CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Organization is the most significant and integral point of administration.  Without proper organization, administration is not possible.  Thus organization is important to every administrative action. For no administrative action can be implemented without an organization.  Therefore, no organization can exist without people or human resources to pilot its affairs.  People or human resources have been identified as the core element in an organization.

The concept of organization has been variously defined, for instance, Waldo (1978) defined it as “the structure of authoritative and habitual personal interrelations in an administrative system”.  Organisation has also been defined as “social units deliberately constructed and reconstructed to seek specific goals” (Quoted in Makae and Pitt. 1980).

Gulick (1937) defines organization as a formal structure of authority through which work sub-divided are arranged, defined and coordinated for the designated objective or goal.  As it were, individuals who created an organization in order to achieve some specific aims and objectives in turn, the organization attract individuals who wish to become members for the purpose of their own need for money, interest status and symbols.

Organization is said to be a holistic of both human, capital and material resources with the aim of putting their resources together to meet goals and objectives.  Ideally an organization should seek to accomplish all its set objectives.  However, salary is one of the first and basic fundamental human needs.  This is because the immediate problems confronting a school graduate or a new applicant is how to secure a good job so that he can earn a living.  Therefore, salary administration, means a method and process that any organization uses for compensating their workers for service rendered.  Salary is also a process of determining monetary reward for service rendered by the employees to an organization.  In a nutshell, salaries and wages administration is the establishment and implementation of sound policies and method of employee”s compensation.

On productivity, the need for productivity improvement exists virtually in all countries of the world whether developed or developing countries like Nigeria etc.  The primary reason for this, is precisely because of increased productivity and performance and economic growth.  Consequently, industrial development effort will come to naught unless a nation”s productivity also improves in the developing countries.  It is generally accepted that salaries and wages have to bear some relationship to productivity.  The theory is that wages cannot diverge significantly from productivity without causing either inflation or unemployment.  The implication is that a dynamic economy with full employment and no inflation might be an achievement in the performance of the organization. 

1.2  STATEMENT OF THE PROBLEMS

The usually enhanced remuneration paid to the civil servants, have been rendered inadequate by the high rates of inflation pervading the economy over the years. The civil and public services have witnessed a lot of neglect which has led to a drop in salary and wages and efficiency of both civil and public servants.  In response to this, study in the public and civil services, the employers of labour (government and private enterprises) introduce the method and process of compensating their employees through what is called salaries and wages administration.  Though, employers will impact positively on the employees morale and subsequently induce their performance.  This work is set to solve the problems of salaries and wages and performances in an organization.  This will go a long way in improving their performance and hence lead to higher productivity.  Promotion policy should be awarded as at when due.  From the analysis above, it shows that if workers” salaries and wages are equitable it will enhance the performance of the employees.  The problems of salaries and wages not paid as at when due, salaries and wages increment etc need to be solved through good salaries and wages policy. There should be no delay on annual leave, maternity leave, transport allowance, housing allowances, and medical allowances.

1.3 SIGNIFICANCE OF THE STUDY

Salaries and wages administration is one of the newest personnel challenges in modern organization.  This study hopes to provide a comprehensive document that would discuss salaries and wages administration in Nigeria and its impact on performance in an organization.  The research work is of a great importance to the employers and employees in the following ways:

(1)        To attract and retain sufficient and suitable employees that will help the organization to achieve its objectives.

(2)        To reward employees of their efforts and commitment to the

organization.

(3)        To motivate workers to a high performance.

(4)        It also reveals the extent to which salary and wages administration policy can go a long way in improving workers” performance in the organization and hence lead to increased productivity.

The employees and the employers are the beneficiaries of this study because when employees are well paid, they tend to work well by so doing, the organization is increasing  their productivity because the employees are committed to their work.