EFFECTIVE REWARD SYSTEM IN THE IMPROVEMENT OF PERFORMANCE IN PUBLIC ORGANIZATIONS

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EFFECTIVE REWARD SYSTEM IN THE IMPROVEMENT OF PERFORMANCE IN PUBLIC ORGANIZATIONS

abstract

 

The study is on effective reward system in the improvement of performance in public organizations. This study therefore sought to ascertain the extent of the relationship between reward system and organizational performance, identify the major implications of effective reward system on employee performance, determine the extent to which effective reward influence employees’ behaviour, and ascertain whether monetary rewards influence employee behaviour more than non –monetary rewards. This study adopted survey research design. Simple random technique was used in selecting the ministries in Enugu State. The ministries selected were: Ministry of Transport, Agriculture, Finance and Budget/Planning. A sample of 288 respondents was determined from the population of one thousand and thirty-three (1033) drawn from the senior and junior staff of the selected ministries using Taro Yamane’s sample size determination method. The sources of data for the study were primary and secondary. The main instrument used for primary data collection was questionnaire and interview. The secondary data were sourced from journals, textbooks and internet. The questionnaire was structured in five-point Likert scale in line with the objectives of the study. Content validity approach was used to ensure that the variables measured were all covered. The instrument was checked for reliability using test-re-test method. The result gave reliability co-efficient of 0.98% showing high degree of item consistency. The total number of the questionnaires distributed for this study was two hundred and eighty-eight (288) copies, while two hundred and sixty five (265) copies representing 92% were completed and returned. The research design adopted was survey design. The data generated from the field survey were presented and analyze using frequency distribution table and simple percentages. The hypotheses were tested using Z-test and Chi-square. The findings indicate that there is a significant relationship between reward system and organizational performance; Low labour turnover and improved performance are the major implications of effective reward system; the extent to which reward influence employee behaviour is high and that monetary rewards influence employee behaviour more than non-monetary rewards. The study recommends that reward system should be carefully drawn to reflect equity or fairness as compensation usually has several meanings to employees; to ensure that ministries provide reward that is both competitive and equitable, compensation experts or specialists in the human resource department should be created to develop, administer and oversee the reward system. The study concludes that reward system focuses on positive reinforcement, because it stimulates people to take actions since they get something of value for doing it.

 

 

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