THE EFFECT OF EMPLOYEES’ WELFARE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF NESTLE NIGERIA PLC)

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Employees are the backbone of any organization and their well-being plays a crucial role in achieving company goals. Employee well-being management includes policies, practices and programs aimed at ensuring the physical, mental and emotional well-being of employees in the workplace. It has been demonstrated that good welfare practices boost employee engagement, job satisfaction, and productivity (Armstrong, 2020). As a result, businesses that put employee well-being first are in a better position to grow sustainably and keep a competitive edge. The organization must find a way to encourage all employees to feel a sense of security and happiness in their work. When employees feel this, they can work effectively and contribute to achieving company goals. In fact, welfare can not only give employees motivation and inspiration but also help them relax. When employees stay at work for long periods of time, they may feel bored and exhausted. Therefore, employee well-being is considered as one of many factors that increase employee work performance in terms of effective time use, work quality and work volume (Chaimongkol, et al., 2018; Chienwattanasook et al., 2018). A happier and productive person is a satisfied employee, and a satisfied employee is a motivated employee. The values of a satisfied employee speak volumes and are a plus for your company. Therefore, managers must develop methods to encourage and fulfill the desires of the company's employees in order to achieve better performance. Nevertheless, the question arises as to whether the performance of the employees corresponds to the performance of the company. That is, can an organization's performance be measured solely by the performance of its employees? To understand and provide answers to this question, it is important to note that organizational performance encompasses an organization's actual output or results compared to its intended outputs. According to Richard et al. (2009), organizational performance includes three types of business outcomes: (a) financial performance (profits, return on assets, return on assets, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic added value, etc.) (Richard et al., 2009; Akintoye and Ofrubuku, 2022). Numerous studies emphasize the connection between employee well-being and organizational performance. For example, Garg and Rastogi (2021) highlighted that organizations that invest in comprehensive welfare systems, including health benefits, recreational facilities, and professional development opportunities, often experience reduced absenteeism and higher employee retention rates. This is supported by Maslow's hierarchy of needs theory, which states that meeting employees' basic and psychological needs leads to higher motivation and performance (Maslow, 1943). Consequently, neglecting welfare management can lead to higher turnover rates, poorer morale and general inefficiency. The role of employee well-being goes beyond individual performance and also includes organizational outcomes. An effective welfare management system promotes a positive work environment, which in turn contributes to greater teamwork and innovation (Guest, 2017). For example, companies like Google and Microsoft have integrated wellness programs, flexible work arrangements, and continuous learning initiatives to ensure high-performance cultures. These efforts demonstrate that employee-centered approaches can lead to improved operational efficiency and stronger organizational reputation in competitive markets (Singh et al., 2020). Despite its importance, welfare management is often underutilized or not aligned with the organization's goals. According to studies by Oluwafemi and Olagunju (2019), poor implementation of social programs coupled with poor communication often limits the perceived value of these initiatives among employees. Therefore, understanding the direct and indirect effects of welfare management on firm performance remains a key area of research. By addressing these gaps, companies can ensure their welfare policies are aligned with both employee needs and strategic goals, ultimately increasing productivity and success (Amah & Ahiauzu, 2021). Top of Form

1.2   Statement of the Problem

The effective management of employee welfare has become increasingly important for organizations aiming to improve performance and maintain competitive advantages. However, many organizations struggle to align welfare initiatives with strategic objectives, resulting in suboptimal outcomes for both employees and the organization. For instance, poorly designed welfare programs, such as inadequate health benefits, limited professional development opportunities, and insufficient work-life balance measures, often fail to meet employees' expectations, leading to low morale, decreased productivity, and high turnover rates (Armstrong, 2020). Despite the growing recognition of the importance of employee well-being, many organizations in emerging economies continue to neglect welfare management, viewing it as a cost rather than an investment. This underscores the need to investigate how welfare management practices directly influence organizational performance and identify strategies for maximizing their impact.

Additionally, there is a lack of comprehensive empirical evidence linking specific welfare management practices to measurable performance outcomes. According to Oluwafemi and Olagunju (2019), challenges such as limited financial resources, inadequate managerial commitment, and ineffective communication often hinder the implementation of welfare programs. These gaps not only diminish the effectiveness of welfare initiatives but also create disparities in how employees perceive their value, potentially exacerbating workplace dissatisfaction and inefficiencies. Consequently, the inability to prioritize and address welfare management as a critical component of organizational strategy poses a significant risk to long-term performance and sustainability. This study seeks to explore these challenges and provide insights into the ways effective welfare management can enhance organizational success.Top of Form

1.3 Objectives of the Study

The main objective of the study is to examine The Effect of Employees’ Welfare Management on Organizational Performance. Specific objectives of the study are:

1.   To determine the relationship between the level of employees' welfare management practices and organizational performance.
2.  To assess the impact of specific employee welfare programs on key performance indicators (KPIs) such as productivity, employee turnover, and customer satisfaction.
   1.  To identify the optimal level of investment in employee welfare programs that maximizes organizational performance while considering the organization's financial constraints.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

1.   How does the level of employee welfare management practices correlate with organizational performance metrics such as profitability, market share, and return on investment?
2.   Which specific employee welfare programs have the most significant impact on employee job satisfaction, motivation, and overall organizational performance?
3.   What is the optimal allocation of resources for employee welfare programs to achieve the maximum positive impact on organizational performance?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no significant effect of employees’ welfare management on organizational performance.

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 analyzed 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 organizations 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 Nestle Nigeria Plc. 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.

1.10 Definition of Terms

1. Employees' Welfare Management

The set of policies, practices, and initiatives undertaken by an organization to ensure the physical, mental, and emotional well-being of its employees. This includes benefits, health programs, workplace safety measures, and recreational facilities.

1. Organizational Performance

A measure of how effectively and efficiently an organization achieves its goals. This includes financial outcomes, productivity, employee satisfaction, and customer satisfaction.

1. Employee Engagement

The emotional commitment an employee has to their organization and its goals, often influenced by the welfare measures provided by the employer. High engagement typically leads to improved performance and reduced turnover.

1. Workplace Benefits

Non-monetary advantages provided to employees in addition to their regular salaries, such as health insurance, retirement plans, paid leave, and wellness programs.

1. Job Satisfaction

The level of contentment employees feel about their work, which can be significantly affected by welfare management practices such as supportive policies, good working conditions, and fair compensation.

1. Retention Rate

The percentage of employees who remain with an organization over a specified period. Effective welfare management can lead to higher retention rates by increasing employee loyalty and reducing turnover.

1. Productivity

The measure of an employee's efficiency in completing tasks and contributing to organizational goals. Welfare management practices such as adequate rest, health support, and motivation can directly impact productivity.