1.1 Introduction
Salary increment is often an integral function of the organization’s human resources department, but in general, the larger the organization, the more likely it is that it will be handled by a separate department (Muo, 2007). Attractive Salaries is a Valuable tool and play an important role to increase employee’s performance and also increase the productivity of an organization (Azar et al., 2013). Today organization can easily change their material, needs, goods and services to other organization, or to other countries. But the only one resource which is not easily exchangeable is human resources. Human resources or human assets mean the workers or the employee of any organization. So the motivation is main factor that affect the human resources of the organization (Turkyilmaz, 2011).
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.
1.2 Background of Study
In any establishment either private or public, the impact of salary increase cannot be over-emphasized. To Nigeria Railway Corporation Enugu, satisfactions of the public and standard of living have been their major concern. The main objective has been the development and utilization of local raw material (coal) and mobilization of fund for the purpose of satisfaction of the Nigerians.
In the bid to actualize this, the corporation finds it difficult and almost impossible to pay its workers the exact salary and pension at the appropriate time. This as a result, leads to inefficiency since the workers are not motivated to carry out their functions effectively. Facilities provided by the government are not being used and when it is used, they are not maintained properly, and the situation hinders development process.
The whole society is affected negatively by the poor performance of the railway corporation. A business which involves bulky goods are slowed down because of the inadequate facilities used by the corporation in their operation. This as a result may lead to scarcity of some important goods. The carriage of bulky goods by trailer is now move preferable than the use of train, since the railway corporation is inefficient. Goods that are supposed to be carried by trains are now being carried by vehicles, which thereby creates obstruction in our roads.
Presently, the corporation is not generating accurate revenue for the society, because the people who make use of the railway transportation are few. This discussion so far, means that the Railway Corporation is unable to achieve its objectives.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Salary Increase on Employees Performance.
1.3 Statement of Problems
Investigation revealed that workers attempt to increase their salaries and wages directly by negotiating through a trade union, whereby the trade union threatens their employers to go on strike if they refuse to increase their salaries and Salary increases.
This economic impact of salary increase on workers effects many workers both in the public and private sectors, and it can lead to increase in the rate of unemployment and thus, inflation.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Salary Increase on Employees Performance. In achieving this aim, the following specific objectives were laid out as follows:
- To identify and correct the environmental factor that affects the salary increase of workers;
- To examine the effect of salary increase among Nigerian workers; and
- To highlight the problems that are inherent in increasing the salaries of workers who work in the public sector.
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:
- Does environmental factor affect the salary increase of workers?
- What is the effect of salary increase among Nigerian workers?
- What are the inherent problems that are impact salary increment of workers who work in the public sector?
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: Salary increase is not helpful in attracting employees in an organization
- H1: Salary increase is helpful in attracting employees in an organization
Hypothesis Two
- H0: Records on workers demonstration action cannot help to rule strike action off.
- H1: Records on workers demonstration action can help to rule strike action off.
Hypothesis Three
- H0: There is no direct relationship between Salary increase package and employee level of commitment.
- H1: There is direct relationship between Salary increase package and employee level of commitment.
1.7 Significance of Study
The significance of the study is to provide the industrial sector with useful information needed to run smoothly and by virtue of this study income and expenditure of an industrial sector would be determined, in order to aid most industrial sectors in decision making and as well fight unnecessary losses. In otherwise it tells whether more workers are to be employed or deployed. It will also be beneficial to entrepreneurs (workers) by equipping them with knowledge and skills needed to tackle any pressing issue of in any organizations they find themselves.
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.
1.8 Scope of Study
The scope of the research is focused on the Impact of Salary Increase on Employees Performance using Halliburton Company in Port Harcourt, Rivers State as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- 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.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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).
1.10 Definition of Terms
Salary: Salary can be defined as a fixed payment at regular interval for service. It is a payment made to workers for service rendered.
Wages: Wages are payment received from becomes obvious that man has to labour himself to the point of satisfaction in order to met up with the necessities of his life either in private or public sector as the case of railway corporation is concerned.
Salary Increases: Salary increases are payment other than wage or salary made to an employee such as pension, leave bonus insurance, etc.
