CHAPTER THREE

METHODOLOGY AND ORGANISATIONAL PROFILE

Introduction tomethodology

This chapter outlines the steps and procedures followed in conducting

the research. To be precise, the chapter presents the procedures to be

used in selecting research subjects, developing the research

instruments, gathering and analyzing data, and making meaning of the

data that iscollected.

In defining the term 'methodology' it can be said to refer to the sets of

structured procedures and instruments used in conducting a research.

A framework within which to record facts, document them and

interpret them in a piece of research. Two fundamental approaches

exist to methodology and researchers are naturally inclined to use

either of them, they are the qualitative and the quantitative methods.

Qualitative research is more descriptive and quantitative research more

often draws inferences based on statistical procedures and often makes

use of graphical presentations and figures in its analysis (Ghauri and

Grönhaug, 2005). In recent times researchers commonly employ the

use of both qualitative and quantitative methods in a single research

(Ghauri and Grönhaug, 2005).

This study incorporates the use of both methods to some extent; the

researcher however uses more of the quantitative approach than the

qualitative approach. The latter was also useful in the aspects of the

research which require explanation to observed correlations or

relation. The Quantitative research methodology allowed for gathering

empirical measurement of the impact of compensation management on

employee performance and the Qualitative approach was more handy

whiles probing into and exploiting the views of respondents and

clarifying ambiguous responses.

The researcher took to cognizance the importance of the credibility

and validity of the research findings and therefore the research

methods employed in data gathering, analysis and interpretation, were

all accepted methods and procedures that also help make the final

report an easy read. The various aspects of the research methodology

covering the research design, population and sampling, instruments,

data collection procedure and mode of analysis used in this study is

detailed below.

ResearchDesign

A cross-sectional survey was employed for this study. Cross-sectional

research is a research method which utilizes different groups of people

who differ in the variable of interest, but share other characteristics

such as socioeconomic status, educational background, and ethnicity.

According to (Fraenkel & Wallen 2006), in using the cross-sectional

survey information is collected from a sample that has been drawn

from a predetermined population and information is collected at just

one point in time. This design was adopted to enable the researcher

gather information from a group targeted sample who are part of the

main population of Commercial Bank of Ethiopia Pawi branch . This

sample comprises management staff, senior (non-management) staff,

middle level staff and junior staff. The objective is to be able to

capture some characteristics such as perceptions, and to make relevant

inferences from the data collected representative of the entire

population.

Data from both primary and secondary sources were used for the

study. Primary data was gathered from employees of Commercial

Bank of Ethiopia Pawi branchwith the help of the survey

questionnaire and personal interviews to clarify some responses and

secondary data was gathered from sources including various published

sources which included books on general organization, human

resources management, journals and internet resources as well as the

Administrative and Procedural manuals, Conditions of Service Manual

(CBA) of Commercial Bank of Ethiopia pawi branch. Data collected

was analyzed using frequencies, percentages, tables andgraphs.

Study Population

The entire Commercial Bank of Ethiopia Pawi branch was the sample

population considered for this study. But for efficiency in management

the researcher decided to use a cross section of 45 permanent staff of

the population of the Commercial Bank of Ethiopia Pawi branchwhich

constitutes 45 percent of the permanent staff of the Bank. The total

population of the Bank is

100. The 45 selected is spread across the management level, senior

non-management staff, middle level staff and junior staff.

Sample and Sampling Procedure

The researcher chose a sample size of 45 for the study. The permanent

staff were selected from seven departments (General Administration

Department, Department, Accounts, and Medical records

Departments) for the study. The sample size and the departments

selected is representative of the entire population of the Commercial

Bank of Ethiopia pawi branch Bank. To be able to properly manage

the data collection the total list of all permanent staff of the branch in

the sampled departments was taken from the Human Resource Office

and it was on this that the sample of 100 was selected.

The Stratified Sampling procedure was used in determining the exact

sample numbers to use. The formula which shows the relation between

the total population and the sample size is shown below and this was
 used as indicated by the table (also shown below) to determine the

actual sample: (source: [Link]

nn = n/N X Nn

Where n = sample size

Nn = the size of a stratum

nn = sample from a stratum

N = Total population

Table 3.1 Sample of Population

Population Sample size (n) % Sample From

Stratum (Nn)
Management Staff 9 3.2 4
Senior non-management staff 58 21.2 21
Middle level staff 83 30.3 30
Junior Staff 124 45.3 45
TOTAL 274 100 100

The researcher selected 100 from the population of 274 and employed

the use of the formula to determine for example the number of junior

staff as follows: 124/274 x 100 = 45. These 45 were then selected with

the help of the nominal roll in the institution which was obtained from

the human resource office in theBank.

Data collectioninstruments
The researcher employed the use of questionnaires and interviews as

the instruments

[Link]

usedto

enable the researcher get clarification for some of the responses obtained from
the
respondents. In other words interviewing was used as a support

instrument to the questionnaires.

Questionnaires

The questionnaires used by the researcher as an instrument for the

collection of data was divided into three sections. The first section

covered the bio-data of the respondents and required them to provide

data on the type of respondent they were; management, senior non-

management, middle level or junior staff. It also required the

respondents age, sex and department and their length of service with

their organization. The second section addressed the first research

question which was to establish the link between compensation

management and employee performance. The third and final section

captured date on the other three specific objectives of the study, which

were to identify the compensation packages available in the St

Michael’s Bank, investigate into the challenges associated with the

management of these compensation packages and identify other forms

of compensation and make recommendations to address thechallenges.

Interviews

The researcher used this data collection instruments as a support to the

questionnaires to seek clarification on some responses from the

respondents and also to ascertain from some key persons in

management the existence of certain compensation packages. It was

therefore not used for all the respondents.

Data analysistechnique

The researcher employed the use of the Statistical Package for Social

Science (SPSS) to analyze the data that was collected for the study.

These data was organized with the help of the software into figures

and tables to present and discuss the results of the study.

ORGANISATIONALPROFILE

History ofOrganisation

St Michael’s Catholic Bank was established through the initiative of

Dr J.D Vervoon of Holland and with the support of the then Catholic

Bishop of Kumasi, Rt. Rev Bronck, Chief and people of Pramso in

September 1958 as a clinic and upgraded into a Bank in 1960. It is

located 5 kilometres from Kuntanase, the District Headquarters and 20

kilometres from Kumasi on the Kumasi Lake Bosomtwe road.

The vision statement of the Bank is “To continue Christ’s healing

ministry in bringing healing to the greatest possible number of people

in the provision of total quality patient care through healers of good

ethical and moral standards; who are conscious as well as

professionally competent, motivated and united in their common

respect for fundamental human values”

And the mission statement is that the Bank seeks to provide holistic

health care by advancing Christ Healing Ministry to all manner of

people with respect, integrity, compassion, excellence and at all times

acknowledging the integrity of the patient.

Staffingsituation

St Michael’s Bank is currently made up of 274 permanent staff

comprising of 96 males and 178 females. This can further be broken

down into the various levels of staff as follows: management staff are

9 (3%), senior non-management staff are 59 (22%), middles level staff

are 82 (30%) and junior staff are 124 (45%). There are a few ward aids

and casual and temporal worker also in the Bank who were not

counted for the purposes of thisstudy.

Services provided by theBank

The Bank is a general Bank and provides a wide range of diagnostic,

curative and preventive services befitting its status as the District

Referral facility. These include; 24 hour Out and Inpatient (OPD)

Care, Laboratory Services, X-Ray, Ultra Sound, Surgical Services

(both emergency and elective), Ophthalmic Services (Eye Clinic)

Child Welfare and Primary Health care facility, Reproductive Health

Care and Safe Motherhood, ear nose and throat services (ENT) as well

as Specialized Clinic for Diabetic, HIV/AIDS, TB, and other patients

with chronic diseases or conditions.

3.3.4 Relevance of subject matter toorganization

St Michael’s Bank has a variety of employees who perform various

jobs within and sometimes outside the organization. An effective

compensation system is therefore needed to be able to keep these

employees motivated to sustain their performance. Even though there

exist a compensation system that is currently being implemented by

the management of the Bank its effectiveness in terms of management

in sustaining the motivation of employees to influence performance

positively will require a second look, hence the relevance of a study in

thatregard.