Impact of Employee Welfare Services in Emenite Co Ltd

ABSTRACT

This research is aimed at examining the impact of Employee welfare services in business organizations n Nigeria. It is organized into five chapters.

Chapter one deals with the introduction which presents the background of the study where the topic under study was introduced, statement of the problem under study was given. The objective of the study research quotations, the significance of the study, delimitations, and definition of terms was dealt with.

In chapter two, a review of related literature to the topic of study was extensively made.
Moreover, in chapter three, the research design and methodology describing our respondents, and methods of data collection were explained.

Chapter four dealt with data collected and analyzed, the researcher found out that the management of Emenite co. ltd, and is not serious with the provision of welfare services.
This inadvertently affected the productivity of the workers, which is poor.

The research recommended that the services of the company to the employees should be looked into and improved upon so that the workers will perform above average to avoid strikes, stoppages, and the like.

TABLE OF CONTENT

Title Page
Certification Page
Approval Page
Dedication
Acknowledgment
Table Of Content
Abstract

Chapter One

1.0 Introduction
1.1 Background Of The Study
1.2 Statement Of The Problem
1.3 Objectives Of The Study
1.4 Research Question
1.5 Significance Of The Study
1.6 Delimitation
1.7 Definition Of Terms

Chapter Two

2.0 Literature Review
2.1 Welfarism
2.2 Ministry Of Labour
2.3 The Labour Relation System
2.4 Development Of Welfare Services In Nigeria
2.5 Role Of Trade Union In Welfare Services
2.6 Definition Of Welfare Services
2.7 The Importance Of Welfare Services
2.8 The Employees Needs And Objectives
2.9 Communication With Employees
2.10 The Role Of Employee’s Association In Welfare Services
2.11 The Role Of The Government In Welfare Services
2.12 Definition Of Business Organization

Chapter Three

3.0 Research Design And Methodology
3.1 Population Of The Study
3.2 Sample Size
3.3 Research Instrument
3.4 Questionnaire
3.5 Method Of Analysis Of Data
3.6 Validation Of Instrument
3.7 Questionnaire Administration
3.8 Determination Of Sample Questionnaire

Chapter Four

4.0 Presentation And Analysis Of Data
4.1 Discussion/Statement On The Findings

Chapter Five

5.0 Summary, Recommendation, And Conclusion
5.1 Summary
5.2 Recommendation
5.3 Conclusion
5.4 Limitation
5.5 Areas For Further Research
Bibliography
Questionnaire

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The practice of awarding welfare services to employees has grown tremendously during the past two decades. New types of welfare are added each year and collective bargaining contracts with unions deal as much with benefits as with direct payment.

In any business organization is it private or public, there are set out objectives to be achieved. If that organization is profit-oriented, its continuing existence depends on the degree of the achievement of it\s organization goals. Achievement of the objectives also depends on how judiciously the human and material resources of the organization are managed. If they are well managed, there will be profitable but if otherwise there will be a loss. The accomplishment of this is by giving incentives and benefits to employees called welfare services.

Employers of labor have found out that for them to get full commitment and co=operation from their employees for the achievement of the organizational objectives, the employees well – being should be given priority. Based on this observation, many organizations started to introduce welfare service programs, with the strong belief that a good employee service program will improve employee morale.

The development of welfare services can be traced to the Elizabethan Poor Law Act of 1988. this call for the appointment of an overseer of the poor in every parish to set the able bodies on work and relieve those who could not work, and for the levying by each parish of a local rate to provide the means. This provision was strengthened by the Act settlement of 162 under which everyone had a parish of settlement that was legally obliged to relieve him if he fell into need and under which there began the system of removal of those in need to the parish settlement. Throughout the chequered history of the poor law in the seventeenth and eighteenth century, the British parliament was continently craven to try to make these provisions more effective in the face of the weakness of the local government machinery of their time and the lack of any adequate central administration to enforce standards.

The social security Act of 1953, passed in the make of the great depression was the federal government’s first general attempt at income maintenance on a sustained basis. The Act established two groups of programs.

(a) Social insurance programs – including old age, survivors, disability, and unemployment insurance which distribute income payments, based on prior earnings and tax contribution.

(b) Public assistance programs – for the elderly, the blind, the disabled, and families with dependent children which provide income support based on need alone.

Because benefits under the social insurance programs depend on earning history and labor force attachment, only those with income in the past qualify for full-time payments. Thus those most in need may be excluded.

The welfare service program is not alien to our culture. Traditionally, our chiefs or the influential men are known to have had generous compensation packages for their subordinates or subjects who offered dedicated services. In the researcher’s area of study and other parts of Nigeria, the welfare packages do not only include the amount paid for a job or the fruit of their labor in the form of yams and normal days entertainment but other welfare services such as a parcel of land to cultivate for himself, free seedlings and farm implements, etc.

At times, the employee, if under a chief is given free accommodation in the chief’s palace and such services make the workers happy and always willing to bring out their best whenever called upon to do something.

This situation is the same with modern business organizations. The only difference is in the method of payment and apparent changes in emphasis. The system in a modern business organization is scientific.

Employee welfare services are therefore the supplementary benefits that a worker receives apart from regular wages and salaries.

According to Michael Armartrong and Helen Mutis (1980) employee welfare services are “items in the total package offered to employees over and above salary, which increase their wealth and well–being at the same cost to the employer”.

The last 20 years have seen unprecedented growth in the range of welfare services provided. Some of this growth has been hastily and ill-considered a short–term response to the pressure imposed by the actual or supposed effects of taxation and by the well-publicized activities of the more elements in the salary market.

Nwachukwu (1984) describes it as “something of value apart from the agreed regular monetary payment of salaries and wages given by an employer to an employee.

As earlier stated, welfare scheme exists in all cultures and all organizations and had existed at all times. They are called different names but fundamentally, each name is used to describe the well-being of employees.

Such names are welfare services, welfare benefits, employee benefits, amenities, fringe benefits, etc. Some regard welfare services as employee income, such people call it supplementary compensation or pay and non–wage remuneration. Because such benefits are nontaxable, they are called indirect compensations and nontax benefits.

In the past, some organizations that use the paternalistic approach of management occasionally give out something that could be regarded as “goodies” from the high table of the master, and they are called fringe benefit “marginal benefits”. But now welfare services have grown in size that some companies regard their own as “hidden payroll”.

For a company to achieve its objectives of introducing the scheme, it should be adequate, competitive, and tailored toward the real need of the employee. Some organization lose their employees due to the poor nature of welfare services given to them and also because the employees are influenced by the nature quality and quantity of welfare services offered, in the sense that they do compare themselves with their counterparts in other organizations. In Emenite Enugu, there are some sections where the employee shows a laissez-faire attitude which the researcher might attribute to inadequate welfare services.

1.2 STATEMENT OF PROBLEM

Employees of most organizations because of welfare services attached and not only for the salary. These services include housing, transportation leave allowances, and free medical services, together with pension and gratuity.

There are examples where organizations in recent times have been faced with incessant angulation from the workers union and staff associations because of the inadequate employee welfare services, poor administration of the existing ones, or total withdrawal of these services that attract them.

Emenite company ltd is one of the few industrial establishments still operating in Enugu state whereas other such establishments have been plagued by incessant strikes and shut-downs and in many cases outright downs. One then wonders what makes Emenite tick, and why are their workers happy and highly productive. Is it because of their salary structure or is it the welfare incentives given to their workers?

As companied with other establishments, what welfare incentives does Emenite provide its worker. These and other related issues are what this research waits to unravel.

1.3 OBJECTIVES OF THE STUDY

The main objectives of this study are as follows:-

(1) To obtain information concerning the type of welfare services presently enjoyed by workers of Emenite co. ltd.

(2) To ascertain whether any of the services formally enjoyed by the employees in the company had been withdrawn and the reason for its withdrawal.

(3) To ascertain the problems if any that are encountered by the company in the administration of welfare services.

(4) To find out the truth about the motion that welfare services are one of the motivating factors for increased productivity.

(5) To ascertain the effect, if any, that non-provision of such welfare services has on the company by the impending actions of the employees.

(6) To make recommendations, if any, on the future administration of the welfare services in the company.

1.4 RESEARCH QUESTIONS

To guide the researchers in carrying out a meaningful study, the following research question was formulated:-

1. Has Emenite any welfare scheme for its workers.

1.5 SIGNIFICANCE OF THE STUDY

This study will help Emenite company limited, Enugu to realize the importance of good welfare services for the growth of the company. The study will also enable the company to solve managerial problems that involve welfare services. It will also help the employees to know their legitimate rights as employees, that is to know the welfare services due to them.

The recommendations, if adopted, will help to minimize the frequency of industrial actions by workers other companies will also borrow a leaf from Emenite for smooth operation.

In Nigeria today, both private and public organizations are facing problems because of the poor welfare services received by their workers. This has resulted in productivity in most establishments and some have even stopped operation.

This particular problem has thrown many employees into confusion.

1.6 DELIMITATION

This research work is limited to Emenite co. only and does not pretend to cover any or all such establishment.

1.7 DEFINITION OF TERMS

Frings Benefit:- This is the benefit granted by an employer to an employee that involves a money cost without affecting the basic wage rate.

Remuneration Payment in reward made for work or services rendered.

Welfare Services These and Service Organized for the Improvement of Good Health, Comfortable Living and Working Conditions of Workers.

Industrial Action This is an act whereby Employees Embacked on Strike in order to show

Dissatisfaction.

Laisser – Faire

Attitude Showing Unseriousness or Carefree Attitude Toward One’s Obligations.

Emenite This is a Business Organization Located in Emene, Enugu East Local Government, Enugu State. It Manufactures Building Materials for Example Roofing Sheets.