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This study is an attempt to investigate welfare program and employee performance in Cadbury Nigeria. The study is meant is to review the essence of the impact of employee welfare Sustainability towards improving Labor Efficiency at Cardbury Nigeria PLC , Ikeja, Lagos State. The study made use of both the primary and secondary sources of data for the research which are the questionnaire, interview and observation while structural questionnaire was the major instrument for data collection. Four research questions were formulated to guide the study. The design was a descriptive survey. A 16 item questionnaire was structured and validated for the study. A sample size of 160 respondents were randomly selected while simple percentage were used to answer the research questions. The study revealed that welfare packages increases the performance of the employees and this makes them to bring out their best thereby helping the organization to achieve their objectives.  Based on this findings, it was recommended that Cadbury management should continue to effectively apply welfare package system and also review it with a view to increase employee’s performance in the long run.  

                                                  CHAPTER ONE


1.1 Background of the Study

Employees’ performance remains the back bone of every organization, without employees organizational goal cannot be achieved. In this era where globalization has taken over market economy and leaving a high competition and demands on employers, the success of any organization depends on employees’ performance. Human resource managers around the world have attempted to increase industrial performance through either employee welfare packages or by increasing the potential capability of machines. Although, in this direction has been saddled with challenges and proven abortive (F.V. Peretomode, 2005).  For instance, in Nigeria, the agitation for the fulfillment of employee needs have culminated in many services to dispute from the general strike of 1945, through the sheeting of coal miner at Enugu in 1949, the deck employee strike of 1964, the minimum wages’ strike of 2013 and the very recent IPPS wages’ strike of 2020. Therefore, welfare benefits for employees became imperative in every organization today.

A lot has been said and written about welfare programs and employees performance by many researchers within and outside the country. According to (Drucker, 2010), workers are essential to the means of production; they deserve to be treated with respect and given proper welfare packages and incentives (Noguera, 2005). These will improve their sense of worth, boost their self- esteem, financial status and act as, a sort of motivation to drive them to have more passion for their job, which is expected to be pursued by employers who look beyond instant profit making as opposed to enduring sustainable business earning of profits in perpetuity (Deeprose & Thorsen 2006). Lack of inadequate welfare packages and other incentives leads to poor workers motivation which greatly affect their outcomes hence, there is need for employers to give staff welfare package and other incentives for the benefits of the employees, employers and the organization (Okereke & Daniel 2010). There have been a lot of concerted efforts at national and international levels to set standards with minimal government interference and free market forces that would serve as a framework to guide labour relations between employees and employers and thus confer on workers certain rights once there is an established contract of employment (Oginni & Adesanya, 2013).

Welfare simply means the state of well-being and implies wholesomeness of the human being. It is a desirable state of existence involving the mental, physical, moral and emotional factor of a person. The term “employee welfare”, “labour welfare”, and “workers welfare” are used interchangeably to denote various services provided by the employers to the employees in addition to wages. The employee welfare programs can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. The non-statutory schemes differ from organization to organization and from industry to industry.

The performance of employees is critical to the survival of the production process in organizations (Namuddu, 2010). On the other hand, employee performance in any organization is vital, not only for the growth of the organization, but also for the growth of individual employee (Meyer & Peng 2006). In order to increase labour welfare, employers offer extra incentives, health benefits, medical benefits and other schemes to make workers to accept mechanization. Welfare programs help motivate the employees for better job performance and also to reduce employer and employees crisis. No establishment can function effectively without a productive staff and the staff can be productive when they receive motivational incentives. These incentives help in boosting their morale and motivate them to put in their best for the actualization of the goal of the organization.

1.2 Statement of the Problem

The most pressing challenge facing every organizations is how best to get employees committed to their work and put in their best towards the accomplishment of organization’s objectives. When hiring employees, the human resource manager hires the whole person and not just their skills. This implies that whatever that affects any aspect of their personality has its consequences on their ability to deliver on the task for which they are hired. Be that as it may, most organizations feel that paying a competitive wage rate is enough to stimulate and sustain the commitment of the employees to duty. While this notion is not totally false as it may meet their economic need, it may not necessarily meet the psycho-social needs of the employees and this can create a snag on their ability to satisfactorily perform their duties. Welfare packages is supposed to include subsidized meals, medical facilities, recreational facilities, subsidized transport facilities, and housing allowance. Welfare programme also include the provision of well-ventilated offices, drinking water, end-of-year parties, rest rooms, toilet, and first aid facilities by the management to the employees. Unfortunately, most Nigerian human resource managers has neglected these aspect of welfare which in return reduces the productivity of the employees. Consequently, effort is made in this study to highlight how welfare programmes can help to increase labour productivity in the Cadbury Nigeria Limited.

1.3 Objectives of the Study

The primary objective of this study is to examine welfare program and employee performance in Cadbury. The specific objectives are:

  1. To investigate the impact of employee welfare Package on Productivity in Cadbury Nigeria.
  2. To ascertain the nature of relationship between employee welfare and productivity efficiency.
  3. To ascertain if good staff welfare packages is the best form of motivating staff performance.
  4. To empirically analyze what actually motivate workers to performance their duties in Cadbury Nigeria.

1.4 Research Questions

For the successful completion of the study, the following research questions were formulated by the researcher to guide the study;

  1. Does employee welfare package impact on productivity in Cadbury Nigeria?
  2. Is there any relationship between employee welfare and employee productivity efficiency?
  3. Is good staff welfare packages the best form of motivating staff performance?
  4. Does employees’ recreational welfare scheme determine employees’ productivity?

1.5 Research Hypotheses

The following hypotheses will be tested in the course of the study;

H0: Employee welfare packages does not impact on productivity in Cadbury Nigeria.

H1: Employee welfare packages does impact on productivity in Cadbury Nigeria.

H0: There is no significant relationship between employee welfare and employee productivity efficiency.

H2: There is a significant relationship between employee welfare and employee productivity efficiency.

1.6 Significance of the Study

It is often imperative to question what would be the significance of any endeavor, be it academic or otherwise. This is also applicable in this study. The researcher anticipates that at the completion of this study, the findings will be beneficial to all organizations especially Cadbury and their staff as it emphasized the need and encourage the establishment of policy guidelines on the efficient and effective welfare programme. The study will be of immense help to different categories of people both the managements, managers, students in various disciplines, the government, employees in different organizations and employers at large. It will also go further to remove the disparity between what motivates and what does not motivate workers in work situation. This study will be of great value to the practicing human resource managers on how to harmonize their resources to effective and efficient result. Finally, it will be of great value to students as a point of reference and will equally form the basis for further research study.

1.7 Scope of the Study

The study on welfare programe and employee performance was narrowed down to Cadbury Nigeria PLC Ikeja in Lagos State. The study is therefore limited to the issue of staff welfare and how it increases job performance and how it impacts the organization at large. This study also covered the challenges of workers and suggested means of overcoming such challenges.

1.8 Operational Definition of Terms


Welfare is the health, happiness, and fortunes of a person or group.

Employee Welfare Scheme

In this study employees welfare scheme is also variously known as the employees welfare services. Employee scheme, the fringe benefits, which the employee receive from the organization besides his pay or salary.


Motivation is a factor which make an employee to participate to action, it is referred to as those factors which arose employee to action and could be measured by identifying various needs of the individuals workers and how such needs influences the behavior of the workers in the work situation in an organization.


This is employees’ contentment about his satisfaction, it could be defined subjectively as the job reward which employee derives from the work situation done effectively. Satisfaction could be measured in terms of difference between what the employee expects from the service he or she referred to the organization and what he or she actually derives.


These are inducements given to an employee of an organization for the purpose of carrying out organizational objectives. It could be measured by the amount of inducement which workers get from the organization and the extent to which such inducement enhances their performances.


Doing things using the instrument ties of other people. It is also the process combining and utilizing or allocating organizational resource by planning, organization directing, and controlling for the purpose of achieving organization objectives.

Decision Making

This is the process whereby solution are pointed to the problem in the organizations, decision making is concerned with the formulation of policies guiding or governing the running of an organization.


This is the amount pain for performing a specific job which its duration is short.


This is a fixed amount of money which is paid to workers in their different places of work usually by end of every month.




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