The Impact Of Reward System On Organizational Productivity (A Case Study Of Federal Polytechnic Nekede Owerri, Imo State)

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


This work xrays the impact of reward system on the organizational productivity. This work analyzed most of the reward system in the organization that induces workers to work very hade in the organization such as good salary, job security, credit for work, efficient medical services, pension recognition, housing allowance, etc. when these reward systems are being provided to workers they will increase their performance which will result to productivity in the organization of reward system. This work also state some problems facing the organization in the issue of reward system.

Management have been trying to graph with the problem or how to secure more output and the employees have tended to avid giving their best unless adequately compensated by way of appropriate reward to reward them and get the best out of them, the management is facing with many problems such as why employees avoid giving their best at times, why some reward incentive do not motivates some workers for increase productivity, how employees can be induced to work for the interest of the organization.

The research made use of historical analysis that subject to personal investigation and questionnaire and also used simple random sampling in order to ensure that the entire population is represented. And eleven research questions were formulated which guided the study and simple percentage was use for the research question. The research also made some findings in the impact reward system in the organization.

Table Of Content

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

1.0. Introduction

  • 1.1. Background of study
  • 1.2. Statement of the problem
  • 1.3 objective of the study
  • 1.4 research questions
  • 1.5. Significance of the study
  • 1.6. Scope of the study
  • 1.7 limitation of the study
  • 1.8. Definitions of terms

Chapter Two

2.0. Literature Review

  • 2.1. Introduction
  • 2.2 Reward scheme
  • 2.3 Human motivational and organizational productivity
  • 2.4 Strategies for improved productivity in public agencies
  • 2.5 Rewards for workers productivity
  • 2.6 Impact of reward system in organization
  • 2.7 Strategies to reduce perceptional gap on reward management system.
  • References

Chapter Three

3.0. Research Design and Methodology

  • 3.1. Introduction
  • 3.2 Research design
  • 3.3. Sources/methods of data collection
  • 3.4. Population and sample size
  • 3.5. Sampling technique
  • 3.6. Validity and reliability of measuring instrument
  • 3.7. Method of data analysis

Chapter Four

4.0. Presentation and Analysis of Data

  • 4.1. Introduction
  • 4.2. Presentation of data
  • 4.3. Analysis of data
  • 4.4. Interpretation of result (s)

Chapter Five

5.0. Summary, Conclusion and Recommendation

  • 5.1. Introduction
  • 5.2. Summary of findings
  • 5.3. Conclusion
  • 5.4 Recommendation
  • References
  • Appendix 1
  • Questionnaire

Chapter One

1.0. Introduction

1.1. Background Of The Study

It is common knowledge that organization whether their employees or workers to perform and behave in certain ways, if the organization should survive and achieve it’s aims. The various forms of behaviour and attitude disposition which organization require of employees in order to achieve set of goals depend on the kind of rewards and incentives existing in the organization.

Organizational rewards system refers to ways and modalities by which workers in organization can be motivated or induced to put much effort that will lead top attainment of the organizational goals.

According to Scott (1966), he defined organization reward as those motivational tools which an organization adopts to rewards its workers for higher for improved productivity. These rewards or incentives vary from one organization to another. There is need for workers to be motivated by providing variable that will boast the morale in the service these reward system in organization include the following: advancement opportunity in the company job security, good salary, adequate medical health facilities canteens service, pension scheme, credit for the job one does (recognition), housing and transport allowance, good management/workers relation, physical working condition such as good office accommodation, etc. to most people, this is not necessary. So, incentive or reward are used for the following purposes:

  1. To persuade people to come to work
  2. To encourage people to work harder when they are at work.
  3. To help people to identify themselves with the objectives of the organization to show management

appreciation of the employees contribution to the survival of the organization.

It is however a common problem that the refusal of employees or management to meet refusal of employees has always caused decent amount workers.

According to Davis (1971), the surest sign of deteriorating condition in an origination is job dissatisfaction. The result of which are grievance, low productivity, indiscipline and other organizational difficulties.

In essence, various studies have shown that there is correlation between reward and productivity in an organization. A well packed incentive system couple with appreciate reward has a tendency of influencing effort in achieving organizational goals and effectiveness.

According to Moroke (1988), he said that the more the needs of workers are met within the organization through appropriate reward and incentive, the more likelihood that they are motivated to work and thus satisfy the needs of the organization.

Consequently, the problem of how the male employees to hard for the interest of the organization and for their own interest become a fundamental one.

The issue of how productivity and mobilization of employee is one of the major problems that that occupied the attention of management ensuring that workers produce, their best at the most cheapest rate in the shortest possible time, while workers are most concerned with income and security at work (1960.

In this study, the researcher will look at the impact of reward system on organizational productivity, this is looked generally and specifically referring to Federal Polytechnic Nekede Owerri.

This research will also focus on ways organizations reward can be administered so as to reduce job dissatisfaction and improve the productivity of workers in public agencies in Nigeria.

1.2 Statement Of The Problems

It is observed that there is low productivity in the output of workers in the various organizations. As a follow up observation, it is asserted that this is caused by the fact that the workers and indeed the entire work force were not motivated. The lack of interest in the job shown that the workers as a result of lack of motivation of reward system, variables is the cause of the low productivity.

The management workers have been trying to grapple with the problems of how to ensure more output of those performing the work, and the 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, therefore, the researcher attempts to investigate the correlation between reward and productivity in organization and in particular in regards to Federal Polytechnic Nekede Owerri.

Based on the above, the researcher raised the following question:

  1. Why do employees avoid giving their best at this?
  2. Why is it that some reward or incentive do not motivate or make positive impact on some workers for increase in productivity?
  3. How can employee be induced to work for the interest of the organization?
  4. Can deterioration working condition lead to workers grievances, low productivity, indiscipline and other organizational difficulties.

1.3 Objectives Of The Study

Since rewards boost workers morale and increase productivities and efficiency in an organization, it is very necessary that attention should be paid to it because what a worker expects from doing a good job are job security recognition, praise, fair treatment, fair supervision, good compensation and justice. The achievement of these variables makes great positive impact both on the workers and management and also serves as the motive for staying in the organization. Their satisfaction also serve as incentive to efficient and effective performance and probably higher productivity.

The study therefore attempts to indentify these various system and its impacts in Federal Polytechnic Nekede with a view of establishing their effect on the productivity of workers in public agencies on the productivity of workers in public agencies in Nigeria. It also intended to find out whether there is any relationship between reward and performance of workers in the public agencies, in other words, does adequate reward system lead to better performance and increase output. However, objectives of the study are as follows:

  1. To prove that the reward system in the public agencies has positive impact on the productivity of employees.
  2. To examine whether the impact of reward cadre of employees.
  3. To show that the reward scheme has more positive impact on the productivity of the employees.
  4. To prove that reward system is capable of enhancing efficient, job satisfaction and increase output in the organization.
  5. To make suggestions on how best the problem effecting reward system and productivity in the public agencies can be resolved.

1.4 Research Questions

For the purpose of this research work, the researcher designed the following research question.

  1. Does reward system increase workers productivity?
  2. Do you think that rewards have brought job satisfaction among workers and consequent increase in the output of the organization?
  3. How could you rate the organizational reward system?
  4. Does reward being applied in the organization influence you to work harder?
  5. Does the management of this organization consult the representative worker before granting any reward?

1.5 Significance Of The Study

The study is significant in many aspects; first the finding of the study will help or result the institution of Federal Polytechnic Nekede and other public agencies in Nigeria to know how best to boost the morale and also achieve the organizational goals. Secondly, it will assist organizational relate reward system on the productivity of workers employers would also assist to adopt the most appropriate rewards scheme that would engineer better performances of workers in this area of democracy.

Additionally, it is expected that with the result of this study, every individual performace will be rewarded according to his productivity, if the objective of the organization is to bbe achied. A situation whereby employers are given rewards in respective of the performance, it will breed frustration and lack of commitment on the part of the employees.

Lastly, the study shall endeavour to establish why reward shall be based on individual performance and achievement rather than any other factor.

1.6 Scope Of The Study

For the study, relevant data will be collected from the Federal Polytechnic Nekede Owerri, Imo state.
Questionnaires are being distributed to the branches of Federal Polytechnic NeKede Owerri Imo State and personal interview will be made to the journal, textbook, relevant magazines and newspapers are being used for the generalizing to the part of this work.

1.7 Limitation Of The Study

The impact of reward system on organizational productivity is an extensive topic whose study is all embracing and might require an extensive research.

However, this study uses Federal Polytechnic Nekede as a case study. Despite the limitation scope of the research, it was affected with certain constraints which are as follows:

Time Factor:

In a research of this nature, a lot of time is required, but due to the short time allowed, it was not possible to do all that was required and necessary.
Finance: Due to the harsh economic condition enough finance was not readily available because of all that was required.

Information Constraints:

Generating the needed information is not an easy task; this is probably because of the way management handled information especially those concerning the life of the organization and also some employees were afraid of giving out the necessary information require from them.

1.8 Definition Of Terms


An organization can be seen as a set of related individuals and sometimes as a pattern of relationship. Organization are processing units which transform certain inputs from the environment into specific output desired by society, by Hippo.


This is the ability in a person to produce what is required of him in an organization. It is also the ability to contribute towards the achievement or organizational objectives.


This is additional reward given to a worker to ginger up his morale in performance of his duties. It is also a compensation plans designed around performance in addition to the basic pay rather than in place of basic wage. Incentive can be financial and new financial and non financial.


These are groups of people who runes and control the organization or businesses in other to achieve the goals of the organization efficiently and effectively.


This is a person working for someone, a company or organization in return for other and engagement the service of others and agreed to pay the person in return for the service rendered.


Motivation is a driving force which stimulates an individual to act or behave in a certain way. It could be in a positive or negative way, but in order to achieve the organizational objective. The positive way is the best method applied in an organization.


This refers to when an organization has achieved the level of expectation which it is being requires of.


This is the amount of confidence, and enthusiasm that a person or group has at a particular time.

Chapter Five

5.0 Summary, Conclusion And Recommendations

5.1 Introduction

This chapter will be basically focused on the summary of the finding of this research and also conclusion and recommendation made by the researcher base on the information deduced over the analysis of the tables in the previous chapter.

5.2 Summary Of Finding

Reward system will make a great impact on the organizational production in Federal Polytechnic Nekede Owerri. From the interview and questionnaires, it was observed that there could be high level of job performance associated with high level of job satisfaction arising from good reward system as motivated.

It was also find out that in the public agencies in Nigeria that good reward enhance better performance job satisfaction and increase in organizational productivity and that brought about the relationship between organization reward and productivity o workers.

In fact, the issue of low productivity and mobilization of employees is one of the major problems that has occupied the attention of management in organization because management is always concerned with finding effective way of ensuring that workers producer their best at the cheapest rate in the storage possible time, while workers are most concerned with income and security of job.

Therefore, from the literature reviewed and the data collected and analyzed, it reveals that though reward system has few negative impact in the organizational productivity but the positive impact exceed the negative ones and for the purpose of achieving the organizational goal objectives with its productivity, the positive impact is more advantageous in the organization.

5.3 Conclusion

Employees engage in specific task because of ultimate rewards they expected. They will not put much effort into their work if they expect to be inappropriately rewarded when one performed a good job, poor reward in the place of work reduce the productivity or workers and productivity become low when workers feel cheated and exploited and the zeal to work will be reduced.

A substantial attempt to improve working condition more especially when providing housing allowance, transportation allowance, health facilities, job security, pension scheme, etc will induce workers to put more effort, thereby leading to high productivity in the organization.

To increase the productivity of the organization in the public agencies in Nigeria using Federal Polytechnic Nekede as a case study, I believe that when workers are adequately rewarded or motivated that they will put all their best for the achievement of the organizational goals; and also there should be a cordial relationship between the management and staff according to McGregor so that there will be efficiency in the organization and they will also achieve their specific goals.

5.4 Recommendation

It is obvious that absence of reward system contribute immensely in the low productivity in the organization public agencies in Nigeria. And from the fact that academic is important to our nation, there is need to rectify lapses to encourage staffs/lecturers of Federal Polytechnic Nekede and other public agencies to perform their duties effectively and efficiently.

From the research finding of the following study, she has attempted to establish the relationships between organizational rewards and productivity of workers. Based on this, researcher made the following recommendation:

  1. The management in Federal Polytechnic Nekede should encourage rotation, job enrichment in areas where promotion opportunities are limited
  2. The management should provide adequate accommodation to their staff/workers and that the management method of Federal Polytechnic Nekede should adopt the method in which other organizations are using in carrying out this kind of project.
  3. The management should consider the prevailing economic situation in the country and they should be aware that low salary makes employees less productivity while better salary or remuneration is a necessary condition or the way that lead to productivity.
  4. Employee should be allowed to participate in decision making in areas that affects their duties or they should ensure workers participation in designing programmes that affect their welfare.
  5. The management should achieve their desired objective by motivating employee in a more productive way is to further increase productivity more, employee incentives should be incorporated in the organizational programme.

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