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Chapter one

1.0 Introduction to the Study

Wage and salary administration is part of any organization’s entire compensation packages (public or private sector).

Wages and compensation are designed to recruit, retain, and incentivize employees to do their best. To ensure that personnel cooperate on an ongoing basis.

To ensure that the organisation attracts the correct type of people and that employees can maintain a fair level of living. It helps to reduce employee turnover.

The incentive programme involves paying an employee a bridge that reflects his productivity and value to the organisation. Equity requires that what ‘A’ receives in comparison to ‘B” be justified in terms of ‘B’s’ productivity in the same organisation.

The ultimate goal of an incentive payment system is to increase productivity, hence each incentive payment system utilised must be justifiable in terms of driving employees to be more productive.

In the private sector, SONA Breweries Nigeria Plc reviews wages and salaries on a regular basis through negotiation between management and employee representatives. Additionally, employees’ pay are paid on time.

The payment of a double increment and a productivity bonus. Also known as the 13th month salary, this is a frequent practice in the private sector.

If a country’s overall productivity is high, wages and salaries are likely to be high as well. And it continues to be changed in accordance with productivity trends; for example, the Udoji Commission awarded enhanced pay to workers in 1974, which resulted from the commission’s assessment of the Nigerian economy, which found a rise in productivity levels.

Job evaluations are rated based on the relative amount of skills, effort, mental attentiveness, knowledge, and purpose. An engineer in a company earns more than technicians. There should be equal remuneration for equal work.

Intrinsic rewards are found in the job’s features, such as the task, duties, and employment characteristics outlined in the job description. The term “extrinsic rewards” refers to the monetary compensation associated with the job.

Indeed, wage and salary administration determines or influences productivity in any organisation. What is pay and salary administration? What impact does pay and salary administration have in productivity?

Why should employees or workers be motivated? Are there incentives in the private sector, such as SONA Breweries Nigeria Plc.? These are some of the important topics raised in this study.

1.1 Statement of the Problem

Wage and salary administration is the most important part in achieving organisational productivity. This is the major issue confronting most organisations, and it has deprived them of achieving efficient and effective wage and salary administration.

This cannot be overstated because it will help to improve employee productivity, efficiency, and morals of the firms, ultimately leading to organisational effectiveness.

1.2 Study Objectives

1. Identify the organization’s wage and salary rules, objectives, and procedures.

2. Assess the effectiveness of wage and salary administration as a technique for increasing organisational productivity.

3. To investigate the relationship between wage and salary administration in the private sector and employee performance, with a focus on employee performance.

4. Evaluate the performance of wage and salary administration.

5. To assess the effectiveness of wage and salary administration as tools for motivating, promoting, training, and developing employees in order to increase productivity.

6. Determine how wages and salaries might help to increased employee productivity in their organisation.

1.3 Research Hypothesis

Based on the problem identified, the following hypotheses are

generated, and will be examined to determine the level of correlation between the hypothetical statement and the research results.

1. Ho: There is no substantial difference between the hypothetical assertion and the research results.

2. Hello: There is a substantial gap between the hypothetical statement and the research findings.

3. Ho: No substantial disparities exist between salary and wage administration and employee productivity.

4. Hi: Salary and wage administration differ significantly from employee productivity.

5. Ho: There is no significant relationship between staff training, development, and employee productivity.

6. Hi: There is a considerable gap between staff training, development, and employee productivity.


A. To what extent does motivation influence employee productivity?

B. Is there a strong relationship between wage and salary administration and employee performance?

C. Does training and staff development have an impact on employee productivity?

D. To what extent have wages, salaries, and other incentives influenced organisational efficiency?

1.4 Methodology.

In this work, data was collected through accessible textbooks in libraries, SONA Breweries Nigeria Plc, House Journals Newspapers, Magazines, a questionnaire administered directly to the staff of the SONA Breweries Nigeria Plc department, Direct Personal Interviews, Indirect Oral Interviews, the Mailed Questionnaire Method, and so on.

The researcher collected data using the satisfied random sampling methodology. The rationale for this is that it is relevant in situations when we have a heterogeneous population (one with various features).

1.5 Scope of the Study

The study will seek to uncover the remote and immediate effects of pay and salary administration on employee productivity in a commercial organisation.

In other words, the study will be limited to the issues raised in the study’s objectives, which are to investigate how the private sector manages wages and salaries provided to employees in their organisation or firm.

1.5 Limitations of the Study

This study examines the impact of wage and salary administration on employee productivity through a case study of SONA Breweries Nigeria Plc, Km 38, Lagos-Abeokuta Motorway, Sango-Ota, Ogun State. The researcher encountered certain issues when doing the study.

The first obstacle encountered was a financial one, and the second was a time factor, as the research was done alongside academic work and other daily activities. Third, there was insufficient cooperation from the respondents, since some were hesitant to answer the majority of the questions posed by them.


The significance of this study is that it investigates strategies to ensure optimal productivity or efficiency through proper worker motivation inside an organisation, say in the private sector, such as SONA Breweries Nigeria Plc. All organisations place a premium on the use of labour to achieve organisational goals. Thus, in bureaucratic organisations, wage and salary increases are critical to employees’ efficacy and efficiency.

The research project provides an opportunity to gain in-depth knowledge about how the human and technical elements can be controlled to improve or increase earnings and compensation.

The study is also relevant in that it suggests ways to boost wages and pay. In SONA Breweries Nigeria Plc.

1.7 Chapterization.

The researcher emphasises the need of being efficient in all aspects and doing the right thing at the right time. The purpose of the research is to show that efficient wage and salary administration can improve organisational productivity and inspire employees to perform better.

Good pay and salary administration is critical in any business for achieving the whole organization’s goals and objectives in a short period of time, making it difficult to separate.

1.8 Definition of Terms

WAGES: It can be defined as remuneration paid to employees on an hourly basis.

SALARIES: This is defined as remuneration paid to employees on a monthly basis.

ADMINISTRATION: It can be defined as the planning, organising, and controlling of a company’s activities in respect to direct and indirect payments made to employees for the work they complete or the services they provide.

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