COMPENSATION MANAGEMENT AND EMPLOYEES’ PERFORMANCE IN PUBLIC SECTOR, NIGERIA

ABSTRACT

Compensation management is one of the most important aspects of personnel management. It covers economic rewards in form of wages and salaries as well as in various forms of non-wage economic payment known as fringe benefits, indirect compensation or supplementary pay. Therefore, this research work has been carried out to look at the impact of organizational compensation management system on the performance of employees in the public sector.

The result will focus focuses on the analysis of data collected from the field using the questionnaire. It includes the frequency distribution table and the chi-square analysis as well as the inferences made from the analysis.

The need for this study arises from the variation in performance of employees in the organization that has been noticed and this research work hoped to improve the standard and in order to achieve this, project has gone into so many past works of authors and related literatures in order to profound solutions.

The methodology focuses on the techniques employed in the research for the collection of data for the study. It contains explanations on the choice and description of instruments used for data collection. These are discussed under the following .headings: research design, population, sample and sampling procedure, data collection instrument, administration of data collection instrument, method of data analysis. In spite of the multiple benefits and advantages of compensation management and its impact on employee's performance, it cannot still be said that having compensation management policy is a panacea for success in appraising, and managing employee's performance. It is therefore the duty of all managers to ensure that the use of compensating policy meets employee's expectation in order to have good and effective performance.

Keywords: Employee, Performance, Motivation

TABLE OF CONTENTS

Thesis Abstract

TABLES AND FIGURES

DEFINITION OF TERMS

Abbreviations

1 INTRODUCTION

            1.1 BACKGROUND TO THE STUDY

            1.2 BACKGROUND OF THE PROBLEM

            1.3 OBJECTIVES OF THE STUDY

            1.4 RESEARCH QUESTIONS

            1.5 HYPOTHESIS TESTING

            1.6 SCOPE AND LIMITATION OF THE STUDY

            1.7 SIGNIFANCE OF STUDY

            1.8 ORGANISATION OF THE STUDY

2 LITERATURE REVIEW

            2.1 COMPENSATION STRATEGY

                        2.1.1 DEVELOPING COMPENSATION STRATEGY

                        2.1.2 COMPONENTS AND OBJECTIVES OF ORGANIZATIONAL COMPENSATION MANAGEMENT SYSTEMS

                        2.1.3 TYPES OF COMPENSATION

                        2.1.4 EMPLOYEES BENEFITS

                        2.1.5 COMPENSATION DETERMINATION PROCESS

                        2.1.6 JOB ANALYSIS

                        2.1.7 JOB EVALUATION

                        2.1.8 DETERMINING THE ACTUAL COMPENSATION

                        2.1.9 PRINCIPLES OF COMPENSATION MANGEMENT

                        2.1.10 PAY DETERMINATION IN THE PUBLIC SERVICE

2.1.11 RECENT TREND IN COMPENSATION MANAGEMENT IN NIGERIA CIVIL SERVICE

3 THEORETICAL FRAMEWORK

            3.1 CAFETERIA COMPENSATION SYSTEM

            3.2 EXECUTIVES COMPENSATION SYSTEM

            3.3 DETERMINANT OF EXECUTIVES COMPENSATION IN NIGERIA

            3.4 SATISFACTION CAUSES PERFORMANCES THEORY

            3.5 PERFORMANCE CAUSES SATISFACTION THEORY

            3.6 COMPENSATION AND MOTIVATION

            3.7 COMPENSION AND EMPLOYEE PERFORMANCE (RELATIONSHIP)

4 RESEARCH METHODOLOGY

            4.1 RESTATEMENT OF RESEARCH QUESTIONS

            4.2 RESTATEMENT OF RESEARCH HYPOTHESIS

            4.3 RESEARCH DESIGN

            4.4 POPULATION OF THE STUDY

            4.5 SAMPLE AND SAMPLING PROCEDURE

            4.6 DATA COLLECTION INSTRUMENT

            4.7 ADMINISTRATION OF DATA COLLECTION INSTRUMENTS

            4.8 METHOD OF DATA ANALYSIS

            4.9 LIMITATIONS OF THE METHODOLOGY

5 RESEARCH RESULTS

            5.1 ANALYSIS OF QUESTIONNAIRE ADMINISTERED AND RETURNED

            5.2 PERSONAL QUESTIONS TO THE RESPONDENTS

            5.3 TEST OF HYPOTHESIS

            5.4 DECISION RULES

6 SUMMARY AND CONCLUSIONS

            6.1 SUMMARY

            6.2 CONCLUSION

            6.3 RECOMMENDATIONS

BIBLIOGRAPHY

APPENDICES

CHAPTER ONE

1    INTRODUCTION

1.1     BACKGROUND TO THE STUDY

One of the fundamental tasks in human resources management is compensation management. It is a complex task that occurs periodically, demand accuracy and must not be delayed. Compensation management requires integrating employees’ processes and information with business process and strategies to achieve optimal organizational goals and objectives. This can be attributed to the fact that compensation management is an essential tool to "integrate individual efforts with strategic business objectives by encouraging employees to do the right things with ever improving efficiency". (ASH.1993,4). In other words, compensation management is' a powerful means of focusing attention within an organization. They send clear

.messages to all employees of the, organization informing them about expected attitudes and behaviors (Schell and Solomon, 1997, 4).

Furthermore, researchers have argued that compensation management system can create and sustain a competitive advantage for organizations (Milkovich and newsman, 2002,4). In recent years, the inclusion of non-financial measures has gained some popularity in compensation management, while some schools demonstrate positive effects of incorporating non- financial measures in to the compensation management system empirically (Widmier, 2002). He further states that, human resources model of compensation generally assume that higher performance requires greater effort or that is in some other ways associated with disutility on the part of workers. In other to provide incentives, these models predict the existence of reward systems that structure compensation so that a worker expected utility increase with' observed productivity. This reward can take many different forms including praise from suspensor and co-workers, implicit promise of future promotion opportunities, feelings of self-esteem that comes from superiors’ achievement and recognition and current and future cash rewards related to performance.

Koln (1993), argues that failure of compensation system is due to inadequate assumption about human motivation, reason for this can be attributes rather to the measurement of employee satisfaction and employee loyalty' to the organization, Hence, there is a strong need for the development of a holistic reward and performance measurement model enabling an organization to derive company specific success drivers and identify cause and effect relationship when linking rewards to measure such as employees satisfaction and loyalty. Thus, Dalton McFarland (1998), asserted that among the various devices for eliciting the loyalty. Cooperation and effort of individuals are the various forms of economic rewards'

According to Ojo (1997) there are three components of employees’ compensation in an organization which arc (i) the basic pays (ii) the fringe benefits and (iii) performance incentives or bonus. The basic pay is the basic wage in form of salary; fringe benefits are supplementary compensation awarded to employers over and above the basic wage or salary. Since the coming of the term "Fringe Benefits" during World War II, the scope of employees’ benefits has widened markedly in bath developed...

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Item Type: Project Material  |  Attribute: 78 pages  |  Chapters: 1-5

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