The impact of compensation package on individual performance In Case of Commercial Bank of Ethiopia Jimma District

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.