CHAPTER ONE
INTRODUCTION
Remuneration refers to the mode of compensating the workers exerting their energy or spending their time in accomplishing their organizations objectives. Remuneration can be in monetary terms or in form of services. A monetary term is of course in form of wages and salaries and part of fringe benefits like housing and transportation allowances. Compensation package has three major components which are wages and salaries, fringe benefits and the other one is incentive schemes on employees atitude. Remuneration which comes in form of services includes recreational services, canteen services and medical services. Remuneration has a significant impact on workers attitude and performance in organization because it is the most effective motivational technique. Good remuneration improves productivity, while poor remuneration affects productivity adversely. However, the general problem of monetary remuneration is that they are expert in the short run but not necessarily cost effect. On the other hand, monetary remuneration can motivate workers depending on his or her needs for money on employees atitude.
Individual behaviour and consequently performance in an organization is related to remuneration. This is because people come to work in order to excel or to succeed in competitive situation. As such, individuals with high needs for achievement have intense desire for success and equally intense fear of failure. As individuals, they like to see challenges set moderately difficult talk (but not impossible goal) for themselves, take realistic approach to risk, prefer to assume personal responsibilities to get the job done like specific and prompt feedback on how they are performing and likeness to work for long hours (Alfred, 1987) on employees atitude.
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