IMPACT OF REWARD SYSTEM ON ORGANIZATIONAL STAFF PERFORMANCE
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IMPACT OF REWARD SYSTEM ON ORGANIZATIONAL STAFF PERFORMANCE
ABSTRACT
The study investigated the effect of an incentive scheme on organisational staff performance. The study aimed to investigate the effects of basic salary, bonuses, promotion, and recognition on work performance, job quality, and number of tasks done. The study’s sample consisted of the Nigerian Television Authority (NTA). The study was conducted using primary data.
A structured questionnaire was utilised to obtain the relevant data from 100 randomly selected NTA staff members. The descriptive statistics and statistical technique used to evaluate the hypotheses in the study are chi-square, and the data were analysed using the software Statistical Package for Social Sciences (SPSS).
The study’s findings indicated that there is a significant impact of financial and non-financial reward system on organisational staff performance in Nigerian Television Authority;
There exists a significant relationship between the extrinsic and intrinsic reward system and organisational staff performance in Nigerian Television Authority; Both financial and non-financial reward do enhance organisational staff performance in Nigerian Television Authority;
There are factors The study emphasised that the NTA workers’ reward system is extremely important and should be a priority for both management and employees.
The study recommends, among other things, that the HRM department, in collaboration with senior management and trade unions, revise the current salary scale to reflect the current economic environment and establish an appropriate and competitive salary scale;
and that the Human Resource Department (HRD), in collaboration with senior management, develop an innovative bonus plan that recognises the efforts of non-managerial staff.
Chapter one
INTRODUCTION
1.1 Background of the Study
For any organisation to run effectively and have high-quality staff performance, it must first understand its employees’ needs, which should then inform the organization’s suitable reward systems.
Hafiza (2011) suggested that in order for organisations to operate optimally and compete effectively, they must maximise their resources, one of which is the human asset, which is the most valuable asset any organisation can have.
To obtain the essential organisational staff performance requirements from human resources, staff motivation through an effective reward system is required. Employees will base their performance on a sense of faith that their efforts will be rewarded by management.
According to Armstrong (2012), guaranteeing organisational staff performance is the process of improving results by understanding and controlling employee performance within an agreed-upon framework of planned goals, standards, and competency criteria.
However, a desired aim and target can only be reached effectively if the workforce understands that achieving a set performance target benefits the organisation as a whole. In light of this, an organization’s reward system must be carefully designed to analyse employee productivity at all levels and reward them properly.
According to Herman (2009), an effective reward system seeks to meet the staff’s specific needs; however, if an employee has already met his or her basic needs through monetary reward, he or she will value rewards that reinforce his or her self-actualization and thus will be more motivated by relational rewards.
Various organisations’ personnel has demonstrated that they have diverse needs, necessitating a complete total compensation system to fulfil the needs of various employees.
As a result, management has faced the difficulty of establishing and providing competitive rewards to employees in order to improve their performance. According to Shaw (2006), human resource managers should strive to create human resource programmes that boost employee performance and organisational effectiveness.
One prominent method for improving employee performance has been to link incentives to performance through various types of incentive pay. Examples include special recognition of excellent individual or team achievements with small monetary awards, individual performance rewards based on specified employee performance criteria, and stock ownership rewards for professionals who meet certain goals.
The way organisations treat their personnel is increasingly determining their performance (Lawler, 2003). Organisations are increasingly recognising the importance of striking a balance between an individual’s effect on the organisation and the organization’s influence on the individual.
Given this, it is logical to infer that organisations must understand how to reward and inspire employees, as well as what motivates them to reach higher levels of performance and productivity (Amos, Ristow, & Ristow, 2004).
Although financial prizes are certainly significant ways to promote employees for great performance, other types of recognition are frequently disregarded as part of an organization’s compensation system (Luthans, 2002).
According to Nienaber (2009), in order to adapt to today’s workplace and employee demands, organisations must understand their employees’ preferences and requirements and provide more than simply a high salary.
According to Ferguson and Brohaugh (2009), salary is crucial to employees, but what truly affects people is the quality of their work experience. Thus, an efficient compensation system necessitates a thorough grasp of employee preferences.
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