HIGHLAND COLLEGE,
COLLEGE OF BUSINESS AND ECONOMIC
DEPARTMENT OF MANAGEMENT
The practice of compensation management system and its impact on
employee commitment (the case of bahir dar university medicine and health
Science College)
PREPARED BY: ID NO
1. Mengistu Zemene……………………………….......36
2. Melkam Dereje……………….…………….….… ..35
3. Melesew Tesfa….. …….…………………..……......34
4. Bayulng Gebru………………………………....…...16
5. Esubalw Jember…..……………………………..….24
6. Sereke Derso…………………………………….……45
Advisor Name:- Mr-Mitiku
BAHIRDAR,ETHIOPIA October ,202
ABSTRACT
The purpose of study was examining the practice of compensation management system and its
impact on employee commitment. In this connection the study revealed and investigated the
compensation system of Bahirdar university medicine and health Science College and problem
associated with employee commitment and also to identify specific objectives. To achieve this
object the researcher used different methodology elements (source of data, sample size, research
design, sampling technique, and method of data analysis). The source of data that the researcher
used is both primary and secondary source.
Accordingly, head office from Bahirdar university medicine and health science college
employees was randomly selected as sample. The necessary primary data were gathered through
questionnaire, from 41 employees who were employed in Bahirdar university medicine and
health Science College. On the other hand, the secondary data will collected from different book,
internet, newspaper, magazine and the college documents.
The data which is gathered from the employees of the organization were presented and analyzed
though tabulation and percentage because of the easiness to use and simplicity for the readers.
Finally, based on the presented and analyzed data the basic finding or conclusion and
recommendations were forwarded for the college or the concerned management groups to give
attention and to take the necessary measure.
1
Contents
Contents
Page
ABSTRACT................................................................................................................................................1
Contents......................................................................................................................................................2
CHAPTER ONE..........................................................................................................................................7
1. INTRODUCTION...................................................................................................................................7
1. 1BACKGROUND OF THE STUDY..................................................................................................7
1.2. STATEMENT OF THE PROBLEM.........................................................................................................7
1.3 OBJECTIVES OF THE STUDY................................................................................................................8
1.3.1 GENERAL OBJECTIVES.................................................................................................................8
1.3.2 SPECIFIC OBJECTIVES...........................................................................................................8
CHAPTER TWO...........................................................................................................................................10
2. LITERATURE REVIEW..............................................................................................................................10
2.1. OVERVIEW OF COMPENSATION.....................................................................................................10
2.1.1. HISTORICAL BACKGROUND......................................................................................................10
2.1.3. OBJECTIVE OF COMPENSATION.............................................................................................11
2.1.4. IMPORTANCE OF COMPENSATION..........................................................................................12
2.1.5. BASIS FOR COMPENSATION.....................................................................................................13
2.1.6. TYPES OF COMPENSATION.....................................................................................................13
2.1.7. COMPENSATION MANAGEMENT.............................................................................................14
2.1.8. COMPONENTS OF COMPENSATION MANAGEMENT.............................................................14
2.1.9. FACTORS AFFECTING COMPENSATION DECISION....................................................................14
2.2. EMPLOYEE COMMITMENT.............................................................................................................15
2.2.1. DEFINITION OF EMPLOYEE COMMITMENT..............................................................................15
2.2.2. PROCESS OR STAGE OF COMMITMENT...................................................................................16
2.2.3. MODEL OF COMMITMENT.......................................................................................................17
2
2.2.4. SOURCE OF COMMITMENT.....................................................................................................18
2.2.5. STRATEGIES TO INCREASE EMPLOYEES’ COMMITMENT..........................................................18
CHAPTER THREE........................................................................................................................................19
3. RESEARCH METHODOLOGY...................................................................................................................19
3.1. THE RESEARCH STUDY AREA AND POPULATION DESCRIPTION......................................................19
3.2. RESEARCH DESIGN..........................................................................................................................19
3.3. SOURCES OF DATA..........................................................................................................................19
3.5. SAMPLING TECHNIQUES.................................................................................................................20
3.6 SAMPLING SIZE...........................................................................................................................20
3.7 DATA ANALYSIS..............................................................................................................................21
CHAPTER FOUR.....................................................................................................................................22
[Link] AND SCHEDULE.................................................................................................................22
BUDGET:.................................................................................................................................................22
REFERENCES:.............................................................................................................................................23
3
CHAPTER ONE
1. INTRODUCTION
1. 1. BACKGROUND OF THE STUDY
Management of human resources at work is important part of management system. The
realization of the critical importance of people in the organization is very important to achieve its
objective. Organizations are established with the aim of effectively utilizing the available human
resources and non-human resources to achieve certain objective. Among these resources human
resource is the most valuable asset of an organization that could use to earn competitive
advantage and achieve its objective. Hence the need for human resource management to insure
optimum productivity and organizational existence is considered to be very critical. (2004).
Human resource has been tagged the most valued asset of any organization its strategic approach
emphasizes a tight fit between individual needs, rights, ambitions and goals within the
organization which makes compensation system central in the affair of emerging students,
scholars and human resource practitioners in the world (Armstrong, 2005) .
Compensation is the adequate and equitable remuneration of personnel for their contribution in
the achievement of organizational objectives (Bantie, 2004).
Compensation includes both intrinsic and extrinsic rewards for employees receive for better
performance of their job. Intrinsic compensation reflects psychological mindset that result from
performing their job. Extrinsic compensation includes both monetary and non-monetary rewards
(Martochio, J, 2006).
The goal of compensation management is to design cost effective payment structure that will
attract, motivate, and retain competitive employees that the structure should be appear fair.
Fairness is the term that is frequently arisen in the organization management of compensation
program. Organization seeks to pay the least possible payment to minimize the cost, so fairness
means a wage or salary that is adequate for the demand and requirement of the job (Stephen .p
Robbins, 2005).
The study is to examine the practice of compensation management system and its impact on
employee commitment, the basis for good compensation structure, employee expectation at
different level and how the compensation structure is based on employees’ performance of
individuals or job requirement of employees. Therefore, the researcher tends to draw attention to
4
the collage administration, human resource department and management system making them
capable of improving employee’s commitment and enhance organizational productivity and
effectiveness more specifically on Bahirdar university medicine and health Science College.
1.2. Statement of the problem
Compensation management is one of the most difficult and challenging human resources
function because it contains many elements and far reaching function or impact on organization
strategic plan or goal. Moreover, it increases workers’ productivity and reduces absenteeism. If
the compensation management system and payment program may lead to high employee
turnover and absenteeism, employees are not committed to their Job (Whabe, 2012). The motive
to do this research on this particular topic is to fill the existing knowledge gap that means in
order to reduce the disorder of compensation problems of employees. That means in order to
make the compensation process would be wise, fair and just full in all departments of the college
without any discrimination of sex, age and other aspects. Not only financial compensation but
also a non-financial compensation or reward like prize, self-esteem and recognition affect
employees’ motivation, productivity, proclivity and commitment, however from employees’
point of view pay is necessary for life of employees. It is one of the chief reason employee or
people like employment.
According to Aguinis(2007) the studies compensation management system has a huge impact on
employee’s level of engagement. High compensation provides employee with sense of
satisfaction from their job and motivates them to perform better especially when compensation is
directly associated to the job performance of employees. On the contrary the studies have also
shown that low compensation hinders employees’ motivation and performance. Over all,
compensation affects positively the satisfaction in their job, retention, prospective recruitment
and work productivity.
The researcher would focus on how the college compensates its employee in order to increase
the commitment of the employees and point out the weakness of the college compensation
management system. The researcher would also attempt to explore different facts and theories
and try to address them from the existing literature so as to reach some kind of worthy
conclusion and provide scientific based contribution in more evident manner and ordinary
understanding about compensation management system and its impact on employee
commitment.
5
1.2.1Research questions:
What is the practice of compensation management system in Bahirdar university
medicine and health Science College?
What are the major issues (factors) that influence the compensation management system?
What is the attitude of employees towards the existing compensation system?
What is the impact of compensation management system on employees’ commitment?
1.3 OBJECTIVES OF THE STUDY
1.3.1 GENERAL OBJECTIVES
The general objective of this study is to assess the practice of compensation management
systems and its impact on employees’ commitment in case of Bahirdar university medicine and
health Science College.
1.3.2 SPECIFIC OBJECTIVES
To assess the overall practice of compensation management system in Bahirdar
university medicine and health science college.
To identify the major issues (factors) that influence the compensation management
system.
To evaluate the employee attitude towards the existing compensation system.
To identify the compensation management system on employee’s commitment.
1.4 SIGNIFICANCE OF THE STUDY
The study examined the effects of employee compensation performance.
The study examined a popular human capital return on investment variable.
The primary outcome of the study is to help the organization to understand the way of
compensation management system.
6
The findings of the study can help as initial insight for other researcher who is interested
the study might be produced the compensation management systems as the academic
sources for other researchers.
To increase the efficiencies of the organization achievement.
The study might be produced the compensation management systems as the academic
sources for other researchers.
To go through a detail study for the future.
1.5 SCOPE OF THE STUDY
In general terms this study tries to identify the impacts of compensation management system on
employee commitment in case of Bahir Dar university medicine and health Science College
found in the Amara regime in Sebat Amite which is located at 10 km from the city. by
considering time and cost our study takes place only this organization. The study will identify
the mechanisms by which the college encourages its employees. In doing so, the researcher will
try to see the impact of compensation system in considering the collective agreements of the
college and the working procedure in the college human resources department. And
methodologically this study is intended to use stratified method to achieve its objective.
The study tries to assess the up to date compensation management system to be applies in the
college. Moreover, the researcher tries to investigate the problems relate to the topics in the
study. The researcher exhaustively uses his effort and time to acquire enough, genuine and
relevant data for the study.
7
CHAPTER TWO
2. LITERATURE REVIEW
2.1. OVERVIEW OF COMPENSATION
It is critical aspect of human resources management to compensate employees through wages
and salaries. An adequate and fair pay system is important in satisfying workers, retaining
valuable employees and remaining competitive with other organizations that provide similar
services. High turnover and low moral are costs to the organization. One can refer that a more
carefully designed and consistently applied pay system may all quite some of the turnover,
thereby improving the overall effectiveness of the organization (Reddy, 1991).
2.1.1. HISTORICAL BACKGROUND.
It is believed that compensation has started from the very inception of civilization. As long as
employees and employer have existed, compensation has also existed (IBED)
The industrial revolution followed by the emergency of different management theories has
contributed a lot for development of modern compensation management. Today, widely known
incentive systems is Fredric Taylor's scientific management where he developed the concept of
standard acceptable view of fair days’ work (Dressler, 1997).
The rapid development of compensation, labor unions and management hierarchies has also
contributed in setting measures of standard for pay system. In addition, the shortage of man
power created as result of world war first (WWI) and world war second (WWII) had forced
managers to devise different compensation mediums to attract and motivate workers (IBED).
The Foundation of modern compensation management was laid in 1930`s,when Edward N has
developed, “Hay’s Guide chart”, which is worlds’ single most widely used job evaluation
technique (Personal human resources management). Since the time of Hay, compensation
management gradually developed in to thoroughly scientific and bureaucratic method with its
own techniques and rationalization methods until the early 1990`s. Global compensation,
corporate downsizing and new management combination are to be more adaptive schemes to the
changing needs of empempi
8
There is no single universal definition for compensation. Different authors have defined
compensation in different terms. Some of the definitions given to compensation are the
following:
1. Werther and Davis(1993)stated that, compensation is what employees receive in exchange for
their work. According to this definition compensation includes all rewards (intangible and
tangible) that all employees receive from their employer.
2. Milkovich and Bouderau (1989) stated that, compensation includes financial returns, service
and benefits of employees as part of an employment relationship. This definition excludes
promotion, recognition for outstanding work, filing of accomplishment and opportunity to be
trained.
3. (IBED) defined compensation as "all forms of pay or rewards gong to employees and arising
from their employment". According to Dessler, compensation has two main components: direct
financial payments in the form of wages, salaries, incentives, bounds, commissions, and indirect
payment in the form of financial benefit like employer paid insurance, paid vacation, sick leave,
medical fee etc.
4. Worther (1993) stated that, compensation is what employees receives in exchange for their
contribution to the organization. Compensation management helps the organization obtain and
retain a productive work force. Without adequate compensation current employees are like to
leave and replacements will be difficult.
2.1.2. OBJECTIVE OF COMPENSATION
Worthr and Davis (1985, 335-337) indicated the following objective.
To acquire qualified personnel:
Compensation needs to be high enough to attract applicants. Since companies compete in
the labor market, pay level must respond to the supply and demand of works. But
sometimes premium wage rate is needed to attract applicants who are already employed
in other firms.
To retain present employees:
9
When compensation levels are not competitive some employees quit. To prevent
employee turnover, pay must be kept competitive with that of other employers.
To Reward Desired Behavior:
Pay should reinforce desired behaviors. Good performance, experience, loyalty, new
responsibilities and other behavior can be rewarded through an effective compensation
plan.
To control costs:
A rational compensation program helps an organization to obtain and retain its work
force at a reasonable cost. Without a systematic wage and salary structure the
organization could over or under pay its employees.
To comply with legal requirements:
As with other aspects of personnel management, wage and salary administration faces
legal constraints. A sound pay program considers these constraints and ensures
compliance with all government regulations that affect employees’ compensation.
2.1.3. IMPORTANCE OF COMPENSATION
Compensation is important to personnel managers for many reasons. Of all personnel problems,
under paying employees is perhaps the most perplexing one. Leon C. Megginson (1981;393)
stated that compensation involves many emotional factors to employees and employers.
Compensation gives the following importance to employees and their family:
It is the primary (and often the only) source of income for employees and their family.
It is a fair reward for the work employees perform and the benefit they provide for the
employer.
It determines employee’s social status since income level is often used as a measure of a
person`s worthy.
Compensation gives the following importance to employer:
To attract capable employees in the organization
10
To motivate them towards superior performance level
To retain their service for an extended period of time
To increase the company’s sales and profit
2.1.4. BASIS FOR COMPENSATION
Robert L. Mathis and John H. Jackson(1997) state that another strategic issue is how
compensation philosophy of the organization is to be reflected in the design of compensation
system. The main parameters while designing compensation system are time, performance and
productivity.
Time; employees may be paid for time they are on the job. The two pay classes in many
organizations are identified according to the way of pay distribution and the nature of the
job. The classifications are hourly and salaried.
Employees who are paid hourly are said to receive wages, which are payment directly
calculated on the amount of time worked.
Another means of paying people is salary, which is payment that is consistent from
period to period despite the number of hours worked.
Performance and productivity; another general basis for compensation is to tie pay to
performance or productivity. A direct productivity based called a piece-rate system is one
in which an employee is paid for each unit of production. Merit or pay for performance
system is also attempted to link employee performance to pay structure.
2.1.5. TYPES OF COMPENSATION
Compensation can be both tangible and intangible. Regarding tangible or financial
compensation, there are two general types: direct and indirect compensations. In the direct type
of compensation, the employer provides the actual benefits. The followings are the most
common forms of direct compensations pay and incentives:
Pay is the basic compensation an employee receives, usually as a wage or salary.
An incentive is a compensation that rewards an employee for efforts beyond normal performance
expectation. Examples of incentives include bonuses, commissions and profit sharing plans.
11
Another type of financial compensation is indirect compensation. In this case employee receives
the tangible value of rewards without receiving the actual cash. A benefit is an indirect reward
such as health insurance, vacation pay, or retirement pensions given to an employee or group of
employees as a part of organizational membership. The second type of compensation is non-
financial or intangible compensations these are rewards like praises, self-recognition that affect
motivation, satisfaction and productivity.
2.1.6. COMPENSATION MANAGEMENT
Compensation management is the act of distributing some type of monetary value to an
employee for the work based on company’s policy or procedure. In basic terms, it is paying an
employee based up on the decided pay or benefit package for the position. The goal of
compensation management is to find quality people to perform quality work and then
compensating them in order to retain and reduce turnover.
2.1.7. COMPONENTS OF COMPENSATION MANAGEMENT
Stephen .P. Robins (2005): knowing compensation management is understanding about some
considerations a company makes in order to have compensation process that helps to keep
quality employees.
Key Considerations:
Find and keep quality employees
Improve employee happiness and work environment
Reduce turnover rates
Motivate and reward for better performance.
2.1.8. FACTORS AFFECTING COMPENSATION DECISION
Bautie, 2004 describe two major factor that affect compensation decision those include external
and internal factors.
A. Internal factors
The size and age of the organization; it is believed that large and new organization tends to pay
higher compensation than small and old organization.
12
Labor budget and resources allocation strategy of the organization
Managerial Philosophy and strategy; as top level management has the final say on pay
compensation level decision, their view and strategy affect compensation decisions.
B. External factor
The labor market Union influence demanding for better pay and better working condition
Economic condition of the industry; very productive and profitable industries pay higher wage
compared to the other.
The government through wage control and guide lines; wage and labor regulation, income
protection legislation.
2. Empirical Literature
In spite of the above theoretical recognition compensation management practices and challenges,
there are different studies which describes about compensation management practices and
challenges. In this section, an attempt is made to assess the empirical studies conducted by
different authors.
Eman Fuad in his assessment of compensation and Benefit package practice in Ethiopian Road
Authority ( July 2010), he found that there is no employees discussion in preparing
compensation plan in organization not only this even the employees don‟t know from where they
can get information regarding the compensation plan of the organization. Employees are
unsatisfied with the current monetary incentives bonus and so on. In general his finding shows
that satisfaction level of employees with the existing remuneration system of the organization is
limited in case of salary. This means employees may not stay in the organization for long period
of time and this may not lead to increase turnover and absenteeism of the organization. He also
recommend that the company attention should be given for improvement in area of existing
remunerating system to increase the level of satisfaction of employees; the organization could be
able to allocate appropriate remuneration system for satisfaction of employees and also he
recommend the organization should administer the salary scale fairly based on the responsibility
they have qualified and relevant year of experience to retain and motivate employees for higher
performance.
Another thesis conducted by Bililign Lemma (2012) assessment on employees benefit package
and turnover intention in the case of Dashen Bank his finding demonstrated that the benefit
13
package of the company is not enough to cover the basic need of its employee and their families.
Moreover his study also established that the benefit package of the company is lower than
similar and different company to cover the needs of its employees. Finally, he concluded that for
all Dashen Bank and other similar industry in general to use a flexible benefit package on their
policy and program and reduce employees‟ turnover intension
2.2. EMPLOYEE COMMITMENT
2.2.1. DEFINITION OF EMPLOYEE COMMITMENT
Employee Commitment has many definitions according to different authors. Newstrom and
Devies (2002) define employee commitment as the degree to which employee identifies the
organization and want to continue by actively participating in it. Like a strong magnetic force
attracting one metallic object to another, it is a measure of employee`s willingness to remain
within the firm in the future. It often reflects the employee in the notion and goal of the firm,
willingness to expend effort in their accomplishment and intention to continue to work there.
Commitment is usually stronger among long term employees those who have experienced
personal success in the organization and working with committed employees’ group.
Luthans (1995) explain that employee commitment is most defined as
A Strong desire to remain in a particular organization
A willingness to exert high level of effort on behalf of the organization
A definite belief and acceptance of the organization value and goal
In other world this commitment is an attitude about employee`s loyalty to their organization and
is an ongoing process through which organizational participants express their concern for the
organization and its continued success and wellbeing. Employee commitment attitude is
determined by number of personal (age, tenure in the organization and disposition such as:
positive or negative activity or internal or external control attribution) and organizational (the job
design and leadership style of an organization) variables even though non organizational factor
such as availability of alternatives after making initial solution or choice to join the organization
will affect subsequent commitment. Due to this multidimensional nature of organizational
commitment, there is growing support for the three component model proposed by Meyer and
Allen (1996). The three dimensions are the following:
14
Affective commitment:- involves employees’ emotional attachment to identification with
and involvement in the organization
Continence commitment: - involves commitment based on the costs that associate with
the living organization
Normative commitment: - involves employees feeling of obligation to stay within the
organization
Pareek (2004) defined employee commitment (organizational commitment) a personal feeling
with regard to continuing his or her association with the organization.
According to Medgen, Norton and Testa (1999) committed employee could work diligently
conscientiously, provide value, promote organizational service or product and seeks continued
improvement. In exchange, they expect the work environment foster growth and empowerment,
allow for better balance of personal and work life, and provide the necessary resource to satisfy
customers and their co-worker.
2.2.2. PROCESS OR STAGE OF COMMITMENT
Mulline (1996) suggests three processes of commitments; these are the following:
Compliance: where the person accepts the influence of other mainly to obtain the same thing
from other, such as pay.
o Identification: in which employees accept the influence in order to maintain a satisfying
relationship and feel pride in belonging to the organization.
o Internationalization: in which the employee find the value of the organization to
intrinsically rewarding and compatible with personal values.
Simpsom (2007) in an article of the manses development corporation emphasizes that his or her
immediate supervisor influences employee behavior by positively or negatively. Positive
influences are essential to strengthening the employees’ commitment and the reverse is true for
negative influence.
Nelson (1999) further concurs in this regard because he indicated that while money certainly
plays a part in building the employees loyalty, it is not clearly enough in today working
environment. Compensation is important; but most employees consider it as a right an exchange
15
for the work one does. He further emphasizes that they do make a difference and money alone
does not do this; but personal recognition does.
2.2.3. MODEL OF COMMITMENT
Mulline (1999) identifies three pillars of model of employee commitment. These are:
Sense of belonging to the organization
This builds up on the loyalty essential to successful industrial relation. The sense of belonging is
created by manager through ensuring the work force to involve in and share the success of the
organization.
Sense of excitement to the job
Improved result will not be achieved unless workers feel a sense of excitement about their work,
which results in the motivation to perform well. This sense of excitement can be achieved
through appealing to a high-level need of pride, trust and accountability to the results.
Confidence in management
The sense of belonging and excitement can be frustrated unless workers do not have respect for
and confidence in management leadership. This respect is enhanced through attention to
authority, dedication and competence.
2.2.4. SOURCE OF COMMITMENT
Hevriegel (2001) rogues that as with job satisfaction the source of organizational commitment is
determined largely by their individual characteristics (age, personality, and attitude) and their
early job experience matches their expectation and organizational commitment.
Organizational commitment tends to became stronger because individuals develop deeper ties
with the organization and co-workers as they spend more time with them. Seniority often brings
advantage that tends to develop more positive and opportunities in the job market may decrease
with age causing workers to become more strongly attached to their current job.
16
2.2.5. STRATEGIES TO INCREASE EMPLOYEES’ COMMITMENT
There are many ways to build employees commitment. But employers often fail to realize that
some of the most effective things they can do to develop and sustain motivated and committed
employees cost very litter or nothing at all.
Nelson (1999) propose the power of five “Is”
Interesting work: - no one wants to do the same boring job over days after days.
Moreover, while any jobs always require same boring repetitive tasks everyone should
have at least a part of their job to be of interesting to them.
Information is a power and employees want to be empowered with the information they
need to know to do their job better and effectively.
Involvement: - managers today are facing with an incredible numbers of opportunities
and problems and as the speed of business continues to increase dramatically, the amount
of time they spend to make decisions continues to decease. Involving employees
especially when the decision affects them directly is both respect and practical.
Independence: - Some employees want their every action to be closely motivated. Most
employees appreciate having flexible working environment to do their job as they see fit.
Increases visibility: - everyone appreciates getting credit for what is done. But occasions
to share the success of employees with others are almost limited. Giving employees the
new opportunities to perform learn and grow as form of recognition and thanks are highly
motivating for most people.
17
Chapter Three
3. Research Methodology
3.1. THE RESEARCH STUDY AREA AND POPULATION DESCRIPTION
The researcher will be conducted in practice of compensation management system on employee
commitment in Bahir Dar University Medicine and Health Science College. In order to achieve
the desire objective, population of the study is the employee from each department.
3.2. RESEARCH DESIGN
The type of research is cross-sectional studies, that the researcher will use causal types of
research because this research is all about the cause and effect (explanatory research design) of
the practice of compensation management system on employee commitment. So it will be better
to use causal types of research for this study.
3.3. SOURCES OF DATA
The researcher will use both primary and secondary data source: primary data is obtained from
questionnaires to employees of the college and secondary data will be collect through magazines,
books, newspaper, internet and other document materials.
Both primary and secondary data collection methods are going to achieve the objective of the
study. Primary data will collect through clews end questionnaires because it is call for short or
check a response which is important to get new information from the respondents. Secondary
data will collect by using publish and unpublished source such as written materials about the
college, books and internees.
3.5. SAMPLING TECHNIQUES
The population in this study will be relatively large and the group is heterogeneous. So, the
researcher will use stratified random sampling techniques to avoid personal biases and give equal
chances to the target population. This in turn will help the researcher to collect data that are more
reliable for the study.
3.6 SAMPLING SIZE
Because the population from which the sample going to be drown does not constitute
homogeneous group, stratified sampling will use in order to obtain representative sample. The
population will be divided in to sub-population. Then certain item will be selected from the
18
strata by random sampling. The entire population is 690. They will classifies in to eight strata
according to their similarity i.e. Medicine, Nursing, Health officer, Midwifery, Medical
laboratory, Optometry, Anesthesia, and Psychiatry. Sample of 41 is taken from the entire
population. (690). Each stratum populations are Medicine (103), Nursing (97), Health officer
(97), Midwifery (91), Medical laboratory (82), Optometry (75), Anesthesia (75), and Psychiatry
(70).
Sample size from the total population
n= 1 +
Where n = sample size
N = Total population
e= error
No Department base of strata Strata proportion Strata sample size Remark
1 Medicine (103/690)*100=15% 15%*41=6
2 Nursing (97/690)*100=14% 14%*41=6
3 Health officer (97/690)*100=14% 14%*41=6
4 Midwifery (91/690)*100=13% 13%*41=5
5 Medical laboratory (82/690)*100=12% 12%*41=5
6 Optometry (75/690)*100=11% 11%*41=5
7 Anesthesia (75/690)*100=11% 11%*41=4
8 Psychiatry (70/690)*100=10% 10%*41=4
19
Total 690 100% 41
sorce:ouer Calculation
3.7 DATA ANALYSIS
Having collected the data from employees of the college, the researcher analyze three data by
using descriptive analysis including editing and coding as necessary. The result is going to be
made appropriately and fulfill the objective of the study. Different methods of data analysis such
as percentage with tables (descriptive) and inferential statistics will be applied in order to analyze
and present the study.
3.8 Target Population
According to Lius (2005) target population (selective group of population) that confirms to a set
of specifications, encompasses the total populations of the subject and the interest of the
researcher that help to generalize the obtained results. Then, the population of the study was 41
employees of the university who are currently working and served above one year.
20
Budget and time schedule
BUDGET:
Item Cost(birr)
1 Pen 100
2 Paper 200
3 Flash 300
5 Phone contact 100
6 Printing cost 100
7 Transport cost 150
8 Total cost 950
TIME SCHEDULE :
Items Week1 Week2 Week3
Preparation
and approval
of proposal
Preparation of
Questionnaire
Field test and
Finalization of
Questionnaire
Data collection
and data
processing
Final Report
21
submission
REFERENCES:
1. Armstrong, 2005 management key practice strategies and practical guide lines
3thedition.
1..Aguinis,H(2007) Measuring performance .Performance Management ,New jursy PP .75-98
2. Bantic.W.2004 introduction to management(N.A.).A.A
3. Desseler .[Link] resource management 9th edition.
4. [Link] 2001 organization behavior 9th edition.
5. Ivancevich.2006 introduction management 6th edition.
6. Ivancevich.1998 human resource management 5th edition.
7. Leon c. megginson 1981 Measurement and antecedent of affective.
8. Luthans.F.1995 organizational behavior 7th edition.
9. Martocchio.J 2006 strategic compensation 4th edition.
10. [Link] 1996 Measurement and antecedent of affective,
11. Milkovich 2001 human resource management 5th edition.
12. Mullins L.1999 Management and organizational behavior 5th edition.
13. Nelson’.1999 low cost way to build employee commitment.
14. Newstrom.J.W and Davis 2002 organizational behavior and human behavior at work
place 11th edition.
15. Pareak.U.2004 understanding organizational behavior London oxford university
press.
16. [Link] 2005 human resource management 8thedition.
17. Reddy, 1999 low cost way to build employee commitment.
22
18. Weather and davis (1993) strategic compensation 4th edition.
19. Worthier 1996 Measurement and antecedent of affe
23
