THE EFFECT OF REWARD ON EMPLOYEE PRODUCTIVITY: A CASE STUDY OF A.B.U. DEMONSTRATION SECONDARY SCHOOL ZARIA

THE EFFECT OF REWARD ON EMPLOYEE PRODUCTIVITY: A CASE STUDY OF A.B.U. DEMONSTRATION SECONDARY SCHOOL ZARIA

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ABSTRACT

This research work titled “Effect of Reward on Employee Productivity: A case Study of A.B.U. Demonstration Secondary School Zaria, focused on the problems associated with lack of effective reward system in Demonstration Secondary School A.B.U. Zaria. These are lack of uniformity in the reward system of staff, no uniformity in the exhibition of skills by the teachers due to lack of effective reward system and lack of uniformity in financial reward system. Therefore, the study is aimed at evaluating the effects of financial reward as a motivating factor for higher productivity. It is also aimed at finding out the role of financial reward in attracting and retaining workers in an organization. The study employed the following hypotheses to aid the research.

-               That Productivity in A.B.U. Demonstration Secondary School is low because there is lack of Uniformity in reward system of staff

-               That there is no uniformity in the exhibition of skills by the teachers due to lack of effective reward system. 

-               That lack of uniformity in financial/reward system makes teachers task more ineffective.

 For a sound data analysis, questionnaire administration was adopted for data collection, through which (25) questions were administered on (170) population samples. The results from the data collected show that: two of the three hypotheses were accepted while the third hypothesis was not accepted. That is, on the issue of lack of uniformity in reward system of the school in hypothesis one, 65.2% of the respondents were of the view that lack of uniformity in reward system makes productivity low. The second hypothesis, which is on the issue of lack of uniformity in the exhibition of skill by teachers as a result of ineffective reward system. The result of third hypothesis shows that lack of uniformity in financial reward system does not make teachers task more ineffective. In relation to the above findings, the research study recommends that: management should see to the general welfare of workers as an important factor to be considered in trying to motivate them to work harder, employee should be encouraged to see themselves as an integral part of the organization, where possible, they should take part in decision making where such decisions  affects them, employee who are due for promotion should be considered, there should be uniformity in reward system of the school, part-time teachers who have spent up to five years and above should have their appointment made permanent, management should be consistent with policies  and should apply some policies to categories of staff irrespective of who is involved

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

The place and role of management in enhancing and

managing productivity is crucial. It is through this serious effort of the management that one can ensure that productivity efforts are in tune with the overall objective of Demonstration Secondary School1.

For many years now, poor reward techniques are becoming more and more complex and continually presenting fascinating problems. It has been of great concern to both employers and employees. The employers, on one end of the pole are complaining of poor performance due to worker’s attitude to work. While on the other end are workers (Teachers) complaining of lack of incentives in their systems, that labour is not adequately rewarded. In other words, there has been some dissatisfaction with the operation of wage incentive plans. Teachers are not committed to their job.  For example, 2005 WAEC result of Therbow Secondary School, Zaria was 90% while that of Demonstration Secondary School was 80%. 

Therefore, in referring to Demonstration Secondary School Zaria, that money to the teacher is a motivator, which helps maintain certain factors like the pay (salary), job security and other motivational incentive, which would ginger teachers towards performing effectively; while the result of their performance would be an excellent result of his pupils during Exams (WAEC AND

NECO).Evidence shows that there is negative image for career of Teachers.

     Reward and Teachers satisfactions are neglected, which boils down to teachers’ dissatisfaction, which might lead to poor performance.

     In addition to direct cost of poor performances and absenteeism, indirect costs are incurred when money must be spent to recruit replacements and then train them. The fact that these problems exist suggest that it cannot be automatically assumed that teachers will come to work each day or remain in the school once they are employed or hired. The expected rewards associated with each choice motivate the Teacher on a particular day to leave school and seek employment elsewhere. Poor rewards system therefore does not only increase production cost (inform of replacing the right qualified teachers) due to absenteeism, but the Demonstration Secondary School equally spends some money replacing some employees that leave the organisation every now and then because their expectations are not met.

Some administrators worsen the situation. They feel that offering attractive pay to their teachers, means unnecessary waste of resources on the teachers and that it may be detrimental to the employer. Hence the success of the school depends on it’s teachers performance.

Ngu, agrees that dissatisfaction is the basic cause of workers frustration and the consequence poor performance.2

Since teachers are an integral part of the organisation, (Demonstration Secondary School) should endeavour to give its teachers opportunities for their interest to be represented within the secondary school for promotion, advancement, skill

development, security and satisfaction while at work.

According to Szilagy et al, a reward (internal or external) remains a major control mechanism available to mangers to influence the direction of behaviour and performance of both workers and its resources towards achieving organisational goals and objectives.3

The problem, which this study tries to address, is: are the Demonstration Secondary School Teachers really satisfied with their job or demoralized due to poor reward management techniques?

1.2     Statement of the Problem

Since labour is not adequately rewarded, in other words, there has been some dissatisfaction with the operation of wage incentive plans. For this reason, performance of works is low. Teachers are not committed to their job because lack of uniform payment, in terms of lack of uniform leaves grant, allowance, Housing and Examination allowances etc. It is therefore the believe of the researcher that the imbalances in the incentive provided by

Demonstration Secondary School has led to its low performance. This research seeks to find out whether it is true or not.

The situation of ABU Demonstration Secondary School is that, there are three categories of employee or teachers; some are fully employed staff (Tenure), some are contract staff while others are on part time. Part-time category of staff does not enjoy the benefit fully employed and contract staff enjoy. For example, fully employed and contract staff enjoy good basic salary, meal subsidy, housing, exam allowances, etc while those who are part-time, even the degree holders are deprived such allowances, but occasionally enjoy certain allowance like Examination allowances only when done. This situation does not encourage the best out of the parttime teachers towards effective performance to be achieved by

Demonstration Secondary School. 

1.3      Objective of the Study

The objective of the study is as follows:

(1). To find out the extent to which there is lack of uniform pay in ABU Demonstration Secondary School.

                (2).           To ascertain whether leave grant are paid uniformly to all

staff.

                (3).     To determine whether housing allowances are paid uniformly

to all affecting staff.

(4). To establish whether all the reward incentive provided by school are being enjoyed by all staff.

                (5).                     To recommend better strategies for rewarding ABU

Demonstration Secondary School Staff.

1.4 Significance of the Study

The significance of a research of this nature is in its ability to further our knowledge on the forces that shapes our socioeconomic environment, just as Demonstration Secondary School ABU, Zaria.

This study helps in reviewing the reward management of other authors. It can be used as reference information by the general public as well as authority of ABU Demonstration Secondary School in order to effectively normalize its reward management towards achieving organisational set objectives.

This research is significant in the sense that it will serve as a major research reference material for future researchers in the area of reward management.

1.5 Scope And Limitation Of The Study

In conducting a research of this nature, there is always, the need to limit the scope to a particular place and period in order to arrive at a definite result. Therefore, the scope of this study is restricted to ABU Demonstration Secondary School, ABU Zaria. 

It is generally noted and seemingly the practice that financial incentive are the most desirable and inviting factor for any teaching profession, and that most teaching schools or institutions elicit workers cooperation, dedication, industriousness and indeed high level performance expectation. However, the extent to which the ABU Demonstration Secondary School effectively manages its reward system and indeed, the effect on employee’s performance is not discernible. It cannot be certified that increase in financial reward leads to increase in employees (Teachers) productivity, nor can it be assured that for every successive increase in financial rewards, there is enhanced level of productivity. In the long run, it is assumed that productivity may fall as the motivating factor ceases to motivate for higher performance. 

1.6 Hypotheses Tested

In this study, validity of the following hypothesis will be tested.

(1). That productivity in A.B.U. Demonstration Secondary School is low because there is lack of uniformity in the staff reward system.

(2). That there is no uniformity in the exhibition of skills by the teachers due to lack of effective reward system.

(3). That because there is no uniformity in financial reward system makes teachers task more ineffective.  

1.7 Methodology

The method of research used in any given research project depends largely on the subject matter and the problem to be investigated. Ordinarily, various forms of research exist, but however, in consideration of our subject matter, emphasis is placed on primary and secondary source of data.

Primary Data: In this research, the primary data is collected from the field, that is, in Demonstration Secondary School ABU Zaria. Information in form of Data are equally collected from the employees or Teachers of the school. It is primary because the researcher collects this first-hand information which has not yet been stored and also from files and circulars. Such first hand information about the various reward incentives provided by the Demonstration Secondary School ABU, Zaria will be looked into. Secondary Data:  The secondary data already generated and stored information in the textbooks, journal, Newspapers and so on. Some of the information were gotten from the school files. This information are the information the researcher intend to use for this research work.

1.7.1 Population and Sample Size

Random sampling was used for high level of representation and participation. A random sample size of one hundred and seventy was selected. According to Nachmias, et al, a sample size of about five percent of a population over a thousand is good enough for making inference of the entire population.4 Since there are just 100 hundred and seventy Teachers in ABU Demonstration Secondary School, Zaria, the researcher has decided to take total size of the teachers to be the population and sample size. 

1.7.2 Method of Data Analysis

Since the population size of teachers in Demonstration Secondary School is just one hundred and seventy three teachers, there is the need to sample all base on the size of the teacher. 

1.7.3 Questionnaire Administration 

Questionnaire was administered to all the teachers of Demonstration Secondary School since the population size is just one hundred and seventy three teachers.

1.8 The Plan of the Study

The entire thesis consists of the following chapters:

 Chapter one is the introduction which consist of background of the study, statement of the problem, objective of the study, scope and limitation of the study, hypotheses, significance of the study methodology, plan of the study including the definition of terms.

Chapter two consists of review of related literature, here various authors’ work is reviewed and a theoretical framework is proposed for the research.

Chapter three is the historical background, aims and objectives, including the organisational structure of Demonstration secondary School, ABU, Zaria.

Chapter four is the chapter that discusses the data presentation and analysis. Here, data collected were put together for effective analysis.

While chapter five summarises the entire work; then conclusion and recommendation are made to effectively correct the

wrongs or lapses discovered in the reward system in

Demonstration Secondary School, Ahmadu Bello University, Zaria. 

1.9       Definition Of Terms

This aspect of the concepts or terms deals with the explanation of concern words or terms. The terms to be defined are as follows:

Reward Systems: These are benefits accruing to an employee due to his or her active participation and involvement with the organization’s quest to accomplish worthwhile goals and objectives. There are various ways of motivating and compensating employees for helping organizations to achieve their set goals.

Employee Performance:  It is the unceased of an employee which enables the employee increase output. It can equally be measured and helps an organization to attain it’s set goals and objectives.

Incentives:  Inducement placed along the course of on-going activities that heep the activities directly towards one goal rather than another. The reward of an employee for productivity. Motivation:  It is defined as a general term applying to the entire class of derives desires, needs, wishes and similar forces. Managers motivate subordinate by doing those things which they hope will satisfy their derives and desires and induce their subordinate to act in a desired manner towards achieving company or organizational objectives.

Salary:  This refers to a fixed weekly, monthly or annual rate of pay. This is usually based on the grade level an employee has attained and an increment accrues annually.

Compensation:  This is the activity by which organizations evaluates the contribution of employees in order to distribute fairly and indirect monetary and non-monetary rewards within the organization’s ability to pay legal regulations. Compensation is a major means by which organization induce employees to

contribute to goal attainments.

Organization:  It is a place where planned coordination of the activities of a number of people towards the accomplishment of some common, exploit purpose or goal.

Communication: 


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