WELFARE PACKAGES AND EMPLOYEES’ SATISFACTION IN LAGOS AND OGUN STATE TRAFFIC MANAGEMENT AUTHORITIES

CHAPTER ONE

INTRODUCTION

• Background to the Study

The achievement of an organisation’s goals is the combination of efforts from human and material resources, every organisation is set out to achieve a particular aim or objectives and this can only be done with the corporation of some people that are known as the employees. Hence, the productivity or the attainment of the goals these organisations set is through the employees and the dedication of these employees to an organisation’s goal is highly influenced by the satisfaction they get on the job. Organisations are classified into private, non-governmental and public establishment driving towards achieving various objectives (Egan, Yang & Bartlett, 2004). The type of an organisation would determine the employees needed in the organisation and the provision of welfare packaged that would be available for them.

One common thing to all organisation is human capital. The importance of human resources cannot be underrated in an organisation, human resources in any organisation is the greatest asset and this asset in no situation should be compromised. Material and financial resources cannot replace the work of human resources, it can neither increase efficiency nor contribute to the anticipated rate of return on investment. No matter the sufficiency or strength of financial resources of an organisation, probability of success would be low if employees do not have sufficient activity (Taylor & Stern, 2009).

The management of employee is an important aspect of organisational process. A well-managed business organisation should recognize the needs of the employees in a way that one can keep them engaged so as to retain them. To understand the importance of people in the organisation is to recognize that human element and the organisation are synonymous. An effective organisation is that, which sees an average employee as the root source of the quality and productivity gains. The organisation would ensure that there is spirit of cooperation, sense of commitment and employee satisfaction within the sphere of its influence (Adeyinka, Ayeni & Popoola, 2007).

One of the main aspects of human resources management is the measurement of employee satisfaction. Specific employee’s attitudes relating to job satisfaction and organisational commitment are of major interest to the field of organisational behaviour in the practice of human resources management (Adeyinka, Ayeni & Popoola, 2007). The commitment of the workforce to the organisation is determined by the workers contentment with the way of things for gauging their likelihood to stay with the company. For long term growth and to guarantee organisational success, organisations need to retain deserving and talented employees because it is the essential to have experienced people around who can guide fresher or individuals who have just joined the organisation (Okonkwo, Ndubisi & Chidiebere, 2015). This study while looking at the welfare packages of organisation and satisfaction derived by employees, using LASTMA and Trace its launching point to establish facts of discuss.

Traffic management is a systematic and sustained effort on directing and controlling all traffic on roads to make them free from negative effects of the transports system. Traffic jam is a common issues in the cities, probably because of the overpopulation in these cities, it delays engagement and can be of negative effect to the mental and physical health of individuals through stress, fatigue, and pollution (Malvika, 2016) as it is also toed to several challenges like delay in activities, road rage depending on how developed the city is. Lagos is the commercial hub of Nigeria, it is also characterized with overpopulation (Asiyanbola, Osoba & Adewale, 2012). The overpopulation of Lagos state has also affected Ogun state because it is the closest state to Lagos state in Nigeria geographically, therefore traffic also spills over to Ogun state because there are a number of people that work or carry out their business activities in in Lagos state and reside in Ogun state. Welfare packages are that part of the total compensation package, other than pay for time worked, provided to employees by the employers. All these benefits are factors that enhance attraction, retention and motivation of employees in an organisation. Welfare package is only effective when it is able to yield a level of satisfaction in employees and there is a problem of individual differences because what satisfies one person may not satisfy another person.

In some organisations, it can be observed that in times of crisis, which may lead to delay in payments or remuneration of employees, some workers still tend to stay, perhaps, employee satisfaction can be traced to this. The health and productivity of an organisation depends on motivated workers that have attained a high level of job satisfaction. When employees are satisfied, they tend to be more loyal towards their organisation and stick to their jobs even at worse scenarios (Odeku & Odeku, 2015) .

The challenge of traffic management led to the establishment of Lagos State Traffic Management Authority (LASTMA) and Traffic Compliance and Enforcement Corps (TRACE) of Ogun state. LASTMA was set up in June, 2000 to regulate traffic under the Lagos state Ministry Of Public Transportation (MOT), charged with the road traffic matters with a system of operations that makes it responsive to the demands of traffic and to ease traffic congestion, to reduce travel delay, improve access to commerce and industry, redirect traffic, to enhance and protect safety of road users and to enhance sustainable transport system in the city of Lagos state. TRACE was set up in 2005 by the state house of assembly with the responsibility to provide solutions to the incessant crashes with the three level of road safety management to the citizens of the state ( Newswatch times, 2015).

The employees under these authorities experience various challenges in carrying out their day to day activities which ranges from lack of corporation by people and motorist, lack of discipline amongst motorist, reckless driving, thuggery and hooliganisms by some motorist, physical abuse and irrespective of all these they still do not leave their job. Welfare of employees in an organisation encompasses matters relating to work conditions and amenities such as canteens, crèches for employee’s children, provision of rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreational facilities etc.

• Statement of the Problem

Welfare packages are instrument of policy used by organizations to motivate and increase productivity level of their employees. A defect in this ability might result to hinder work performance. Many resultant effect of this could lead to inability to meet basic social responsibilities like rent, tuition fee of ward(s), good provision of meal intake for the family, medical care and many other obligations. Consequently, the effect of such will amount to disaffection and dissatisfaction between the employer and the employee which invariably could hamper efficiency and productivity.  Furthermore, benefits such as leave allowance, overtime, hazard packages for safety, travel allowances, Christmas bonus just to mention a few are welfare packages, though not binding in respect to Trade Dispute Acts of Nigeria, but necessary to create harmony and satisfaction of workers at the work place.

According to Cowling & Mailer (1992), they argued that within the framework for welfare is the employees’ right to enjoy health and safety and the right to be managed fairly. Hence, once this right are impaired, satisfaction at work place would be challenged. However, traffic regulation, planning and management, the setting of safety standards, transport planning and formulation of transport policy have been neglected in Nigeria (Oni, 2010).  Specifically, according to Chukwunenye & Amgbare (2010), the right of employees to health and safety at work is one of the basic principles of the labour code, such that when the health and safety of employees are not assured they apparently become “instruments of production”. Equally, lack of training to improve skill on the job is another identified problem. Taken together, these problems mentioned are associated factors, perhaps, for the attitudinal disposition of frustration, sharp practices, and low conduct for effective traffic management to hasten easy vehicular movement of goods and services of traffic personnel seen in Lagos and Ogun states.

Morale according to Mitchell (1978) talks about job satisfaction, which is, attitude dealing with one’s overall feeling toward his or her job. There is no reason to say that the employees have an inalienable right to be managed fairly, except if under slavery. There have also been several instances of industrial conflict arise from management’s indifference to the working conditions of the union (employees). These aforementioned problems may not deviate from that which is confronting LASTMA and TRACE in Lagos and Ogun states. Therefore, in view of the foregoing, the study seeks to evaluate the issues of welfare packages in both organisations, Lagos State Traffic Management Authority and Ogun State Traffic Regulation and Compliance in order to enhance the welfare package of employees for optimal productivity.

1.3. Objective of the Study

The main objective of this study is to examine how welfare packages influence employee satisfaction in an organisation. The specific objectives are to:

1. examine the rationale behind welfare packages provided for the Lagos and Ogun state traffic management authorities;
2. consider the effect of welfare packages on the employees of Lagos and Ogun state traffic management authorities;
3. determine whether welfare packages actually leads to employee satisfaction in Lagos and Ogun State traffic management authorities and
4. evaluate the influence of welfare packages, employee satisfaction on organisational productivity of Lagos and Ogun traffic management authorities.

1.4.      Research Questions

1. What are the rationale for welfare packages provided in Lagos and Ogun states traffic management authorities?
2. What are the effects of welfare packages on employees of the Lagos and Ogun state traffic management authorities?
3. How does welfare packages actually lead to employee’s satisfaction in Lagos and Ogun state traffic management authorities?
4. How has welfare packages, employee satisfaction influence the organisational productivity in Lagos and Ogun state traffic management authorities?

1.5.      Hypothesis

H₁: There is a significant relationship between welfare packages and employee satisfaction in

Lagos and Ogun state Traffic Management authorities.

1.6.      Significance of the Study

Employees are the most important capital in an organisation and they are said to have direct influence on the productivity, efficiency and effectiveness of an organisation. With their usefulness, they help the organisation in achieving its best, so it is important for the organisation to also help the employees to achieve their best. Human resources management deals with the effective and efficient use of manpower, this should be done in a way that it would favour the employees and also the employers. Welfare packages serves as an instrument for motivating employees and giving a little to the employees out of what the employee is able to help the organisation achieve. Therefore, if an organisation fails in its package of welfare to the employee, it might impaired productivity and limit the merit base of the organisation. Hence, this study is significance because it establishes silent reason(s) for failures seen in many organisations as far as job satisfaction is concerned.

Secondly, it would expose Human Resource Department of an organisation to the importance of welfare related issue to productivity, efficiency and satisfaction of the workers.  Thirdly, the study would be useful for policy makers, government parastatals and private agencies to be mindful of the welfare structure given to workers under their authority. Lastly, the Lagos state government and Ogun state government under the auspices of LASTMA and TRACE would largely benefit from this study and the study would equally help to fill some gaps not known about this two establishments.

1.7. Scope of the Study

The scope of this study is limited to the assessment of welfare packages and employee satisfaction in Lagos and Ogun State Traffic Management Authorities. The geographical settings would be Lagos and Ogun state, and the major organisation to be examined are LASTMA and TRACE. The study examined this two organisation from the year 2012 to 2017. The reason for the selection of these two organizations is to examine why despite the hazard of work associated with this job, employee still stay on the job.

The major variables to be examined are welfare packages and employee satisfaction. Hence, study is interested in establishing whether there is a correlation between welfare packages and employee satisfaction which is assumed will lead to productivity and efficiency of work in this two establishments.

1.8. Operational Definition of Terms

Employee retention: This is an effort by a business to maintain working environment which supports current staff in remaining with the company. It is the various policies and practices which let the employees stick to an organisation for a longer period of time.

Employee Turnover: this is the measurement of how long an employee stays with an organisation and how often the organisation replaces its employees. Anytime an employee leaves an organisation, it is called turnover.

Motivation: this are internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or make an effort to attain a goal. It results from interaction of both conscious and unconscious factors.

Job Satisfaction: this is the combination of how an individual thinks, feels and perceives his or her job. It is a set of positive feeling that an employee has about his or her job. It is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience. It is a result of employee’s perception of how well their job provides those things that are viewed as important. In this study, employee satisfaction and job satisfaction would be used synonymously.

Career Development: career development is a lifelong process of managing progression in learning, work, leisure and transition in order to move toward a personally determined and evolving preferred future. It involves training on new skills, moving to higher job responsibilities, making a career change within the same organisation or stating one’s own business.

Social Security: this is a program established in an organisation, which provides a retired employee or disabled employee with a monthly allowance or benefits. If an employee dies prematurely, social security provides the deceased dependent children with support until age of 18.

Welfare packages: this are packages, services or benefits that are offered to employees facilitated by employers to make life worth living for its workers. This packages could be in monetary or non-monetary form.

1.9. Plan of Work

This study is presented in five chapters; chapter one presents the background to the study, statement of problem, research questions, objectives, significance of the study, scope of the study and the plan of the study. Chapter two shows a review of literature on welfare packages and employee satisfaction. Chapter three focuses on methodology which describes data collection, research design, and study population, research instrument, sampling procedure and data analysis. The fourth chapter focuses on results and discussion of findings, based on the study. Chapter five focuses on the summary, recommendations and conclusions of the study. Relevant references and appendices are also presented at the end of the study.

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