Skip to main content

Effective Reward System and Employee Motivation: A survey of Selected Food Processing Firms in Nigeria

[Topic] Effective Reward System and Employee Motivation: A survey of Selected Food Processing Firms in Nigeria



In any company or organization, it is important to generate and maintain an effective reward system that would cater to the needs of its human resources. The reward system offered in different companies may come in various and concrete forms. These may either be monetary or non-monetary, tangible or intangible, and physical or psychological, and these are offered to the employees as compensation for the productive work they execute (Caruth & Handlogten, 2001).

            Furthermore, a formalized corporate reward system is necessary because it would appeal to capable and skilled people to fill the available positions in a specific organization. Additionally, such method would promote acceptable levels of turnovers because the present human resources would be encouraged to stay in the organization. Lastly, an efficient reward system would also motivate the workers to perform their responsibilities to the fullest degree of their personal capacities (Caruth & Handlogten, 2001).



Significance of the Study

The study shall be a welcome addition to the vast field of resources based on personnel administration, particularly in the field of compensation. The study shall point out the need of innovative strategies in order to motivate staff and personal of selected food processing business in Nigeria into upgrading their level of competency as well as to permeate organizational commitment among them. Moreover, the study would be able to help prospective administrative departments of food processing corporations by providing them a concrete study regarding the potential of a compensation system to boost up the performance of the corporations as a whole.



Statement of the Problem

Organization theorists have long argued that economic models are too constrained and that non-economic factors critically affect managerial compensation processes (Baron & Cook, 2002). These researchers have developed a rich set of alternative models to explain compensation and promotion practices focusing on sociological phenomena, like the relationship between internal labor markets and social stratification (Baron, 2002), the effect of ownership and monitoring by external parties on compensation practices (Finkelstein & Hambrick, 2001), social influence and managerial power (Allen, 1981), and social comparison theory (O'Reilly, Main, & Crystal, 2001). With the exception of innovative tests developed by O'Reilly, Main, & Crystal (2001) and Finkelstein & Hambrick (2001), however, prior research has not attempted to test the applicability of economic and non-economic models of organizational incentives simultaneously.

This study intends to find the ability of innovative compensation strategies in the organization commitment and motivation of food processing business employees particularly in Nigeria. Specifically, the study intends to answer the following questions:

1.            What are the existing compensation schemes of the company?

2.            What is the level of effectiveness of these existing compensation schemes of the company in motivating the staff/employee in food processing business in Nigeria?

3.            What is the level of effectiveness of these existing compensation schemes of the company in the organizational commitment of the staff/employee in food processing business in Nigeria?

4.            How does staff/employee in food processing business in Nigeria perceive a good compensation plan?

5.            What are the possible innovative compensation strategies that could be applicable to the firm?




The research described in this document is partly based on quantitative research methods. This permits a flexible and iterative approach (Creswell, 1994). During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.

This study also employs qualitative research method, since this research intends to find and build theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements does not have standard measures, rather they are behavior, attitudes, opinions, and beliefs.

Furthermore, as we define the qualitative research it is multimethod in focus, involving an interpretative, naturalistic approach to its subject matter (Creswell, 1994). This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena in terms of the meanings people bring to them. Accordingly, qualitative researchers deploy a wide range of interconnected methods, hoping always to get a better fix on the subject matter at hand.




Baron, J. N. (2002)."Organizational perspectives on stratification." In Ralph Turner and James Short (eds.), Annual Review of Sociology, 10: 37-69. Palo Alto, CA: Annual Reviews.


Baron, J.N., & Cook, K.S. (2002). "Process and outcome: Perspectives on the distribution of rewards in organizations." Administrative Science Quarterly, 37: 191-197.


Caruth, D., & Handlogten, G. (2001). Managing Compensation (And Understanding It Too): A Handbook for the Perplexed. Westport: Quorum.


Creswell, J.W. (1994). Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage.


Finkelstein, S. & Hambrick, D.C. (2001). "Chief executive compensation: A synthesis and reconciliation." Strategic Management Journal, 9: 543-558.


O'Reilly, C.A. III, Main, B.G. & Crystal, G.S. (2001). "CEO Compensation as Tournament and Social Comparison: A Tale of Two Theories." Administrative Science Quarterly 33: 257-274.


Popular posts from this blog

Sample Research Proposal on TOURISM INDUSTRY IN ZAMBIA

Chapter 1 – Background to the Study The Zambian economy has historically been based on the copper-mining industry, which is done the Copperbelt. Output of copper had fallen, however, to a low of 228,000tonnes in 1998, continuing a 30-year decline in output due to lack of investment, and more recently, low copper prices and uncertainty over privatization. In 2001, the first full year of a privatized industry, Zambia recorded its first year of increased productivity since 1973. The future of the copper industry in Zambia was thrown into doubt in January 2002, when investors in Zambia's largest copper mine announced their intention to withdraw their investment. Zambia now needs to depend on other tourism activities to help the economy. The main objective of this study is to investigate Zambia's policy on tourism, and explore mechanisms available to promote this industry elsewhere by identifying tourist attraction areas, and instituting lasting policies by the government, which has …

Sample Research Proposal on The Influence and Impact of Advertising to Consumer Purchase Motive

Introduction Today's market is characterised by highly competitive organisations which are all vying for consumer's loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organisation which shape the direction of the company. Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organisations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centred. Hence, in order to bring out exceptional customer ser…

Sample Research Proposal on Internet Banking Services

REVIEW OF RELATED LITERATURE Internet banking refers to the utilization of the Internet for performing transactions and payments by accessing a bank's secure website.It also pertains to the application of financial services and markets through the use of electronic communication and computation(Humphrey et al. 2004).The developments can be subdivided into two main areas. The first is the impact of Internet banking on financial services. Most economists perceive that the existence of the Internet and other electronic communication processes has significantly changed many aspects of the banking industry. A majority of the services normally provided by banks can already be provided by other financial entities (Jayaratne et al. 2001). The second main area is the major transformation that occurred on most financial markets. Nowadays, these no longer need to be related with a physical place. In effect, trading systems for foreign exchanges are gradually becoming global. All these change…