International Journal of Management and Entrepreneurship
(IJME) Vol. 2, No. 1, COOU 2020
139
REWARD MANAGEMENT AND EMPLOYEE PERFORMANCE IN
SELECTED MANUFACTURING FIRMS IN ENUGU STATE
1Okeke Fredrick Ejikeme
2Ugwu Jude Ifedioranma
3Nebeife, Dennis Onyemaechi
and 4Ngige Chigbo Donatus, Ph.D
1Department of Crop Science and Horticulture, Nnamdi Azikiwe University Awka,
Anambra State, Nigeria 2Human Resources Planning and Budgeting Unit, Projects Development Institute (PRODA), Enugu 3Department of Business Administration & Management, Institute of Management & Technology
Enugu, Nigeria 4Professor of Business Administration, Chukwuemeka Odumegwu Ojukwu University, Nigeria. E-
mail: [email protected]
Abstract The research focused on reward management and employee performance in selected
manufacturing firms in Enugu State. This study aimed at identify the extent to which extrinsic
reward affects employee performance in the organization, as well as to ascertain the extent
intrinsic reward affects employee performance in the organization. The data collected from
respondents through questionnaire were analyzed with tabular presentation and percentage. The
population of the study was 2821 people while the sample size of 350 was obtained using Taro
Yamane formular and Mario Boley sampling technique and special package for social science
(SSPS) statistical and T-Test normal distribution tools were used to analysed the data. The major
finding revealed that extrinsic reward aimed at maintaining and motivating employee
performance in the organization. It was also found out that constant payment of monthly salary
enhance employee performance in the organization, it was also found out that fringe benefits,
money, promotions attracts and retain suitable employees in the organization and it was found
out that employee who are intrinsically rewarded tends to work at high level of productivity and
strive to develop professionally. Therefore extrinsic reward system have a significant positive
effect on employee performance in the organization and also intrinsic reward have a significant
positive effect on employee performance in the organization. In conclusion, from the data
analysed it was established that extrinsic reward aids in motivating, maintaining, attract and
retain skilled employee in their organization. Also that constant payment of monthly salary
enhance employee performance in the organization. Moreso, fringe benefits, money, promotions
attracts and retain suitable employees in the organization. Intrinsically rewarded employee
works at high level of productivity and strive to develop professionally and a well managed non-
financial reward stimulates employee performance towards top performance in the organization.
Organizations should manage their reward system effectively in order to reduce employee
turnover in the workplace. The major recommendation for high performance from the employee,
the organization should pay their employee as an when due and also provide adequate equipment
and provide good physical working conditions in the workplace. The organization should provide
crèche facilities for nursing mothers who are employees of the organization to enable them
concentrate in their duties in the organization and also the organization should provide soft loan
facility to their employee in order to lessen the economic hardship of their employees.
Keyword: Reward management, extrinsic reward, intrinsic reward, and membership based
reward and employee performance.
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Introduction
Organizations are in global competition to retain their market share in the market, and use
effective rewards system to attract, retain and motivate their employees. It was believe that
reward is one of the important tools used by the organization to attract, retain and motivate its
employee. Any reward system that fails to motivate employees is considered to be an
ineffective reward system. Employees need money for their daily needs and that is why they
subject themselves to work in order for organization to reward or compensate them at the end
of the month. Any organization that does not have the interest of its workers welfare is said to
be working towards failure.
Organizations use different types of rewards to motivate their employees for desired
performance in order to achieve organizational objectives. These types of rewards are
extrinsic and intrinsic reward, financial and non-financial reward, performance based reward
as well as member-based reward.
In This global age, every organization needs to have competent and motivated employees, as
to gain wider market coverage therefore it is important for organizations to find out what
motivates their employees so that employees can give their best to the organization.
(Onuegbu & Ngige 2018).
Human resource managers seek to design reward system that facilitate achieving the
organization strategic goals and meet the goals of individual employees (Bratton & Gold
1999).
Asaju & Yarie (2017) in their study on assessment of the extrinsic rewards on intrinsic
motivation and performance of senior non-teaching staff of federal college of education Zaria
(2005-2010) positively support this study. The authors contend that finance related rewards
constitute the most important or vital motivator among the staff. The study also validates the
fact that financial rewards still dominate motivation among employees in Nigeria and many
other developing countries. Olori & Edem (2017) also investigated intrinsic reward strategies
and employee performance in Nigeria‘s Microfinance Industry. It was found that the non-
monetary rewards or intrinsic rewards employees receive in microfinance banks influence
their performance through quality output and effective customer service. The study also
indicated that intrinsic rewards should be a key strategy in motivating employees.
Transif (2012) studies relationship between intrinsic rewards and job satisfaction. A
comparative study of public and private organization. The research focused on employing the
relationship between intrmsie regards and job satisfaction for employees of service sector.
The work examined the level of employee‘s job satisfaction for intrinsic rewards such as task
autonomy, task significance, task involvement opportunities to learn new things and
recognition of public & private banking sector employees. The findings indicated that the
intrinsic rewards such as task autonomy, task significance, task involvement, opportunities to
learn new things and recognition are important antecedence to job satisfaction for the
employees of service sector organization.
Moreso, bari, Arif and Shoaib (2013) investigated impact of non-financial rewards on
employee attitude and performance in the workplace. A case study of business institutes of
Karachi. The study aimed at finding the impact of non-financial reward on employee attitude
and to get information about the factors which affect their performance at workplace. The
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findings showed that feedback to employees, freedom, career development plan and valuation
of employees learning programmes, open and comfortable work environment and good
supervisory relations, all these factors positively impact employees attitude and performance
in the work place. The study is of the view that adequate reward by organization enhanced
employee performance.
Lotta (2012) states that financial incentives are indeed very effective in
motivating employees. Gunu (2005) maintains that employee reward can
either be financial or non-financial; or both. What is important is that an
employee is adequately compensated for his efforts and such practice
actually induces him for greater performance. Moreso, reward that motivate
employees may not be the same for everybody.
Schuler (1998) Employee Performance (what an employee does or does not do) influences an
organizational productivity and its competiveness. Fortunately, what employee do can be
measured and evaluated, particularly their job performance and absenteeism. Job
performance describes how well an employee performs his or her Job, while absenteeism
refers to whether the employee is there to do the work. Performance can be measured by
employee‘s job-related: (1) Output for example, the number of shelves stocked by the shelf
stockers at the grand union grocery stores, or the number of welding machines assembled by
Lincoln electric workers (2) behavior in terms of working together co-operatively in teams
(3) attitudes eg the willingness on the part of the workers at general electric (GE) to the
flexible and adaptable or the friendliness.
It is on this ground that this study investigates the relationship between
reward management and employee performance in the manufacturing firms in
Enugu State.
1.2 Statement of the Problem Reward encompasses pay, remuneration and compensation, therefore reward
strategy should be devised and developed to meet organizational and employee
needs (Pilbeam and Corbridge, 2002). Some organizations mismanage their
reward system thereby resulting to so many problems that lead to poor
productivity and employee performance.
There are frequent employee turnover in organizations due to poor
remuneration by employers, thereby resulting to loss of skilled workers. These
dissatisfied employees seek for enhanced pay in other organizations.
Irregular payment of workers‘ salaries leads to demotivation of employees,
this leads to poor employee performance in the organization. Bad and harsh
economic condition in Nigeria makes it difficult for some organizations to
adequately remunerate their employees.
Most organizations in Nigeria do not follow employment legislation, disregard
labour laws and edicts as a yard stick for rewarding their employees. These
affected employees work in a state of acrimony. Moreover, due to high level of
unemployment in Nigeria, employees are compelled to take whatever is offered to them
by their employers.
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Many researchers have researched on reward management but they have not worked on these
manufacturing firms under study. Therefore the researcher decided to study reward
management and employee performance with a view to find out how these firms reward their
employees for high performance.
1.3 Objectives of the Study The broad objective of the study is to ascertain the effect of reward
management on employee performance in selected manufacturing firms in
Enugu State. The specific objectives are to:
1. identify the extent to which extrinsic reward affects employee
performance in the organizations understudy.
2. ascertain the extent to which intrinsic reward affects employee
performance in the organizations understudy.
Hypotheses 1. Ho: Extrinsic reward system have no significant positive effect on
employee performance.
2. Ho: Intrinsic reward system have no significant positive effect
on employee performance.
Significance of the Study
The study will help the business owners to learn how to reward their employees
effectively, thereby motivating them to put their best performance for the
progress of their organization.
The study will serve as a literature for further studies for students and
researchers.
Also, it will educate the general public on the benefits of equitable reward
management.
It will help the government to compel organization to comply with employment
legislations.
Scope of the Study
The scope of the study is on reward and employee performance as it affects the
selected manufacturing firms, in Enugu State Nigeria, at 2019 which involved;
Aqua Raffa Coy Enugu, Innoson Nig. Ltd, Hardis & Dlomedas, AC Drugs,
Herbertex Nig. Ltd, Nigeria Breweries, Coca Coal Bottling Coy, and Juhel
Pharmaceutical Nig. Ltd.
Unit Scope will be- The study centered on CEO‘s and employees of the
selected manufacturing firms, in Enugu State.
Review of Related Literature
Conceptual Framework: Reward Management
Mathis & Jackson (2004) states that rewards can be both intrinsic and
extrinsic. Intrinsic rewards often include praise for completing a project or --
meeting performance, objectives. Other psychological and social effects of
compensation reflect the intrinsic type of rewards. Extrinsic rewards are
tangible and take both monetary and non-monetary forms. Tangible
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components of a compensation program are of two general types. With direct
compensation the employer exchanges monetary rewards for work well done.
Employers provide indirect compensation like health insurance to everyone
simply based on membership of the organization. Base pay and variable
pay the most common formal of direct compensation. Indirect
compensation commonly consists of employee benefits.
Base pay
The basic compensation that an employee receives, usually as a wage or
salary is called base pay. Many organizations use two base pay categories,
hourly and salaried, which are identified according to the way pay is
distributed and the nature of the jobs. Hourly pay is the most common
means of payment directly calculated on the amount of time worked. In
contrast, people paid salaries receive consistent payments each period
regardless of the number of hours worked.
Benefits Many organizations provide numerous extrinsic rewards on an indirect
manner. With indirect compensation, employees receive the tangible
value of the rewards without receiving actual cash. A benefit is an indirect
reward - health insurance, vacation pay, or retirement pensions - given
to an employee or group of employees as a part of organizational
membership, regardless of performance.
La Belle (2005) in Ibrar & Khan (2015) is of the view that different employees have different
needs about rewards. Some employees consider that cash is sufficient to fulfill their needs
and some others wants material – incentive…like car, house and prefer holidays and some
prefer non-material incentives. Public sector employees much prefer extrinsic factors than
intrinsic factors such as pay as more important that private sector employees (Maidani 1991).
These two basic rewards (financial and non-financial) can be utilized positively to increase
the performance of employees. Financial reward mostly consists of pay for performance such
as job promotion, bonus, commission, gifts and so on and non-financial rewards mostly
consist on social recognition, appreciation, and work responsibility. (Luthans 2000) in Ibrar
& Khan (2015).
The importance of reward management is heightened by its important role in enhancing
employee performance. As a result a special area of concern for human resource managers
has been the reward management and with special emphasis to its effect on employee
performance (Baptiste 2008). Efforts have therefore been made by human resources
management theorists to try to establish the relationship between reward management and
employee performance in various sectors of the economy. Expectation are built into the
employment relationship, the starting point of which from the reward point of view, is an
undertaking by an employee to provide effort and skill to the employer, in return for which
the employer provides the employee with a salary or a wage, this then raises the performance
of the employee whose expectations would have been met (Armstrong & Taylor 2014).
Compensation and Employee Performance Ivancevich & Glueck (1989) contends that high performance requires much
more than employee motivation. Employee ability, adequate equipment, good
physical working conditions, effective leadership and management,
employee health and other conditions all help raise employee performance
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levels. But employee motivation to work harder and better is obviously an
important factor. And most compensation experts believe that if pay is tied
to performance, the employee produces a higher quality and quantity of
work.
Not everyone agrees with this, some researchers argue that if you tie pay to
performance you will destroy the intrinsic rewards a person gets from doing
the job well. These are powerful motivators too. But the research behind
these concerns has been limited to only a few studies. The importance of
money to employees varies among individuals. And if the organization claims
to have an incentive pay system and in fact pays for seniority, the motivation
effects of pay will be lost.
Some theories disagree over whether pay is a useful mechanism to motivate and satisfy
employees. Because of individual differences in employees and jobs, it seems more fruitful to
redirect this research to examine
1. The range of behaviours that pay can affect positively or negatively.
2. The amount of change pay can influence.
3. The kind of employees that pay influences positively and negatively.
4. The environmental conditions that are present when pay leads to positive and negative
results
The point is that, although compensation in the form of pay for performance has interactive
appeal, it is extremely difficult to perfectly fit a pay for performance system together.
Developing a system that employees consider as showing that pay is tied to performance
requires a number of managerial skills. First, managers must be able to allocate pay on the
basis of merit. Any merit pay increase must be meaningful, not a token, if it is to be
motivational.
Second, managers must be willing to specifically discriminate among subordinates, in terms
of rating and rewarding performance. Third, the pay system must be communicated at the
time of employment in terms of initial pay, expected long-term progression, and adjustments.
This information should be communicated by the manager, who informs the employee as
well what performance levels are required to obtain the pay increases. Finally, managers must
have the ability to discuss the pay for performance linkage with subordinates.
One reason that organization have failed to the pay and performance for their employees is
that it requires quite a bit of work, effort and commitment by management. A more simplified
strategy is to conduct business as usual or to not work on creating a pay for performance
perception among subordinates. The first step in the direction of creating pay for performance
work culture is to develop performance evaluation systems that are considered equitable
meaningful and comprehensive by managers and employees.
Organizations now are facing employee retention challenges. The various forms of behaviour
and attitude disposition which organizations require of its employees in order to achieve set
goals depends on the kind of rewards and incentive package the organization is willing to
offer. Sometimes, rewards are not simply expressed in the monetary form, but it also includes
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those difficult to measure in monetary currencies. There are various elements of these
intrinsic rewards available in organization which increases satisfaction and overall job
productivity of employees like job involvement, participation in decision making task
significance and recognition (Onuegbu & Ngige 2018).
Reward is one of the important tools for organization to motivate its employees at workplace
or in the organization. In this global age, every organization needs to have competent and
motivated employee, so that organization can sustain in the market or in the business
therefore it is important for organization to find out what motivates its employees so that
employees can give their best to the organization. (Onuegbu & Ngige 2018).
Human resource managers seek to design reward system that facilitate achieving the
organization strategic goals and meet the goals of individual employees. (Bratton & Gold
[1999).
All workers, including volunteers who donate their time to worthy causes expect to be
rewarded in some way for their contributions.
Reward may be defined broadly as the material and psychological payoffs for doing
something. These payoffs can have an immense impact on how long and hard someone
works. A person who is please with the consequences of work is likely to put forth more
effect than someone who feels short changed or cheated in some way.
Managers have found that job performance and satisfaction can be improved by properly
administered rewards. Today, rewards vary greatly in both type and scope depending on ones
employer and geographical location.
A prime objective of effective people resourcing is to have the right people, in the right place,
at the right time, doing the right thing. This cannot easily be achieved without the right and
reward strategies for the organization. Pilbcam and Corbridge (2002). Reward encompasses
pay, remuneration and compensation. It represents a portfolio of managerial practices where
financial and non-financial elements are flexibly directed at enabling and rewarding
employees who add value in the interests of competitive advantage. Reward is used as an
holistic term to reflect a more dynamic and a more flexible approach.
Reward strategy should be devised and developed to meet organizational and employee needs
(Pilbeam & Corbridge 2002). Robbins S.P (1982) is of the view that organization, then use
rewards to motivate people. They rely on rewards to motivate job candidates to join the
organization. They certainly rely on rewards to get employees to come to work and perform
effectively once they are hired.
Bratton J. & Gold J. (1991) contends that reward refers to all forms of financial returns and
tangible services and benefits employees receive as part of an employment relationship.
Reward is the centre piece of the employment relationship.
The objectives of a compensation system is to create a system of rewards that is equitable to
the employer and employee alike, so that the employee is attracted to the work and motivated
to do a good job for the employer. (Ivancevich, Glueck 1989).
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Employee performance
Schuler (1998) Employee Performance (what an employee does or does not do) influences an
organizational productivity and its competiveness. Fortunately, what employee do can be
measured and evaluated, particularly their job performance and absenteeism. Job
performance describes how well an employee performs his or her Job, while absenteeism
refers to whether the employee is there to do the work. Performance can be measured by
employee‘s job-related: (1) Output for example, the number of shelves stocked by the shelf
stockers at the grand union grocery stores, or the number of welding machines assembled by
Lincoln electric workers (2) behavior in terms of working together co-operatively in teams
(3) attitudes eg the willingness on the part of the workers at general electric (GE) to the
flexible and adaptable or the friendliness.
The impact that job performance and absenteeism can have on productivity and the
competitive strategy of an organization is now widely recognized. Major quality
improvement and quality of work life programs at many large corporations such as Chrysler,
general electric etc have aimed at increasing productivity and achieving improved quality
through reducing absenteeism and improve employee performance.
Employee performance is the quality that can be measured by percentage of work output,
customer satisfaction that can be measured by the number of loyal customers and customer
feedback. Also, timeliness, measured in terms of how fast work is performed by the
employee when given a certain task, absenteeism or tardiness observed when employee
absent themselves from work and achievement of objectives measured when an employee has
surpassed their set targets, they are then considered to have performed well to achieve
objectives (Hakala 2008: Armstrong 2010).
Performance is measured in terms of some output produced such as the quality or quantity of
job, job design and others. Job performance should be considered as a significant in order to
achieve the organizational objectives (Gerhart & Milkovich 2002). Performance is measured
through performance indicators that many include achievement of targets, timeliness among
others. It can be seen that employees individuals performance has an impact on the
organization wider objectives and it is thus imperative that every employees performance
should be managed. This process of performance includes group assessment and peer reviews
as well as written reports (Hellriegel et al 2004). In recent years performance management
systems have become more important because managers are under constant pressure to
improve the performance of their organization (Holloway, Francis & Hinton 1999).
Theoretical Framework
This work is anchored on Maslow‘s Hierarchy of Needs (Robbins (1982). The choice of
Maslow‘s Hierarchy of Needs theory is that it takes into consideration employee motivation
in order to induce better performance in the workplace. He hypothesized that within every
human being there exists a hierarchy of five needs. These needs are (a) physiological:
includes hunger, thirst, shelter, sex, and other bodily needs.
2. Safety: Includes security and protection from physical and emotional harms.
3. Love include affection belongingness; acceptance and friendship
4. Esteem: Includes internal esteem factors such as self-respect autonomy and
achievement and external esteem factors such as status, recognition and attention.
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5. Self-actualization: The drive to become what one is capable of becoming: includes
growth, achieving one‘s potential‘ self-fulfillment. As each of these needs becomes
substantially satisfies, the next needs becomes dominant from the stand point of
motivation, the theory would say that although no need is ever fully gratified a
substantially satisfied need no longer motivates.
Maslow separated five needs into higher and lower levels. Physiological and safety needs
were described as lower-order needs; and love esteem and self-actualization as higher-order
needs.
The differentiation between the two orders was made on the premise that higher-order needs
are satisfied internally, whereas lower-order needs are predominantly satisfied eternally by
such things as money, wages, union contracts, tenure and pleasant working conditions.
Maslow‘s hierarchy of needs theory has received much recognition particularly among
practicing managers.
Empirical Review
Eze (2012) investigated the role of reward management in organizational performance. A
study of university of Nigeria, Nsukka. The study examined the role of reward management
in enhancing organizational performance of university of Nigeria Nsukka. The specific
objectives of the study are to examine the relationship between monetary reward and
employees performance in an organization and to examine the relationship between non-
monetary reward and employee's performance in an organization. The study was conducted
in Nigeria. The study used survey research method of which questionnaire were administered
to the sample drawn from the population of the study. The data collected were analysed with
chi-square (X2) and the findings reveals that there is a significant relationship between
monetary rewards and employee performance among university of Nigeria Nsukka staff and
there is a significant relationship between non-monetary rewards and employee performance
among staff in university of Nigeria Nsukka.
Mba, Mgbemena & Ejike (2015), investigated effective reward management and employee
performance in civil service: A study of Anambra State civil service. The study examined the
impact of effective reward system as a tool for employee performance in civil service using
Anambra State as a case study. As specific objectives the study examined the relationship
between employee performance and pay reward, employee recognition, conducive work
environment and staff development. The study was done in Nigeria using survey design and
questionnaire to collect the data and Pearson correlation coefficient and multiple regression
analysis statistical tool was used to analysed the study. The population of the study was 1481
senior civil servants identified through the nominal roll of various ministries. The study found
that pay reward and some non-financial rewards of employee recognition, conducive work
environment and staff development are positively and significantly related to employee
performance in civil service.
Mandong (2017) investigated rewards and employees job satisfaction of selected out sourced
service providers in Jos, Plateau States Nigeria. The main objective of the study is to examine
the relationship between rewards and employees job satisfaction of selected outsourced
service providers in Jos. The study was conducted in Nigeria and a survey research design
was adopted and the population of the study was 541 employees of 5 selected out sourced
service provider in Jos. Questionnaire was used for data collection while simple regression
analysis and Pearson product moment correlation test were used to analyzed the data. The
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finding revealed that pay (R2 = 0.665, P < 0.005), fringe benefits (r = 0.747, P < 0.05)
Recognition (R2 = 0.558, P < 0.05) Promotion (R2 = 0.683, P < 0.05) and Job security (R2 =
0.711, P < 0.05) have positive significant effect on employees job satisfaction of selected
outsourced service providers in Jos, Plateau State.
(4) Ezigbo & Court (Retrieved on 10/4/19) studied the effect of monetary and non-monetary
rewards on the employees performance in manufacturing firms in River State, Nigeria. The
study investigated the motivational implications of monetary and non-monetary rewards in
the performance of manufacturing organizations in River State, Nigeria. The study was done
in Nigeria and was conducted using cross sectional design. The population of the study was
1417 employees from Nigeria Engineering works (New) PLC. A sample of 312 respondents
was drawn through proportionate strategified sampling, questionnaire was used for data
collection and the data was analyzed with chi-square statistical tool. The study found that
monetary and non-monetary reward had significant positive effect on employee performance.
5) Oyira, Ella, Nkamare, Lukpata, Uwa & Mbum (2015) (Retrieved on 20/4/19)
investigated the effect of reward system among health care workers performance: A
case study of university of Calabar teaching hospital Calabar, Nigeria. The objective
of the study are to determine the relationship between monetary reward and the health
care workers performance and to determine the relationship between non-monetary
reward and health care workers performance. The study was conducted in Nigeria.
The population of the study was 277 workers of UCTH. The study adopted a mix-
method approach, questionnaire and chi-square statistical tool. The finding revealed
that monetary reward had a positive impact on employees performance and also that
monetary rewards are tools of growth and development in an organization.
6) Nnaji-Ihedinmah & Egbunike (2015), studied the Effect of Rewards on
Employee Performance in organizations. A study of selected Commercial Banks in
Awka Metropolis. The main objective of the study is to determine whether a
relationship exists between rewards system and employee performance. The study
was conducted in Nigeria and the population of the study was 95 (ninety-five)
employees from eight banks located in Awka. The researchers used questionnaire,
regression technique and two way Anova to analyzed the study. The findings
indicated the presence of a relationship between rewards and employee performance
and that there is a significant difference on the effects of intrinsic and extrinsic
rewards on employee performance.
Methodology
The researcher used a survey research method to carry out the research because survey
research isolates individuals, groups of individuals, institutions or community for study. Also
case study employs a variety of data gathering techniques such as questionnaire, observation
and interview etc. it is also useful in providing relevant background information.
The main research instrument to be used for this research is the questionnaire copies of which
will be administered to the members of the organization. Moreso to the use of the above
methods, observation techniques will equally be used in order to ascertain the practical
existence of facts that will be gathered through the questionnaire.
Area of Study
The study was conducted at selected manufacturing firms in Enugu State Nigeria
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Population of the Study Population is the finite or infinite collection of objects under study. The expected population
size (N) is 2821.
Sample Size and Sampling Technique A sample is defined as a group of objects selected from a population for study for the
purpose of making generalization about the population from which the sample has been
drawn.
The sample size was derived using Taro Yamane formula below.
n =
Where n = Sample
N = Population
e = Margin of error
Therefore to derive n
N = 2821
E = 5% (assumed)
N = 2821
1 + 2821 (0.05)2 = n = 2821
1 + 2821 (0.005)
N = 2821 n = 2821
1 + 7.05 8.05 = 350.43 = n = 350
N = 350
Method of Data Collection
The Data was collected with questionnaire and observation. 350 copies of questionnaire will
be distribute to the respondents.
Validation Test of instrument Validity is the ability of a measurement instrument to measure what it was supposed to
measure and is therefore concerned with the quality of the research
Reliability Test of instrument
Reliability test was carried out on the instrument. Test retest method will be used by the
researcher to determine the reliability of the instrument.
Data Presentation and Analysis
4.2 Test of Hypotheses
T-test normal distribution was used to measure the strength of the association between the
variables used.
The t-test statistic were used to determine/testing the significance of an observed correlation
coefficient. The correlation coefficient only shows the degree of relationship between
variables;
t = rn-2
1-r2
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Where
n = sample size
r = the coefficient of correlation
n-2 = degree of freedom Test of Hypothesis One
Statement of Hypothesis One
Statement of Hypothesis One
Ho: Extrinsic reward system has no significant positive effect on employee performance
Table 4.6: Item statistics
Item statistics N
Minimu
m
Maximu
m Sum Mean
Std.
Deviation
4.6.1 289 1.00 5.00
1296.0
0
4.484
4 1.03108
4.6.2 289 1.00 5.00
1192.0
0
4.124
6 1.46666
4.6.3 289 1.00 5.00
1303.0
0
4.508
7 1.16701
4.6.4 289 1.00 5.00
1352.0
0
4.678
2 .78853
4.6.5 289 1.00 5.00
1236.0
0
4.276
8 .95353
4.6.6 289 1.00 5.00
1158.0
0
4.006
9 1.13955
Valid N (listwise) 289
Source: Field Survey 2019; SPSS 16.0 Output
Table 4.11: One-Sample Test for Extrinsic reward system and employee performance
Test Value = 0
T Df
Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval of
the Difference
Lower Upper
Promotions from
my employer
motivates me as
well as enhance my
performance in the
organization
36.277 286 .000 2.15462 2.0379 2.2713
Source: SPSS 23.0 Output
Decision Rule
Interpret the results. Compare the P-value to the significance level stated earlier. If it is less
than α, reject the null hypothesis. If the result is greater than α, fail to reject the null
hypothesis. If you reject the null hypothesis, this implies that your alternative hypothesis is
correct, and that the data is significant. If you fail to reject the null hypothesis, this implies
that there is no significant difference between the sample data and the given data.
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Result
The result on Table 4.11 shows the influence of Extrinsic reward system on employee
performance (t = 36.277; df = 286; P < 0.05). The respondents have higher agreement on the
items on the influence of Extrinsic reward system on employee performance.
Decision
Extrinsic reward system have a significant positive effect on employee performance
Test of Hypothesis Two
Statement of Hypothesis Two
Ho: Intrinsic reward system has no significant positive effect on employee performance
Table4.7: The extent intrinsic reward impact on employee performance in the
organization
S/N Item statistics N Minimum Maximum Sum Mean Std. Deviation
1 4.7.1 289 1.00 5.00 1156.00 4.0000 1.09291
2 4.7.2 289 1.00 5.00 915.00 3.1661 1.27479
3 4.7.3 289 1.00 5.00 1126.00 3.8962 1.28410
4 4.7.4 289 1.00 5.00 1127.00 3.8997 1.48615
5 4.7.5 289 1.00 5.00 1126.00 3.8962 1.19444
6 4.7.6 289 1.00 5.00 1119.00 3.8720 1.41208
Valid N (listwise) 289
Source: Field Survey 2019; SPSS 16.0 Output
Test of Hypothesis Two
Statement of Hypothesis Two
Ho: Intrinsic reward system have no significant positive effect on employee performance
Table 4.12: One-Sample Test for the influence of Intrinsic reward system and
employee performance
Test Value = 0
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval of
the Difference
Lower Upper
Having self-
actualization as a
result of working
in my organization
enhance my
performance in the
workplace
34.889 286 .000 2.27912 2.1508 2.4075
Source: SPSS 23.0 Output
Result
The result on Table 4.12 shows the influence of Intrinsic reward system on employee
performance (t = 34.889; df = 286; P < 0.05). The respondents have higher agreement on the
items on the influence ofintrinsic reward system on employee performance. The null
hypothesis is therefore rejected.
152
Decision
The statistical significance indicates that Intrinsic reward system have a significant positive
effect on employee performance
Discussion of Results
In objective 1, as well as its research question and hypothesis, that is to identify the extent to
which extrinsic reward affects employee performance in the organization. It was found that
extrinsic reward system have a significant positive effect on employee performance. It was
observed that organization use rewards to motivate employee. They rely on rewards to
motivate job candidates to join the organization. It was observed from the views of
respondents that extrinsic rewards are tangible and take both monetary and non-monetary
forms.
It was also observed that organization promotions and increase the salaries of their employees
in order to motivates them for top performance. This idea is in line with the principle
objective of reward management to maintain or improve levels of employee performance.
Employees seek rewards that will satisfy their individual needs.
In objective 2, as well as its research question and hypothesis, that is to ascertain the extent to
which intrinsic reward affects employee performance in the organization. It was found that
intrinsic reward have a significant positive effect on employee performance It was observed
that intrinsic reward is internal to the person in that it is something that you have to offer
yourself and is driven by personnel interest or employment in the work. It was observed that
having or attaining self-actualization as a result of working in an organization enhance the
employee performance in an organization. It makes an employee to be devouted as well as
working for general good of the organization.
Summary of Findings
The researcher in line with objective 1 of study found that extrinsic reward aimed at
maintaining and motivating employee performance in the organization. It was also found that
constant payment of monthly salary enhance employee performance in the organization. It
was also found that fringe benefits, money, promotions attracts and retain suitable employees
in the organization.
In relation to objective 2 it was found out that having self-actualization as a result of working
in an organization enhance the employee performance in an organization because intrinsic
reward is internal to the person in that it is something that you have to offer your self.
It was found that employee who are intrinsically rewarded tends to work at high level of
productivity and strive to develop professionally.
Conclusion
From the data analyzed, it has been established that organization use extrinsic reward to
motivate, attract and retain skilled employee in their organization.
More so, intrinsic reward is internal to the person in that it is something that you have to offer
yourself and is driven by personal interest. Therefore having self-actualization as a result of
working in an organization enhance the employee performance in the workplace.
The use of membership-base reward as a motivational tool makes administration of reward
equitable in the organization. It was agreed that fringe benefit motivates the employee for top
performance in the organization.
153
Recommendations
Based on the outcome of this research the following recommendation were made
1. For high performance from the employee, the organization should pay their employee
as an when due and also provide adequate equipment, good physical working
conditions in the work place.
2. In line with non-financial reward the organization should provide crèche facilities for
nursing mothers who are employees of the organization to enable them concentrate in
their official duties in the organization.
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