This research assessed the effect of reward management system on employee productivity in the public sector with special reference to a state-owned tertiary institution – Lagos State University. The research examined the role of reward management in enhancing the productivity of employees in the University. This is not to unconnected with the general belief that a just and efficient reward management system enhances workers’ morale and improves their effectiveness and performance at the workplace. To achieve the above research objective, three research hypotheses were put forward. The first hypothesis determined the relationship between reward management system and employees’ morale. The second hypothesis determined if there was any significant difference between financial and non-financial reward management and workers’ effectiveness. And the third hypothesis determined if reward incentive positively affected employee performance. The study used the descriptive survey research method. And the population of the study constituted the academic, non-academic and senior academic staff of the school. The findings of the study include that; there is a significant relationship between monetary rewards and employees’ performance among it’s Staff. Also, the findings of the research showed that there was a significant difference between financial and non-financial reward management and workers’ effectiveness, and that reward incentive positively affected employee performance. Based on these findings, it’s concluded that both monetary and non-monetary rewards have significant effects to the staff performance in this public institution. Furthermore, that there is a significant relationship between reward system and employee effectiveness. It was recommended that a well-articulated blue-print on employees reward and motivation be designed whereby the management would identify the types of incentive scheme, provision of basic infrastructure and improve funding of the institution.
1.1 BACKGROUND OF THE STUDY
Employees are the most valuable asset to an organization and they play an important role in preserving the successful image of organization. Employee performance is the main factor in ensuring that the organization is run smoothly and successfully. Good employee performance will improve the organization performance. To maintain a good employee performance, a suitable performance management is needed. According to Hermann (2007:42), a performance management is defined as a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
Performance management requires all managers to ensure that all of their employee activities and outputs are congruent with the organization’s goal and therefore help the organization to gain a competitive advantage (Aguinis, 2009:22). Organization that have a good performance management will have many advantages such as increased self-esteem, clear mind regarding their organizational goals, increased motivational and others (Allen and Kilmann, 2001:110).
Managing employees’ reward appropriately is an important factor as a return for their contributions or performance to organization. According to Adam Equity Theory (1963), less reward may result to the decreasing of employees’ performance such as high number of absenteeism, as well as lack of interest in doing task that is not included in their job description. In other word calculative in whatever task given to them, not focus on their job which is also the decreasing resulted in job quality. The theory also propagate that the reduction in employees’ performance could happen whenever they felt that their contributions were not fairly rewarded. In other words, rewards can influence employees’ performance.
Employer or organization should reward the positive performance. Reward will motivate the employees and
when the employee motivation increased, it’s also will increase the employee performance. In addition, employee performance also can be enhanced through a continuous and interactive process to help departments and teams achieve business goals and to help employees to improve their performance. Increased in employees performances will increase the organization performance.
This research work deals extensively with the role of reward management on organizational performance with specific reference to Lagos State University.
1.2 STATEMENT OF THE PROBLEM
Personnel administration is very pivotal to the growth and wealth creation of any organization. Personnel administration is said to be good if it can reward and motivate its employees to enable them to put in their best performances in the organization. Some of the problems associated with total reward system include the followings:-
a)Bad and depressed economic condition in Nigeria makes it difficult to fully implement a total reward system. The employers usually cite poor economic conditions as their excuses. On the other hand, the employee who knows his worth usually cite his contributions to the growth of the organization as his reason for the demand for a better condition.
b)There is criticism that organizations in Nigeria particularly Universities miss the most important component of reward, which is the low-cost; high-return ingredient to a well-balanced reward system. Studies that have conducted on the topic indicates that the most common problem in Nigerian Organization is that they miss the most important component of reward as stated above.
c)Fear of losing one’s job makes it possible for him to demand for an improvement in his working conditions. Some workers may know their rights but they cannot demand for them for fear of losing their jobs.
d)Most employers of labour in Nigeria disregard labour laws and edicts, sometimes; this situation leaves the dejected employee with no other condition/option than to accept what is offered to him, otherwise he will face unemployment consequences. There were some cases where employees were fired for not accepting paltry reward (compensation).
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine how to enhance employee’s productivity in the public sector by deploying the reward management system. Specific objectives of the study include the followings:-
- i) To examine the relationship between monetary and non-monetary rewards and employees’ performance in an organization.
ii)To examine the difference between financial and non-financial reward management and worker’s effectiveness in Lagos State University.
iii)To determine if there is a relationship between reward and employee performance.
1.4 RESEARCH QUESTIONS
- i) Do monetary and non-monetary rewards influence employees’ performance among staff in Lagos State University?
- ii) Is there any difference between financial and non-financial reward management and worker’s effectiveness in Lagos State University?
iii) Is there a positive relationship between reward and employee performance in Lagos State University?
1.5 RESEARCH HYPOTHESES
HO1: There is no positive relationship between reward management system and employees’ morale.
HO2: There no significant difference between financial and non-financial reward management and workers’ effectiveness.
H03: Reward incentive do not positively affected employee performance
1.6 SIGNIFICANCE OF THE STUDY
The significance of the current study lies in its theoretical and practical contribution because it will make a significant contribution to the body of knowledge on non-monetary and monetary rewards and provide useful suggestions in terms of designing a better reward program and strategies to Lagos State University and other organization in Nigeria”. It will also be important in the sense that it is aimed at sensitizing policy makers and planners to have a comprehensive view in total reward system in our Universities, public and private organization. The study will further be of important because it will serve as a reference point for both present and future researchers who intends to carry on similar study.
1.7 SCOPE OF THE STUDY
This study focuses on finding out the relationship between monetary and non-monetary rewards and employees’ performance in an organization, the difference between financial and non-financial reward management and worker’s effectiveness in Lagos State University, and if there is a relationship between reward and employee performance.
The population of the study is limited to the academic, non-academic and senior academic staff of the Lagos State University.
1.8 LIMITATION OF THE STUDY
Every research work is subjected to certain limitations.
In this study, the limitations include:
- Time Constraints
Time affected the study. The time given for the completion of this study is limited. Therefore, the study was not able to cover wider area
Financial constraint also poses a big threat in this study. The researcher would’ve wanted to cover order areas but due to financial constraint.
- Uncompromising attitudes of respondents, especially in releasing vital information to the researcher.
1.9 DEFINITION OF TERMS
It deals with the design, implementation and maintenance of reward processes and practices that are geared to the improvement of organizational, team and individual performance.
Can be defined as something given or received in recompense for worthy behaviour or in retribution for evil acts. It can also be defined as the return for performance of a desired behaviour; positive reinforcement.
This is outcomes supplied by the organization and includes salary, status, job security and fringe benefits.
This is personally satisfying outcomer; and they includes feelings of achievement and personal growth.
They range from small merchandise rewards to certificates of appreciation.
These are tangible returns which includes cash compensation such as bonus, increment; short term incentive, long-term incentive and other benefits such as income protection, allowances and others
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