ABSTRACT
Reward Management
has always been central in organizations to both leaders and managers.
Employees are likely- to be persistent, creative and productive in the
workplace if well rewarded. The reward may be intrinsic or extrinsic in nature.
It was in this view the study sought to examine reward management as a tool for
improving organizational performance in Zenith Bank Plc, Benin City. In
carrying out this study, a representative sample of five Branches of Zenith
bank was taken into consideration. A total of 100 questionnaires and oral
interview were administered to the various staff of each Branch based on the
stated hypotheses out of which 85 were properly filled and returned, the data
gathered were analyzed using tables and simple percentage. The stated
hypotheses were however tested using the chi — square (x2) statistical toot.
Our findings revealed among other things that financial and non — financial
rewards play a major role in organizational performance, there was also an
indication that there is a high labour turns over in the organizations due to
poor reward system. It was therefore, recommended that the design of rewards
should take into consideration some identified needs of employees, giving them
opportunity to prosper if the business progresses. In addition, employers
should develop reward system that reflects the changing nature of work and the
business environment in line with the globalized world. The outcome of this
study therefore stands as veritable tool for the employers of labour on the use
of financial and non — financial rewards to stimulate organizational
performance.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The main focus of this research study is on Reward Management
as a Tool for Improving Organizational Performance with reference to zenith
bank plc, Benin City. Survival and success of many organizations are largely
dependent on efficient and effective performance & employees. Such performance
will depend to a great extent on training, work environment and among other
factors of important the monetary and non-monetary rewards.
To achieve organizational set objectives, management needs
stimulate and motivate its work force for a good performance. Onodugo (2000),
state that motivation constitutes those things when put in place propel workers
to behave in a desire manner in a work place. In early time, emphasis was
placed on output and physical surrounding how these could be improved. In
recent time emphasis is on sociological and psychological elements of thoughts,
feelings and attitudes & people in the work place. Management in organized
workplaces occupied with increasing productivity and motivating the workers r
better performance. The employees have expectations to be met by the employers.
The organizations on the other hand have goals and objectives
that the employees are expected to help in fulfilling them. This can be termed
as psychological contract. Psychological contract specifies the exchange of
value that causes the individual to work for the organization and causes the
organization to employ that person. Thus, relationship of give-and-take exists
between the parties. An employee is selected for a job in an organization, with
the hope that he will be able to carry out the functions and responsibilities
of a given position. His performance is monitored and evaluated. The employee
is rewarded base on the appraisals. Development is encouraged On his areas of
weaknesses, which result in increased performance levels for the employee and
the organization.
1.2 STATEMENT
OF THE PROBLEM
Business organizations are established to maximize profit,
create wealth and development by controlling cost. There are four major factors
of production. They include man, machine, money and material. Among the
elements of production, only man has the capacity of organizing and combining
the other elements to produce goods or services. Hence the saying “people are
our most important asset”. The reward system is the most basic tool for
managing employee’s motivation. It is the mechanism by which performance is
defined, appraised and measured. The expected reward for working varies from
one individual to another. In some organizations, there are mutual suspicion
between management and labour over reward that would enhance organizational
performance.
Adequate and effective reward management and administration
would reduce conflicts and strife. Most organization discourages employee’s
performance through poor reward. Discontents caused by poor reward do not give
employees the impetus and zeal to improve performance.
Museleman and Huges (2005), argue that if the employees were
not well rewarded, the resultant consequences would be high labour turnover,
low morale and inefficient production. They added that poor reward system would
only increase production cost. This is so because dissatisfied workers may work
against the organizational interest. Again, the organization would spend money
and time replacing some employee that would leave the organization since their
expectations cannot be achieved. Poor performance arises as a result of
dissatisfaction experienced by the employee’s. Therefore, this study is set out
to investigate reward management as a tool for improving organizational
performance with reference to Zenith Bank plc, Edo State.
1.3 RESEARCH
QUESTIONS
1)
Does
financial reward motivate employees to perform better in the organization?
2)
Does
non-financial reward motivate employees towards a better performance?
3)
Is
there a positive relationship between poor reward and labour turnover in
organizations?
1.4 RESEARCH
HYPOTHESES
Ho: Financial reward does not motivate employees to
perform better in organization.
Hi: Financial
reward motivates employee to perform better in the organization.
Ho: Non-financial reward does not motivate employees
towards better performance.
Hi: Non-financial
reward motivates employees towards better performance.
Ho: There is no
positive relationship between poor reward and labour turnover in the
organizations.
H: There is a
positive relationship between poor reward and labour turnover in the
organizations.
1.5 PURPOSE
OF THE STUDY
The main purpose of this study is to determine the effect of
reward management on organizational performance with reference to Zenith Bank
plc.
They include:
1.
To
determine if financial reward motivates employees to perform better in the
organization.
2.
To
ascertain whether non-financial reward motivates employees towards better
performance.
3.
To
determine whether there is a positive relationship between poor reward and
labour turnover in organizations.
1.6 SCOPE
OF THE STUDY
The relationship between the organizations and staff is
governed by what motivate them to work and the fulfillment they derive from it.
The study covers banking sectors in Edo state. However, it will not be possible
to study all the financial Institutions in Edo State, Hence, five different
banking institutions were used for the research out of which Zenith bank Plc were
randomly selected; the selected bank will be used to examine how reward
management serve as tool for improving performance.
1.7 SIGNIFICANCE
OF THE STUDY
This research study is important because it could be useful
as a guide to organization in their managerial control, which can encourage and
enhance efficiency and effectiveness in reward administration.
To advice employers that employee must not only be attracted
to join organization but effort should be exerted to retain them. These can be
achieved through instituting reward management that adequately motivates the
workforce towards better performance.
It also intends to suggest how to improve reward management
in organizations. Solutions would be proffered on how to reduce labour
turnover, eliminate unnecessary frictions between labour and management.
It will also raise some questions which other researchers
might be interested in probing further.
It is hoped that the research study will be of value to
entrepreneur, Students, government and other institutions of higher learning
and the general public in their efforts to administer reward.
1.8 LIMITATIONS
OF THE STUDY
The time given for the study was inadequate in view of the
scope of the work. Data collection often times poses a lot of problems as some
of the organizations feel reluctant to disclose vital information. Availability
of finance also posed a lot of problem as much was required during the study. However,
the researcher was able to overcome the limitations, thus has successfully
completed the study
1.9 DEFINITION
OF TERMS
> Incentives: This means given in return for
services rendered.
> Motivation: This refers to what energizes human
behaviour, what directs or channels such behaviour and how this behaviour is
maintained or sustained (steers and Porter, 1987)
> Organizational Performance: This is effort exerted by workers
systematic approach to task in order to produce and maintain a desired result
by the organization.
> Reward Management: Refers to the mechanism that is used
in defining, evaluating and recording employees. These include financial and
non-financial reward.
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