UUGGAANNDDAA CCHHRRIISSTTIIAANN UUNNIIVVEERRSSIITTYY--MMUUKKOONNOO

FACULTY OF BUSINESS AND ADMINISTRATION

A RESEARCH PROPOSAL

RESEARCH TOPIC: RELATIONSHIP BETWEEN SALARIES AND LEVEL OF

EMPLOYEE PERFORMANCE

CASE STUDY: UCU ACADEMIC STAFF

BY

KATO ANDREW

REG.NO: S12B06/317

FLIELD SUPERVISOR: Mr. MUTEBI EDRINE

A RESEARCH PROPOSAL SUBMITTED TO FACULTY OF BUSINESS AND

ADMINISTRATION IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

THE AWARD OF A BACHELORS OF BUSINESS COMPUTING OF UGANDA

CHRISTIAN UNIVERSITY

JUNE 2014

DECLARATION I KATO ANDREW hereby declare that this research proposal has never been done /used by any

one either submitted to any University or institution for academic purposes.

Signature -------------------------------------

Date ---------------------------------------

APPROVAL This is to certify that this research proposal has been compiled by KATO ANDEW as a

requirement for the study of the course Research Methodology in June 2014.

Tutor

Signature -----------------------------------------

Mr. Mutebi Edrine.

Date --------/--------/2014

Lecturer

Signature---------------------------------------------------

Mr. Kyakulumbye Stephen

Date--------/---------/2014

DEDICATION This Research proposal is dedicated to my dear Mother, Jane Nalongo, my dear sponsors, my

brothers and sisters, friends and my beloved lectures.

Thank you for your support.

ACKNOWLEDGEMENT My acknowledgements go to all who have helped me in compilation of this Research report such

as my group mates who have allowed my continued absence while compiling this work, friends

such as Daniel Kireti who has been there for my consultation and everyone who has directly or

indirectly helped me.

GOD BLESS YOU ALL.

ABSTRACT This Research proposal contains Chapter1 which contains the introduction and back ground of

the research topic and break-down of the concepts in the topic, problem statement, objectives of

the study, the conceptual frame work, Chapter2, which covers the literature review about the

topic and finally chapter3 which presents the research design inclusive of the data collection

technique, population, sample, tools used in data collection, data processing and analysis

techniques.

TABLE OF CONTENTSDECLARATION......................................................................................................................................... ii 

APPROVAL ................................................................................................................................................ iii 

DEDICATION ............................................................................................................................................. iv 

ACKNOWLEDGEMENT ............................................................................................................................ v 

ABSTRACT ................................................................................................................................................ vi 

CHAPTER ONE: INTRODUCTION ........................................................................................................... 1 

1.1   Background of the study ................................................................................................................... 1 

1.2 Problem statement ............................................................................................................................... 3 

1.3 General Objective of the study ............................................................................................................ 3 

1.4. Specific Objectives. ........................................................................................................................... 3 

1.6 Significance of the study. .................................................................................................................... 4 

1.7 Conceptual Frame work ...................................................................................................................... 4 

CHAPTER 2: LITERATURE REVIEW .................................................................................................. 5 

Introduction. .............................................................................................................................................. 5 

2.1 salaries/amount .................................................................................................................................. 5 

2.2. Fringe benefits ................................................................................................................................... 6 

2.3 Timing and promptness ...................................................................................................................... 7 

2.4 Performance ........................................................................................................................................ 7 

2.3 Salaries and level of performance ....................................................................................................... 8 

2.4 conclusion ........................................................................................................................................... 8 

CHAPTER THREE: RESEARCH METHODOLOGY ................................................................................ 9 

Introduction ............................................................................................................................................... 9 

3.1 Research design .............................................................................................................................. 9 

3.2 Study Population ............................................................................................................................. 9 

3.3 Sampling Technique ...................................................................................................................... 10 

3.4 Sample size ................................................................................................................................... 10 

3.5 Data collection .............................................................................................................................. 10 

3.6 Data collection Instruments .......................................................................................................... 11 

3.7 Data processing, analysis and presentation ................................................................................... 11 

3.8 Limitations of the study ................................................................................................................ 12 

REFERENCES ....................................................................................................................................... 13 

APPENDICES ............................................................................................................................................ 14 

APPENDIX I .......................................................................................................................................... 14 

 

 

CHAPTER ONE: INTRODUCTION. 

This chapter covers the major insights of the topic. It has the introduction, then the

background of the study, problem statement, purpose of the study, objectives of the study,

research questions, significance of the study, scope of the study, operational definition of

terms and concepts

1.1BackgroundofthestudyA salary is a form of periodic payment from an employer to an employee, which may be

specified in an employment contract. It is contrasted with piece wages, where each job,

hour or other unit is paid separately, rather than on a periodic basis. From the point of a

view of running a business, salary can also be viewed as the cost of acquiring and

retaining human resources for running operations, and is then termed personnel expense

or salary expense. In accounting, salaries are recorded in payroll accounts. Salaries paid

to the University lecturers and tutors are more closely related to the system under which

teachers are paid in the low levels of education. This therefore holds its background in the

evolution of teacher salaries from evolution of formal education to the present time as

highlighted in the following script.

History of teacher payment

There have been major shifts in compensation/payment of education professionals over

years and this can be observed in the following stages; Boarding Round; This is the most

ancient way of teacher compensation at around second half of the 1800’s where teachers

were provided with a room and board by the local community. The "Boarding Round"

pay system was a strong incentive for teachers to maintain positive relations with

community members and to maintain a high moral character. It also reflected the barter

economy of the time. Later, the other system that evolved was position based salary

schedule. This system evolved in the early 1900s where teacher preparation became

more uniform requiring higher levels of education. The Boarding Round system was

replaced by a position-based salary system that reflected the new form of teacher works,

the cash basis of the economy, and increased pre-service education requirements. The

third phase in teacher salaries was the Single-salary schedule;

The single-salary schedule emerged early in the 20th century in response to further

changes in the social and educational context. Opposition to overt discrimination and

demand for greater teacher skills led to the system which paid the same salary to teachers

with the same qualifications regardless of grade level taught, gender or race. The single-

salary schedule did not, however, pay every teacher the same amount. Differentials were

provided based on the objective measures of years of experience, educational units, and

educational degrees. It paid teachers salary supplements for coaching sports, advising

clubs, and coordinating activities. The bases for paying differential salary amounts were

objective, measurable and not subject to administrative whim. The present phase

evolved in the 1990s, changes in education have led to increased skill requirements for

teachers. Public demands for high standards and accountability, demands for employee

involvement to facilitate improved organizational performance, and an increasingly

diverse student population require teachers to develop and maintain high levels of

professional instructional skills, as well as management and leadership roles within

schools. Despite its advantages (fairness, equity, and ease of administration), the single

salary schedule does not focus on results and does not provide incentives for long term

career development of employees, linked to the knowledge and skills needed for today's

schools.

Performance

Schuler and Stuart(1986)defines performance appraisal as a system of evaluating and

influencing an employees’ job related attributes, behavior, outcome and the level of

absenteeism to discover at what level the employee can perform on the job. Maicibi

(2003) argues that if employees do not feel good are most likely to leave such jobs soon

because they are denominated especially to unclear responsibilities or performance

standards. Performance can be quantitative such as the number of students passing the

course or qualitative in nature.

1.2 Problem statement

There has been great variance in the salaries given to lecturers and other employees in various

Universities in Uganda basing on the University set up and the structure. It has been observed

however that employees somehow perform depending on the rewards they are offered in

compensation of their labor. This has in many cases yielded to poor performance and the impact

has been greatly felt by the students or parents who pay to acquire standardized output in terms

of their student performance at work places after graduation. Various studies conducted have left

out the university/higher learning centers and yet are critical in the economy and national

development as they act as industries where the labor force is prepared. (Babirye,2011)

conducted a study on performance, remuneration and performance of teachers in Universal

Primary Education as well as (Kibikyo,2007) who were all aimed at establishing a relationship

between teacher performance and salaries. This therefore leaves a lot to be desired as far as

research in this field is concerned especially at an advanced stage of education.

1.3 General Objective of the study

The study is to establish the relationship between academic staff’s performance and level of

performance.

1.4. Specific Objectives.

To establish the relationship between the salary (amount) and the level of employee (academic

staff) performance at UCU.

To examine the impact of timing and promptness of salaries on the academic staff performance

at UCU.

To assess the impact of fringe benefits on level performance of employee/academic staff at

UCU.

1.5 Research Questions

How related is the amount of salary paid to academic staff related to their level of performance at

UCU?

Is there any impact on the level of academic staff performance at UCU if salaries are delayed?

How do fringe benefits affect the level of academic staff performance at UCU?

1.6 Significance of the study.

The study will add on the existing data on how academic staff can be motivated to improve on

their level of performance.

The study will help widen the scope of knowledge about how university academic education

quality output can be realized.

The study will also help establish a model of salary payment system at higher levels of learning.

The study will act as a basis for further studies on university academic staff compensation.

1.7 Conceptual Frame work

INDEPENDENT VARIABLE DEPENDENT VARIABLE

SALARY LEVEL OF PERFORMANCE

 

 

Employee performance 

Amount of salary 

Promptness and timing of Payments 

Fringe benefits 

 

 

CHAPTER 2: LITERATURE REVIEW

Introduction. This chapter covers scholarly articles or previous studies made about the topic of study. It deals

with major contents of study. It intends to clearly show the scope of studies made and the various

material available about the topic. It goes further to deal with various operational terms as used

in the topic and objective formation for this study. It shows scholarly material about

salaries/amount, fringe benefits, performance, timing/promptness of salaries as well as the

relationship between salaries and performance.

2.1salaries/amountSalaries /amount of salaries given to employees (academic staff) can be well understood as a way

of motivating them. This can well be explained in the role of money as a condition reinforce, an

incentive which is capable of satisfying needs, an anxiety reducer that serves to erase feelings of

dissatisfaction, Opsahl and Denette (motivation and organizational climate pp65-66).Bassett-

Jones and Lloyd(2005) presents that two views of human nature underlay early research into

employee motivation. The first view focuses on Taylorism, which viewed people as basically

lazy and work-shy, and thus held that these set of employees can only be motivated by external

stimulation. The second view was based on Hawthorn findings, which held the view that

employees are motivated to work well for “its own sake” as well as for the social and monetary

benefit. This type of motivation according to this school was internally motivated. Various

researchers (such as Wallace, Szilagyi, Gupta and Shaw) contend that money is indeed a

motivator. This is because it can be seen by individuals as a goal in itself; as a means of giving

satisfaction, and as a symbol of internal recognition or external status. On contrary studies have

also revealed that money is a poor motivator and can hardly influence level of performance. It is

further argued that it may produce temporary compliance rather than sustained improvement. It

does not change behavior, merely a superficial conformity with what the organisation signals to

be important. Individual performance –related pay emphasizes individual contribution whereas

the task might require team work; may cause short terminism rather than long terminism,

Peffer,n.d. In their most recent study, Gilchrist, Luca and Malhotra set out to answer a basic

question;”Do employees work harder when paid more?”. In their findings, it was concluded that

employees will improve performance if the additional salary is perceived as a gift. An increase in

salary as promised by employers in work contract is most likely not to be effective in improving

the employees’ performance. Companies therefore should think carefully not just to pay

employees but how to pay them. The same amount of compensation can be structured in ways

that will be less appreciated and reciprocated, Malhotara, etal, 2013. Merit pay/pay for

performance adjusts salaries upwards and provides compensation for higher levels of

performance. A standard for individual performance is set, such as increased student

achievement. If a set standard is reached, the individual receives a bonus or salary increase

(Rechardt, Robert, Rebecca, 2003). The major argument in favor of merit pay is that it can foster

individual motivation by recognizing effort, achievement and rewarding it in a concrete way.

(Reichardt etal, 2003)

2.2. Fringe benefits Bratton and Gold, 2003:292 referred to fringe benefits as non-financial rewards added to the

basic pay, related to work behaviors, performance, learning and experience. The characteristics

of fringe benefits include; promotion, advancement and job stability, leadership allowance,

responsibility allowance and recognition allowance. Fringe benefits in institutions provide a

basis on which employees work towards the achievement of set goals. Therefore University

administrators and managers often use fringe benefits as a means of improving performance

(Dessler, 2003). The expectancy theory explains that in any given situation, the greater the

number and variety of rewards that are available to the employees (academic staff), the greater

the probability that extra effort will be exerted in attaining the set goals or targets in the hope of

getting the desired rewards (Bodden, 2008). Gerald Cole (2004) agrees with this and explains

that the Vroom focused especially on the factors that are involved in stimulating an individual to

put an effort in doing something since this is the basis of motivation. According to Farazmand

(2007), employees who receive the same wages regularly are more likely to perform poorly than

the employees who receive some incentives. Among the most common incentives that can be

given to employees and in this context academic staff include; Transport allowance: This is

given to an employee to meet his expenditure for purpose of commuting between place of

residence and place of work/duty. (Abhishek, 2010).Overtime allowance: This is the additional

amount paid to hourly employees who work for more than 40 hours a week (Murray, 2010).

Accommodation or housing allowance: This is the amount of money or given to an employee in

compensation for basic living expenses. (Knyszewska Elzbieta, 2010). Robbins (2003) indicated

that employees who are unsatisfied with their jobs had many absenteeism cases than those with

job satisfaction with high attendance levels. Regardless of fringe benefits being financial, their

existence and provision in time gives a substantive reason for employees to stay longer at places

of work.

2.3TimingandpromptnessAccording to Maicibi (2003), promptness of payment is important because the workers’ need to

meet responsibilities. He argues if salaries are released in time the workers can do their work

diligently without stress.

2.4 Performance Performance refers to the result of an activity according to Boddy (2008). Nkata (2004), defines

performance as levels at which an organization through an aggregation of performance of

individuals is able to accomplish its mission in respect to line for effectiveness and efficiency in

service delivery so as to attain stakeholders’ needs. Grassing(2002), adds that performance

entails effectiveness which refers to firm’s ability to serve and produce what the market requires

at a particular time and efficiency which means that meeting the objectives at the lowest possible

benefits. Similarly, Perry et al (2006), reviewed diverse literature and financial incentives

significantly improve performance and the effectiveness is dependent on organizational

conditions .This supports the view that wages and salaries availability and provision of fringe

benefits will attract better performance whereas poor organizational conditions like poor salaries

and wages , inadequate provision of fringe benefits always attract poor performance. Robbins

(2003) observed that employees who are unsatisfied with their jobs had many absenteeism rates

than those with job satisfaction and with high attendance levels. He concluded that employees’

satisfaction and poor performance are connected with absenteeism. On how performance is

measured, there is a belief that what an organization should measure depends on what it is trying

to achieve (Johnston and Pangatichat, 2008; Neely and Kennerly, 2002).Measurement clarifies

and focuses on long term goals and strategic objectives.

2.3 Salaries and level of performance Performance comprises an event in which generally one group of people (performer) behaves in

a particular way for another group. Mac Gregory suggested that there are two sets of employees

(lazy and ambitious workers representing Y. According to him the lazy employees should be

motivated to increase performance and this can be in form of increased pay. Upon individual’s

results, there are three main models of performance based reward programmes that are

commonly found in education systems. The first model is ‘merit pay’, which generally involves

individual pecuniary rewards based on student performance and classroom observation,

McCollum (2001). The second model is “knowledge and skill-based compensation” which

generally involves individual pecuniary rewards for acquired qualifications and demonstrated

knowledge and skills believed to increase student performance, Odden(2002). Knowledge and

skill based pay differ from Merit pay because it provides clear guidelines on what is being

evaluated, (Odenn and Kelly, 2002). The other is school based pay which generally involves

group based pecuniary rewards typically based on student performance, (Odden and Kelly,

2002).

2.4 conclusion Conclusively, literature gas clearly defined the scholarly view of the various variables in the

topic of study. This therefore serves to guide the researcher to be aware of the previous findings

and so be able to set clear hypothesis before going in the field.

 

 

CHAPTER THREE: RESEARCH METHODOLOGY

Introduction This chapter defines the processes and techniques that are involved in conducting the research

study. It explains the research design to be used while conducting the research study, population

and sampling techniques, data collection methods, data collection instruments, quality control

(validity and reliability), data collection procedure and data analysis and presentation.

3.1 Research design The researcher will use descriptive, cross sectional and associational research designs.

Descriptive research design study is one in which information is collected without changing the

environment that is nothing is manipulated. Sometimes it is referred to as “correlational” or

“observational” studies. The researcher will use descriptive research to establish the various

perspectives on the impact of salaries on the level of employee performance. Additionally, the

researcher will also use cross sectional design. In this type of design the researcher will record

the information that is present in a population but they do not manipulate variables. This type of

research can be used to describe characteristics that exist in a population, but not to determine

cause-and-effect relationships between different variables. These methods are often used to make

inferences about possible relationships or to gather preliminary data to support further research

and experimentation. Cross sectional research design will be used in choosing the respondents

from where data will be gathered from and to be able find out from them the impact of delayed

salaries on the employee level of performance.

3.2 Study Population The study shall capture data from Uganda Christian University academic staff inclusive of Deans

of faculties, heads of departments, lecturers, tutors as well as teaching assistants.

3.3SamplingTechnique

The researcher will carry out the research study using purposive sampling technique. Purposive

sampling, also known as judgmental, selective or subjective sampling, is a type of non-

probability sampling technique. Non-probability sampling focuses on sampling techniques where

the units that are investigated are based on the judgment of the researcher. This is a type of

technique where the researcher chooses specific respondents basing on their familiarity with the

subject and their ability to give information readily since the study required specific information.

It is advantageous because it is easier to get a sample of subjects with particular characteristics

but the disadvantage is that Although some methods have been developed for some purposive

samples, they are more complex and not as well developed as those for random. Using this

technique, the researcher shall intend to look for experienced academic staff and those who have

taken some time serving at Uganda Christian University. This is intended to get reliable data

from our respondents.

3.4 Sample size In this study, the researcher shall target a sample size of up to 50 respondents widely spread

around various faculties and departments in the University.

Details Number of respondents

Deans of faculties 5

lecturers 15

Tutors /teaching assistants 20

Administrative Assistants 10

Total 50

3.5 Data collection During the process of data collection, the researcher will collect both primary and secondary

data.

3.5.1 Primary data

Primary data will involve data collected from respondents (lecturers and other Academic staff)

originally from their views as seen through their response to the questionnaire and through

discussions and possibly interviews that will be conducted by the researcher.

3.5.2 Secondarydata

The researcher will also endeavor to gather more information which might be from performance

reports and lecturer assessment forms from which he will be able to get additional findings to

back the study.

3.6 Data collection Instruments

3.6.1 Questionnaires

The researcher will prepare close ended questionnaires which shall be given to various

respondents to collect data. Questionnaires shall draw the questions to use from the objectives of

the study.

3.6.2 Interview Guide

The researcher will also prepare an interview guide which shall be used in conducting interviews

with various employees (lecturers and tutors) on the topic of study. It shall be belief and

consisting of straight forward questions. This tool shall be used to capture in depth data from

experienced staff who may not be satisfied with responding to the questionnaire and have

additional information to offer.

3.7 Data processing, analysis and presentation When the researcher has gathered data from the field, he will then sit down and sort and edit the

collected data so as to ensure data consistency and avoid data redundancy. Through editing and

sorting out the data, this will eliminate incidences of inconsistency of data and avoid redundancy

of data that the researcher will have made during collecting of data from the field. After data

processing, it will be further described through descriptive analysis so as to be able to generate

meaning concerning the data collected from the field and this will generate meaningful

information. Also through having meaningful information, this will enable the researcher to be

able to find out whether to accept or reject the hypothesis and this will be done by the use of a

statistical package for social scientists called SPSS where information will be in form of

frequency tables, percentages and will be analyzed statistically. Additional description of the

information shall be done such as finding the correlation between salaries and the lecturer

performance rate such as with the student grades.

Deduction shall afterwards be done after assessing the findings and this will give the researcher’s

findings in relation to the topic of study.

3.8 Limitations of the study Financial constraints: There are costs that the researcher will incur while collecting data from the

field and they include transport costs and communication.

Negative attitude from the respondents. The researcher will find a challenge especially with

respondents who are not cooperative. Some of them will not be honest in answering the

questions posed to them and this will limit the researcher from getting appropriate data from the

field.

REFERENCES Gilchrist, Luca and Malhotra, 2013, Do employees work harder when paid more? Harvad University

Goldhaber, D (2001) how has teacher compensation changed? Selected paper in school finance

Gerald Seegers, (2009), employee remuneration policy as an effect of performance in organization.

Foss, N, J & Laursen, K (2005), Performance pay, delegation and multi-tasking under uncertainty and innovativeness: An empirical Analysis of Differential Effects across subject areas.

Brown, C. & Medoff, J, (1989), The employer size wage effect, Journal of political economy, 97, 1027-1059

Braton J and Gold J (2003:292), Human resource management: The theory and practice (3rd Edition), Pal Grave MacMillan publishers ltd, Great Britain.

Armstrong, (2003). A hand book of human Resource management and practice.

Abhisheki, R. (2010) forms of Remuneration.

Armstrong, M (1991), A hand book of Personnel management practice, 8th Edition, Kogan Page Limited UK.

Armstrong, (2008) A hand book of Personnel management and practice, 10th Edition, Philadelphia PA 1947.

Armstrong.M, (1999), Employee Reward, People and Organizations, Kogan publishers UK.

Babbie.E, (2007), The practice of Social Research, 11th Edition, Thomas Higher Education, 10 Davis Drive, USA.

Bowen, B.R (2002),Recognizing and Rewarding Employees, USA.

Maslow.A, (1971), The farther reaches of human nature, New York; The Viking Press.

Odden, A and Kelley C. (2002) paying Teachers for What they know and Do, New and Smarter OECD.

Odden, A (2001), Defining Merit, Education matters 1(1) pp16-24

Beverly.J.Winsch, Teacher performance-based pay: A review of compensation Reform initiatives in education, April 23, 2009.

APPENDICES APPENDIX I TOPIC: THE RELATIONSHIP BETWEEN SALARY AND LEVEL OF EMPLOYEE PERFORMANCE.

The researcher is a student at Uganda Christian University pursuing the course of Bachelor of Business Computing.

The study been conducted is geared towards facilitating the study about the relationship between salary and level of performance. Case study UCU Academic staff. The research study is seeking to find out responses from respondents and you have been selected to participate in this study. The information the respondent is going to give is meant for academic purposes and will be treated with confidentiality. Your help and response is highly appreciated.

SECTION A: BACKGROUND INFORMATION

1. Gender : 1.1 Male 1.2 Female

2. Age : 2.1 20-30 2.2 31-40 2.3 41-50 2.4 Above 50

3. Marital status: 3.1 Single 3.2 Married 3.3 Divorced 3.4 Widowed

4. Education level: 4.1 Degree Graduate 4.2 Post Graduate 4.3 masters 4.4 PhD

5. Faculty: 5.1 Business 5.2 social science 5.3 science 5.4 Law5.5 Other……

6. Time in service:6.1 <2yrs 6.2 5yrs 6.3 5-10 years 6.4 10-15yrs 6.5 above 15yrs SECTION B: IMPACT OF SALARY (AMOUNT) ON LEVEL OF PERFORMANCE. Please Tick where appropriate

1. SA -Strongly 2.A-Agree 3.NS-Not sure 4.SD-Strongly Disagree 5.D-Disagree. SA A NS SD D

You are satisfied with the amount of salary you get

Salary is a great motivator

Salary can influence your performance

Extra salary means extra performance on your duty

Low salary can lead you to change job

High salary is required to inspire employees

SECTION C: PROMPT PAYMENT AND LEVEL OF PERFORMANCE

SA A NS SD D

Salaries paid in time increase your concentration on your duties

Delayed salaries demotivate you

You can look for money to meet your needs if salaries delay

Proper and timely timing is related to ones degree of performance

Continued delay of salary payments can make you look for an alternative job

SECTION D: FRINGE BENEFITS AND LEVEL OF PERFORMANCE

SA A NS SD D

Promotion affects performance

Recognition of performing lectures and departments is adequately done

Transport allowances are given

Health insurance is available for all academic staff

Leadership and overload allowances are satisfactory

Assurance of job security motivates your performance

SECTION E: PERFORMANCE

SA A NS SD D

Your students have a high pass rate

Absenteeism is caused by poor pay

Part timing is as a result of inadequate salaries

You give individual attention to students

High retake numbers of students is an indicator of poor lecturer performance

Amount of Salary and level of performance levels go hand in hand

Thank you very much for Response. May God bless you!