THE ROLE OF EFFECTIVE COMPENSATION SYSTEM IN ENHACING EMPLOYEE COMMITMENT THE CASE STUDY OF ETHIO TELECOM WOLKITE BRANCH

Abstract

The study was made to assess the role of effective compensation system in enhancing employee commitment in Ethio-telecom wolkite branch and Identify major problem areas and suggest suitable solutions and recommendation to improve compensation system. In the study descriptive research design was used to state the existing practice of compensation system in Ethio-telecom. The researcher used only primary sources of data to attain the above objective. To conduct the study census survey were used and questionnaires were distributed for 42 employees of the telecom. Finally the collected data were analyzed, Presented and interpreted by using statistical techniques such as tabulation, percentage and frequency. The study revealed that employees in Ethio-telecom cannot compensate based on commitment rather than performances this lead to employees are not committed, because of unsatisfied in compensation system in the organization and this affect productivity, reduces commitments towards their job and increase turnover. So the organization should give attention encouraging compensation system or giving sufficient compensation or benefit to the employees.