ABSTRACT
Compensation is recompense, reward, wage or salary given
by an organization to persons or a group of persons in return to a work done,
services rendered, or a contribution made towards the accomplishment of
organizational goals, and any organizations who fail to compensate its employee
adequately may not be able to achieve.
Based on above premises, this research study was set out
majorly evaluate various mechanism of compensating workers, ensuring good
productivity and in a view of archiving organizational goals.
The study was carried out with the use of questionnaire
research instruments, whereby hundred respondents were elicited information
from with the aid of questionnaires.
The study reveal that if all forms of incentive (Fringe
benefits, adequate compensation, training and better remuneration etc.) were
granted to the employees from time to time, it could enhance their performance
thereby engendering organizational goals and better productivity.
Key word:
Compensation, productivity and employee.
TABLE OF CONTENTS
Table of Content
Cover Page
Certification
Dedication
Acknowledgement
Abstract
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 Statement of
Problem
1.2 Research
Question
!.3 Aim and Objectives of the Study
1.4 Significance
of Study
1.5 Limitation
to the Study
1.6 Operational
Definition of Terms
CHAPTER TWO
2.0 Literature
Review and Theoretical Framework
2.10 Introduction
2.1.1 Historical Theories of Compensation
2.1.2 Contemporary Labor Market Theories
2.1.3 Reinforcement and Expectancy Theories
2.2.0 Contemporary
Industrial Relations Theory
2.2.1 Compensation and Incentives:
Practice vs. Theory
2.2.3 Recent
Developments
2.3.0 Research
Hypotheses
CHAPTER THREE
3.0 Research
Methodology
3.1 Data
Collection Method
3.3 The Study
Population
3.4 Research
Instrument and Techniques
CHAPTER FOUR
4.0 Data
Analysis and Result Interpretation
4.1 Introduction
4.2 Data
Analysis
4.3 Re Statement
of Hypotheses
4.5 Hypotheses
Testing
CHAPTER FIVE
5.0 Findings
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire
CHAPTER ONE
BACKGROUND OF THE STUDY
1.0 INTRODUCTION
Remuneration in
form of money seems most acceptable to people in an industrial society where
paid jobs are common. Money can buy basic needs; it can also buy power and
social status, it is a reward to work. For jobs that are generally challenging,
nor very interesting, or for those that do not require much training and skill,
and are not offering lifelong career, money is the only motivator. A person in
a paid employment in a managerial capacity normally has some motivation that
makes him spend his day at work this may be in form of offer of additional
reward, prospect of promotion, or other specific incentives, that add value to
his basic needs of reward and security.
Human resources
management strives to achieve organizational goals and the goals of the employees
through effective personnel programs policies and
procedures. Successful performances of the personnel function can
greatly enhance the bottom line of any organization. the personnel
practitioners however are challenged more today than at any time in the history
by a changing and more demanding labour force that has high expectation about
the work place. At the same time, rapidly advancing technologies and outside
influences are changing the nature of our jobs. It is thus more critical and
more difficult to maintain a work environment that motivates and satisfies
human resources.
Edward (1976)
states that personnel management is the planning, organizing, directing and
controlling of the procurement, development compensation, integration,
maintenance and separation of human resources to the end that individual
organizational and social objectives are accomplished.
According to Wayne
(1980) "compensation which includes direct cash payment, indirect payments
in form of employee’s benefits and incentives to motivate employees to strive
to higher levels of productivity is a critical component of the employment
relationship. Compensation affected by forces as diverse as labour market
factors. Collective bargaining, government legislation and top management
philosophy regarding pay benefits.
Compensation is
recompense, reward, wage or salary given by an organization to persons or a
group of persons in return to a work done, services rendered, or a contribution
made towards the accomplishment of organizational goals, and any organizations
who fail to compensate its employee adequately may not be able to achieve.
Its set objective
because a good compensation package is a good motivator. Hence, the primary
responsibility of the Human Resources manager is to ensure that the company's
employees are well paid.
1.1
OBJECTIVES OF REWARD
i.
To attract capable applicants
ii.
To retain employees so that they don't quit
iii.
The employees is motivated for better performance
iv.
Reward desire behaviour
v.
To ensure equity
vi.
To control cost
vii.
Facilitate easy understanding by all i.e. employee
operating manages and human resources personnel
1.2 STATEMENT OF PROBLEM
Organization is
defined as a group of people working together to achieve a common goal and for
the organization to be able to achieve the common or set goal, its personnel
which is the most important factors of production, should be compensated or
reward adequately for them to be able to do their work effectively, because it
is the personnel that will plan, organize, control and coordinate all the other
factors of production, and it is very important for any management that want to
survive or achieve its goal to be concerned about the welfare of its employees.
Research has also
shown that a well-paid / motivated employee has the tendency to bring out his
or her best in the work place than an employee that is not well motivated
.Abraham, (2000)
From one research
noted by Cole, (2005) .It is assumed that causes of employee been motivated is
different in Radisson blue hotel ltd Victoria Island Lagos
This study
therefore intends to evaluate the effect of compensation on employees'
productivity.
1.2
RESEARCH QUESTIONS
i.
Does compensation has any impact on workers performance?
ii.
Can compensation package be used to reduce the rate of
labour turnover?
iii.
Does reward system has any impact on shareholders
dividend?
iv.
Can reward policy be used to ensure desired behaviour?
v.
This research work will also bridge the gaps in
knowledge/curiosity for future research
1.3 AIM AND
OBJECTIVES OF THE STUDY
The purpose of
this study is as follows:
i.
To evaluate the effect of compensation of employees
productivity.
ii.
To shed more light on the various ways of compensating
workers
iii.
To estimate the extent at which a very good compensation
policy can be used to achieve organizational goal
iv.
To fulfill the requirement for the award of bachelor
degree in industrial and personnel management department of Lagos state
university Ojo Lagos.
1.4 SIGNIFICANCE
OF THE STUDY
This study will be
of a great importance to the following:
i.
It will serve as a guide to management in the area of how
to prepare compensation package that will be fair to both the management and
its employees.
ii.
This research work will also be useful to policy makers,
in terms of making policies that will be favourable to both employees and the
employees
iii.
This study will also contribute to knowledge by adding to
the literature review of the research topic /
iv.
This study will also explore the area of recruitment and
selection that has not been reached.
1.5 LIMITATIONs OF THE STUDY
This study was
limited by the following key factors:
i.
TIME: The time frame given for the submission of this
project is too short.
ii.
FINANACE: There is no enough financial backup for the
researcher for carrying out a comprehensive report of this nature.
iii.
RESPONSE: The response of some of the respondents IS not encouraging at all, due to fear on
the part of the respondents.
1.6
OPERATIONAL DEFINITION OF TERMS
i.
ASSETS : These are the
properties owned by an individual or a business, which can be used or sold to
pay a debt
ii.
AUTHORITY: Authority is the
right to give orders and the power to ensure obedience.
iii.
BUSINESS
ORGANIZATION: This is an enterprise that provides goods and services
for the satisfaction of human needs.
iv.
CAPITAL: Is a source of
income that cannot be consumed without affecting the income.
v.
COMMUNICATION: Communication is
the process of transmitting of information from one person to another in a
language they both understood.
vi.
COMPENSATION: Can be defined as
the money received for the performance of work plus many kind of benefits and
services that organizations provide for their employees.
vii.
DELEGATION: Delegation can be
defined as the assignment of authority, duties and operating responsibilities
to another person for carrying out specific activities.
viii. EFFECTIVE: It is the ability to determined
appropriate objectives, doing the right thing. Organizations effectives can be
explained as the efficient and effective co-ordination of functions in order
achieve a desire effect or result.
ix.
EFFICIENCY: The ability to minimize
the use of resources or achieving the organizational objective "doing
things right".
x.
FINANCE: Finance is the
provision of money when and where needed
xi.
LEADERSHIP: Leadership is the
process of influencing others to work willingly toward an organizational goal
with confidence and keenness
xii.
LABOUR TURNOVER: Labour turnover
is a measure of the number of employees leaving / being recruited in a period
of time (day / year) expressed as a percentage of the labour force.
xiii. MANAGEMENT: Management is the art of getting things
done through other people.
xiv.
ORGANIZATION: Organization is a
collection of people who have come together to achieve a common objective and a
specific goal.
xv.
PRODUCTION: Production can be
defined as the process of coordinating the efforts of men and materials with
the aim of converting raw materials to finished goods and services that will
satisfy human wants and needs.
xvi.
RECRUITMENT: Is the process of
looking for the right persons, the identification of appropriate personnel in
internal and external labour markets.
xvii. SELECTION: Refers to a choice among alternate
applicants (external) or candidates (internal) for operations.
xviii. RESEARCH: Research is a quest for knowledge
pertinent to an identified area of interest or problem through the application
of scientific process.
xix.
RESPONSIBILITY: Responsibility is
an obligation to use authority to see that the duties are performed.
xx.
PERSONALITY: Personality is
the total pattern of characteristic ways of thinking, feeling and behaving that
constitute the individual's distinctive method of relating to the environment.
xxi.
SERVICES: Any activity or
benefit that one part can offer to another that is essentially intangible and
does not result in the ownership of anything.
xxii. JOB ANALYSIS: Is the process of examining jobs in
order to identify the key requirements of each job.
xxiii. JOB SATISFACTION: The feeling an employee has about his
job. It is an emotional response to tasks as well as the physical and social
condition of the work place.
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