EFFECT OF INADEQUATE AND PROMPT PAYMENT OF COMPENSATION ON GOVERNMENT LAYOUTS

1.1 Introduction

Compensation is something that is obtained as employee reciprocity for the company (Rivai & Jauvani, 2009). Compensation plays an important role in any organizations that want to reach their objectives and their goals. It goes without saying that organizations which do not properly manage this aspect of human resource activity very well will have a negative impact on the total performance of their employees and impact on productivity. In most developing countries like Nigeria, Ethiopia, Kenya, there have been several studies of which very few of them focused on the retention of the university teachers in relation to their compensation packages. Organizations that have goals to achieve would require satisfied and happy staff in her workforce.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

Traditionally, salaries shall become due on the expiration of the last day of the wage period; the expectation has been thirty days or a calendar month. Payment of salaries beyond these periods is termed irregular payment. At the time of this study, several factors could be attributed to delays in payment of salaries to non-academic staff. Salaries were paid beyond thirty days or a calendar month. As such, employee work attitudes are bound to suffer since they perceive such delays as not giving due recognition to employees or their hard work not recognized.

For every organization to function effectively, human elements are required to initiate and drive its activities towards achieving her goals. This shows that employee performance is vital to the success of any organization and it’s a function of so many factors of which emolument is not an exception. Therefore, it becomes mandatory for organizations to put effective emolument structures in place in order to encourage positive thoughts towards task performance. More so, governments from across the world and at various levels accord priority attention to institutions of higher learning that produce the human resource needs of the country.

The tertiary educational institutions consist of academic and non- academic staff. The non-academic staffs are professional employees who perform the manual and clerical task in the tertiary institutions, creating and maintaining records for both staff and students. They contribute immensely towards policy formulation, implementation, monitoring and control. They play the complementary role of providing the enabling environment in attaining the objectives of their respective institutions.

Considering the role of promotion in employee development, employees will do anything humanly possible including work efforts called for to attain goals that will quench their promotion needs. The driving force becomes more intense when the need for promotion is threatening. For example, if they do not get promoted, they would lose this or that. So employers that discover this need can use it to induce behavior in the desired direction.

Salaries are pay or reward given to individuals for work done. The identified indicators of remuneration include: basic salary, wages, health schemes, pension schemes, transport allowances overtime allowances and responsibility allowances (Maicibi, 2005). It is also referred to as remuneration or the monetary or financial benefits in form of salaries, wages, bonuses, incentives, allowances and benefits that is accrued or given to an employee or group of employees by the employer as a result of services rendered by the employee(s),commitment to the organization or reward for employment.

Depending on the payment system, According to Michael, (2002) basic rate schemes tend to be job-based. A grading structure may be developed through a job evaluation scheme which is used to put jobs into an appropriate grade in the organization. Pay increases may then depend on moving up a scale, skill development, promotion to another grade, or a general up rating of pay levels. In Incentive scheme that may be short- or long-term. Schemes based on individual performance, such as weekly or monthly production bonuses or commission on sales, generally offer a short-term incentive. Longer-term schemes such as profit sharing and share option schemes may not provide as much incentive to individual workers as schemes based on personal performance.

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effect of Inadequate and Prompt Payment of Compensation on Government Layouts.

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1.3 Statement of Problems

Investigation revealed that the problems which lack of compensation have caused in the production circle of Government Layouts cannot be over-emphasized. It is clear that when a worker is satisfied he/she puts more effort. There is little or no supervisory work that goes on in the production circle, workers therefore have as they like because according to them there is no adequate reward for stressful /hard work since there is poor supervisory style in the production or service circle, production or service is now very slow thereby reducing the level of output.

There is lack of good plan and effectiveness because employees are no longer satisfied with their work in the sense that they are not sure of the regularity of their incentives and other benefits they suppose to get. Many of their customers have left the bank because of they are no longer satisfied with level of service they receive. Some of these competent workers or staff has even left to other organization where they will be highly motivated. This has reduced the level of efficiency and the standard of the banks services to the customers.

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1.4 Aim and Objectives of Study

The aim of the study is to investigate the Effect of Inadequate and Prompt Payment of Compensation on Government Layouts. In achieving this aim, the following specific objectives were laid out as follows:

1. To ascertain whether the supervisory styles of Government Layouts has any effect on compensation workers earn;
2. To investigate the influence of inadequate compensation payment of workers on government layouts;
3. To find out the factors inhibiting prompt compensation payment of workers on government layouts; and
4. To proffer solution to the problem of inadequate payment of compensation on government layouts in the area under study.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• What are the supervisory styles of Government Layouts has any effect on compensation workers earn?
• What is the influence of inadequate compensation payment of workers on government layouts?
• What are the factors inhibiting prompt compensation payment of workers on government layouts?
• What is the problem of inadequate payment of compensation on government layouts in the area under study?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There are no significant factors inhibiting prompt compensation payment of workers on government layouts
• H1: There are significant factors inhibiting prompt compensation payment of workers on government layouts

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1.7 Significance of Study

The study will help public sectors in a large measure in providing possible solution to its problems of compensation and productivity. This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

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1.8 Scope of Study

The scope of the research is focused on the Effect of Inadequate and Prompt Payment of Compensation on Government Layouts.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Definition of Terms

Compensation: A reward given to a worker or an employee to high the morale and also to higher productivity in the organization.

Productivity: A measure of low efficient given sit of resources is used to produce goods and services, simply put in the ration of output and input.