MONETIZATION POLICY: BENEFITS EFFECTS ADVANTAGES AND DISADVANTAGES



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 for mutation and implementation of the policies reached by the government. Due to the over increasing expense of the scope of governmental involvement in the economy, the cost of managing the public service has become as enormous, and the benefits enjoyed by the civil servants has become greatly abused. There is a glaring mismatch between the almost 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 fring benefits in the public service.
            The immediate past administration of Chief Olusegun Obasanjo, on November II, 2002, set up a committee on the monetization of the frings benefits in the public service of federation. The committee was under the chairmanship of Chief UJ Ekaette, the then secretary to the government  reformation agenda of the government aimed at minimizing waste in the management of public funds of 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 frings benefits is intended to boost workers moral to work.
            The proceeds or savings realized from the reform policy (monetization) will be use 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 removal fittings whenever they are moved or transferred, singly because the houses does not belong to them again.
            Several regulatory measures were imposed in the past to eradicate this abuse, yet it yielded no positive result. In view of the above problems, the questions that attract curiosity and 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.                  Why is the implementation of the monetization policy difficult?
5.                  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 amalgamating 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 valuable significance not only the researcher, but also to the case study ministry, and in other government and non-government establishment.
            The study and its finding 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 will intend to write on similar topic will use it as a point of reference for further development of the society at large.
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 of Ebonyi State. The ministry is made up of six departments with a staff strength of about two hundred and forty (240).
            Because the 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 indulging or divulging of official information. The staff were apprehensive of the exercise because of the 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 much search will 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 hypothesis 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. 

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, policy, programmes and projects. It could be used to determine the most efficient decision alternative. The technique could be applied either before undertaken 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 teen 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 benefit, or cost.
            Prior to the introduction of the monetization policy, the federal government operated as policy in which fring 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 of the policy by relating the cost to the benefits cost benefit analysis as a theory affords the means or tool for measuring in quantitative and monetary terms, the previous policy of provision of fringe benefit with view to asserting the cost and benefits of the monetization policy quantifiable in monetary terms.
            This policy quantified in money terms, those fringe benefit provided for workers as part of their conditions of service. This was part of reform to reduce the cost of government, eliminate a major source of waster and leakage while at once helping officers to prepare for life after retirement through encouragement of saving and investment couture.
            The policy of monetization was introduced in June 2003, while implementation started with political office holders, including ministers and members of the National Assembly. The policy was subsequently extended, first to core civil service and is now being extended to all arms of the public service. So far, owned buildings and official quarters have either been sold to the occupiers or auctioned to the general public, with a few reserved, thereby saving enormous maintenance costs. Also, thousands of drivers, caterers stewards, security guards etc have been disengaged from government employment, with resultant saving in payroll cost.
            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.

1.8       OPERATIONALIZATION 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 isresponsible 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.
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