Abstract

This study focuses the extent to which financial compensation management can be used as a tool for improving organizational performance in Office of Accountant General of the Federation (OAGF). To achieve the objective of this paper, primary and secondary sources of data were used. The primary data was collected from a well-structured questionnaire tested for validity and reliability. It was found that financial compensation for staff members in the public service do not have a significant effect on their performance and that financial compensation received are not commensurate with staff efforts. The study further found that reform programmes of the Government do not have a significant effect on the financial compensation policies and practices in the public sector due to poor compensation management. The study used a sample size of four hundred and fifty (450) persons drawn from selected OAGF. Pearson’s Product Moment Correlation was used for data analysis and Z-test was also used to test the significance of the coefficient of correlation at 10% level of significance. The findings reveal that financial compensation received by OAGF do have significant impact on their performance, the financial compensation received are commensurate with their efforts and the reform programmes of the government do have significant effect on the financial compensation policies and practices. Based on the findings, the study recommended that for the OAGF to improve performance of employees, they should offer financial compensation that will be specifically designed to link performance. Based on these findings, it is recommended that for any public service organization such as the Federal Government of Nigeria Civil Service Commission to improve the performance of employees, they should offer financial compensation that will be specifically designed to link it with performance.

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