BUSINESS RESEARCH

METHODOLOGY

IMPACT OF WAGES AND SALARIES ON

EMPLOYEES PRODUCTIVITY

JASIMA KHAN
BBA SEC-A
SEM IV/II YEAR
 1. PROBLEM STATEMENT
Wages and Salaries are the most vital aspect in achieving
productivity of the organization. This is the major problem
facing most organization and which has consequently deprived
them of achieving efficient and effective wages and salaries
administration, this cannot be over emphasized because it will
help to improve employee productivity, the efficiency and
morals of the firms their-by leading to the organization
effectiveness.

1.1 RESEARCH QUESTIONS

1. How much employees are satisfied with their wages
and salaries?
2. In which manner they are working in the organization?
3. In what schedule the employees are working in
organization?
4. What is the behavior of the employees towards their
supervisors and colleagues?
5. What is the turnover of the employees in
organization?
 1.2 RESEARCH OBJECTIVES
1. To evaluate the satisfaction level of employees with their
wages and salaries.
2. To ascertain the efficiency level of employees towards their
work.
3. To know the enthusiastic level of their work for the
organization.
4. To find out the level of involvement of employees towards
their work.
5. To know the proper reason for their irregularity?

1.3 HYPOTHESIS
1. Ho: There are no significant differences between salaries
and wages and employees productivity.
2. Hi: There are significant differences between salaries and
wages and employees productivity.
1.4 RESEARCH DESIGN
Descriptive research design is selected for the impact of wages and
salaries on employee productivity.

Descriptive research describes systematically and accurate facts and

characteristics of sample population. This tests the specific hypothesis.

Using Cross sectional designs, data are collected at particular point of

time from the population. This helps to compare the impact of wages
and salaries on employee productivity at that particular single point of
time.

Using longitudinal design, data gathered from the same sample

repeatedly over an extended period of time. This helps to detect any
changes in employee productivity regarding the impact of wages and
salaries over the period of time.

1.5 SAMPLING
Convenience sampling technique is selected in survey: it
attempts to obtain a sample of convenient elements.
Often, respondents are selected because they happen to
be in the right place at the right time.
By using member of organization sample is collected for
the survey in this research.
 2. LITERATURE REVIEW
S.N TITLE AUTHOR PUBLISHER FINDINGS
O
1. Wages and Employees Hendra International The results of this study have important
Performance: The Quality of Gunawan1 *, Journal of implications that the factor wages and quality
Work Life as Moderator Rezki Economics and of working life needs attention from
Amalia2 Financial management to improve employee
Issues, 2015, performance.
5(Special Issue)
349-353
2. IMPACT OF SALARY ON Dr. B International The main purpose of the study was to
EMPLOYEE PERFORMANCE Nagaraju, Journal of investigate that there is significant difference
EMPERICAL EVIDENCE FROM Pooja J Marketing and between the perception of the employees of
PUBLIC AND PRIVATE SECTOR Human public and private sector banks with respect to
BANKS OF KARNATAKA Resource their salary. The obtained data were analyzed
Management in the light of the objectives and hypothesis
(IJMHRM) proposed in the study.
https://www.ia
eme.com/Mast
erAdmin/uploa
dfolder/IJMHR
M_08_04_005/
IJMHRM_08_0
4_005.pdf
3. Wages and Salaries Olatunji Journal of Wages and salaries serves as motivational tools
Administration as Motivational Eniola Sule1* Business in Nigerian organisation. This is sequel to
Tool in Nigerian Organisation & Sarat Iyabo Theory and decision arrived at, after using question 7 in the
Amuni Practice questionnaire in which 30% of the respondents’
responses strongly agreed, with 45% agreed
and that wages and salaries have significant
relationship with workers performance in
Nigerian organisation.
4. What is the effect of wages and Rebecca Munich The main aim of the paper is to examine the
supervision on productivity? Tetteh and Personal RePEc effect of wages and supervision on employee’s
The perspective of Sunyani Safura Archive productivity for Sunyani Technical University
Technical University staff Mohammed https://mpra.u using survey data. The standard Ordinary Least
and Ayisha b.uni- Square method was employed. The present
Ahmed muenchen.de/ results indicate that wages and supervision
Azumah 81473/1/MPRA influence productivity. However, supervision
_paper_81473. influences productivity more than wages in the
 pdf survey
5. Do Salaries Improve Worker Alex Bryson National Our result indicates that worker performance
Performance? Babatunde Institute of improves when workers are paid a salary as
Buraimo and Economic and opposed to a short-term contract. This is
Rob Simmons Social because, in the case of football referees, the
Research, 2, introduction of salaried contracts was part of
Dean Trench the „professionalization‟ of the occupation.
Street, London
SW1P 3HE
https://www.ni
esr.ac.uk/sites/
default/files/pu
blications/dp36
6_0.pdf
6. THE IMPACT OF Ojeleye Yinka Arabian Journal The study concludes that there is a significant
REMUNERATION ON Calvin of Business and and positive relationship between
EMPLOYEES' PERFORMANCE (A Management remuneration and employees' performance. It
STUDY OF ABDUL GUSAU Review recommends employees' participation in pay
POLYTECHNIC, TALATA- (Nigerian determination, prompt payment of salaries,
MAFARA AND STATE COLLEGE Chapter) wages, bonuses and incentives to prevent
OF EDUCATION MARU, https://www.ar negative effects on performance of employees
ZAMFARA STATE) abianjbmr.com and issues of equity in pay
/pdfs/NG_VOL
_4_2/4.pdf
7. THE RELATIONSHIP BETWEEN Ribaun Korm The University the pay and performance link was potentially
PAY AND PERFORMANCE IN of Canberra influenced by organisational culture and politics
THE CAMBODIAN CIVIL SERVICE http://www.ca in the CCS whereby these phenomena
nberra.edu.au/ distracted attention from the formal goals of
researchreposit the organisations – that is, to provide good
ory/file/5aea8c performance. Overall, these insights can be
ba-27ff-e2e7- useful to policy-makers in designing and
d368- implementing public administration reform in
62bedc4f79bb/ Cambodia.
1/full_text.pdf
8. Effect of salary, training and Zahra American This study indicates the link between three
motivation on job performance Idrees1, *, Journal of measures of organizational factors and job
of employees Xia Xinping1 , Business, performance perceived by the teachers of the
Khuram Economics and universities in twin’s cities of Pakistan.
Shafi1 , Liu Management (Islamabad and Rawalpindi).in particular it
Hua1 , Amna investigates whether a high level of salary,
Nazeer2 motivation and job related training is
associated with job performance of employees,
a favorable outcome.
9. Do Higher Salaries Lead to Mitchell University of we examine the impact of salaries for state
Higher Performance? Evidence Hoffman† California, San legislators and governors on political
from State Politicians∗ Elizabeth Diego, IR/PS; competition, politician quality, and political
Lyons‡ https://gps.ucs performance in the US. Our main finding is that
 d.edu/_files/fa effects are modest. Some effects are positive
culty/lyons/lyo and statistically significant, some are statistical
ns_research_0 zeroes, but almost all are economically
7022014.pdf insignificant.
10. The Effect of Increase in Wage *IYIDA M.N Journal of That increase in wage in the Federal Ministry of
and Fringe Benefits on the Research in Transportation enhances the productivity of
Productivity of Workers in Humanities workers to a large extent. In other words, the
Nigeria: A Case Study of and Social ministry is capable of motivating their workers
Federal Ministry of Science by increasing their wage. This affects their
Transportation, Enugu, Nigeria attitude to work, thereby enhancing workers
http://www.qu productivity. The researcher discovered that
estjournals.org monetization of fringe benefits to a very large
/jrhss/papers/v extent has improved the performance of
ol3- workers in the Federal Ministry of
issue1/B31131 Transportation (works).
8.pdf

2.2 LITERATURE REVIEW

1. Hendra Gunawan1 *, Rezki Amalia2 (2015) “Wages and Employees

Performance: The Quality of Work Life as Moderator”
2. Dr. B Nagaraju, Pooja J (DEC 2017) “IMPACT OF SALARY ON EMPLOYEE
PERFORMANCE EMPERICAL EVIDENCE FROM PUBLIC AND PRIVATE
SECTOR BANKS OF KARNATAKA”
3. Olatunji Eniola Sule1* & Sarat Iyabo Amuni (2014) “Wages and Salaries
Administration as Motivational Tool in Nigerian Organisation”
4. Rebecca Tetteh and Safura Mohammed and Ayisha Ahmed Azumah (
july2017) “What is the effect of wages and supervision on productivity?
The perspective of Sunyani Technical University staff”
5. Alex Bryson Babatunde Buraimo and Rob Simmons (October 2017) “Do
Salaries Improve Worker Performance”
6. Ojeleye Yinka Calvin (2017) “THE IMPACT OF REMUNERATION ON
EMPLOYEES' PERFORMANCE (A STUDY OF ABDUL GUSAU POLYTECHNIC,
TALATA-MAFARA AND STATE COLLEGE OF EDUCATION MARU, ZAMFARA
STATE)”
 7. Ribaun Korm (june 2011) “THE RELATIONSHIP BETWEEN PAY AND
PERFORMANCE IN THE CAMBODIAN CIVIL SERVICE”
8. Zahra Idrees1, *, Xia Xinping1 , Khuram Shafi1 , Liu Hua1 , Amna Nazeer2
(January 2015) “Effect of salary, training and motivation on job
performance of employees”
9. Mitchell Hoffman† Elizabeth Lyons‡ (july 2014) “Do Higher Salaries Lead
to Higher Performance? Evidence from State Politicians∗”
10.IYIDA M.N (2015) “The Effect of Increase in Wage and Fringe Benefits on
the Productivity of Workers in Nigeria: A Case Study of Federal Ministry
of Transportation, Enugu, Nigeria”

3. REFERENCES
1. Hendra Gunawan1 *, Rezki Amalia2 (2015) “Wages and
Employees Performance: The Quality of Work Life as
Moderator” International Journal of Economics and Financial
Issues, 2015, 5(Special Issue) 349-353
2. 2.Dr. B Nagaraju, Pooja J (DEC 2017) “IMPACT OF SALARY ON
EMPLOYEE PERFORMANCE EMPERICAL EVIDENCE FROM
PUBLIC AND PRIVATE SECTOR BANKS OF KARNATAKA”
(International Journal of Marketing and Human Resource
Management (IJMHRM))
https://www.iaeme.com/MasterAdmin/uploadfolder/IJMHRM_08_04_005/IJMHRM_08_04
_005.pdf accessed on 19 April 2019
3. Olatunji Eniola Sule1* & Sarat Iyabo Amuni (2014) “Wages and
Salaries Administration as Motivational Tool in Nigerian
Organisation” (Journal of Business Theory and Practice)
4. Rebecca Tetteh and Safura Mohammed and Ayisha Ahmed
Azumah ( july2017) “What is the effect of wages and
supervision on productivity? The perspective of Sunyani
 Technical University staff” (Munich Personal RePEc Archive)
https://mpra.ub.uni-muenchen.de/81473/1/MPRA_paper_81473.pdf accessed on 19 April
2019
5. Alex Bryson Babatunde Buraimo and Rob Simmons (October
2017) “Do Salaries Improve Worker Performance” (National
Institute of Economic and Social Research, 2, Dean Trench
Street, London SW1P 3HE)
https://www.niesr.ac.uk/sites/default/files/publications/dp366_0.pdf accessed on 19 April
2019
6. Ojeleye Yinka Calvin (2017) “THE IMPACT OF REMUNERATION
ON EMPLOYEES' PERFORMANCE (A STUDY OF ABDUL GUSAU
POLYTECHNIC, TALATA-MAFARA AND STATE COLLEGE OF
EDUCATION MARU, ZAMFARA STATE)” (Arabian Journal of
Business and Management Review (Nigerian Chapter))
https://www.arabianjbmr.com/pdfs/NG_VOL_4_2/4.pdf accessed on 19 April 2019
7. Ribaun Korm (June 2011) “THE RELATIONSHIP BETWEEN PAY
AND PERFORMANCE IN THE CAMBODIAN CIVIL SERVICE”( The
University of Canberra)
http://www.canberra.edu.au/researchrepository/file/5aea8cba-27ff-e2e7-d368-
62bedc4f79bb/1/full_text.pdf accessed on 19 April 2019
8. Zahra Idrees1, *, Xia Xinping1 , Khuram Shafi1 , Liu Hua1 ,
Amna Nazeer2 (January 2015) “Effect of salary, training and
motivation on job performance of employees” (American
Journal of Business, Economics and Management)
9. Mitchell Hoffman† Elizabeth Lyons‡ (july 2014) “Do Higher
Salaries Lead to Higher Performance? Evidence from State
Politicians∗” (University of California, San Diego, IR/PS)
https://gps.ucsd.edu/_files/faculty/lyons/lyons_research_07022014.pdf accessed on 20
April 2019
10. IYIDA M.N (2015) “The Effect of Increase in Wage and Fringe
Benefits on the Productivity of Workers in Nigeria: A Case
 Study of Federal Ministry of Transportation, Enugu, Nigeria”
(Journal of Research in Humanities and Social Science)
http://www.questjournals.org/jrhss/papers/vol3-issue1/B311318.pdf accessed on 20 April
2019.

4. ANNEXURE

NAME ___________ DESIGNATION IN THE COMPANY_______

AGE____ EMAIL______________________

SEX - MALE/FEMALE

1. WOULD YOU LIKE TO DO JOB IN OUR COMPANY?

YES____ NO____

2. AMONG THESE WHICH ONE YOU MOST LIKE TO WORK IN OUR

ORGANISATION?
 MY COWORKERS
 CAREER DEVELOPMENT OPPORTUNITIES
 DEVELOPING SKILLS
 ADVANCING THE COMPANY GOALS
 3. GIVE THE POINTS OUT OF 100 HOW YOUR SALARY SPLITS IN DIFFERENT
USAGE AT THE END OF THE MONTH
 ELECTRICTY AND BILLS
 HOUSEHOLD EXPENSE
 EDUCATION
 MEDICAL
 RENTS

4. HOW MUCH YOU ARE SATISFIED WITH YOUR SALARIES IN OUR
ORGANISATION?

NOT AT ALL EXTREMELY SATISFIED

1 2 3 4 5 6 7 8 9 10

5. WHAT IS THE TURNOVER OF YOUR COLLEAGUES AND COWRKERS?

STRONGLY DISAGREE DISAGREE NEITHER AGREE NOR AGREE STRONGLY AGREE

1 2 3 4 5
 EMPLOYEES ARE REGULAR
 EMPLOYEES ONLY TAKE LEAVE ON
EMERGENCIES
 EMPLOYEES ARE PUNCTUAL

6. EVALUATE THE QUALITY OF ATMOSHERE IN THE ORGANISATION

UNATTRACTIVE_ _ _ _ _ _ _ATTRACTIVE
FRIENDLY_ _ _ _ _ _ _ UNFRIENDLY
FAIR WAGE_ _ _ _ _ _ _ UNFAIR WAGE
GOAL ORIENTED_ _ _ _ _ _ _ NO GOALS