IMPACT OF REWARD SYSTEM ON THE PERFORMANCE OF SELECTED MONEY DEPOSIT BANKS IN ANAMBRA STATE, NIGERIA

IMPACT OF REWARD SYSTEM ON THE PERFORMANCE OF SELECTED MONEY DEPOSIT BANKS IN ANAMBRA STATE, NIGERIA

ABSTRACT

This study focuses on Impact of Reward System on Performance of Selected Money Deposit Banks in Anambra State, Nigeria. The study sought to determine the effects of contingency pay on productivity in selected Money Deposit Banks in Anambra State, ascertain the extent to which employee recognition enhances employee performance in selected Money Deposit Banks in Anambra State, determine the extent of the relationship between variable pay and customer satisfaction in selected Money Deposit Banks in Anambra State, identify the effects of career opportunity on manpower development in selected Money Deposit Banks in Anambra State. The study had a population size of 1858, out of which a sample size of 369 was realised using Zigmund formula at 5% error tolerance and 95% level of confidence. Instruments used for data collection were primarily questionnaires and interview. Out of 369 copies of the questionnaires that were distributed, 350 copies were returned while 19 were not returned. The descriptive survey research design was adopted for the study. The hypotheses were tested using Pearson Product Moment Correlation Coefficient and Simple Linear Regression statistical tools. The findings indicated that contingency pay had significant effect on productivity (r = 0.652; t= 13.209; F= 174.480; p = 0.00 < 0.05). Employee recognition had significantly enhanced employee performance (r = 0.534; t = 12.589; F= 158.495; p= 0.000 < 0.05).   There was a significant relationship between variable pay and customer satisfaction (r = 0.955; p= 0.000 < 0.05). Career opportunity significantly affected manpower development in Money Deposit Banks (r = 0.717;t = 20.524; F = 421.248; p = 0.000  < 0.05). The study concluded that reward system is a vital tool for employees’ effectiveness and efficiency on their job. The study recommended that organizations should adopt contingency pay strategy, which will help to retain and attract talented employees that will assist in promoting organizational productivity.