Remuneration Practices and Organisational Performance in the Manufacturing Industry in Zimbabwe. A Case of Olivine Industries Ltd, Zimgold Oil Industries and United Refineries Ltd

Abstract

The aim of the study was to establish the relationship between remuneration practices and organisational performance in the manufacturing industry in Zimbabwe. A case of Olivine Industries Ltd, Zim Gold Oil Industries and United Refineries Ltd. The research was inspired by the marked decline of performances in the manufacturing industry in Zimbabwe, which includes Olivine Industries Ltd, ZimGold Oil Industries and United Refineries Ltd. The research also identified factors affecting the choice of remuneration practices in the manufacturing industry. The research used a mixed research approach that is qualitative and quantitative. Questionnaires were administered. The study was undertaken with a sample of 317 respondents drawn from the oil firms. The findings showed that cost of living, labour unions, labour market, government legislations, society and social factors are external factors affecting the choice of remuneration practices in the oil industry and the ability to pay, employee-related factors, job requirements, organisation’s strategy, seniority and potential of employees are internal factors influencing the choice of remuneration strategy. Recommendations were that the manufacturing industry should use skill-based pay, pay for performance, as the best remuneration practices for improved performance.