People entering organization go into these organizations with a lot of expectation in mind. In most cases, they want good salary and other rewards or benefits if they are to be retained in the organization. These rewards includes: opportunity for advancement, job security, efficient medical services, pension scheme etc. when these rewards appear adequate and meet the expectations of staff they are retained but where they feel that the reward system is not satisfactory they try to leave the organization for better prospect elsewhere. The broad objective of this research is to determine the effect of reward system on employee”s productivity. Various literatures were reviewed; primary and secondary method of data collection was employed in sourcing of data. Simple percentage was used in the analysis of questionnaire while Chi-square was used in testing hypothesis. In conclusion reward system has a positive and significant effect on staff productivity in NNPC. It recommended that there should be rewards meant out to employees which will help to achieve maximum productivity and efficiency. 

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Organizational reward system refers to the ways and modalities by which workers in an organization can be motivated or aroused to putting more efforts that will lead to attainment of the organizational goals.

It is also seen as those motivational tools which an organization adopts to reward their workers for high or improved productivity.

These rewards or incentives vary from one organization to another and they include the following: advance opportunity in the company; job security, good salary, adequate medical facilities, pension scheme, credit for the job well done i.e. (recognition) etc.

Management involves motivating people and any human productivity. This inevitable leads to the question of incentives and reward. To most people an incentive money, compensation, direct or indirect. Incentives and reward may be financial and non-financial. It has to be mentioned here that incentives and rewards are used for four main purposes.

1.         To persuade people to come to work

2.         To encourage people to work hard while they are at work

3.         To help people identify themselves with the objectives of the organization.

4.         To show management appreciation of the employees contribution to the survival of the organization.

Consequently, the problem of how to make employers work harder for the interest of the organization and for their own interest becomes a fundamental one.

In this study, the researchers aims at determining the effect of organizational reward system on staff productivity. The research is specifically a study of the Nigeria National Petroleum Corporation (NNPC). The researcher will also focus on ways how organizational reward can be administered so as to reduce dissatisfaction and improve productivity of staff. The goal of the study is to provide an insight knowledge of the driver variables of organization reward system that effects employee productivity. Organizational reward system is the independent variables and is constructed as (i) Equitable reward (payment equity), (ii) Fulfilled need requirements and (iii) promotional opportunity.

The dependent variable is the employee productivity: employee productivity is operationally decomposed into efficiency and effectiveness, satisfaction and absenteeism.

1.2       BRIEF HISTORY OF THE ORGANIZATION

Nigerian National Petroleum Cooperation NNPC is a public liability company established by the federal republic of Nigeria. The organization is chosen for the study in view of its high numbers of employees which ranged from 100 and above 480 employee at Owerri branch. The population makes the organization reliably fit for this study and this number of employees make up the population of this study.

1.3       STATEMENT OF THE PROBLEM

The broad statement of the problems is reflected in the statement of “Effect of reward system on staff productivity, this is explainable by the fact that the early ideas of employer”s remuneration were based on the principle of penalty and reward, the underlying assumption being that people at work minimize their own interest and act according to the extent to which they are motivated to do work. The specific and feasible statement of this research drawn from the broad statement of the study above will attempt to investigate the correlation between the driving reward variables and productivity in the organization.

To resolve this problem, the study will determine whether organizational reward system within defined variables effects employee productivity within defined variables.

The study assumes that rewards are likely to lead to high employee productivity when they are (i) perceived as being equitable by the employee (ii) when employees need requirements arc fulfilled and (iii) when employees have promotion opportunities in the work place (independent variables).

Similarly the employee (staff) productivity will be measured by effectiveness, satisfaction and Absenteeism (Dependent Variables).

Importance of this study is the knowledge to be gained by using employee direct or indirect compensation in packages like benefits, flexible work hours, paternity leaves and day care centres to impact on increasing efficiency and effectiveness, improving satisfaction and increasing employee job involvement and commitment.

This is to be resolved by

i.          Determining the relationship between equitable compensation and effective productivity.

ii.         Determining the relationship between promotional opportunities and satisfaction with the tasks.

iii.        Determining the correlation between employees fulfilled need requirements and absenteeism. Similarly the independent variables can be tested as a drawings variables capable of influencing the dependent variables thus:

iv.        Determining the effect of equitable compensation on job satisfaction.

v.         Determining the effect of promotional opportunities on absenteeism.

vi.        Determining the effect of fulfilled need requirements on productivity effectiveness. The study variables be investigated will attempt figure ii-iii

The reward performance relationship can be essentially summarized in the statement “A happy worker is a productive worker”. In view of the above we can conclude that rewards are likely to lead to high employee satisfaction. This condition would foster a minimum of dis-satisfaction among employee, reduce withdrawal pattern and increased organizational commitment and performance. The expectancy theory has been found relevancy to explain the consequences of reward as a satisfier especially when tailored to the needs of the individual. In a similar manner the post purchase theory S = f(E.p) . Where S is satisfaction, S is function, E is expectation and P representing performance has also be found relevant.

1.4. OBJECTIVES OF THE STUDY

The broad objective of the study is to determine the effect of reward system on employees” productivity.

The specific and feasible objectives are:

i.          To evaluate the relationship between equitable compensation (payment equity) and effective productive performance.

ii.         To evaluate the relationship between promotional opportunities on absenteeism.

iii.        To evaluate the correlation (relationship) between employees fulfilled need requirement on job satisfaction.

1.5       RESEARCH QUESTIONS

1.         To what extent does equitable compensation (i.e fair payment equity) influence job effectiveness in the productivity of your organization?

2.         To what extent does promotion/award opportunities influence reduced absenteeism in your organization?

3.         What correlation exist between employees fulfilled need requirements and job satisfaction.

1.6       RESEARCH HYPOTHESES

Ho: No significant correlation exists between employee fulfilled need requirement and job satisfaction in NNPC.

Ho: Promotion opportunities does not significantly influence reduced absenteeism in NNPC.

1.7       SIGNIFICANCE OF THE STUDY

The study is significant in much respect;

First, the findings of the study will help organization to know how best to reward their hardworking employee.

Secondly, it will assist organization to relate reward system on the productivity of staff; employers would be assisted to adopt the most appropriate reward scheme that w ill engender belter performance of staff in this era of democracy. It is also expected that by this efforts every individual performance will be rewarded according to his/her environment. In other words rewards should be glanced towards achieving productivity if the objectives of the organization are to be achieved.

A situation whereby employees are given rewards irrespective of the performance breed frustration and lack of commitment on the part of employees. This study shall endeavor to establish fully rewards shall be based on individual performance and achievement rather than any other factions.

1.8       SCOPE OF THE STUDY

Organizational rewards and its impact on the productivity of the staff is an extensive topic whose study is all embracing and might require an extensive research. Therefore, the researcher has decided to limit the study to the impact of organizational reward on the productivity of staff with emphasis on four rewards factors and its effect on NNPC Imo state branches.

These are the cooperation headquarters in Owerri. Imo State.

1.9       LIMITATION OF I Hi: STUDY

Despite the limited scope of the research, it was further limited with certain constraints which are as follows;

?          TIME: A research of this type, a lot of time Is required but given short time is allowed for the study, it was not possible to do all that was required and necessary.

?          FINANCE: Due to the harsh economic conditions or economic crunch enough finance was not readily available to do all that was required and necessary.

?          DISTANCE: The long distance between my school and Owerri was one of the major constraint. Moreover, there was a problem of shattering from one location of the cooperation to the other.

?          INFORMATION CONSTRAINTS: Getting the needed information was not easy. This is probably because of the stingy manners managers” handles information especially those bordering the life of the organization.

1.10     DEFINITION OF TERMS

?          COMMERCIALIZATION: This means the selling of the services of government owned corporation at a competitive price.

?          CORPORATION: This is a group of people having authority to operate as a single unit with a separate existence, example for business purpose.

?          EMPLOYEE: A person who work for somebody or a company in return for wages.

?          Organization Hierarchy: It means the authority How in the organization. It is the level of authority that exists in the organization.

?          REWARDS: A thing that is given or rewarded in return of doing something good and acceptable etc.