ASSESSMENT OF COMPENSATION PRACTICES AND

EMPLOYEES’ ATTITUDE TOWARDS ORGANIZATION GOAL

(IN CASE OF HAWASSA UNIVERSITY AWADA BUSINESS AND
ECONOMICS COLLEGE, ADMINISTRATIVE STAFF)

HAWASSA UNIVERSITY AWADA BUSINESS AND ECONOMICS

COLLEGE DEPARTMENT OF MANAGEMENT
RESEARCH REPORT SUBMITTED IN PARTIAL
FULFILLMENT OF B.A DEGREE IN MANAGEMENT

BY: RAHEL ABIYU

ADVISOR: TAREKEGN B. (MA)

MARCH, 2017
HAWASSA; ETHIOPIA
 ACKNOWLEDGEMENT

First and for most I would like to thank the almighty GOD for giving me strength, patience and
the grace.
Second, I also would like to express respectfully, my deepest gratitude and appreciation to my
advisor Tarekegn B. (M.A) for her valuable and constrictive comments and correction that
helped me substantially in preparing my senior essay.
My deepest and heartfelt gratitude also goes to my family and friends for their unreserved
financial and moral support.
Finally, I would like to thank Hawassa University Awada Business and Economics College
administrative staff and human resource manager for their cooperation and assistant on
delivering me with the necessary information for the research.
 ABSTRACT

This study was conducted on Assessment of Compensation Practice and employees Attitude in
Hawassa University Awada Business and Economics College Administrative staff. The source of
data were both primary and secondary sources and it used open and closed ended
questionnaires and structured interview as a method of data collection. The study was employing
Simple Random sampling technique to select the sample respondents.
The study tried to assess the compensation practice and employees attitude in the college and
come up with practical findings. The survey result revealed that the majority of the compensation
delivery was not offered in a fair and transparent way and the incentives and fringe benefits are
equal with other organizations. Most of the organization employees have an experienced 5 and
above years. The majority of the respondents said that the compensation rate were poor. The
result shows that majority of the respondents were received their compensation on a regular
basis. The finding of the study revealed that the majority of (46%) of the respondents were
agreeing that the current compensation package motivates to be productive in their work
performance. Based on the findings of the study the recommendations were; Hence, most of the
Hawassa University Awada Business and Economics college administrative staffs are male the
concerned body should increase the number of female staffs because females are half part of the
population. Compensation rate was poor so that the College should improve its compensation
for the employees. Periodic analysis of compensation package would be necessary to enable
employees various incentives and fringe benefits since the distributions was not offered in a fair
and transparent way and to minimize employee turnover and conflicts the College should
improve its fringe benefit delivery system.

Key Words: Assessment, compensation package, practice, Hawassa University, Administrative

staff
 Table of contents
Titles Page No
Table of contents -----------------------------------------------------------------------
Chapter one------------------------------------------------------------------------------
1. Introduction---------------------------------------------------------------------
1.1. Background of the study---------------------------------------------
1.2. Background of the organization
1.3. Statement of the problem--------------------------------------------
1.4. Objectives of the study-----------------------------------------------
1.4.1. General objective ------------------------------------------------
1.4.2. Specific objective------------------------------------------------
1.5. Significance of the study---------------------------------------------
1.6. Scope of the study ………………………………….
1.7. Limitation of the study-----------------------------------------------
1.8. Organization of the study--------------------------------------------
Chapter Two-----------------------------------------------------------------------------
Literature Review--------------------------------------------------------------
1.9. Introduction------------------------------------------------------------
1.10. Definition of compensation------------------------------------------
1.11. Objectives of compensation------------------------------------------
1.12. Factors affecting compensation--------------------------------------
1.13. Methods of compensation-------------------------------- ------------
1.13.1. Base compensation –salary and wage---------------------------
1.13.2. Incentives -----------------------------------------------------------
1.13.3. Benefits -------------------------------------------------------------
Chapter Three-----------------------------------------------------------------------------
Research Methodology---------------------------------------------------------------------
1.14. Source of Data----------------------------------------------------------
1.14.1. Primary source of Data--------------------------------------------
1.14.2. Secondary Data Source--------------------------------------------
1.15. Sampling procedure ----------------------------------------------------
1.15.1. Target Population---------------------------------------------------
1.15.2. Sampling Methods and sampling size ---------------------------
1.16. Data collection tools and data analysis-------------------------------
1.16.1. Data collection tools------------------------------------------------
Data analysis--------------------------------------------------------------------------------------
Chapter Four-------------------------------------------------------------------------------
1. Data analysis and interpretation------------------------------------------------
1.1. Demographic characteristics of the respondent---------------------
1.2. Compensation analysis and interpretation---------------------------

Chapter Five--------------------------------------------------------------------------------
2. Conclusion and Recommendation----------------------------------------------
2.1. Conclusion----------------------------------------------------------------
2.2. Recommendation---------------------------------------------------------
Reference------------------------------------------------------------------------------------
 List of table

Table Page
Table1 Gender of the respondent---------------------------------------------------------------
Table 2 Educational level of the respondent----------------------------------------------
Table 3 Respondent year of service --------------------------------------------------------
Table 4 Compensation practice of the College -----------------------------------------
Table 5 Rate of compensation practice of the College ----------------------------------
Table 6 Compensation and salary receipt in a regular basis ------------------------------
Table 7 Current compensation package of the College ----------------------------------
Table 8 various incentives and fringe benefits offered -------------------------------------
Table 9 Comparison of compensation with work performance-----------------------------
Table 10 Comparison of the College compensation with other organizations-----------
 Chapter one
Introduction
1.1. Background of the study
Most of the time in any organization uses of resource wisely is very important things. The
resources that available in the organization are monetary, Physical or material and human
resource. From this resource the most useful is human resource because the other resources are
managed by human resource manager.
It is concerned with any activity relating to human element and relation in the organization.
(Mamoria, 1980)
This study is interested to assess the compensation practice and employees attitude in Hawassa
University Awada Business and Economics College in case of administration staff.
Compensation can be either direct or indirect that gives for employees in the organization.
Compensation refers to every type of rewards that individual receive in the form of wage,
salaries bonus, and commission. Indirect compensation includes all financial rewarded that are
not included in direct compensation. (Wayne and Robert 1990).
Management unit and employees relation is one important area to be observed because people
have different reason for working and the most appropriate compensation package depend on
these reasons. In order to insure that worker with proper skill and experience are available at all
levels constant and concerted efforts are needed.
All would agree that effective compensation administration is desirable in efforts to increase
employee satisfaction. And satisfaction with pay is important because as many resources have
found. If pay satisfaction is low job satisfaction is low. As consequence absenteeism and turn
over will be higher and more costly. (Ivancevich and Glueck, 1992)
An effective compensation plan enables firms to the firm’s uniqueness as well as its
environment. (Gomez-Mejia et al, 1995)
Compensation is inhuman resource management function that do it’s with every type of reward
individual receive in exchange for performing organizational tasks. It is the major cost of doing
business for many organizations at start of 21st century. Robert and John, 2003)
1.2 Background of the organization
Anew campus constructed by Hawassa university In Yirgalem town of south Ethiopia people
state with 55 million Birr was on November 6, 2005. The new campus called Awada campus is
part of the Expansion work to increase the involvement, capacity of the University. The campus
constructed on 65 hectares land has dominations with a capacity to give service to 800 students
and class rooms, among others when the campus was established .It was the capacity to give first
degree level training to 580 students in accounting ,management,economics and cooperative
fields of study ,among others .construction of offices like cafeteria, dining hall and library,
among others launched with 38 million Birr will be finalized in the near future. Under this
construction of the campus helps to speed up development and create jobs. (HUAC 2007.blog
spot.com)
1.3 Statement of problem
Today in the age of technology people are still the most important resource to the organization.
Organizations are established with definite objective. When we say this without the uses of
resource achieving this objective is unexpected .Organizations which is most successful are due
to their best compensation program and policies. But some organization faces different problems
which affect the compensation. According to Ivancvich, compensation policy and programs is
motivator of performance. In order to full fill the gap between workers and managers of the
organization updating compensation policy and program are useful. If compensation programs
are not given regularly to employees, it may decrease the employee’s job satisfaction in the
organization. In addition to these problems, lack of this program may cause more rates of
grievance, absenteeism, and turn over, lack of accountability and dishonesty. So, the researcher
was interested to assess the compensation practice and employees attitude in the Hawassa
University Awada Business and Economics College in case of administration staff. The study
intends to assess the compensation problem in the organization.
Research Questions
1. What is the overall perception of employees towards the compensation package of the
College?
2. Is the compensation package designed in a way that supports the attainment of the college
goals and objectives?
3. What are the major problems that are faced by the college in its compensation practice as
perceived by employ objective?
4. What are the compensation packages of college a significant role in employee’s retention as
perceived by them?
1.3. Objective
1.3.1. General objectives
The main objective of the study is to assess the compensation practice and employees attitude in
Hawassa University Awada College in the case of administrative staff.

1.3.2. Specific objective

The specific objective of this study is
 To identify the role of compensation package for the attainment of organizational
goals and objectives.
 To identify the major problems in the compensation package of the college as
perceived by employees.
 To find out if the compensation package of the college has significant role in
motivating employees as perceived by them.
 To find out if the compensation package of college has a significant role in employee
retention as perceived by them.
1.4. Significance of the study
The result of this study would help other researchers as starting point for making further research
on the same area. And this study helps the concerned management to devise the appropriate
remuneration policies that were best for the organization as well as employees satisfaction.
1.5. Scope of the study
In general terms this study is contains to identify the assessment of compensation practice and
employees attitude in case of hawassa university awada business and economics colleges .The
college has 581 employees from administrative staff and in academic staff ,however my focus
area in administrative staff .The study how the college encourage its employee in doing so the
researcher tried to see the assessment of compensation practice in the college by considering the
collective agreements of the college and the working procedures in the college human resource
department .The study tried to assess the up to date compensation practice and employees
attitude the college applies ,more over the researcher tried to see clear and precise inquiries .In
donning so he tried to investigate the problem with concerned topics. The researcher
exhaustively uses his effort and time to acquire enough genuine and relevant data.

1.6. Organization of the paper

The study contains in to five chapters the first chapter deals with the problems and its approach,
the second chapter deals with literature review, the third methodology, fourth chapter deals with
data analysis and interpretation, the fifth chapter describes conclusion and recommendation.
 Chapter Two
Literature review
2.1 Introduction
One of the most difficult functions of personal management is that of determining rate of
monetary compensation. Not only it is one of the most complex duties, but it is also one of the
most significant to both the organization and the employee to the organization. (Flippo, 1988).
As far as the organization is concerned employee compensations programs are designed to do
three things.
1. To attract capable employees to the organization
2. To motivate them towards superior performance
3. To retains their services over on extended period of time
A number of persons are involved in making compensation decisions. Tops management makes
the decisions that determine the totals amount of the budget that goes to pay. The pay form to be
used (time versus incentive pay) and pay policies. (Ivancevich and Glueck, 1989).
From the employee’s point of view, pay is necessity in life. The compensation received from
work is one of the chief reasons people seek employment. (Ivancerich and Glueck, 1989).

2.2. Definition of compensation

According to different authors compensation have different meaning. Some of these are:
- Compensation is an important factors affecting how and why people choose to work at
one organization over others. Employers must be reasonably competitive with several
types of compensation to attract and retain competent employees. (Mathis and Jackson,
2000).
- Compensation is parts of transaction between an employee and employer that results in
an employment contract. From the employees point of view pay is necessity in life. The
compensation received from work is one of chief reasons people see their family’s needs.
Compensation may be the only (or certainly a major) reasons why they work others find
compensation contributing factors to the only (or certainly a major). Reasons why they
 work. Others find compensation a contributing factor to their efforts. What person is paid
indicate his or her wealth to an organization. (Ivancevich and Glueck, 1989)
-Remuneration (compensation) occupies and important place in the life of an employee
his/her standard of living, Status in the society, motivation loyalty and productivity
depend upon the remuneration he/she receives. (Aswathappa, 1999).
- Compensation is one of the most important planning human research management
functions for employer, too compensation often equals 50% of the cash flow of an
organization and for some service organization, it is an ever larger percentages. It may be
the major to try to motivate employees more effective performance .(Ivancevich and
Glueck, 1989)
2.3. Objective of compensation
The objectives of administration are to establish fair and equitable rewards to the
employees, so that they are motivated to do the job in better way for the organization.
Moreover, weather and Davis (1993) listed the following objectives which are sought
effective compensation management

 Acquired qualified personnel

Compensation needs to be high enough to attract applicants. Pay level must respond to the
supply and demand of workers in the labor market since organizations compete for employees.
 Retain current employees
Employees may quit when compensation levels are not competitive, resulting in higher turnover.
 Ensure equity
Compensation management strives for s internal and externals equity. Internal equity requires
that pay be related to the s relative worth of a job so those similar get similar pay. External equity
means paying employees what comparable employees are paid other organization in the labor
market
  Facilitate understanding

Human’s resource specialist, operating managers and employees should easily understand the
compensation management system.

2.4. Factors affecting compensation

1. Supply and demand for employee skills
The firm desires these services and it must pay a price that wills b ring forth the supply which is
controlled by the individual worker or by group of worker s acting in concrete. (Flippo, 1988)
2. Labor union/Organization
In structure of economic relationship the labor union attempts to work primarily on the supply
side. In strike for a higher wage s the employer's demand for labor to meet a market need is
pitted against a supply with held by the unions. Union’s leaders are often very adroit in selecting
the appropriate time to strike as judged by the markets for the employer’s product. To strengthen
their control over the supply or labor, union seek such goals as union or closed shops, regulated
or restricted substitution of capital for labor through technology and control entry into
apprenticeship programs.
(Flippo, 1988)
3. The firms' ability to pay]
If the firm is highly successful, there is little need to pay for more than the s competitive rate
to obtain personnel. If a firm is marginal and cannot afford to pays competitive its employees
will generally leave if for better paying jobs. (Flippo, 1988)
4. Productivity of the firm
A Company cannot pay its workers more than the work given back to the firms through their
productivity. However, if a company does find itself paying more than productivity affords
( because) of security of workers or union power), the company musts either redesign the
jobs, train new workers to increase the supply, automate, go out of business or innovate (Flippo,
1988).

5. Government
The government directly affects compensation through wage control and guidelines, which
prohibit on increase in compensation for certain times and law directed at the establishment of
minimum wage rates, wage and hour regulation and preparation of discrimination directed at
certain groups (Ivancevich and Glueck, 1989)
6. Cost of living
It is useful as a stoppage device in times of inflation when labor is pressed to keep up with the
rise in prices. (Flippo, 1988)
Most of compensation experts believe that pays effects motivation of employee and number of
studies that is pay is tied to performance, that the employee produces a higher quality and
quantity of work. (Ivancevich and Glueck, 1989)
2.5. Methods of compensation
Methods of payment available to companies and organizations are numerous. They vary from
schemes which pay bonus for each unit of production completed to those regardless of output.
Methods are also designed to pay workers individually or group from to people to up hundreds in
a whole department or even the whole company. Gomez-Mejia et al. (1995) classify total
compensation that most to days. Organization provides to their employees into their major
elements as base compensation, incentives and benefits.
Base compensation is the fixed pay an employee revives on a regular basis, either in the form of
salary. For example, a weekly or as an hourly wage the second component of total compensation
incentives program is designed to reward employees for goods performance. These incentives
come in many forms including bonuses and profit, sometimes called indirect compensation. A
benefit encompasses a wide variety of programs (Gomez-Mejia et al., 1995).

These three methods of compensation are s discussed below followed by their effects on
employee behavior in an organization environment.
2.5.1. Base compensation- wage and salary
 The majority of employees are paid for time worked in the form of wage and salaried. Wage
refers to an hourly rate of pay and is then pay basis used moss frequently for production on
maintenance employee. Salary on the other hand refers to a weekly, monthly or yearly rate of
pay. The real difference between wage and salaried status then do not include whether or not
there is an hourly rate, because an hourly whether can always be computed. The difference exist
in the benefits and conditions associated with each status.
The two basic issues related to base compensation are determining the pay level for each
position and established the criteria to be used in pay increment.
According to (Ivancevich and Glueck,1989) pay level is a major strategic choice that top
managers must make whether to adapt high or low or comparable pay-strategy. Managers
may choose high pay level strategy assuming that they will get what they pay for. These
managers believe that paying regularly wages and salaries will attract and hold the best
employees and that is the most effective long range policy. Adequate salary is very important to
motivate employees and reduce turn over, absenteeism and retirement.
At the opposite extreme managers may adapt low-pay strategies. In this case the managers may
choose to pay at the minimum level needed to hire enough this strategy may be used because
this is all the organization can pay the internal or external factors. Such as limited labor, budget
or a forecasted decline in sales and profits.(Ivancevich and Glueck, 1989)

2.5.2. Incentives
Like merit system for pays increment, individual and group incentive pay system are adapted to
enhance employee motivation to perform. While merit systems attempt to motivate by relating
period pays increases to employee performances rating, most incentive pay plans are day-today
earning and automatically to relatively objective indexes of individuals and groups performance.
(Henma et al, 1997).
I. Individual incentive
In individual incentive pays plans, it is individual’s performance that is s measured and
rewarded. This plan very widely however, with respect to performance measure used and the
specific linkage established between performance and pay. (Henman et al, 1997) the most known
individual incentive play includes piece-rate production bonus and commissions.
 a) Piece-rate; - an employee is guaranteed and hourly rate (probably the minimum wage)
for performing an expected minimum output the (standards). For the production over the
standard, the employers pays so much per piece produce (Ivancevich and Glueck 1989)
b) Production bonus; - this system pays an hourly rate. Then a bonus is paid when the
employee exceeds the standard typically 50% of the labor solving, (Henma et al, 1997)
c) Commissions ;-are found among sales people commission are similar to piece rate
plan except that payment is made for sales rather than for production , Some
commission plan resemble production bonus plans that they provide established quota
(Henman et al, 1997)
For incentive plans to work, they must be well designed and administered, it appears that
individual’s incentive plan is likely to be more effective under certain circumstances (Ivancevich
and Glueck, 1989) these are when:
- The task is liked
- The task is not boring
- The superior reinforces and support the system.
- The plan is acceptable to employees and managers and probably includes in the plan
design.
- The incentive is financially sufficient to induce increased output.
- Quality of work is not especially important.
- Most delays in work are under the employee’s control.

II. Group incentives

Piece rate, production bonus, commissions and other s incentive can also be paid s to group of
individuals. This might be done when it is difficult to measure individual output, when
cooperation is needed to complete a task or project and when management fees this is a more
appropriate measure on which to base incentives (Ivancevich and Glueck, 1989)
III. Organization wide incentives'
Any kinds of compensation give to employee based on design plan are crucial to employee and
employer collaboration.
Organization wide incentive plans generally referred to as a gain sharing plan because they
return apportion of the company's cost saving or profit to the workers. According to Henman et
al, 1997) such plans are never the sole sources of employee compensation. Rather they are
adjacent to base compensation plans or to individual or group incentive plans.
a) Cost saving plans One of the oldest costs saving plan is “scanol plan" which dates back to
the 1930s. It relies on committees of employees, union leaders and top managers to
generate and adequate cost-savings ideas.
b. If actual labor costs are lower than expected labor cost over an agreed up on a period
(normally one year), the difference is shared between the workers and the firm based on
established quota (Gomez-Mejia et al, 1995).
b) Profit sharing- more wide spread than cost saving plan in which organization set aside
some percentage of their annual earning for distribution to employees. According to
(Henman et al, 1997) the intent is to promote a sense of partnership and sharing in the
organizations fate and to motivate higher level of performance and lower levels of
turnover.
2.4.3. Benefit
A comprehensive definition of benefits provision by organizations is given by Henman and
others as follows:
Benefits rare the provision of indirect compensation to the employee in forms such as health
and life in assurance, pension plans, pay for time at worked (such as holidays, vocations and
breaks). And family and social welfare benefits and services. (Henman et al, 1997).
According to (Gomez-Mejia et al, 1995) these benefits can be classified as legally required and
voluntary provided benefits.
i) Legally required benefits
The benefits that almost all employers must are social security, workers compensation,
unemployment insurance and unpaid family and medial leaves.
a) Social security -provides income for retires the disabled and survivors of deceased
workers’ pension plans are examples of social security
(In Ethiopia it is not mandatory, only governmental organization provide pension).
b) Worker compensation;-Provide medical care, income continuation and rehabilitation
expanses for people who sustain job related injuries or sickness workers who are injured
in the job. This means that even workers who were are injured for their accidents can
still receive a benefit (Henman et al, 1997)
 c) Unemployment insurance:- provides temporary income people during periods of
involuntary unemployment (Gomez-Majia et al, 1995)
d) unpaid leave ;- employees occasionally need long periods of time of from their job to
take care of their families (care for sick spouse, child or parent), their own health or to
give birth of a child (Henman et al., 1997).
ii) Voluntary benefits
Voluntary provided benefits are these which employees provided without legal
enforcement, in an attempt to increase loyalty of workers.
According to Ivansvich and Glueck, 1989) there are many differences in employer’s
practices regarding these benefits.
a) Payment For time not worked; - historically organizations paid employees only for the
time that they actually spent on the job over the years however; payment for a certain
amount of time away framework has become common.

b) Retirement benefits;-pensions provide income after retirement and until death based on
the employee's years of work and direct pay. In addition to pensions, most employers
offer some form of health insurance to retirees.

c) Employee services;- consists cluster of tax proffered services that employers provide to
improve the quality of their employees work or personal life. Some of services that
employer may provide include: education sun subsidies subsidized food services, social
and recreational opportunities transportation to and from work, housing and clothing
reimbursement.
 Chapter Three
Methodology
3.1. Source of data
3.1.1. Primary data source
In this study primary data were interviewed with human resource manager and questionnaires
were employed to selected administrative staff members.
3.2.1. Secondary data source
The main source of secondary data was the review of books, published and unpublished
documents were used as secondary source for the review of literature.
3.2. Sampling procedure
3.2.1. Target population
The study was conducted in Hawassa University awada business and Economics College
Particularly focused on administrative staff. The total employees in these offices were 581.
3.2.1. Sampling methods and sample size
Due to time, cost and other constraints the study considered 10% of the total number of
employees in administrative office in Hawassa University awada business and Economics
College which accounts total number of 58 staff members. However, only 50 respondents. The
study was used simple random sampling method, by using lottery methods to select the sample
respondents.
3.3. Data collection tools and data analysis Methods
3.3.1. Data collection tools
The study was employed primary and secondary data collection tools. From the primary
data collection tools the following were used.
1. Questionnaire
One of the data collection method used in this research was structured questionnaire and the
questions were designed in multiple alternatives some were yes or no and the rest were an open
ended questions. The researcher distributed 58 questionnaires to the administration staff of the
organization but only 50 questionnaires were collected. Because the respondents did not give the
appropriate answer in the given paper and there was some default. The open ended
questionnaires were not completed by the respondents even though the researcher tried his best
like qualitative interpretations.

2. Interview
Structured and semi structured interview were also designed for the purpose of gathering and
assessing opinion from human resource manager.

3.3.2. Data analysis

The related item of questionnaires were grouped, presented and discussed independently by
applying qualitative and quantitative method that were by percentage and tabulation.
 Chapter four
Data Analysis and Interpretation
The analysis and discussion relates detail investigation of theoretical and practical part of
compensation practice and employee’s attitude in Hawassa University Awada Business and
Economics College, the researcher distributed 58 questioners to the administration staff of the
organization but only 50 questionnaires were returned and used for the research analysis.
o Demographic characteristics of respondents
Before starting the details analysis it is important to discuss some demographic or personal
characteristics of respondents involved in the survey.
The variables conducted relevant to the study were educational background and year of service.
Table 1: Gender of the respondents
Sex Number of respondent Percentage (%)
Male 33 66
Female 17 44
Total 50 100
Source: own survey, 2009 E.C
As shown in the above table 1, 33 (66%) of the respondent were male and 17 (44 %) of the
respondents were female in the administrative staff of Hawassa University Awada Business and
Economics College. The majority of the staff members were male.
Table 2 Educational level of the respondents
No Item Respondent
No %
1 Educational level
10 or 12 0
completed
74
First Degree (BA or 37
B.Sc.)
20
College Diploma 10
6
Master’s degree and 3
above
 Total 50 100

Source: Own survey, 2009 E.C

As shown in the above table 2, 37 (74%) of the respondent were first degree holders, 10(20%)
were college diploma holders, 3(6%) were Master’s Degree holders. The majority of the
administrative staff members were Bachelor degree hold

Table 3 Respondents year of service

No Item Respondent
No %
1 Year of service in the
College
0-2 years 6 12
2-4 years 15 30
5 and Above 29 58
Total 50 100

Source: Own survey, 2009 E.C

As shown in the above table 3 from the total respondents 44 (58%) have been Served in the
College for 2-4years, 15(30%) have been served in the College 5 and above 10 years. Majority of
the respondents were served the College 5 and above.

o Compensation analysis and interpretation

Table 4. Compensation practice of the College

No Item Respondent
No %
1 Does your College give incentives and fringe benefits
 for good performance?
Yes 37 74
No 13 26
Total 50 100

Source: Own survey, 2009 E.C

As shown from the above table 4 from the total 37 (74%) of respondents were received
compensation for their good performance from the College and 13 (26%) the respondents did not
receive compensation for their good performance. Besides to this, those Respondents who got
compensation were also asked the kinds of compensation they are given and most of them
replied that the organization is offering promotion, bonus and free education opportunity for
some administrative staff that perform better.
Table 5. Rate of compensation practice in the university
No Item Respondent
No %
1 How do you rate the overall compensation practice of
the College?
very sufficient 6 12
sufficient 6 12
insufficient 17 34
poor 21 42
Total 50 100

Source: Own survey, 2009 E.C

As shown in the above table 5, 6(12%) of the respondents said that the compensation rate were
very sufficient and sufficient respectively and 17 (34%) of the respondents rate that the
compensation is insufficient and 21 (42%) of the respondents rate that the compensation were
poor. The majority of the respondents said that the compensation rate were other.

Table 6 Compensation and salary receipt in regular basis

No Item Respondent
No %
1 Do you receive your compensation (salary, overtime
payment, position allowance etc.) on a regular basis
from the College?
Yes 35 70
No 15 30

Total 50 100

Source: Own survey, 2009 E.C

As indicated in the above table 6, 35 (70%) of the respondents were received their compensation
on a regular basis and 15 (30%) of the respondents were not receive their compensation on a
regular basis. According to the respondents response due to demotivation, lack of unity and
negative attitude they did not get their compensation on a regular basis. Based on the respondents
opinion the above problem was solved when there is strict rules and regulations should be
implemented as well as calling for meeting and awareness creation.
Table 7 current compensation packages of the College and its contribution to work
performance of employees
No Item Respondent
No %
1 In your opinion, do you think that the current
compensation packages of the College
motivate employees to be productive?
Strongly agree
Neutral 10 20
Agree 4 8
Disagree 23 46
Strongly disagree 11 22
Total 2 4
50 100
 Source: Own survey, 2009 E.C
As shown in Table 7 Above 46% of the respondents were agreeing that the current
Compensation package motivates to be productive and 22% of the respondents were not agreeing
on the current compensation to be productive. While 8% of the respondents were neutral for the
current compensation package.

Table 8 various incentives and fringe benefits offered

No Item Respondent
No %
1 Do you think that the various incentives and fringe
benefits are offered in a fair and transparent way for
all employees?
Yes 17 34
No 33 66
Total 50 100

Source: Source: Own survey, 2009 E.C

As shown in Table 8, 33 (66%) of the respondents were replied or said that the various incentives
and fringe benefits were not offered in fair and transparent way. The remaining 17 (34%) of the
respondents said that it’s fair and transparent. The majority of the respondents said that
incentives and fringe benefits did not offer in a fair and transparent way due to beaurocray,
negligibility from heads and relatives give more priority.
Table 9 comparison of compensation with work performance

No Item Respondent
No %
1 How do you rate the compensation you
receive in comparison to you contribution in
the work you perform?

It is equal 23 46
It is greater 4 8
 It is less 23 46
Total 50 100
Source: Own survey, 2009 E.C
As indicated in table 9, 23(46%) of the respondents said that the compensation received and
work performance contribution were equal and less respectively. The remaining 4(8%) of the
respondents said that it is greater. Equal numbers of the respondents said that compensation
received in comparison with work contribution is equal and less. This may be due to top level
staff are near to perdiem and others incentive more than the lower staff.
Table 10 Comparison of the College compensation with other organization
compensation

Item Respondent
No %
How do you compare your organization compensation
package with other organization?
Equal 27 54
Greater 6 12
Less 17 34

Total 50 100

From the above table 10, 27 (54%) of the respondents were said that the compensation package
of the College is equal with others organizations compensation. 17 (34%) of the respondents said
that the compensation package of the College is less than others organizations compensation.
The remaining 6 (12%) stated that it is greater than other organizations compensation. The
majority of the respondents were said that the compensation package of the College is equal with
others organizations compensation.
 Chapter Five

Conclusion and Recommendation

5.1. Conclusion
Based on the findings of the study the following conclusion were made

 Most of the Hawassa University Awada Business and Economics College administrative
staff employees were male.
 Most of the Hawassa University Awada Business and Economics College administrative
employees are degree holders.
 Most of the organization employees have an experienced 5 years.
 The majority of the respondents said that the compensation rate were poor.
 Majority or 35(70%) of the respondents were received their compensation on a regular
basis
 Majority of 23(46%) of the respondents were agreeing that the current compensation
package motivates to be productive in their work performance.
  Most of or 33 (66%) of the respondents were replied or said that the various incentives
and fringe benefits were not offered in fair and transparent way due to various reasons
like demotivation of higher position holders and lack of ethics.
 The majority of or 23(46%) of the respondents said that the compensation received and
work performance contribution were equal and less respectively. The remaining 4(8%)
of the respondents said that it is greater. This may be due to top level staff are near to
perdiem and others incentive more than the lower staff.
 The majority of 27 (54%) of the respondents were said that the compensation package of
the College is equal with others organizations compensation.

5.2. Recommendation

Based on the findings above and conclusion of the study, the researcher forwards the following
suggestions and recommendations for further investigation:

a. Hence, most of the Hawassa University Awada Business and Economics College
administrative staffs are male the concerned body should increase the number of
female staffs because females are half part of the population.
b. Compensation rate was poor so that the College should improve its compensation
for the employees.
c. Periodic analysis of compensation package would be necessary to enable
employees various incentives and fringe benefits since the distributions was not
offered in a fair and transparent way and to minimize employee turnover and
conflicts the College should improve its fringe benefit delivery system.
d. The organization/College should give compensation to its employee’s
performance that motivates employees.
Reference
 Aswathapp K. (1999) Human Resource and Personnel Management, 2ndedition, New
Delhi, Tata Mc Grow- Hill publishing company Ltd.
 Flippo, Edwin B. (1988) Personnel Management, 5th edition, Singapore, Kingkong
printing Co.Pte.Ltd.
 Gomez- Mejia, Luis R., Balkin, Davied B.and Cardy, Robert L.(1995) Managing
Human Resource, 4th Edition, New Delhi(India), Prentice-Hall India Pvt.Ltd. Company.
 Henyman, Hurbert G., Schwab, Donald P., Fassum, John A. and Dyer, Resource, Lee D.
(1997) Personnel/Human Resource Management, 4th Edition, New Delhi (India),
Universal book store.
  Ivancvich, John M. and Glueck, William.(1989/1992) Foundation of personnel
/Human Resource Management, 4th Edition, Boston(United States of America), Richard
D.Irwin
 Mamoria, C.B.(1980) Personnel Management/Management of Human, 2nd edition,
Ramdoot, Himalaya Publishing House
 Mondy, Wayne R. and Neo, Robert M.(1990) Human Resource Management, 8th
Edition.
 Mathis, Robert L. and Jackson, John L.(2003) Human Resource Management, 4th
Edition
 Werther,William B. and Davies, Keith(1993) Human Resource and Management, 4th
Edition

HAWASSA UNIVERSITY AWADA

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

Questionnaire to be filled by administrative employees of Hawassa University Awada Business

and Economics College
Dear respondent:
My Name is Rahel Abiyu an undergraduate student of Hawassa University awada business and
Economics College in Management Department. This questionnaire is designed to study the
assessment of compensation practice and employees attitude in HawassaUniversity awada
business and Economics college Therefore, I kindly request you to take some time and respond
to all the questions, honestly. I assure you that all the responses will be treated confidential and
will only be used for this study.

Your cooperation is very crucial for the success of this research.

I thank you in advance.
General Instruction
 There is no need of writing your name
 Please, use an ‘X’ mark to give your response on the options that are given for each
questions
 If you have any question you may contact me through my cell phone - 0935251028
 Part one: Demographic data

1. Gender Male Female

2. Education level
10 or 12 completed Diploma
BA/Bsc MA/MBA/MSc and above
3. Year of service in the College
0-2 years 2-4 5 and above
e. Part two: Questions related with compensation practice of the college
1. Does your organization give incentives and fringe benefits for good performance?
a. Yes b. No
2. If your answer is yes, please specify how it will be applicable.
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________________________.
3. How do you rate the overall compensation practice of the college?
Very sufficient Sufficient insufficient other
4. Do you receive your compensation (salary, overtime payment, position allowance e.t.c.) on a
regular base from the College?
a. Yes b. No
5. If your answer is no, please specify the reasons
___________________________________________________________________________
_____________________________________________________________________.
6. In your opinion, what measures should the College take to address the problems you have
mentioned above?

7. In your opinion, do you think that the current compensation packages of the college motivate
employees to be productive?
a. Strongly agree c. Agree
b. Neutral d. Disagree
e. Strongly disagree
8. Do you think that the various incentives and fringe benefits are offered in a fair and transparent
way for all employees?
a. Yes b. No
9. If your answer to the above question is no, what specific problems do you see regarding
fairness and transparency related to incentives and fringe benefits?
______________________________________________________________________________
______________________________________________________________________________
________________________________________________________________.
10. How do you rate the compensation you receive in comparison to your contribution in the work
you perform?
a. It is equal
b. It is greater
c. It is less
11. How do you compare your organization’s compensation package with other organizations?
a. It is equal
b. c. It is greater
c. It is less
12. If you say less for question no 11, what is the reason behind have the consequences you
observed?
a. less productivity
b. frequent absenteeism
c .high employee turnover
d. dysfunctional conflict
e. Other --------------------------

Thank you for your cooperation

Part three: Interview Question

1. What are the various types of compensations and fringed benefits that are given for the
administrative employees?
2. What are the criteria’s that are used to give compensation for employees?
3. Does the HR unit of the college conduct surveys regarding employees’ satisfaction on the
compensation they receive and modify its practices accordingly?
4. What are the major challenges you face in your compensation practice?