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THE IMPACT OF COMPENSATION AND REWARD SYSTEM ON ORGANIZATIONAL PERFORMANCE IN TOTAL NIGERIA PLC KADUNA

 

 

          ABSTRACT      

This research work emphasizes on the impact of reward and compensation system on the productivity of employee in an organization. The major objective of the study is to ascertain the possible change or impression of reward and compensation system on the performance of employee in an organization and critically examine its impact on organizational productivity. The method adopted by the researcher to collect data was survey research design. The finding of the study showed that management of total plc, Kaduna uses both direct and indirect compensation and develop their reward package to improve performance. Thus, it was conduced that reward and compensation system has great impact on organizational productivity. However the researcher strongly recommended that management should try to identify employee’s expectation and use that as an avenue for compensation and reward in a way that it will net inflate organization wages and bills.       

   

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1    Introduction

 

Organizations are established with the aim of effectively utilizing various available human and non-human resource to achieve certain objective. Among these resources in human, which is commonly seen as the most valuable asset an organization could use to earn competitive advantage and achieve its objective, hence the need for human resources management to ensure optimum productivity and organizational continuous existence.

 

Human resource has been tagged the most valued asset of any organization. Its strategic approach emphasized a “tight fit” between individual needs, rights, ambitions, and goals within the organization which make compensation system central in the affairs of emerging students, scholars and HRM practitioners in the world over. The emergence of human resource management posed great threat to the conventional personnel management and industrial relation because it evolved from the core approach or organization relationship. It is an asset that should be invested upon so as to provide long-term commitment and high performance in an organization. As organizations strive to achieve one or more objectives through exhaustive utilization of human capital, so also, the employee aim toward achieving individual purpose (objective) while working for the organization.