Effect Of Reward On The Performance Of Employees. A Study Of Ashaka Cement Plc
1.1 Background to the Study
It is a common know1edge that organization be it business concerns, mutual benefit associates, required their employees or workers to perform well and achieve its aims. The various forms of behavior and attitudina1 disposition which organizations require of their employees in order to actualize set goals depend on the kind of reward and incentive existing in the organization.
Organization reward ‘system refers to the ways and modalities by which workers in an organization can be motivated or individual to put more efforts that will lead to the attainment of the organizational goals. It is also seen as those motivational tools which an organization adopts to reward their workers for high or improve productivity.
These rewards or incentives vary from one organization to another and they include the following: advancement opportunity in the company, job security, good salary/wages, adequate medical facilities, canteen services, pension scheme, credit for the job one does (recognition) vacation and holiday practice, housing, transport, company altitude towards employees physical working condition such as office accon1modation etc.
Management involves motivating people and any human productivity inevitably leads to the question of incentives and rewards. To most people an incentive implies money or any reward but this is not necessarily so. Incentives and reward may be financial and non-financial. It has to be mentioned here that incentive and reward are used for four main purposes: to persuade people to come to work, to encourage people to work harder while they are at work, to help people to identify themselves with the objectives of the organization, and to show management appreciation of the employee’s contribution to the survival of the organization.
It is however a common problem that the refusal of employee’s or management to meet the needs of the employee’s has always caused discontent. According to Daris (2010), the surest signs of deteriorating condition in an organization is job dissatisfaction, the result of which are grievances. low productivity, disciplinary problems and other organization difficulties. In essence, various studies have shown that there is relationship between reward and productivity in an organization. A well package incentive system coupled with appreciation reward has a tendency of influencing employees in the organization. In fact, with increased productivity through incentives and reward system, workers will be more satisfied with the job and, hence put in their utmost best into achieving organization goals and effectiveness. However several writers have come to associate personal productivity with the type of reward and incentives available in the organization as well as the satisfaction of the needs of the employees. The most need of the employees are met within the organization through appropriate reward and incentives, the more the like hood that they would be motivated to work and thus satisfy the needs of the organization.
Consequently, the problem of how to make employees work harder for the interest of the organization and for their own interest becomes a fundamental one. In fact, the issue of how productivity and mobilization of employees is one of the major problem that occupied the attention of the management and administrator in industrial organization. Management is always concerned with finding effective ways of ensuring that employees produce their best at the cheapest rate in a short time, while employees according to Scott (2010) are most concerned with income and security before other things.
In this study, the researcher is really going to look at the Effect Of Reward On The Performance Of Employees in Ashaka Cement Plc. This research will also focus on ways organization-reward/incentives can be administered so as to reduce job dissatisfaction and improve productivity of workers.
1.2 Statement of the Problems.
Rewards system as the case may be has been the desire of every workers. In virtually many organizations employees have tended to avoid giving their best unless adequately compensated by way of appropriate reward/incentive to retain them and get the best out of them. There has also been hue and cry about employees dissatisfaction at work, little or no compensation, lack of job security, unfair treatment, delay in promotion among others. Could reward system proffer solution to these problems?
1.3 Purpose of the Study
The purpose of this study is on Effect Of Reward On The Performance Of Employees. A Study Of Ashaka Cement Plc
. Specifically it tends to know whether:
- Good compensation increase worker’s productivity of staff in Ashaka Cement
- Job security increase worker’s productivity of staff in Ashaka Cement Plc
- Fair treatment increase worker’s productivity of staff in Ashaka Cement Plc
- Promotion increase worker’s productivity of staff in Ashaka Cement Plc
1.4 Research Questions
The following four Research Questions will guide the study.
- Does Good compensation increase worker’s productivity in Ashaka Cement Plc, Does job security increase worker’s productivity in Ashaka Cement Plc
- Does fair treatment increase worker’s productivity~ in Ashaka Cement Plc
- Does Promotion increase worker’s productivity~ in Ashaka Cement Plc
1.5 Research Hypotheses
Four hypotheses were formulated to be tested in this study:
- There is no significant relationship between good compensation and worker’s productivity in Ashaka Cement Plc
- There is no significant relationship between job security and increase workers productivity in Ashaka Cement Plc
- There is no significant relationship between fair treatment of worker’s and increase worker’s productivity in Ashaka Cement
- There is no significant relationship between promotion of worker’s and increase worker’s productivity in Ashaka Cement Plc
1.6 Significance of the Study
This study will be highly significant to the employees, employers, organization, government etc.
Employer: who recognize and reward workers for their efforts give them an incentive to perform better and be more productive also stimulate workers to meet personal and organization goals that drive production. Facilitate professional development so that employees can expand on their level of knowledge, offer frequent opportunities for employees to reward themselves and give them a path to monitor their progress with milestones along the way.
Employee: are definitely going to notice the type of benefits you provide exceed the benefit level of their competitor will have difficulty attracting and retaining top workers.
Organization: will benefit to increase of production, on the environment, increase population marketers in that environment, and it extent the town. Government: will benefit to higher demand of goods productivity increase the staff, to meet the demand point it also increase the tax payment, because higher demand- higher staff to met the point demand.
1.7 Scope of the Study
This study will cover areas such as employee compensation, job security, fair treatment and promotion. It will be carried out in Ashaka Cement Plc.
1.8 Definition of Terms
Organization: is an entity comprising multiple people such as an institution or an association that has a collective goal and is linked to an external environment.
Employee: a person who works for somebody or a company in return for wages or salary.
Employer: a person or company that employs people. He engages the service of others and agrees to pay the person in return for the services rendered.
Productivity: This is the efficiency; especially industry measured comparing the amount of goods or services produced within the time taken or the resources used to produce (input).
Reward: a thing that is given or received in turn for doing something good and acceptable, hardworking etc.
Promotion: refers to raising customer awareness of a production or band generating sales, and creating brand loyalty.