Impact Of Reward On Organizational Profitability And Employees Performance

Project and Seminar Material for Business Administration and Management BAM

Impact Of Reward On Organizational Profitability And Employees Performance


This study is on the impact of reward on organizational profitability and employee’s performance, in Emenite ltd, Emene. To achieve this purpose, some objectives of the study, research questions and literature review were raised. The study adopted survey research design, due to the nature of the enquiry. The population of the study was 200 members of the staff out of which the sample size was drawn, including male and female staff of the organization. The sampling techniques used was simple random sample to avoid in the study was primary and secondary sources. The data gathered in the field during study was analyzed using tabulation, percentages and chi-square methods. The major findings on the study were lack of efficient service, poor motivation, management infectivity to workers fringe benefits not given to workers as required, poor salary structure and low level of performance. Based on the major findings, the researcher, however, recommended as follows; that the staff of the organization should be motivated and all the due rights and privileges given to the staff.

Chapter One

1.0 Introduction

1.1 Background of the Study

Emenike ltd was incorporated in 1961 as turner abestors Cement (TAC Nigeria Ltd,) the company commenced the actual business of manufacturing re-forced fiber-cement material such as roofing-sheet and flat sheets (ceiling board in 1963). The product line was later expanded to include pressure pipes. In 1988, turners building (turner assistors cement TAC ltd Emene was acquired by Emenite group of Belgium and in 1989, the name was charged to Emenite ltd.

Emenite ltd pays a lot of emphasis on product inspection. They start from the raw material, the raw material includes cement, wood, pulp and fibre, undergoes series of tests.

The wood is tested for the dispersion and shaper rougher S.R that determines that freeness of the wood pulp. Then the fibre is tested by solubility, which determines that dispersion ability in the fibre.

The final inspection is the finished product inspection, which a simple is collected at random from the production line, from each pallet as they are called and after (curing) drying, they test the bending strength which determines the strength of the product and also tested for all porosity and density which will show the ability of the product to absorb water, this tests are being carried out in two stages.

First after 7 days and second after 28 days, then if they are certified okay by the quality controller, it can now be sold. The control of the product is purely the responsibility of the quality control department. In Emenite ltd, the department comprises of the quality control and the process control.

The process control section is responsible for the online process of the product while the product are still in process, they control the parameters and make sure that the production crew comply to the set standard, if there is any non conformity in the process, a complaint form is being issued out to the production crew for immediate correction. This section is responsible for testing and certifying the raw material before use.

All the products have a standard that it must pass before they are released from the quality control department. The company presently has a staff strength of about 200 which is supplemented by a few contract worker hire from the time as the need arise.

1.2 Statement of the Problem

There is controversy all over the companies; there is a frequent clash between company and customers. Most times when the customers visit the company, experience is always unbearable, delayed tactics and the manner by which the workers react to their customers, mostly with harsh tones, in attending these customers, create lot of discouragement. The head office of Emene ltd in Lagos works even on Sunday without any of the staff complaining, while their counterparts of the other companies were on their weekend or holidays.

Work overload were the major problem facing Emenite ltd Company even most times, delay in receiving their salary, it takes the management one or two weeks, delay to pay their workers monthly salary especially Emenite ltd emene Enugu.

1.3 Objective of the Study

The objectives of the study are;

  1. To determine whether a relationship exists between intrinsic rewards and employee performance.
  2. To ascertain the impact of reward on organizational profitability
  3. To ascertain the relationship between organizational profitability and employees performance
  4. To ascertain the impact of reward on employees performance

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

  1. H0: there is no relationship exists between intrinsic rewards and employee performance.
    H1: there is relationship exists between intrinsic rewards and employee performance.
  2. H02: there is no relationship between organizational profitability and employee’s performance
    H2: there is relationship between organizational profitability and employee’s performance

1.5 Significance of the Work

Rewards play important role in success and failure of organization. Employees don’t work for free. Rewards are important for employees because people work only for rewards. Organizations provide rewards to their personnel in order to try to motivate their performance and encourage their loyalty and retention. Organization rewards take a number of different forms including money (salary, bonuses, and incentive pay), recognition and task autonomy.

1.6 Scope and Limitation of the Study

The scope of the study covers the impact of reward on organizational profitability and employees performances. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms


A thing given in recognition of service, effort, or achievement.


An organization or 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.


Profitability ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Employee Performance:

Employee performance is defined as whether a person executes their job duties and responsibilities well. Many companies assess their employee’s performance on an annual or quarterly basis in order to define certain areas that need improvement. Performance is a critical factor in organizational success.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain impact of reward on organizational profitability and employee’s performance

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact of reward on organizational profitability and employee’s performance

5.2 Summary

This study was on impact of reward on organizational profitability and employee’s performance. Four objectives were raised which included: To determine whether a relationship exists between intrinsic rewards and employee performance, to ascertain the impact of reward on organizational profitability, to ascertain the relationship between organizational profitability and employee’s performance, to ascertain the impact of reward on employees performance. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Emenite limited emene. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up process engineers, electricians, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

The importance of reward system in day-to-day performance of workers’ duties cannot be over emphasized especially when it comes to being rewarded for job done. Human performance of any sort is improved by increased motivation. From the results of this study, it can be concluded that bank workers reward system matters a lot and should be a concern of the bank and employees. The results of this study indicated that workers place a great value on different rewards given to them by their employees The current system at the commercial banks is not sufficient enough to consistently motive workers.

5.4 Recommendation

The following policy recommendations are therefore recommended:

  1. A balance should be created by managers in adopting which motivational measures to use. Studies indicate that both extrinsic and intrinsic motivational factors are capable of influencing one aspect of employee behavior or the other. Managers should employ the two in order to get the best results.
  2. That management should employ feedback mechanisms to inform them on the performance of the various rewards system. This becomes necessary in order to effectively adjust motivational factors not suited/or desired by employee

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