TEY46Y

International Journal of Humanities Social Science and Management (IJHSSM)
Volume 2, Issue 4, Sep.-Oct. 2022, pp: 191-202 www.ijhssm.org
Effect of Salaries and Wages Administration as A

Tool for Improving Employee’s Performance in
Zenith Bank Mubi Branch, Adamawa State -
Nigeria
Rose Ezekiel
Department of Business Administration and Management, the Federal Polytechnic Mubi, Adamawa State –
Nigeria
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Date of Submission: 10-09-2022 Date of Acceptance: 25-09-2022
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Abstract like non-monetary, and fringe benefits so as to reap

The objective of the study was to investigate the its positive effects on performance improvement in
effect of wages and salaries administration in Zenith the Bank.
Bank Mubi branch, specifically, four hypotheses
were tested to establish the effects of selected Keywords: Salaries and Wages, Employee’s
compensation variables on performance Performance
improvement. Quantitative research design was
adopted, a census sampling was used thus, the entire I. Background to the Study
employees were sampled and 38 questionnaires Successful businesses rely on several
distributed and were filled and returned representing different types of assets, such as financial capital,
the entire employees in the branch. The reliability real estate, production equipment and powerful
result shows that the overall Cronbach’s Alpha technology. But in today's knowledge-based
coefficient for research instrument ranges from economy, there is no question that employees are
0.750 which is acceptable. Multiple regression the most important asset of an organization. The
analysis was conducted to determine the effect of employees champion the course of the business and
the selected wages and salaries components on determine the success or failure of it, hence the
performance improvement. The studyestablished work employee doesdetermine what customers and
that, there is a strong relationship between wages partners see, so it’s important for an organization to
and salaries administration and performance treat the employees with the value they bring. Thus,
improvement as denoted by 87.1%. It was also employee efficiency and talent determine the pace
established that in combination, wages and salaries and growth of an organization. Organizations need
administration explained 75.9% variation in to recognize the value their employees have and
performance improvement in the Bank. praise them accordingly. When employees feel
Subsequently it was concluded that, financial valued, they gladly compete in the race and beat the
compensation is an effective predictor of competition.
performance improvement β=0.398, p=0.000<0.05. According to vplegacies.com, (2019)
While fringe benefits β=0.312, p=0172 >0.05, non- improving employee efficiency and performance has
monetary incentives β=0.143, p=0.268>0.05., become a major priority for any organization. It is
employee’s perception of wages and salaries the employees that produces the final product, take
administration β=0.146, p=0.533>0.05 jointly are care of finances, promote the business, and maintain
not effective predictor of performance improvement the records for decision making. Thus, if an
in the Bank.the study recommends that, the organization does not have happy and satisfied
management should pay close attention on financial employees, they will not deliver performance-
compensation as it appeared to be an effective oriented results, therefore reducing the profits of the
predictor of performance enhancer in the midst of organization because, the employees are the most
other compensation packages. While efforts should valuable assets an organization has. It’s their
be intensified towards other compensation packages abilities, knowledge, and experience that can’t be
| Impact Factor value 7.52 | ISO 9001: 2008 Certified Journal Page 191
replaced. Hence, organizations need to place employees are willing to work and produce expected
emphasis and importance on the contribution the and desired results for their organizations when they
employees they have in order to propel themselves feel, the organization treat them fairly, listen to their
ahead. plights, give them the opportunity to showcase their
In today’s business environment where strengths.
competition is so fierce and change is fast, where Chron Contributor, (2020) said that, people
technology can be short-lived and where customers are often motivated by money, and that the salary a
demand more quality products and services at lower worker is paid by his employer can have a great
price, the survival, growth and effectiveness of influence on his performance. More so that, an
organizations have become major causes of concern employee doesn’t simply view his salary as a Naira
and tasks which management of organizations are amount, he sees it as the value his employer places
striving hard to achieve. As opined by Obiekwe, on him as a worker. The level of appreciation he
(2012) that employees are now seen as the life blood feels can have a direct impact on his overall
of organizations, as well as tools in moving performance.Thus, an employee is more likely to
organization from where they are at present to perform to his potential if he’s happy with the salary
where they want to be in the future Nwaeke, and he is earning. An employee earning a high salary
Obiekwe, (2017), and Olufemi, (2009)has noted feels motivated to do a good job, because he wants
that human elements constitute a major factor to to please his employer to retain his position. His
organizational survival especially in today’s salary brings him a feeling of security, allows him to
environment where all provide almost the same feel accomplished and gives him a high-status
products and services. This is because machines will ranking that he enjoys. And an employee is much
rust away if there are no qualified and capable more willing to put in extra hours at the office if he
employees to use and maintain them. feels his financial rewards, are a fair trade-off. It
The importance of employees’ performance implies then that, poor wages and salaries
in an organization can never be over emphasized. administration induces low performance as there
Thus, Leonard, (2019) postulate that business will be less motivation for employees to strive for
owners need employees that are able to get the job excellence.
done, because employee performance is critical to Consequently, ensuring by an organization
the overall success of the organization. Hence, that its employees’ wages and salaries are paid as at
leaders of organizations need to understand the key when due, been certain that wages and salaries paid
benefits of employee performance so that they can can satisfy the basic physiological and safety needs
develop consistent and objective methods for of their employees, which when satisfied, one can
compensating employees. Leonard, (2019) further expect the employees to put their best effort in order
stated that, one of the most important factors in to achieve the organizational objectives remain a
employee performance is to achieve goals. crucial responsibility on the part of every
Successful employees meet deadlines, make sales organization that wish to improve employees’
and build the brand via positive customer performance. However, according to Pinkal,
interactions. When employees do not perform (2022)wage and salary administration is difficult but
effectively, consumers feel that the organization is an important task before the management, the most
unconcerned to their needs, and will seek help vital factors in deciding the conditions of the
elsewhere. Employees who perform effectively get employment. That wages and salaries are not merely
things done properly the first time. important determination of standard of living and
Greenberg (1987) suggested that a the per capita income of the workers, but master key
surviving organization depends on employees’ to achieve higher productivity and higher morale.
performance which is directly affected by individual To this end, the establishment and im-
job satisfaction at workplace and their commitment plementation of sound policies and practices of
to the organization. In order to achieve increased employee compensation and other areas such as job
and sustainable business result, organizations need evaluation, development and maintenance of wage
to execute strategy and engage employees structures, wage surveys, wage incentives, profit
justifiably. Engaging employees to perform means sharing, wage changes and adjustments,
that the management of the organization owes a supplementary payments, control of compensation
duty to create the needed conducive working costs and other related pay items are essential in
environment which results in job satisfaction, motivating and improving employees’ performance.
organizational commitment and high performance. This is because the primary requirement of
Furthermore, research has shown that most employees is an adequate wages and salaries that
commensurate with the responsibilities and duties core staff of banks earn higher than the contract
involved. staff.
Even though several factors such as level
of experience, type of bank, type of bank staff,
position of job description of the banker are
Statement of the Problem considered in determining wages and salaries of
Finding the right balance between paying employees, the gap existing between the contract
wages and salaries that will help attract and retain and core staff as stated by Chukwuemeka, (2021),
the best and brightest employees and still that salary of contract staff in most Nigerian banks
maintaining profitability is an ongoing challenge is between N50, 000 – N100, 000 monthly
that shows no signs of easing anytime soon. Becker, depending the bank and terms of employment of the
(2016), opined that a business is only as good as its staff, while banking officer are paid about N250,000
employees and a workforce is only as strong as its to N340,000 monthly. The high discrepancy in
weakest connection. Hence wage and salary issues wages and salaries structure in the banking sector is
are so important today so much so that, failure to obvious. It is also observed that some organizations’
smoothly navigate the wage and salary waters can leaders do not appreciate the fact that employees
leave companies with an inadequate workforce or, have to be motivated to ensure high performance for
on the other extreme, excessive payroll costs that eat the achievement of the organizational goals and
into profitability.Yet, properly managing of the objective partly due to the prevailing situation in
human resources function remain one of the biggest Nigeria where supply of labour is greater than its
challenges for many business owners and demand, thereby upholding the view that even if
entrepreneurs. Even though it is stated that a employees are not properly motivated, they cannot
business is only as strong as its employees, and that leave the job since there is no job in the labour
hiring the right employees and retaining them for market.
the long term is one of the most important factors in The primary requirement of all the
the success of any business today(Menerey, 2015). employees is an adequate wages and salaries which
Consequently, job performance of is commensurate with the responsibilities and duties
employees is very important for the organizations involved. Wage constitutes the income of the
without which they cannot survive. Hence, it is vital employees and their standard of living and social
for the organizations to consider employees status depend upon the wages they earn, However,
performance as their main objective. More so they from the above it seems no special attention is paid
need to take care of their employees and value their on the effect of wages and salary variation on
works so that they can perform well in their jobs. employee performance, and most importantly how it
Therefore, in today’s era, different organizations affects effort of employees toward job performance
need different tools and techniques to satisfy their improvement. Hence, this study is set to investigate
employees for gaining maximum work. Therefore, the effect of wages and salaries administration in
organizations need some rules and standards to do Zenith Bank Mubi branch, specifically, the effect of
this such as wages salaries administration. wages and salaries variables on job performance
Ordinarily, it is expected that the most paid improvement in the branch and to test the following
professionals in Nigeria should be employees hypotheses.
working banking and finance sector as one of the Ho1 Financial compensation on employee job
booming areas of the economy. However, this is not performance improvement in Zenith Bank Mubi
totally true in Nigeria because many things come Branch
into play when deciding the amount, a banker is Ho2 Non-financial compensation has no
qualified to be paid (Chukwuemeka, 2021). A significant effect on employee job performance
banker is a person holding an important position in a improvement in Zenith Bank Mubi Branch
bank or who provides financial banking services and Ho3 Fringe benefits has no significant effect on
typically works in a bank. Thus, deciding on wages job performance improvement in Zenith Bank Mubi
and salaries of bankers, the two types of bank staff Branch
come into play namely: Contract staff, referring to Ho4 The perception of employees about wages
staff who are not permanent with the bank. They and salaries administration has no significant effect
only work with the bank pending the fulfillment of on employee performance improvement in zenith
certain terms of contract and core staff, those that Bank Mubi branch
are employed by the bank are partially permanent
with the bank. Research shows that in most cases,
II. LITERATURE REVIEW incentives. According to Firdausi, Shaik, and

Salaries and Wages Administration Tiwari, (2022)incentive is a positive motivational
Establishing and implementation a of influence that helps improve
sound policies and practices of employee employees’performance. Furthermore Firdausi, et
compensation is said to mean wage and salary al., (2022) opined that, salary is the basic incentive
administration. It includes such areas as job for every employee to work efficiently for an
evaluation, development and maintenance of wage organization.
structures, wage surveys, wage incentives, profit
sharing, wage changes and adjustments, The Financial Compensation
supplementary payments, control of compensation In today’s socio-economic condition
costs and other related pay items. According to money has become a very important part of
Pinkal, (2022) the most important aspect of wages employees’ lives. Employees need money to satisfy
and salaries administration is to determine salary almost all their needs as it has purchasing power.
levels which are determined through the process of Thus, financial incentives refer to those incentives
job evaluation after which the other obligations which are in direct monetary form i.e., money or can
include to (a) design and maintain salary structure, be measured in monetary terms, (toppr.com, n.d)
(b) operate salary progression systems, (c) and that, financial incentives can be provided on an
administer and control salary reviews and (d) design individual or group basis and satisfy the monetary
and operate other allowances. and future security needs of individuals. The most
Thus, wages and salaries administration commonly used financial incentives are;basic salary
aresaid to be difficult but an important task before In this end, any payment received by an
the management, these are probably the most vital employee for physical and mental work from the
factors in deciding the conditions of the employment employer for a definite time is referred to as salary,
wages and salaries and not merely important it is a structure of payment from an employer to an
determination of standard of living and the per employee, which may be specified in an
capita income of the workers, but master key to employment contract. While basic salary is a fixed
achieve higher productivity and higher morale. periodical payment for non-manual employees
Amongst all the problems, the workers face, wage is usually expressed in annual terms, paid per month
the most pressing and persistent one. Therefore, with generally no additions for productivity.
wage and salary administration areone important Shields, (2007) views basic pay as an important part
part of human resource management function. It is a of total pay that is fixed and mainly time-based,
vital area of Human Resource activities, hence. An rather than performance-based. Basic pay is the
organization that introduces well distinct/managed largest fraction of the total pay for non-executive
wage and salary package (reward package) can be employees. It also acts as a benchmark for other
able to procure, utilize and retain capable and cash incentives such as profit sharing, which is
effective human resources. So, it is essential for the expressed as a percentage of basic pay
organization to have sound, effective and rational communicates commitment to employees, and is
wage and salary administration (Pinkal, 2022). used as the baseline for assessing other pay systems
Managing wage and salary has become one such as skill and competency pay. Annual bonus in
of the keyeveryday jobs of modern manpower the words of Pinkal, (2022) is a very important
management. It constitutes the major factor in the earning component of employees, besides wage or
economic and social life of any community in an salary.
economic sense; itrepresents payment of
compensation in return for work done. Traditional Fringe Benefits
theorists define wage and salary administration as Fringe benefits are the additional benefits
the process by which wage and salary levels and offered to an employee, above the stated salary for
structures are determined in organizational settings the performance of a specific service, more so that,
(Bhavika, 2022). When an employee payment for some fringe benefits such as social security and
labouror services rendered are expressed in hourly health insurance are required by law, while others
rates is said to be wages, while salary is anemployee are voluntarily provided by the employer, (CFI
paymentexpressed in weekly, monthly or annual Team, 2022). Fringe benefits, are any nonwage
rates. payment or benefit which may include: pension
This implies that, salaries and wages can be plans, profit-sharing programs, vacation pay, and
refers to as incentives and these incentives can be company-paid life, health, and unemployment
broadly classified as financial and non-financial insurance programs) granted to employees by
employers. Fringe benefits like retirement plan, motivators that were more related to personal
gratuity, pension, provident fund, leave encashment, wellbeing and happiness such as: Work/life balance
etc. provide financial security to the employees post (58%), job security (56%), pleasant work
their retirement, thus, they work properly when they atmosphere (55%), and career progression (49%).
are in service. More so, COVID-19 and other recent challenges
According to Mathis and Jackson, (2003) as have left many countries and individual
cited in Chukwudumebi, and Kifordu, (2018)fringe organizations in a difficult financial situation. As a
benefits are forms of indirect compensation given to result, it might be difficult for organizations to
an employee or group of employees as a part of justify raising pay or providing financial bonuses for
organizational membership. While Ajiola (2006) hardworking staff who have helped their
define them as that part of the total reward package organizations get through this challenging time.
provided to employees in addition to base or Fortunately, there are various non-
performance pay. Fringe benefits focus on monetary incentives an organization can use to
maintaining (or improving) the quality of life for motivate their workforce and retain its most
employees and providing a level of protection and valuable employees. Non-monetary incentives are
financial security for workers and for their family designed to recognize a special achievement or the
members, (Oaya, & Mambula, 2019). Like base pay completion of something that enhances an
plans, according to (Adaeze, E.E., Chukwuma, N.P., employee's job performance or value to a company,
and Nnenna, O.C., 2018)the major objective for (Terms Compared Staff, 2020). Such a meritorious
most organizational fringe compensation programs category might include the attainment of a sales
is to attract, retain and motivate qualified, competent goal, the culmination of a special research project or
employees (Bernardin, 2007). graduation from a training program that leads to a
Thus, the goal of providing fringe benefits to desirable certification(Wroblewski, 2019).Non-
employees is to ensure their comfort at the monetary incentives take the form of opportunities
workplace, it also helps the company stand out for or tangible gifts with primary monetary value,these
potential employees. Retaining top employees on incentives encourage risk-taking and innovation to
salary alone in highly competitive markets is a surpass goals, they are inconspicuous and employee
challenge faced by many employers. Fringe benefits reaction is unpredictable and more so, these
serve as additional compensation. When an incentives act as a long-lasting reminder of
employer providesexceptional fringe benefits to employee’s achievement.These non-monetary
employees it helps suchorganization stand out from incentives may include among others.
its competitors. It offers a greater opportunity to Flexible working hours are an employer
attract high value and gifted employees from tool used to reduce employee stress and improve
schools or from competing companies. employee performance and job retention. Flexible
working hours is one of the most innovative ideas in
Non-Monetary Compensation the area of human resource management and the
Apart from the monetary and future security business environment (Adebayo, & Idowu,
needs, an employee also has psychological, social 2020)and can only be an innovation of effective and
and emotional needs and satisfying these needs successful leaders who understand the dynamics of
plays an important role in their motivation. The the increasingly changing global business
focus of non-financial incentives largely on the environment.Coenen, and Kok, (2014) are of the
fulfillment of these needs and cannot be measured in view that workers want flexibility, hence it is
terms of money. However, there are chances that a advantageous because employee happiness and
particular non-financial incentive may also involve well-being result in decreased turnover and
the financial incentive as well. For instance, when improved performance. Growth opportunities as
an employee is promoted, his psychological needs revealed in MTI Events, (2020) career development,
are fulfilled as he gets more authority, his status training, and education opportunities are amongst
increases, at the same time, he has benefitted some of the most highly prized benefits a company
monetarily also as he gets a rise in salary. can offer. Every employee desires growth in an
Even though, in recent research conducted organization and when he gets promotion as an
by (randstad.com, 2020) into employer branding and appreciation of his work he is motivated to work
what employees want from their jobs has shown that better (Firdausi, Shaik, & Tiwari, 2022).Direct
attractive salary and benefits remain the most recognition,employees not only want monetary
important factor for 62% of workers in 2021. compensation but also need to be valued by their
However, this was closely followed by other supervisors as this will increase the employees’
morale. Employees will be well motivated if they both inputs (behavior) and output (results) need to
are recognized by their employers,(Saunderson, be considered. Training and development is any
2004). Recognition means valuing and caring about attempt to improve current or future employee
the employees' contributions. And job security performance by increasing an employee’s ability to
provides future stability and a sense of security perform through learning, usually by changing the
among the employees. The employees are not employee’s attitude or increasing his or her skills or
worried about the future and thus work with more knowledge. The study holds that training as a non-
enthusiasm, (Kumar, 2021 ). Owing to the financial incentive effects employee performance.
unemployment problem in our country, job security On a general level, job performance
works as a great incentive for the employees, describes the contribution of an individual to the
however, negative aspect of this incentive is that, overall success of an organization. On a more
employees tend to take their job for granted and not specific and measurable level, job performance can
work proficiently. be broken down into different factors. Depending on
the framework you use, the factors vary (Koopmans
Employee Job Performance et al. 2011). However, there is a broad consensus in
Job performance according to Nini, (2019) it the scientific community that job performance
is sometimes called work performance is a widely consists of two interplaying components. These are
used tool and metric in management, however task performance and contextual performance. Task
organizations rarely address what it really is, which performance describes the core job responsibilities
dimensions it includes, and in which areas of work it of an employee. It is also called "in-role prescribed
becomes important. There are two major behavior" (Koopmans et al. 2011) and is reflected in
components of job performance, these are: task and specific work outcomes and deliverables as well as
contextual performance and their relevance to the their quality and quantity.Contextual performance
workplace is in various spheres. Organizations who goes beyond formal job responsibilities. Also
incorporate contextual performance into hiring, referred to as "discretionary extra-role behavior"
appraisal and training can gain a competitive (Koopmans et al. 2011). Contextual performance is
advantage and provide information on how the two reflected in activities such as coaching coworkers,
components of job performance interplay in practice strengthening social networks within an
(Nini, 2019). Therefore, the measurement of organization and going the extra mile for the
employee performance is an activity that is very organization. It’s the ability of employees to
important because it can be used as a measure of contribute to the overall well-being of the
success in supporting the success of the organization.
organization’s employees (Said, 2008). One of the most important functions of an
Therefore, employee’s performance is said organization is to ensure that employees are
to be how well employees perform on the job and effective in performing their jobs. However, in
assignments assigned them measured against the recent years, contextual performance is viewed as an
generally accepted measure of performance integral part of overall job performance. Hence, job
standards set by their companies. Meaning that there performance is now view as moving beyond what is
are general expectations expected of employees in considered effective for performance on a task. In
relation to their performance in every company. today’s world, with changes in the global market
Thus, Nadle, (2001) opined that employees can be and increased competition, employees are now
said to have performed when they have met the expected to go beyond what is expected in their job
expectations and performed up to standard. Hence, description.Employees are expected to engage in
factors such as labor productivity including the activities that contribute to the overall well-being of
quantity, quality of work and timeliness are used in the organization. This aspect of job performance is
the measurement of performance (Simamora, 2004). viewed as equally important as task performance.
Performance means both behavior and Examples of contextual performance include
results. Behaviors emanate from the performance volunteering for additional work, being a good
and transform performance from abstraction to organizational citizen, cooperating with coworkers
action. Not just the instruments for results, and additional discretionary behaviors.
behaviors are also outcomes in their own right- the For the purpose of this study, the employee
product of mental and physical effort applied to performance is measured using the task and
tasks and can be judged apart from results (Kaplan, contextual performance. This is due to the
& Norton, 1996). Going by this definition, when importance of task performance as it relates to
managing the performance of teams and individuals, producing job-specific goods and services and
requires employees to acquire and demonstrate core be recognition, praise, or a sense of achievement
technical skills. Meanwhile contextual performance they receive or obtain as a result of performing the
boosts the organizational climate through job (Adeleke, 2001).
strengthening social networks. When employees b. The comparison by the person of his or
engage in contextual performance this contributes to her own ratio of out comes to inputs to the
the culture and climate of the organization. comparable ratio of outcomes to inputs of another
Contextual performance has the ability to transform person known as comparison other (Allen,
the organization because employees volunteer for 2002).The theory also presupposes that when a
extra work, persist with enthusiasm and help and person perceives that his or her own ratio of out
cooperate with others. comes to inputs is approximately equal to the
corresponding ratio of the comparison of others, a
state of equity is said to exist. In such a situation the
person will feel satisfied with the rewards that he or
Theatrical Framework she is receiving, will feel that he or she is being
There are various theories to the study of fairly treated, and would be predicted to be
reward system and employee’s performance. They motivated to continue doing the kinds of thing he or
are equity theory, expectancy theory, cafeteria she had been doing at work up to that point
compensation theory, Lawler and porter’s theory of (Ogundele, 2006).
motivation and work compensation, equal pay for Leaders and managers have sought to
equal work theory, etc. In this study, equity theory is understand theories of motivation and then test them
adopted as the frame work of analysis. This theory in the workplace to increase the productivity and
was first advocated by Adam(Ogundele, 2006). The effectiveness of their workforce. In contrast to the
concept of equity stipulates that justice and fairness need-based theories, process-based theories view
should dominate, for example in reward system motivation as a rational process. Individuals analyze
(Obisi, 2005). Fajana, (2002) defines inequity as an their environment, develop reactions and feelings,
injustice perceived by a person when he compares and respond in certain predictable ways. Thus, to
the ratio of his rewards to his input’s efforts with the achieve best results, organizations must analyze
ratio of another comparable person’s outcomes to each job, know the requirements, and pay the same
his inputs and finds that they are not equal. wage for work of the same inputs. Where
According to equity theory, the motivation differential wages must be paid, the basis must be
of individuals in organization is influenced by the very clear (Cole, 2002).
extent to which they feel that they are being treated
in a fair and equitable manner (Obisi, 2003).When
people feel that they are being treated in an III. METHODOLOGY
equitable and unfair fashion, the theory argues that Research Design
they will be motivated to engage in activities aimed This study adopted a quantitative research
at restoring feelings of equitable treatment design to examine the effect of financial and non-
Ogundele, (2006) identifies two major components financial compensation administration as a tool for
to the theory. First, the theory specifies the factors improving employee job performance. According to
which influence the extent to which people feel that Wolman, and Kruger, (2004) the quantitative
they are being equitably treated. Second, the theory research design defines the strategy for extracting
outlines the kind of activities which individuals information from the study participants in a
might be motivated to engage in to restore feelings numerical format. The type of quantitative research
of equity when they are feeling inequitably of unfair design adopted for this study is the descriptive
treated. Equity theory predicts that people are survey design, the objective of which, according to
constantly engaged in making two types of Leedy, and Ormrod, (2001) is to define and collect
comparisons. detailed information about an existing phenomenon
a. The inputs they bring to the job in the or exploring the significant relationship between
form of education, experience, training, effort, time two or more phenomena.The quantitative data were
spent working and level of effort but can also collected through the use of questionnaire in order
include fewer tangible contributions such as loyalty, to provide a comprehensive analysis of the research
commitment, and enthusiasm. With the outcomes problem.
(rewards) from the employer and can also be
tangible or intangible. Tangible outcomes include Population of the Study
salary and job security. Intangible outcomes might
Population is a complete set of elements research. Quantitative research assures the

(persons or objects) that possess some common possibility of replication. That is, within a certain
characteristic defined by the sampling criteria limit of experimental error or random error, if the
established by the researcher, (umsl.edu, n.d). A same methods are used with the same sample, then
research population is composed of two groups - the results should be the same (Cohen, Manion &
target population and accessible population. Target Morrison, 2008). More so, bowling (2009) views
population (universe) is the entire group of people reliability in quantitative research as synonymous to
or objects to which the researcher wishes to dependability, consistency, reproducibility or
generalize the study findings, (umsl.edu, n.d). The replica-ability over time, over instruments and over
target population is said to meet set of criteria of groups of respondents. Thus, for research to be
interest to researcher. Accessible population is the reliable, it must demonstrate that if it were to be
portion of the population to which the researcher has carried out on a similar group of respondents in a
reasonable access; may be a subset of the target similar context, similar results would be obtained.
population, (umsl.edu, n.d) and it may be limited to This current research adopted the use of
region, state, city, county, or institution. Therefore, Cronbach alpha to test the reliability of the research
the population of the study comprises of all instrument. Cronbach-alpha is widely used in
employees of Zenith Bank Mubi branch. Based on educational research when instrument for gathering
the information from the personnel department of data have items that are scored on a range of values,
the bank, the staff strength of the branch at the time such as essay tests in which different items have
of this is 20 employees which make up the different scoring points or attitude scales in which
population of the study. the item responses are in continuum (e.g., Strongly
Agree=4, Agree=3, Disagree=2, Strongly
Sampling Technique and Sample Size Disagree=1) because it takes into consideration the
Sampling is a technique of selecting variance of each item. However, there arises a
individual members or a subset of the population to question as to what should be the acceptable
make statistical inferences from them and estimate magnitude of correlation when using Cronbach-
characteristics of the whole population, alpha. For example, Nunnally (1994) suggests 0.70
(questionpro.com, 2022). For the purpose of this (70% of variance reliable) and above while some
study, a census sampling technique was adopted. authors suggest that it is acceptable if it is 0.67
Census sampling technique is the method of (Cohen et al, 2008).
statistical enumeration where all members of the
population are studied. The researcher choice of Validity of Research Instrument
census sampling technique was due to the small This study adopted content validitywhich
employees’ staff strength. Census sampling focuses on the extent to which the instrument of
technique is said to be to economically viable measurement shows evidence of fairly and
method as it is less costly, saves time and requires comprehensive coverage of the domain of items that
less manpower to collect data. The result of the it purports to cover. Content validity refers to the
census method may be checked with the help of the extent to which the items on a test are fairly
sampling method, the results obtained are accurate representative of the entire domain the test seeks to
as each member is surveyed. So, there is a negligible measure, (Markus, & Smith, 2022). In determining
error and the result is highly reliable. Thus, the 38 content validity evidence in educational research,
employees in the branch were targeted population the focus is on ascertaining whether a measuring
and also the study sample size. instrument has been constructed adequately or its
items have a fair sample of the total potential
Data Collection content.Thus, the researcher consulted experts in the
Data collection is the base for all statistical field of research to rate each item in the instrument
calculations or interpretation in research. There are in terms of its match or relevance to the content.
various means by which the data can be Corrections or modifications made by the experts
collected.The study utilized closed ended were taking into consideration and reported in the
questionnaire as instrument for data collection. final presentation of the research instrument as
suggested by (Rubio, BergWeger, Tebb, Lee &
Reliability of Research Instrument Rauch, 2003).
Reliability is one of the most desirable
technical merits in any educational research though
its meaning differs in quantitative and qualitative IV. Method of Data Analysis
Inferential statistics was used to analyze the the bank in the branch, out of the 50 distributed
research data using Statistical Package for Social questionnaires, 38 werefilled and returned
Sciences (SPSS) version 26. The inferential representing the entire employees in the branch. The
statistics in term of regression analysis was used to reliability result shows that the overall Cronbach’s
test the research hypotheses, establish the effect of Alphacoefficient for research instrument ranges
wages and salaries on performance improvement in from 0.750 which is acceptable.In order to test the
Zenith Bank, Mubi branch. research hypotheses, the study conducted multiple
V. Results and Discussion regression analysis to determine the effect of various
This section presents the findings and wages and salaries components on performance
discussions of theanalysis results based on the improvement in Zenith Bank Mubi branch.The
information gathered from therespondents. A total studyresults are shown in the Table 1 the coefficient
of 50 questionnaires distributedto the employees of of determination.
Table 1. Coefficients of determination

Model Unstandardized Standardized
Coefficients Coefficients
B Std. Error Beta t Sig.
1 (Constant) -1.454 1.972 -.737 .466
FC .398 .089 .457 4.479 .000
FB .312 .223 .284 1.397 .172
NMI .143 .127 .158 1.127 .268
PWS .146 .233 .125 .630 .533
R .871
R2.759
Adjusted R2.730
F Statistics 25.992
P Value .000
a. Dependent Variable: IEP
The ‘R’ represents the relationship between Calvin, (2017) in a study also found that there is a
the dependent and independent variable, here it strong and positive relationship between
indicates 87.1% relationship between the variable. remuneration and employees' performance and that
‘R2’which indicates variation in the dependent salary/wage and bonus/incentives also serve as a
variable as a result of independent variable, the form of motivation to the employees. More so,
result revealed that (0.759) that is 75.9% variation in Wasiu, (2014) findings revealed that there is a
performance improvement in the Bank is explained significant relationship between employee’s
by financial, non-financial, fringe benefits and performance and salary package, employee job
perception of employees on wages and salaries allowances and performance and in-service training
administration. and employee’s performance.
Based on the outcome in Table 1 above, the Fringe benefits result shows a positive but
study hypotheses test result reveal that financial insignificant effect on performance improvement
compensation has positive significant effect on with β=0.312, p=0.172 >0.05. Therefore, the null
performance improvement in the Bank with hypothesis was upheld, this implies that, fringe
β=0.398, p=0.000<0.05. By this statistical evidence, benefits are not effective predictor of performance
the null hypothesis was rejected, meaning that, improvement. The findings of this current study are
financial compensation is an effective predictor of converse to findings of Ileka, et al., (2020)who
performance improvement. The findings of this found that, fringe benefits have significant positive
current study agree with the study of Ileka, and effect on employee performanceand more so that,
Muogbo, (2020) investigated wages and salary monetization of fringe benefits has significant
administration and employee performance and positive effect on employee performance. Hussain,
found that cash bonus has significant positive effect Khaliq, Nisar, Kamboh, and Ali, (2019) results also
on employee performance; minimum wage has showed that employee rewards and recognition have
significant negative effect on employee performance a significant and positive effect on employee
in selected government ministries in Anambra state. performance.
More so, it was revealed that, non- around compensation. Therefore, the Bank
monetary incentives also had a positive however an management should establish and practice the best
insignificant effect on performance improvement as wages and salaries administration that will enhance
indicated by β=0.143, p=0.268>0.05. Subsequently, employee motivation and morale that will enable the
the null hypothesis was upheld meaning that non- Bank achieve its setobjectives.
monetary incentives are not effective predictor of More specifically, the study recommends
performance improvement. Converse to this finding that, the management should pay close attention on
is Idowu, (2020) whose study found that flexible financial compensation as it appeared to be an
work-hour arrangements as non-monetary incentive effective predictor of performance enhancer in the
improved employee performance, increased midst of other compensation packages. While efforts
retention of employees and reduced employee work should be intensified towards other compensation
stress.Wasiu, (2014) also discovered that in-service packages like non-monetary, and fringe benefits so
training asnon-monetary incentive significantly and as to enjoy its positive effects on performance
positively influence employee’s performance. improvement in the Bank.
And employee’s perception of wages and Finally, this study was carried out in Zenith
salaries administration in the Bank has positive but Bank, Mubi branch with a focus on wages and
insignificant effect on performance improvement in salaries administration as an umbrella of
the bank as revealed by β=0.146, p=0.533>0.05. compensation package which within are several
This result denotes that, even though, the perception variablestherefore furtherstudiesare recommended
of employees about existing wages and salaries within the same these and otherBanks or other
administration is positive but it does not sectors focusing cross-examiningother wages and
significantly improve performance of employees in salaries administration practices and their
the Bank. Thus, the null hypothesis was rejected. implications on overall organizational performance.
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International Journal of Humanities Social Science and Management (IJHSSM)

Volume 2, Issue 4, Sep.-Oct. 2022, pp: 191-202 www.ijhssm.org

Effect of Salaries and Wages Administration as A

Abstract like non-monetary, and fringe benefits so as to reap

II. LITERATURE REVIEW incentives. According to Firdausi, Shaik, and

Population is a complete set of elements research. Quantitative research assures the

Table 1. Coefficients of determination

organizational productivity and performance: https://content.wisestep.com/bonuses-affect-

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