THE IMPACT OF COMPENSATION ADMINISTRATION ON WORKERS PERFORMANCE

CHAPTER ONE

INTRODUCTION

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 productivities?

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 compensation chains.

Research Questions

At the completion of this research the following cogent research question must have been satisfactorily provided answers to.

Does compensation administration affect on workers performance?

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.