Impact of Employee Remuneration on Productivity

Imp stand for of Employee requital on ProductivityCHAPTER ONE1.0 IntroductionThe aim of this dissertation is to investigate the accept for and squeeze of employee move over on g everyplacenanceal productivity. The take aim forget focus on family relationship surrounded by wantal techniques and employee capital punishment. To examine the relationship between the take aim of clientele rapture of employee performance. It exit overly investigate the relationship between catch up with and employee performance. And the evaluation and infractment of respect do, which in turn netnister lead to meliorate meshability in an organization. If it is original that organizations assets atomic add up 18 its lay down force, it is imperative that they fit that they ar fully god. This is beca theatrical role if the take to the woodsers perceive that they argon poorly remunerated, their performance is yieldlely to clear and this go forth have nix effects on the or ganization.It is authorized to n adept that there atomic number 18 several theories of need proposed by dissimilar police detectives including Abraham Maslow, Alderfers ERG Theory, Herzbergs cardinal-factor Theory, Equity Theory, foreboding Theory, McClellands Theory, Goal Setting Theory, McGregors guess X and Y, Ouchis Theory Z etc. (gigabit, 2009 237). These theories have led to the development of various tools of motivation used by organizations to reorganize the saki of their employees. This research will examine the some of these motivation theories and apply them to measure their positive soundness on employee performance as easy as organizational productivity.Managing admits the creation and maintaining of an surroundings for the performance of individual working in concert in groups towards the accomplishment of a common objectives/ goals. A manager basenot do his line of merchandise with push through dwelling what his sight want. To express the importa nce of knowing and taking advantages of motivating factors particularly reflect happiness is the concern of the managers. Their line of products is not to hear to bull people yet earlier to recognize the motivating factors in valet bodying an environment for performance.The base element of human be behaviour is one kind of activity, visible or mental. We whoremonger await at human behaviour as a serial publication of activities, the question that arises, include to what extent fag the activities of human organism be undertaken in whatsoever point in time that is people do things that lead them to accomplish something, moreover individual goals can be elusive, sometimes people know simply why they do things.Management task is to get things do with other people due to global stinting recession which is affecting Nigeria economy, employee ar no longer safe due to un demand retrenchment, layoff , patch upoff compulsory leave etc, employee do not want to baffle in recite to bring forward active participation from employee for the attainment of organizational goal, there should be telephone circuit satisfaction.The word Employee profit to most people refers to coin and usually specie in addition to wages and salaries. However, ancestry satisfaction according to Lawal (1992, pg56) is the favourableness with which employee view their work. Stephen P.etal (2009), define melodic line satisfaction as a persons general situation towards her job. It is obtained when there is a proffer fit between job characteristics and wants of employees, in fact Employee Remuneration is an organizational set up as an embodiment of m all factors, Employee Remuneration has a cause effect phenomenon, one subject that brings virtually job satisfaction is the motivation of the workers.The factors identified by direction to be responsible for Employee Remuneration of workers on the jobs be-Good RemunerationJob EnrichmentJob ContentJob gyration contributi ve job environmentPositive Criticism take part in all level of decision coverEquity share in the organization. cognizance for contribution made in the organization.Since evaluation of focus, professional managers and the writers on anxiety have made a variety of assumptions abtaboo what would string the individual employee (that is the worker) to be contented, for example, the handed-down guess of organization that a system of reward and punishment should be used to suck out the desire behaviour.This is implemented through wages package base on productivity of an employee e.g. Taylor polariate system ground on the necessity not out of love of money. Therefore, this assumption naturally lead to the conclusion that was an important factor that commodious the workers on the job. In belated 80s, managers started to witness frequent realise with workers who appeared to be suspicious of wariness and also are unimpressed by money, un relate about productivity and self-cent red.Then intuition of for workers be follow a major challenge to counselling in view of the fact that a simple solution to the line did not exist. From the above it consequently implies that for organization to addition employee performance, managers need to be much more sophisticated in catch of employees behaviour in an system. The intellectual will provide basic ingredient for the intentioning and incorporating. Employee profit strategies into the policy and objective of the mention-up on the total neglect is assailable of having a great(p) adverse effect on the institutional objective specially on the long keep going.Employee resentment of the scientific solicitude system led to the adaption of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes homework to fill up this desire as it involves an increase in the level of responsibility for planning and co-coordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). tally to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the possible action of job enrichment is a practical application of Herzbergs hygienics scheme, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).1.1 Background to the studyIn Nigeria, there is a complete dearth of studies that looked into this effective management tool in organisations. Therefore, this study will carry out primary research amongst employees in a Nigerian banking sector. It is important to find out whether labour performance can be ameliorated through salary which can be in term of monetary and non- pecuniary remuneration/reward in the Nigerian working environment. consequently, the research into reward and motivation has become necessary in order to alert Nigerian empl oyers on the need for adequate motivation, some(prenominal) fiscal and non-financial to ensure commensurate employee performance. penury commences with a need, vision, dream, or desire to fulfil what seems impossible. Employers desire their employees to have a dynamic attitude to everything. In their opinion, this attitude assures an increase in productivity (Maxwell et al, 2008 432). In todays increasingly changing world, both employee and employers are trying to find delegacys to make jobs more meaningful and indulgeing. wholeness of the ways to do this is to redesign jobs to better meet new requirements. The re-engineering of jobs has been a significant labor market occurrence over the last 20 years. The design of jobs as it relates to employee participation, flexible working and employee/group independence has experienced extensive changes. These changes include the use of several recent HR practices e.g. employee involvement programs such(prenominal) as spirit circles, m ore use of job rotation and flexibility, job enrichment, job enlargement, and more work- police squad self-management (Maxwell et al, 2008 432-433). Redesigning has several characteristics of which job enrichment is one. The study of job redesign reveals how various classes of workers diverge from one to another in form of what they need. According to Kreitner and Kinicki (2001) cited in Maxwell et al (2008 433), job design or redesign is any set of activities involving the qualifying of specific jobs or interdependent systems of jobs with the intent of improving the case of employee job experience and their on-the-job productivity.Employee resentment of the scientific management system led to the modification of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the level of responsibility for planning and co-ordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the theory of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).The purpose of this research is toweringlighting the impact of employee remuneration on organisational productivity. It is aimed at identifying those attitudes of the management of the company towards its employees that will modify the company to achieve its merged goals. This study is necessary as deficiency of adequate information can hinder organisations from achieving set goals, which usually amongst many others is profit maximisation.1.2 Aims and ObjectivesThe main aim of this study is to know the importance of employees remuneration to the job satisfac tion of the workforce, and theoretically it is to identify the various motivational incentive and summarise the various view of managers on the impact of these incentives on employee.Also this study aims to prise Access bank plc success vis-a-vis rewarding their staffs.ObjectivesThe objective of this study is to examine, The Impact that Employee Remuneration has on organisational Productivity in the this, the researcher will attempt to examine the succeeding(a)-To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction1.3 STATEMENT OF THE conundrumHuman being as individual has a unique characteristic which is distinct from others, therefore in an organisation that has over one thous and workers, it subject matter there would be distinct kind of characteristics. Employee remuneration as a psychology creation calls for a thorough assureing of employees need which will enable the management to choke them with the corporate need in order to have an equitable mix that will enhance the realisation of the overall objectives of the overall objectives of the organisation and employee.On a proximate look at most organisation, the essential inalienable factors have not been correctly addressed by contemporary organisation, no wonder we have eminent rate of incessant strike witnessed by these organisations over the year.The problem therefore is how to maintain an equitable compensation package of fulfilling the determination of both the employee and employers in such a way that an equilibrium social interaction will be keep. It is therefore important for the organisation to realize the provision of innate factor that satisfy the need urges, want and aspiration of workers would have a long run effect on the profitability base of the organisation which are fundamental criteria for the standard of Employees Remuneration.CHAPTER TWOLITERATURE REVIEW2.0 IntroductionIn this chapter, the researcher proposes to critically consider a number of theories of motivation that are relevant to the study. In addition, the researcher will examine the impact of employee remuneration, and the relationship between job enrichment and employee performance.To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction2.1 pauperism TheoriesMotivation deals with the factors that shape peoples behaviour. The three components of motivation identified by Arnold et al (199 1) cited in Armstrong (2002 56) are 1) direction 2) effort and 3) persistence. In a work environment, employees can self-motivate by seeking and engaging in activities that will lead them to achieve set goals (intrinsic motivation) or be motivated by management through various reward systems (extrinsic motivation) (Armstrong, 2002 56).Earlier views on motivation, albeit not always perfect, have proved to be an important part of the foundation for evolutionary development. Motivation is a blend of factors that pokes peoples actions and it can be class as individual, group and organizational motivation. The different theories of motivation, in their different ways facilitate our correspondence of the complex process of motivation and the fact that there are no straightforward answers to motivating anybody (Armstrong, 2002 57).Scientific management sees money as the primary human motivator, era the view of human relations is that social factors are the primary human motivator (Sari n, 2009 237). Frederick Winslow Taylor, who is known as the father of scientific management, focused on applying the concepts of science to improve issue by relying on the use of observation, measurement, analysis and improvement of work methods, and economic incentives. His study of work methods in great token identified the best process for doing each job and laid emphasis on payoff. This theory was not particularly favoured with workers, who entrustd that it was not fair to increase output without a commensurate increase in reward (Stevenson, 2002 21 cited in Maxwell et al 2008 433). The instrumentality theory of motivation derived its roots from the scientific management theory of Taylor and also emphasized the importance of money as the main reason people work. Hence, rewards or otherwise should be linked directly to performance. However, this theory fails to take into regard other human need that could affect performance (Armstrong, 2002 57).This omission gave rise to th e inescapably theory, the basis of which is the belief that an unfulfilled need creates a sense of anxiety. Therefore, in order to create a sense of fulfilment, once a need is identified, a pattern of fulfilling it mustiness be set out. However, not all call for are important at a given time in a persons life. Some ineluctably are more imperative than others (Armstrong, 2002 58). Abraham Maslows theory (1940) cited in Sarin (2009 237) is said to have ground his theory on Henry A. Murrays postulation that people seek to satisfy their various needs at the same time, kind of than in a specific order. Murrays Manifest contends however did not arrange the identified needs in any particular order of importance, foreign Maslows hierarchy of a set of pentad needs Physiological, Security, Social, Esteem and Self actualization each of which is related to the other and arrange in order of hierarchy. According to him, once a need is met, it does not motivate a persons behaviour aga in. However, it is possible to either move up or down each of the levels depending on whether a need has been fulfilled or the realization of a need is being endangered (Sarin, 2009 237).McClelland (1975) identified three needs achievement, affiliation and power that motivates managers. However, while agreeing with Maslow that motives are part of the personality, he is of the opinion that they are caused by environmental factors. The levels of these needs are dependent on different individuals. While some may have a higher need for achievement, others may desire affiliation or power (Armstrong, 2002 58).Herzberg (1959) based his theory on two sets of factors extrinsic and intrinsic that were directly relating to job satisfaction and dissatisfaction. Extrinsic factors are referred to as hygiene or maintenance factors and they are linked to job environment, job context e.g. quality of supervision, work conditions, company policies, relationship with co-workers and level of compen sation. Job dissatisfaction may occur where there are no extrinsic factors. intimate factors referred to as motivators or growth factors, on the other hand, relate to the job itself e.g. the complexity of work, level of importance with the organization as well as promotion opportunities. The resultant effect of intrinsic factors is a high level of job satisfaction, which according to Herzberg will prevent dissatisfaction and create a positive attitude to work (Di Cesare and Sadri, 2003 36). Essentially, businesses should study the motivator factors and hygiene factors with a view to optimize motivation and productivity among employees (Maxwell et al, 2008 436).Some managers hold the view that employee can be motivated to improve productivity by center of monetary incentives. The monetary scheme may be take a variety of different form example cost rate, individual bonus, a team or group bonus scheme , a high pay rate system and profit sharing plan. both these have been packaged t o motivate employees so as to improve on their performance. However, the general problem of monetary incentives is that they are effective in the short run but not necessary cost effective, on the other hand, money can motivate depending on the individuals need for money. Money is not an end itself but actor of satisfying needs, employee remuneration proceeds high organisational productivity his for workers to be satisfied with their job, there is need to study the various motivation theories postulated by management experts.Motivation theories have series of theories, that is complementary to one another. The leading theory are listed below and summarised in table 19.1. the most significant ones are those concerned with expectancy, goal settings and equity, which are classified as process or cognitive theories.2.2 Employee CompensationDessler (2008) define employee compensation as all forms of pay going to employee and arising from their employment. He also stated that the compens ation can be in two forms and they are direct financial payment and indirect financial payment. Direct financial payment can come in form of wages, salaries, incentives, commission and bonuses. While indirect can be in form financial earn like employer- gainful insurance and vacations.All these are strategy of remuneration, Baron A Armstrong M, give their own contribution towards the strategy of remuneration that the implication of human chapiter theory is that investment in people adds to their value to the firm.2.2.1 Why should organisations compensate Employee?According to Stephen P. Robbins David A. Decenzo (2005, pg211) when an organisation design its overall compensation package, it has to look further than just an periodic wages or yearly salary. It has to take into account another element, attains. They even include that employee remuneration are non financial rewards designed to enrich employees live. This has grown a great importance in the life of an employee and a variety over the past years. Also stated that non financial reward should also put into consideration , if an employee invest their human capital into the firm they have to obtain a return not only in form of opportunity to grow and to achieve but also in terms of being valued to their employer.This authors opinion is different from other peoples opinion they include that organisation should have array of benefit such as paid time off from work, life and disability insurance, retirement programs and health insurance. While some of this benefit are been paid by both employee and employer, such benefits are retirement and health insurance.2.3 Employee RemunerationThe word Employee Remuneration to most people refer s to money and usually money is addition to wages and salaries. In fact employee in any organisation set up as an embodiment of many factors. Employee remuneration has caused effective phenomenon, one area that brings about employee remuneration is motivation of the workers In fact employee remuneration in any organisation set up embodiment of many factors. employee remuneration has caused effect phenomenon, one area that brings about employee remuneration is motivation of the workers. The organisations identified to be responsible for employee remuneration of workers are as followsJob EnrichmentJob RotationJob ContentConducive Job EnvironmentEquity Share in the organisationParticipation in all level of decision processPositive criticismRecognition for contribution made in the organisation.Since evaluation of management professional managers and writers on management have made variety of assumption-about what would make the individual employees (workers) to be satisfied for example.The traditional (theory of organisation that a system reward and punishment should be used to elicit the desire behaviour, this is implemented through a compensation packages, based on productivity of employee example of Taylor differentiates payee system of based on the ass umption that employee work out of necessity not out of love of money.Therefore this naturally led to the conclusion that money was an important factor that satisfied the workers on the job. In the late eightys (80) and ninetys (90) managers started to witness frequent encounter with workers who appeared to be suspicious of management in view of the fact that a simple solution to the problem of did not exist, in addition it may be noted that when considering some traits of workers.The commiserateing will provide the basic ingredient for designing and incorporating employee remunerations and strategies into the policy and objective of the organisation as it is total neglect is capable of having a great pressurize effect on the organisation objective especially in the long run. Reilly P. Williams T. (2006) Support that for employee remunerations to be effective HR needs the support of the top team. An unresponsive CEO can be the a major block on getting people management issue prope rly on the agenda. Even when the HR handler is low in the pecking order, well behind the chief financial officer information officer, the same result will occur. So HR director as a person needs to be respected by the board, executive etc. need to support and understand what HR is doing. This simply nitty-gritty another way for HR to motivate staff is to have a good relationship with senior management and with employees.2.3.1 When should an employee is well remunerated?The characteristics of the job need of the individual, it is clear that there are numerous variable between people and their jobs that helps to limit their relationship. It must be noted that the concept of employee remuneration is psychological, it relates to these forces operating at bottom individual employees.The underlying problem is therefore, that management should attempt to strike a balance so as to satisfy the interest of both the organisation and the workers. The human race of management observed that emphasis of high employee remuneration shifted away from the job itself to labour.In simplistic term, an employee organisation productivity can be define as being determined by the level and interaction between ability and motivation thusOrganisation productivity is depending on(p) on a number of factors such as skill (liability appropriate for assigned job)motivation and role clarify (a clear understanding of assigned role).Another way that Reilly Williams T add their support to how HR activity can influence the way to manage their staff, it will be encouraging line managers to allow electron orbit for employee involvement and space for employees to act in practical terms, that this might be supporting the consultation of staff if changes are afoot.Also it is the duty of HR to determine whether the employee is due to be reward, out front the department can come to conclusion, such employee have to go through the performance appraisal process which contains three locomoteDefine the job- the agent that the employee understand the nature of the job that he/ she has to do in the organisation and to do it to the organisation standardsAppraising performance- Dessler G defines this as comparing your subordinates actual performance as to the standard that have been set this usually involves some types of rating form.Feedback session- here is the situation where two of you debate on employees performance and progress, an d make plan for any development.There various methods of appraisal methods such as graphic rating scale, Alternation be method, paired comparison method, squeeze distribution method etc. I will try and expansiate on two of this methodsPAIRED COMPARISON order- this is a method whereby the two employee together in terms of quantity of work, quality of work , behaviour, how they react to work whenever they have been called, team work and so on. brilliant RATING SCALE METHOD- this method can be refer to as the simplest and what most organisation prefer to use for appraising staff performance. suppositious FRAMEWORKTo provide the mandatory theoretical background for the study attempt will made to review literature of motivation as a means of achieving employee remunerations.RewardReward can be described as a way which one is been compensate what been done either good or bad, it can also be called benefit that is given to an employee or group of people in an organisation. This can be done directly or indirectly. It usually use to encourage people at work to be able to put more effort in work that need to be done. This usually done when an employee want to sign a contract with an organisation or company such employer needs to allow the employee to be fully aware what the package of the income will be per annum or hourly paid if such an employee is interest he or she is going to sign the contact form. There are two types of rewards, they are financial and non financial rewards. financial Reward also can be refer to as an ince ntive which can be in form of financial reward given to an employees whose product exceed predetermined standard that is the production is beyond what the organisation expectation.This can also be in form of pay structure, incentives and benefits this three usually has it important role to play in implementing strategies in an organisation. firstly, For a high level of pay or benefits relative to that of competitors can ensure that the company attracts and retains high quality employees, but this might have a negative impact on the companys overall labour cost. Secondly, by tying pay to performance, the company can elicit specific activities and level of performance from employee. In a study of how compensation practices are tied to strategies, researchers examined 33high- tech and 72 traditional companies. They classified them by whether they were in growth stage. They found that high-tech companies in growth stage (greater than 20percent inflation- adjusted increases in annual sa les) or a maturity stage. They found that high-tech companies in the growth stage used compensation systems that were highly geared towards incentive pay, with a lower percentage of total pay devoted to salary and benefits. On the other hand, compensation systems among mature companies (both high-tech and traditional)devoted a lower percentage of total pay to incentive and a high percentage to benefits. (Noe.et.al 2003 pg 69).Organisation believe that given an employee incentives after profit is another way of motivating an employee to put more effort to his /her work this reward can be inform of profit sharing, salary increase,Non- Financial reward2.5 Job satisfaction you need to talk on job satisfactionEmployee performance pg66 amstrong hand bk2.6 What is Motivation shadower every behaviour there is motive, that is all behaviour is motivated, behaviour psychologist agree that what motivate individual is the satisfaction of their needs but do not develop generally acceptable clari fication of needs, several theories of motivation of worker. These theories can be grouped into two major categories.The satisfaction or content theoriesThe instrumentally theoriesThe satisfaction or content theories assume that human beings have needs and its their desire to satisfy these needs that limitation to specific behaviours. The instrumentality or process theories are based on the assumptions of that the part which leads to a goal is influenced by the reception and values of members of the organisation.The theory of Maslow, Adeifer, Herzberg are example of theory of needs satisfaction theories. Vroom porter, Lawal and Jacque are example of instrumentality of theories.Lawal (1993), says Motivation is a persuasive function that come across all aspect of employees development, the need for motivation can be viewed from following perspectives.Qualified manpower must be attracted and maintain in organisation ton makeOnce employed workers must be motivated to exercise their tim e and energy in achieving the predetermined goals of the organisation.Human resources are most important factor of production in an organisation and must be maintained and developed.The reasons highlighted above suggest that the creation of conducive working environment employee remuneration are the requirement for achievement of organisation success.Hence it is necessary for manager to understand what motivate workers and how motivation influence organisation productivity. In brief, motivation is an inner state that energize activates or more directs or channel behaviour towards goals/objectives.Motivation therefore is a general term used to denotes relationship between needs and the fulfilment of needs. It is dynamic process that this five (5) parts.Deprivation, presence of need (NEEDS)Need crystal led as want (WANTS)Action, goal oriented behaviour (ACTIONS)Tension or drives to fulfil the need (DRIVES) joy of need that reduce the drive and thus create the need for re-evaluation.Th e above description of motivation process may not be enough to explain employees behaviour, some theories of some reckoned management writers may be needed for further clarification and explanation. Also there is two types of motivation innate and Extrinsic motivation.Intrinsic motivation can be define as2.8. MASLOW S HIERARCHY OF NEEDSAccording to Robert (1971), the best known theory of motivation was proposed by MASLOW, who hypothesized that work of every human being there exist an hierarchy of five (5) needs. According to Maslow, human beings have needs that can be arranged in hierarchy of needs, if these needs are satisfied human being will be motivated to perform however a satisfieImpact of Employee Remuneration on ProductivityImpact of Employee Remuneration on ProductivityCHAPTER ONE1.0 IntroductionThe aim of this dissertation is to investigate the need for and impact of employee remuneration on organizational productivity. The study will focus on relationship between motiva tional techniques and employee performance. To examine the relationship between the level of job satisfaction of employee performance. It will also investigate the relationship between remuneration and employee performance. And the evaluation and development of reward process, which in turn can lead to improved profitability in an organization. If it is accepted that organizations assets are its work force, it is imperative that they ensure that they are fully motivated. This is because if the workers perceive that they are poorly remunerated, their performance is likely to drop and this will have negative effects on the organization.It is important to note that there are several theories of motivation proposed by various researchers including Abraham Maslow, Alderfers ERG Theory, Herzbergs two-factor Theory, Equity Theory, Expectancy Theory, McClellands Theory, Goal Setting Theory, McGregors theory X and Y, Ouchis Theory Z etc. (Sarin, 2009 237). These theories have led to the deve lopment of various tools of motivation used by organizations to stimulate the interest of their employees. This research will examine the some of these motivation theories and apply them to measure their actual effectiveness on employee performance as well as organizational productivity.Managing requires the creation and maintaining of an environment for the performance of individual working together in groups towards the accomplishment of a common objectives/ goals. A manager cannot do his job without knowing what his people want. To emphasize the importance of knowing and taking advantages of motivating factors particularly job satisfaction is the concern of the managers. Their job is not to attempt to manipulate people but rather to recognize the motivating factors in designing an environment for performance.The basic element of human behaviour is one kind of activity, physical or mental. We can look at human behaviour as a series of activities, the question that arises, include to what extent can the activities of human being be undertaken in any point in time that is people do things that lead them to accomplish something, but individual goals can be elusive, sometimes people know exactly why they do things.Management task is to get things done through other people due to global economic recession which is affecting Nigeria economy, employee are no longer safe due to unnecessary retrenchment, layoff , payoff compulsory leave etc, employee do not want to put in order to encourage active participation from employee for the attainment of organizational goal, there should be job satisfaction.The word Employee Remuneration to most people refers to money and usually money in addition to wages and salaries. However, job satisfaction according to Lawal (1992, pg56) is the favourableness with which employee view their work. Stephen P.etal (2009), define job satisfaction as a persons general attitude towards her job. It is obtained when there is a proffer fit betwe en job characteristics and wants of employees, in fact Employee Remuneration is an organizational set up as an embodiment of many factors, Employee Remuneration has a cause effect phenomenon, one area that brings about job satisfaction is the motivation of the workers.The factors identified by management to be responsible for Employee Remuneration of workers on the jobs are-Good RemunerationJob EnrichmentJob ContentJob RotationConducive job environmentPositive CriticismParticipating in all level of decision processEquity share in the organization.Recognition for contribution made in the organization.Since evaluation of management, professional managers and the writers on management have made a variety of assumptions about what would make the individual employee (that is the worker) to be satisfied, for example, the traditional theory of organization that a system of reward and punishment should be used to elicit the desire behaviour.This is implemented through compensation package b ased on productivity of an employee e.g. Taylor differentiate system based on the necessity not out of love of money. Therefore, this assumption naturally lead to the conclusion that was an important factor that satisfied the workers on the job. In late 80s, managers started to witness frequent encounter with workers who appeared to be suspicious of management and also are unimpressed by money, unconcerned about productivity and self-centred.Then recognition of for workers become a major challenge to management in view of the fact that a simple solution to the problem did not exist. From the above it therefore implies that for organization to increase employee performance, managers need to be much more sophisticated in understanding of employees behaviour in an organisation. The understanding will provide basic ingredient for the designing and incorporating. Employee remuneration strategies into the policy and objective of the organisation on the total neglect is capable of having a great adverse effect on the organisational objective specially on the long run.Employee resentment of the scientific management system led to the modification of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the level of responsibility for planning and co-coordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the theory of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).1.1 Background to the studyIn Nigeria, there is a complete dearth of studies that looked into this effective management tool in orga nisations. Therefore, this study will carry out primary research amongst employees in a Nigerian banking sector. It is important to find out whether labour performance can be improved through remuneration which can be in term of financial and non-financial remuneration/reward in the Nigerian working environment. Hence, the research into reward and motivation has become necessary in order to alert Nigerian employers on the need for adequate motivation, both financial and non-financial to ensure commensurate employee performance.Motivation commences with a need, vision, dream, or desire to achieve what seems impossible. Employers desire their employees to have a can-do attitude to everything. In their opinion, this attitude assures an increase in productivity (Maxwell et al, 2008 432). In todays increasingly changing world, both employee and employers are trying to find ways to make jobs more meaningful and satisfying. One of the ways to do this is to redesign jobs to better meet new requirements. The re-engineering of jobs has been a significant labor market occurrence over the last 20 years. The design of jobs as it relates to employee participation, flexible working and employee/group independence has experienced extensive changes. These changes include the use of several recent HR practices e.g. employee involvement programs such as quality circles, more use of job rotation and flexibility, job enrichment, job enlargement, and more work-team self-management (Maxwell et al, 2008 432-433). Redesigning has several characteristics of which job enrichment is one. The study of job redesign reveals how various classes of workers vary from one to another in form of what they need. According to Kreitner and Kinicki (2001) cited in Maxwell et al (2008 433), job design or redesign is any set of activities involving the alteration of specific jobs or interdependent systems of jobs with the intent of improving the quality of employee job experience and their on-the-job p roductivity.Employee resentment of the scientific management system led to the modification of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the level of responsibility for planning and co-ordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the theory of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).The purpose of this research is highlighting the impact of employee remuneration on organisational productivity. It is aimed at identifying those attitudes of the management of the company towards its employees that will enable the company to achieve its corporate goals. This study is necessary as lack of adequate information can hinder organisations from achieving set goals, which usually amongst many others is profit maximisation.1.2 Aims and ObjectivesThe main aim of this study is to know the importance of employees remuneration to the job satisfaction of the workforce, and theoretically it is to identify the various motivational incentive and summarise the various view of managers on the impact of these incentives on employee.Also this study aims to evaluate Access bank plc success vis-a-vis rewarding their staffs.ObjectivesThe objective of this study is to examine, The Impact that Employee Remuneration has on organisational Productivity in the this, the researcher will attempt to examine the following-To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To ex amine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction1.3 STATEMENT OF THE PROBLEMHuman being as individual has a unique characteristic which is distinct from others, therefore in an organisation that has over one thousand workers, it means there would be different kind of characteristics. Employee remuneration as a psychology concept calls for a thorough understanding of employees need which will enable the management to blend them with the corporate need in order to have an equitable mix that will enhance the realisation of the overall objectives of the overall objectives of the organisation and employee.On a closer look at most organisation, the essential intrinsic factors have not been properly addressed by contemporary organisation, no wonder we have high rate of incessant strike witnessed by these organisations over the year.The problem therefore i s how to maintain an equitable compensation package of fulfilling the aspiration of both the employee and employers in such a way that an equilibrium social interaction will be maintained. It is therefore important for the organisation to realize the provision of intrinsic factor that satisfy the need urges, want and aspiration of workers would have a long run effect on the profitability base of the organisation which are fundamental criteria for the measurement of Employees Remuneration.CHAPTER TWOLITERATURE REVIEW2.0 IntroductionIn this chapter, the researcher proposes to critically consider a number of theories of motivation that are relevant to the study. In addition, the researcher will examine the impact of employee remuneration, and the relationship between job enrichment and employee performance.To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction2.1 Motivation TheoriesMotivation deals with the factors that shape peoples behaviour. The three components of motivation identified by Arnold et al (1991) cited in Armstrong (2002 56) are 1) direction 2) effort and 3) persistence. In a work environment, employees can self-motivate by seeking and engaging in activities that will lead them to achieve set goals (intrinsic motivation) or be motivated by management through various reward systems (extrinsic motivation) (Armstrong, 2002 56).Earlier views on motivation, albeit not always perfect, have proved to be an important part of the foundation for evolutionary growth. Motivation is a blend of factors that drives peoples actions and it can be classified as individual, group and organizational motivation. The different theories of motivation, in their differen t ways facilitate our understanding of the complex process of motivation and the fact that there are no straightforward answers to motivating anybody (Armstrong, 2002 57).Scientific management sees money as the primary human motivator, while the view of human relations is that social factors are the primary human motivator (Sarin, 2009 237). Frederick Winslow Taylor, who is known as the father of scientific management, focused on applying the concepts of science to improve production by relying on the use of observation, measurement, analysis and improvement of work methods, and economic incentives. His study of work methods in great detail identified the best process for doing each job and laid emphasis on output. This theory was not particularly favoured with workers, who believed that it was not fair to increase output without a commensurate increase in reward (Stevenson, 2002 21 cited in Maxwell et al 2008 433). The instrumentality theory of motivation derived its roots from the scientific management theory of Taylor and also emphasized the importance of money as the main reason people work. Hence, rewards or otherwise should be linked directly to performance. However, this theory fails to take into consideration other human needs that could affect performance (Armstrong, 2002 57).This omission gave rise to the needs theory, the basis of which is the belief that an unfulfilled need creates a sense of anxiety. Therefore, in order to create a sense of fulfilment, once a need is identified, a pattern of fulfilling it must be set out. However, not all needs are important at a given time in a persons life. Some needs are more urgent than others (Armstrong, 2002 58). Abraham Maslows theory (1940) cited in Sarin (2009 237) is said to have based his theory on Henry A. Murrays postulation that people seek to satisfy their various needs at the same time, rather than in a specific order. Murrays Manifest Needs however did not arrange the identified needs in any parti cular order of importance, unlike Maslows hierarchy of a set of five needs Physiological, Security, Social, Esteem and Self actualization each of which is related to the other and arranged in order of hierarchy. According to him, once a need is met, it does not motivate a persons behaviour again. However, it is possible to either move up or down each of the levels depending on whether a need has been fulfilled or the realization of a need is being endangered (Sarin, 2009 237).McClelland (1975) identified three needs achievement, affiliation and power that motivates managers. However, while agreeing with Maslow that motives are part of the personality, he is of the opinion that they are caused by environmental factors. The levels of these needs are dependent on different individuals. While some may have a higher need for achievement, others may desire affiliation or power (Armstrong, 2002 58).Herzberg (1959) based his theory on two sets of factors extrinsic and intrinsic that w ere directly relating to job satisfaction and dissatisfaction. Extrinsic factors are referred to as hygiene or maintenance factors and they are linked to job environment, job context e.g. quality of supervision, work conditions, company policies, relationship with co-workers and level of compensation. Job dissatisfaction may occur where there are no extrinsic factors. Intrinsic factors referred to as motivators or growth factors, on the other hand, relate to the job itself e.g. the complexity of work, level of importance with the organization as well as promotion opportunities. The resultant effect of intrinsic factors is a high level of job satisfaction, which according to Herzberg will prevent dissatisfaction and create a positive attitude to work (Di Cesare and Sadri, 2003 36). Essentially, businesses should study the motivator factors and hygiene factors with a view to optimize motivation and productivity among employees (Maxwell et al, 2008 436).Some managers hold the view that employee can be motivated to improve productivity by means of monetary incentives. The monetary scheme may be take a variety of different form example price rate, individual bonus, a team or group bonus scheme , a high pay rate system and profit sharing plan.All these have been packaged to motivate employees so as to improve on their performance. However, the general problem of monetary incentives is that they are effective in the short run but not necessary cost effective, on the other hand, money can motivate depending on the individuals need for money. Money is not an end itself but means of satisfying needs, employee remuneration proceeds high organisational productivity his for workers to be satisfied with their job, there is need to study the various motivation theories postulated by management experts.Motivation theories have series of theories, that is complementary to one another. The leading theory are listed below and summarised in table 19.1. the most significant ones a re those concerned with expectancy, goal settings and equity, which are classified as process or cognitive theories.2.2 Employee CompensationDessler (2008) define employee compensation as all forms of pay going to employee and arising from their employment. He also stated that the compensation can be in two forms and they are direct financial payment and indirect financial payment. Direct financial payment can come in form of wages, salaries, incentives, commission and bonuses. While indirect can be in form financial benefit like employer-paid insurance and vacations.All these are strategy of remuneration, Baron A Armstrong M, give their own contribution towards the strategy of remuneration that the implication of human capital theory is that investment in people adds to their value to the firm.2.2.1 Why should organisations compensate Employee?According to Stephen P. Robbins David A. Decenzo (2005, pg211) when an organisation design its overall compensation package, it has to loo k further than just an hourly wages or annual salary. It has to take into account another element, benefits. They even include that employee remuneration are non financial rewards designed to enrich employees live. This has grown a great importance in the life of an employee and a variety over the past years. Also stated that non financial reward should also put into consideration , if an employee invest their human capital into the firm they have to obtain a return not only in form of opportunity to grow and to achieve but also in terms of being valued to their employer.This authors opinion is different from other peoples opinion they include that organisation should have array of benefit such as paid time off from work, life and disability insurance, retirement programs and health insurance. While some of this benefit are been paid by both employee and employer, such benefits are retirement and health insurance.2.3 Employee RemunerationThe word Employee Remuneration to most peopl e refer s to money and usually money is addition to wages and salaries. In fact employee in any organisation set up as an embodiment of many factors. Employee remuneration has caused effective phenomenon, one area that brings about employee remuneration is motivation of the workersIn fact employee remuneration in any organisation set up embodiment of many factors. employee remuneration has caused effect phenomenon, one area that brings about employee remuneration is motivation of the workers. The organisations identified to be responsible for employee remuneration of workers are as followsJob EnrichmentJob RotationJob ContentConducive Job EnvironmentEquity Share in the organisationParticipation in all level of decision processPositive criticismRecognition for contribution made in the organisation.Since evaluation of management professional managers and writers on management have made variety of assumption-about what would make the individual employees (workers) to be satisfied for e xample.The traditional (theory of organisation that a system reward and punishment should be used to elicit the desire behaviour, this is implemented through a compensation packages, based on productivity of employee example of Taylor differentiates payee system of based on the assumption that employee work out of necessity not out of love of money.Therefore this naturally led to the conclusion that money was an important factor that satisfied the workers on the job. In the late eightys (80) and ninetys (90) managers started to witness frequent encounter with workers who appeared to be suspicious of management in view of the fact that a simple solution to the problem of did not exist, in addition it may be noted that when considering some traits of workers.The understanding will provide the basic ingredient for designing and incorporating employee remunerations and strategies into the policy and objective of the organisation as it is total neglect is capable of having a great advanc e effect on the organisation objective especially in the long run. Reilly P. Williams T. (2006) Support that for employee remunerations to be effective HR needs the support of the top team. An unsympathetic CEO can be the a major block on getting people management issue properly on the agenda. Even when the HR director is low in the pecking order, well behind the chief financial officer information officer, the same result will occur. So HR director as a person needs to be respected by the board, executive etc. need to support and understand what HR is doing. This simply means another way for HR to motivate staff is to have a good relationship with senior management and with employees.2.3.1 When should an employee is well remunerated?The characteristics of the job need of the individual, it is clear that there are numerous variable between people and their jobs that helps to determine their relationship. It must be noted that the concept of employee remuneration is psychological, it relates to these forces operating within individual employees.The underlying problem is therefore, that management should attempt to strike a balance so as to satisfy the interest of both the organisation and the workers. The reality of management observed that emphasis of high employee remuneration shifted away from the job itself to labour.In simplistic term, an employee organisation productivity can be define as being determined by the level and interaction between ability and motivation thusOrganisation productivity is contingent on a number of factors such as skill (liability appropriate for assigned job)motivation and role clarify (a clear understanding of assigned role).Another way that Reilly Williams T add their support to how HR activity can influence the way to manage their staff, it will be encouraging line managers to allow scope for employee involvement and space for employees to act in practical terms, that this might be supporting the consultation of staff if chang es are afoot.Also it is the duty of HR to determine whether the employee is due to be reward, before the department can come to conclusion, such employee have to go through the performance appraisal process which contains three stepsDefine the job- the means that the employee understand the nature of the job that he/ she has to do in the organisation and to do it to the organisation standardsAppraising performance- Dessler G defines this as comparing your subordinates actual performance as to the standard that have been set this usually involves some types of rating form.Feedback session- here is the situation where two of you debate on employees performance and progress, an d make plan for any development.There various methods of appraisal methods such as graphic rating scale, Alternation ranking method, paired comparison method, forced distribution method etc. I will try and expansiate on two of this methodsPAIRED COMPARISON METHOD- this is a method whereby the two employee toget her in terms of quantity of work, quality of work , behaviour, how they react to work whenever they have been called, team work and so on.GRAPHIC RATING SCALE METHOD- this method can be refer to as the simplest and what most organisation prefer to use for appraising staff performance.THEORETICAL FRAMEWORKTo provide the required theoretical background for the study attempt will made to review literature of motivation as a means of achieving employee remunerations.RewardReward can be described as a way which one is been compensate what been done either good or bad, it can also be called benefit that is given to an employee or group of people in an organisation. This can be done directly or indirectly. It usually use to encourage people at work to be able to put more effort in work that need to be done. This usually done when an employee want to sign a contract with an organisation or company such employer needs to allow the employee to be fully aware what the package of the income wil l be per annum or hourly paid if such an employee is interest he or she is going to sign the contact form. There are two types of rewards, they are financial and non financial rewards. Financial Reward also can be refer to as an incentive which can be in form of financial reward given to an employees whose production exceed predetermined standard that is the production is beyond what the organisation expectation.This can also be in form of pay structure, incentives and benefits this three usually has it important role to play in implementing strategies in an organisation. firstly, For a high level of pay or benefits relative to that of competitors can ensure that the company attracts and retains high quality employees, but this might have a negative impact on the companys overall labour cost. Secondly, by tying pay to performance, the company can elicit specific activities and level of performance from employee. In a study of how compensation practices are tied to strategies, resear chers examined 33high- tech and 72 traditional companies. They classified them by whether they were in growth stage. They found that high-tech companies in growth stage (greater than 20percent inflation- adjusted increases in annual sales) or a maturity stage. They found that high-tech companies in the growth stage used compensation systems that were highly geared towards incentive pay, with a lower percentage of total pay devoted to salary and benefits. On the other hand, compensation systems among mature companies (both high-tech and traditional)devoted a lower percentage of total pay to incentive and a high percentage to benefits. (Noe.et.al 2003 pg 69).Organisation believe that given an employee incentives after profit is another way of motivating an employee to put more effort to his /her work this reward can be inform of profit sharing, salary increase,Non- Financial reward2.5 Job satisfaction you need to talk on job satisfactionEmployee performance pg66 amstrong hand bk2.6 Wh at is MotivationBehind every behaviour there is motive, that is all behaviour is motivated, behaviour psychologist agree that what motivate individual is the satisfaction of their needs but do not develop generally acceptable clarification of needs, several theories of motivation of worker. These theories can be grouped into two major categories.The satisfaction or content theoriesThe instrumentally theoriesThe satisfaction or content theories assume that human beings have needs and its their desire to satisfy these needs that limitation to specific behaviours. The instrumentality or process theories are based on the assumptions of that the part which leads to a goal is influenced by the reception and values of members of the organisation.The theory of Maslow, Adeifer, Herzberg are example of theory of needs satisfaction theories. Vroom porter, Lawal and Jacque are example of instrumentality of theories.Lawal (1993), says Motivation is a persuasive function that come across all aspe ct of employees development, the need for motivation can be viewed from following perspectives.Qualified manpower must be attracted and maintain in organisation ton exerciseOnce employed workers must be motivated to exercise their time and energy in achieving the predetermined goals of the organisation.Human resources are most important factor of production in an organisation and must be maintained and developed.The reasons highlighted above suggest that the creation of conducive working environment employee remuneration are the requirement for achievement of organisation success.Hence it is necessary for manager to understand what motivate workers and how motivation influence organisation productivity. In brief, motivation is an inner state that energize activates or more directs or channel behaviour towards goals/objectives.Motivation therefore is a general term used to denotes relationship between needs and the fulfilment of needs. It is dynamic process that this five (5) parts.D eprivation, presence of need (NEEDS)Need crystal led as want (WANTS)Action, goal oriented behaviour (ACTIONS)Tension or drives to fulfil the need (DRIVES)Satisfaction of need that reduce the drive and thus create the need for re-evaluation.The above description of motivation process may not be enough to explain employees behaviour, some theories of some reckoned management writers may be needed for further clarification and explanation. Also there is two types of motivation Intrinsic and Extrinsic motivation.Intrinsic motivation can be define as2.8. MASLOW S HIERARCHY OF NEEDSAccording to Robert (1971), the best known theory of motivation was proposed by MASLOW, who hypothesized that work of every human being there exist an hierarchy of five (5) needs. According to Maslow, human beings have needs that can be arranged in hierarchy of needs, if these needs are satisfied human being will be motivated to perform however a satisfie