COMPENSATION MANAGEMENT STRATAGIES AND EMPLOYEE PERFORMANCE IN SELECTED FINANCIAL INSTITUTIONS IN ANAMBRA STATE, NIGERIA

Abstract

The study is investigated the relationship between compensation management and employee performance in deposit money bank in Anambra State. Objectives of the study are examine the relationship between performance based compensation and performance, ascertain the relationship between outcomes based compensation and established the relationship between merits based compensation and performance in deposit money bank. The study was anchored on Expectancy theory by Victor Vroom (1964). The population of the study was 1648. The sampling technique used was the statistical formular devised by Borg and Gall was employed to determine the size of 321. Survey research design was adopted. The study adopted content validity test and the reliability of instrument used was test-retest and Cronbach‘s Alpha values of 0.724, 0.792 and 0.710 which was at the acceptance threshold. The research questions were analyzed using simple percentage analysis, while the hypotheses were tested with Pearson product-moment correlation to determine the relationship between compensation management and employee performance in plastic selected firms in Anambra State, Nigeria. The hypotheses tested showed that there was a significant relationship between merit base compensation and employee Performance. (r = .790, at p<0.05) and there is a significant relationship between outcome based compensation and employee performance. (r = 0.813, at p<0.05). The study concludes that compensation management had a positive significance relationship with employee performance in selected Deposit money bank, in Anambra State, Nigeria. The study therefore recommended that Every organization should have merit-based compensation plans at program at every level of an organization.  Outcome-based compensation should be based on job out of individual contribution to the organization in order to ensure that employees put in their best performance and increase employee productivity.