Employees perception towards monetary rewrds

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ployees’ Perception towards Compensation and

eft Policy:

case o some selected Government Higher

cation nstitutions in !ddis !"a"a

!hmed #elil

o$ect paper su"mitted to the school o graduate studies

!% in partial ulfllment o the re&uirements or the

ree o 'asters o Business !dministration ('B!)

sor:

ome Be*ele (!to)

artment o 'anagement

e- ./0/

is !"a"a

is !"a"a %niversity

ool o Graduate 1tudies

ool o Business and Pu"lic !dministration

! Program

ployees’ Perception towards Compensation and

eft Policy:

case o some selected Government Higher

cation nstitutions in !ddis !"a"a

!hmed #elil

roval Board Committee

22222222222222222222 22222222

irman- Graduate 1tudies 1ignature

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earch !dvisor 1ignature

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miner 1ignature

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ome Be*ele (!to)

artment o Business 'anagement



ool o Business and Pu"lic !dministration

is !"a"a %niversity

is !"a"a- Ethiopia

3 T 5 C ! T E

is to certiy that this pro$ect wor*- 6Employees’ Perception towards Compensation and

eft Policy: The case o some selected Government Higher Education nstitutions in

is !"a"a7- underta*en "y !hmed #elil or the partial ulfllment o 'aster’s o Business

ministration ('B!) at !ddis !"a"a %niversity is an original wor* and not su"mitted earlier

any degree either at this %niversity or any other %niversity8

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earch !dvisor

9!3!T;

hmed #elil declare that this wor* entitled 6Employees’ Perception towards

mpensation and Beneft Policy: The case o some selected Government Higher

cation nstitutions in !ddis !"a"a7- is the outcome o my own e<ort and study

that all sources o materials used or the study have "een duly ac*nowledged8 have

duced it independently e4cept or the guidance and suggestion o the 3esearch

sor8

study has not "een su"mitted or any degree in this %niversity or any other

versity8 t is o<ered or the partial ulfllment o the degree o 'asters o Business

ministration ('B!)8

!hmed #elil

nature2222222222222222222222222222

e222222222222222222222222222222

sor: Teshome Be*ele (!to)

nature2222222222222222222222

e22222222222222222222222222

;=9E+GE'E;T1

uld li*e to e4tend my heartelt gratitude to !to Teshome Be*ele or his guidance- personal

ouragement and continuous patience8 would also li*e to than* all employees who help me

g the &uestionnaires and provide essential inormation- particularly to the human resource

ness owner o Ethiopian Civil 1ervice College- !ddis !"a"a %niversity pension and "enefts



ion head- and #ote"e Teachers Education human resource unit8

ecial than*s is e4tended to my amily- especially- my wie- >em?em Hussein or her support

understanding during the long period was away rom home8

lly- a sincere appreciation is e4tended to my riends- or their continuous support through the

rse o my education and or their constant encouragement8

med #elil

;TE;T1

Page

nowledgements@@@8 @@@@@88 @@@@88@@@@@@88888@@ @88i

o o ta"les @@@@@@@@ @@@@@@88@@8 @88@@@888@@@88@8iv

o fgures@@@@@@@@@@@@888@@8 @@@@@@@@@@@@@8v

tract@@@@@@@8 @@@@@@8@@@@88 @@@@@@@@@@vi

pter ne: ntroduction

Bac*ground o the study@@@@@@@@@@@@@@@@@@@@88@@88@8880

1tatement o the Pro"lem@@@@@@@ @@@@@@8@@88 @@@888@@88@A

Purpose o the study@@@@@@@@@88@@88 @@@@@@@888@@@@888888

Theoretical perspective@@@8@@ @@@@@@@@@@@ @@888@@@@88

3esearch Duestions@@@@@@@ @@@@@@@@@@@ @@@888@@8@8

+efnition o terms@@@@88 @@@@@@@@ @@@@@@@@@@888@@88

+elimitations and limitations@@@@@@ @@@@@@@@8 @@@@888@@88

3esearch 'ethodology@8 88@@@@@ @@@@@@@8@@@@@@@8@888F

1ignifcance o the study@@@@@8 @@@@@88@@88 @@@@@@@888@@88

pter Two: 9iterature 3eview

!n ver Iiew Compensation@@@@@@@@@ @@@@@@@@ @@888@00

Types o Compensation@@@@@@@@ @@@@@88 @@@@@88@@@@800

08 5inancial compensation@@@@@@ @@@@@@@@88 @@@88@@@800

.8 ;onJ 5inancial compensation@@@@@@888 @@@@@@@ @8@@@@80.

Compensation 1trategy alternatives@@@@@8@8 @@@@@88 @@@@@88@80.

ndirect compensationKBenefts @8 @@@@@@@@ @@@@@@@@@8880.

08 Beneft !dministration issues@@@@@@@@@@ @@88 @@@88@@@80A

0808 +etermining the compensation and "eneft pac*ages@88 @@@@@@8880A



08.8 Providing "eneft Le4i"ility@@88 @@@@@88 @@@@@88 @@8@880

08A8 Communicating the "eneft pac*ages@@@@8 @@88 @@@@@88@80

Compensation Policy@@@@@@8 @@@@@@8@@ @@@@@@@@88@80

Compensation and Benefts 'odel@@@88 @@@@@88 @@@@@8 @@8@880

Employees !ttitudes towards Compensation and Benefts @@@@8 @@@8880F

08 !ttitudes toward Pay@@@8@ @@@@@88 @@@8@@ @@@888@@@0F

.8 !ttitudes toward Benefts@@@@8888 @@@@@@88@88 @@@@88@888880

pter Three: +ata Presentation- !nalysis- and interpretation

ntroduction@@@@@@@@@@@88@ @@@@@@88@88 @@@@888@@./

+emographic profle o respondents @@@@@@@@@88 @@@@@8 @@[email protected]

Employee’s perception o the e<ectiveness o compensation and "enefts@@@8 888.F

Employee’s Perception a"out the compensation and "enefts decision and

ministration process@@@@@ @@@@@@@@@@@ @@@@@@888A/

Employees perception towards overall compensation and "eneft issues@88 @@@888A0

Employee’s Perception towards pay mi4 and pension plan@@@8 @@@@@@888AA

3rating o salaries and "enefts@@@@@@@@@ @@@@@@@@888@A

Perception towards the understanding o how compensation and "eneft

ruments are determined@@@@@@@8 @@@@@@@@8 @@@@@@888A

Perception towards the avora"leness o salary and "enefts@@@ @@@@@@888A

/8 Comparison o Employee characteristics and employees perception @@@@88 888A

/808 Comparison o perception towards compensation and "enefts ade&uacy88@ 888/

/8.8 Comparison o perception towards participation in compensation and "enefts

sion ma*ing process@@@8 @@@@@88 @@88 @@ @@@@@@888A

/8A8 Comparison o perception towards periodic evaluation o the

ctiveness o compensation and "enefts@@@@@8 @@88 @@@@@@888

/88 Comparison o perception towards the review and rationali?ation o

structure and "eneft pac*age@ 8 @@@@@@@@ @@@888

pter 5our: 1ummary- Conclusions- and recommendations

1ummary o fndings@@@@@@@@@ @@@@@8 @@@@@@@@@888

Conclusions@@@@@@@@@88 @@@@@@@@88 @@@@@@@@@888

3ecommendations@@@@@@@@@@@@@@@@8 @@@@@88 @@@888/



erences@@@@88 @@@888@@ @@8@@@@@@@@@@@888@888@@@@@@.

endi4 ! @@@8@@@@@@8 @@@@@88 @@@@@@@@@@@@@@@888

endi4 B@@@@@@@@@@@@@@@@@@@@@@8 @@@@@@888/

5 T!B9E1

e

e08 1ample determination method@@@@@ @@@@@@@ @@@88888

e.8!cademic and administrative sta< profle o each institution@@@88 @@@888..

eA8Duestionnaire response rate "y institutions@@@@@@@@@@@88 @@@888.A

e8 The demographic characteristics o the respondents@@@@8 @@@@@@888.

e: Perception towards the e<ectiveness o compensation and "enefts@@ @@@888.

e: Perception towards compensation and "eneft decision and administration@@8 888A/

eF: Perception towards overall compensation and "eneft issues@ @@@@@@888A.

e: Perception towards pay mi4 and pension plan@8 @@@@@8 @@@@@@888A

e: Employee’s rating o salaries and "enefts@@@ @@@@@@@@@@@@888A

e0/: Employees understanding o how compensation and "eneft

ruments determined@@@@@@8 @@@@@@@@8 @@@@@@888A

e00: Employees response regarding the "enefts received so ar@88 @@@@@8888888AF

e0.: Employees perception a"out the "est and least avored "enefts@88 @@@888A

e0Appppppp8 Employee’s perception towards selected items "y 1e4- &ualifcation-

erience- age- $o" category- and salary level@@@ @@@@@8 @@@888/

5 5G%3E1

e

re0: Compensation and "eneft model@@@88 8 @@@@@@@@@@@@8880F

re.: Gender distri"ution using graph@@@88 @@@@@8 @@@@@@@@@888.

reA: The respondents’ responses with regard to their ages88 @@@@@@@@8888888.

re: The Graphical presentation o &ualifcation@@@88 @@@@@@@@8888888.

re: The Graphic presentation o the distri"ution o the sample

ed salary scale@@@@@@8 @@@@8 @@@@@@@@@@@@888.

re: The Graphic presentation o the year o e4perience o the sample@88 @@@888.

reF: The Graphic presentation o the percentage o ratings o salary and "enefts@@88A



re: The Graphic representation o the num"er o respondents

understand how compensation@@@@88 @@@@@@@@@@@@888AF

re: The graphic representation employees decision

arding the "enefts they have received@@@@@88 @@@@@88 @@@888A

re0/: The num"er o respondents who choose either o the

eft instrument as "est- least avored- and have no opinion@@@@@@ @@@@8888A

re00 (a): 1hows the relationship "etween employee’s age- &ualifcation- and

der and perception towards compensation and "eneft ade&uacy@@@@@@@8888888 @8888.

re00 ("): The relationships "etween wor* e4perience- $o" category- and

ry level and perception towards ade&uacy@@ @@@@@@@@@8@@@@@@8888888.

re0. (a): The relationships "etween gender- age- and educational &ualifcation

espondents and perception towards participation

ecision ma*ing process@88 @@@@@@@@@@@@@@@@@@@@8@@888A

re0. ("): The relationships "etween wor* e4perience- $o" category- and salary level o

pondents and perception towards participation in decision ma*ing process@ @@@8@888

re0A (a): The relationships "etween gender- age- and educational &ualifcation o

pondents and perception towards periodic evaluation@88 @@88 @@@@@@@@@@8888

re0A ("): The relationships "etween wor* e4perience- $o" category- and salary level o

pondents and perception towards periodic evaluation@8 @@8 @@@@@@@@@@8888

re0 (a): The relationships "etween gender- age- and educational &ualifcation o

pondents and perception towards revision and rationali?ation88 @@@@@8 88888888888888888888F

re0("): The relationships "etween wor* e4perience- $o" category- and salary level o

pondents and perception towards periodic evaluation@@@@8 @@@@@@@@@@8888F

T3!CT

study e4amined the perception o employees regarding the compensation and "eneft policy

overnment higher education institutions ound in !ddis !"a"a8 0/ employees rom three

tutes namely !ddis !"a"a %niversity- Ethiopian Civil 1ervice College- and #oto"e College

eachers’ education participated in this study and &uestionnaires were returned that gave a

ponse rate o M8 +ata was collected using a set o &uestionnaires which consists three

s including demographic inormation o respondents- A/ li*ert’s scale perception items- and

tional and openJended &uestions8 +ata analysis was done using descriptive statistics using



1 08/N num"er- percentage- and mean rating were used to present the perception o the

pondents8 5indings showed that employees perceived the current compensation and "enefts

e&uate- employees did not participate in compensation and "enefts decision- it is not

odically updated and communicated to employees8 'oreover- it was perceived that the

ctiveness o compensation and "enefts was not evaluated and the policy was no revised8 t

recommended that the compensation and "eneft policy should "e periodically revised ta*ing

account the mar*et conditions and nature o the $o"8 The analysis indicated that there was

ignifcant di<erence in perception "etween gender and $o" category there was a slight

erence "etween age groups- educational &ualifcation- wor* e4perience- and salary level o

ployees8

=ords: Compensation and "eneftsN Employee’s perceptionN higher education

pter ne

troduction

Bac*ground o the study

mpensation is reward that employees receive in e4change or their perormance8 t is

cerned with wages and salaries- pay raises- and similar monetary e4changes or employees’

ormance (Holt- 0A)8 Compensation is a part o transaction "etween employees and

ployer that results in employment contract8 5rom the employees point o view pay is necessity

ie8 The compensation received rom wor* is one o the "asic reason people see*

ployment8 5rom the employers’ point o view- it is one o the most important human resource

nagement unctions and constitutes a signifcant portion o organi?ation cash out Low8

mpensation oten e&uals /M o cash out Low o organi?ations- or some service organi?ation

ven larger8 t may "e the ma$or instrument used to attract employees as well as way to

ivate employees towards more e<ective perormance (vancevich and Gluec*- 0)8

her education system in the country is rapidly e4panding "oth in the num"er o universities

student inta*e8 The num"er o pu"lic universities has grown signifcantly in recent times8 n

F- the pu"lic higher education sector consists o .0 universities ( old and 0A new ones)8 The

struction o additional 0/ universities in di<erent regional states is underway under the direct

ervision o the Ethiopian 'inistry o Education8 There are also three speciali?ed institutions

er di<erent Ethiopian government ministriesKagencies and more than eight teacherJtraining

eges under the supervision o governments o the regional states (#asirim- .//)8



"elieved that there is signifcant movement o individuals rom one university to another or

o higher education8 !ltogether movement is pervasive throughout Ethiopia8 1ta< turnover

es place at all levels- driven "y the desire to improve earnings and to move rom rural toward

an areas8 Constant sta< turnover wrea*s havoc on an institutionOs capacity to operate

iently and to manage longJterm planning and development8 To overcome this pro"lem

mpt is "eing made to design compensation and "eneft system that ft with general standards

*ing environment- competitive remuneration- compensation and reward system integrated

good institutional governance and shared values and "elies o their organi?ation that can

act- retain and motivate the desired man power8 +i<erent %niversities are trying to ma*e their

pensation and "eneft pac*age as attractive as possi"le8 5or e4ample !ddis !"a"a %niversity

ugh implementation o BP3 has the stretched o"$ectives o the compensation system that

attract top 0/M o &ualifed and e4perienced researchers and educators in the country as well

thiopians wor*ing a"road and M o the employees will "e satisfed with the rate and

iency o e4tra wor* compensation o the %niversity (H3' process BP3 team report ,une-

)

most cases employees are willing and cooperative to do their $o" to the "est o their a"ilities i

y "elieve that pay is relatively e&uita"le to perormance8 n other words compensation and

efts a<ects employee’s decision to stay or leave an organi?ation- to wor* e<ectively and

ept additional responsi"ility (Bratton Q Gold- 0)8 The value employees give to the

pensation and "eneft pac*age have an inLuence on human resources outcomes namely-

ormance- productivity- satisaction- retention- and attraction8 The inevita"le need to *now the

ception o employees towards the organi?ations compensation and "eneft policy in the

ernment higher education institutions interested me underta*es this study8

vious studies ocus on the relationship "etween compensation and other human resources

comes li*e satisaction- productivity- perormance- !ttendance- and retention8 E<ective

pensation administration is desira"le in an e<ort to increase employee satisaction8

eover- satisaction with pay is important "ecause as many researchers have ound- i pay

saction is low- $o" satisaction is low8 Conse&uently a"senteeism and turnover will "e higher

more costly8 pay is tied to perormance the employee perorm a higher &uality and

ntity o wor* (vancevich and Gluec*- 0)8 Pay policy that strengthen the instrumentality

ween attendance and pay are li*ely to motivate attendance8 rgani?ation pay level places a



ct inLuence on voluntary turnoverN employees tend to compare their pay with level availa"le

ther organi?ation (Heneman and 1chwa"- et8al8 0F)8 People stay or leave organi?ation or

eral reasons "ut the conventional wisdom is that people who are satisfed with their $o" (i8e8

ceived pay- supervision- promotional opportunity and wor* environment as positive) will

- and those who aren’t will leave ('itchell and Holton et8al8 0A)8

pro$ect is designed to evaluate the employees’ perception towards the current compensation

"eneft policy and practices and the associated pro"lems in selected government higher

cation ound in !ddis !"a"a "ecause the compensation strategy is same throughout the

ani?ation- so data collected rom ew institutions may "e replicated and pro$ected or the rest

he institutions as well8 t is also intended to evaluate the degree to which employee rate

ora"ly or unavora"ly the e4isting compensation and "eneft pac*ages8 t is di<erent rom the

vious studies in that the latter ocus on the perception o employees towards compensation

"eneft policies in particular- where as the ormer ocus on the e<ectiveness o human

urce management in general8

1tatement o the Pro"lem

study and understanding o human "ehavior has posed a strong challenge to "oth the

archers and practitioners8 They have "een interested in fnding out the causes o human

avior8 The "ehavioral scientists want to fnd out why people "ehave the way they do8

ntifc management school o thought assumes that most people are motivated primarily "y

nomic rewards and emphasi?e the role o compensation and other incentives or increase in

ductivity8 The "ehavioral approach claim "etter physical environment and increased

nomic "eneft in themselves were not sucient motivators in increasing productivity and

ted to psychological and social orces8 !rgument is going on among practitioners whether

n is entirely a 61ocial man7 or an 6Economic man7 (Chandan- 0)

levels is one o the most important actors potential recruits consider when selecting

rnative employment opportunities and the amount o total compensation received "y

ployees relative to other opportunities they may have- has a clear e<ect on attraction and

ntion (Gome?J'e$ia and Bal*in- 0. as cited "y +ule"ohn and 'artoccio-0)8 Pay has a

ifcant impact on employee "ehavior- perormance and e<ectiveness in organi?ations8

wards and Gilman 0 as cited "y 5itsum Ghe"regiorgis and #arsten- .//)8 !ttracting and

ining competent employees are "ecoming a headache or many companies8 +i<erent



tegies may "e designed to do the same li*e improving the wor*ing condition- good

ployeeJmanagement relationship- attractive compensation system- promotion opportunitiesN

h an increasingly educated wor*orce who desire more inormation a"out pay and "eneft

ctices- it will "e essential to communicate ar more e<ectively than today and e<ective

erstanding and acceptance o compensation policies lead employees to contri"ute their

4imum e<ort or the achievement o organi?ational o"$ectives8 =hen setting pay rates-

pensation managers must ta*e into consideration the employeesO perception o air- e&uita"le

pensation8 3egardless o its "eing one o the most critical actor or which an individual $oin

rgani?ation less attention has "een given to e4amining organi?ational mem"ersO evaluations

<erent compensation and "eneft pac*ages8 ! need e4ists to e4amine the employee’s

ceptions o the compensation and "eneft policy o their organi?ation and how employees

er in their perceptions (1chuster Q >ingheim- 0. as cited "y +ule"ohn and 'artoccio-

)8 Ta*ing into account the view o scientifc management- the pro"lem o the study was

t will "e the perception o employees towards the compensation and "eneft pac*age in some

cted government higher education institutions in !ddis !"a"a8

Purpose o the study

purpose o this study was to *now the perception o employees towards the compensation

"eneft policy in some selected Government higher education institutions in !ddis !"a"a8

study will cover "oth academic and administrative employees wor*ing permanently or the

cted institutions namely !ddis !"a"a %niversity- Ethiopian Civil 1ervice College- and

o"e College o Teachers Education8 Compensation generally defned as all orms o fnancial

nonJfnancial rewards employees receive in return or their service to the organi?ation8

efts are defned as an indirect reward- such as health insurance- vacation pay- or retirement

sions- given to an employee or group o employees as a part o organi?ational mem"ership8

he other hand- employee perception is defned as a process "y which individuals organi?e

interpret their sensory impressions in order to give meaning to their environment8 The

cifc o"$ectives are:

e4amine the perception o employees towards the compensation and "eneft policy o

e selected Government higher education institutions specifcally those ound in !ddis

"a8



identiy the type o "eneft that most and least avored "y employees

descri"e the level o involvement employees have in compensation and "eneft

sions and degree o communications a"out pay and "eneft practices8

identiy whether di<erence e4ist "etween employee characteristics such as gender-

&ualifcation- salary level- and wor* e4perience in perception towards compensation

"eneft policy8

sed on the fndings- to summari?e- conclude- and recommend alternative ways to

gn compensation and "eneft policy8

Theoretical perspective

mpensation decision is inLuenced "y internal and e4ternal actors8 nternal actors include

rnal e&uity- $o" evaluation- and individual reaction to pay8 E4ternal actors are those actors

side organi?ations mainly the e4ternal la"or mar*et condition- mar*et pricing- e4ternal

petitiveness- union inLuence- and government8 Compensation has an impact on various

man resources out comes li*e perormance- productivity- satisaction- attendance- retention-

attraction o employees8 1tudies show that there is a direct relationship "etween

pensation and these human resources out comes8

mpensation comprises fnancial and nonJfnancial components8 5inancial compensation can

ither direct or indirect8 +irect compensation includes wages- salaries- "onuses- and

missions8 The indirect compensations are di<erent orms o "enefts an employee receive

insurance plans- retirement "enefts- educational assistances- employee services- and paid

ences ('ondey and ;oe- 0/)

mpensation need to "e high enough to attract applicants to a position8 Pay level must respond

he supply and demand o wor*ers in the la"or mar*et since organi?ations compete or

ployees (=erther and +avis 0)8 !ttraction o employees is li*ely to "e inLuenced to some

ent "y individual pay policies and practices8 ,o" see*ers who have choices "etween two or

e $o" alternative might e4press an interest in $ust how their pay "e e4pected to increase in

e- i hired8

the most important actor or employees when choosing to leave a $o"N it is less o a actor

why they stay in a $o"8 =hen "ro*en down "y gender- attractive compensation is the top

on or staying in a $o" or men- while women ocus more on wor*ing relationships and

ra"le wor*ing hours8 ! gender "rea*down does not alter the results or why employees leave



"8 5urthermore- inade&uate compensation remains the top reason employees leave a $o"

urce: www8salary8com)8

3esearch Duestions

perception o employees towards compensation and "eneft policy is not clearly *nown

pite the organi?ation e<ort to design compensation and "eneft pac*age that can attract-

ivate and retain competent employees8 n carrying out the study- thereore- an attempt was

de to address and see* answer or the ollowing "asic &uestions:

hat is the perception o employees towards compensation and "eneft policy o their

pective institutionsS

=hich type o compensation and "eneft pac*ages perceived most avora"ly and least

ora"leS

s there a di<erence in perception towards compensation and "eneft policy "etween

ployee characteristics such as gender- &ualifcation- salary level- age stereotype-

wor* e4perienceS

oes the "eneft program updated and communicated periodicallyS

oes the compensation policy satisy the criteria or e<ectivenessS !de&uacy-

ness- e&uita"ility- "alanced- cost e<ectiveness- security- and incentive providingS

+efnition o terms

mpensation: The total o all rewards provided employees in return or their services8

efts: !dditional fnancial rewards other than "ase pay include paid vacations- sic* leave-

days- and medical insurance etc8

ty: =or*ers’ perceptions that they are "eing treated airly8 Compensation must "e air to all

ies concerned and "e perceived as air8

ception: the process "y which people select- organi?e- interpret- retrieve- and respond to

rmation rom the world around them

cy: General guidelines that ocus organi?ational actions

her education institutions: nstitutions that are charged with providing "achelor degree- and

duate degree award8

+elimitations and limitations

study was confned itsel only to selected administrative and academic employees wor*ing

ome selected Government higher education institutions ound in !ddis !"a"a namely- !ddis



"a %niversity- Ethiopian Civil 1ervice College- and #oto"e College o Teachers Education8

mitation o this study was that it didn’t assess the perception o employees longitudinally at

tiple states o la"or mar*et conditions and relative attractiveness o the vacancy- &ualifcation

mployees to include a wider variety o su"stantive and control varia"les in this study- and to

plement the vast num"er o employee’s perception across di<erent industries8

re is a possi"ility that the conclusions that will "e drawn nonJtransera"le to other felds due

he act that individuals that are attracted to frms with in education industry have uni&ue

racteristics that are not present in other groups and the convenient sampling method used8

3esearch 'ethodology

study o human resources management practices across organi?ation is "est accomplished

a narrow occupational category (3ynes and Boudreau 0)8 The study has chosen

ernment higher education institutions ound in !ddis !"a"a or two reasons8 5irst- an

&uately si?ed population o employees categori?ed into di<erent $o" categories availa"le in

is !"a"a8 1econd- it is one o the ast growing sector and e4periencing immense movement

mployees rom one university to the other or rom university to industry8

e o research design

study was underta*en "ased on &ualitative research design to ascertain the perception o

ployees towards compensation and "eneft policies and practices o the institutes8 Preliminary

th interviews were conducted with the selected employees to gain understanding o employee

ception and to assist in the development o &uestionnaires8 Duestionnaires were administered

sample o employees o selected Government higher education institution ound in !ddis

"a through convenience sampling techni&ue8

mple- population- and participants

stionnaires were administered to a sample o employees selected rom government higher

cation institutions in !ddis !"a"a namely- !ddis !"a"a %niversity- Ethiopian Civil 1ervice

ege- and #oto"e College o teachers education8 !ccording to 1e*aran (.//0) defnes a

ulation as 6the entire group o people- events or things o interest that the researcher wishes

nvestigate87

population or the study includes !cademic and administrative (Ethiopian) employees

uding teachers- directors- deans- department heads- secretaries- di<erent e4perts- guards-

arians- and other supportive sta< wor*ing permanently in the selected higher education



tutions8 ! convenience sample was used- which according to 9eary (.//) reers to a sample

articipants that are readily availa"le8 Through convenient sampling our campuses o !ddis

"a %niversity namely main campus- technology aculty(north)- college o science- College o

merce8 The participants were selected "ased on convenience including the availa"ility o

nteer to distri"ute the &uestionnaire8 nterview was conducted with human resource

nagement process owners o the respective institutes to gain the understanding o their

ception a"out the current practices o compensation and "enefts8 The total population o the

y is estimated to "e /..8

ry (.//-) defnes sampling as- 6the process "y which a researcher selects a sample o

icipants or a study rom the population o interest78 1ince compensation and "eneft pac*age

most similar across the institutions- so data collected rom some selected respondents can "e

icated and pro$ected or the rest o the employees as well8 'oreover- due to time and

ncial limitations and the nature o the population using the sample determination method

eloped "y Carvalho (0)- as cited "y >elalem (.//) a sample o 0/ employees were

cted rom the three institutions8 The ollowing ta"le shows the "rea*down o population

ge the small- medium- and large sample that can "e drawn or the study8

e08 1ample determination method

ulation si?e

mple si?e

all 'edium 9arge

/ 0A ./

0/ ./ A.

J./ 0A A. /

J// ./ / /

J0.// A. / 0.

0JA.// / 0. .//

0J0//// / .// A0

0JA/// 0. A0 //

/0J0//// .// // //

rse: (>elalem- .//: ssues and Challenges o 3ural =ater 1cheme: The Case 1tudy o Burayu)



a collection instruments- varia"les- and materials

nderta*e the study "oth primary and secondary data will "e collected8 1econdary data will

ollected rom di<erent sources including $ournals- "oo*s- periodicals- and online rom

rnet sources orm !ddis !"a"a %niversity li"eralities- Ethiopian Civil 1ervice College

ary- and private sources8

mary data was collected rom the participants using interview and &uestionnaire8 Jitem

ert scale e4cept or personal attri"utes- open ended response "o4es including the demographic

ect o the respondents- as*ing their gender- age- educational &ualifcation- salary scale(only

ge)- and their e4perience in the organi?ation in order to accumulate inormative data used to

how employees perceive compensation and "enefts rom 60 strongly agree7 to 6 strongly

gree78 Employees were as*ed to ran* di<erent orms o "eneft pac*ages so that the most

ored and least avored will "e *nown8

a analysis procedure

analysis "egins "y reporting inormation a"out the samples that returned and did not

rned the &uestionnaire8 The o"tained data were summari?ed organi?ed- ta"ulated- coded- and

y?ed using 1P11 08/ descriptive statistics8 Comparison o the percentages were made to

ertain the di<erence in perception in age group- gender- wor* e4perience- and $o" category

the type o compensation that is most and least avored8 The mean rating score was also used

resent the perception level toward the compensation and "eneft items listed in the

stionnaire8

1ignifcance o the study

present study contri"utes to emerging industry level perspective "y investigating the

tionship "etween the compensation and "eneft pac*age availa"le and employee’s perception8

compensation and "eneft pac*age provided "y the frm in the industry serves as the primary

ependent varia"le o interest and employee’s perception as dependent varia"le8 'oreover- it

ps the frms within the industry to understand the perception o employee’s towards

pensation and "eneft policy and the type o compensation and "eneft instrument "est

ored "y employees8 t also helps to modiy the pay policies and practices so that competent

ployees attracted to the organi?ation and voluntary turnover reduced8 'oreover- i the

difed compensation meets the aspiration o wor*ers productivity will increases and wor*ers

ome more and more sta"le8 Employees dissatisfed with pay either prepare to leave the



ani?ation and even i they stay negatively react to their and the organi?ation as a whole (1ara

Bar"er- 0/)8

pite the perceived importance o pay policies and practicesN very little empirical research has

mined the lin* "etween employee’s perception and compensation and "eneft policy and

ani?ational outcomes8 This study adds to the e4isting "ody o *nowledge in several ways8

- it places the theory in "roader conte4t8 8e8 compensation as a whole rather than only ew

"utes o compensation system8 1econd- studying the perception o employees towards

pensation and "eneft policy industry level complements the traditional approach and the two

spectives together contri"ute towards the integration o theory and research and advance the

wledge o human resource management8 Third- it initiates researchers in the many

ensions o the study8

ernment directly or indirectly a<ects compensation through wage control and guidelines8

erstanding the relationship "etween employee’s perception and compensation and "eneft

cy helps the government in di<erent ways8 t helps in esta"lishing wage control and

elines- which determine the minimum wage and overtime pay8 t eases the mediating activity

ween organi?ations and the la"or union representing the employees8

on tends to demand high pay level- "enefts- and improved wor*ing condition8 The result o

study assist union in push their employers towards the compensation element that is highly

red or the employees it represents8 !nother importance is it contri"utes towards the

ination o dispute and the disagreement "etween frms and the la"or union representatives8

/8 rgani?ation o the paper

report is organi?ed into our chapters8 Chapter one deals with introduction- chapter two deals

the review o the related literature- chapter three deals with the presentation- analysis and

rpretation o data- and fnally chapter our contains summary o fndings- conclusions- and

ommendations8

pter Two

terature 3eview

!n ver Iiew Compensation

ployees are the "ac*"one o an organi?ation8 The attainment o organi?ational o"$ectives

ely depends on the motivation o employees to wor*8 !mong other things employees are

ivated to wor* when they are provided a air fnancial and nonJfnancial compensation or



ice rendered to the organi?ation8 6Compensation is the reward employees receive in

hange or their perormance8 t is concerned with wages and salaries- pay raises- and similar

Jmonetary e4change or employee’s perormance7 (Holt- 0A)8 =ell designed compensation

em ena"les organi?ations to attract &ualifed employees re&uired and retain and motivate the

ting wor* orce towards goal achievement8 The most o"vious reward employees get orm

* is pay (+ecen?o and 3o""ins- 0)

he contrary- i compensation is not tied to wor*- employees are li*ely to loo* or "etter

ng $o"8 'oreover- where employees are dissatisfed with the type o compensation- their

tri"ution towards goal attainment tends to "e lower8 n severe cases- pay dissatisaction may

er perormance- causes stri*e- increase grievance- and leads to orms o physical or

chological withdrawal ranging rom a"senteeism and turnover to increased visit to dispensary

poor mental health (=erther and +avis- 0)8

o"$ectives o compensation system is to create a system o reward that is e&uita"le to

ployers and employees ali*e- so that employees are attracted to wor* and motivated to do

d $o" or the employer8 Through e<ective compensation =erther and +avis (0) has

tifed the ollowing seven o"$ectives: !c&uire &ualifed personnel- retain current employees-

ure pay e&uity- reward desired "ehavior- control cost- comply with legal considerations- and

itate understanding8

Types o Compensation

eneral- there are two types o compensation: These are

08 5inancial compensation

ncial compensation includes direct compensations- which is paid to employees in the orm o

es- salaries- "onuses- and commission in e4change or their perormance and indirect

pensation in the orm o insurance plans( lie- health- social assistance)- 3etirement "enefts-

cational assistance- employee services- and paid a"sence or vacation- holydays- sic* leave-

('ondey and ;oe- 0/)

.8 ;onJ 5inancial compensation

J 5inancial compensation includes any satisaction which employees receive rom the $o"-

h as the need or recognition- responsi"ility- personal growth and the li*e or rom



ronment in which they wor* including comorta"le wor*ing condition- competent

ervision- pleasant wor* companion and other related physical and social needs o

ployees('ondey and ;oe- 0/)8

Compensation 1trategy alternatives

mpensation is an e4pense in the sense that it reLects the cost o la"or ('ondey and ;oe-

/)- oten governed "y compensation policies8 !s organi?ation di<er in si?e and purpose- so

n pay level8 Gluec* (0F) has identifed three alternative strategies8 These are:

highJpayJlevel strategy: under this strategy organi?ations choose to pay higher than the

rage pay level that the mar*et pays8 The assumption is that a higher salary or wage will

"le organi?ations attract and retain competent employees and this- in turn enhances

ployee’s productivity8

lowJpayJlevel strategy: n this alternative- the organi?ation pays a minimum salary or wage

mployees8 This may "e "ecause a poor fnancial condition or the wor* doesn’t re&uire highly

ifed personnel8

compara"leJpayJlevel strategy: This strategy re&uires organi?ations to ollow 6e&ual pay or

al wor*78 n this strategy employees are paid "ased on compara"le value o $o"s they are

orming within the company andKor the mar*et8

ndirect compensationKBenefts

rect compensationK"enefts are paid or "eing mem"er o the organi?ation8 t provides

ection against health and accident related pro"lems and ensures income at the end o one’s

* lie8 5or e4ample- in %nited 1tates legally re&uired "enefts includes social security-

mployment compensation- and wor*ers compensationN private programs includes health care-

and disa"ility insurance8 3etirement income is provided through pension and saving plan8

eft programs also includes pay or time not wor*ed ( or e4ample- vacation- holydays see*

es and a"sence pay- "rea*s and wash up and clean up time(3andal- 0)

ording to 3andal (0)- "enefts provide frms the opportunity to attract and retain valued

ployees8 He identifed several reasons why organi?ations pay much money into "eneft

grams8 These include:

tracting good employees

crease employee morale

educe employee turnover



crease $o" satisaction

otivate employees

hancing the organi?ations image among employees and in the community

a*e "etter use o compensation +ollars

08 Beneft !dministration issues

ough organi?ations tend to view indirect compensation as a reward- recipients do not always

it that way8 This causes organi?ations to "ecome concerned with their pac*age o indirect

pensation and "enefts and how they administer (3andal 1- 0)8 The issues include:

0808 +etermining the compensation and "eneft pac*ages

compensation and "eneft pac*ages should "e selected on the "ases o what is good or

ployees as well as the employer8 ten *nowing employees preerence can determine which

efts should "e o<ered8 There are series o internal and e4ternal actors that inLuence

pensation and "eneft decisions8

ording to vancevich and Gluec*- (0)- government directly a<ect compensation and

efts through wage control and guidelines which prohi"it an increase in compensation or

ain wor*ers at certain times- and laws directed at the esta"lishment o minimum wage rate-

e and hour regulations- and prevention o discrimination directed towards certain groups8 ts

n concern is to ensure the fnancial compensation support the social and economic interest o

"roader society (1carpello and 9endvin*a- 0)8

ther important e4ternal inLuence on an employer’s compensation program is the la"or

oni?ation8 %nions have an e<ect whether or not the organi?ation’s employees are unioni?edN

on tended to "e pacesetters in demand or pay- "enefts- and wor*ing condition and a<ect the

rall compensation policy o organi?ations (vancevich and Gluec*- 0)8 ts main concern is

rotect- maintain- and increase the welare o wor*ers ((1carpello and 9endvin*a- 0)8

ording to Gluec* (0F)- the num"er and type o employees indicated in the organi?ation’s

man recourse planning mainly drawn rom la"or mar*et8 1ince the mar*et directly a<ects the

Jlevel- analysis o the demand or supply o la"or is a"solutely necessary8 n times o ull

ployment- wages and salary may have to "e higher to attract and retain enough &ualifed

ployeesN in depression- the salary may "e reduced since the organi?ation’s a"ility to pay

ted as a result o the depression (vancevich and Gluec*- 0)8

ording to vancevich and Gluec* (0) the nature o the tas* a<ects compensation primarily



he method o payment or the $o"- such as the payment or the time wor*ed or incentives8 ne

he most signifcant actors in compensation is the nature o the employee and how

ployee’s attitude and preerence directly a<ect perormance and pay structure8 rgani?ations

ear to attri"ute similar value or similar $o"s and di<erent values to di<erent $o"s8

ani?ation pay or the value they attach to certain duties- responsi"ilities- and other $o" related

ors ('ondey and ;oe- 0/)

08.8 Providing "eneft Le4i"ility

en employees participate in the designing o "enefts pac*ages "oth the employees and the

pany "etter o<8 Changing employee needs and values give impetus to more Le4i"le

pensation system8 5le4i"le compensation system provides the option to choice what to

sume "ac* in the hands o employees8 (1chiemann- 0F)8 The lin*age "eneft to motivation

y not e4ist unless the "enefts o<ered are tailored to the specifc needs o the wor*ers8

itional "enefts administration treating "enefts as mem"ership "ased may not generate the

eased productivity li*e that o Le4i"le "eneft options8 (+ecen?o and 3o""ins- 0)8

08A8 Communicating the "eneft pac*ages

viding "eneft Le4i"ility is good not only "ecause it gives employees what they are more

y to want "ut also it ma*es them aware o the "eneft they are gaining and there"y not only

ease their morale "ut also their commitment to the organi?ation8 employees have no

wledge o their "enefts there is a little reason to "elieve the organi?ations "eneft program

ctives will "e attained8 Communicating the "eneft pac*ages and providing employees with

eft Le4i"ility increase the positive impact o indirect compensation8 To communicate total

pensation to employees- some organi?ations use annual "eneft summary to provide a

ailed list o costs incurred "y the organi?ation to retain- train- support- and reward a mem"er

hat organi?ation (3andal- 0)8

mmunication is a ma$or element in this entire compensation and "enefts decision process8

y employees are unaware o employer e<orts8 !lso- many employees do not understand how

r usage patterns ultimately a<ect cost8 Hence- employee education is a ma$or gap that

ains to "e flled in most organi?ations 85inallyN tomorrowOs systems will "e highly dependent

n e<ective understanding and acceptance o compensation policies8 =ith an increasingly

cated wor*orce who desire more inormation a"out pay and "eneft practices- it will "e

ential to communicate ar more e<ectively than today (1uddarth- et al8 (0) as cited "y



emann- 0F)8

most technically sophisticated payment plan can generate desired employee reactions or

ctly the opposite8 The actual e<ect depends on whether the rationale or the payment plan is

erstood and accepted and whether employeesO perceptions o the acts upon which the

onale is "uilt (e8g8- the companyOs fnancial health- the pay o employees in other $o"s or

ani?ations) are the same as the perceptions o those charged with seeing that the payment plan

the intended e<ects8 (lsen et8al8 0)8

Compensation Policy

mpensation policy is derived rom organi?ational strategy and its policy on overall human

urce management8 n order to ma*e compensation management to wor* e<ectively- the

ani?ation should clearly speciy its compensation policy- which must include the "asis or

ermining "ase compensation- incentives and "enefts and various types o per&uisites to

ous levels o employees8 The policy should "e lin*ed with the organi?ational philosophy on

man resources and strategy8 rgani?ations needs develop policies as general guidelines to

vide or coordination- consistency- and airness in compensating employees8 (1ource:

:KKwww8ioma8com)

re should "e a written policy on compensation related matters including the determination o

t- when- and how they pay and related issues computed8 !ccording to Gary +essler(0)-

er compensation policies includes the amount o vacation and holyday pay- overtime pay

cy- method o payment( i8e8 wee*ly- "iwee*ly- monthly) etc8

Compensation and Benefts 'odel

emann- (0F) in his article descri"ed that employers o"viously have myriad goals that vary

m one organi?ation to another8 However- there are a num"er o common goals that transcend

t organi?ational "oundaries: profta"ility (e4cept in nonproft organi?ations)- longevity-

wth- and mission8 5or most organi?ations- this implies an e<ective use o la"or8 The cost o

r continues to "e a ma$or varia"le in the cost e&uation o most organi?ations8 Employers

ve to ma4imi?e la"or output (in all orms) while minimi?ing the la"or costs necessary to

erate the output8 The ma$or la"or costs come rom direct and indirect orms o compensation-

ally wages and ringe "enefts8 'oreover- there are other costs that must "e considered as

: recruitment- selection- training- occupancy- and separation costs- or e4ample

ma4imi?e organi?ational goal attainment and productivity- it is crucial or most employers to



eully evaluate "oth la"or costs and output in all orms8 That is- most employers wish to

rove output (individual perormance levels- &uality o products and services- waste

uction) more rapidly than they increase their costs to deliver the output8 This implies the use

ompensation and "eneft policies that improve output yields while controlling costs8

ctically- this means enhancing employee motivation- attitudes- and perormance at costs that

less than the gains rom increasing la"or output8 5or e4ample- i increases in compensation in

orm o wages and "enefts reduce unwanted employee turnover at a cost that is less than the

r replacement cost- then the investment might prove valua"le8

ther e4ample might "e in recruitment8 a certain employer sponsors a child care program as

o the ringe "eneft pac*age- then presuma"ly some employees would "e more li*ely to

* or this organi?ation instead o its competitors (which do not have this "eneft)8 this

eft were to reduce recruitment costs ("y increasing recruitment rates)- increase employee

mitment- and reduce turnover- the costs or such a program might improve overall

ductivity8 The ollowing fgure shows the orces that have an impact on "eneft policy today8

re0: Compensation and "eneft model (1ource: =illiam !8 1chliemann8 (0F)8 The mpact

orporate Compensation and Beneft Policy on Employee !ttitudes and Behavior and

porate Profta"ility8 ,ournal o Business and Psychology- Iol8 .- ;o8 0- pp80/)

Employees !ttitudes toward Compensation and Benefts

posedly- increasing levels o "enefts should "e satisying to most employees8 However-

ent data (1chiemann- 0F) indicates that employee attitudes toward "enefts have not *ept

e with increases in employer contri"utions to "eneft plans8

08 !ttitudes toward Pay

ording to 'organ Q 1chiemann- (0) employee attitudes toward pay show decreases in

ora"le pay ratings among managers- e4empt- and none4empt employees8 These downturns are

"uted to diminishing pay increases (due to lower inLation and lower merit increases)N poor

or perormance relationships- and poor employee understanding o how pay is determined8

ployee needs

ployer needs

ernment

ulation

eft +esign



ge design

ployer Goals

ployee:

saction

ductivity

ence

nover

ruitment

cutive reward

or Cost Control

ora"le Ta4 mpact

mum ris*

t 9egal

uirements

mmunication

eover- organi?ations are acing a pro"lem with their perormance appraisal8 ! recent study

ws that the standards against which employees perormance are $udged are vague and highly

ective8 Hence- the lac* o clarity and o"$ectivity o the criteria used to measure the

ormance o the employees creates role am"iguity- conusion and rustration among the

*ers to underta*e their $o"8 !s a result- the ma$ority o the respondents &uestioned the

lity and appropriateness o the current orm used to measure the perormance o wor*ers to

erta*e administrative decisions8 Hence- at least- employees do not perceive that their

ormance is measuredN they "elieve that the perormance record does not reLect their true

ormance8 (>elalem Bayisa- .//F) 8!nother pro"lem is the lac* o good communication

arding the relationship "etween the appraisal and su"se&uent pay8 5urthermore- annual

raisals without continual supervisory eed"ac* are unli*ely to "e e<ective in esta"lishing

urate eed"ac* regarding a su"ordinateOs location in the perormance distri"ution8 1till another

se o low pay or perormance ratings is the relatively small spread in merit increases8 (Teel-

as cited "y 1chiemann- 0F)8

.8 !ttitudes toward Benefts

tudes toward various "enefts di<er su"stantially8 The most avora"ly rated "enefts are



ft sharing- savings plans- and stoc* purchase plans8 The least avora"ly rated "enefts are

sions- disa"ility (short and long term)- and sic* leave (or some $o" groups)8 !l though M

mployees rate medical "enefts as the most important "eneft they receive- only FM rate

th insurance avora"ly8 'oreover- /M or ewer rate dental- sic* leave- and disa"ility

rance avora"ly8 5urthermore- some o the most e4pensive "enefts (pension and health

ted "enefts) are not rated most avora"lyN in act- pension plans are rated avora"ly "y only

o the employees having retirement programs (=hite Q Bec*er- 0/ as cited "y

emann- 0F)8

emann (0F) stated that historically- these ratings do not vary dramatically across $o"

ups- se4- or di<erent age groups8 5emales and older employees (with higher tenure) are

ewhat more avora"le than their counterparts- "ut they do not di<er su"stantially in the

efts that they rate most avora"ly8 =ith respect to tenure- newer employees (those with

ure under one year) rate their "enefts most avora"ly- ollowed "y periods o declining

ngs- which then turn upward ater 0 or so years o service8 The avora"le ratings during early

rs pro"a"ly reLect a UhoneymoonU period- and the more positive ratings o longer tenured-

r employees reLect greater usage patterns (or health "enefts)- more accrued "enefts (e8g8-

ation- savings- stoc*)- and a reali?ation that they will pro"a"ly "e with this organi?ation until

ement (and thereore- some rationali?ation o "eneft &uality)8

s- it appears that employers are not receiving the value in employee satisaction with "enefts

current e4penditures might warrant8 1ome o the most e4pensive "enefts are the least

ora"ly rated8 n surveys conducted "y He<eran- (0) across organi?ations in various

stries- pensions and health coverage are the two "enefts that employees most want to see

roved8 Clearly something is wrong given that these two "enefts represent the largest and

est growing e4penditures or most employers (1chiemann- 0F)8

pter Three

a Presentation- !nalysis- and nterpretation

ntroduction

chapter presents the presentation o data- analysis- and interpretation8 t e4plores short

ory o higher education in Ethiopia and institutions under the study8 t also summari?es the

mographic profle o respondents and the &uestionnaire distri"uted and the response rate8 The



ception o employees towards the items included in the &uestionnaire and comparison o the

ception items and employee characteristics including the gender- age- educational

ifcation- $o" category- and wor* e4perience will "e presented8 Employee’s rating o salaries

"enefts as well as ran*ing o the "eneft pac*age instruments included under this chapter8

her education is crucial or the production o vital human resources- such as teachers-

thcare proessionals- lawyers- engineers- managers- "usinessmen- and researchers critical or

oJeconomic development o a nation8 1ecular higher education in Ethiopia started in

0/s and has "een e4panding "oth in pu"lic and private sector (>enawi- .//F)8 Higher

cation system in the country is rapidly e4panding "oth in the num"er o universities and

ent inta*e8 The num"er o pu"lic universities has grown signifcantly in recent times8 n

F- the pu"lic higher education sector consists o .0 universities ( old and 0A new ones)8 The

struction o additional 0/ universities in di<erent regional states is underway under the direct

ervision o the Ethiopian 'inistry o Education8 There are also three speciali?ed institutions

er di<erent Ethiopian government ministriesKagencies8 There are also eight teacherJtraining

eges under the supervision o governments o the regional states (#asirim- .//)8

total pu"lic university enrollment or the year .//K.// was a"out F-/// in regular

ergraduate programs8 8 E4pansion in enrollment "etween .// and .// was around M in

ergraduate program8 n addition- total enrollment in graduate programs in .//K.// was

ut //- which was an e4pansion o //M in less than three years8 The dramatic increase in

*e was the result o the esta"lishment o 0A new universities in di<erent regions o the

ntry and also the e4pansion wor*s in the already esta"lished universities('inistry o

cation- .//.)8 5or the purpose o the study three higher education institutions ound in !ddis

"a were selected namely- !ddis !"a"a %niversity- Ethiopian Civil 1ervice College- and

o"e College o Teachers Education8 1hort description and sta< profle o each institution is

sented "elow in ta"le .8

is !"a"a %niversity- the frst and the oldest higher learning institution in the country- has

n engaged in teaching Vlearning- research and community services8 t has "een playing a

tal role in producing trained manpower or more than hal a century8 t was ounded on

ch ./- 0/ at the re&uest o Emperor Hiale 1ellasie as a two year college- the then !ddis

"a %niversity College8 t started operation with aculty o arts and science and an enrolling

acity o AA students8 Today ('ay ./0/)- !ddis !"a"a %niversity (!!%) has over /-///



ents in its regular and continuing education program (www8aau8edu8etK the research and

duate programs inormer)8

admitted its frst graduate student in 0F8 Currently- it has 0 masters and 0A Ph+

ent enrolled in its various programs8 The program has also e4panded rom only a ew thirty

rs ago to 0/ in Ph+- masters- specialty- and su"Jspecialties8 =ith regard to employees- !!%

currently has a total o .0F o academic and .F administrative sta< e4cluding e4patriates

employees other than academic and administrative category8

Ethiopian Civil 1ervice College started operation in 0 "ut was ormally esta"lished in

ruary- 0 as an autonomous institution with legal status "y the Council o 'inister

ulation ;o8 AK08 1ince esta"lishment- the College has contri"uted immensely in

eloping the capacity o the Ethiopian Civil 1ervice through education and training8 'ore

cifcally- the College aims at "uilding the capacity o the civil service at "oth ederal and

onal levels through speciali?ed education- training- research and consultancy programs and

ices ( www8ecsc8edu8etK inormation "ulletin)8

College has si4 institutes namely institute o pu"lic management and development studies-

tute o ur"an development studies- institute o ederalism and legal studies- institute o ta4

custom administration- institute or certifcation o accountants and auditors- and institute o

ance and virtual learning8 The institutes o<ering short courses- underJ and postJgraduate

grams- research and consultancy services- with delivery modalities ranging rom regular to

ning to distanceK virtual (print and technologyJassisted)8 n the "asis o the BP3 study

ted activities have "een "rought under the relevant institutes8 Thus- or e4ample- the nstitute

Ta4 and Customs !dministration carries out all the education- short term training- and

arch and consultancy activities in the sector8 The current total sta< is around F/ e4cluding

atriate sta<s where ../ academic and administrative sta<8

e"e College o teachers’ education is one o the oldest higher education institutions in

opia8 t was esta"lished in 0. "y training into diploma or certifcate8 t started operation

felds o study including English- Ethiopian language and literature- health and physical

cation- mathematics- Geography- and history8 t provides training in regular- summer-

ension- and evening programs8 Currently the college increase num"er o departments and "oth

iploma and frst degree level8 The inormation o"tained rom human resource unit o the

ege shows that the total num"er employees o the college is A/. o which 00 academic sta<



the remaining administrative sta<

e.8!cademic and administrative sta< profle o each institutes

rce: Human resource department o the institutions under study

s fgure includes all employees "elow grade 0.th

his fgure contains male and 0/. emale

s fgure total academic sta<- the "rea* down was not really availa"le

rder to understand the perception o employees towards the current compensation and "eneft

cy structured &uestionnaire were distri"uted to "oth academic and administrative employees

*ing in the institutions under the study8 The &uestionnaire distri"uted and the response rate

m each institution is shown in the ta"leA "elow8

'!K'1c B!KB1c +ip8K!dv8

oma

ifcate /J0.

l

' 5 ' 5 ' 5 ' 5 ' 5

demic sta<

is !"a"a %niversity A A 0 F0 /F 0. 0FA .0F 0 0. 0A .0F

opian Civil 1ervice

ege

00A 00 . 0 0 A A J J ../

e"e College o Teachers

cation

J J J J J J J J J 00

demic sta< total A . A 0A 0. .AA F 0. 0A .A

ministrative sta<

is !"a"a %niversity J J 0 0 ./ A/0 0A ..0 W

0W

opian Civil 1ervice

ege

J F. F F 0. 0

e"e College o Teachers



cation

J J J J J J J J 0AWW

ministrative sta< total F 0 F / .FF AF 0/ . F0A 0A/F AF

nd total A 0 A 0/ .. 0. 0F .. F. 0A./ /..

eA8Duestionnaire response rate "y institutions

rce: !ppendi4 !

ording to 1e*aran (.//0)- a response rate o thirty percent is accepta"le or most studies8 The

ponse rate or this study was M which is sucient8 +emographically the respondents were

ed to classiy themselves according to the category o their $o"s as academic and

ministrative- their &ualifcation- and length o service at their institutions- gender- and age8

&uestionnaire consists o three sections8 1ection 0 ocused demographic inormation o the

pondents- 1ection . ocus on li*ert’s rating o perception items- 1ection A considers additional

stions and open ended &uestions8 ! copy o the &uestionnaire is included in the !ppendi4 !

his paper8

+emographic profle o respondents

erms o length o service at the institution- Mt o the respondents had wor*ed or the

tution ewer than fve years and- .8FM "etween and 0 years- and the rest a"ove ./ years8

M o the respondents were male- .M were emale8 ! respondent was younger than . years-

0M were "etween .JA years- 8M were "etween AJ years- and 8AM were over the age

8 3egarding &ualifcation- 08M o the respondents had the Ph+- F8AM were .nd degree-

M were 0st degree- 8AM were college diploma- and 8AM were "elow 0. grade8 n terms o

$o" category in their institution- A8AM o those responding rom !cademic while the rest

ministrative8 The ollowing ta"le shows the detail8

tution ;um"er o &uestionnaire

ri"uted

m"er and percentage

rned

ddis !"a"a %niversity (F8FM)

thiopian Civil 1ervice

ege

AA(M)



oto"e College o

chers Education

(8AM)

l 0/ (M)

e8 The demographic characteristics o the respondents

racteristics

der (nX)

e

ale

cation (nX)

h school complete

hnical school graduate

ege diploma

B1c degree

ters degree

ersW

(nX)

er .

A

nd a"ove

* e4perience(nX)

0

A/

ve A/

ry level(nX)

s than //



J0.//

0JA///

0J///

0J///

ve ///

present respondents with educational &ualifcation is "elow grade 0.8

rce: !ppendi4 !

re.: Gender distri"ution using graph

e 5emale

m"er (M)

FM)

.M)

M)

/M)

AM)

0/8M)

F8AM)

08M)

AM)

/M)

.80M)



A8M)

.8/M)

AM)

8M)

(.0M)

./8M)

(00M)

M)

AM)

0M)

0/8M)

F8/M)

.M)

M)

re. indicates the gender distri"ution o the sample o respondents rom the

ch the study was conducted8 !s can "e seen rom the fgure- the ma$ority o the sample (n X

or FM was male- while the remaining

reA: Presents the respondents

an "e seen rom fgureA the ma$ori

s o A and years8 This category is ollowed "y the age group

respondents’ all- .8/M was

ge and only one respondent (0M) was under .

re: Graphical presentation o &ualifcation



er . .JA

h

ool

hincal

ool

ege

loma

M (n X .) comprised o emale respondents8

pondents’ responses with regard to their ages

ority o respondents in the sample A8M were

A- into which

ween the ages o and years- 8AM were over

J and a"ove

B1c 'asters

ee

others



tutions at

e "etween the

0M o

years

n "e seen rom 5igure that

wed "y respondents with a Ph+ degree (

M- 8AM with college diploma and another 8AM "elow grade 0.

he has technical school graduate

re: provides a graphical representation o the distri"ution o the sample "ased salary

re indicates that the salary level o

0/8M (n X 0/) are "etween 0./0

they are "etween //0 and ///8 008M (n X 00

re: provides a graphical representation o the year o e4perience o the sample8

re indicates that the ma$ority o the respondents-

tution or less than years- while .

/ //J0.//

years Jyear 0/



AM o respondents o the sample has master’s degree

M) and those with a B!KB1c

ma 0.8 ne respondent indicate

cational &ualifcation8

M (n X F0) o the sample are "etween A//0 and ///

0JA///- whilst 8M (n X ) o the respondents indicated

are "elow 0.// "irr8

M (n X )- have wor*ed or

M (n X .08) have wor*ed or their institutions

0JA/// A//0J/// //0J/// ///and a"ove

0 years ./JA/ years A/ and

ve

ree8 This is

ree constitute

ale

eir

J

rs8 TwentyJone percent (.0M- n X .08) o the respondents have wor*ed or their institution

ween 0/ and 0 years- 00M (n X 008) have wor*ed or the organi?ation "etween ./ and A/

rs8

collected data were entered into a data"ase and analy?ed using 1P11 08/ sotware8 used

m"er and percent to descri"e the personal characteristics and perceptions towards

pensation and "eneft policy among the su"$ects8 The mean rating score was also used to

sent the perception level towards compensation and "eneft policy among the su"$ects

he main orms which were used in the descriptive techni&ue were re&uency distri"ution and

percentage orms- and mean rating scores with aim o providing an overall view o

racteristics o the respondents and the perception towards items listed in the lic*ert’s scale8

tiJstage sample design was adopted 1election o institutions rom higher education ound in

is !"a"a- ollowed "y selection o colleges orm the institutions (the selection was made

m !ddis !"a"a %niversity (main campus- 5aculty o Technology aculty (north)- 1cience

lty- and College o Commerce)- Ethiopian Civil 1ervice college (main campus)- and #oto"e



ege o teachers education)- ollowed "y selection o 0/ respondents rom each colleges8

ed on the responses gathered rom the employees o the institutions- have grouped the items

he li*erts scale into our ma$or categories namely- e<ectiveness o compensation and

efts- compensation and "enefts decision and administration process- employees perception

ards overall compensation and "eneft issues- and perception towards pay mi4 and pension

8 !s it is indicated in the method part the &uestionnaires were designed using 9i*ert 1cale

re almost all the statements were measured on a fve point scale with 0 X strongly !greeN . X

eeN A X ;o opinionN X disagreeN and- X strongly disagree8 The inormation o"tained rom

&uestionnaire are summari?ed and discussed in the ta"le - - F- and "elow8

Employee’s perception o the e<ectiveness o compensation and "enefts

e items were used under this category8 These include perception towards compensation and

efts ade&uacy- compensation e&uita"ility- airness- compliance with government regulations-

ivation and incentives- attraction and retention- *eeping "alance "etween cost o employer

employees contri"ution- securing rom unemployment- and provision o opportunity to attain

interest8

e: Perception towards the e<ectiveness o compensation and "enefts

rce: !ppendi4 !

we can o"serve rom ta"le - a"out 8M o the respondents disagree or strongly disagree

the statement that Zthe current compensation and "eneft pac*age are ade&uate’8 nly 80M

he respondents agree or strongly agree whereas F8AM o the respondents have no opinion with

statement8 The mean rating score or the statement was 8A0 which is "etween disagree and

ngly disagree8 1imilarly- the ma$ority o the respondents (F8M) disagree or strongly

gree with the statement that Zthe current compensation and "eneft pac*age is air’ while

ut 0/8M o them have no opinion and .08/M o the respondents agree or strongly disagree

the statement and the mean rating was A8F8 'oreover- 08M o the respondents agree or

ngly agree with the statement that Zthe current compensation and "enefts is e&uita"le with

para"le government organi?ations’ 8However- the ma$ority o respondents F/8/M o the

m o perception

rt’s rating score

ngly !gree ;o +isagree 1trongly 'ean

ee opinion disagree rating



m"er (M) ;um"er(M) ;um"er(M) ;um"er(M ;um"er(M)

ompensation and "enefts ade&uacy

)

M)

0M) F(F8AM) .(.8/M) 0(A8M) 8A0

ompensation e&uita"ility(nX) A(A80M)

008M) 0(08M) A(/8M) .(A/8.M) A8/

ompensation airness(nX )

008M)

0/8M) 0/(0/8M) A(A8M) A/(A08AM) A8F

ompliance with Government regulations

)

.80M)

./8M) A.(AA8AM) 0(08M) A(A80M) .8

otivate and provide incentives or "etter

ormance(nX)

M)

0/8M) (8AM) .(A8M) A(A8M) 80

ttract and retain competent

ployees(nX)

M)[

.M) 0.(0.8M) .F(.80M) .(8.M) A8

eep "alance "etween government cost and

ployee contri"ution(nX)

M)

.M) 0(08FM) .(A/8.M) (F8M) 8/F

ecure employees rom "eing e4posed to

mployment(nX)

AM)

0/8M) .A(.8/M) ..(..8M) A(A8M) A8/

rovide opportunity to attain selfnterest(

)



0M)

0M) .(.80M) 0.(0.8M) FF(/8.M) 80

pondent disagree or strongly disagree with the statement whereas a"out 08M o them have

pinion and the mean score was A8/8

arding the statement Zthe current compensation and "eneft policy comply with government

ulations a"out hal (8M) agreeKstrongly agree- AA8AM have no opinion- and the remaining

FM disagreeKstrongly disagree with the mean rating o .8 which is "etween agree and have

pinion8 1imilarly- the respondents rate the statement Zthe compensation and "eneft pac*age

he government higher education institutions motivate and provide incentives or "etter

ormance8 008M o them agreeKstrongly agree with statement- 8AM have no opinion- and

M disagreeKstrongly disagree8

e also indicates that .8.M o respondents either disagree or strongly disagree with the

ement Zthe compensation and "eneft pac*age availa"le in their institutions is capa"le o

acting and retaining competent employees’8 0.8M o respondents decline rom e4pressing

r level o agreement- and 8.M o them agreeKstrongly agree with the statement and rate at

which is "etween no opinions and disagree8 n response to the statement Zthe compensation

em and "enefts o<ered *eep "alance "etween government cost and employee contri"ution’

M agreesKstrongly agree- where as F80M disagreeKstrongly disagree- and the remaining 08FM

e no opinion8 n the other hand- 08FM agreeK strongly agree with statement Zthe

pensation availa"le is capa"le o securing employees rom "eing e4posed to unemployment’-

M argue they disagreeKstrongly disagree- and .8/M have no opinion8 'oreover- the

pondents rate the statement Zthe compensation and "eneft pac*age o<ered "y your institution

vide opportunity to attain selJinterest (li*e "uilding house- "uying car- paying children

ool ee etc8)’ at 80 which is "etween disagree and strongly disagree8 The num"er o

pondents who either disagreeKstrongly disagree was (.8.M) o the total respondents8 nly

M agreeKstrongly agree with statement where as .80M have no opinion on the statement8

m this it is possi"le to iner that employees wor*ing in the selected institutions hardly "elieve

the current compensation and "eneft pac*age across their institutions is ade&uate8 t is

her implied that- the ma$ority o the employees don’t perceive the compensation and "enefts

y receive as air and e&uita"le with compara"le government organi?ations8 The analysis

ws that employees’ perceive the compensation and "enefts they o"tain rom their institutions



no let them attain sel interest8 They argued that the pay they receive is not even capa"le o

ering their "asic costs o lie8

Employee’s Perception a"out the compensation and "enefts decision and administration

cess

items included in this category includes periodic updating and communicating- employees

icipation- e4istence o written compensation and "eneft policy- periodic evaluation o

ctiveness- lin* to organi?ational strategic plan- *nowledge o source o inormation- and

"le "eneft options8

e: Perception towards compensation and "eneft decision and administration

rce: !ppendi4 !

e shows that ma$ority o the respondents (8M) either disagreeKstrongly disagrees

reas a"out 8AM showed no opinion- and only A80M agree with the statement that the

pensation and "enefts availa"le in their institution is periodically updated and

municated to employees8 The mean rating score o the item was 8AF which is ound on the

e "etween disagrees and strongly disagrees8 1imilarly- ma$ority o the respondents (F8M)

m o perception

rt’s rating score



m"er(M) ;um"er(M) ;um"er(M) ;um"er(M ;um"er(M)

eriodically updated and communicated

)

M) A(A80M) (8AM) A(AF8M) (08/M) 8AF

mployees participation in compensation

sion process(nX)

M) 0(0M) 0(0M) AA(A8M) 0(A8M) 8.

he institution has written compensation and

eft policy n (nX)

0/8M) ..(..8M) A(A8M) (8M) ./(./8M) .8

eriodic evaluation o e<ectiveness(nX) 0(0M)

M) (8AM) .A(.8/M) (F8FM) 8A



n* to organi?ation’s strategic plan(nX) A(A80M)

0M) AA(A8M) .(.F80M) A0(A.8.M) .8A0

nowledge o where to go or inormation

ted to "enefts(nX)

M) A(A80M) AA(A8M) .(.F80M) A0(A.8AM) A8F

nderstanding o how retirement "enefts

ulated(nX)

AM) F(F8AM) .(.F80M) .(.M) A0(A.8AM) A8F

rovision o Le4i"le "eneft options(nX) 0(0M)

M) (8.M) AF(A8M) .(8.M) 8.

gree or strongly disagree with the idea that employees participate in the compensation and

efts decision process and the rest either have no opinion or agree8 They rate this statement at

. which is ound "etween disagree and strongly disagree on the scale8 They urther contend

rather there is no time in which they participate in the compensation and "enefts decision

cesses8 'oreover- ma$ority o the participants do not agree with the statement that the

ctiveness o compensation and "eneft pac*age periodically evaluated8

h regard to the statement Zyour institution has written compensation and "enefts policy’

AM o the employees agreeKstrongly agree whereas A8M have no opinion on the statement-

A/8.M disagree or strongly disagree8 They rate this statement at .8 ound "etween agree

have no opinion8 n the other hand- employees do not "elieve that it lin*ed to organi?ations

tegic plan8 1ome A8M have no opinion- 8AM disagreeKstrongly disagree- and the

aining 8.M agreeKstrongly agree8 'oreover- the respondents do not agree with statement

employees *now where to go or inormation related to "enefts8 The mean rating o the

ement was A8F which lie "etween no opinion and disagree and 8M disagreeKstrongly

gree- A8M have no opinion- and only 80M agree8 Employees also argue that they do not

w how retirement "enefts calculated8 !ccordingly- F8AM disagreesKstrongly disagree-

0M have no opinion- and only 08M agree or strongly agree8 'oreover- the ma$ority o

pondents hardly "elieve their institution have Le4i"le "eneft pac*age8 !ccordingly- .8FM

greeKstrongly disagree with idea where as 8.M show no opinion- and only .80M agree8

m the analysis it is possi"le to iner that the compensation and "eneft pac*ages availa"le in

institutions under the study is hardly communicated to employees so that signifcant num"er



mployees show no opinion towards the statements institutions written compensation and

eft policy and lin* to its organi?ations strategic plan8

Employees perception towards overall compensation and "eneft issues

t items included in this part namely- perormance "ased payment- appropriate payment or

erience and &ualifcation- ade&uate payment or responsi"ility discharged- e<ect on

ployee’s productivity- comparison with private sector- potential or supporting and acilitating

ani?ational goals- gap "etween what is and what employees thin* should "e- and the need or

sion and rationali?ation8

eF: Perception towards overall compensation and "eneft issues

rce: !ppendi4 !

a"ove ta"le indicates that the ma$ority o the respondents (8M) disagreeKstrongly

gree- 8AM agreeKstrongly agree with the statement that Z am "eing paid "ased on may

ormance’ and only ew o the respondents agree with the statement8 'oreover- a"out 8M

he respondents disagreeKstrongly disagree with the statement that says Z!ppropriate payments

e4perience and &ualifcation employees have and a"out 8.M o the respondents agree with

statement- and the rest 8M have no opinion8 They rate the a"ove two statement at 8A and

A "oth within the scale disagree and strongly disagree respectively8 1imilarly- the ma$ority o

pondents disagreeKstrongly disagree (F80M) with statement Zthere is ade&uate payments or

ponsi"ility discharged’- 08M show no opinion- and only F8AM agreeKstrongly agree8

reore- there is a need to design compensation and "enefts ta*ing in to account the

ormance- e4perience- and &ualifcation o employees8 n the open ended &uestion as*ed to

gest the solution to the pro"lem availa"le in their institution they state that there should "e

m o perception 9i*ert’s rating score




ayments "ased on perormance(nX)

M) (8AM) 0(0M) .A(.8/M) A(8M) 8A

ppropriate payments or e4perience and

ifcation(nX)

0M) A(A80M) (8M) A0(A.8AM) 0(A80M) 8.A



de&uate payments or responsi"ility

harged(nX)

.M) A(A80M) 0(08M) A(A8M) AF(A8M) A8

ayments have positive e<ect on employees

ductivity (nX)

M) (8AM) (8.M) A(AF8M) (08/M) 8.

he "enefts are as good as private

or(nX)

M) 0(0M) /(/M) /(08FM) (8AM) 8/

upport and acilitate achievement o

ani?ational goals(nX)

.M) 00(008M) 0(08FM) A(/8M) .(.F80M) A8/

ompara"le to what employees thin*

uld "e(nX)

0M) (8.M) .(.80M) A(AF8M) 0(A80M) 80

eed to review and rationali?e pay structure

"enefts pac*ages(nX)

8FM) .0(.08M) F(F8AM) A(A80M) 0(08/M) 08A

erential pay system or di<erent proessions and e4periences- attractive position and house

wance8

hermore- a"out 8/M o the respondents disagreeKstrongly disagree- 8.M have no opinion-

the remaining agrees with the statement Zthe current compensation and "eneft pac*age has

tive e<ect on employee’s productivity’8 This implies the compensation and "eneft "eing

red to the employees have no positive e<ect and orce employees to loo* or additional

ployment outside their institution which they claim to have a negative e<ect on &uality o

cation- particularly academic sta< and the mean rating score was 8.8 n the other hand- the

ority o respondents (M) do not agree with the idea that the compensation and "enefts

la"le in their institution is as good as private sector8 nly .M o employees agree with the

and the mean rating was 8/ which is ound "etween disagree and strongly disagree8

elation with statement Zthe current compensation and "enefts are compara"le with what you

* should "e’ /8M o the respondents disagreeKstrongly disagree- F8AM agree and .80M have



pinion8 This implies there is a gap "etween employee’s e4pectation and the actual

pensation and "enefts8 'oreover- the ma$ority o respondents agreeKstrongly agree (8M)-

M have no opinion- and 80M disagree with statement Zthere is a need to review and

onali?e the pay structure and "eneft pac*ages’8 The mean rating score was 08A which ound

ween agree and strongly agree on the scale8

analysis shows that employees’ perceive that the current payment is not "ased on the

ormance o employee- do not consider the &ualifcation and e4perience o employees- and

compara"le what they thin* should "e8 Thereore- they need the respondents indicated that

e is need to review and rationali?e the compensation and "enefts8

Employee’s Perception towards pay mi4 and pension plan

category contains items related with pay mi4 and pension planning issues and respondents

ception8

e: Perception towards pay mi4 and pension plan

m o perception

rt’s rating score



m"er (M) ;um"er(M) ;um"er(M) ;um"er(M ;um"er(M)

iving more cash and letting pension

ning or the employees(nX)

0.8M) (8M) .0(.08M) AA(A8M) .0(.08M) A8.

ption to choose cash component against

J monetary "enefts(nX)

08FM) ..(..8M) 0(08M) ..(..8M) .0(.08M) A8/.

et employee plan their pension and e4it at

r will(nX)

0A8M) 0A(0A8M) 00(008M) 0(08M) /(08FM) A8AA

ay should ocus more on cash and let

ement planning or employees

.M) 0(08FM) A/(A08AM) .F(.80M) 0(08M) .8F0

ay pac*et ocus on cash than nonmonitory



efts(nX)

0M) (/8/M) .(.F80M) 0/(0/8M) (8M) .8.

mployee choose pay mi4 at the "eginning

he year(nX)

.8/M) .(A/8.M) .A(.8/M) 00(008M) (8AM) .80

rce: !ppendi4 !

e shows the items regarding the perception o employees towards the pay mi4 and pension

8 The ma$ority o respondents (8AM) disagreeKstrongly disagree with the statement Zgiving

e cash and letting pension planning to employees’- .08M have no opinion- and .08M

eeKstrongly agree with statement and the mean rating score was A8. ound "etween no

ion and disagree8 'oreover- 8M o the respondents disagreeKstrongly disagree with the

ement Zrgani?ation should give the option to choose cash component against nonJmonitory

efts’- A8M either agree or strongly agree where as 08M show no opinion8 The mean

ng score o the statement was A8/.8

hermore- 08 M respondents disagreeKstrongly disagree with statement Zlet employees plan

r pension and e4it at their will’- .FM agreeK strongly agree- and 008M have no opinion8 The

n rating o the statement was A8AA which is ound "etween no opinions and disagree on the

e8 1imilarly- 8M disagreeKstrongly disagree with the statement Zpay should ocus more on

h and let retirement planning or employees’- A08AM have no opinion8 However- ma$ority o

pondents (A80M) agree or strongly agree with the statement Zpay pac*et should ocus on cash

n nonJmonitory "enefts- .F80M have no opinion- and only 08M disagree8 5inally-

pondents argue strongly towards the statement ZEmployee chooses pay mi4 at the "eginning

he year’ and the mean rating was .80 which is "etween agree and no opinion8 The ta"le

ws 8.M agree or strongly agree .M have no opinion- and 08M disagreeKstrongly

gree8

a"ove description indicates that generally employees argue against letting pension planning

employees8 But- need pay pac*et is more o cash and Le4i"le "eneft pac*age8

Employee’s rating o salaries and "enefts

owing ta"le shows the response o employees to the &uestion as*ed to rate the current

pensation and "eneft pac*ages8

e: Perception towards rating o salaries and "enefts



rce: !ppendi4 !

t can "e o"served rom the a"ove ta"le almost all respondents rate the current salary and

efts either unavora"leKmost unavora"le and the mean rating was 80 and 8.0 respectively8

M o the respondents rate the current salary as either unavora"le or most unavora"le- 8.M

e no opinion- and only F8AM rate it avora"le8 1imilarly- /8M rate the "eneft pac*age as

avora"leKmost unavora"le- 8AM show no opinion- and the remaining A80M rate it avora"le8

mean rating score was larger or "enefts than salary and respondent’s response in the open

ed &uestionnaires also support this claim8 They argued that the current allowances received

er than the "asic salary li*e house- transportation- position allowances are not enough8 The

wing graph provides graphic presentation o the response8

m o perception

rt’s rating score

t 5avora"le ;o %navora"le 'ost 'ean

ora"le opinion unavora"le rating


he current salary (nX) /(/M) F(F8AM) (8.M) .(8M) .A(.8/M) 80

he current "enefts pac*ages(nX) /(/M)

0M) (8AM) (F8M) 0(.8FM) 8.0

reF8 Provide graphic representation o the percentage o ratings o salary and "enefts

Employee understands o how compensation and "eneft instruments are determined

ployees were as*ed whether

ermined8 !s the ollowing ta"le depicts- ma$ority o the respondents (F.8M) said that they do

have the understanding o how the compensation and "eneft instruments are determined and

0M o the respondents replied that they do understand8 This response is a clue or the or

pensation and "eneft decision ma*ers that education and training re&uire

ployees *now how it is determined

e0/: Employees understanding o how compensa

rce: !ppendi4 !



t avora"le 5avora"le

stion

you have clear understanding

ow compensation and "eneft

ruments are determined

ey understand how compensation and "eneft instruments are

ermined8

pensation and "eneft instruments

opinion %navora"el 'ost

avora"le

F

ponse 5re&uency

.

F/

l

uired to ma*e

determined



ry

efts

entage

0M

M

M

re: Graphic representation o the num"er o respondents

understand how compensation

ermined8

m fgure it can "e o"served that the ma$ority o

pondents (F.8/) do not understand how compensation and

eft instruments are determined where as the remaining .FM do understand8

uced that management needs to educate and communicate compens

pondents claim that they do not have clear understanding regarding "eneft8

ployees were as*ed to speciy the "eneft they have received so ar among those specifed in

&uestionnaire including insurance policies(health- l

ning- see* days- vacation- holydays etc)- legal advice- child and elderly care- social security

saving plan8 The response indicates that tangi"le num"er o respondents even does not

erstand the availa"le "enefts8 This implies management should communicate periodically

ut the availa"le "enefts and its o"$ectives8

e00: Employees response regarding the "enefts received so ar

rce: !ppendi4 !

stion

ch o the ollowing "enefts you have

eived so arS

surance policies (health- lie- disa"ility)

aid leaves (leave or training- see*

s- vacation- holydays etc)-

egal advice-

hild and elderly care-

ocial security and saving plan

sentation and "eneft instruments are



pensation and "eneft issue8

disa"ility) paid leaves(leave or

ts8 The response is shown "elow

sponse

leaves Paid leaves and social

urity

e 5emal

e 5emale

/M

m it can "e

n ie- ;one o the

efts

e 5ema

M

re: indicates the graphic representation employees decision regarding the "enefts they

e received

Perception towards the avora"leness o salary and "enefts

the &uestion as*ed to speciy the "est and least avored among the "enefts listed in

rument and others that can "e added "y the respondents

ored and F8.M choose child and elderly care

detail o the responses8



e0.: indicates employees perception towards the "est and least avored "enefts

eft instruments

rance (Health- lie- disa"ility)

leaves (Training- vacation-

* day etc)

al service

d and Elderly care

al security and saving plan

rce: !ppendi4 !

leaves

leaves and social

.M chose paid leaves

he least avored8 The ollowing ta"le shows

t avored 9east avored ;o opinion

m"er M ;um"er M ;um"er

AF8 . A8 0

F8. 8. 0

0 F FF80 0

0 F F8. 0



8F 0 08 0F

urity

e o the "enefts

he "east

l

(0//M)

(0//M)

(0//M)

(0//M)

F (0//M)

e

ale

re0/: indicates the num"er o respondents who choose either o the "eneft instrument as

t- least avored- and have no opinion

we can o"serve rom the fgure the "est avored "eneft type(F8.M) was paid leaves

wed "y social security and saving plan(8FM)- and AF8M o employees as insurance is

r "est avored "eneft8 The least avored "enefts were

ice (FF80 M)8 The response to these &uestion provide important clue or "eneft decision

*ers regarding which "eneft instrument i included in the pac*age can satisy the interest o

ma$ority o employees

/8 Comparison o Employee characteristics and employees perception

analysis purpose the level o agreement is grouped as strongly agreeKagree- no opinion- and

ngly disagreeKdisagree and our ma$or items compensation ade&uacy- employees particip

ompensation and "enefts decision process- periodic evaluation o e<ectiveness

pensation and "enefts- and need or revision and rationali?ation o pay structure and "eneft

*ages were selected to compare against employee characteristic



erience- $o" category- &ualifcation-

rance

leaves

al service

d and Elderly care

al security and saving

e o "enefts

d care (F8.) ollowed "y legal

aracteristics including se4- age-

salary scale8

/ / /

m"er o employees

opinion

t avored

t avored

icipation

e0A8 Employee’s perception towards selected items "y 1e4- &ualifcation- e4perience- age-

category- and salary level

the scale are 0Xstrongly agreeKagree- .Xno opinion- AX disagreeKstrongly disagree

rce: !ppendi4 !

/808 Comparison o perception towards compensation and "enefts ade&uacy

hown in ta"le 0. a"ove- /8AM o male and A8AM o emale respondents disagreeKstrongly

gree with the statement ZThe current compensation and "enefts are ade&uate’- which shows

e di<erence "etween the two gender8 However- the percentages o emale respondents- who

e either no opinion or agree with statement slightly- e4ceed that o male8 There was also little

ployee

racteristics



mpensation

&uacy

icipation in

mpensation and

efts decision

ess

odic evaluation o

ctiveness o

pensation and "enefts

d or review and

onali?ation pay

cture and "eneft

*ages

A 0 . A 0 . A 0 . A

er .

A

ve

0//M /M

FM F8M 8M

M 0/8M 8FM

M .8/M

/M 0//M

/M 0//M

/M 0//M

/M 0//M

M .M

/M 0//M

0//M /M

M A8FM .8M



8M 8M

0.M M

/M 0//M

M /M /M

M 08M F8M

.M 8M 8M

M /M /M

M /M /M

der

e

ale

M FM /8AM

M 8AM A8AM

M /M 8M

M 8.M 8M

M FM 08FM

M 8AM 08FM

M 8M 8FM

M 0.8M /M

lifcation

h school

hnical school

ege +iploma

B1c degree

ters degree

ers

/M /M

/M 0//M

08M A8AM

M /M /M

M 0/8M 8M



/M 0//M

/M 0//M

/M /M

/M 0//M

F /M A8AM

0/M /M

/M 0//M

/M 0//M

/M 0//M

/M /M

/M 0//M

AA8AM 8FM

M /M /M

8M 8M

/M 0//M

/M 0//M

/M /M

M /M /M

M /M /M

M ./M /M

AM 80M 08M

M 0080M /M

M /M /M

erience

0

A/

years or more

M 008M 08M

8M /8M

/M M



/M 0//M

/M /M

/M 0//M

M /M 8.M

M M

/M 0//M

/M /M

M 8M /8M

8M /8M

M M

80M /8M

/M /M

M 008M .8AM

M 8M /M

M M M

M 80M /M

/M /M

Category

demic

ministrative

M M 8M

0M /M 8M

/M 0//M

M 8M 8M

M 8M /8AM

M 8M 8M

M M /M

M FM /M

ry 1cale

/

J0.//

0JA///



0J///

0J///

/ and a"ove

M 0.8M FM

AM /M 8FM

0/M /M

M FM /80M

/M 0//M

/M /M

/M 0//M

00M M

/M 0//M

/M 0//M

/M 0//M

/M /M

M AF8M /M

/M 0//M

M 0/M /M

.8M F8.M

/M 0//M

/M /M

M /M /M

M /M /M

M 0/M ./M

FM 8M .8M

M /M /M

/M /M

erence "etween age groups .JA- AJ- J (8M- 8FM- and .8/M) however- all

ployees with age group greater than tends argue that it is inade&uate8 1imilarly- all

ployees’ with highest educational &ualifcation (Ph+)- technical school graduate- and "elow

de 0.th disagreeKstrongly disagree- 8M masters degree- /M o B!KB1c- A8AM +iploma



ers disagreeKstrongly disagree with ade&uacy o compensation and "enefts8 'oreover- all

ployees with highest wor* e4perience (./JA/ years)- M o 0/J0- /8M o J- and 08M

elow years disagree with statement8 There was little di<erence "etween academic and

ministrative employees (8M vs8 8M)8 'ore employees with highest salary level viewed

compensation and "eneft inade&uate than employees with lower salary level8

rall- there was consensus among the respondents that the current compensation and "enefts

inade&uate and this was o"served across all the categories o gender- age- &ualifcation- wor*

erience- $o" category8 However- the most concerned category was employees with older age-

e wor* e4perience- and highest educational &ualifcation- as these would "e in conLict with

r e4pectation and standard8 Compensation and "enefts ade&uacy is one o the ma$or

"lems claimed as one o the respondent noted:

e salary level and the "eneft pac*ages are not ade&uate to cover the living

o instructors and it is ar "elow our e4pectation8 Thus- many instructors are

ed to loo* or part time in other institutions- which has seriously hampered the

ity o education78

other actor related "y respondents to the inade&uacy o compensation particularly salary is

ta4 levied on the "ase pay and other proessional services8 The statement o one o the

pondent also supports the idea:

e ta4 levied on instructors salary and other proessional wor*s li*e teaching

erial preparation should air and i possi"le ree orm the progressive ta4ation8

ta4ation system is not uniorm on all instructors across all institutions8 1pecial

sideration has to "e there or higher education institutions than other any civil

ice organi?ation soN instructors as well as supportive wor*ers ocus only on

r duty rather loo*ing outside or additional wor*s elsewhere8 The amount o

ry e4empted to ta4 has not "een ad$usted though the minimum amount o

ney to meet "asic needs has "een increased78

hers indicate those "elow grade 0.th

re00 (a)8 1hows the relationship "etween employee’s age- &ualifcation- and gender and

ception towards compensation and "eneft ade&uacy

m the a"ove fgure 00(a) it can "e o"served that in all categories the ma$ority o respondents

greeKstrongly disagree with compensation and "eneft ade&uacy8



racteristics wor* e4perience- $o" category- and salary level is shown in

the fgures are percentages

re00(")8 1hows the relationships "etween wor* e4perience- $o" category- and salary level

perception towards ade&uacy8

t can "e o"served rom the a"ove ta"le- the percentage o employees who disagreeKstrongly

gree increase as the year o e4perienc

4pectation o respondents with the increase in service year- age as well as status8

ure 00(")

erience increases8 This could "e associated with the increase

eeKstrongly agree

opinion

greeKstrongly disagree

eeKstrongly agree

opinion




remaining

w8

/8.8 Comparison o perception towards participation in compensation and "enefts decision

*ing process

analysis also showed that the ma$ority o respondents rom "oth

eve that they hardly participate in compensation and "enefts decision process8

up (0//M e4cept age group

ement Zemployees participate in compensation and "enefts decision processes8

little di<erence "etween respondents with

M "ut- B!KB1c and college diploma /M and A8AM respectively

ws the graphic representation o the values8


re0.(a)8 1hows the relationships "etween gender- age- and educational &ualifcation o

pondents and perception towards participation in decision ma*ing process8

larly- the result was the same or wor* e4perience where more than M o all categories

greeKstrongly disagree8 !cademic sta<s were

< (0//M vs8 8M)8 !ll employees within the salary scale 0./0

FM o employees within /0J

he compensation and "eneft decision process

pondent’s response to the open ended &uestions see*ing or pro"lem and its solution one o

pro"lem mentioned "y the respondents was that management do not participate employees in



ders (8

o which .M) disagreeKstrongly disagree with the

her and lower educational &ualifcation

pectively)8 The ollowing fgure

e concerned compared to administrative

0J/// and "elow // and

// disagreeKstrongly disagree with participation o employees

cess8 The a"ove fgure was supported "y

eeKstrongly agree

opinion


M vs8 8M)

ost all age

re was

l

n

aspect o salary and "enefts a

pondent noted:

titutions management at all level

t employees do not even have inormation a"out the e4istence o "eneft

*ages and Pension and

ployees78

other respondent state the solution in his statement:

e management has to raising awareness among employees a"out the issue

ompensation and "enefts should assess the interest employ

ivate "y providing appropriate "enefts8 'oreover- they should address the

e to the government "odies- "ecause this has an implication to the &uality o

cation and sta< satisaction


re0. ("): 1hows the relationships "etween wor* e4perience- $o" category- and salary level



espondents and perception towards participation in decision ma*ing process8

/8A8 Comparison o perception towards periodic evaluation o the e<ectiveness o

pensation and "enefts

arding the periodic evaluation o the e<ectiveness o compensation and "eneft there was

e di<erence in the percentage o respondents who either disagree or strongly disagree with

across the characteristics i

communicate a"out the issues to the employees: one o the

ot responsive to the employees and

ement "enefts issues are not *nown

ployees to "etter

saction78

uding gender- age- educational &ualifcation- $o" category8

eeKstrongly agree

opinion


lear "y

ncluding

wever- AF8M employees with salary level less than // have no opinion and /M disagree

statement8 5igure 0A(a) and

pondents claim that the compensation and "enefts system availa"le in their institution hardly



uated periodically one o the respondents noted that:

w monitory payment and poor "eneft pac*ages8 'oreover- the availa"le

eft pac*ages are not practiced as intended8 Generally spea*ing the current

pensation and "enefts are static8 Changes are not made ta*ing into

sideration the current mar*et conditions7


re0A (a): 1hows the relationships "etween

pondents and perception towards periodic evaluation

A(") "elow shows the graphic presentation o the values8

der- age- and educational &ualifcation o

eeKstrongly agree

opinion


eeKstrongly agree

opinion





re0A (")8 1hows the relationships "etween wor* e4perience- $o" category- and salary level

espondents and perception towards periodic evaluation

/88 Comparison o perception towards the review and rationali?ation o pay structure and

eft pac*age

ontrast to the a"ove statements almost all employees irrespective o their &ualifcation- age-

der- wor* e4perience- $o" category- and salary level agree or strongly agree with the

ement Zthere is a need to review and rationali?e the current pa

*age’8 There was little di<erence "etween male and emale (

opinions o academic and administrative

AM)8 The respondents claim that the current compensation and "eneft

ewed and assessment made

ditions a respondent noted that:

y one *nows that higher education is the highest level o education that

ermines the manpower that is capa"le o $oining industry as well as pu"lic

or8 Thereore- Government should see* mechanisms or good compensation

*ages in a more Le4i"le manner in higher e

ollowing two fgures (fgure 0(a)

ployees and their perception towards issue o revision and rationali?ation o compensation

"enefts8

structure and "eneft

M vs8 F8

pondents were also closer to one another

cy should "e

sted to ad$ust "enefts ollowing changes in the mar*et



cation institutions7

0(") demonstrate graphically the characteristics o

eeKstrongly agree

opinion


8M) respondents8

M

ng )

re0 (a)8 1hows the relationships "etween gender- age- and educational &ualifcation o

pondents and perception towards revision and rationali?ation

re 0(a) indicates that ma$ority o respondents in all categories agree or strongly agree with

revision and rationali?ation o the current compensation and "eneft pac*age8

re0(")8 5igureA8 1hows the relationships "etween wor* e4perience- $o" category- and

ry level o respondents and perception towards

re 0(") demonstrates the level o agreement "y wor* e4perience- $o"

l a"out the revision and rationali?ation o compensation and "enefts8

li?ation revision and rationali?ation8

egory

eeKstrongly agree

opinion


egory- and salary

pter 5our



mmary- Conclusions- and recommendations

chapter deals with summary o fndings- conclusions and- recommendations8 The summary

ndings includes the demographic inormation o respondents- employee’s perception towards

items related to compensation and "eneft pac*ages8

1ummary o fndings

erm o length o service at the institution- M o the respondents had wor*ed or the

tution ewer than fve years and- .8FM "etween and 0 years- and the rest a"ove ./ years8

M o the respondents were male- .M were emale8 ! respondent was younger than . years-

0M were "etween .JA years- 8M were "etween AJ years- and 8AM were over the age

8 3egarding &ualifcation- 08M o the respondents had the Ph+- F8AM were .nd degree-

M were 0st degree- 8AM were college diploma- and 8AM were "elow 0. grade8 n terms o

$o" category in their institution- A8AM o those responding rom !cademic while the rest

ministrative8

items included in the lic*ert’s rating scale were grouped into our categories8 These are

ctiveness o compensation and "enefts- compensation and "enefts decision and

ministration process- employee’s perception towards overall compensation and "eneft issues-

perception towards pay mi4 and pension plan8

analysis o the items rom li*ert’s scale revealed that employees disagreeKstrongly disagree

ma$ority o items8 'oreover- the respondents eel that the current compensation is

e&uate- employees do not participate in compensation and "eneft decision process and its

ctiveness is not periodically evaluated8 However- generally employees "elieve that the

ent compensation and "enefts comply with government regulations8 They also indicated that

r institutions has written compensation and "eneft policy8

as "een shown that the respondents disagree with payment "eing or perormanceN ta*e into

ount the e4perience and &ualifcation o employees up on compensation and "enefts pac*age

ermination8 'oreover- employees do not "elieve that there is no appropriate payment or

ponsi"ility they discharged8

as also o"served that the level o disagreement increases with the increase in educational

ifcation- age o employees- salary level- and wor* e4perience8 However- there is no

ifcant di<erence "etween gender and $o" category o employees8

hermore- irrespective o age- gender- educational &ualifcation- salary level- $o" category-



wor* e4perience the ma$ority o employees "elieve the current salary and "enefts as

avora"leKmost unavora"le8 n addition- they agree or strongly agree with idea o revision and

onali?ation o pay structure and "eneft pac*ages8

as also o"served that the "est avored "eneft instrument was paid leaves ollowed "y social

urity and insurance respectively8 However- signifcant num"er o respondents have claim that

y didn’t receive any o the "eneft pac*ages listed in the &uestionnaire8

analysis o open ended &uestions also showed that nonJfnancial compensation are also not

active- the good perormance o employees hardly praised and recogni?ed8 'oreover- the

ent house and position allowance is not sucient8

analysis shown that the compensation and "eneft pac*ages availa"le in the institutions

er the study are hardly communicated to employees so that signifcant num"er o employees

w no opinion towards the statements a"out the institutions compensation and "eneft policy

its lin* to its organi?ations strategic plan8 But- one o the ma$or pro"lems o compensation

"eneft pac*ages is the organi?ation ailure to align their compensation and "enefts to the

ani?ation strategic plan8

Conclusions

y employees "elieve that the current compensation and "eneft is not ade&uate and let them

ope with ongoing cost o lie8 The respondents claim that the compensation and "eneft

*age should "e reviewed and designed ta*ing into account actors in the e4ternal environment

uding the mar*et condition- nature o the $o"s- other organi?ations- government regulations

the internal environments or the values o the $o" grades through $o" analysis8

current compensation and "eneft pac*ages are not periodically updated and evaluated or

ctiveness8 5urthermore- the e4isting "enefts are not well communicated to employees8

h salary and "enefts availa"le in the institutions were rated unavora"ly or most unavora"ly8

leaves and social securities are the "est avored instrument o the "eneft pac*ages list in the

m where as the least avored "enefts were child and elderly care and legal advice8

ployee need their pay pac*et should "e more o cash "ut disagree with idea o retirement

ning let or employees and e4it at their will8

3ecommendations

rder to solve the pro"lem o ade&uacy government need to revise the compensation and

eft policy assessing the e4ternal mar*et condition- the nature o $o"s and the employee’s



ectation8 The compensation and "eneft decision process should one in which employees

icipate- so that the sense o responsi"ility entrusted into employees8 Compensation and

eft should not "e a onetime issue and need to "e evaluated periodically or e<ectiveness8

ttain its o"$ectives and motivate employees towards "etter perormance- attract and retain

petent employees the current compensation and "eneft pac*age o government higher

cation institutions should "e revise and improved8 The ocus o revision should also include

"eneft pac*ages not only the "ase pay8 5urthermore- +i<erential and negotia"le pay or

essions "ased on mar*et demand8 1eparate treatment o regular and part time pay or ta4

pose and "etter position and house allowance8 The "eneft pac*age should also include

rance coverage particularly health insurance "oth or the sta< and their amily8

h an increasingly educated wor*orce who desire more inormation a"out pay and "eneft

ctices- it is essential to educate and communicate employee a"out compensation and "enefts8

reore- rgani?ations are e4pected to periodically communicate the compensation "eneft

*ages so that the o"$ective or which the compensation and "eneft pac*ages designed can "e

eved8 5urthermore- it was o"served that only limited num"er o respondents understood the

tence o policy- rules and regulation- so the institutions needs to periodically communicate

policies- rules and regulations pertaining to compensation and "eneft pac*ages8 Pension

efts employees need to sensiti?ed and educated with regard to purpose and uses o pension

eftsN there should "e a possi"ility o "orrowing rom their pension "enefts in case o serious

"lems to ease their fnancial "urden so that employee get dual "eneft that employees may not

ete their pension at the same time relieve their fnancial "urden8

result o the study shows that employees perceive that the compensation and "eneft

*ages "eing o<ered are not lin*ed to organi?ational o"$ectives8 t is "elieved that the greatest

ciency o most compensation and "eneft systems today is their lac* o congruency with

ani?ations strategic goals and o"$ectives8 Thereore- the institutions under study should lin*

r compensation and "enefts to their organi?ational goals and o"$ectives8 The o"$ectives o

pensation and "eneft can "e achieved i employees have clear understanding o employer’s

tri"ution they can e4ert "etter e<ort towards the achievement o the organi?ation o"$ectives8

erences

ratton- ,ohn and ,e<rey Gold (0)8 Human resource management: theory and



ctice8 9ondon: 'acmillan- press ltd8

handan- ,its 18 (0)8 rgani?ational Behavior8 ;ew +elhi: Ii*as Pu"lishing House

9td8

ecen?o- +avid !8 and 1tephen P8 3o""ins (0)8 Human 3esource 'anagement

ed8)8 ;ew \or*: ,ohn =iley and 1ons- inc8

ule"ohn- ,ames and ,oseph ,8 'artocchio8 (0)8 EmployeesO Perceptions o the

ri"utive ,ustice o Pay 3aise +ecisions: ! Policy Capturing !pproach8 ,ournal o

ness and Psychology8 Iol8 0A8 ;o8 08 pp8 0J8

tsum Ghe"regiorgis and 9uchien #arsten8 (.//)8 Challenges and prospects o human

urce management in a developingJcountry conte4t: The case o Eritrea8 ,ournal o

ployee 3elations8 Iol8 .8 ;o8 .8 Pp 0J0A8

ary +essler (0)8 Human 3esource 'anagement(th ed8)8 Prentice Hall: Englewood

luec*- =illiam 58(0F)8 Personnel: ! diagnostic !pproach8 Te4as: Business

ishing8 nc8

eneman- He"ert G8- +onald P8 1chwa"- ,ohn !8 5ossum- 9ee +8 +yer8 (0F)8

onnelKHuman 3esource 'anagement (th Ed8)8 ;ew +elhi: Ii*as Pu"lishing House

9td8

olt- +avis H8 (0A)8 'anagement: Concept and Practices8 ;ew ,ersey: Prentice Hall-

ewood Cli<s8

vancevich- ,ohn '8 =illiam 58 Gluec*8 (0)8 5oundations o PersonnelKHuman

ource 'anagement( th ed)8Boston: rwin8

#asirim ;wu*e8 (.//)8 the private provision o higher education in Ethiopia: Growth-

llenge- and prospects8 ,ournal o higher Education o !rica- Iol8 - ;o8 0- pp8F0J8

9eary- '838 (.//)8 ntroduction to Behavioral 3esearch 'ethods8 %1!: Pearson

cation- nc8

'itchell- Terence 38 Broo*s C8 Holtom- Thomas =8 9ee8 (0A)8 How to #eep \our Best

ployees: +eveloping an E<ective 3etention Policy8 The !cademy o 'anagement

cutive8 Iol8 08 ;o8 8 pp8 J0/8

'ondey- 38 =ayne and ;oe- 3o"ert '8 (00)8 Human resource management8

sachusetts: 1imon and 1chuster- nc8



'organ- B818 and 1chiemann-=8 !8(0)8 Employee attitudes: Then and now8

onnel ,ournal- (0/)- pp 0//J0/8

lsen- 3ay ;8 Barry !8 Gerhart Harvey B8 'in*o8 (0)8 Employee Compensation:

ory- Practice- and Evidence8 =or*ing Paper V / Cahrs K Cornell %niversity8

3andal- 18 1chular (0)8 'anaging Human 3ecourse (th ed8)8 Cincinnati: 1outhwest

ege pu"lishing8

3ynes- 18 98- Q Boudreau- ,8 =8 (0)8 College recruiting in large organi?ations:

tice- evaluation- and research implications8 Personnel Psychology8 Iol8 A8 F.JF8

1ara 98 3ynes and !lison E8 Bar"er8 (!pr8 0/)8 !pplicant !ttraction 1trategies: !n

ani?ational Perspective8 The !cademy o 'anagement 3eview- Iol8 0- ;o8 .- pp8

JA0/

1carpello- Iida G8 and 9edvin*a- ,ames (0)8 PersonnelKHuman 3ecourse

agement8Baston: Pws*ent pu"lishing Company8

1chliemann- =illiam !8 (0F)8 The mpact o Corporate Compensation and Beneft

cy on Employee !ttitudes and Behavior and Corporate Profta"ility8 ,ournal o

ness and Psychology8 Iol8 .8 ;o8 08 pp8 J.8

1e*aran- %8 (.//0)8 3esearch methods or "usiness: ! s*ills "uilding approach (.

8

w \or*: ,ohn =iley Q 1ons- nc8

Teshome yi?engaw (.//)8 Policy development in higher education in Ethiopia and the

o donors and development partners: Paper presented at the nternational E4pert

ting- The Hague- The ;etherlands- .AJ.- 'ay- .//8

The education and training policy and its implementation: 'inistry o education- 5e"ruary

.8

=erther- =illiams B8 and +avis- #eith8 (0)8 Human resource and Personnel

nagement8 ;ew \or*: 'cGraw Hill- nc8

>elalem Bayisa8 (.//F)8 Employees’ Perception o the Pro"lems and Practices o

ployee Perormance Evaluation: ! Case 1tudy o !wash nternational Ban* (!i")-

u"lished '! Thesis8

>elalem- (.//)8 ssues and Challenges o 3ural =ater 1cheme: The Case 1tudy o

ayu7- unpu"lished '! Thesis8



>enawi >erihun =8 \ohannes (.//F)8 nternal Duality Care Policy in Ethiopian

versities: pportunities and Challenges8 - 'e*elle %niversity- Ethiopia8

!ddis !"a"a %niversity H3' process BP3 team report ,une- .//

(www8aau8edu8etKthe research and graduate programs inormer) accessed: /K/AK./0/

0/

(www8ecsc8edu8etK inormation "ulletin) accessed .AK/.K./0/ 00:0/

(www8salary8com) accessed .AK/.K./0/ 00:0/

(www8ioma8com) accessed date .AK/AK./0/ 00:0/

endi4 !

+1 !B!B! %;IE31T\

%9T\ 5 B%1;E11 !;+ EC;'C1

TE31 5 B%1;E11 !+';1T3!T;

! P3G3!'

e flled "y Employees

purpose o the study in general and this &uestionnaire in particular is to study on 6The

ception o employees towards compensation and "eneft policy in some selected Government

her education institutions ound in !ddis !"a"a7 which may help the institutions under study

olving the ma$or pro"lem raised "y the study8 The research is underta*en as academic

uirements o 'B! degree in Business !dministration8 t also helps to gain practical

wledge on the topic under investigation and other prospective researchers as a stepping stone

arry out urther investigation8 want to assure that this research is only or academic purpose

hori?ed "y !ddis !"a"a %niversity8

eral nstructions

ere is no need o writing your name

all cases where answer options are availa"le please tic* () in the appropriate "o48

r open ended &uestions- please enter your response on the space provided

tact !ddress

u have any &uery- please do not hesitate to contact me and am availa"le as per your

venience at ('o"ile: /J0.J/J0AJ or eJmail: ayshu20F]yahoo8com)

n* you in !dvance^^^



T : +emographic normation

um"er o years you have wor*ed in education industry (in years) 22222222222

um"er o years wor*ing in your current institution (in years):

J 0/J0 ./JA/ A/ years or more

ge (in years): %nder . .JA AJ J and a"ove

e4: 'ale 5emale

ducational Dualifcation:

h school graduate

hnical school graduate

ege +iploma

B1c +egree

ters +egree

other (please state2222222222222222222222222222222222222222)

our feld o speciali?ation and your highest educational status22222222222222222222

alary level

// /0J0.// 0./0JA/// A//0J/// //0J/// _ ///

" category

demic !dministrative

T : Duestions related to the compensation and "eneft policy

ed "elow are statements a"out compensation and "eneft policy in your organi?ation8 Please

cate your level o agreement with the statements so that your answers to these &uestions will

"le the researcher to assess what you thin* a"out the compensation and "eneft policy in your

ani?ation- where: 0X strongly agree .X!gree AX;o opinion X +isagree X 1trongly disagree

m 0 . A

he current compensation and "eneft pac*age "eing o<ered "y my

tution are ade&uate to cope with the ongoing cost o lie

ompensation and "eneft pac*age availa"le in my institution is air

A

ompensation and "eneft pac*age availa"le in my institution is e&uita"le

compara"le organi?ations



he compensation and "eneft scheme in my institution comply with

ernment regulations

he current compensation and "eneft pac*age is motivating and provide an

ntive or "etter perormance

is periodically update and communicated to employees

participate in compensation and "eneft decision process

am "eing paid "ased on my perormance

he current compensation and "eneft pac*age is capa"le o attracting and

ining competent employees

The compensation and "eneft pac*age availa"le in my institution *eep a

nce "etween employees contri"ution and cost o the employer

The current compensation and "eneft receive secure me rom "eing

osed to unemployment

t provides the opportunity to attain selJinterests ( li*e "uilding house- car-

ng children school ee etc8

The institution or whom am wor*ing has a written compensation and

eft policy

'y institution periodically evaluate the e<ectiveness o compensation and

eft pac*ages

The current compensation and "eneft scheme o my institution is lin*ed to

organi?ation’s strategic plan

The current compensation and "eneft pac*age provides appropriate payment

he wor* related e4perience and &ualifcation have

!de&uate payment is made or the responsi"ility discharged

n my opinion- the current pay system has a positive e<ect on employee

ductivity

*now where to go or inormation related to "enefts

have good understanding o how my retirement "enefts are calculated

A

'y institution provides a more Le4i"le "eneft option

The "enefts receive is as good as most availa"le in private sector



t acilitate and support the achievement o organi?ational goals

By giving more cash to the employees organi?ation can do away their

sion plan and let employees plan their pension

Employees should "e allowed to choose the e4tent o cash component as

nst the nonJmonetary "enefts

Government should let employees plan their own pension so that they can

at their will

eel that the cash component in the pay pac*et should "e much more than

nonJmonetary "enefts

should "e given the option to decide on the pay mi4 at the "eginning o the

r

The amount o pay currently receive is compara"le to what thin* it should

There is a pressing need to review and rationali?e the pay structure to

rove employee eciency

: !dditional &uestions:

o you have a clear understanding o how compensation and "enefts instruments are

erminedS

;o

ow do you rate your current "ase payK1alaryKwageS

t avora"le 5avora"le ;o opinion %navora"le 'ost unavora"le

ow do you see your current "eneft pac*ageS

ost avora"le 5avora"le ;o opinion %navora"le 'ost unavora"le

=hich o the "enefts you have received so arS Please- ran* in order as 0st- .nd- and Ard the

t and least avored8

rance (Health- lie- disa"ility etc) Best avored least avored

leave (Training- sic* leave- vacation etc8) 08 22222222222222 08 22222222222

al !dvice .8 22222222222222 .8 222222222222

erly and child care A8 22222222222222 A8 222222222222

al security and saving plan

tion others (i any) 22222222222222222222222222222222222222222222



ease- speciy the important "enefts that are "eing o<ered "y other organi?ation that is

availa"le in your institution8

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28

=hat particular pro"lem you have o"served in the current compensation and "eneft

*ages o government higher education institutionsS

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=hat do you thin* the solution to the pro"lem will "eS

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endi4 B

+1 !B!B! %;IE31T\

%9T\ 5 B%1;E11 !;+ EC;'C1

TE31 5 B%1;E11 !+';1T3!T;

! P3G3!'

"e answered "y H3 directorsKCompensation and "eneft managers

ollowing interview &uestions are designed to collect inormation a"out the perception o

ployees towards the compensation and "eneft policy o selected government higher education

tutions ound in !ddis !"a"a8 The inormation shall "e used as primary data in my case



arch which am conducting as a partial re&uirement o my study at !ddis !"a"a %niversity

completing my 'B! under aculty o Business and Economics8

research is to "e evaluated in terms o its contri"ution to our understanding o the practices

gher education institution and its contri"ution to improvements in these practices8 Thereore-

l "e willing to su"mit a copy o my fnal report to you i desired when it is ready8 Thereore-

r genuine- honest- and prompt response is a valua"le input or the &uality o and successul

pletion o the pro$ect8

o interview &uestions:

there a compensation and "eneft policy in your organi?ationS =hat is the o"$ective o

pensation and "enefts policy as stated in policy manualS

o you thin* that the compensation and "eneft policy o your institution is serving its

poseS

=hat are the ma$or pro"lems that your department is acing with respect to compensation

"eneftS

o you thin* the current compensation and "enefts pac*ages acilitate human resource

ctionsS

ow do you communicate the compensation and "eneft pac*ages to employees in your

tutionS

o you thin* the current compensation and "eneft pac*age availa"le in your institution

n*ed to the institutions strategic planS

o you thin* the current compensation and "enefts is sucientS ;o- whyS

re there "enefts and services which you thin* necessary "ut not consideredS

nally- is there anything that you want to comment a"out current compensation and

eft practices o your organi?ationS

Employees perception towards monetary rewrds

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Transcript of Employees perception towards monetary rewrds