Compensation, Employee Performance and Organization Performance in Guarantee Trust Bank (GT Bank) PLC.
Compensation, Employee Performance and Organization Performance in Guarantee Trust Bank (GT Bank) PLC.

Summary/Abstract: In this paper, we moved away from the questionnaire and interview data gathering approach to test the fundamental assumption of HRM practices as they impact both employee and organizational performance using financial data. We argued that performance is better appraised “a posteriori”. Thus, we extracted financial data from the annual financial report from year 2002 to 2012 and the Pearson Correlation method is used to analyze the data. The analysis reveals that there is a positively strong and statistical significant relationship between, firstly, compensation and employee performance (0.815); secondly, compensation and organizational performance (0.666); and lastly, between employee performance and organizational performance (0.903). However, the findings should be treated with caution as these relationships do not imply a causal one. Importantly, the results strengthen the fundamental role of HRM practice of compensation as one of the important drivers of employee performance that culminates into the overall improved organizational performance.

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