This academic work is based on the impact of effective compensation  on the employees performance in Onitsha Cotton Mill Limited, Anambra State, Nigeria apparently, there are different needed among employees that must be achieved through compensation  received. It is very pertinent that organizations should strive hard to effectively compensate their workers for motivational reasons which will help in the achievement of organizational goals and objectives.

The study falls within personnel management and personnel management according to Flippo 1986 is defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources at the end tht individual organizational and societal objectives are accomplished.

It can also be defined as money received for the work performance plus other kinds of benefits and services that the organizations provide for their employees, compensation is recompense, reward, wage or salary given by an organization to person or a group of persons in return to work  done, service rendered or a contribution made toward achievement or organizational goal.


General Cotton Mill Limited, Onitsha anambra State is a textile manufacturing company that is known with the sales of textile and textile products.

The company was incorporated on the 10th April, 1964 RC 3782, located at Niger bridge Industrial Layout, Onitsha and also has one of its branches at Bloc 4A, Apapa lane, Dolphin Estate Ikoyi, Lagos, having Chief Nolla O. Edun as its chairman, R.N.W. lee (U.S. citizen) as its MD / CEO and also F.A Enechukwu-Deputy managing director.

It is a textile company offering composite textile Mill producing African prints, or fabric materials with spinning, weaving, and printing division producing cotton yarn with a good number of employees at its service.

Cotton as a resources is a miracle fibre that has been spun, woven and dyed since ancient times and it is still the most widely used fibre clothing, it is soft and fluffy, and grows in a boll around the seeds of the cotton plant. Cotton can be used for many products like: clothes, beddings, tabletops, furniture’s and even arts etc.


According to the structure

R & D centre (Research and Development): They are in-charge of studying and adopting new technologies, innovation, development of new kinds of production, new methods of production and quality control.

Sales department: Their work consists of organizing production sales, attraction of new buyers and partner registration of export operations, contracts on local markets control of shipment and delivery of goods / contained

Purchasing department: they provide purchases from the local and foreign markets, declarations and also registration of import contracts and customs documents.

Financial and Accounting department: They handle the registration of financial operations, accounting report, production cost, payment system, vouchers, bank operations, payment forms, delivery of salary and works with plastic cards.

Corporate Planning department: These are the department in charge of planning and organization of company projects, works with company werb-site, public relation, making of business plan (statistics) organization of charitable actions and company events.

Cotton purchasing department (Cotton Team): They do the

Identification and selecting of raw materials of the best quality for further production. Conclusion of raw materials delivery contract.

Personnel and salary departments: They provide the process of salary calculation, registration of salary documentation, the conclusion and the termination of labour contracts, wages ratifying, personnel selection also.

Tashkent office: Realization of export transactions, attraction of new potential partners and clients, control on registration of export documents and shipments, i.e delivery of production and payment of all shipment carried out by the collective of the Tashkent office.

The study with the departments has a total population of (900) workers in general cotton mill Nigeria Limited Onitsha.

1. Accounts 100
2 Commercial dept 180
3 Admin 100
4 Production 300
5 Labour committee 80
6 Cooperate planning 100
7 Personnel & salary 40
  Total 900



Certain conditions or factors can make workers to perform effectively or ineffectively on their jobs. It has been observed that a number of factors seems to be responsible for job dissatisfaction among workers. They includes lack of interest in the jobs poor salaries poor conditions of service and lack of fringe benefits.

General Cotton Mill Limited workers tend to be affected by the factors enumerated above. It has also been observed that as a result of lack of compensation as a motivational factors there is growing shortage and loss of competent hands in general cotton Mill Limited Onitsha in particular. In the study, on the effect of compensation on the performance of workers in Onitsha Cotton Mill Limited Anambra in particular tends to find out what compensation service have to do in motivating workers.

This study is faced with the problems of finding out the importance of compensation to workers but equal knowing how adequate is that compensation towards effort workers are putting towards achieving the organizational objectives, therefore, this study has on the performance of workers on business organization.


The core purpose of the study is to point out some of those things that could aid compensation if the organization wants to achieve it’s set goals and objectives.

  1. Identify factors in the organizational structure that could affect managerial effectiveness.
  2. To determine whether there is problem in the design of the department within the organization.
  3. To find out if the level of education of subordinate influence the way a manager structures his department.
  4. To identify the links between the above variable and the manager degree of effectiveness in meeting up the objectives he is expected to achieve.
  5. To structure out ways in which managers can work towards achieving a better compensation is unfair or inadequate.

Finally, attention should be given to the topic if the organization wants to achieve it’s goal and objectives.


The findings from this study would serve as good reference material to educationist. It would serve as a good material for people studying human relation as it affected by compensation. It would be a good reference material to those in the research institutes that would be future practicing managers in piloting the affairs of the organization. It would also serve as a good materials for policy makers to help improve their subsequent policy formulations and planning.

The employees themselves would also find this study very useful. This would not only give them idea on what to expect management to do for them, but it would serve as guide enable them strive toward a greater performance as it would be in a position to compensate them adequately.


  1. What is compensation?
  2. Are compensation given to workers adequate ?
  3. Does compensation help to retain your ends period of time?
  4. Is your pay in the organization commensurate to your productivity performance?
  5. Does the promotion system in the organization inspire to higher productivity?
  6. Do the management provide adequate transport?


In order to carry out their study, the following scope have been formulated the help to generate data required for analysis. When employees receive basic compensation, as equitable, hey increase their peformance if not they will not. When management gives to he workers the incentive they will increase their performance, if not, they will not.


Management: This is the process fo planning, organizing, leading, and controlling the effort of an organization members, making use of organization resources to achieve its objectives. As postulated by Edward Flippo.

Reward: This is a system that consists of an organization integrated policies process and practices for rewarding its employees in accordance with their contribution skills competence and their market worth.

Compensation: Compensation may be defined as money or any kind of benefits received for the performance of work.

Motivation: It is the inner drives that arouse direct and maintain an individual behaviour toward accomplishing a goals.

Organization: This is a social unit of people that is structured and managed to meet a need or to pursue collective goals.

Promotion: This is a cause, venture or aim activity that supports or encourages.

Adequate: As much as or as good as necessary for some requirement or purpose fully sufficient, suitable etc.

Strategy: The basic goal and objective of action chosen to reach those goals and objective and the allocation necessary for carrying out those goals.

Planning: This is the process of thinking about an organization, the activities required to achieve a desired goal.

Productivity: Is an average measure of the efficiency of production a measure of the efficiency of a person, machine, factory, system, etc.

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