This study is focused on the effect of compensation administration on employee productivity. The study highlighted the need for effective compensation in an organizations. The study looked at what constitutes effective compensation administration on organizations and the benefits that are to be obtained thereof. The study adopted a survey design which includes the distribution of a well-designed research instrument to 50 respondents in Dangote Nigeria Headquarters in Lagos Nigeria. The findings of the study indicates that effective compensation administration has a positive bearing on employee productivity as indicated in by the figures generated. The null hypotheses advanced for this study were thus rejected since the p. value of the analysis was less than 0.05. (r = 0.892, r2 = 0.795, p < 0.05). Employers are continually challenged to develop pay practices and procedures that will enable them to attract, motivate, retain and satisfy their employees. The findings of this study can be helpful tools which could be used to provide solutions to individual dissatisfaction to work processes. It is very pertinent at this point in time to suggest that more research should be conducted on the issues related to reward system using many private and public organizations.It is significant for further studies to be carried out in order to do justice to all issues concerning compensation and in the event of further studies the sample size to be used should be larger so as to enable the researcher get the required results from the respondents.

This study is focused on the effect of compensation administration on employee productivity. The study highlighted the need for effective compensation in an organizations. The study looked at what constitutes effective compensation administration on organizations and the benefits that are to be o...