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THE IMPACT OF REWARD SYSTEM ON INSTITUTIONAL GROWTH AND DEVELOPMENT
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Reward is something one could get for a job well done. It contributes to generating innovative ideas that lead to better business functionality and further improve organizational performance both financially and non- financially. Reward system is a planned and structured approach to reward one or more persons who act in a desirable way. Reward system seeks to attract people to join the organization and motivate them to perform high level task. Reward system consists of all institutional decision making activities allocation of compensation and benefits to employees in exchange for the contribution to the institution.
According to Delancy and Huselid (2010) reward system is based on the expectancy theory, which suggested that employees are more likely to perform better when they perceive that there is a strong like between their performance and reward they receive that is, compensation system link “higher salary” which could contribute to strong performance by linking the interest of employees in the organization.
Simon (2011) notes that employees could give their maximum effort when they have the trust that their effort will be rewarded by the management, and they are always being affected on certain factors on their performance such as working condition relationship between employer and employees, training and development opportunity job security and institutional policies for rewarding process. Employee’s reward is one of the most essential parts in an organization development and success.
According to Baron (2012) reward system can be extrinsic or intrinsic. The extrinsic reward are the tangible reward which is also known as external reward to the job performed by the employees and it can be in term of salary payment, incentives process, bonuses, promotion as well as job security. Intrinsic rewards on the other hand are intangible reward or psychological reward such as well as employees praised from the manager. Institutional growth and development could be achieved when there is proper reward system. These rewards could be tangible ort intangible, privilege and incentives which would induce staffers to work at their best. Proper reward system must promote happiness, maintain job stability, increase productivity and higher returns, improve infrastructure and enhance growth of the institution. Basic pay, incentives and fringe benefits can be used by management of the institution to induce staffer’s performance for enhancement of the institution growth and development.
1.1.1 Historical Background of Uyo City Polytechnic
Uyo City Polytechnic metamorphoses from the former school of Accountancy and Business studies, Uyo which was established in September 1992 and approved by the ministry of Education of erstwhile south Eastern State of Nigeria. The school which had earlier been affiliated to the polytechnic Calabar, Cross River State University and Later University of Uyo in September 2003, changed its name to Uyo City Polytechnic and institution that was in March 2012, incorporated as a tertiary institution under the company and Allied Matter Rod Acts 1990 ( RC1019539). It mission is to establish, owns, operated and run a polytechnic that will be relevant in aggressing the needs and challenges of the 21stcentury, it major objectives is to provide improvement in technical education, through consistent research and development and regular contact with the other institution, organization and agencies in both the private and public sector.
1.2 Statement of the Problem
The inherent problem identified is that management of Uyo City Polytechnic is highly dependent on the strength and performance of its staffers for organizational growth and development. But staffers in the institution are also likely to perform their task when they received from the management, higher salaries and improved condition of service. However, this institution today runs below their potential because of poor staff reward system form the management.
Lack of Lecture Hall/Staff Office: In an organization like Uyo City Polytechnic, it is important that lectures hall should be in place for student to take lectures and also be ready for student at all times to use for their lecture and also it is also discovered that there is lack of staff office for our staff, it is a big problem to the human resources management of Uyo City Polytechnic.
Lack of Media Studio: In an organization like Uyo City Polytechnic, it is expected that the organization should have a media studio especially in Department of Mass communication because if there is a media studio in the organization at least other schools will be making use of it and it will generate fund to the school and management.
NYSC Mobilization: The Human resource management of Uyo City Polytechnic is faced with challenges of sending students for NYSC after graduation due to the management planning.
Bad Road Network: In an organization it is important that the management of such organization should have a good road networking system more especially in the school compound but here in Uyo City Polytechnic the reverse is the case.
1.3 Objectives of the Study
The objectives of this study are as follows:
. To examine the impact of regular promotion on institutional growth and development.
. To determine the impact of prompt payment of salary on institutional growth and development.
. To assess the impact of fringe benefits on institutional growth and development.
1.4 Research Questions
The following research questions are stated as:
Does regular promotion exert significant impact on institutional growth and development? Does fringe benefit have an impact on institutional growth and development? Does prompt payment of salary exists significant impact on institutional growth and development?
1.5 Research Hypotheses
Ho: There is no significant impact of regular promotion on institutional growth and development
Ho: There is no significant impact of prompt payment of salary on institutional growth and development.
Ho: There is no significant impact of fringe benefits on institutional growth and development.
1.6 Significance of the Study
The importance of this study cannot be over emphasized due to the fact that it holds a lot of benefits that could ensure a continuous existence and survival of educational institutions. The study will be a great importance to the management and human resources department of any institution regarding the fact that the study reveals effective reward systems. It will involve the general concept of providing management with ideas of how to analyze the needs of employees in order to increase their performances which could lead to greater achievement.
In addition, the study clarifies the argument whether effective reward system can add value to organizational activities which will enable organizations to take a positive side on whether to compensate employees or not. Above all, the findings of this study will be a contribution to literature on management of educational institutions with particular reference to reward system and institutional growth and development.
1.7 Scope of the Study
This research work is undertaken to analyze the impact of reward system on institutional growth and development. Though employees reward system.
