THE IMPACT OF INCENTIVE / WELFARE SCHEMES ON THE PERFORMANCE OF WORKERS
(A CASE STUDY OF NEPA ENUUG)
TABLE OF CONTENT
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SCOPE OF THE STUDY
1.5 SIGNIFICANT OF THE STUDY
1.6 DEFINITION OF TERMS
REFERENCES
CHAPTER TWO
2.1 LITERATURE REVIEW
2.2 NATURE OF SCOPE OF STAFF WELFARE
2.3 GROWTH OF STAFF WELFARE
2.4 PURPOSE OF STAFF WELFARE
2.5 CATEGORIES OF STAFF WELFARE SERVICE / TYPE OF FRINGE BENEFITS
2.6 DISADVANTAGES OF STAFF WELFARE PROVISION
2.7 INCENTIVES / WELFARE SCHEMES OF NEPA
CHAPTER THREE
3.1 DATA PRESENTATION AND ANALYSIS
3.2 DISCUSSION OF RESULTS / FINDINGS
3.3 CONCLUSIONS
3.4 RECOMMENDATIONS
REFERENCES
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The administration of staff incentive scheme has now become a popular phenomenon of the total personnel policy of nay organization. The scheme involves those extra benefits which may not necessarily be money, which emanate from the kind relationship of the employer to the employees, to supplement their usual wages, from the to time which are at most times geared purposely towards the enhancement of worker performance in the organization.
This scheme, where in existence is very important to both the organization and the employees. From the employer’s point of view, it is anticipated that a good staff employees incentive schemes will induce the employees to work hard and improve their general attitude towards the organization. But for the employee, these benefit represent some additional right such as extra income, additional security or more desirable working conditions that should not required any additional effort.
In business organization, employers of labour have seen in staff welfare services, as the ability to evoke commitment and co-operation of the subordinates to contribute more to the achievement of the organization goals and aspirations. This discovery has led many employers of labour to the introduction of well packaged welfare services, with the sincere belief that a good staff services, scheme will induce staff to work hard and improve the general staff moral.
The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraised of the staff welfare scheme are defined as “something of value, a part from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work.
Staff welfare services exist, in all cultures and in all organization and had existed at all times. They like different shapes and forms and attract different names.
In recognition of their worker need fulfillment functions, they are variously called “welfare services” welfare benefit employees “income” or simply “supplementary compensation” pay and non wage remuneration”. As non-taxable income and expense, they are beginning to be called “indirect compensation and on tax benefit”.
In the past, they used to be tiny bits and pieces of goodies that occasionally fell from the light tables of paternalistic employers ie when the top management, play a fatherly role of the staff.
Its should be noted that for the company to achieve its objectives her welfare services should be adequate competitive who tailored towards the real need of the staff are directly influenced by nature quality and quantity of welfare services offered because they compare themselves with their counterparts in the organization.
In my research work and analysis I have found that workers do prefer increases in welfare services to increase in salaries especially during the period of inflation and rising prices. Workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails, workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.
1.2 STATEMENT OF THE PROBLEM
Often workers or employees are attracted to certain organizations not only because of the pay packets that are stated in the advert but also because of the benefits attached to them: These benefits usually include housing, transports and medical allowances to mention but a few.
These attractions may constitute a considerable objective is which such individuals made up their mind to serve in such organization. The absence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as efficiency of such individual’s performance, which will in turn reflect on the organization’s productivity.
Examples a bound where organizations in recent times, have been faced with instant agitation from the workers union and staff association, poor administration of the existing ones or total withdrawal of these benefits. These dissatisfaction expressed by the staff either on the provision or administration to staff welfare service. Activities become same serious problems, which demand my proper investigation and examination in order to find lasting solution to them. These assetions will be examined with respect to a govenrmetn owned enterprise called “THE NATIONAL ELECTRIC POWER AUTHORITY PLC, ENUGU ZONE.
1.3 OBJECTIVE / PURPOSE OF THE STUDY
The objective or purpose of this study is as follows:
a) To ascertain whether any of the services formally by the staff in the company has been withdrawn and the reasons that necessitated they’re withdrawal.
b) To ascertain whether there is other benefit which the staff demanded for effective performance of their jobs that are not yet provided.
c) To ascertain the problems of any that is encounter by the company in the administration of welfare services.
d) To determine the effectiveness or otherwise of staff welfare program in national electric power authority as perceived by the staff.
e) To make recommendation based on this study on how to improve the provision and administration staff welfare scheme in NEPA Plc Enugu zone if need be.
1.4 SCOPE OF THE STUDY
In the nature of the research, students are often faced with many constraints. To evade some of these constraints, students are now required to carryout a case study where a small area will be selected for study sued as a reference point for large areas. So the scope of this study covers only a large spectrum of government owned enterprise in Nigeria called NEPA Plc Enugu zone.
It is hoped that the study of the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria.
1.5 SIGNIFICANCES OF THE STUDY
The role that a comprehensive staff welfare scheme plays in the efficiency with which an average worker discharges his responsibilities and the achievement of the overall corporate of an organization cannot be under played. Organization thus, try as much as possible to attain their corporate objectives by helping their staff to accomplish their own personal objectives. This they do by setting up ideal welfare scheme for the benefit of their staff.
In another breadth, it is a matter of curiosity to observe who might be pondering on the new welfare scheme that I would be evolved by NEPA Plc Enugu zone, considering the circumstances in which the company as a new cooperate body is formed, leaving behind tow clearly distinct staff welfare scheme.
1.6 DEFINITION OF TERMS
For the purpose of this research work the following key works are defined as follows:
STAFF
Any person who enters into a company, through an (employers) in return for wages salary or other valuable consideration. In this research work, this embraces both those ordinarily involved with the execution of the assigned work and those involved in the day decision making of the firm.
WELFARE
Is a wide variety of services that is provided by companies for their staff, and in some cases for members of staff families. This word shall be used in this research interchangeable with fringes benefits, employee benefits, welfare services, supplementary benefits and supplementary compensation.
SCHEME
This refers to a predetermined agreement of programmes events or development planned to accrue to a given expected outcome.
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Tags: THE IMPACT OF INCENTIVE / WELFARE SCHEMES ON THE PERFORMANCE OF WORKERS (A CASE STUDY OF NEPA ENUUG)
THE IMPACT OF INCENTIVE / WELFARE SCHEMES ON THE PERFORMANCE OF WORKERS
(A CASE STUDY OF NEPA ENUUG)
TABLE OF CONTENT
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SCOPE OF THE STUDY
1.5 SIGNIFICANT OF THE STUDY
1.6 DEFINITION OF TERMS
REFERENCES
CHAPTER TWO
2.1 LITERATURE REVIEW
2.2 NATURE OF SCOPE OF STAFF WELFARE
2.3 GROWTH OF STAFF WELFARE
2.4 PURPOSE OF STAFF WELFARE
2.5 CATEGORIES OF STAFF WELFARE SERVICE / TYPE OF FRINGE BENEFITS
2.6 DISADVANTAGES OF STAFF WELFARE PROVISION
2.7 INCENTIVES / WELFARE SCHEMES OF NEPA
CHAPTER THREE
3.1 DATA PRESENTATION AND ANALYSIS
3.2 DISCUSSION OF RESULTS / FINDINGS
3.3 CONCLUSIONS
3.4 RECOMMENDATIONS
REFERENCES
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The administration of staff incentive scheme has now become a popular phenomenon of the total personnel policy of nay organization. The scheme involves those extra benefits which may not necessarily be money, which emanate from the kind relationship of the employer to the employees, to supplement their usual wages, from the to time which are at most times geared purposely towards the enhancement of worker performance in the organization.
This scheme, where in existence is very important to both the organization and the employees. From the employer’s point of view, it is anticipated that a good staff employees incentive schemes will induce the employees to work hard and improve their general attitude towards the organization. But for the employee, these benefit represent some additional right such as extra income, additional security or more desirable working conditions that should not required any additional effort.
In business organization, employers of labour have seen in staff welfare services, as the ability to evoke commitment and co-operation of the subordinates to contribute more to the achievement of the organization goals and aspirations. This discovery has led many employers of labour to the introduction of well packaged welfare services, with the sincere belief that a good staff services, scheme will induce staff to work hard and improve the general staff moral.
The situation remains relatively the same but for the difference in methods of payment and apparent change in emphasis. The appraised of the staff welfare scheme are defined as “something of value, a part from the agreed regular monetary payment of salaries and wages given to staff”. This will be used as the working definition for this research work.
Staff welfare services exist, in all cultures and in all organization and had existed at all times. They like different shapes and forms and attract different names.
In recognition of their worker need fulfillment functions, they are variously called “welfare services” welfare benefit employees “income” or simply “supplementary compensation” pay and non wage remuneration”. As non-taxable income and expense, they are beginning to be called “indirect compensation and on tax benefit”.
In the past, they used to be tiny bits and pieces of goodies that occasionally fell from the light tables of paternalistic employers ie when the top management, play a fatherly role of the staff.
Its should be noted that for the company to achieve its objectives her welfare services should be adequate competitive who tailored towards the real need of the staff are directly influenced by nature quality and quantity of welfare services offered because they compare themselves with their counterparts in the organization.
In my research work and analysis I have found that workers do prefer increases in welfare services to increase in salaries especially during the period of inflation and rising prices. Workers normally get frustrated and dissatisfied when welfare services are inadequate. But if the opposite condition prevails, workers have been observed to be satisfied and more committed to give off their best to the achievement of the company’s objectives.
1.2 STATEMENT OF THE PROBLEM
Often workers or employees are attracted to certain organizations not only because of the pay packets that are stated in the advert but also because of the benefits attached to them: These benefits usually include housing, transports and medical allowances to mention but a few.
These attractions may constitute a considerable objective is which such individuals made up their mind to serve in such organization. The absence or reduction in these primary attractions of such individuals into the organization will certainly lower the morale as well as efficiency of such individual’s performance, which will in turn reflect on the organization’s productivity.
Examples a bound where organizations in recent times, have been faced with instant agitation from the workers union and staff association, poor administration of the existing ones or total withdrawal of these benefits. These dissatisfaction expressed by the staff either on the provision or administration to staff welfare service. Activities become same serious problems, which demand my proper investigation and examination in order to find lasting solution to them. These assetions will be examined with respect to a govenrmetn owned enterprise called “THE NATIONAL ELECTRIC POWER AUTHORITY PLC, ENUGU ZONE.
1.3 OBJECTIVE / PURPOSE OF THE STUDY
The objective or purpose of this study is as follows:
a) To ascertain whether any of the services formally by the staff in the company has been withdrawn and the reasons that necessitated they’re withdrawal.
b) To ascertain whether there is other benefit which the staff demanded for effective performance of their jobs that are not yet provided.
c) To ascertain the problems of any that is encounter by the company in the administration of welfare services.
d) To determine the effectiveness or otherwise of staff welfare program in national electric power authority as perceived by the staff.
e) To make recommendation based on this study on how to improve the provision and administration staff welfare scheme in NEPA Plc Enugu zone if need be.
1.4 SCOPE OF THE STUDY
In the nature of the research, students are often faced with many constraints. To evade some of these constraints, students are now required to carryout a case study where a small area will be selected for study sued as a reference point for large areas. So the scope of this study covers only a large spectrum of government owned enterprise in Nigeria called NEPA Plc Enugu zone.
It is hoped that the study of the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria.
1.5 SIGNIFICANCES OF THE STUDY
The role that a comprehensive staff welfare scheme plays in the efficiency with which an average worker discharges his responsibilities and the achievement of the overall corporate of an organization cannot be under played. Organization thus, try as much as possible to attain their corporate objectives by helping their staff to accomplish their own personal objectives. This they do by setting up ideal welfare scheme for the benefit of their staff.
In another breadth, it is a matter of curiosity to observe who might be pondering on the new welfare scheme that I would be evolved by NEPA Plc Enugu zone, considering the circumstances in which the company as a new cooperate body is formed, leaving behind tow clearly distinct staff welfare scheme.
1.6 DEFINITION OF TERMS
For the purpose of this research work the following key works are defined as follows:
STAFF
Any person who enters into a company, through an (employers) in return for wages salary or other valuable consideration. In this research work, this embraces both those ordinarily involved with the execution of the assigned work and those involved in the day decision making of the firm.
WELFARE
Is a wide variety of services that is provided by companies for their staff, and in some cases for members of staff families. This word shall be used in this research interchangeable with fringes benefits, employee benefits, welfare services, supplementary benefits and supplementary compensation.
SCHEME
This refers to a predetermined agreement of programmes events or development planned to accrue to a given expected outcome.
REFERENCES
Armstrong. M. and Murus H. (1980); A hand book of
administration. London: Koran PCI Ltd P. 140
Dale Y. (1962): Personnel Management and Industrial
relations 5th edition Englewood P. 213.
Ozo, J. C. et al (1999): Introduction to project writing for
Business and Financial studies. Enugu, Sunny Enterprise.
CHAPTER TWO
2.1 LITERATURE REVIEW
NATURE AND SCOPE OF STAFF WELFARE
DEFINITION
Staff welfare has been defined variously by various writers. Armstrong and murus defined it as “item in the total package offered to staff over and above salary which increase their wealth or well-being at the same cost to the employer. In the words of Youder Ethel, “it is wide variety of services produced by companies for staff families. But Nwachukwu from his own perspective see it as “additions entitlements given to staff by management to supplement their wages.
Staff welfare have been commonly referred to as staff benefits or services. This distinction here is that benefits are where direct monetary reward accrued to the individual workers eg. pension leave pay and salary advance, while service involve no direct and unidentifiable monetary benefits e.g staff clubs, recreation facilities arrangement of reception hall and Christmas parties etc. other yet refer it to as fringe benefits.
As mentioned earlier, staff welfare exists in all cultures, even during slave trade period, and in all organization and had existed at all time except that they take different shapes and forms and attract different names. It is in the recognition of their workers need fulfillment functions that they are variably called welfare benefit, welfare services, employee income, they are being referred to as supplementary benefits, supplementary compensation or pay, and expenses, they are beginning to be indirect compensation and non tax benefit.
2.2 NATURE AND SCOPE OF STAFF WELFARE
Although the term staff welfare, in itself implied a voluntary provision on the part of the employs, the administration of the state benefit schemes and certain legal requirement concerning other benefit upon the employer.
In addition to such obligations, however a large numbers of companies provide staff services for which there is no legal requirement in the past, they sued to be they bits and pieces of goodies that occasionally feel from the right table of atonalistic employers hence they are known to be fringes benefits (ie marginal).
2.3 GROWTH OF STAFF WELFARE
The growth of staff welfare scheme has been tremendous particularly since second world war, and apparently no end is in sight. The expansion is world wide and so frightening that the scheme has been “compared to the theological animal that immediately grew two heads when one was chopped off”. From nowhere, it was the wide spread adoption of such benefits as company housing and company stores. This era did not last long as it fell into disrupt, supposedly as a result of the employers / staff desire for “industrial adult hood” later it was a new era of new paternalism that developed after their depression of the 1930’s and the second world war/
a) REASON FOR GROWTH OF STAFF WELFARE
Filippo in his book summarized the sources of the rapid growth of such program such as:
i) Labour union demand
ii) Changed employee attitude
iii) Government requirement
iv) Competition that forces other employers to match benefits to attract and keep labour.
v) Period way control which freeze wages but permit the offering of services as a substitute for wage increment.
vi) High company income tax, deducted expense items of recent, the package has grown hydro headed in form and monstrous in relative size and in apprehension, that it is beginning to be called the “hidden pay roll”.
Managers and employers do not play dominant role in administering all benefits and services, and may not do little more than to comply with prescribed public regulation. So, public plays a leading role in expanding several important types of fringe provisions. It has long emphasized the advancement of economic security and qualified benefits such as public pension, pad vacations, industrial ill health and accident.
Staff union on the other hand has supported all of these public intentions and has in addition sought paid sick leave, health and welfare activities increased payment to workers etc. the unions has pursued these benefit with vigour for the best interest of their members.
Even though managers and employers may sometimes appear as apposed to all fringes, they have invented and advance on their own. This is in recognition of the fact that many benefits offer possibilities of implementing their policies to improve staff morale, to encourage wide participation an understanding, to reduce absenteeism and to assist staff in identifying their personal goals and interest with those of the organization. Hence, employers have come to regard fringe benefits as costs of production, which are charged along with other firms of remunerations.
a) THE COST OF STAFF WELFARE
In many companies today, a substantial proportion of the total labour cost concerns staff welfare, in addition to basic wages or salaries. These benefits in the staffs view represent an extra income, additional security or more desirable working conditions that require no additional effort. Even though the employer may not readily ascertain the return from them such benefits often satisfy staff needs and wants that are not satisfied by wages and thus have considerable value in promoting value and in promoting employee morale.
However, the cost of staff welfare especially in the area of housing, transportation and medical health care, in increasing and union are asking for more and more benefits. This is what was regarded in the past as a small proportion of the labour costs but has now become so enormous that employers are now putting it value in question.
The cost of staff welfare scheme is therefore by no means insignificant for instance, the united states chamber of commerce ahs collected data on a group of 79 companies every other years, since 1947. The data showed that the cost of welfare increased at every survey period.
In 1947, fringe cost were 22.1% per pay roll hour, a rise of 36.7% unfortunately comparable statistics are not yet available in Nigeria, despite annual directive of the activity, prices and income board to all establishments employing 50 or more persons to submit to the productivity scheme drawn up with fringe benefits paid to all categories of their staff “chambers of commerce of the united states, “Employee benefits” in the Zollistest and langter O P P. 661 see Ume O. Wleazu, “Productivity and national development.
There is no doubt therefore that these fringe benefits take a significant clunk of the expense of organizations, as they are almost all employing. They span a workers life from data of employment to life death. This situation is best expressed by Ejiofor” when he said that “Employers are not expected to house their workers, bring them to work, feed them during work, take them hence after work, provide recreational facilities for them, pay them when on leave, maintain them while on study leave, than them for passing examinations, care for them and their families in sickness provide transport for them when on transfer, pay them if they have to be sacked and comparable them for the inconvenience when they die ie maintain their survivors, and depending on their status, announce their death to the world. “with heavy heart” buries them decently, keep their memories evergreen in the world through annual.
“In memories” and even pray for the repose of their souls.
The implication of this testimony is clear to the employers. Hence, there is a need for ensuring that a fringe benefit program is making a maximal contribution to the total personnel activity of a company.
See P. M. D. Ejiofro, “employee welfare program dilemma. During depression, in U.A. Damachi and Tayo Fashiyin, ed contemporary problems in Nigeria industrial relations (Lagos development press Ltd) 1986 pp. 100-102.
2.4 PURPOSE OF STAFF WELFARE SCHEME
Staff welfare scheme, like any other phase of the personnel programme should be carefully planned and purposes established for use as guideline in the management of the programme. It has been suggested that management gives greater attention to determine the optimum combination of fringe benefits for it company that will maximize employee satisfaction and assure efficient production and thus serve as a standard against which to assess proposed addition and or changes to the package. “Staff welfare scheme may have on any or all of the following general purpose given by Yoder ethal.
a. FOR THE COMPANY
1) Increase output
2) Reduce turnover and absentness
3) Increase employee morale
4) Reduce grievances.
5) Improve public and community relations
6) Reduce influence of present or potential unions
7) Increase employee, loyalty towards the company
8) Increase employee participation in company affairs
9) Increaser welfare of staff in connection with his personnel and social needs.
10) Facilities recruitment and retention of staff.
2.5 CATEGORIES OF STAFF WELFARE SCHEME
Staff welfare services exists in many firms and have been categorized by different authors. One of such author is Flippo. He grouped staff welfare services into these categories.
a) Staff services
b) Hazard protection
c) Legal required payment
Yorder, Heniman Jr. Turnball and stone put another such category forward. These include
1) Extra payment for time not worked.
2) Payment for staff security
3) Non production awards and bonuses
4) Payments for staff services.
However, Yoder in his book personnel management and industrial relations seems to emphasize on more broad categories, which include.
– Health and welfare
– Added leisure and income
– Morale personal identification
– Old age and retirements.
In the above, there is no one best category since on items can successfully fit in any of the group.
2.5.1 BENEFITS FOR SAFETY, HEALTH AND WELFARE
It is often said that health is wealth and recognition of this, employers have developed more interest in the provision of health and welfare programmes for their staff some of these services are:
a) MEDICAL FACILITIES
Provision for physical security includes programme of industrial medicine. Industrial medical is intended to supplement regular medical practice, not to complete with it the programme of industrial includes: regular physical examination, health education, prompt care of the injured, sanitary in sector, elimination of health hazards, studies of fatigue providing visiting house, services to employee away from work because of illness and services of the company doctors or hospital facilities in the case of emergency operations due to the causes of outside the employment contract.
b) HOSPITALIZATION
Many firms has entered into agreement with insurance plans for their staff. Firms under which hospitalization and life insurance plans are made available to staff usually at reduced rate. The employer may pay the premium alone.
The plans provides a measure of security for staff by assuring them that in event of hospitalization, the major part of the cost will be borne by the plan and that in the event of death, and funds will be available to their dependents. According to Flippo “the returns of the company of this particular economic services causes from relieving the staff of their worry should enable a person to devote greater attention to the job and the company.
2.5.2 BENEFITS FOR ADDED LEISURE AND INCOME
Majority of the staff welfare provisions are negotiated by management and union, while in others, the law places obligation on the employer to provide such benefits. Some of the benefits that are negotiated are reduction in what are usually described as normal hour of work, premium for second and third shifts, paid holiday and rest periods.
a) ANNUAL LEAVE
Staffs employees are entitled to a holiday with pay after twelve months of continuous services according to Knowles “majority of office workers receive a two weeks paid vacation annually in different organization.
Yoder asserts “most common current pattern rants 3 weeks annually 5 – 10 years, 4 weeks after 20 years of service. Arm strong open that most staff now receive at least 3 weeks pay, annual holiday, four weeks is increasing becoming the rule for staff paid over #2,000 a year and a growing proportion of senior executive receive five weeks.
b) MATERNITY LEAVE
This is usually granted to women for a period of six weeks following their confinements whereas for casual leave few days are granted to staff on compassionate ground. In some cases leave of absence could be granted to staff on military calls and civic duties.
c) OVER TIME AND HOLIDAY PAY
Once the normal hours of work have been agreed upon of fixed, any hour worked in excess by a worker is called overtime and is paid for usually, union and management bargain on such items regarding premium for weekend work such as double time for Sundays.
a) PREMIUM FOR NIGHT AND SHIFT WORK
Working in the night and shift work are not usually as attractive to staff as the normal day work on which basic salary is paid, so employees are less likely to agree to carry on the job without extra remuneration paid as an incentive unless it is mandatory that employers who do not consent to such an arrangement should resign.
f) LEAVE OF ABSENCE
It is becoming increasing, the norm in most enterprises to grant leave of absence to staff when certain situations that warrant such leave occurs.
2.5.3 BENEFITS FOR OLD AGE AND RETIREMENT
Often the employer recognizes the importance of long and dedicated services to the services to the organization. In view of this, they establish the company’s old age and retirement plan to carter for the staff when out of active services, one of such benefits is pension or retirement benefits.
a) PENSION AND RETIREMENT
Many of the companies are establishing retirement and pension plan for staff. These plans are unable to serve enough to provide for their support when they retire. Management recognizing a continuing obligation to the staff that has served the organization for many years ordinarily develops company.
In some plans, both the staff and the company contributes to the fund each month while in others, only the company contribute. However, the company contributing are not taxable to the staff until they collects the pension so that he is usually in lower tax bracket and pay less on the pension income.
According to Knowles “Most pension plans in effect today require the retirement of the staff at 6 years, usually at least twenty years of service or at most thirty five years of service. The amount of retirement / pension benefit is often about 50% of the average annual salary.
b) OBJECTIVE BEHIND THE PROVISION
In spite of some writers view about fringe benefit “hygiene factor that do not motivate. One cannot dismiss with a ware of hand the fact that welfare proviso offers a handsome returns to the staff especially when it is competitive attractive, and tailored towards the real needs of the staff. That is the reason why in spite of the increasing cost of these benefit companies still continue offering them.
Firms introduce these benefits for seven main reasons these include:
To assist in lowering unit cost of production
To fulfill requirement by governments
Improve morale
Help the organization keep peace with competition
Prevent unionization
To attract and hold staff, assist in meeting their better needs.
Increase staff security and blunt the sharp edges of managerial autocracy.
2.6 DISADVANTAGES OF STAFF WELFARE PROVISION
Some firms are to capable of provision the staff / employee with some of the organization welfare service lack of not providing any of these welfare may lead to the low turnover rate of productivity and so many other things that can lead to the break down of the company. In this case it would be encourage for staff to b provided with little tips of this services.
2.6.1 HIGH COST OF MAINTENANCE
Companies find it difficult to maintain their existing fringe benefits not to talk of providing new ones. Only few of these benefits can successfully of the staff while others are enjoyed by the privileged few and this makes the cost of their maintenance very high and sometimes not within the reach of many companies.
2.6.2 ONCE INTRODUCED WITHDRAWAL BECOMES DIFFICULT
One of the greatest disadvantage of staff welfare services is that once introduced they cannot be withdrawn; such more will be net with still resistance by the staff. For instance cash payment once regularly given at end of the month tend to loose their your in the eyes of the staff. The staff looses the appreciation and start regarding them as an obligation of the employers to promote or increase the salaries. This is why any attempt by the employers to reduce.
2.6.3 PRINCIPLES OF STAFF WELFARE ACTIVITIES
Businessmen need not to be concerned with the question of whether or not to provide benefits because the answer lies with the staff themselves and their desire to increase their real wages. It staff welfare activities are to yield the fullest return, they must be of value to both the company and the staff Flippo in his own line of thought suggest that the cardinal principle of staff benefits activities is that the benefit must make a contribution to the organization at least equal in the amount of its cost.
In addition to the basic guides, there are several other principle that have been suggested by various, authorities.
a) The first principles are what of satisfying a real need. This is to say that fringe benefit plans should never view from the paternalistic new point of being good for the staff. The question, which should always be asked, is “can the staff furnish the services for him as well or better than the company can provide? For instance he can, the company will receive the most benefit by paying the necessary money in take more pay.
b) Second fringe benefits plans should be operated in such way that the staff takes pride in them. Pride in the plans offered fosters company esprit be corps and builds staff loyalty.
c) The benefits selected should be those that can be best handled by a group approach. In other words as nearly as possible, plans should be structured so that the maximum numbers of staff loyalty.
d) And the last principle is that costs of the staff benefits selected that must be calculated and its financing be established on a sound basic. This is particularly important in the matte of staff. Adequate provisions for financing must be establishing before considering the services over the collective bargaining table
2.7 INCENTIVE / WELFARE SCHEMES OF NEPA
Many firms enter into agreements with insurance firms under which hospitalization and life insurance plans are made at reduced rates. It is hoped that the study o the administration of staff welfare scheme in NEPA will serve as an eye opener to efficient administration of welfare services in other government owned companies in Nigeria. The comprehensive staff welfare schemes plays in the efficiency with which an average worker discharges his responsibilities and the achievement of the overall corporate of the organization.
In another vain, it is a matter of curiosity to observe who might be pondering on the new welfare scheme that would be evolved by NEPA Plc. Enugu zone, considering the circumstances in which the company as a new corporate body is formed, leaving behind two clearly distinct staff welfare scheme.
NEPA provides some incentive / welfare schemes to the staff to mention but few:
a) Provision of staff security
b) Extra payment inform of bonuses
c) Provision of some recreational facilities which are slitting been introduced into part of the welfare services.
d) Cafeteria survives are also provided to prevent staff going outside the office premises to search for food and avoiding the staff not to spend unreasonable time beyond the break time.
REFERENCES
Armstrong M. and Murus H (1980): A hand book of salary
administration. London: Koran.
Blomstorm R. C. (1964): Competitive aspect of fringe
benefits” personal journal vol. 43 No1 1964.
Dale Y. (1962): Personnel Management and Industrial
relations. 5th England: Cliff New Jersey Prentice.
Flippo E. B. (1971): Personnel Management New York, Mc
Graw Hill P. 549.
Floya F. (1961): Fringe benefit for all “Personnel Journal Taxes
39 pp. 871 – 880.
Naylon and Tornington (1974): Administration of Personnel
Polices great Britain. Cover press.
Ozo, J. C. et al (1999): Introduction to project writing for
business and financial studies, Enugu Sunny Enterprise.
CHAPTER THREE
3.1 CONCLUSION
DATA PRESENTATION AND ANALYSIS
Data becomes useful only after they are analyzed data analysis involves converting a series or recoded data into description statements and for references about relationships.
The analysis and interpretations of the raw data of an investigation are the means by which the research problems are answered.
According to Osueka E. O (1987) P. 18, Analysis is defined as the ordering and breaking down of data into constituent points.
RESEARCH QUESTIONS 1
Area workers dissatisfied with their present fringe benefit packaged?
| Alternative |
Response |
Percentage % |
| Yes |
37 |
82 |
| Partially |
– |
– |
| No |
8 |
18 |
| Total |
54 |
100 |
Table 1 in question A, reveals that 82% of the respondents are not satisfied with their present fringe benefit package?
RESEARCH QUESTIONS II
Does management conceal to workers the full range of workers fringe benefits available in the company
| Alternative |
Response |
Percentage % |
| Yes |
– |
– |
| Partially |
4 |
9 |
| No |
41 |
91 |
| Total |
45 |
100 |
Table 2 in question B, shows 9% of the respondent partially agree to the management disclosure of workers full range of fringe benefits, while 91% respondents respondent negatively while nobody agreed.
RESEARCH QUESTIONS III
Does workers felt that there are inadequacies in the provision and administration of their fringe benefit in the company.
| Alternative |
Response |
Percentage % |
| Yes |
37 |
82 |
| No |
8 |
18 |
| Total |
45 |
100 |
Table 3 in question C, above shows that 82% of the respondents indicated with strong feelings that there are inadequacy in the provision and administration of benefit in the company, while only 18% of the respondents indicated that there are inadequacy in the provision and administration of fringe benefits in the company.
3.2 DISCUSSION OF RESULT / FINDINGS
Welfare activities is indispensable elements in an organization whether profit or non-profit organization. The result shown earlier indicated that the company has a well-established procedure for administering its staff welfare scheme.
The company also offers a wide range of welfare activities to staff and in some case of their dependents. The company also offers most of the statutory welfare programme guaranteed by the government. Benefit offered by the company include medical facilities housing scheme, transportation service scheme, meal subsides, pension scheme, retirement benefit, redundancy benefits, leave earning service, annual leave allowance recreational welfare activities etc.
At least the qualities of these benefits will be attractive.
The management and the union, with the approval of board of directive, do determination of staff welfare activities in the company. the cost of welfare programme’s to the company is reasonably high.
The communication of staff welfare scheme in the company is not too effective, as the media used do not often reach all staff. The provision in the country had affected the provision and administration of staff welfare activities in the company. The effects had necessitated the strict control and administration of the schemes. The company has encountered several problems in the provision and administration welfare programs to staff.
Also, the study revealed that most of the staff did not have full knowledge of the entire welfare programmed in the company, most staff expressed their satisfaction over the present fringe benefits package of the company. It is show that staff preferred benefits in cash to payment in kind, and increase in their salaries then increase in fringe benefit.
Most of the staff acknowledges the regular receipt of benefits they are entitled to. Those who hold country view blamed it on administrative lapse and economic recession in the country and favoritism.
It was the view of many staff that some other government companies offer more attractive welfare activities than their own company.
Examples of such company maintained by the staff are guardian newspaper, vanguard newspaper, punch newspaper.
The study revealed that the union is often consulted on the adoption of welfare activities.
3.3 CONCLUSION
This study has given us an attempt to provide empirical evidence in support of the practice of staff incentive / welfare Scheme in National Electric Power Authority Plc (NEPA) we have identified problems and descried them criticized practices and prescribed solutions.
Welfare services are introduced in organization due to the employers sincere belief that a good staff employee services activity will induce them to work hard and improve general staff morale.
The importance of various welfare items has been pointed out and the criteria for their operation discussed at length. It is now left for the company to modify the structure or nature of administration of the activities where necessary.
The context of high cost of staff welfare scheme to companies as shown by this survey reveals that there is an urgent need to cultivate a commensurate pay of from this huge investment, by ensuring that the scheme are relevant to the staff need / satisfaction.
We have seen that unless a benefit is attractive and well administered to a workers, it would not motivate and been frustrated or encourage apathy.
Also program, he may not find the case to be motivated our organization should, therefore take note of these facts when operating its existed welfare activities and those to be introduced.
Further more, we need the important roles of the government in brining about equitable provision of benefits tow workers. Statutory benefit guaranteed by government (like have rent allowance paid holidays, paid sick leave, transportation allowance etc) and its intervention in fringe benefits issues. For instance justifies this assertion. More of such kind gestures will ever be welcomed.
Finally it is my sincere belief and also quite optimistic that the recommendations advanced in this study if cautiously followed will in variable make staff welfare scheme in Nigeria organization more efficient and effective
3.4 RECOMMEND ANTON
Sequel to the findings of this study, the following recommendations as to the effectiveness of the practice of staff welfare activities in NEPA Plc. are:
The company that should try a much as possible to make available its condition of services booklet and other information sources to all the time of employment. The criteria for the operation of the benefit should also be stressed and any changes by communicated to the staff promptly the staff could appreciate this program provide that the extent the company is concerned for their welfare
The company should have a well equipped medical centers in a situation where the staff has a serious accident. The company should be responsible for their hospital bill when the concerning clinic cannot threat the employment case.
The company should give adequate housing allowance to its staff, they should given them sufficient housing allowance or give them loans to build their own house, considering the tremendous increase in house rent. Transportation, the company should give adequate transport allowance in a situation that when the company bus is not on the road down.
The company should give study leave to the staff, and in service training backed up with promotion. They should also give scholarship to the children of the staff.
The company should provide canteen-selling food to the workers at subsidized rate. And also the workers at their zonal office should be given food subsidy.
The salary structure of the workers should be reviewed i.e. the company should increase their salaries. They should also pay their workers on sick leave.
The company should make adequate effort to implement the provision of all benefits stated on its policy statement e.g. Chrisman bonus. They should also give their staff holidays wherever there are public holidays or pay them for the quartile and incontinence allowance.
REFERENCES
Ejiofor. P. Employee welfare programmes Dilemma During
Depression in Ukandi.
Nwachukwu, C. C. “Personnel management Concept and
Situation: An unpublished Research project university of Nigeria Nuskka
Osuala (1987): Research and methodology
Ubeku A. K. (1975): Personnel management in Nigeria:
Benin Ethiopia Publishing corporation.
Uma O. E. (1980): “Productivity and National Development
the of Nigeria experience lecture at Annual dinner of the N. I. M. Anambra chapter.
Williams H. K. (1955): Personnel Management and A human
Relation approach (New York) American Book Co.
Tags: THE IMPACT OF INCENTIVE / WELFARE SCHEMES ON THE PERFORMANCE OF WORKERS (A CASE STUDY OF NEPA ENUUG)
