Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

An Exploratory Study of Compensation Mix in Pay Administration System: The Ghanaian Situation

Rita Sarkodie Baffoe, Kofi Amponsah Bediako

http://dx.doi.org/10.6007/IJARBSS/v11-i12/10907

Open access

Compensation research has focused on the various forms of pay (financial and non-financial) and structure (relationship between various incentive levels) and whether these incentives contribute to inspiring workers to offer their best results.
There has been less focus on incentive balance choices, i.e. the comparative amounts that make up the complete reward of each factor.
Compensation is a key issue in pay administration and in attracting, retaining and motivating the workforce of every organization. Most Organizations adopt the most equitable within and efficient externally, pay structures to obtain maximum performance from their workers. Less emphasis has been placed on compensation mix decisions by policy makers either because they find the concept to be foreign to the Ghanaian situation or lack the understanding of how to incorporate it in their compensation policy.
Therefore, this paper discusses current literature on the notion of compensation mix and it relevance, applicability and adoption to the Ghanaian situation and seeks to determine whether its applicability will lead to addressing some of the employee perceptions on compensation. The researchers’ further outlines strategies it believes could support better employee engagement of workers in Ghana through the adoption of the right compensation mix as a human resource tool in setting pay levels and pay structures and influencing compensation policy.

Anderson, M. C., Banker, D. R., & Ravindran, S. (2000). Executive compensation in the information technology industry. Management Science 46(4) 530–547.
Anku-Tsede, O., & Kutin, E. (2013). Total Reward Concept: A Key Motivational Tool for Corporate Ghana. Business and Economic Research, 3(2).
Armstrong, M., & Stephens, T. (2005). Handbook of Employee Reward Management and Practice. Kogan Page,London.
Armstrong, M. (2006), A Handbook of Human Resource Management Practice. (10th ed.), Kogan Page Limited, London.
Armstrong, M., & Murlis, H. (2007). Reward Management: A Handbook of Remuneration Strategy and Practice. London, Kogan Page Limited
Armstrong, M. (2009). Handbook of human resource management practice, 11th (ed.) Kogan Page, London
Armstrong, M., Brown, D., & Peter Reilly (2011). Increasing the effectiveness of reward management: an evidence-based approach. Institute for Employment Studies, London, UK Vol. 40 No. 7, pp. 1651-82. Employee Relations Vol. 33 No. 2, 2011 pp. 106-120
Armstrong, M., & Murlis, H. (2007), Reward management: A handbook of remuneration strategy and practice, 5th ed, Kogan Page Limited, London
Balkin, D., & Gomez-Mejia, L. (1990). Matching compensation and organizational strategies. Strategic Management Journal 11: 153-169.
Banjoko, S. A. (2006). Managing corporate reward system. Lagos; Pumark Nigeria Limited.
Beatty, R. P., & Zajac, E. J. (1994). Managerial incentives, monitoring, and risk bearing: A study
of executive compensation, ownership, and board structure in initial public offerings.
Administrative Science Quarterly, 39: 313-353.
Bevan, S. (2006), New Realism in Reward Strategy, e-reward, Stockport.
Bloom, M., & Milkovich, G. T. (1998). Relationships among risk, incentive pay, and organizational performance. Academy of Management Journal, 41: 283-297.
Burke, L. A., & Hsieh, C. (2006). “Optimizing fixed and variable compensation costs for employee productivity”, International Journal of Productivity and Performance Management, Vol. 55 Nos 1/2, pp. 155-62
Bussin, M., & Toerien, W. C. (2015). Influence of reward preferences in attracting, retaining, and motivating knowledge workers in South African information technology companies. Acta Commercii, 15(1), Art. #290, 1–13. https://doi.org/10.4102/ac.v15i1.290
Chapman, J., & Kelliher, C. (2011). Influences on reward mix determination: Reward consultants? perspectives. Employee Relations, vol. 33, no. 2, pp 121-139.
Chen, H. M., & Hsieh, Y. H. (2006). Key Trends of the Total Reward System in 21st Century. Compensation and Benefits Review, 38(8), 64–70.
http://dx.doi.org/10.1177/0886368706292542.
Dalvi, M., & Ebrahimi, H. (2013). Investigating the Effects of Reward on the Cooperation in the Sale and Marketing Department from Managers’ Perspective (Isfahan Food industries Case Study). International Journal of Academic Research in Business and Social sciences, 3 (1), 144-153.
Danehower, C., & Lust, J. A. (1996). How aware are employees of their benefits? Findings from two companies. Benefits Quarterly, 12(4), 57.
Datta, P. (2012). An Applied Organizational Rewards Distribution System. Management Decision, 50 (3), 479-501
Diekmann, N. (2015) "Understanding Pay: Perceptions, Communication and Impact in For-Profit Organizations" (2015). Education Doctoral Dissertations in Leadership. 65. https://ir.stthomas.edu/caps_ed_lead_docdiss/65
Dreher, G. F., Ash, R. A., & Bretz, R. D. (1988). Benefit coverage and employee cost: Critical
factors in explaining compensation satisfaction. Personnel Psychology, 41: 237-254.
Dunn, P., He, Z., & Trabelsi, S. (2018). Executive compensation and compensation risk: evidence from technology firms www.emeraldinsight.com/0268-6902.htm.
Egan, J. (2011). Strategic rewards and total rewards. The Chartered Institute of Personnel and Development. Retrieved March 12, from http://www.cipd.co.uk
Elvira, M. M. (2001). “Pay me now or pay me later: analyzing the relationship between bonus and promotion incentives”, Work and Occupations, Vol. 28 No. 3, pp. 346-70.
Falola, H. O., Ibidunni, A. S., & Olokundun, A. M. (2014). Incentives packages and employees’ attitudes to work: a study of selected government parastatals in Ogun State, South-West, Nigeria, International Journal of Research in Business and Social Science IJRBS, 3(1), 2147-4478.
Eisenhardt, K. M. (1988). Agency-and institutional-theory explanations: The case of retail sales
compensation. Academy of Management Journal, 31: 488-511.
Foot, M., Hook, C., &Jenkins, A (2016) Introducing Human Resource
Management.7thed.Pearson Education Limited.
Gerhart, B., & Rynes, S. (2003). Compensation: Theory, Evidence, and Strategic Implications. Sage Publications
Gupta, N., & Shaw, J. D. (2015). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24, 1–4.
doi:10.1016/j.hrmr.2013.08.007
Gerhart, B., & Milkovich, G. T. (1990). Organizational differences in managerial compensation
and financial performance. Academy of Management Journal, 33: 663-691.
Gomez-Mejia, L. R., Tosi, H., & Hinkin, T. (1987). Managerial control, performance, and executive compensation. Academy of Management Journal, 30: 51-70.
Gomez-Mejia, L. R. (1992). Structure and Process of Diversification, Compensation Strategy, and Firm Performance, Strategic Management Journal, vol.13, pp.381.
Gupta, N., & Shaw, J. D. (2015). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24, 1–4.
doi:10.1016/j.hrmr.2013.08.007.
Hartman, D. (2014). Types of finance-rewards and incentives, 2011, Available at www.eHowmoney.com accessed on the 4th of May.
Heneman, F. (2003). Behavioral management and task performance in organizations: Conceptual background, meta-analysis and test of alternative models. Pers. Psychol. 56, 1-10
Idemobi, E., Onyeizugbe, I., Chinedu, U., & Akpunonu, E. O. (2011). Compensation management as a tool for improving organizational performance in the public sectors, International Journal of Human Resource Management, 1(1), 109-120
Ivancevich, J. M. (2004). Human resource management, New York: McGraw-Hill/Irwin
Jiang, Z., Xiao, Q., Qi, H., & Xiao, L. (2009). Total rewards strategy going with the trend of the times. International Journal of Business and Management, 4(11) 177–183
Judge, T. A., & Hulin, C. L. (1993). Job satisfaction as a reflection of disposition: A multiple source casual analysis. Org. Behav. Hum. Deci. Proc. 56, 388-421.
Kwenin, D. O., Muathe, S., & Nzulwa, R. (2013) The Influence of Employee Rewards, Human Resource Policies and Job Satisfaction on the Retention of Employees in Vodafone Ghana Limited. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.12, 2013
Naukrihub, C. (2007). Performance management system (accessed Oct, 2 016).
Nickerson, J. A., & Zenger, T. R. (2008). Envy, comparison costs, and the economic theory of the firm. Strategic Management Journal 29(13): 1429-1449. N.2010-03, Centre for Decision Research and Experimental Economics at the University of Nottingham, Nottingham, U.K.
Nienaber, R., Bussin, M., & Henn, C. (2011). The relationship between personality types and reward preferences. Acta Commercii, 11(2), 1–21.
https://doi.org/10.4102/ac.v11i2.153
Obisi, C. (1996). Personnel management. Freeman Publications, Ibadan, Nigeria.
Olusoji, G., Olashile, B. B., & Akaighe, G. (2016) Effect Of Reward And Compensation On Employee Loyalty And Performance In Asset Management Corporation Of Nigerian (Amcon) International Journal of Management and Development Studies, 2016, 2(2), 49-60.
Oshagbemi, T. (2000). Correlates of pay satisfaction in higher education. The International Journal of .Education Managment. 14(1),31-39.
Osibanjo, A. O., Abiodun, A. J. & Fadugba, A. O. (2012). Executive perception of the impact of flexitime on organisational performance: evidence from the Nigeria Private Sector, International Journal of Applied Behavioural Economics, IJABE, 1(3), 16-27.
Patnaik, B. C. M., & Padhi, P. C. (2012) compensation management: a theoretical preview TRANS Asian Journal of Marketing & Management Research Vol.1 Issue 1, September 2012, ISSN (online) TRANS Asian Research Journals http://www.tarj.in.
Pfeffer, J. (1998), The Human Equation: Building Profits By Putting People First. Harvard Business School Press: Boston, USA.
Quartey, S. H., & Attiogbe, E. J. (2013). Is there a link between compensation and job performance in the Ghana Police? African Journal of Business Management, 7(44), 4398-4406
Samad, S. (2007). Assessing the effects of job satisfaction and psychological contract on organizational commitment among employees in Malaysian SMEs. The 4th SMES in A Global Economy Conference
Sanders, W. G., & Carpenter, M. A. (1998). Internationalization and firm governance: The role of CEO compensation, top team composition, and board structure. Academy of Management Journal, 41: 158-178.
Schlechter, A., Thompson, N., & Bussin, M. (2015). Attractiveness of non-financial rewards for prospective knowledge workers. Employee Relations, 37(3), 274–295. http://dx.doi.org/10.1108/ER-06-2014-0077.
Schuler, R., & Jackson, S. (1987). Linking competitive strategies and human resource management practices. Academy of Management Executive, 1(3), pp. 207-219.
Khalid, K., Salim, H. M. & Loke, S. P. (2011). The impact of rewards and motivation on job satisfaction in water utility industry. International Conference on Financial Management and Economics, 11, pp. 35-41.
Korir, I., & Kipkebut, D. (2016). The Effect of Reward Management on Employees Commitment in the Universities in Nakuru County-Kenya. Journal of Human Resource Management. Vol. 4, No. 4, 2016, pp. 37-48. doi: 10.11648/j.jhrm.20160404.12.
Ludlow, A., & Farrell, A. (2010). Making total rewards work. Strategic HR Review, 9(6), 49.
Pfeffer, J. (1998), The Human Equation: Building Profits by Putting People First, Harvard
Business School, Boston, MA.
Tremblay, M., Cote, J., & Balkin, D.B. (2003). “Explaining sales pay strategy using agency,
transaction cost and resource dependence theories”, The Journal of Management Studies,
Werner, A. (2001). Motivation in human resource management, Cape Town: Oxford University Press.
Werner, S., & Tosi, H. L. (1995). Other people's money: The effect of ownership on compensation strategy and managerial pay. Academy of Management Journal, 38: 1672-1691.
Westphal, J. D. (1999). Collaboration in the boardroom: Behavioral and performance consequences of CEO-board social ties. Academy of Management Journal, 42: 7-24.
Westphal, J. D., & Zajac, E. J. (1995). Who shall govern? CEO/board power, demographic
similarity, and new director selection. Administrative Science Quarterly, 40:60-83.
Worldat Work. (2006), Total Rewards Concept and Model. Available at www.worldatwork.org.
Yamoah, E. E. (2013). Relationship between compensation and employee productivity, Singaporean Journal of Business Economics, and Management Studies, 2(1), 110-114
Yanadori, Y., Sturman, M. C., Milkovich, G. T. & Marler, J. H. (2002). "Organizational Pay Mix: The Implications of Various Theoretical Perspectives for the Conceptualization and Measurement of Individual Pay Components", CAHRS Working Paper, vol. 2, no. Ithaca, NY: Cornell University.
Zingheim, P. K., & Schuster, J. R. (2003). Competencies and rewards: substance or just style? Compensation & Benefits Review, 35(5), 40–44.
http://dx.doi.org/10.1177/0886368703256932

In-Text Citation: (Baffoe & Bediako, 2021)
To Cite this Article: Baffoe, R. S., & -Bediako, K. A. (2021). An Exploratory Study of Compensation Mix in Pay Administration System: The Ghanaian Situation. International Journal of Academic Research in Business and Social Sciences, 11(12), 2247–2258.