EMPLOYEES PERCEPTION ON PERFORMANCE BASED COMPENSATION IN THE CASE OF MOENCO S.C THE CASE OF A.A

Abstract

Performance based compensation is the most commonly used method in measuring productivity and more and more institutions are increasingly using this method as it attempts to link compensation with performance. The objective of this research was to explore how the employees of MOENCO perceive the Performance Based Compensation system. In conducting the study, the required data was obtained through structured questionnaires and interview. Random sampling technique was employed using Yamane’s (1967) formula from the target population of 513. In the analysis part descriptive statistics was performed. The findings of the study shows that in MOENCO majority of the employees have low level of perception towards the existing performance based compensation system. Therefore, it is recommended that, the organization should have to design and implement performance based compensation system in the best possible ways; there is the need to develop a good feedback system, appropriate and adequately filing, discussing evaluation, design ways to communicate evaluation results, review evaluation, participatory evaluation rating system and have to design procedure to make aware of every employee about the appeal process. In doing so, human resource department should play a vital role in the overall process of performance based compensation system. Finally, it is forwarded that further research has to be done in more completed and comprehensive way.