EMPLOYEE MOTIVATION AND PUBLIC SECTOR FRAUD: EVIDENCE FROM KWARA STATE, NIGERIA

T. A. OLANIYI, T. SAAD, W. O. ABIOLA, S. A. ADEBAYO

Abstract


This study examines the relationship between fraud and employee motivation in the Kwara State public sector with a view to ascertain what will happen to fraud occurrence if good salary, allowances and perquisites, effective working hours, conducive environment, timely promotion are put in place. Multistage sampling technique was used in obtaining the primary data used from 870 respondents selected from 7 local governments in the state and were analysed using Ordinary Least Square Regression and Friedman ANOVA test but interpreted using R2, adjusted R2, Durbin Watson Statistics, F statistics and t statistics. The results show that employee motivational factors (salary, perquisites and regular promotion) can reduce fraud activities among the state employees; this is in consonance with theoretical expectations (Douglas McGregor’s theory Y, Abraham Maslow’s needs theory and Fredric Herzberg’s two-factor theory). Contrarily, allowances, conducive environment and training show a positive relationship with fraud and this is at variance with a-priori expectations. The study recommends that government should improve the working conditions of its employee including the provision of improved salary structure, prompt payment of entitlements and regular promotions as well as provided adequate training to motivate employees towards efficiency, commitment and inhibit fraud inclinations. If all these are in place and erring officials are made to face the full wrath of the law without bias, the state economy in particular and Nigeria economy in general will be better for it.

 


Keywords


tion, Fraud, Public Sector, Employees and Compensation

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