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SUMMARY
The purpose of this study is to examine the effect of compensation on the productivity of the organization and what measure can be adopted to increase the effectiveness of workers in the organization. In order to carry out this research, questionnaires were given to fifty(50) respondents in Guarantee Trust Bank, Zenith Bank and Fidelity Bank. The study comes to a conclusion that variety of factors can affect the organizational productivity, whether they are positive or negative. The degree of consequence that compensation would have on employees varies. In order to get the most productivity out of employees, employers should learn how to reward the employee’s fairly, equitably and consistently with financial and non-financial compensation. Different factors were examined throughout the study to determine the effect of compensation and how it should be administered in a way that will lead to a positive outcome.
