Abstract:
The study aimed to examine the impact of compensation package on individual performance in
case of commercial bank of Ethiopia jimma district. This research looks at the compensation
system and its impact on employee performance at commercial bank of Ethiopia, Jimma. To
accomplish this, the researcher uses compensation manuals and collective agreement of the
bank and solicited responses to questionnaires from a cross-section of the employees. These
coupled with verbal commendation of employees when implemented the study believes to go a
long way to boost the morale of employees and in the end have a positive influence on their
performance and productivity as a whole. Both qualitative and quantitative approaches are
designed to investigate the problem under the study. In this study, the target population
comprises 385 total clerical full time staff members working and managed under Commercial
bank of Ethiopia, Jimma town branches and by using stratified simple random sampling
techniques the calculated sample size become 196. Data was collected mainly from primary
source through questionnaire. The findings revealed that salary ,overtime, bonus and health
care/insurance had a positive and significant impact on individual performance.
