CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In the global academic world filled with different institution of learning, there is high

competition among the institution on who delivers the best quality education, who has the

highest number of students and who publicly recognized as the best among the rest. For any

institution to have competitive edge amidst her competitors, there must be in place the presence

of active and motivated employees whom are attracted mostly by a high remuneration to them

and a formidable compensation and benefits strategy by the employer to keep them motivated,

happy and active in delivering their daily task (Amue and Igwe,2014). In the age of global

competition, securing the best employee half goal achieved, it is very essential to identify and

retain the efficient, competent and knowledgeable employees in organisation by developing and

maintaining an effective compensation program for getting the best job performance from the

employee (Akter and Moazzam 2016). The need to have a qualified, motivated and active

employee in an educational institution cannot be over emphasized; Education is one of the

important aspects of life. Education is a conscious and deliberate effort to create an atmosphere

of learning and the learning process so that learners can develop their potential, control,

personality, intelligence, skills for themselves, the community, the nation and the State (Law

Decree No. 20 of 2003 Article 1). Act No. 20 of 2003 Article 3 states that the national education

serves to develop the ability and character development and civilization of the nation's dignity in

the context of the intellectual life of the nation, is aimed at developing students' potentials in

order to become a man of faith and fear of God Almighty, noble, healthy, knowledgeable,

skilled, creative, independent, and become citizens of a democratic and accountable. The

1
ministry of education conducts accreditation for institution on five years bases to ascertain the

quality of education rendering at particular time, to see if they are maintaining their original

establish quality or if they have drop which attracted the withdrawal of their ISO 21001

certification in Nigeria which helps the educational institutions in establishing and maintaining

an Educational Organization Management System (EOMS) that would ensure a standardized

education that is built upon the international best practices.

Ardana (2012) defined benefits as everything received by employees as a reward for its

contribution to organisation. Compensation/benefit is everything that employees receive as a

reward for their work. Panggabean (2004) also explained compensation as rewards and can be

defined as any form of reward given to employees for contributions they provide to organisation.

Sirait (2006) explains that compensation is something received by employees, whether in form of

financial or non-financial reward for employee's contribution to organisation. Management of

compensation is a very important activity to make employees quite satisfied in their work.

Compensation is the human resource management function that deals with every type of reward

individuals receive in exchange for performing organisational tasks (Ivancevich, 2006). It is

considered the major cost incurred by a business organisation. However, today the human

resource is considered as human capital and benefits hence is not cost but rather investment. It is

a systematic approach to providing monetary value to employees in exchange for work

performed. Benefit to the employee may achieve several purposes; assisting in recruitment, job

performance, and job satisfaction (Yamoah, 2020). Compensation can acquire or create and

maintain productivity. Without adequate compensation, existing employees tend to leave the

organisation and organisations will have difficulty in replacement, especially in recruiting.

Employees are the organisation’s key resource and the success or failure of organisations center

2
on the ability of the employers to attract, retain, and reward appropriately talented and competent

employees.

Academic Staff is a person whose duty in an institution is to pass knowledge to the students

directly through lecturing or indirectly through logistics and researches. Example of the

Academic Staff are the Vice Chancellor in Universities, Rector in Polytechnics, Deputy Vice

Chancellor of universities, Deans of Schools, Colleges or Faculties, the Head of Departments,

Lecturers etc. We also have Senior Technologist, Instructors and Technologist (Patience et al,

2020). They are in direct contact with the students on daily bases.

Rufus Giwa Polytechnic which was formerly known and addressed as “The Ondo State

Polytechnic, Owo” was established in 1979 while it commenced activities in January 1980. The

primary mandate of the Institution as conceived by the Ondo State Government being its

proprietor still remains of middle-level manpower in Science and Technology related fields of

study as part of efforts aimed at an effective development of Technology in Ondo State in

particular and Nigeria in general.( [Link] accessed on 2nd March 2, 2024)

1.2 Statement of the problem

There is a high competition among higher educational institutions in Nigeria, for an institution to

have competitive advantage; they must have high educational standards which produces high

quality graduates that will have a positive impact on the society. These can be achieved through

the employment and retention of highly motivated staff with high performance ability to transfer

knowledge to students. Over the years, there has been observed poor performance among

academic staffs of higher institution in Nigeria. This poor performance has been a matter of

3
concern and debate among academics, writers, government and members of the public. The

reason for this trend as well as the apportionment of the blame has formed the basis for the

controversy of who is the root cause of the problem. It is increasingly being realized by workers,

economists and government that the problems plaguing the country’s educational sector lies in

the negative attitude to work, lack of dedication and indolence among employees, delay in

payment of salary and poor employee remuneration. It has been observed that the Nigerian

employee lacks a feeling of responsibility to his job and pride in doing his work well.

Hence, the study focused on adequate employee benefits as a tool of achieving quality

performance of academic staff.

1.3 Research Questions

This research will attempt to answer the following questions:

i) what is the impact of training and development on performance of academic staff of

Rufus Giwa Polytechnic?

ii) what are the impact of workplace incentives on employee performance of Rufus

Giwa Polytechnic?

iii) to what extent does recognition impact job performance of academic staff of Rufus

Giwa Polytechnic?

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1.4 Objectives of the study

The main objective of this study is to evaluate the impact of employee benefit on the employee

performance of the academic staff in Rufus Giwa Polytechnic Owo, Ondo State. However, the

specific objectives includes to:

i. examine the impact of training and development on employee performance of academic

staff of Rufus Giwa Polytechnic

ii. ascertain the impact of workplace incentives on employee performance of academic

staff of Rufus Giwa Polytechnic

iii. find out if recognition has impact on employee performance of academic staff of Rufus

Giwa Polytechnic.

1.5 Research of Hypothesis

The following Hypotheses are stated in their null forms:

Ho1: Training and development has no significant impact on employee performance of

academic staff in Rufus Giwa Polytechnic Owo, Ondo State.

Ho2: Workplace incentive has no significance impact on employee performance of academic

staff of Rufus Giwa Polytechnic Owo, Ondo State

Ho3: Recognition has no impact on employee perfermanace of academic staff of Rufus Giwa

Polytechnic Owo, Ondo State.

1.6 Significance of the study

This study seeks to highlight and recommend best employee benefit practices that can be adopted

in an academic institution, by bringing out the various employee benefit practices which Rufus

5
Giwa Polytechnic has undertaken to increase its productivity and increase its educational

standard among other institution in Nigeria. This study will therefore help enlighten management

of various organizations of the various impact of employee benefit plans and packages on the

performance of an organization. The study will also bring out specifically, the employee benefit

packages which Rufus Giwa Polytechnic has been able to make available to its academic staff

and how its effect on their performance. It also seeks to bring out the level of encouragement and

motivation that Rufus Giwa Polytechnic has given to its academic staffs to make them work

effectively, among others. The importance of this study is therefore to highlight the various

employee benefits and how it affects the productivity of employees in an organization. This

study will go a long way to illustrate how organizations should treat employees’ in-order to

increase productivity.

1.7 Scope of the study

The scope of the research will be limited to the impact of employee benefits on the performance

of academic staff of , Rufus Giwa Polytechnic Owo, Ondo State Nigeria. The research will rely

on the academic of staff and management of the polytechnic for vital information as well as

information from primary source.

1.8 Definition of Terms

Impact: is the marked effect or influence.

Employee: A person or individual employed by an employer in an organization

Benefit: An advantage or profit gained from something.

Motivation: The process by which people are moved to engage on particular behavior

Organization: Any group of people who form a business together to achieve a particular aim

and objective.

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Productivity: The rate at which a worker or a company produces goods and the amount

produced compared with how much time, work and money is needed to produce them.

Academic staff: Academic Staff is a person whose duty in an institution is to pass knowledge to

the students directly through lecturing or indirectly through logistics and researches. Example of

the Academic Staff are the Vice Chancellor in Universities, Rector in Polytechnics, Deputy Vice

Chancellor of universities, Deans of Schools, Colleges or Faculties, the Head of Departments,

Lecturers etc. We also have Senior Technologist, Instructors and Technologist.

Performance: Performance involves a set of measurements that indicate the level how an

individual, group, organization or institution is achieving a set of goals.

1.9 Profile of Study

Rufus Giwa Polytechnic was established in Owo, Ondo State, by Edict in 1979 with the name

The Polytechnic, Owo by the outgone Military Governor Sunday Tuaoyo. The National Board

for Technical Education approved it as a State owned Polytechnic. It was also accredited by the

Institute of Chartered Accountants of Nigeria and other professional bodies. Executive Governor

Adekunle Ajasin began to operate the Polytechnic immediately he assumed office in early 1980.

It was renamed Ondo State Polytechnic in 1990. By 2010 the Polytechnic had over 4000

students. The Polytechnic has several Department in the Faculties of Engineering, Science and

Technology, Liberal and Extra Moral Studies among others. It has a mandate of training and

developing techniques in Applied Science, Engineering, Environmental Studies, Accounting,

Commerce and Home Economics.

Rufus Giwa Polytechnic had the following Rectors: Mr. Olusegun Arodudu, Dr. Adeyeri, Prof. O

Adedimila, Mr. Alao, Mr. B. Ogundowole, Prof. Peter Fapetu, Prof. Ajibefun, Engr.

7
Ologunagba, Mr. Gani Ogundahunsi and Mr. Olorunwa Adegun who is the present Rector of the

Polytechnic. In June 2003, the Polytechnic was remand after Chef Rufus Folusho Giwa, a

prominent businessman from Ondo who had become president of the Manufacturers Association

of Nigeria (MAN) by the Executive Governor of the State, Dr. O. K Agagu.

The Institution had been enjoying constant accreditation by the NBTE and relevant Education

Bodies.

1.10 Conclusion

In the age of global competition, it is very essential to identify and retain the efficient, competent

kand knowledgeable employees in organisation by developing and maintaining an effective

compensation program for getting the best job performance from the employee (Akter et al

2016). This research work will investigate the effect of employee benefits on the performance of

academic staff of Rufus Giwa Polytechnic, Owo Ondo State, Nigeria. It aims at finding the

relationship between employee performance and compensation/benefit given to them by their

employer.

8
CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction

For an organization to be productive and have competitive edge in the global setting, the welfare
of the employees should be their priority. The success or failure of such organization and
systems depend mainly on the ability, intelligence or the character of its workers that are found
there, a happy and healthy employee (both mentally and physically ) translate into a progressive
and profitable organization (Drucker, P. 2018).

Some of the organization are taking care of the employee wellbeing by providing compensation
and benefits in term of remuneration, allowance, promotion, and also incentive. The
compensation and benefits is given based on employee performance. Employees’ compensation
is all form of pay and rewards going to employee and arising from their employment ( Dessler G
2015). While, the benefits is indirect financial and nonfinancial payments employees receive for
continuing their employment with the company. Currently, compensation and benefit plays a
significant role for the organization that aim to accomplish their objectives and goals. The poor
compensation and benefits will lead to low performance and that will lead to low satisfaction
level that will increase absenteeism in employee and the outcome will decrease (Feraro-Banta et
al, 2017).

2.1 Conceptual Review

This highlights the determinants (training and development, supervisor support and workplace
incentives) of the independent variable (Compensation and Benefits) which was used to measure
against the dependent variable (Employee Performance). Hence, it is illustrated below.

Supervisor Support

pment

Employees
Compensation and Training and
Performance
Development
Benefits

Workplace Incentives

Figure 2.1: Conceptual Framework of the Study (Researchers Adaptation, 2023)

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2.1.1 Employee Performance

Performance incorporates the resulting outcomes of the performed actions of employees based
on their expertise and skills. In organizational settings, employees’ performance is the
accumulated result of the skills, efforts and abilities of all the employees contributed in
organizational improved productivity leading towards its goal achievement. Improved
organizational performance indicates the efforts towards goal achievement while requiring more
efforts in terms of improved employee performance (Ellinger et al, 2003). Employee
performance is among the critical factors that contribute significantly in organizational success.
Learning organizations play important role in enhancing employee performance through
providing trainings and developments for their employees (Gitongu et al, 2016). Moreover,
management standards to evaluate employee performance also play critical role in improving
employee performance as they provide the picture of actual performance and its alignment with
the benchmarks. If discrepancies found, then these standards help bringing the outputs again
towards their required levels (Mackay et al, 2004). Employees performance also depends on their
internal satisfaction towards their job. If employees are satisfied from their jobs as well as the
organization than they are more keenly interested to perform well towards organizational goal
achievement (Harter et al, 2002).

Factor that effect employee performance

Ibrahim and Brobbey (2022) carried out a study to instigate whether the financial sector in
Ghana’s performance of employees could be affected by motivation. The results of the research
indicated that granting leadership opportunities, employee recognition, meeting up their
expectations and interacting with employees actually motivated employees. Lack of incentives,
comfort levels, poor management, a good work environment, technological advancement,
evaluation of employees, managerial standards and motivation were also seen as factors that
could actually influence the performance of employees. The findings further indicated that
motivation in an organization enhances efficiency and also helped employees meet their personal
needs as well as attaining the goals of the organization and enabling them have a good
relationship with themselves in the organization (Ibrahim & Brobbey, 2015).

10
2.1.2 Compensation and Benefits

According to (Geraln M. f et al, 2020), compensation is the form of pay or incentive given to an
employee for performing services for an employer. It is often based on wages, salaries,
incentives, or bonuses. Brown M.P, 2003 views compensation as an outcome in the exchange
among employees and themselves as an entitlement for being an employee of the organization or
as a reward for a job well done. It does not necessarily mean that anyone who gets paid has done
the job well. Employees may not live up to expectation but can still get paid because of the Trade
Union Congress (TUC) laws and regulations. An employee is compensated based on his/her
skills, knowledge, experience, and education (Vlachose I, 2008). The stress that compensation is
particularly an important topic because often compensation significantly affects recruiting and
retention efforts of a firm (Allen D.G, 2010), if organizations cannot pay applicants enough, then
they cannot recruit or retain critical skills or knowledge needed to operate efficiently and more.
Compensation is also the second most investigated topic in human resource management
(Henderson L.N, 2008). Compensation is viewed from total rewards perspective as it
encompasses psychological rewards, learning opportunities, and recognition in addition to
monetary rewards in the forms of base pay and incentives (Herzberg M.B, 1999). In
compensation practices, firms with a more entrepreneurial orientation tend to base pay rates on
market comparisons more so than on internal equity concerns (Aveg J.B et al, 2020). The strong
financial package must be enough to provide incentives for employees and encourage them to
stay with the firm (Allen D.G, 2010). They further asserted that the feelings of the employees
also influence the performance of the company; the employees’ morale will determine the
success or failures (Chow B.M eta l, 2009). Compensation is one of many Human Resource
(HR) tools that organizations use to manage their employees and for an organization to receive
its money’s worth and motivate and retain skilled employees, it needs to ensure that its
compensation system is not an island by itself (Turner, K. L, 2021). But also, it is important for
an organization to link compensation to its overall goals and strategies; it is significant that its
compensation system aligns with its HR strategy (Chow M.J, 2009). It thus means that the
compensation scheme in an organization is an HR strategy that is meant to motivate workers to
deliver.

11
[Link] Definition of Benefits

Employee benefit is defined as any form of reward provided by the organisation other than
wages or salaries that is paid for in whole or in part by the employer (Soon C.S, 2008). The
benefit also referred as indirect compensation because it is given to employees in the form of a
plan (such as health Insurance, organization shares and retirement benefits) rather than cash
(Nyanyi P.A, 2011). Employee benefit can be referred to the benefits that are provided to the
employees in addition to their salary (Hina Q, 2011). Benefit includes packages an employer
practices to supplement the cash compensation that employees receive. In other hand, benefit
comprises of health, income protection, savings and retirement program that provide security for
employees and families (Siramaiati N.W, 2021). Employee performance can be seen as an
activity in which the individual can achieved the task assigned to it successfully, subject to the
usual constraint of the reasonable use of available resources (Okoro E.I, 2020). Employee
performance will exchange the fate of the organization with the hard work and good performance
that will increase the productivity, and indirectly, increase the profit. Therefore, as the retribution
the employee should be reward.

[Link] Different between Compensation and Benefits

Compensation is one of the elements of reward that is provided by company (Odunlami et al,
2014). Benefit is part of the compensation; however it will distinguish by the types of rewards
that will be given. Usually, the compensation will be given as the monetary rewards while the
benefits will be given as non-monetary reward. These two rewards also known as the direct
compensation and indirect compensation. Employee compensation can be seen as all form of
financial and significant benefit received by employees as part of the employment relationship
(Purnan M.S et al, 2017). Direct compensation can be like salary or wages while indirect
compensation can be as welfare support facility (Maboso C.M et al, 2014). The compensation
included are the remuneration and allowance while the benefits included are the promotion and
incentive. There is a different between the government and private sector. The wages and salaries
of local employees and the state are lower than private sector workers with earnings comparable
determinant such as education (Bender K.A, 2016). However, the benefits such as pensions
consist of sharing worker compensation in the public sector are better.

2.1.2. 3 Types of Compensation

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[Link] Remuneration

The remunerations are the payment or rewards given to the individual for work that have been
done (Maicibi N.A, 2005). Remuneration is including the salary and wages. Wages and salary
are defined as the monthly payment that employers pay their employees for service rendered
based on contractual agreement (Boselie P et al, 2010).When the administration paid
remuneration in the reasonable time and fixing the salaries, the performance of the employees
habitually growth (Zamer H et al, 2014). Wages are the major and extremely significant
motivational aspects that influence the employees’ performance in the organization (Agwu M.O,
2013). The remuneration is a challenge for the Human Resource area because it would pursue
trends (Prasad C.V, 2015. This is because the salary and wages is not the only ways to retained
talented employees in organization. Most of the employees are looking into job that is securing
all of their welfare.

[Link] Allowance

Employee allowances including pension, salary sick, insurance coverage, car companies and
several other benefit (Armstrong M, 2020). It is the money that provided to an employee for a
specific purpose. Allowance is a financial benefits other than the salaries offered to employees
for specific purposes such as employee movements, financial support and employee engagement
allowances (Soon C.S et al, 2018). The high allowance can engage their employee to still remain
at the organization and give their devotion and show their loyalty. The long term employee
expands more knowledge and expertise in doing their job based on the long experience. However
in each country and profession the use of allowance is different. There are country and
profession that have allowance for certain job types, project, working hour or regime and
location (Mceauslan W. D, 2019).

[Link] Types of Benefits

[Link] Promotion

The promotion is the redemption of worker to higher class (Mceauslan W. D, 2019). Promotion
is the recognition of employee effort in the organization. Recognition is required in a social and
organizational environment as a motivational tool to produce good results (Gathnugu E, W,
2015). Promotion is likely important in increasing employee performance because the upwards

13
movement of employee rank in the organization will increase the motivation of employee and
their sense of responsibility. The employees in the high rank feel more pressure in increasing the
organization performance. Besides, enrichment and promotion task consistently in an institution
is the ultimate desire of every employee (Osibanjo O.A et al, 2018).

2.1.3 Training and Development

Efforts of career planning and development were initiated by organizations in 1970’s which was
directed and dedicated on young employees those who demonstrate to have a high potential.
Suggestions were given for organizations to make plan for future and also provide training and
development to fresh employees for the high ranking designation in future (Jayadatta S, 2016).
Training and Development defined as emotional agreement by which employees are commonly
guaranteed the loyalty and continued dedication with organization which results in the form of
providing employees work safety, training opportunities and chances for advancement in career
(Feldman 2000). Human capital is an important asset for organizations under intense
competition. Training and Development function enables human capital to unleash their
dexterity. A profound training program acts as a vehicle to enhance employee skills and enable
them to perform better in their job. Training and development is indispensable strategic tool for
enhancing employee performance and organizations. It aims to improve employee’s skills by
making them learn new techniques of doing work. Thus, it helps updating their knowledge of
doing work which results in increasing their efficiency and hence, results in increasing
productivity of an organization (Dhanonjoy K, 2017).

Organizations can develop and enhance the quality of the current employees by providing
comprehensive training and development. The general benefits received from employee training
are: increased job satisfaction and morale, increased motivation, increased efficiencies in
processes, resulting in financial gain, increased capacity to adopt new technologies and methods,
increased innovation in strategies and products and reduced employee turnover (Dhanonjoy K,
2017). Training and development is for both the benfit of the oraganisation and employee.

2.1.4 Superior Support

Superior or supervisor support is defined as “the degree to which supervisors value their
employee contributions and care about their well-being” (Rhoades et al, 2002). Even though

14
supervisors are in many cases charged with a variety of responsibilities, providing support to
their employees is considered a fundamental aspect of supervisory work (Collins, 2017). Knies et
al., 2017 state that supervisor support can be “understood as a manager demonstrating supportive
behavior through specific acts that aim to help employees at work”. More specifically, they argue
supervisor support can be aimed at either increasing employees’ personal commitment (for
instance by informing employees how they are doing in their work, asking if they need
assistance), or aimed at supporting employees’ career development (for instance by noticing and
sharing opportunities for development). Previous studies have indicated that perceptions of
supervisor support are related to several outcomes, including increased levels of perceived
organizational support (Kurtessis et al., 2017), decreased turnover intention (Eisenberger et al.,
2002) and increased extra-role behavior (Knies et al., 2019). Because outcomes are dependent on
how supervisor support is perceived, it is important to understand how employees’ perceptions of
supervisor support develop. This is because Supervisors are considered representatives of the
company and are responsible for directing and evaluating subordinates' performance. From the
employee's point of view, this will be seen as an indication of company support. Supervisory
support influences employees' beliefs about how much supervisors value contributions and care
about employee well-being. Several studies on the relationship between perceived supervisory
support and employee performance suggest that future jobs should also focus on past job results
and the consequences of perceived supervisory support (Park J. 2020). The core concept of social
exchange theory states that individuals who voluntarily show beneficial behavior to others, for
example, if someone helps another person, then that person will return it voluntarily (Blau G.
2021).

Ways by which superior can provide support employee:

1. Listening to the employee

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2.1.5 Work Incentives

Incentives are reward offered in addition to the basic wage or salary directly related to the
performance (Osibanjo O.A et al, 2018).. Besides, incentives known as a performance-based
compensation system that links employee compensation to the achievement of workers who
works directly in the workplace (Mathias R.L, 2020). The non-monetary incentive include the
indirect payment of money in the form of tangible rewards such as gift cards, trophies, vacation
trip, meal treats and so on (Gathnugu E, W, 2015). The positive effect of incentives are used as a
lead to show employees what organization wanted to accomplish and what they assess and
prioritize as significant to their work (Ounh T, 2015).Besides, incentives can be used as an
effective tool to attract employee who are desirable, authoritative into the organization, because
employee who appreciate this form of magnetism will be interested to work there rather than
employee that only looking for steady benefits.

2.2 Theoretical Review

These theories attempt to explain the specific things which actually motivate the individual at
work. These theories are concerned with identifying people’s needs and their relative strengths
and the goal they pursue in order to satisfy these needs. These theories place emphasis on the
nature of the needs and what motivates individuals. The basis of these theories is the belief that
the content of motivation consists of needs (Mullin, 2005). It is essentially about taking action to
satisfy needs, and identify the main needs that influence behaviour. An unsatisfied need
therefore, creates tension and a state of disequilibrium and in order to restore balance, a goal that
will satisfy the need should be identified, and a behaviour pathway that will lead to the
achievement of the goal is selected. Not all needs are important to an individual at a time; some
may provide a much more powerful drive towards a goal than others. This is dependent on the
background and the present situation of the individual. The complexity of needs is further
increased because there is no simple relation between needs and goals. The same need can be
satisfied by a number of different goals, the stronger the need, the longer its duration and the
broader the range of possible goals (Armstrong, 2006).

2.2.1 Reinforcement Theory

16
behavior, he or she is more likely to perform those actions again. You can probably think about a
time when you did something that made your parents or teacher happy, and you were rewarded
in some way. The positive reaction motivated you to do the same actions again because you
would anticipate getting the same or a similar reward. Reinforcement theory states that a
response followed by a reward is more likely to recur in the future (Thorndike's Law of Effect).
The managerial implication for compensation management is that high employee performance
matched with a reward (be it monetary or non-monetary) will make future high employee
performance more likely. By the same token, high performance not followed by a reward will
make it less likely in the future. The theory emphasizes the importance of a person actually
experiencing the reward (Gerhart et al, 1995). The researcher adopted “Behavior reinforcement
theory”as a theoretical framework

2.2.2 Victor Vroom’s Expectancy Theory

Vroom (1964) criticised Herzberg’s two-factor theory as being too dependent on the content and
context of the work roles of workers and offered an expectancy approach to the study of
motivation (Bloisi et al., 2003). This theory therefore is aimed at work motivation and based on
three variables namely valence; instrumentality and expectancy. This theory was centered on the
idea that people prefer certain outcomes from their behaviour over others (Mullins, 2005). He
proposed that 44 individuals will be motivated to achieve a desired goal as long as they expect
their actions will achieve the goal (Bloisi et al., 2003). Valence as a variable of this expectancy
theory is the feelings about a specific outcome or an anticipated satisfaction from on outcome. It
can further be explained as the attractiveness of, or preference for a particular outcome to an
individual. This is derived from their own right but usually derived from the other outcome to
which they are expected to lead of which accumulation of wealth from money is an example
(Mullins, 2005).

2.2.3 Goal Theory

Edwin Locke and Gary Latham (1990) are the leaders in goal-setting theory and research,
according to the theory, there appear to be two cognitive determinants of behavior: values and
intentions (goals). A goal is defined simply as what the individual is consciously trying to do.
Locke and Latham postulate that the form in which one experiences one’s value judgments is
emotional. That is, one’s values create a desire to do things consistent with them. Goals also

17
affect behavior (job performance) through other mechanisms. For Locke and Latham, goals,
therefore, direct attention and action. Furthermore, challenging goals mobilize energy, lead to
higher effort, and increase persistent effort. Goals motivate people to develop strategies that will
enable them to perform at the required goal levels. Finally, accomplishing the goal can lead to
satisfaction and further motivation, or frustration and lower motivation if the goal is not
accomplished.

Goals have a pervasive influence on employee behavior and performance in organizations and
management practice (Locke & Latham, 2002). Nearly every modern organization has some
form of goal setting in operation. Programs such as management by objectives (MBO), high-
performance work practices (HPWPs), management information systems (MIS), benchmarking,
stretch targets, as well as systems thinking and strategic planning, include the development of
specific goal (Fred C, 2011). Based on hundreds of studies, the major finding of goal setting is
that individuals who are provided with specific, difficult but attainable goals perform better than
those given easy, nonspecific, or no goals at all. At the same time, however, the individuals must
have sufficient ability, accept the goals, and receive feedback related to performance (Latham,
2003).

2.3 Empirical Review

A lot of researches have been done citing the impact of benefits on the performance employee of
different organization, they show that, there is close relationship between the performance of
employee and the qualities and the amount benefits given to them. According to Y. Joshua et al,
2020 who studied the effect of compensation practices on academic staff’s job performance in
Federal University of Agriculture, Abeokuta, Ogun State, Nigeria. He made use questionnaire
with One hundred and three (103) respondents which randomly selected to obtain data and the
data was analyzed using g descriptive and inferential statistics. He noticed there is an inadequate
compensation given to the staffs which in turn has reduced their performance. According to the
research, the mean years of experience was 10 years while their mean income was ₦217447.29.
Most (79.4%) academic staff perceived that there is a pressing need to review and rationalize the
pay structure to improve employee efficiency, some of the compensation packages available
were; retirement benefit (100%), study leave (91.3%), career development opportunity (82.6%).
The major constraints to compensation strategies identified were poor insurance scheme

18
(21.7%), inadequate welfare package (20.7%) and poor communication network (19.6%).
Furthermore, a significant relationship existed between respondents’ age (r= -0.204, p> 0.05),
compensation package (r = 0.26, p < 0.05 ) and their performance .The research revealed that
academic staff perceived a pressing need to review the compensation packages by involving
them in the compensation decision making process. Effective management and implementation
of compensation packages is highly recommended.

In the work of Vogireddy S R, 2020 who the studied the Impact of Compensation and benefits
on Employee Performance, he discovered that the performance of employees depend largely on
the Compensation and benefits they receive, he concluded by saying that employees should be
managed properly and motivated by providing best remuneration and compensation as per the
industry standards. The lucrative compensation will also serve the need for attracting and
retaining the best employees. The impact of compensation and benefits on employee
performance and organizational effectiveness depends on the existing compensation and
performance management programs in the organization. Typically, most employees respond to
increases in pay and benefits with a positive and more productive attitude. Sometimes,
employees only notice rewards of a salary increase the day the increase is communicated to
them, and the day they receive the first paycheck that includes the salary increase (Vogireddy S
R, 2020).

Adibah A K et al, 2021, determined the effect of the compensation and benefits towards
academic staff of Faculty of Technology Management and Business, University Tun Hussein
Onn Malaysia, Malaysia, The study was carried using the survey research method, where 100
questionnaire were distributes among lectures of the university with population of 100 lectures
which make the sample is 80 respondents. The data collected were analysed and interpreted
using the Statistical Package for Social Sciences (SPSS). Based on the result, it is found that the
performance level of lecturers is at medium and high level. In addition, there is a positive
correlation between compensation and employee performance. Moreover, the compensation and
benefits also give a positive effect on employee performance (Adibah A K et al, 2021).

Obieze E S, 2019, studied the Impact of compensation management practice on the employees’
performance of selected banks in delta state. . The study finds that: Recognition has a significant
effect on employees’ performance in selected banks in Delta State (Coef. = 0.587, p = 0.000).

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Pay has a significant effect on employees’ performance in selected banks in Delta State (Coef. =
0.551, p = 0.000). Bonuses/allowances/allowance has a significant effect on employees
performance in selected banks in Delta State.(Coef. = 0. 0.609, p = 0.000). Fringe benefit has a
significant effect on employees’ performance in selected banks in Delta (Coef. = 0.692, p =
0.000). An overall compensation policy has a significant effect on employees’ performance in
selected banks in Delta ((Coef. = 0.112, p =0.016). The study concluded that fringe benefit is one
of the ways to promote and retain an employee in the organization and management should be
able to sense the active employees and create ways of appreciating the employee’s effort put into
action in the organization. The study provided that recognition is a form of compensation which
boosts employee’s performance in the banking sector (Obieze E S, 2019).

Ohene E A et al, 2020, carried out similar research: The study investigated the effect of
compensation on employee’s performance Accra Technical University, Ghana. Descriptive
survey design was used for the investigation. A simple random sampling technique was used to
sample 40 respondents out of a total population of 57 Administrators of which 35 responded to
the Twenty-item questionnaire. Frequency tables were used to present the responses. The main
conclusions were that administrators were not attracted by the monetary aspect of compensation
but rather management sensitivity to their needs. They also found out that, housing loan and
accommodation are the most crucial needs. The recommendation was that Management should
create another form of set-off package alongside with the one in the condition of service to
encourage workers to put up their best.

2.4 Research Gap

From the Empirical Review, a lot of works have been on the impart of benefits on employee
performance, but most, if not all the researches are carried in financial sectors such as banks,
manufacturing sector or the service sector (Smith et al. 2019). There is little or no research about
educational sector, being that a well-educated nation is a progressive nation, it necessary to fill
this gap as it will increase the performance of employees of other sectors. When the academic
staff of higher institutions performance is high they will produce graduate that is inculcated with
hard work and knowledge which is good for high performance in other sector. Therefore, this
research work would be a bridge to link to the highlighted literature gap.

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2.5 Conclusion

From the previous researches, it shows that benefits have an impact on employee performance,
the researches highlighted that employee benefit such as training and development, supervisor
support and workplace incentives determine employee performance. Even though these
researches are done sectors, we will see if this research will follow the same path or not.

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