Compensation System and Employee Performance in Public Sector Organisations, A case Study of Uganda Industrial Research Institute (Uiri), Kampala-uganda

ABSTRACT The research was carried out in Uganda Industrial Research Institute about the Compensation systems and employee performance. The purpose of the study was to investigate whether there is a relationship between compensation system and employee performance in Uganda Industrial Research Institute. The research objectives were; i) to examine compensation system in Uganda ~ndustria1 Research Institute, ii) to determine the level of employee performance in UIRI; iii) to establish the relationship between compensation system and employee performance . The research was guided by a conceptual frame work and supported by motivational theories like Abraham Maslow,Expectancv theory. The methods that were used to collect the data included questionnaires and secondary data. The frequency and dist!~bution tables were used to determine the demographic characteristics of the respondents. To ensure the validity and reliability of the instruments, the researcher employed the expcrt judgment method. After constructing the questionnaire. the researcher contacted experts in the study area to go through it to ensure tl~at it would measure what it is designed to measure and necessary adjustments was made after consultation and this ensured that the instrument is clear, relevant, specific and logically arranged. The results from the reliability test using SPSS; The researcher made conclusions in terms of strength and weaknesses. For the case of strengths; The level of compensation s~ stems in UTRI was high. Me~tning that UIRI’s compensation systems can be regarded as good. The employees revealed that the compensation system is high. Rewards of workers are based on employees’ skills applied to the organization and also UTRI rewards and recognizes individual efforts and contribution very high. The results therefore the results indicate that rewards among the employees in UTRI are as a result of skills. Skilled emplo ees ar~ rewarded highly than those who are not. Also there are recognitions and rewards for individual contributions towards the growth of UIRI. 

TABLE OF CONTENTS

Declaration

Approval 

Dedication iv

CHAPTER ONE 1

INTRODUCTION I

1.1 Background of the Study I

1.1.1 Flistoiical Perspective I

1 .1 .2 Theoretical Perspective 4

1.1.3 Conceptual Perspective 5

1.1 .4 Contextual Perspective 6

1.2 Statement of the Problem 7

1.3 Purpose of the Study 8

1.4 Research objectives 8

1 .5 Research Question 8

1.6 Research Fly~othesis 8

1.7.1 C.Ieographical scope 9

1.7.2 C~ontent Scope 9

1.7.3 l’irne Scope 9

1.8 Significance /Justification ofthe Study 9

CHAPTER ‘I~4’O 11

Literature review 11

2.1 introduction 11

vu

2.1 1 Compensation System .11

2.1.3 The relationship between Compensation System and Employee Performance2l

2.2Theoretical Review 24

2,2.1 Expectancy Theory 25

2.2.2 N4aslow’s Hierarchy of Needs Theory 26

2.3 Conceptual Framework 26

CHAPTER THREE 33

METHODOLOGY 33

3.0 Introduction 33

3.1 Research Design 33

3.3 Sample Size 34

3.4 Samplinu Procedures 35

3.5 Research Instrumeni 35

3.6 Validity and Reliability of the Instrument 36

3.71 Before the Administration of the Questionnaires 37

3.9 Ethical Considerations 38

3.10 Limitations of the Study 39

CHAPTER FOUR 40

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 40

4.0 Introduction 40

4.1 Demographic Characteristics of Respondents 40

4.2 Compensation system in Uganda industrial research institute 42

4.3 level of employee perfoi’mance in Uganda industrial research institute 46

4.4 Relationship between Compensation System and Employee Performance in Uganda

Industrial Research Institute 51

CHAPTER FIVE

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 58

5.0 Tntrcduction 58

5.1 Findings 58

5.2 Conclusions 61

5.3 Recommendations 63

5.4 Areas for further research 63

References 64

Appendices 67

Appendix lA: I’ransmittal letter 67

Appendix IB: TransMiual letter for respondents 68

Appendix II: Clearance from ethics comniittee 69

Appendix I [I : Infornied consent 70

Appendix IV: Research instruments 71

Inter~ jew Guide for Key Informants 75

Researcher~s Curriculuni Vitae 76