This study examined the impact of effective compensation on the employees performance. Total compensation is a concept which is not usually given attention in many organization. Compensation is mostly viewed as cash and therefore other aspects are neglected viewing compensation as a holistic system to manage for productivity is pertinent to organizational development. The researcher used questionnaire that is carefully designed and administered to the respondents for secondary data. Information were both gathered from libraries and other research units. All information gathered from both sources were later arranged and presented in textual and tabular form and also analysis using percentages. The major findings of the study are: Individual employees requires different motivational techniques in order to be motivated. Incentive and fringe benefit are considered effective in improving performance. Employees are motivated to improve their performance when organization applies the integration the individual objectives with the corporate goal from the foregoing therefore, the researcher concluded that effective compensation has significant impact on workers performance. Major recommendations of the study are due to the rising cost of linking, employees should be compensated and encouraged. This should be through awards, business extra payment for overtime work etc. this will motivate them and result to a high productivity. Promotion should be on merit not by familiarity and relationship when promotion is by merit people are satisfied and happily murmuring and every one will work hard for their own promotion.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

This academic work is based on the impact of effective compensation on the employees performance in Onitsha Cotton Mill Limited, Anambra State, Nigeria apparently, there are different needed among employees that must be achieved through compensation received. It is very pertinent that organizations should strive hard to effectively compensate their workers for motivational reasons which will help in the achievement of organizational goals and objectives.

The study falls within personnel management and personnel management according to Flippo 1986 is defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources at the end tht individual organizational and societal objectives are accomplished.

It can also be defined as money received for the work performance plus other kinds of benefits and services that the organizations provide for their employees, compensation is recompense, reward, wage or salary given by an organization to person or a group of persons in return to work done, service rendered or a contribution made toward achievement or organizational goal.

BRIEF HISTORY OF GENERAL COTTON MILL LIMITED ONITSHA, ANAMBRA STATE

General Cotton Mill Limited, Onitsha anambra State is a textile manufacturing company that is known with the sales of textile and textile products.

The company was incorporated on the 10^th April, 1964 RC 3782, located at Niger bridge Industrial Layout, Onitsha and also has one of its branches at Bloc 4A, Apapa lane, Dolphin Estate Ikoyi, Lagos, having Chief Nolla O. Edun as its chairman, R.N.W. lee (U.S. citizen) as its MD / CEO and also F.A Enechukwu-Deputy managing director.

It is a textile company offering composite textile Mill producing African prints, or fabric materials with spinning, weaving, and printing division producing cotton yarn with a good number of employees at its service.

Cotton as a resources is a miracle fibre that has been spun, woven and dyed since ancient times and it is still the most widely used fibre clothing, it is soft and fluffy, and grows in a boll around the seeds of the cotton plant. Cotton can be used for many products like: clothes, beddings, tabletops, furniture’s and even arts etc.

DEPARTMENT OF GENERAL COTTON MILL LIMITED

According to the structure

R & D centre (Research and Development)

They are in-charge of studying and adopting new technologies, innovation, development of new kinds of production, new methods of production and quality control.

Sales department: Their work consists of organizing production sales, attraction of new buyers and partner registration of export operations, contracts on local markets control of shipment and delivery of goods / contained

Purchasing department: they provide purchases from the local and foreign markets, declarations and also registration of import contracts and customs documents.

Financial and Accounting department: They handle the registration of financial operations, accounting report, production cost, payment system, vouchers, bank operations, payment forms, delivery of salary and works with plastic cards.

Corporate Planning department: These are the department in charge of planning and organization of company projects, works with company werb-site, public relation, making of business plan (statistics) organization of charitable actions and company events.

Cotton purchasing department (Cotton Team): They do the

Identification and selecting of raw materials of the best quality for further production. Conclusion of raw materials delivery contract.

Personnel and salary departments: They provide the process of salary calculation, registration of salary documentation, the conclusion and the termination of labour contracts, wages ratifying, personnel selection also.

Tashkent office: Realization of export transactions, attraction of new potential partners and clients, control on registration of export documents and shipments, i.e delivery of production and payment of all shipment carried out by the collective of the Tashkent office.

The study with the departments has a total population of (900) workers in general cotton mill Nigeria Limited Onitsha.

S/N	DEPARTMENT	NUMBER OF STAFF
1.	Accounts	100
2	Commercial dept	180
3	Admin	100
4	Production	300
5	Labour committee	80
6	Cooperate planning	100
7	Personnel & salary	40
	Total	900

1.2 STATEMENT OF THE PROBLEM

Certain conditions or factors can make workers to perform effectively or ineffectively on their jobs. It has been observed that a number of factors seems to be responsible for job dissatisfaction among workers. They includes lack of interest in the jobs poor salaries poor conditions of service and lack of fringe benefits.

General Cotton Mill Limited workers tend to be affected by the factors enumerated above. It has also been observed that as a result of lack of compensation as a motivational