THE IMPACT OF REMUNERATION ON ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF GREATER HEIGHTS NIG. LTD, UYO)
1.1 BACKGROUND OF THE STUDY
Over the years remuneration has been a bone of contention both in the private and pubic organizations. This has generated a lot of argument, discussion and interest to an extent that it has become a highly sensitive topic. It is very necessary that employees are provided with conducive working atmosphere and motivational incentives. These serve as a stimulus to stir them (employees) to achieve organizational set targets and objectives efficiently and effectively.
The essence of remuneration is to provide a good platform for equity and fairness it provides a challenging environment and increases employees and organizational productivity. Extrinsic needs of workers at all levels are met by the compensation and remuneration which ensures that the intrinsic needs are adequately provided for. This is because it develops organizations’ integrated policy. Thus, it is an important signal of organization culture and value so it’s important to the successful recruitment and retention of high caliber work force with adequate knowledge, skill and ability to support the organizations strategic goals. Remuneration is given to employees in accordance to their contributions, skill, competence and market worth.
Therefore, the success of an organization is based on good compensation and remuneration in order to increase organizational, productivity.
1.2 STATEMENT OF PROBLEM
The subject matter for the work was choosen so greater attention be accorded to the issue of efficiency vis-à-vis productivity which should ensure proper understanding and focus.
The administration of companies requires knowledge of the performance of workers in order to be able to measure operational efficiency.
The employees tend to compare their remuneration and working conditions with that of other organizations and when they feel theirs is little, they tend to put a lazy attitude towards work. However, in any organization, the availability of adequate remuneration would increase the performance of employees thus reduce labour turnover in the organization.
1.3 OBJECTIVES OF THE STUDY
The aims and objectives of this study include:
i. To ascertain the possible effects of remuneration on the performance of employees in an organization.
ii. To critically examine the impact of remunerations on organizational productivity.
iii. To ascertain the need for management to create a conducive working environment by providing both physical and psychological incentives to make employees committed to organizational goals.
iv. to analyze the available compensation and remuneration packages in the organization and how they affect the commitment of the employees to the organization and to know if the employees are faced with issues which tend to reduce their levels of productivity.
v. To enable the researcher suggest solutions to such problems.
1.4 RESEARCH QUESTIONS
The basic research question for this work are:
1. How do employees and workers perceive remuneration in the organization?
2. What factors influence organizations in determining remuneration packages?
3. Does remuneration have any positive impact on organizational productivity?
4. Can poor remuneration lead to labour turnover in organizations?
1.5 RESEARCH HYPOTHESIS
(a) Ho: Remuneration does not have any impact on organizational productivity.
HI: Remuneration has impact on organizational productivity.
(b) Poor remuneration does not lead to labour turnover in organizations.
HI: Poor remuneration leads to labour turnover in organizations.
1.6 SIGNIFICANCE OF THE STUDY
This essay will assist organizations understand the impact of remuneration on organizational productivity. It will assist the government to develop appropriate policies for remuneration to employees and to increase organizational productivity. It hopes to ensure that the welfare of workers is treated well to make them more efficient and effective.
It will provide analysis and would also serve as resource material for future researches.