Compensation Strategy and Organizational Performance
Chapter One
OBJECTIVE OF THE STUDY
The main objective of the study is to investigate compensation strategy and organizational performance. The specific objectives are;
- To ascertain the effect of overtime on organizational performance in Nigerian Bottling Company,ESEHI NIG. LTD and AVERY NIGERIA LTD
- To ascertain the effect of allowances on organizational performance in Nigerian Bottling Company,ESEHI NIG. LTD and AVERY NIGERIA LTD
- To find out the effect of fringe benefits on organizational performance in Bottling Company,ESEHI NIG. LTD and AVERY NIGERIA LTD
CHAPTER TWO
Review of related literature
Conceptual framework
Compensation strategy
According to Moghimi et al. (2017), compensation strategy should be able to ensure the retention of the employee, employee’s satisfaction, the development as well as performance the employee. General findings showed that it possesses positive notable connections among incentive allowances, bonuses, fringe benefits, and salary. In brief, there is a co-bonding between these variables, which undoubtedly consider performance as a connection among the compensation benefit schemes, levels of employee contentment, and turnover rate. This concluded that organizations with upgraded compensation system may have an impact on their employees. This will psychologically encourage them to be in the organizations (Wucher et al., 2017). Linking “compensation to performance” is one of the strategies being followed all over the world in all sectors for talent management and employee retention. Generally, it is called “Pay for Performance” or “Performance-based pay” to describe that compensation depends on the performance of the employees and their contributions to attain the organizational goals (Tima, 2011).
The vigorous relationship between the compensation elements schemes leads to a strong assumption of employee retention (Adeoye & Fileds, 2014). Compensation strategy needs to have upgrade frameworks that can motivate, retain, attract, and satisfy the employees and thus leads to employee retention and satisfaction. According to George et al. (2016), this motivates the best performers to be more enthusiastic and can also prepare them to be more competitive within the organization. Furthermore, Nchorbuno (2011) opined that a pure integral section of HRM is the compensation that assists and inspires the employees as well as to develop the organizational effectiveness to a certain extent. Thus, the connection between compensation and work performance can be assured, as stated by Quartey and Attiogbe (2013). The dealing of compensation should be implemented to every sort of achievement the employees had received such as accomplishing organizational tasks with an expected outcome of the individuals who are thoroughly interacted with the work, contented, and inspired to perform a better performance for the employer (Premalatha 2013; George et al., 2016). Njoroge and Kwasira (2015) discovered a major association concerning the strategies of the compensation and the performance of the employee. For example, MaysounBaqer Mahdi (2015) elaborated that an organization can attract, motivate, and retain their employees by offering competitive salaries and suitable rewards based on their performance and development in the organization. Furthermore, Inés and Pedro (2015) further mentioned that the compensation system is applied to bring out its significant effects on the employees’ performance. Today, many organizations around the world are trying to discover an innovative compensation strategy that can enhance the performance of the employee directly (Denis & Michel, 2011).
Chapter Three
Research methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD in order to determine compensation strategy and organizational performance. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) selected staffs of Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings
As mentioned in chapter three, 63 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain compensation strategy and organizational performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of compensation strategy and organizational performance.
Summary
This study was on compensation strategy and organizational performance. Using Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD as a case study. Three objectives were raised which included: To ascertain the effect of overtime on organizational performance in Nigerian Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD, to ascertain the effect of allowances on organizational performance in Nigerian Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD and to find out the effect of fringe benefits on organizational performance in Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD. The total population for the study is 75 selected staffs of Nigerian Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The main aim of this study is to comprehensively review the connection between the compensation strategy and its impact on the employee’s performance (EP). Based on this research, it can be concluded from the review of literature that the compensation strategy is highly linked with employee performance (EP). Several studies revealed that compensation, allowances, fringe benefits are crucial to improve the employee’s performance. However, without these benefits, it can hinder the worker’s performance development and professional growth. Furthermore, the compensation strategy can also improve ensure the employee’s development and employee retention in the organization.
This study summarized the compensation strategy have a positive effect on employee performance in Nigerian Bottling Company, ESEHI NIG. LTD and AVERY NIGERIA LTD.
Recommendation
The study also recommends that the organization should continue providing health protection benefits to its employees since it will help them create a sense of loyalty and encourage their productivity in the company. The study further recommend that the company should review the current retirement package since a good retirement package will attract and retain employees in the company and also improve their productivity which will translate to optimum performance. The researcher recommends that a proper salary survey and job evaluation vis-à-vis total rewards received to be commissioned in a bid to ensure there is internal and external equity in the organization and that motivation is driven by the right fundamentals. Finally, the study recommends that public organizations need to improvise employee recognition programs for jobs well done; this will motivate employees thus enhancing employee productivity in the company
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