ABSTRACT
The study examines executive compensation packages and job satisfaction of fast consuming goods companies. Precisely, the study focused on Cadbury, Nestle and Dangote Nigeria Plc. The study employed descriptive survey method. The population of the study comprises of all management staff of Cadbury, Nestle and Dangote Nigeria Plc. The study adopted simple random sampling technique to select the sample for the study. Data for the study were collected through the use of structured questionnaire. The data collected were analyzed through the use of descriptive statistics of mean and standard deviation while the hypothesis was tested using regression techniques. All analysis was carried with the aid of SPSS. The result from the analysis reveals that executive compensation packages such as long term incentive and retirement plan has positive and significant effects on job satisfaction of fast consuming goods companies. It was also found out that annual incentives, bonuses and supplemental retirement plan has negative and significant effects on job satisfaction of management staff of fast consuming goods companies. It was recommended that Fast consuming goods companies should encourages long term incentives plan and retirement plan for their management staff as it increases job satisfaction for the management staff.
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
In contemporary organizations, employees are the main resources through which all the other objectives are achieved. There are various classes of employees in organizations today and their job satisfaction promotes effectiveness. Millan (2011) argued that employees in US will demonstrate pleasurable positive attitudes when they are satisfied with their job. Thus, high job satisfaction will increase the productivity of an organization, in turn increasing the organizational overall performance. When not satisfied, employees on their part become nonchalant about their work duties which invariably have negative impact on performance of the organization.
According to Bozeman & Gaughan (2011), the perception of being paid what one is worth predicts job satisfaction in Ghana. They further state that there is a positive significant relationship between executive compensation and job satisfaction. Job satisfaction is perceived as an individual’s attitude and behavior towards aspects of his own job. Personal job satisfaction is an affective or emotional response toward various facets and outcomes of one’s job, meaning that personal satisfaction in relation to a job is not unitary, as a person may be satisfied with one aspect of his or her job and dissatisfied with the rest.
According to Adamaechi & Romaine (2012) job satisfaction is very essential in any kind of group or organisation in Nigeria and it can mean the difference between success or failure of any group or joint activity. Hence for enterprise to achieve its goals employee job satisfaction such enterprise must adequately compensate the workers.
According to Popoola (2007), in the 21st century people pay much attention to their life style and the money they earn from the work than their predecessors. However, it remains unclear whether many of them would continue working, if it were not for the money they receive Employee expectations of a compensation plan are that it is fair and equitable, that it provides them with tangible rewards commensurate with their skills and further, provides recognition and livelihood.
Executive compensation, in today’s organizations in France, is a major consideration in Human Resource Management, and how it is allocated sends a message to the top employees about what the organizations believe to be important and worth encouraging (Rodgers & Gago 2013). For employers, the executive compensation usually represents a sizeable proportion of operating costs. However, some employers view this only as a cost, while failing to consider the strategic benefits of a well-considered executive compensation and benefits plan. Executive compensation therefore, is a critical element of human resources management system in South Africa, and should be designed to work together with other elements of the system (for instance, organizational goals, professional development, principal leadership, worker recruitment and selection) to enhance performance (Dulebohn & Werling, 2007). Money not only helps people to attain their basic needs, but it is also instrumental in providing higher level need satisfaction as observed by (Dulebohn & Werling, 2007). As a result, most employees value work according to how much they gain from it.
It is important to note that both managers and subordinates are working towards the goal of ensuring organizational profitability to ensure their pay and compensations. The researcher is suggesting that job satisfaction is worth considering when especially when executive compensation package policy is in place in the organization. In Nigeria, executive compensation packages differs substantially from typical pay packages for either hourly workers or salaried management and professionals in that executive pay is heavily biased toward rewards for actual results (Akindele, 2014). Hence if a company under performs, the executives typically receive a smaller fraction of their potential pay. Conversely, if a company meets its annual objectives and the stock price responds long term, the executives stand to receive a much larger payout. There is no doubt on the fact that any manager that receive poor pay must surely force the subordinates into serious work without much consideration for their welfare. Executive compensation package is structured to reward company performance and align executive pay with shareholder value. As a result, unlike most other employees, a majority of executive pay is at-risk; in other words, executives may never receive it. However, if executives and the company perform well, they along with the company’s shareholders stand to gain much more from superior performance. Based on all all these facts, the research found it worthwhile to examine executive compensation packages and its effect on authoritarian management style in selected fast consuming good company in Nigeria.
EXECUTIVE COMPENSATION PACKAGES AND JOB SATISFACTION
