Complete Material Cost #3,000
Order for Complete Material now
EFFECTIVE REWARD SYSTEMS AND EMPLOYEE WITHDRAWAL BEHAVIOUR OF TELECOMMUNICATION FIRMS IN PORT HARCOURT
Abstract
The study examined the relationship between effective reward system and employee withdrawal behavior of telecommunication firms in Port Harcourt. The survey research design was adopted. The population was made up of 68. The Taro Yemen’s formula was used to determine the sample size of 58. A Self-designed questionnaire on reward system and employee withdrawal system was adopted. The simple percentage was used to analyze the research question. The Chi-Square statistical tool was used to test the hypothesis. Findings reveal that there is a significant relationship between reward system and employee withdrawal system. Based on the findings, it is recommended that the survey research design was employed and Taro Yemen’s sample size determination was used to draw a simple size of 58 from a population 68 primary and secondary data was utilized and descriptive statistic (simple percentage) was used to analyzed the data while the chi-square (x2) statistical tool was used to test the postulated hypotheses. The findings revealed that management should be designed in such a way that employee are entitled to percentages of profit earned by the firm as a means of promoting productivity amongst employees. This will enhance creativity and the desire to acquire new knowledge amongst employee.
Table of Contents
Title Page i
Cover Page ii
Abstract iii
Declaration iv
Certification v
Dedication vi
Acknowledgements vii
Table of Contents viii
List of Tables x
List of Figures xi
CHAPTER 1 12
INTRODUCTION 12
1.1 Background to the Study 12
1.2Statement of the Problem 14
1.3 Objectives of the Study 15
1.4Research Questions 15
1.5Research Hypotheses 16
1.6Significant of the Study 16
1.7 Scope of the Study 17
1.8Limitation of the Study 18
1.9 Definition of Terms 18
CHAPTER 2 20
LITERATURE REVIEW 20
2.1Conceptual Review 20
2.1.1Concept of Reward Systems 20
2.1.2Dimension of Reward System 24
2.1.3Concept of Employee Withdrawal System 26
2.1.4The Role of Reward systems and employee withdrawal behaviour 29
2.2 Theoretical Review 31
2.2.1. Equity Theory 31
2.3Empirical Review 33
CHAPTER 3 36
RESEARCH METHODOLOGY 36
3.1Research Design 36
3.2 Population of the Study 36
3.3 Sample Size Determination 37
3.4 Sampling Techniques 38
3.5 Source and Method of Data Collection 39
3.6 Methods of Data Collection 39
3.7 Questionnaire Design 40
3.6Data Analytical Techniques 41
3.7 Reliability and Validity 42
CHAPTER 4 43
DATA PRESENTATION AND ANALYSIS 43
4.1 Data Collection and Presentation 43
4.2 Data Analysis 44
4.3 Hypothesis Testing 50
4.4 Discussion of Findings 52
CHAPTER 5 54
SUMMARY, CONCLUSION AND RECOMMENDATION 54
5.1 Summary 54
5.2 Conclusion 55
5.3 Recommendations 55
References 57
Appendix I 59
APPENDIX II 60
List of Tables
Table 3.1: Selected Telecommunication firms in Port Harcourt. 37
Source: Field study, 2022. 37
Table 4.1: Questionnaire Administration and Retrieval 39
Table 4.2: show age bracket of respondents 39
Table 4.3: show sex of respondents 40
Table 4.4: Academic qualification 41
Table 4.5: Marital status 41
Table 4.6: Variable pay relate employee withdrawal behaviour of telecommunication firms in Port Harcourt 42
Table 4.7: Bonuses relate to employee withdrawal behaviour of telecommunication firms in Port Harcourt 43
Table 4.8: Profit sharing relate to employee withdrawal behaviour of telecommunication firms in Port Harcourt. 43
Table 4.9: Variable pay relate to employee withdrawal behaviour of telecommunication firms in Port Harcourt 43
Table 4.10: Contingency Table 44
Table 4.11: Chi Square Table 44
List of Figures
Fig 2.1: A Conceptual Framework on Reward System on Employee withdrawal system 20
CHAPTER 1
INTRODUCTION
1.1 Background to the Study
In this present world of globalization where business has gone beyond national boundaries and employees are protected by international laws and engagement, reward systems are fast becoming a competitive tool to many firms. The advent of globalization has brought about greater pressure on business management to be proactive, creative and innovative in order to survive the turbulent business environment that now transcends national boundaries Ezigbo, (2011). Business management has gone beyond routine processes of mass production with the aim of benefiting from economy of scale.
Reward refers to everything the employee perceives to be of value resulting from the employment relationship and includes all types of rewards, direct and indirect, as well as intrinsic and extrinsic. The typical components of reward which make up the levers employers can resort in order to motivate, engage and retain staff are, pay, benefits, learning and developments, and working environment (Armstrong, 2006).
Reward is born as a means to help businesses to satisfy their most important needs which are to attract, retain, motivate and engage staff, not just by means of salary increases, , but in a more effective way capable of producing long-lasting results. The aim of reward therefore, is to maximize the positive impact that a wide range of rewards can have on motivation, job engagement, organizational commitments and job satisfaction (Manus and Graham, 2003).
Reward system has been examined differently by scholars. McShane (1992) sees organisational reward systems as those mechanisms which offer money and other extrinsic and intrinsic rewards to motivate employees toward fulfilling organizational obligations. According to Armstrong (2006) reward system adopts a total reward approach, which emphasizes the importance of considering all aspects of reward as a coherent whole that is integrated with other human resource initiatives designed to achieve the motivation, commitment, engagement and development of employees.
In most organizations poor reward systems lead to lower satisfaction and in turn produces very low organizational commitment (Caruth & Handlogten, 2001). Employees who experience job satisfaction are more likely to be productive, effective performers and committed to the organization. Research has shown that increased job satisfaction improves employees’ organizational commitment, performance and creativeness, and reduces absenteeism and turnover (Oshagbemi, 2010).
Reward systems are made up of compensation, incentives and benefits provided for the employee as a reward for their contribution to the organization (Sims 2002). Poor reward packages are seen by employees as a source of unfairness in the system which causes the employees to become dissatisfied with their jobs resulting into lack of commitment thus affecting their overall performance (Bratton & Gold, 2007).
The significance of employee withdrawal system can be seen in prior research by Bateman and Organ (1983) which stress the relationship between commitment and job satisfaction, Moorman, Niehoff and Organ (1992) work justice, Deluga (1994) trust in and loyalty to the leader and perceptions of supervisor fairness (Niehoff and Morgan, 1993).Stephen (2016)opines that people do not follow uncommitted leaders. Commitment can be displayed in a full range of matters to include the work hours you choose to maintain, how you work to improve your abilities or what you do for your fellow workers at personal sacrifice.
1.2 Statement of the Problem
Numerous surveys and experience of human resource (HR) professionals have shown that while employees are concerned about how to earn more pay and enjoy attractive conditions of service, employers on the other hand would be striving to cut costs so as to post impressive profit at the end of the accounting period (Milkovitch and Newman, 2004). Meanwhile, studies have shown that provision of rewards has been resulting in employees increased interest in the job, enthusiasm and increased productivity at work and absence of motivators has been the other way round (Mathis & John, 2003).Over recent years, the concept of employee engagement has gained tremendous impetus in the banks, yet the academic community has been slow and late in studying it, leading to a lack of research.
However, employee performance is critical for the success of organizations and the quality of services provided by organizations to their clients. However commercial banks fail to achieve their aims and objectives due to poor performance of their employees for example, absenteeism, late coming for work, disregard for authority, absence from meetings, staff turnover and strikes This poor performance can be attributed to improper reward systems, lack of employee withdrawal system and low job satisfaction.
1.3 Objectives of the Study
The aim of the study is to examine the relationship between reward system and employee withdrawal behaviour of telecommunication firms in Port Harcourt. The specific objectives of the study are to:
1. Examine the relationship between intrinsic reward and employee withdrawal behaviour of telecommunication firms in Port Harcourt.
2. Determine the relationship between extrinsic reward and employee withdrawal behaviour of telecommunication firms in Port Harcourt.
1.4 Research Questions
The following research questions were proposed to guide the study.
1. To what extent does intrinsic reward relate employee withdrawal behaviour of telecommunication firms in Port Harcourt?
2. To what extent does extrinsic reward relate to employee withdrawal behaviour of telecommunication firms in Port Harcourt?
1.5 Research Hypotheses
HO1: There is no significant relationship between intrinsic rewardemployee withdrawal behaviour of telecommunication firms in Port Harcourt.
HO2There is no significant relationship between extrinsic rewards relate to employee withdrawal behaviour of telecommunication firms in Port Harcourt.
1.6 Significant of the Study
There is a saying that in any field of human endeavour, improvement are achieved by learning about what people do, why they do them, with what role (negatively or positively) and if there is need for adjustment.
The benefit also extends to academicians and organizational administrators.
The government or public sector could use effective managerial control methods to regulate the ailing public sector. It will also enhance profitability in the commercial bank with other employees in commercial banks.
The academicians will benefit because it will widen their horizon of knowledge regarding the motivating factors behind managerial control as the strategy of organizational efficiency.
This study is a complex, multidimensional one. It will add to the existing stock of knowledge in management and administrative science generally.
Thus, this study will be useful to other researchers especially students who want to know more about managerial controls and organizational efficiency. And performance would be adopted for decision-making at the co-operate level.
Other managers and workers in general could fall back upon this work as a guide for better organizational efficiency.
Banks will find the finding of this study significant and useful to enhance operational efficiency.
1.7 Scope of the Study
The study is delimited under the following headings; content scope, geographical scope and unit of analysis
Content Scope: The content of this study examined the relationship between reward system and employee withdrawal system. The independent variable is reward system having a dimension of variable, bonuses and profit sharing while the dependent variable is employee withdrawal system measure by lateness and absenteeism
Geographical Scope: This study is delimited to selected telecommunication firms in Port Harcourt. which include Eco Bank located at No. 280 Aba Road, First Bank located at No. 315 Aba Road and 9Mobile located at No. 316 Aba Road, Bori..
Unit of Analysis: The unit of analysis is limited to senior and junior staff of selected telecommunication firms in Port Harcourt. at the time of the study. The study is a micro study.
1.8 Limitation of the Study
In carrying out this research work, the researcher was constraint by lot of factors which include but not limited to the following:
The attitude of respondents toward the researcher’s questionnaire was limited, thus the study cover a small portion of the survey population.
The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.
Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and compilation of data for the project
1.9 Definition of Terms
The following terms were operationally defined as follows
Absenteeism: It is an employee behavior grounded on physical, psychological, and social reasons and affecting employees’ development negatively.
Employee withdrawal system: Refers to it as the attachment that an employee has on their organization due to their experiences. It can indicate the level of satisfaction, and engagement among employees.
Lateness: It is the situation in which a person arrives after the appointed, planned, or customary time.
Reward System: Is a collection of brain structures and neural pathways that are responsible for reward-related cognition, including associative learning (primarily classical conditioning and operant reinforcement), incentive salience (i.e, motivation and wanting, desire, or craving for a reward), and positively-valencedemotions, particularly emotions that involve pleasure.
Variable Pay: Is the portion of sales compensation determined by employee performance.