Compensation Management and Employee Performance of Beverages Manufacturing Firms in Anambra State, Nigeria

Employees can be very committed to the work assigned to them in the beverage manufacturing firms in Anambra State. In order to exist and grow, beverage manufacturing firms need to fortify their internal management effectively. The purpose of this study is to investigate the relationship between compensation management and employee performance in beverage manufacturing firms in Anambra State. Compensation management is a powerful means of focusing attention within organizations. Beverage manufacturing firms in Anambra State have been in a weak position which led them to have difficulty in achieving organizational goals. Objectives of the study are to examine the relationship between equity-based compensation and employee performance, investigate the relationship between skill based compensation and employee performance. The study was anchored on Expectancy theory. The population of the study was 475, total enumeration method was used due to the population was manageable. Survey research design was adopted. To justify the result Pearson’s product moment correlation coefficient was used to measure the relationship between equity-based compensation and skill-based compensation. The study used primary data sourced from the respondents, using instrument designed on a five-point Likert scale. The study adopted content validity test and the reliability of instrument used was test-retest and Cronbach‘s Alpha values of 0.722and 0.710 which was at the acceptance threshold. Hypotheses were tested with Pearson product-moment correlation to determine the relationship between compensation management and employee performance in beverage manufacturing firms in Anambra State, Nigeria. The result showed that there is a significant relationship between skillbased compensation and employee performance with (r = 0.847, at p<0.05). There is a significant relationship between equity based compensation and employee performance with (r = 0.813, at p<0.05). The study concluded that compensation management had a positive significance relationship with employee performance in selected beverage manufacturing firms in Anambra State, Nigeria. The study therefore recommended among others that every organization should have skill -based compensation plan, equity-based compensation plan so that it will help the employees to work better.