THE EFFECT OF REMUNERATION ON EMPLOYEES PERFORMANCE (A CASE STUDY OF NIGERIAN BOOTLING CO. PLC)

THE EFFECT OF REMUNERATION ON EMPLOYEES PERFORMANCE (A CASE STUDY OF NIGERIAN BOOTLING CO. PLC). The survival of any organization depends on its viability based on the acceptance productivity level of the organization. Any organization with a continuous low rate of productivity is bound to wind up in a very short time. This therefore means that the survival of an organization depends on high rate of productivity. It will be reasonable to expect that the more satisfied workers are with high remuneration, the effective they will be performing their assigned tasks. Therefore, an important component of the modern effort to improve productivity and quality of work life has been emphasized on remuneration that contains some or all the following features:  Accommodation  Money: such as salaries and wages  Use of company’s car  Free transport services  Basic amenities of life. Remuneration is a payment made as an income to an individual or firm as a result of services rendered by such individual or the firm. Policies are guild lines, rules and regulations set out by an appropriate authority towards the achievement of particular plans of action. Therefore, remuneration or wages policies are guild lines set out for the determination of wages and salaries in a given country or by an organization. (Hornby A.S 2000). Public and private sectors of the economy and as much, it is made firms to experience variation in work attitudes and employees tend to serve the sector that provides high remuneration packages. In formulating remuneration policies, it is important that through understanding of the motives that makes people to put in their best at work is recognized. The greater asset of any business organization is its manpower resources; that is the employees, therefore to get the best of the organization must ensure that their expectation are reasonably met so as to stimulate their work performance and thereby embracing company’s profitability. The establishment of a standard and equitable remuneration policy by an organization will bring about employees happiness. According to Ejiofor and Amayorh (1984), far and adequate compensation for employees is one of the most significant elements in the maintenance of a satisfied and efficiency work. In Nigeria context today, money in form of wages and salaries are regarded as tools that effect workers motivation in their various designations. Okpara (1977) gave some intrinsic and extrinsic factors he regarded as tools that effect workers motivation to perform and this intrinsic factors include potential training and development skill. Extrinsic factors include remuneration and other incentive as prestige and retirement benefit. Okpara also recognized money as the primary means of rewarding and modifying behaviour in a work situation. He also argued that some of the essential amenities like health services, water supply and other infrastructural facilities are not adequately provided. Money is recognized as primary motivation of behaviour because of insufficient provision of the essential services. However, in Nigeria absence of spectacle remuneration policies has adversely affected the state of industrial relation. It has made it possible for many manpower of labour to exploit their employees and also, it has lead to series of industrial action like strikes by the employees.  BACKGROUND OF THE STUDY A brief History of workers’ compensation. The modern system of workers’ compensation is so complex and arcane it produces considerable grief to those who must deal with it on daily basis yet these often cumbersome regulations are so ultimately vital to society they appear, in one form or another, in all industrialized nations, a look at workers’ law over the years demonstrates the failure of the historical alternatives to formal workers compensation system to meet either their goals of social justice or economic efficiency. While the orthopedics surgeon may often lament the difficult compensation case appearing in clinic, it may add some perspective to review how and why it is system became entrenched in work place.  PURPOSE OF THE STUDY The purpose of this study is to examine the remuneration system in an organization as a motivational element and how the remuneration system affects the employees’ productivity, labour turnover rate and general job satisfaction of the workers. The study is also aimed at examining employer manipulation of employees’ remuneration in order to direct the employees productivity towards the attainment of organizational goals and objectives. Finally, suggestion and recommendation would be made on how organization can stimulate employees’ performance and optimally reduce to its minimal loss of raw materials and other in line activities so as to maximize the organization profitability.  OBJECTIVES CONCEPT OF REMUNERATION ON EMPLOYEE’S PERFORMANCE Remuneration is an element of financial reward used to appraise employees which ultimately motivates them to work with zeal and enthusiasm. Remuneration is a catalyst that accelerates productivity. It is connected to performance where the inclination to carry out job task is determined by motivation. A clearly defined pay system is essential in improving the performance of a business by giving an incentive for the effective performance of individual employees (Helen Jaja 2011). This research study main focuses on the relationship between remuneration and motivation. Yermack (2004) has asserted in his study that all the business organizations acts like a profit maximization institution, so they put efforts to improve the performance of employees by motivating them. This motivation ultimately helps the organization to increase productivity level therefore work motivation is interrelated with, job satisfaction often money can be determined as the means through which a man can fulfill his basic needs and requirements. Remuneration and basic income of an individual strengthen his purchasing power. Therefore it is important for the corporate executives or managers to be aware of the economic and social background of employees so as to offer good remunerations to develop their talent enhance their skills and motivate them to work. The general meaning of remuneration is the basic salary or pay of employees, but in the broader sense, remuneration comprises of salary, fringe benefits, compensation, bonus, commissions, employee stock option, etc. FACTORS THAT INFLUENCE EMPLOYEESPERFORMANCE FEED BACK Feed back from the management that effectively communicates the status of the person’s performance, based on measurable guidelines and tools. ENVIRONMENT Acceptable working conditions, such as enough time and equipment to perform the job effectively. CLEAR GOALS AND EXPECTATIONS When every one understands the targets and expected outcomes, it is easier to take steps to get there and measure performance along the way. Organization without clear goals is more likely to spend time on tasks that do not impact result. RIGHT TOOLS AND EQUIPMENT You need to have the right tools, equipment and resources in order to perform well. Absence of these resources could contribute to a dip in performance level. Just as a driver needs a vehicle in operating, employees must have the tools and equipment necessary for their specific job. This includes physical tools, suppliers, software and information outdated equipment, or none at all has a detrimental effect on the bottom line. TECHNICAL TRAINING If employees do not have the necessary capability, skill or knowledge to do their job, their performance suffers. Training will be an option when it has been firmly established that inadequate knowledge or skill set is impairing employee’s performance. However, it is important to identify the factors that are affecting the employee before choosing the best training options, e- learning programmes have a quick development time and can be launched across the organization within a short duration e-learning courses also offer employees the flexibility to upgrade their knowledge and skills at a time is convenient to them. JOB FIT Employee must be qualified to perform a job in order to meet expectations. The best fit for a job is identified by skills, knowledge and attitude toward the work. If an employee is in a wrong job for any reasons, result will suffer. WAYS TO KEEP EMPLOYEES MOTIVATED Communication As a manager, communication and channel of communication matters a lot in an organization, written and distribution of memos, news letters, holding training classes, regular meetings, all these should be used to convey the vision of the organization, as a manager, spend time personally asking your employees what they knows and think if their responses show they are unaware or confused, stop and redesign the messages and the ways you convey them. Get them Engaged You don’t expect much from employees who don’t feel connected. Everybody talks about empowerment, but that is past, successful companies known today all have a lot of ways to yet employees at all level engaged in planning and decision making, that way they own the things they do. And owners are always looking to improve what they do. Practice Random of Kindness As an employer remember to say thank you in all kinds of ways. These don’t have to be orderly formal, sometimes a pat on the back goes a long way, just make what ever you do personal and from the heart. Catching people doing things right is a powerful philosophy and motivation. Make work Fun As an employer, you must create a leisure time for employees to relax and catch fun by enabling them to enjoy work they do not just for the income they earn, organizing a sort of get together either monthly or annually will motivate the workers to annually will motivate the workers to perform well. Coach for Success Everyone wants to do well, and most want and need guidance to do that, paying attention to the work of either giving them clear feed back and showing them how to do better when needed is very motivating. Instead of waiting for annual review, daily in real time is always better.  STATEMENT OF THE PROBLEM Right from the beginning, management of organization has always been faced with the problem of how to motivate works to greater performance with a view to increasing productivity. Even up till now the problem still persist in most public and private organizations. Many organization lay emphasis on increased productivity without considering the needs of the workers. They are however ignorant of the fact that organization cannot survive without workers and workers themselves cannot be productive if their needs are not met. Employee’s productivity, good turnover and overall performance have been found to be realized as a result of motivation and stimulation received through effective remuneration packages many workers go to work in anticipation of some financial reward like wages, salaries in order to sustain a living. However, where employees’ financial reward is unfavourable, they will not be motivated to put in more effort in their work and this may lead to job dissatisfaction, which will later lead to poor performance. In some cases insufficient remuneration packages have lead to services of industrial strike or action by employee. For instance Nigerian Medical Association (NMA) went on strike over salary arrears, also the Academic Staff Union of Universities (ASUU) on different occasions went on strike and lot of strike action have been embarked upon by employees of both public and private sector.  RESEARCH QUESTIONS  How contended are employees with the present remuneration standards?  Does remuneration variation increase the efficiency of employees?  Will non-financial incentives increase employee’s performance?  Is remuneration positively related to job satisfaction?  FORMULATION OF HYPOTHESIS Ho: There is no significant relationship between present remuneration standard and employees’ performance. Hi: There is significant relationship between present remuneration standard and employees’ performance. Ho: There is no relationship between remuneration variation and efficiency of employees.