CHAPTER ONE
INTRODUCTION
1.1BACKGROUND TO THE STUDY
The role of remuneration in shaping the live of an organization cannot be overemphasized. Now, remuneration management has been described as the development, implementation, maintenance, communication and evaluation of reward processes (Galanou et al cited in Aninkan, 2014).Ordinarily, the management of people at work is an integral part of the management process, put differently, managers need to understand the critical importance of people in their organizations so as to recognize that the human element and the organization are synonymous (Popoola et al cited inOdunlade, 2012)
Therefore, it is imperative to compensate an employee with benefits if he merits it. It is put that because of the importance that compensation holds for people's lifestyle and self esteem, individuals are very concerned about what they are paid – a fair and competitive wage, while organizations are also concerned about what they pay because it motivates important decisions of employees about taking a job, leaving a job and on the job performance (Cascio cited in Odunlade, 2012).
The concept of compensation according to Bernadin ( in Odunlade, 2012) refers to all forms of financial returns and tangible benefits that employee receives as part of employment relationship. Given the whole ambits of human resource management, hardly is any issue more important, relevant, and crucial to an employee than what he receives in exchange for his labour and services to the organisation. In present days, among manager’s tasks is to create an environment which motivates people to perform satisfactorily and to be a profitable asset, so that they can foster the organisation’s growth. Job satisfaction and motivation are two inseparable brothers.
Motivation has been described as an accumulation of different processes which influence and direct ones behaviour to achieve some specific goals (Danich and Usman, 2010). It is such a dynamic in today’s environment that explicitly creates and encompasses a positive impact on job. Motivation contains those psychological processes that cause the arousal direction and persistence of voluntary actions that are goal directed (Kreiter and Kinicki cited in Aninkan, 2014). Motivation is premised on certain intrinsic, as well as extrinsic factors which in collaboration results in fully committed employees (Galanou et al cited in Aninkan, 2014).
The issue of job satisfaction has being the cause of incessant disputes with the NLC and the Federal Government. Ditto is the case with the Academic Staff Union of Universities. The issues range from autonomy, bad working conditions, failure to fulfil agreements, to inadequate remuneration. In Lagos State tertiary educational institutions, the complaints have being the unpaid salary arrears, high handedness of governing councils, late payment of monthly salaries and allowances. For employees to be effective and efficient on their job, it is imperative to be satisfied with their job. Hence, the undertaking of this study will examine the Effect of Remuneration on Employees Job Performance with a special reference to Ikorodu Local Government Area (LGA).