THE IMPACT OF DIFFERENTIAL WAGE RATES ON JOB SATISFACTION
ABSTRACT
This project aims at examining importance of difference in wages rate at different level of workers in an organisation. It will also look into how salaries will motivate to put in their best, to get the best outcome in an organisation. This project will make use of questionnaires as instruments to get information that will be useful for analysis as well as interpretation. Simple proportion percentage will be employed to test the validity of the responses. Finally, conclusion, summary, acid recommendation will be drawn up at the end of the research work.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Human resources are the life wire of any given company without which organisations (Banks) will not be possible. In other words, for any company/organisation to achieve maximum services or even survive, it has to motivate members of its work force through wage rate. Accordingly, it is important that employers do these things, which they hope will satisfy the derives and desire of the employees in other to ultimately induce them to work harder for maximum services. The Nigerian economy has passed through hard times lately as Neboh A. E (1996:1) wrote “the national economy has been battered by adverse balance of payment” problem, dividing oil revenue, unemployment, inflation and the depreciation of the value of the naira. This has led to a drastic decline in the fortunes of the companies. Employees have also had a ‑grapple with low standard of living, increased taxation, and dividing purchasing power. This had forced them to perpetually seek new and better employment or look beyond their income, so we will find some of them selling various items ranging from textiles, jewelleries, whose, wires, etc. The both of them are fellow workers and visitors in the office.
Significantly the employees have learnt to battle with retrenchments, lay‑offs, non‑payment of salaries and benefit lack of promotion and difference in wage rate base on their qualification etc. This situation has made it difficult to harmonize the goals of the employers with these of the employees, since the success of the organisation can ensure that the employees achieves his goals of satisfying his needs. This is known to affect stage motivation and moral negatively. Workers are always anxious to take jobs whereas they will be well paid and satisfied. The most prominent factors for job satisfaction is money and this is paid as wage rate. Wages are regular amount of money that is earned usually every work, for work or services ‑ Oxford Advanced Learners Dictionary (6th edition). In a nutshell, it is the reward for labour.
Differential wage rate is related to differences and the likes given to workers as a result of certain factors that influence a person’s perception of what his reward level should be include skills’ abilities, training and performance. A person who believes his job make a great demand of him expects more. Thus, people with high job inputs must receive more rewards than people with low job inputs or they’ll be dissatisfied C.C. Nwankwo. However, job satisfaction may mean different things to different workers. Some are satisfied with the job environment because it is very conducive; others are satisfied with the type of management and their techniques. Some others are satisfied with the nature of the job they do. The basic requirement for job satisfaction may include comparatively higher pay, an equitable payment system, real opportunities for promotion, considerate and participative management – Michael Armstrong 2001 a satisfied worker is not necessarily a high producer and a high producer is no necessarily a satisfied worker. Money in the form of pay or some other sort of remuneration is the obvious extrinsic reward. Money cannot provide most people’s wants.
1.2 STATEMENT OF THE PROBLEM
Virtually speaking, the human resources in any human organisations have been considered as the most valuable assets which ultimately account for the overall organisational success and effectiveness that is why every organisation Will always strive to ensure a well packaged and highly motivated incentives including both extrinsic and intrinsic modes of motivation to constantly facilitate the desired work behaviour from their employees. Meanwhile, the means to motivate workers to elicit the expected improved work behaviour have not been fully utilised. Although, most to ensure constant employee satisfaction, however the application of managers of various organisation have tried quite a number of methods to ensure constant employee satisfaction, however the application of these methods such as wage rate have raised so many questions, which consequently, open room for further research on their impact on worker’s attitude.
Thus, the wage rate that is satisfactory to one worker may not be satisfactory to another. So the use of differential wage rate, according to experts have been considered on the account of certain factors which include differences in skills, abilities, training and performance on the workers. Nonetheless, it is observed that workers take up jobs for various needs and which the use of differential remuneration may not be able to actualize them all. Hence, there is need to research into why workers still remain unsatisfied in spite of high wages or remuneration packages, and why do some members of the organisations feel they are still marginalized or not well remunerated, despite their high input into organisational success and goal achievement so the need for us to investigate the impact of differential wage rate on workers, most especially as applied to banking institutions has called for this research project with a view to explaining or providing possible answers to various questions regarding the subject matter.
1.3 OBJECTIVE OF THE STUDY
Specifically, the study shall seek to find out:
i. If there are differences in wage of workers (bankers precisely) in Somolu Local Government Area.
ii. If they are satisfied generally with the wage rate and other working conditions.
iii. If they are satisfied specifically because of the wage rate.
iv. If they are satisfied specifically because of other working conditions
v. If they perform effectively and efficiently because of the wage rate only.
vi. If they perform effectively and efficiently because of the wage rate alongside other factors.
vii. To proffer suggestions or recommendations based on the outcomes of the research findings.
viii. To stimulate further research in this area.
1.4 RESEARCH QUESTIONS
i. Do bankers derive job satisfaction from only the wage rate system being operated in banks?
ii. Can there be adjustments to the wage rate systems operational in the banks?
iii. Do bankers derive job satisfaction from the wage rate system alongside other factors e.g. nature of job, management, work environment and so on.
iv. Do job satisfaction really result in better performances?
v. Are bankers with better skills, training and abilities better paid than others?
vi. Are bankers who are productive given incentives such as promotions, cash, and gift items?
1.5 STATEMENT OF HYPOTHESIS
HO: Bankers do not derive satisfaction from the wage rate system operational in the bank only.
Hl: Bankers derive job satisfaction from wage rate system operational in the banks only.
HO: The wage rate system operational in the banks cannot be adjusted.
H1: The wage rate system operational in the banks can be adjusted.
1.6 SIGNIFICANCE OF THE STUDY
The quest for satisfaction has been the motive of every worker because he/she will need to satisfy housing needs, clothing needs, health care, feeding needs, esteem and so on. The study was inspired by the need to inquire and understand the intricate relationship between wage rate and job satisfaction. Findings thrown up by study will in no doubt provide useful information for the workers to enjoy incentives and promotions for instance acquiring skills and training for better performance. This will provide some extent satisfaction.
This is also significant to the Nigerian economy because when workers are satisfied, they will be in sound minds and this will affect their social life, moral life, economic life etc. positively. Whether we hold the view that performance causes satisfaction (Porter and Lawler) or satisfaction causes performance (Schwab and Cummins) it is an underivable fact that the reward causes satisfaction and satisfaction in turn tends to good performance. It will therefore inform management on how best to satisfy their workers with both wage rate and other working conditions.
1.7 DELIMITATION OF THE STUDY
This study will be limited to banks in Somolu, Lagos both junior and senior staff shall be randomly selected. The junior and senior staff shall be taken in equal proportion to give their opinion on the impact of differential wage rate on job satisfaction. Has it really satisfied workers or are there other factors necessary to satisfy workers. It is strongly hoped that the area to be covered will have no address effect on the study, as efforts would be made to explain the contents of the questionnaire in the simplest form possible. On the long run, desired information shall be obtained from the respondents of the study.
1.8 METHODOLOGY
This research work methodology will make use of descriptive research design, which will be used as follows: Population Instrument Sample and sampling procedure Analysis of the data
Population: The target population would consist of about one hundred and twenty people of the total workers of some selected banks in Somolu Local Government.
Instrument: The questionnaire would constitute the major instrument of data collection and the questionnaire consists of both ended and close ended questions.
Data Collective and Ad ministration/ Sample and Sampling:
Procedure: In cognisance of the relatively extensive nature of the banks and its activities a cluster sampling technique would be used.
Analysis of the Data: The data collected through questionnaire would be statistically analysed using simple percentage, frequency distribution.
1.9 STRUCTURE OF THE PROJECT
This research work is structured with different topics and sub topics regarding the impact of differential wage rate on job satisfaction for easy understanding.Chapter
1 ‑ Introduction
2 ‑ Literature Review
3 ‑ Methodology
4 ‑ Data Analysis
5 ‑ Summary, Conclusion and Recommendations
1.10 OPERATIONAL DEFINITION OF TERMS
In the course of writing this research work certain unfamiliar terminologies are used and for clarity, they are thus defined.
Wage Rate: It is the number of occasions within a given period of time when something happens or is done or when reward in monetary terms giving to workers after the successful completion of a specified task or job.
Job Satisfaction: When someone has pleasure or he/she is content with what ever he/she is doing for a living.
Incentive: These are things or tools used by management to increase the efficiency of work performance of an employee or employees in an organization.
Workers/Bankers: Used as an encompassing terms for all workers, earners, and management staff.
Performance: Doing something very well.