CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organization is the most significant and integral point of administration. Without proper organization, administration is not possible. Thus organization is important to every administrative action. For no administrative action can be implemented without an organization. Therefore, no organization can exist without people or human resources to pilot its affairs. People or human resources have been identified as the core element in an organization.
The concept of organization has been variously defined, for instance, Waldo (1978) defined it as “the structure of authoritative and habitual personal interrelations in an administrative system”. Organisation has also been defined as “social units deliberately constructed and reconstructed to seek specific goals” (Quoted in Makae and Pitt. 1980).
Gulick (1937) defines organization as a formal structure of authority through which work sub-divided are arranged, defined and coordinated for the designated objective or goal. As it were, individuals who created an organization in order to achieve some specific aims and objectives in turn, the organization attract individuals who wish to become members for the purpose of their own need for money, interest status and symbols.
Organization is said to be a holistic of both human, capital and material resources with the aim of putting their resources together to meet goals and objectives. Ideally an organization should seek to accomplish all its set objectives. However, salary is one of the first and basic fundamental human needs. This is because the immediate problems confronting a school graduate or a new applicant is how to secure a good job so that he can earn a living. Therefore, salary administration, means a method and process that any organization uses for compensating their workers for service rendered. Salary is also a process of determining monetary reward for service rendered by the employees to an organization. In a nutshell, salaries and wages administration is the establishment and implementation of sound policies and method of employee’s compensation.
On productivity, the need for productivity improvement exists virtually in all countries of the world whether developed or developing countries like Nigeria etc. The primary reason for this, is precisely because of increased productivity and performance and economic growth. Consequently, industrial development effort will come to naught unless a nation’s productivity also improves in the developing countries. It is generally accepted that salaries and wages have to bear some relationship to productivity. The theory is that wages cannot diverge significantly from productivity without causing either inflation or unemployment. The implication is that a dynamic economy with full employment and no inflation might be an achievement in the performance of the organization.