COMPENSATION ADMINISTRATION: ITS EFFECT ON THE PERFORMANCE OF WORKERS

COMPENSATION ADMINISTRATION: ITS EFFECT ON THE PERFORMANCE OF WORKERS

Chapter One

Introduction

1.1            Background of the Study

The issue of wages is important in employment contracts, which are essentially a double input-output exchange process. This is the basis of any contractual relationship at work. The central importance of conflicts in the workplace often focuses on wage issues.

Rewards are one of the factors that help build and maintain productivity and morale. Of course, it is also an important factor in attracting and scouting excellent human resources. Compensation management is therefore one of a company’s strategic tools for attracting talented employees and making a significant contribution to an organization’s costs. Find out how to reward and motivate your employees for their efforts to reach your organization’s goals. Compensation is a systematic approach to providing financial and non-financial employees in exchange for work performance. Fundamentally, remuneration allows workers to maintain an adequate standard of living. In addition, it provides a concrete measure of employee value to the organization. In practice, to set up a successful compensation management system, management must make certain decisions about pay structures and individual pay decisions.

Economically, a person works for money, and money is used more directly to meet his needs. It is usually physiological, to buy food for housing and to obtain other good things in life. Sure, money gives you status, a good savings account, and a sense of security.

1.2            Statement of the Problem

The purpose of this study is to determine the impact of compensation management on employee performance. Compensation management supports organizational performance and should be handled appropriately. Therefore, the study seeks to determine whether compensation management supports organizational performance. Before the main issue above, there are the following specific issue questions to be explored.

1. Does the lack of compensation controls create obligations for workers?

2. Can compensation management improve worker productivity

1.3     Aim and Objectives of the Study 

The main purpose of this study is to examine the impact of compensation management on employee performance.

Other goals that this research seeks to achieve are:


(1) Knowing whether compensation management is a true tool for improving employee performance.

(2) Know the relationship between worker’s compensation and external performance.

(3) know the effectiveness of workers’ performance through the reward chain;

1.4            Research Questions

At the end of this study, the following compelling research question must have been satisfactorily answered. (i) Does compensation management affect employee performance?

(ii) How will the compensation administration affect worker productivity in Ijeb North City Hall?

(iii) Is the Compensation Administration really investigating ways to reward and motivate employees’ efforts to achieve Ijeb North City Hall’s organizational goals?

1.5           Research Hypothesis

During the course of this research work, the following hypotheses should be tested.

Ho:
Compensation management has no significant impact on employee performance

Hi:
Compensation management has a significant impact on employee performance.

1.7       Scope of the Study

Due to time and financial reasons, this investigation was limited to the operation of the Ijeb-Ode North Local Government (INLG). However, given that INLG is one of the leading municipalities in Ogun State, we hope to cover almost all of the compensation administration and methods of compensation administration in INLG. This research work he carried out over a period of six years (2003-2009).

1.8            Limitation of the Study

This research is essentially confined to his INLG in Ogun State, Nigeria. Ijeb Northern Municipal Government officials are not fully cooperating with the survey for fear of being quoted or being misinformed. Research requires a large amount of money to process the collected data.

Due to the fixed submission of the finished work, the work must be done in a short period of time, so the time limit is also a limitation. Despite its limitations, this study promises to be consistent, reliable, and reliable for further study.

1.9            Justification of the Study

The importance of this research is to find out how well compensation management can be used as a tool to improve employee job performance and better working conditions within an organization.

However, according to different assessments of different motivational theories, rewards through monetary and non-monetary incentives are the primary source of improved employee performance within organizations, and therefore the greatest problem-solver of all. It has been shown to be persuasive to help Issues related to employee performance within the organization.

1.10       Definition of Terms

compensation:
– Includes all remuneration an individual receives as a result of employment. So it’s more than monetary income.

ii. Count:
– The amount a person receives for performing an activity, i.e. direct financial compensation. iii. To use:
In addition to the basic salary, benefits such as paid holidays and health insurance are also available.

IV. Non-monetary:
– Non-monetary compensation that an employee may receive. For example, enjoyment of work done, work environment, prestige, etc.

v. salary:
A regular payment to an employee. It usually represents a relatively permanent employment, expressed in annual installments, usually paid at monthly intervals.

vi. Salary:
Wages in payments for manual labor done. It is most often expressed as a percentage per hair.

vii. Attraction:
– Used to describe wage payment schedules that directly link wages to productivity measures.

VIII. INLG:
Ijeb – a municipality in the north.