Effect Of Compensation Strategies On Organisational Performance (A Study Of Selected Tertiary Institutions In Akwa Ibom State) :- Udomisor, Mekeme N

ABSTRACT x This study examines the effect ofcompensation strategies on organizational performance in selected tertiary Institution in Akwa Ibom State. The specific objectives were to ascertain the effect of basic pay on organizational performance in selected tertiary Institutions in Akwa Ibom State; to examine the effect ofleave grant payment on organizational effectiveness in selected tertiary Institutions in Akwa Ibom State, to analyse the effect of accommodation allowance and health allowance on organizational performance in selected tertiary Institutions in Akwa Ibom State and to determine the challenges ofcompensation strategies in selected tertiary Institutions in Akwa Ibom State. The study adopted the survey research design. A total number of (6595) six thousand five hundred and ninety five were the population of the study in which (377) three hundred and seventy-seven sample representatives were derivedfrom the population through the Taro Yurnaneformula. Primary data were sourced through questionnaire administered to employees ofthe selected tertiary Institutions in Akwa Ibom State, simple percentages statistical analysis, mean score and standard deviation were usedfor data analysis, while pearson product moment correlation with the aid ofstatistical packagesfor social science (SPSS) was usedfor testing hypotheses one and two while hypotheses three and four were tested using kruskal wallis test. The findings of the study revealed that basic pay has a positive and significant effect on organizational performance, leave grant payment has a positive and significant effect on organizational effectiveness, health and accommodation allowance has a negative and no significant effect on organizational performance, organizational politics and capability to pay does not affect organizational performance. From the hypotheses, the study concludes that there is significant effect ofbasic pay on organizationalperformance in selected tertiary Institutions in Akwa Ibom State, there is significant effect of level grant payment on organizational effectiveness in selected tertiary Institution in Akwa Ibom State, there is no significant effect ofhealth and accommodation allowance on organizational performance in selected tertiary Institution in Akwa Ibom State. The following recommendations were made based on findings of the research: Management of tertiary Institutions should ensure adequate and prompt payment ofsalaries to their employees, organizations should instill timely health and accommodation allowance payment to their employees as a culture, compensation strategies should be modified periodically to detect and eliminate allforms of organizationalpolitics that would hinder its execution.