AN ASSESSMENT OF EMPLOYEES COMPENSATION PACKAGE SCHEME AT ETHIOPIA PHARMACEUTICALS MANUFACTURING SHARE COMPANY

Abstract

Attractive compensation package scheme enables an organization to attract, recruit and retain competent employees, to increase employee’s morale and productivity and ensure transparency. Since employees are a resource it is important for managers to ensure that they are able to get a return on their investment. Compensation package policies are one of the most important resource tools available to human resource managers to enable them to encourage desirable behavior and discourage undesired ones. These points help the company to achieve its own strategic objectives. The general objective of the study is to assess the compensation package scheme of Ethiopian Pharmaceuticals manufacturing Share Company. The study is limited only to Ethiopian pharmaceuticals manufacturing share company main factory. The data was collected through questionnaire and semi-structured interview. For the questionnaire the researcher used simple random sampling technique to select sample population. Based on the findings of the study, the researcher has found out that the employee response shows that the company’s compensation package scheme is not attractive. And also employees have different preferences of compensation packages. Finally the company is advised to incorporate compensation plan in to its corporate strategy and should focus on employee’s choice of compensation package.