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AN EVALUATION OF THE IMPACT OF REMUNERATION ON EMPLOYEES ATTITUDE AND PERFORMANCE IN ORGANIZATION

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AN EVALUATION OF THE IMPACT OF REMUNERATION ON EMPLOYEES ATTITUDE AND PERFORMANCE IN ORGANIZATION

 

CHAPTER ONE

 

1.1 INTRODUCTION

 

Remuneration refers to the mode of compensating the workers exerting their energy or spending their time in accomplishing their organizations objectives.

 

Remuneration can be in monetary terms or in form of services. A monetary term is of course in form of wages and salaries and part of fringe benefits like housing and transportation allowances. Compensation package has three major components which are wages and salaries, fringe benefits and the other one is incentive schemes. Remuneration which comes in form of services includes recreational services, canteen services and medical services.

 

Remuneration has a significant impact on workers attitude and performance in organization because it is the most effective motivational technique. Good remuneration improves productivity, while poor remuneration affects productivity adversely. However, the general problem of monetary remuneration is that they are expert in the short run but not necessarily cost effect. On the other hand, monetary remuneration can motivate workers depending on his or her needs for  money. Individual behaviour and consequently performance in an organization is related to remuneration. This is because people come to work in order to excel or to succeed in competitive situation.

 

As such, individuals with high needs for achievement have intense desire for success and equally intense fear of failure. As individuals, they like to see challenges set moderately difficult talk (but not impossible goal) for themselves, take realistic approach to risk, prefer to assume personal responsibilities to get the job done like specific and prompt feedback on how they are performing and likeness to work for long hours (Alfred, 1987).

 

Therefore, remuneration is one of the best motivational factors that facilitate individuals to put in their best in their job. As such, a well remunerated individual tends to work hard while a poorly remunerated worker does not put much effort in his or her job because such individual is not motivated.

 

 

 

1.2 OBJECTIVES OF THE ESSAY

 

The main objective of the essay is to evaluate the impact of remuneration on workers or employees attitude and performance in an organization. Other specific objectives are:

 

  1. To identify how remuneration affect employees performance and attitude in organization.

 

  1. To find out the various method of remuneration in organization.

 

  1. To identify the objectives of remuneration in organization.

 

  1. To identify the challenges of wages and salaries administration in organization and to provide workable solution to the identified problems.

 

1.3 SIGNIFICANCE OF THE ESSAY

 

The essay is significant in the following ways:

 

To corporate organizations, it would enhance policy formation in the areas of staff wages and salaries administration.

 

To students who may wish to use this essay as a reference material or as a spring board for their own work would find this work really significant.

 

1.4 SCOPE AND LIMITATION OF ESSAY

 

The essay focuses on the impact of remuneration on individual works attitude and performance in organization.

 

However, the following are some of the limitations of the essay:

 

Ø Time Constraint: The Limited time required for the completion of the work compete with the time I had to use in research and also prepare for lectures and group work.

 

Ø Financial Constraint: The cost of sourcing for the materials and the cost of transportation to where to get the appropriate materials needed for the completion of the essay

 

Ø Inadequate Information: I encountered problems in collecting data and information due to inadequate material or book to get the needed information for the completion of the essay.

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