Reward system is an important tool that management uses to channel employee’s motivation in desired ways such as better functionality and further improve company performance. The purpose of this study was to examine the impact of reward systems on organizational productivity in federal radio cooperation of Kaduna, Nigeria. The study was guided by four objectives. The study used descriptive research design which incorporated both quantitative and qualitative approaches. The study surveyed 65 employees from three federal radio cooperation, using self-administered questionnaire. It also interviewed selected employees. The data was analyzed with use of descriptive statistics (SPSS and excel) and data presented as frequency distribution tables and histograms. The findings of this study showed that the three federal radio cooperation of Kaduna offer both extrinsic (salary, bonus and promotion) and intrinsic (praise, recognition and genuine appreciation) rewards to their employees. However, the results found that employees were not satisfied with the current reward packages and salary level was viewed to be too low and did not reflect cost of living of Kaduna. The study further indicated the intrinsic (non financial) rewards were not satisfactory to employees.

1.1 Background to the Study
Reward being seen as a vital instrument in employee performance. A well rewarded employee feels that he/she is being valued by the company that he/she is working for. They are also encouraged to work harder and better if they are aware that their well-being is taken seriously by their employers, and that their career and self development are also being honed and taken care of by their company. Employees are the engine of organization vehicles while reward is the fuel. In the modern time management, no organization can achieve its stated objectives without commiserate rewards and fringe benefits for its employees (Martocchio, 2011).

The role of reward system in shaping the live of an organization cannot be overemphasized. Reward system has been described as the development, implementation, maintenance, communication and evaluation of compensation processes (Galanou, Georgakopolous, Sotiropoulous and Dimitris, 2010). Ordinarily, the management of people at work is an integral part of the management process, put differently managers need to understand the critical importance of people in their organizations so as to recognize that the human element and the organization are synonymous (Popoola and Ayeni, 2007). Therefore, it is imperative and morally worthwhile to have a sound reward system and fringe benefits in place.

Fringe benefit is defined as any form of compensation provided by the organization other than wages or salaries that is paid for in whole or in part by the employer. Employee benefits are also essential for the development of corporate industrial relations. Examples include retirement plans, child care, elder care, hospitalization programs, social security, vacation and paid holidays (Christoph, cited in Ju, Kong and Hussin, 2008).

Cascio (2003) asserted that because of the importance that rewards holds on people's lifestyle and self esteem, individuals are very concerned about what they are paid. While on the other hands organizations are concerned with what they pay because it motivates important decisions of employees about organizational productivity and overall corporate performance.

The happier people are with their jobs, the more satisfied they are said to be (Odunlade, 2012). The perception of being paid what one is worth predicts organizational productivity. Organizational productivity is perceived as an individual’s attitude and behavior towards aspects of his own job. Organizational productivity is an affective or emotional response toward various facets and outcomes of one’s job; meaning that personal satisfaction in relation to a job is not unitary, as a person may be satisfied with one aspect of his or her job and may be dissatisfied with the rest (Bozeman and Gaughan, 2011).

Employees will demonstrate pleasurable positive attitudes when they are satisfied with the corporate reward system and fringe benefits which the job brings. Thus, good reward system and fringe benefits will increase the organizational productivity which will invariably affect corporate productivity and performance (Millan et al, 2011). But, whether reward system and fringe benefits negatively or positively determines organizational productivity in Nigeria remains open to empirical studies. Hence, this study will investigate the impact of reward system and fringe benefits on organizational productivity with a special reference to Radio cooperation.

1.2 Statement of the Problem
Owing to the high level of unemployment that has plagued the labour market in Nigeria, many employers of labour have taken advantage of this menace by unilaterally fixing salaries and wages without the participation of their employees. Empirical researches also indicate that labour is largely underpriced since the numbers of job seekers are more than the number of available jobs. According to the National Manpower Board, (2009) the Nigeria labour market can barely absorb 10% of the over 3.8 million graduates turned out by the Nigeria educational system on a yearly basis.

Sometimes, employers prove very difficult to negotiate with. While the employee wants the highest and the best package, the employer would like to minimize cost as much as possible for profit maximization. Bad and depressed economic condition in Nigeria makes it the more difficult to fully implement a good reward and fringe benefits system.

Many of the studies on the dynamics of reward system, fringe benefits and organizational productivity were done outside Nigeria. These studies particularly focus on workers in the communication industry. In Nigeria, most of the available studies such as Odunlade (2012) and Aninkan (2022) were too brief and lacking depths. Moreover, these researches were also theoretical studies whose findings were subjectively based on researchers’ personal opinions. It is noted that the past studies did not give adequate attention to reward system and fringe benefits, as well as highlighting plausible strategy that can stimulate employee organizational productivity in Nigeria. It is against this backdrop that this study seeks to fill in the gap in knowledge by critically examining the impact of reward system and fringe benefits on organizational productivity with a special reference to Radio cooperation.

1.4 Objectives of the Study
1.4.1 General Objective
The overall objective of the study is to assess the effect of reward systems and fringe benefits on the organizational productivity of federal radio cooperation of Kaduna, Nigeria.

1.4.2 Specific Objectives
(i) To determine the reward systems currently used in federal radio cooperation in Kaduna

(ii) To determine employees view of reward system used by federal radio cooperation of Kaduna

(iii) To assess the effect of fringe benefits (salary, bonus and promotion) on organizational productivity.

(iv) To assess the effect of intrinsic Rewards (Praise and recognition) on organizational productivity.

1.5 Research Questions
(i) What are reward systems currently used in radio cooperation of Kaduna city?

(ii) What is the view of employees on reward system used by radio cooperation of Kaduna?

(iii) What is the effect of fringe benefits (Remuneration, bonus, salary and promotion) on organizational productivity?

(iv) What are the effect of Intrinsic Rewards (praise and recognition) on organizational productivity?

1.6 Research Hypotheses
The following are the research hypotheses:

H1: There is no significant impact of fringe benefits on organizational productivity.

H2: There is no significant impact of Intrinsic Rewards on organizational productivity.

1.7 Significance of the Study
In view of the study objectives, findings of this study will have some practical relevance. First, it will provide a deeper understanding of the appropriate reward systems that required to be adopted by radio cooperation to influence employees work performance.

Second, the findings of the study will help the planners of Human Resource rewarding system on how to implement appropriate reward strategies within the organisation to enhance work performance. Third, tome of this study will help radio cooperation management to reflect more on the purpose and benefits of rewarding employees in line with work performance. Finally, the findings of this research will add to the body of knowledge in the field of reward systems in private sector, especially commercials radios on their suitability and adequacy of reward packages to be introduced to lift employees’ performance.

1.8 Scope and Delimitation of the Study
This research was conducted of Kaduna and specifically focused on impact of reward system work performance of employees in three federal radio cooperation. It was also limited to employees who have been working in the radio for at least 12 months and hence have experience reward system in their radios. These radios were selected because they are near to researcher and able to easily access the required information.

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Item Type: Project Material  |  Size: 56 pages  |  Chapters: 1-5
Format: MS Word  |  Delivery: Within 30Mins.


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