An assessment of compensation management and motivation on organisational performance in the insurance industry in Nigeria.
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Date
2014
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Abstract
Compensation management is used by human resource practitioners and is a human resource
functions that determines the decision of both job applicants, current employees’ and the
management of any firm. This study investigates the relationship between compensation
management, motivation and organisational performance in the insurance industry in Nigeria.
The basic objectives of the research were to: to examine the extent of compensation
management and its effect on the performance of insurance industry in Nigeria. Determine
whether the firm is achieving employees’ satisfaction; investigate the organisational
effectiveness in achieving its objectives and resource allocation. To ascertain the impact of
compensation management on employees’ motivation. Determine the impact of
compensation management on employees’ leadership roles; to examine the contribution of
compensation management to employees’ self-actualisation; and to determine the effects of
governmental policies on compensation management and workers motivation in insurance
industry in Nigeria.
The instruments used to collect data from study respondents were Compensation
Management Questionnaire Scale (CMQS); the Short Form of Minnesota Job Satisfaction
Questionnaire (MSQ); Motivation Questionnaire Scale (MQS); Job Performance Scale (JPS);
Multi-Factors Leadership Questionnaire-Form 5X (MLQ-Form 5X); the Reversed Brief
Index of Self-Actualisation (BISA-R); Organisational Effectiveness Assessment
Questionnaire (OEAQ) and Governmental Policy Questionnaire Scale (GPQS). The
reliability coefficients or Cronbach’s Alpha (α) of the research measures were 0.87; 0.74;
0.81; 0.83; 0.80; 0.81; 0.71 and 0.73 respectively.
250 questionnaires were distributed to employees of Alliance and General Insurance Plc., 213
returned and out of which 212 (84.8%) were found useful and normal. The data analysis was
done using Statistical Package for Social Sciences (SPSS) version 21. It was established that
a relationship exists between organisational performance and employees’ satisfaction; there is
a relationship between organisational effectiveness and objectives achievement. There is a
relationship between compensation management and employees’ performance; employees’
motivation, employees’ leadership roles; employees’ self-actualisation though all these
relationship that was established were not strong. There is a very weak relationship that
existed between government policies on compensation management and employees’
motivation in insurance industry in Nigeria.
The findings of the study reflected that compensation management and motivation of
employees are factors that employers can use to boost the performance of employee’s as well
as that of organisations in the insurance industry in Nigeria. It is recommended that
compensation management and employee’s motivation should by given attention by the
management of insurance industry in Nigeria.
Description
Ph. D. University of KwaZulu-Natal, Durban 2014.
Keywords
Organizational effectiveness--Nigeria., Insurance companies--Nigeria--Management., Performance--Nigeria., Personnel management--Nigeria., Theses--Management studies.