The Impact of Wages Increment on Workers Performance in Abia State

1.0 Introduction

1.1 Background of the Study

In any establishment either private or public, the impact of wages increment cannot be over emphasized. To Abia State water board Corporation Umuahia, satisfaction of the public and standard of living has been their major concern.

The objective has been the development and utilization of local raw material (coal) and mobilization of fund for the purpose of satisfaction of Nigerians. in the bid to actualize this, the corporation finds it difficult and almost impossible to pay it's workers the exact wages and pension at the appropriate time.

This as a result leads to inefficiency since the workers are not motivated to carry out their function effectively. Facilities provided by the government are not being-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 the trailer is now more preferable than the use of train, since the water board corporation is inefficient; goods that are supposed to be carried by trains are now being carried by vehicles, which thereby create obstruction in our roads. Presently, the corporation is not generating accurate revenue for the society, because the people who make use of the water board transportation are few.

This discussion so far, means that the water Board Corporation is unable to achieve its objectives.

1.2 Statement of Problems

Water is a basic necessity of life; no human being can live without adequate and safe potable drinking water.

Productivity in water supply is essential for meeting the needs of the people. The problem of productivity due to low wages includes:

• Inadequate or inefficient supply of water to the citizens.
• Low moral of workers to improve productivity
• Lateness and absenteeism to work by workers
• Prevalent of water borne disease in the state.

1.3 Objectives of the Study

It is expected for any research work to provide answer to a particular problem. In view of this, this project tends:

1. To examine the impact of wages increment on workers performance in Abia State.
2. To highlight the problems that are inherent in increasing the wages of workers who work in the public sector.
3. To identify and correct the environmental factor that affects the wages increase of workers.

1.4 Research Questions

This study will attempt to answer various specific questions like:

• Have the employers ever demanded for wages increase?
• Has there been any trade dispute in the corporation?
• Have the employee ever enjoyed or been given any fringe benefit?
• Has corporation recorded any demonstration work to rule strike action?
• Does wage increment motivate workers for high productivity?

1.5 Statement of Hypothesis

Ho: Workers performance is not a major determinant of equitable wage/wages increase.

Hi: Workers performance is a major determinant of equitable wage/wages increase.

1.6 Significance of the Study

This study is of great importance in the following ways:

1. By virtue of this study, it is needed most to ascertain the impact of wage increase on workers productivity.
2. Income and expenditure of an industrial sector would be determined, hence, the number of workers will also be accounted for. This tells whether more workers are to be employed or deployed.

1.7 Scope of the Study

This project work is not directed at providing solutions at all problems that arises in corporation generally. Rather, it is narrowed to the impact of wages increase and fringe benefits. However, the suggestion offered may be found useful by other corporations.

1.8 Limitations of the Study

In carrying out this research work, there were a lot of limitations that affected the study. These involve;

Financial Resources:

The physical cash could not meet the materials needed for this project work because of the increase in the cost of things generally.

Time Constraint:

The time allocated for this project work was not really enough since lectures were going on simultaneously.

Literature Related:

To this, study was not sufficient enough, as a result of limited collection of relevant data.

1.9 Definition of Terms

Wages:

This can be defined as affixed payment at regular interval for service. It is a payment made to workers for service rendered. However, wages are payment received. Hence, it becomes obvious that man has to labour to the point of satisfaction in order to meet up with the necessities of life either in private or public sector as case of water Board Corporation concerned. To buttress this statement it is stated clearly in theory of Douglas McGregor that the “expenditure of physical and mental efforts in the work is natural as play or rest” the average human being does not inherently dislike work.

Fringe Benefits:

Fringe benefit are payment other than wage or wages made to an employee such as pension, leave, bonus, insurance etc.

Workers:

A worker is a person who apply or contribute both physically and mental strength with the purpose of getting things some to a particular objective in order to earn his living.

Public Sector:

Public sector are those infrastructural organization fundamental to the natural economy which the government decided to control in order to ensure a proper balance between social and commercial aims. These organizations include: Corporation, Nigeria Post Authority, Nigeria Airways and National Power Authority etc.

Corporation:

Corporation can be defined as an institution operating the service of an economic or social character on behalf of the government corporation manage and operate in accordance with the provision of this act, the water board undertaking transferred to the corporation by virtue of the provision of all act.

These undertaking may include, any expansion or extension construction of new water board and the provision of all reasonable facilities for carriage of passengers and good.