ABSTRACT
This research dealt with the influence of rewards on workers performance in an organization. Employers are continually challenged to develop pay policies and procedures that will enable them to attract, motivate, retain and satisfy their employees. Subjects for this study consisted of one hundred workers of Central Bank of Nigeria, Abuja. The data for the study were gathered through the administration of a self-designed questionnaire. The data collected were subjected to appropriate statistical analysis using Pearson Product Moment Correlation Coefficient, and all the findings were tested at 0.05 level of significance.  The result obtained from the analysis showed that there existed relationship between extrinsic rewards and workers performance while no     relationship existed between intrinsic rewards and workers performance. On the basis of these  findings,  implications  of the findings  for future  study  were highlighted.
CHAPTER ONE INTRODUCTION
As a result of the powerful force of technology, which is driving the world towards a converging commonality, we have seen various changes in the world’s economic expansion. One of the changes that brings the most challenge not only to the international firm but also the domestic one is the emergence of a global market. In order to be successful in the long term, managing people is one of the most crucial tools for a global business in today’s competitive world. Specifically, for an international organization, human resource becomes a more and more important factor to reach its goal. The word” Human Resource Management (HRM)” has been used widely and increasingly in recent decades as a vital approach to create a successful organization, however the more worldwide the firm, the greater the complexity of the international HR requirement. In order to maximize the benefit from the performance of the employees, the employer must develop strategies to manage and improve their human resources so that they can perform their best. To create an effective strategy, the employer needs to understand that there are
many factors that affect the employee’s behavior within the organization. One of the key factors that has an impact on the performance of an individual in the organization is their rewards. Thus, this report will focus on the rewards of the individual within a contemporary organization. This report will enable the employer to answer why it is their responsibility to reward the employees and explain how to improve and maximize the efficiency of their staff’s performance.
1.1 BACKGROUND OF STUDY
Many organization are suffering from lack of good remuneration which is one of the policies an organization can adopt to increase their workers performance and thereby increase the organizations productivity. This could create problems in terms of affecting the growth of the organization. With the present global economic trend, most employers of labour have realized the fact that for their organizations to compete favourably, the performance of their employees goes a long way in determining the success of the organization. The performance of employees in any organization is
vital not only for the growth of the organization but also for the growth of individual employee.
1.2 STATEMENT OF PROBLEM
Attempts had been made to solve the problem facing the organizations in terms of how an employer can reward his employees to motivate them within the context of the roles they perform. The problem of satisfying employee need in an organization as in other institution in an organization as in other institution in the country usually gives rises to non-cooperative attitude of the cooker’s in organization setting. Some of the complains are that of lack of fringe benefits, Trust and acceptance sense of belonging feed back, recognition, promotion, security, transportation etc. which gives rise to reluctantness of workers, nonchalant attitude of workers, lateness to work, absentees to work and strike action.
The statement of problem include the following:-
Can workers be reworded through award for efficient performance?
Can rewarding workers scheme such as recognition and promotion be capable of motivating workers.
Can sense of belonging be a means of encouraging the workers.
If workers are highly rewarded are their possibilities for highly productivity?
1.3 OBJECTIVE OF STUDY
The purpose for this project is to give the proper information about the influence of rewards in workers performances as an essential ingredient for enhanced productivity. An employer is so much concerned with what it can get out of employees in terms of best job performance and profit ability. As a result, little attention is paid to reward the employee to motivate him in order to avoid dissatisfaction. An employer cannot do his job without knowing how to reward his workers in other to motivate them.
To review theories of reward
To examine the effect of reward in an organization
To know what you will use to reward the workers, how and when to reward them.
To find out the various benefit and scheme that motivate the workers and to know the effect of these benefit and science.
To make recommendation so that management can make use of them to motivate workers for the achievement of organizational goals etc.
1.4 RESEARCH HYPOTHESIS
To provide direction to this study, the following hypotheses were formulated and tested.
Hypothesis
(1) There is a significant relationship between extrinsic rewards and workers performance.
(2) There exists a significant relationship between intrinsic rewards and workers performance
1.5 SIGNIFICANCE OF STUDY
The study is primary designed to ascertain and assess the influence of rewards on workers performance in an organization.
The research will be useful for graduates and undergraduates in the university especially in the faculty of management and other related fields and off curse, managers since the information is based on ways of making workers more beneficial to the organizations or firms where the work.
It will also help in identifying other ways, by which workers can be motivated apart from salaries and wages.
1.6 SCOPE OF STUDY
This project tends to research into the various benefits and schemes provided to workers in addition to balances and wages in any organization.
This will help us to know the effects of these benefit whether they serve as rewarding tool motivate the workers because it is obvious that people have different needs and wants and would want these needs to be satisfied at different time.
1.7 LIMITATION OF STUDY
This research work will be limited to effectiveness and importance of reward and how the staff are motivated to influence their working performance for good in central bank of Nigeria (CBN ) Abuja.
1.8 HISTORICAL BACKGROUND OF CENTRAL BANK OF NIGERIA (CBN)
The period 1892-1952, there was an enquiry by the then colonial administration to investigate banking practice in Nigeria. The G.D. patron report which emanated from the enquiry was the basis for the First Banking ordinance of 1952, the ordinance was designed to ensure orderly commercial banking and to prevent the establishment of unviable banks. A draft registration for the establishment of Central Bank of Nigeria was presented to the house of representatives in March, 1958. The act was fully implemented on 1st July 1959 when the Central Bank of Nigeria came into full operations.
The Central Bank Act 1958 (as amended) and the Banking Decree
1969 (as amended) constituted the legal framework within which the
CBN operates and regulates banks. The wide range of economic liberalization and deregulation measures following the adoption in
1986, of a Structural Adjustment Programme (SAP) resulted in the emergence of more financial institutions (BOFI) Decrees 24 and 25 of 1991, which repealed the Banking Decree 1969 and all its amendments, were, therefore enacted to strengthen and extend the powers of CBN to cover the New Institutions in order to enhance the effectiveness of monetary policy, regulation and supervision of banks as well as non banking financial institutions. Unfortunately in
1997, the Federal Government of Nigeria enacted the CBN (Amendment Decree No, 3 and BOFI (Amended) Decree No. 4 in
1997 to remove completely the limited autonomy which the Bank enjoyed since 1991.
The 1997 amendments brought the CBN back under the Supervision of the ministry of finance. The Decree made CBN directly responsible to the ministry of finance with respect to supervision and control of band and other financial institutions, while extending the supervisory pole of the bank to other Specialized Banks and financial institutions. The amendment placed enormous powers on
the ministry of finance while leaving the CBN with a subjugated role in the monitoring of the Bank to exercise discretionary powers.
The CBN (Amendment) Decree No 37 of 1998 which replaced the CBN Decree No. 3 of 1997. The Decree provided a measure of operational autonomy for the CBN to carry out its traditional functions and enhances its versatility.
The current legal framework within which the CBN operates is the CBN Act of 1991 and all its amendments. The Act provide that the CBN shall be a fully autonomous body in the discharge of its functions under the Act and the Banks and other financial institutions Act with the objectives of promoting stability and continuity in economic management. In line with this, the act widened the objects of the CBN to include the objects of the CBN to include ensuring monetary and price stability as well as rendering economic advice to the federal Government.
The Money and Capital Markets
The CBN has also taken the responsibility for nurturing the money and capital markets. In furtherance of this, the CBN introduced
treasury bills in 1960, treasury certificate in 1968, and facilitated the establishment of Lagos stock Exchange in 1961 and the capital issue committee now know as the securities and exchange committee in the early 1970S. In Central Bank of Nigeria the following monetary strategies have been adopted to motivate the workers.
SALARY / WAGE STRUCTURES
The organization pays its workers salaries with the range of its counterparts in other organizations.
This includes the following, house ownership scheme, pension perceclent fund, holiday pay, medical care, life / have insurance, Lunch/ occasional meals, gravity, annual bonus, out of station allowance, entertainment allowance, examination award/ scholarship scheme, tuition fees, furniture advance, car advance loan, burial / financial assistance, annual increment etc.
1.9 DEFINITION OF TERMS
A Rewards: Is the monetary and non-monetary return provide to employers in exchange for their times, talents, efforts and results. It involves the deliberate integration of five key elements that
effectively attract, motivate and retain the talent required to achieve desired business results.
The five key elements are:
Compensation
Benefits
Work – life
Performance and Recognition
Development and career opportunities.
Total rewards strategy is the art of combining these five elements into tailored packages designed to achieve optimal motivation for a total rewards strategy to be successful; employees must perceived monetary and non-monetary rewards as valuables.
COMPENSATION
Pay provided by an employer to an employee for services rendered (i.e. time effort and skill). Compensation comprises four care elements:
i. Fixed pay: Also know as base “base pay”. It is nondiscretionary compensation that does not vary according to
performance or result achieved. It usually is determined by the organization’s pay philosophy & structure.
ii. Variable pay: Also known as “pay at risk”. It changes directly with the level of performance or results achieved. It is a one – time payment that must be re-established and re-earned each performance period.
iii. Short term incentive pay: A form of variable pay. It is designed to focus and reward performance over a period of one year or less.
iv. Long-term incentive pay: A form of variable pay. It is designed to focus and reward performance over a period longer them one year typical forms include struck options, restricted stock, performance, shares, performance units and cash.
Benefits
Programs an employer uses to supplement the cash compensation that employees receive.
These programs are designed to protect the employee and his or her family form financial risks and can be categorical into the following three elements.
Social Insurance
i. Unemployment
ii. Workers compensation iii. Social Security
iv. Disability (Occupation)
Group Insurance
i. Medical ii. Dental iii. Vision
iv. Prescription drug v. Life insurance
vi. AD & D insurance vii. Disability
viii. Retirement ix. Savings
x. Pay for time not worked: These programs are designed to protect the employees income flow when not activity engaged at work.
i. At work (breaks, clean-up time, uniform changing time)
ii. Away from work (vacation, company holidays personal days etc.
B Work – Life
A specific set of organizational practices, polices, programs, plus a philosophy, which actively supports efforts to help employees achieve success at both work and home. These are seven major categories of organizational support for work – life effectiveness in the workplace. These categories encompass compensation, benefits and other HR programs. In combination, they address the key intersections of the workers, his or her family, the community and the workplace. The seven major categories are:
i. Work place flexibility
ii. Paid and unpaid time off iii. Health and well being
iv. Caring for dependents
v. Financial Support
vi. Community Involvement
vii. Management Involvement / Cultural Change Intervention.
C. PERFORMANCE
A key component of organizational success, alignment of organizational, team and individual performance is assessed in order to understand what was accomplished and how it was accomplished. Performance involves the alignment of organizational, team and individual effort toward the achievement of business goals and organization success performance planning.
Is a process whereby expectations are established linking individual with team and organizational goals. Care is taken to ensure goals at all levels are aligned and there is clear line of sight from performance expectations of individual employees all the way up to organization organizational objectives and strategies set at the highest level of the organization.
Performance
Is the manner of demonstrating a skill or capacity.
Performance feedback
Communicates how well people do a job or task compared to expectations, performance standards and goals. Performance feedback can motivate employees to improve performance.
D Recognition
Acknowledge or goes special attention to employee actions, efforts, behaviour or performance. It meets an intrinsic psychological needs for application for one’s efforts and can support business strategy by reinforcing certain behaviors (e.g. extraordinary accomplishments) that contribute organizational success. Whether formal or informal, recognition programs acknowledge. Employee contributions immediately after the fact. Usually without predetermined goals or performance levels that the employee is expected to achieve. Awards can be cash or non-cash (e.g., verbal recognition, trophies, certificates, plagues, dinners tickets etc).
The value of recognition plans are:-
i. They reinforce the value of performance improvement.
ii. Faster continued improvement, although it is not guaranteed. iii. They formulize the process of showing appreciation.
iv. They provide positive and immediate feedback
v. They faster communication of valued behaviour and activities.
E. Development
A set of learning experiences designed to enhance employees applied skills and competencies; development engages employees to perform better and leaders to advance their organization strategies.
F. Career Opportunities
A plan for an employee to advance their own career goals and may include advancement into a more responsible position in an organization. The organization supports career opportunities internally so that talented employees are deployed in positions that enable them to deliver their greatest value to their organization.
Development and Career opportunities include the following:- i. Tuition assistance
ii. Corporate Universities iii. New technology training
iv. Attendance at outside seminars, conferences vital education etc.
v. Self – development tools and techniques.
vi. On the job learning; rotational assignment at a progressively higher level.
vii. Sabbaticals with the express purpose of acquiring specific skills, knowledge or experiences.
2) Coaching / Mentoring
i. Leadership training
ii. Access to experts information networks – association memberships, attendance and / or presentation at conferences outside of one’s area of expertise.
iii. Exposure to resident exports
iv. Formal or informal mentoring programs; in or outside one’s own organization.
3. Advancement
i. Internships
ii. Apprenticeship with experts.
iii. Overseas assignment iv. Internal Job Postings
v. Career ladders and pathways vi. Succession planning
vii. Providing defined and respectable “on and off ramps”
throughout the career life cycle.
This material content is developed to serve as a GUIDE for students to conduct academic research
INFLUENCE OF REWARDS ON WORKERS PERFORMANCE A STUDY OF CENTRAL BANK OF NIGERIA ABUJA
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