THE IMPACT OF COMPENSATION AND REWARD MANAGEMENT SYSTEM ON THE PERFORMANCE OF PUBLIC ORGANIZATION (A CASE STUDY OF MINISTRY OF WORKS, UYO)
CHAPTER ONE
Employees are valuable resources of any organization labour productivity now a day has been main concern of organization. It is customarily accepted that employees discover valuable sources of competitive edges for firms. There is current discussion on how reward management policies impact the performances of employees, organization are making efforts and planning to try to construct an informal bond between human resource management and performance. The impact of particular human resource planning on performance of employees in an organization the variable going to be discussed is salary, according to a study if employees are paid well and earn more than their colleagues they feel happier at their work places. A handsome salary motivation an employee for better performance. The word motivation means “to move” The characterize motivation as the individuals desire to exhibit the behaviour and shows green signal to use effort. Motivation is further splits into two kinds extrinsic and intrinsic motivation first kind of motivation include rewards, salary and benefits while intrinsic reward include internal factors like Job satisfaction, freedom and responsibility intrinsic motivation has a deeper and long lasting effect because the intrinsic motivations works for quality of working life also motivation for an organization as the degree of readiness it pursue some specific objectives and implies the determination of the nature and center of forces. Much importance for the performance of any organization structure can highly enhance the profitability and effectiveness of an organization.
1.2 BACKGROUND OF THE STUDY
Organization are establish with the aim to effectively utilizing various available human and non human resources to achieve certain objective. Among these resource in human which is commonly seen as the most valuables asset on organization could use to archive competitive advantage and its objective, hence the need for human resources management to ensure optimum productivity and organizational continuous existence. According to nelson (2008;20);Human resource has been tagged the most valued asset of every organization, its strategic approach emphasize a “tight fit” between an employee’s needs night ambition and goals within the organization, which make compensation system central in the affairs of organization strive to achieve one or more objectives through exhaustive utilization of human capital to do employees aim towards achieving individual objectives while working for the organization, thus it is unarguably pertinent for organization to set up programmes to reward performance as motivating factor to enhanced performance reward system is the instrument used to increase employees’ productivity.
Its seeks to attract and retain suitable employees, encourage good management employees relationship and commitment and minimize tension and conflicts as it deals with all forms of final returns, tangible service and mechanism for good relationship. This goes on to portray that the major case of industrial conflict vis-avis employees de-motivating factor. Thus, employees feel their benefits are denied or about to be denied thus the importance of compensation management system is to provide a good platform for equity and fairness. The compensation management system ensures that intrinsic and extrinsic needs of employees at all levels are adequately provided for compensations this develop organizational and great, policy procedures and practices capable of improving organizational performance in ministry of education Uyo Akwa Ibom State. According to Udosen (2009;16) assert that reward and compensation concerned with employees and organizational performance developing through what better result can be achieved by understanding and managing reward and compensation within and agreed framework.
Furthermore researchers have argued that compensation management system can create and sustain a competitive advantage for organization. In recent years the inclusion of non- financial measures has against some popularity in compensation management while some schools demonstrate positive effects of incorporating non-financial measures in the compensation management system empirically (Widmier 2006). He further state that Human resource model of compensation generally assume that higher performance require greater effort or that is in some other ways associated with disutility on the part of workers. In other to provide incentive this model predicts the existence of reward systems that structure compensation so that a worker expected utility increase with observed productivity. This reward can take many different forms including praise from suspensor and co-workers, implicit promise of future promotion opportunities. Feeling s of self-esteem that comes from superiors, achievement and recognition and current future cash reward related to performances. The focus of this works is assess the impact of compensation and reward management system on the performance of organization in ministry of education Uyo Akwa Ibom State
The exponent of scientific management Taylor (1991) and his follows maintained that the basic motive of man at work was economic money was seen as a principal motivation in ministry of Education Uyo, Akwa Ibom State while the motivating power of money and material rewards could not be ignored, emphasis Later sniffed from Economy man to social man. This was the outcome of the Haw throne experiment conducted by Elton Mayo at Western electric company. The experiment draws attention of the effects of group membership and interaction production attitude and Job Satisfaction. Employee compensation refers to the benefits cash, vocation, etc, that an employee receives in exchange for the service they provide to their employer. Employees for any organization. It’s related to series of activities which ministry of Education Akwa Ibom State Uyo to embark upon to improve its managerial goal.
Reward management: is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably to the organization aims is to create and efficiently operate a reward structure for an organization. Reward structure usually consists of pay policy and practices, salary and payroll administration, total reward, minimum wage, executive Pay and term reward. Wage increase is crucial in any discussion of strategic human resources management. These emphasis on wage increase and productivity is influenced by the belief that it is now desirable to focus more attention or Areas which in the past has been relatively neglected because every ministry of Education Akwa Ibom Sate Uyo provide for the needs interest and desires of its employee within the work environment.
Organization performance comprises the actual output or results of on organization as measured against its intended outputs (or goals and objectives). Since the early 1960, the wage increases on ministry Education Akwa Ibom State Uyo has increasable been recognized as the most critical aspect of the factor without which an effective utilization of all other factors remains a dream although it might to tempting to attach more importance to the availability physical resources such as man power and recognition of workers that they are more important factor that make impact in wages increase on employees productivity which defend on the management in ministry of Education.
1.3 STATEMENT OF THE PROBLEM
Some organization over years see employees as additional cast as well as liability to the operations, hence do not remunerate them appropriately, and where it is more appropriate, the compensation is not commensurate with the efforts and skills, that workers pot into the organization activities instead of paying attention on how employees will be compensated, appropriately, some organization concentrate more on other resources such as material, machines and money. There is more on how to improve the production process with little consideration to attend their set objectives; organization success relies heavily on how much attention is paid to its employees reward policies.
It is of this studies seek to know how reward and performance of employees as that of the organization in general. The relationship between organization compensation system and employees performance is indispensable, through some surrounding factors may determine the satisfaction one derives from the other. The high inflation rate which has led to high cost of living, low income and, purchasing power can be a reason for poor performance. In order to achieve the needed output level. The Nigerian manager faces on an uphill task in trying to fashion out a reward system which does not have to necessarily be totally monetary inclined to motivate and bring out the best in employees to whom moral could have been affected by the bad state of socio-political and economic sphere of the country.
The question now is, can there be a reward system that could adequately have an effect on workers performance? How often is this system reviewed? Would a fixed organizational compensation system reward solve the immediate problems of workers in order to boost performance? Can reward system stand out the best of time? Most times only good behavior is rewarded while performance based reward is ignored. Also, some organization confuse activity with action and reward those who seem busy, yet the quest employees may have been doing the bulk of the work from this, there is need for management to build its reward system along the line of actual performance and actual level of work, input and productivity. Therefore the problem of trying to figure out the forms the basis for this research.
1.4 OBJECTIVIES OF THE STUDY
The main objectives of this study are to examine and assess the impact of reward and compensation system on the performance of the organizational.
The specific objectivities therefore are to
- To find out the different compensation system that exists in the public establishment most especially the ministry of Education, Uyo.
- To examine the relationship of the reward compensation system and employee performance in the ministry of education Uyo Akwa Ibom State
- To identify the particular compensation system that motivates employees to the highest degree of performance.
- To identify the various compensation system issues that affect employee performance
- Examine to what extent does a reward package affect the performance of an employee in Ministry of Education, what are the benefits of prompt compensation to employee in an organization
1.5 RESEARCH QUESTIONS
The following research questions are formulated to guide the researcher in collecting data for the study:
