Background of the Study
The issue of pay is critical in the contract of employment,
which essentially is a double input –output exchange process. It is the very
basic of any contractual relationship at work. The centrality of work place
conflict often centres on the issue of pay.
Compensation is one of the elements of increasing and
maintaining productivity and morals. It is also a course a prime factor in
attracting and peeking good employees.
Compensation administration is therefore one of the
strategic tools employed by companies to attract the retain qualified employees
and contribute a large chunk to the organization expenses. It examines the
means of rewarding and motivating employees for efforts toward the attainment
of the organization goals. Compensation is a systematic approach to providing
monetary and non-monetary employees in exchange for work performance.
Basically, compensation enables
employees to maintain a reasonable standard of living. Beyond this, it provide
a tangible measure of the value of the employees to the organization.
In practical reality, to set-up a successful compensation
administration system, the administration must take certain decision on the
wages level wages structure and individual wages determination.
Economically, man works for money and the money is used more
directly to satisfy his needs, usually, physiological, for purchasing foods for
shelter and for acquiring other good things of life. As a matter of fact money
gives status and a nice saving account as well as a feeling of security.
Statement of the Problem
The cause of the study is in term of the determination of
the effect of compensation administration on workers performance. Since
compensation administration aids in the performance of an organization, it has
to be treated well, the study will therefore endeavour to find out if
compensation administration aids in the performance of an organization.
Prior to the major problem stated above, the following are
specific problems questions that would be investigated.
Can lack of compensation administration bring about
commitment of workers?
Can compensation administration lead to improve workers
1.3 Aim and
Objectives of the Study
The main aim of this research work is to examine the effect
of compensation administration on workers performance.
Others objectives which this research would try to achieve
are as follows:
To know whether compensation administration has been the
actual tools used for improving performance employee.
To know to external of relationship between workers
compensation and their performance.
To know the effectiveness of performance of workers through
At the completion of this research the following cogent
research question must have been satisfactorily provided answers to.
Does compensation administration affect on workers
How does compensation administration affect workers
productivity on Ijebu North Local Government?
Does compensation administration really examines the means
of rewarding and motivating employees for their effort towards the attainment
of the organization goals in Ijebu North Local government.