DOI: 10.36347/sjebm.2018.v05i08.004

Pages: 734-744

The study focused on the implication of performance management for potential wage capping: a study of oil and gas servicing companies in River State Nigeria: 2011-2016, with reference to Petro-Scope Energy Nigeria Limited and Phoenix Energy Nigeria Limited. The specific objectives of the study were among others to; ascertain the impact of performance management and other variables on wage rate and examine the effects of performance management on employees’ performance in Petro-Scope Energy and Phoenix Energy Nigeria Limited. The researchers made use of survey research design, primary and secondary data was used. The population of the study consists of the employees of both organisations. Multiple Regression analysis and Pearson Product Moment Correlation analysis was used to analyse the objectives. The major findings revealed a significant and positive relationship between Performance Management, Cost of Living Index, Level of Salary Payable within the Industry and Wage Rate in Petro-Scope Energy and Phoenix Energy Nigeria Limited.Also performance management have a strong positive effects on employees’ performance in the organisations. The researchers concluded that performance management system would be inconclusive and ineffective if it does not have a corresponding impact on employees wage rate, and recommended that Petro-Scope Energy Nigeria Limited and Phoenix Energy Nigeria Limited should adopt performance management practices that are consistent with their organisational long-term policy which best fit their nature of work performed and the mission of their organisation. In doing this, it should maintain an alignment with employees reward system.