Effects of remuneration and performance of employees in manufacturing organisations

Abstract

The purpose of this study is to establish the relationship between Effects of Remuneration and Performance of Employees in Manufacturing Companies. The study was guided by 3 specific objectives which include; to examine the relationship between performances related pay and motivation of employees in a manufacturing organization, to examine the relationship between rewards inform of incentives and efficiency/effectiveness of employees in a manufacturing organization and to evaluate the relationship between indirect compensation and productivity of employees in a manufacturing organization. The study adopted a case study design, a quantitative and a qualitative approach that was used as the study approach and a cross section design which was the time dimension. The sample size for the study was 80 respondents of which 71 answered the questionnaires which were distributed and this was the basis of data collection. The research findings established that there is a significant positive relationship between Effects of performance related pay and performance of employees, a significant positive relationship between effects of incentives and rewards and performance of employees, and lastly, there is a significant positive relationship between effects of indirect compensation and performance of employees. The study therefore recommends management of manufacturing organizations to remunerate their employees openly with equal rates that relate to what the employee needs to earn basing on the employment Act 2006. These organizations need to ensure their employees better understand what they are working for and what they will get out of it and show that they value their employees and reward them using both group incentives and individual incentives.