REWARD SYSTEM AND EMPLOYEE PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN ASABA, DELTA STATE

TOPIC: REWARD SYSTEM AND EMPLOYEE PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN ASABA, DELTA STATE

THIS TOPIC IS ALSO SUITABLE FOR:
1. Business Administration
2. Human Resource Management
3. Industrial Relations and Personnel Management
This research material contains:
1-Chapter One to Five
2-Recent References/citations
3-Tables/Charts/Graphs in Chapter Four
4-Accurate Data Analysis
5-Table of Contents
6-Questionnare

ABSTRACT
This study was carried out to examine reward system and employee performance of selected manufacturing companies in Asaba, Delta State. The study was specifically carried out to examine the effect of financial rewards on employee performance in selected manufacturing companies in Asaba, assess the influence of promotion opportunities on employee performance in selected manufacturing companies in Asaba, determine the effect of recognition and appreciation on employee performance in selected manufacturing companies in Asaba, and examine the influence of fringe benefits and welfare packages on employee performance in selected manufacturing companies in Asaba. The study employed the descriptive survey research design. The population of the study comprised 496 permanent full-time employees, including administrative executives, production supervisors, technical operators, and front-line floor staff in selected manufacturing companies in Asaba, Delta State. A sample size of 221 respondents was determined using Taro Yamane formula, while 206 validated copies of questionnaire were used for analysis. The study adopted multi-stage sampling technique involving stratified and convenience sampling methods. Hence, questionnaire was used for data collection, while the data collected were analyzed using mean scores and standard deviation for research questions. The hypotheses test was conducted using Simple Linear Regression statistical tool, SPSS v.23. From the responses obtained and analyzed, the findings revealed that financial rewards have a significant effect on employee performance in selected manufacturing companies in Asaba at β = 0.712, R² = 0.507, P = 0.001. The study also showed that promotion opportunities have a significant influence on employee performance in selected manufacturing companies in Asaba at β = 0.684, R² = 0.468, P = 0.001. Likewise, the study further revealed that recognition and appreciation have a significant effect on employee performance in selected manufacturing companies in Asaba at β = 0.697, R² = 0.486, P = 0.002, while fringe benefits and welfare packages have a significant influence on employee performance in selected manufacturing companies in Asaba at β = 0.673, R² = 0.453, P = 0.003. The study therefore recommends that management of manufacturing companies should establish effective reward systems through adequate financial rewards, fair promotion opportunities, regular recognition, and improved welfare packages to enhance employee performance and organizational productivity.
Keywords: Reward System, Employee Performance, Financial Rewards, Promotion Opportunities, Recognition and Appreciation, Fringe Benefits.

CHAPTER ONE
INTRODUCTION (Preview)
1.1 Background to the Study
In the modern organizational context, human resources are considered as an indispensable asset because the term sustainable competitive advantage is no longer a matter of physical or financial resources only, but rather a matter of effective human resources utilization(Olajide et al., 2025). In all economies, managers always seek ways to engage employees, improve the efficiency of the organisation and achieve better organisational results. Furthermore, the competitive and changing nature of the world, technological advancements and changing expectations in the workplace have reiterated the importance of human resource management in the development of an organization(Olanike et al. 2025). Employees are the stakeholders that make up the productivity of an organization because their knowledge, competencies, and commitment help to ensure that goals and objectives are achieved (Ebuzoeme, 2025). Likewise, Ibitomi et al. (2025) stated that organisations that make a conscious effort to invest into best practices in human resource management are likely to experience the benefits of improved productivity, innovation and sustainable growth of organisations. This knowledge has transformed employee management from a mere administrative task to a strategic imperative that propels organizational resilience and long-term success. As such, organisations are more focused on managerial processes that can inspire their employees to consistently display the behaviours they desire.
Reward system is one of the practices in HRM adopted by organizations which has become a basic mechanism to influence employees' attitude and behaviour in the workplace. Reward system is simply an organized system of financial and non-financial incentives that are used to recognize, appreciate and reinforce employees' contribution to organizational goals. Financial rewards are salaries, bonuses, incentives, allowances, and profit sharing while non-financial rewards are recognition, promotion, career development, job security, latitude and favourable working conditions. Reward systems, according to Chinenyem and Omale (2025), are any organized managerial instruments that motivated the employees to show commitment, diligence and loyalty towards the goals of the organization. Similarly, Nze and Ahumibe (2024) argued that the effective implementation of the reward system can help to enhance employee satisfaction by ensuring that their efforts are fairly rewarded. Genty and Ifenowo (2025) also revealed that “reward systems extend beyond monetary considerations to include psychological and developmental factors that foster a sense of belonging and engagement within the workplace.” As a result, organisations have been incorporating the entire reward system in their human resource policy with the aim of developing a motivated workforce ensuring the effectiveness of the organisation.
Reward systems are often judged by their effect on the job performance of the employees, which is the extent to which they are able to complete the tasks assigned to them according to the standards and expectations set by the organization. Performance of employees include aspects like productivity, quality of work, efficiency, innovativeness, punctuality, commitment, and attainment of goals. According to Ikwuo et al., (2025), employee performance indicates the effective fulfilment of their duties and the meaningful impact they make toward the organization's goals. In the same vein, Abdullahi et al. (2025) noted that when a company has a well-thought-out reward system, it is likely that there is an increase in employee productivity because the employees are motivated to put in more effort in completing organizational tasks. Olajide et al. (2025) additionally added that reward systems that resonate with an employee's sense of fairness, recognition, and career advancement have a positive effect on their performance. Similarly, Godbless and Igiagbe (2025) noted that the link between reward systems and employee performance underscores the need for organizations to align their incentives with employee needs to foster increased employee engagement and productivity. Together, these insights highlight the strategic value of reward systems in optimizing organizational performance by boosting employee contributions.
The manufacturing sector plays a crucial role in the industrialization, employment generation, value addition and economic diversification of the country. In this area the workforce is involved in performing a variety of operational, technical and administrative tasks, which together influence the productivity and competitiveness of the organisation. For this reason, manufacturing companies are increasingly aware of the need of adopting reward systems that can not only contribute to the performance of their employees but also to the excellence of the company. Olanike et al. (2025) noted that manufacturing industries have been gradually adopting to a holistic reward system as the world is becoming a more competitive business environment for the aim of enhancing employee commitment and efficiency. Similarly, Namo et al. (2025) stated that reward systems in manufacturing organizations recognizing the efforts of the employees and encouraging good work habits are beneficial. Manufacturing firms in Delta State, especially Asaba are still playing great roles in Delta State economic activity in terms of manufacturing, employment creation and industrial development. In this context, the present study focuses on the relationship between reward system and employee performance of selected manufacturing companies in Asaba, Delta State in order to provide empirical evidence in this context.

1.2 Statement of the Problem
Employee performance is a crucial factor affecting the effectiveness of the organization as it impacts productivity, operational efficiency, product quality and achievement of the organization's strategy. In manufacturing organisations, the lack of the capacity to maintain high levels of employee performance can be largely attributed to management practices which fail to motivate employees to be committed, responsible and to behave in a consistent manner. Reward systems have thus become part and parcel of the human resource management and serve as devices for rewarding the employees' contribution as well as reinforcing good effects in the work environment. Orgs should create balanced, transparent and motivating systems of rewards that are consistent with employee's actions, goals and objectives of the organisation, and performance. It is anticipated that the application of the right reward practice will help to boost employees motivation, enhance productivity, minimize disengagement and promote competitiveness in the organization. Thus, the relation between reward systems and employee performance has been more relevant in an effort to provide evidence that can be put into practice in managerial decisions in order to enhance the sustainability of an organization.
Yet, even with the recognized strategic value of reward systems, many manufacturing organizations are still facing inconsistencies in employee performance due to the absence of an adequate, equitable, or properly aligned reward system with employees' expectation. Reward programmes should encourage increased productivity, commitment, efficiency and job satisfaction; ideally, there should be a financial reward as well as a non-financial reward and it should be commensurate to employee contribution. But, in many organizations, the reality is that workers might not necessarily be motivated by the current reward system and this could have a significant impact on their engagement to put forth maximum efforts towards organizational goals. This raises doubts about how effective the implementation of reward systems is in the performance of employees in manufacturing companies. Moreover, organizational differences in policies, employee expectations, and organizational environments suggest that the relationship between reward system and employee performance may vary across organizations, which require empirical investigation of the relationship in specific organizational contexts like manufacturing companies of Asaba, Delta State.
Although there are a number of empirical studies on reward systems and employee performance in a variety of industries and countries, the results have been inconsistent, influenced by differences in the nature of the organizations, reward constructs, research designs, and environments. Hence, there is a paucity of empirical evidence on the effects of reward system on performance of selected manufacturing companies in Asaba, Delta State. This contextual gap has an impact on the availability of the evidence localized to guide the managerial policies and human resource practices in the manufacturing sector in the study area. Thus, there is a strong need to study the effect of reward system on employee performance in such a unique environment. The present work aims at filling this knowledge gap by presenting empirical findings of the impact of reward system on employee performance in selected manufacturing companies in Asaba, Delta State in a way that would aid in taking better management decisions and enhancing the performance of the companies.
1.3 Objectives of the study
The main objective of this study is to assess reward system and employee performance of selected manufacturing companies in Asaba, Delta State.  The specific objectives are to: 
1.Examine the effect of financial rewards on employee performance in selected manufacturing companies in Asaba.
2.Assess the influence of promotion opportunities on employee performance in selected manufacturing companies in Asaba.
3.Determine the effect of recognition and appreciation on employee performance in selected manufacturing companies in Asaba.
4.Examine the influence of fringe benefits and welfare packages on employee performance in selected manufacturing companies in Asaba.
Other parts of chapter one include:
1.4 Research questions
1.5 Hypotheses
1.6 Significance of Study
1.7 Scope of the Study
1.8 Operational Definition of Terms:

CHAPTER TWO
REVIEW OF LITERATURE (Preview)
This chapter critically examines relevant literature that would assist in explaining the research problem and, furthermore, recognizes the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps. This chapter, therefore, focuses on the concept of reward system, types of reward systems, components of reward systems, the concept of employee performance, factors influencing employee performance, and the relationship between reward systems and employee performance in selected manufacturing companies etc. The chapter is sub-grouped into the following major headings:
2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review
2.4 Summary of Literature Review

CHAPTER THREE
METHODOLOGY (Preview)
Presented below is a snapshot of key areas of the study methodology, the full and detail chapter three methodology is contained in the instant download document.

Research Design: The study adopted a descriptive research design.
Population of the Study: The population of the study comprises employees of three selected manufacturing companies in Asaba, Delta State, namely Olite Manufacturing Company Limited  Pentagon Plastic Industries Limited and Asaba Aluminium Company.
Sample Size Determination: The study adopted the Taro Yamane formula to determine a sample size of 221 participants.
Sampling Technique: The study employed a multi-stage sampling technique involving stratified and convenience sampling to select the individual respondents.
Research Instrument: The study utilized a structured questionnaire titled “Reward System and Employee Performance of Selected Manufacturing Companies in Asaba, Delta State” as the instrument for data collection.
Methods of Data Analysis: The collected data were analyzed using frequencies, percentages, means, and standard deviations to summarize and present the demographic characteristics of the respondents and their responses. Inferential statistics, such as Simple Linear Regression, were used to test the hypotheses.
Full outline for chapter three;
3.0 Introduction
3.1 Research Design
3.2 Population of the Study
3.3 Sample Size
3.4 Sampling Technique
3.5  Instrument for Data Collection
3.6 Validity of the Instrument
3.7 Reliability of the Instrument
3.8 Method Of Data Collection 
3.9 Method of Data Analysis
3.10 Ethical Consideration

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
MAJOR FINDINGS (Preview)
The analysis results were presented in tables and charts. Based on the results obtained from the analysis, the following major findings were made:

i. The study found that financial rewards have a positive and significant effect on employee performance in selected manufacturing companies in Asaba, as evidenced by the mean scores of all six items, which ranged from 3.30 to 3.45, above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a correlation coefficient (r) of 0.712, t-value of 14.434, and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis.

ii. The study found that promotion opportunities have a positive and significant influence on employee performance in selected manufacturing companies in Asaba, as evidenced by the mean scores of all six items, which ranged from 3.29 to 3.40, above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a correlation coefficient (r) of 0.684, t-value of 13.304, and p-value of 0.001 (p < 0.05), leading to the rejection of the null hypothesis.

iii. The study found that recognition and appreciation have a positive and significant effect on employee performance in selected manufacturing companies in Asaba, as evidenced by the mean scores of all six items, which ranged from 3.34 to 3.41, above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a correlation coefficient (r) of 0.697, t-value of 13.923, and p-value of 0.002 (p < 0.05), leading to the rejection of the null hypothesis.

iv. The study found that fringe benefits and welfare packages have a positive and significant influence on employee performance in selected manufacturing companies in Asaba, as evidenced by the mean scores of all six items, which ranged from 3.30 to 3.39, above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a correlation coefficient (r) of 0.673, t-value of 12.958, and p-value of 0.003 (p < 0.05), leading to the rejection of the null hypothesis.

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter covers the following outline:
5.1 Introduction
5.2 Summary 
5.3 Conclusion
5.4 Limitations of the Study
5.5 Recommendations
5.6 Suggestions for Further Studies
Reference
Appendix

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