CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The success and survival of any organisation are determined by salaries and incentives paid to worker (Lawler 2011). Salaries, allowances and incentives are motivational factors which are used to determine the level of workers commitment and attitude to work. According to (Croft (2012), motivation can be defined as “impulses that stem from within a person and lead him to act in ways that will satisfy those impulses. Workers motivation is essential since there is a direct relationship between motivation and productivity. Sunken, (2008) holds that motivation and productivity are twin concept in organisational development. First, motivation works as the means towards attaining productivity as an end.Secondly, motivation is the best cause to reach productivity as favourable effect and lastly motivation is the stimulus to trigger productivity as a response. People need motivation just as pieces of equipment need fuel and operators. Only through motivation can managers help their workers generate the excellent performance that enables an organisation to boost it optimum productivity. Therefore to say that managers motivate their workers means that they do those things which they hope will satisfy those drives and desires and induce the subordinates to act in a desired manner.
As noted by Dixit and Bhati(2012), poor salaries, allowances and incentive packages have been a major factor affecting employees commitment and productivity.Alugbuo (2009), asserts that people work to get reward for their efforts. The exchange of labour for financial reward is the heart of pay progress. People do not put forward their best unless they get reward for their work based on what the current economic and social climate dictates as fair. Ubeku (2011),asserts that the payment of good salaries and wages is fundamental to the increase in the prerequisite for effective performance. In order to motivate employees to put maximum effort, it is essential that their various needs, especially as it concerns their salaries, allowances and incentives be satisfied, thereby promoting organisational productivity (Armstrong, 2010). Productivity can only be enhanced if the employees are well motivated through adequate allowances and incentive packages that are proportional to their performance.
Nigeria Civil Service is the most important sector of the nation’s economic system (Agba, 2006). The Nigeria civil services have been observed to be performing abysmally poor in the political and socio-economic transformation of the country. There have been persistent decline in the productivity of the civil service. Efforts in transforming the civil service and other government institutions for effective and efficient service delivery have no doubt, in recent times, become one of the most pressing fundament pre-occupations of government. It could be recalled that the idea of salaries, allowances and incentives is as old as the colonial civil service (Isah, 2017). The colonial masters paid civil servants salaries and provided incentives for them ranging from decent accommodation at Government Reserved Area (GRA), official cars with drivers, cooks, stewards and gardeners (for white civil service administrators) which they did not have to pay from their salaries. The benefit provided were intended to make them productive. These benefits were inherited by indigenous civil servants until government felt that the cost of providing and maintaining them was becoming enormous (Ajieh 2010). For instance, between 2001-2003governments spent N186, 512, 385:00 on renovation of government houses (McConnll, 2004). This indicates that substantial amount of money is being drained on maintenance of residential quarters just for the comfort of few Nigerians. In view of the above, a committee on monetization of fringe benefits in the Federal public service was set up by President OlusegunObasanjoon November 11, 2002 under the chairmanship of the then Secretary to the Government of the Federation, Chief U. J. Ekaette (Obembe, 2005). Based on the recommendation of the committee, approval was given by the president for the monetization policy to take effect from October 1, 2003.
In Nigeria, the salary structure falls below the level to maintain efficiency of workers. The salary structure is not in line with the economic realities. The most important obligation owed by an employer to an employee is to pay his or her salaries. The negotiation for a higher emolument for workers is carried out by the labour union (Cole 2009). Principal among the tools that can be used to improve employees productivity are allowances and incentives. Allowances are generally a fixed amount given on a regular basis to meet some particular requirement (Kristen, 2009).Incentives according to Banajoko (2010) is defined as awards given out when predetermined objectives have been attained within an organization. It could also be regarded as payment made to employees on the basis of the amount of output or results achieved. The productivity of civil service employee is known to be relatively low compared with that of their counterparts in the private sector. When a worker believes that equity does not prevail, he or she is bound to withhold a measure of his productivity in order to restore equity. This usually led to strike actions by workers on different occasion, and this does not augur well for the economy of the nation. Poor conditions of service remain the bases for industrial action in the civil service and it also contributes to inefficiency and low productivity.
In recognition of the importance of paying salaries and allowances, the federal government of Nigeria in 2018 observed that productivity of workers was at the lowest ebb because the salary payable to workers was notliving wage. Put differently, the minimum wage of N18,500.00 applicable in the country was not in consonant with the economic realities of the time. The organisedlabourglamoured for a living wage of N66,000.00 and the government constituted a tripartite committee headed by the Minster of Labourand Employment, Dr Chris Ngige. The committee consultated and deliberated on what ought to be a living wage for workers in the light of the economic realities of the country. This is in acknowledgement that there is a correlation between a living wage and productivity.
1.2 Statement of the Problem
The civil service is charged with the responsibility of executing the policies and programmes of government. It is expected to take steps to give effects to government policies and programmes with overall intent to address numerous and varied needs of the masses. These government owned institutions are manned by trained personnel from various disciplines who on daily basis strive to meet their objectives. In like manner, the AkwaIbom State Local Government Service Commission has the same mandate of executing government policies and programmes to meet the needs of the rural populace. Nevertheless, it is regrettable that civil servants are often times neglected in matters affecting their welfare and morale. It has become a custom in Nigeria for newly elected Executives especially State Governor to neglect on the workers immediately after their inauguration through non-payment of their monthly salaries or half payment of salaries at irregular basis. Those that try to pay do so in the 2nd and 3rd week of the succeeding month. Irregular promotions, non-payment of leave allowance, lack of recognition of workers achievement and poor and indecent office accommodation and council environment add up to the woes of the local government system in AkwaIbom State. Sometimes, certain allowances of civil servants are withdrawn on grounds of poor economic situation.Under this ugly condition workers tend to wonder why such terrible treatment should be meted to them as they have remained the engine room of the government. All these tend to dampen workers moral and productivity. Currently, there has been poor performance, lack of dedication to work, lack of commitment, poor attitude to work as many civil servants become truant in the workplace and few patriotic workers perform their functions grudgingly. It is no longer news that civil servants in Nigeria usually proceed on strike to press their demands for improve salaries, payment of allowances, provision of working tools, improvement in the condition of service and incentives among others and AkwaIbom State Local Government Service Commission is not an exception. The lack of welfare scheme in the civil service may be attributed to many factors but the most prominent is the failure to appreciate the role of salaries, allowances and incentives in arousing workers interest in their job as well as ensuring their sustained commitment to work for organizational productivity.
