1.0 Introduction
1.1 Overview
In Nigeria and all over the globe, wage classification forms an essential part of the general condition of service that employers of labor make available to their employees. Employers sometimes fix wage artificially or negotiate with prospective emp0loyees individually and then strive hand to convince employees to accept that their salary are both fair and equitable.
Job evaluation seeks to determine the value of a job relative to other job within the same organization. The importance of that job to the organization as a whole can whereby be established so as to be placed in the appropriate position within an overall job grade structure. Job evaluation is not done in isolation.
Employee's salaries should primarily be determined by the grade of job, followed by the worth of each job, and also considering the individuals worth. It is recognized that the three most important factors used in determining rates of job payments are:
- What the firm can afford
- Existing market rates payable for similar work and
- The worth of the job in relation to corporate objectives.
In some business organization in Nigeria, relative worth of jobs are usually determined by the application of objective criteria or systematic principles, They are more often than not, determined by a host of extraneous and sometimes subjective factors such as kinship relationship, the impressions of top manager or the appearance or personalities of their prospect employees, the organizing power of trade unions, the bargaining skill of prospect employees, the impressions of management about the prevailing wage structure in the economy and so on. These approaches to the determination of wage rate may generate intense dissatisfaction among employees and invariably a fall in morale.
Job evaluation is an attempt to ascertain the worth of a job in order to attach monetary value to it.
This research is therefore intended to expose the instability inherent in firms who do not apply the job evaluation techniques in ascertaining or rather establishing their wage/salary structure and also recommend ways of ensuring proper wage/salary administration for effective performance.
In assessing the value of any job, management generally considers the general factors of skill, responsibility efforts and working conditions. But in addition to the above, the worker would add, the type of supervision received the congeniality of the work, the steadiness of the work, the amount of overtime etc.
Although job evaluation spurs grievance concerning wages, it covers serves to provide a definite frame work of wage structure.
This is why job evaluation should be handled with caution, it could either increase or damage workers moral.
This study will attempt to address issues relating to job evaluation likewise wage/salary determination. As a matter of fact, effort will be made in this study to provide answer to the following question.
- Are the fringe benefits relative to the employees output?
- Is there any equity between the salaries the workers of Nigerian bottling company receive and their work output?
- Is the job evaluation technique in use suitable for workers welfare?
1.2 About The Case Study Organisation
Nigeria bottling company (NBC) is the producers of coca-cola soft drink. Coca-cola is world leading soft drink sold in more than 1-5 countries. Not less than 250 million bottles are consumed everyday in all parts of the world form Argentina and New Zealand in the south to Canada in the north and Mexico to Nigeria.
The company first came into Nigeria in 1953 with the establishment of its first plant in Lagos. This marked the beginning of an interesting story of growth and development especially during the past 10 years.
Today, Nigeria bottling company is Nigeria's number one bottler of soft drink, selling more than 6 million bottles per day, a figure, which is still growing with the continuity expansion of the existing 16 plants and with the opening of brand new plants in various parts or Nigeria.
The popular coca-cola ranks top among all the cola brands in the oligopoly whereas fanta is by far the number one best seller in the orange segment and sprite, the most widely sold lemon drink in Nigeria.
Other products bottled are fanta tonic, fanta soda and krest bitter lemon.
The success of coca-cola has brought with it the development of a number of sisters industries all countries all contributing to the growth of the economy such as the Delta Glass company in Ughili which supplies the millions of bottles required to keep the lathe bottling company in operation and crown products factories in Ijebu-Ode and Kano which manufacture the metal crowns to seal the bottles.
It is interesting to maintain that Nigeria bottling company plc is the largest manufacturer of carbon dioxide used to carbonate the favorite soft drink.
The organization is made up of different departments. There is the marketing (distribution department, the production department, administrative as well as total quality unit. Each of this department is under a department manger who reports to the plant manger.
1.3 Statement of the Problem
Workers morale and zeal for increased production exist when they know their efforts are responsible compensated or rather when they notice a relative relationship between permanence and rewards unfortunately, they often complain that there is no equity between their output and compensation.
1.4 Research Questions
This research is aimed at providing answers to the following central issues addressed by the research work.
Example;
- Is there any equity between the salaries received by Nigerian Bottling Company workers and their productivity?
- Is the job evaluation method in use suitable for determining the value of job?
1.5 Aim / Purpose of the Study
Job evaluation schemes are valuable management tools that dare stood the test or time and gradually, but increasingly employed by different organizations throughout the globe. It is against this background that this projects work is conceived, this research is aimed primarily at addressing the under listed issues.
- To determine whether the fringe benefits received by the employees are commensurate to the output.
- To determine management values and workers values in application of job evaluations
- To determine whether the working environment is suitable and acceptable by the workers.
1.6 Significance of the Study
Like every other research work, this study would be handed to organization intending to ascertain the work of their employee's job with the aim of employing appropriate technique of doing this.
It is also pertinent to not that the outcome of this study would help the personnel departments to perform their job more effectively.
Infact, it would also serve as a guide in general administrative planning in both organizations.
Finally, this study is also important to students for further research work.
1.7 Scope and Coverage of the Study
The activities of two organizations under study are multidimensional. This research work is neither intended to cover the entire plants of Nigeria bottling company operation but it is aimed at focusing on specific areas within Aba with particular emphasis on the role of job evaluation in determining the wage/salary structure or organization.
For the purpose of this work attention would be paid on how the various staff in every unit in the organization remunerations are based, particular attention would be given to the activities of the personnel units of these organizations since the burden of job evaluation falls on them.
This does not mean that the other units would not be looked into job evaluation is not the same responsibility of the personnel unit and as such as cannot be done in separate or other section in the organization.
1.8 Limitations of the Study
In these limitations of the study, no research work can be carried out without certain constraints either in form of finance or logistics. This research is not an exception and as such so many factors served as constraints in the process of carrying out this research.
i. Information Constraints:
It is important that most organizations are sensitive about the use of information they give out.
ii. Time:
It gives the accurate time required for the submission of this research work.
iii. Finance:
Financial resources are not readily available to carryout on extensive and through research and research work is a tasking exercise, which requires a lot of financial commitment, moreover, despite all the limitations, the researcher made effort to carryout a detailed and thorough research work on the subject matter.
