Abstract

The paper is a perception survey of skill-based pay system and employees’ performance in Dorman long engineering company limited Port-Harcourt. The research question addressed the extent at which improved employees organizational commitment and broader role orientation is dependent on the implementation of skill-based pay system in Dorman long engineering company limited Port-Harcourt. It assumes that introduction of skill-based pay system affects the psychological contract of employees and their attitude towards the organization and their workroles. The core aspect of the study is the use of cross-sectional survey research design in generating the required primary data. The place of study is Dorman long engineering company limited Port-Harcourt while the duration of study is between May, 2012 and April, 2013. An exploratory cross-sectional survey research design was used in conducting the study using questionnaire administered on 348 randomly selected respondents from three categories of workers (50 supervisors, 150 foremen and 2,500workmen). The sample size of 348 was determined from a population of 2,700 employees using Yamane 1964 sample size determination formula at 5% level of significance for sampling error. The questionnaire responses were presented using tables, analyzed and interpreted using simple percentages while formulated hypotheses were tested using chi-square (x²). The results indicated that improved employees commitment and broader role orientation are to a large extent dependent on the implementation of skill-based pay system. It therefore recommends among others: employees participation in the design and administration of SBP system, inculcation of group identification and cohesiveness in the skill-based work environment.

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