EFFECT OF REWARD MANAGEMENT ON EMPLOYEE PERFORMANCE(A STUDY OF INNOSON MANUFACTURING COMPANY LIMITED) ABSTRACT This research work examined Effect of Reward Management on Employee Performance. A study of Innoson Manufacturing Company Limited. The objectives of the study include to: find out the effect of salary/wage on punctuality of the workers, ascertain the relationship between development opportunities and absenteeism of the workers and determine how recognition affects commitment of the workers. The researcher adopted the survey method of research. The sources of data were the primary and secondary sources. The population of the study was 602 while the sample size of 112 was determined using the Taro Yamane’s formula. The data collected are presented in tables of frequencies, and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that Salary/wage has effect on punctuality of the workers, there is a relationship between development opportunity and absenteeism and recognition has effect on commitment of the workers. The researcher concluded that reward management has an effect on employee performance and it was recommended that management of manufacturing organizations should consider the salary/wage of the employees, management of manufacturing organizations should provide development opportunities for their workers and workers in both lower and higher echelon should be recognized in organizations.
TABLE OF CONTENTS CHAPTER ONE INTRODUCTION 1.1 Background of the Study 1.2 Statement of the Problem 1.3 Objectives of the Study 1.4 Research Questions 1.5 Research Hypotheses 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitation of the study CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 Conceptual Framework of the Study 2.2 Theoretical Framework 2.3 Empirical Review 2.4 Summary of Review of Related Literature 2.5 Gap in the Review of Related Literature CHAPTER THREE METHODOLOGY 3.1 Research Design 3.2 Sources of Data 3.2.1 Primary Sources 3.2.2 Secondary Sources 3.3 Area of the Study 3.4 Population of the Study 3.5 Sample Size Determination 3.6 Sampling technique 3.7 Sample Size Distribution 3.8 Validity of the Instrument 3.9 Reliability of the Instrument 3.10 Technique of Data Analysis CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 4.1 Data Presentation and Analysis 4.2 Bio-Data 4.3 Data Relating To Research Questions 4.3.1 Research Question One 4.3.2 Research Question Two 4.3.3 Research Question Three 4.4 Test of Hypotheses 4.4.1 Test of Hypothesis One 4.4.2 Test of Hypothesis Two 4.4.3 Test of Hypothesis Three 4.5 Discussion of Findings 4.5.1 Discussion Based on Hypothesis One 4.5.2: Discussion Based on Hypothesis Two 4.5.3: Discussion Based on Hypothesis Three CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings 5.2 Conclusion 5.3 Recommendations 5.4 Contribution to Knowledge 5.5 Suggestions for further Research List of References Appendix Questionnaire
CHAPTER ONE INTRODUCTION 1.1 Background of the Study Reward constitutes an important element in human resource management. It is largely seen as managing expectations, which is what employees expect from their employers in return for their contribution and what employers expect from their employees in return for their pay and opportunity to work and develop their skills. In the words of Akpa (2014), reward management deals with the strategies, policies and processes required to ensure that the contributions of people to the organization is recognized by both financial and non-financial means. It is about the design, implementation and maintenance of reward systems (reward processes, practices and procedures), which aim to meet the need of both the organization and its stakeholders. The overall objective is to reward people fairly, equitably and consistently in accordance with their value to the organization in order to further the achievement of the organizations strategic goals. Furthermore, Owoyemi (2015), posits that reward management is not just about pay and employee benefits, it is equally concerned with non-financial rewards, such as recognition, learning and development opportunities and increased job responsibility. There appears to be a close relationship between employees’ overall satisfaction with their jobs and their organization and their intention to stay or leave. Organizations could benefit from implementing a total reward programme that focuses on both rewards and informal recognition. The minimum an employee looks for when entering into the organization is fair pay, sufficient working condition and fair treatment. But employees are always going to expect more just in the same way that management would expect more. Armstrong (2014), asserts that management expects that employees have the ability to work in relation to the business objectives. Employees on the other hand vary in expectations often relating to their needs in security and challenge. This is where, for the employees, management need to be able to address these expectations by having a great understanding of what motivates them. Reward management is based on a well-articulated philosophy. The philosophy recognizes that if human resource management is about investing in human capital from which a reasonable return is required, then it is proper to reward people differentially, according to their contribution (Berridge, 2013). Reward management adopts a “total reward” approach which emphasizes the importance of considering all aspects of reward as a coherent whole, which is integrated with other human resource initiatives designed to achieve the motivation, commitment, engagement and development of employees. According to Luthans (2011), motivation is the driving force that stimulates an individual to action to achieve and accomplish desired goals and it is argued that reward management is an important tool that management can use to channel employee motivation in desired ways. In other words, reward system seeks to attract people to join the organization and keep them coming to work and motivate them to perform at high levels. It is based on this backdrop that this research wants to examine effective reward management and employee performance using Innoson Manufacturing Company Limited as a case study. 1.2 Statement of the Problem Management experts believe that it is difficult to predict how a person’s behaviour could be influenced by reward. This is because; reward can turn out to have a negative influence if it does not meet the expectation of the employees. The effects of not managing reward in an organization can lead to increase in employee turnover. This is because when the reward offered by the management of the organization does not meet the expectations of the employees, it can create dissatisfaction and loss of morale in the organization, making the employees to seek employment in other organizations. Furthermore, when an organization does not have effective reward management system, it can lead to employees feeling that they are not justly treated in accordance with what is due to them and this can demoralize them. Moreover, another effect of not managing reward effectively on an organization is that it can lead to decrease in the net profit of the organization as the employees will not be committed. 1.3 Objectives of the Study The main objective of this study is to examine the effect of effective reward management on employee performance. However, the specific objectives are: 1. To find out the effect of salary/wage on punctuality of the workers 2. To ascertain the relationship between development opportunities and absenteeism of the workers 3. To determine how recognition affects commitment of the workers 1.4 Research Questions The following research questions were raised based on the objectives of the study. 1. What is the effect of salary/wage on punctuality of the workers? 2. What is the relationship between development opportunities and absenteeism of the workers? 3. How does recognition affect commitment of the workers? 1.5 Research Hypotheses Based on the research questions, the researcher formulates the following hypotheses. Hypothesis One H0: Salary/wage does not have a positive effect on punctuality of the workers H1: Salary/wage has a positive effect on punctuality of the workers Hypothesis Two H0: Development opportunities does not have a significant relationship with absenteeism of the workers H1: Development opportunities has a significant relationship with absenteeism of the workers Hypothesis Three H0: Recognition does not positively affect commitment of the workers H1: Recognition positively affects commitment of the workers 1.6 Significance of the Study This study shall be of great benefit to managers of business organizations in the manufacturing industry. They will discover the various ways of managing reward in their organizations and the specific effect they have on employee motivation. The study shall also be of great benefit to the academia as it shall be a reference material to scholars and students who may wish to research on similar topics. 1.7 Scope of the Study This study covered the effect of t effective reward management on employee performance, the various ways of managing reward, the challenges militating against effective reward management. The organization studied by this research is Innoson Manufacturing Company Limited, Enugu. 1.8 Limitations of the Study The researcher encountered some impediments in the course of carrying out this research work. Among them was insufficient fund. Insufficient Fund: The researcher initially had insufficient fund to carry out all that was supposed to be done, but this was eventually surmounted.
EFFECT OF REWARD MANAGEMENT ON EMPLOYEE PERFORMANCE(A STUDY OF INNOSON MANUFACTURING COMPANY LIMITED)
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