Table of Contents
ABSTRACT.. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 7
.. 8
1.3 Objectives of the Study.. 8
1.4 Research Questions. 9
1.5 Research Hypothesis. 9
1.6 Significance of the Study.. 9
1.7 Scope of the Study.. 10
1.8 Limitations of the Study.. 10
1.9 Organization of the Study.. 11
CHAPTER TWO.. 13
REVIEW OF RELATED LITERATURE.. 13
2.1 Introduction.. 13
2.2 Theoretical Review.. 13
2.3 Conceptual Review.. 15
2.4 Empirical Review.. 18
2.5 Summary of Literature Review.. 20
Chapter Three.. 21
Research Methodology.. 21
3.1 Research Design.. 21
3.2 Research Setting.. 22
3.3 Sampling Technique.. 22
3.4 Sample Size.. 22
3.5 Population of the Study.. 22
3.6 Data Collection Instruments. 23
3.7 Data Collection Procedure.. 23
3.8 Data Analysis. 23
3.9 Ethical Considerations. 23
3.10 Validity and Reliability.. 24
CHAPTER FOUR.. 25
DATA ANALYSIS AND INTERPRETATION.. 25
4.1 Preamble.. 25
4.2 Socio-Demographic Characteristics of Respondents. 25
TABLES BASED ON RESEARCH QUESTIONS.. 29
4.3 Analysis of the Respondents’ Views on Research Question one:. 29
4.4 Testing Hypothesis. 39
4.5 Discussion of Findings. 40
CHAPTER FIVE.. 42
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 42
5.1 Summary of Findings. 42
5.2 Conclusion.. 43
5.3 RECOMMENDATIONS.. 44
REFERENCES.. 45
APPENDIX.. 47
Research Questionnaire: EFFECTS OF REWARD SYSTEM ON EMPLOYEES PERFORMANCE IN AN ORGANIZATION (A STUDY OF GUARANTY TRUST BANK PLC) 47
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In today's dynamic business landscape, organizations continually seek innovative strategies to enhance employee performance and foster a culture of productivity. Among these strategies, the implementation of reward systems stands out as a pivotal tool in incentivizing and motivating employees towards achieving organizational goals. The effects of reward systems on employee performance have garnered significant attention from researchers and practitioners alike, prompting a deep dive into understanding the intricacies of this relationship. This introduction aims to explore the multifaceted impact of reward systems on employee performance within organizational contexts, shedding light on the mechanisms through which rewards influence individual behavior and organizational outcomes.
Scholars have extensively investigated the link between reward systems and employee performance, recognizing the intricate interplay of intrinsic and extrinsic motivators in shaping individual behavior. By offering monetary incentives, recognition, career advancement opportunities, and other tangible rewards, organizations aim to stimulate employee engagement, commitment, and productivity. A seminal study by Deci, Koestner, and Ryan (1999) emphasized the significance of intrinsic motivation in driving sustained performance, highlighting the role of autonomy, mastery, and purpose in fostering employee satisfaction and well-being. Furthermore, Herzberg's Two-Factor Theory (1959) delineated between hygiene factors, such as salary and working conditions, and motivators, including recognition and advancement, underscoring the nuanced relationship between rewards and employee satisfaction.
Moreover, the effectiveness of reward systems in influencing employee performance is contingent upon various organizational factors, including the alignment of rewards with organizational objectives, the transparency of reward criteria, and the perceived fairness of reward distribution. Lawler and Jenkins (1992) posited that a strategic reward system should be intricately tied to performance metrics and organizational values, fostering a sense of equity and meritocracy among employees. Additionally, the role of communication and feedback mechanisms in reinforcing desired behaviors and performance standards cannot be overstated. As suggested by Armstrong and Murlis (2007), transparent communication regarding reward criteria and performance expectations cultivates a culture of accountability and continuous improvement, thereby enhancing employee engagement and performance.
1.2 Statement of the Problem
As organizations navigate the complexities of the modern workplace, optimizing employee performance emerges as a critical priority for sustained success. Central to this endeavor is the implementation of effective reward systems designed to incentivize and motivate employees towards achieving organizational objectives. However, amidst the plethora of research and practical applications, a fundamental challenge persists: comprehensively understanding the nuanced effects of reward systems on employee performance. This 1.2 Statement of the Problem aims to delineate this challenge, exploring the gaps in current knowledge and identifying key areas for further research and intervention. Deci, E. L., Koestner, R., & Ryan, R. M. (1999).
At the heart of the problem lies the intricate interplay between intrinsic and extrinsic motivators within the realm of reward systems. While traditional wisdom often emphasizes the role of extrinsic rewards, such as monetary incentives and bonuses, in driving employee performance, recent research suggests a more nuanced perspective. Deci, Koestner, and Ryan's seminal meta-analytic review (1999) highlights the potential detrimental effects of excessive extrinsic rewards on intrinsic motivation, raising questions about the long-term sustainability of reward systems solely reliant on external incentives. Furthermore, the dynamic nature of the modern workforce, characterized by diverse preferences and motivational drivers, complicates the design and implementation of one-size-fits-all reward systems, necessitating a deeper understanding of individual differences and contextual factors influencing the effectiveness of rewards. Lawler, E. E., &
1.3 Objectives of the Study
Jenkins, G. D. (1992).
The main objective of the study is to examine Effects of reward system on employees performance in an organization. Specific objectives of the study are:
- To assess the impact of different types of rewards (financial and non-financial) on employee performance.
- To investigate the effectiveness of reward systems in motivating employees across different job functions.
- To analyze the relationship between reward system fairness and employee performance.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent do financial rewards compared to non-financial rewards influence employee performance metrics like sales volume or project completion rates?
- How does the effectiveness of a reward system in motivating employees differ between individual contributors and team-oriented roles within an organization?
- Does the perceived fairness of a reward system in terms of clear criteria, equal opportunities, and unbiased distribution of rewards correlate with employee performance and satisfaction?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no significant effect of the reward system on employees' performance in an organization.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Human Resource Management sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Guaranty Trust Bank plc. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
