A study of Compensation Management Essay
A study of Compensation Management
In spite of the multiple benefits and advantages of compensation management and its impact on employee’s performance, it cannot still be said that having compensation management policy is a panacea for success
in appraising, and managing employee’s performance. It is therefore the duty of all managers to ensure that the use of compensating policy meets employee’s expectation in order to have good and effective performance. The first basic requirement for effective and functional performance system is to have a common understanding of the standards of performance required from each job holder, performance required from each job holder and compensation management should be in relation with organizational goals and objectives.
One of the primary responsibilities of management is to make compensation policy a veritable tool for optimizing the potentials of employees and human resources manager or practitioners should be in the driving seat in ensuring that the system is run in line with the principles of fairness and equity.
The study was aimed at examining the impacts of compensation management practices on employees’ performance at the Nigeria Port Authority, Apapa.
Questionnaires were administered to selected staff of Nigeria ports Authority, Apapa. The entire population was estimated at 340 people comprising of senior and junior staff and out of this population a sample of 100 respondents were randomly selected for intensive study and analyzed.
The responses obtained from the questionnaire that was personally administered and the test of hypothesis Using chi square (x2 distribution)
statistical method of analysis form the basis of the finding of this research survey. Some of the findings are,
1. That the Nigeria ports authority (NPA) has a well-organized and efficient compensation management system which is applicable to all the employees.
2. That compensation management system has a great impact on employee’s efficiency and performance at the Nigeria ports authority (NPA).
3. There is a relationship between compensation management policy and employee’s performance and that compensation management will lead to positive impact on employee’s performance.
4. That employee’s performance can also be determined through the use of some factors which are not monetary inclined like motivation, leadership, communication, objective, control, sense of belonging and decision making in relation to compensation management practices.
5. That despite the significant impact of compensation management system, performance of some employees is not up to the set standard of the organization.