1.1 Background of the Study
Employees are the organization’s key resource and the success or failure of organizations center on the ability of the employers to attract, retain, and reward appropriately talented and competent employees. Employees’ willingness to stay on the job largely depends on compensation packages of the organization (Armstrong, M., 2003). In an attempt to ensure employees optimal performance and retention, organizations need to consider a variety of appropriate ways to reward the employees to get the desired results (Falola, Ibidunni, Olokundun, 2014).
In both developed and most developing countries, there have been several job satisfaction studies of which very few of them have been focused on the job satisfaction and retention of the university teachers in relation to their compensation packages. Organizations that have goals to achieve would require satisfied and happy staff in her workforce (Oshagbemi T., 2000).
Importantly is the fact that for any university to take off and achieve its strategic goals would strongly depend on her capacity to attract, retain and maintain competent and satisfied staff into its employment.
Compensation packages entail some basic features that tend to make employees satisfies on their job amongst which includes salaries, bonuses, incentives, allowances, promotion, recognition (Werner, 2001 and Martineau, 2006). All these have significant impact on employees’ performance (Yamoah E. E., 2013).
However, to avoid wrong perception and controversy evolving the employees, compensation system must be clearly communicated to employees with job measurement which will drive the much needed performance in the employees (Hartman D., 2014). The above raises concern regarding the attitudes of educators towards their work and their levels of job satisfaction or dissatisfaction (Steyn G. M., 1999).
Compensations are considered one of the most important factors that encourage workers to put forth great efforts and work more efficiently. Compensations and reward system direct workers capabilities into more efficiency in their work in an attempt to achieve the institution’s goals (Gana and Bababe, 2011). In addition, the absence of the suitable compensations may negatively affect the hardworking employee’s performance; it may also weaken their productivity at work which decreases the chances of attaining the promising goals of the institution (Palmer, 2012). It is important that travel and tourism organizations should provide compensations to motivate their employees. Such compensations are a significant factor in encouraging employees and increasing their enthusiasm at work which results in improving the general performance and increasing the productivity. Compensations, also, help in attaining job satisfaction which increases the interaction between the employee and the organization.
Compensation packages entail some basic features that tend to make employees satisfied on their job amongst which includes salaries, bonuses, incentives, allowances, promotion, recognition (Werner A., 2001, Martineau, Lehman, Matwa, Kathyola, 2006). All these have significant impact on employees’ performance (Yamoah E. E., 2013). A financial reward system for employees where some or all of their monetary compensation is related to how their performance is assessed relative to stated criteria. Performance related pay can be used in a business context for how an individual, a team or the entire company performs during a given time frame.
Compensation is output and the benefit that employee receive in the form of pay, wages and also same rewards like monetary exchange for the employee’s to increases the Performance (Holt,1993).Compensation is the segment of transition between the employee and the owner that the outcomes employee contract. As the prospective of employee pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. From the employee prospective one of the most important part of cash flow. Compensation is mostly equal to half of cash flow of the companies. But in the service sector it is more than half. It is the major to attract the employee and motivate employee to increases the performance (Ivancevich and Glueck, 1989). It is argument that mostly individuals that getting higher education they are not satisfied their jobs and their turnover is more than so that organizations are overcome to that problem design the compensation plain to retain the employees as well plays more to attract, retain and motivate to give man power. Different universities objectives make their benefits and compensation packages to attract as possible (HRM Process BPR term report June, 2009) mostly employees believe their abilities that knows that if they perform well pay can be increasing.
In other words you can say that compensation and rewards effects the employee decision making to stay their organizations and also accepted the responsibility (Bratian & Gold 1995). The value employee training as a compensation and benefits packages has increases the performance human resource outcomes normally increases the performance, satisfaction and productivity also stay there and attracting. The perception of employee about the organization benefits policy. If pay is tied to employee performance good quality and quantity of work done (Ivancevch and Glueck, 1989).Organization pay directly influences to employee voluntary turnover employee compare to their pay available in other organization (Heneman and Schwab, 1987).People stay or leave the company more reasons they satisfied with their job promotional opportunity and work environment (Mitchell and Holton, 1993).
1.1.1 Historical Background of the case Study
Nekede is a town in southeastern Nigeria. It is located near the city of Owerri. This is an Igbo speaking town that is made up of three distinct towns, viz Umuoma, Umualum, and Umudibia.
The Nekede zoo is located in Owerri West Local Government Area of the state. The zoological garden established in 1976 under the state Ministry of Agriculture as an animal park, the Nekede Zoological Garden which sits on 10 hectares of reserved forest, houses a variety of animals, including lions, chimpanzees, monkeys, pythons, ostriches and crocodiles, among other animals.
Although the zoo had suffered obvious neglect under successive administrations in the state, it has managed to exist until the current administration of Rochas Okorocha intervened by providing funds for the upgrade of existing infrastructure and the upkeep of the animals. The zoo serves as a centre for recreation, entertainment and education across the five Southeast states and beyond. Families, schools and other professional bodies throng there to enjoy the beauty of nature and carry out academic research in nature and wildlife. With a massive land mass of rain forest, which has been guided strictly against any form of encroachment, the Nekede Zoological Gardens has a natural appeal which holds visitors spellbound, coupled with the nerve calming chirrup from more than 1,000 species of birds that nest on the huge trees in the rich forest.
Another interesting feature of the garden is its proximity to Owerri, the Imo State capital. This proximity provides a sharp contrast and a soothing escape from the noise and pollution of the city.
1.2 Statement of the Problem
The tourism industry is often considered one that requires long work hours and lower than average pay (Powell, 2009; Thrane, 2008)). Yet, finding and retaining quality employees in the industry is of utmost importance.
Kusluvan and Kusluvan (2000) indicated that tourism employees leave the industry due to low job satisfaction, poor working conditions, and a lack of motivation. Regardless of the economic state, of when recruiting and retaining good employees is challenging (Deery, 2002).
Compensation is usually narrowed to cash and as a result, employers only have a tunneled vision when it comes to the issues of compensation for their employees. Other aspects of compensation which makes up the total compensation package for the employee are not given much attention. Employees themselves fail to recognize the fact that their compensation is a package and not only related to cash. The byproduct of the above understanding of compensation is that it is poorly managed and most of the time performance is affected adversely. Therefore the problem the researcher intends to investigate into is to understand what contributes to total compensation and how it can be better managed and linked to employee performance.
Following, closely to the aforementioned problem are the issues compensation of employee in tourism organization.
In this present study therefore, the researcher focused on the problem compensation and hopes to suggest measures on how employees can be adequately compensated and motivated perform better in tourism organization.
1.3 Objective of the Study
The major objective of this study is to determine the impact of compensation on employee tourism organization. Other Specific Objectives are:
1. Examine effect of concrete incentives on employees in tourism organizations.
2. Examine the effect of incentives packages on the employees’ performance.
3. Evaluate the impact of Salary and bonus on employees’ performance.
4. To identify the compensation packages available at tourism organizations.
5. To investigate the problems and challenges associated with compensation management at tourism organizations
1.4 Research Questions
The research question for this study is shown below:
1. What is relationship between incentives packages and employees’ performance in tourism organization?
2. What compensation packages are available at tourism organization?
3. What are the problems associated with compensation management at tourism organization?
1.5 Statement of Hypothesis
The study aims to test the following three hypotheses:
H0: There is no significance relationship between compensation and employees’ performance in tourism destinations.
Hi: There is significance relationship between compensation and employees’ performance in tourism destinations.
H0: There is no significance relationship between incentive and employees’ performance in tourism destinations.
Hi: There is significance relationship between incentive and employees’ performance in tourism destinations.
1.6 Scope of the Study
The scope of this study is centered on analyzing of compensation in tourism organization. This study are going to focus on Nekede Zoo, in Owerri and cover all the study that manage the tourism organization will be sampled in the collection of data for the study. Furthermore, the study focuses only on the effect of compensation in employee’s performance. It is designed to cover the public sector. The research is of the belief that this dispersal will capture the real essence of this work. The study will cover a fair balance of male and female employees of the tourism organization and cut across the entire staff of the organization, thus from junior staff to management staff.
1.7 Significance of the Study
The researcher hopes that the finding and suggestions of this study would enlarge effective management of compensation package in tourism organizations for the achieving organizational goals.
1. The study will enable manager of human resource of tourism organizations boost the employee work input and productivity.
2. It will also be of benefit for policy makers in various forms of business organization.
3. It will be of immense guide to future researchers who intends to exploit and understand further concepts of compensation in tourism organizations.
1.8 Definition of Terms
Incentive: An incentive is a contingent motivator. Traditional incentives are extrinsic motivators which reward actions to yield a desired outcome. The effectiveness of traditional incentives has changed as the needs of Western society have evolved. While the traditional incentive model is effective when there is a defined procedure and goal for a task, Western society started to require a higher volume of critical thinkers, so the traditional model became less effective (Pink, 2009).
Compensation: Compensation is the total cash and non-cash payments that you give to an employee in exchange for the work they do for your business. It is typically one of the biggest expenses for businesses with employees. Compensation is more than an employee’s regular paid wages.
Tourism: Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. Tourism may be international, or within the traveller’s country. The World Tourism Organization defines tourism more generally, in terms which go “beyond the common perception of tourism as being limited to holiday activity only”, as people “traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure and not less than 24 hours, business and other purposes”.
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