COMPENSATION MANAGEMENT AS A TOOL FOR IMPROVING ORGANISATIONAL PERFORMANCE IN THE PUBLIC SECTOR

ABSTRACT: The growing emphasis on employee engagement as critical to organizational performance means that the concept of total reward is exerting more and influence on reward strategy. Reward management however, is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. This study attempted to examine compensation management as a tool for improving organizational performance in public sector. Relevant literatures were reviewed to highlight the subject matter. State Internal Revenue Service [LIRS] was chosen as the case study. Selected representative comprising of staff and management of LIRS formed the sample size examined. A sample of one hundred (100) was drawn from the population. Simple Random Sampling technique was used in selecting the sample. A structured questionnaire was used to collect data. Respondents responses were presented in frequency tables and simple percentages was used for demographic data, while correlation method of data analysis was employed for hypotheses testing. Two hypotheses were formulated and tested accordingly. The test resulted to rejecting the two null hypotheses and concluding that poor compensation packages affects workers morale and productivity in public sector. And effective remuneration structure aids organization in achieving high level of performance. Consequently, it was proffered that compensation should be goal driven for instance, State Internal Revenue Service [LIRS]  should place more emphasis on financial reward, this will aid workers to evaluate his performance towards the organization, thereby promoting organizational performance and profitability.