This research assessed the role of reward management in organizational performance with special reference to University of Nigeria Nsukka in Enugu State. The research tried to examine the role of reward management in enhancing organizational performance of University of Nigeria Nsukka and to formulate remedies as to how to enhance its effectiveness and efficiency in its management and administration. To achieve the above research objective, four research hypotheses have been advanced to include that there is no positive relationship between monetary rewards and employees performance among staff in University of Nigeria Nsukka; that there is no significant relationship between non-monetary reward and employee’s performance among staff in University of Nigeria Nsukka; that there is no positive relationship between reward and employee motivation among staff in University of Nigeria Nsukka and that there is no positive relationship between total reward system and job satisfaction of the staff in University of Nigeria Nsukka. The study uses the survey research method. The population of the study constitutes of academic and administrative staff of University of Nigeria Nsukka. The findings of the study include that; there is a significant relationship between monetary rewards and employees performance among University of Nigeria Nsukka Staff; that there is a significant relationship between non-monetary rewards and employees performance among staff in University of Nigeria Nsukka. Based on the findings of this project, it was concluded that; both monetary and non-monetary rewards have significant effects to the staff performance in University of Nigeria Nsukka. Further, that there is a significant relationship between reward system and job satisfaction of employee. It was recommended that a more comprehensive study can be extended to all private and public tertiary educational institutions to ensure that better generalizable findings can be achieved.
1.1 BACKGROUND OF THE STUDY
Employees are the most valuable asset to an organization and they play an important role in preserving the successful image of organization. Employee performance is the main factor in ensuring that the organization is run smoothly and successfully. Good employee performance will improve the organization performance. To maintain a good employee performance, a suitable performance management is needed. According to Hermann (2007:42), a performance management is defined as a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
Performance management requires all managers to ensure that all of their employee activities and outputs are congruent with the organization’s goal and therefore help the organization to gain a competitive advantage (Aguinis, 2009:22). Organization that have a good performance management will have many advantages such as increased self-esteem, clear mind regarding their organizational goals, increased motivational and others (Allen and Kilmann, 2001:110).
Managing employees’ reward appropriately is an important factor as a return for their contributions or performance to organization. According to Adam Equity Theory (1963), less reward may result to the decreasing of employees’ performance such as high number of absenteeism, as well as lack of interest in doing task that is not included in their job description. In other word calculative in whatever task given to them, not focus on their job which is also the decreasing resulted in job quality. The theory also propagate that the reduction in employees’ performance could happen whenever they felt that their contributions were not fairly rewarded. In other words, rewards can influence employees’ performance.
Employer or organization should reward the positive performance. Reward will motivate the employees and when the employee motivation increased, it’s also will increase the employee performance. In addition, employee performance also can be enhanced through a continuous and interactive process to help departments and teams achieve business goals and to help employees to improve their performance. Increased in employees performances will increase the organization performance.