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Compensation, Employee Performance And Organization Performance In Guarantee Trust Bank (Gt Bank) Plc

Author

Listed:
  • Bolaji Saheed HAMZAT

    (Bells University of Technology, Nigeria)

  • Bashiru Akande BELLO

    (Bells University of Technology, Nigeria)

  • Adedayo Mathias OPELE

    (Bells University of Technology, Nigeria)

Abstract

In this paper, we moved away from the questionnaire and interview data gathering approach to test the fundamental assumption of HRM practices as they impact both employee and organizational performance using financial data. We argued that performance is better appraised a posteriori. Thus, we extracted financial data from the annual financial report from year 2002 to 2012 and the Pearson Correlation method is used to analyze the data. The analysis reveals that there is a positively strong and statistical significant relationship between, firstly, compensation and employee performance (0.815); secondly, compensation and organizational performance (0.666); and lastly, between employee performance and organizational performance (0.903). However, the findings should be treated with caution as these relationships do not imply a causal one. Importantly, the results strengthen the fundamental role of HRM practice of compensation as one of the important drivers of employee performance that culminates into the overall improved organizational performance.

Suggested Citation

  • Bolaji Saheed HAMZAT & Bashiru Akande BELLO & Adedayo Mathias OPELE, 2018. "Compensation, Employee Performance And Organization Performance In Guarantee Trust Bank (Gt Bank) Plc," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(4), pages 14-28, December.
    • Handle: RePEc:rom:bemann:v:8:y:2018:i:4:p:14-28
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    References listed on IDEAS

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    1. Danielle D. van Jaarsveld & Yoshio Yanadori, 2011. "Compensation Management in Outsourced Service Organizations and Its Implications for Quit Rates, Absenteeism and Workforce Performance: Evidence from Canadian Call Centres," British Journal of Industrial Relations, London School of Economics, vol. 49(Supplemen), pages 1-26, June.
    2. Ian Larkin & Lamar Pierce & Francesca Gino, 2012. "The psychological costs of pay‐for‐performance: Implications for the strategic compensation of employees," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1194-1214, October.
    3. Onishi, Koichiro, 2013. "The effects of compensation plans for employee inventions on R&D productivity: New evidence from Japanese panel data," Research Policy, Elsevier, vol. 42(2), pages 367-378.
    4. Council on Food Agricultural and Resource Economics, C-FARE, 2016. "2015 Annual Report," C-FARE Reports 260839, Council on Food, Agricultural, and Resource Economics (C-FARE).
    5. Seip, Knut Lehre & McNown, Robert, 2015. "Does employees’ compensation vary with corporate profit?," Journal of Policy Modeling, Elsevier, vol. 37(2), pages 281-290.
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    Cited by:

    1. Salim Muhammad OGAJI, 2019. "Employees’ Competence And Business Performance: A Study Of Selected Hotels In Keffi," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(4), pages 5-17, December.
    2. Lawrence Arokiasamy & Takemi Fujikawa & Shishi Kumar Piaralal & Thilageswary Arumugam, 2024. "Role of HRM Practices in Organization Performance: A Survey Approach," International Journal of Sociotechnology and Knowledge Development (IJSKD), IGI Global, vol. 16(1), pages 1-32, January.

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