ASSESSMENT OF THE COMPENSATION MANAGEMENT PRACTICES: THE CASE OF ETHIO TELECOM

Abstract

During the last decade, the human resource management (HRM) field has shifted from focusing on cultural compensation practices to modern compensation management system to encourage the competitiveness of the organization in this challenging world. This study aims to explore the current compensation management practices within Ethio Telecom. It is an exploration of all the issues concerning compensation practices in terms of how the compensation practices are conducted and exploring employees’ attitudes towards the existing practices. In this regard, current compensation system of telecom are assessed from varied compensation management dimensions such as the alignment, transparency, equity, fairness, competitiveness, flexibility, and some other aspects of the existing compensation practices which are valued based on employees’ opinion. The research adopted a qualitative approach. This approach allowed in-depth examination of practices. The study targeted a population of managerial and non-managerial staff. The head office was purposively sampled because strategies and policies are made at headquarter and then cascaded to the zonal and regional branches. To ensure representation of total population sample employees were selected using random sampling methods. Data was collected using questionnaires and interviews. Statistical data analysis involved first collecting and coding the questionnaire and interview checklist responses. The result of the research work revealed that many aspects of the compensation management practices of the telecom are exercised poorly. Due to this, so many of the respondents testify that, the existing practices of the telecom fail to satisfy the needs of the employees. This makes them less motivated and dissatisfied in the telecom to work for long services time. Finally recommendations were drawn based on the findings of the study.