The impact of compensation and reward system on the performance of an organization

  • Ms Word Format
  • 65 Pages
  • ₦3000
  • 1-5 Chapters

The impact of compensation and reward system on the performance of an organization




Employee motivation is one of the most essential parts in a company’s development and success. In order to maximize the overall performance of the company it is vital for an employer to understand what motivates the employees and how to increase their job satisfaction. It might however be challenging for a company to find out what motivates its employees, especially because different people are motivated by different things.

A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy. However, it might be challenging to find the right way to combine the company’s integrated policies and practices together with the employee’s contribution, skill and competence.

Nigeria is a nation that is blessed with abundant human and material resources, in spite of these; it is surprising to observe that Nigeria is still rated among the less developed countries in the world. This may be attributed to the fact that the human and material resources are poorly harnessed and utilized. One of the poor utilization of human and material resources in Nigeria is the Nigeria Attitude to work which is highly attributed to motivation.


The problem here is that most organizations have gone under because their organizational reward systems do not favour employee and thereby do not motivate them towards putting their best into jobs. There are many discrepancies that occur in organizations due to an inappropriate reward system. Also as reward system is in the field of human resource, it is an opportunity to increase my knowledge in this complex field. One of the problems that can be identified in the organization is motivation. This has become a serious concern since we are dealing with a fast evolving environment. The work force has adapted to be flexible with new working hours, work with new tools and even being multi skilled, both technical and interpersonal. Moreover work force flexibility is requiring employees to have the ability to adapt with relatively management supervision. The present working environment presents stressful factors where the workforce finds itself more and more pushed to its limits.

More over there is the problem of absenteeism. Organization without good reward system often finds itself in conditions of high rate of absenteeism. This weights heavy on the balance of the organization since it is not operating at full capacity. In the end, the origination will have no option but to take action against it own employees. This will defiantly cause more trouble and will further affect the proper running of the organization.

Another problem is low performance of the employees. Low reward system can lead to low performance of employees in an organization.

Because reward boost the morale of the employees in an organization. Much concern has been put to the rewarding of employees since performance appraisal is carried out. There has always been this concern as rightly rewarding employee has a direct impact on the performance, productivity and satisfaction of the employee’s performance has become a corner stone for rewarding.


The main objective is to identify the reward system that the organization is using for its employees. Hence the following will be considered

  1. To know if the reward system motivates the employees to work more


  1. To know whether the reward system leads to employee satisfaction.
  2. To know if the reward system is retaining employees.
  3. If the reward system is acting as a driving force to encourage the employee to perform better
  4. shed light on whether the reward management system reward

people for the value that they create

  1. To know the outcome of efficiency and performance of the employee with reward strategies.
  2. To know the workers perception of the reward system at the organization
  3. To know the problem associated with the reward system of workers in the organization


  1. What motivates the employees of Federal Civil Service Commission Abuja?
  2. Which reward system does the employees perceive the most motivating in Federal Civil Service Commission Abuja?
  3. How can the reward systems be further developed in Federal Civil Service Commission Abuja?
  4. Does an organization reward system have impact on workers productivity in Federal Civil Service Commission Abuja?
  5. Does an organization reward system improve the impact on the cost of production?


The following hypothesis will be tested

  1. HO: A satisfactory reward system will have no impact on workers productivity.

Hi: A satisfactory reward system will have some impact on workers productivity

  1. Ho: An organization reward system has no significant impact on the cost of production

Hi: An organization reward system has significant impact on the cost of production

  • Ho: There is no significant between the attitude of motivated employee and a non motivated employee conflict management
  1. Hi: There is a significant between the attitude of motivated employee and a non motivated employee conflict management


Today an organizations result is highly dependent on the employees work motivation. It is therefore important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right combination of immaterial and material rewards can boost up the employees’ work motivation and enhance their commitment to the company.

This study will be of great benefit to the organization understudy and other organizations in general

The aim of this study is to investigate and analyze how well the current reward system of Federal Civil Service Commission ,Abuja helps generate employee motivation.

More specifically it aims to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. . This research has the following significances

  1. This study will help organizations improve the level of efficiency of employee i.e the reduction of cost of operation and increase productivity
  2. It will help to build friendly relationship in the organization i.e industrial interest and dispute in employees will reduce
  3. The study will help increase employee retention and performance

i.e it will help reduce employee turn over

  1. This study will help provide a clear line of sight to a career path that will take the employee to the next level.
  2. This study will help put human resources into action.
  3. It will serve as a literature to students in the tertiary institutions


Almost all the organizations that are involved in the activities of labour have a system of reward designed to motivate them towards increased productivity. This research work is a case study of Federal Civil Service Commission Abuja. This study will be focused on how organizational reward system affects works attitude to work, the theoretical part of this study introduces different theories of motivation and reward system. This study will look at the role of attitude of workers towards increased productivity, and also investigate the relationship between the levels of job satisfaction or workers performance.

The research conducted focuses only on the employees of Federal Civil Service Commission Abuja, which means that the sample-size is limited. Furthermore, limitations were set on the theories used to analyze the level of motivation and satisfaction with the reward system. The author used Maslow’s hierarchy of needs, the goal setting theory and the total reward system to analyze the results.

The questionnaire was filled in anonymously and was therefore limited to be analyzed on general and not individual bases.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like