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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