REWARD SYSTEM AND EMPLOYEE PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN LAGOS STATE, NIGERIA
Reward system can be seen as a means of actively engaging and the renewing the employee’s sense of community and mission of an organization. In this view, an effectively administered system of rewards can provide incentive for quality workmanship and performance. Reward system and management is one important Human Resource Management strategy for attracting and retaining high quality employee as well as facilitating them to improve performance.
This study adopted survey research design. The target population comprised of 3105 staffs of technical/production department in the three manufacturing companies in Lagos state Nigeria Taro Yamane’s formula was used to determine the sample size of 459 respondents. A structured questionnaire was used to generate data .The questionnaire was adapted with Cronbachs Alpha test for the constructs of the variables ranging from 0.887-0.908, respectively. Data were analyzed using descriptive statistics (Frequencies, percentages, inferential statistics (regression).
The findings revealed that there was a significant positive relationship between sense of accomplishment and employee task performance (R=0.382,R2=0.146, p=0.000<0.05). Recognition & appreciation has a significant positive effect on employee contextual performance (R= 0587,R2=0.345,p=0.000<0.05).salary & wages has no significant positive effect on employee’s counterproductive behaviour (R=0.043, R2=0.002, p=0.421>0.05). Fringe benefits has a significant positive effect on employee’s adaptive performance (R=0.918, R2=0.843, p=0.000<0.05).
It was concluded that Combined Reward system variables had positive effect on employee performance. It was recommended that organizations should ensure that they provide the needed motivation, compensation or remunerate that will spur employees to act towards improving their task performance. They should check employees to ensure that they have the required resources to accomplish a task in record time. The firms should try as much as possible to improve the work environment so that employees can act or perform in context. They have to be monitored in order not to act out of context in the organization.
Keywords: Reward system, Employee performance, Manufacturing companies, Human resource management