Dysfunctional of Employees Reward System in Organizational Performance in Abia State, Nigeria

Abstract

The study was based on motivational theory of equity which sees performance as consequence of fair treatment of employees. We adopted to address the study problems using a descriptive survey design. The population of the study comprises of 200 senior managers, with a sample size 200 was drawn by the use of Taro Yamane's formula of which 186 copies of questionnaire was duly completed and returned and this represents 93% response rate. In line with the study objectives, four hypotheses were formulated and tested using Chi- square analysis through the use of the 16 version of SPSS. The findings revealed significant individual and joint effect of financial and non-financial rewards on performance using analysis with the aid of a multiple regression model and relevant techniques such as analysis of variance (ANOVA) and the student t-test. The study discovered that non-financial reward in comparison to financial reward significantly impacted more on performance. The study recommended that it is high time government knew what propels its workforce to improved productivity. In particular, in-service training, merit-based promotion, recognition, meritorious service awards, recommendation and other forms on non-financial reward were advocated while not forgetting performance-based-incentives.