AN EXAMINATION OF THE EFFECT OF REMUNERATION ON PRODUCTIVITY OF WORKERS IN UNIVERSITY OF DOUAL

CHAPTER ONE

INTRODUCTION

Background of the study

The performance of employees is a critical determinant of an organization's overall success (Surbhi, 2015). Employee performance is the evaluation of an employee's productivity in a business setting, which is measured by the quantity of acceptable quality units produced within a certain timeframe. Performance is the primary expectation of the organization when hiring someone, and it is expected that they would excel in their role in return for a specific amount of payment ( Ojeleye & Okoro, 2016). Remuneration systems in several global organizations include a variety of payment mechanisms and associated perks. These elements serve as motivators for contemporary corporations and are integral to the prevailing human resource management philosophy in many organizations. In the United Kingdom, workers who work for contemporary firms and other organizations are provided with many forms of financial and non-financial incentives. These incentives might include discounts on corporate goods and participation in company pension systems that are partially funded by the corporation (Qureshi & Sajjad, 2015). Employee remuneration in Africa has been identified as a significant obstacle impacting the effectiveness of public sector enterprises. Many organizations have been found to provide inadequate remuneration to their employees. This has had a negative impact on employee job satisfaction, employee relations, and productivity. As a result, the performance of these organizations, particularly in the delivery of public services, has declined (Heathfield, 2016). Inadequate remuneration systems result in insufficient basic pay and wages, which in turn leads to decreased employee productivity, higher rates of staff turnover, and diminished employee morale. These factors have a negative impact on the overall performance of numerous organizations (Heathfield, 2016).  In Cameroon, there has been a decrease in employees' productivity and a high rate of employees leaving their jobs, which has been attributed to their dissatisfaction with the remuneration systems in place. Additionally, there has been an increase in industrial strikes in the public sector, which has had a negative impact on the provision of services (Kell, Vance and Webb, 2015). Furthermore, the absence of efficient employee remuneration systems has been attributed to the rising number of strikes in the public sectors of health, education, and mining. This has led to higher rates of employee turnover as a result of job dissatisfaction and the desire for higher-paying positions in other countries (Kell, Vance and Webb, 2015). In recent years, there has been a significant increase in the cost of living. As a result, businesses have faced immense pressure to adjust wages, salaries, incentive packages, and fringe benefits to keep up with inflation. Additionally, there is a need to modify existing payment systems in order to align them with employee performance. The organization must prioritize the remuneratio system as a means to recruit, engage, and retain personnel, hence improving productivity via enhanced performance (Kell, Vance and Webb, 2015). An incentivizing remuneration scheme and a broader and more varied array of employee perks provide organizations a competitive edge in the labour market. In agreement with the above statement, the film "Heathfield" (2016) suggests that an effective employee benefits system, along with a fair compensation system, enhances the reputation and competitiveness of the organization in the job market. When an organization has attractive remuneration systems, it tends to reduce recruitment costs because the rate of employee retention is very low. This also improves employer-employee relations, increases employee commitment to their work, and maximises productivity. As a result, the organization is able to achieve its objectives more effectively. Therefore, the researcher sought to examine the effect of remuneration on productivity of workers in (A case study of lecturers in the University of Douala). 

1.2 Statement of the problem

The productivity of workers plays a vital role in determining the success and long-term viability of organizations in today's highly competitive corporate environment. Remuneration is a crucial component that deserves careful attention when considering the many aspects that affect productivity. Remuneration, which includes financial remuneration, perks, and rewards, plays a crucial role in not only attracting and retaining skilled individuals but also in potentially boosting employee motivation and productivity. Comprehending the complex connection between compensation and productivity is crucial for organizations aiming to enhance their methods for managing their workforce. Several studies have like that of (Akter & Moazzam, 2016) investigated the relationship between compensation and productivity, resulting in diverse and even contradictory results. Some studies indicate that higher levels of payment can result in greater motivation and improved productivity (Ajalie, 2017; Beyza, 2018). However, others argue that this relationship is more intricate and influenced by factors like perceived fairness, job satisfaction, and organizational culture (Surbhi, 2015; Heathfield, 2016; Ajalie, 2017). Furthermore, the current employment environment is seeing a transition towards a variety of compensation systems, such as pay based on performance, profit-sharing, and incentives that are not monetary in nature. These changing pay schemes prompt inquiries about their effectiveness in stimulating productivity as compared to old fixed wage structures. Furthermore, it is worth investigating the impact of non-monetary incentives, such as flexible work arrangements and recognition programmes, on enhancing productivity in addition to monetary compensation. Moreover, the influence of remuneration on productivity goes beyond examining individual performance and includes the broader dynamics within an organization. The existence of unequal pay across various positions within a company may create a sense of unfairness and hinder overall productivity (Karia & Omari, 2015). Moreover, the organization's capacity to recruit and retain highly skilled individuals, and therefore its total productivity, may be affected by pay practices that are in line with industry standards. Against the myriads of these problems, the study examine the effect of remuneration on productivity of workers in (A case study of lecturers in the University of Douala).

1.3 Objective of the study

The broad objective of the study is to examine the effect of remuneration on productivity of workers in (A case study of lecturers in the University of Douala). The specific objectives is as follows

Examine the forms of remuneration adopted in the University of Douala.

Assess the extent at which remuneration affects workers productivity in the University of Douala.

Analyze the effect of poor remuneration on workers  productivity in the University of Douala.

Investigate the relationship between remuneration and the productivity levels of workers in the University of Douala

1.4 Research Questions

The following questions have been prepared to guide the study

What are the forms of remuneration adopted in the University of Douala?

What is the extent at which remuneration affects workers productivity in the University of Douala?

What is the effect of poor remuneration on workers  productivity in the University of Douala?

Is there a  relationship between remuneration and the productivity levels of workers in the University of Douala

1.5 Significance of the study

The findings of the study will contribute to human resource management practise by providing an understanding on the relevance of performance related pay in boosting motivation and productivity  of workers. Also, this study will be significant to business organization as it will establish a good remuneration policy that will positively contribute to improvement in employee's productivity. Furthermore, findings of the study will be of benefit to the Ministry of Labour in understanding the work conditions, of employees' in organizations.

Lastly, findings of the study will be significant to the academic community as it will contribut to library resources and serve as a guide for future researchers who might want to further fill the gap provided in the study.

1.6 Scope of the study

The study focuses on the effect of remuneration on productivity of workers in (A case study of lecturers in the University of Douala). empirically, the study will examine the forms of remuneration adopted in the University of Douala, assess the extent at which remuneration affects workers productivity in the University of Douala, analyze the effect of poor remuneration on workers  productivity in the University of Douala and investigate the relationship between remuneration and the productivity levels of workers in the University of Douala.

Geographically, the study is delimited to  lecturers in the University of Douala.

1.7 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of terms

Remuneration: Remuneration refers to the total compensation package provided to employees by an organization in exchange for their labor and services. It encompasses monetary elements such as salaries, wages, bonuses, commissions, and benefits such as healthcare coverage, retirement plans, and paid time off.

Productivity: Productivity is a measure of the efficiency with which inputs (such as labor, capital, and resources) are converted into outputs (goods or services) within a specified period. It quantifies the amount of output produced per unit of input and is often expressed as output per hour worked or output per unit of resource input.

Performance-Based Pay: Performance-based pay is a compensation system where employees receive financial rewards, such as bonuses or merit-based pay increases, based on their individual or team performance outcomes. This system ties compensation directly to employees' achievement of predetermined performance goals or objectives.

Non-Monetary Incentives: Non-monetary incentives are rewards or benefits offered to employees by organizations that do not involve direct financial compensation. Examples include flexible work arrangements, recognition programs, professional development opportunities, and work-life balance initiatives.