Reward Pay At Etisalat Communications Commerce Essay

The success of an administration greatly depends on carry throughing the uninterrupted altering demands of administration and employees ; hence, a big duty falls on direction to construct strong relationship between them. Employees are expected to follow the regulations and ordinances, work harmonizing to the criterions set for them and hence anticipate good on the job conditions, just intervention, sensible wage, and engagement in determination devising. For administrations to pull off these outlooks, an apprehension of employees ‘ motive is required ( Puwanenthiren, 2011 )

Research has proven that when employees are adequately rewarded, they tend to hold higher self-pride, more willingness and assurance to take on new challenges and more enthusiasm to be advanced. ( Kalim, Syed & A ; Muahmmad, 2010 ) . Employee public presentation therefore has become a beginning of concern for HR experts particularly the degree of end product of workers due to hapless wage and the frequently dreamy attitudes of directors towards efficaciously honoring them to maximise productiveness.

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Therefore, all custodies must be on deck to develop and motivate employees to be dedicated to their occupations through effectual wage and wages systems. ( Roberts, 2005 ) . In position of this, this survey attempts to suggest an appropriate wage and wages scheme that would adequately actuate employee public presentation utilizing Etisalat communications Nigeria as a instance survey.


This research paper fundamentally aims at:

Thoroughly analyzing the bing wages and wage system and schemes practiced by the administration.

Determining the degree of prosperity of the wages and wage system

Recommending and suggesting farther schemes that may heighten overall productiveness


The Nigerian telecommunications sector witnessed major transmutation since 2000 when it was foremost embraced the Global System of Mobile communicating ( GSM ) opening the market for many operators, Etisalat inclusive. This no uncertainty heightened the telecommunications consciousness of persons, made communicating easier, and promoted market sustainability.

Etisalat is the taking telecommunications operator in the Middle East and Africa, headquartered in the UAE ( ) . Etisalat, though the newest rival in the concern of telecommunications in Nigeria, invests to a great extent in the Nigerian economic system every bit good as in its human resources. Etisalat provides a universe category environment for carry throughing calling aspirations fostered by its dynamic wage and wages systems which would be analysed in other subdivisions of this paper.


This survey has both theoretical and practical significance. Theoretically, it is hoped that by the terminal of this survey, add-ons will be made to the cognition of human resource direction

Practically, this survey will turn to wages and pay strategies in administrations and how the motivate employees toward better public presentation. It will seek to explicate policies sing wages and wage for employers of organisations that can assist better their organisational construction.




V room ‘s ( 1970 ) in Armstrong ( 1991 ) anticipation theory in sees adult male as a end seeking or necessitate hearty being whose action such as taking a occupation and how expeditiously he works depends on his outlook of a wages. Thus how far the expected wages satisfies the occupation aspiration of the employee is the extent to which he contributes to organisational effectivity and efficiency. Nevertheless, the anticipation theory offers insight into the motivational procedure of the worker, and gives significant grounds that wage and wages strategies influence employee public presentation.

Maslow ‘s theory of motive ( 1954 ) in Armstrong ( 1991 ) provides some account for employees ‘ occupation satisfaction and productiveness. Maslow saw human demands in footings of hierarchal construction with higher degree demands as physiological and safety demands being the most of import. He argued that all human existences are in a motivational province and failure to fulfill any of these demands will impede employees work motive and occupation satisfaction. Maslow was nevertheless criticized for non subjecting his preparation to empirical proof. His reviews besides argue that the manner in which he presented his hierarchy of human demands is deceptive and does non ever obtain in world.

Contingency theory, ( Roberts, 2005 ) argues that an appropriate wages and pay scheme is required to “ best tantrum ” with organizational strategic aims and HR patterns. Therefore, wages and pay strategies should be designed to accommodate the organizational scheme and overall aims in order to efficaciously actuate employees towards improved public presentation therefore the simple equation:

Effective wage and wages systems in a “ best tantrum context ” Heightened employee motive Improved organizational productiveness


Harmonizing to Armstrong ( 2005 ) , reward scheme refers to the alliance of the wages policies and patterns with the concern and HR schemes of the administration, its environment and civilization, supplying a set of ends and a declaration of purpose as to what the administration wants to honor and how critical issues will be addressed.

Pilbeam & A ; Corbridge ( 2010 ) province that out of the three chief wage schemes ; graded pay- based on occupation rating and incremental promotion, market related pay- based on the commercial worth of an employee, and public presentation related wage based on the single worth of an employee, the public presentation related method is more preferable in the planetary administration and is motivated by the managerial desire to do administrations more antiphonal to competitory markets by deputing determination devising and trusting more on employee enterprise.

Wright ( 2004 ) defines entire wages as non concentrating on wage entirely as one portion of the reward image but involves conveying in other facets that affect the quality of the person ‘s working life such as employee engagement, employee acknowledgment and engagement in determination devising and chances for larning and development.

Thompson ( 2002 ) makes mention to the “ entire wages strategy ” as one which makes enlisting of better quality staff easier, reduces wastage from staff turnover and enhances the repute of the administration as an employer of pick.


Etisalat Nigeria, cognizing that long term investing is needed for endurance at the top, has a wages scheme of paying wages at the upper degree to pull, develop motivate and retain high executing staff. They besides guarantee that quality of public presentation of employees and the concern is monitored and recognised. Furthermore, Etisalat Nigeria ‘s wages system encourages inventions and the usage of enterprise.

In drumhead, Etisalat Communication Nigeria ‘s strategic wages and pay strategy encompasses:

Supplying a sense of way by incorporating with HR and concern scheme

Valuing people harmonizing to their ain part particularly at higher degrees

Respecting administration values and paying for what it gets from employees

Adopting a entire wages doctrine

See below an illustration of wage program adopted from Etisalat Nigeria, formulated from the corporate concern study 2010.


Wage Plan



Graded wage ; Same salary construction of all staff, basic benefits such leave entitlements and wellness strategies.

Basic University grade, small or no on the job experience


Hybrid wage and reward strategy embracing both graded and public presentation based wage strategies ; salary graduated table non equal any more but dependent on public presentation and sometimes excess accomplishment or expertness acquired wider coverage of benefits and wellness strategies, more chances for preparation and development

Systematically accomplishing concern aims and run intoing occupation outlooks, to the full dependable and demonstrates a good degree of cognition, accomplishment, effectivity and enterprise.


Majorly public presentation based ; entire wages doctrine is apparent at this point. Salary graduated table varies depending on accomplishments and part to organizational success. Employees at this degree are entitled to more benefits live travel allowance e.g. ( concern category trips abroad ) , more chances for preparation and development

Achieving exceeding consequences ; transcending set marks, doing typical part in respects to concern aims and functioning as a function theoretical account for administration values.



An rating of the wages system of the company shows that it is relatively good to the employees, intending that there is room for employment. From the research worker ‘s findings, the company employs a intercrossed reward-pay strategy which includes an sole ranked wage scheme for entry degree staff and public presentation based/total wages scheme at the higher degrees of direction.

The ranked wage system ; allows for everyone to be paid and rewarded about every bit and publicity is based on the length of clip spent on the occupation ; it is believed that expertness comes with experience and long term on the occupation larning. Most “ alumnus trainees ” are rewarded through this system ; they move and grow at the same gait until a certain degree where more outlook is required. At that phase, merely exceeding staff successfully move from this system, frequently times a batch of employees get frustrated when they have stayed excessively long on this degree and expression for other occupations. Though the ranked wage system is comparatively crystalline, it allows for small preparation and development chances and sometimes fails to recognize exceeding public presentations of staff suitably which may take to demotivation. The assorted degrees present under the ranked wage system of Etisalat Communications include:

Executive Trainee

Military officer

Senior Officer

Performance based wage scheme ; is a direct linkage of payment within the contract of employment to an appraisal of public presentation based on the part or value of the single employee to the administration at one point in clip. ( Pilbeam & A ; Corbridge, 2010 ) . It is at this phase that public presentation is recognised and rewarded severally. The ability to take enterprise and work efficaciously under small or no supervising is greatly expected from employees at this phase. Employees here may besides profit from the entire wages system. The assorted degrees present under the public presentation based scheme include:

Assistant Manager

Deputy trough

The entire wages system ; is one in which fiscal and non-financial benefits are combined to develop a suited attack of wages and wage. It encompasses probationary wage, non-monetary wages ( acknowledgment ) and training/development chances. Reward here is besides extremely public presentation based and requires doing typical part towards accomplishing organizational ends. The assorted degrees present under the entire wages system include:

Senior Manger



The company maintains a moderately high wage policy at all degrees but at a phase requires high competency and public presentation related consequences from staff. As a consequence, hardworking staff in entry degrees might non be adequately rewarded since wages is graded in construction. This may take to employees vacating and seeking other options or losing religion in the administration hereby developing a dreamy attitude towards work. Furthermore, in the ranked wage construction, the underachievers frequently get off with their actions because wages is equal for each staff except in instances of gross incompetency on the portion of the employee. There is small room for preparation and development chances at this degree as accent is placed on “ larning through experience ” . This besides tends to thwart employees to go forth the administration.

At higher degrees of direction, the ranked wage construction is bit by bit shed and public presentation becomes the focal point. There are fewer employees that are rewarded based on public presentation possibly because fewer people are easier to supervise and oversee. However, the inquiry still remains about how to develop an effectual public presentation measuring system. Etisalat Nigeria has an assessment procedure which is largely dependent on line director or supervisor ‘s comments and recommendations. Often, political relations or personal prejudice might fall into drama and disrepute an employee. Besides bookmans have argued that public presentation based reward systems divides squads and encourages persons to prosecute selfish ends. ( Shelton, 2008 ) .

However, there is proviso for preparation, growing and development chances base on section and field. Technical and direction preparations are organised and sponsored ; place and abroad by the company for members of staff. In particular instances, survey leave for every bit long as a twelvemonth can be arranged and sometimes sponsored ( without wage ) , but the employee can handily travel back to his occupation on return.

The entire wages doctrine fundamentally encompasses fiscal and non-financial benefits and employees under a grade wage construction are non entitled to profit from this strategy.

Etisalat ‘s entire wages scheme provides symbolic wagess where appropriate like congratulations and acknowledgment when necessary and practising a civilization of managerial feedback.

Chapter FIVE: Recommendation AND CONCLUSION


Based on the research findings, this research worker proposes an incorporate sum wagess attack for improved employee public presentation and organizational productiveness. This attack encompasses and takes into awareness the importance of civilization and environment, the singularity of different work state of affairss and the diverseness of the concerned group of employees at manus. The geographic expedition of national cultural values when developing a flexible wages system is no uncertainty beneficial in the planetary concern puting. Etisalat Nigeria is a transnational that exists in a multi-cultural environment therefore confronting a diverse work force ; hence, using effectual wages systems is imperative to obtain maximal employee public presentation.

Traveling into item, it was observed in the class of research that all determinations about the wages and systems were made by upper directors and the lower degree employees have small or no influence in the procedure. Puwanenthiren ( 2011 ) suggests that administrations should endeavor to include employees in determination devising procedure about wage and wages strategies. For case employees could be given an chance to give feedback on wages systems.

The research conducted shows that the biggest challenge in actuating the employees in the company particularly in entry degree employees under the ranked wage construction is to happen the right balance between single based wages and company based wages. It seems unjust in company based wagess that people who are under performing artists get rewarded by the difficult work of others. Besides the difference in wage spreads amongst the assorted degrees of employees should be reviewed.


Entire wages doctrine should be modified to widen preparation installations to all members of staff and encourage chances for new learning experiences and besides provide room for flexible work forms, greater clip liberty for persons and health activities. ( Pilbeam & A ; Corbridge, 2010 )

Finally, the administration should endeavor to go on to better on it wages and pay strategy to get at a “ best tantrum ” scheme which suits HR policies and overall concern scheme.



This survey intended to analyze assorted facets and factors required for actuating improved employee public presentation. It is hence discovered that there is positive relationship between effectual wage and wages systems and employee motive towards increased organizational productiveness. From the foregoing, it can be argued that a strategic wage and wages system would finally actuate employees to accomplish organizational aims.



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