Organizational Reward System And Its Impact On The Productivity Of Staff (A Case Study Of NNPC, Port-Harcourt)

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


People entering organization go into these organizations with a lot of expectation in mind. In most cases, they want good salary and other rewards or benefits if they are to be retained in the organization.

These rewards include opportunity for advancement, job security, efficient medical services, pension scheme, credit for work you do –recognition, transport, and housing, good working conditions among others. When these rewards appear adequate and meet the expectations of staff they are retained but where they feel that the reward system is not satisfactory they try to leave the organization, far better prospects elsewhere.

Apart from its ability to retain the staff, good reward system is also capable of motivating them to put in their best in the performance of their duty. In fact the result of a good reward system is efficiency, job satisfaction commitment and increased productivity in the organization. Both management and staff, therefore stand to benefit tremendously from a well – packaged reward system is all of them tend to work toward the achievement of organizational goals. Employee will no doubt work very hand if their efforts are adequately rewarded.

Absence of good rewards would bring about poor performance and declining productivity. In order, therefore, to get the best from staff, organizations try to reward their staff in such a way that they are motivated to keep productivity and profitability on continuous increase.

Table Of Contents

Preliminary Page(s)

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

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectives of the study
  • 1.4 Research questions
  • 1.5 Significance of the study
  • 1.6 Scope of the study…9-10
  • 1.7 Limitations of the study
  • 1.8 Definition of terms

Chapter Two

2.0 Literature review

  • 2.1 Historical overview
  • 2.2 Reward schemes
  • 2.3 Motivation and motivational factors
  • 2.4 Motivation of Nigerian workers
  • 2.5 Organizational reward and staff productivity
  • 2.6 Motivation and how they relate to the Nigerian work environment
  • 2.7 Criticisms of the above three motivation theories (Maslow, Hertzberg and Victor Vroom) Theory of motivation

Chapter Three

3.0 Research design and methodology

  • 3.1 Introduction
  • 3.2 Research design / methods
  • 3.3 Source of data
  • 3.4 Methods of data collection
  • 3.5 Population of study and sample size determination
  • 3.6 Sampling technique /procedure
  • 3.7 Validity and reliability of measuring instrument
  • 3.8 Method of data analysis

Chapter Four

4.0 Data presentation, analysis and interpretation

  • 4.1 Presentation of data
  • 4.2 Analysis of data

Chapter Five

5.0 Summary, of finding, conclusion and recommendation

  • 5.1 Summary of findings
  • 5.2` Conclusion
  • 5.3 Recommendation
  • 5.4 For further research
  • Bibliography
  • Appendix
  • Appendix II

Chapter One

1.0 Introduction

1.1 Background Of The Study

It is a common knowledge that organization be it business concerns, mutual benefit as societies, require their employees or workers to perform well and behave in certain ways if the organization wants to survive and achieve its aims.

The various forms of behaviour and attitudinal disposition which organization require of their employees in order to actualize set goals depend on the kind of reward and incentive existing in the organization.

Organization rewards system refers to the ways and modalities by which workers in an organization can be motivated or individual to put more efforts hat will lead to attainment of the organization goals. It is also seen as those motivational tools which an organization adopts to reward their workers for high or improve productivity.

These reward 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 do (recognition) vocation and holiday practice, housing transport, company altitude towards employees physical working condition such as office accommodation etc.

Management involves motivating people and any human productivity inevitable leads to the question of incentives and rewards to most people an incentives implies money, 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;

  1. To persuade people to come to work
  2. To encourage people to work harder while they are at work
  3. To help people to identify themselves with the objective of the organization
  4. 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 employees or management to meet the needs of the employees has always causes discontent. According to Doris (1971:73); the surest signs of deteriorating condition in an organization is job dissatisfaction, the result of which are grievances, how 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, and 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 meet within the organization through appropriate reward and incentives, the more the like hood that they would be motivated to work and thus satisfy the need 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 always concerned with finding effective ways of ensuring that employees produce their best of the cheapest rate in a short time, while employees according to Scott (1966:12); are most concerned with income and security before other things.

In this study, the researcher is really going to look at organizational reward system and its impact on the productivity of staff. This is to look at generally and specifically referring to IMO STATE ENVIRONMENTAL PROTECTION AGENCY (ISEPA) .This research will also focus on ways organization reward/incentives can be administered so as to reduce job dissatisfaction and improve productivity of staff.

1.2 Statement Of The Problem

In fact, those organizing work have grappled with the problem of how to obtain more efforts from those performing work. The employees have tended to avoid giving their best unless adequately compensated by way of appropriate reward / incentives to retain them and get the best out of them.

Early ideas of employees remuneration were based on the principle of penalty and reward, the underlying assumption being that people at work minimize their own interest and act accordingly. It should be noted that people are unpredictable hence there is no right way to deal with employee’s productivity.

Therefore, the researcher in this study attempts to investigate the correlation between reward and productivity in the organization.

Based on the above, the researcher wants to investigate:

  1. Why employees have tended to avoid giving their best unless adequately rewarded.
  2. Why are some employees not motivated by some rewards on incentive for increase in productivity.
  3. How to make the employees work hard for the interest of the organization.

1.3 Objective Of The Study

The main basis for workers productivity and better performance is the satisfaction of his need and amities. In fact, what a worker expects from doing good job are job security, recognition, praise and fair treatment, fair supervision, good compensation and justice.

The achievement of these variables serves as a motive for staying in the company. Employee’s satisfaction also serves as an incentive to efficient and effective performance and probably higher productivity. The study therefore, will attempt to clarify the various reward system in Cadbury with a view to establishing their effect on the productivity of staff.

It also intended to find out whether there is any relationship between reward and performance of staff in the corporation. In other words, does adequate reward system lead to better performance and increase output? In fact, the study seeks to find answers to the following question;

  1. Does the reward scheme in the corporation have any impact on the productivity of employees?
  2. Does the impact (if any) cuts across the cadre of employees?
  3. What specific reward performance has more impact on the productivity of employees?

Are reward systems capable of enhancing efficiency, job satisfaction and increase output in the corporation?

1.4 Research Questions

Some questions have been developed by the researcher on the nature of reward and its impact on staff productivity in IMO STATE ENVIRONMENTAL PROTECTION AGENCY (ISEPA). The question will be analyzed in the course of the research and answer to them will be sought.

  1. What are the natures of reward scheme in Imo State Environmental Protection Agency (ISEPA) ?
  2. In what ways can staff be rewarded for hard work to enhance the productivity of organization?
  3. What are the effects of reward on the performance of the staff and the organization?

In this study therefore, we are trying to analyze organization reward system and how it affect workers productivity.
Based on this, and for the purpose of this research the following hypothesis were formulated by the researcher.

1.5 Significance Of The Study

This study is significant in much respect. First, the finding of this study will help organizations to know how best to reward their hardworking employees.

Secondly, it will assist organization, to relate to adopt the most productivity of staff: employees would be engender better performance of staff in this era of democracy. It is also expected that by this effort every individual performance will be rewarded accordingly to his environment. In other words, reward should be glance towards achieving productivity, if the objectives of the organization are to be achieved.

A situation whereby employees are given reward, irrespective of the performance breed frustration and lack of commitment on the part of employees; this study shall Endeavour to establish fully reward shall be based on individual performance and achievement rather than any other factions

1.6 Scope Delimitation Of The Study

Organizational reward and its impacts on the productivity of the staff is an extensive topic whose studies all embracing and might require an extensive research. Therefore, the researcher has decided to restrict the study to the impact of organizational reward on the productivity of staff with emphasis on Imo State Environmental Protection Agency (ISEPA) office in owerri.

1.7 Limitations Of The Study

Despite the limited scope of this research, it was affected with certain constraints, which are as follows:

I) Time:

In research of this type, a lot of time is required but given the short time allowed for this study, it was not possible to do all that was required and necessary.

Ii) Finance:

Due to the harsh economic conditions or economic crunch, enough finance was not readily available to do all was required and necessary

Iii) Distance:

The long distance between Owerri and Lagos was one of the major constraints; moreover, there was a (problem of shutting from one location of the corporation to the other.

Iv) Information Constraint:

Getting the needed information was not easy. This is probably because of the stingy manner managers handle information especially those bordering the life of the organization.

1.8 Definition Of Terms


This means the selling of the services of government owned corporation at a competitive or commercial prices.


This is a group of people having authority to operate as a single unit with a separate existence, example for business purpose.


A person who work for somebody or a company in return for wages or salary.


A person or company that employs people. He engages the services of others and agrees to pay the person in return for the services rendered.

Financial Incentives:

This is an incentive given to somebody to encourage him/her but in the form of cash / money.


This is the process by which a corporative group direct actions of others towards common goals.

None-Financial Incentive:

This is form of incentive that is not in cash or money but other materials, items and or moral kind.

Organization Hierarchy:

This simply means the authority flow in the organization. It is the level of authority that exists in an organization.


This is the amount of something that a person or employee, a machine or an organization produces usually products.

Physiological Needs:

This refers to primary and unlearned needs. They include need for good, drink, shelter, rest, exercise and relief from pain.


This is the efficiency; especially in industry measured comparing the amount of goods or services produced within the time taken or the resources used to produce (input)


A thing that is given or received in turn for doing something good and acceptable, hardworking etc.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Summary Of Findings

The primary concern of this chapter is to bring together empirical findings that have been presented in this proceeding chapter.

The study set out to establish the relationship between organizational reward system and productivity of staff, the various related system in the company and the impact they have had on the performance of staff.

The study made some specific relation; first the respondents attach relative importance free medical facilities as reward benefits while other choose promotion, good salary, merit award, pension scheme and end of year bonus, still a good number of staff where least motivated somewhere.

The study also reveals that the respondents were neither satisfied with their salary no with other rewards / benefits except medical services did they claim efficient. It was found out that majority of employees enjoys a conducive work environment except in the corporation headquarter where same air conditioners have broken down. The respondents also complained about working for long period of years before promotion and inadequacy of corporation’s training scheme that favours some well connected employees at the expense of the less fortunate one. As we are aware, the attribute and feeling the people had are products of action which are reflections of previous action of interactions. Therefore, to draw the implication of reward system on performance, job satisfaction and increased productivity is an order.

This is because the action and work environment, drawing from the findings of this study, it is expected that given the fair related system in the corporation, employees are likely to be satisfied with their work. And the organization under such situation therefore, it is possible for both interest of employees and management to merge hence, the employees seems to be more product and work towards the achievement of organization goals. The implication is that if employee’s expectations are not satisfactory, merit may bring about disagreement which may be exhibited in the form of low morale, absenteeism, excessive errors and high labour turnover among others.

All these if not checked can affect productivity and profitability levels of the organization and consequently its survival in competitive market situation.

5.2 Conclusion

Employees engage in specific tasks because of the ultimate reward they expect, they would not put much efforts into their work, if they expect to be appropriately rewarded, an opportunity to be rewarded, if one performs a good job will be seen s a positive incentive while thereat of losing a job will be considered a negative, will be bad if the worker feels cheated and exploited. And the will to will, be correspondingly reduced. A substantial attempt to improve working conditions most especially. The housing, transportation and health facilities among others, could substantially improve workers productivity.

The reward system of a company is always motivating its employees in some directions to be effective, it must appeal to the needs of the employees and must encourage the designed behaviour for example, when employees are rewarded by promotions, they not only get more money but also recognition of the individual performances, the employee on his part times to justify this recognition by putting in, more effort in his work.

Consequently the reward system of an organization has both positive and negative impact on the productivity of staff as we have seen in Cadbury.

5.3 Recommendation

The study has attempted to establish the relationship between organization reward system and productivity of staff. The study will however, be incomplete without some recommendations on the possible means of reducing the negative effect of identified areas of disagreement which may perhaps be useful and effective at solving motivational problems and thus prayed employees towards efficiency and greater productivity.

  1. As we are aware, low salary makes employees less productive, better salary is argued a necessary condition for generating appropriate commitment and productivity among employees. It is therefore suggest that given the corporate of profit maximization, the management should consider the prevailing economic situation in the country in electing the salary of employees in addition salary should be regularly reviewed in view with the inflationary trend.
  2. The continue employment of the employees must be guaranteed if high salary and other rewards system are to achieve their designed objectives of motivating employees to a more productive effort.
  3. Fear of insecurity and redundancy must emphasize, often affect increased productivity and render the motivating power of high salary and other benefits useless. There is need for management to embark on enlightenment programme to re-orientate employees on promotion chances or opportunities. Such programme should emphasize the fact hat advancement in the corporation is necessary based on vacancies and merit-technical competence.
  4. The rational behind the maximum period of three years within which an employee is due for promotion should be adequately explained to them because most of the employees regard it as too long. This the management should reduce the promotion period from three to two years.
  5. Also the corporation should encourage job rotation and enrichment in areas where promotion opportunities are limited to avoid or reduce boredom, monetary and dissatisfaction on job.
  6. The training programme of the corporation should be fair to every employee. A situation where some employees attend as many as four courses in a year while some are not given any opportunity at all should base on the training needs identified during the appraisal.
  7. Employees should also be allowed to participate in decision making in areas where such decision directly affects their duties or tasks. This will no doubt enhance their sense of commitment, loyalty and dedication to organization.

Organizational Reward System And Its Impact On The Productivity Of Staff (A Case Study Of NNPC, Port-Harcourt)

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