Project Abstract

<p> <i>Compensation is the reward workers receive for their<br>service or contribution to the organisation. A literature reviewed showed that<br>compensation packages have relationships with workers’ job satisfaction. A<br>study established a theoretical framework based on equity theory and used it to<br>examine how different compensation packages might be influencing workers’ job<br>satisfaction. The Positivist paradigm; which holds principles that knowledge is<br>arrived at through the gathering of facts that provide the basis of laws,<br>guided this empirical research, focused on the public University of Jos,<br>Plateau State, Nigeria. A questionnaire was developed, pilot-tested and<br>administered to gather the data on workers’ job satisfaction regarding four<br>compensable aspects, namely salary, allowance, gratuity and pension. A total<br>of 100 questionnaires were administered and 100 were collected, representing a<br>response rate of 98%. No questionnaire was invalid or returned uncompleted. The<br>respondents were selected using the stratified random sampling technique. The<br>data collected was analysed using simple percentage method. The findings of the<br>study revealed that compensation impacts positively to employee’s performance<br>in public sector.</i> <br></p>

Project Overview

<p> </p><p><b>1.0<br>INTRODUCTION</b></p><p>One<br>of the fundamental tasks in human resources management is compensation<br>management. It is a complex task that occurs periodically, demand accuracy and<br>must not be delayed. Compensation management requires integrating employees’<br>processes and information with business process and strategies to achieve<br>optimal organizational goals and objectives. This can be attributed to the fact<br>that compensation management is an essential tool to “integrate individual<br>efforts with strategic business objectives by encouraging employees to do the<br>right things with ever improving efficiency” ASH (1993,4). In other words,<br>compensation management is’ a powerful means of focusing attention within an<br>organization. They send clear .messages to all employees of the, organization<br>informing them about expected attitudes and behaviors Schell and Solomon (1997,<br>4).</p><p>Furthermore,<br>researchers have argued that compensation management system can create and<br>sustain a competitive advantage for organizations Milkovich and Newsman (2002,4).<br>In recent years, the inclusion of non-financial measures has gained some<br>popularity in compensation management, while some schools demonstrate positive<br>effects of incorporating non- financial measures in to the compensation<br>management system empirically Widmier (2002). He further states that, human<br>resources model of compensation generally assume that higher performance<br>requires greater effort or that is in some other ways associated with<br>disutility on the part of workers. In other to provide incentives, these models<br>predict the existence of reward systems that structure<br>compensation so that a worker expected utility increase with’ observed<br>productivity. This reward can take many different forms including praise from<br>suspensor and co-workers, implicit promise of future promotion opportunities,<br>feelings of self-esteem that comes from superiors’ achievement and recognition<br>and current and future cash rewards related to performance.</p><p>Koln (1993), argues that failure of compensation system is<br>due to inadequate assumption about human motivation, reason for this can be<br>attributes rather to the measurement of employee satisfaction and employee<br>loyalty’ to the organization, Hence, there is a strong need for the development<br>of a holistic reward and performance measurement model enabling an organization<br>to derive company specific success drivers and identify cause and effect<br>relationship when linking rewards to measure such as employees satisfaction and<br>loyalty. Thus, Dalton McFarland (1998), asserted that among the various devices<br>for eliciting the loyalty. Cooperation and effort of individuals are the<br>various forms of economic rewards’</p><p>According to Ojo (1997) there are three components of<br>employees’ compensation in an organization which arc (i) the basic pays (ii)<br>the fringe benefits and (iii) performance incentives or bonus. The basic pay is<br>the basic wage in form of salary; fringe benefits are supplementary<br>compensation awarded to employers over and above the basic wage or salary.<br>Since the coming of the term “Fringe Benefits” during World War II,<br>the scope of employees’ benefits has widened markedly in bath developed and<br>developing countries. Such benefit covers a wide range of rewards which<br>provides security, deferred remuneration and various services for employees.<br>The significance of the subject matter, Compensation emanate mainly from the<br>fact that it provides income to workers and constitutes an important cast item<br>to the employers, the largest single cast item for many organizations. For the<br>workers, wage provides the means of satisfying their wants and needs.</p><p><b>1.1 STATEMENTS OF THE PROBLEM</b></p><p>The relationship between organizational compensation system<br>and employees performance is indispensable, though some surrounding factors may<br>determine the satisfaction one derives from the other. The high inflation rate<br>which has led to high cost of living, law income and, purchasing power can be a<br>reason for poor performance. In order to achieve the needed output level, the<br>Nigerian managers faces an uphill task in trying to fashion out a reward system<br>which does not have to necessarily be totally monetary inclined to motivate and<br>bring out the best in employees to whom morale would have been affected by the<br>bad state of socio-political and economic sphere of the country. The question<br>now is, can there be a reward system that could adequately have an effect on<br>workers performance? How often is this system reviewed? Would a fixed<br>organizational compensation system bring out the required performance? Does the<br>system reward the right set of employees? Would the outlined reward solve the<br>immediate problems of workers in order to boost performance? Can the reward<br>system stand out the test of time? Most times, only good behavior is rewarded<br>while performance based reward is ignored. Also, some organizations confuse<br>activity with action and reward those who seem busy, yet the quiet employees<br>may have been doing the bulk of the work. From this, there is need for<br>management to build its reward system along the line of actual performance and<br>actual level of work, input and productivity. Therefore, the problem of trying<br>to figure out these loopholes with intent of correcting them forms the basis<br>for this research.</p><p><b>1.2 OBJECTIVES OF THE STUDY</b></p><p>Specifically, the purposes of the study are as follows;</p><p>1. To investigate the different compensation packages that<br>exists in the public sector most especially in Nigeria.</p><p>2. To assess the effect or impact or these compensation<br>packages on employees performance.</p><p>3. To identify the compensation packages that motivates<br>employees to the highest degree of performance.</p><p>4. The study seeks to determine the perceptions of employees<br>concerning the compensation packages.</p><p>5. To offer suggestions on how the public sector can provide<br>an effective compensation packages.</p><p><b>1.3<br>RESEARCH QUESTIONS</b></p><p>The<br>research questions were directed specifically to address the following issues;</p><p>1.<br>How is compensation management at the University of Jos?</p><p>2.<br>Does the compensation system have effect on employee’s performance?</p><p>3. How often is the compensation system at the<br>University of Jos being reviewed?</p><p>4. Are there any other factors by which employee’s<br>performance can be improved upon through compensation packages?</p><p>5. What are the factors being considered in carrying out<br>compensation policy exercise at the University of Jos?</p><p><b>1.4 SCOPE OF THE STUDY</b></p><p>The study shall be carried out within the Nigeria public<br>sector.</p><p>The project is intended to cover the compensation management<br>system and how it relates to the individual employee in the organization and<br>also to the organization.</p><p><b>1.5 SIGNIFANCE OF STUDY</b></p><p>The information from this research will add to the study of<br>the knowledge and theories on the subject matter of compensation.</p><p>This study was brought about by the persistent quest for<br>higher employees performance by several organizations especially Nigeria. The<br>basic question to date is how well the use of compensation packages relates<br>positively to employees performance. Finally, the outcome of this study will<br>pose a challenge for future researchers or students who may be interested in<br>carrying out more research in this area and it will also serve as reference<br>materials for students.</p><p>The significant of is than it is a portal requirement for the<br>award of National Diploma in business studies of Plateau state poly barki ladi</p><p><b>1.6 DEFINITION OF TERMS</b></p><p><b>COMPENSATION: </b>This refers to direct and<br>indirect rewards given to employees on the basis of the value of the job, their<br>personal contributions and their performances.</p><p><b>PERFORMANCES: </b>The extent to which an<br>employee or group of employees have gone in achieving the set goals or<br>standards.</p><p><b>EMPLOYEES</b>: Person who work for<br>compensation weather direct or indirect for another in return for stipulated<br>series.</p><p><b>ORGANIZATION</b>: A group of people who<br>form a business ill order to achieve a particular aim.</p><p><b>PUBLIC SECTOR</b>: The area of the<br>nation’s affairs ‘under governmental rather than private control.</p><p><b>POLICY: </b>A course of action adopted and<br>pursued an organization, government, ruler, political party etc.</p><p><b>TARGET: </b>A result arrived at a goal or<br>objectives aim at something.</p><p><b>PRODUCTIVITY: </b>The measure of the<br>output of goods and series relative to resource’s available</p><br> <br><p></p>