THE IMPACT OF COMPENSATION AND REWARD SYSTEM ON ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF BENUE STATE WATER BOARD)

ABSTRACT

When the researcher chose this topic the impact of compensation and reward system on organizational productivity, the researcher was inspired by the non challant attitude the employees put up in the organsation, the hazards that these employees face in Benue state water board. To do this, researcher developed 5 five research questions. This question were administer in form of questionnaires designed in an open ended form to enable the respondents answer the question on aided. 370 staff were selected as a sample of the population. Apart from this, secondary data were used. In organizing and presenting data collected, tables and percentages were used. The data analysis revealed that the impact of good compensation and reward system would improve the productivity in the organization. The researcher therefore recommended that the management should make sore that their compensation and reward system is effective enough to reduce labour turnover in the organization.

CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

Over the years reward and compensation have been a bone of contention both in the private and public organization on employees. This has generated a lot of argument, discussion and interest to an extent that it has became a highly sensitive topic.

It is very obvious that employees can only put in their best at work when such employee is provided with a conducive working atmosphere conditions and motivational incentives which serve as stimulus to stir them employees to achieve organization set target goals and objective efficiently and effectively.

The essence of compensation and reward system is to provide a good platform for equity and fairness. They provide a challenging environment and increase employee and organizational productivity. Extrinsic needs of workers at all levels are the compensation and reward system which ensures that both the intrinsic are adequately provided for. This is because it develops organizations integrated policy, procedure and practice. Thus, it is an important signal of organization culture and valve so its important to the successful recruitment and retention of high caliber work force with adequate knowledge, skill and ability that supports the organization strategic goals and rewards employees in accordance to their contributions skills, competence and market worth.

Based on the definition of organization productivity which cannot clearly be defined without going or under standing what reward and compensation do on an employee. when an employees reward or compensations which could come in farm of incautious like assurance etc with all these put in place, the employees would be motivated to work and put in all their best there by meeting the goals and targets of the organization. Therefore the success of an organization is based on good compensation and reward system in other to increase organization, productivity.

1.2HISTORICAL BACKGROUND OF BENUE STATE WATER BOARD

The Benue State Water Board was established by edict No 3 of 1973 as a corporate body with perpetual succession and a common seal and shall have the power to sue and be saved in its corporate name. The board is charged with the responsibility of harnessing, purifying and distributing water to consumers for domestic, commercial and industrial purposes through out the state in an efficient and cost effective manner.

The aims and objective for establishing the board are being achieved through the construction of dams, bore holes, treatment plants, storage reservoirs and distribution network by a skilled and semiskilled work force. It s from the revenue generated from the water sales that the board finances its operational maintenance cost with this, the board is responsible for its entire recurrent expenditure which capital projects throughout the state is the responsibility of the state government.

The board is headed by a General manager an it consist of seven departments namely; administration/personnel finance, project, operation, commercial, corporate planning and internal audit. Each of the departments is headed by an assistant General manager with the exception of the corporate planning department that is headed by the chief internal auditor which is attached to the office of the general manager. The duties of the board are:

To establish control, manager, extend and develop new existing water works as may be necessary to meet the requirement of the general public, trade agriculture and industry in the state.

To ensure that water is supplied at a reasonable cost and in portable quality and quantity.

To conduct appropriate research for the purpose of development of water supply in the state.

The edict stipulates that al charges for water sold and any services rendered by the board should be fixed at such rates and at such scales that the revenue for that year would be sufficient or nearly to pay for all working expenses, repayment due on loan borrowed by board and extension of works.