THE ROLE OF REWARD MANAGEMENT IN ORGANIZATIONAL PERFORMANCE (A STUDY OF UNIVERSITY OF NIGERIA NSUKKA)
ABSTRACT
This research assessed the role of reward management in organizational performance with special reference to University of Nigeria Nsukka in Enugu State. The research tried to examine the role of reward management in enhancing organizational performance of University of Nigeria Nsukka and to formulate remedies as to how to enhance its effectiveness and efficiency in its management and administration. To achieve the above research objective, four research hypotheses have been advanced to include that there is no positive relationship between monetary rewards and employees performance among staff in University of Nigeria Nsukka; that there is no significant relationship between non-monetary reward and employee's performance among staff in University of Nigeria Nsukka; that there is no positive relationship between reward and employee motivation among staff in University of Nigeria Nsukka and that there is no positive relationship between total reward system and job satisfaction of the staff in University of Nigeria Nsukka. The study uses the survey research method. The population of the study constitutes of academic and administrative staff of University of Nigeria Nsukka. The findings of the study include that; there is a significant relationship between monetary rewards and employees performance among University of Nigeria Nsukka Staff; that there is a significant relationship between non-monetary rewards and employees performance among staff in University of Nigeria Nsukka. Based on the findings of this project, it was concluded that; both monetary and non-monetary rewards have significant effects to the staff performance in University of Nigeria Nsukka. Further, that there is a significant relationship between reward system and job satisfaction of employee. It was recommended that a more comprehensive study can be extended to all private and public tertiary educational institutions to ensure that better generalizable findings can be achieved.
TABLE OF CONTENTS
TITLE i
APPROVAL ii
CERTIFICATION iii
DEDICATION iv
ACKNOWLEDGEMENT v
TABLE OF CONTENTS vii
ABSTRACT x
CHAPTER ONE INTRODUCTION
Background of the Study1
Statement of the Problem4
Objectives of the Study6
Research Questions7
Research Hypothesis8
Significance of the Study9
Scope of the Study10
Limitations of the Study11
Definition of Terms11
CHAPTER TWO LITERATURE REVIEW
Introduction14
Conceptual Framework14
The Total Rewards Process17
Types of Rewards20
Empirical Review35
CHAPTER THREE
RESEARCH AND METHODOLOGY
Research Design53
Area of the Study53
Source of Data54
Population of the Study54
Sample Size Determination55
Sampling Technique56
Instrument of Data Collection57
Validity of Research Instrument
(Questionnaire) 58
Reliability of Test Instrument58
Method of Data Analysis59
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Data Presentation61
Data Presentation and Analysis70
Testing of Hypotheses88
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of Findings97
Implications of the Study98
Organization99
Employees99
Conclusions100
Recommendations101
Bibliography 104
Appendixes 107
CHAPTER ONE INTRODUCTION
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 University of Nigeria, Nsukka, Enugu State.
The former Nigerian college of Arts, Science and Technology, Enugu, was incorporated into the University in 1961, and its buildings now form the Enugu Campus (200 hectares) of the University located in the heart of Enugu, the administrative capital of Enugu State of Nigeria. Enugu is a modern city, accessible by air, rail and road. The faculties of Business Administration, Environmental Studies, Law and Medical Sciences are located at the Enugu Campus.
The Teaching Hospital (UNTH) attached to the University is presently sited at Ituku - Ozalla (25 kilometres) South of Enugu on a 500 hectare site. It also hosts the Faculty of Dentistry and Health Sciences and Technology.
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).
OBJECTIVES OF THE STUDY
The main objective of the study is to examine the role of reward management on organizational performance with specific reference to University of Nigeria, Nsukka (UNN).
Specific objectives of the study include the followings:- i)To examine the relationship between monetary rewards and
employees' performance in an organization.
ii) To examine the relationship between non-monetary reward and employees' performance in an organization.
iii) To determine if there is a relationship between reward and employee motivation.
iv) To determine if there is a relationship between the total reward system and job satisfaction of the staff of University of Nigeria, Nsukka.
v) To determine the factors that facilitate the role of reward management on organizational performance in UNN.
vi) To make recommendations based on the findings of this study as to how to enhance the role of reward management on organizational and employees' performance.
RESEARCH QUESTIONS
This research is conducted to examine the role of reward management on organizational performance with specific reference to University of Nigeria, Enugu Campus.
The research questions are posed as follows:-
i) Do monetary rewards influence employees' performance among staff in UNN.
ii) Do non-monetary rewards influence employees' performance among staff in UNN.
iii) Is there a positive relationship between reward and employee motivation?
iv) Is there a positive relationship between total reward system and job satisfaction of the staff in UNN?
v) What factors facilitate the role of reward system/management on organizational performance?
RESEARCH HYPOTHESES
Subsequent to the aforementioned objectives and research questions, the following hypotheses have been formulated and shall be subjected to a suitable empirical statistical test.
Hypothesis I
Ho:There is no positive relationship between monetary rewards and employees' performance among staff in UNN.
Hi:There is a positive relationship between monetary reward and employees' performance among staff in UNN.
Hypothesis II
Ho:There is no significant relationship between non-monetary reward and employees' performance among staff in UNN.
H2:There is a significant relationship between non-monetary reward and employees' performance among staff in UNN.
Hypothesis III
Ho:There is no positive relationship between reward and employee motivation among staff in UNN.
H3:There is a positive relationship between reward and employee motivation among staff in UNN.
Hypothesis IV
Ho:There is no positive relationship between total reward system and job satisfaction of the staff in UNN.
H4:There is a positive relationship between total reward system and job satisfaction of the staff in UNN.
SIGNIFICANCE OF THE STUDY
The significance of the current study lies in its theoretical and practical contribution as follows:
i) 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 University of Nigeria, Nsukka Enugu State and other organization in Nigeria".
ii) The study is also 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.
iii) The study is important because it will serve as a reference point for both present and future researchers who intends to carry on similar study.
SCOPE OF THE STUDY
This research is limited to staff in University of Nigeria, Nsukka in Enugu State. This is due to time constraint which made the researcher unable to cover other universities. For this study, the researcher only focused on the group respondents from executive level and above and in non- academic division. The numbers of respondents that involve within this research are 364 persons. The respondents were identified using stratified random sampling.
LIMITATION OF THE STUDY
Every research work is subjected to certain limitations.
In this study, the limitations include:
1. 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.
2. Finance
Financial constraint also pose a big threat in this study. The researcher would've wanted to cover order areas but due to financial constraint.
3. Uncompromising attitudes of respondents, especially in releasing vital information to the researcher to enable her.
DEFINITION OF TERMS
!Extrinsic Rewards
This is outcomes supplied by the organization and includes salary, status, job security and fringe benefits.
!Intrinsic Rewards
This is personally satisfying outcomer; and they includes feelings of achievement and personal growth.
!Non-Monetary Reward
They range from small merchandise rewards to certificates of appreciation.
!Monetary Reward
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.
!Reward Management
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.
!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.
Basic Types of Reward
!Extrinsic Rewards
Satisfy basic needs survival, security pay, conditions, treatment.
!Intrinsic Rewards
Satisfy higher needs; esteem, development.
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