American Journal of Business and Society
Articles Information
American Journal of Business and Society, Vol.2, No.3, May 2017, Pub. Date: Aug. 8, 2017
Executive Compensation Management and Productivity Among Small and Medium Enterprises in Nigeria
Pages: 42-51 Views: 125 Downloads: 80
Authors
[01] John Nkeobuna Nnah Ugoani, Department of Management Sciences, College of Management and Social Sciences, Rhema University, Aba, Nigeria.
Abstract
The study was designed to evaluate the effect of executive compensation management on productivity among SMEs in Nigeria and make recommendations. Compensation is a primary motivator for employees who bring their labour in exchange for rewards. People look for jobs that not only suit their talents and creativity, but also that which compensate them both in terms of salary and other benefits. Due to competition, traditional methods of compensation that involves set pay levels with regular annual increases are no longer fashionable. As businesses change their focus, their approach to compensation must change so as to retain competent executives. This is necessary because traditional compensation methods may hold an enterprise back from adequately compensating its best employees. With about 17.3m SMEs in Nigeria good compensation management will provide the platform for executive manpower development that will help in driving the economy. The exploratory research design was used for the study. Data were analyzed using the descriptive statistical methods and it was found that executive compensation management correlates positively with productivity.
Keywords
Traditional Compensation, Executive Compensation, Adjustments, Pay-for-Knowledge, Pay-for-Performance, Equity Theory
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