ABSTRACT
This study is titled, ‘ the impact of compensation policy and conflict management on employee performance’ The objectives of the study are: to ascertain the impact of compensation policy and conflict management on employee performance, to determine the effectiveness of compensation policy and the most effective method of conflict management in achieving organisational objectives and goals, to identify whether conflict has significant negative effect on employee performance to examine the relationship between conflict management and change for positive employee performance in organisations. Four hypotheses were tested using chi-square statistic. It was found that , good compensation
policy and effective conflict management improved employee performance . (X2cal 98.04>
X2 tab 9.49@ α 0.05). Good compensation policy and conflict management had significant effect on organisational goals and objectives. (X2cal 30.28 >X2tab 9.49 @ α 0.05).Conflict had significant negative effect on employee performance .( X2 cal 19.11 > X2 tab 9.49 @ α
0.05).Conflict had significant positive relationship with providing change for positive employee performance in organisations(X2 cal 25.57>X2tab 9.49@α 0.05).The conclusion is that conflicts are natural as employees are of different background and ideologies. Little grievances must be resolved swiftly. Individual differences must be harnessed for the smooth running of the organisation . Managers must evolve high skills in conflict
management techniques aimed at achieving both individual and organisational goals. Union members should embrace collective bargaining towards moving the employees and the organisations forward . The recommendations are that the organisation should introduce incentive plans that will stimulate employee performance. The management should see the employees as partners in progress. Management should ensure pay level is restructured to be in line with economic trends and non-cash rewards should also be introduced to the employees
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The essence of this study is to examine the impact of compensation policy and conflict management on employee performance. This research will examine the trends in these variables such as the effect of compensation and conflict types, reasons and strategies of compensating employees and managing conflict in an organisation.
Oxford dictionary defines compensation as the act of compensating or the state of being compensated either financially or otherwise. While compensation is an act of making a suitable payment for some loss in any establishment. It is primarily aimed at improving and also encouraging workers to be more dedicated to their works. Generally, compensation includes all reward as a result of income. The reward may be one or a combination of financial benefits and non-financial reward.
The total compensation programmes is the financial compensation (both direct and indirect) in designing total compensation programme which attract training and motivating employees. All types of rewards should be considered, according to Koontz (1984) high productivity may be determined by employees ability to work in good condition and unity. Therefore, employees that are well rewarded will serve to motivate performance, increase turnover and reduce absenteeism in an organisation. However, if
workers or employees are not well compensated or rewarded, it will lead to conflict in the
organisation.
The impact of conflict management on employee performance is inevitably part of organisation lifespan. Conflict is an unpleasant fact in any organisation, as long as people compete for jobs, resources, power, recognition and security. Organisation conflict can be regarded as a dispute that occurs when interests, goals or values of different individual or groups are incompatible with each other. This results into a situation whereby there will not be unity among workers or employees and this can have a negative impact on the organisation in meeting its set goals and objective.
The complexity in culture and social differences make it more difficult for organisation in resolving issues or problems encountered when faced with such crisis. Many organisations have seen the need for various types of training and employee development programs to help workers acquire the needed skill in conflict management.
Leatherman, et al (1999) hold that conflict prevention should be the first phase of any comprehensive conflict maintenance system. Central to those techniques and strategies aimed at employee performance and profitability is the human capital, the drive to optimize the deployment of human resources for the attainment of conflict management has assumed a new dimension in form of enhanced focus on effective team work. Since it is believed that there must be conflict in the workplace, Casey and Casey (1997) suggest self-esteem training as an aid of acquiring conflict management skill.
If these two variables, i.e compensation policy and conflict management, are well attended to or managed,it will allow the organisation to enjoy effective and efficient
employees performance. It will also allow the organisation‘s to adopt to change in the environment and serve as sources of motivation to employee to be more innovative and creative which is very important for organisation survival and growth. It will also ensure quality decision in resolving conflict, which will help in bringing unity among employees and above all it leads to effective performance from the employees.
1.2 Statement of the Problem
The human nature is quite complex. Human needs are unsatiable and also differs. An item that makes an individual smile in the morning, may have no effect in the afternoon. Within the organisation, the employees may agitate over one policy of management or the other. There may be dispute between one employee and another. If not immediately attended to, the aforesaid may result to conflict.
There are many problems that emanate from the way organisation plans their compensation policy and conflict management and how it affects employee‘s performance in the organisation. Many organisations fail to find a lasting solution to the above problem which makes the organisation less competitive. Thus, this research is to provide answer to the question revolving around organisation compensation policy and conflict management.
1.3 Objectives of the Study
The broad objective is to assess the importance of compensation policy and conflict management on employee satisfaction, stability and motivation and ultimately organisational growth and profitability. The following are the specific objectives of the study:
i. To ascertain the impact of compensation policy and conflict management on employees performance.
ii. To identify the effectiveness of compensation policy and the most effective method of conflict management in achieving organisation objectives and goals.
iii. To determine whether conflict has significant negative effect on employee performance.
iv. To examine the relationship between conflict management and change for positive employee performance in organisations
1.4 Research Questions
1) Do Compensation policy and conflict management contribute to employee performance?
2) Do Compensation policy and conflict management help organisation to meet its set goals and objectives?
3) Do Compensation policy and conflict management enhance employees productivity and performance?
4) Does conflict management have any relationship with change for positive employee performance in organisations?
1.5 Hypotheses
For the purpose of carrying out this research, the following hypothesis would be raised.
1. H0:Goodcompensation policy andeffective conflict management will not improve employee performance.
HA: Goodcompensation policy and effective conflict management will
improve employee performance.
2. HO:Good compensation policy and effective conflict management have no significant effect on organisational goals and objectives
HA:Good compensation policy and effective conflict management have significant effect on organisational goals and objectives
3. HO:Conflict has no significant negative effect on employee performance
HA: Conflict has significant negative effect on employee performance
4. HO:Conflict resolution has no relationship with providing change for positive employee performance
HA: Conflict resolution has relationship with providing change for positive employee performance
1.6 Significance of the Study
This study is to examine the extent of which compensation policy and conflict management can be used as a tool in improving organisational performance in Guinness Nigeria Pic. It is also aimed at finding out if the effort of the employees are commensurate with financial compensation policy and conflict management strategies adopted by the organisation.
1.7 Scope of the Study
This study on compensation policy and conflict management on employees performance in Guinness Nigeria Plc, Ikeja, Lagos State used the employees at Ikeja plant as the respondents for ease of access. The respondents were randomly selected. The responses can be said to reflect the feelings of workers in other plants within the manufacturing sector of the nation. This study was conducted within two months during which copies of
questionnaire were distributed and retrieved from the respondents
1.8 Limitations of the Study
The major limitations to this study were time, finance and attitude of the respondents:
• Time: Due to the limited time allowed for the study, the researcher could not get all the information required for the study.
• Finance: Due to financial constraints, the researcher could not visit places where information relevant to the study could be obtained.
• Attitude of the Respondents: Some of the respondents were unwilling to supply the necessary information even when they were assured that the information supplied would be used for academic purpose.
1.9 Operational Definition of Terms
Motivation: This the psychological feature that arouses an organism to action toward a desired goal and elicits, controls, and sustains certain goal directed to behaviours. There are financial and non- financial incentives that serve as motivational tools to workers.
Incentive: This refers to something that incites or has a tendency to incite determination or action. This can be financial, or non – financial incentives are bonuses, increase in pay. Non-financial incentives are benefits given for achievement.
Performance: This is a measure of how well resources are gathered and utilized for accomplishing a set goal or objective. The accomplishment of a given task measured against present known standards of accuracy, completing cost, and speed. Fulfilment of an obligation or task. To be done from time to time.
Employee: A person who is hired to provide services to a company on a regular basis in exchange for compensation or reward is referred to an employee. Employees are engaged
and contracted by the organisation to perform certain tasks for which they are rewarded from time to time.
Manager: This refers to someone who is responsible for planning, organizing, leading and controlling the activities of an organisation. He oversees and monitors the activities of the subordinates. He equally reports on their performances.
Compensation: This is the act of compensating or the state of being compensated either financially or otherwise. Financial compensation is in form of salaries, wages, bonus. Non-financial compensation are benefits (Health, Safety) offices, company vehicle etc.
Reward: Its a compensation given as a result of hard work. They come in form of promotion, increase in pay, recognition, and allocation of bigger responsibilities and corporate assets.
Conflict: This means struggle, disputes, argument, different opininons and personal interaction with differences of opinion. It usually arises from workers to management relations on remuneration for work done.
Organisation Effectiveness: This is the ability of the organisation to achieve both subordinate and organisational objective in most economical way. It measures how the organisation is able to meet its stated goals and objectives.
Conflict Management: This can be defined as the organisational ability to manage daily situation that involve different personal opinions and views towards achieving organisational objectives. The procedure for handling grievances, complaints or industrical disputes. They are usually stated in the employee handbook or company
policy.
Productivity:This is the quality, state or act of being able to generate, create, enhance, or bring forth, goods and services. It measures the overall contribution of employees to the organisation. It is usually reflected in corporate growth and profitability.
1.10 Historical Background of Guinness Nigeria PLC
Guinness Nigeria Pic formerly Guinness Nigeria Limited, was incorporated in 1950 to import and distribute Guinness Stout from Dublin for sales in Nigeria. Following the great success of this product in Nigeria, a decision to build a small brewery in the country was taken in 1960. The brewery was built in 1962 at Ikeja which makes Nigeria the 3rd country in the world after Dublin and London where Guinness is brewed. The increase in demand for Guinness product influenced the management of Guinness Nigeria Limited to enter the larger beer market with the construction of the Harp Brewery in Benin. As a result of growing interest of Nigerians for lager beer in 1978, the demand for Guinness stout overgrew the supply, and a third brewery was built in Benin and commissioned that
same year to take care of the huge market demand in eastern zone.
The success of Harp lager beer and the subsequent huge growth in market demand necessitated the construction of the fourth brewery in 1983, at Ogba, Ikeja to produce more lager beer.
The contribution of Guinness Nigeria Pic to the National economy lies not only in the provision of direct employment to over four thousand (4000) employees, but also, the direct job opportunities created for thousands of other Nigerians engaged in various sections of the organisation.
On the average, the company pays to the Federal Government, the sun of N1 million per month in excise duties, and also aligned with government policies on import substitution. Furthermore, the company is also committed to the maintenance of the high quality products which makes Guinness Nigeria leader in that sector.
To ensure availability of resources, the company developeda farm at Kodo in Niger state for cultivating the materials required for its production. The sourcing of its materials is through direct farming and by means of contract arrangement with local farmers.
This material content is developed to serve as a GUIDE for students to conduct academic research
THE IMPACT OF COMPENSATION POLICY AND CONFLICT MANAGEMENT ON EMPLOYEE PERFORMANCE IN GUINNESS NIGERIA PLC
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