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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.


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