THE EFFECT OF FRINGE BENEFIT ON WORKERS MOTIVATION IN BUSINESS ORGANIZATION


Content

Abstract

This study looks at the impact of fringe benefits of the motivation of workers using Civil Servants, Isoko South Local Government, Isoko as a case study. It is the contention of the study that fringe benefits play important role in the motivation of workers performance in organizations. The respondents for this study were selected using the simple random sampling method. Questionnaire was used to elicit information from the respondents and the questionnaire content was validated. The Test and the Retest method was used to determine the reliability of the questionnaire. In this study, positive association exist between the satisfactory fringe benefit package, equity in the administration of fringe benefits geared towards the needs of the workers and motivation to performance. Based on the findings of this study, such recommendations as tailoring fringe benefits to the needs of workers, linking fringe benefits enjoy by the worker to job performance and ensuring equity in administration of fringe in the organization, are made.  

 

TABLE OF CONTENTS

        Title Page                                                                 i

        Certification                                                             ii

        Dedication                                                               iii

        Acknowledgements                                                  iv

        Abstract                                                                   v

        Chapter One: Introduction

1.1      Background to the Study                                         1

1.2      Statement of Problem                                              1

1.3      Research Questions                                                         2

1.4      Objective of the Study                                              2

1.5      Statement of Hypothesis(es)                                     4

1.6      Significance of the Study                                         5

1.7      Scope of the Study                                                   6

1.8      Limitations of the Study                                          6

1.9      Definition of Terms                                                  7

Chapter Two: Review of Related Literature

2.1      Introduction                                                             10

2.2      Theories of Motivation                                             12

2.3      Effects of Fringe Benefits on Human Performance   22

Chapter Three: Research Methodology

3.1      Introduction                                                             26

3.2      Research Design                                                      26

3.3      Description of Population of the Study                    26

3.4      Sample Size                                                             27

3.5      Sampling Techniques                                              27

3.6      Sources of Data Collection                                       27

3.7      Method of Data Presentation                                   29

3.8      Method of Data Analysis                                          29

Chapter Four: Data Presentation, Analysis and Hypothesis Testing 

4.1      Introduction                                                             31

4.2      Presentation of Data                                                31

4.3      Data Analysis                                                           31

4.4      Hypothesis Testing                                                  37

Chapter Five: Summary of Findings, Conclusion and Recommendations

5.1      Introduction                                                             46

5.2      Summary of Findings                                              46

5.3      Conclusion                                                              47

5.4      Recommendations                                                   48

References                                                               50

Appendix I                                                               51

Appendix II                                                              52

                                       


CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

Organization exists for the purpose of services to the society, civil servant like employees are employed in order to render certain services to the organization or society.

Civil servant or workers will be wiling to put in their best when they are motivated, their motivation can be effected by the ability of their employers to meet their needs. This is because any worker working in an organization has certain satisfied that they will be willing to put in their effort towards realizing an organizational objective.

1.2      Statement of Problem

The factor which influence people level of expectation concerning rewards including payment have been the subject of considerable research and through behavioral scientist have produced relationship between pay and work which seek to provide some motivational force.

Therefore, this study hopes to achieve the following:

a.           To show the benefits on the motivation of workers.

b.          To find out the relationship between satisfaction with fringe and performance.

1.3      Research Questions

The following are the research questions used in this study.

a.           Does a worker perception of the administration of fringe motivate the aim of performance?

b.          Does a worker perception of the fringes in category of certain workers in other categories motivate him in performance?

c.           Does a worker perception of the value of his family attitudes to the fringes he enjoys or a civil servant motivate lump to performance?

 

1.4      Objectives of the Study

Matters that effects payment for work rate of the job, the grade or scale of payment questions of differentials, business incentives are all capable of investing disputes which arises as a result of pay, although it is true that other factors may be involved, at least to the importance, of fringe as source of motivation among workers, we may not notice the concern for the less will pay, anxiety about job security and has discussion about factors which might effect the stability of a regular adequate income. It is clear that in a market economy work and pay are inseparable without money, people are unable to buy goods and services necessary for survival, they cannot advance in status in the eyes of their fellow men and can’t make material implements in their standard of living.

The work being dangerous, difficult, demanding, people expect appropriate compensation. The following research shall direct the study.

a.           To ascertain if workers’ perception of the administration of fringe motivate the aim of performance.

b.          To find out if a worker’s perception of the fringes in category of certain workers in other categories motivate him in performance.

c.           To determine if worker’s perception of the value of his family attitudes to the fringes he enjoys or a civil servant motivate lump to performance.

1.5      Statement of Hypothesis

The family hypotheses shall be used to direct this study.

Hypothesis I

HO:   Workers perception of the value than families attach to fringe they get, will not motivate them to performance.

HI:    Workers perception of the value than families attach to the fringe they get, will motivate them to performance.

 

Hypothesis II

HO:   Fringe benefit geared towards meeting the actual needs of the workers, will not motivate them to performance.

HI:    Fringe benefit geared towards meeting the actual needs of the workers, will motivate them to performance.

Hypothesis III

HO:   Workers perception of the fringe benefit they enjoy in their organization in relation to what obtain in their organization will not motivate them to performance.

HI:    Workers perception of the fringe benefit they enjoy in their organization in relation to what obtain in their organization will motivate them to performance.

Hypothesis V

HO:   Workers perception on the administration of fringe benefits will not motivate him to performance.

HI:    Workers perception on the administration of fringe benefits will motivate him to performance.

1.6      Significance of the Study

The major significance of the study is that it will help to ascertain the extent to which fringe can benefit workers as governmental parastatals, the finding and recommendation of this study can be used by the government in designing fringe programme that can benefit the civil servant to performance in organization.

1.7      Scope of the Study

The study is limited to civil servant in Isoko South Local Government Area. In the source of this study, questionnaire was distributed to different categories of civil servants in Isoko South Local Government. The ministry included in the study is Ministry of Education, Ministry of Art and Culture, Offices Ministry of Justice, Central Hospitals, Isoko South Local Government Secretariat, Emore Grammar School, I.C.S. Grammar School and Owodokpokpo Grammar School.

 

1.8      Limitations of the Study

In the course of trying to collect some vital information necessary for the successful completion of the work, the researcher encountered some problems, prominent among the constraints are:

a.           The reluctance of workers in the local government chosen as a case study to release some information that would have really enriched this project work.

b.          One of the top problems faced was limited time period for the study. It was not a easy task to combine my regular academic activities and that of the research work.

c.           Another problem was reluctance of some members of staff of the local government to even fill out the questionnaires given to them because most of them fell either they are implicating or otherwise.

1.9      Definition of Terms

The following terms are defined as they are used in the study.

1.          Motivation: These are the factors that prompt employees to perform operationally in their designated tasks. It is also general term used to describe the entire classes desires need, wishes and to other similar forces which prompt plague to get in a desired way in the organization.

2.          Organization: Organization is the structure process which people interact for the actualization of objectives.

3.          Satisfaction Package: This is a situation whereby workers in the organization express the satisfaction with the sum total of fringe benefit provided by the organization.

4.          Employer: This is the person who employ people to work for him and in between pays for their services under a contract of employment.

5.          Performance: This is the effort expended by the workers so as to attain the desire objectives of the organization.

6.          Goal: This is the aim, objectives or desire which an individual strives to achieve in the organization.

7.          Worker: A person that is employed by the organization and render services for fringe benefit and salaries.

8.          Management: This is the process of planning organization, staffing, directing, controlling, reporting and coordinating the necessary human and material resources of the organization. For the realization of the organizational objectives in the study, management refers to the group of people responsible for carrying out the above activities.

9.          Civil Servants: This is refers to as worker or the employee working under government establishment, education per status, local house of assembly, etc.

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