EFFECT OF REWARD MANAGENMENT ON ORGANIZATIONAL PERFORMANCE [A STUDY OF NIGERIAN BREWERIES PLC ENUGU]

ABSTRACT

This study is focused specifically on the Influence of Reward Management on Organizational Performance using NIGERIA BREWERIES PLC., ENUGU as a case study. Three research questions and three hypotheses were formulated. The population for this study was made up of 260 and Taro Yamani formula was used to determine the sample size of 158 respondents who worked in various departments of the company. Descriptive survey design was employed. The study elicited opinions of the subject on the influence of reward management and its effect on employee’s performance. The major instrument used in the data collection for the study was questionnaire. The test of hypothesis was conducted using chi-square with the aid of SPSS software, thus, establishing the fact that reward management is a significant tool for employee performance. The hypotheses were statistically significant therefore: the study accept all the alternative hypotheses. The study concludes that reward management is a relevant technique in the enhancement of employee’s performance in an organization. The study recommends that every manager should recognize the importance of reward management in order to enhance commitment, because reward management is a secret to success. Again, employees should learn to plan in order to utilize their reward judiciously and save time for their social lives.

CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
          Organizations are established with the aim of effectively utilizing various available human and non-human resources to achieve certain objective. Among these resources in human, which is commonly seen as the most valuable asset an organization could use to earn competitive advantage and achieve its objective, hence the need for human resources management to ensure optimum productivity and organizational continuous existence.
          According to Sono (2014) organization is treated as a dynamic process and a managerial activity which is essential for planning the utilization of company's resources, plant an equipment materials, money and people to accomplish the various objectives. According to Noe (2012) human resource has been tagged the most valued asset of any organization. Its strategic approach emphasized a "tight fit" between individual needs, rights, ambitions, and goals within the organization which make compensation system central in the affairs of emerging students, scholars and HRM practitioners in the world over. The emergence of human resource management posed great threat to the conventional personnel management and industrial relation because it evolved from the core approach or organization relationship. It is an asset that should be invested upon so as to provide long-term commitment and high performance in an organization. As organizations strive to achieve one or more objectives through exhaustive utilization of human capital, so also, the employees aim towards achieving individual purpose (objective) while working for the organization.
          Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. Reward management also is the instrument used to increase employees' productivity. It seeks to attract and retain suitable employees, encourages good management - employee relationship and commitment and minimizes tension and conflict as it deals with all forms of final returns, tangible service and mechanism for good relationship (Murlis & Armstrong, 2009).
          Furthermore, the major case of industrial conflict is based on the fact that employees feel their benefit are denied or about to be denied thus the importance of compensation system is to provide a good platform for equity arid fairness. This provides a challenging environment and increase productivity of employees (Peters & Waterman, 2009). The compensation system ensures that both intrinsic and extrinsic needs of employee at all levels are adequately provided for compensation develops organizational integrity, policy, procedures and practices capable of improving organizational productivity. Reward is concerned with employees and organization performance development through which better result can be achieved by understanding and managing reward and compensation within an agreed framework, planned goals, standards and competency requirements.
          The success of the industry rests so much on its human resources capability, which is the most valuable asset of any organization. The challenging tasks of every manager at all level are how to build a befitting reward and compensation system to incorporate both organizational goals and individual needs, thus, have a motivated workforce and improve productivity (Ouchi, 2014).
          However, the study examines the influence of reward management on organizational performance, the basis of good reward and compensation structure, employees' expectation at different levels and how the compensation structure is based on performance of individuals or job requirement of employees. The researcher therefore tends to draw attention all employers to the need for effective and efficient reward management capable of improving employees' performance and enhance organizational productivity.

1.2     Statement of the Problem
          Some organizations over the years see employee as additional cost as well as liability to their operations. These organizations do not remunerate employees appropriately, and where it is more appropriate, the reward is not commensurate with the efforts and skills that worker put into the organization's activities. Instead of paying attention on how employees will be rewarded appropriately, some organizations concentrate more on other resource, such as materials, machines and money. The effort is more on how-to improve the production process with little or no consideration for human efforts.
          This had led to the inability of such organizations to attain their set objectives. Organization success relies heavy on how much attention pay to its employees' reward policies. It is in view of this that the study seeks to know the how the reward management in organization affect the performance of employees as well as that of the organization in general.

1.3     Objectives of the Study
The major objective of this study is to examine and assess the influence of reward management on organizational performance. The specific objectives include the following:
1.       To examine the effect of reward management on the performance of an    organization.
2.       To Evaluate the available reward package and how it affect employees and organizational performance.
3.       To Ascertain the need for management to create a conducive working environment by providing both physical and psychological incentives to make employees more committed to organizational goals

1.4     Research Hypotheses
H0:    Reward management does not have any effect on the performance of an organization.
Hi:    Reward  management  has  significant  effect  on  the  performance  of an organization.
H0:    The reward package does not affect the performance of an employee in an organization.
Hi:    The  reward  package  affects  the  performance  of an  employee  in  an   organization.
H0:    Conducive working environment does not make an employee committed in attaining organizational goals.
Hi:    Conducive working environment makes an  employee committed in attaining organizational goals.

1.5    Research Questions
          For one to achieve a comprehensive research, there are certain questions that needed to be answered, therefore the research questions are:
1.       What are the effects of reward management on the productivity of an organization?
2.       To what extent does reward package affect the performance of an employee in an organization?
3.       How   does   a   conducive   working   environment   make   an   employee committed in attaining organizational goals?

1.6     Research Hypothesis
Hypothesis One:
Ho:   Reward management has no effects on the productivity of an organization.
H1:   Reward management has effects on the productivity of an organization.

Hypothesis Two:
Ho:   Reward package has no effect on the performance of an employee in an organization.
H1:   Reward package has effect on the performance of an employee in an organization.

Hypothesis Three:
Ho:   Conductive working environment does not make a employee committed in attaining organizational goals.
H1:   Conductive working environment make an employee committed in attaining organizational goals.

1.7     Significance of the Study
          The importance of this study cannot be overemphasized due to the fact that, it holds a lot benefit to ensure continuous existence and survival of organizations. The study will be great benefit to manager or human resource department of organization regarding the identification of the influence of reward management on organizational performance, it's cost and benefit on organizational operations, harmonizing employees and organizational interest to avoid sub-optimality etc.
          In addition, the study clarifies the argument on whether effective reward management adds value to organizational activities, which will enable organizations take profitable side on whether to reward employees or not. This research due to adequate review of various up-to-date literature is a source of material to post and undergraduate student and as well as researchers who may intend to undergo a study on the subject matter in future.
          Knowledge they say, is power this research work exposed the researcher to many practical issues on human resource, reward management and the respective relationship that exist between effective reward management, productivity customer patronage as well as organizational performance. In addition, the study is an avenue for the researcher to study some materials text book, journals, annual reports etc which on ordinary activity would not have thought of.

1.8     Scope of the Study
          This research work focuses on the influence of reward management on organizational performance with specific reference to Nigerian breweries Plc. in Enugu state.

1.9     Limitations of the Study
          A research work of this nature is however unpleasant with numerous problem that limit the researcher's ability especially in Nigeria where many organizations do not disclose the true information about their organization to researchers.
          The researcher found it difficult to access meaningful data concerning the organization reward, policy but has to use the limited information available. Nevertheless, the research work was adequately covered based on the available information to the researcher though it's difficult to claim a total perfection therefore the topic is opened for further build up consideration and research.
          Also the researcher had no much time for the research do to some other school works like assignments and final exam preparation. Lack of funds for transportation going round the study area, so the researcher limited the work to some selected areas.

1.10   Definition of Terms
Compensation: Compensation of all form of financial return, tangible services and benefit an employee receives as part of an employment relationship.
Industry: This is the group of firm that engage in the production of similar product (i.e. goods/services)
Productivity:  Productivity is the output unit/per labour input into the production process given the level of existing technology.
Management: This is the process of planning, organizing, staffing, leading, directing, coordinating and controlling available resources toward s achieving a target objective.
Reward: This is the core-faced of an employment relationship. Reward system consists of an organization's integrated policies process and practices for rewarding   its    employees   in   accordance   with   their   contribution   skills competence and their market worth.
Remuneration: This is the financial reward accruing to employee for his or her performance in the organization.
Motivation: It is the inner drives that arouse direct and maintain an individual behavior toward accomplishing organization goals.
Research:  Is a way of arriving at a dependable solution to business and management problem through a systematic way of data collection, data analysis and data interpretation.
Pay Structure: Is a framework for managing base pay progression over time for employee benefit.
Policy: Is organizational guiding principles that regulate its operation and activities.
Job Analysis: It is the process of getting detailed information about jobs.
Job Description: Is the setting out of the purpose of job, where it is fit in the organization structure the content within which the job holder function and the principal accountability of job older. Main task the employee has to carry out.
Job Enlargement: Is the act of combining previously fragment task into one job to add greater autonomy and responsibility to a job and is based on the job characteristic approach and maximizing the interest and challenges of work.
Job Evaluation: Is a systematic process for establishing the relative work of job within an organization.

Reward Strategy: It is a definition of the intention of the organization on how its   reward   policies   and   process   should   be   developed   to   meet business requirement.

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Item Type: Project Material  |  Attribute: 65 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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