OMOTOSHO, O. S.
Department of Marketing
The Federal Polytechnic
The major driving force of any organisation is its human resources capacity. Successful organisations are constantly working towards achieving increased performance and consequently higher productivity through various tools, techniques and strategies characterised by increased investment in their employees. The reward system is one of the instruments the managers of corporate organisations use to invest in their employees. The main objective of doing this is to procure, maintain and retain good, efficient, highly motivated and highly performing employees. This study therefore investigates the impact of the reward system (both transactional and relational) on organisational performance. The objectives of the study are to analyse the reward package, determine how it affects employees’performance and consequently organisational productivity. Determine how the extrinsic and intrinsic rewards are managed to achieve employees’ optimum performance. Guide management on the need for truly appropriate and adequate rewards system or policies for its employees. Both primary and secondary data were used to prosecute the research. The questionnaire and the interview methods were used to elicit information from respondents. Formulated hypotheses were tested using both the chi – square and regression analysis as statistical techniques. The research findings indicate a strong and positive correlation between total rewards and employees’ performance and consequently organisational productivity.The result showed that appropriate reward system increases employees’ performance and consequently organisational productivity. The test also confirmed that reward has significant effect on organisational performance/productivity. The study recommends among others, that, total rewards should be designed in such a way that it can meet the diverse needs of the
employees and the various ways individuals can be motivated for optimum performance.
Keywords: Banks , Fringe Benefits, Productivity and Remuneration
International Journal of Labour and Organizational Psychology Vol.10 No. 1&2
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