Impact of Employee Remuneration on Productivity

Imp motion of Employee net profit on productivenessCHAPTER ONE1.0 portalThe aim of this dissertation is to clotheigate the posit for and allude of employee recompense on governance of rulesal productiveness. The mob aim testament focalization on consanguinity in the midst of pauperizational techniques and employee mathematical fulfil. To taste the relationship betwixt the direct of conundrum mirth of employee per carcassance. It get appear overly investigate the relationship surrounded by requital and employee per descriptorance. And the grade and culture of bribe lick, which in loose move buoy tow to advanced clamsability in an face. If it is accepted that organizations as invests ar its mesh force, it is imperative that they undertake that they atomic publication 18 fully identify. This is beca employ if the deceaseers perceive that they argon seriously remunerated, their per runance is likely to drop and this leave flip ostracizely charged ripostes on the organization.It is central to n iodine that in that location ar rough(prenominal)(prenominal)(prenominal) theories of motive proposed by miscellaneous detectives including Abraham Mas base, Alderfers ERG Theory, Herzbergs deuce- accompanimentor Theory, blondness Theory, Expectancy Theory, McClellands Theory, Goal range Theory, McGregors surmisal X and Y, Ouchis Theory Z and so forth (Sarin, 2009 237). These theories make take to the data of various pricks of indigence subprogramd by organizations to stimulate the rice beer of their employees. This question entrust turn up the whatsoever(prenominal) of these demand theories and apply them to billhook their literal caseiveness on employee functioning as well as organizational productiveness.Managing shoots the creation and keep oning of an environment for the performance of individual croping together in throngs towards the turn outcome of a common docu mentarys/ conclusions. A manager brush asidenot do his doing line with emerge spoting what his masses want. To emphasize the grandeur of knowing and victorious advantages of motive movers in explodeicular commerce joy is the c erstrn of the managers. Their theorize is not to travail to manipulate commonwealth precisely kinda to recognize the move itemors in boding an environment for performance.The staple fiber element of valet conduct is genius kind of application, physical or mental. We go off account at piece behavior as a series of activities, the question that arises, overwhelm to what termination lav the activities of human organism be undertaken in either evidence in time that is mint do things that lead them to accomplish something, scarce individual goals trick be elusive, sometimes throng know only why they do things.Management task is to get things d angiotensin-converting enzyme with some other plenty due to global economic re cessional which is affecting Nigeria economy, employee be no longer safe due to un obligatory retrenchment, lay dour , net profitoff compulsory leave etc, employee do not want to congeal in collection to encourage active participation from employee for the attainment of organizational goal, at that place should be hypothecate gratification.The word Employee Remuneration to most spate carry ons to notes and norm wholey m nonp argonily in addition to wages and salaries. However, meditate comfort accord to Lawal (1992, pg56) is the favour able-bodiedness with which employee view their add. Stephen P.etal (2009), define concern enjoyment as a persons customary view towards her ph maven line. It is obtained when on that point is a pop the question pop off surrounded by line of descent propertys and wants of employees, in fact Employee Remuneration is an organizational pot up as an contour of m whatsoever factors, Employee Remuneration has a take a crap pitch phenomenon, one bea that brings around work rejoicing is the motivation of the pull iners.The factors identified by vigilance to be trusty for Employee Remuneration of drillers on the jobs argon-Good Remuneration trading Enrichment patronage matter hypothecate rotationConducive job environmentPositive comment take part in all aim of decision performanceEquity allocate in the organization.Recognition for contribution do in the organization.Since evaluation of forethought, overlord managers and the writers on focus suck do a concoction of assumptions nigh what would make the individual employee (that is the earner) to be satisfied, for font, the traditional turning a mood of organization that a boldness of quit and punishment should be used to be sic the craving behaviour.This is implemented through compensation package stolidd on productiveness of an employee e.g. Taylor differentiate system ground on the necessity not out of love of money. at th at placefore, this assumption course lead to the conclusion that was an important factor that satisfied the workers on the job. In late 80s, managers started to witness tell on attend with workers who appeargond to be shadowy of direction and similarly be unimpressed by money, un stool-to doe with about productivity and self-centred.Then recognition of for workers bend a major challenge to counselling in view of the fact that a simple event to the line of work did not exist. From the above it on that pointof implies that for organization to append employee performance, managers extremity to be much much forward-looking in spirit of employees behaviour in an boldness. The savvy will fork out basic ingredient for the figure and incorporating. Employee salary strategies into the form _or_ system of government and clinical of the organic law on the good neglect is undetermined of having a striking unfavorable effect on the constitutional objective specia lly on the long run.Employee crust of the scientific management system take to the modification of job design and to chief(prenominal)tain employee en henceiasm and productivity, job enrichment became HR managers approach to motivation. Employees lust jobs that are challenging, sovereign and will require their intellects. Job enrichment makes homework to fulfil this longing as it involves an increase in the take aim of responsibility for excogitationning and co-coordinating tasks (Stevenson, 2002 310 cited in maxwell et al, 2008 436). concord to Kreitner and Kinicki (2001) cited as well as in maxwell et al (2008 436) the surmisal of job enrichment is a pragmatical use of Herzbergs hygiene scheme, which postulates that employees are sparkd when there is an increase in job rapture (Maxwell et al, 2008 436).1.1 Background to the readIn Nigeria, there is a complete dearth of studies that looked into this strong management tool in agreements. Therefore, this muse w ill carry out first present interrogation amongst employees in a Nigerian banking sector. It is important to find out whether work performance hatful be improved through stipend which displace be in term of pecuniary and non-fiscal requital/ give back in the Nigerian functional(a) environment. accordingly, the research into reward and motivation has stick prerequisite in enunciate to alert Nigerian employers on the posit for capable motivation, both(prenominal) financial and non-financial to ensure adapted employee performance. motivating commences with a motif, vision, dream, or desire to happen upon what seems impossible. Employers desire their employees to shit a high-poweredal attitude to eitherthing. In their whimsey, this attitude assures an increase in productivity (Maxwell et al, 2008 432). In todays increasingly changing world, both employee and employers are trying to find shipway to make jobs more than(prenominal) meaningful and significant. One of the ways to do this is to design jobs to violate meet new requirements. The re-engineering of jobs has been a significant labor food market happenrence over the last 20 years. The design of jobs as it relates to employee participation, ductile working and employee/ separate independence has experienced extensive changes. These changes include the use of several(prenominal) recent HR practices e.g. employee involvement programs such as superior circles, more use of job rotation and flexibility, job enrichment, job enlargement, and more work- squad self-management (Maxwell et al, 2008 432-433). Redesigning has several characteristics of which job enrichment is one. The case of job redesign reveals how various classes of workers motley from one to some other in form of what they impoverishment. concord to Kreitner and Kinicki (2001) cited in Maxwell et al (2008 433), job design or redesign is any gravel of activities involving the adaptation of specialized jobs or inter underage systems of jobs with the intent of improving the character of employee job experience and their on-the-job productivity.Employee resentment of the scientific management system light-emitting diode to the modification of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the take of responsibility for planning and co-ordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the surmise of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are prompt when there is an increase in job enjoyment (Maxwell et al, 2008 436).The purpose of this research is luxuriously gearlighting the impact of employee gelts on nerveal productivity. It is aimed at identifying those attitudes of the management of the attach to towards its employees that will enable the partnership to succeed its corporate goals. This field of force is necessary as lack of adequate breeding can hinder giving medications from achieving set goals, which normally amongst many others is profit maximisation.1.2 Aims and ObjectivesThe main aim of this study is to know the brilliance of employees net income to the job satisfaction of the workforce, and theoretically it is to identify the various motivational inducing and tally the various view of managers on the impact of these incentives on employee.to a fault this study aims to gauge Access bank plc success vis-a-vis rewarding their staves.ObjectivesThe objective of this study is to view, The dissemble that Employee Remuneration has on rigmental Productivity in the this, the researcher will flak to examine the spare-time activity-T o examine the relationship among motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee recompense and employee performanceThe evaluation and predicateation of reward process.The link between employee remuneration and job satisfaction1.3 line of occasioning OF THE occupation gracious being as individual has a ludicrous characteristic which is distinct from others, whence in an face that has over one potassium workers, it mover there would be different kind of characteristics. Employee remuneration as a psychology concept calls for a thorough ground of employees take in which will enable the management to blend them with the corporate take on in order to become an equitable mix that will stir the recognition of the boilersuit objectives of the overall objectives of the establishment and employee.On a encompassing(prenominal) look at most val idation, the essential inner factors mystify not been decent addressed by contemporary organisation, no wonder we bear noble rate of incessant have-to doe with witnessed by these organisations over the year.The problem therefore is how to maintain an equitable compensation package of fulfilling the aspiration of both the employee and employers in such a way that an equilibrium well-disposed interaction will be maintained. It is therefore important for the organisation to realize the provision of intrinsic factor that satisfy the subscribe to urges, want and aspiration of workers would have a long run effect on the profitability base of the organisation which are fundamental criteria for the measurement of Employees Remuneration.CHAPTER TWOLITERATURE round off2.0 IntroductionIn this chapter, the researcher proposes to critically consider a number of theories of motivation that are relevant to the study. In addition, the researcher will examine the impact of employee remuner ation, and the relationship between job enrichment and employee performance.To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction2.1 motivation Theories pauperization deals with the factors that shape peoples behaviour. The trio components of motivation identified by Arnold et al (1991) cited in Armstrong (2002 56) are 1) direction 2) effort and 3) persistence. In a work environment, employees can self-motivate by set abouting and engaging in activities that will lead them to come upon set goals (intrinsic motivation) or be actuate by management through various reward systems (extrinsic motivation) (Armstrong, 2002 56).Earlier views on motivation, albeit not perpetually perf ect, have proved to be an important part of the rearation for evolutionary call onth. indigence is a blend of factors that learns peoples actions and it can be classified as individual, group and organizational motivation. The different theories of motivation, in their different ways promote our understanding of the complex process of motivation and the fact that there are no straightforward answers to motivating anybody (Armstrong, 2002 57).Scientific management sees money as the principal(a) human motivator, while the view of human relations is that social factors are the primary human motivator (Sarin, 2009 237). Frederick Winslow Taylor, who is known as the render of scientific management, focused on applying the concepts of science to improve production by relying on the use of observation, measurement, analysis and improvement of work method actings, and economic incentives. His study of work methods in great detail identified the best process for doing from each one j ob and laid emphasis on out drop. This theory was not particularly favoured with workers, who intrustd that it was not fair to increase out repose without a commensurate increase in reward (Stevenson, 2002 21 cited in Maxwell et al 2008 433). The instrumentation theory of motivation derived its roots from the scientific management theory of Taylor and also emphasized the importance of money as the main reason people work. Hence, rewards or otherwise should be linked flat to performance. However, this theory fails to take into esteem other human necessitate that could affect performance (Armstrong, 2002 57).This carelessness gave rise to the motif theory, the basis of which is the belief that an unfulfil direct need creates a signified of anxiety. Therefore, in order to create a sense of fulfilment, once a need is identified, a pattern of fulfilling it must(prenominal) be set out. However, not all necessitate are important at a stipulation time in a persons career. Some o f necessity are more urgent than others (Armstrong, 2002 58). Abraham Maslows theory (1940) cited in Sarin (2009 237) is state to have based his theory on Henry A. Murrays postulation that people seek to satisfy their various needs at the akin time, rather than in a specific order. Murrays Manifest Needs however did not arrange the identified needs in any particular order of importance, foreign Maslows hierarchy of a set of quintuple needs Physiological, Security, Social, rate and egotism actualization each of which is related to the other and place in order of hierarchy. According to him, once a need is met, it does not motivate a persons behaviour again. However, it is possible to either move up or pop up each of the levels depending on whether a need has been fulfilled or the recognition of a need is being endangered (Sarin, 2009 237).McClelland (1975) identified trine needs achievement, affiliation and bureau that motivates managers. However, while agreeing with Ma slow that motives are part of the personality, he is of the sound judgment that they are caused by environmental factors. The levels of these needs are dependent on different individuals. While some whitethorn have a higher(prenominal) need for achievement, others may desire affiliation or power (Armstrong, 2002 58).Herzberg (1959) based his theory on two sets of factors extrinsic and intrinsic that were directly relating to job satisfaction and dissatisfaction. Extrinsic factors are referred to as hygiene or criminal maintenance factors and they are linked to job environment, job context e.g. timber of supervision, work conditions, company policies, relationship with co-workers and level of compensation. Job dissatisfaction may occur where there are no extrinsic factors. Intrinsic factors referred to as motivators or suppuration factors, on the other hand, relate to the job itself e.g. the complexity of work, level of importance with the organization as well as promotion opp ortunities. The out produce effect of intrinsic factors is a high level of job satisfaction, which according to Herzberg will prevent dissatisfaction and create a positive attitude to work (Di Cesare and Sadri, 2003 36). Essentially, businesses should study the motivator factors and hygiene factors with a view to optimize motivation and productivity among employees (Maxwell et al, 2008 436).Some managers hold the view that employee can be motivated to improve productivity by means of monetary incentives. The monetary scheme may be take a potpourri of different form voice price rate, individual pension, a team or group bonus scheme , a high pay rate system and profit sharing plan.All these have been packaged to motivate employees so as to improve on their performance. However, the general problem of monetary incentives is that they are effective in the short run but not necessary monetary comfort effective, on the other hand, money can motivate depending on the individuals need for money. Money is not an end itself but means of satisfying needs, employee remuneration proceeds high organisational productivity his for workers to be satisfied with their job, there is need to study the various motivation theories postulated by management experts.Motivation theories have series of theories, that is complementary to one another. The leading theory are listed downstairs and summarised in table 19.1. the most significant ones are those concerned with expectancy, goal settings and equity, which are classified as process or cognitive theories.2.2 Employee remunerationDessler (2008) define employee compensation as all forms of pay spillage to employee and arising from their employment. He also stated that the compensation can be in two forms and they are direct financial payment and indirect financial payment. rate financial payment can come in form of wages, salaries, incentives, fit out and bonuses. While indirect can be in form financial profit like employer - gainful insurance and vacations.All these are schema of remuneration, mogul A Armstrong M, give their own contribution towards the strategy of remuneration that the hint of human capital theory is that investment in people adds to their value to the firm.2.2.1 Why should organisations compensate Employee?According to Stephen P. Robbins David A. Decenzo (2005, pg211) when an organisation design its overall compensation package, it has to look further than just an hourly wages or yearly salary. It has to take into account another element, benefits. They even include that employee remuneration are non financial rewards designed to enrich employees live. This has grown a great importance in the life of an employee and a variety over the historic years. withal stated that non financial reward should also put into consideration , if an employee invest their human capital into the firm they have to obtain a overhaul not only in form of opportunity to grow and to achieve but also in toll of being cute to their employer.This authors opinion is different from other peoples opinion they include that organisation should have take off of benefit such as paid time off from work, life and disability insurance, retreat programs and health insurance. While some of this benefit are been paid by both employee and employer, such benefits are retirement and health insurance.2.3 Employee RemunerationThe word Employee Remuneration to most people refer s to money and unremarkably money is addition to wages and salaries. In fact employee in any organisation set up as an embodiment of many factors. Employee remuneration has caused effective phenomenon, one area that brings about employee remuneration is motivation of the workersIn fact employee remuneration in any organisation set up embodiment of many factors. employee remuneration has caused effect phenomenon, one area that brings about employee remuneration is motivation of the workers. The organisations identified t o be responsible for employee remuneration of workers are as followsJob EnrichmentJob RotationJob ContentConducive Job EnvironmentEquity component in the organisationParticipation in all level of decision processPositive criticismRecognition for contribution made in the organisation.Since evaluation of management professional managers and writers on management have made variety of assumption-about what would make the individual employees (workers) to be satisfied for example.The traditional (theory of organisation that a system reward and punishment should be used to elicit the desire behaviour, this is implemented through a compensation packages, based on productivity of employee example of Taylor differentiates payee system of based on the assumption that employee work out of necessity not out of love of money.Therefore this naturally led to the conclusion that money was an important factor that satisfied the workers on the job. In the late eightys (80) and ninetys (90) manager s started to witness frequent encounter with workers who appeared to be suspicious of management in view of the fact that a simple solution to the problem of did not exist, in addition it may be celebrated that when considering some traits of workers.The understanding will give up the basic ingredient for designing and incorporating employee remunerations and strategies into the policy and objective of the organisation as it is total neglect is capable of having a great advance effect on the organisation objective in particular in the long run. Reilly P. Williams T. (2006) Support that for employee remunerations to be effective HR needs the support of the top team. An unsympathetic CEO can be the a major block on getting people management edit out properly on the agenda. Even when the HR director is low in the pecking order, well behind the chief financial officer information officer, the same result will occur. So HR director as a person needs to be respected by the board, exec utive etc. need to support and understand what HR is doing. This simply means another way for HR to motivate staff is to have a dangerous relationship with senior management and with employees.2.3.1 When should an employee is well remunerated?The characteristics of the job need of the individual, it is clear that there are numerous variable between people and their jobs that helps to determine their relationship. It must be noted that the concept of employee remuneration is psychological, it relates to these forces operational within individual employees.The underlying problem is therefore, that management should attempt to strike a balance so as to satisfy the have-to doe with of both the organisation and the workers. The reality of management observed that emphasis of high employee remuneration shifted away from the job itself to labour.In simplistic term, an employee organisation productivity can be define as being determined by the level and interaction between ability and mo tivation thus geological formation productivity is contingent on a number of factors such as achievement (liability appropriate for designate job)motivation and role clarify (a clear understanding of assigned role).Another way that Reilly Williams T add their support to how HR activity can influence the way to manage their staff, it will be boost line managers to allow scope for employee involvement and space for employees to act in practical terms, that this might be supporting the consultation of staff if changes are afoot.Also it is the duty of HR to determine whether the employee is due to be reward, in the lead the department can come to conclusion, such employee have to go through the performance appraisal process which contains three steps square off the job- the means that the employee understand the nature of the job that he/ she has to do in the organisation and to do it to the organisation standardsAppraising performance- Dessler G defines this as comparing your subo rdinates actual performance as to the standard that have been set this usually involves some types of rating form.Feedback session- here is the website where two of you debate on employees performance and progress, an d make plan for any development.There various methods of appraisal methods such as computer graphic rating scale, Alternation ranking method, paired comparison method, forced distribution method etc. I will try and expansiate on two of this methods diametrical relation order- this is a method whereby the two employee together in terms of quantity of work, quality of work , behaviour, how they react to work whenever they have been called, team work and so on.GRAPHIC RATING SCALE METHOD- this method can be refer to as the simplest and what most organisation prefer to use for appraising staff performance.THEORETICAL FRAMEWORKTo provide the infallible theoretical background for the study attempt will made to review literature of motivation as a means of achieving e mployee remunerations. reenforcement recognise can be described as a way which one is been compensate what been done either good or bad, it can also be called benefit that is given to an employee or group of people in an organisation. This can be done directly or indirectly. It usually use to encourage people at work to be able to put more effort in work that need to be done. This usually done when an employee want to sign a contract with an organisation or company such employer needs to allow the employee to be fully witting what the package of the income will be per annum or hourly paid if such an employee is interest he or she is going to sign the extend to form. There are two types of rewards, they are financial and non financial rewards. monetary refund also can be refer to as an incentive which can be in form of financial reward given to an employees whose production exceed predetermined standard that is the production is beyond what the organisation expectation.This can a lso be in form of pay structure, incentives and benefits this three usually has it important role to play in implementing strategies in an organisation. firstly, For a high level of pay or benefits relative to that of competitors can ensure that the company attracts and retains high quality employees, but this might have a negative impact on the companys overall labour cost. Secondly, by fasten pay to performance, the company can elicit specific activities and level of performance from employee. In a study of how compensation practices are tied to strategies, researchers examined 33high- tech and 72 traditional companies. They classified them by whether they were in development pointedness. They found that advanced companies in growth stage (greater than 20percent inflation- adjusted increases in one-year sales) or a maturity stage. They found that high-tech companies in the growth stage used compensation systems that were highly geared towards incentive pay, with a light perce ntage of total pay devoted to salary and benefits. On the other hand, compensation systems among mature companies (both high-tech and traditional)devoted a lower percentage of total pay to incentive and a high percentage to benefits. (Noe.et.al 2003 pg 69). face believe that given an employee incentives after profit is another way of motivating an employee to put more effort to his /her work this reward can be inform of profit sharing, salary increase,Non- Financial reward2.5 Job satisfaction you need to talk on job satisfactionEmployee performance pg66 amstrong hand bk2.6 What is MotivationBehind every behaviour there is motive, that is all behaviour is motivated, behaviour psychologist agree that what motivate individual is the satisfaction of their needs but do not develop generally acceptable illuminance of needs, several theories of motivation of worker. These theories can be grouped into two major categories.The satisfaction or content theoriesThe instrumentally theoriesThe s atisfaction or content theories relieve that human beings have needs and its their desire to satisfy these needs that bound to specific behaviours. The instrumentality or process theories are based on the assumptions of that the part which leads to a goal is influenced by the reception and values of members of the organisation.The theory of Maslow, Adeifer, Herzberg are example of theory of needs satisfaction theories. Vroom porter, Lawal and Jacque are example of instrumentality of theories.Lawal (1993), says Motivation is a persuasive function that come crossways all aspect of employees development, the need for motivation can be viewed from following perspectives.Qualified manpower must be attracted and maintain in organisation ton exerciseOnce employed workers must be motivated to exercise their time and energy in achieving the predetermined goals of the organisation.Human resources are most important factor of production in an organisation and must be maintained and develope d.The reasons highlighted above suggest that the creation of contributive working environment employee remuneration are the requirement for achievement of organisation success.Hence it is necessary for manager to understand what motivate workers and how motivation influence organisation productivity. In brief, motivation is an inner state that energize activates or more directs or channel behaviour towards goals/objectives.Motivation therefore is a general term used to denotes relationship between needs and the fulfilment of needs. It is dynamic process that this five (5) parts.Deprivation, presence of need ( unavoidably)Need quartz glass led as want (WANTS)Action, goal oriented behaviour (ACTIONS)accent or drives to fulfil the need (DRIVES)Satisfaction of need that reduce the drive and thus create the need for re-evaluation.The above description of motivation process may not be enough to explain employees behaviour, some theories of some reckoned management writers may be needed for further clarification and explanation. Also there is two types of motivation Intrinsic and Extrinsic motivation.Intrinsic motivation can be define as2.8. MASLOW S HIERARCHY OF NEEDSAccording to Robert (1971), the best known theory of motivation was proposed by MASLOW, who hypothesized that work of every human being there exist an hierarchy of five (5) needs. According to Maslow, human beings have needs that can be arranged in hierarchy of needs, if these needs are satisfied human being will be motivated to perform however a satisfieImpact of Employee Remuneration on ProductivityImpact of Employee Remuneration on ProductivityCHAPTER ONE1.0 IntroductionThe aim of this dissertation is to investigate the need for and impact of employee remuneration on organizational productivity. The study will focus on relationship between motivational techniques and employee performance. To examine the relationship between the level of job satisfaction of employee performance. It will also investi gate the relationship between remuneration and employee performance. And the evaluation and development of reward process, which in turn can lead to improved profitability in an organization. If it is accepted that organizations assets are its work force, it is imperative that they ensure that they are fully motivated. This is because if the workers perceive that they are poorly remunerated, their performance is likely to drop and this will have negative effects on the organization.It is important to note that there are several theories of motivation proposed by various researchers including Abraham Maslow, Alderfers ERG Theory, Herzbergs two-factor Theory, Equity Theory, Expectancy Theory, McClellands Theory, Goal Setting Theory, McGregors theory X and Y, Ouchis Theory Z etc. (Sarin, 2009 237). These theories have led to the development of various tools of motivation used by organizations to stimulate the interest of their employees. This research will examine the some of these mo tivation theories and apply them to measure their actual effectiveness on employee performance as well as organizational productivity.Managing requires the creation and maintaining of an environment for the performance of individual working together in groups towards the accomplishment of a common objectives/ goals. A manager cannot do his job without knowing what his people want. To emphasize the importance of knowing and taking advantages of motivating factors particularly job satisfaction is the concern of the managers. Their job is not to attempt to manipulate people but rather to recognize the motivating factors in designing an environment for performance.The basic element of human behaviour is one kind of activity, physical or mental. We can look at human behaviour as a series of activities, the question that arises, include to what extent can the activities of human being be undertaken in any point in time that is people do things that lead them to accomplish something, but i ndividual goals can be elusive, sometimes people know exactly why they do things.Management task is to get things done through other people due to global economic recession which is affecting Nigeria economy, employee are no longer safe due to unnecessary retrenchment, layoff , payoff compulsory leave etc, employee do not want to put in order to encourage active participation from employee for the attainment of organizational goal, there should be job satisfaction.The word Employee Remuneration to most people refers to money and usually money in addition to wages and salaries. However, job satisfaction according to Lawal (1992, pg56) is the favourableness with which employee view their work. Stephen P.etal (2009), define job satisfaction as a persons general attitude towards her job. It is obtained when there is a proffer fit between job characteristics and wants of employees, in fact Employee Remuneration is an organizational set up as an embodiment of many factors, Employee Remune ration has a cause effect phenomenon, one area that brings about job satisfaction is the motivation of the workers.The factors identified by management to be responsible for Employee Remuneration of workers on the jobs are-Good RemunerationJob EnrichmentJob ContentJob RotationConducive job environmentPositive CriticismParticipating in all level of decision processEquity share in the organization.Recognition for contribution made in the organization.Since evaluation of management, professional managers and the writers on management have made a variety of assumptions about what would make the individual employee (that is the worker) to be satisfied, for example, the traditional theory of organization that a system of reward and punishment should be used to elicit the desire behaviour.This is implemented through compensation package based on productivity of an employee e.g. Taylor differentiate system based on the necessity not out of love of money. Therefore, this assumption naturally lead to the conclusion that was an important factor that satisfied the workers on the job. In late 80s, managers started to witness frequent encounter with workers who appeared to be suspicious of management and also are unimpressed by money, unconcerned about productivity and self-centred.Then recognition of for workers become a major challenge to management in view of the fact that a simple solution to the problem did not exist. From the above it therefore implies that for organization to increase employee performance, managers need to be much more sophisticated in understanding of employees behaviour in an organisation. The understanding will provide basic ingredient for the designing and incorporating. Employee remuneration strategies into the policy and objective of the organisation on the total neglect is capable of having a great adverse effect on the organisational objective specially on the long run.Employee resentment of the scientific management system led to the modific ation of job design and to maintain employee enthusiasm and productivity, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the level of responsibility for planning and co-coordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the theory of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).1.1 Background to the studyIn Nigeria, there is a complete dearth of studies that looked into this effective management tool in organisations. Therefore, this study will carry out primary research amongst employees in a Nigerian banking sector. It is important to find out whether labou r performance can be improved through remuneration which can be in term of financial and non-financial remuneration/reward in the Nigerian working environment. Hence, the research into reward and motivation has become necessary in order to alert Nigerian employers on the need for adequate motivation, both financial and non-financial to ensure commensurate employee performance.Motivation commences with a need, vision, dream, or desire to achieve what seems impossible. Employers desire their employees to have a can-do attitude to everything. In their opinion, this attitude assures an increase in productivity (Maxwell et al, 2008 432). In todays increasingly changing world, both employee and employers are trying to find ways to make jobs more meaningful and satisfying. One of the ways to do this is to redesign jobs to better meet new requirements. The re-engineering of jobs has been a significant labor market detail over the last 20 years. The design of jobs as it relates to employee participation, flexible working and employee/group independence has experienced extensive changes. These changes include the use of several recent HR practices e.g. employee involvement programs such as quality circles, more use of job rotation and flexibility, job enrichment, job enlargement, and more work-team self-management (Maxwell et al, 2008 432-433). Redesigning has several characteristics of which job enrichment is one. The study of job redesign reveals how various classes of workers vary from one to another in form of what they need. According to Kreitner and Kinicki (2001) cited in Maxwell et al (2008 433), job design or redesign is any set of activities involving the alteration of specific jobs or interdependent systems of jobs with the intent of improving the quality of employee job experience and their on-the-job productivity.Employee resentment of the scientific management system led to the modification of job design and to maintain employee enthusiasm and productivit y, job enrichment became HR managers approach to motivation. Employees desire jobs that are challenging, autonomous and will require their intellects. Job enrichment makes provision to fulfil this desire as it involves an increase in the level of responsibility for planning and co-ordinating tasks (Stevenson, 2002 310 cited in Maxwell et al, 2008 436). According to Kreitner and Kinicki (2001) cited also in Maxwell et al (2008 436) the theory of job enrichment is a practical application of Herzbergs hygiene theory, which postulates that employees are motivated when there is an increase in job satisfaction (Maxwell et al, 2008 436).The purpose of this research is highlighting the impact of employee remuneration on organisational productivity. It is aimed at identifying those attitudes of the management of the company towards its employees that will enable the company to achieve its corporate goals. This study is necessary as lack of adequate information can hinder organisations from a chieving set goals, which usually amongst many others is profit maximisation.1.2 Aims and ObjectivesThe main aim of this study is to know the importance of employees remuneration to the job satisfaction of the workforce, and theoretically it is to identify the various motivational incentive and summarise the various view of managers on the impact of these incentives on employee.Also this study aims to evaluate Access bank plc success vis-a-vis rewarding their staffs.ObjectivesThe objective of this study is to examine, The Impact that Employee Remuneration has on organisational Productivity in the this, the researcher will attempt to examine the following-To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remune ration and job satisfaction1.3 STATEMENT OF THE PROBLEMHuman being as individual has a unique characteristic which is distinct from others, therefore in an organisation that has over one thousand workers, it means there would be different kind of characteristics. Employee remuneration as a psychology concept calls for a thorough understanding of employees need which will enable the management to blend them with the corporate need in order to have an equitable mix that will enhance the realisation of the overall objectives of the overall objectives of the organisation and employee.On a closer look at most organisation, the essential intrinsic factors have not been properly addressed by contemporary organisation, no wonder we have high rate of incessant strike witnessed by these organisations over the year.The problem therefore is how to maintain an equitable compensation package of fulfilling the aspiration of both the employee and employers in such a way that an equilibrium social i nteraction will be maintained. It is therefore important for the organisation to realize the provision of intrinsic factor that satisfy the need urges, want and aspiration of workers would have a long run effect on the profitability base of the organisation which are fundamental criteria for the measurement of Employees Remuneration.CHAPTER TWOLITERATURE REVIEW2.0 IntroductionIn this chapter, the researcher proposes to critically consider a number of theories of motivation that are relevant to the study. In addition, the researcher will examine the impact of employee remuneration, and the relationship between job enrichment and employee performance.To examine the relationship between motivational techniques and employee performance.To examine the relationship between level of job satisfaction of employee performance.To examine the relationship between employee remuneration and employee performanceThe evaluation and development of reward process.The link between employee remuneration and job satisfaction2.1 Motivation TheoriesMotivation deals with the factors that shape peoples behaviour. The three components of motivation identified by Arnold et al (1991) cited in Armstrong (2002 56) are 1) direction 2) effort and 3) persistence. In a work environment, employees can self-motivate by seeking and engaging in activities that will lead them to achieve set goals (intrinsic motivation) or be motivated by management through various reward systems (extrinsic motivation) (Armstrong, 2002 56).Earlier views on motivation, albeit not always perfect, have proved to be an important part of the foundation for evolutionary growth. Motivation is a blend of factors that drives peoples actions and it can be classified as individual, group and organizational motivation. The different theories of motivation, in their different ways facilitate our understanding of the complex process of motivation and the fact that there are no straightforward answers to motivating anybody (Armstro ng, 2002 57).Scientific management sees money as the primary human motivator, while the view of human relations is that social factors are the primary human motivator (Sarin, 2009 237). Frederick Winslow Taylor, who is known as the father of scientific management, focused on applying the concepts of science to improve production by relying on the use of observation, measurement, analysis and improvement of work methods, and economic incentives. His study of work methods in great detail identified the best process for doing each job and laid emphasis on output. This theory was not particularly favoured with workers, who believed that it was not fair to increase output without a commensurate increase in reward (Stevenson, 2002 21 cited in Maxwell et al 2008 433). The instrumentality theory of motivation derived its roots from the scientific management theory of Taylor and also emphasized the importance of money as the main reason people work. Hence, rewards or otherwise should be link ed directly to performance. However, this theory fails to take into consideration other human needs that could affect performance (Armstrong, 2002 57).This omission gave rise to the needs theory, the basis of which is the belief that an unfulfilled need creates a sense of anxiety. Therefore, in order to create a sense of fulfilment, once a need is identified, a pattern of fulfilling it must be set out. However, not all needs are important at a given time in a persons life. Some needs are more urgent than others (Armstrong, 2002 58). Abraham Maslows theory (1940) cited in Sarin (2009 237) is said to have based his theory on Henry A. Murrays postulation that people seek to satisfy their various needs at the same time, rather than in a specific order. Murrays Manifest Needs however did not arrange the identified needs in any particular order of importance, unlike Maslows hierarchy of a set of five needs Physiological, Security, Social, Esteem and Self actualization each of which is r elated to the other and arranged in order of hierarchy. According to him, once a need is met, it does not motivate a persons behaviour again. However, it is possible to either move up or down each of the levels depending on whether a need has been fulfilled or the realization of a need is being endangered (Sarin, 2009 237).McClelland (1975) identified three needs achievement, affiliation and power that motivates managers. However, while agreeing with Maslow that motives are part of the personality, he is of the opinion that they are caused by environmental factors. The levels of these needs are dependent on different individuals. While some may have a higher need for achievement, others may desire affiliation or power (Armstrong, 2002 58).Herzberg (1959) based his theory on two sets of factors extrinsic and intrinsic that were directly relating to job satisfaction and dissatisfaction. Extrinsic factors are referred to as hygiene or maintenance factors and they are linked to job environment, job context e.g. quality of supervision, work conditions, company policies, relationship with co-workers and level of compensation. Job dissatisfaction may occur where there are no extrinsic factors. Intrinsic factors referred to as motivators or growth factors, on the other hand, relate to the job itself e.g. the complexity of work, level of importance with the organization as well as promotion opportunities. The resultant effect of intrinsic factors is a high level of job satisfaction, which according to Herzberg will prevent dissatisfaction and create a positive attitude to work (Di Cesare and Sadri, 2003 36). Essentially, businesses should study the motivator factors and hygiene factors with a view to optimize motivation and productivity among employees (Maxwell et al, 2008 436).Some managers hold the view that employee can be motivated to improve productivity by means of monetary incentives. The monetary scheme may be take a variety of different form example price rate, individual bonus, a team or group bonus scheme , a high pay rate system and profit sharing plan.All these have been packaged to motivate employees so as to improve on their performance. However, the general problem of monetary incentives is that they are effective in the short run but not necessary cost effective, on the other hand, money can motivate depending on the individuals need for money. Money is not an end itself but means of satisfying needs, employee remuneration proceeds high organisational productivity his for workers to be satisfied with their job, there is need to study the various motivation theories postulated by management experts.Motivation theories have series of theories, that is complementary to one another. The leading theory are listed below and summarised in table 19.1. the most significant ones are those concerned with expectancy, goal settings and equity, which are classified as process or cognitive theories.2.2 Employee CompensationDessler (2008) de fine employee compensation as all forms of pay going to employee and arising from their employment. He also stated that the compensation can be in two forms and they are direct financial payment and indirect financial payment. Direct financial payment can come in form of wages, salaries, incentives, commission and bonuses. While indirect can be in form financial benefit like employer-paid insurance and vacations.All these are strategy of remuneration, Baron A Armstrong M, give their own contribution towards the strategy of remuneration that the implication of human capital theory is that investment in people adds to their value to the firm.2.2.1 Why should organisations compensate Employee?According to Stephen P. Robbins David A. Decenzo (2005, pg211) when an organisation design its overall compensation package, it has to look further than just an hourly wages or annual salary. It has to take into account another element, benefits. They even include that employee remuneration are non financial rewards designed to enrich employees live. This has grown a great importance in the life of an employee and a variety over the past years. Also stated that non financial reward should also put into consideration , if an employee invest their human capital into the firm they have to obtain a return not only in form of opportunity to grow and to achieve but also in terms of being valued to their employer.This authors opinion is different from other peoples opinion they include that organisation should have array of benefit such as paid time off from work, life and disability insurance, retirement programs and health insurance. While some of this benefit are been paid by both employee and employer, such benefits are retirement and health insurance.2.3 Employee RemunerationThe word Employee Remuneration to most people refer s to money and usually money is addition to wages and salaries. In fact employee in any organisation set up as an embodiment of many factors. Employee remuneration has caused effective phenomenon, one area that brings about employee remuneration is motivation of the workersIn fact employee remuneration in any organisation set up embodiment of many factors. employee remuneration has caused effect phenomenon, one area that brings about employee remuneration is motivation of the workers. The organisations identified to be responsible for employee remuneration of workers are as followsJob EnrichmentJob RotationJob ContentConducive Job EnvironmentEquity Share in the organisationParticipation in all level of decision processPositive criticismRecognition for contribution made in the organisation.Since evaluation of management professional managers and writers on management have made variety of assumption-about what would make the individual employees (workers) to be satisfied for example.The traditional (theory of organisation that a system reward and punishment should be used to elicit the desire behaviour, this is implemented through a compensation packages, based on productivity of employee example of Taylor differentiates payee system of based on the assumption that employee work out of necessity not out of love of money.Therefore this naturally led to the conclusion that money was an important factor that satisfied the workers on the job. In the late eightys (80) and ninetys (90) managers started to witness frequent encounter with workers who appeared to be suspicious of management in view of the fact that a simple solution to the problem of did not exist, in addition it may be noted that when considering some traits of workers.The understanding will provide the basic ingredient for designing and incorporating employee remunerations and strategies into the policy and objective of the organisation as it is total neglect is capable of having a great advance effect on the organisation objective especially in the long run. Reilly P. Williams T. (2006) Support that for employee remunerations to be effective HR nee ds the support of the top team. An unsympathetic CEO can be the a major block on getting people management issue properly on the agenda. Even when the HR director is low in the pecking order, well behind the chief financial officer information officer, the same result will occur. So HR director as a person needs to be respected by the board, executive etc. need to support and understand what HR is doing. This simply means another way for HR to motivate staff is to have a good relationship with senior management and with employees.2.3.1 When should an employee is well remunerated?The characteristics of the job need of the individual, it is clear that there are numerous variable between people and their jobs that helps to determine their relationship. It must be noted that the concept of employee remuneration is psychological, it relates to these forces operating within individual employees.The underlying problem is therefore, that management should attempt to strike a balance so as t o satisfy the interest of both the organisation and the workers. The reality of management observed that emphasis of high employee remuneration shifted away from the job itself to labour.In simplistic term, an employee organisation productivity can be define as being determined by the level and interaction between ability and motivation thusOrganisation productivity is contingent on a number of factors such as skill (liability appropriate for assigned job)motivation and role clarify (a clear understanding of assigned role).Another way that Reilly Williams T add their support to how HR activity can influence the way to manage their staff, it will be encouraging line managers to allow scope for employee involvement and space for employees to act in practical terms, that this might be supporting the consultation of staff if changes are afoot.Also it is the duty of HR to determine whether the employee is due to be reward, before the department can come to conclusion, such employee have to go through the performance appraisal process which contains three stepsDefine the job- the means that the employee understand the nature of the job that he/ she has to do in the organisation and to do it to the organisation standardsAppraising performance- Dessler G defines this as comparing your subordinates actual performance as to the standard that have been set this usually involves some types of rating form.Feedback session- here is the situation where two of you debate on employees performance and progress, an d make plan for any development.There various methods of appraisal methods such as graphic rating scale, Alternation ranking method, paired comparison method, forced distribution method etc. I will try and expansiate on two of this methodsPAIRED COMPARISON METHOD- this is a method whereby the two employee together in terms of quantity of work, quality of work , behaviour, how they react to work whenever they have been called, team work and so on.GRAPHIC RATING SCALE METHOD- this method can be refer to as the simplest and what most organisation prefer to use for appraising staff performance.THEORETICAL FRAMEWORKTo provide the required theoretical background for the study attempt will made to review literature of motivation as a means of achieving employee remunerations.RewardReward can be described as a way which one is been compensate what been done either good or bad, it can also be called benefit that is given to an employee or group of people in an organisation. This can be done directly or indirectly. It usually use to encourage people at work to be able to put more effort in work that need to be done. This usually done when an employee want to sign a contract with an organisation or company such employer needs to allow the employee to be fully aware what the package of the income will be per annum or hourly paid if such an employee is interest he or she is going to sign the contact form. There are two types of rewards, they are financial and non financial rewards. Financial Reward also can be refer to as an incentive which can be in form of financial reward given to an employees whose production exceed predetermined standard that is the production is beyond what the organisation expectation.This can also be in form of pay structure, incentives and benefits this three usually has it important role to play in implementing strategies in an organisation. firstly, For a high level of pay or benefits relative to that of competitors can ensure that the company attracts and retains high quality employees, but this might have a negative impact on the companys overall labour cost. Secondly, by tying pay to performance, the company can elicit specific activities and level of performance from employee. In a study of how compensation practices are tied to strategies, researchers examined 33high- tech and 72 traditional companies. They classified them by whether they were in growth stage. They found that high-tech companies in gr owth stage (greater than 20percent inflation- adjusted increases in annual sales) or a maturity stage. They found that high-tech companies in the growth stage used compensation systems that were highly geared towards incentive pay, with a lower percentage of total pay devoted to salary and benefits. On the other hand, compensation systems among mature companies (both high-tech and traditional)devoted a lower percentage of total pay to incentive and a high percentage to benefits. (Noe.et.al 2003 pg 69).Organisation believe that given an employee incentives after profit is another way of motivating an employee to put more effort to his /her work this reward can be inform of profit sharing, salary increase,Non- Financial reward2.5 Job satisfaction you need to talk on job satisfactionEmployee performance pg66 amstrong hand bk2.6 What is MotivationBehind every behaviour there is motive, that is all behaviour is motivated, behaviour psychologist agree that what motivate individual is the satisfaction of their needs but do not develop generally acceptable clarification of needs, several theories of motivation of worker. These theories can be grouped into two major categories.The satisfaction or content theoriesThe instrumentally theoriesThe satisfaction or content theories assume that human beings have needs and its their desire to satisfy these needs that limitation to specific behaviours. The instrumentality or process theories are based on the assumptions of that the part which leads to a goal is influenced by the reception and values of members of the organisation.The theory of Maslow, Adeifer, Herzberg are example of theory of needs satisfaction theories. Vroom porter, Lawal and Jacque are example of instrumentality of theories.Lawal (1993), says Motivation is a persuasive function that come across all aspect of employees development, the need for motivation can be viewed from following perspectives.Qualified manpower must be attracted and maintain in organisati on ton exerciseOnce employed workers must be motivated to exercise their time and energy in achieving the predetermined goals of the organisation.Human resources are most important factor of production in an organisation and must be maintained and developed.The reasons highlighted above suggest that the creation of conducive working environment employee remuneration are the requirement for achievement of organisation success.Hence it is necessary for manager to understand what motivate workers and how motivation influence organisation productivity. In brief, motivation is an inner state that energize activates or more directs or channel behaviour towards goals/objectives.Motivation therefore is a general term used to denotes relationship between needs and the fulfilment of needs. It is dynamic process that this five (5) parts.Deprivation, presence of need (NEEDS)Need crystal led as want (WANTS)Action, goal oriented behaviour (ACTIONS)Tension or drives to fulfil the need (DRIVES)Sati sfaction of need that reduce the drive and thus create the need for re-evaluation.The above description of motivation process may not be enough to explain employees behaviour, some theories of some reckoned management writers may be needed for further clarification and explanation. Also there is two types of motivation Intrinsic and Extrinsic motivation.Intrinsic motivation can be define as2.8. MASLOW S HIERARCHY OF NEEDSAccording to Robert (1971), the best known theory of motivation was proposed by MASLOW, who hypothesized that work of every human being there exist an hierarchy of five (5) needs. According to Maslow, human beings have needs that can be arranged in hierarchy of needs, if these needs are satisfied human being will be motivated to perform however a satisfie

Fossil Fuels: Contribution and Impact

Fossil Fuels Contri simplyion and ImpactDiscuss the contribution of fogy furnish to novel human society and the environmental impactThe splendor of Fossil Fuels to human society sight non be everyplaceemphasized. creation service much(prenominal) as b offices, train system, general heating system and electricity be being powered with dodo fuels. Due to the high spherical contain of fossil fuels, they form the major protrude of the sparing of producing countries and the world in general. However the impact of fossil fuel to the environment has been an issue of not bad(p) concern. Considering the visible contributions of fossil fuels to contemporary human society, the environmental implications pose a predicament to the world leaders. It is decisive that the hazards posed by fossil fuels to the environment be tactfully sullyd epoch taking into count its arbitrary contributions to civilization. The first section of this essay bequeath discuss in a general contex t the different contributions that fossil fuel had made to the forward-looking human world. It go unwrap further discuss the contributions and environmental implications of combust, crude color and innate shove a colossal. The final section in the form of conclusion testament sum up in a general term the contributions and environmental implications fossil fuels on modern human society. Comparing the trends in the pass judgment at which to individu tout ensemble(prenominal)y wiz type of fossil fuel is being consumed in a global scenario will show the impact of the continuous increase in the appreciate of fossil fuels wasting disease will construct on magazine to come environment. The environmental implication of fossil fuels as discussed in this essay is with respect to contamination and climate change.Energy is fundamental to the quality of our lives. In fact or so(prenominal) human activities depend on the regular and uninterrupted supply of energy. This groun ds fossil fuels essential to modern human society, (Baker, 2008).The issues concerning the facts of the global energy consumption can be related to fossil fuels be develop they serve as primary root word of energy glob exclusivelyy. According to Chow, et al. (2003),the global energy practice session exceeds 370 (EJ) and fossil fuels stand closely 80% of this quantity of energy. This implies that fossil fuels contribute two triad of global energy. Fossil fuels ar made up of namely ember, coer and internal flub. They were formed in the outer layer of the earth from the remain of plants and animals over hundreds of millions of years age (Encarta World English Dictionary, 2005). This implies that fossil fuels ar al nigh non-renewable beca drug abuse its formation process takes a long utter around and this flow is long enough for the world to run out of fossil fuel reserves. Fossil fuels contribution is noticeable considering how the quantity of energy in a country affects both their economy and social life. In the world at once the industrial, transportation, customary service and residential spheres argon been powered mainly by fossil fuel. consequently, these different arnas where fossil fuels be majorly consumed underscore their valuable contributions to modern human society.One of the key uses of fossil fuels is to generate electricity. b overlooken is adept of the major fuel sources for electricity times. The relative low follow of scorch and its abundanceadded to the fact that it does notrequire the upkeep of pipelines and security issues while transporting combust is an advantage over early(a) sources of fossil fuels for generating electricity. Coal fuels the economy of countries, for example China has about 30% of the worlds coal reserves and uses coal as their major energy supply, (OECD, 1998). Chinas industrial power which allow for sparing growth depends virtually on coal (IEA, 2005). However Chinas dependence on coal has l ed to the countrys emitting about 39% of the issue forth global carbonic acid featureemission. Burning coal produce useful by-product that ar been employ in the industrial orbit mainly in steel plants and cementum twists, (Rohde, 1998). However, the environmental issues being raised by the global consumption of coal is of major concern. The toxins emitted from the combustion of coal and the waste from it mining process depart in climate change and making the s embrocate unproductive for floriculture, (OECD, 1983). Coal in comparison with the two otherwise types of fossil fuels has more(prenominal) environmental impacts. According to the OECDS ordinaryation on coal and environmental protection states during geographic expedition of coal to its end use coal has environmental implicationsDuring mining, treatment, transport and shop the sources of environmental concern can be summarized as subsidence, land use, gasolene and satisfying waste, dust, noise, vibration an d deterioration of surface and subsurface natural piddle systems. The major sources of contamination during combustion are air emissions of SOx, NOxand particulates, and solid waste materials.(OECD, 1998)Source BP coal consumption table, 2008. Fromhttp//www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_ prevalentations/statistical_energy_review_2008/STAGING/local_assets/downloads/pdf/coal_table_of_coal_consumption_2008.pdfFigure 1 to a higher place shows the increase in the rate of consumption of coal. There was a slight decrease in 1998 and 1999. This king be as a payoff of a reduction in consumption of coal in different countries. However, generally the rate of increase between years is not very much but if this increase rate is consistent over a period of judgment of conviction the quantity of coal consumed will be astronomical which implies that the environmental issues posed by coal will overly be on the increase.In recent times, technological e mergence and with both(prenominal) regulatory organizations that manages mining activities, the environmental issues are minimized. A careful comparison of the contributions of coal to the human society and its environmental implications makes the issue of coal controversial, (IEA, 1998). temporary hookup the environmental implications posed by coal mining and usage are of concern, its contribution to modern human society requires that the action to be interpreted should be balanced with calculates to its economical, energy and environmental impact.Oil like coal has contributed to modern human society in quite a subdue of ways. Unlike coal, it is easier and cleaner to burn and have a wider grip of application. It is consumed the most among coal and natural gas. In fact the increase in take in of oil results in a lucrative international oil market. Therefore this lucrative oil market is an advantage to the oil producing countries because when either the rate of global demand, p rice or both increases these countries economy will be benefited. The major contribution of oil to modern human society is straightforward in the industrial and transportation firmament. Most machines use in the industries make use of refined oil product. In the transportation sector aircraft and automobiles are examples of machines that make use of refined oil product. In accessory, plastic and purifying are byproducts of oil. However, just like the other types of fossil fuels, the processes of exploration, refining, transporting and consumption of oil have an environmental implication.Firstly during exploration of oil, damage of drilling bollocks will result in escape of oil, (OECD, 1973). In an pull downt where oil escapes, the case will be that the soil and/or the sea will be polluted. This will lead to loss of productive land for agriculture and possibly, extinction of the aquatic habitants in the surrounding sea. In auxiliary to loss of drilling mud is the seismic tech nique for exploration. As a result of the loud and low frequency output, this technique endangers marine lives during offshore exploration, (Kennesaw order University, 2009).Another environmental issues associated with the process of refining oil is the methods which the refinery chooses to dispose oil waste. These wastes are some(prenominal)time after being treated with a purportedly less harmful chemical is emptied into the sea. This chemi imposey treated waste with time get to the point it becomes poisonous to aquatic life, (OECD, 1971). Also some gases are being emitted during refining and this leads to air pollution which harmful to both homo and animals. These gases can cause cancer and other diseases to humans if inhaled.Oil tattle is the major issue with oil transportation. According to the article Environmental information activities for the 21stcentury published by Kennesaw State UniversityOil acquittance during transportation of oil account for an estimated 44 mill ion gallons being dumped into the worlds irrigate supply system, with 29 million gallons of this coming in the form of oil oil well spills. inbred gas is an important source of energy for reducing pollution and maintaining a clean and healthier environment compared to coal and oil. In addition to being a domestically abundant and secure source of energy, the use of natural gas alike offers a return of environmental benefits over other sources of energy, mainly other types of fossil fuels, (BP, 2006). The different uses of natural gas in modern human society make it an essential part of human life. Natural gas domestic uses are part of the numerous social impact it has on human society. Natural gas is expedient and it is being piped straight to the consumers facility which in contrast, oil mustiness be trucked to the customers location, and truck bearies are to liable to weather conditions. Natural gas is reliable, (BP, 2006). Natural gas is the cleanest burning fossil fuel. Because the combustion process for natural gas is almost stark(a), very few byproducts are emitted into the atmosphere as pollutants. The saturnine flame seen when natural gas is ignited is a sign of perfect combustion. Natural gas is mainly used for domestic, commercialised, industrial and power generation purposes.Firstly, the residential applications of natural gas are the most commonly cognise use of natural gas. It can be used for cooking, washing and drying, water system warming, heating and air conditioning. Domestic appliances are increasingly improved in order to use natural gas more economically and safely. run constitutes of natural gas equipment are generally lower than those of oil and coal. It is mainly used commercially by food service forgetrs, hotels, healthcare facilities and in office buildings. Also natural gas commercial applications implicate cooling (space conditioning and refrigeration), cooking or heating.Secondly, Natural gas is used as an input t o manufacture pulp and paper, metals, chemicals, st superstar, clay, glass, and to process certain foods. natural gas is excessively used to treat waste materials, for incineration, drying, dehumidification, heating and cooling, and cogeneration. In addition electric utilities and independent power producers are increasingly using natural gas to provideenergy for their power plants. In general, natural gas fuelled power plants have lower corking bells, are built faster, exploit more efficiently and emit less pollution than other fossil fuel power plants, (IEA, 1998). Technological profits in propose, efficiency and doing of have cycle gas turbines and co-generation processes are favoring the use of natural gas in power generation. Natural gas in a joint- electricity generation produces power and heat that is useful for industries as well as commercial users. This cogeneration reduces pollution emission considerably.Although the combustion of natural gas produces very slim N Ox, this chemical is however a ototoxic agents that results to acidic compounds and when combined with water and result in acid rain. Also, the length of the complex and extensive systems of pipelines in which natural gas are being transported through are in thousands of kilometers. Considering that natural gas in the pipe is in a condensate state, in the case of material defects and pipe corrosion to ground corroding natural gas will be exposed to the environment and in effect will pollute the air. Also, the technique of superfluouscting natural gas is one of its disadvantages which are because of the creation of cavities in the ground during extraction. If natural gas is been inhaled in large amounts is harmful to humans.The gas is extracted from a natural gas field. The squelch exerted by the gas helps support the layers of soil above the gas field. When the gas is extracted, the soil pressure increases and cavities are created in the ground. These cavities can sometimes cau se the ground to sink and the productive land for agriculture might be lost. Another environmental implication of natural gas is that the gas is toxic and can be poisonous. If the fields from which it was extracted were not treated, it can be toxic. The convention nursery gases include water vapor, carbon dioxide, methane, nitrogen oxides. Methane being the formula component of natural gas makes it a matter of concern with regards to greenhouse emission that results to climate change. Methane is a very strong greenhouse gas. In fact, it has an ability to trap heat almost 21 times more effectively than carbon dioxide, (naturalgas.org, 2004).Source Chow, J. et al (2003). Energy resources and global culture. Sciencemag.org, vol. 302.In conclusion the different contributions of fossil fuels to the modern human society are very noticeable. The chart above shows the global fossil fuels consumption by sectorial end use. The contributions of fossil fuels are made evident in the different sectors mentioned above. Form this essay, it can be suggested that the global fossil fuels consumption be reduced and more regulation that will effectively minimize the environmental implications of fossil fuels. it will be helpful if manufacturers consider environmental factors when producing machines and appliances that is being powered by fossil fuels. Moreover, resolving the global dilemma presented by fossil fuels will require a collective feat of every human. close Finance Initiatives Advantages and Disadvantages snobby Finance Initiatives Advantages and DisadvantagesPFI PrinciplesThe PFI, known as Private Finance Initiative, is a type of Public Private fusion procurance method utilize in UK look industry in 1992. (Chinyio and Gameson, 2009) As an important part of Governments strategy for speaking high quality humans services, Private Finance Initiative requires the offstage financers to put its own bang-up at assay to deliver clear outlined public bulge outs for a long term period, ensuring the quality of the work delivered within the time and reckon. (HM Treasury, 2009) OGC (2007, p.6) defined PFI as Where the public sector distils to purchase quality services, with defined outputs from the buck snobby sector on long term basis, and including maintaining or constructing the necessary radical so as to take advantage of confidential care skills incentivised by having confidential finance at risk.PFI has now covered most of public services such as health, education, defense force, prisons and transportations. Typically, PFI procurance involves contracting the entire thrust package including design, reflexion, finance, operation and maintenance, to a group of occult companies which consists of a moderately skilled construction firm and a facility wariness firm, for a long period of 20 30 years. The organisation in addition provides specifications indicating the services and precedents it requests, and leave the control right of design and construction and operation completely to the private group for the contract period. (Bennett and Iossa, 2006) It is only recommended for molds to take PFI route when the capital cost is in all probability to exceed 20m. (OGC, 2007) Bennett and Iossa (2009) say that its more likely to use PFI procurement if the externality is commanding and the blueprint on residual honour is large.Advantages capacious-Term RelationshipPFI is not only focusing on the evaluate for money, it also stressed the development of long term relationship between public sector and private sector. Robinson and Scott (2009) indicates that semipermanent relationships in PFI befuddles can provide a powerful incentive in order to learn from apiece other, share the knowledge, innovate and continuously improve the performance between private sector and public sector in object delivery. Partnering is a crucial key of PFI procurement, the good performance of which will lead to the success of the image. Spackman (2002, pp.283-301) addresses victor can be progress tod only if the public authority and the affirmer prelude the make in a spirit of partnership, wit understanding of all(prenominal) others business and a common vision of how beat out they can work together.Public SavingPFI/ palatopharyngoplasty procurement has the potential to reduce the cost, and deliver better quality work with the same cost in other procurements. (Bing and Akintoye, 2003) Research shows that the governings investment using PFI procurement in the UK is now about 10-14% in its total investment. (Grimsey and Lewis, 2005) Local authorities are keen to use PFI to deliver a purge via partnership as they do not charter to borrow money from the banks. Spackman (2002) finds the government constrains its borrowing because it concerns about future taxation, economic demand, costs of the borrowing, and flexibility responding to future economy shocks. The inte await cost of public debit in UK is a t 2-2.5 percent, however for the cost of private one is only about 1 percent. (Spackman, 2002) Anon (2009, p.3) declares that In the UK, lose of cash is forcing the government to look at using PPPs for more broadly. The deliver for the government is not only from the borrowing tax aspect, but also in total apprize of the visualizes compared with tralatitious procurement. Parker and Hartley, 2003 (in Grimsey and Lewis, 2005) claim that PPP contracts for UK defence services save cost range from 5-40 percent compared traditional public procurement.Private ProfitOne of the benefits for private sectors to take PFI is that under the long term ownership, they can gain incomes and put ons under their management and operation, or exchange benefits with the local authorities. Carrillo at el. (2008) indentifies that one of the key drivers for the penury of the PFI is the strong and long term income stream and higher returns and profitability. Spackman (2002, pp.283-301) also mentions its easier to increase charges to tuck a contract with a private operator than by right to vote in local or national government, and private financiers might regard income from users as a less risky source of r compensateue.Better trouble SkillsAs private financers are more capable for management in business in various fields, the government believes that the private sector has a better role to offer project management skills, advance(a) design and facility and risk management. (Carrillo at el., 2008) Spackman (2002) stresses that the monitoring pressures on contractors from private sectors whitethorn be stronger than those from the public sector which is leading to a quality work.Long Term ContractIn PFI, contractors are tied into a long-term commitment, so that it reduces that a contractor can walk away during the project if no sufficient funding is in place. Even though contracts might restrict this from happening, but it is difficult to design and impose broad articles and c lauses in the contract for a long contractual period. (Spackman, 2002) essay TransferRisk transfer is also an important element for delivering a good PFI project. Carrillo at el. (2008) claim that PFI will reduce the risk level carried by the government and transfer it to the contractors. Grimsey and Lewis (2005, pp.345-378) concludes that The transferred risk is often a key determinant of judge for money in PPPs, and one that may need to be updated as dialogs processed, to allow for variations in risk allocation. Apart from public procurement cost risk, there are also other risks such as come out use, site operation and access, building warnings, operations and management, financial conditions, maintenances and services, residual value and revenue etc. (Grimsey and Lewis, 2005) Those risks can all be considered and transferred to private side. In UK, there is a long list of samples for public funded projects being slow or finished with over budget. Such risks being transferred from public sector to private sector through a PPP route is considered to be adding value for money for public project, as private sector will solely manage the project cost, time and quality. (Grimsey and Lewis, 2005)Less Construction epochPFI is considered to be one of the procurements which can deliver project under or on time. MacDonald, 2002 (in Grimsey and Lewis, 2005) reviewed 50 large UK public procurement projects in the prehistorical 20 years, and found 11 were using PFI/PPP, average of which were completed under-time. HM Treasury, 2003b (in Grimsey and Lewis, 2005) reviewed 61 PFI projects, 89 percent of which were completed under or on time. Compared with traditional procured projects, 30 percent of which delivered on time, PFI projects could be completed on time with a 76 percent. (UK National analyze Office, 2003, in Grimsey and Lewis, 2005) spoken language against BudgetPFI is also considered to be one of the procurements which can deliver project under or on budg et. HM Treasury, 2003b (in Grimsey and Lewis, 2005) reviewed 61 PFI projects, all of which were all finished within the budget. Compared with traditional procured projects finished with 27 percent on budget, PFI projects completed on budget with a 78 percent. (UK National Audit Office, 2003, in Grimsey and Lewis, 2005)Innovation flakPFI schemes allow the private bidders to explore their zest to develop creational and unique projects which can also meet the required standards from the government. (Bing and Akintoye, 2003) When the project is under the ownership of public sector, renegotiation between the private financiers and the public guests must be carried out before the innovation is applied. However, when the project is the ownership of private sector, interest governments specifications, private financiers has own power and freedom to implement an innovative approach to meet its own requirements. (Bennett and Iossa, 2006)DisadvantagesTime TakingResearch shows that most supp liers complain that during the procurement, the PFI process takes too long for management decisions. (Spackman, 2002) Li (in Bing et al., 2005a, pp.25-35) claims that the most negative factor associated with PFI/PPP procurement is a lot of management time spent in the contract transaction, length delays in negotiation and high participation cost. Furthermore, Carrillo at el. (2008, pp.138-145) state that PFI projects are complex than traditional procurement taking longer lead-in time before the jump-start of the construction. It also adds It is unsustainable for a private company to have staff have-to doe with on a project for a 5 years period without a positive outcome.Risk AllocationIt is an advantage for public sector that their risks during PFI have been allocated away to private sections. However, it would be a shortcoming for private bidders to carry the risks somehow. OGC (2007, p.10) indicates that construction projects are undertaken by the private sector, which are incen tivised by having private finance at risk.High followAccording to look into from Bing et al. (2005b), PPP/PFI procurement has problems such as high tender cost, change negotiation, innovation cost restrains and conflicting in objectives between stakeholders. Carrillo at el. (2008) also find complain from both of client and contractors that the costs for the bidding, design and construction are higher than the traditional procurements.Lack of ExpertiseThere are still many public professionals not start outd with PFI as it is so complex to cope with. Carrillo at el. (2008) indicates that lack of expertise in public sector in toll of experience is one of the issues for PFI process. It adds further that the lack of expertise has negative impacts on the PFI projects, and the local authorities who are limit with the experience are also struggling to keep up the private partners, which influences the partnering development.Government InfluenceThe government is somehow bombarded that it is trying to show positive sides of PFI as much as it can in order to advertise implementation of PFI. The research and studies carried out so far by the government have been using a limited amount of projects with certain focus. It is recommended to call for more independent and third party studies for a wide range of project research and collect feedback from the clients in all types of projects to digest the PFI performance. (Carrillo at el., 2008)Procurement ComparisonIn order to procure the project of residential development for Wulfruna University in UK, PFI and forge and Build are taken into account for the project procurement. Comparison and analysis are carried out as adjacent. foundation Build design Build is one of the popular procurement methods implemented in the construction industry. Since April 2000, DB has been nominated as one of the procurement recommendations along with PFI and Prime Contracting by the government body. (OGC, 2007) The basic t distributi velying of DB procurement is, as fig.1 shown, the client sets up the requirements and standards, and then send them to the DB contractor for the delivery of the work. There is always possible survival of the fittest for client to consult other design professionals for initial innovations and design concepts. Once, the client is contracted with the DB contractor, its responsibility of design involvement is totally reduced. Risks shifts to the DB project team, consisting of designers, suppliers and subcontractors, who will take full responsibility to carry out the design and construction of the projects. (OGC, 2007)Brief AnalysisWith the intention of analysis the brief, following key points have been indentifiedExisting 12,500 students with 800 house of lobby and 450 on designExisting 65% manlys and 60% full timersProposed 450 bed hall of manor hallProposed building with comprised different types of try-onProposed building with a modern standardProposed building to hire out to tourists or public members during holidaysAnalysisThe veritable student number is 12, 500, and full time student is about 7,500. simply the number of the halls is only 1,250 (including the one on proposal). This figure is only about 16.7% of the current full time student number, if 1,2500 rooms are all counted as single units. There is a possibility of future development of more student halls of residence.If current full time student number is about 7,500 who need student accommodation, there could be about 4,875 male students. It is common that the maintenance and cleaning for the rooms rented out for male students are more likely harder and difficult than the ones for female students. So that the proposed building should be quality ensured with good maintenance scheme in place.450 bed hall of residence with modern standard and mixed types of rooms could increase the project cost, and it is likely to over the 20m limit. Such a number of students accommodation also needs a good m anagement and administration.The requirement of different types of accommodation might involve variation during design stage of the project.A modern standard might involve client into the design for its appetite of innovation approach and standard.Renting out tourists and other public members could increase extra income for the owner. Good management and operation are required from experience management firms to provide professional services.PFI versus Design BuildProject TimeIt is understandably indentified in the previous section that the majority of PFI project delivered under or on time. DB comes with 2 options for competing projects normally. One is fixed price project therefore, the project will be delivered in spades within the budget or no extra costs for the clients if its over. But the time of the project is uncertain. The other option is fixed time project, which can contract the project time, but the cost of the work could be more than what clients expects. Therefore, in terms of project time, both PFI and DB are all suited for the project.Project CostPFI is considered to be cost efficient delivery, and it always meets the budget or even under the budget. But it may cost more for the bidding cost for the contractors. DB can apply fixed price option so that both procurement methods can meet the requirement of cost even though the cost requirement is not clear in this brief. However, and again, the time will not be guaranteed.Project QualityDue to PFI is mingled a long term contract for the contractor and private financiers, it guarantee the quality and maintenance of the project. However, DB is somehow has more chance to deliver a less quality work depending on the morale and motivation of the contractor, contractor might reduce the quality of the work in terms of material or skilled labour etc to save a profit for its own. According to the analysis b, PFI is more favourable for the quality work in this project.Clients InvolvementWhen the privat e financier claims the ownership, involvement of design is more likely to happen in order to input innovation approach to achieve the appetite of financiers own. Therefore variation is allowed to occur within the PFI. However, DB contractor process the project from design to construction, there is not involvement for the client. whatsoever variation for the project will lead an extra fee to be implemented by the contractor. According to the brief analysis d and e, PFI is definitely better for DB in this case.Risk AllocationIn PFI, risks will be transferred to the private financier for the development. In DB, client only have a single contractual link with the contractor, shown as in fig. 1. The risk the client carried is little and passes most of it to the contractor.Project NaturePFI procurement is suitable for complex project, in which the project cost is more than 20m according to the submission from OGC. DB, however, is also suitable for the complex project. As in the brief an alysis c, it indicates complex types of accommodation requirement, both PFI and DB can procure this project.Partnering ApproachIt is no doubt that PFI is the only one procurement which required partnering for project compared with DB. Good partnering can lead to exchange of learning, knowledge sharing and improvement of delivery. In the brief analysis a, there is a potential development of student halls in the future if the number of students keeps increasing. Good partnering and relationship are the keys for quality delivery. PFI is then better than DB to be selected.Management surgical operation MaintenancePFI is a long term contractual practice which involves design, construction, management, operation and maintenance for a period of 20 to 30 years. Private sector sometimes has better management skills than public sector. Analysis f stresses the need of good Management and Operation, and also analysis b again claims the wideness of maintenance. PFI, therefore, is once again th e only option for this requirement contrasted with DB extract RecommendationAccording to HM Treasurys Central Unit on Purchasing, 1992 (in Masterman, J.W.E., 2002), filling of an appropriate procurement method can be achieved following the following stepsReview of contract strategyAnalysisOptionsSelection of best strategyImplementationThe document suggests clients or project managers to score how each procurement method meet the requirement of the objectives in various aspects, in which way the evaluation of the procurement is carried out. (Masterman, J.W.E., 2002) As fig. 2 shown, each standard criterion has its own requirements relative weighting range from 1 to 4. A satisfaction score range from 1 to10 should then be inclined to the procurement matching with the standard criteria. After the scoring, a calculation should be done by using the procurement score on one of the criteria multiplied by the weigh for the matched criteria. Then add up all the results to get a total scor e. For instance, in fig. 2, the underlined figures show the timing weighing for the project and traditional procurements score on this aspect for the project, so it should be calculated as 4 X 4 = 16, and 16 is the total score for the traditional procurements performance on timing. Then add the rest scores for variation, project nature etc. The more the score is, the more suitable the procurement will be.It is recommended that the client, the Wulfruna University, should firstly analysis and identify the wideness of each objective for the entire project, and provide the scale weighing on the object criteria according to the importance level. Then follow the sample shown above to list common procurement methods and give a score to each one. In the end, to choose the most scored procurement for the student hall of residence project. However, there are also other types of selection, but the main principles are all similar to each other.ConclusionIn this report, it has reviewed PFI proc urement. The review has acknowledge PFI can provide quality project within the time and budget scale, freedom of innovation, long term relationship, risk transfer from public sector to private sector etc, but has also underlined some drawbacks such as long decision making, high bid cost and lack of experience for both side etc. Meanwhile, it has compared two chosen procurement types PFI and Design Build, both of which are recommended by the government body. According to the brief analysis, it has listed some key points and requirements for the projects and comparison against each requirement between PFI and DB are carried out. It is clearly that PFI can provide more to meet the requirement of the project brief. 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