INFLUENCE OF COMPENSATION PRACTICES ON EMPLOYEE PERFORMANCE OF TEA COMPANIES IN RWANDA: A CASE STUDY OF RWANDA MOUNTAIN TEA
Journal Title: European Journal of Business and Social Sciences - Year 2017, Vol 6, Issue 6
Abstract
Competitive environment, compensation system of the company has direct impact on its employee performance. Compensation is one of the physical needs that motivates which in turn affect the employee performance. The effects of compensation on motivation vary from organization to organization. Employees themselves fail to recognize the fact that their compensation is a package and not only related to cash. The total populations of this study were 440 employees from 3 tea companies and the sample size were 205 employees of Rwanda Mountain Tea. In this study researcher was used questionnaire as data collection instruments. The compensation practices have an overall correlation employee performance of 0.801 which is strong and positive relationship between two variables. This means that approximately 80.1% variations of compensation practices were explained by the employee’s performance at 5% level of significance. Pearson correlation coefficient, (r=0.862) shows that there is a positive and high correlation between Compensation practices and employee performance in Rwanda Mountain Tea. This means that the Compensation practices have big contribution on employee’s performance in Rwanda Mountain Tea. The Tea Company is one of the vital sectors necessitating the growth and development of Rwanda economy, therefore, it is vital for Company to embark on effective compensation management policies that will protect and promote employees performance. Rwanda Mountain Tea should ensure the provision of good welfare packages that will encourage and promote employees performance. The need to retain effective and qualified work force is a necessity for a functional organization, thereby necessitating the need to provide good working conditions and effective working packages that will support in retaining effective work force.
Authors and Affiliations
Huguette UWIZEYE| Jomo Kenyatta University of Agriculture and Technology, Dr. Patrick MURYUNGI (PhD)| Jomo Kenyatta University of Agriculture and Technology
Keywords
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- EP ID EP10930
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