EFFECT OF EMPLOYEE COMPENSATION ON ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF NATIONAL CEREAL RESEARCH INSTITUTE, BADEGGI

This study focused on effect of employee compensation on organizational productivity in National Cereal Research Institute, Badeggi. The study adopted a survey design which includes the distribution of a well-designed research instrument to 266 respondents. Primary data was collected by use of both structured and unstructured questions across the strata and secondary data was gathered from various sources. Responses were analyzed using both descriptive and graphical techniques. It was observed that compensation have impact on entrepreneurial willingness to discharging the responsibility. That wages and salaries influence organization compensation system. It was also shown that compensation increase workers’ productivity and commitment in the organization. That compensation have impact on employees moral and motivation. The study recommends that organizations that want to ensure an enhance productivity among the workers should ensure that the company’s compensation system must include policies, procedures and rules that provide clear and unambiguous determination and administration of workers compensation. Since compensation have a positive and significant effect on employee productivity, the factory top management should review periodically the compensation package of the factory, increase the awareness & the understanding of the package for its employee and put the compensation package manual in accessible place to all employee to improve the transparency & build confidence to its employees.