THE IMPACT OF FRINGE BENEFITS ON THE PERFORMANCE OF WORKERS IN HOTEL
AND CATERING INDUSTRY
(A CASE STUDY OF ZODIAC HOTEL LTD)
This study examines the impact of fringe benefits on the performance of works in Hotel and catering industry, with a view to establishing its importance to the workers and the industry. This is intended to assert whether or not poor fringe benefit schemes could be an impediment to the development of the sub sector. The study is organized in five chapters each of which deals with some specific aspect of the study. In chapter one provides a framework for the study. It embodies what may be regarded as the proposal for the study and therefore provided the necessary background information, which helped to determine the structure of the study. In chapter two deals with the review of related literature. It provides the theoretical foundation upon which the intricacies of the subject matter were closely knitted. In chapter three deals with the research methodology, which involves a systematic description and analysis of the tools and methods utilized in the research study. It also shows the different statistical methods employed in the research analysis. In chapter four the research data collected in the field through the research tools were presented and analyzed. Also the hypothesis that guided data collection were verified. A brief summary of the entire work is presented in the last chapter together with conclusion and recommendation. The findings of the study reveal that fringe benefits are of great importance to workers in the industry and to the industry. And also that poor fringe benefit schemes could serve as an impediment to the development of the sub-sector because of its importance. The study made the recommendation that will help to remedy the situations, to engender a smooth and faster development of the Hotel and catering industry in Nigeria.
TABLE OF CONTENT
1.1 Background to the study
1.2 Statement of problem
1.3 Purpose of the study
1.4 Objective of the study
1.5 Scope of the study
1.6 Research hypothesis
1.7 Significance of the study
1.8 Limitation of the study
1.9 Definition of terms
2.0 The review of related literature
2.1 The nature and scope of fringe benefits
2.2 Factors for effective fringe benefit plan
2.3 Development and administering the benefit programme
2.4 Suggested ways of ensuring appreciation and good return on employee benefit plan
2.5 Why fringe benefits fail to motivate workers
2.6 Reasons for providing fringe benefit
2.7 Problem of installing fringe benefit plans
2.8 Some major types of fringe benefits
3.0 Research methodology
3.1 Research Design
3.2 Area of study
3.3 The date and research technique
3.4 Population of the study
3.5 Description of the samples
3.6 Sample size determination
3.7 Sampling procedure
3.8 Statistical technique
3.9 Questionnaire design
3.10 Questionnaire assumptions
3.11 Questionnaire distribution and organisational status of respondents
3.0 Presentation analysis and interpretation of data
4.1 Demographic characteristic of the respondents
4.2 Findings on employees attraction and retention
4.3 Findings on absenteeism and turnover
4.4 Findings on employee moral
4.5 Testing of hypothesis
5.0 Summary recommendation and conclusion
5.4 Further research needs
1.1 BACKGROUND TO THE STUDY
The problem of manpower in the Hotel and catering industry has continued to attract the ion, professional bodies and other interested parties because of the unique nature of the industry, (Magurn, 1977). This uniqueness lies in the fact that only a few other industries have such close relations between staff and customers. Also only a few other industries in the economy offer so much scope to giving satisfactions to others and for getting satisfaction from work. Yet the problem of inability to attract retains and actuates personnel effectively in the face (shuaibu, 1979, ifedi 1986: 3).
Because of the prevailing harsh economic condition of our time, there is need for a good management of the organisational resources so as to ensure greater productivity from each unit of resource input. Of all the management resources available for the purpose of ensuring survival and growth of the organisation, human resources stand out as one of the most basic and critical (Drucker 1955:251). In recognition of this, management usually devote a lot of time and commit other resources towards attracting and retaining high personnel for the organisation and also getting the best out of them. But the Hotel catering industry appears to be lagging behind in this regard especially in development countries like Nigeria (Onyia 1986:3).
Our Hotel and catering industry has frequently been criticized in study reports for treating management. A number of workshop or lecture have been organised in Nigeria to find a solution to the problem, which may be acting as a hindrance to the development of the Hotel and catering sub sector.
In view of workshop or lecture, it was gathered that among other issues like poor salary schemes, degenerates working conditions, poor fringe benefit scheme prevalent in the industry may also be instrumental to the inability of the industry to actuate personnel effectively and efficiently (Ifedi, 1986:3).
Fringe benefit have been identified of the effective ways management may adopt for attracting retaining and actuating personnel especially for motivating them to higher performance (Flippo, 1980:291 Ejiofor, 1984:23). Therefore, for an organisation to meet its aim of survival profit and growth, there is greater need to devote more attention to the formulation of sound and good fringe benefit programme for the organisation and as well maintain a good working condition attracting salary and a congenial work atmosphere. The reason for this is that majority of the workers are mainly concerned with the “bread and butter” issue. Morse in today’s Nigeria with the prevailing economic depression and general hardship one would see that there is not much hope for the salaried workers considering the rising inflation which was put at 8.5% (Abacha’s 1998 budget of transition) with its rise in the cast of living with the rise of unemployment thereby increasing the number of month to be fed and catered for the families of these poor workers. Most wage and salary earners now see their pay package as a sheer mockery of the prevailing market condition.
Again, the meaning attached to the fringe benefit programmes existing in many organisation are multifarious and this affects its success in achieving it goals to both the employees and the organisations. Man is a complex being managing man to increase its productivity involves a number of variables one of which is to identify those factors, which can incite him to contribute maximally to organisational growth and development. Once these factors are identified and established, they can be manipulated in a way that will enable them actuate labour effectively and efficiently for improved performance.
The need for the development of Hotel and catering industry in Nigeria has been on the increase in the recent times. This arose out of the greater need to diversity the revenue base of the country considering the persisting slide in the price of crude oil at the international oil market (The Guardian, Nov.25 1998). The development of Hotel and catering industry has become pertinent because it provides the fertile ground for the growth and development of tourism industry.
Tourism as we know is the fastest growing industry in the world today, considering the tourism potential in the country, it has been accorded a “preferred sector” status in the national economy (Ugwu 1998:42) but tourism cannot grow without a well established Hotel and catering industry (Adeoye 1977:11, Duru 1998:46).
Also as Nigeria continue to nurse the ambition of hosting the world cup tournament by the year 2006, the development of Hotel and catering industry in the country will be a boost to this ambition. No country would be allowed to host the world youth soccer championship if they don’t have Hotels and catering industries.
On the other hand the Nigeria workers been persistently called upon to improve their performance so as to contribute more to national development (Ekudayo 1988:11. Agbetuyi 1998:25). But one would not expect much from a hungry worker. Therefore studies such as the one undertaken hereby will help to direct the attention of those at them of affairs to those salient factors that would need to be addressed first before demand for better performance can be made for the workers.
1.2 STATEMENT OF PROBLEM
Hotel and catering industry if well developed and managed has known to complement the tourism industry there by enhancing revenue generation for the national economy.
Meanwhile it has been discovered that the hotel and catering industry in Nigeria has not been bracing up to expectation for some reasons which boarder on the inability to attract, retain and actuate personnel effectively and efficiently. (Adeoye 1977:11, Ifedi 1986:3)
Lately, it has been noted that among hotelies who attract, retain and activate personnel play a role here, the bulk of the problems may centre on the dissatisfaction among workers on the existing salary and fringe benefits scheme as well as poor working condition which leads to such vices as lateness to work, absenteeism, and in extreme cases outright resignation. The leads to loss of customer confidence and therefore revenue because the employee might even be around to received the customers as at when due. Also where the employee is not on seat, the reception accorded a customer is usually very cold and sometimes hostile. There has also been some reported theft cases. All these continue to impede on the desire development of the sub-sector.
It is therefore the thrust of this research study to investigate an aspect of the problem poor fringe benefit scheme, with the aim of establishing its effects on the performance of workers in the industry. And also making useful, suggestion that will lead to improved fringe benefits administration in the hotel and catering industry as a way of engendering better performance among the workers and consequently enhancing the viability of the sub-sector.
1.3 PURPOSE OF THE STUDY
The purpose of the study is to assess the impact of fringe benefit on the performance of workers in the hotel and catering industry and to established whether poor fringe benefit scheme could be an impediment to better performance by the worker hereby hindering the growth and development of sub-sector.
1.4 OBJECTIVE OF THE STUDY
This study examine the impact of fringe benefit on the performance of workers in the hotels and catering firm with a view to:
i. Identified the fringe benefit that are operational in the industry in Nigeria.
ii. Establishing whether the fringe benefit are helpful attracting and retaining employee in industry.
iii. Establishing whether fringe benefit affects turnover, absenteeism, level of commitment and morale of the workers negatively, thereby acting as an impediment to better performance by the worker and consequently inhibiting the growth and development of the sub-sector.
1.5 SCOPE OF THE STUDY
The study was intended to cover some of the major areas of development and administration of fringe benefit scheme with some of its attendant problem. It has singled out the problem identified as inhibiting the development hotel and catering industry in Nigeria for study so as to ensure a through assessment of the situation. The entire work of research will be concentrated on employees of all cadres in selected hotels and catering firm in Enugu Urban.
1.6 RESEARCH HYPOTHESIS
To guide the investigation of the issue raised in the problem definition, it is hypothesized that
and catering industry
Hi: Fringe benefits are helpful in attracting employee to the hotel and catering industry
2. Ho: Fringe benefits are not helpful in retaining employee in the
hotel and catering industry.
Hi: Fringe benefits are helpful in retaining employee in the hotel
and catering industry.
3. Ho: There is no direct relationship between fringe benefit ‘package’
and employees level of commitment
Hi: There is no direct relationship between fringe benefit package and employees level of commitment.
1.7 SIGNIFICANCE OF THE STUDY
This study will assess the impact of fringe benefit on the performance of workers in the industry as a way of establishing the level of importance of fringe benefit to the workers and to the industry. The study will also determine whether or not poor fringe benefit scheme contribute to lateness, absenteeism, turnover, low moral and low level of commitment among the workers. It will summarily conclude whether or not fringe benefits are importance in attracting, retaining and actuating personnel in the hotel and catering industry. All these will in a way point to what may need to be done to facilitate faster growth and development of the sub-sector.
1.9 DEFINITION OF TERMS
Fringe Benefits: These are additional benefits (monetary or non-monetary) available to workers as a member of an organization apart from the normal salary or wages and which are to the total cost of labour. It may be legally required like maternity leave to workers compensation, vacation etc or voluntary like recreational facilities, cafeteria subsidies, Christmas gift, profit sharing bonus etc.
Tourism: This refers to that sector of a nations economy, which caters for its need for recreation, relaxation, leisure, and animator of life. It is also viewed as a temporary or short-term movement of peoples to destinations outside the place where they live and work, as well as activities during their stay at these destinations. In its wider sense, it encompasses movement for all purpose including leisure, commerce cultural exchange and relaxation.
The tourism phenomenon is a result of man’s inherent desire to change his environment for purposes of psychological satisfaction, as well as business exploration. Tourism is the fastest growing industry in the world today. It preaches to change the world from the manufacturing dominated economy to service-oriented sector.
Effectiveness: This refers to be achievement of predetermined goals.
Efficiency: This relates output and input, in assess how will a given output was achieved with the minimum input.
Productivity: This is the contribution of unit production output.
Morale: This is the sum total of the attitude of all the workers of one group. If we can discover the attitude of individual, we can deduce from them the overall morale cannot be measured directly a man’s attitude may be revealed indirectly by his verbal declarations.
Hotel: This firm that usually provide meals to the public on a commercial basis.
Catering firm: This is a firm that provides light meals and fast foods to the public on a commercial basis.
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