IMPACT OF EMPLOYEE COMPENSATION ON ENTREPRENEURIAL PRODUCTIVITY
ABSTRACT
This research study with the topic “Impact of Employee Compensation on Entrepreneurial Productivity” sort to find out if there was any significant improvement on entrepreneurial productivity by way of fair and adequate employee compensation. The most visible reward for work is monetary. Not surprising therefore, that employees place great
emphasis on matters relating to their remuneration. Compensation is the remuneration received by an employee in
return for his/her contribution to the organization. It refers to payment of a fair and adequate remuneration to
employees. In a nut shell, compensation is price for labour. The main objective of this study is to highlight the need for
adequate remuneration especially in the private sector. To enumerate the effect of inadequate remuneration on
entrepreneurial productivity, examine the correlation between remuneration and employee performance among
others. Survey research method was used through the use of comprehensive questionnaires which were distributed
among members of staff of Flying Eagle Shipping Limited. In the analysis of data collected, it was found that
employee compensation has significant impact on entrepreneurial productivity. Employee is the most vital resource
for any organization hence the need for fair and adequate compensation. Based on the findings of this research work,
it was recommended that the issue of employee remuneration should be taken seriously by Entrepreneurs.
Entrepreneurs should change their orientation about employees and pay more attention to their compensation as
employee is the goose that lay the golden egg for the organization. This research work will be of immense importance
to employees and employers in the private sector especially human resources Managers who will adopt the findings
of this research for better compensation scheme of their workers.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of Research Problems
1.3 Research Objectives
1.4 Research Questions
1.5 Research Hypotheses
1.6 Significance of the study
- 7 Scope and Limitation of Study
1.8 Operationalization
1.9 Profile of Flying Eagle Shipping Limited
1.10 Scope of Services Rendered by Flying Eagle Shipping Limited
1.11 Definition of Terms - CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Employee
2.3 Compensation
2.3.1 Factors Affecting Compensation
2.3.2 Types of Compensation
2.3.3 Role of Compensation to Employee
2.3.4 Objectives of Compensation
2.3.5 Incentive
2 .3.6 Roles of Incentive
2.3.7 Training and Development
2.3.8 Difference Between Training and Development
2.3.9 Promotion
2.4 Productivity
2.5 Entrepreneurship
2.5.1 Entrepreneurship Perspective
2.5.2 Entrepreneurial Process
2.5.3 Entrepreneurial Management
2.5.4 Who is an Entrepreneur
2.5.5 Characteristics of Entrepreneur
2.5.6 Conceptual Frame Work
2.5.7 Theoretical Frame Work
2.5.8 Empirical Frame Work
2.5.8 Historical Frame Work - CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Method
3.3 Research Design
3.4 Study Population
3.5 Research Sample Frame
3.6 Data Source and Data Collection Procedure
3.7 Research Instruments
3.10 Validity Test of Research Instrument
3.11 Reliability of Test of Research Instrument - CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Data Analysis
4.3 Testing of Hypothesis
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Summary of Chapters
5.3.1 Theoretical Findings
5.3.2 Empirical Findings
5.4 Recommendations
5.5 Conclusion and Policy Implications
5.7 Contribution to Knowledge
References
Questionnaire - CHAPTER ONE
- INTRODUCTION
- 1.1. BACKGROUND OF STUDY
- After the Second World War, concern for economic development became all-pervasive. There was a growing concern for economic development and this strengthened interest in entrepreneurship with primary focus on exploring
practical measures to augment the supply of entrepreneurs, i.e. persons with competence and aptitude to initiate, nurture and expand industrial enterprises. This resulted in the belief in education and training to inculcate and develop entrepreneurial capabilities in people so that they could set up their own enterprises. Subsequently programmes directed towards this goal were conceptualized.The nineteen century was a fertile time for entrepreneurial activity, as technological advances during the industrial
revolution provided the impetus for continued inventions and innovations. Much of the literature in the field of
entrepreneurship is from the USA and Europe, and thus is based upon western values and cultures. The study of
entrepreneurship continues to grow as a field of enquiry and remains one of the most attractive areas of research in
the management field.
Entrepreneurship (small business enterprise) plays a significant role in world economy. Specifically, small business
firm constitute majority of the types of businesses in all economies of the world (Hill and McGowan, 1999, Timmons,
1994; Storey, 1994, Culkin and Smith, 2000). Some of the world’s multi-national corporations, which have influenced
many world economics, started as small business enterprise.
In Nigeria entrepreneurship, (small business enterprise) accounts for substantial part of the total industrial
employment, production, and value-added in Nigerian business concerns. Okongwu (2001) explained that small
business enterprises generate the industrial wealth of Nigeria in addition to being a major agent in the economic,
technological, social and political growth and development of Nigeria, not minding the presence of multinational and
other large firms in Nigeria such as Shell, Mobil, NNPC, NITEL, NPA, NPHC, Lever Brothers, Nestle Foods and others.
Through small business entrepreneurship, jobs are created not just for the entrepreneurs themselves but also for
other people in the Nigerian economy. The aftermath of creation of jobs is reduction in dependence on government to
provide everybody with jobs, reduce government expenditure, improve standard of living of Nigerians, reduce social
ills in the society, create balanced budget for the economy and invariable leads to higher Gross Domestic Product (GDP)
IMPACT OF EMPLOYEE COMPENSATION ON ENTREPRENEURIAL PRODUCTIVITY