Compensation Management and Employee’s Work Commitment in the Kwara State Internal Revenue Service, Ilorin, Nigeria.

Emmanuel Olaniyi Dunmade

Abstract


The study examines the effect of compensation management on the employee’s work commitment in the Kwara State Internal Revenue Service (KW–IRS), Ilorin, Nigeria. Stratified random sampling technique was utilized for the study with the administration of structured questionnaire to the respondents so as to elicit the required information. The data generated was analyzed with regression analysis with aid of SPSS, (V. 22.0). Findings showed that compensation management is a positive and significant predictor of employee’s work commitment in the Kwara State Internal Revenue Service. The study concluded that organizations that effectively and efficiently manage its compensation policy, in respect to employee’s commitment, will outperforms those organizations that do not. Thus, the study recommends the organization should be more innovative and effective in the management of compensation policies, so as to focus more on the adequate welfare for the employees and as well treating them as the most precious assets of the establishment.

The study examines the effect of compensation management on the employee’s work commitment in the Kwara State Internal Revenue Service (KW–IRS), Ilorin, Nigeria. Stratified random sampling technique was utilized for the study with the administration of structured questionnaire to the respondents so as to elicit the required information. The data generated was analyzed with regression analysis with aid of SPSS, (V. 22.0). Findings showed that compensation management is a positive and significant predictor of employee’s work commitment in the Kwara State Internal Revenue Service. The study concluded that organizations that effectively and efficiently manage its compensation policy, in respect to employee’s commitment, will outperforms those organizations that do not. Thus, the study recommends the organization should be more innovative and effective in the management of compensation policies, so as to focus more on the adequate welfare for the employees and as well treating them as the most precious assets of the establishment.


Full Text:

PDF

References


Anthony, D. & Govindarajan, R. (2001). Management Control System, Jakarta: SalembaEmpat.

Armstrong, M. (2007).A handbook of Human Resource Management Practice. (11th ed.) Philadelphia: Kopan Page Limited.

Attewell, P. & Rule, J. (1991). Research and Research Methods. New York: Routledge Groups

Bari, N., Arif, U., & Shoaib, A. (2013). Impact of non-financial rewards on employee attitude and performance in the workplace. A case study of business institutes of Karachi. International Journal of Scientific & Engineering Research, 4(7), 2554 – 2559.

Bradford, S. & Cullen, F.(2012). Research and Research Methods for Youth Practitioners. London: Taylor & Francis Publishers.

Chhy, S (2019). Compensation management practices: A case study of selected private secondary schools in Phnom Penh, Cambodia. International Journal of Education and Research,7 (6), 323 -334.

Culpepper, R, Gamble, J &Blubaugh, M. (2004). Employee stock ownership plans and three component commitment. Journal of Occupational and Organizational Psychology, 77 (2), 155-170.

Daniel, C. O. (2019). Compensation management and its impact on organizational commitment. International Journal of Contemporary Applied Researches, 6 (2),26 – 36.

DeNissi, A.S.& Griffin, R.W (2001). Human Resource Management. New York: Houghton Mifflin.

Dixit, V. & Bhati, M. (2012).A Study about Employee Commitment and its impact on Sustained Productivity in Indian Auto-Component Industry. European Journal of Business and Social Sciences, 1(6), 34 – 51.

Dunmade, E.O, Kadiri, I. B., Aun, I.I, Bello, M. L & Yahaya, I. J. (2019).Effect of human resource management practices on employees’ commitment in ensuring sustainable performance in the Nigerian Security and Civil Defence Corps, Ilorin. Journal of Sustainable Development in Africa, Clarion University of Pennsylvania, 21 (4), 16 – 27.

Hansen, P &Serin, G (2010).The European ICT clusters - an overview of selected ICT clusters in Europe (1sted.) Wallin&DalholmBoktryckeri AB,Lund.

Hill, H, Birley, G. & McDougall, E.(2003). Research methods and statistics in psychology,(3rdedition). London: Hoder and Stoughton Limited

Ira, B.H (2010).Analyzing Commitment and their Influence: A Case study of TSC. University of Nairobi, MBA Unpublished Thesis.

Kandula, S. R. (2004). Employee Involvement and Empowerment for Business Results: A Study of Power Grid, Indian Journal of Industrial Relations, 39 (4), 520-529.

Khudhair, F.S, Rahman, R. A & Adnan, A. A.(2020). The relationship between compensation strategy and employee performance among academic staff in Iraqi universities: International Journal of Academic Research in Business and Social Sciences, 10 (1), 251–263.

Koitalek, J. N. (2016). Influence of compensation policy on employee commitment at teachers service commission in Kenya. A research project submitted to the School of Business, University of Nairobi, Kenya for the award of Degree of Masters in Business Administration.

Larbi, T. A. (2014). Effect of compensation management on employee’s performance at the St. Michael’s Catholic hospital, Pramso. A thesis submitted to the Department of Managerial Science, Kwame Nkrumah University of Science and Technology (KNUST), Ghana in partial fulfillment of the requirements for the degree of Master of Business Administration.

Meyer, J. P. &Herscovith, L. (2001).Commitment in the workplace towards a general Model. Human Resource Management Review, 299-236.

Meyer, J. P., Becker, & Van Dick, R. (2006) Social identities and commitment at work toward an integrative model’, Journal of Organizational Behaviour. 27 (1), 665-683.

Meyer, J. P. & Allen, N. J (2007).Commitment in the Workplace. Thousand Oaks, C.A Sage.

Muhammad, N, Andi, S, Muhtar, S &Hanifah, E.(2018).Effect of compensation and organization culture on the motivation and commitment of coal company in the East Kalimantan province. International Journal of Scientific & Technological Research.7 (9), 11 – 14.

Nnorom, G. K, Akpa, V.O, Egwuonwu, T. K, Akintaro, A. A, Shonubi, A.O &Herbertson A.E (2016).The effect of compensation administration on employee’s productivity. Arabian Journal of Business and Management Review (OMAN Chapter), 5 (8), 40 – 47.

Onuorah, A. N, Okeke, M.N., & Ibekwe, A. I. (2019).Compensation management and employees’ performance in Nigeria. International Journal of Academic Research in Business and Social Sciences 9 (2), 384 – 398.

Osibanjo, O. A, Abiodun, A. J., & Fadugba, A. O. (2012) Executives Perception of the Impact of Flexitime on Organisational Performance: Evidence from the Nigerian Private Sector: International Journal of Applied Behavioral Economics (IJABE).1 (3).

Osibanjo, O. A, Adeniji, A. A, Falola, H.O. & Heirsmac, P. T.(2014).Compensation packages: a strategic tool for employees’ performance and retention. Leonardo Journal of Sciences, 25, 65-84

Prayoga, S. D & Achmad, S. S. (2017).Effect of compensation on satisfaction and employee performance.Management and Economics Journal (MEC-J),1(1),89 -78.

Saharuddin, D. N, Abdul, R. M, Baharuddin, L & Budiandriani, A. (2020). Organizational culture, work commitment and compensation effect on job satisfaction and police members’ performance in Makassar metropolitan city police (POLRESTABES). EJBMR, European Journal of Business and Management Research, 5 (2), 1 – 6.

Suleiman, O, Ochidi, Z, Akinroluyo, B. I. & Olumoyegun, P. M.(2018). Effect of direct and indirect compensation on employees’ job satisfaction of selected microfinance banks in Ilorin metropolis Journal of Good Governance and Sustainable Development in Africa (JGGSDA), 4, (2), 115 – 130.

Torrington, D, Hall, L & Taylor, S., (2005). Human Resource Management. (6th ed). Prentice Hall, Spain.

Vroom, V. H. (1964).Work and Motivation. New York: John Wiley, Wiley.




DOI: https://doi.org/10.25134/ijbe.v3i2.3611

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Indonesian Journal Of Business And Economics