ISSN: 2456-9992 Effect Of Compensation On The Work .
International Journal of Advanced Research and PublicationsISSN: 2456-9992Effect Of Compensation On The Work PerformanceOf Junior Staff Of The University Of Cape CoastJohn Kojo SamDirectorate of Physical Development and Estate ManagementUniversity of Cape Coastjohn.sam@ucc.edu.ghAbstract: The purpose of the study was to examine the effect of compensation systems on the work performance of employees (junior staff)of the University of Cape Coast, Ghana. The sample size for the study was 346. Stratified random sampling technique was used to select thejunior staff. Also, 24 administrators were selected purposively to help collect data from the respondents. Questionnaire and an annualassessment form were the instruments used in collecting data. Both descriptive and inferential statistics were used in analysing the data.Findings from the study show that junior staff have positive view on the University’s compensation packages as a whole. However, juniorstaff view on the University’s compensation packages do not influence employees’ work performance directly. It does so only if it booststheir level of satisfaction which in turn boost their commitment to the University and in the long run increase their work performance. It wasrecommended to management of the University to ensure a congenial environment and improved its compensation packages, especiallynon-financial, to encourage and motivate staff to be committed to the University which will leads to a significant increase in the workperformance of the staff.Keywords: Compensation, Junior Staff, Staff Commitment, Staff Satisfaction, Work Performance1. INTRODUCTIONPeople are the assets on which competitive advantage isbuilt, whether in the public, private sector or in the world ofeducation. They are the organisation’s key resource, andorganisational performance largely depends on them [2]. Thegovernment of Ghana is making several efforts to supportinstitutions that contribute to the human resource needs ofthe country [13]. One of such efforts is the country’scontinues expansion of the scope of operations andprogrammes of universities in Ghana, including Universityof Cape Coast (UCC). It is, however, important to note thatuniversities are human institutions and government’s effortsat improving their performance to produce the humanresource need of the country cannot materialise without thepeople who work in these institutions. Employers expectcertain degree of result-oriented services that would fall inline with their vision and mission [18]. Employees on theother hand demands job satisfaction [14]. It is, therefore,imperative to compensate employees with benefits of meritsto induce them to give their best to the organisation. [16]opine that because of the importance of compensation inpeople’s lifestyle and self-esteem, individuals are veryconcerned with what they are paid. Employees expect a fairand competitive wage, while organisations are concernedwith what they pay because compensation administrationaffects important decisions such as employee retention andwork performance. Thus, prudent administration ofcompensation to both the employer and the employee in theachievement of the organisational goal cannot beunderestimated. A well-managed organisation usually seesan average worker as the root source of quality andproductivity gains. Such organisations do not only look tocapital investment, but to employees as the fundamentalsource of improvement [7]. An effective organisation oughtto make sure that there is spirit of cooperation and sense ofcommitment and satisfaction among its employees. A wellcompensated employee contributes highly to theorganisational growth [11]. Therefore, it is important foremployers to take a serious look at any issue that adverselyaffects the contributions that human resource can make to thedevelopment of an organisation.Statement of the ProblemEmployees’ compensation and work performance withinpublic universities has been the subject of significantscrutiny in the media in recent times but it appears to havereceived less attention in academic research, especially inGhana [1]; [13]. Following the implementation of the SingleSpine Pay Policy (SSPP), the government’s wage bill onemolument for public sector workers is said to haveincreased from 2.4 billion in 2010 to 13 billion Ghana Cedisin May 2015 and was expected to hit 17 billion Ghana Cedisby December 2020 [5]. It is evident that significantimprovements have been made in the salaries of workers andtherefore, one could have expected a correspondingimproved performance for the purpose of which the policywas introduced to be achieved. However, the implementationof SSPP has been received with varied reactions by theUniversity workers. Whilst workers think SSPP has failed toaddress the problem of low salaries, the government is alsocontemplating whether to phase out the policy as a result ofhigh wage bill without corresponding increase in workperformance [5]. This contention between the employer andthe workers raises the question of whether compensation hasany effect on employees’ work performance. These are clearissues of concern that require in-depth investigation whichthe study sought to accomplish.2 OBJECTIVES OF THE STUDYThe main objective of the study was to examine the effect ofcompensation on the work performance of junior staff ofUCC. Specifically, the study sought to:1. find out the views of junior staff of UCC on compensationsystems of UCC, and2. examine the effect of compensation systems onemployees’ work performance, taking into considerationthe mediating role of staff satisfaction and commitment.Volume 4 Issue 5, May 2020www.ijarp.org43
International Journal of Advanced Research and PublicationsISSN: 2456-99923 RESEARCH HYPOTHESESBased on the specific objectives of the study, the followinghypotheses were formulated to guide the study:H10:Employees do not view compensation systems ofUCC in positive terms.H20:There is no statistically significant relationshipbetween employees’ view on compensation andtheir work performance.H30:There is no statistically significant relationshipbetween employees’ level of job satisfaction andtheir work performance.H40:There is no statistically significant positiverelationship between employees’ level ofcommitment to the University and their workperformance.H50:Employees’ views on compensation have no directsignificant effect on employees’ work performance.Significance of the StudyThis study is significant for several reasons. First, it is hopedthat findings of the study would advance the understandingof how employers can adequately reward their employees tocreate harmonious atmosphere at the workplace. Secondly,findings of the study, if implemented, is expected to be ofimmense benefit to the University management in makingcompensation decisions that foster the attraction andretention of a satisfied and committed workforce. Also, theresults would enable both management and labour unions tobetter understand how the various incentive packages couldbe harnessed to stir staff to increase and sustain productivity.Thus, labour union officials and representatives at thenegotiation table will find it useful when putting togethertheir requests before management for better solutions.Finally, it is hoped that the results would contribute to thestock of knowledge in human resource management ingeneral by serving as a source of reference for furtherstudies.Ghana, a study conducted by [18] indicated a significantrelationship between compensation and work performance.The study concluded that higher productivity can beachieved if there is transparency in the compensation systemand if the compensation meets the aspirations of thebeneficiaries. Another study conducted by [12] focused onthe relationship between compensation and job performancein the Ghana Police Service. The result of the study indicatedthat equitable and holistic compensation packages increasejob performance in the Ghana Police Service. Theoretically,the concept of employee compensation may be categorisedinto two main dimensions that is, financial and non-financialcompensations. This categorisation is in line with that of [13]who argued in his study that both financial and non-financialcompensation have a significant effect on teachers’ workperformance, however, financial compensation contributesmore to teachers’ work performance than non-financialcompensation. From the brief review, the model in Figure 1was derived to form the conceptual framework within whichthe study was conducted. The model serves as a systematicway in measuring the influence of compensation on juniorstaff satisfaction level, their commitment and workperformance. The argument of the study is that employeecompensation influence employee work performance,however, the influence becomes stronger and more positivewhen other variables such as staff satisfaction with thevarious forms of compensation and staff commitment to theUniversity are considered. The study therefore, hypothesisthat if the University expose staff to both financial and nonfinancial compensations it will lead to their workperformance. However, staff work performance becomestronger and more positive when staff are satisfied with thevarious forms of compensation which in turn boost theircommitment to the University. The incremental effect ofstaff satisfaction and commitment in the long run willstrengthen the significant effect of compensation on staffwork performance.DelimitationsGeographically, the study focused on UCC. Although thereare other categories of staff in the University, the focus of thestudy was on only the junior staff in the University. Withregard to the variables, the focus of study was oncompensation (financial and non-financial), staff satisfaction,staff commitment, and staff work performance.3 LITERATURE REVIEWWork performance is associated with quantity, quality andtimeliness of output, presence or attendance on the job,efficiency and effectiveness of work completed. Accordingto [8], performance is measured in terms of productivity, jobsatisfaction, turnover and absenteeism. Employeeperformance is about the timely, effective and efficientcompletion of mutually agreed tasks by the employee, as setout by the employer [8]. There have been varied resultsregarding the effect of compensation on staff workperformance. [17] posit that giving relatively high monetarycompensations to staff lead to increase in staff workperformance. [17] noted that respondents overall fastresponse to task was positively correlated to the highcompensations given them. The comments of [17] areconsistent with other studies by [3], [15] which noted thatrelatively high monetary compensations may function as acatalyst for enhanced effort by employees to perform well. InFigure 1: Effect of Compensation on Junior Staff WorkPerformanceSource: Adapted from [13].4 RESEARCH METHODOLOGYThe study sought to gather and analyse information onexisting compensation systems for the junior staff in UCC,using the descriptive survey design. Therefore, the targetpopulation was the junior staff of UCC, who were 3,078 as atthe time of the study [10]. UCC was chosen for the studybecause public universities in Ghana are among institutionsbenefiting from SSPP but whose employees are still agitatingfor better salaries as at the time of the study. Also, there isVolume 4 Issue 5, May 2020www.ijarp.org44
International Journal of Advanced Research and PublicationsISSN: 2456-9992the perception among the junior staff of the University,especially, the sanitary labourers that they were better offbefore than after the implementation of SSPP and therefore,had been disadvantaged with the implementation of thepolicy. The sample for the study was 346 staff of theUniversity. Twenty-four (24) administrators under whosedirect supervision the selected junior staff work wereselected to assess the performance of the junior staff. Thesampling frame was a list of junior staff obtained from theDivision of Human Resource, UCC after permission hadbeen granted from the Deputy Registrar in charge of theDivision of Human Resource. The 24 administrators werepurposively selected from the various colleges, directorates,and halls of residence where the junior staff sample wereassigned. The 346 junior staff sample was obtained based onthe recommendation of [6] table for determining a samplesize from a given population. Therefore, it was appropriate tosample 346 junior staff from the population of 3078. Toobtain a fair representation of the junior staff from thepopulation of 3,078, stratified random sampling techniquewas used to put the junior staff in the various units based ontheir job schedule and sex. This is to ensure that eachelement was given an equal chance of being selected. Asampling proportion was used to select from each group. Forexample, to obtain the sample for male and female clerks andmessengers, the following procedure was followed: First, thetotal number of clerks and messengers which is 529 wasdivided by the total number of junior staff which is 3,078,then multiplied by 346 which is the sample for the juniorstaff obtained from the table for determining sample size of agiven population by [6]. The result was 59. The sameprocedure was followed to obtain representations for all theother positions. Since equal representation for male andfemale was desired for the study, proportional sampling wasagain used. Table 1 presents population and sampledistribution of staff by gender. After stratifying them into thevarious groups/strata, the lottery method of simple randomsampling technique was used to select the staff from eachgroup by writing their names on sheets of paper, which wasfolded and put into a bowl. The bowl was shaken and thefolded pieces of paper then picked at random withoutreplacement. The bowl was shaken to mix up the pieces ofpaper after each paper had been picked. The procedure wascontinued until the required number was obtained in eachstratum.Table 1: Population and Sample Distribution of Junior Staffby Job Position and GenderJob tants/TradesmenPortersConservancyGen. Lab.TotalData collection instruments, procedure, and analysisQuestionnaire for junior staff and an annual assessment formfor junior staff to be answered by the administrators were themain research instruments used to collect data from therespondents. Each questionnaire had an annual assessmentform of junior staff attached to it. The assessment form wasused to elicit data on junior staff performance. Afteranswering the questionnaire, all the junior staff handed thecompleted questionnaires to their immediate respectivesupervisors (administrators) to complete the assessment formfor each staff. Responses to the various items used in theinstruments were measured numerically using unilinear scalesuch that one (1) represents the strongest disagreement to theissues while five (5) represents the strongest agreement tothe issues. The reliability of the two instruments (junior staffquestionnaire and annual assessment form for junior staff)were 0.81 and 0.79 respectively. The data collection wascarried out in three stages. Stage I was the collection of listof junior staff from the administrators in charge, stage II wasthe distribution of the instruments and stage III was theretrieving stage. On the whole, out of the 346 respondentsvisited, 335 provided completed instruments; the remainingquestionnaires and assessment forms were given backuncompleted while others were not retrieved. This resulted in96.8 percent retrieval of completed questionnaires andassessment forms. The data were analysed using bothdescriptive and inferential statistics. Specifically, mean andstandard deviation were used to analyse data on the firstspecific objective while Pearson product moment correlationand multiple regression analyses were used to analyse dataon the second specific objective.5 RESULTS AND DISCUSSIONThe rationale for the first objective was to ascertain theviews of junior staff of UCC on compensation systems ofUCC. The results showing the views of the staff are depictedin Table 2 and 3 respectively. As depicted in Table 2,respondents disagreed that they were motivated by the highsalary the university is giving to them (Mean 2.355, Std.Dev. 0.307). Respondents further indicated that the annualallowances and cash bonus given to them by the Universitydid not motivate them to work harder (Mean 2.415, Std.Dev. 0.562). However, the respondents agreed that therewere enough loan facilities available to the staff (Mean 3.308, Std. Dev. 0.468). In addition, the staff disagreed thatthe opportunity of benefitting from car/motor loansmotivates them to work harder (Mean 2.436, Std. Dev. 0.483). They further disagreed that there are allowances foraccommodation for junior staff (Mean 1.728, Std. Dev. 5983691529817Table 2: View of Respondents on Financial Compensation ofthe University944513911516Statements on financial compensationI am motivated by the high salary the university isgiving meThe annual allowances and cash bonus motivatesme to work harderThere are enough loan facilities available tojunior staff of the university.The opportunity of benefitting from car/motorloans motivate me to work harderThere are allowances for accommodation forjunior staffFinancial 7521391061610711141185120131332511567Source: Field data, 2019.307828066346MeanStd. .3522.4480.304Source: Field data, 2019.Volume 4 Issue 5, May 2020www.ijarp.org45
International Journal of Advanced Research and PublicationsISSN: 2456-9992Generally, junior staff of the University were not pleasedwith the various forms of financial compensation available orgiven to them. This means, the staff were not happy with thefinancial payment (including wages, salaries, commissionsand bonuses) they receive as part of their work. The findingsare consistent with that of [12] who examined the linkbetween compensation packages and job performance in theGhana Police Service. Their study revealed that the staff ofthe Ghana Police Service were not happy with the variousforms of financial compensation packages given to them bythe government and the institution. The study further eliciteddata on respondents view on the various non-financialcompensation packages available or given to them. Theresults are presented in Table 3.Table 3: View of Respondents on Non-FinancialCompensation of the UniversityStatements on non-financial compensationThe provision of healthcare schemes or facilities forall staff motivates me to work harderThere are enough leave with pay for all staff of theuniversityThere are opportunities for promotion in theuniversityI am happy with the various training and developmentopportunities available for junior staffMy job in this university is securedThe pension scheme for junior staff in this universitymotivates me to undertake my job responsibilitiesdiligentlyThere is good working environment for junior staff inthis universityNon-financial .307Source: Field data, 2019.As indicated in the table, respondents disagreed that theprovision of healthcare schemes or facilities for all staffmotivated them to work harder (Mean 2.731, Std. Dev. 0.386). This may probably have been due to the existence ofthe free healthcare facilities provided by the National HealthInsurance Scheme. Similarly, respondents were of the viewthat the pension scheme for junior staff in the university didnot motivate them to undertake their job responsibilitiesdiligently (Mean 2.928 Std. Dev. 0.380). However, theyagreed that there were enough leave with pay for all staff ofthe University (Mean
Of Junior Staff Of The University Of Cape Coast John Kojo Sam Directorate of Physical Development and Estate Management University of Cape Coast john.sam@ucc.edu.gh Abstract: The purpose of the study was to examine the effect of compensation systems on the work performance of employees (junior staff) of the University of Cape Coast, Ghana.
Introduction Educational institutions are expected to prepare students for . economies with investments and operations crossing borders [7]. The Philippine government duly recognizes the . and progressive system of developing professionals with personal integrity, globally competitive, and committed to .
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