1.1 INTRODUCTION

BACKGROUND OF THE STUDY

Employer provides work for employees just as an employee enables

organizations and nations to provide or produce goods and services

for the ultimate benefit of mankind (O’ Donnell 2000).

This is essentially in the nation building process where goods are

provided and services rendered economy benefits also come to play.

According to an abstract of employment employer pays the worker

for productivity and services. This is of a symbolic advantage

because just as employees help employers to make profit the

employer also gives wages and salaries to employees to enable them

meet their personal and domestic aspirations.

Failure to pay wages and salaries has resulted in very serious

conflicts in labour and management relation. Therefore wages and

salaries according to Mackenzie is the most significant reward that

would assist workers have good standard of living.

Wages and salary are used as motivational factors or strategies

(Micheal A. 2005). This is explained by piece-rate system which

allows payment of wages in relation to job done in addition people

have been seen to converse for work in organization. Wages and

salaries are not charitable grant by organization but a significant

aspect of the right of workers in the productivity process. Payment

must be made for job done to labor make profit for growth and

development of companies while workers suffer physically and

economically.

The idea of national minimum wage is based on the understanding of

the fact that there must be a border line under which employers must

not fall in the payment of salaries and wages to workers who needs to

maintain a living standard.

1.2 Statement of Problem

This research is carried out to evaluate the administration of wages

and salaries on the performance of government parastatals in

Nigeria with reference to National Eye Centre Kaduna. Despite the

services rendered by individuals in the public sector salary increment

is still a problem.

The agitation for more salary is still on because of the increasing high

cost of living. The global economic crisis has also brought about the

agitation for salary increment in most government and private

organizations by labour unions.

In the case of salary increment this research also recorded poor

wages in Nigeria meaning that services rendered are commensurate

to the wages paid employees. Despite such increment for instance

the Power Holding Company of Nigerian has not provided Nigerians

with adequate power supply. This also goes to the other parastatals

like education water board etc. With all these increments why is the

performance of government parastatals still poor? Could it be that

wages and salaries policies are defective? Is it non challant attitude

of workers? Is it corruption and lack of care? Etc.

Then this research work intends to find out the influence of wages

and salaries policies in government parastatals.

1.3 OBJECTIVE OF THE STUDY

This research work an effort to determine the influence of wages and

salaries policies on the performance of workers in government

parastatals in Nigeria.

i. This work is meant to find out government policies with respect

to administration of wages/salaries in various parastatals under

government.

ii. The research work is also to find out the problem government

parastatals are facing in implementing wages and salaries in

Nigeria.

iii. It is to determine the effectiveness of wages and salary policies

on the performance of personnel working in government

parastatals.

1.4 HYPOTHESES

HI: Increase salaries and wages do influence the performance of

worker in government parastatals in Nigeria.

HO: Increase salaries and wages does not influence the

performance of workers in government parastatals in Nigeria.

1.5 SIGNIFICANCE OF THE STUDY

The significance of this study are:

i. The study is expected to create awareness among

organizations especially government parastatals on the

positive impact wages and salaries policies can have on the

performance of government parastatals.

ii. The study will also help wages and salaries administration

make on how it affects the overall performance of government

parastatals.

iii. The study will also be of importance to students who are

interested in knowing how wages and salaries administration

can affect performance in organizations.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

This research work was conducted to examine the relationship

between wages and salaries administration and the overall

performance in organizations using National Eye Centre Kaduna as

a case study.

1.7 HISTORICAL BACKGROUND

According to the brochure of the federal government of Nigeria

specialist hospital (1996) the National Eye Centre Kaduna is a

federal government owned hospital established under decree 52 of

1979 by Murtala/Obasanjo government.

The decree mandate the centre to provide comprehensive ophthalmic

services training and research. The hospital was designed to have

300 beds 10 consultant clinics 7 operating theatres and several

laboratories in addition to other specialized unit such as x-rays

pathology orthology and optometry services area central sterilization

e.t.c. It is schedule area for pension purpose and listed as federal

government notice 445 published in the federal republic of Nigeria

official Gazette No. 24 volumes 68 of 21 may 1982. It is a parastatal

of federal ministry of health and social services. The centre was

commissioned in December 1992 and opened her doors for out

patient treatment in 1993. In patient treatment and surgical services

soon followed the same year.

The centre has three main arms the administrative service and

training status and technical services each headed by officials or

officers of directorate status.

The functional department consisted of administration and board

secretariat clinical ophthalmology community ophthalmology

engineering services nursing services and national secretariat of the

national secretariat for preventing blindness in Nigeria (NPPB).

1.8 DEFINITION OF TERMS

Basic pay: Pay which is guaranteed from one period of time to the

next. It includes bonus earnings and over time e.t.c.

Disparity: Inequality difference incongruity for the purpose of this

research. It means inequality towards wages and salary payment at

the federal level and at various states.

Remuneration: Payment of services rendered reward or provide

recompense for work or to a person.

Minimum wage: Lowest wage permitted by law or agreement.

NIPPB: National programme for prevention of blindness.

UGSS: United grading and salary structure.