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1.1 Background of the Study
Employees are the organization’s key resource and the success or failure of organization depends on the ability of the employers to attract, retain, and reward appropriately talented and competent employees. Employee’s willingness to stay on the job largely depends on compensation and benefit packages of the organization. In an attempt to ensure employees optimal performance and retention, organizations need to consider a variety of appropriate ways to reward the employees to get the desired results. It has been argued that the degree to which employees are satisfied with their job and their readiness to remain in an organization is a function of compensation packages and reward system of the Organization.
Employee attitude is a set of management practices that extend decision-making power, business information, technical and social skills, and rewards for performance to the lowest levels of the organization. It is the direct participation of staff to help an organization fulfill its mission and meet its objectives by applying their own ideas, expertise and efforts towards solving problems and making decisions.
Organizational commitment is the relative strength of an individual’s identification with an organization that is characterized by a strong belief and acceptance of the organization’s goals and objectives, a willingness to exert considerable effort on behalf of the organization and a strong desire to remain a member of the organization.
Compensation and benefit entail some basic features that tend to make employees satisfy on their job amongst which includes salaries, bonuses, incentives, allowances, promotion, recognition. All these have significant impact on employee’s performance. However to avoid wrong perception and controversy by the employees, compensation system must be clearly communicated to employees with job measurement which will drive the much needed performance in the employees.
Bangladesh Railway and Rajshahi Railway Station
Bangladesh Railway, a principal transportation agency of the country, is a Government owned and Government managed organization. Till June 2, 1982, the management and development of railway was vested with a Railway Board, comprising of a Chairman and four members. But, for administrative convenience and operational reason the Railway Board was abolished with effect from June 3, 1982 and the function of the Railway Board was vested with the Railway Division of the Ministry of Communications with the Secretary of the Division working as the Director General of Bangladesh Railway (Govt. Annual Report 1980).Rajshahi railway has lots of values in adding to the total demand of the railway in Bangladesh. For the same purpose the Railway bifurcated into two zones, East & West, under the administrative control of two general managers, who are accountable to the Director General of Bangladesh Railway. Subsequently on August 12, 1995 the day to day operation of the Railway was separated from the Ministry and entrusted with director general drawn from the Railway professionals authority (BRA) was formed with the Minster, Ministry of Communications as its Chairman. The Director General is assisted by Additional Director General and Joint Director General to perform all administrative and policy making jobs.Rajshahi railway always plays some vital initiative for the development of the Bangladesh Railway.
Rajshahi Railway
Rajshahi Railway Station is next to Rājshāhi Railway Station and is located in Rājshāhi, Bangladesh. Many of the employees are working with Rajshahi Railway. It is located at the center point of the city.
1.2 Statement of the Research Problem
Research and observations show that compensation plays a vital role in employee involvement and commitment in an organization. Employee involvement is the direct participation of staff to help an organization to fulfill its mission and meet objectives by applying their own ideas, expertise and efforts towards solving problems and making decisions whereas employee commitment is important because high levels of commitment lead to several favorable organizational outcomes. It reflects the extent to which employee’s identify with an organization and is committed to its goals. If employees are not satisfied then they will not give their best for the organization. So these concepts are very essential.
Compensation is an important tool in human resource. No one works for free nor should they. Employees want satisfactory salary and benefits. Before they work, they look for salary and benefits. An organization’s compensation package includes both extrinsic and intrinsic rewards and different kinds of benefits. Compensation has positive impact on job satisfaction and organizational commitment. It is logical that employees with better compensation will be more satisfied with their job whereas lower compensation level leads to lower job satisfaction. The more the employee are satisfied the more they are involved and committed to the organization and the less they are satisfied the less they are committed. Compensation works as a motivating factor in employee involvement and commitment.
This study is undertaken to identify the impact of compensation on employee involvement and commitment in an organization.
1.3 Objective of the Study
Objectives are the specific result that a person or system aims to achieve within a time frame and with available resource. The thesis is prepared on the basis of some objectives.
Objectives
1.5 Scope of the Study
The scope of this study is very limited. The study has conducted within the Rajshahi City. The scope of this study includes different employees of Bangladesh Railway, Rajshahi City.
1.5.1 Details Outline of the Study
The details outline of the study is as under-
In the Literature Review Chapter, I collected and studied some resourceful papers on employee involvement, employee commitment and compensation packages benefit program from the internet. The literature review included both the conceptual and theoretical information. The findings of the researchers, their opinion and analysis guided me comprehensively. In my analysis, in addition to the primary sources, there is a great influence of secondary thoughts and procedures.
In the Research Field Chapter, I have provided a theoretical discussion about the compensation system and different aspects of employee involvement, commitment, job satisfaction, motivation and retention, performance and productivity. I have discussed the effects of compensation with each of them. In this part, I consulted different books, articles, journals and data from internet.
In the Findings & Analysis Chapter, I used the data collected from the primary source as base. I provided figures and abstract evaluation of the data. The interpretation of different figures and information reflect different trends and emotions which I narrated on the basis of the mathematical figures and the methods of analysis followed by different scholars in their resourceful articles. I analyzed the data in relation to the phases of the questionnaire.
In Recommendation & Conclusion Chapter, I took help of the data, exercised my own experience, considered about the opinions of employees of different organizations and provide some useful recommendations. Finally, I tried to draw a conclusion based on my study and also the present condition of Rajshahi Railway Station.
Finally in Reference, I followed the ideal latest method. Books, articles and other forms of dissertations have different formats. In Appendix, I have enclosed the questionnaire which was used in the study.
1.6 Limitations of the Study
The thesis has some limitations. I faced the following limitations while conducting the study-
Time span:
Time is the major limitation. I got only three months to do the work. This time is not adequate to gather wide knowledge about the subject matter and also for conducting the survey with patience. The time was not sufficient to prepare a perfect thesis on such a wide matter.
Attitudes of respondents:
The attitudes and behaviors of all respondents were not same. Different people have different personality. Some were very cooperative but some were not. Some respondents took huge time to understand and providing answers. On the other hand, some respondents were very quick in answering. In some cases, I also feel hesitation to talk with them freely.
Unconsciousness:
All employees are not conscious of their situation and having less understanding about the study matter and procedure. There are reasons to believe that all of their responses do not reflect their real situation. In some cases, they might have given priorities at random. In some cases, their colleague’s views prevailed upon them.
Busyness of respondents:
Employees were in a busy schedule. They did not have enough time to give more attention to this survey which may affect the answering. In some cases, they answer so quickly that they may not try to properly understand the question.
Limited scope:
The scope of this study was also very limited. The study has conducted within the Rajshahi City. It was not possible to conduct the study in a very large part or within the whole country. The survey was conducted among the employees of several organizations of Rajshahi City. The number of respondents was 100 which is also a very poor sample size.
Inexperience:
Though I have prepared many reports before, I had no experience of preparing a thesis paper. Thus, inexperience is one of the big constrains of the study.
Though there were limitations, I have tried to put the best effort as far as possible to make the thesis error free.
ABSTRACT
Company goals to welfare employees through providing compensation to make employees constantly work. Employee’s compensation affects their productivity and their turnover tendency. If employees see that hard work and superior performance is recognized and rewarded by organization, they will increase performance with hope to obtain a higher level of compensation. Liang Gie and Martoyo (2000) said that, motive is an impulse that became the reason for someone to do something or work. Highly motivated employee is those who carry out substantial efforts in order to achieve objectives of production work unit and organization where he works. Non motivated employee only gives minimum effort to work. Every employee who gave useful possibilities into organization is arranged by leadership to realize that. Effort to realize these possibilities is using motivation. Motivation is intended to give power to employee in order work with his own efforts.
Committed, involved and satisfied employees are more ready to achieve organizational goals. Committed and satisfied individual remains consistent with organization as well as the goals and wishes to maintain his membership within organization. Employee performance is a result of one's work in carrying out tasks assigned to him based on skills, experience, and determination. Performance is result of work quantity and quality work achieved by an employee in carrying out their duties according to responsibility given to him.
TABLE OF CONTENTS
Chapter-1 Introduction
1.1 Background of the study
1.2 Statement of the Research Problem
1.3 Objectives of the study
1.4 Scope of the study
1.5 Limitation of the study
Chapter-2 Literature Review
2.1 Introduction
2.2 Critical Review of Literature
Chapter-3 Research Methodology
3.1 Methodology
3.2 Research Design
3.3 Sample Size
3.4 Questionnaire Design
3.5 Sources of Data
3.6 Pilot and Reliability Test
Chapter-4 Overview of the Research Field
4.1 Employee involvement
4.1.1 Types of involvement
4.1.2 Benefits of involvement
4.1.2 Four key strategies
4.1.3 Methods of involvement
4.1.4 Adverse effects of involvement
4.2 Employee commitment
4.3 Relationship between employee engagement, involvement and commitment
4.4 Job Satisfaction
4.5 Compensation
4.5.1 Goals of compensation
4.5.2 Total Compensation System
4.6 Benefits
4.6.1 Types of benefits
4.6.2 Common benefit programs
4.6.3 Advantages of benefit
4.7 Effects of compensation on job satisfaction and employee retention
4.8 Effects of compensation on organizational commitment
4.9 Effects of compensation on productivity
4.10 Impact of Rewards on Involvement and Organizational Outcomes
Chapter–5 Findings, Analysis and Calculation
5.1 Analysis
5.2 Percentage Analysis
5.3 Descriptive Statistics
5.4 Survey data Analysis and Findings
Chapter–6 Recommendation and Conclusion
6.1 Recommendations
6.2 Conclusion
References
Appendix
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Research, Proposal, Employees, Attitudes, Commitment, Compensation, Benefit, Case, Study, Bangladesh, Railway, Rajshahi, City, Field, Benefits, Involvement, Job, Satisfaction
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