CHAPTER ONE 1.0   INTRODUCTION 1.1 BACKGROUND OF THE STUDY         The management of remuneration policies is faced with economic problems in which created a lot of problems in management labour relation in most situations, the unions are being asked to make choice between two desirable alternatives either to accept or reduce workforce in the local government. The economic has reduce the bargaining power of unions and this has made the union leaders to spend substantial amount of time and effort in persuading employers to maintain their working conditions. The idea of choosing between the two alternatives or more appropriately on trade off is a phenomenon which is referred to as a concession bargaining. Basically the union and its members are made to agree to either to allow wage increase or even reducing existing level and adjust other working conditions.         According to Lawrence (1985) “Remuneration is defined as the cost of employing people which include salaries and wages, taxes, insurance, pension, the cost of department whose work is largely concerned with personnel. Remuneration is of utmost important to both the management of a local government employer and employees. Also the method of payment should be affair and afford the maximum possible satisfaction to employees and employers of local government. The nature of the organization work or relative work of job will go a long way in determining her remuneration. If the employees are not well remunerated, it might led to high turnover and also employees will not put in their best in the organization. Employer or individual has to be provided with an opportunity to realize his or her own potential. Hence, the effectiveness of an organization is ultimately determined by the degrees to which it helps its members to achieve their individual objectives. It is therefore obvious that he major problem facing a local government in Nigeria today is how they remunerate their employees towards high performance. This has created a lot of problems in the management of human resources in diverse local governments in Nigeria. As a result of poor remuneration , employees in the public sectors and the local government have developed several unethical behaviour which have adverse effects on their productivity in the organization and the local government.   1.2   STATEMENT OF PROBLEMS         Poor remuneration has been the problem of public organizations in Nigeria, most especially in the local government system. Workers in the various local governments suffer a lot of hardship as a result of poor remuneration. An average local government staff cannot afford what it takes to live a decent in this 21st century as what he or she takes home as a salary is nothing to write home about. This abysmal situation results in scenarios where poor productivity becomes inevitable to the local government workers in search of what to do to earn a living. Local government workers abandoned their duty post and engage themselves in other business. They exhibit lackadaisical attitude toward their jobs as they imbibe such negative work habits as lateness to work, absenteeism, loitering, alcoholism and socialism on duty, laziness and lack of interest in their job.         Today negative work ethics of social, moral, psychological and administrative dimensions reign supreme in the local government system.         In view of the foregoing discussion, this study attempts to provide answers to the following questions. 1.  What are the courses of poor remuneration in Nigeria local government? 2.  What are effects of poor remuneration in Nigeria local government administration? 3.  What are the remedies for poor remuneration in Nigeria local government?     1.3  OBJECTIVES OF THE STUDY         The general objective of this study is to examine how poor remuneration system in Nigeria local government affects productivity of their staff with special reference to Deknia local government area, Kogi state. In specific terms this is aimed at: 1.  To identify the course of poor remuneration to the employees in Nigeria local government administration. 2.  To examine the effects of poor remuneration on workers’ productivity in the Nigeria local government 3.  To recommend ways to improve the poor remuneration and employees productivity in the Nigeria local government administration.     1.4   SIGNIFICANCE OF THE STUDY         The sole aim or essence of any research is to find out fact, in this project all the facts being gathered by the researcher will be of tremendous help and it will serve as guides not only to the management of the local government administration but also to the staff of the local government as well.         Secondly, it helps the management to discover any area of dissatisfaction of their workers in the local government.         Thirdly, it will help to examine the causes of poor remuneration to workers in the local government and also the strategic policy to be used by the management of the local government to overcome its poor remuneration. 1.5   SCOPE AND LIMITATIONS OF THE STUDY         This research work covers Dekina local government area of Kogi State. This study aimed at analyzing the local government. However, it is also aimed at studying the effects of wage incentive on workers performance and productivity, also to compare the theory with finding to make reasonable recommendations and effective workers performance and productivity in Dekina local government area.         It is very demanding to embark on a project like this without no constraint. The most doubting problem encountered in the course of this research is that of collection of data which is as a result of the ill-equipped library in the federal polytechnic Idah. Coupled with this is financial limitations of the researcher to travel to where adequate data could be sourced. Also, time constraint is another nagging problem that the research could not do away with as other limitations, the researcher has to resort to prudent management of available meager resources by consulting relevant textbooks, journals and newspapers. 1.6   HYPOTHESIS         This is alterative statement put forward by the researcher for acceptance or rejection. Thus, in this research work, the following hypothesis are put forward:- Hi: Poor remuneration affects employee’s productivity in the Nigeria local government administration. H0: Poor remuneration does not affect employee’s productivity in the Nigeria local government administration. Hi: Employee’s low productivity in the Nigeria local government administration is because of poor remuneration.     H0: Employee’s low productivity in the Nigeria local government administration is not because of poor remuneration. 1.7   DEFINITON FO KEY WORDS For the purpose of this study the following key words are used to convey these meanings to the readers. Remuneration:  This is an equitable compensation paid to the employees for their contributions towards the local government administration success. Policies: A general rule within which the management is to make its decision, finding and attitude towards any particular activity of the local government employees. Management: This is the direction of human behaviour towards a particular objective and also the co-ordination of all activities within the local government so as to work towards particular goal or objective of the local government. Salary: this is the amount of money paid to workers or staff of any local government at the end of every month. Productivity: This is the rate or level at which a staff or an employees of any local government is willing and able to put his or her best performance to attain the goals and objective of the local government organization or administration. Collective Bargaining: This is the activities which involve the negotiation workers condition of services with the management of the local government by the staff or employees union of the local government administration. Fringe Benefits: These are the rewards or benefit received by the staff or employees of the local government in addition to their regular pay or salaries. These include leave grant, insurance, pension policy and transfer benefit.