ABSTRACT The study was conducted in order to investigate the effects of compensation on employee's motivation in war child Holland Uganda. The study sought to establish the effect of benefits on motivation of employees in War Child Holland, to examine the effect to pay on motivation of employees in War Child Holland, to establish the relationship between incentives and motivation of employees in War Child Holland. The literature review was conducted with the aim of establishing and shading more light the effects of compensation on employee's motivation. Different authors clearly agreed that, Motivation is a determinant of perfonnance: however motivation is not synonymous with performance. Motivation does not wholly account for better performance but it is an imp01iant factor on bringing it about (Raymond et al 2004). Organizations that strive to meet the need of the employees reaps ce1iain benefits. Maslow' s theory provides guidance with respect to the needs that employees are motivated to achieve. The study used an exploratory methodology in collecting the necessary data which included questionnaires and interview methods of data collection. The data was tabulated and then analyzed in order to draw inference from the data collected. The information collected from the respondents through questionnaires and interview guide questions were used in order to answer the objectives of the study. More so, the study contained the summary of the findings, conclusions, recommendation. Various findings have been obtained from chapter four where clear and satisfactory conclusions and recommendations have been made on the basis of the research objective stipulated in chapter one. It was evident from the findings that there is a close relationship between motivation and employee performance. Conclusively therefore, it was found out that organizations can not prosper if compensation, motivation and employee performance are not catered for as important elements in an organization. The study further noted that the standards of living among the employees had improved as a result of increased productivity brought about by employee motivation.

TABLE OF CONTENTS

DECLARATION .............................................................................................................. ii

APPROVAL ..................................................................................................................... iii

DEDICATION ................................................................................................................. .iv

ACKNOWLEDGEMENT ................................................................................................ V

TABLE OF CONTENTS ................................................................................................. vi

LIST OF TABLES ............................................................................................................. x

LIST OF FIGURES .......................................................................................................... xi

LIST OF ABRIVIATIONS ............................................................................................ xii

ABSTRACT ................................................................................................................... xiii

CHAPTER ONE ................................................................................................................ 1

1.0 Introduction ................................................................................................................... 1

1.1 Back ground of the study ............................................................................................... 1

1.2 Proble111 state111ent. ........................................................................................................ 2

1.3 Purpose of the study ...................................................................................................... 2

1.4 Research objectives ....................................................................................................... 3

1.5 Research questions ........................................................................................................ 3

1.6 Scope of the study .......................................................................................................... 3

1.7 Significance of the study ............................................................................................... 3

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CHAPTER TWO ............................................................................................................... 4

LITERA TORE REVIEW ................................................................................................. 4

2.0. Introduction .................................................................................................................. 4

2.1 Definition of Key Tenns ................................................................................................ 4

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2.2 Conceptual frame work ................................................................................................. 5

2.3. The effect of pay on employee's motivation ................................................................ 6

2.4. Effect of benefits on motivation of employees ............................................................. 6

2.5. The effects of incentives on motivation of employee's incentives are compensation I

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that rewards an employee for performance expectation ...................................................... 8

2.6 Organizational performance .......................................................................................... 9

2.7. Organizational strnctures .............................................................................................. 9

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2.8. Work force diversity ................................................................................................... 10

2.9. Motivation and performance ...................................................................................... 10

2.10. Employees perfonnance incentives in organizations employee's incentives

impo1iant ingredients in perfonnance management practice ............................................ 10

2.11 CONCLUSION ................................................................................ 11

CHAPTER THREE ......................................................................................................... 14

METHODOLOGY .......................................................................................................... 14

3. 0. Introduction ............................................................................................................... 14

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3 .1. Research design .......................................................................................................... 14

3.2. Population of the study ............................................................................................... 14

3.3. Sa1nple sizes ............................................................................................................... 14

3.3.1. Presentation of the respondent. ............................................................................ 15

3.4. Sampling procedure .................................................................................................... 15

3.5. Data collection methods ............................................................................................. 15

3. 5 .1 Questionnaires ...................................................................................................... 15

3.5.2. Interviews ............................................................................................................ 15

3.6. Data control and measurement ................................................................................... 15

3.7. Data processing and analysis ...................................................................................... 16

3.8 Anticipated Limitations of the study ........................................................................... 16

3 .9 Ethical considerations .................................................................................................. 16

CHAPTER FOUR ........................................................................................................... 18

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS ............ 18

4.0 Introduction ................................................................................................................. 18

CHAPTER FIVE ............................................................................................................. 35

SUMMARY of key FINDINGS, conclusion AND RECOMMENDATIONS ............ 35

5.0 Introduction ................................................................................................................. 35

5.1 Summary of the key findings ....................................................................................... 35

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5.2 Conclusions ................................................................................................................. 36

5.3 Recommendations ....................................................................................................... 36

5.4 Further Research Areas ............................................................................................... 37

REFERENCE: ................................................................................................................. 38

LIST OF APPENDICES

APENDIX I: QUESTIONNAIRE ............................................................................ 3943

APENDIX II: TIME FRAME ........................................................................................ 43

APPENDIX III: BUDGET ....................................................................... .42