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| December 2009 |

NSIWC
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The Quarterly Bulletin of the National Salaries, Incomes and Wages Commission

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ISSN: 2141-1433

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NATIONAL SALARIES, INCOMES AND WAGES COMMISSION


Established by Acts No. 99 of 1993

Our core functions


Examine areas in which rationalization and harmonization of wages, salaries and other conditions of employment are desirable and feasible as between the public and private sectors of the economy and recommend guidelines which will ensure sustained harmony in work compensation policies in both the public and private sectors

Determine salaries and wages for every post in the Public Service; Monitor and analyse non-wage incomes; Study and improve productivity in both the public and private sectors; and, Monitor general price levels as an index of the cost of living.

Federal Government Inaugurates National Salaries, Incomes and Wages Commission's Board
ALSO IN THIS ISSUE
The Politics and Power of Implementing Strategic Changes In Public And Private Organizations: An Overview Implications of Job Evaluation as It Affects Regulated and Deregulated Unified Salary Structure A Synoptic Preview of the Concept of Job Evaluation for Wages and Salary Administration Overview of the System of Wage Determination and Administration in the Federal Public Service

Further contact
National Salaries, Incomes & Wages Commission Wing B, 3rd Floor, Federal Secretariat Complex, Phase 1, Shehu Shagari Way, P.M.B. 346, Garki, Abuja. 09 - 6720336 seccom@nsiwc.gov.ng www.nsiwc.gov.ng

SALARIES & WAGES BULLETIN, DECEMBER 2009

SALARIES & WAGES BULLETIN, DECEMBER 2009

The

Executive Chairman
writes
MESSAGE FROM THE EXECUTIVE CHAIRMAN

EDITORIAL BOARD MEMBERS

Since the first edition of the Salaries and Wages Bulletin was published, much had taken place in the National Salaries, Incomes and Wages Commission as regard wage administration in the Public Service. The Board of the Commission was inaugurated in August, 2009 and it is made up of members with track records of professional competence, proven commitment and dedication to the service of CHIEF RICHARD ONWUKA their fatherland. The Commission has been involved in various negotiation of some sectors pay reviews such Health Sector Staff Remuneration, University Staff Salary etc. The Salaries and Wages Bulletin will continue to disseminate current information on the activities of National Salaries, Incomes and Wages Commission. Thank you. ENGR. D. I. NYIKYAA | Editor/Chairman MR. O. O. OJO | Member MR. A. A. OSODI | Member

EGBULE

Briefly...
A NOTE FROM THE EDITOR -IN-CHIEF Readers are welcome to the second edition of Salaries and Wages Bulletin. This edition will provide an in-sight on the leadership of the National Salaries, Incomes and Wages Commission. Also in this edition, there are papers on the overview of the System of Wage Determination and Administration in the Federal Public Service, A synoptic preview of the Concept of Job Evaluation for Wages and Salary Administration, Implications of Job Evaluation as it affects Regulated and Deregulated Unified Salary Structure, and the Politics and Power of Implementing strategic changes in Public and Private Organizations: an overview. On behalf of the Editorial Board, I wish to thank the Executive Chairman and the Commission's Board for their continued support. I also want to thank those that provided relevant materials for this publication as well as those who had in one way or the other made this edition worthwhile. Thank you.

MR. C. O. OGBUJUAKPA | Member

MR. M. I. ESEIGBE | Member

Mr. A. C. Adighiogu | Member

EMMANUEL AFOLABI

THOMPSON

MRS. N. A. OZOEMENA | Member

MRS. E. N. IWUOHA | Member

MRS. A. Y. OKOYE

| Member

MRS. M. U. NWAUJU | Member

MRS. A. YUSUF | Member

MR. O. ABORODE | Member/Secretary

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PASSWORD TO GET TO HEAVEN


fter a long illness, a woman died and arrived at the Gates of Heaven. While she was waiting for Saint Peter to greet her, she peeked through the Gates. She saw a beautiful banquet table. Sitting all around were her parents and all the other people she had loved and who had died before her. They saw her and began calling greetings to her: Hello. How are you? We've been waiting for you. Good to see you. When Saint Peter came by, the woman said to him, This is such a wonderful place. How do I get in? You have to spell a word, Saint Peter told her. Which word? The woman asked. You have to spell a word, the woman told him. Love The woman correctly spelled L-o-v-e, and Saint Peter welcomed her into Heaven. Which word? her husband asked. Czechoslovakia. Ojo, O. O.

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About a year later, Saint Peter came to the woman and asked her to watch the Gates of Heaven for him that day. While the woman was guarding the Gates of Heaven, her husband arrived. I'm surprised to see you, the woman said. How have you been?' Oh, I've been doing pretty well since you died, her husband told her. I married the beautiful young nurse who took care of you while you were ill. And then I won the lottery. I sold the little house you and I lived in and bought a big mansion. And my wife and I traveled all around the world. We were on vacation, and I went water skiing today. I fell, the ski hit my head, and here I am. How do I get in?'

REWARDING PRODUCTIVITY

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A KIND LAWYER

ne afternoon, a lawyer was riding in the back of his limousine when he saw two men eating grass by the road side.

But Sir, I have a wife with six children! the second man answered. Bring them as well! They all climbed into the car, which was no easy task, even for a car as large as the limo. Once underway, one of the poor fellows says Sir, you are too kind. Thank you for taking all of us with you. The lawyer replied No, you don't understand, the grass at my home is about three feet tall! Ojo, O. O.

He ordered his driver to stop and he got out to investigate. Why are you eating grass? he asked one man. We don't have any money for food. The poor man replied. Oh, come along with me then. But Sir, I have a wife with two children! Bring them along! And you, come with us too! he said to the other man.

Editorial Board Members Federal Government Inaugurates National Salaries, Incomes And Wages Commission's Board About The Board Members The Executive Chairman Bio-Brief: Alhaji Ibrahim Abdullahi, mni Bio-Brief: Mrs Titilayo Oluremilekun Iroche,OON Bio-Brief: Ambassador Abdullahi M. Bage Bio- Brief:Ag. Secretary to The Commission, Thompson, Emmanuel Afolabi A Poem in Honour of Chief (Sir) R.O. Egbule, The Retiring Secretary to The Commission An Attestation Presented By The Department of Evaluation and Grading, In honor of Chief (Sir) R.O. Egbule, The Retiring Secretary to The Commission The Politics and Power of Implementing Strategic Changes In Public And Private Organization: An Overview Implications of Job Evaluation as It Affects Regulated and Deregulated Unified Salary Structure The National Salaries, Incomes and Wages Commission Maiden Bulletin Launched Tenure of Office for Permanent Secretaries and Directors Be Dedicated and Self Disciplined Egbule Tells Staff of Commission Liberian Officials Visit National Salaries, Incomes, And Wages Commission Strike? Strike?? Strike & Strike: Job Evaluation, the Only Way Forward A Synoptic Preview of the Concept of Job Evaluation for Wages and Salary Administration The Invisible Hand in the Macro-Economic Framework in Nigeria Compensation Economic Issues and Roles of Compensation Economist Overview of the System of Wage Determination and Administration in the Federal Public Service Photo Gallery Bullet inspiration/its worth the read Humour Pass ward to get to haven

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EDITORIAL BOARD MEMBERS


Chief R. O. Egbule Dr. E. A. Thompson Engr. D. I. Nyikyaa Mr. O. O. Ojo Mr. A. A. Osodi Mr. C. O. Ogbujuakpa Mr. M. I. Eseigbe Mr. A. C. Adighiogu Mrs. N. A. Ozoemena Mrs. E. N. Iwuoha Mrs. A. Y. Okoye Mrs. M. U. Nwauju Mrs. A. Yusuf Mr. O. Aborode

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Ag. Secretary/Editorial in Chief Editor/Chairman Editorial Board Member Member Member Member Member Member Member Member Member Member Member/Secretary

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PULL OVER!
highway patrolman pulled alongside a speeding car on the freeway. Glancing at the car, he was astounded to see that the elderly woman behind the wheel was knitting! The trooper cranked down his window and yelled to the driver, PULL OVER! No! the woman yelled back, Cardigan!

The Quarterly Bulletin of the National Salaries, Incomes and Wages Commission

Letters to the Editor should be short, precise and typed with double spacing to make for clarity and easy editing. All correspondence should be addressed to The Editor -in-Chief National Salaries, Incomes & Wages Commission Wing B, 3rd Floor, Federal Secretariat Complex, Phase 1, Shehu Shagari Way, P.M.B. 346, Garki, Abuja. 09 - 6720336 seccom@nsiwc.gov.ng www.nsiwc.gov.ng

Ojo O. O.

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SALARIES & WAGES BULLETIN, DECEMBER 2009

FEDERAL GOVERNMENT INAUGURATES NATIONAL SALARIES, INCOMES AND WAGES COMMISSION'S BOARD

HUMOUR

behavior.

MORALITY IN BUSINESS
man is an open ended self transcending being with psyche and material needs which legitimize a pantheon of norms, standard and ethical

POTENT WATCHWORD

eople do not talk much about issues that concern them in particular,

Most of us are brought up to put on a brave face for the world in cases of adversities We exhibit an outward appearance of normalcy, Sometimes we give in to anger and rage which we regret later and then over look, The mind is ordinarily calm but when shaken it burst like fire ball and explodes, A person under stress for a long time without soothing of any kind is likely to explode in rage, You have to settle with your past before you make peace with the present, Children who were abused turn to be abusers later in life.

Most people do not examine their moral believes critically especially in relation to the business they engage in or run. Criticism of our moral acts and assumptions is necessary because we make moral mistakes which may affect others negatively. It is the business of a philosopher to wake people up from their slumber particularly their moral slumbers.
The Board members pose for agroup photograph with Alhaji Mahmud Yayale Ahmed, the Secretary to the Government

he Secretary to the Government of the Federation, Mallam Mahmud Yayale Ahmed (CFR) has charged the new Board of the National Salaries, Incomes and Wages Commission to intensify salary inspection exercise in the Public Service to ensure that payments of unauthorized remuneration packages are promptly discovered and redressed. In this way, the bloated wage bills of Government would be put in check. The Secretary to the government made this statement Monday, 31st August, 2009 while inaugurating the new Board of the Commission. According to him, as an agency charged with the responsibility of determining the remuneration package for every post in the Federal Public Service, the reconstitution of the Board could not have come at a more auspicious time given the fouled industrial relation atmosphere in the country. Mahmud Yayale Ahmed, the Secretary to the Government, recalled that following the recommendations of various ad hoc Commissions appointed by Government over the years to reform the Public Service, the Commission was established with the inauguration of its maiden Board on the 9th of October, 1992. Since then, it has contributed in no small measure in lifting up the level of pay in the Public Service and has played a very significant role in proffering useful advice to Government and labour unions in industrial relating issues pertaining to wage reviews. The Secretary to the Federal Government recalled that the Commission has played a vital role especially in the

harmonization of salaries in 1998 to monetization of fringe benefits in 2003 and from the review of the national minimum wage in 2000 to the consolidation of salaries in 2007. Continuing, he stated that members were selected based on their track records of professional competence, unassailable integrity, proven commitment and dedication to the service of their father land. He therefore, advised members of the Board to bring up a well thought out National Wage Policy since the Board is a tripartite one with representation from labour and organized private sector. The Secretary noted that the country is desirous of improving private productivity in the Public Service in particular and the economy in general. Speaking earlier on behalf of other colleagues, the Chairman of the Board, Chief Richard Onwuka Egbule thanked the Government for selecting them for the new Board. He told the Secretary to the Government of the Federal that with the confidence imposed on them that they will not fail. Other members of the Board are as follows: ? Mrs. Titilayo Iroche ? Ambassador Abdullahi M. Bage ? Alhaji Ibrahim Abdullahi ? Barister Eric Aworabhi ? Engineer Ade Edeki ? Alhaji Ahmed Tahir, mni ? Alhaji Dahiru Ibrahim ? Mr.Femi Mokikan ? Dr. Peter Ozo-Eson.

Philosophers, Professionals, Administrators must come to terms with the role of morality in business. Otusanya S. O. (Stores) Recovering from depression begins with releasing the pains of the past. Self loathing is married to guilt. Pretending everything is okay is like putting bondage on cancer Otusanya S. O. (Stores)

TELL ME WHAT I AM
snake and a rabbit were racing along a pair of intersecting forest pathways one day, when they collided at the intersection. They immediately began to argue with one another as to who was at fault for the mishap. When the snake remarked that he had been blind since birth, and thus should be given additional leeway, the rabbit said that he, too, had been blind since birth. The two animals then forgot about the collision and began commiserating concerning the problems of being blind. The snake said that his greatest regret was the loss of his identity. He had never been able to see his reflection in the water, and for that reason did not know exactly what he looked like, or even what he was. The rabbit declared that he had the same problem. Seeing a way that they could help each

other, the rabbit proposed that one feel the other from head to toe, and then try to describe what the other animal was. The snake agreed, and started by winding himself around the rabbit. After a few moments, he announced, You've got very soft, fuzzy fur, long ears, big rear feet and a little fuzzy ball for a tail. I think that you must be a bunny rabbit! The rabbit was much relieved to find his identity, and proceeded to return the favour to the snake. After feeling about the snake's body for a few minutes, he asserted, Well, you're scaly, you're slimy, you've got beady little eyes, you squirm and slither all the time, and you've got a forked tongue. I think you're a lawyer! Ojo, O. O.

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bullet i nspiration
s she stood in front of her 5th grade class on the very first day of school, she told the children an untruth. Like most teachers, she looked at her students and said that she loved them all the same. However, that was impossible, because there in the front row, slumped in his seat, was a little boy named Teddy Stoddard. Mrs. Thomas had watched Teddy the year before and noticed that he did not play well with the other children, that his clothes were messy and that he constantly needed a bath. In addition, Teddy could be unpleasant. It got to the point where Mrs. Thomas would actually take delight in marking his papers with a broad red pen, making bold X's and then putting a big "F" at the top of his papers. At the school where Mrs. Thomas taught, she was required to review each child's past records and she put Teddy's off until last. However, when she reviewed his file, she was in for a surprise. Teddy's first grade teacher wrote, "Teddy is a bright child with a ready laugh. He does his work neatly and has good manners.... he is a joy to be around." His second grade teacher wrote, "Teddy is an excellent student, well liked by his classmates, but he is troubled because his mother has a terminal illness and life at home must be a struggle." His third grade teacher wrote, "His mother's death has been hard on him. He tries to do his best, but his father doesn't show much interest and his home life will soon affect him if some steps aren't taken." Teddy's fourth grade teacher wrote, "Teddy is withdrawn and doesn't show much interest in school. He doesn't have many friends and he sometimes sleeps in class." By now, Mrs. Thomas realized the problem and she was ashamed of herself. She felt even worse when her students brought her Christmas presents, wrapped in beautiful ribbons and bright paper, except for Teddy's. His present was clumsily wrapped in the heavy, brown paper that he got from a grocery bag. Mrs. Thomas took pains to open it in the middle of the other presents. Some of the children started to laugh when she found a rhinestone bracelet with some of the stones missing, and a bottle that was one-quarter full of perfume. But she stifled the children's laughter when she exclaimed how pretty the bracelet was, putting it on, and dabbing some of the perfume on her wrist Teddy Stoddard stayed after school that day just long enough to say , "Mrs. Thomas, today you smelled just like my Mom used to." After the children left, she cried for at least an hour. On that very day, she quit teaching "Reading", "writing" and

It's worth the read...

About the Board Members

The Executive Chairman, National Salaries, Incomes and Wages Commission

Chief Richard Onwuka Egbule

"arithmetic". Instead, she began to teach "Values". Mrs. Thomas paid particular attention to Teddy. As she worked with him, his mind seemed to come alive. The more she encouraged him, the faster he responded. By the end of the year, Teddy had become one of the smartest children in the class and, despite her lie that she would love all the children the same, Teddy became one of her "teacher's pets." A year later, she found a note under her door, from Teddy, telling her that she was the best teacher he ever had in his whole life. Six years went by before she got another note from Teddy. He then wrote that he had finished high school, third in his class, and she was still the best teacher he ever had in life. Four years after that, she got another letter, saying that while things had been tough at times, he'd stayed in school, had stuck with it, and would soon graduate from college with the highest of honors. He assured Mrs. Thomas that she was still the best and favorite teacher he had ever had in his whole life. Then four more years passed and yet another letter came. This time he explained that after he got his bachelor's degree, he decided to go a little further. The letter explained that she was still the best and favorite teacher he ever had. But now his name was a little longer.... The letter was signed, Theodore F. Stoddard, MD. The story does not end there. You see, there was yet another letter that spring. Teddy said he had met this girl and was going to be married. He explained that his father had died a couple of years ago and he was wondering if Mrs. Thomas might agree to sit at the wedding in the place that was usually reserved for the mother of the groom. Of course, Mrs. Thomas did. And guess what? She wore that bracelet, the one with several rhinestones missing. Moreover, she made sure she was wearing the perfume that Teddy remembered his mother wearing on their last Christmas together. They hugged each other, and Dr. Stoddard whispered in Mrs. Thomass ear, "Thank you Mrs. Thomas for believing in me. Thank you so much for making me feel important and showing me that I could make a difference." Mrs. Thomas, with tears in her eyes, whispered back. She said, "Teddy, you have it all wrong. You were the one who taught me that I could make a difference. I didn't know how to teach until I met you!" (For those of you who don't know, Teddy Stoddard is a medical Doctor at Iowa Methodist Hospital in Des Moines that has the Stoddard Cancer Wing.)

hief Richard Onwuka Egbule was appointed the Executive Chairman, National Salaries, Incomes and Wages Commission in August, 2009 after his retirement from the Federal Public Service. He was appointed Secretary to the Commission on the 1 st January, 2007. He was until his appointment, the Acting Secretary to the Commission with effect from 17th July, 2006. He attended St. Eugene's Primary School, Aba, where he obtained his First School Living Certificate. He later proceeded to Pater Noster Secondary School, Ekwerazu, Mbaise, Imo State where he obtained his West Africa School Certificate (Division One) in 1971. He also holds a General Certificate of Education from the University of London obtained in January, 1972. Chief R. O. Egbule graduated from University of Nigeria, Nsukka with a BSc Hons (2nd Class upper) Economics in 1978. He obtained a Masters Degree in Industrial Relations and Personnel Management from the University of Lagos, Akoka, Lagos in 1990. Chief R. O. Egbule started his working career as an Administrative Officer on Grade Level 08 with the Office of the Head of Civil Service of the Federation where he rose to the post of Principal Administrative Officer on grade level 12 in 1985. He became an Assistant Chief Management Consultancy Officer in the Office of Establishment and Management Services, Lagos, in 1991, and a Chief Management Consulting Officer in the Management Services (formally Management Services and Training Department, Presidency, Lagos) in 1994. Chief R. O. Egbule was drafted by the Pioneer

Secretary to National Salaries, Incomes and Wages Commission, Chief A. O. Okafor, when it was established in October, 1992, to help him structure and build the Commission with the best professional practice. This task, he carried out most diligently, producing the needed structural framework and manning levels of the Commission without the use of any external consultant. Following the take off of the Commission under the amiable leadership of the first Executive Chairman, Owelle Gilbert Chikelu, CON, and injection of additional hands, Chief Egbule was assigned the task of heading and nurturing the then embryonic Compensation Department, one of six such Departments in the Commission. As Head of Department, he steered the Compensation Department to the prime position of the mainstay of the Commission. From there he rose to Deputy Director in 1999 and became a Director, Compensation Department in January, 2004. Chief Egbule is a Fellow of the Nigeria Institute of Management, chartered (FNIN), Assosciate M e m b e r, N i ge r i a I n st i t u te o f Pe rs o n n e l Management (ANIPM), and a Fellow Corporate Institute of Administrators (FCIA). Chief Egbule has been widely exposed both locally and internationally in workshops, attachments, study visits, training programmes organized by renowned institutions which focused on various aspects of compensation policies and pay practices, among others. He is today, a leading authority in the resolution of compensation issues in the Nigerian Public Service. 5

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It is a well known fact among his peers that Chief Egbule is as efficient in the discharge of his duties as he is amiable and unassuming. His contributions to employees' compensation in the Nigerian Public Service spans over thirty years. Among his numerous contributions are:

? Contributed immensely to the existing monetisation of fringe benefits in the Federal Public Service ? Revision of the National Minimum Wage (2000). A detribalized Nigerian, Chief Egbule has assisted numerous people accross the Country in so many ways to develop academically and professionally. He is incisive in his analysis of issues and has remained over the years a leading authority in compensation policies and practices in the Federal Public Service which has also earned him respect among his contemporaries in the labour unions across the country. Those who are involved in collective bargaining will appreciate the caliber of his personality and the depth of his professional knowledge which has made him a reliable encyclopedia of Public Service compensation policies and practices. Based on his numerous contributions to the upliftment of Nigerian workers, Chief R. O. Egbule was presented with the Public Service Award for Excellence in 2006 by the former President, Commander in Chief of the Armed Forces, Chief Olusegun Obasanjo, CFR. Chief R. O. Egbule is happily married with children and hails from Ehime Mbano Local Government Area of Imo State. Chief R.O. Egbule retired from the Federal Public Service after serving his fatherland meritoriously. In order to tap from his wealth of experience, he was appointed the Executive Chairman, National Salaries, Incomes and Wages Commission by the President of the Federal Republic of Nigeria on August, 2009. He has since assumed duty and has already started to impact on the lives of the Commission's staff as well as the activities of the Commission.

Launching Of Bulletin

? Secretary, Tripartite Committee on National Minimum Wage, July, 2009 to date ? Member (co-opted) Emolument Consolidation Committee; 2006 - 2007 ? Secretary, Presidential Panel on Wages, Salaries and Emolument Relativity; July, 2004 2006 ? Secretary, Presidential Committee on Mortgage Financing; April 2004 April, 2005 ? The determination of the appropriate remuneration package for the military which doused the tension and discontent within its rank and file early in 2008. ? Production of the nomenclature of pay structures in the Public Service including the Harmonised and Consolidated Salary in the Federal Public Service from 1998 2007 ? Produced the first edition of the Salaries and Wages Bulletin ? Produced the first publication of approved salaries and allowances under the hamonised Public Service Salaries Structure; HAPSS: HATISS, HAFSS, HAPPSS, and TOPSAL (2000).

The Chairman chatting with some dignitaries before the launching

L R : Director ( Administration ), W. C. Agbo ( Esq) and Director ( Compensation ), Mr. C. N. Ogbechie at the launching

L- R : Deputy Director ( Management Information ), Engr. D. I. Nyikyaa; Deputy Director ( Productivity, Prices and Incomes ), Mr. Paul Angbazo; Deputy Director ( Finance and Accounts ), Mr. O. B. Okafor and Assistant Director ( Compensation ) , Mr. K. Baba Gana at the launching

L- R: Director (Productivity, Prices and Incomes), Mr. N. E. obiezue and Director (Compensation), Mr. C. N. Ogbechie at the launching.

Director (Finance and Accounts), Mrs. M. L. Oduyemi saying the opening prayer at the launching

Some Officers from the Federal Fire service Commission at the launching

He is incisive in his analysis of issues and has remained over the years a leading authority in compensation policies and practices in the Federal Public Service which has also earned him respect among his contemporaries in the labour unions across the country.
A cross section of dignitaries A special guest making a speech at the launching

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Bio -brief

The Commissioners

The president of Federation of public service Games (FEPSGA) Mr. M.S. Ikuejamoye making a speech during the Chairman`s birthday reception.

The Chairman shaking hands with Mr. Amaebi Aloku, one of the staffs who won a silver medal in swimming event at the FEPSGA

ALHAJI IBRAHIM ABDULLAHI, mni

lhaji Ibrahim Abdullahi, mni was appointed as Commissioner, National Salaries, Incomes and Wages Commission in 31st August, 2009. He was until his appointment, an Arbitrator at the Industrial Arbitration Panel of Nigeria from 1st November, 2005 to 31st August, 2009. He attended Provincial Secondary School Zaria, Kaduna State in 1959, Ahmadu Bello University (Institute of Administration) in 1964 - 1969, University of Ife, Ile-Ife, Osun State in 1993 and Cambridge University (Centre for Management Studies), United Kingdom from 1980 - 1981. He started his working career with the then Adamawa Province of the North Eastern State (Muri Division) as Division Officer in 1972 - 1973. He later became the Liaison officer of the newly created Bauchi State Office in Lagos from 1975 1977. He was appointed Secretary, Bauchi State Executive Council, Intelligence Committee and Security Council (1978 - 1979). From there, he joined Bauchi State Water Board as the Secretary from 1979- 1980. Alhaji Ibrahim Abdullahi later became a Permanent Secretary in the Bauchi State Civil Service from 1982 - 1988, within this period he worked in various Ministries which included: Ministry of Animal and Forest Resources, Ministry of Home Affairs and Information, Office of the Secretary to the State Government. From December 1989 to August 1990 he was appointed to serve as the Administrative Secretary of National Republic Convention (NRC). Thereafter, he became a member of the Kaduna State Polytechnic Board of Governors in 1991. 7

The Chairman praying over a kola nut during his birthday reception

The Team manager, Wages sports club, Mr. S. O. Otusanya delivering a speech. With him are some members of the Wages sports club.

From March 1988 - September 1992, he served as Director - General in various State Ministries of the Bauchi State Civil Service. In 1992, Alhaji Ibrahim transferred his service to the Federal Civil Service. From 1992 to 2002, he served as Director in various Federal Ministries amongst which were The Presidency, General Services Office (GSO), Federal Ministry of Labour and Productivity, Office of the Chief of General Staff and Office of the Vice President. He was appointed as the Chairman, Bauchi State Social Democratic Party (SDP) caretaker committee (November 1992- April 1993). He was also appointed as the Secretary to Hon. Justice Kayode Eso's Panel for the Reform of the Nigerian Judiciary (December, 1993 November 1994). In November, 2002 he retired from the Civil Service after serving for the stipulated period of 35 years. After his retirement, he was first appointed as the Chairman, Visitation Panel to the College of Education (Technical) Akoka, Lagos in 2004, and later an Arbitrator at the Industrial Arbitration Panel of Nigeria (November 2005- August 2009) the position he held when he was appointed to the National Salaries, Incomes and Wages Commission Board. Alhaji Ibrahim Abdullahi was born on the 22nd November, 1944. He hails from Bauchi Local Government Area of Bauchi State. He is happily married with children.

Mrs. E. A. Osisanwo (left) and Mrs. E. N. Iwuoha (right) unveiling the cake at the Chairman`s birthday reception

The Director (Administration), W. C. Agbo ( Esq ) presenting a medal won by the wages sports club during the FEPSGA to the Chairman.

The Chairman making a speech after receiving the contingents of the Commission to FEPSGA

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Bio -brief

The Commissioners

Photo Gallery

MRS TITILAYO OLUREMILEKUN IROCHE, OON

RS TITILAYO Oluremilekun Iroche, OON (ne Agbelusi) was recalled from retirement to serve Nigeria in another capacity when she was appointed a Commissioner/Member of the National Salaries, Incomes and Wages Commission Board. She is one of the three permanent members of the Board and the only female member. The appointment was with effect from 31st August, 2009. Mrs. T. O. Iroche, who retired from the Civil Service as a nd Federal Permanent Secretary on 2 November, 2008 joined the Federal Civil Service on 2nd November, 1973 as a Translator/Interpreter-in-Training and transferred to the Administrative Officer Cadre in 1975. She steadily progressed up the civil service career ladder and reached the peak of the Administrative Officer Cadre in 1998 when she was promoted as a Director. In the course of her career and between 1973 and 1983, she served in many Ministries and ExtraMinisterial Departments, among which were the Federal Ministry of Works and Housing, the then Office of the Head of Service and the Federal Civil Service Commission from where she was seconded to the defunct National Assembly Service Commission to assist in setting it up. She was deseconded and posted to the Public Service Department of the then Office of the Head of Service after winding up the National Assembly Service Commission. She was subsequently deployed as Head of Administration in the then newly created Budget Office in the Presidency which metamorphosed into the present Budget Office of the Federation in the Federal Ministry of Finance. From the Budget Office, she was redeployed to the Political Affairs Office, Office of the Secretary to the Government of the Federation as the Director (International Organisations Department).

The Chairman responding on behalf of the Board members

Mrs. T. O. Iroche served in many capacities on ad-hoc Committees and was entrusted with many challenging national assignments. She was appointed in 2005 to serve as the Assistant Secretary (Admin) at the National Political Reform Conference. Shortly after the completion of this national assignment in February 2006, she was appointed by the President and cleared by the Senate as the pioneer Director-General of the National Lottery Regulatory Commission, a position she held until her appointment as a Federal Permanent th Secretary on 15 August, 2007. In recognition of her meritorious service to the nation and the Federal Civil Service in particular, a national honour Officer of the Order of the Niger (OON) was nd conferred on Mrs.T.O. Iroche on 22 December, 2008. Born in Ibadan on 1st February, 1950, Mrs.T.O. Iroche attended Wesley College Practicising School, Ibadan for her primary school education, St. Annes School, Ibadan for her secondary school education and the University of Ibadan from where she graduated with BSc (Hons) French in 1972. She attended various Administrative, Management and Leadership Courses/Workshops at the Administrative Staff College of Nigeria (ASCON) Badagry, Royal Institute of Public Administration (RIPA) London UK, Crown Agents, Worthing, UK, University of Pittsburgh, USA, Havard University, USA among others. Married and blessed with three children, Mrs.T.O. Commissioner, National Salaries, Incomes and Wages Commission. Iroche loves mentoring (especially teenagers) and enjoys reading, writing, singing, dancing, walking and jogging.

The Secretary to the Government of the Federation, Mallam Mahmud Yayale Ahmed (CFR), making a speech at the inauguration of the Board

The Chairman in a meeting with Board members and some senior management staff of the Commission

A cross section of Board members in a meeting

A cross section of Board members in a meeting

A cross section of Board members in a meeting

The Chairman and Board members in a meeting

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(a) The Harmonised Salary Structures (all are government treasury-funded) (b) Special Salary Structures that are treasury-funded (c) Independently-funded Special Salary Structures. The Harmonised Salary Structures are: (i) Consolidated Public Service Salary Structure (CONPSS) category or status, requires the approval of government through the National Salaries Incomes and Wages Commission. This is regardless of whatever provision in the enabling law of such organisation. Mention should be made here of the pay structure for political, judicial and certain public office holders, the determination of which is made through recommendation by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to the National Assembly, for enactment into law. The officers covered at the federal level by this structure are: the President, Vice President, Ministers, members of the National Assembly, Judges, Head of the Civil Service, full-time Chairman and Members of constitutional bodies, Permanent Secretaries and chief executives of government agencies. The inclusion of the last two categories of officers in the scheme by the RMAFC is however in contentious as the Constitution does not include them among the officers whose remuneration should be determined by the Commission. Current Developments The Federal Public Service pay system is currently undergoing some process of change or adjustment. Some of the activities in the process are: (i) the review of the national minimum wage (which may impact on public service wages) (ii) the negotiations with labour unions in the tertiary education and health sectors, which were recently concluded, and (iii) the discussions at the Public Service Negotiating Council of the demand for upward review of civil service salaries. It is expected that by January 2010 some upward reviews would have taken place. Conclusion The staff compensation system of a large organisation, such as the Federal Public Service of Nigeria, with estimated total staff strength of about one million, is as challenging as it is complex. Its great economic significance can be appreciated by the fact that wages account for between 25% and 35% of government budget. Moreover, since government is the largest employer in the country, matters of staff remuneration become a very significant factor in the economy. The role of the NSIWC and the various agencies and units responsible for the management of this great cost centre should therefore be better appreciated and public knowledge of the system and processes as well as the competence of relevant officers should be expanded and deepened. Chike N. Ogbechie Director (Compensation)

SALARIES & WAGES BULLETIN, DECEMBER 2009

Bio -brief

The Commissioners

(ii) Consolidated Tertiary Institutions Salary Structure (CONTISS) (iii) Consolidated University Academic Salary Structure (CONUASS) (iv) Consolidated Armed Forces Salary Structure (CONAFSS) (v) Consolidated Police Salary Structure (CONPOSS) (vi) Consolidated Paramilitary Salary Structure (CONPASS) (vii) Consolidated Intelligence Community Salary Structure (CONICSS) (viii) Consolidated Medical Salary Structure (CONMESS) (ix) Consolidated Health Salary Structure (CONHESS) (x) Consolidated Top Public Officers Salary Structure (CONTOPSAL) The CONMESS and CONHESS are the latest to be created and issued by a circular of 29th September 2009. Also, the reviewed versions of CONTISS and CONUASS, known as CONTISS II CONUASS II respectively have just been by a circular. The treasury-funded special salaries are applicable in a few establishments such as the Bureau of Public Enterprises (BPE), the EFCC, the ICPC, the Debt Management Office (DMO), the Petroleum Products Prices Regulatory Agency (PPPRA), Nigeria Extractive Industries Transparency Initiative (NEITI), etc. The Independently-funded salary structures include those of the Central Bank, the NNPC, the Nigerian Communications Commission (NCC), the Nigerian Ports Authority (NPA), PHCN, the Aviation parastatals, etc. It should be noted that the creation or review of any salary structure in the Federal Public Service, regardless of its

AMBASSADOR ABDULLAHI M. BAGE

mbassador Abdullahi Bage was appointed as Commissioner, National salaries, Incomes and Wages Commission with effect from 31st August, 2009. Ambassador A. M. Bage, attended ST. John`s College, Kaduna (now known as Rimi College) in 1959- 1963 where he obtained his West African Schools certificate. From 1971-1973, he attended Ahmadu Bello University Zaria, Kaduna State where he obtained Diploma in Law. He also proceeded for his law degree in the same University in 1976 1978. Ambassador A. M. Bage later went to Nigerian Law School, Lagos from 1978 - 1979. He started his working career with the High Court as a Registrar in Jos, in the then Benue Plateau State in 1973 -1978. Later he was appointed as a Magistrate, Judicial Services, High Court of Justice, Jos in the above state in 1979 - 1980. In 1981 - 1983, he was appointed as the Company Secretary/ Legal Adviser, Plateau Hotels and Tourism Company, Jos Plateau State. He applied and got a transfer to Ministry of Foreign Affairs, Lagos as Senior Counselor in International Organizations Department between 1984 and 1985; From there, he was posted overseas and served as a Desk Officer, sixth Committee ( Legal )/Head of Chancery Permanent Mission of Nigeria to the United Nations, New York in 1985- 1989. From 1985 - 1989 Ambassador A. M. Bage served as a member of Nigeria delegation to the United Nations General Assembly. He later became a

Representative of Nigeria to the United Nations Law of the Sea Conference (UNCLOS ) in Kingston, Jamaica. He was appointed Special Assistant to two Ministers of Foreign Affairs, Dr. Rilwan Lukman and Major General Ike Nwachukwu between 1989 and 1992. During this period, he contributed immensely to Foreign policy formulation and implementation. From 1992 1998, he served as Deputy Counsel- General of Nigeria, Consulate General of Nigeria Jeddah, Saudi Arabia. Between 1999 and 2000 he served as Assistant Director, in the Office of the Permanent Secretary, Ministry of Foreign Affairs, Abuja. Ambassador A. M. Bage was between 2001 and 2003 appointed Ambassador/ Secretary General, Nigeria Niger Joint Commission, Niamey, Niger Republic. He was later appointed as the first Nigerian Ambassador to the Republic of Bangladesh (2003- 2004). He was made the Director, Pilgrims Affairs Directorate, Ministry of Foreign Affairs, Abuja from 2004- 2006. Ambassador A. M. Bage was posted back to Ministry of Foreign Affairs, where he served as Director, in the Office of the Permanent Secretary from December - 2004 December 2007. Ambassador A. M. Bage retired from the Federal Republic Service on 12th December, 2007. He is happily married with children.

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SALARIES & WAGES BULLETIN, DECEMBER 2009


Some of the above elements need explanation here. Provision for annual increment in a salary structure helps to obviate stagnation and its demoralizing effect among personnel. However, emphasis on that tends to elongate the scale of each grade. For example, the lower levels of the Consolidated Public Service Salary Structure (CONPSS) have up to 15 steps (see a copy of CONPSS in the Annex). Then, if the disparity between the highestpaid personnel and the lowest-paid one (as measured by compression ratio) is not to be too wide, there would be resort to overlapping of pay levels, whereby the amounts in the higher steps of a grade are ladger than the lower steps of the higher grade. At this juncture it is useful to explain the concept of compression ratio, which measures the proportional difference between the highest paid person in a salary structure and the lowest paid one, e.g. between the Director (GL.17 step 9) and the Cleaner (GL.01 step 1) as in the Federal Civil Service. High compression ratios suggest some inequity in the structure, while low compression ratios would appear not to relatively reward upward progression or seniority. The above explanations are meant to highlight some of the challenges in the design of pay structures. The actual construction of the salary table involves the following steps: (I) determination of the minimum wage or salary; (Ii) determination of inter-grade differentials; (Iii) determination of incremental rates; (Iv) determination of limit of compression ratio; (V) computation of cost implication juxtaposing the staff strength with the draft pay scales; (vi) adjustments to acceptable patterns and levels. In pre-IT times this process was quite cumbersome and time-consuming. But with the availability of computer spreadsheet software it has become much easier, if there are competent hands to handle such applications. Process of Wage Determination The process of determination of levels of salary to pay varies according to the nature and size of the organisation. In small-sized organisations that are not part of a larger system the process is simple. In such case salaries are assigned to individual personnel by the management or a simple pay schedule is drawn up and approved. In larger or more complex organisations, such as the civil service and large firms, the process of wage fixing or review is more systematic. The process of wage review is usually initiated consequent to any of the following events: ? remarkable dipping in real wage (fall in value of the wage due to inflation) ? expiration of tenure of existing collective agreement ? wage review in other sectors or related industry ? government initiative. There are three major approaches to wage review especially in government: (i) Special Panel: A panel or committee, usually ad hoc, may be appointed to advise on pay policy and/or propose new salaries, for consideration and approval. (ii) Collective Bargaining: In this option the management and the labour unions engage in negotiation of the pay. (iii) Wage Indexation: In this case the wage levels are adjusted almost automatically on an annual or multi-annual basis, to compensate for inflation in the immediate past years. In the Nigerian government system option (i) above has been the most preferred one. However, option (ii) is well practised in certain organisations such as the Central Bank, the NNPC, PHCN, the Aviation parastatals and the Tertiary Education sector. That option is well established in the organised private sector. In the Civil Service there are the Public Service Negotiating Councils, which serve as fora for collective bargaining, but the system is not as regular in wage determination as expected. The Presidential Committe on Pay Consolidation (the Shonekan Committee) recommended collective bargaining as the most viable option, which was endorsed in the subsequent government white paper of 2006. But it will probably take some time to fully institutionalise the system. As for wage indexation, it has never been regularly practised in Nigeria. Whereas it has been successfully operated in industrialised countries such as in Europe, in developing countries such as in Latin America, it contributed to complications in the monetary system including runaway inflation. From such experiences, therefore, it is not advisable for Nigeria in the meantime. The Existing Salary Structures The Federal Public Service pay system is made up of a considerable number of salary structures, which can be summarised into the following categories:

Bio -brief

Ag. Secretary to the Commission

THOMPSON, EMMANUEL AFOLABI

August, 2009. He was appointed as the Director, Management Information Department on 3rd March, 2008. Prior to joining the Commission, he was the Deputy Director in charge of the Computer Services Division in the Raw Materials Research and Development Council (RMRDC). He graduated from University of Ibadan, with a B.Sc in Computer Science in 1982. He was awarded an honorary Doctorate Degree by the Institute of Journalism and Management, Enugu, an affiliate of California Christian University, USA. Born on 11
th

r. E. A. Thompson is currently the Ag. Secretary to the Commission with effect from

Ilesa East Local Government Area of Osun State and started his working career with theOyo State Ministry of Finance (1983-1987) as a System Analyst/Programmer and rose to become the head of the Oyo State Computer Centre. He joined the Joint Admission and Matriculation Board (JAMB) as a Senior Analyst/Programmer from February 1987 to March, 1990. Dr. Emmanuel Afolabi Thompson joined the Raw Materials Research and Development Council (RMRDC) in April 1990 as an Assistant Chief System Analyst/Programmer and rose to the post of Deputy Director, Computer Services Division in 1996; a post he held until his new appointment. Dr. Thompson is a member of many professional bodies including the Nigeria Computer Society, Computer Professionals (Registration Council) of Nigeria and Nigeria Instiute of Management (NIM). He has attended several professional courses, conferences and seminars in Nigeria and abroad. He has worked as a consultant to many government and non- government agencies, ministries and parastatals and engaged in many information technology projects in the organized private sector. He is happily married with children.

September, 1959, Dr.

Emmanuel Afolabi Thompson hails from

Compression ratio is the proportional difference between the highest paid person in a salary structure and the lowest paid one

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SALARIES & WAGES BULLETIN, DECEMBER 2009

OVERVIEW OF THE SYSTEM OF WAGE DETERMINATION AND SALARY ADMINISTRATION IN THE FEDERAL PUBLIC SERVICE
Introduction his paper was initially meant to give insight into the process of wage fixing in the Federal Public Service of Nigeria. But it eventually emerged as a sort of information manual on broad issues and processes of salary administration. Even though it may not be comprehensive to cover the entire breadth and depth of the subject, the paper at least provides the essentials, especially in the context of the experience in the Federal Public Service. Historical Background The current pay structure in the Federal Public Service can be traced back to the outcome of the work of the Public Service Review Commission (Udoji Commission) of 19721974, which brought the hitherto numerous salary structures in the public service into the United Grading and Salary Structure (UGSS). At that time all public servants in both the Federal and State services (except the armed forces) were in the UGSS. Progressively various sections of the public service moved out of the UGSS, starting with the universities (1982). Later, all tertiary educational, research, training and allied institutions joined the universities in their pay structure. In the late 1980s the Police, and later, the other uniformed (paramilitary) services were moved out to have their own salaries structures. The trend continued up to the present time and the evolution still continues. From the late 1970s there evolved a trend of proliferation of regular allowances and perquisites, which were added on to the salary. That got to a head when in sectors like tertiary education, the number of allowances came to 16 for academic staff, making the Nigerian public service unique in that regard. This was stemmed with the Monetisation policy of 2003 and the Pay Consolidation of 2007. Factors in Wage Determination In the determination of wages/salaries a number of factors influence the decision. These are:

A POEM IN HONOUR OF CHIEF (SIR) R.O. EGBULE; THE RETIRING SECRETARY TO THE COMMISSION
35 Minus 34 years = 1 Tick, tock, Tick, tock, Tick, tock The clock of life keeps ticking on A moment added, a moment deducted A minute added, a minute deducted A day added, a day deducted And our lives keep ticking on Each day is recycled With overwhelming routines And each New Year With much in store Unknown, unexperienced, unexpected Uncalculated the end suddenly come Day after day, year after year We all gradually withdraw to the final retirement in style with the title (Rtd) From life's inexhaustible bank And deposit into our eternal accounts A day added Translates into a day deducted From the budgeted days of our lives, it is + 1 1 + 1 1 Until the finality strikes And so the accounting life of any career Civil Servant comes to a glorious end and is continually kept 35 glorious years has swiftly grounded To an eternal halt. Other is swiftly Bulldozing into our records And we'll again begin The recycling of moments, days and years. At work we'll Wake. Greet. Cook. Eat. Excrete. Grow. Speak. Quarrel. Fight. Reconcile. Laugh. Think. Work. Celebrate. Mourn. Rejoice. Marry. Produce. adinfinitum all in the work place Busy here. Busy there in Negotiations with ASUU, NMA, the SGF, Ministry of Labour and NLC So involved in time That we have no time Engulfed in the eternal recycling of Time Time for everything but often No time for timelessness Sometimes slow. Sometimes fast. Sometimes wasted. Sometimes saved Tick, tock, tick, tock, tick tock, tick, tock +1-1+1-1 Minute added. Minute deducted Years added, Days deducted From our budgeted years Till our accounting sheet is filled to 35 years in the service or 60 years of chronological age Our service trial balance sheet is at credit/debit equilibrium And the time of accounting Grips us unawares As our bodies Once active, agile and dynamic Become eternal prisoners of time and audibly say so, time is short See how time flies!!! Each addition and deduction Should constrain us To drink deep the fact That life is a simple mathematics while in service Of addition and subtraction And the time of reckoning Of giving account Will soon grip us unawares However busy, or idle Powerful or weak; rich or poor Our career here Will soon be concluded As we count moments, days, and years We should make our lives count Apply our hearts unto wisdom that one day we shall all retire To crosscheck our account Our debits and credits in our Personal file in Administration Department Living each day As the very last As we herald in the post Egbule era Let's be submissive Let's surrender and submit ALL To the Chief Accountant of our time Master of moments, days and years Whose time Is eternal Without pluses and minuses The Ancient of days Our tomorrows Soon will metamorphose Into todays As our todays transform into yesterdays, let no one remind us, all, it is +1-1+1-1 As every future becomes a past Till our accounting book of meritorious/ otherwise service is closed And we are confronted With the reckoning and accounting Of our earthly time Let's serve like Chief (Sir) Egbule The great trainer of our time The indefatigable and consummate Administrator Motivator of our moments on whose shoulder we all rode on to get to where we are Days and years in National Salaries, Incomes and Wages Commission In every area and in all things Till the close of our days when each of us shall retire and add the appellation of (Rtd) Tick; Tack; Tick; Tock; Tick; Tock; Tick; Tock +1-1+1-1+1-1

workers there will usually be a pressure for wage increase. (ii) Industrial Relativity: Wage levels within a particular industry in an economy normally compete, leading to the tendency to have comparable levels of pay.

(iii) Industrial Relations Pressure: In unionized industries pressure from trade unions often contribute to higher wage levels. (iv) Affordability or Ability to Pay: The ability of the employer to cope with the wage bill is an important determinant of pay. (v) Productivity: A rational and business-like employer would take into consideration the improvement in productivity of the personnel or contribution to profit attainment or organisational objectives, in determining wage levels, for either the general group or individual employees.

(vi) Government Policy: Government policy, through administrative regulation/order or legislation, can serve as direction for wage fixing or review. An example of this is the National Minimum Wage Act. Design of Salary Scales and Associated Challenges The designing of salary structures is a technical exercise that has some guiding principles. The structure is made up of the salary table or scales and the explanatory notes attached to it. In preparing it a number of variables are taken into account, some of which are: ? the grading structure among the personnel ? ? ? relative ranking in the grading structure need for annual increments desirability or not of elongation of scales concern about pay disparities among personnel compression ratio.

(i)

Cost of Living (inflation) Trend: Where the real wage has fallen to a level that impinges significantly on the economic life of

The ability of the employer to cope with the wage bill is an important determinant of pay.

Our time is so short We can waste it, we can save it At the end when we look at our time T account We feel we have not done much So, spend your time wisely to have the likes of Chief R. O. Egbule +35-1-1-1-1-1-1-1-1 = 0 Prince Oyeyemi M. Titiloye Deputy Director (E&G)

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SALARIES & WAGES BULLETIN, DECEMBER 2009

AN ATTESTATION PRESENTED BY THE DEPARTMENT OF EVALUATION AND GRADING, IN HONOUR OF CHIEF (SIR) R.O. EGBULE, THE RETIRING SECRETARY TO THE COMMISSION

chieving an effective fiscal discipline in the macroeconomic arrangement in Nigeria is one of the 7 point Agenda of the present government, aimed alleviating poverty in the economy. National Salaries, Incomes and Wages Commission, has over the years provided the enabling policy Frame Work in consonance with the macro-economic expectations in the public sector. Planning, organizing and controlling of those activities that relate to the direct and indirect payments made to employees for the work they perform or the services they render is one of the important roles that the Commission plays as a pre-requisite for achieving a realistic remuneration policy and crisis-free wage determination process in the country. The Commission performs the following functions among others: ? Examining the pay structures in the public and private sectors and recommending a general wages frame work, which are in consonance with the nation's economy ? Carrying out research and surveys on wage structures. ? Examining, streamlining and recommending salary scales applicable to various offices in the public service. ? Providing information to the Federal Government on current and incipient trends in wages, should be limited and examining the current rates of retirement benefits, and as well as proposing periodic review of the same. The manner in which the Commission has carried out these professional tasks provide the invisible hand in coordinating the various macro-economic indices of economic development. This can be seen in the policy thrust of major instruments of economic policy like promoting investment, price stability, and productivity, optimum allocation of manpower and overall economic growth and development. Compensation as an instrument of social policy, ensures equity and social justice in employment and maintains industrial harmony in the economy. The principle of wage relativity demands that workers of comparable ability and training and performing comparable jobs, should receive comparable compensation. The Commission carries out analyses of economic policies and macroeconomic evaluation that balances effort and reward, because when a worker in an establishment compares his earnings with those of other workers doing the same or different jobs within the same establishment, harmony is achieved. To the employee, the compensation package constitutes an index of economic well-being. Consequently, workers always attach a lot of importance

THE INVISIBLE HAND IN THE MACRO-ECONOMIC FRAMEWORK IN NIGERIA- COMPENSATION ECONOMIC ISSUES AND ROLES OF COMPENSATION ECONOMISTS.
to compensation issues because the resolution of such issues often makes the difference between living and existence, for the majority of the labor force. Evidence abound that virtually every industrial dispute in Nigeria, particularly in recent times, contain some overt or covert worker dissatisfaction with the compensation system. The Commission has created the forum for harnessing the views of a cross section of the public on various aspects of its responsibility to enable it formulate an enduring national pay policy. Recent statistics show that wages and salaries represent 42% of the total values of goods and ser vices produced in Nigeria (GNP).Compensation policy is used to combat cost-push inflation. The fact is that the economies of Sub-Saharan Africa suffered from structural bottlenecks and rigidities which include among other things, under-developed money and capital markets, which are spatially fragmented, highly unorganized, externally dependent, economic dualism and economic fragmentation. In developing and communicating compensation policies and plans, the Commission has successfully installed the invisible hand of policy thrust in the Nigerian Labor Economy by: ? Motivating employee to optimum job performance by offering various incentives to make the employee more productive and efficient. ? Controlling employer's cost by establishing policies, methods and procedures for making costs competitive, consistent and commensurate with employee contribution. ? Providing a basis for effective hiring, utilization and promotion of employees. ? Promoting harmonious employee-employer relations by paying a fair day's work, thereby macro-economic advantage of equity. A major critical constraint of macro-economic policy making in Nigeria is the dearth of accurate, reliable and timely data. Shortage of data seriously constrains macroeconomic designs and analysis. The National Salaries, Incomes and Wages Commission has provided adequate data base for achieving all these goals. With adequate professional manpower at the disposal of the Commission, achieving the macro-economic objective of invisibly placing the Labor Market to harmonious existence and the realization of satisfactory wage and salary administration are more or less the basis of Compensation economics. Ezeanwu Emeka Clement Compensation Department

"Everything rises and falls on leadership," says Dr. Maxwell, "but knowing how to lead is only half the battle. Understanding leadership and actually leading are two different activities." Dr. Maxwell explains that the key to transforming yourself from someone who understands leadership to a person who successfully leads in the real world is character. Chief Egbule joined the Federal Civil Service as an Administrative Officer, Grade Level VIII with effect from 31st July 1979. He holds the following educational and professional qualifications among others B.Sc. degree in Economics (Second Class Upper Division) M.Sc, Personnel Management and Industrial Relations, ACIPM, FNIM and FCIA. Chief Egbule has been trained in Management Consultancy, Evaluation/Grading Operations, Wage Determination and Wage Fixing, Salary Administration and Industrial Relations both locally and internationally. In addition, he has undertaken study tours on Wage Fixing and Adjustment mechanisms in U.K, Sweden, Switzerland,

Malaysia, Singapore, South Africa, Netherlands, etc Richard, as one of the pioneer staff of the Commission, has had an unbroken service in this Commission from its inception in October 1992. While in the Commission, he assisted the pioneer Secretary, Chief A. O. Okafor, to establish its structure and operational techniques. He transferred his service to the Commission and rose from the post of Chief Management Consulting Officer, GL 14 to the post of Director of Compensation, GL 17 in 2004. Chief Executives of the Commission, who never met each other, have identified the officer's consistent impressive performance in the service of the Commission at different times. This and many more are what makes his managerial capacity very thick and uncommon. For Chief Egbule, the goal of Management is to help an organization to meet strategic goals by attracting, retaining and maintaining employees and to manage them effectively for efficient productivity.

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Characteristics of the Weighted-in-Points Method There are eight major characteristics of this method: (i) Most popular method but difficult to understand. (ii) Provides a scale or yardstick (iii) Utilizes compensable factors common to the group. (iv) Utilizes differentiating degree or graduation for each factor. (v) Defines and weighs factors and degrees. (vi) Measures jobs in component parts. (vii) Adapts to large organization. (viii) Adapts to diverse job groups. 10.3 Establishing Factors and Weights In establishing the factors against which the jobs are compared, a great deal of study is made as to what factors can best be used in comparing the jobs. Once the factors have been chosen, it is then possible to refine the process further by weighting the factors. This procedure allows the assigning of the proper value that each factor contributes to the overall value of the job. Prince Oyeyemi M. Titiloye, BSc, MPA, mcipm, mimc, mitd APPENDIX DEFINITION OF SELECTED CONCEPTS OR WORDS 1. Bench-mark Job: A well known job in the organization where there is no disagreement on the price or wage set for the job. Other jobs in the organization can be compared against it to ascertain if the job is better than or worse than the benchmark job on any factor. Factor: The job characteristic that contributes to producing a result or the features of a job that 7. Personnel specification: Establishing the pay scale to the job grades. This involves the original installation of the wage structure as well as the yearly adjustments of the pay scale. Job questionnaire: An instrument for Job Analysis. 2. are important to the success of the job. The basic part of the job evaluation manual against which all jobs will be compared e.g. knowledge, complexity, work conditions, physical efforts e.t.c. 3. Job Analysis: A systematic collection of all information about a job to determine its requirement. Job Description: A written document to record job contents and scope in a standard forma;t a description of the requirements of the job. Job Specification: A list of the requirements of each of the factor rather than listing the duties. The specification is usually divided into sections parallel with the factors listed. Wage Administration Establishing the pay scale to the job grades. This involves the original installation of the wage structure as well as the yearly adjustments of the pay scale.

SALARIES & WAGES BULLETIN, DECEMBER 2009

Chief Egbule is approachable and yet the most impenetrable of men, easy and delightful of acquaintance, impossible of total comprehension; who could be liken to Thomas Jefferson, who was all things to all men.
Given this understanding, if you remember the story told by Goleman in his book, he talks about the components of emotional intelligence arguing that this theory accounts for characteristics that are beyond pure intellect. It is therefore fitting to include intelligence as the first, and essential, quality of a leader. Leadership and managerial acumen, political savvy, a deep understanding of socio-economic issues, knowledge these are all ways to describe the intelligent quality of a leader like Richard Egbule. As an effective leader, he has a good understanding and perception of what needs to get done and how to go about changing things. He is a leader, who has a drive and passion that goes beyond money or status. Every minute spent with him propels a new wave of knowledge and wisdom. Most importantly, Chief Egbule has very high ability to manage relationships and networking for uncommon success. Deducing from Bass's theory of leadership, we could vividly portray solemnly that Chief Egbule's leadership development is a product of nature, event and people's choice. Nature, because of his outstanding personality trait; event, because, when the Commission was about experiencing a headship interregnum, he was the messiah; and indeed, people's choice, because the Commission needed that transformational leadership. This, no doubt, has kept him impeccable, thus, his alluring leadership style is a mark of perfection in character of selfless service. A man that knows himself and practices self-improvement; who is technically proficient and makes sound and timely decisions; sets examples and knows his subordinates, as well as looks after their well-being. He develops a sense of responsibility in his staff, recognizes the importance of training and work force development and makes use of full capabilities of the Commission. Our leader is one with a listening ear, who runs an open door policy with uncommon commitment to welfare services of workers. Richard Egbule of all our great leaders in the Commission was the most orderly and most proactive. He was also the most controlled. The celebrated equanimity of his temper crystallized in his pronouncement hardwork and diligence is our passion; extended to his private as well as his public life. Chief Egbule's acquisitiveness particularly in regards to providing good work environment/materials was legendry in his own time. He had a superb sense of work history and an exact understanding of his role in it. His orderliness reached such proportions that, it can be properly called compulsive. You must be at alert if you must work with Chief Egbule. Chief Egbule, for all his prodigious industry in Salaries a n d Wa g e s a d m i n i s t r a t i o n , P a y r e s e a r c h , Evaluation/grading, Productivity scheme development, and Compensation, as well as preserving his personal record in what he understood perfectly to be a heroic age has always defied definitive portraiture. Richard Onwuka Egbule is approachable and yet the most impenetrable of men, easy and delightful of acquaintance, impossible of total comprehension; who could be liken to Thomas Jefferson, who was all things to all men. He is a man of unequal personality. In the words of Ralph Waldo Emerson, 'Each man is a hero and an oracle to somebody. Living by this phenomenal truth, Chief Egbule's effective leadership diameter has beckoned his heroism in the minds of many Nigerians. As an oracle, his professional commitments have transformed the lives of many Nigerians, especially public servants, thus his leadership decisions in their pay rise have been quite commendable. He focuses on structure, strategy, environment, implementation, experimentation and adaptation as weapon for the realization of the Commission's objectives. He takes delight in effectively supporting, advocating and empowering daunting situations; believes in people and allows decision making to trickle down in the organization. His excellent ways of distributing powers, interests, building linkages and using persuasion, negotiation and coercion makes him a master of Hans Morganthau's philosophy. With his revolutionary tempestuouisty, Chief Egbule adopts what we may call 'managerial humanism' that is management with the human touch. Managerial, because, it encourages the maximization of the success of the Commission. Humanism, because, it frees the workers from the dehumanizing shackles of managerial exploitation, administrative oppression and social degradation. He seems to cast himself as a man of dignity, brought into the world to liberate his people from every managerial phobia and trepidation. Chief Egbule is a colossus; with high intellectual capital that enables him quiz his employees in relation with stemming the tide to achieving the goal of the Commission. Reinforcing the above, Chief Egbule is a motivator who has clear directions and priorities. He is an advocate of managerial collectivism. That is, if the management is composed of more than one person, they should discuss matters among themselves, thus before disseminating information. This is core of motivation not just material incentives, thus confidence, communality, peace and unity of purpose are built through this uncommon relationship. In this Commission, every employee sees himself/herself as a stakeholder, because of the motivational culture of Chief Egbule. Egbule, as we have seen believes in what Herzberg had suggested, Money is never in fact a motivator, but only a 'hygiene factor', which can just as easily demotivate people if it is thought to be adequate. It is enriching of their jobs that Egbule considers best way to motivate.

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BULLETIN

The key to succeeding is to learn to deal with the tension of whatever position you are in, overcome its obstacles, and make the most of its advantages and opprtunities. If you do that, you can succeed from anywhere in the organization
John Maxwell
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f) Judgment g) Decision making h) Environment ANALYTICAL OR QUANTITATIVE SYSTEM FACTOR COMPARISON METHOD It is generally accepted that the non-quantitative job evaluation systems are very subjective in nature and leaves a lot to be desired when applied to a large number of diversified jobs. To over come some of the weak points in the non-analytical system, two main techniques, factor comparison and weighted in- points were developed for evaluating jobs in a quantitative manner. Factor comparison method is a quantitative method of evaluating jobs against others without a pre-determined scale. Jobs are related by factor comparison. This approach entails the selection of factors and a predetermined weight (ranking of importance in relation to 100%). The factors most generally chosen are: skill, responsibility, mental requirements, physical requirements and working conditions. All jobs are ranked in order of importance of each of these factors and receive money value for their position in their rank. The total money value for the five rankings for each job is the wage to be paid for that job. CHARACTERISTICS OF THE FACTOR COMPARISON METHOD (i) Utilises significant compensable factors usually 3 to 5. (ii) Utilises key jobs selected to represent each major level of duties, responsibilities and skills within range of jobs to be evaluated. (iii) Compares jobs factor by factor and rank from low to high. (iv) Proportions of total current pay to each in correlation to ranking. (v) Evaluates other jobs to key bench mark values. (vi) Adds factor values to determine total job value. Installing the System The first five steps i.e. steps I v- are same as 7.2 Step VI: Prepare Job Specification There should be a job specification to accompany each description. This explains the minimum requirement for

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each job in terms of factors being used. Step VII: Select the Factors Usually only five factors are used mental requirement, skill physical requirement, responsibility and working conditions. Step VIII: Define the Factors A definition must be written to explain clearly what the factor is actually measuring. Step IX: Select the Key Jobs These are bench-mark positions. Step X: Review Job Description and Factor Definitions A review should be made to ensure agreement and uniformity. Step XI: Rank the Factors Using the description and specializations for each job the job are ranked in the order of importance on each of the five factors. Step XII: abase wage rate is established for all the ranked key jobs Step XIII: Evaluate all other Jobs All remaining jobs to be evaluated are ranked or compared against the job comparison scale. Step XIV: Assign Jobs to Pay Grade You may group jobs with similar pay levels into a pay grade and assign one level of pay for those jobs. ANALYTICAL OR QUANTITATIVE SYSTEM WEIGHTED-INPOINTS METHOD This is a very popular method of job evaluation. This method compares each job against a predetermined job factor (characteristic) and assigns point values for that characteristic. The job that receives the most points is considered the most desired and/or important and receives the most wages. A summative definition of this method could be given as a systems that measures a job factor by factor against a pre-determined scale of relative value and provides a quantitative job-to-scale measurement i.e. jobs are related by factorial analysis.

Chief Egbule's motivational perspective supports the obviousness and blatancy that the case of pay reform in the public sector is an impeccable one. According to him, we must resolve to make the public service more effective in supporting the execution of government policy through the introduction of a pay system that will help attract, retain and motivate first rated professionals. With the benefit of hindsight, Sir Egbule also is a campaigner that the Public Service Pay Structure should be such that can encourage people to move from the private sector to the public sector and vice versa. Permit me to add here that, in as much as Chief Egbule wants the greatest happiness for the greatest number of people, as the Utilitarian may say, he is a lover of hardwork. With all incisiveness in thinking and action, Richard Egbule believes that work planning bridges the gap between where we are now and where we want to be; he believes in formulating and developing grand designs that have brought changes where desirable and advantageous. He is a work planner, who takes into cognizance the four central factors in work planning, which are embedded on knowing the nature of resources; weighting the performance; assessing and evaluating situation and above all, foreseeing the future goals. Chief Richard Egbule has always apply distinction in identifying the problems of salaries and remuneration of workers in the public service, developing tentative and permanent solutions to those unwanted factors that could dwindle and drop off the statutorily responsibilities of this Commission. For this experienced technocrat- Chief Richard Egbule effectiveness is all about allocating time prioritizing- to the important out-put requirements of the job, the key result areas. The compensation expert believes that, once priorities are established, efficiency becomes a vehicle for achieving desired goals. Despite the mean period as the accounting officer of this Commission, Richard Onwuka Egbule has broadened the statutory horizon and

prospects of this Commission, through a grand design embedded on work planning, controlling and priority goals setting. To this effect, we cannot quench this thirst of admiring his alluring professional beauties. The 'Backroom Boy' as fondly called, lives for the masses, his energy is so consumed by the demands of managerial existence that he has little time for leisure and high jinks. He is totally inundated and dutiful to the socio-economic upliftment of the work force and the nation's public and private workers. Chief Richard Egbule is a chivalric idol for people to worship. Egbulee is not merely the pragmatic and charismatic manag r of the Commission but also its ideologue, tactician and theoretician. Chief Egbule has radicalized its managerial politics, revolutionalized its tactics, and strategies of moving the Commission forward, infused in it a sense of mission, imbued it with the ideology and philosophy of sound managerial competence and pride in self. Chief Egbule believes that, there must be more to life than having everything. He is a manager who sees the need for positive action to right historic wrongs. In deed, the historic wrongs in the Commission had been made right, thus, Egbule had navigated through the era of cruxifion. Richard Egbule is a demagogue, a quintessential institutional memory, a colossus and an 'emeritus professor' of public finance and wage compensation, and a leading authority in salaries and wages administration in Nigeria. For those who had worked with him, he is a visible uncommon leader, an enigma and a technocrat; an unequalled wage-fixer, an adviser, negotiator and determinant of salaries and wages, the longest public servant, who spent greater number of years of service in salaries and wages administration since after Udoji Commission in Nigeria. Chief Egbule is a master trainer, with a 'slow and steady' approach to issues, who applies a high degree of creativity and pragmatism in all his daily administrative and managerial life.

Non-quantitative job evaluation systems are very subjective in nature and leaves a lot to be desired when applied to a large number of diversified jobs.

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organization? (iv) After all comparisons have been made, the number of X's are totaled on each horizontal level. (v) The job that receives the most X's is the most important or demanded. The one that receives no X's is the least demanding. The others are ranked according to their points scores. (D) Ranking by paired Comparison using-Point-Value This is almost like the paired comparison using X's but this approach uses value points. I f t h e j o b i s considered more demanding it scores 3 points, same demanding 2 points, less demanding 1 point. The other steps are in (c) above. NON-ANALYTICAL METHOD:- JOB CLASSIFICATION This method is sometimes called a grading system or a rating system. The total job is evaluated usually by a committee and is placed into job grades that have been predetermined and arranged in a hierarchy of importance. Each job is evaluated by the committee and placed into the grade where the grade description must closely fit the particular job being evaluated. If it is a very simple job, a three category classification could be used i.e. unskilled, semi skilled and skilled. Consequently, all jobs being evaluated would be placed into one of these three levels. For complex jobs, more than three categories might be needed. To aid in the slotting or placing of the jobs a definition would be written for each of the level. After the jobs had been slotted or placed into grades a money value would be assigned to each level. It must be emphasized that the definition must be as precise as possible. Below is just an example. Classification I - Unskilled work Definition:- Perform work that is learned after brief oral instructions. Tasks may be of a repetitive and routine nature learning period - less than one month, supervision close. Classification II- Semi-skilled work Definition:- Work may include a variety of tasks, many of which may be elementary in nature, but must be done accurately such as record keeping. Work may involve the operation of equipment in the performance of the work. Learning period is one to six months, supervision - close Classification III - Skilled work Definition:Work involves the use of independent judgment and of problem solving. The responsibility is great in that the jobs assigned to this level involve working with the finished produce. The work must be done accurately since these employees are the last to see the product before the customer receives it. The job may include the coordinating and/or directing the work of others. Learning period over six months, supervisions general. Installing this System The first five steps are as enumerated under earlier. We will now add six additional steps:(i-v) Same as 7.2 (vi) Select the number of levels (grades to be defined and use in the programme) (vii) Writing grade definitions deserved by each level of skill required. (viii) Having the job evaluation committee review each job description, compare it to the various grade definitions. (ix) Place each job into the grade the committee feels most closely defines it. (x) Assign a money value to each grade level. (xi) Notify the employees of the outcome of the evaluation Federal Government Classification The Federal Government of Nigeria used the job classification method for grading the positions in the Public service. The Federal Government used seventeen grades. The items most often used in the definitions for differentiating between levels are: (a) Difficulty (b) Responsibility (c) Supervision (d) Knowledge a) General b) Special c) Technical d) Training e) Experience How time flies, the famous thirty-five years now remain only seventy-two hours officially. Your disengagement for all the new management staff is considered too soon and very short to understand in order to embrace your teachings. For, it is just like a child who is 1 years old and regarded as fatherless. It is only God that can save such child from the trauma of life and the accompanying dangers that lie ahead in a slippery ground laced with unsuspected and unpreserved banana peel. James Ngugi Walthiogo in his book The African Child says ' Weep not my child, weep not my child with these kisses from my mouth, let me remove the tears the likes of E.A Thompson will miss you and he says thanks in a million, Chief Wilfred Chukwuemeka Agbo (Barrister) in his usual boundless energy, action-packed approach, precision to regulations, a mandator of bureaucracy, the Ezeugbo, Kpakpado gburugburu affaims that the voice of the people, is the voice of God. Professor Chike Ogbeche in his characteristic candor, Is that so? With his great teachings and eloquent brilliance, says Deo Gratia, Yeye Monisola Oduyemi, with her calm mien, motherly disposition, her financial wizardry, says the Lord is your strength, your glory and the lifter of your head (Psalm 3:3-5). Edwin Nwanne Obiezue, who shares the philosophy of Edmund Burke, of slow and steady wins the race tactically and strategically, says merci booku; while Prince Oyeyemi Osuolale Titiloye (HRM) in his dutiful time consciousness manner, in his believes of doing it right to promote TQM says, Avec deu, es't possible. Wise Solomon Ukut, in his scintillating and barry tone voices depending on the mood and nature of negotiation, says he enjoys your association right from the beginning in the early 80's. Engr. Nyikyaa, the yahoo yahoo.dot.com (the more you look, the less you see) appreciates every moment he shares with you. Henry Egbe, the maverick financial morbid anatomist and financial chemical pathologist joins the millions to appreciate your leadership. Mama Yakubu, the woman of substance, rugged and rich in amoury professionally, sing aloud that you are a blessing to this generation. The Kpakpando, the financial operations manager Okafor, associates himself with your benevolent leadership style. Sheik Baba Gana and all others too numerous to mention joins the train of well wishers to describeyou as Dantijo, Yoruba man will say Olugbon while the Igbo man will say (Ezeigbo gburu gburu Ekwueme (the man that does what he says and what he preaches). With a kiss of joy, the essence of retirement with the appellation

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of (RTD), as everyone of us will one day add the tag, thus the day we join service or an organization, that day should remind us the day of retirement. Our joy knows no bounds as you leave us for a while. We celebrate because we are not departing in death but another extension of future productive relationship, as one after the other, we shall all join in retirement. We are happy that Chief Egbule was not caught unaware, rather even as the Holy Bible reads in Proverbs 18 vs. 16 the qualities of a man maketh room for him, and bringeth him before great men. Ladies and gentlemen join me in celebrating this great man, Chief (Sir) Richard Onwuka Egbule, a colossus, an enigmatic personality, a quintessential institutional memory, a gifted management and wage compensation teacher and consultant, a demagogue, a national jewel of inestimable value, an organizational behavourist, mandator of bureaucratic excellence, an organizational development teacher, a change catalyst and great humanist of our generation, a man of administrative precision and dogmatic stickler to rules and procedures, an evaluator/grading and productivity schemes designer and a man of uncommon pedigree. An apostle of saying it right at different moment, doing it right with the touch of excellence when others goofed, a man full of actions and passions for regard, and laced with sweetening words of regard to calm frayed nerves at appropriate moment of needs, a peace maker of pedagogic estimation with positive paradigms to the admiration of all, a man who treaded gracefully on the banana peels but never fell, all these cannot be accomplished by rare men and they don't come in handy except within a long year of interregnum (student's of history will agree with me). A very peculiar community leader and religious man who cares for the community and the church with his large heart, a man who has remained a stabilizer as the Chief cook of the nation's wage fixing laboratory, whose sweat and labour has brought naira notes in our different pockets as Civil Servants CHIEF (SIR) RICHARD ONWUKA EGBULE. Thank you and God bless. Prince Oyeyemi M. Titiloye DD (E&G)

The Federal Government of Nigeria used the job classification method for grading the positions in the Public service. The Federal Government used seventeen grades.

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The above is by no means exhaustive but time is not on our side to look at more advantages. However, we must mention that occasionally because of difficulty in supply and or/demand for a certain skill a particular job may be classified as a red circle rate and receive more money than its relative worth to that particular company. METHODS OF JOB EVALUATION A PREVIEW There are tow broad methods of Job Evaluation. These are Analytical and Non-Analytical methods. Each of these two methods can also be sub-divided into two. Non-Analytical Method (i) Ranking (ii) Job Classification Analytical Method (I) Factor Comparison (Ii) Weighted-in-points or in-average Before we duel, in details with each method, let us consider the approach each method adopts. It must be emphasize that the four methods, approach the task in similar way. The general review of the approach is made below: (i) To review the organization of the work group and to make sure that the proper tasks are assigned to the logical or right employees (ii) To analyse each job and to prepare a written Job Description which shows the functions and scope of the Job and tasks, duties, responsibilities and accountabilities for the job. (iii) To assess systematically and compare each job with the other jobs (iv) To produce a ranked order of jobs from the one that is the least important in the group to the one that is the most important. (v) To assign jobs with similar demands or importance into pay grades. (vi) To determine how much money each pay grade is to receive. (Vii) To keep the system up to date by: (a) re-evaluating a job if the content changes; (b) to ascertain, if it should be promoted or demoted to a different pay grade; (c) slotting or inserting new jobs into the programme; and (d) periodically updating the monetary value of the pay grade NON-ANALYTICAL METHOD - RANKING The Method This method merely places jobs in a grading hierarchy. The objective is to assess the importance of each job as a whole or unit in relation to all other jobs being compared. The jobs are not broken down by factors for evaluation purposes. In small organizations, all jobs are taken and ranked as a group. For greater acceptance and a more accurate and unbiased evaluation, the ranking is usually

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done by a committee. The main advantage over all other methods is that it is the simplest method. The raters usually work from their overall knowledge of the job and this information is backed by a written job description outlining the duties of the job. The raters simply compare each job against the other jobs, determining whether it is: more demanding as demanding less demanding As a result of these, a grading of the jobs is obtained. This method requires nothing more than a subjective judgment. Installing This System. There are five steps that must be taken prior to actually doing the evaluation. The steps are: (I) Notifying all employees of the pending Evaluation. (Ii) Update the organization structure. (Iii) Assign duties in each area or department. (Iv) Prepare a job questionnaire for each position. (V) Write job description and specification. Four Approaches of Ranking Of Jobs Ranking jobs may be done by several approaches; we shall briefly look at four approaches. (a) Ranking by a Committee using Average Scores A job evaluation committee studies the description of the jobs to be evaluated. Each member then ranks each job with numerical value, 1 being the highest 2 second highest etc. After all the jobs have been ranked, an average score is determined for each job. This score is the ranking of that job. (b) Ranking by use of Index Cards This approach involves the preparation of a set of Index Cards with the job titles written on them. By comparing the jobs, the committee then places the cards in sequential order with the least demanding job on the bottom and the most important one on the top. All other jobs are slotted between these two in order of importance. (C) Ranking by Paired Comparison using Xs This is done by using paired comparisons. The five steps are: (i) A list of all jobs is placed in the same sequence in both vertical and horizontal row in the same sequence (ii) The rater then compares the jobs in the vertical row against the same listing of jobs in the horizontal row. (iii) If the job listed in the vertical row is more important and/or difficult than the job listed in the horizontal row, an X is placed in that square. The basic question to ask in What job is more important to the functioning of this

THE POLITICS AND POWER OF IMPLEMENTING STRATEGIC CHANGES IN PUBLIC AND PRIVATE ORGANIZATIONS: AN OVERVIEW
INTRODUCTION: ne of the principal reasons that organizations fail is their inability to change themselves and adapt to a new competitive environment because of organizational inertia. Once an organization is created, task defined, role and function relationships are defined, a set of forces is put into operation which makes an organization resistant to change and organizational inertia ensures. Organizational politics and power relations affect the ability of an organization to overcome inertia, influence decision making, and change its strategy and structure (Bill and Jones, 1995). In public and private organizations in Nigeria and even elsewhere, it is assumed that in formulating the corporate mission and setting policies and goals, strategic managers or administrators strive to maximize corporate wealth. This picture of strategic decision is known as the rational view. It suggests that administrators achieve corporate goals by following a calculated, rational plan, in which only stakeholders' interests are considered. In reality, strategic decision making is quite different. Often, strategic administrators' decision furthers their personal, functional, or divisional interests. In this political view of decision making, goals and objectives are set through compromise, bargaining and negotiation (Pettigrew, 1973). This brings about constant clash by administrators over what the correct policy decisions should be, thereby resulting to power struggles and coalition building. In the public sphere, politics refers to the activities through which different individuals or groups in the organization try to influence the strategic management process to further their own interests. In the light of the above, this paper seeks to examine the nature of politics and power of implementing strategic changes in public and private organizations and the process of political decision making, the sources of organizational politics and power, its effects and management strategy to overcome inertia and bring about strategy change. ORGANIZATIONAL POLITICS AND POWER IN PUBLIC AND PRIVATE ORGANIZATIONS Organizational politics is defined as the tactics by which self-interested but independent individuals and groups seek to obtain and use power to influence the goals and objectives of the organizational decision making. Several factors foster politics in corporate life. The rational view assumes that complete information is available and no

uncertainty exists about outcomes, but the political view suggests that strategic administrators can never be sure that they are making the best decisions. From a political perspective, decision making always takes place in uncertainty, where the outcomes of actions are difficult to predict. According to rational views, administrators always agree about appropriate organizational goals and means, or strategies, for achieving these goals (Burns, 1961). According to the political view, on the other hand, the choice of goals and means is linked to each individual's function's or decision's pursuit of selfinterest. Disagreement over the best course of action is inevitable in political view because the strategic decisions made by the organizations necessarily help some individuals or divisions more than others (March, 1962). Given this point of view, strategy choices are never right or wrong; they are simply better or worse. As a result, managers have to promote their ideas and lobby for support from other managers so that they can build up backing for a course of action. Thus coalition building is vital in strategic decision making. Administrators join coalitions to lobby for their interests, because in doing so they increase their political muscle in relation to their organizational opponents (March, 1962). What happens at top management meetings sometimes is a case in point here. Administrators also engage in politics for personal reasons. Because organizations are shaped like pyramids, individual managers realize that the higher they rise, the more difficult it is to climb to the next position. If their views prevail and the organization follows their lead, and if their decisions bear results, they reap rewards and promotions. Thus by being successful at politics, they increase their visibility in the organization and make themselves contenders for high organizational office (Bill and Jones, 1995). The assumption that personal, rather than stakeholder or organizational interest governs corporate actions is what gives the word politics bad connotation in many people's minds. But because no one knows for certain what decisions are truly the best, letting people pursue their own interest may in the long run mean that the organization's interests are followed. In the same vein, competition among administrators moving to the top of the organization over time. If an organization can maintain checks and balances in its top management circles, politics can be a healthy influence, for it can prevent administrators from becoming complacent about the status quo and thus avert organizational decline.

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A SYNOPTIC PREVIEW OF THE CONCEPT OF JOB EVALUATION FOR WAGES AND SALARY ADMINISTRATION
OBJECTIVES At the end of this paper, readers would be able to: (i) Understand the basic concept of Job Evaluation (ii) Appreciate the aims and objectives of Job Evaluation (iii) Know some of the factors affecting job value. (iv) Know and understand the various methods/techniques of job Evaluation. (v) Appreciate the benefits of Job Evaluation. INTRODUCTION: BASIC CONCEPT OF JOB EVALUATION One of the crucial managerial decisions that an organization must of necessity make especially in the deregulated economy like ours is how much reward in form of compensation should be given by an employer to an employee for every unit of work done by the employee for the employer. It is true that employment practices do change over a period of time, however, it is certain that people must receive compensation and that compensation, if the employees are to be motivated, must be just, fair and equitable from the point of view of the employees. Usually the employees look at two common denominators to determine what is just, fair and equitable. These are; (Ii) Are his wages/salary comparable with those of other employees working in similar or rival organizations? To the employee, the decision on what is his compensation package is of paramount importance because that is the primary source of his income and hence the barometer of his standard of living. To the employers, is also crucial since compensation packages go to form a big chunk of his production cost. While the employer will want to reduce the cost of production as much as possible, he also has the responsibility of e n s u r i n g t h at e m p l o ye e s a re p ro p e r l y compensated for their contribution to fulfilling the objectives of the organization. The amount of compensation earned by an employee is determined primarily by what is done (i.e. the job). It is not necessary for all employees to be compensated equally however, employees must perceive some justification for the differences in compensations. The amount of compensation earned by an employee is determined primarily by what is done (i.e. the job). It is not necessary for all employees to be compensated equally however, employees must perceive some justification for the differences in compensations. WHAT THEN IS JOB EVALUATION? In determining emolument package the relative involvement/importance of the following characteristics can not be ignored i.e. SKILL, EFFORT, RESPONSIBILITY, KNOWLEDGE, ENVIRONMENT, DECISION MAKING, SUPERVISION AND WORKING CONDITIONS. All these factors must have been stated in the job description. JOB EVALUATION therefore, is the act of determining the relative involvement of those factors for a particular job and of Comparing, for compensation purposes, the results with those obtained from other jobs. PURPOSE AND CHARACTERISTICS OF JOB EVALUATION Main Purpose (i) The main purpose of Job Evaluation therefore, is to determine the relative involvement of skill, efforts, responsibility and working conditions for the jobs within an organization. (ii) To provide corresponding wages and salary reflective of his determination. Cardinal Principle The cardinal principle of Job Evaluation is that the same evaluation program should not be used for all jobs within an organization. The reason is that no one job evaluation programme adequately evaluates all types of work assignments such as Production Management, Sales, Public Relations, and Administration etc. The value of job evaluation system Under this sub-heading we will deal with some of the advantages of installing a proper Job Evaluation System in an organization. 1 The Job Evaluation Programme shows the relationship between jobs in the organization. 2 It establishes correct differentials between jobs 3 It establishes a system whereby new jobs may be easily placed in the job hierarchy. 4 It establishes facts and principles which can easily be explained and this explanation is extremely important in getting the employees to accept their positions on the wage scale 5 It takes the personal appreciation out of paying employees. As the title suggests, the job is evaluated not the employee who is performing the job. 6 It assigns a wage to each job and anyone assigned to perform that job will receive the predetermined amount of pay. 7 Wages are assigned to the various jobs in a systematic manner. 8 It helps to establish a clear understanding of what tasks or activities an employee should perform.

If politics grow rampant, however, and if powerful Administrators gain such dominance that they can suppress the views of administrators who oppose their interest, then major problem may arise. Checks and balances fade, debate is restricted, and performance suffers. If kept in check, politics can be a useful management tool for overcoming inertia and bringing about strategic change. POWER AND ITS SOURCES To play politics, administrators must have power. Power therefore, can be defined as the ability of one individual, function, or division to cause another individual, function, or division to do something that they would not otherwise have done. Power comes from the ability to informally influence the way other parties behave (Dahl, 1957). Having defined power, let's attempt to look at its sources. To a large degree, the relative power of an organization rests on the corporate and business level strategies. To this end, we consider sources of power at the functional or divisional level, rather than at the individual levels, because we are interested in the link between politics and power and business and corporate level strategy. Ability to cope with uncertainty (a function or division gains power if it can reduce uncertainty for another function or division), centrality, (the extent to which a division or function is at the centre of resource transfers among divisions), control over information (being at the heart of the information flow), and non-substitutability, (accruing power proportionately to the degree to which its activities are non-substitutable cannot be duplicated). Other sources of power include control over contingencies and control over resources (ability to control and allocate resources) (Dahl, 1957). In practice, each function or division in an organization has power from one or more of these sources, and so there is a distribution of power among functions and divisions. This condition gives rise to organizational politics, for administrators form coalitions to try to get other power holders on their side and thus gain control over the balance of power in the organization. EFFECTS OF POWER POLITICS ON STRATEGIC CHANGE In lieu of the above sources of power, the effects they promote adversely work against strategic change in organizations, thus influencing choice of strategy and structure. The problem organisations face is that the internal structure of power always lags behind changes in the environment because, in general, the environment changes faster than organizations can respond (Miles, 1980). Those in power never voluntarily give it up, but excessive politicking and power struggle reduce an organization's flexibility, cause inertia, and erode competitive advantage. For instance, if power struggles proceed uncheckeded, change becomes impossible as

divisions start to compete and to hoard information or knowledge to maximize their own returns. When this happens, organization's profitability and growth is lowered. How can organizational politics be managed in order to create a workable environment that would promote the corporate interest of an organization? This is what we shall be treating in the last subheading. HOW TO MANAGE ORGANIZATIONAL POLITICS Having carried out an examination on the nature of politics and power of implementing strategic changes in organizations, we shall conclude with ways to manage organizational politics. To manage its politics, an organization must devise organizational arrangement that creates a power balance among the various divisions or functions so that no single one dominates the entire system. Establishment of a strong hierarchical control is very imperative, so as to provide the strong leadership that would allow the organizations overcome inertia and change its strategy and structure. Also, they must create the right mix of integrating mechanisms so that functions or divisions can share information and ideas. In a bid to balancing the politics and power relations, an organization should develop norms, values, and a common culture that emphasize corporate, rather than divisional interest and that stress the organization's mission and vision. This is what today's public and private organizations in Nigeria require. This new management paradigm shift should not only reposition our administrative attitude to work, but would catalyze productivity, which will boost the new development agenda of the present administration in Nigeria. It behooves on us to make a justifiable effort in this direction.

Nwankwo, Uchenna Job Analyst I Dept. of (E & G)

REFERENCES Burns, T. 'Macro politics: Mechanism of Institutional Change'. Administrative Science quarterly, 6,1961, 257281 Dahl, R. A. 'The concept of Power'. Behavioural Science, 2,1957, 201-215 Hill, C.W.H, and Jones, R. G., Strategic Management. An Integrated Approach. Third Edition, Houghton Mifflin, New Jersey. 1995 March, J. G., The Organizational Politics. 2nd Edition, Princeton, London, 1962

The amount of compensation earned by an employee is determined primarily by what is done


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SALARIES & WAGES BULLETIN, DECEMBER 2009

IMPLICATIONS OF JOB EVALUATION AS IT AFFECTS REGULATED AND DEREGULATED UNIFIED SALARY STRUCTURE
he amount and type of work which an employee should perform as well as the amount of wages/salaries that he should receive reflect the source of employees' complaints and grievances. It has been recognized that one of the primary functions of management is to ensure that all employees are adequately remunerated for the work they have performed for the organization so as to meet its set objectives. The amount of wages/salaries paid should however, have a positive bearing on the general level of pay in the neighbouring companies, i.e., the wage should take into cognizance the prevailing relative pay in the locality or companies around. Before management finally fixes the amount of remuneration for the work done, it should as well avail itself of all the existing regulations as set by government in the determination of wages. This becomes necessary because in the developing countries, in most cases, wages are fixed by the process of wage commissions rather than through the inter-play of demand and supply. To achieve adequate wages/remuneration to the employees, a scientific or planned approach of wage management should be used. How the wage was determined and arrived at must also be understood and acceptable to the employees, otherwise, employees might engage in series of grievances and protests which would not be in the overall interest of management. It should be stressed here, for the avoidance of any contradictions that money is considered a true motivating factor. It is, however recognized as the number one extrinsic reward, and the employee will certainly be dissatisfied if reasonable and adequate monetary reward is not forthcoming. If a situation like this occurs, some of the under listed unfair labour practices can take place: i. A lot of complaints and grievances which can lead to trade dispute;

STRIKE! STRIKE!! STRIKE & STRIKE: Job Evaluation, the only way forward.
rofessionally, a good compensation policy and structure normally emanates from a grading structure, which is effected at the end of a Job Evaluation. What then is Job Evaluation? Job evaluation is the systematic process of determining the worth of each job in relation to other jobs within an organisation, occupation or some collection of organisations or occupations. It is worth quoting the British Institute of Management's (1970) definition of job evaluation as the process of analyzing and assessing the content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for remuneration system. Job evaluation therefore, is a simple technique designed to assist in the development of a new pay structure by defining the relativities between jobs on a consistent and systematic basis. The use of job evaluation in salary administration world wide started at about 1871 in developed countries like USA and Britain but it was only adopted in the Public Service of Nigeria by the Udoji Commission in 1974. Job Evaluation is not carried out on a once and for all basis, but when introduced it must be reviewed periodically and continuously to ensure that the relativities that exist between jobs are preserved and maintained. This is done in order to avoid distortions occasioned by technological change, change in Government policies (reforms), grading done by courts and those arbitrary undertaken without job evaluation. There had been series of isolated reviews carried out on the Udoji Job Evaluation since 1974 by the Office of Management Service of the Head of Civil Service of the Federation. Unfortunately, these isolated reviews have ended up in one distortion or the other in the entire plan as there has not been any comprehensive job evaluation undertaken since the Udoji grading plan. Obviously, the 1974 job evaluation exercise needs to be reviewed in its entirety. The need for the comprehensive review arises from the massive distortions in the job relativities that exist among grade levels 01 to 17. Some of the factors responsible for distortions include the following: changes in job factors due to computerization; introduction of new jobs in the Public service; ad-hoc reactions of Government to pay requests from individual professional organizations and bodies resulting in pay decisions being undertaken for reasons of expediency,

level of profit, which is one of the fundamentals of the business concern would be affected. The amount of monetary reward earned by an employee is determined primarily by what is done. It is not necessary to expect that all the employees will do the same type of work; as such, they would not earn the same wage or be rewarded equally. It is therefore, reasonably equitable to perceive some justifiable or equitable relationship between what they contribute to the organization and what they receive in the form of wages. The relative involvement of skill acquired, the efforts put in, the employee's responsibility to both equipment and men, the working conditions, the risk involved, etc. inherent in a particular job is presented in the job description. The act of determining the relative involvement of these factors for a particular job, and of comparing, for remuneration purposes, the result with those obtained from other jobs is called Job evaluation. The purpose of job evaluation therefore is to determine the relative involvement of skill, efforts, responsibility, conditions of work for the jobs within the organization, so as to provide corresponding wage/salary levels reflective of this determination. It should be noted that it is the job that is analysed and not the employee performing the work. APPROACHES TO JOB EVALUATION There are four popular approaches to job evaluation namely: i. Ranking

and have upset other parts of the pay structure. There have been proliferations of grading and salary structures in the Public Service. Presently, eight consolidated salary structures exist in the Public Service. Beyond the consolidated salary structures, there are Parastatals that have their own salary structures, based on remuneration range in their sectors. Is Job Evaluation the only way forward? YES. Job evaluation provides a rational basis for the design, development and maintenance of a fair and equitable pay structure. After the relative worth of jobs have been determined, it becomes easy to establish equal pay for jobs of equal worth. Job Evaluation if correctly applied; help to design, develop and maintain a fair pay structure that is based on reason and understanding rather than emotion. Job Evaluation helps in the management of the relativities that exist between jobs within a given organisation. In a typical organisation, there are jobs of varying degree of complexity and nature. They call for different skills, education, competence and physical efforts on the part of the job-holder. Example, it will be very difficult, if not impossible, to determine the relative value of the job of an engineer and that of an accountant or personnel manager in the same organisation without an effective Job Evaluation. Job Evaluation is a pre-condition for the establishment of a rational pay system on the belief that Public Servant should be paid on the basis of the worth of the work they perform. If poorly handled, it could lead to frustration and morale problems. The results of Job Evaluation exercise form a basis of constructing a salary grading structure and determining appropriate wages to be paid for each job position. It is important to note that Job Evaluation is an indispensable corollary to Compensation Administration, despite the differences between the two where they interface, there is considerable similarity in the nature of the role they perform.These two components in salary administration are not discrete but closely interrelated. Together, they constitute a coordinated compensation plan.

ii. Job classification iii Factor comparison iii. Job evaluation by weighted in points.

ii. Strained Labour and Management relations; iii. Absenteeism, disloyalty, lack of commitment and high labour turnover. iv. Fall in productivity and production; etc. An acceptable remuneration package to the employee is also very important to the employer because labour cost is a principal component of total cost of production. Remuneration decisions by management imply that the Weighted-in-points approach is usually recommended for use in large companies where large number of jobs are involved. In small or relatively young companies where the number of jobs are not many, ranking and job classification are generally used. As already mentioned in this paper, it is the responsibility of job evaluation to arrange the job in hierarchical order from the least important ones to the most important, and thereafter slot the jobs into the appropriate pay grades.

In Job evaluation, it is the job that is analysed and not the employee performing the work.
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Edward Olusegun Kwevi Job Evaluation and Grading Department

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SALARIES & WAGES BULLETIN, DECEMBER 2009

LIBERIAN OFFICIALS VISIT NATIONAL SALARIES, INCOMES AND WAGES COMMISSION

Ranking and job classification are non-analytical approaches to job evaluation. They are crude methods as against the other two methods which involve the use of quantitative methods in establishing the numerical differences between the numerous jobs. The four approaches have the under-listed common characteristics: a. Produce a rank order of jobs. b. Assess scientifically and compare each job with other jobs in the organization. c. Analyse each job with the intention of providing written job description.

WAGE ADMINISTRATION The need to define what is wage does not arise at all, this, being that we are all familiar with its definition. Wage simply means the reward for the effort of an employee. Because of its importance to both the workers and the employers, it therefore becomes imperative that it would be managed and administered properly. Wage administration means payment or remuneration system used to determine the pay or reward to workers for their performances. The issue of wage administration should be of special interest to the employer(s) moreso when the calibre of the affected workers are the uncommitted ones. SALARY ADMINISTRATION

Senior members of staff with Liberian delegation that visited the Commission

he Secretary to the National Salaries, Incomes and Wages Commission, Chief Richard Onwuka Egbule stated that the existing relationship between Nigeria and Liberia will grow from strength to strength especially in the area of Civil Service Reforms. Chief Egbule made this statement recently in Abuja while briefing a 2-man Liberian delegation who came on a three (3) day study visit to Nigeria. According to Chief Egbule, the two countries have a lot in common to share in the new reforms recently introduced by the Yar-Adua Administration. The Secretary told the delegation that the Salaries, Incomes and Wages Commission was established by Act No.99 of 1993 and its creation was informed by the recommendations of various ad hoc Commissions/Panels set up by the Federal Government from time to time since 1960, to deal with issues relating to salaries and wages in the Public Service of Nigeria. The Secretary had earlier informed the delegation that the Commission has an organizational structure with the Chairman as the overall head while the Secretary to the Commission is the Accounting officer. The Commission has six departments namely; Productivity, Prices and Incomes; Compensation; Evaluation and Grading; Management Information; Administration; and Finance and Accounts. He informed the delegation that in addition to the departments, there are also six units, Press and Protocol, Legal, Anti-corruption and Transparency, Procurement, Internal Audit and of course the SERVICOM. Chief Egbule told the Liberian delegation that the major function of the Commission is to advise government on incomes policy for the economy as well as: ? Advise government on wage policy in the public service ? Examine, streamline and recommend salary scales applicable to each post in the public service, including regular and non-regular allowance.

? Clarify enquiries from any concerned person or organizations regarding wages, salaries and other remunerations in the public service. ? Advise Government and its agencies on job classification and grading in the public service ? Establish and maintain a data bank or other information centres relation to wages, prices and other variables and to also undertake other activities likely to assist in the performance of the functions of the Commission. The Secretary further informed the delegation that the various phases of pay reform are as follows: Harmonization of Salaries, Monetization of Fringe Benefits, Pre-consolidation Groundwork, Consolidation of salaries and Salary Reviews. According to the Secretary to the Commission, the major challenges of pay reforms were large size of employment in the public service with high wage bill, the cost of which does not allow government much room for substantial wage review in line with cost of living trend, resistance to the consolidation of allowances and of course the difficulty in developing a performance based pay system in our environment. Speaking earlier on behalf of the Liberian delegation, the Chairman of Bureau of Public Service Reform (BPSR) Mr. Solomon Mantakari who was ably represented by Mr. Silnyang Inyang, thanked the Secretary and the entire management staff of the Commission for the wonderful reception accorded the visitors. Earlier, Mr. Ernest Bruce and his colleague from Liberia stated that their visit to Nigeria will not only create an enabling environment for the two countries to invest but to also cement the existing relationship between them. Before now, the delegation had visited Bureau of Public Service Reforms (BPSR), National Pensions Commission, Federal Ministry of Finance, Federal Inland Revenue Service (FIRS) and the Federal Capital Territory (FCT).

d. Ensure that proper tasks are assigned to the appropriate employee e. Determine how much money each pay grade is to receive f. Periodically update the monetary value to the pay grade by relating pay to the prevailing cost of living indices.

This is the process of determining a staff's pay. It also involves the techniques and the procedure for constructing and maintaining salary structure, reward systems and sanctions, and exercising salary control. Salary Structure A salary structure consists of an organizational salary grades or ranges from the least to the highest levels of salaries of one or more groups of jobs. The exercise is to design a salary structure into which all jobs can be correctly fixed on the basis of an assessment of their relative value to the organization. Job evaluation should ensure that salaries are in line with current market prices otherwise workers will exhibit or demonstrate unfair labour practices in their workplaces. If a chaotic and very low salary is paid to employees it will lead to myriad of labour grievances, labour unrest and employer discontentment. It is important here to observe that salary progression is a vital exercise in job evaluation. Salary progressions are designed to link the increases in salary over a fairly long period of time to maturity. They are designed for professionals, highly placed executives in organizations, scientific and highly qualified staff on their jobs rather than those whose jobs are routinised or rigid and limited in scope to a particular assignment. It helps employees to acquire more practical experience on the job so as to enhance the effective performance of their jobs, as well as to provide opportunity of transferring skills acquired to others. The employer in return, arising from its acceptable salary progression, could guarantee the employees retention on the job.

In a nutshell, job evaluation is the systematic process of establishing the value of jobs in a job hierarchy, while job analysis is a process of collecting relevant information about the content skills, knowledge, responsibilities, supervision, training or experience required for a job. It is the very foundation of job evaluation. Job description is a comprehensive job analysis which should be as brief and as concise as practicable. It should also be as reliable and factual as possible. It should have headings, and subtitles, those who are responsible to the job holder and to whom he is responsible. The duties and tasks of the job are also explained. Job classification is the process of describing and analyzing different jobs through proper definition of each job in terms of the differences in skill and responsibilities. This may be done through the preparation of job description in order of importance or ranking. There is also what is called the Bench-mark job. This is a type of job that is specifically selected as a model to be used for comparison with other jobs within and outside the organization. They are used as representative sample of the principal occupations of functions in the departments or units. They are jobs used to indicate points of reference like the survey mark.

Job description is a comprehensive job analysis which should be as brief and as concise as practicable.

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In ensuring good salary structure, the under listed are of vital importance, and should therefore be noted by all for good administration: Age at entering labour force and with what type of minimum qualification, experience, etc. The job title The salary grade levels from the least to the highest. The number of steps on each salary grade level. Provision for annual increment Placement on the appropriate salary level Provision and the procedure for promotion Procedure for discipline. knowledge and skill, the responsibilities of the employees to both the human and non-human resources, the risks involved in the employment as well as relevant experience and exposure are dominant criteria for the fixing of wages/salaries. It ought to be the responsibilities of the workers representative and the employers' representatives to come to a negotiating table and dialogue. But, in most cases, terms and conditions of employment are dictated by government. The wage structure imposed by government, as is the case in Nigeria, is unified because it covers and is enforceable in the Federal Service, the State Services and as well as in the Local Government Services. The collective agreement reached through the National Joint Public Service Negotiating Councils I, II & III, are released through government pronouncements which are later backed up with circulars issued by the Establishment and Management Services, Establishment and Pensions or The Presidency, in Lagos. This has been the pattern of collective bargaining in the determination of salaries, fringe benefits and the conditions of service, from the colonial times to 1990. 1991 FEDERAL GOVERNMENT BUDGET SPEECH The Director of the Nigerian Institute of Management I quote Government accepts that time has come for collective bargaining to take firm root and for wage fixing to reflect varieties and differences in the ability to pay, as between Federal, Government, the State Government, Local Government and Parastatals. The Federal Government will cease to issue general circulars with universal acceptability with regard to wages, fringe benefits, and conditions of employment to all public agencies. In like manner, private sector employers and Trade Unions are enjoined to look at the minimum wage law as one for establishments employing more than 50 persons, and as setting a standard to protect weak employees with little bargaining power. The content of the Federal Government new Labour policy on Collective bargaining simply means that the hitherto centralized collective bargaining has now been decentralized. Every employer of labour will have to negotiate with its workers' representatives, within the Federal Government's guidelines, on terms and conditions of employment, bearing in mind the ability of the employer to pay. It means further that, each state government, each local government, and (some) parastatals as well as the Federal government would have to negotiate with the accredited representatives of its employees on the core of trade unionism. The issuance of a universal circular on terms and conditions of employment no more exists.

SALARIES & WAGES BULLETIN, DECEMBER 2009

BE DEDICATED AND SELF DISCIPLINED EGBULE TELLS STAFF OF COMMISSION


The Secretary to the National Salaries, Incomes and Wages Commission, Chief Richard Onwuka Egbule has called for a total dedication and self discipline among staffs of the Commission. Chief Egbule was speaking recently in Abuja while declaring closed a 5-day induction workshop organized by the Commission in conjunction with ROFAM Management Consultancy Limited to inculcate into new staffs of the Commission the latest techniques and challenges ahead of them. The Secretary to the Commission advised the participants that the workshop will not only enable them to know new things concerning the Commission but also the ability of applying the public service rules into their various official assignments. According to the Secretary to the Commission, every Civil Servant needed training to enable him or her stand especially during the test of time. (NIM) in Abuja, Dr. Ahmed Yahaya, who was also one of the resource persons, spoke extensively on Human Resource Management and Development. The Director, Compensation Department, Mr. Chike Ogbechi spoke on the mandate, functions and structure of the National Salaries, Incomes and Wages Commission.According to him, the functions of the Commission is to advise government on incomes policy for the economy, wage policy in the Public Service, examining, streamlining and recommending salary scales applicable to each post in the public service. Others are to advise government and its agencies on job classification and grading in the public service. Topics taught during the one week induction course includes Management Information System, Developing superior interpersonal skills, Public Service Rules and Reforms. Twenty-two (22) senior staff from various departments of the Commission attended the workshop.

PROBLEMS THAT ARE ASSOCIATED WITH SALARY ADMINISTRATION 1. Fluctuation in the cost of goods and services. This makes the determination of a salary an issue for frequent dialogue between workers and employers. 2. Salary, being part of the cost of production, has eaten deep into employer's profit. 3. Staff reaching the bars/salary limits 4. Fall in the monetary value as a result of global inflation 5. As a result of (4) above, the real income has fallen. The level of demands and grievances from the employees increases. 6. Strained labour/management relationship. 7. Increase in government intervention in trade unionism 8. Introduction of new technology that will be adjudged intensive 9. Reduction in labour force 10. Increase in crime wave; etc. THE CONCEPT OF REGULATED AND DEREGULATED SALARY STRUCTURE The determination of wage is suitable with the interplay of demand and supply. Similarly, the prevailing market prices also provide avenue upon which demands are made by employees for upward review of their salaries so that they could cope with the cost of living. The acquired

Participants in group discussion

A participant receiving his certificate from the Chairman of the Commission at the closing ceremony

Some participants in a group photograph

A participant receiving her certificate from the Chairman of the Commission at the closing ceremony

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SALARIES & WAGES BULLETIN, DECEMBER 2009

SALARIES & WAGES BULLETIN, DECEMBER 2009

TENURE OF OFFICE FOR PERMANENT SECRETARIES AND DIRECTORS


hief Stephen Oronsaye, CON, Head of the Civil Service of the Federation, on 26th August, 2009, issued a circular, Ref. No. HCSF/061/S.I/III/68 to convey the approval of the Federal Government that all Federal Permanent Secretaries shall hold office for a term of four years, renewable for a further term of four years, subject to satisfactory performance and no more. In the case of Directors, the circular stated that they shall compulsorily retire upon serving eight years on post. The circular further stated that the approval was without prejudice to the relevant provisions of the Public Service Rules which prescribe 60 years of age and/or 35 years of service for mandatory retirement. Chief Stephen Oronsaye
Head of the Civil Service of the Federation

IMPLICATIONS OF COLLECTIVE BARGAINING UNDER DEREGULATION ON JOB EVALUATION AND SALARY ADMINISTRATION A. 1. PUBLIC SECTOR 5. On Collective Bargaining. Hitherto, Councils I, Ii, Iii negotiate through their accredited representatives with the government of the Federation on Labour issues. Any collective agreement reached by them are backed up by enabling Act or circular for its universal implementation in both Federal and State services, as well as in the local government service. With the coming into force of the collective bargaining under deregulation, each of the three tiers of government in Nigeria will have to negotiate with the representatives of the unions in its service. Each government will have at the back of its mind its pecuniary power and resources coupled with the ability to pay while the negotiation goes on. Any collective agreement reached will be enforceable within its own jurisdictional scope among its employees. Right now, the Confederate representatives of the Unions in the Federal service present memo to government on issues that are slate for negotiation, as against the Unions in National Public Service Negotiating Councils I, II & III. Multiplicity of collective Agreements: If care is not taken, there will be multiplicity of collective agreements on the same or similar topic with various governments. This observation becomes imperative as a result of the provisions of the deregulation. Trade Union power and solidarity: Workers who enjoy improved terms and conditions of employment will appear to be loyal and dedicated to the Trade Union. Any trade union official that

adopts nonchalant attitude to its members cause will have some problems on his hands. And if care is not taken, this will affect trade union power and solidarity. Employer-Employee relationship:The collective bargaining under deregulation should be carefully implemented so as not to create the impression that some states or local governments will be discriminated against in fixing wages and salaries. There should be the minimum wage as well as the maximum wage peg, under the Federal government guidelines. A chaotic wage rate gap between the Federal Civil servants/employees as against the state or local government employees will create a fertile ground for a great threat to peaceful industrial relations. ORGANISED PRIVATE SECTOR

GOVERNMENT INTRODUCES SPECIAL ALLOWANCES FOR SCARE SKILLS IN THE PUBLIC SERVICE.

he Federal Government has stated that it will very soon introduce special allowances for scarce and exceptional skills in the public service.

vision 20-20-20 introduced by the present Administration. During the two-day conference three papers were presented by different speakers. The first speaker Dr. Ayo Odusola, an Economic Adviser from the United Nation's Development Programme (UNDP) attached to Republic of South Africa dwelt extensively on Scarce Special Skill in Public Service: Measurement Issues and Lessons. According to him, there are different variants of scarce specialist skill (SSS) these are Functional, Institutional and National levels. Dr. Odusola noted that for case of measurement and comprehension, 'Scarce Skills are usually measured in terms of occupation or gratification. The second paper was delivered by the Secretary to the National Salaries, Incomes and Wages Commission, Chief Richard Onwuka Egbule. In his paper Titled Pay Reforms in the Federal Public Service and Current Issues. He recalled the history of pay reform in the public service, dating back to the colonial era. According to him, there are recent pay reform such as the Harmonization of salary structure, monetization of fringe benefits consolidation of salaries. He summarized his paper by stating that for all those agitating for more salaries, the situation is a delicate one on which government would apply a combination of prudence, as dictated by the economic realities on ground and expediency, in response to the industrial relations pressure. While the third paper was presented by Mr. Solomon Mantankari, the Permanent Secretary, Bureau of Public Service Reforms on the subject The Public Service Reforms So Far and The Way Forward. The Permanent Secretary who was ably represented at the function by Mrs. M. I. Sosanya, a Director in the Public Service Reforms stated that the strategic framework for the current reform programme was designed in July 2003, when the Federal Government launched the National Economic Empowerment and Development Strategy (NEEDS) which focused on four areas namely Economic Management Refo r m , G ove r n m e nt Refo r m a n d I n st i t u t i o n a l Strengthening, Public Service Reform and Transparency, accountability and anti-corruption reform.

B.

The statement was made by the Permanent Secretary in the Office of the Secretary to the Government of the Federation, Dr. Baba Hakeem Baba Ahmed at a two-day 1st stake holder's conference on the Development of a Frame Work for the Determination of Scarce Skills in the Federal Public Service. According to the Permanent Secretary, this unprecedented innovation was meant to provide the public service an incentive to attract and retain persons with special competence most of whom the general pay structure in the Federal Public service may not attract. The provisions of the allowance was made because of the realization of the acute skills gaps in the Federal Public Service, which needed to be bridged in order to modernize and strengthen it in the process of the institutional reform. The Permanent Secretary however, noted that the implementation of the scarce skill allowance was predicated on the establishment of a proper frame work in the form of guidelines for its operationalisation. The Permanent Secretary who was ably represented at the function by the Secretary to the National Salaries Incomes and Wages Commission, Chief Richard Onwuka Egbule emphasized that staff compensation is a very important and sensitive matter as salaries and wages consumed close to 30% of government's annual expenditure and therefore ought to be closely monitored. Dr. Ahmed commended the organizers of the two-day programme for a wonderful effort which according to him will further boost the Public Service Reforms which unarguably are key institutions helping to drive government's efforts at making the public service a modern and effective instrument for good governance and service delivery. The Chairman therefore noted on a final note that the reform efforts of these and other agencies are geared towards the national goals encapsulated in the 7-point Agenda and the

2.

3.

Collective bargaining machinery in the organized private sector agreed with the tenets of the new dispensation. The jurisdictional scope of each trade union was expressly specified in the appropriate decree in order to reduce to its barest minimum the incidence of poaching or trade union 'piracy' which featured in the trade union administration before the re-structuring exercise in 1978. The fact that government has re-emphasized it should be interpreted to mean that, from all indications, signals and evidences, the operators have been doing a good job. It should therefore be encouraged and be improved upon so that the principles of free collective bargaining or voluntarism could be given a chance to grow into maturity. By accepting this postulation, government's limited interventionism and guided democracy would be reduced to its barest minimum.

4.

PRINCE OYEYEMI M. TITILOYE, Bsc, MPA, mcipm, mimc, mitd

BULLETIN QUOTE
It is not what we read, but what we remember that makes us learned. It is not what we intend but what we do that makes us useful. And, it is not a few faint wishes but a lifelong struggle that makes us valiant.
Henry Ward Beecher 1813-1887, American Preacher, Orator, Writer

There are two ways of exerting one's strength; one is pushing down, the other is pulling up.
-- Booker T. Washington

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SALARIES & WAGES BULLETIN, DECEMBER 2009

SALARIES & WAGES BULLETIN, DECEMBER 2009

The National Salaries, Incomes and Wages Commission maiden Bulletin launched

he National Salaries, Incomes and Wages Commission launched the maiden edition of its Bulletin - the Salaries and Wages Bulletin on July 29, 2009 at the Nicon Luxury in Abuja.

and Incomes and how to put in place an effective productivity incentives and plans for the Nigerian Public Servant. The Secretary to the Government also stated that the launching of the Bulletin is also clearly in tandem with the re-branding programme of this present Administration. This opportunity will henceforth offer an invaluable avenue to discuss all wage related labour issues in the wider public service and perhaps also help to clear any grey area in the implementation of circulars on wage increases. The Secretary to the Government therefore advised that ideas generated in the quarterly publications of the Bulletin will remove doubts, ignorance and misgivings in the wage policy matters. In furtherance of its enlightenment role, the Bulletin will be posted on the Internet for the consumption of the general public and other target readers. The Secretary to the Government of the Federation finally commended the Secretary to the Commission, Chairman and members of the Editorial Board, and all the committee members who have contributed to the production of this maiden edition not to rest on their oars as this is not an end in itself but a stepping stone towards the achievements of a stable and reliable source of information on salaries and wages matters in the country.

Speaking at the launching ceremony, the Secretary to the Government of the Federation, Alhaji Mahmud Yayale Ahmed (CRF) whose address was read on his behalf by the Permanent Secretary (GSO) OSGF, Ambassador Dr. Hakeem Baba Ahmed stated that the Salaries and Wages Bulletin would be a veritable medium to project what Government has been doing in the area of Public Service Pay policies and practices. According to him, the Bulletin would also keep the general public abreast of the activities of the National Salaries, Incomes and Wages Commission. It will also be a good reference material for public Servants, Employers, Associations, Labour Organizations, Scholars and Experts in Labour Compensation, Researchers, Students of Economics and Industrial Relations. The Secretary to the Government also noted that the Bulletin is spiced with veritable information on the different areas of the Commission's statutory mandates which encompasses Wages Administration and Labour Compensation in the Federal Public Service. Other issues that could be useful in the Bulletin include job Evaluation/Grading and re-grading in the Federal Public Service, Productivity Prices

Earlier in his welcome speech, the outgoing Secretary to the Commission Chief Richard Onwuka Egbule stated that the Commission's creation was informed by the recommendations of various ad-hoc Commissions/Panels set up by the Federal Government since 1960, to deal with issues, relating to salaries and wages in the Public Service of Nigeria. According to him, the Udoji Commission on the Review of the Public Service (1972 - 1974), in particular, recommended that a permanent body be established to inter-alia undertake the periodic review of wages and salaries in the Public Services. The Secretary noted therefore that the Commission has since its inception in August 1993, demonstrated sufficient interest in the welfare of the Nigerian workers in general and the public service in particular. The Commission's responsibility therefore covers the whole arrears of Incomes Policy, Job Evaluation and Grading, Prices Productivity and periodic pension adjustment. It is also expected to examine the possibilities of rationalization and harmonization of wages, salaries and conditions of employment between the public and private sectors of the Nigerian Economy. The Bulletin would be a quarterly publication. Top personalities from both the private and government organisations attended the launching ceremony.

The chairman (NSIWC), Chief R. O. Egbule; Special Guest and the Permanent Secretary (GSO), Dr. Hakeem Baba Ahmed holding copies of the Salaries and Wages Bulletin

The head table... the Secretary to the Commission Chief Richard Onwuka Egbule and representative of the Secretary to the Government of the Federation, Dr. Hakeem Baba Ahmed are second and first from right respectively

A cross-section of the audience at the event

Secretary to the Commission Chief Richard Onwuka Egbule giving his welcome address

The representative of the Secretary to the Government of the Federation, Ambassador Dr. Hakeem Baba Ahmed unveiling the magazine

Dr. Afolabi Thompson giving the vote of thanks

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