The Effects of Remuneration on the Performance and Performance of Employees in an Organization
Chapter One
The Objective of the Research
The overall objective of the current study is to determine the effect of remuneration practices on employee performance at FIRS. To this end, the study seeks to accomplish the following;
- Determine the effect of FIRS’s base pay practices on employee performance.
- Determine whether FIRS’s bonus structure affects employee performance.
- Determine the impact of FIRS’s monthly allowances on enhancing employee performance.
- Determine the extent to which FIRS’s staff welfare scheme facilitates employee performance.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION:
This chapter reviews previous literatures, journals, newspapers and relevant websites that contribute significantly to the subject matter ‘The Impact of Remuneration on Employees Performance in Organization’. Supporting theories will be also reviewed. Empirical research findings from previous related studies are also presented to give a picture of remuneration practices in different industries, economies and research settings.
PERFORMANCE :
Hellriegel, Jackson and Slocum (1999) defined performance as the level of an individual’s work achievement after having exerted effort. Job performance can be viewed as an activity in which an individual is able to accomplish the task assigned to him/her successfully, subject to the normal constraints of reasonable utilization of the available resources ( Dar, Akmal, Akram& Khan, 2011) . Motowidlo, Borman, & Schmidt (1997) defined job performance as the overall expected value from employees’ behaviors carried out over the course of a set period of time. This definition according to Bullock(2013) although fairly technical, includes specific ideas that are worth breaking down:
- Performance is a property of behavior, or, plainly stated, what people do at work
- An employee’s behavior adds expected value to the organization – that is, an employee’sbehaviors may be distinguished as helping or hindering an organization, but the outcomes ofemployee behaviors are rarely measured so their value is merely expected.
Performance can further be broken down into two distinct types: Task Performance and Contextual performance. Task Performance is the actions that contribute to transforming raw materials to goods and services, the things that are typically included in job descriptions. Examples include selling clothes, drilling holes, or teaching a class. Contextual performance is the behaviors that contribute to overall effectiveness through supporting the social and psychological climate of the workplace. Examples include cooperating with teammates, diffusing conflicts, and cleaning up the conference room (Borman&Motowidlo, 1993) (Bullocks 2013).
Three basic assumptions are associated with the differentiation between task and contextual performance (Borman&Motowidlo, (1997); Motowidlo&Schmit, 1999), : (1) Activities relevant for task performance vary between jobs whereas contextual performance activities are relatively similar across jobs; (2) task performance is related to ability, whereas contextual performance is related to personality and motivation; (3) task performance is more prescribed and constitutes in-role behavior, whereas contextual performance is more discretionary and extra-role (Sonnentag&Frese, 2001). Measurement of employee performance is an activity that is very important because it can be used as a measure of success in supporting the success of the organization’s employees (Said, 2008).
CHAPTER THREE
RESEARCH METHODOLOGY
Research is the process of arriving at a dependable solution to problems through planned and systematic collection, analyzing and interpretation of data (Osuala, 1993).
Green and Full (1975) defines research methodology as the specification of procedures for collecting and analyzing the data necessary to solve the problem at hand such that the differences between the cost of obtaining various levels of accuracy and the expected value of the information associated with each level of accuracy is optimized.
Thus, in this chapter the method and techniques of data collection and analysis for this study are discussed in details, research design, population of study, sample and sampling technique, sources of data collection, research instrument, validity of the instrument, reliability of the instrument, procedure for administration of research instrument, as well as the limitation of the research methodology. This will be important in order to assess the effects of remuneration on the performance and performance of employees in an organization.
Area of the Study
Yobe is a state located in northeastern Nigeria. A mainly agricultural state, it was created on August 27, 1991. Yobe State was carved out of Borno State. The capital of Yobe State is Damaturu; its largest city is Potiskum and was Founded on 27 August 1991 Area: 45,502 km²and its capital is Damaturu.
Yobe was reported to have apopulation of 3.4 million. The study was carried out in FIRS, Damaturu Yobe State.
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from FIRS, Yobe state in order to determine the effects of remuneration on the performance and performance of employees in an organization. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) selected staffs of FIRS, Yobe state.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 50 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effects of remuneration on the performance and performance of employees in an organization. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of remuneration on the performance and performance of employees in an organization
Summary
This study was on the effects of remuneration on the performance and performance of employees in an organization. Four objectives were raised which included: Determine the effect of FIRS’s base pay practices on employee performance, determine whether FIRS’s bonus structure affects employee performance, determine the impact of FIRS’s monthly allowances on enhancing employee performance and determine the extent to which FIRS’s staff welfare scheme facilitates employee performance. In line with these objectives, three research questions and research hypotheses were formulated and three null hypotheses were posited. The total population for the study is 75 staffs of selected FIRS, Yobe state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
In the course of this, it has reviewed relevant literature to show different views of remuneration in an organization. An organization exists to provide goods and services that people desire. These goods and services are the products of the behaviours of workers who occupy different levels of the organizational structure. These people have different cultures, skills and educational background, as well as different perceptions, roles, expectations and values.
Recommendation
The study recommends that both public and private organisation should continue providing security benefits to all employee, as it will positively influence employee productivity and raise overall performance in the all sectors.
The study also recommends that the organisation should continue providing health protection benefits to its employees since it will help them create a sense of loyalty and encourage their productivity in the public sector.
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