Global Advanced Research Journal of Arts and Humanities (GARJAH)
July 2015 Vol. 4(2), pp. 015-025
Copyright © 2014 Global Advanced Research Journals

Full Length Research Paper

An assessment of compensation determinants and its impact on employee commitment in private tertiary institutions in Ghana

Akafo Vera Ami*, Peter Agyekum Boaten and Patience Yamoah

Valley View University, School of Business, P.O. Box AF 595, Adenta, Accra

*Corresponding Author`s E-mail: verocitar@yahoo.com; Phone +233244058885 

ABSTRACT

The main aim of the study was to identify compensation determinants and how rewards can be made meaningful so as to increase employees’ organisational commitment. The objectives of the study were to determine whether entitlement-orientation to rewards influences organisational commitment; and to ascertain whether financial rewards increase organisational commitment of academic staff. The study employed descriptive survey design in gathering data from 157 academic staff, from a total number of seven private tertiary institutions which were selected through stratified sampling. Respondents from these seven private tertiary institutions were conveniently and purposively selected. The study observed that compensation was determined by both internal and external factors; tenure and job position positively influenced the maintenance of organisational membership. It was also realised that, financial rewards only increased continuance commitment but not affective commitment. This study creates awareness and sensitises stakeholders about the impact of ineffective compensation on employees’ and institutional performance and how compensation can be tailored to individual needs and wants in achieving both individual and organisational goals.

Keywords: Compensation, entitlement-orientation, organisational commitment, Private Tertiary Institutions.