THE EFFECT OF COMPENSATION ON EMPLOYEES PRODUCTIVITY IN WALTA MEDIA AND COMMUNICATION CORPORATE

Abstract

In the general terms, this study was about the effects of compensation on employee’s productivity in WMCC. As reward and compensation is a steering instrument in maintaining the organizational efficiency and productivity as well as takes the lion’s share in motivating the employees to act in the best interest of the organization, the objective of this study was investigate the effect of compensation on employee’s productivity in WMCC. The study used descriptive research design. A sample of 107 respondents was selected out of the population of 215, this represented a 50% percent of sample of the whole population and 105 employees responded, and the response rate was 98.1%. A structured questionnaire was used to collect data from the respondents. The data was analyzed using through Excel and SPSS software. It was interpreted in frequencies and percentages. The findings were presented using tables’ pie chart, graphs and figures. Based on findings the study conclude that many of the respondents believed and agreed that a well-organized and efficient compensation system in the corporate and the existing reward and compensation system is applicable in WMCC. Majority of employees believed that the existing compensation system in the corporate is enough to influence the performance of the employees, majority of employees does not agreed about the additional inputs of the employees get rewarded by the corporate, highest number of employees agreed by a promotion system in the corporate affects the morale of employees. The reward system in the corporate is poorer than what operates in other organizations and the corporate does not allows subordinate to participate about compensation decision making. Highest number of employees believed that the corporate compensation and reward system has improving employee productivity and employees believed that compensation can increase the productivity of employees. Almost all employees are sure about compensation can increase the productivity of employees and only half of employees believed that proud to work in the corporate. Only half of employees who confirmed that really satisfied with criteria listed in employee’s compensation and reward systems in the corporate, about fairness and equity of the compensation system in Walta is poor and the consistency of compensation system were too much low, relatively transparency and distributive justice has been good in the corporate. Majority of employees believed that the compensation system has been developing a high performance culture in Walta and all employees’ agreed that a reward and compensation within the corporation take place only once a year. The general feeling of the compensation practices on the employee’s level of motivation and performance who had been felt that the motivation levels were medium, and the only opportunities that are given by the corporation were bonus ones a year annually. Based on conclusion the study recommended that, to increase the productivity of employees, the compensation and reward system must be applying with a consistence manner in a corporate, and HRM should develop systems that will ensure that there is a proper compensation plan entailing proper job evaluation processes and pay structures in the corporate.