The Impact of Compensation and Reward System on Organizational Performance in Total Nigeria Plc Kaduna
CHAPTER ONE
Objectives of the Study
The major objective of this study is to examine and assess the impact (if any) of reward and compensation system on the productivity of employee in an organization. The specific objectives therefore, are to;
- Draw the attention of management to prompt, timely and adequate compensation of employee
- Analyse the available reward package and how it affect employees and organizational performance
- Ascertain the need for management to create a conducive working environment by providing both physical and psychological incentires to make employees more committed to organizational goals
- Encourage a good reward and compensation policy which should be channeled toward increasing organizational productivity.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Meaning of Compensation
“Pay them before their sweat dry up.” Hassan (2009). The quotation above captures the essence of our discussion on compensation, people commit to work in organization because they expect that their effort would be rewarded accordingly and immediately. Determining efforts and the pay reward that is commensurate to their effort is one of the most interesting and challenging jobs of human resource function. This function is increasing becoming difficult for managers, because they must strike a balance between controlling labour cost and providing enough compensation for the effort of employees. In today’s organization, compensation is fast becoming the largest and single most important cost. In come organizations, labour cost can be as high as 50% to 60% of all costs. Because of this, success in most organization is determined by how well compensation narias are allocated.
Hassan (2009) still looks at compensation as the reward that employees receive for their contribution to an organization growth and profitability. The reward may be financial remuneration and some form of benefits (extrinsic or intrinsic in nature).
Wether and Devis (1981) define compensation as what employee receives in exchange for their contribution into the organization. While Glueek (1982) on his part sees compensation as all forms of financial and service and benefit employee receive as part of employment relationship which could be direct or indirect.
It is not uncommon for manager to link compensation only to salary and wages, however, studies have shown that employees desire monetary gain or economic benefit that they are entitle to due for their contributions to the organization or as part of the employment relationship. So as part of the employment relationship. So compensation covers the nominals ways, real wages, take home pay, leave grant and statutory minimum wages.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
Research methodology can be seen as the process through which genuine and reliable answer to problems is given through a planned and systematic method of data collection, analysis and presentation. It describes the sort of data to be collected and what instrument to be used.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
This section deals with the presentation and analysis of data collected from the respondent of fourth (40) employee.
The data analysis section also deals with the interpretation of data presented. The data were analyzed through the use at table and an mean, chi –square was used to test the hypothesis formulate. The data collected are hereby presented and analyzed below.
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATIONS
Introduction
This chapter summarizes the finding of this study, draws conclusion and make recommendations.
Summary
This reward on compensation of any organization play’s extremely great role to the organizational productivity, it is the bases of attracting potential applicants, retaining employee, motivating them and facilitate individual contribution to organization objective and the basis of administrating pay policies within legal framework an effective reward and compensation system will enhance organization to attract and retain a productive workforce and minimize labour turnover rate but if the reward and compensation is not effective it will reduce employee’s moral, job satisfaction, increase truancy absenteeism and lower job attraction which will reduce employee performance as well as reduce Labour turnover.
The compensation policy ensure promotion, recognition of employee based on years of services or productivity because it boast their moral.
It is also discovered that reward policy of any organization increases productivity because they are sure that their effort will be reward but when they fail to participate fully they may not get some of the reward as it is base on performance as the management understand that when employees are expecting reward of their performance they tends to work harder.
In total plc there is no role conflict which may lead to labour turnover they made to ma— job design simple and clear through proper job analysis to ensure conductive working environment in both context and content which are structured to influences employee’s commitment to the productivity of the organization.
Conclusion
Conclusively, the researcher has undergone series of comparative analysis on the study about impact of reward and compensation system on productivity of employees.
Recommendations
After a careful research on the topic impact of reward and compensation system on the productivity of employees: is valuable to achieve employees loyalty and commitment to the organization therefore, the researcher makes the following recommendations to both the management of total plc and other management of the same identity to adopt the same recommendation, which is properly implemented will stimulate the employees for greater productivity which will result to achievement of the organizational goals and objectives.
- A good organizational insurance policy developed for all employees especially if word hazard is involved, it will serve as a motivational too for employee who understand hat they are under care.
- Reward and compensation should always be reviewed in line with economic trend, there should be frequent staff recognition in terms of their individual contribution to the achievement of organizational goals and objectives, either on monthly or quarterly basis this will enhance competitive.
- Management should be able to identify employee’s expectation, promotion and recognition always based on employees performance and avoid variation of rewards offered and the expectation, so that it can serve as motivation for others.
- Management should incorporate employee’s opinion and involve them in decision making process through effective communication channel.
- Reward and compensation should be structured to always retain productive workers without necessarily inflating the organization ages and bills.
The management of total plc has been able to channel the effort of employees commitment and productivity yet all human resaua policies should ensure that the reward within the organization encompass adequate compensation effective job analysis process, effective reward polices will minimize organizational conflict, job dissatisfaction and enhance work relationship.
REFERENCES
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