ABSTRACT
This study investigated the impact of organizational reward system on the employees productivity. A study of Biase plantation limited was necessitated by the need to evaluate whether the productivity of workers in the company is tie to level of organizational rewards available. To guide the study, four hypotheses were formulated. A sample size of 644 was drawn from a population of 2,793. The survey design was adopted for the study while the questionnaire was used as instrument for data collection. Data obtained were analysed using simple percentages and Karl Pearson Product moment correlation coefficient. At the end of the study, it was found that the level of rewards available and accessible to employees was sufficient enough to drive the level of staff satisfaction and thus, their performance. The study also found significant impact of organizational reward system on industrial harmony of the company. The study recommended among others that the management of Biase plantation limited should maintain and improve on the level of rewards available and accessible to staff since it positively correlates their performance.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In corporate organizations and companies nowadays, working conditions and reward system have been large, especially since World War II. The statement that working conditions and employee’s reward is the live wire of an organization is not an overstatement.
A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy. However, it might be challenging to find the right way to combine the company’s integrated policies and practices together with the employee’s contribution, skill and competence. (Armstrong, 2006).
Reward system is an important tool that management can use to channel employee motivation in desired ways. In other words, reward systems seek to attract people to joint the organization to keep them coming to work, and motivate them to perform to high levels. The reward system consists of all organization components – including people processes rules and decision making activities involved in the allocation of reward and benefits to employees in organizations.
Organizational performance is a complex phenomenon largely affected by the ability and motivation of the workforce in any firm. Monetary and non-monetary rewards are provided in organizational setting with a view to motivating and influencing individuals, team and organizational behaviour for the achievement of strategic objectives and performance of organizations (Randhawa 2008).
In consideration of the era of global hyper competitiveness in the business world, rewards are fundamental imperatives to derive maximum employee inputs, retention, commitment from workers and industrial harmony between the workforce and manufacturing concerns.
However, a good number of firms do not provide appropriate mix of rewards to stimulate individual and sub-unit behaviour to attain strategic goals resulting in dwindling performance in the manufacturing sub-sector of the Nigerian economy.
Reward practices are positively related with retaining and enhancing the skilled employees that are considered assets of an organization. (Mondy and Noe, 2010) has divided reward in two types’ financial reward and non-financial reward. Financial reward is further divided into direct and indirect financial reward. Direct reward includes bounce, good salary packages, profits and commission indirect financial reward are all those benefits that are not covered by direct financial reward. Non-financial reward consists of responsibilities, opportunities, recognition promotion, vacations, work place environment, sound policies, insurance, medical, retirement etc. All these rewards affect the performances of the employees in different manners. Reward system is an important tool that management can use to channel employee motivation in desired ways. In other words, reward systems seek to attract people to joint the organization to keep them coming to work, and motivate them to perform to high levels.
