The aim of this research work is to work into the effects or remuneration on the performance of employee in the private sector. To this end. If tried to trace the history of remuneration of employee is the public sector in Nigeria. The old system used to have seven steps within a grade. During the year 1988, the administration of Ibrahim Babangida introduced the elongated salary structure which increased the steps in a grate of fifteen (15).

The reactions of employees to the new structure and the problems that emanated form the structure and how it affected those in the private sector of the economy are all treated. 

The researcher equally considered the type of remuneration and fringe benefits available in incomtel Nigeria Limited and how they are been motivating works to increase productivity.

The instrument used in the study is ten (10) items. This questionnaire distributed to the employees of incomtel. The questionnaire was divided into two (2) parts; one part was distribution while the other part reflected the opinions of the employees on the management level.

The research summed up the information receives from those groups of employees. The outcome formed the major source of information needed to preposition.


Chapter one

1.0         Introduction

1.1       General back ground of the subject matter

1.2         Problem that the study will be concerned with

1.3         The important of studying the area

1.4         Limitation of study

1.5         Research Questions

1.6         Reference

Chapter two

2.0         Review of related literature

2.1       Remuneration as a motivator

2.2         Carrot and stick Approach

2.3         Remuneration of employees of private sector

2.4         References

Chapter three

3.0         Research Methodology

3.1         Presentation of Data Analysis

3.2         Discussions

3.3         Recommendation

3.4         Conclusion

3.5         References

3.6         Bibliography



1.1       General Background of the Subject Matter

The public and private organization in Nigeria have different people, sort various ways of increasing the employees performance and also maintain  employee loyalty  “According to management, introduction and Nigeria perspective by Akpala 18 “Employees wanted raising wages and managements wanted profit and depend on productivity which is their common quest.

From the above, I can deduce that productivity is the glue which holds employee and employer together. How does an organisation in the private sector go above to achieve its objectives and maintain its employees on long time? A careful and efficient management of remuneration packages to an extent determine the progress an organization record at a given time. My experience on the private organization indicates that remuneration which is not exploitative enhance employee performance.


This does not mean that factors such as making an employee to have a sense of belonging in an organisation does not enhance performance, but an employee who gets equivalent of what he put in, in an organisation stands to perform higher .

This is because his needs of feeding, clothing, housing which ranks among the physiological needs according to Abraham Maslow’s need in hierarchy.

1.2       Problem That the Study Will Be Concerned With

There are many problems facing the private organization. These include, high labour turnover, government policy limited administrative skill, thus perception on low productivity. Yet the researcher still want to know, is remuneration of employee plays a significance role his or her performance.

What role does employers on private sector play to encourage performance in area of employee remuneration?

1.3       Importance of Studying the Area.

The importances of this research study are:-

1.         To make adequate recommendations aimed at bringing harmony between organizational importance and employees performance through effective remuneration package.

2.         To look into various types of remuneration, their merits and demerits.

3.            The government policy on remuneration of public employee and see how it has affected those in private sectors.

4.            They find it out if remuneration plays any role on the performance of employee in the private sector.

1.5             Research Questions

1.                    To what extent has the government policy on remuneration of public employed affected the employee of labour in the private sector.

2.                    The employers remuneration contributed to the mobility of labour in the society.

3.                    To what extent has remuneration of employees ameliorated their problems and at the same time helps in achieving organizational goals?

4.                    What are the effects of remuneration on employees productivity?

Not only that the researcher used table in which the responses and the number of respondent for each group shown in percentage method.

            Furthermore, it was concluded that for remuneration scheme to achieve a desired objective its implementation must not frustrate the employee. Also for employees to be loyal, the agreement reached with the management has to be adhering to the management. Where this is change the reason for such change should also be communicated to the employees promptly.


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