Business Research Methods

Final Project
Submitted to:
Mam Humaira Erum
Research Paper:
The Effect of Compensation and Benefits Towards
Employee Performance
Submitted by:
 Hamna Siddiqua  LCM-3884
 Rafia Imran  LCM-4015
 Waleed Raza  LCM-4019
 LCM-4010
 Muzafar Ali
Submission date:
1st June 2022

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 Abstract
Taking care the welfare of the employee is very important in order to ensure them
to hard work in achieve the organizational goal. The aim of the study is to establish
the effect of compensation and benefits towards employee performance. The
objective of this research is firstly, to evaluate the level of employee performance.
Secondly, this research aims to examine the relationship between compensation
and benefits towards employee performance. Lastly, determine the effect of the
compensation and benefits towards employee performance. This research carried
out at XYZ College. This study used the survey research method where 100
questionnaire were distributes among lectures of XYZ College with population
of 100 lectures which make the sample is 80 respondents. The data collected were
analyzed and interpreted using the Statistical Package for Social Sciences (SPSS).
Based on the result, it is found that the performance level of lecturers is at medium
and high level. In addition, there is a positive correlation between compensation
and employee performance. Moreover, the compensation and benefits also give a
positive effect on employee performance.

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 Identifying he Problem Area and the Nature of research:
Problem Area:
Performance Level of Employees

Nature of Research:
This Research is a pure/ basic Research because this is done to expand the
body of knowledge.

 Developing Problem Statement:

Problem Statement:

What are the effects of compensation and benefits on the performance level
of the employees, How this effects the productivity and profitability of the
organization?

 Listing and Labeling the Variables:

There are three variable in his research:
 Compensation (Independent Variable)
 Benefits(Independent Variable)
 Employee Performance level(Dependent Variable)
 Theoretical Framework:
Defining the variables:
Defining Compensation:
Compensation is the reward that workers receive for their service or
contribution to the organization. Meanwhile, the other author stated
that compensation is a systematic approach to provide monetary value
and other benefits to employees in exchange for their work and
service. Types of compensation are Remuneration and Allowance.

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Definition of Benefits:
Employee benefit is defined as any form of reward provided by the
organization other than wages or salaries that is paid for in whole or in
part by the employer. The benefit also referred as indirect
compensation because it is given to employees in the form of a plan
(such as health Insurance, organization shares and retirement benefits)
rather than cash. Types of benefits are Promotion and Incentive.
Definition of Employee performance:
Employee performance is the successful completion of task,
responsibilities or assignment by selected employee or group of
employee based on a set of performance objective and indicator of
efficiency and effective utilization of available resources.
Model:

Theory:

Based on Model, remuneration, allowance, promotion and incentive are the

elements in the compensation and benefits that will affect the employee
performance such as adaptive performance, task performance and contextual
performance.

The triachy model of employee performance has three dimensions which is

adaptive performance, task performance and contextual performance. As a
component of overall employee performance, adaptive performance refers to
the ability of the individual to change his behaviour to a new environment.

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 Meanwhile, the task performance requires more cognitive capabilities and is
especially facilitated through task knowledge (knowledge or technical
principle require to ensure work performance and ability to handle multiple
task, job skills (applying technical knowledge to achieving task successfully
without much supervision) and task habit (build -in ability to respond to
assigned task that either simplify or block

Lastly, the contextual performance refer to activities that are not specific
task or goals but that make individuals, teams and organization more
effective and successful

 Hypothesis:
H1: There are significant relationship between compensation and benefits with
employee performance.

H2: There a significant relationship between remuneration and employee

performance.

H3: There a significant relationship between allowance and employee

performance.

H4: There a significant relationship between incentive and employee

performance.

H5: There a significant relationship between promotion and employee

performance.

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 Research Design:
Setting:

The research were conducted based on descriptive and correlational study is

done in contrived Lab settings. The study is done to establish cause and
effect relationships using the same natural environment.

Unit of Analysis:

The wants to see the pattern of change in performance level in employees

with the change in compensation and benefits. The unit of Analysis under
this research is “ Employees”

Time Horizone:

For this research data is collected just for once. So, this Research is done
under Cross-sectional Studies.

 Intext citation and Refernce:

In-Text citation; (Kadir, Alhosani, Imail & Norseha,2019)
Reference: Kadir, A.A., Alhosani, A.A.H.H., Ismail, F., Norseha (2019).
The Effect of Compensation and Benefits Towards Employee.

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 Questionnaire for study:
Section A
About Yourself

1. Gender
o Male
o Female
2. Age
o Below 34 years old
o 35 – 44 years old
o 45 -54 years old
o 55 years old and above
3. Working hours
o 6 -8 hour
o 9 – 11 hour
o 12 hours and above
4. Wages
o Below 3,500
o RM3,600– RM6,500
o RM6,600-RM9,500
o RM9,600 and above
5. Years of working
o Below 8 years
o 9-16 years
o 16-24 years
o 25 years and above
6. Qualification
o Degree
o Master

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 Section B
Performance Scale
No.of Items Strongly Disagree Neutral Agree Strongly
Items Disagree Agree
1 I managed to plan my
work so that it was done
on time.
2 My planning was optimal
3 I kept in mind the results
that had to achieve in my
work.
4 I was able to separate
main issues from side
issues at work.
5 I knew how to set the
right priorities
6 I was able to perform my
work well with minimal
time and effort.
7 Collaboration with others
was very productive
8 I took on extra
responsibilities.
9 I started new tasks
myself, when my old
ones were finished.
10 I took on challenging
work tasks, when
available.
11 I worked at keeping my
job knowledge up-to-date
12 I worked at keeping my
job skills up-to-date.
13 I came up with creative
solution o new problems

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 Section C
No. Items Highly Dissatisfy Neutral Satisfy Highly
of Dissatisfy Satisfy
Items
1 You are satisfied with
your work
2 You are satisfied
regarding your
associate works
3 Work makes the best
use of my abilities
4 Having physical
working conditions
that are safe, not
injurious to health, not
stressful
5 Having a job that
provides a steady
employment
6 I receive right amount
of salary for my work.
7 The economy affects
my satisfaction with
salary level my current
8 I'm being paid fairly in
comparison to others.
9 You are likely
interested in
advancement and
financial gain
10 Your medical
insurance
11 I feel that workplace
training opportunities
encourage me to work
better