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THE IMPACT
OF STAFF WELFARE ON THE PRODUCTIVITY OF WORKERS
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND STUDY
In the era
of Globalization, market economy, hyper competition and rapid changing
environment, the success of an organization depends on the employees’
performance. Employees’ performance is an essential requirement if an
organization is to maintain its efforts towards the realization of predesigned
goals. According to Humana Resource Philosophy employees are an important
business resource that must be managed carefully in order to maximise return on
investment and achieve business objectives. Organisations have to provide
various benefits to ensure employees welfare is taken care off. In fact in this
age and era it is almost impossible to operate an organisation without offering
a basic set of benefits for employees’ welfare.Organizations should understand that
a healthy and stress free worker is a major asset to the organization and
should therefore provide welfare services and programmes.
Welfare is a
corporate attitude or commitment reflected in the expressed care for employees
at all levels, underpinning their work and the environment in which it is
performed (Cowling and Mailer, 1992). Specifically, Coventry and Barker (1988)
assert that staff welfare includes providing social club and sports facilities
as appropriate, supervising staff and works’ canteens, running sick clubs and
savings schemes; dealing with superannuation, pension funds and leave grants,
making loans on hardship cases; arranging legal aid and giving advice on
personal problems; making long service grants; providing assistance to staff transferred
to another area and providing fringe benefits (such as payment during sickness,
luncheon vouchers and other indirect advantages).
Productivity,
on the other hand, means goods and services produced in a specified period of
time in relation to the resources utilized (Singh, 2009). It is, however,
contended by Cohen et al (1995) to be more than a narrow economic measure, as
it also measures how well the group performs its required tasks to satisfy its
customers inside and outside the organization. In effect, productivity suggests
effectiveness and efficiency of the employees.
Apparently,
there are some scholarly works on staff welfare and productivity (Owusu-Acheaw,
2010; Osterman, 2010; Singh, 2009; Cowling and Mailer, 1992; Coventry and
Barker, 1988), but they mostly dwelt on industrial settings to the neglect of
service organizations typified in government ministries and parastatals.
Most Local
Government Councils in Nigeria are performing below set standard. The suspicion
derives from the observed poor road networks in most of the 774 Local
Government Areas in Nigeria; the inadequate state of health facilities (both in
physical structure and equipment); the deteriorated state of school buildings
(with walls noticeably cracked and the roofs destroyed) and furniture (table,
desks and boards); absence of government-owned recreational facilities; little
or no encouragement for increased agriculture productivity via timely provision
of agricultural additives (fertilizers, improved seedlings, cassava cuttings)
and agricultural loans: no visible effort to reduce the prevalent high rate of
poverty and unemployment in Nigeria through job creations among others. The
author argues that the below standard performance is a function of ineptitude
of the management (local government officials) and a depressed staff morale
owing to neglected attention to the welfare services of staff. This study
therefore focuses on the impact of staff welfare on the productivity of
workers, using Ibadan North local government as a case study.
1.2
STATEMENT OF THE PROBLEM
Delay in the
payment of worker’s salaries could result to apathy that might hinder
efficiency in work performance. It could lead to embarrassing circumstances
typified in inability to pay rent and concomitant quarrel with
landlord/caretaker; inability to pay for the schooling of his ward(s); poor
dietary intake that might result to malnourishment; inaccessibility to adequate
medicare; inability to meet with maturing social and financial obligations. The
foregoing could eventually culminate into disaffection between the employee
concerned and his/her employer, with consequences for poor attitude to work
(low morale) and low productivity.
Other
benefits that the employee is entitled to in the form of leave allowance,
transport, housing, overtime allowance, traveling allowances, Christmas bonus
and so on, though not legally binding on the Organization as they are not
covered by the Trade Dispute Acts of Nigeria, enhance psychological
satisfaction of the employees. Denial of such benefits to employees, especially
when it is traditional when there is precedence for the organization to give
them could adversely affect. Closely related to this is the employees’ right to
enjoy health and safety and the right to be managed fairly, which Cowling and
Mailer (1992) argue to be within the framework for welfare.
Employee
welfare is a dynamic concept as new welfare measures are added to the existing
ones along with social changes. The modern concept of employee welfare entails
all those activities of the employers, which are directed towards providing the
employees with certain facilities and services in addition to wages and
salaries. Welfare facilities are essential for the health of the organization
since they bear a close connection with the productivities of the labour force.
Employee welfare measures increase the productivity of organization and promote
motivation, healthy organizational relations thereby maintaining industrial
peace and retain the employees for longer duration. These problems make it
glaring that there is a need to carry out a study on the impact of staff
welfare on the productivity of workers.
1.3
OBJECTIVES OF THE STUDY
The general
objective of this study is to ascertain the impact of staff welfare on the
productivity of workers, using Ibadan North local government as a case study.
The specific objectives are:
1. To
ascertain if there is a welfare program for workers in Ibadan North local
government area.
2. To
investigate if lack of access to health facilities affects the productivity of
workers in Ibadan North local government area.
3. To know
if workers in Ibadan North local government get their allowances at the
expected time.
4. To find
out if there is a relationship between poor staff welfare and the decrease in
productivity of workers in Ibadan North local government area.
5. To
examine if delay in payment of salary affects the productivity of workers in
Ibadan North local government area.
1.4 RESEARCH
QUESTIONS
The relevant
research questions related to this study are:
1. Is there
a welfare program for workers in Ibadan North local government area?
2. Is lack
of access to health facilities affects the productivity of workers in Ibadan
North local government area?
3. Do
workers in Ibadan North local government get their allowances at the expected
time?
4. Is there
a relationship between poor staff welfare and the decrease in productivity of
workers in Ibadan North local government area?
5. Does
delay in payment of salary affects the productivity of workers in Ibadan North
local government area?
1.5
SIGNIFICANCE OF THE STUDY
The findings
of the study will be important because it will provide insights about employee
welfare programs and employee performance at the organization to ensure high
organization productivity and the attainment of organizational objectives.
Other state corporations will be able to implement the research recommendations
to improve employee commitment and hence reap maximum benefits from their
employees’ performance.
The
government agencies and other organizations will make use of this study, as it
provides knowledge useful in formulation of policy and a regulatory framework
on human resource management and in particular, welfare programs for better
organizational performance and individual employees’ wellbeing.
This study
will enhance the existing body of literature by contemplating the areas of the
literature that have not yet been examined or considered and incorporating
these factors into the current study. The study will thus form the basis for
further studies in the field.
1.6 SCOPE OF
THE STUDY
The scope of
this study is restricted to investigating the impact of staff welfare on the
productivity of workers, using Ibadan North local government as a case study.
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