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This project under study is basically the effect of salary on employee’s performance with the case study of Delta State Polytechnic, Ozoro. It is a significant millstone that sought to the way of enhancing performance in organization. Chapter one dealt with the introduction and related matters, followed by chapter two which reviewed the recent works in the area of compensation as it affects salary. Chapter three centered on the research design, plan and the issues of validity and reliability of research instruments. Chapter four is on the presentation and analysis of data while chapter five have the findings, recommendations and conclusion. No doubt, salary has great impact on employee ‘s performance. the study reveals that employees can put more effort to their work when they receive satisfying salary.



  • Background to the Study

Delta State Polytechnic Ozoro was established on 12 November 2002. and it’s located in Ozoro. Isoko North Local Government Area, of the state. The Ozoro Polytechnic has school that offers National Diplomas in Business (Accountancy Banking and Finance and Business administration) Computer and IT (Computer Engineering and mechanical Engineering). It also has a school of preliminary studies that introduces all students to basic business studies and Sciences technology.

Workers in all sphere of organization both the profit and nonprofit making organization. need at best adequate salary in order to take care of their personal life activities if employees do not earn enough to many things such as low performance and supervision of employees will be high. It will create hostile state of mind in the employees which may lead to disloyal and uncooperative attitude.

If they also believe or observed that their contribution are unvalued in their organization they may exhibit poor working habits low morale and little commitment to the organization which may result to low productivity. A major responsibility placed upon the personnel department is to ensure that salary paid in the organization compare with those paid to employees in other organization that are of comparable size.

The personnel department could employ some discretion when authorized to make salary studies as the basis for selling pay scale or interpreting and executing relevant provision of the law in compensation. The personnel office is equally involved in convening and guiding negotiation with employees union on salary matters.

A good salary system can help attract qualified applicants retain present employees and stimulate high performance at a cost reasonable to one industry and geographic area. Salary should be so arrange that efficient employees are adequately remunerated.


1.2     Statement of Problem

Most of the organizations today face the problem of how to become the best among their competitors. This involves avoiding poor salary structure improper salary system, poor salary decision and also lack of adequate salary.

1.3     Research Questions

In a bid to ascertain the validity of the research work, the following research questions were put forward:

  1. Does the design of salary system affect performance?
  2. Does salary have an extent to which it affects performance?
  3. Does salary improve employee’s performance on his or her job?
  4. Does salary serves as a strong tool performance enhancer in an organization?
  5. Does an employees work in an organization without a salary?

1.4     Objective of the Study

The purpose of this research is to:

  1. Examine the various ways through which salary help to increase employee’s performance.
  2. To reveal the level of salary that is best for each worker.
  3. To know the reason why organization pay salary.
  4. To know the type of salary system.
  5. To determine salary payment methods.

1.5     Statement of Hypotheses

  1. There is no significant relationship between salary and employees performance.
  2. Employees performance in a work place does not depend on their salary increase.

1.6     Scope of the Study

This study is directed towards an examination of whether salary has any impact on employee’s performance. Information is to e derived from Delta State polytechnic. Otefe-Oghara as the case study.

1.7     Significance of the Study

The research work will be of relevance to small and large organization in the areas of:

  1. Salary and wages
  2. Organization incentive system execution and
  3. Managing directors of organizations
  4. Employee’s of organization.
  5. Student carrying out research on salary and wages

1.8     Limitations of the Study

During the course of this research work several factors brought about constraint or hindrances of which the following were feasible one

Attitude of the Respondents: The attitude of the respondent creates some problem in that some vital information was withheld that could have leaded to a more proper research work. The reason they said was due to the organization or institution policy.

Time Factors: Time as a factor was not enough to execute this project work due to other academicals work which runs alongside the project. Getting the appropriate information from respondent was one limitation of the study in that these information would have broaden the understanding and research on the topic under focus.

 1.9    Operational Definition of Terms

Salary: It’s the money that employees receive for doing their job, especially professional employee’s or people working in an office usually paid every month.

Performance: It is the act process of performing a task, an action.

Employees: A person who is paid to work for some body.

Organization: A group of people who form a business, club, etc. together in order to achieve a particular aim.

Effectiveness: Able to bring about the result intended

Productivity: The overall efficient result of an individual involved in the realization of organization goals.

Impact: The powerful effect that something has on somebody or something.


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