ORGANIZATION REWARD SYSTEMS AND STAFF MOTIVATION (A Survey of Zenith Bank of Nigeria Plc, Auchi Branch)



The study examined organization reward systems and staff motivation in Nigeria. Every organization strives to be among the best in life. Being among the best requires a whole lot of effort from the organizations perspectives one of such effort is regarded as motivational organization reward. Rewards serve as motivational tools aimed at bringing out the best in an employee general performance. The study therefore seeks to uncover the basic relationship between the rewards and organization receives from effectively rewarding the employees as well as negative effect of such action. In order to achieve the objectives of the study, the researcher employed simple percentages and chi-square statistical techniques to effectively analyze the questionnaires administered. Based on the analysis, it was found that good reward system enhances better performances, job satisfaction and increased productivity. We therefore recommended that management should give considerable amount of attention to reward as this is one way, if not the best way for improving working conditions and enhancing performance.




Title page                                                                 i

Certification                                                             ii

Dedication                                                               iii

Acknowledgement                                                    iv

List of tables                                                            v

Abstracts                                                                 vi


1.1      Background of the study                                  1

1.2      Statement of Research problems                     3

1.3      Objective of the Study                                      4

1.4      Research questions                                          5

1.5      Statement of Hypothesis                                  5

1.6      Scope of the Study                                           6

1.7      Significant of the Study                                   6

1.8      Limitation of the study                                     8

1.9      Operational Definition of terms                                9


2.0   Introduction                                                     10

2.1   Reward in organization                                    14

2.1.1        Types of Reward                                               17

2.2   Effect of Reward system on organization

performance                                                     19

2.3   Motivational Theories                                      22

2.3.1        AbrahammOSLW Hierarchy of Need Theory (1954) 23

2.3.2        Clayton Aidedrfrs’s theory                                        29

2.3.3        Frederick Herzberg Motivation Hygiene                    31

2.3.4        Victor Vroom Expectancy Theory                             36

2.4   Implication for manager’s                                                37

2.5   Implication for organization                                     38

2.6   Summary of the Chapter                                          38


3.0   Introduction                                                             39

3.1   Research Design                                                      39

3.2   Population of the study                                            39

3.3   Sample and sampling Techniques                           40

3.4   Description of Data Gathering Instruments             41

3.5   Method of Data Analysis                                                  42


4.1   Introduction                                                             43

4.2   Data Presentation and Interpretation                       48

4.3   Data Analysis and Hypothesis(es) Testing                        52

4.4   Discussion of Findings                                            58


5.1   Introduction                                                             60

5.2   Summary of Findings                                              60

5.3   Conclusion                                                              61

5.4   Recommendation                                                     61

        References                                                               63

        Appendix                                                                 65



Table 4.1 Question 1: Age distribution of Respondents   43

Table 4.2 Question 2: Marital Status                                       44

Table 4.3 Question 3: Educational Qualification             44

Table 4.4 Question 4: Total Remuneration                              45

Table 4.5 Question 5: State your Present Position           46

Table 4.6 Question 6: Previous work experience              46

Table 4.7 Question 7(Previous capacity/position)            47

Table 4.8 Question 8: Sex (Gender differential)                        47

Table 4.9 Question 9: The impact of reward system on motivation of staff                                                                48

Table 4.10 Question 10: Consideration of the Impact of reward system                                                                           49

Table 4.11 Question 11: Reward that motivates their (staff) most?                                                                          50

Table 4.12 Question 12: The impact of consulting union representative before approving a reward system            50

Table 4.13 Question 13: Impact of regular promotion on job performance                                                                        51

Table 4.14 Question 14: Does reward system improve your performances towards achieving goal and objectives             52

Table 4.15 Question 15: In the data gathering instrument/questionnaires was used for the analysis 54

Table 4.16 Question 16: was used  for the analysis         55

Table 4.17 Question 17: was used for the analysis          57

Table 4.18 Question 18: Will be use for the analysis       58





The most complex being ever created by God is man and man has always been in need. In order to meet his needs, he sometime put forth some level of effort to meet his needs.

The inherent dislike of work among human beings have made this study of organization reward system and motivation an interesting one. Workers exhibits general laxity where managers use autocratic means to meet their target/goals. But today management has found the need to ascertain and accommodate the needs of human which constitute the entire workforce (Ojema, 2003).

The organization must ensure that its reward system is designed to motivated and maintain effective employees performance throughout the organization. Individual need different rewards and are motivated differently. These rewards lead to performance of job task, in other words people have varying attitude for work, it is therefore important that personnel experts be aware of how to synchromesh reward and motivation of staff in order to achieve best result. In conventional reward system, employee are paid on the basis of job performed and usually the personnel characteristics they bring to their job and their personal contribution to their job. Motivation is no doubt an important component of personnel management process. Essentially motivation occur when management of organization recognizes the need for taking appropriate care of the workers in order to maximize efficiency and effectiveness that could lead to increase profit machine for an enterprise. These rewards or incentives although varies from, one organization to another and they include financial and non financial rewards system.

Financial reward system consist on: wages and salary, lunch subsidy, transportation and housing allowance, pension  schemes, credit facility (soft loans) and profit sharing incentive while, non financial reward system consist of job security, medical  facility (NHIS0, Recognition, authority and responsibility and provision of ovation and holiday among other (Okoh, 2008). This is in view of the fact that an improved effectiveness and efficiency of an employee will automatically improve the organization image in the eye of the public. Hence motivation can go a long way in determining the overall success or failure of an organization.


Organizations haven the best intention to motivation their employees for higher performance and productivity. However, they have failed in this line as they most often rely on the increase  of salary and wages as a means of motivating workers. How ever money is by no means the only way to reward or to influence employees performance in an organization. it is important to note that an employee that is dissatisfied with his position or attitude of the management towards recognition of worth or performance will never be motivated by an increase in salary to perform. There is the problems  of not motivating for optimal performance in mix and bake flour mill, Nigeria limited, Warri Delta State. Most importantly the issue of incentive package has cause a lot of concern for employees. For instance, there is always complain from the employees that, result to the investigation of this various problems, which are, to investigate if reward system on workers have impact in the motivation of workers, to ascertain if management consult workers representative before putting any reward system because of it strong impact. To examine if regular promotion improve employees work performance, to determine if reward system that motivate employees influence the employees performance. Base on this identified problems much work have to be carried out to actually investigate the organization reward systems and staff motivation that necessitate the knowledge  gap for the research.


The specific objectives of this study are:

i.            To investigate increment on salary put on workers have impact on the motivation of workers.

ii.          To ascertain if management consult workers representative before putting any reward system because of it strong impact.

iii.        To examine if regular promotion improve employee work performance.

iv.         To determine if recognition reward system put on employees motivate or influence employees performance.


The following research question shall be provide answer to

i.            Does management consult workers representative before putting any reward system because of it strong impact?

ii.          Does increment n salary put on workers have impact on the motivation of workers

iii.        Does regular promotion improve employees work performance?

iv.          Does recognition reward system as a means of motivation improve employee performance?


Ho1   Management should not consult employees representatives before putting any reward system it has no impact.

Ha1   Management should consult employees representatives before putting any reward system because it has strong impact.

Ho2   Regular promotion does not improve employees work performance.

Ha2   Regular promotion improve employees work performance

Ho3   Increment on salary put on workers does not motivate employees work performance.

Ha3   Increment on salary put on workers motivates employees work performance.

Ho4   Recognition reward system put on workers does not motivate employee performance.

Ha4   Recognition reward system put on workers motivate workers performance.


This topic organization reward system and staff motivation is a very wide one but due to the vastness of the topic, it was restricted to Zenith Bank of Nigeria Plc, Auchi Branch. Another point is owing to time and cost related factors, however the focus is on reward system and staff motivation with particular reference to financial and non financial rewards of incentives.


The significance will be in many respects, some of which include:

(a)         The findings  of the study will help to know how best to reward hard working staff in an organization

(b)        It will assist the organization to relate rewards to the performance of their staff

(c)         It is also expected that by the effort, the individual employee performance will be rewarded according to achievement. In other words, rewards should be geared towards motivation in order to achieve the organizational goals and objectives.

(d)        The staff in particular, and the society at large must perceive the management effective reward strategy as being equitable reward as this is the hallmark of an effective management employee relationship


        The following are some of the limitation of the study

i.             The study, which  was descriptive in nature to examine staff motivation  in an organization since it wasn’t possible to sample all offices (branches) representing the entire organization due to limited financial constraints and time related factors a branch of the bank was therefore used as a case study

ii.          The speed of processing the study was affected due to the inability of the respondent to submit questionnaires at the appropriate time.

iii.        Relevant and adequate information that will support in this study were not fully released by the respondents as questionnaires design focused on relevant information and employees were scared of losing their jobs.   Some of them didn’t submit their questionnaires while others who submitted the questionnaires while others who submitted their questionnaires fill in the favor of the organization (Bank)

iv.         Finally, a sample of one (sample size) to be a true representation of Zenith Bank of Nigeria Plc which have network of branches in other states of the federation and employee strength of very a thousand, hence, the findings in the study cannot be validated safe to be conclusive.



REWARD: All forms of financial returns and tangible service and benefits employee receives as part of an employment relationship.

MOTIVATION: Is the drive, force, or effort that induces or propels a person to behave in a particular way.

ATTITUDE: This is a hypothetical degree of like or dislike for an item

SATISFACTION: A feeling of pleasure or contentment experienced because one has achieved a goal.

MANAGERS: They are people who take responsibility for controlling and utilizing the resources of the organization.

JOB EVALUATION: The process by which the relate values of jobs is determined and then linked to commensurate compensation.

STAFF APPRAISAL: Procedure which helps the collection, checking, sharing, giving and using of information collected from and about people at work for the purpose of adding to their performance at work.


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