Table of Contents
Abstract. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study.. 7
1.4 Research Questions. 8
1.5 Research Hypothesis. 8
1.6 Significance of the Study.. 8
1.7 Scope of the Study.. 9
1.8 Limitations of the Study.. 9
1.9 Organization of the Study.. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.2.1 Expectancy Theory. 12
2.2.2 Reinforcement Theory. 13
2.2.3 Equity Theory. 13
2.2.4 Goal-Setting Theory. 13
2.3 Conceptual Review.. 14
2.4 Empirical Review.. 17
2.5 Summary of Literature Review.. 19
Chapter Three.. 20
Research Methodology.. 20
3.1 Introduction.. 20
3.2 Research Design.. 20
3.3 Population of the Study.. 20
3.4 Sample Size and Sampling Techniques. 21
3.5 Data Collection Instruments. 21
3.6 Validity and Reliability of the Instruments. 21
3.7 Procedure for Data Collection.. 22
3.8 Methods of Data Analysis. 22
3.9 Ethical Considerations. 24
CHAPTER FOUR.. 25
DATA ANALYSIS AND INTERPRETATION.. 25
4.1 Preamble.. 25
4.2 Socio-Demographic Characteristics of Respondents. 25
TABLES BASED ON RESEARCH QUESTIONS.. 30
4.3 Analysis of the Respondents’ Views on Research Question one:. 30
Discussion of Findings. 42
CHAPTER FIVE.. 45
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 45
5.1 Summary of Findings. 45
5.2 Conclusion.. 45
5.3 Recommendations. 46
REFERENCES.. 47
Research Questionnaire: The Impact of Salaries and Wages as a Motivational Tool for Workers' Productivity (A Case Study of Federal Polytechnic Nekede Owerri). 49
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In the realm of organizational psychology and management, the relationship between salaries, wages, and worker productivity stands as a fundamental cornerstone. The notion that financial incentives serve as potent motivators for employees has long been debated, with scholars and practitioners alike scrutinizing its efficacy. While traditional economic theory suggests a direct correlation between compensation and productivity, contemporary research delves deeper, examining the nuanced interplay of psychological factors within the work environment.
Studies conducted by Locke and Latham (2004) emphasize the significance of goal-setting theory in elucidating the motivational impact of salaries and wages. According to their findings, employees exhibit heightened levels of performance when presented with clear, attainable objectives, often fueled by the prospect of financial rewards. Moreover, Herzberg's Two-Factor Theory (Herzberg, 1968) sheds light on the distinction between hygiene factors, such as salary, and motivators, such as recognition and advancement opportunities. This dichotomy underscores the multifaceted nature of motivation, wherein monetary compensation serves as a foundational element, albeit insufficient on its own to foster sustained engagement and commitment.
Drawing from the realm of behavioral economics, the concept of "economic man" is challenged by research advocating for a more holistic understanding of human motivation in the workplace. Deci and Ryan's Self-Determination Theory (Deci & Ryan, 1985) posits that intrinsic motivation, characterized by a sense of autonomy, mastery, and purpose, significantly influences employee productivity. Consequently, organizations must strike a delicate balance between extrinsic rewards, such as salaries and bonuses, and intrinsic motivators to cultivate a work culture conducive to high performance.
1.2 Statement of the Problem
As organizations strive to enhance workforce performance and achieve strategic objectives, the efficacy of salaries and wages as motivational tools remains a pivotal area of inquiry. While conventional wisdom posits a linear relationship between financial incentives and employee productivity, contemporary research underscores the intricate interplay of psychological, sociological, and economic factors shaping this dynamic. However, despite the burgeoning body of literature examining the impact of compensation on motivation, significant gaps persist, necessitating further investigation to inform evidence-based managerial practices.
One central challenge pertains to the diverse array of motivational theories and frameworks that offer competing perspectives on the role of salaries and wages in driving employee performance. For instance, while traditional economic theory emphasizes the primacy of monetary rewards in incentivizing behavior (Sachs, 1989), psychological theories, such as Self-Determination Theory (Deci & Ryan, 1985), advocate for a more nuanced understanding of intrinsic motivators, which may overshadow the impact of extrinsic rewards on sustained engagement and commitment. Consequently, elucidating the relative importance of financial incentives vis-à-vis other motivational factors is paramount to developing comprehensive compensation strategies that resonate with employees across varying contexts and organizational cultures.
1.3 Objectives of the Study
The main objective of the study is to examine the impact of salaries and wages as a motivational tool for workers productive. Specific objectives of the study are:
- To assess the relationship between base salary and employee productivity.
- To investigate the effectiveness of incentive-based pay structures on worker motivation and productivity.
- To analyze the combined effect of salary, benefits, and work environment on employee motivation and productivity.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- Do employees with higher base salaries exhibit a statistically significant increase in productivity compared to those with lower base salaries?
- Within a specific industry, how do incentive-based pay structures influence worker productivity compared to fixed salary structures?
- How does a comprehensive compensation package affect employee motivation and productivity compared to a focus solely on base salary?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no significant relationship between salaries and wages and worker productivity when considered as motivational tools within organizations.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Human Resource Management sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to federal Polytechnic nekede Owerri. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
