- BACKGROUND OF THE STUDY
Employees are valuable resource of any organization. Labour productivity now a day has been main concern of organizations. It is customarily accepted that employees discover valuable source of competitive edge for firms. There is current discussion on how human resource management policies impact the performance of employees. Human resource management theorists are making efforts and planning to try to construct an informal bond between human resource management and performance. There is too much interest in this field now days. This study tries to find this gap by investigating the effect of employee reward management and performance of organizations in Nigeria. Employee receives different kinds of benefits in the form of wages, salaries and pay. Half of cash flow of companies is usually equal to reward, although it is more than half in service sector. Mostly individuals with good education are unsatisfied with their job and salary packages and it results in their turnover so organizations plans reward plans for them to stop the turnover and to motivate them. In other words you can say that reward motivates employee for better performance. The concern of this study is to find the sector where development can be possible. Systems of rewards and rewards have much importance for the performance of any organization. A considerable setup for reward and reward structure can highly enhance the profitability and effectiveness of an organization. Employee rewards system refers to programmes by different organizations to reward performance and motivate employees on individual and/or group level. In designing a reward system, the organization should specify group or organizational goals to be achieved and the specific behaviours or performance that will attract rewards. By so doing the rewards system will help management shape behaviour of employees and at the same time achieve organization’s goal. According to the Chartered Management Institute (2009), “the notion of rewards system is gradually replacing the traditional idea of a standard pay system, as it incorporates all aspects of employee compensation into the package”. According to Fay and Thompson (2015) “Rewards systems have a critical role in determining the organization’s ability to attract high potential employees and to retain high performing employees to achieve greater levels of quality and performance”. Researchers have abundantly dealt with the issue of organisational performance; however, sparse studies have considered the role of reward management on the performance of organizations. With the rapid wave of changes that organisations are undergoing perhaps due to increased global competition, developments in Information Communication and Technology (ICT), and changes in workplace demographic characteristics, the relevance of organisations in terms of their performance, rests in reforming their reward systems (Armstrong, 2014), in order to get the best from its employees and consequently, withstand the tides of incessant competition. A series of theoretical and empirical evidence has demonstrated that performance of organisations has continued on a downward path (Jones & Culbertson, 2011). Whereas there has been a number of interventions to ensure efficient and effective organisational performance such as improving reward management systems, improving on communication systems, capacity building programmes, among others, these have had meticulous success in other settings like in manufacturing sector (Ong & Teh, 2012), health sector and education sectors. The desire to investigate the role of reward management on performance of Brendtitech technologies, therefore, inspired this study. Reward management has been singled out by many researchers as a major predictor of organisational performance (Agwu, 2013). This is so because they help maintain a positive motivational environment for workers, they determine both business goals and employee values which are essential in organisational performance (Armstrong, 2014). Despite the fact that reward management has received substantial research attention, this has dwelt more on developed and emerging economies (Carton, 2013), with little done in the developing economies (Agwu, 2013), yet research findings in the context of developed economies may not with certainty suit low developing economies due to variations in social, political and economic attributes. The purpose of this study was to examine the effect of employee reward management on organizational performance.
1.2 STATEMENT OF PROBLEM
There is increasingly a need for organization to be in a position of understanding appropriate rewarding system that motivates their employees for higher organizational performance. What appropriate rewards that should form the employment package are currently challenging organizational performance. In Nigeria various reward packages are used and these involve monetary (extrinsic) and non-monetary (intrinsic) rewards. For example, in the context of monetary reward salary increase is sought to be highly essential for employees’ satisfaction (URT, 2010). However, little is known in Nigeria about the effect of other reward tools on employee and organisation performance. These studies indicated in today’s environment, employees including technological firm employees are motivated by both intrinsic (internal) and extrinsic (external) rewards for greater work/ organisation performance and that none of the two sets of reward systems should be overlooked by managers when motivating employees for higher performance. That is, in most of these studies, each tool /factor within both extrinsic and intrinsic reward was a highly significant factor which affects employees’ performance. Worst still the aspect of rewards more so pay has never been given the attention it deserves to match the workload. This may have affected performance of some employees and there is need to investigate these two important concepts (rewards and performance) with a view to presenting the causal link between the variables that was meant to guide effective policy implementation. It was upon this premise that the research was undertaken to generate new findings aimed at bridging the gap.
1.3 AIMS OF THE STUDY
The major purpose of this study is to examine employees reward management and organizational performance. Other general objectives of the study are:
1. To examine the reward systems currently used in organizations in Nigeria.
2. To examine the employee’s perception of reward system used by organizations in Nigeria.
3. To examine the impact of employee reward management on organizational performance
4. To examine the factors that facilitates the role of reward management on organizational performance.
5. To examine the relationship between employee reward management and organizational performance.
6. To make recommendations on how to enhance the role of reward management on organizational and employees’ performance.
1.4 RESEARCH QUESTIONS
1. What is the reward systems currently used in organizations in Nigeria?
2. What is the employee’s perception of reward system used by organizations in Nigeria?
3. What are the impacts of employee reward management on organizational performance?
4. What are the factors that facilitate the role of reward management on organizational performance?
5. What is the relationship between employee reward management and organizational performance?
6. What are the recommendations on how to enhance the role of reward management on organizational and employees’ performance?
1.5 RESEARCH HYPOTHESES
H0: There is no significant impact of employee reward management on organizational performance
H1: There is a significant impact of employee reward management on organizational performance
H0: There is no significant relationship between employee reward management and organizational performance.
H1: There is a significant relationship between employee reward management and organizational performance
1.6 SIGNIFICANCE OF THE STUDY
In view of the study objectives, findings of this study will have some practical relevance. First, it will provide a deeper understanding of the appropriate reward systems that required to be adopted by organizations to influence employees work performance. Second, the findings of the study will help the planners of Human Resource rewarding system on how to implement appropriate reward strategies within the organisation to enhance work performance. Third, tome of this study will help management of organizations to reflect more on the purpose and benefits of rewarding employees in line with work performance. Finally, the findings of this research will add to the body of knowledge in the field of reward systems in organizations, especially Brendtitech technologies on their suitability and adequacy of reward packages to be introduced to lift employees’ performance.
1.7 SCOPE OF THE STUDY
The study is based on employees reward management and organizational performance, a case study of Brendtitech Technologies Ltd.
1.8 LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
Reward: 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.
Reward Management: Is concerned with the formulation and implementation of strategies and policies in order to reward people fairly, equitably and consistently in accordance with their value to the organization. It deals with the development of reward strategies and the design, implementation and maintenance of reward systems (reward processes, practices and procedures) which aim to meet the needs of both the organization and its stakeholders. Reward can be regarded as the fundamental expression of the employment relationship.
Organizational performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).