ABSTRACT

The study examined the effect of compensation management on workers' productivity in Abia State civil service from 2008-2013.Beyond the broad objective, the study sought specifically to find out whether Compensation management is a major concept in employee productivity, whether Extrinsic motivation factors hinders productivity of workers in Abia state civil service between 2008 — 2013 and if the crisis of public finance of most governments especially that of Abia state that translated into crisis in the compensation management system in Abia state significantly altered the incentives in relation to workers' productivity. A total of 115 management and non-management staff of Abia state civil service were selected from which data and information were elicited using the questionnaire. Analytically, the study employed descriptive statistics in attainment of specific objectives and employed Chi-square in testing the hypotheses. The analytical result revealed that compensation management has a significant effect on workers' productivity. The study concludes that one of the primary responsibilities of management is to make compensation policy a veritable tool for optimizing the potentials of employees and human resources manager or practitioners should be in the driving seat in ensuring that the system is run in line with the principles of fairness and equity and recommends amongst others that management should give compensation management policy the priority it deserves and be willing to carry it out with new ideas.