DISTINGUISH BETWEEN THE IMPACTS OF COMPENSATION PRACTICES ON MANAGERIAL AND NON MANAGERIAL EMPLOYEES PRODUCTIVITY IN APPAREL INDUSTRY OF SRI LANKA.

Compensation is defined as money or remuneration received by an employee for the performance of work and various benefits provided by the organization. Compensation practices and its impact on managerial and non-managerial employee productivity in Apparel Industry of Sri Lanka, as the research topic indicated the dependent variable of this study was employee productivity while the independent variable was compensation practices consist of salary, annual increment, bonus and incentives. The problem of Apparel Industry as the Management has addressed as that there was a high rejection rate of product pieces than the expected level and lack of proper supervision on the production process. The general objective of this research was to suggest the management the ways and means to enhance employee productivity both managerial and non-managerial through addressing the significance of compensation practices. This research has followed the mixed methodology as questionnaires and the interviews were the main methods that have used to gather data. The target population was the employees of Apparel Industry and the sample has selected by the stratified sampling method while identifying each department of the company as a strata. Focus group discussions, Questionnaires, Internet & websites, organizational annual reports and journal articles were used to collect data and percentages, frequencies, tables and charts were used to present data while using statistical package as SPSS and Microsoft Excel were used to analyze data. The research has identified a moderately strong positive relationship between non-managerial employee productivity and compensation practices practice while managerial employees are having weak positive relationship between compensation practices and employee productivity. Therefore the research has found the compensation practices as salary, annual increments, bonus and incentives are lead to motivation, retention, performance, goodwill, employee effort and desired results of an employee which gain non-managerial employee productivity. However the managerial employees are less influenced by the compensation practices and influenced by the intangible motivators like recognition, gratitude, respect, and appreciation.