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The problems of employee motivation and performance in Nigeria have continued to attract the attention of professional bodies and other interested parties. Research has shown that a substantial portion of the total variable cost in many organization are spent on salaries, wages and fringe benefits and thus often result in main-hour loses due to workers strike or tension between management and worker in a bid for improved organization climate

For worker, fringe benefits represent extra income and additional security. For management, the fringe benefit scheme is hard to fulfill due to recessive economy – although the return from fringe benefit and service may not be ready apparent to the employer, such benefits often satisfy employee’s needs and wants that cannot otherwise be satisfied by salaries and thus fringe Benefit have been considered, valuable by promoting harmonious organizational commitment to duties and obedience to organizational objectives.

In view of workshop or lecture was gathered that some organizational management assumes that if employees are given as many fringe Benefits as possible in addition to their salaries, the performance of the workers may increase and to some extent neutralize any negative or interruptive plans by the unions, hence, fringe benefit are often seen as factors promoting industrial harmony and peace in any organization (filppo 1950: 56)

Consequently, the various ways and salaries supplement scheme have attempted to solve the problem in employer- employee relationship. Source meanwhile, the assumption that Nigerian workers are motivated to perform more by increase ways and other salary supplements, such as paid leave, free health care plans, bonuses, pension and gravity plans and insurance have received some support from both the labour union and Nigerian Government.

Thus evidence by the setting up of eleven different commission on salaries review between 1934 and 1988(EjiforNnamdi and Anigbo (19893)

All these were done in assumption that a worker can be coerced and manipulated to fit the objectives of the organization through monetary rewards or incentives. Therefore, for an organization to achieve its goals of survival and to improve productivity, motivation of workers become very necessary and need to be seen as a vital element of the organizational policies. Good motivational programmer have not always been easy to attain in same organizational because of the problem of selecting the appropriate motivational tools limited resource to finance such programmer and  proper implementation.


Motivation is the force that energizes, behavior, give, direction to behavior, and underlies the tendencies to persist. Efforts to understand the motivation process have centered on several major element, needs cognitive activities and record as whereas re-enforcement issue. It is a known fact that organization cannot succeed without adequately motivating it workers. The importance of motivation to the overall development and progress of any organization cannot be over emphasized. When attitude of workers is generally negative and characterized by dissatisfaction, frustration, lack of interest and commitment. An individual or group with this kind of unhealthy disposition cannot be in a position to voluntarily release his energy to increase his productivity in the interest of the Councils or organization. Such attitude to work is a detriment to the survival of any Local Government or organization in general.

According to Ekundayo (1988) a tangible gain to employees in form of monetary or non-monetary reward. Research has shown that the Health sector has not been performing up to expectation for some reasons which boarders on inability to attract, retain and activate personal effectively and efficiently (Adeoye 1977:11, ifedi 1986:3)

The bulk of the problems may create among workers of on existing salary and fringe benefits scheme as well as poor working condition which lead to suck vices as lateness to work, absentees and in extreme case/ outright resignation.

All these continue to impede on the desire to develop the sector.

It is therefore the trust of this research study to investigate an aspect of the problem of poor fringe benefit scheme, with the aim of establishing its effects on the performance of worker in University of Nigeria Teaching Hospital ItukuOzala Enugu.  This study is also designed to make useful suggestion that will lead to improved fringe benefit administration in the Hospital as a way of engendering better performance among the workers and consequently enhancing the viability of the hospital


The specific objectives of the study were:

i.             To determine whether employment security benefits have an effect on employee productivity in University of Nigeria Teaching Hospital ItukuOzala Enugu.

ii.            To find out whether health protection benefits have an effect on employee productivity in University of Nigeria Teaching Hospital ItukuOzala Enugu.

iii.          To examine whether retirement benefits have an effect on employee productivity in University of Nigeria Teaching Hospital ItukuOzala Enugu.

iv.          To assess whether recognition does enhance employee productivity in University of Nigeria Teaching Hospital ItukuOzala Enugu.


To guide the investigation of the issue raised in the problem definition, it is hypothesized that

H0: Fringe benefits are not helpful in retaining employee in the


H1: Fringe benefits are helpful in retaining employee in the hospital.

H0: There is no direct relationship between fringe benefit ‘package’and employees level of commitment 

H2: There is a direct relationship between fringe benefit package and employees level of commitment.


The study would be significant to all the personnel of the Hospital as they would use the facts presented to improve on that activity. The study will also determine whether or not poor fringe benefit scheme contribute to lateness, absentee turnover, low morale and low level of commitment among workers.

It would be significant to both law makers and policy implementers because they would use the data provided to make more effective laws for the hospital.

It would be significant to Administration and human resource practitioners because they would apply the findings to impacting because they would use the data provided to make more effective laws for the hospital.

It would be significant to Administration and human resource practitioners because they would apply the findings in impacting knowledge


The scope of the study is the impact of fringe benefit and employee’s morale and performance in Nigeria with particular reference to the Nigeria University Teaching Hospital ItukuOzala, Enugu. This study intended to cover some of the major area of scheme with some of resource with be concentrated on employee of all cadres in the Hospital

The major constraint of this research study is the sourcing of the relevant material as some of the materials needed are not readily available.

Another major limitation is the inability of the workers in the Hospital to make available some useful material, which they describe as classified and therefore it cannot be made available.

Money is also a serious impediment. This is as a result of numerous trips. That has to be embarked upon for the purpose of the work. The prevailing like fuel price contributed to the increase of transportation fare. A lot of money is also needed for the typing and binding of the research work itself.

Again, there is issue of time constraint which enforced on the researcher a lot of handwork to ensure that the research was completed with the stipulated time and other factors that cannot be avoided.


FRINGE BENEFITS:  these are addition benefits (monetary or non-monetary) available to workers as a member of an organization apart from be normal salary or ways and which are the total cost of labour.

MORALE;   this is the sum total of the attitude of all the workers of one group. If we can design the attitude of individuals, we can deduce them from the overall. Morale cannot directly be measured.

EFFECTIVENESS:  Any person who received remuneration or to whom any remuneration access by reason of any service rendered by such person to or on benefit of a labour broker.

EMPLOYER:   Duckers (1955) suggested that an employer is controls and direct a servant or worker under an express or implied contract of employment and cor obligated to pay him or her salary or way in compensation.

MOTIVATION:      it can be defined as the process that initiates, guides and maintain good oriented behaviors’.


This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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