IMPACT OF MONETIZATION POLICY ON WORKERS
PRODUCTIVITY IN NIGERIA, A STUDY OF EBONYI STATE MINISTRY OF SOLID MINERALS
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
The operation of the modern state requires an institutional
structure that is effective and efficient. The civil service has been the
corner stone and engine for public sector administration. In the words of Okpala, (2004) civil
service is a body of officials responsible for advising the government of the day
on matters of policy formulation and implementation of the policies reached by
the government.
Due to the ever increasing expense of the scope of governmental
involvement in the economy, the cost of managing the public service has become
enormous, and the benefits enjoyed by the civil servants has become greatly
abused. There is a glaring mismatch between the amount spent and actual benefit
that accrues to the beneficiaries.
As a policy, the government decided
to carry out some economic reforms that are aimed at minimizing, if not
eliminating virtually all known avoidable wastage. One of such reforms
initiated is the monetization of fringe benefits in the public service.
The immediate past administration of
Chief Olusegun Obasanjo, on November 11, 2002, set up a committee on the monetization
of the fringe benefits in the public service of federation. The committee was
under the chairmanship of Chief U.J.Ekaette, the then secretary to the government.
This policy is one of the reformative agenda of the government aimed at
minimizing waste in the management of public funds by public office holders.
The government however, stated the
objectives for the introduction of the concept of monetization in the federal
public service which includes, minimizing waste, misuse and abuse of public
facilities. The monetization of fringe benefits is intended to boost workers
moral to work.
The proceeds or savings realized
from the reform policy (monetization) will be used for capital project and
other infrastructural development.
1.2 STATEMENT
OF THE PROBLEM
Transparency and accountability in public service have
been eroded. Public officers treat public properties with some degree of
recklessness. For instance, the provision of public utilities like, telephones,
water, electricity, transport facilities by government to public servants have
failed to achieve its purposes. There is high waste and abuse of usage of such
facilities thereby resulting to exorbitant bills. The medical services rendered
by the government, as well as the residential accommodations given to public
servants are recklessly handled. There are reckless abuse of such facilities
like telephone, water, and electricity.
There are situations whereby public
officers remove fittings whenever they are moved or transferred, simply because
the houses does not belong to them again.
Several regulatory measures were put
in place in the past to eradicate this abuse, yet it yielded no positive
result. In view of the above problems, the questions that the workers tend to
raise and which require investigation are as follows.
1.
What effect does
monetization policy have on the employees productively?
2.
What benefit will
government derive from the policy?
3.
What are the
problems associated with implementation of the policy of monetization?
4.
How does the
policy affect productivity in the Ebonyi State Ministry of solid minerals
development?
1.3 OBJECTIVES
OF THE STUDY
According to federal government, one of the ways
adopted in solving the problems of waste and misuse of public amenities in
public officers possession, is the introduction of policy of monetization into
the federal public service.
The objectives of this study
included the following:-
1.
To ascertain the
effects of monetization policy on the employee’s productivity,
2.
To identify the
benefits of the policy as derivable by the government,
3.
To analyze the
advantages and disadvantages that accrues to the government from this policy,
4.
To identify the
problems associated with implementation of the monetization policy,
5.
To examine the
policy as it affects productivity in the Ebonyi State Ministry of solid mineral
development;
6.
To make
recommendations that may enhance the productivity in the ministry and suggest
ways of ameliorating the problems encountered in the ministry.
1.4 SIGNIFICANCE
OF THE STUDY
The main thrust of the topic is to examine the likely
effects of monetization policy on workers productivity, using Ebonyi State
Ministry of solid minerals development as a case study. In this regard, the
research will be of a high significance not only to the researcher, but also to
the ministry being studied, and in other government and non-government
establishments.
The study and its findings will
contribute significantly to existing literature in the subject area.
The study will equally assist the
ministry to improve or maintain their level of productivity considering the
policy in vogue.
Finally, the significance of this
work to other researchers such as students, lecturers and others cannot be over-emphasized,
as researchers who intend to write on similar topic will use it as a point of
reference.
1.5 SCOPE
AND LIMITATION OF THE STUDY
The ministry of solid minerals development, metamorphosed from the
former ministry of commerce and industry in 2003. It is located at the
secretariat complex opposite unity square Abakaliki, Abakaliki local government
Area of Ebonyi State. The ministry is made up of six departments with staff
strength of about two hundred and forty (240).
Because no success is achieved
without some hitches, the researcher was not able to cover other ministries
apart from solid minerals development.
Data
collected at Ebonyi State office was without some initial hitches. There was
fear of divulging of official information. The staff were apprehensive of the
exercise because of fear of being sacked if it is discovered that they leaked
official information.
There was also difficulty in getting
some vital documents as a result of poor record keeping and carelessness on the
part of staff of the ministry. However, the researcher was able to get useful
data for the analysis of the study, after so m much search with the staff and
information gotten one on one from some key officials of the ministry.
1.6 RESEARCHER
HYPOTHESIS
A Hypothesis is a conjectural statement
of relationship between two or more variable. It is a tentative statement which
is open to confirmation or rejection. In the light of this, the hypotheses of
the work are as follows:-
Hi Monetization
policy plays a vital role on workers’ productivity.
Ho Monetization
policy does not play any role on workers’
productivity.
Hi Monetization
policy has affected the productivity of workers
in the ministry of solid minerals development.
Ho Monetization
policy has not affected the productivity of workers in the ministry of solid
minerals development.
1.7 THEORETICAL
FRAME WORK
The usage of wrong or inappropriate theory in a
particular research topic will definitely produce wrong conclusion.
Hence, the researcher adopted cost
benefit analysis (CBA) propounded by J. H Kirt.
This is a technique for analyzing polices
programmes and projects. It could be used to determine the most
efficient decision alternative. The technique could be applied either before
undertaking the project or after the project. The purpose is to determine the
usefulness of the project.
It involves the systematic
examination of all the cost of a programme in
terms of tangibility and real or opportunity cost. Possible benefits of a project
are enumerated, the impact of a proposed or actual policy or project are
determined or grouped as benefits or cost.
Prior to the introduction of the
monetization policy, the federal government operated as policy in which fringe
benefits were provided for public servants as it related to residential
accommodation, provision of furniture, utility and domestic servants allowance,
motor vehicle fueling, transport and systematically examining all the cost of
the programme
that government discovered enormous wastages and inefficiency as a result of
abuse of those fringe benefits.
This now necessitated the introduction of monetization
policy as a policy with the highest net benefit or social value by relating the
cost to the benefits.
Cost benefit analysis as theory affords the means or tool
for measuring in quantitative and monetary terms, the previous policy of
provision of fringe benefit with view to ascertaining the cost and benefits and
comparing it with the analyzed and evaluated cost benefit of the monetization
policy quantifiable in monetary terms.
No doubt however, that the cost
benefit analysis as a theory provided the policy makers and the government with
a broad view of cost and benefit and also direct attention to the utility of
the project.
The relevant of this theory is that
organization is made up of the managers and the workers; and these people are sometime
needed to be motivated. The cost benefit analysis relates that the cause of
this inefficiency and low productivity in civil service are psychological,
social and economic factors, recommended that managers should observe the
welfare and feeling of workers if organization will progress.
1.8 OPERATION
OF KEY CONCEPTS
a. Impact - A strong impression or effect on workers in organizational
activities.
b. Monetization Policy - This is a
governmental policy whereby value is given to public officers in the state and
federal civil service in place of certain amenities enjoyed by them.
c. Workers Productivity -This means the
rate at which an employee yield output in the organization
d. Fringe Benefit – It is an additional
service or advantage given with job
besides the wages.
e. Ministry - It is a government
department that is responsible for one of the areas of government work.
f. Solid Mineral- A solid substance that
is formed naturally in the earth such
as coat, stone, gold, salt etc.
g. Development-
The gradual growth of something, so that it will become bigger or more advanced.
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