COMPENSATIONAL STRATEGIES AND EMPLOYEE PERFORMANCE IN TOTAL PLC AKURE

Abstract

This research work emphasizes the impact of reward and compensation system on the performance of an organization. The major objective of the study is to ascertain the impact of reward and compensation system on the performance of employee in an organization and critically examine its impact on organizational productivity. The method adopted by the researcher to collect data was survey research design. The result focuses on the analysis of data collected from the field using the questionnaire. It includes the frequency distribution table and the chi-square analysis as well as the inferences made from the analysis. the finding shows that almost all the respondents strongly agreed that the organization has a well-organized and efficient compensation system representing 25%, 12 of them also agree representing 30%, and also the respondents strongly agree that promotion system affect the morale of employees, while 15% strongly disagree, also 45% of the respondents strongly agree that fringe benefits attached to pay increase production 55% agree with the statement also 25% of the respondents strongly agree that the organization motivate employees with better compensation packages while 27.5% of them also agree, 25% of the respondent disagree with the statement. The result of the hypothesis using chi square accept that compensation and reward practices has impact on employee’s performance and has bring improvement and more commitment in Total Nigeria plc. And also the study showed that management of Total plc. Akure uses both direct and indirect compensation and develop their reward package to improve performance. Thus, it was concluded that reward and compensation system has great impact on organizational productivity. However the researcher strongly recommended that management should try to identify employee’s expectation and use that as an avenue for compensation and reward in a way that it will net inflate organization wages and bills