An assessment of compensation management and motivation on organisational performance in the insurance industry in Nigeria.

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.