believe that increasing fringe benefits, or benefits that are not

mandated, established loyalty and boosts production among employees. Some argue

that these beliefs are incorrect, but many others support them. It would be difficult

to examine the effects of all possible fringe, but looking at a few can give employers

a sense of how employee productivity might be increased by offering fringe

benefits.

31

Some countries offer free healthcare, but in other countries, people need to

buy insurance. Offering health insurances is a fringe benefit, and the quality of it

could be directly tied to employee productivity. In general, sick employees are not

productive employees, and any insurance offered to workers should be affordable

and offer reasonable amounts of coverage. Coverage should extend to family, as

worker productivity may also be affected if family members get ill. When

employees have affordable healthcare for themselves or family when needed,

workers productivity can increase due to better physical health and as a result of

company loyalty for receiving this benefit.

Another health-related fringe tied to greater employee productivity is access

to health club membership or to onsite workout facilities. This and other wellness

benefits can have a positive effect. There can be direct correlation between physical

health and ability to work harder. Access to health

clubs, nutritionist, weight loss programs and the like may all lead to healthier

employees with more energy to work.

Certainly, employee productivity can increase with fringe benefits that are

profit oriented. Sharing shares of stock or part of the profit in a company

communicates to employees that the company rises or fall by their efforts. This is

not always the case, as profits gained can be relatively small. Other benefits that

might prove more motivating are employee incentive programmes, set up so that

each employee has opportunity to earn incentive, like extra vacation days, gift

certificates, bonuses etc, if they boost personal productivity.

32

Some fringe benefits are only available to executive employees, which may

motivate these employees to work harder but may also alienate lower level

employees of a company. Things like access to vacation condos, use of private jets

or company credit cards are generally attractive to executives. If no benefits of this

kind, or even scaled down benefits are offered to others, it can foment discord.

Companies should make sure to offer benefits at all levels, instead of just at the top,

to keep employee productivity highest.

As great as fringe benefit may be when it comes to increasing employee

productivity, they aren‟t too helpful under bad working conditions. Employees

deserve basic rights, like being treated with respect by supervisors and being

paid fairly for their work. All the benefits in the world may not make up for

consistently poor management skills or under-market pay. (Posti 2005:11)

2.1.3 WAGE DETERMINATION AND COLLECTIVE BARGAINING

Collective bargaining is the machinery for discussion and negotiation,

whether formal or informal, between employers and workers representatives, aimed

at reaching mutual agreement or understanding on general employment relationship

between the employees and the workers. The conclusion of an agreement is not a

necessary determinant of collective bargaining. Thus, the labour act of 1974 defines

it as “the process of arriving at, or attempting to arrive at, a collective agreement.

The aims are to accommodate, reconcile, and oftentimes compromise the conflicting

interests of parties. Collective bargaining is therefore a cushion to this conflict of

33

interest and while it does not remove conflict, it facilitates its resolution, to enable

the two sides to work together harmoniously.

Collective bargaining is standard setting machinery, which constitutes an

important source of regulating governing wages, salaries and other employment

conditions mutually agreed between labour and management and in conformity with

public policy. In several work situations, collective bargaining has become, so to

speak, the guiding principle of labour relations. It is a method through which the

wage rates and other employment conditions are determined. It also

establishes a set of rules guiding relations between the parties during the life of

collective agreement, as well as providing for an orderly method of settling

grievances that are bound to occur from time to time. (Dunlop, 1949:29-34).

These three basic functions of the collective bargaining process are the

foundation of industrial democracy. Other methods of employment regulation, such

as paternalism, employer unilateral regulation or wage commission, can hardly be

conceived as laying the basis for industrial democracy. As Hodgson (1973:7)

stated, “Infact, when we look at my substitute for collective bargaining, we are apt

to come against insuperable problems. It may well be that we must conclude that we

must conclude that collective bargaining may be like democracy itself”. As

Damachi (1986:17) has argued, in the Nigerian case, collective bargaining is the

only viable form of worker participation in decision making in the foreseeable

future. It subsists, therefore, as a government-subscribe to, but only if all sides-

labour, management and government – subscribe to, and believe in democratic

34

principles in the workplace as an extension of political democracy in the larger

society.

According to Yesufu (1962:33-38), the earlier evidence of joint negotiation or

consultation in the country was in 1937 when the colonial government established

the provincial wage committees throughout the country. The function of these

committees was to undertake periodic wage reviews for

daily paid employees in the public service. Until 1942, the committee was

composed exclusively of government officials and wage determination was

therefore unilateral. However, perhaps because of growing agitation and

dissatisfaction among workers, the committees were expanded to include worker‟s

representative. This could be regarded as the beginning of collective bargaining in

Nigeria, although the provincial wage committee was advisory in nature. Moreover,

they were used as political instruments of the contending political parties of the

period.

However, following the general strike of 1945 and the growing

disenchantment of trade unions, it became clear that the provincial wage committees

were grossly inadequate in meeting the aspirations of workers. Specifically, the

committees were for use by daily paid workers who represented only a small portion

of the total workforce in the public service. In the case of established staff, there

was no specific machinery for biparthe wage determination. For these reasons, the

whitely council system, which had been in use in the United Kingdom, was

introduced in Nigeria in 1948. The recommendations for its introduction were

35

contained in two reports by Mr. T.M. Cowan, of the British ministry of labour and

National service. (Fashoyin, 2005:105).

Basically, there were the councils catering for senior, junior and industrial

(technical) employees respectively. Each council functioned as a negotiating as well

as dispute-setting machinery in the public service. Whitelyism was structurally

different from the traditional bargaining machinery in that it was an-all embracing

machinery covering federal, state and sometimes local government employees.

The whitey system failed in many government establishments after barely a

year of existence. There were several reasons for this. First, instead of serving as

bargaining machinery, they were used as consultative bodies. Second, there were

problems of representation on sides, indecision, red-tapism and lack of government

support. Third, they were rendered useless because decisions on wages and

conditions of employment were generally made by semi-political wage

commissions, particularly for public employees. In view of the failure of the whitely

system, the Udoji commission of 1974 undertook a restructure of the machinery and

recommended three National Public Service Negotiating Councils which were to

concern themselves with the matters relating to wages, arbitration and centralization

of the machinery for negotiation. (Public Service Review Commission: 1981 and

many others that came afterwards).

In the private sector, collective bargaining developed later. By 1947, for

example, the department of labour reported that efforts are being made to establish

in every trade and industry a reliable means of constant contact between employers

36

and the trade unions …. As progress is made in the amalgamation of unions into

trade and industrial groups, it is hoped the establishment of a Joint Negotiating

Machinery, on the lines of those adopted in more advanced countries, will be found

in Nigeria before long.

Over the years, collective bargaining has acquired greater significance in the

private sector in response to several internal and external forces. Internal forces

derive from the tendency of management to foist unilateral decisions on workers

and have increased the awareness among workers of the benefits of collective action

for improving their working conditions. External forces derive mainly from public

policy which enhances the organizational capabilities of both sides to engage in

bargaining. As a result of these, a phenomenal increase has been witnessed since the

late 1970s. (Fashoyin, 1982:26-27). Imoisili (1984:374) showed that between 1979

and 1981, the various industrial unions and employer‟s associations concluded no

fewer that 17 multi-employer collective agreements.

According to Pigors and Myers (1984:357), if the general level of wages and

salaries in the organization is too low in relation to other comparable firms,

management will find it difficult to attract qualified employees. This is especially

true of those in short supply, such as technical, professional and managerial

personnel.

Recruitment is not the only phase of personnel programmes in which wage

and salaries are important. A good promotion policy requires that earnings on each

job be related to the worth of the job, so that promotions will bring an increase in

37

pay as well as in status. Furthermore, establishment of these sound internal wage

and salary relationships is necessary to avoid the dissatisfactions that would other

wise develop over inequities between similar jobs. Finally method of wage payment

and particularly the manner in which a wage plan is handed also affect the ability of

management to get effective results with people on those types of jobs. These are all

interrelated parts of a personnel policy system. (Pigors and Mters. 1984:356-357).

Pigors and Myers also affirmed that the wages and salaries in some

organization, e.g the federal government, are established by law and the civil

service regulations. But other organizations, including profit making, as well as

non-profit organizations, may have more flexibility in deciding what level of wages

and salaries they can pay. The decision even for the federal government is affected

by (1) the quality of the employees the organization needs for effective operation,

(2) the competition of other organization for employees of

this quality, and (3) the ability of the organization to pay levels of wages and

salaries that will attract and hold the people it needs. This last point influenced by

the financial condition of the firm or organization, including budget limitations on

governmental and non-profit organizations. Government, through minimum wage

laws, places a lower limit on wage levels that can legally be paid.

Changes in the level of wages and salaries are influenced by some of the

same external forces, e.g. what other firms and organization are doing to meet

competition in the job market, or ability of the organization to pay for the changes

in order to maintain the same quality of recruits. Other factors are also important,

38

since employee satisfaction and dissatisfaction with existing levels are importantly

affected by wage and salary changes made by comparable organizations or in

comparable jobs and occupations and changes in the level in the economy are also

affected by the pressure of labour organizations through collective bargaining and

by the tightness or looseness of the labour market generally, and for particular

occupational groups. The spread of collective bargaining has accentuated these

external comparisons. And as we know, non-union firms look over their shoulders

to see what unions are getting through collective bargaining in comparable firms,

organizations, occupations and localities. (Shultz, 1951).

2.1.4 PRINCIPLES OF MOTIVATION AND PRODUCTIVITY

In an attempt to answer the question on motivation, Giliner & Deci (1977),

said that people do things in an attempt to satisfy their needs or to make themselves

feel better. They believe that feeling of competence, self determination and control

of oneself by way of doing a challenging work which requires resourcefulness and

creativity are inherent in man. In effect, the crave for achievement, power and self-

actualization gives man a sense of pride and so man always strives to be successful.

Motivation as a concept has a role to play in improving employee

performance through job satisfaction; in other words, motivation involves the art of

creation and maintenance of enabling environment for the performance of

individuals working together as a group towards accomplishing stated and common

objectives. This implies that human motives are based on needs which could be

39

primary (food, shelter & clothing) or secondary (self-esteem, status etc) it is for this

reason that managers are expected to know what motivates people (Obayi, 1998).

Koontz & Weirch (1980) noted that motivation is a general term applying to the

entire class of desires, needs and wishes. It was discovered that motivation

depends more on internal or psychological incentives than on fear or regards. In

other words, motivation is a process of creating organizational conditions that will

cause employee to strive for greater performance. Aligning his thought with the

foregoing, Carter (1992) opined that motivation is the practical art of applying

incentives and arousing for the purpose of causing an individual to perform in a

desired way.

To Ifechukwu (1977) in Obayi (1987). Motivation is the driving force that

stimulated an individual to action. (Hoy and Miskel. 1987) viewing motivation from

the same perspectives tagged it the complex forces, drives, needs, tension states or

other mechanisms that start and maintain voluntary activity directed toward the

achievement of personal goals. It is against this background that, motivation and

higher productivity was not necessarily achieved by position, financial incentives or

improved physical condition, but that management should among other things seek

the views of workers on matters that concern them and the organization. This

implies that the management‟s task should not only be to manipulate employee to

accept management‟s authority, but to set up condition that will enable the

employees to meet their own goals while meeting the organization goals. Simply

put, Elton‟‟s contention is that there should be fusion of goals and objectives;

40

management should diffuse the objectives/goals of the employees into that of the

organization and propel the employees towards attaining both in a common core. As

noted earlier, human needs stand out prominently in the field of workers motivation.

Another renowned writer on motivation, Fredrick Herzeberg found out from a

survey carried out on 200 accountants that employees tend to explain satisfying

experiences in term of factors that were intrinsic to the content of the job itself,

these factors, Herzeberg called motivators and these include achievement,

recognition, advancement, etc. in the same vein, Okpala (1990) in Asogwa (1994),

believe that the greatest and most efficient production occurs when management:

1) Gives the worker a definite task to perform in a definite time and in a definite

manner.

2) Selects the right worker for a particular task and trains him for that.

3) Motivate the workers to a higher level of performance by incentive methods of

payment.

The link between motivation and satisfaction indicates that motivation gives

job satisfaction and so leads to increased productivity. It is very glaring that

whenever there is higher productivity, workers efforts were recognized by the

management in terms of promotion and compensation. In other words, if a worker

sees productivity as a yardstick to the achievement of his goals, he must be a higher

producer and vice-versa.

There are basically two ways to motivate a person. One is through material

satisfaction, by providing tangible rewards. Another is through non-material

41

satisfaction by providing intangible rewards. A balanced mix of motivational tools

is significant to serve its purpose. That is to satisfy the ideal that motivation increase

productivity.

We have Extrinsic and Intrinsic motivation: Extrinsic motivation is

commonly practiced by most organization to boost performance. It involves the

provision of an attractive compensation and benefits package. This includes salary,

health, personal insurance, and bonuses. There are also performance credits given in

the form of a quarterly bonus, performance bonuses, gift checks, paid vacation, etc.

Intrinsic motivation is simple and practical. It is an advisable practice to bring

out the best in every employee. It can be through providing effective system for

promotion, training and development, and recognition. The act of praising

employees for a job well done is one way to do so. These are priceless tools to

motivate them because are more motivated if what they are doing interest them.

This is much more beneficial if the tasks delegated to the employee coincide with

his interests.

Work motivation refers to the forces within a person that effect his or her

direction, intensity, persistence of voluntary behaviour in the workplace. Companies

need to rethink their motivational practice because of an increasingly diverse

workforce, turbulent change in employment relationship and flatter organizational

structure that requires less reliance on direct supervision to control employee

behaviour.

42

Content motivation theories of motivation described the processes through

which needs are translated into behaviour. Reinforcement theory explains behaviour

changed by suggesting that behaviours with positive consequences tends not to be

repeated.

According to Maslow‟s needs hierarchy, the lowest needs are initially most

important, but higher needs become more important as the lower ones are satisfied.

Alder‟s ERG theory is a content motivation theory that groups human needs into a

hierarchy of three broad categories: existence, relatedness, and growth. Herzberg‟s

motivator-hygiene theory suggests that people are only motivated by characteristics

of the work itself. McClelland studied need for achievement, need for power,and

need for affilliation.these needs are learned rather than instinctive, and more than

one need may motivate a person at the same time.

Expectancy theory states that work effort is determined by the perception that

effort will result in a particular level of performance (E-P expectancy), the

perception that a specific behaviour or performance level will lead to specific

outcome (P-O expectancy), and the valence that the person feels for those outcomes.

The E-P expectancy increase by improving the employee‟s abilityand

confidence to perform the job. The P-O expectancy increase by measuring

performance accurately, distributing higher rewards to better performers,and

showing employees that rewards are performance based. Outcome valences increase

by finding out what employees want and using these resources as rewards.

43

Equity theory explains how people develop perceptions of fairness in the

distribution and exchange of resources. The model includes four elements:

outcome/input ratio, comparison order, equity evaluation, and consequences of

inequity. The theory also explains what people are motivated to do when they feel

inequitably treated.

Motivation of employees becomes very essential when it is realized that

although people work in an organized enterprise or participate in all kinds of groups

in order to achieve some desired goals that they cannot attain as individuals, this

does not imply that they will necessary put in maximum efforts to ensure that these

goals are accomplished. Barnard (1938:84) rightly observes:

If all those who may be considered potential

contributors to an organization are arranged in

order of willingness to serve it, the scale gradually

descends from possible intense willingness through

neutral or zero willingness to intense willingness

or opposition or hatred. The preponderance of

persons in a modern society always lies on the

negative side with reference to any existing or

potential organization.

This startling observation points to the need for managers and administrators

to create and maintain an environment that will elicit maximum productivity from

employees.

44

It is worthy of note that effective motivation depends on organizational

climate. According to Koontz et al (1983:654), “What people are willing to strive

for is also dulled or sharpened by the organizational climate in which they operate.

At times, a climate may repress motives; at other it may arouse them”. This point

was clearly illustrated by the research of Litwin and Stringer (1968) who on the

basis of McClelland‟s (1961) need for achievement, need-for-affiliation, and need-

for-power as major types of motivation, found that the strength of these motives was

affected by organizational climate.

Equally important, is the recognition of the fact that motivation must be based

on situations. Again, Koontz et al (1983:657) maintain that “what a manager does to

induce individual efforts towards the accomplishment of enterprise objectives must

clearly take into accountthe differences between individuals, groups, times and

organization climate.”

Goal-setting is the process of motivating employees and clarifying their role

perceptions by establishing benchmarks against which growth needs are fulfilled.

Goals are more effectives when they are specific, results oriented, challenging,

accepted by the employee, and accompanied by meaningful feedback. Participative

goal setting is important in some situations. Goal setting is usually less effective

when tied to financial rewards and when applied to new or complex tasks.

In summary, managers especially human resources in every organization,

must respond to the motivation of individuals or employees, if they are to create an

environment in which employees will perform optimally.

45

2.1.5 GAP IN KNOWLEDGE.

The literature reviewed is on the effects of wage incentives and fringe

benefits on the productivity of workers in organizations. We have observed the

relationships which exist between the various opinions of different authors on the

subject matter. The relationships emphasized the need for employers to strive to

provide adequate conditions of service to their employees in terms of providing both

their physiological and psychological needs. These will definitely motivate the

workers to put more efforts for the success of the organizations. The cumulative

opinions of the authors indicate that wage incentives and fringe benefits have

positive effects in boosting of morale of workers in organizations.

Despite the above efforts and attempts so far shown in the literature review on

the effects of wage incentives and fringe benefits on the productivity of workers in

organizations, none has in-depth study on the effects of wage incentives and fringe

benefits on the productivity of workers of Enugu State local government service

commission. This work will complement the contemporary works of some authors

who have undertaken similar studies on the principles and practice of motivation.

This study will make some meaningful impact when applied to job situations

in Enugu state local government service commission and many other similar

organization having similar problems. The research will equally serve as a blue

print through which wage incentives and other fringe benefits can be used as a

practical guide for those who wish to introduce productivity improvement

techniques through incentive systems in their organizations.

46

2.2 HYPOTHESES.

1. Irregular payment of wages/salaries in Enugu state local government service

commission hinders the productivity of workers of the commission.

2. Inadequate wages/salaries in Enugu state local government commission hinders

the productivity of workers of the commission.

3. The present level of fringe benefits in Enugu state local government service

commission affects the morale of workers negatively.

4. The absence of collective bargaining process in Enugu state local government

service commission tends to perpetuate meager and irregular payment of workers‟

salaries.

2.3 OPERATIONALIZATION OF KEY CONCEPTS

For the purpose of this research, some key concepts was operationalized for

better understanding of the work.

(i)LOCAL GOVERNMENT: Local government is a system of local

administration under communities that is organized to maintain law and order,

provide some limited range of social amentias, and encourage cooperation and

participation of inhabitants towards the improvement of their conditions of living. It

provides the community with the formal organizational framework which enables

them to conduct their affairs effectively for the general good.

(ii)PRODUCTIVITY: Productivity is the achievement of desire output coupled

with a utilization of resource (man, money, material and machine).

47

(iii)WAGES: Wages are the total earrings a worker receives for the performance of

services within a period of time. They are equal to the product of an hourly rate,

times the number of pieces plus houses, premiums and fringe benefits. Wages

means any economic compensation paid by the employer under some contract to his

workers for the services rendered by them.

(iv)SALARY: Salary refers to the weekly or monthly rates to clerical,

administrative and professional employees. Salary is mostly determined by mutual

agreement between the individual and the employer. They are sometimes

determined or fixed by the government.

(v)INCENTIVE: An incentive scheme is a plan or programs to motivate

individuals or group performance. An incentive programme is most frequently built

on monetary, but may also include a variety of non-monetary reward or prizes.

(vi)FRINGE BENEFITS: all financial and non-financial payments to employees

that are over and above the agreed upon basic salary rate due to the employee for the

minimum results expected on the job. A benefit is an additional compensation given

to employees as a reward for organizational membership. These are wide of variety

of items which organizations typically pay to their workers.

(vii)COLLECTIVE BARGAINING: It is a method through which the wage rates

and other employment conditions are determined. It also establishes a set of rules

guiding relations between the parties during the life of collective agreement, as well

as providing for an orderly method of settling grievances that are bound to occur

from time to time.

48

(viii)MOTIVATION: It is a set of forces that lead people to act in particular ways.

Motivation represents the forces within a person that affect his or her direction,

intensity, and persistence of voluntary behaviour.

(ix)EMPLOYEES: By employees, we mean workers of Enugu state local

government service commission. These include both staff and line workers of the

commission.

(x)MEAGRE: This means deficient in amount or quality. It implies that in the

commission, workers wages/salaries are deficient in amount. It is not adequate

enough to meet up their immediate needs.

(xi)IREGULAR PAYMENTS: Salaries and allowances of workers are said to be

irregular when they not paid at the end of every month as stipulated by law. Salaries

that are consistently paid at the end of every month is regarded as regular, while it

is regarded as irregular when it is once in two, three or even four months.

(xii)INADEGUATE SALARIES/WAGES: Salaries/wage is said to be inadequate

when it fails to meet the basic necessities of life-food, shelter, clothing, etc and also

not in tune with the economic realities of the time.

(xiii)MORALE: This emotional or mental condition with respect to cheerfulness,

confidence, zeal etc. Emotional and mental conditions of employees needed be

boosted if high productivity is to be achieved. Employers are usually faced with the

challenges of boosting workers morale. Unhappy, disinterested employees can lead

to poor productivity.

49

(xiv)FINANCIAL INCENTIVES: These are incentives paid to workers as money

or physical cash. This is usually added to the basic salary at the end of the month as

a total emolument for the month.

(xv)NON-FINANCIAL INCENTIVES: These are usually given to workers in

kind or in materials like radio, television, motorcycles, cars, health facilities, free

education to their children and wards.

2.4 METHODOLOGY.

Methodology refers to the framework of activity or operations of

research. Research is obviously an activity centered endeavor. It requires not just

the mere writing of sound theoretical ad methodological insights but also the

practical efforts of designing instruments, collecting data, and analyzing the data so

collected. Seen purely in term of methods of study, it denotes the range of

approaches used in research to gather the appropriate data to be used for the purpose

of inference and interpretation on which to anchor explanations and predictions.

2.4.1 TYPE OF STUDY

This study is a survey research. According to Ali (1996:84) survey is a descriptive

study which seeks to document and describe what exists or the present status of

existence or absence of what is being investigated. Typical survey develops a profile

on what is and why is it so; they do not relate one variable to another.

50

2.4.2 DATA GATHERING INSTRUMENTS.

The study will use primary and secondary data. Primary data are field

data. All data collected for a specific purpose by the research from the field are

known as filed data. The most important methods of collecting primary data are

questionnaires; observation and interview. Terms are carefully defined and used, so

that as far as humanly possible, misunderstanding is avoided.

Secondary data were collected at University of Nigeria library, Public

Administration and Local Government (PALG) Department library, Enugu state

local government commission‟s publication and through other journals, periodicals,

textbooks, article, conference papers, newspapers, as well as published and

unpublished materials.

2.4.3 VALIDATION OF INSTRUMENTS

Validity is usually defined by such question as: does the test measure

what it is supposed to measure? (Osuala, 2005:162). According to Goode and Heart,

1952:73, a measuring instrument or scale possess validity when it actually measures

what it claims to measure. It is the degree to which a research instrument serves the

purpose for which it was constructed or indeed the extent to which the conclusion

drawn from an experiment is true. A well designed measuring instrument like

questionnaires is able to measure what it is designed to measure if it was properly

designed, but if faulty, it may measure something different from that which it was

designed to measure.

51

In order to be sure of the validity of our questionnaire, the researcher

used judgment validity. This was done by administering questionnaires to ten

senior officers of the personnel department. The researcher again interviewed

another six senior staff of accounts department, using the same questions and the

same results were obtained. The questionnaire was then properly designed to

measure actually what it is supposed to measure.

2.4.4 RELABILITY OF THE INSTRUMENTS

A reliable measure is one that is consistent, and because if gives a stable

measure of a variable, a reliable measure is precise. It also refers to the ability of a

result to be constant over time when applied to the same sample. In this study, the

test re-test technique was used by the researcher to establish the reliability of the

instrument to produce the same sample. The researcher established this by serving

his research instrument (questionnaires) to a sample within his population of study.

2.2.5 POPULATION OF THE STUDY

The population of the study area, Enugu state local government service

commission, is ninety-two (92) workers; comprising the political appointees, senior

and junior staff of the establishment.

2.4.6 SAMPLE OF THE STUDY

The will be no need for sampling. This is because the population is small;

therefore the researcher used the whole population for the study.

52

2.4.7 METHOD OF DATA ANALYSIS

Research data on their own convey little or no meaning unless they are

analyzed and described. Analysis of data therefore means the treatment of data so

that they become summarized or reduced to a point they can be meaningfully

interpreted. The data generated from primary and secondary data

were complied and analyzed. Facts derived from the related literature were used in

testing the tenability of the research hypotheses.

The quantitative data produced from the survey was reduced to simple

statistical technique like frequency and percentages as analytical instrument. This

was adopted to make for the clarity and simplicity of the presentation.

2.5 THEORTICAL FRAMEWORK

Theories are essential tools for scientific inquiry, analysis, and reliable

understanding of how social and natural systems operate. Theories are also useful

set of theoretically related concepts for explaining the occurrence of any

phenomenon. So they are useful tools in research in that they facilitate the

understanding of the relations that exist between variables.

As stated in the in the background of the study, wage incentives and

fringe benefits are motivating factors and they share similar principles of

motivation. So the researcher used expectancy theory propounded by Victor Vroom

to analyze the work. Expectancy Theory suggests that people are motivated by two

things: (1) How much they want something and (2) How likely they think they are

53

to get it (Vroom, 1964). In other words assuming they have choices; people will

make the choice that promises them the greatest reward if they think they can get it.

The Three Elements of Motivation: Expectancy, Instrumentality and

Valence. What determines how willing you ( or an employee) are to work hard to

tasks important to the success of the organisation? The answwer, says Vroom, is:

you will do what you can do when you want to.

Your motivation, according the expectancy, involves relationship

between your effort, your performance and the desirability of the outcomes ( such

as pay or recognition) of your performance. These relationships, which are shown in

the accompanying drawing, are affected by the three elements of expectancy,

instrumentality, and valence.

Expectancy: The major elements.

Effort

I exert an

Effort…

Performance

… a particular

Level of task

Performance

…. In order to

Achieve …

Outcomes

… certain

Outcomes

(e.g. pay or

recognition)

… So that

I can

Realize…

Expectancy

“Will I be able to

perform at the

Desired level on a

task?”

Instrumentality

“What outcome

Will I receive if I

Perform at this

Level?”

Valence

“How Much do I

Want the

Outcome?”

54

1. Expectancy: “ Will I be able to perform up to the desired level on a task?

Expectancy is the belief that a particular level of effort will lead to a particular level

of performance. This is called the effort-to-performance expectancy.

2. Instrumentality: “What outcomes will I receive if I perform at this level.

Instrumentality is the expectation that successful performance of the task will lead

to the outcome desired. This is called the performance to reward expectancy.

3. Valence: “How much do I want the outcome?” Valence is value, the importance a

worker assigns to the possible outcome or reward.

Example: if you assign a lot of importance or a high value to a prospective bonus or

pay raise, then your valence is said to be high.

For your motivation to be high, you must be high in all three elements expectancy,

instrumentality, and valence. If any element is low, you will not be motivated. Your

effort-to-performance expectancy might be low, for instance, because you doubt

making an effort will make a difference or your valence might be low because you

don‟t think the bonus or raise given is high enough to justify working evenings and

weekends. (Onah) 2008:292).

Using expectancy theory to motivate employees: The principal problem with

expectancy theory is that it is complex. Even so, the underlying logic is

understandable. When attempting to motivate employees, managers should ask the

following questions:

55

1.What rewards do your employees value? As a manager, you need to get to know

your employees ad determine what rewards (outcomes) they value, such as pay

increase raises or recognition.

2.What are the job objectives and the performance level you desire?

You need to clearly define the performance objectives and determines what

performance level or behaviour you want so that you can tell your employees what

they need to do to attain the rewards.

3.Are the rewards linked to performance? You want to reward high performance, of

course. If high-performing employees aren‟t rewarded, they may leave or slow

down and affect the performance of other employees. Thus, employees must be

aware that X level of performance within Y period of time will result in Z kinds of

rewards.

4.Do employees believe you will deliver the right rewards for the right

performance? Your credibility is on line here. Your employees must believe that

you have the power, the ability, and the will to give them the rewards you promise

for the performance you are requesting.

According to Abbah (1997:56), the key to expectancy theory is therefore

understanding an individual goals, and the linkage between effort and

performance, between performance and reward, and finally between reward and

the individual goals satisfaction. Similarly, the expectancy theory

emphasizes payoffs or rewards. As a result we have to believe that the reward the

organization is offering with what the employees want.

56

In applying the theory in this work, we acknowledged the effects of wage

incentives and fringe benefits in boosting workers morale. This theory of reward

applies to workers of Enugu state local government service commission.

Expectancy theory states that work effort is determined by the perception that effort

will result in a particular behaviour or performance (E-P expectancy), the

perception that a particular behaviour or performance level will lead to specific

outcomes (P-O expectancy) and the valences that the person feels for those

outcomes. The E-P expectancy increases by improving the employees‟ ability and

confidence to perform the job. The P-O expectancy increases by measuring

performances accurately, distributing higher rewards to better performance, and

showing employees that rewards are performance based. Outcome valences

increase by finding out what employees want and using these resources as rewards.

If the management of Enugu state local government service commission is able to

match performance by increasing the wage incentives and other fringe benefits to

their workers, productivity will be on the increase. What constitute a need to

somebody is that which has not been satisfied and that‟s what motivates him to be

more productive. Satisfaction outcomes will determine their level of efforts, not the

objective outcomes themselves. From the interview conducted in the commission,

wage incentives and other fringe benefits are not adequate enough to match their

expected rewards and that‟s account for the low productivity among the workers of

the commission.

57

CHAPTER THREE

BACKGROUND INFORMATION ON THE AREA OF STUDY.

3.1 BACKGROUND INFORMATION ON ENUGU STATE LOCAL

GOVERNMENT SERVICE COMMISSION.

The genesis of local government service commission started with the

1976 local government reforms which were aimed at making the local

government in the country uniform, autonomous and the third tier of

government. According to Adeyemo (2005:79) local government autonomy is

perceived as local government or grassroots democracy. This grassroots

democracy is primarily aimed at giving the vast majority of the people the

fullest opportunity to participate in determining their own destiny. Local

government service commission replaced the state ministry of local

government which is empowered to supervise the operations of local

commission. Even before the British colonial rule in Nigeria, there was local

self government which took varying forms of local government

administration reflecting the culture, policies and environment of the people.

The British in 1954 did not alter drastically, the pre-colonial arrangement but

evolved a new idea of local government administration through the use of

representative institutions.

According to Ayoade (1992:12), the origin of modern Nigeria local

government is deeply embedded in the colonial period. The British

58

aadministration introduced the indirect rule system-governlng through

indigenous institutions and authorities. In places where there were no natural

rulers, the British invented one to fill the gap. For example in parts of eastern

provinces of Nigeria which had no tradition of natural rulers, the British

delegated authority to warrant chiefs who were agents of colonial

administration and therefore, were not regarded as anything by the colonial

people.

However, indirect rule system notwithstanding, the British colonial rule

did not impose much uniformity in local administration. Wraith (1972:30)

points out that … the doctrine of direct rule was itself a denial of uniformity,

since none existed in the indigenous authorities”. The dispatch in 1947 to

colonial governors by then secretary of state for the colonies, Mr.Creech

Jones, marked the real beginning of the system of modern local government

in Nigeria. According to the dispatch, the encouragement of local political

interest and the building up of a system of efficient and democratic local

government is a cardinal feature of British policy in Africa. Thus, in 1951 the

eastern region adopted legislation which whittled down the powers of the

traditional rulers by opting for elected local councils. The western region

followed suit in 1952, while Northern Nigerian continued in a different part.

For the first time, Nigerians had the opportunity to have a say in the running

of their own local affairs. Also, the inception of democratic local government

59

system in Nigeria whittled the powers of the traditional rulers while elevating

the technocrats.

However, despite the emergency of democratic or representative

government in Nigeria since the 1947 dispatch, local government did not

enjoy substantial autonomy; it was effectively subordinated to the central

government. This was the situation when military took over the reigns of

power in January, 1966, and shortly, after the civil war which lasted from

1967-1970.

Both the military intervention in Nigerian politics and the civil war are

two factors that influenced the pattern and system of local government in Nigeria.

For instance during the civil war, local government lost whatever measure of

autonomy that they had enjoyed. They were tied closely to the central

administration to ensure a proper and speedy prosecution of war. Administrators

were appointed to local governments from the central government to manager their

affairs (Onah, 1995:47). Shortly after the civil war, many changes occurred in the

local government system in Nigeria. Many factors accounted for these changes.

First was the division of Nigeria into twelve states with the resultant creation of

new governments in each new state. The second factor is that the civil war had

created an immense socio-political dislocation which necessitated a post-war

reconstruction. As a result, local governments were also reformed in order to equip

them for the reconstruction of the economy and the society.

60

In recent times, the federal government changed its posture and

championed the course of local government autonomy. In the forward of the 1976

local government reforms, it was remarked that the state governments have

continued to encroach on what could have been the exclusive preserve of the local

government. With this reform, the federal government granted the local government

the power of grassroots governance, thus local government became the third tier of

government in the country. Undoubtedly, there has been improvement in the degree

of autonomy granted the local government since 1976, with more functions giving

to it. To strengthen the philosophy of the government, it went further to guarantee

the statutory nature of local government by embodying it in the 1999 constitution.

Section 7 (1) of the said constitution stated “the system of democratically elected

local government councils is under this constitution guaranteed”. The civilian

administration between 1979 and 83 seriously bastardize the so called autonomy.

It should be noted that successive military regimes have tried to give

local government its rightful position through the revitalization and restructuring

of local government system sought to review some of the problems hampering the

pperformance of the local governments. A 20-man committee headed by Ibrahim

Dasuki was appointed. The committee in its report (1986:16) recognised

that the problems of the local governments were more operational than structural.

The federal governments in line with the committee‟s recommendations approved

a multi-purpose single tier structure of local government system. The „board‟ was

redesigned as „commission‟ and made an autonomous body not subservient to the

61

department of local government as recommended by the report. The aborted 1989

constitution, section 195(d) further guarranteed the existence of the local

government service commission by providing for, its composition and powers.

The composition is still being in use. It stated that the commission should:

a. Comprise of mature and experienced people with proven integrity, with a

chairman and not more than four members who shall in the opinion of the

Governor, be a person of no unquestionable integrity and sound political

judgment.

b. Members of the commission shall remain in office for a period of five years

effective from the date of appointment provided he remains of good health

and conduct.

c. In exercising its powers to make appointments or to exercise disciplinary

control over persons, the commission shall not be subject to any direction or

control of any other authority.

Certain other measures of autonomy started coming the way of local

governments. The Babangida administration since 1985 made conscious efforts

to strengthen local system by enhancing its autonomy. In January, 1988 was the

scrapping of state ministries of local government throughout the country. This

was to remove the political control and bureaucratic redtapism created by the

ministries in the developmental performance of local government councils.

Apart from the above steps, there was the local government election in

December, 1987. It was an attempt to restore democracy to the grassroots since

62

the last election to the local councils in 1978, whose life expired in December

1979. Other efforts geared towards local government autonomy were the

approved scheme of service for local government employees, following the

recommendation of Oyedipo committee report of March, 1988.

To enhance financial autonomy and regular sources of revenue, there

was the direct disbursement of funds to local governments, preventing the hijacking

the funds of the local governments, substantial amount of money was

made annually as grants to training institutions such as Obafemi Awolowo

University, lle-lfe, Ahmadu Bello University Zaria and the University of Nigeria

Nsukka for the purpose of training middle and upper level manpower for local

governments. Series of seminars and workshops were organized by the federal

government and the institutions to improve the performance of local government

officials.

In view of the importance of local governments, as the bedrock of

democracy, there was a creation of 148 local governments in 1989 and 140 in

1991 and now totaling 774. These efforts were to bring the government much

nearer to the grassroots.

The application of 1988 civil service reforms in the local government

service was another measure of enhancing the status of the local government as

the third tier of government. The measure was to professionalize the service of

local government and to strengthen accountability through the use of audit alarm

system and the creation of the Auditor General for the local government.

63

3.2 ORGANOGRAM/STRUCTURE OF THE COMMISSION

64

The commission is being administered by five members who are usually

on appointment positions. The five members are the Chairman, Commissioner I,

commissioner II, Commissioner III, and Commissioner IV. There is however, a

permanent secretary who is working directly under the chairman just like other

commissioners, and is a career civil servant. The information officer and the

Internal Auditor take instructions directly from the chairman. The chairman and

the permanent secretary oversee and supervise the activities and operations of the

local governments at Enugu-West senatorial district, commissioner I and II

oversee and supervise the activities of local governments at Enugu-East

senatorial district and commissioners III and IV oversee and supervise the

activities of local government at Enugu-North senatorial district.

The commission has five departments, each being headed by a Deputy

Director. The departments are Manpower Development and Training, Planning

Research and Statistics, Finance and Supply and Personal Management department.

The staff strengthen is ninety-six, employed directly by the commission and some

drawn from various local governments in the state. It is pertinent to point out that

the commission has the powers to transfer any staff from the local governments to

the commission and vice-versa.

3.3 FUNCTIONS OF THE COMMISSION.

1. Appointment, postings, promotions and discipline of the local government unified

Staff on GL 07 and above.

65

2. The commission is to set up uniform guidelines for appointments, postings,

promotions and discipline of the staff on officers from Gl 01-06,

the commission delegates its powers to the local government councils as they relate

to appointments, postings, promotions and discipline.

However, the local government councils are requested to seek approval

from the commission.

3. To monitor the activities of every local government area on appointments,

promotions, and discipline of the employee of the local government areas to ensure

strict adherence to uniformed guideline.

4. The commission serves as the appellate body for every petition emanating from

the local government in respect of appointments, promotions and discipline. This is

to say that the commission‟s decision on the above stands on each employee though

whoever feels dissatisfied can appeal to the executive governor of the Enugu State.

5. To compile and maintain a comprehensive and up-to-date seniority lists and

nominal rolls for the local government service commission employees.

6. Production and submission of Annual Report to all relevant bodies i.e. office of

the Governor, Chairman of the Local Government Council and the Enugu State

House of Assembly.

7. Maintaining a monthly gazette and newsletter for local government that conveys

staff movements, new appointments, and confirmation of appointments, promotion

and retirement/dismissal.

66

8.Overseeing the activities of the pension board through the chairman who is the

chairman of the pension board.

9.The transfer of service of the unified local government service commission to or

from other service commissions is a responsibility of the commission

10.To keep the 1% training fund from the local government for the training of the

employees of the unified system.

3.4 FUNDING:-

Two major sources of fund are available to the commission

These include:

(a) 1% training fund deducted from the statutory allocation of local governments.

(b) Monthly overhead cost allocation made to the commission by the State

Government.

The training fund is usually applied to the training programmes organized by the

commission. These include Seminars/Workshops and In-Service Training

Programmes in various institutions of higher learning.

The monthly overhead cost allocation made by the State Government is used for the

routine operation of the commission. The State Government in addition

to the monthly overhead cost allocation made to the commission pays salaries of

staff of the commission.

3.5 FRINGE BENEFITS IN THE COMMISSION

1. Meal Subsidy is paid to all categories of staff.

2. Transport allowance is paid to all categories of staff.

67

3. Rent subsidy is paid to all categories of staff.

4. Leave allowance is determined by 10% of annual basic salary and paid to all

categories of staff.

5. Transfer allowances are paid to all categories of staff newly on transfer.

6. Training allowances are paid to all categories of staff that are opportune to be

selected for workshops, conferences and other training programmmes.

7. Pension and Gratuity are paid to retired staff of the commission.

8. In-service training; on application, successful ones are granted study leave with

pay to study in the Universities and other Institutions of higher learning. They are

equally paid study allowances.

9. Official cars; assigned mostly officers on political appointment like the Chairman

and members (commissioners) of the commission. The permanent secretary is also

assigned a vehicle.

10. Motorcycle loan; interested staff usually apply for such loan. 10 percent are

deducted from their monthly salary for the repayment of the loan.

Other fringe benefit such as car loan, Housing loan, Health Insurance

Scheme, Furniture allowance etc are not available in the commission.

3.6 SALARY/WAGE STRUCTURE

68

3.7 ACHIEVEMENTS OF THE COMMISSION.

In its effort towards boosting staff morale and promoting productivity so as to

achieve the set objectives for which it was instituted, the commission between 1999

and 2007 undertook some schedule visits to all the Local Government Councils in

the State. It had in the process made on the spot assessment regarding the

performance of the Local Government career officers at their various areas of

rural/primary assignments.

The Commission accordingly used its decision taking organ which was

the regular meeting of the commission held every Wednesday to solve staff matters

aimed at enhancing efficiency, discipline and dedication to duty.

The Commission in order to ensure that staff matters are handled

justifiably evolved a strategy of holding meetings with the local government key

functionaries every second Tuesday of a month. This regular meeting referred to as

the monthly statutory meeting of the commission. The Heads of Personnel

Management and Treasurers attended meetings at the Commission every month.

a.Promotion and Advances: During the year under review, the Commission was

very much concerned that all deserving staff got their promotion or advancements

but it was Lady Agbo that released the promotion on 19th March, 2002. in all, eight

hundred and eleven (811) were promoted to the next ranks, while two hundred

and forty-two (242) were converted and advanced. Those converted were those who

applied and followed the underlying guidelines and met the requirements.

69

Promotion and advancements took place every two, three and four years

respectively depending on their grade levels and additional qualifications.

a. Transfer of Service/Confirmation of Appointment:

A number of requests were received for their transfer of services/secondments to

or from the commission to other establishments. After due considerations, twelve

(12) states transfer were approved on their merit. Again no transfer of service

was effected but sixteen (16) staff was seconded out.

b. Discipline Cases

There were a few cases of discipline which were treated and disposed of

resulting in the suspension and dismissal of officers from within the unified

services on various grounds during the period under review. However, two cases

later reviewed saw the recall of two officers in Nkanu West and Nkanu East

respectively. A number of suspended officers were later recalled.

c. Payment of Gratuities/Pensions/Retirement:

The issues of gratuities, pension and retirement are handled by the Local

Government Staff Pension Board, in complement with the Local Government

Service Commission.

The present Enugu State Local Government Staff Pension Board has its roots in the

former Anambra State Local Government Staff Pension Board established under

the Anambra State of Nigeria Law No. 18 of 1982 titled “Found for Local

Government Pension Scheme Law (Amendment) Edict 1988”.

70

All approvals for payment as they affect retirement and death benefits as

well as expenditure vital for the administration of the pension scheme was made by

the pensions board. The Board sat regularly and the Law provided a minimum of

four sittings. Though the computations and apportionments of benefits are worked

out by the Pension Board, only the Local Government shares were paid. The

Federal and State Government shares were paid by the State‟s Accountant General

Office (State Treasury). Files of retires certified by the Auditor General for Local

Government were for those with Local Government appointment only. Any file

with State or Federal appointment was sent to establishment and the State Auditor

General before it was returned to the Pension Board for the payment of the Local

Government shares. Local Government Pensioners receive their monthly pentions

at the local of their choices. Certified disabled pensioners who so apply were paid

the balance of their entitlement as permitted by section of the pension decree 109 of

1979.

e. Development and training

In other to achieve our set objectives and enhance manpower development, the

commission had to pursue with vigour its training programmes for year 2000 to

2007. The commission approved the following courses for members of staff in the

following areas:

a. Ordinary Diploma in Local Government Administration/Account (1st and 2

nd

year)

b. Junior Community Health Extension Workers

71

c. Senior health Officers

d. Environmental Health Officers

e. Community health Officers

Despite the numerous achievements recorded during the year under review, it is

pertinent to note that the commission successfully hosted the conference of all

Local Governments in the Federation at Nike Lake Resort Hotels, Enugu.

3.8 MAJOR SETBACKS OF THE COMMISION:

The major problem that faced the commission was that of transportation.

The workers did not have utility vehicles for assignment which came in the form of

supervision, promotion interviews and recruitment exercise in the various Local

Government Headquarters. Again, Facilities for internal communications were

lacked and as members of staff were always moving up and down to drop or pick

information. The Public Relations Unit did not have a vehicle. This is unusual.

Finally the monthly subvention given as overhead did not meet their numerous

statutory responsibilities. This needed to be reviewed upward.

3.9 TENURESHIP/MEMBERS OF THE COMMISION.

The tenureship of the members of the commission is four years. The commission

was reconstituted by the Governor of the state, Dr Chimaroke Nnamani on 26th

January, 2000 and had a chairman and four members which included Chief Hon.

Nwobodo Ogbu (late) as chairman, Chief James Ugwu, Commissioner I, Barrister

Mrs. Anthonia Ugbene, Commissioner II, Comrade Okezie Nwanjoku,

Commissioner III, and Barrister Fabian Ogbuabo as Commissioner IV, Mr.

72

Uwaezuoke Nwaebem who was also appointed in 1999 by his Excellency,

Chimaroke Nnamani, was the secretary of the commission. At the death of the

chairman, the commission was dissolved and reconstituted in April, 2001 by the

Governor, Dr. Chimaroke Nnamani. The new chairman was Ezeudo Abel

Nwobodo, Chief James Ugwu, Commissioner I, comrade Okezie Nwanjoku,

Commissioner II, Barrister Mrs. Anthonia Ugbene, commissioner III, and Barrister

G.C. Agbo as commissioner IV. Mr. Uwaezuoke Mwaebiem was the secretary. It

may be necessary to state that with the departure of Ezeudo Abel Nwobodo to

another commission, lady Beatrice Agbo was appointed the new chairman on 6th

December, 2001 and other serving members were sworn in with her.

During the second term of the Governor, the commission was reconstituted in

2003 with Lady Beatrice U Agbo still the chairman, Hon. Mrs C. Chukwuanyim as

commissioner I, Hon. Mr. Eugene Odo as commissioner II, Hon. Mrs. Anthonia

Ughene as commissioner III, Hon. Chief G.C. Agbo as commissioner IV. Mr Anaya

Godwin was appointed the permanent secretary of the commission. Before the end

of their tenure, Mrs Iloelunachi replaced Mr. Anaya as the permanent secretary. The

tenure of these members expired in 2007 with the expiration of the second tenure of

the Governor, His Excellency, Dr. Chimaroke Nnamani.

73

CHAPTER 4: DATA PRESENTATION. ANALYSIS AND FINDINGS;

4.1 DATA PRESENTATION:

This chapter presents the analysis and tests of the hypotheses, followed by the

questions used to verify them. The responses were evaluated to validate or reject the

hypotheses. The background information or the personal profiles of the respondents

like his department, age, educational qualification, number of years in service and

salary grade level were used to kick start the analysis. This information is relevant

as the perception of the work environment is always influenced by these factors.

However, ninety (90) questionnaires were distributed to the staff of Enugu

State Local Government Service Commission. From the above number, eighty five

questions were retuned thus giving responses of 94.4% for the study. For the

purpose of this analysis the researcher converted the 85 questionnaires to 100%. So

the 85 questionnaires will be regarded as 100% in all the data presentation. The

respondent‟s profile is shown in the tables below.

TABLE 4.1.1 DAPARTMENT OF THE RESPONENTS.

Departments Number (F) Percentage(%)

Manpower Department

and training

Planning research and

statistic

Finance and Supply

Personnel management

Total

18

14

22

31

85

21.2

16.5

25.9

36.5

100

74

Source: Researcher’s Field Work/ Survey Report, 2011.

The above table shows that 18 respondents which represent 21.2% were attached to

manpower development and training department, 14 respondents that represents

16.5% are of planning, research and statistics, 22 respondents which represent

25.9% are from finance and supply department and 31 respondents which represent

36.5% are from personnel management department.

TABLE 4.1.2 AGES OF RESPONDENTS

Age group Number(F) Percentage (%)

21-30 years

31-40 years

41-50 years

51-50 years

61 years and above

Total

14

29

23

15

4

85

16.5

34.1

27.1

17.6

4.7

100

Source: Researcher’s Field Work Survey Report, 2011.

The above indicates that 14 respondent (16.5%) are between the ages of 21-30

years, 29 respondents (34.1%) are between the ages of 31-40 years, 23 respondent

(27.1%) are between the ages of 41-50 years. 15 respondents (17.6%) are between

the ages of 51-60 years 4 respondents (4.7%) are 61 years and above.

75

TABLE 4.1.3 MARITAL STATUS

Marital status Number (F) Percentage%

Married

Not Married

Total

72

13

85

84.7

15.3

100

Source: Researcher’s Field Work/Survey, 2011.

The table above shows that out of 85 respondents representing 100%, 72

respondents representing 84.7% are married. While 13 respondents representing

15.3% are not yet married. From the interview conducted, it was discovered that

most of the married workers have an average of three (3) to five (5) children and

other dependent relations to take care of. The implication of this is that the workers

need enhanced and regular salaries/ wages to meet up with their family needs.

TABLE 4.1.4 EDUCATIONL QUALIFICATIONS

Educational

qualifications

Number (F) Percentage%

FSLC

WASC/GCE

OND/NCE

HND/B.SC

MPA/MSC and Above

Total

6

38

23

13

5

85

7.1

44.8

27.1

15.3

5.9

100

Source: Researcher’s Field Work/Survey Report, 2011.

76

The above shows that out of 85 respondent which represents 100%, 6 respondents

(7.1%) obtained first school leaving certificate, 38 respondent (44.8%) obtained

West African School Certificate or General Certificate on Education, 23

respondents (27.1%) obtained Ordinary national Diploma or Nigeria Certificate on

Education, 13 respondents (15.3%) obtained Higher National Diploma or Bachelor

of Science Degree and 5 respondents (5.9%) obtained Masters in Public

Administration or Master of Science Degree.

TABLE 4.1.5 NUMBERS OF YEARS IN SERVICE

No of years Number (F) Percentage (%)

0-10 years

11-20

21-30

31 years and above

Total

8

41

32

4

85

9.4

48.2

37.7

4.7

100

Source: Researcher’s Field Work/Survey Report, 2011.

From the table above, 8 respondents which represent 9.4% have worked in the

commission for 0-10 years, 32 respondents which represent 37.7% have served the

commission for 21-30 years, and 4 respondents which represent 4.7% have served

commission for 30 years and above.

77

TABLE 4.1.6 SALARY LEVEL

Salary grade level Number (F) Percentage(%)

01-06

07-10

12-14

15-17

Total

24

38

17

6

85

28.2

44.7

20.0

7.0

100

Source: Researcher’s Field Work/ Survey, 2011.

Out of 85 respondent (100%) 24 (28.2%) are in grade level 01-6, 38 respondents

(44.7%) are in grade level 07-10, 17 respondents (20%) are in grade level 12-14 and

6 respondents (7.1%) are in grade level 15-17.

4.2 DATA ANALYSIS

The researcher attempts to find out the effects of wage incentives and fringe benefits

on the productivity of Nigerian workers: a study of Enugu State Local Government

Service Commission. Frequencies and percentages were employed using licket five

point scale viz:-strongly agree, agree, strongly disagree and undecided.

4.2.1 TEST OF HYPOTHESIS 1

“Irregular payment of wages/salaries in Enugu Stat local government service

commission hinders productivity of workers of the commission” Questions 1-3 were

used in testing hypotheses.

78

QUESTION 1

Salaries/wages of Enugu State local government service commission between 1999

and 2007 were regular.

Table 4.2.1. Shows the frequency distribution of respondents from the above

statement.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly Disagreed

Disagreed

Undecided

Total

4

6

45

30

-

85

4.7

7.1

53.0

35.3

-

100

Source: Researcher’s Field Work/Survey Report, 2011.

From the above table, 4 respondents which represent 4.7% strongly agreed that

salaries/wages paid to workers of Enugu State local government service commission

were regular, 6 respondents representing 7.1% agreed that salaries/wages of the

commission were regular. 45 respondents representing 52% strongly disagreed that

the salaries wages of the workers of Enugu State local government service

commission were regular. 30 respondents representing 35.3% disagreed that their

salaries/wages were regular. None was undecided.

The responses from the respondents indicate that 88% of the staff disagreed

that salaries/wages of the workers were regular.

79

The researcher‟s observation agreed with the result of the majority of the

respondents who disagreed that their salaries/wages were regular. Within the period

under review, workers salaries/wages were not regular at work and they look for

other alternatives to survive.

In this case they lack the commitment, the zeal and their morale is low. This

is because they are not sure that they will get reward for their work at the end of the

month.

This confirms what Alugbuo (1981:13) asserted, that people work to get

reward for their efforts. The exchange of labour for financial reward is the heart of

pay process. People do not put forward their best, unless they get reward for their

work.

Therefore the management of Enugu State local government service

commission should ensure that their workers are paid regularly to improve the

productivity of workers.

80

QUESTIONS 2

More than 12 months arrears of salaries/wages were being owned to workers

between 1999-2007.

Table 4.2.2 below shows the frequency distribution from the above statement.

Category of response Frequency Percentage (%)

Strongly Agreed

Agreed

Strongly Disagreed

Disagreed

Undecided

Total

57

20

2

3

3

85

67.1

23.6

2.4

3.6

3.6

100

Source: Researcher’s Field Work/Survey Report, 2011.

The table above indicates that 57 respondents representing 67.1% strongly

agreed that the workers were being owed more than 12 months arrears of

salaries/wages. 20 respondents representing 23.6% agreed that the workers were

being owned more than 12 months arrears. 2 respondents representing 2.4%

strongly disagreed, while 3 respondents representing 3.6% disagreed that he

workers were being owned more that 12 months arrears of salaries/wages. 3

respondents were undecided on the matter. This table confirms that workers were

being owed more than 12 months arrears of salaries and other allowances. From the

interview conducted, the workers were categorical that they were being owed more

than14 months arrears of salaries and allowances between 1999 and 2007.

81

QUESTION 3

Workers were prompt and committed to their duties.

Table 4.2.3 shows the frequency distribution from the above statement.

Category of response Frequency Percentage%

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

7

5

38

29

6

85

8.2

5.9

44.8

34.1

7.1

100

Source: Researcher’s Field Work/Survey 2011.

The above table revealed that 7 respondents representing 8.2% strongly

agreed that workers were prompt and committed to their duties. 5 respondents

representing 5.9% agreed that the workers of the commission were prompt and

committed to their duties. 38 respondents representing 44.8% strongly disagreed

that the worker of the commission were prompt and committed to their duties. 29

respondents representing 34.1% disagreed that the workers were prompt and

committed to their duties. However 6 respondents representing 7.1% were

undecided on the issue. The interview conducted on the management staff confirms

the result of the table. They affirmed that they didn‟t have any morale justification

to punish anybody who was not regular and prompt because they are not sure they

82

were going to be paid at the end of the month. So the issue of commitment to their

duties did not arise because they looked for other ways to make ends meet.

4.2.4 TESTING OF HYPOTHESIS 11

“Inadequate payment of wags/salaries in Enugu State local government

service commission hinders the productivity of workers of the commission”

QUESTION 4-7 were used in testing hypothesis 11.

The salary structure of Enugu State local government service commission is

attractive.

Table 4.2.4 shows the frequency distribution of responses from the above

statement.

Category of response Frequency Percentage%

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

8

7

42

23

5

85

9.4

8.2

49.4

27.1

5.9

100

Source: Researcher’s Field Work/Survey 2011.

From the table above, it was discovered that 8 respondents representing 9.4%

strongly agreed that the worker‟s salary structure is attractive. 7 respondents

representing 8.2% agreed that the salary is attractive. 42 respondents representing

49.4% strongly disagreed that the salary structure of Enugu State local government

83

service commission is attractive, while 23 respondents representing27.1S disagreed

that the salary structure is attractive. 5 respondent representing 5.9% were

undecided on the issue.

Majority of the workers confirmed that the salary of the workers is not

attractive. During the interview on the issue they compared their salary to that of

other organizations like the federal civil service, salaries and allowances in other

states and other private enterprises. This confirms what (Adams,1965) said, that

Equity theory focuses on employee perception of how fairly they think they are

being treated compared to others. Most of them affirmed that they are here because

they don‟t have opportunity of getting better jobs.

Question 5

The salaries/wages being paid were adequate.

Table 4.2.5 below shows the frequency distribution of responses from the above

statement.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

7

10

48

25

2

85

8.2

11.8

56.5

29.4

2.4

100

Source: Researcher’s Field Work/Survey 2011.

84

The above table indicates that 7 respondents representing 8.2% strongly

agreed that the salaries/wages being paid to workers between 1999 and 2007 were

adequate. 10 respondents representing 11.8% agreed that workers salaries/wages

were adequate. 48 respondents representing 56.5% strongly disagreed with the

above statement that the salaries/wages of Enugu State local government service

commission were adequate. 25 respondent representing 29.4% also disagreed that

their salaries/wages were adequate. 2 respondent representing 2.4% were undecided.

The table clearly shows that their salaries/wages are inadequate. This was

confirmed from the salary chart given to me by the accounts department. Their

salaries were being computed based on a basic salary of N5, 175.

QUESTION 6

The salaries/wages of Enugu State local government service commission

reflected the economic realties of the time.

Table 4.2.6 below shows the frequency distribution of response from the above

statement

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

5

7

32

30

11

85

6

8.2

37.5

35.2

13

100

Source: Researcher’s Field Work/Survey 2011.

85

From the table, 5 respondents representing 6% strongly agreed that workers

salaries/wages reflected the economic realties of the time, 7 respondents

representing 8.2% agreed workers salaries/wages reflected the economic realities of

the time. 32 respondents representing 37.5% strongly disagreed that salaries/wages

of Enugu State local government service commission reflected the economic

realities of the time.30 respondents representing 35.2% also disagreed that their

salaries/wages reflected the economic realities of the time. 11 respondents

representing 13% were undecided.

The above confirms the opinion of Kiebel, (1983:50) that low productivity

seen in the country is as a result of poor wage administration. Workers are paid

without considering their needs which included feeding. housing, clothing and other

higher needs.

86

QUESTION 7

The salary structure of the commission is the same with that of other

Government establishment of the state.

Table 4.2.7 show the frequencies distribution of the respondents from the

above question.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

31

20

9

10

15

85

36.5

23.5

10.6

11.8

17.7

100

Source: Researchers Field Work/Survey, 2011.

The table above shows that 31 respondents representing 36.5% strongly

agreed that their salary structure is the same with that of other Government

establishment of Enugu State. 20 respondents representing 23.5% also disagreed

that their salary structure is the same with other Government establishment of

Enugu State. 9 respondent representing 10.62 strongly disagreed that their salary

structure is the same with that of other Government establishment. 10 respondents

representing 11.8% also disagreed while 15 respondents representing 17.7% were

undecided on the matter.

87

More of the respondents attested to the fact that their salary structure was the

same with other state government establishments. This was confirmed when the

researcher visited five ministries in Enugu State when the salary chart were

compared, they were exactly the same with that the local government service

commission.

4.2.8 TESTING OF HYPOTHESIS 111

The present level of fringe benefit in Enugu State local government service

commission affects the morale of the workers.

Question 8-14 were used in testing hypothesis 111

QUESTION 8

Insurance health welfare scheme, furniture allowance, housing loan, car loan etc

were given as fringe benefit to the workers.

Table 4.2.8 below shows the frequency distribution of response from the above

statement.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

5

3

42

21

7

85

5.9

3.5

49.4

24.7

8.2

100

Source: Researcher’s Field Works/Survey 2011.

88

The table above reveals that 5 respondent representing 5.9% strongly agreed

that the above fringe benefit were given to workers of the commission. 3

respondents representing 3.5% also agreed that the above fringe benefit were given

to workers of the commission. 42 respondents representing 49.4% strongly

disagreed that the above mentioned fringe benefits were given to the workers of the

commission. 21 respondents representing 24.7% also disagreed that the above listed

fringe benefits were given to workers of the commission while 7 respondents

representing 8.2% were undecided on the benefit given to the workers.

When the researcher interviewed the Director of Personnel Management, he

stated clearly that such fringe benefits never exited in the commission to the best of

his knowledge. During the period under review, what every worker was hoping and

praying for was how to get the monthly salaries which usually come once in three

months. Some times it is paid in the bank and withdrawn after a few days. So if you

rush to the bank for your salary, they will inform you that there is no money in your

account that the state chief Executive (Governor) has directed that the money be

returned to the treasury.

Question 9

Annually, some percentage of workers were granted motorcycle loan, in-service

training in academic institutions with pay.

89

Table 4.2.9. Shows frequency distribution of respondents from the above

statement.

Category of response Frequency Percentage(%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

29

33

10

13

-

85

34.1

39

11.8

15.3

-

100

Source: Researcher’s Field Works/Survey 2011.

From the table above, the results shows that 29 respondent representing 34.1%

strongly agreed that some percentage of workers were granted motorcycle loan, in-

service training in academic institutions with pay. 33 respondents representing 39%

agreed the above fringe benefit were granted to workers of the commission. 10

respondents representing 11.8% strongly disagreed. 13 respondents representing

15.3% disagreed that motorcycle loan and in-service training were granted to the

workers, while no respondent was undecided.

Majority of the respondents agreed that motorcycle loans and in-service

training were granted to some percentage of workers of the commission. But from

the interview conducted, it was discovered that it was not regular and that about

10% of the workers got the loan throughout the seventeen local government areas of

90

the state. Those that got the loan later regretted it because of the deductions made

from their meagre salaries every month. Most of the workers used it for Okada

business to enable them cope with their family responsibilities. Those on in-service

training could not get the usual stipends given to them as stipulated by law of the

local government system and even the number granted such in-service training

reduced drastically.

Question 10

The fringe benefits given to workers were satisfactory.

Table 4.2.10 below shows the frequency distribution of responses from the

workers.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

9

11

27

38

-

85

11

13

32

45

-

100

Source: Researcher’s Field Works/Survey 2011.

The above table indicates that 9 respondents representing 11% strongly agreed that

the fringe benefit given to workers of the commission were satisfactory. 11

respondents representing 13% agreed that the fringe benefit to workers were

satisfactory. 27 respondents representing 32% strongly disagreed that the fringe

91

benefit were satisfactory. 38 respondents representing 45% disagreed that the fringe

benefit given were satisfactory while no respondent was undecided.

The interview conducted revealed that the fringe benefit given to workers

were not satisfactory. According to them, no fringe benefits existed except meal

subsidy and other allowances that were paid with the basic salaries.

Question 11.

Granting addition fringe benefits to the workers will boost their morale and lead to

improved productivity.

Table 4.2.11 below shows the frequency distribution of the response of the

workers.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

24

47

5

7

2

85

28.2

55.2

5.9

8.2

2.4

100

Source: Researcher’s Field Works/Survey 2011.

The table above reveals that 24 respondents representing 25.2% strongly agreed that

granting additional fringe benefits will boost the morale of workers and lead to

improved productivity. 47 respondents representing 55.2% strongly agreed that

granting fringe benefits to workers will boost their morale and lead to improved

92

productivity. 5 respondents representing 5.9% strongly disagreed while 7

respondent representing 8.2% disagreed. 2 respondent representing 2.4% were

undecided on the statement.

Majority of the respondents opined that if adequate fringe benefits are given

to workers their morale will be boosted. This confirms what we stated in the

literature of this work that fringe benefits have been accepted to have an important

place in boosting workers effectiveness and therefore are of value to the employee.

Fringe benefits stem from the theory of motivation, and according to Duncan

(1978:74) it is concerned when behaviour is activated, maintained, directed and

stopped. From the managerial point of view, motivation relates to any conscious

attempt on the part of a person or group to influence the direction and the rate of

behaviour towards the accomplishment of organizational goals.

Question 12 Promotion/conversion makes you put more effort on you duties.

Table 4.2.12 below shows the frequency distribution of response

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

43

37

2

3

-

85

51

44

2.4

4

-

100

Source: Researcher’s Field Works/Survey 2011.

93

The table above shows that 43 respondents representing 51% agreed that promotion

and conversion make workers of the commission put more efforts on their duties. 37

respondents representing 44% agreed that promotion and conversion make the

workers put more efforts on their duties. 2 respondents representing 2.4& disagreed,

while 3 respondents representing 4% disagreed, none of the respondent was

undecided.

The table above reveals that promotion and conversion make the workers put

more efforts and commitment to their duties. Further interview on the issue

confirms the above statement and went further to state that promotion and

conversion increases their salaries, gives psychological upliftment and increases

their sense of belonging.

Question 13

You were promoted as at when due.

Table 4.2.113 below shows the frequency distribution of the response.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

9

33

21

13

9

85

11

39

25

15.3

11

100

Source: Researcher’s Field Works/Survey, 2011.

94

The table above shows that 9 respondents representing 11% strongly agreed that the

workers were promoted as at when due. 33 respondents representing 39% agreed

that they were being promoted as at when due. 21 respondent representing 25%

strongly disagreed while 13 respondents representing 15.3% disagreed. However, 9

respondents representing 11% were undecided,

The result of the analysis shows that majority of the respondents accepted that

the workers were promoted as at when due. The interview conducted on some

management staff did not actually support the result of the responses. According to

them, most of the workers, especially the junior cadre got only one or two

promotions during the period under review, as against four, while few senior staff

got only one as against two depending on their grade level. The most unfortunate

thing is that most of the promotions hardly attracted any immediate financial effect.

Further more, most of the workers do not the criteria for promotion.

95

Question 14.

Financial incentives motivate workers more than non-financial incentives

Table 4.2.14 shows the frequency distribution of the response

Category of response Frequency Percentage(%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

21

39

9

13

3

85

25

46

11

15.3

4

100

Source: Researcher’s Field Works/Survey 2011.

From the above table, it was discovered that 21 respondents representing 25%

strongly agreed that financial incentives motivate workers than non-financial

incentives.39 respondents representing 46% agreed that financial incentives

motivate workers more than non-financial incentives. 9 respondent representing

11% strongly disagreed while 13 respondents representing 15.3% disagreed. 3

respondent representing 4% were undecided.

Further inquiries confirmed the responses from the workers. Most of the junior staff

preferred any benefit being monetized.

96

Question15.

Non-Financial incentives motivate the workers more than financial incentives.

Table 4.2.15 below shows the frequency distribution of the responses

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

8

15

31

36

5

85

9.4

18

36.4

42.3

5.9

100

Source: Researcher’s Field Works/Survey 2011.

The table above shows that 18 respondents representing 9.4% strongly agreed that

non-financial incentives motivate the workers more than financial incentives. 15

respondents representing 18% agreed that non-financial incentives motivate the

workers than financial incentives. 31 respondents representing 36.4% strongly

disagreed, while 36 respondents representing 42.3% disagreed. 5 respondent

representing 5.9% were undecided on the issue.

Most of the senior staff, especially those at the management level and those

on political appointment preferred non-financial benefit such a official cars,

equipping their office properly etc, these and likes make them more fulfilled and

committed to their duties.

97

4.2.16 TESTING OF HYPOTHESIS IV

The absence of collective bargaining process in Enugu State Local Government

commission tends to perpetuate meager and irregular payment workers salaries.

Question 16-18 were used in testing hypothesis IV

Question16

All the workers of the commission are members of National Union of Local

Government Employees (NULGE).

Table 4/2/16 below shows the frequency distribution of the respondents.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

52

28

1

4

-

85

61.2

33

1.2

4.7

-

100

Source: Researcher’s Field Works/Survey 2011.

The table above indicates that 52 respondent representing 61.2% strongly agreed

that all the workers of the commission are members of NULGE. 28 respondents

representing 33% agreed that all the workers are members. 1 respondent

representing 1.2% strongly disagreed that all the workers are members while 4

98

respondents representing 4.7% disagreed. None was undecided on the membership

of the union.

From the membership records and the interview conducted, all the workers

are members of the union except those on political appointment ie the

commissioners/members.

Question 17

Salaries, allowances and other fringe benefit were determined by the state

Government.

Table 4.2.17 below shows the frequency distribution of the respondents.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

38

36

5

3

3

85

45

42.3

5.9

3.5

3.5

100

Source: Researcher’s Field Works/Survey 2011.

From the table above, the responses show that 38 respondents representing 45%

agreed that salaries, allowances and other fringe benefits in the commission were

determined by the state Government. 36 respondents representing 42.3% agreed that

the salaries, allowances and other fringe benefits were determined by the

government. 5 respondents representing 5.9% strongly disagreed that salaries,

99

allowances and other fringe benefit were determined by the state government while

3 respondent representing 3.5% disagreed, 3 respondent representing 3.5%

undecided.

The above analysis confirms what Pigor and Myers, (1984) affirmed, the wages and

salaries in some organization, especially the federal government are established by

law and the civil service regulations.

Question 18.

Salaries, allowances and their fringe benefit were determined by collective

bargaining by the commission and NULGE.

Table 4.2.18 below shows the frequency distribution of responses from the

workers.

Category of response Frequency Percentage (%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

8

13

29

25

10

85

9.4

15.2

34.1

29.4

11.8

100

Source: Researcher’s Field Works/Survey 2011.

The table above indicates that 8 respondents representing 9.4% strongly agreed that

salaries, allowances and other fringe benefits were determined by collective

100

bargaining. 13 respondents representing 15.2% agreed that salaries, allowances and

other fringe benefits were determined by collective bargaining. 29 respondents

representing 34.1% strongly disagreed, while 25 respondents representing 29.4%

disagreed. 10 respondents representing 11.8% were undecided on the issue.

The management and the members of the commission made it categorically

clear that workers salaries, allowances and other benefits are determined by the state

government in line with the Enugu State Civil Service Commission.

Question 19

Irregular and inadequate salaries persist in the commission because of lack of

collective bargaining.

Table 4.2.19 below shows the frequency distribution of response.

Category of response Frequency Percentage(%)

Strongly agreed

Agreed

Strongly disagreed

Disagreed

Undecided

Total

27

33

9

11

5

85

32

39

11

13

5.9

100

Source: Researcher’s Field Works/Survey 2011.

The above table shows that 27 respondents representing 32% strongly agreed that

irregular and meager salaries persist in the commission because of lack of collective

bargaining. 33 respondents representing 39% agreed that irregular and meager

101

salaries persist in the commission because of lack of collection bargaining. 9

respondents representing 11% strongly disagreed that irregular and meager salaries

persist because of lack of collective bargaining. While 11 respondents representing

13% disagreed, 5 respondent representing 5.9% were undecided.

Records from accounts department revealed that meagre and irregular

payment of salaries/wages persisted throughout the period under review. The salary

structure was not enhanced and the salaries were not coming at the end of every

month. There was no legislation as to what the minimum wage should be in the

country, so every state government determined the salary structure of her

employees.

4.3 DISCUSSION AND FINDINGS

Any given research looks forward to obtaining some results. The expectation

of a given set of result leads to the proposition of some specific hypotheses which

are eventually tested for the purpose of obtaining one result or the other. The finding

bellow are based on the fact gathered through interview, primary and secondary

data. The major findings of this study were generated from the efforts to answer the

research questions as well as testing the hypotheses.

In chapter two of this research four hypotheses were posited, all aimed at

finding out the effect of wage incentives and fringe benefits on the productivity of

workers of Enugu State local government service commission.

The first hypothesis of this study is hooked to whether irregular payment of

wage/salaries hinders the productivity of workers of Enugu state local government

102

service commission. It assumed that there is a positive relationship between

irregular payment of wages/salaries and low productivity of workers of the

commission. Three questions were posed in the questionnaire for the purpose of

testing the hypotheses. Aspects covered in the questions include how regular the

workers salaries/wages were between 1999 and 2007, how many months arrears of

salaries they were being awed and whether the workers were prompt and committed

to their duties.

All the questions posed on the irregular payment of wages/salaries were

analyzed one after the other. It was discovered that in terms of whether their

wages/salaries were regular, 53% and 35.3% respectively were of the opinion that

workers wages/salaries were irregular. The analysis also revealed that 67.1% and

23.6% of the respondents agreed that workers were being owed more than twelve

months (12) arrears of salaries. Further more, 44.8% and 34.1% agreed that the

workers were not prompt and committed to their duties because of irregular

payment of wages/salaries. Interviews conducted further revealed that the workers

were being owed exactly fourteen months arrears. Workers just breeze in to the

office and leave to scout for alternative source of survival as they were not sure that

they will be paid at the end of the month.

It can therefore be said that from all empirical evidences from the analysis of

the response of the respondents, the hypothesis is up-held.

The second hypothesis of the study was based on whether the inadequate

wage/salaries paid to the workers of the commission hinders the productivity of the

103

workers, four questions , 4-7 were used in testing the hypothesis. Aspects covered in

the question include how attractive their salary structure was, whether their salaries

are adequate, whether it reflected the economic realities of the time and whether

their salary structure is the same with other state government‟s establishment.

In answering the questions, a total of 76.5% affirmed that their salary

structure is not attractive. Also a total of 86% of the response indicates that the

workers wages/salaries were inadequate. The analysis equally revealed that 72.7%

of the respondents did not accept that the workers wages/salaries reflected the

economic realities of the time. A total of 60% of the whole respondents agreed that

the salary structure is the same with other state government establishments.

From the analysis done, the empirical evidence shows that the hypothesis

which stated that inadequate payment of wages/salaries in Enugu state local

government service commission hinders the productivity of workers of the

commission is up-held. Further interviews that revealed the inadequacy of workers

salaries show that workers salaries were computed based on the minimum wage of

N 5,175. The total take home pay of a level 10 step 5 officer was N 32,265.07. From

this meagre salary, he pays his rent, transportation, school fees for the children,

food, clothing and other basic necessities of life. So the workers usually abscond

from work to search for alternative source of income.

The third hypothesis was tested based on the assumption that the level of

fringe benefits in Enugu state local government service commission affects the

morale of the workers. Questions 8 to 15 were used to test the above hypothesis.

104

Areas covered by the question include whether insurance, health welfare scheme,

furniture allowances, housing loan, car loan etc were given as fringe benefits to

workers, the granting of motorcycle loan and in-service training in higher academic

institutions with pay, whether the fringe benefit given were satisfactory, will

granting of additional fringe boost their morale, the effects of promotion, and

aspects of financial and non-financial incentives.

The result of the analysis shows that a total of 74.1% of the total respondents

indicated that insurance, health welfare scheme, furniture allowance, housing loan.

car loan etc were not given as fringe benefit to the workers. However a total of 73%

agreed that workers were given motorcycle loan and granted in-service training in

higher institution of learning with pay. A total of 77% affirmed that the fringe

benefits given were not satisfactory. Also a total of 83.4% agreed that granting

additional fringe benefits will boost the morale of the workers. 71% of the

respondents agreed that promotion/conversion will make workers put more efforts

on their duties. High caliber officers prefer non-financial incentives, while the

medium and the lower strata prefer financial incentives. According to them, the

financial incentives that motivate them are the one given outside their salaries. From

the above analysis, it is evident that the levels of fringe benefits do not boost the

morale of the workers. Therefore, the hypothesis which stated that the level of

fringe benefits in Enugu state local government service commission affects the

morale of the workers in up-held.

105

Majority opinions show that the level of fringe benefits is low and unsatisfactory.

The interview conducted even revealed further that motorcycle loan granted is not

regular and that even after the in-service training promotion/conversion is not

always assured. So the level of fringe benefits is not adequate to boost their morale

thereby leads to low productivity of the workers of the commission.

The fourth hypothesis was tested based on the assumption that the absence of

collective bargaining process in Enugu state local government commission tends to

perpetuate meagre and irregular payment of workers salaries. Questions 16-19 were

used in testing the hypothesis. Aspects covered by the question as were membership

of the workers union (NULGE), who determines their salaries/wages and other

fringe benefits the state government or by collective bargaining between the union

and the commission.

From the analysis it was indicated that 94.2% of all the workers are members

of National Union of Local Government Employees. A total of 87.3% agreed that

their salaries and other fringe benefits were determined by the state government and

also a total 73.5% of the responses indicated that workers salaries and other fringe

benefits were not determined by collective bargaining. The results of the analysis

have authenticated this hypothesis which stated that the absence of collective

bargaining perpetuates meagre and irregular payment of workers salaries. Interviews

conducted on the top management of the commission further confirmed the result of

the analysis by stating that salary issues and fringe benefits are determined by the

government and its agencies. They pointed out however, that the union can

106

negotiate and even go on strike to press down their demand for better conditions of

service. But that will only be meaningful if the national body or the state chapter of

the union conducts the negotiation, otherwise the labour union in the commission

cannot all alone negotiate or go on strike for better condition of service. It was

further found out that some categories of workers especially those on political

appointments are usually not members of the union.

107

CHAPTERM 5: SUMMARY, CONCLUSION AND RECOMMENDATION.

5.1 SUMMARY

This study examined the effects of wages incentives and fringe benefits on

the productivity of Nigeria workers, a study of Enugu State local government

service commission from 1999 to 2007. It is noted that the ability of an organization

to achieve its goals of high productivity depend to a large extent on human

resources as well as how effectively they managed workers. The workers should be

adequately motivated for enhanced productivity. It was highlighted that the poor

performance, lack of dedication and commitment of workers have been a matter of

concern and debate among government officials, private organizations and the

general public. How to improve the productivity of employees has been the topic of

many seminars, symposia and conferences. The reasons for the trend, as well as,

appropriate avenue for apportionment of blame, have formed the controversy.

The pertinent questions of the study were also highlighted. The objectives the

study intended to achieve were clearly stated, while the significance of study the

scope and limitations of the study concluded the first chapter.

In the second chapter, the literature was extensively reviewed in many aspects

such as concept of wages and salaries, concept of fringe benefits, wage

determination and collective bargaining and principle of motivation. The gap in

knowledge came under this chapter, as well as hypotheses and operationalization of

key concepts. Methodology for the study was also X-rayed which include types of

study, data gathering instruments, validity and reliability instruments, populations of

108

the study, sample of the study and method of data used were, primary and secondary

data. Victor Vroom‟s (1964) Expectancy theory was used for the theoretical frame

work.

Chapter three of the study dealt with the background information on the study

area, functions of the commission, the organogram, funding, and fringe benefits in

the commission, salary structure, achievements, major setbacks and tenureship of

members of the commission.

Data from the field, their presentation, analyses and testing of the research

hypotheses were the major contents of chapter four. Findings from the analysis

concluded this chapter.

Chapter five is the last chapter of the study and dealt with the summary,

conclusions and recommendations.

The findings revealed that there was low productivity of workers of the

commission occasioned by irregular and inadequate wages/salaries, low level of

fringe benefits and absence of collective bargaining process.

5.2 CONCLUSION.

This study aimed at investigating the effects of wage incentives and fringe

benefits on the productivity of workers of Enugu State local government service

commission with a view to finding out whether their wages/salaries were adequate,

regular and whether the level of fringe benefits in the commission boost workers

morals for high productivity or not and whether workers salaries/wages were

determined by collective bargaining.

109

As we earlier stated, the payment of good salaries and wages is fundamental to the

increase in the productivity of employee. Therefore a suitable payment system is a

prerequisite for effective performance. In other to motivate people to put maximum

efforts, it is essential that there various needs, especially as it concerns

wages/salaries and other fringe benefits; be satisfied as far as practicable. In Nigeria,

the salary structure falls below the level to maintain efficiency. It is not in line with

the economic realities. According to Papola (1970) “a just minimum wage to

maintain not only the life but the health and the vigour of the working people is a

law of necessity and knows no other law”

The work does not in any way assume that it has found out all the factors

responsible for low productivity of Nigerian workers. In the same vein, it cannot be

said that the problems of low productivity of Nigerian workers would come to an

end if the identified effects were redressed.

It is our belief that an attempt has been made to investigate the problems of

low productivity among Nigerian workers. If the findings of this research succeed in

making human resources managers and the government to look more seriously on

issues that enhance productivity, the study would have achieved its basic objectives.

There is no doubt that there might have been issues in the study that were not

adequately addressed or equally important issues that were not raised. These lapses

or gaps probably might have been included in the scope and limitations of the study.

110

5.3 RECOMMENDATIONS.

The necessity for managers and administrators to motivate their employers

through wage/salary incentives and other fringe benefit cannot be over-emphasized.

There is no doubt that the ability of any organized enterprise and, indeed any group,

to achieve its goals depends to a large extent on the motivation if its employers.

Indeed no management or government can succeed in achieving optimal

productivity without knowing what the people want. This study has revealed that the

low productivity of workers in Enugu State local government service commission

was as a result of lack of regular salaries/wages, inadequate salaries/wages, low

level of fringe benefits and absence of collective bargaining process in the

commission.

In the light of the above, the under listed recommendation are being made to

improve the productivity of Nigerian workers in general and that of the workers of

Enugu State local government service commission in particular.

1. There should be periodic upward review of worker‟s wages/salaries and other

fringe benefits through collective bargaining process. The economic realities

of the time should be considered during the process.

2. The issue of paying regular salaries to workers should be considered as a

priority by the government. A worker depends on his/her monthly salary for

the upkeep of his family. So of it doesn‟t come at the end of the month, they

are devastated. So there should be strong and effective legislation on this

matter.

111

3. Free education at all level should be given to all Nigerians especially the

children and youths, just as it exists in many western countries. This will

reduce the financial burden on parents who are also the workers in the

country.

4. Government should make it possible for Nigerian workers to buy houses, cars

and other necessities of life on mortgage bases. This could be done in

partnership with the government and other financial institutions. Any credible

workers should be guaranteed by government, methods of payment

established and spread over years, depending on the workers status and year

of retirement.

5. There should be a sustainable welfare scheme for all the categories of

workers. It should not be assumed that ones salaries have been paid to

workers, any other thing concerning the workers welfare has been taken care

of. The management should not ignore issues like emergency assistance in

cases of loss of direct relation, natural disaster, job security etc. Other issues

that should be taken care of include insurance, health welfare scheme

furniture allowances etc.

6. There should also be a way of rewarding efficiency at work so that other

members of the staff may start to envy those rewarded and through that may

change for better. There should be gifts in form of physical things or official

commendations for any member of the staff found to be the best among his

colleagues within a given period of time.

112

7. Promotion and conversion has also been identified as another motivational

factor. Workers should be promoted as at when due. A returnee member of

staff who came back from training and has acquired additional qualifications

should be posted to the relevant department. And acting appointment given

pending the availability of vacancy for him. Adequate promotion

opportunities should be provided to all cadres who undergo various training.

Stagnation should be avoided.

These recommendations made cannot be said to be exhaustive, but it is

believed that if they are implemented, it will help to boost the morale of the

workers and lead to high productivity of workers in the country.

113

BIBLIOGRAPHY

BOOKS.

Abba, N.C (1997), Public (personnel) Administration. Enugu: Joen Publishers.

Adams, J.S (1965), Injustice in Social Exchange in L. Berkowitz (ed)

Advances in Social Psychology. New York Press.

Ali, A. (1996), Fundamentals of Research in Education. Awka: Meks

Publishers (Nig).

Beach, D.S (1980), Personnel Management of People at Work. New York:

Macmillian.

Cohen, L. and Manion (1980), Research Methods in Education. London:

Groom helm.

Cole, G. (2005), Management: Theory and Practice. (6th ed) Uk: J.J.

International, Padstow, Cornwall.

Croft, Liz (1996), Management and Organization. London: Bankers Books

Limited.

Damachi, U.G. (1986), Industrial relations: A Development Dilemma. In

U.,G. Damachi and H.D. Seibel (eds) Management Problems in

Africa. London: MacMillian.

Dunkan, W.J. (1978), Organizational Behaviour. Boston: Houghton Miffing

Company.

Dunlop, J.T. (1949), Collective Bargaining: Principles and Cases. Chicago:

Irwin.

Ezeani, E.O. (2005), Fundamentals of Public Administration. Enugu: Zik-

chuks Press.

Fashoyin, T. (2005), Industrial Relations in Nigeria (2nd

ed) Nigeria:

Longman.

Giliner, B H and Deci, C W (1977), Industrial and Organizational

Psychology. New York: McGraw Hill.

114

Glupeck, W.F. (1980), Management: Illinois: Hainsailable Diyden Press.

Hodgson, J.D. (1973) “The Survival of Collective Bargaining” in Richard L.

Rowan (ed), Collective Bargaining: Survival in 70‟s Philadelphia:

University of Pennsylvaian Press.

Kinicki, A. and Williams, B.K. (2003), Management:A Practical Introduction

Boston: McGraw-Hill.

Koontz, H, O‟Donnel, C and Weihrich, H (1983), Management. London:

McGraw-Hill International Books Company.

Mali, P. (1978), Improving Total productivity. New York: McGraw-Hill Book

Co.

McGregor, D. (1962), The Human Side of Enterprise. New York: McGraw-

Hill Book Co.

Moorhead, G. and Griffin, R.W. (1995), Organizational Behaviour:

Management of People and organizations. Boston: Houghton

Miffin.

Nwachukwu, C.C. (1998), Management: Theory and Practice. Onitsha:

African Fep Publishers.

Nzeribe, C.G.O. (1991), Current Issues in Public and Local Government

Administration. Enugu: Fourth Dimension Company.

Ogonu, C.N. and Anugwom, E.E. (2006), Research Methods in Social

Sciences. Enugu: Fourth Dimention Publishing Co. Ltd.

Onah .F.O. (2008), Human Resources Management. (ed), Enugu: John Jacobs

Classic Publishers Ltd.

Osuala, E.C. (2005), Introduction to Research Methodology (4th ed) Nigeria:

Cheston Agency Ltd.

Osuji, O, (1985), Human Resource Management in Industrial and Business

Organization. In Nwosu H. N. (ed) Problems of Nigerian

Administration. Enugu: Fourth Dimension Publishing Co. Ltd.

115

Papola, T.S. (1970), Principles of Wage determination: An Empirical Study.

Somalia, Bombay-India.

Pigors, P. and Myers, C.A. (1984), Personnel Administration: A Point of

View and A Method (9th

ed) Singapore: McGraw-Hill International

Book Company.

Pinder,C.C.(1984), Work Motivation. Glenview IL: Scott, Foreman.

Rosenberg, J.M. (1978), Dictionary of Business and management. London

John Wiley and Sons Ltd.

Schultz. G.P. (1951), Pressure on Wage Decisions. USA (Cambridge): M.I.T.

Press.

Scultz, D. (1978), Psychology and Industry Today. London: John Wiley and

Sons Ltd.

Shubin, J.A. (1980), An Introduction to Business and Industry. USA: Barnes

and Nobles Books.

Ubeku, A.K. (1985), Personnel management in Nigeria. Benin City: Ethiope

Publishers.

Vroom, V.H. (1964), Work and Motivation. New York: Wiley Press.

Yesufu, T.M. (1962) Introduction to Industrial Relations in Nigeria. London:

Oxford University press.

Zolthitsch, et al (1970), Wages and Salary Administration. 2nd

ed) Cinncinah

Ohio: South Western Publishing Co.

CONFERENCES.

Ayoade, F.A.A. (1992), The Development of Democratic Local Government

in Nigeria. Seminar on Local Governments in Nigeria and the United States,

Organized by UNC Chrallotte and OAU Ile-Ife.

Ejimofor, C. (1982), Classical Theories of Motivation and the Nigerian

Environment. Paper Presented at the National Conference on

Management. At University of Nigeria, Enugu Campus.

Ocho, L.O. (1982), Factors that Affect Workers Attitude to Work. Paper

116

presented at the National Conference on management, at University

of Nigeria, Enugu Campus.

Okpara, E. (1982), How can We Motivate the Nigerian Workers. Paper

Presented at the National Conference on Management, at University

of Nigeria, Enugu Campus.

Onwumere, J,U, (1982), Factors that Motivate female labour Forces in

Nigeria. Paper Presented at the national Conference on

Management, at University of Nigeria, Enugu Campus.

JOURNALS

Adeyemo, D.O. (2005), Local Government Autonomy in Nigeria: A

historical Perspective. Journal of Social Sciences, Vol. 10 No

2.pp79.

Alugbuo, M.A. (1981), Job Evaluation and Payment System. Journal of

Institute of Personnel Management, Vol. 8 No 2, April-June.p6

Armstrong, M. and Muritis, H. (1970). Salary Administration Practice Guide

for Small Scale and Medium Sized Organization. (Management

Survey Report) British Institute of Management Foundation. Vol.

1 (No 36). P36.

Ifechukwu, J.A.O, (1977) Work Attitude in Nigeria: Management in Nigeria.

Vol. 13, No 18, Oct. P15.

Maslow, A.H. (1943) A Theory of human Motivation. Psychological Review,

July.

Nelson, E. (1999), Work Week: A Special News Report About Life on the Job

and the Trend Taking Shape There. The wall Street Journal,

February, 6

.

Fachoyin, T. (1982), Emerging Trends in Collective Bargaining in Nigeria.

Perman 9 (1) (Jan-June). Pp26-27.

NEWSPAPERS/MAGAZINES

Kieble, D.S. (1983), Wages and Administrative Accountability. Business

Times, February.

117

WEBSITE.

Posti, C. (2005), Motivating Your Employees for Higher Productivity. O and

E Edge. http://www.oandp.com/articles.

Sunken, Sandra (2008), Motivating Your Employees Can Increase

Productivity. Ventura Country: http://www/vcstar.com.

118

QUESTIONAIRE.

Department of Public Administration

And Local Government.

University of Nigeria, Nsukka.

22nd

September, 2011.

Dear Sir/Madam,

This research is on the Effects of Wage Incentives and fringe benefits

ob the Productivity of Workers of Enugu State Local Government Service

Commission.

The research is purely an academic exercise in partial fulfillment for

the ward of Master of Science (M.Sc) degree of University of Nigeria

Nsukka.

Please Supply answer honestly without bias as all the responses will be

treated in strict confidence and utilized solely for the purpose of the research.

Thanks you

Yours faithfully,

Odoh, Felix. A.

119

SECTION A

TICK WHERE APPROPRIATE IN THE BOXES PROVIDED

1. In what department are you: a. manpower Development and Training

b. Planning, Research and Statistics c. Finance and supply d.

Personnel Management

2. How many years are you: a. 21- 30 b. 31- 40 c. 41- 50 d.

51-60 e. 61 and above

3. Are you married a. Yes b. No

4. Educational Qualifications a. FSLC b. SSCE c. OND d. NCE

e. HND f. DEGREE

5. How many years have you served in this commission? a. 0-10 years b. 11-

20 years c. 21 – 30 years d. 31- 35 years

6. What is your salary grade level: a. 01- 6 b. 07 – 10 c. 12 -14 d.

15 – 17

( )

120

SECTION B

TICK WHERE APPROPRIATE IN THE BOXES PROVIDED

S/

N

Questions Strongly

Agree

Agree Strongly

Disagree

Disagree Uncer

tain

1 Salaries/wages of Enugu State local

government service commission

between 1999 and 2007 were

regular

2 More than 12 months arrears of

salaries were being owned to

workers between 1997 and 2007

3 Workers were prompt and

committed to their duties

4 The Salary structure of Enugu state

local government service

commission is attractive

5 The Salaries/wages being paid were

adequate

6 The Salaries of the commission

reflected the economic realities of

the time

( )

121

7 The salary structure of the

commission was the same with that

of other government establishment

in the state

8 Insurance, health welfare scheme,

furniture allowance, housing loan,

car loan etc were given as fringe

benefits to workers

9 Annually, some percentage of

workers were granted motorcycle

loan, in-service training to academic

institutions with pay

10 The fringe benefit paid to workers

were satisfactory

11 Granting additional fringe benefits

to workers will boost their morale

and lead to improved productivity

12 Promoting you makes you put more

efforts on your duties

13 You were promoted as at when due

14 Financial incentives motivate

122

workers more than non-financial

incentives

15 Non-financial incentives motivate

workers than financial incentives

16 All the workers of the commission

are members of National Union of

Local Government Employees

(NULDE)

17 Salaries, allowances and other

fringe benefits were determined by

the state government

18 Salaries, allowances and other

fringe benefits were determined by

collective bargaining ie the

commission and NULGE

19 Irregular and meager salaries persist

in the commission because of lack

of collective bargaining.

123