IMPACT OF EMPLOYEE REWARD AND JOB SATISFACTION IN NIGERIA BOTTLING COMPANY

1.1 Introduction

The role of employee 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 et al., 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). Reward Strategy is seen as one of the most important strategies in the human resource management function, as it influences the productivity or employees and growth of organization.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

In corporate organizations and companies nowadays, working conditions and reward system have been large, especially since World War II. The statement that working conditions and employee’s reward is the live wire of an organization is not an overstatement. A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company's reward philosophy, strategies and policy. However, it might be challenging to find the right way to combine the company’s integrated policies and practices together with the employee’s contribution, skill and competence (Armstrong, 2006).

Reward system is an important tool that management can use to channel employee motivation in desired ways. In other words, reward systems seek to attract people to join the organization to keep them coming to work, and motivate them to perform to high levels. The reward system consists of all organization components – including people processes rules and decision making activities involved in the allocation of reward and benefits to employees in organizations.

Organizational performance is a complex phenomenon largely affected by the ability and motivation of the workforce in any firm. Monetary and non-monetary rewards are provided in organizational setting with a view to motivating and influencing individuals, team and organizational behaviour for the achievement of strategic objectives and performance of organizations (Randhawa 2008).

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).

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 job satisfaction 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 job satisfaction. Job satisfaction is perceived as an individual's attitude and behavior towards aspects of his own job. Personal job satisfaction 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 employees' job satisfaction which will invariably affect corporate productivity and performance (Millan et al, 2011). But, whether reward system and fringe benefits negatively or positively determines workers job satisfaction in Nigeria remains open to empirical studies.

Therefore, in Nigeria Bottling Company where the research was carried out, the activities that was conducted is to investigate the Impact of Employee Reward and Job Satisfaction.

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1.3 Statement of Problems

Investigation revealed that 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.

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.

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1.4 Aim and Objectives of Study

The aim of the study is to investigate the Impact of Employee Reward and Job Satisfaction in Nigeria Bottling Company. In achieving this aim, the following specific objectives were laid out as follows:

1. To investigate the relationship between employees’ monetary reward and employees' job satisfaction.
2. To examine the impact of fringe benefits on employees' job commitment.
3. To evaluate the relationship between compensation management and workers' productivity.
4. To examine how good reward can enhance individual employee and organizational growth.
5. To explore and determine the process of modern reward strategy in relation to employee’s productivity.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Does good reward enhance individual employee and organizational growth?
• Is there any significant relationship between compensation management and workers' productivity?
• What is the impact of fringe benefits on employees' job commitment?
• What is the process of modern reward strategy in relation to employee’s productivity?
• What is the relationship between employee monetary reward and employees' job satisfaction?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant relationship between compensation management and workers' productivity
• H1: There is a significant relationship between compensation management and workers' productivity

Hypothesis Two

• H0: There is no significant relationship between employee monetary reward and employees' job satisfaction
• H1: There is a significant relationship between employee monetary reward and employees' job satisfaction

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1.7 Significance of Study

At the end of this study, most organizations will understand that basic principles and process of rewarding workers to work effectively by highlighting the problem facing reward before and at present. It will also educate those who are studying Business Administration and management as a course in tertiary institution and organization and it will serve as reference for researchers.

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1.8 Scope of Study

The scope of the research is focused on the Impact of Employee Reward and Job Satisfaction in Nigeria Bottling Company.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Definition of Terms

Policy: Is organizational guiding principles that regulate its operation and activities.

Reward: Reward system consists of an organization’s integrated policies process and practices for rewarding its employees in accordance with their contribution skills competence and their market worth.

Productivity: Productivity is the output unit / per labour input into the production process given the level of existing technology.

Management: This is the process of planning, organizing, staffing, leading, directing, coordinating and controlling available resources toward s achieving a target objective.

Remuneration: This is the financial reward accruing to employee for his or her performance in the organization.