Abstract: The objective of this paper is to present a discussion on the significance of compensation management on organisational productivity. Compensation management occupy a central focus in organisational setting and the way an organisation manages its compensation affairs will go a long way to determine the fortune(s) of the organisation both in the short and long run.
To achieve this objective, a review of current related literatures of some of the major factors driving compensations as published in leading research journals was carried out. Two broad types of compensation strategies were identified being financial and non-financial compensation. Each of this broad division have attached variables and sub-variables that have direct impact on the behaviour of employees in an organisation.
The findings revealed that there is a positive relationship between employee compensation and organisational productivity. Different organisations use different methods to motivate their employees to increase and sustain productivity. It is advisable however, for organisation to use both strategies depending on their policy options and the objectives they want to achieve. Combined utilisation of these strategies especially in multi-ethnic, social and cultural dimensions as well as gender and communal issues becomes imperative so as to prevent avoidable discontent and disruptions to services being rendered by the organisation.
This study concluded that whenever management fail to formulate the right compensation policies, the will to administer and implement these policies whenever they are formulated, always have enormous capacities to stunt organisation growth and development. It is advisable that organisation management should go the extra mile to get their compensation strategies right in order to achieve the desired productivity objectives.
Keywords: Compensation management, Organisational productivity, Financial, compensation, Non-financial compensation, Employee motivation.
Title: Importance of Compensation Management on Organisational Productivity: A Conceptual and Theoretical Analysis
Author: Aliu, Fatai Oguntade, Osanebi, Chimsunum, Adeoye, Riskat
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 11, Issue 2, October 2023 - March 2024
Page No: 227-238
Research Publish Journals
Website: www.researchpublish.com
Published Date: 15-January-2024
