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1.2 Theoretical Framework
1.2 Theoretical Framework
From the topic of managerial accounting focusing on the effects of employee’s compensation
towards their commitment and performance. As a result, it will strive to include all of the
relevant details in order to make the study's purpose clear.
Compensation practices include not only wages, but also direct and indirect compensation and
benefits provided to employees in return for their performance. Life insurance, disability
income protection, retirement benefits, daycare, tuition reimbursement, sick leave, paid and
free vacation, education funding, and flexibility and alternative job arrangements are just a few
of advantages that result with employee performance.
Compensation is frequently restricted to cash reward, and as a result, employers have a tunnel
vision when it comes to employee compensation. Other aspects of compensation that make up
an employee's total compensation plan attract less consideration.
1.5 Hypothesis
Null (Ho): There is no significant difference between employees’ compensation towards to their
This study would be focused on the Employees commitment and performance based on their
compensation.
Intrinsic rewards
Management
Work Commitment
Performance
Employee
5
Compensation