The Impact of Monetization of Fringe Benefits on the

University of Nigeria Research Publications

AGBA, Michael Sunday

Aut

hor

PG/M.Sc/05/39847

Title

The Impact of Monetization of Fringe Benefits on the Productivity of Nigerian Workers: The Case of Federal Polytechnic, Idah-Kogi State

Facu

lty

Social Sciences

Dep

artm

ent

Public Administration

Dat

e March, 2007

Sign

atur

e

... 111

APPROVAL PAGE

This thesis has been supervised and approved:

Sign: l.*egmgg-

Dr. Fab. 0 . 0 n a V .

Supervisor I

\ 3 -q- 07 Date.. .............................

Sign.

Head of Department

Date. l.3:.?. ?r.Q.?

Sign: ..... External Examiner

Date: ...

1v

CERTIFICATION

I hereby certify that this thesis was planned and executed by me under the

supervision of Dr. Fab. 0. Onah. To the best of my knowledge, it has not

been submitted either part or in whole to any institution for the award of anv

degree, diploma or certificate.

Agba, M. S

\. 'u' Date: .. .. .-.. ...... . ... .

I humbly dedicate this work to Jesus Christ, the Saviour and Bishop of my

Soul. And to my beloved wife, Grace Michael and daughter, Precious

Obasesam Michael.

ACKNOWLEDGEMENT

Primarily, I am indebted to God Almighty for seeing me through this

programme. in carrying out this study, 1 have incurred more debts than I can

hope to adequately acknowledge here.

First, 1 owe a lot to my amiable and indefatigable supervisor, Dr. Fab.

0. Onah, for not only painstakingly guiding me through this work but also

encouraging me to do a study on "the Impact of Monetization of Fringe

Benefits on Workers' Productivity" when I would have dropped the topic for

lack of sufficient materials.

My special thanks go to Prof. N. N. Elekwa, the Head of Department,

Prof. F. C . Okoli, Dr. Chikelue Ofuebe, Dr. A. 0. Onyishi, Dr. Rose C.

Onah, Dr. C. Oguonu and other lecturers in the Department of Public

Administration and Local Government, University of Nigeria, Nsukka.

I have received a lot of support and encouragement from my M. Sc.

classmates, brethren and spiritual leaders, Pastors Stephen Hanina, William

Ibrahim, Paul Mba, Okpanachi, Upu C. T, BTOS. Ojatta D. C., Tony Tinufa,

Yusufu Anehnu, Oshadare, Binfa Bonfa, Obatomi, John Oko, Abah, Fabian:

John Sani, Sebastian, Sis. OyeIakin, Mummy Haruna Stephen to mention a

few. My warm gratitude to Bro. Bassey Edirn and my elder brother John S.

Agba for their assistance and prayers. Special thanks to Bro. Martins

Onyenweaku.

I wish to also express my gratitude to all my coI1eagues in the

Department of Public Administration, Federal Polytechnic, Idah. They

include: S. P. Idakwoji; Samuel 0 , ~ ; M. Ali; hi. R. Stephen; Amodu Ali.

Many thanks to the Rector, Federal Polytechnic, Idah, Prof. J. N. Egila and

his Deputy, Mr. Akpata M. I. for givins me the opportunity to run this

propamme.

May God bless them and many others not mentioned here for lack of

space.

Finally, I aclmowledge the contributions of Mr. Musa, S. Zakari in the

type-setting of this thesis.

.-. Vl l l

ABSTRACT

This study centres on the Impact of Monetization of Fringe Benefits on the

Productivity of Nigerian Workers with specific focus on the Federal

Polytechnic. Idah. In carrying out the study, three hypotheses were

formulated to guide the researcher. They are briefly stated as follows:

Proper Implementation of the Monetization Policy will lead to positive

change in work attitude, thus, enhancing productivity of workers; there is a

relationship between monetization of fiinge benefits and job satisfaction

among workers in the Federal Polytechnic, Idah and finally, increase in

salaries through monetized benefits is not sufficient to meet the basic needs

ofworkers. To validate these hypotheses and the principal research

questions set out in the statement of the problem, data were generated

through primary sources (like questionnaire, oral interview and observations)

and secondary sources such as text books, internet materials, journals,

newspapers, magazines. The data -From the questionnaire were subjected to

statistical analysis. The analysis revealed among other things that although

the policy is partially implemented, it has boosted the morale of workers and

enhanced job performance through positive change in work attitude.

Furthermore, the study shows that increase in salaries through monetized

benefits is not sufficient to meet the basic needs of workers in the face of

rising cost of living. The study also discovered that the incidence of

frustration, fear and anxiety in the Polytechnic workforce is due to the

retrenchment component of the policy and this is bound to have a negative

effect on workers' productivity. The study recommended among other

things the full implementation of the policy in order to harvest the best from

workers; adoption of measures to boost morale of workers since this is

necessary to retain able and competent employees; the implementation of

reform measures that have human face; the use of more financial rewards

which should be tied to performance and regular promotions, job security,

regular payment of salaries, good working relationship, better conditions of

service to boost job satisfaction among workers and improve their

performancelprductivity .

TABLE OF CONTENTS

Title Page .4pproval Page Certification Dedication Acknowledgement Abstract Table of Contents

... iv ,

... V

. . . vii

. . . X.

Chapter 1 : Introduction . . . 1 1 . I Background to the Problem ... 1 1.2 Statement of the Problem ... 5 1.3 Objective(s)oftheStudv ... 7 1.4 Significance of the Study . . . 8 1.5 Scope and Limitations of the Study . . - I I.

Chapter 2: Literature Review and Methodology 2.1 Literature Review ... 14 2.1.1 Introduction ... 15 2.1.2 Meaning and Nature of Fringe Benefits in

Nigerian Public Service. ... 15 2.1.3 The Monetization of Fringe Benefits in the

Federal Public Service ... 18 2.1.4 Components of the Monetization Programme .. . 19 2.1.5 Merits of Monetization ... 22 2.1.6 Demerits of Monetization ... 26 2.1.7 The Impact of Monetization of Fringe Benefits

on the Productivity of workers in Nigeria. ... 31 2.1.8 The Dilemma of Implementing the

Monetization Progmnrne ... 38 2.2 Research Hypotheses ... 39 2.3 Operationalization of Key Concepts . . - 40 2.4 Methodology . . . 42 2.4.1 Research DesiLm . . . 42 2.4.2 Sample Design ... 42

2.4.3 Method of Data Collection 2.4.4 Validity and Reliability of Data 2.4.5 Method of Data Analysis 2.5 Theoretical Framework.

Chapter 3: Background Information on the Federal Polytechnic, Idah, Kogi State.

3.1 Historical Background of the Federal Polytechnic, Idah

3.2 Organizational S tn~cture of the Federal Polytechnic, Tdah

3.3 The Polytechnic Reputation

Chapter 4: Data Presentation, Analysis and Findings 4.1 Data Presentation and Discussion of Findings.

Chapter 5: Summary, Conclusion and Recommendations

5.1 Summary 5.2 Conclusion 5.3 Recommendations 5.4 Bibliography

Appendix - Questionnaire.

Chapter 1

INTRODUCTION

1.1 Backround to the Problem

"-411 public policies are intended to influence or

control human behaviours in some ways . . . 7 7

James Anderson (1 979).

The place of the civil service in strategic and sustainable

development of any country is not in doubt. For instance, the

crystallization, formulation and implementation of governmental policies

and programmes aimed at the transformation of any country rests on the

existence of a virile administrative mechanism in the form of civil

service or public service. In the case of Nigeria, the story is different

and pathetic.

The Nigerian civil service since its inception has continued to

"plummet from ... an apogee of grace" to borrow Kirk-Greene's

expression (Kirk-Greene, 1976:7). Put differently, the Nigerian civil

service since its inception has performed abysmally poor in the political

and socio-economic transformation of the country. This, according to

Okoli and Onah (2002:203) has made the Nigerian civil service to

acquire the image of a sick-baby of the various governments and the

nation at large. Its maladies, inter-alia, range from gross inefficiency

and ineffectiveness to bribery and corruption.

The above development has informed the setting up of not less

than seven public service review commissions - Gorsuch (1954),

Mbanefo (1959), Morgan (1964), Elwood (1966), Adebo (1971), Udoji

(1974), the I988 Reforms and the Ayida Reforms of 1997/98 by past

successive governments. Sad enough, these commissions and their

corresponding prescriptions have not ended the search for a more

effective and efficient public service that is result-oriented and

responsive in meeting the needs and aspirations of Nigerians. Hence. the

heart touching expression "This House Must Not Fall" in the

Management in Nigeria (April - December, 2004) must be taken

seriously by all Nigerians.

Since the attainment of political independence in 1960, there has

been a persistent decline in the productivity of the public sector, marked

by a colossal increase in the cost of governance, resulting to a plethora

of policy prescriptions, to bail Nigeria fiom what Professor C. 0. Bassey

( 197: 136) calls "a state of suspended paralysis". Efforts in transforming

the civil service and other governmental institutions for effective and

efficient service delivery has, no doubt in recent times, become one of

the most pressing fundamental preoccupations of government as the

ongoing administrative, economic and social reforms by the Obasan-io

administration depicts.

This research centres on the monetization of fringe benefits in the

Federal Public Senrice with a specific focus on the Federal Polytechnic,

Idah. The monetization policy is one of the components of the reform

agenda of the Obasanjo's administration. The programme is designed to

reduce the cost of governance, facilitate budgeting and budgetary control,

minimize waste and abuse of public facilities, obtain savings for capital

projects, and promote a culture of discipline and maintenance.

It will be recalled that the idea of fiinge benefits in Nigeria dates

back to the colonial civil service. The colonial government provided

their expatriate staff (white civil service administrators) with decent and

well-fiirnished accommodations, through creating Government Reserved

Areas (GRA). Other provisions made available were official cars that

were chauffeur driven, cooks, stewards, and gardeners. These white

administrators did not have to pay for these benefits fiom their salaries.

The benefits provided were intended to make them productive.

On attainment of independence in 1960, following the exit of the

colonial masters, the indigenous civil servants took over and had to

enjoy these benefits since they were the new administrators of the new

Nigeria.

Aluko (2003) calls this development the relics of colonialism.

With the passage of time, the cost of providing and maintaining these

benefits became enormous. For instance, from 1974 to 1982,

government recurrent expenditure constituted 48.7% of the federal

budget. Between January - August, 2001 - 2003, alone, government

expended =N=186,S 12,385.98 on the renovation of government houses,

indicating that a substantial amount of money is being drained on

maintenance of residential quarters just for the comfort of few Nigerians.

Statistics obtained fiom the Revenue Mobilization, AlIocation and Fiscal

Commission, published in the Punch of 21" June. 2004 indicates that the

Federal Government spends =N=E.3 billion per annurn on the

allowances of Special Advisers, Special and Personal Assistants. What

is true as regards the over-bloated cost of gowtnance at the Federal level

is also tnle of state and local government levels.

It is in view of the above development that a committee on the

monetization of Fringe Benefits in the Federal Public Service was set up

by President Olusegun Obansajo on November 1 1, 2002 under the

chairmanship of the Secretary to the Government of the Federation,

Chief U. J. Ekaette. Based on the recommendations of the committee,

approval was given by the President for the Monetization Policy to take

effect From October 1 ,2003.

1.2 Statement of the Problem:

Since the approval of the Monetization of Fringe Benefits till date,

there has been different reactions and concern over the implications of

the policy on Nigerians and the Nigerian workers. Protagonists of the

policy argue that it will help reduce the cost of governance in Nigeria,

facilitate budgeting and budgetary control efforts, as the Federal

Government can easily compute staff maintenance costs; minimize

waste, misuse and abuse of public facilities. They also contend that the

policy will promote observance of maintenance culture and discipline in

the use of public utilities, obtain savings to enable the government

execute more capital projects and lots more.

On the other hand, antagonists oppose the policy, arcwing that its

imple~nentation will breed inflation, unemployment, favour only

political office holders and senior civil servants. They further

maintained that it will not reduce the cost of governance as the persistent

increase in the cost of governance is symptomatic manifestation of the

deep sooted corruption in public spheres.

Apart from the fact that there is a doubtfid atmosphere as to the

effectiveness of the policy in reducing the cost of governance and

enhancing productivity in the Federal Public service, a critical

examination of the contents of the policy raises a number of fimdamental

questions in the minds of people.

To what extent has the implementation of the monetization policy

boosted the morale of workers needed in enhancing their performance?

Is the increase in workers' salaries through monetized benefits

enough to meet the basic needs of workers?

Will the scheme serve as a motivating factor in changing work

attitude for better performance among staff of the Polytechnic?

To what extent will the implementation of the policy en~ender job

satisfaction among workers of the Polytechnic?

What is the attitudeldisposition of workers towards the policy in

the Federal Polytechnic?

If histration, fear and anxiety exist among staff of the Polytechnic,

are they traceable to the retrenchment component of the policy?

Attempts to provide answers to these questions and clear the air of

confusion surrounding the monetization policy constitute the basic

research problem of the study.

1.3 ObjectivesoftheStudy

The general objective of this study is to unravel the impact of the

monetization of fi-inge benefits on workers productivity in the Federal

Polytechnic, Idah.

The specific objectives of the study are to:

1. Examine the extent to which the policy is implemented

in the Federal Polytechnic, Idah.

2. Investigate whether increase in workers' salaries through

monetized benefits is sufficient to meet their basic needs.

3. Find out whether the monetization of fringe benefits would

serve as a motivating factor in changing work attitude for

better performance among staff of the Polytechnic.

4. Examine the effect of the retrenchment component of

the policy among staff of the Polytechnic, and

5 . Make recommendations based on the findings from

the study.

1.4 Significance of the Study

In view of the recent measures of the Obasanjo administration in

bailing the Nigerian public service which Adebayo (2000) aptly

described as a seriously sick patient whose condition has sunk into coma,

the study is significant in number of respects.

The study is significant due to the value or contribution it is going

to make to the existing knowledge on monetization. Monetization is a

relatively new concept in the Nigerian public administration, hence the

scanty scholarship in the area. The study will expand the frontiers of

knowledge by examining the impact of the monetization of fringe

benefits on the productivity of workers. By unraveling the effects of the

scheme on job satisfaction, work attitude and morale of workers, the

study promises to contribute to the existing knowledge on workers

motivation and productivity in the Nigerian public sector.

Indeed, investigation into the motivation of workers is vital.

because as Moarhead and Griffin (1989:103) put it, very often the

difference between highly effective organizations and less effective ones

lies in the motivational profiles of their workers.

Monetization of fringe benefits is an integral part of the on-going

reform agenda of the Obasanjo administration, geared towards

repositioning Nigeria for stability, growth and development, and

building a basis for a sound fhrre through a result-oriented public

service. These reform measures despite their laudable objective are

bound to fail, if the human element is igored and not properly

motivated for enhanced productivity and performance.

The study is wider in scope than existing researches in the area in

terms of issues covered. The major concern of previous studies have

been on the components of the policy, merits and demerits. Thus, this

work permits wider generalization in that it is theoretically and

empirically relevant.

In the wake of the present era of servicom or service delivery in

Nigeria the study is significant in that it is timely. Service delivery is a

term which draws the attention of public agencies/institutions to their

duty to render senrice to their customers (public) in the most satisfactory

manner (Ahrned. 2004)~. Agba, 2006)~.

Monetization of fringe benefits arises out of the need to improve

public service, cut down cost of governance, reduce waste, save the

image of the Nigerian public service and harvest the best of workers'

skills and talents. Hence, a study of this nature is timely, a subject on

which government, the public and private organizations are very much

interested in.

As it is the tradition of most scientific research in social sciences,

the study hopes to make recommendations that will be valuable to

scholars, practitioners and government in the management of Nigerian

polytechnics and the enhancement of workers' productivity.

Furthermore, future researchers wishing to conduct studies in the

area of monetization of h n g e benefits will find this work a good starting

point and resource material for their literature review.

I .5 Scope and Limitations of the Study:

1.5.1 Scope:

e study focuses on the impact of the monetization of

fringe benefits on workers' productivity, with particular reference to the

Federal Polytechnic, Idah, Kogi State. To achieve this, the study takes a

look at the components of the policy; the merits and demerits of the

policy, the impact of the scheme on workers' productivity and the

historical background of the Federal Polytechnic, Idah. The study

covers the period when the policy was approved for implementation and

the attitude/dispositions of the Polytechnic staff towards the policy.

The research covers the public sector of the country and seeks to

unravel the impact of the policy on work attitude, job satisfaction and

satisfaction of basic needs of the Polytechnic staff.

Although the findings of the study may not be a comprehensive

and concrete representation of the impact of the scheme on workers'

productivity in all public organizations, no doubt, the findings will

permit useful generalizations in most public organisations in the country.

1.5.2 Limitations

This research admits its short-comings or limitations. As

Nwana (1981) aptly observes, it is a mark of intellectual honesty to

admit that limitations did exist in a research undertaking and to give an

account of the way they have been manifested. This will enable future

investigators to have an idea of what militating factors to look out for

and possibly to take care of them.

The basic limitations of the study are: financial inadequacies.

time factor, the unco-operative attitude of some respondents and scanty

resource materials on monetization.

Finance: Limitation of financial resources, coupled with other

pressing personal demands militated against the researcher's efforts

to cover a wider geogaphical areaFederal Polytechnics in order to

give more weight to the work. The researcher had to spend so much

to download materials from the internet. Research is indeed

expensive to carry out.

Time Factor: Time la? was also a major constraint because the

research was carried out within a given time-frame. This work was

carried out in an environment where the researcher had to attend to

his official assignments in his place of work, battle with lectures,

assignments, class work and sourcing for materials for the study.

However, the researcher made tremendous efforts to cover

adequate issues in order to give value to the h d i n g s of the study.

Scanty Resources MateriaisfScholarship: One of the major

hindrances of the study was scanty materials on monetization. Very

few journals, government and newspapers publications exist. Hence,

the researcher resorted to the available publications and content

analysis in order to beef up the content of the work.

Chanter 2

LITERATURE REVIEW

AND METHODOLOGY

The researcher readily agrees with the notable observation by I J b e h

( 1 975:3Ol) that:

while one is aware o f the social s c i e n ~ e ~ f i n s in Europe

and America which tend to p I q down the importance

ofwages and salaries as a rno~i~~ati~l~p~factor, there i s no

douht that in the Nigerian context, it has 10rge rno fivating

element in i t .

He equally concurs with Joseph Inokotong (July 2003) that:

The monetization of fringe benefits in the public

service, thou& laudable, may cause untold hardship

to some people in the interim.

2.1 LITERATURE REVTEW

2.1.1 Jntroduction

Attempt is made in this section to review relevant works of

experts and scholars. The chapter also covers issues like hypotheses

of the study; operationalization of key concepts; methodology of the

study: and theoretical fiarnework. We adopted a thematic approach

in the review of literature for the purpose of proper organization of

the chapter and easy comprehension.

2.1.2 Meaning and Nature o f Fringe Benefits in the Federal

Public Service.

McConnell (1987) defines benefits as the reward other than

wages that employees receive fiom their employers which include:

pensions, Medical and Dental Insurance, paid vacations and sick

leave. According to the International Encyclopedia of the Socinl

Sciences, the term "-Fringe benefits" embraces a variety of employees'

benefits paid by employers supplementing the workers' basic wage or

salary. Generally speaking, a Fringe benefit has to meet two tests: It

must provide specific benefit to an employee, and must represent a

cost to the employer.

From the foregoing, f i g e benefit is broad and it embodies

vixtually every reward, payment or benefit other than the basic pay or

salary of a worker and could vary from country to country.

Ajieh (2005) provides a brief historical background of

fiinge benefits in the Niserian public senrice. According to him, with

the advent of the colonialism in Nigeria, the colonial administrators

felt that the natives were not living in a healthy environment suitable

for them in tenns of comfort and security. Thus, the colonial

government had to provide their expatriate staff with decent

accommodation by creating Government Reserved Areas (GRA) and

provision of other benefits like official cars that were chauffeur-

driven, cooks, stewards and gardeners. The colonial administrators

did not have to pay for these benefits fiom their salaries.

With their exit in 1960, the indigenous civil servants took

over and had to enjoy the benefits, particularly living in the

Government Resenred Areas (GRA). The benefits were provided for

the civil servants to enable them to be productive and efficient in

implementing, to the best of their ability, decisions handed down to

them by their Minister or the Cabinet.

In a way, these benefits were to serve as motivator by meeting

partially the physiological needs of the workers (food, shelter, sleep,

etc.) as spelt out in Maslow's Hierarchy of Needs (Cole, 1990).

Writing on the purpose of fringe benefits in organization, Rao

and Rao, 1996 (cited in Okon, 2005:180) succinctly note: fringe

benefits serve important purposes such as motivating employees,

boosting their morale, creating and improving sound industrial

relations, satisfjring employees' unsatisfied needs, providing tenural

security, congenital or qualitative work environment, and creating a

sense of belonging among employees, etc. Thus, fringe benefits

positively affect job performance by acting as performance-related

incentives which. though not visible as salaries and though

representing a high percentage of total personnel costs, actually serve

as motivators. Generally, fting-e benefits provide the needed shelter

for senior civil servants whose real salaries have been seriously

eroded (Olowu and Adamolekun, 2002).

Graduallv, with the passage of time, the cost of managing the

public service became so enormous that the use of public utilities

associated with wastages and leakages thus undermined government

objectives. It is against this backdrop that the eovernment of

Obasanjo decided to carry out some reform measures of which

monetization of fiinge benefits of workers is a part.

2.1.3 The Monetization of Fringe Benefits

In the Federal Public Service

It is apposite to define monetization. A group of laymen

were once asked in a regularization interview to defme monetization.

One of them said monetization is putting or adding money to people's

salaries. Although this may sound funny as it did in that interview,

the definition contains some cardinaI elements of monetization. First,

monetization revolves around money. Second. it leads to increment

in workers' salaries.

Monetization is the systematic and immediate withdrawal of

fringe benefits and paying a cash equivalent of the withdrawn benefit

to the beneficiaries enbloc. In other words, monetization implies the

conversion of benefits previously made available in kind to public

officers into cash payment (Alkali et al, 2005, Ajieh, 2005). Akpo

puts the meaning of rnoneti~ation in a fashionable manner thus:

"to monetize fringe benefits simply means to

transform benefits to money or monetary value

or give the character of money to -Fringe

benefits" (

(i i) .

2.1.4 Components of the Monetization Programme.

The following constitute the components of the monetization

programme as recommended by Chief Ufot Ekaette's coinrnittee on

Monetization.

(i). Residential Accommodation: this has been monetized at

100 percent of Annual Basic Salary ( ABS), which should be

paid enbloc to enable an officer pay for any accommodation of

his choice.

Furniture Allowance: 300 percent of Annual Basic

Salary has been recommended as furniture allowance.

However, considering the large amount involved. this

aIlowance will be paid annually at the rate of 75%, which

amounts to 300% in four years.

(iii). Utility Allowance: This has been monetized for

public servants as shown below:

Grade Levels Allowance Per Annum

01 -06 =N=3,600.00

07 - 10 =N=6,000.00

12 - 14 =N=7,800.00

15 - 17 =N=8,400.00

Permanent Secretary. =N=16,800.00.

Head of Service. =N=l6,800.00.

(iv). Domestic Servant(s) Allowance: This allowance

has already been monetized for public servants as shown below:

Grade Levels. NO of Domestic Servants. AllowancelAnnum.

15. 1 =N=119,586.00

27 3 =N=358,704.00

Perm. Secretary 4 =N=478,344.00

Head of Service. 4 =N=478,344.00.

Motor Vehicle Loan: This has been monetized at

350% of the Annual Basic Salary (ABS) in line with the

provisions of "Certain Political, Public and Judicial Office

Holders (Salaries and Allowances, etc.) Act 2002". The

loan is to be recovered in 6 years and at an existing interest

of 4% on motor vehicle loan.

(vi). FuellingIMaintenance and Transport: The

recommendation is that 30% of Annual Basic Salary shall

be paid to public servants as fkeling/maintenance and

transport allowance.

(vii). Medical Allowance: Government proposed the payment of

10% of an officer's Annual Basic Salary as medical

allowance.

(viii). Leave Grant: This has already been monetized through the

provision in the public service rules. chapter 13 section

132 13 at 10% of Annual Basic Salary.

( ix). Meal Subsidy: This has been monetized as follows:

Grade Levels Allowance Per Annum

01 -06 =N=6,000 .OO

07 - 10 =N=8,400.00

12 - 14 =N=9,600.00

15 - 17 =N=10,800.00

Permanent Secretary =N=16,200.00

Head of Service. =N=16,200.00.

(See Ezeani, 2005: 13 1 - 133).

2.2.5 Merits of Monetization:

Following the advice of Senator Oloninimbe Mamora that

"we should not go into the monetization debate headlong without

taking coLpizance of the merits and demerits" (cited in Okon, 2005:

184). we consider it apposite to take a look at the case for and against

the policy.

The following are the grounds upon which the policy of

monetization can be defended.

First. monetization is aimed at cutting the cost of governance.

Ufot Ekaette, secretary to the government of the federation, in

justifying the policy, said government deemed it imperative to

monetize fringe benefits because over the years, the cost of

governance has continued to escalate, arising mostly from the burden

of providing basic amenities to public servants (Daniel, 2003:8,

Inokotong, 200355).

Observing that Nigeria's recurrent expenditure has risen at the

expense of capital expenditure between 1999 and 2003, Chief Ekaette

.w r y 5 . - - * .,- -._. said: -1

- -- c m * .

Indeed, no administration should devote over 60%

of its revenue to sustain a workforce of less than

1% of its population, leaving very little for

development ( Adingupu, 2004: 12).

According to Alkali, Sambo, Musa (2005:3 1 ), the above merit,

makes the policy to be rational in nature. The Federal Government

spends over 80% of its 8 billion dollars oil revenue yearly on

recurrent expenditure, leaving only 14% for capital development

(010-ja et a1 2003: I - 2).

Commenting on the cost reduction advantage of the policy,

Okon (2005: 185) notes that it is difficult to predict whether or not the

policy will succeed in reducing the cost of governance as anticipated

by its protagonists, since in the past, expenditures on most affected

fringe benefits were being met from the overhead vote. Although

architects of the policy admitted that the cost of implementing the

scheme in the first year would be "quite substantial if not prohibitive;

they however hoped that it would lead to "substantial financial

saving".

Secondly, protagonists argue that if benefits are monetized,

public officers will develop the tendency towards good maintenance

culture and discipline. Thus, Okon (2005: 186) puts it thus: the

monetization scheme is held out as a panacea for the prevailing

culture of waste, corruption and abuse of public facilities that

characterize Nigeria's public sector. Given the experience gained in

the provision of fi-inge benefits in kind in the public sector in the past,

there is a strong need to minimize or eliminate virtually all the known

areas of wastages and leakages, particularly what the Head of Service

of the Federation calls the great mismatch between the amounts spent

and the actual benefits that accrued to the beneficiaries".

Vice President Atiku Abubakar revealed in a statement in

Abuja that a lot of money was tied down by allowing civil servants to

stay in official quarters in such a way that the Government was not

recouping the money invested in their development. According to

him, 500 billion naira was tied down in official quarters built for civil

servants by the Federal Government in Abuja alone and there was

hardly any country in the world where government spent such

gargantuan sutn to accommodate civil servants.

Thirdly, the monetization programme will have far-reaching

impact on planning, budgeting and discipline and will positively

impact on our national value system and ethics

( ). For instance, monetization

will enable government to get the true picture of what it costs to

maintain a political officer holder or public servant, in office and

therefore lead to more realistic budgeting and budget implementation.

Tt i s the most transparent avenue for the disbursement of

remuneration to employees.

On the part of the individual worker, monetized benefits will

empower public officers to allocate their income in accordance with

their preferences (Alkali, Sambo, Musa, 2005:32).

Fourthly, monetization seeks to encourage planning on the part

of public servants. It will enable public servants to be forward

looking - to use the numerous benefits converted to cash to acquire

their own houses, cars and plan for their retirement or more

comfortable post-service life.

2.1.6 DerneritsofMonetization:

Perhaps, because the policy of monetization emanated from

the political class of the society, Agba (2006:6)' contends that the

implementation of the policy is likely to be more beneficial to

political ofice holders than the Federal Civil Servants. Most political

office holders have been paid their monetized benefits in fill running

into millions of naira, affording them the oppornrnity to purchase

vehicles of their choice.

Dnilv Trust of Wednesday, April 26, 2006, under a headline:

"New Cars for Senators Negative Monetization Policy", alleged that

the National Assembly had concluded plans to purchase 109 Peugeot

407 Cars for senators while similar arrangements were being worked

out for the members of the House of Representatives.

From the foregoing Agba (2006:7)' concludes that it is not out

of place to say that the policy is sub-ject to abuse and manipulation by

the political class.

It is equally argued that the implementation of the policy will

make more cash available to the public, thus bringing about inflation

and increase in prices of food striff. accommodation, senices, etc.

Okon (ZOO5 : 188) captures this point beautifidly thus: the injection

into the economy of about =N=500 billion cash earmarked for

implementation of the monetization scheme would file1 or trigger off

inflation. The inflation brought about by the doubling of wages in the

public service, following the introduction of the new salary scale,

effective fiom 1" May, 2000 had hardly subsided when the

monetization policy was being mooted.

Although inflation was originally perceived to be likely more

prononnced in cities like Abuja, Port-Harcourt, Lagos, Calabar, Kano,

etc., it is increasingly becoming obvious that with the few months

into the implementation of the policy, the prices of goods and

services have been hiked by traders in places like Idah in Kogi State.

Furthermore, there is the fear that the implementation of the

policy is going to bring about frustration, due to the unemployment it

will generate when drivers, cleaners, labourers, messengers, security

men, cooks, etc are rationalized. Martin Luther King (cited in Coker,

2001) observed that:

"it is murder, psychologically, to deprive a man

of a job.. .you are in substance saying to

that man that he has no right to exist."

To avoid the dire consequences of unemployment, Coker (200 I)

advised that the society (nation) must be so organized in such a

manner that the numbers of unemployment are reduced to its barest

rn in imurn.

,Although government i s not insensitive to the effect the

implementation of the inonetization policy may likely have on the

individuals concerned and the society at large, the very measures to

cushion such negative effects are questionable and cosmetic. For

instance, one of the cushioning measures is that drivers and those

who are to be rationalized will be assisted by the National Poverty

Eradication Progamrne (NAPEP) or be allowed to buy one vehicle

out the pool of excess vehicles to be sold out by government. This

measure seems laudable at a glance. But a critical examination of the

measure shows it is cpestionabk superficial and cosmetic in nature.

The National Poverty Eradication Programme has never been

effective in eradicating or curbing poverty level in the country. I f the

programme is effective, why has poverty in the country continued to

be en the increase?

Onah (2006) notes that: "poor implementation of NAPEP

schemes are observed and the poor are yet to feel its impact".

Ukon (ZOO5 : 1 88) agrees with the above point when he note:

over 40 -00 0 government drivers were reportedly

put out of job. Some of them who are lucky

to be absorbed under the KEKE NAPEP

have since discovered that not only

are the vehicles (tricycles) they are to

purchase put up at exorbitant prices that

would make public transportation business

unsustainable, the vehicles themselves would

be costly to service and maintain.

Against this backdrop, Agba (op cit) argues that it is suicidal

and murderous to tie the fate and future of retrenched drivers to a

programme that has been proved ineffective and epileptic.

Furthermore, withdrawal of facilities Iike accommodation from

civil servants in place like AbuJa where house rent is high could

represent serious disincentive to continue to put in their best.

Finally, inadequate financial resources at state and local

government levels is bound to produce selective, lopsided and C

haphazard implementation of the policy and this is bound to create in

Nigeria the notion of first class and second class citizens or civil

servants.

From the foresoing disquisition, it is succinctly observed that at

one level of emotional analysis. the scheme appears good. At another

level of deep analysis, it appears too cosmetic to hold any serious

benefits for federal civil servants and the society at large.

2.1.7 The Impact of Monetization on the

Productivity of Workers in Nigeria

The issue of measuring the impact of monetization on the

productivity of workers appears to be extremely complex. Klatt,

Murdick and Schuster note that: measuring productivity is extremely

complex, although there are three measures of productivity that

should be considered in managing human resources:

i. Strategic Objectives. Are our organizational objectives

correct as nearly as we can determine?

. . 11. Effectiveness: To what depee are we achieving our

objectives in terms of quality and quantity?

... 111. Efficiency: What is the outputlinput ratio where the output

measure includes both quantity and quality?

Yotwithstanding the complexity of measuring productivity of

workers, most especially in the public sector, scholars have attempted

to examine the effect of the monetization policy on productivity of

civil servants. Alkali. Sambo, Musa, (200534) argue that the

implementation of the policy will enhance effective productivity

among civil servants as income will increase, thereby reducing the

tendency of being corrupt.

Agba (2006)' contents that it is doubtfill whether increase in

salaries as a result of monetization will serve as a motivator affecting

work attitude, and perception for better performance. With the prices

of goods and services on the increase, salaries are hardly suficient to

meet the basic needs of workers like food, clothing, shelter, school

fees of children, etc. The problem is compounded by the non-

extension of the policy to state and local governments. Even with the

partial implementation of the policy. government has devised subtle

means of taking back the increment on salaries of Federal Workers.

Productivity which deals with effective and efficient attainment

of set goals and objectives of an organization (Obembe. 2005:154)

can hardly take place when the salaries of workers do not meet their

psychological needs as identified above. According to Lawler (1964),

employees attach greater importance to pay and feel that good job

performance would lead to a higher pay. All that is given by a

worker is his productivity which is determined by his skills, aptitudes,

education, the equipment used, acg-e, years of experience on the job

and sex (Iheanacho, 2005).

Some researches have been carried out in private and public

organisations on African workers, concerning provision of inadequate

incentives for workers. Among such researches are Heighman (1 953),

Hudson (1955), De Briey (1955), Wells and Warrington (1962),

Onah (2005), Kilby (1969), etc. Through these studies, it was

discovered that provision of inadequate incentives is one of the key

factors inhibiting higher productivity.

Others include style of leadership or supervision, job content,

work role content, size of work group, and the psychological needs of

workers. In Nigeria today many establishments, both private and

public find it difficult, if not impossible, to adequately pay salaries or

wages of their workers as and when due. This non prompt payment

or delav is highly discouraging and contributes so much to low

productivity in our organisational set up (Obembe, 2005: 158).

Certain factors may facilitate the increase in productivity, while

others may constrain productivity and better job performance.

The diagram below summarises these factors.

Motivation

Government

Managerial Process

t Innovation, Technology, and HR Capital Investment Trade offs.

Unions

Managerial

Leadership

Source: Klatt, Murdick and Schuster (date not stated),

Htcman Resnrcrce Management, Ohio: Charles

E Merrill Publishing Company.

The diagram shows that enhancing productivity is not just a

matter of each worker working harder. A number of variables such

as managerial leadership, innovation, technology, motivation, etc.

collaborate to influence productivity.

On each pay slip of the Federal Polytechnic, Idah is written this

slogan, "Work Harder to Make Federal Polytechnic, Idah Greater". It

is good to remind staff to work harder, but in addition, the conditions

that make for higher productivity must be put in place by the

Management. This shows that the responsibility for enhancing

productivity in the service rests squarely on "Management" (Okon,

2003: I).

Korolo (1991) believes that to enhance productivity there must

be cooperation of management, employees and the public on the basis

of the values of each as a participant in the policy making process. In

other words, management, employees and the public must be partners

in progress. This can be done by employees and managers getting

involved in identifying the operational objectives of their

ministries/Polytechnics, designing performance indicators and

reviewing achievement from time to time in order to ensure their

commitment.

One of the primary tasks of government is to motivate

government employees to perform at high levels. This means getting

them to work hard, to be at work regularly, and to make positive

contributions to the mission of government. Job performance.

according to Moorhead and Griffin (1989), depends on ability and

environment as well as motivation. A deficiency in any of these

areas even with the increase in salaries as a result of monetized

benefits will hurt performance. Given the level of responsibility

attached to public oficers, holders of such offices should be well

remunerated in order to improve their welfare and ensure increased

productivity. The Nigerian worker seeks jobs that attract higher pay

(Imafidon, 2003:49).

The above discourse confirm the importance of relating job

performance to pay. Money acts as a powerful motivator not only

because of its ability to satisfy physiological needs, but also because

of its ability to satisfy higher level needs such as need for status,

power, recognition, achievement, etc. (YaIokwu, 2003360). So, if a

manager wants to maintain the best relationship with his employees,

he must be prepared to acknowledge the existence of human needs

(Atiorno, 2000:109) and should treat the issue of financial rewards

with great care (Obembe, 2005: 156).

Monetization could jack up the morale of the workers.

However, this possibility could be hindered by poor implementation

of the policy.

In implementing the monetization policy, management of

public organizations should strive towards producing the person-the

job-fits. The person-the job-fits is the extent to which the

contributions made by the individual worker (in form of ability,

loyalty, efforts, skills, time and competence) match the inducements

(pay, job security, benefits, career opportunities, status, promotion

opportunities) offered by the organization (Onah, 2005:235). Of

course, such a precise level of the person-the job-fits as Onah (ihid)

observes is seldom achieved.

2.1.8 The Dilemma of implementing the Monetization

uramme Pro,

The monetization policy was never given sufficient thoughtful

planning and the fill1 financial implications of the policy were not

given adequate consideration before its announcement. This shows

that the implementation strategy is lopsided and haphazard (Okon,

2005:193) and places the architects of the policy in a state of

dilemma.

The dilemma of implementing the programme is fi~rther

deepened by the fact that states and local governments were not

consulted apriori and may even experience tremendous difficulties in

implementing the policy. This may in a way account for the hostile

and negligent attitude of some state governments towards the policy.

The ghost of nonconsultation and where to find the financial

resources to fund the monetization programme will continue to haunt

state and local governments for a long period to come (Okon,

2005: 193).

Notwithstanding the above dilermna however, it is the

researcher's opinion that Nigeria badly needs to implement the policy

which reflects waste-control. fiscal transparency and discipline,

accountability, moderation and cost reduction, etc. To ignore such a

programme is to her peril (Okon, 2005: 194).

Ezeani (2005) seems to maintain a contrary view to Okon's

argument expressed above. For Ezeani, the proposed down-sizing of

the Nigerian Civil Service is anti-labour and will be counter-

productive as it will lead to a feeling of insecurity and dampening of

workers' morale. According to him, this was exactly what happened

after the 1975 purge of the civil service by MuutaldObasanjo military

regime. As he puts it,

Civil service reforms in Nigeria have been

superficial and cosmetic because they were

based on wrong interpretation of the root of the

problem, which is stnlctural.

Research Hypotheses

This study will investigate the following hypotheses:

i . Proper implementation of the monetization policy

will lead to positive change in work attitudes, thus

enhancing productivity of workers.

ii. There is a relationship between monetization

of Erinse benefits and job satisfaction among

workers in the Federal Polytechnic, Idah.

... 111. Increase in salaries th roqh monetized Erinse benefits

is not sufficient to meet the basic needs of workers.

2.3 Operationalization of Key Concepts:

Work attitude: Th is is the predisposition to work, arising from

concepts, feelings, beliefs, habits and motives. It could be positive,

passive or negative. Good health, success, comfort and good

environment contribute to the formation of a positive attitude to work,

while illness, failure, hardship and lack of essential facilities lead to

the development of a negative one. Work attitude is the basis or

h e w o r k on which any productivity, effectiveness and efficiency

drive rests (Ejiofor, 1987).

Positive work attitude can be reflected in form of promptness

and regularity to work, commitment to one's responsibility.

obedience to re_plations, workers' identification with and attachment

to the Polvtechnic. We intend to find out the influence of the

monetization policy on work attitude.

Morale: Tiis refers to the level of confidence and positive

feelings among staff. We intend to measure the impact of the

monetization policy on morale among staff of the Federal Polytechnic,

Idah.

Job Satisfaction: This reflects the extent to which an employee is

gratified or fulfilled in his or her job. A satisfied employee tends to

be less absent and makes positive contribution to the organization

(see Onah, 2003:249).

Frustration: The fact of being prevented from achieving

desired goals because you cannot control or change the

situation.

Retrenchment: Government policy to lay off workers and

reduce the workforce of the civil service by 40 per cent.

2.4 Methodology

2.4.1 Research Desi~n:

A sunrey of one Federal Polytechnic where fiinge benefits

of staff have been monetized was taken. Information or data on the

impact of the monetization of fiinge benefits on workers'

productivity were obtained from ane hundred and ten staff. However.

ninety (90) questionnaires administered were properly completed.

The data were used descriptively on the issues investigated.

2.4.2 Sample Design:

A sample s u e of one hundred and ten staff was selected

through simple random sampling technique. This sampling technique

was chosen because of its unbiased nature.

3.4.3 Method of Data Collection:

Primary and secondary data were collected for this study.

The primary data, which included demogaphic variables, work

attitude, job satisfaction, morale, frustration, productivity, etc. were

collected via questionnaire, direct observation and interviews.

The questionnaires were administered with the help of the

researcher's fi-iends and colleagues in the office. The respondents

who are staff of the Federal Polytechnic, ldah were given clays to

complete and return the questionnaires. In order to enhance the

response rate, some of the questionnaires were filled and returned on

the spot.

The secondary data were obtained through library research

and documented materials like textbooks. journals, magazines,

bulletins, newspapers, government publications, and internet

materials.

2.4.4 Validity and Reliability of Data

To ensure validity, the questionnaire construct was

scrutinized by the researcher's supervisor to ensure that it measured

the issues raised in the research. This, therefore, beefed up the

construct and face validity of the research instrument.

Furthermore, the questionnaire had construct validity

because the items in the questionnaire had earlier been

operationalized in studies like Obembe (2005); Alkali, Sambo, Musa

(2005); Okon (2005); etc.

On the basis of this satisfactory validity, the data reflect

adequateIy the issues investigated sub-ject to the minimum distortion

by subjective factors. There is, therefore, an acceptable reliability.

2.4.5 Method of Data Analysis

Data are presented in tables and analysed through simple

percentage statistical method. The frequencies in each category were

compared for interpretation to answer the research questions and

verify the hypotheses.

2.5 Theoretical Framework

Theoretical framework is a frame of reference which

involves linking the problems under investi pati on to the assumptions,

postulatioi~s and principles of a theory (Obasi, 1999:43). Although

there are extant competing theories in public administration that can

guide a study of this nature, the one we consider suitable in analysing

and understanding the problem under investigation is the Agency

Theory.

>4gency theory focuses attention on the contracts between a

party (the principal who delegates work to another, the agent),

(Jensen and Meckling, 1976). In relating this to the study, there is a

contractual relationship between the Federal Government (the

principal) who delegates work to employees (public servants). The

federal government expects the public senrants to reciprocate salaries

paid to them by being productive in carrying out the work delegated

to them.

Agency relationship is problematic to the degree that (a) the

principal and agent have conflicting goals and (b) it is difficult or

expensive for the principal to monitor the agents' performance

(Eisenhardt, 1989). There are conflicting goals between the Federal

Government and the Federal Workers in the monetization scheme.

For instance, the Federal Government intends to lay off drivers,

security men, cleaners, labourers, gardeners, messengers from the

service of the Federal Government. Workers are not in support of

the disengagement programme because of the untold hardship this is

likely to cause in the society.

Furthermore, workers would want their salaries increased to

*meet their needs and increase their standard of living while the

Federal Government is thinking of cumng down cost of governance

by all possible means. The Federal Government finds it difficult or

expensive to monitor the performance of public servants. It is very

difficult to monitor and measure the performance of civil servants

whether at the Federal, State or local government level.

The agency theory also postulates that contracts are used to

govern relationship between the principal (the Federal Government) C

and the agents (the Federal workers). Efficient contracts aIign the

goals of principals and agents at the lowest possible cost, The

monetization programme is aimed at increasing salaries to meet the

goals of the Federal workers and at the same time, government hopes

to cut down cost of governance to its minimum level through the

programme. Costs can arise from providing incentives and obtaining

information, example, about the agent's behaviour and or the agent's

performance (outcomes). Cost of governance, wastages, and

leakages have been on the increase as a result of providing benefits

like accommodation, chauffeur-driven official cars, furniture, cooks,

etc. Agency theory appears to be particularly useful for

understanding workers' compensation practices, which are viewed as

a means of aligning the interests of the Federal Government with that

of the Federal workers. For example, agency theory suggests several

conditions under which contracts are more likely to monitor

behaviour ( e g salav-plus-merit pay system) and or outcomes

(Conlon and Parks, 1990; Eisenhardt, 1988. 1989; Mikovich et al,

199 1; Tosis Gomez-Mejia, 1989).

The Federal Government expects to monitor the behaviour

of workers in the area of work attitude, job satisfaction, morale, etc.

Experts believe that by increasing salaries through monetization

policy, the productivity of workers will be enhanced.

Agency and transaction costs theories share many similar

assmnptions about human behaviour (Eisenhardt, 1989) and may be

most usefiil when combined. For example, using these two theories,

Jones and Wright (1992) offer an insightful interpretation of the

Human Resource Management literature focusing on implications of

the economic perspective for Human Resources Management Utility

estimates.

Chapter 3

BACKGROUND INFORMATION ON THE

E D E M L POLYTECHNIC, lDAH - KOGI STATE

As always, the Federal Polytechnic, Idah places

a high premium on academic excellence

through a vigorous search for knowledge and

a dexterous acquisition of necessary skills,

all of which are critically evaluated through

sound judgment.

Prof, J. N. Egila (2001)

3.1 Historical Background of the Federal Polytechnic, Jdah.

The Federal Polytechnic, Idah was established in February, 1977

as Idah College of Technology. Its establishment was part of

government attempt to solve practical middle level manpower

technological problems facing the country. Geopaphically, the

Federal Polytechnic is situated in Idah Kogi State. It has a permanent

site with an area of 1,238.5 hectares of land bounded to the North by

the Idah/Anvigba road, to the East by IdahiOdoIu road to the West by

the River Niger, and to the South by IdahlIbaji road.

In 1977, the institution started with a population of one hundred

and eighty (180) students who were offered admission after a

competitive entrance examination. The Polytechnic at that time had a

staff strengt11 of eleven academic staff, nineteen senior

Administrative staff and eighty-six supporting staff with Engr. (Dr.)

Samuel E. Chukwujekw appointed as the pioneer principal (now

called Rector) and Mr. Nduka I. Eya as the pioneer Registrar. The

Polytechnic began with two schools namely: the School of Business

Studies and the School of Engineering.

The School of Business Studies had only the Department of

Secretarial Studies while the School of Engineering comprised the

following Departments: Civil Engineering, Mechanical Engineering,

Electrical Engineering, and Metallurgy.

The name of the institution metamorphosed from Idah College of

Technolop to the Federal Polytechnic, Jdah following the

promulgation of the Polytechnic Decree No. 33 of July, 1979. The

Decree spelt out the fimctions of the Polytechnic as follows:

1. To provide full time courses of instruction and training

in technology, applied science, commerce and management and in

such other fields of applied learning relevant to the needs of the

development of Nigeria in areas of industrial and agricultural

production and distribution and for research in the development

and adaptation of techniques as the Council may from time to time

determine.

2. To arrange conferences, seminars, and study p-oups relative to the

fields of learning specified above.

3. To perform such other firnctions as in the opinion of the Council

may serve to promote the objectives of the Polytechnic.

At its early stage. the effective development of the institution was

hampered by a handful of problems - fire incidents, erratic power

supply, lack of fimds, and in recent times, students' unrest that led

to the burning down of the Department of Accountancy, Dean's

Office, School of business Studies, the Polytechnic Library (rated

as one of the best in the country), the Polytechnic Cyber Cafk and

looting of computers and other properties.

Mr. Joseph lbikunle Jacobson was appointed as an lnterim

Rector to take over the mantle of leadership fiom a Rector who was

dismissed fiom the service of the Polytechnic following the judicial

panel of inquiry headed by Justice S e y n to investigate into the root

of a fire incident. Other principal officers dismissed alongside the

Rector were the Registrar, Bursar, and the then Director: of School of

Engineering.

Mr. Joseph I. Jacobson expended all available resources to

rehabilitate the burnt facilities and infiastructrlres rather than

developing new structures. He served for only two years and was

succeeded by Alhaji Muazu Ahmed Danzaki whose administration

was stalled by inadequate funding. The exit of Alhaji Damaki as a

result of his resignation paved way for Dr. Y. W. Awodi as the

Rector of the Polytechnic from March 1992 till 2 Y d May. 2000.

Professor Joseph Ndanusa Egila took over the mantle of leadership of

the Polytechnic fiom May, 2000 till date.

At present, the Polytechnic operates six academic Schools,

namely: the School of Business Studies, the School of Engineering;

the School of Environmental Studies (which is the baby of Prof. J. N.

Ella); the School of General and Administrative Studies; the School

of Preliminary Studies and Continuing Education; and the School of

Technololy. Students' enrolment has grown from 180 in 1977 to

about 11,000 in 2004. Recently, students enrolment has dropped

drastically due to the application of the carrying capacity directive of

the Ministry of Education as students are admitted based on the

facilities available and students-lecturer ratio. The staff strength as at

2004 stood at 1,480. This is made up of 317 academic staff, 332

senior non-academic staff and 831 junior non academic staff. This

number has drastically reduced by 486 following the staff

rationalization exercise carried out in the Polytechnic in the first

week of April. 2007(Samuel, 2005: Students' Comprehensive

Handbook, 2005; and FEPODA News, 200 1,2004).

3.2 Organizational Structure o f the Federal

Polytechnic, Tdah

The National Board for Technical Education (NBTE) is the

supervisoly agency responsible for all Polytechnics in Nigeria. There

is a serious agitation by the Academic Staff Union of Polytechnics

(ASUP) for the establishment of a National Polytechnic Commission

to take the place of the Board. The Board performs the supervisory

role on behalf of the Federal Government represented by the Federal

Ministry of Education.

The Governing Council of the Polytechnic is the statutory body

responsible for policy-making, guidance and control of the finances

and property of the institutions. The Council regularizes

appointments and approves key capital projects. The chairman and

members of the Council are appointed by the Federal Government

and drawn from various fields such as Engineering, Manufacturing,

Technical, Industrial and Commercial as well as the Federal and Kogi

State Ministries of Education.

The Polytechnic consists of two sectors - the Administrative and

the Academic sectors.

The Rector is the head of both the Administrative and Academic

sectors and equally the Chief Executive and Accounting Officer of

the Polytechnic. He is responsible to the Governing Council. To

assist the Rector in the day to day administration of the Polytechnic

are the Registrar, the Bursar who administer the finances and the

Director of Works who runs the Works and Services Department.

Other Service Units include the Medical Centre headed by the

Director of Medical Services, the Polytechnic Ventures headed by a

Director, etc.

The Academic Board is the Statutory body that is responsible for

all academic matters such as the regulation of admissions and

examinations, award of certificates and diplomas, prizes and other

academic distinctions. The Board consists of the Rector as Chairman

with the Deputy Rector, all heads of academic departments, the

Polytechnic Librarian, two representatives of the academic staff, as

members. Some heads of relevant departmentdunits are co-opted to

attend its meetings.

3.3 The Polytechnic Reputation

The Polytechnic has made a name nationally and internationally

with its higher academic standards. Reports fiom employers of

labour on the graduates of the Polytechnic have been very

encouraging. So it is from various institutions and universities where

products of the Polytechnic are working or studying. The

Polytechnic has graduated at least 20 ICAN professionals and

countless Engineering graduates who are in the forefront of their

professions. It has won many laurels a t the local and international

exhibitions.

Chapter 4

4.0 Data Presentation, Analysis and Findings

"Prepare thy work without, and

make it fit for thyself in the field;

and afterward build thine house"

Proverbs (24:27)

This chapter focuses on data presentation, analysis, and findings.

Data are presented in tables, and analysed with the aid of descriptive

statistics, especially the simple percentage. Like Obikeze ('I 990%)

aptly observes, statistical tables do not always speak for themselves.

They need to be described and explained in prose. This we shall

adopt in this chapter.

4.1 Data Presentation and Discussion o f Findings:

Table 4.1.1 : Methodological Analysis of Response Rate

- Questionnaire Administered ( 110

Properly Completed and Returned Questionnaire

Source: Fieldwork, 2007.

90

Percentage (Oh) 8 1 . 8

Table 4.1 . I above gives a response rate of 8 1.8%, implying a very

good response rate for the study.

Table 4.1.2: Percentage Sex Distrihu tion of Respondents.

1 Sex / Frequency I Percentage 1

Source: Fieldwork, 2007

Table 4.1.2 above shows that 71 representing 75.9% of the

respondents are male while 19 representing 2 1 -1 % are female. This

demographic data reveals that the staff of the Federal Polytechnic,

Female 1 19

Tdah is composed of a greater number of males.

21.1

Table 4.1.3: Percentage Distrihution of Marital

Status of Respondents.

/ Married I I

1 73 1 81.1

Marital Status

- Total

Frequency Percentage --I----

c Source: Fieldwork, 2007.

Table 4.1.3 above shows that of the 90 respondents, 73

representing 8 1.1% are married while 17 representing 18.9% are

single. This is a clear indication that majority of the stafl of the

Federal Polytechnic, Idah are married, hence their physiological

needs are bound to increase from time to time.

Table 4.1.4: Percentage Age Distribution of Respondents

Table 4.1.4 above indicates that 4(4.4%) of the respondents are

I Age

18 - 26 years

27

36 - 44 years

45 years and

above

Total

within the age bracket of 18 - 26 years: 36(40°4) are within the age

bracket of 27 - 35 years; 35 representing 38.9% fall in the age

Source: Fieldwork. 2007.

Frequency

4

-Fyearsp 36

35

15

90

Percentage

("/.>

4.4

40

38.9

16.7

100

bracket of 36 - 44 years while 15 representing 16.7Oh are 45 years

and above.

Since majority of the respondents are within the age

brackets of 27 - 35 years and 36 - 44 years, the Polytechnic has a

productive workforce in terms of age. Those who are gradually

approaching their retirement age are of negligible number. However,

the number is increasing. Tn view of this, and the recent staff

rationalization in the Polytechnic, the human resource manager is

bound to face a number of challenges that centre on proper manpower

planning and forecasting. Griffm (1997) aptly articulated human

resource planning entails an assessment of trends, forecasting the

supply and demand of labour and then developing appropriate

strategies for addressing any differences.

Table4.1.5: Percentage Distribution of Highest

Educational Qualification

Percentage I Educational Qualification

FSLC.

WASC/GCE/SSCE/NECO


Frequency

HND/B.A./B. Sc.

Table 4.1.5 depicts that 1 (I. 1 %) of the respondents have FSLC;

1

6

6(6.7%) have O'Level Certificate; 23 (25.6%) respondents posses

(%)

1.1

6.7

44

AL/ND/NCE while 44 respondents representing 48.8% and 16

48.8

respondents representing 17.8% have HNDFirst Degree and Master

DegreePh. D respectively.

This shows a workforce dominated by AL/ND/NCE and

HNDB.A/B. Sc. holders. However, a moderate percentage of the

workforce have master/Ph.D. This suggests that manpower planning

and development of the workforce must be taken seriously by the

Polytechnic management.

Table 4.1.6: Percentage Distribution of Position:

Present Position (Rank)

Junior Staff I l 8 I 20

Senior Staff

Contract Staff

Frequency

70 77.8

Percentage


-

Total

Table 4.1.6 above shows that 70(77.8°6) of the respondents are

senior staff while 18(20%) are junior staff. Only 2 (2.2%) of the

respondents are contract staff.

Thus, the workforce of the Polytechnic is dominated by senior

staff The ratio of senior staff to junior staff is Iikely to expand

following the recent disengagement of messengers, cleaners, security

men, drivers, and staff with bad records fkom the service of the

Polytechnic.

90 100

Table 4. I .7: Percentage Distribution of Awareness

of Monetization Policy Among Respondents.

I Options I Frequency / Percentage (%)


From table 4.1.7 it can be deduced that respondents are well

infonned about the monetization policy. This is demonstrated by the

90 (200%) respondents who ticked "yes" as against no respondents

for option "flow. This high level of awareness among staff may be

due to the fact that the monetization policy directly affects their

salaries and the role of the media in giving the policy a wide publicity.

Table 4.1.8: Level of Implementation of Monetization Policy:

Fully Implemented. 77- Partially 48 53.3

Implemented.

5 5.6


Table 4.1.8 reveals that the monetization policy is partially

implemented in the Federal Polytechnic, Tdah. This is because inore

than half - 48(53.39/0) of the respondents indicated that the scheme is

partially implemented. 37(4 1.1 %) of the respondents were of the

opinion that the policy is fully implemented while 5(5.6%) said they

do not know whether the policy is fully or partially implemented.

One may be inclined to agree with respondents who said the policy is

partially implemented. First, the two years monetization arrears is

yet to be paid. Secondly, staff quarters are yet to be sold out. Thirdly,

no staff has benefited fiom the car loan provision of the scheme.

This partial implementation may have hampered the full impact

of the scheme on work attitude, job satisfaction, and the satisfaction

of basic needs of workers. The partial implementation of the policy

may not be a surprise to most observes of Governance in developing

countries. Governmental policies and programmes scarcely leave

their blueprints level.

Testing Hypotheses

Hypothesis 1 : Proper implementation of the monetization policy

will lead to positive change in work attitude,

thus enhancing productivity of workers.

Items 9, 10, 11, 12 in the questionnaire were used by the

researcher to validate this hypothesis with a view to ascertaining

whether proper implementation of the policy has led to a positive

change in work attitude, thus enhancing job per;formance in the

Polytechnic.

Question 9: Workers are prompt and regular to work since

their fiinge benefits were monetized. The responses obtained are

presented on Table 4.1.9.

Table 4.1.9: Percentage Distribution of Effect of

Monetization Policy on Promptness and

Regularity of Workers to Work

1 Undecided 5 5.6

Options

YES

I I Source: Fieldwork, 2007

Frequency Perclitage

(O/o> 5 4

The data on table 4.1.9 above reveal that of the 90 respondents

54 (60%) are of the opinion that workers are prompt and regular to

work since their fringe benefits were monetized. In other words,

there is a positive change in work attitude due to the implementation

of the monetization policy. However, 3 1 (34.4%) of the respondents

have a contrary view by ticking the " N O option. For them, workers

are not prompt and regular to work since their fringe benefits were

monetized. Only 5(5.6%) of the respondents remained undecided.

We can infer fiom the percentage of those who ticked "yes7' that

there is a positive change in work attitude in the Polytechnic

following the monetization of workers' fringe benefits. This

conclusion agrees with the findings of such studies like Urnbuzi

(2202), Jalongo (1985), Crase (1987). In other words, the use of

financial reward enhances positive attitude to work and can serve as a

means of motivating workers towards greater job performance.

The above findings and conclusion is further strengthened by

responses to questionnaires 10 and 1 1.

Question 10: There is more commitment to work,

duties, obedience to re_plations since management

started the implementation of the monetization

policy.

Responses to the question are presented on table 4.1.10

Table4.1.10: EffectofthelrnglernentationofMonetization

Policy on Workers' Commitment

Options r----- 1 Strongly Agee

Agree

/ Disagree

1 Strongly Disagree

L

Source: Fi

Frequency Percentage

I I

work, 2007.

As can be seen -From table 4.1.10 above, 14 representing 15.55%

of the respondents strongly agreed to the question asked, 48

representing 53.33% agreed while 12 (13.33%) of the respondents are

undecided. 13 ( I 4.44') and 3(3.33%) respondents disagreed and

strong1 y disagreed respective1 y. The responses imply that majority of

the respondents are favourably disposed to the view that the

implementation of the monetization scheme by the Polytechnic

mana~ement has led to more commitment to work, duties, and

obedience to recrmlations by workers.

In other words, the monetization of frinse benefits in the public

service has motivated workers by influencing their job performance

for good.

Question I I : Has the Monetization of frmge Benefits in the

Polytechnic caused a positive change in work attitude,

thus enhancing the productivity of workers?

Responses to this question are presented on Table 4.1.1 1 .

Table 4.1.1 1 : Impact of Monetization of Fringe Benefits

on Work Attitude and Productivity of Workers.

I Options I Frequency / Percentage 1


Total 90 100

In ageement with Table 4.1.2 0, the above table 4.1.1 1 depicts

that the monetization of fringe benefits in the Polytechnic has

actually led to a positive change in work attitude thus enhancing the

productivity of workers. This is shown by the 48 (53.33%)

respondents who ticked "YES"; 22(24.44%) respondents said " N O

while 20 (22.22%) respondents said they don't know whether the

policy has caused a positive change in work attitude or not.

From the foregoing analysis, we accept our hypothesis 1 to the

effect that proper implementation o f the monetization policy has led

to positive change in work attitude, thus enhancing the productivity

of workers.

Question 12: If YES, do you think this chan~e is as a result of the

proper implementation of the policy of monetization

by the management of the Polytechnic?

Responses to the question are presented on Table 4.1.12.

Table 4. I . 12: The Effect of Proper Implementation

of Monetization Policy on Workers'

Performance.

Percentage 1


Although the data on Table 4.1.12 show a confilsed response, it,

however, depict that proper implementation of monetization policy

may not be a suficient variable in explaining the positive change in

work attitude of workers in the Polflechnic. This is obvious in the

following analysis.

In item 13 of our questionnaire, respondents were asked to

indicate other factors that account for the positive change in work

attitride (if any) among workers in the Polytechnic. Respondents

readily agreed that variegated factors account for the positive change

in work attitude in the Polytechnic. These factors are surnrnarised as

follow:

I

IV.

VI.

The introduction of SERVICOM charter aimed at better

service delivery;

Anticipation that any positive change in work attitude will

be rewarded;

Better condition of service, promotion and granting of study

leave;

Regular payment of salaries and encouragement from the

management of the Polytechnic.

Training of workers and good working relationship among

workers;

Individual attitude and conviction such as personal

commitment, dedication and self discipline;

VII. Close supervision of management on punctuality of workers;

VIII Free flow of information between management and staff;

IX. Scarcity of job and fear of losing one's job due to improper

conduct at work;

X. Leadership style of the present Chief Executive and

recognition of staff effort; and

XI: Easy access to mobility which ease prompt resumption to

office. That the monetization scheme has afforded cars

and motor-bikes for staff, thus enhancing their prompt

response to duties.

Hypothesis 2: There is a relationship between Monetization of

Fringe Benefits and Job Satisfaction among workers

in the Federal Polytechnic, Idah.

To test this hypothesis, item 17 on the questionnaire will be used.

Q~lestion 17: The Monetization Policy has brought about job

satisfaction among workers, thereby improving

their productivity and growth of the Polytechnic.

Responses to this question are shown in Table 4.1.13 below:

Table 4.1.13: The Impact of Monetization Policy on Job

Satisfaction and Growth of the Polptech nic.

/ YES 'TO-/ 44.44


Percentage p i i o n s

The responses on Table 4.1 -13, indicate that out of 90

respondents, 40 (44.44%) supported the view that the monetization

policy has brought about job satisfaction among workers, thereby

improving their productivity and growth of the Polytechnic.

28(3 1.1 1 %) respondents said NO while 22(24.44%) are undecided.

The above analysis implies that there is a relationship between

monetization of fiinge benefits and job satisfaction among workers in

the Federal Polytechnic, Idah. We, therefore, accept our hypothesis

two of the study.

Question 1 9: Job Satisfaction among workers in the Polytechnic

Frequency

is a result o f . . .

Table 4.1.14: Other Factors Affecting Job

Satisfaction Among Workers.

Options I Frequency

Good working Relationship. I Better Condition of Service. 18

All of the Above 28

None of the above.

Total I-

Percentage

(.%)


In order to probe into the tole of other factors in promoting job

satisfaction in the Polytechnic, question 19 was raised. Responses

show that respondents attach much value to good working

relationship among workers. This is demonstrated by the 35(38.9%)

respondents who noted that job satisfaction among workers in the

Polytechnic is as a result of good working relationship. 18(20%)

respondents indicated that better conditions of service lead to _job

satisfaction while 28(3 1.1 %) ticked "all of the above" option. Only

9(10%) respondents maintained that none of the above factors

accounts for job satisfaction.

It is inferred from the analyses done on Tables 4.1.13 and 4.1.14

that monetization of finge benefits, good working re1 ationship

among workers and better conditions of senice have the potential of

promoting job satisfaction in the Polytechnic, nay the public service

of the country.

Alani ( 1 995) approved these factors by recotnmending that

emplovees can be motivated through improved working conditions,

creation of good working and social environment. Indeed, the

existence of these factors will increase organizational output and job

performance.

Hypothesis 3: Increase in salaries through monetized benefits

is not sufficient to meet the basic needs of

workers.

To test this hypothesis, item 8 of the questionnaire will be used.

Question 8: Increment in salaries through monetized fringe

benefits is sufficient to meet the basic needs of

workers such as shelter. school fees, food,

clothing, medical bills, etc.

Table 4. 1.15: Monetized Benefits and Basic Needs of Workers.

Options

I I

Source: Fieldwork. 2007.

Frequency

Based on the responses above, it is glaring that increase in

salaries of workers through monetized benefits is not suficient to

meet or satisfy the basic needs of workers. This is reflected by the

61 (67.8%) respondents who ticked the " N O option of the question

posed.

Hypotl~esis three of the study progresses from the assumption

that in order to harvest the best fiom workers among other things,

increment in salaries must satis6 their basic needs. Unfortunately,

this has not been the case in Nigeria.

Percentage

(761

Question 14: What is your assessment of the morale of workers

in the Polytechnic?

Table 4.1.16: Percentage o f Distri bu tion of the Morale of

Workers in the Polytechnic.

Very low v

Options

Very High

Percentage

("/.I

Frequency

14


Table 4.1.16 above shows that morale in the Polytechnic is high.

Tliis is revealed by the 48(53.3?/0) respondents who assessed the

morale of workers to be high. l4(lS.6%) respondents said workers'

morale in the Polytechnic is very high while XJ(31.1) indicated a low

morale. None of the respondents ticked "very low".

In fact, the presence of high morale may not guarantee high

productivity. As Ndu ( 1 991:33) observed, productivity, for various

reasons can be quite high while morale is low, or be quite low while

morale is high. However, the presence of high morale, in the

workforce of the Polytechnic is a good development. This is because

in as much as high morale is not a condition for high productivity, it

is however, needed to ensure the retention of the able and competent

workers of the Polytechnic.

A comparison of Tables 4.1.1 6 and 4.1.19 shows that although

the morale of workers is high as a result of monetized benefits, their

performance and productivity is rated to be average.

Question 15: The Monetization of Fringe Benefits has boosted the

morale of Workers in the Polytechnic.

Responses from the above question are presented in Table 4.1.17

Table 4.1 .17: Effect of Monetization Policy on

Morale of Workers in the Polytechnic.

( YES I 54 I 6o I

Options

Source: Fieldwork, 2007,

Frequency

Total

Percentage

(W

90 100

The data on Table 4.1.17 show that the monetization of fringe

benefits in the Polytechnic has influenced positively the morale of

workers. This is demonstrated by the 54(60%) respondents who

agreed that the scheme has boosted the morale of workers as against

36(40%) respondents who held contrary view. This analysis

adumbrate the point that money is a factor in boosting the morale of

workers.

Question 16: If frustration, fear and anxiety exist among staff

of the Polytechnic, are they traceable to the

retrenchment and downsizing components

of the monetization policy?

Table4.1.18: EffectofRetrenchmentandDownsizing

Components of the Monetization Policy

I Options I Frequency

] YES 1 79

Total t

Percentage 1

( 1 I

Sources: Fieldwork. 2007.

The data on table 4.1.1 8 are indicative of a workforce that is

tensed up with frustration, fear, and anxiety. The retrenchment

component of the monetization policy accounts for this unpleasant

development. The researcher through personal observation and

interaction with staff noticed that the frustration, fear and anxiety is

mostly among the cleaners, messengers, security men gardeners,

cooks, and drivers who are likely to be disengaged from the service

of the Polytechnic in the rationalization exercise. A good manager is

one who takes measures to circumvent the development of

detrimental emotional factors.

Emotional factors like fear, anxiety, depression can take their

toll on the workers concentration and commitment, thus, reduce his

productive capacity (Peck and Parson, 1956; Steiner, 1953).

Question 18: How would you rate staff performance and

productivity since government started the

implementation of the monetization policy

in the Polytechnic?

Table 4.1.19: Rating of the Impact of Monetization

Policy on Staff Performance and Productivity:

I Options / Frequency / Percentage I

1 Average 1 66 1 73.33 1

I Source: Fieldwork, 2007.

Low

The data on table 4.1 .19 show the positive impact of the

monetization policy on staff performance and productivity. This is

demonstrated by the 66 (73.33%) respondents who assessed staff

performance and productivity since the implementation of the policy

as average. 22(24.44%) respondents assessed the effect as high while

2(2.22%) said is low.

In order to sample respondents' views on how to solve the

problem of low productivity in the Nigerian public service, question

20 was raised. Some of the responses we got are centred on proper

and adequate motivation of civil senrants. One respondent is of the

2 2.22 -j

opinion that there should be total overhauling of the system from top

to bottom to make things work. For others, reward like promotion

and pay should be tied to productivity and performance. Some of the

respondents advocated the adoption of reform measures that

guaranteed job security and has human face. Respondents were not

comfortable with the disengagement exercise currently going on in

the Federal Public service and advised against it. They also

recommended the employment of qualified and Lmowledgeable

personnel, close monitoring of staff, staff development; tackling of

corruption and motivation of junior staff who are actually doing the

job.

As a panacea to the problem of low productivity in the public

service, a respondent advocated that government should honour all

agreements with labour unions to reduce industrial mistrust and crisis.

In fact, one of the respondents' prescriptions on the ways of solving

the problem of low productivity in the public sewice looks splendid

and is worth reproducing here:

The problem of low productivity can be solved

through better condition of service, moderate

degree of tolerance to innovation, training and

capacity development and above all, assurance

of social security after retirement fiom public

service. With respect to social security, prompt

payment of pensions and gratuities should be made

workable in Nigeria.

The last statement of this respondent leaves one with the

question of the effectiveness of the recently introduced contributory

pension scheme in curbing the problem of pension in Nigeria. This

unfold an interesting area for further research.

The study revealed that promotion, job security, good working

relationship and staff development are variables which are very

valuable to the staff and should not be treated with levity by the

Polytechnic management. Stressing the importance of promotion,

Ubeku (1975:302) observes that promotion puts new life in the

individual and activates his knowledge, skills, etc. and he in

consequence strives harder to be effective in his new job.

The issue of job security is pertinent in harvesting the best of the

workers. Strauss and Sayles (1980:7) supported this view when they

wrote that:

Job security is a hndamental human need; for

many people, it is more important than

either pay or advancement. The forces driving

toward unionism, the most serious problems

of superior-subordinate relations, the fears

surrounding technology - a11 revolve around

the need for sec~mty.

It is not enough for people to have their physical

needs satisfied from day to day; they want to

make sure their needs will continue to be

satisfied in the future.

We cannot but conclude from the foregoing analysis that

motivation is a complex issue which demands serious attention from

management.

Summary, Conclusion and Recommendations

5.1 Summary:

The implementation of reform measures in public

institutions aimed at engendering effective service delivery has in the

recent times become one of the most press'ing preoccupations of

government. The study took a critical look at one of the reform

packages - the monetization of h n g e benefits. In specific terms, this

work, focused on the impact of the monetization of fi-inge benefits on

workers' productivity in the Federal Polaechnic, Idah.

Issues covered in the investigation include the effect of the

scheme on work attitude, job satisfaction, morale of workers and

satisfaction of basic needs of workers. For the purpose of a

cotnposite disquisition, the study was divided into five interrelated

chapters. Chapter one looked at introductory issues like background

of the problem, statement of the problem, significance and 'objectives

of the study, etc. Chapter two reviewed some relevant lite~atures

while chapter three considered the historical background of the

Federal Polytechnic, Idah. Chapter four dwelt on data analysis and

discussion of findings.

The study revealed that the implementation of the monetization

policy has positively changed the work attitude and boosted the

morale of workers in the Polytechnic. Also discovered is the impact

of monetized benefits, good working relationship, better conditions of

service, promotion, study leave on job satisfaction among workers.

The staff rationalization has generated anxiety, fear, and fhstration

among drivers, messengers, security men and other staff who were

affected in the exercise.

Increase in workers' salaries became obvious in view of the fact

that their basic needs are not adequately satisfied in the monetization

scheme. The demographic data on age, showed that a few staff me

nearing their retirement age, hence the need for manpower planning

and forecasting to be undertaken by the Human Resources Manager

of the Polytechnic.

Conclusion:

We conclude that although the monetization policy was

originally intended to reduce cost of governance, enthrone modest

government, promote maintenance culture and self discipline, the

scheme has indeed served as a motivator to enhance the performance

of workers. To this extent, it is a welcomed development.

Government can still do more by increasing salaries in view of

the inadequacy of the present pay to meet basic needs of workers.

The controversy surrounding the new salary stnlcture announced by

the Federal Government in January, 2007 does not tell well of

government resolve to assist workers in meeting their basic needs.

5.3 Recommendations:

The foIlowing recommendations are made in the study.

(i) All arrears of monetized benefits should be fully paid to

workers in order to harvest the best from them. This can be

achieved by emphasising prudence in the use of public

resources in order to have enough to meet personnel cost.

(ii). Although high morale is not a guarantor for

high productivity, management of Polytechnics and public

agencies can still adopt measures to boost the morale of

their workers since this is imperative in retaining able and

competent workers.

(iii) Only refonns with human face should be implemented by

government. This will help to prevent the growth of

frustration, fear and anxiety in government workforce.

Government can achieve this by c a q i n g out impact

assessment of policies before they are announced and

implemented.

(iv). Those things which interest workers and are valuable to

them should be given adequate attention by management

provided they are not detrimental to the growth and

achievement of the organizational objectives.

(v). Reward system should be tied to performance in

order to boost productivity in the public sector.

(vi). Since productivity and service delivery are things that

affect state and local governments, the monetization scheme

should be extended to these tiers of government. By doing

this, the struggle and urge to join the Federal Public Sewice

by state and local government employees will be reduced,

thus ensuring high quality personnel profiles at these levels.

(vii). Management of public institutions should endeavour to use

hanc ia l reward since this motivates workers. In increasing

salaries of workers in the public service, government should

avoid the use of subtle means like exorbitant taxes, the

controversial contributory pension and National Health

Insurance Schemes that end up in getting back

the increment.

BIBLIOGRAPHY

Books

Adebayo, A. (2000). Principles and Practice qf Ptcblic

Administration in Nigeria. Ibadan: Spectrum Books Ltd.

Alani, R. A. (1995). "Historical Foundations of Organizational

Behaviour" A Rook of Reading in Or~~anizotinnnl Behaviour in

Nigeria. Lagos: Malthouse Press Ltd.

Anderson, J. (1 979). Ptd~lic Policy Makrng. New York: Holt.

Rinehart and Wiston.

Atiomo, A. C. (2000). Practical Human Re.ro~rrces A4anqqernent.

Ibadan: Malthouse Press Ltd.

Bassey , C. 0. ( 1997). "The State and Economy in Nigeria: An

Appraisal of Crisis and Adjustment". Ozurnba, G. 0. (ed.).

Ni,~erian Government and Polilics. Aba. Vitalis Books.

Cole, G. A. (1 990). Management: TI7eog1 and Practice. London:

D P Publications Ltd.

De Merode, L. and Thomas, C. G. (1994). "Implementing

Civil Senice PRV and Employment Reforms in Afiica: the

Experiences of Ghana, The Gambia and Guinea7' Lindawer,

D. L. and Nunberg, B. (eds.) Rehabilitating Go~~ernment:

Pay and Emplojwent Rcform in Africa. D. C. World Bank.

Ejiofor, P. N. 0. (1987). Management in Nigerin:

The0rie.s nnd Issues. Onitsha: Afiicana - FEP Publishers Ltd.

Griffin, P,. id. ( 1997). Management. New Delhi: Aitbs Publishers.

Kirk-Greene, A. H. M. ( 1976). Crisis and conflict,^ i n Nigeria Vol. 1

London: Oxford University Press.

Klatt, L. A. et a1 (date not found). Human Re.r.ource.s Mmn~gement.

Ohio, Charles E. Merrill Publishing Company.

Lawler, E. E. (1964). "Job Design and Employee Motivation".

Compensation and Benefits Re~vk-w, March - April.

McConnell, R. C. (1987). Economics: Principles, Prol&vm ar7d

Policies. New York: McGraw-Hill Books Company.

Moorhead, M. and Griffin, R. W. (1 989). Orpnization Rehavinzrr.

Dallas: Hoinghton Mifflin Company.

Ndu, A. N. (1 99 1) "Switching on to Increased Productivity:

The Man aperial Action': Increasing Productivi~ in Nigeria.

Abuja:National Productivity Centre.

Nwana, 0. C. (1981). Introdzrction to Edtrcation Resenrch. Tbadan:

Heinemann Educational Books Ltd.

Obasi, 1. N . ( 1999). Research Me~hodology in Politicd Science.

Enugu: Academic Pub1 ishing Company.

Obikeze, D. S. (1990). A4ethods ofDnm Analysis in the Social

Sciences and Rehmioura/ Science. Enup: Auto-Century

Publishing Co. Ltd.

Okoli, F. C. and Onah, F. 0. (2002). Ptthlic Adninistrcriion i77

Nigeria: No t~rre, Principles nnd Application. Enugu: John

Jacobs Classics Pub.

Okoro10,E. M. 0. (1 991) "Role of Management in Promoting

Productivity".Increasing Prodmtivity in Nigeria. Abuja: National

Productivity Centre.

Olowu, D. and Ladipo, A. (2002) "Human Resource Management".

Adamolehm L. (ed.) Prrhlic Administration in Africa: Main

Issues nnd Selected Countries. Benin: Spectrum books Ltd.

Onah, F. 0. (2006). Mannginq I_ Public Programmes and Projects.

Y sukka: Great A P Express Rlblishers Ltd.

Onah, F . 0. (2003). Hzman Resource Management. Enup: Fulladu

Publishing Company.

Onah, R. C . (2005). Public Administrcrtion. Nsukka: Great

A P Express Publishers Ltd.

Rao, P. S. and Rao, V. S. P. (1996). Personnel,Hrt?nan Resource

Mcmqgemen: Text, Cases and Games. Dehi: Konark

Publishers Pvt Ltd.

Straws, G. and Sayles, L. R. ( 1 980). Personnel: The Htcman

Problems q f A4mragement. New Jersey: Prentice-Hall Tnc.

Ubeku, A, K. ( 1975) Personnel Managemmt in Nigeria. Benin City:

Ethiope Publishing Corporation.

Wells, F. A. and Warrnington,W. A. (1962). Sttmies in

Indmtrializntion: Nigeria and the Carnerooras. London: Oxford

University Press.

Yalokwu,P. 0. (2002). Fz~ntlamenfals qf Management: Lagos. Peak

Publishers.

.Tournd Puhlic~tiom

Ajieh, C. J. T. (2005) "Monetization Policy of the Federal Republic

of Nigeria: Options for Minimizing Wastages in the Public

Service': American Journal oflnternntionnl Politics and

Developmen? Sttldies. 1 ( I ) , July/December. pp.

Alkali, A. W. Sambo E. and Musa, A. P. (Jme, 2005): "The Effects of

Monetization Policv on Workers' Productivity". In~ernntionnl

Journal of Social and Policy Issues, 3(1): Pp. 27 - 38.

Ahrned. M. Y. (2004)~. "Public Service Transformation for Greater

Senrice Delivery". hhnagernent in Nigeria, 40(2, 3, & 4).

April - Dec. Pp. 12 - 16.

Ahmed, M. Y. (2004)~. "Implications of the Monetization of Civil

Service Fringe Benefits on the 2004 Federal Government

Budget': Bullion, 28(2), AprilIJune: Pp. 49 - 52.

Coker, M. A. (200 1). "An Appraisal of the Causes and Consequences

of Unemployment in Nigeria". West African Journal qf

Research nnd Development in Edrrcation, 8(2)

Crase. D. ( 1 987). " Dimensions of Scholarly Productivity". The

Physical Eclltcator. Vol. 44: pp. 252 - 290.

De Briey, P. (1955): "The Productivity of Afiican Labour".

Internotional Labour Review. Vol. LXXXII August - September.

Ezeani, 0. E. (2005) "Administrative Reforms in Post-colonial State:

An Appraisal of Nigeria's Experience Under Obasanjo Regime

(1999 - 2005)", I h i v e r s i ~ of Nigeria Jozrmal qf Political

Ecnnomy, 1( 1): Pp. 124 - 138.

Jalongo M. R. (1985). "Faculty Productivity in Higher Institutions".

Educational Forum. 49(2), Pp. 17 1 - 182.

Jensen, M. and Meckling W. (1976). "Theory of the Finn:

Managerial Behaviour Agency Costs and Ownership

Structure. Jo~rrnal of Financial Economics,Vol. 3 .

Iheanacho, E. N. 0. (2005). "Employees Job Performance Behaviour

in the Central Senatorial District of Kogi State, Nigeria"

Intenntionol Jntrrnal of Social and Policy Issues, 3(2); Pp. 68 -

73.

Tmafidon, D. 0. (2003). "The Motivational Effect of Pay on Nigerian

Workers: An Overview". The Fnterprisc~: Interncrtional Reseorch

Jozrrnnl.for Developmenl, 5(1), January - April. Pp. 49 - 53.

Obembe, J. J. (2005). "Financial and Non-financial Incentives As

Tools of Productivity Enhancement in Organization Setting".

1~7temntio~al Journal of Btisines.~ and Common Adarkel Stdies,

3(1), Dec.

Okoh, A. 0 . (2003). "Enhancing Productivity Through

Improved Work Attitude in the New Millennium". The

E17 terprise: International Research Joz{rna(for Developmeni,

5(1), Jan - April. Pp. 1 - 5 .

Okon, E. (2005). "Monetization Policy in the Nigerian Public

Service: A Critical Appraisal of Obasanjo's Public Service

Reform". In?enmlional Jo~rrnal qf Socinl and Policy Ixsztes, 3(2).

Dec. Pp. 178 - 195.

Peck, R. F. and Parsons, J. W. (1956). "Personality Factors in Work

Output: Four Studies of Factory Workers". Personnel

P.ycl7olo<y. Vol. 9 Pp 335 - 343.

Umbuzi. U. F. (2002). "Reward System and Job Performance Among

Secondary School Teachers in Northern Senatorial Zone of Cross

River State". West African Jotrrnal of Research and

Developrneni in Education. 9(1), pp. 180 - 187.

Steiner, M. E. ( 1953). "The Search for Occupational Personalities"

Personnel, Vol. 29, Pp. 335 - 343.

Magazines/Newspapers Materials.

Adingupu, C. (Feb. 8,2004). "Pros, Cons of Monetization". The

Guardian.

Daniel, A. (Aug, 19, 2003). "Monetization Policy: The Battle From

the Senate". The Gtmrdian.

Inokotong, J. (July 28, 2003). "Now the Party is Over".

Tell Mciqnzine.

Isah, A. (April 26,2006). "'New Cars for Senate Negate Monetization

Policy ". Dailv Trusf.

Oloja, M. et a1 (June 18,2003). "Monetization of Benefits Begins,

Government to Sell Quarters, Cars". The Gr4urdian.

Unpublished Materials

Agba, M. S. (2006)". "Human Resource Mana~ement and Service

Delivery in Nigeria" Being a Term paper on the Course: M. Sc.

561 - Advanced Human Resources Management, University of

Nigeria, Nsukka.

Agba, M. S. (2006)~. "The Effect of Monetization Policy on the

Productivity of Workers". Being a Term Paper on the Course: M.

Sc. 503 - Public Policy Analysis, University of Nigeria, Nsukka.

Samuel, 0.0. (July, 2005). "Staff Training and Development in

Nigerian Polyteclmics: A Case Study of the Federal Polytechnic,

Idah: Unpublished M. Sc. thesis submitted to the Department of

Public Administration and Local Goverrunent, University of

Nigeria, Nsukka.

Wehsites:

Other Publications:

Alttko. M. E. "Monetization of Fringe Benefits in the Nigerian Public

Service". :,!I ~ t \ ; o w e ~ ? ~ ~ ! . I = O I I ~

Holy Bible, Attthorized King James Version.

FPI (July - Angust. 2001) FEPODA News, Vol. 1

FPI (Jan - June, 2004). FEPODA News, Vol. l(6).

FPT (2005). Stz~dents ' Compr~hensive Handhook of The Federal

Po/ytechnic, Idah, Revised Edition.

APPENDIX

UNIVERSITY OF NIGERIA, NSUKKA

FACULTY OF SOCIAL SCIENCES

DEPARTMENT OF PUBLIC ADMINISTRATION

AND LOCAL GOVERNMENT.

RESEARCH QUESTIONNAIRE

A study is being carried out to find out the impact of the monetization of fringe benefits

on \ r~rkers productivity with specific focus on the Federal Pu~ytcchnics. Idah. Kogi Slate. Y ~ L I

are please, reqilested to f i l l as lioncstly as possible the following pieces of infor~iiativn required

for academic prposes only. Any infor~nation rjve~i will be used confidentially.

Thanks for your co-operation.

Instruction: Please, tick (4 ) in the appropriate bracket or give the required inforination in the

space provided.

DEMOGRAPHIC DATA I ) Sex: (a) Malc ( ) (b) Female ( )

2) Marital Statits (a) Married ( ) (b) Single ( )

3) Agc (a) 18-26 years ( ) (b) 27-35 years ( ) (c) 36-44 \ears ( ) (d) 45 and above

4) I4ighest Educational Qualification (a) FSLC( ) (b) WASC/GCE/SSCE/NECO ( ) (c) A/L/ND/NCE ( ) (d) HND/B.A/B.Sc( ) (e) MPAIMB~AIMAIMScIPh.D ( )

5 ) Present Position (Rank) (a) Senior Staff'( ) (b) Junior Staff ( ) (c) Contract Staff ( )

IhlPLEMENTATJON OF MONETIZATION POLICY IN THE FEDERAL POLYTECI-INIC lDAH

6) Have yo11 heard about the monetization of fringe benefits in the federal pi~blic xrvicc? (a) Yes ( ) (b) No ( 1

7) 11' yes, to what extent is the scheme implemented in the Federal Polytechnic Ida11 \\(here you \vorh. (a) Fully itiiplementcd ( ) (b) Partially implemented ) (c) 1 don't know ( )

MONETIZED BENEFITS AND BASIC NEEDS OF WORKERS

8) Increment in salaries through monetized benefits is sufficient to meet thc basic needs of worlirrs such as shelter. school fees, food, clothing, medical bilk, etc.

0) Workcrs arc prompt and regular to work since tlicir fringe benefits were monetized

10) There is more commitment to w o ~ k , duties, obedience to regulations since management started the implementation of the monetization policy.

(a) Strongllr Agree ( ) (b) Agree ( ) (c) Undecided ( )

(I)) ! ) I S R ~ ~ C C ( ) (e) Strongly Disagree ( )

I 1) Has the ~nonetization of fringe benefits in the Polytechnic cause a positive change i n work attitude, tfli~s enhancing the productivity of workers?

( a ) Y e s ( ) (b) No ( ) (c) I don't know ( )

12) If yes, do you think this change is as a resc~lt of thc proper implementation of the policy of monetization by the nlanagement of the polytechnic?

1-3) What other hctor(s) accounts for the positive change in work attitude (if any) among \vorkers in tllc polytechnics?

14) \\/hat is !,our assessment of the morale of workers in the polytechnic?

(a) Very High ( ) (b) High ( ) (c) Low ( ) (d) Very Low I, )

15) T'Iie moncti~ation of fringe benefits has boosted the ~nurale ofworkers in thc polytechnic.

16) If 1-rustration, fear and anxiety exist aniong staff of the polytechnic, are they traceable to the retrenchment and downsizing coniponents of the monetization policy?

17) The tncinelization policj has blvi~ght abmt job satisfktion alnong workers. thereby improving their productivity and growth of the polytechnic.

(a) Yes ( ) (b) No ( 1 (c) Not dccided ( )

18) How would YOLI rate staff performance and productivity since government started the inlplementation of'the rnonetization policy i n the polytechnic'?

(a) I-ligh ( ) (b) Avcrage ( ) (c) Low ( )

I 0) Job satisfaction among workers in the polytechnic is as a result of

(a) Good working relationship among workers. (b) Better cclndition of service

(c) 411 of lhe above Id) None of the abovc

20) How can Ilie problem of low productivity in tllc public S C ~ V ~ C C bc solved?

Documents

The Impact of Monetization of Fringe Benefits on the