Reward Systems Administration and Employee Job Satisfaction of Public Secondary Schools in Rivers State, Nigeria

Reference code: MG011

ABSTRACT
This research examined the relationship between reward system administration and employee job satisfaction of Public Secondary Schools in Port Harcourt, Nigeria. With respects to the conceptual and operational framework, the research answered five research questions and five hypotheses were formulated for the study in order to ascertain the degree of positive linear correlation between reward system administration and employee job satisfaction. Cross-sectional survey research design was used for the study. A total of one hundred and ninety six (196) existing employees were drawn from a population of four hundred (400) existing employees across the fifteen (15) selected Public Secondary Schools in Port Harcourt, Nigeria using Krejcie & Morgan table for sample size determination. The researcher collected data on a macro level unit of analyses using a five point Likert Scale questionnaire tattled: “Questionnaire on reward system administration and employee job satisfaction of Public Secondary Schools in Port Harcourt (QRSAAEJS)” based on simple random sampling technique. The Questionnaire was validated via face validity, content validity, pilot test (pre-test) and construct validity while Cronbach alpha was used to test for reliability of the research instrument. The data collected was analyzed at different levels. For primary level data, descriptive analytical tools were used and for secondary level data, inferential statistical tool [i.e. Pearson Product Moment Correlation Coefficient (PPMCC)] was used. These analyses were carried out using a computer software package called statistical package for social sciences (SPSS) version 20.0. The result of the findings revealed that reward systems administration positively impacts employees’ job satisfaction Based on empirical findings, the researcher then concluded that reward systems administration influences employees job satisfaction. The researcher then recommend that: Administrators of Public Secondary Schools in Rivers State Should embrace good reward system administration in order to yield quality employee job satisfaction.

INTRODUCTION

 People join organizations with certain motives like security of income and job, better prospects in future, and satisfaction of social and psychological needs. Every person has different sets of needs at different times. It is the responsibility of management to recognize this basic fact and provide appropriate opportunities and environments to people at work to satisfy their needs (Rao, 2000). The higher the job satisfaction, the more likely workers will hold a positive attitude toward their jobs (Wang & Feng 2003), and are more likely to be committed to the organization. Similarly, workers with higher level of job satisfaction would display a decreased propensity to search for a job and decreased propensity to leave the organization (Wright & Bonett 2007). In the same vein, employees who perceive their needs as unmet grow in general dissatisfaction and become increasingly attracted to competing places of employment (Tziner 2006), and this often results in voluntary termination and high organizational turnover (Mathieu & Zajac 1990).

Clark (2001) says that material interests of workers must be cooperated with objectives of the organization, that allows the use of human resources in the best way to optimize and reduce labour costs, and maintain the optimal number of workers. All of these goals are achieved through the appropriate systems of rewards, designed to promote and motivate the employees and bring in the level of satisfaction they desire. Therefore, the reward system in any organization should be geared to encourage productivity In the Modern world of business, most organizations have adopted reward systems or schemes to reinforce management.

Reward systems administration is concerned with the formulation and implementation of strategies and policies whose purpose is to reward people fairly, and consistency in accordance with the values of the organization. It is also about the design, implementation, maintenance and communication of reward processes in order to help the organization implement them. According to Armstrong (2006) Reward systems consist of policies that are guidelines on approaches to management, practices that provide financial and non-financial rewards as processes concerned with evaluating the relative size of job (job evaluation) and assessing individual performance (performance management), procedures operated in order to maintain the systems and to ensure that it operates efficiently and flexibly and provides value for money. An organization is always perfectly designed to produce what it is producing. If it has quality problems, cost problems, productivity problems, then the behaviour associated with those undesirable outcomes is being reinforced.

The researcher therefore will try to assess on rewards systems in enhancing job satisfaction. As deliberated above, it is seen that rewards relates to human behaviour in regard to performance and productivity of the organization. The researcher will try to establish the relationship between rewards and employees job satisfaction. Job satisfaction is a result of employees’ perception of how well their job provides those things that are viewed as important to them. Job satisfaction is often determined by how well outcomes meet or exceed expectations. For example if organizational participants feel that they are working much harder than others, they will probably have a negative attitude toward their boss or co-workers. They will be dissatisfied and this which will lead to poor productivity.  Some of the problems to be deliberated about this issue include: inconsistence of policies and procedures, the organizational structure, the training procedures undertaken by the company. A Reward is the process of recognizing employees for their work productivity. Incentives are a positive motivational influence or an additional payment (or other remuneration) to employees as means of increasing outputs.  Productivity is the ratio of the quantity and quality of units produced to the labour per unit of time in any organization.

Clark (2001) explains the dependence between job satisfaction and pay for performance according to the theory of expectations. In general, this approach assumes that people have their own needs and their own view of the work they perform. Based on their view, people decide how to behave, and work so that the result of their work meets their needs. According to Lazear (2000), if people do not feel a direct connection between their efforts and results achieved, then the motivation will wane. This may occur because of improper estimation of results of the work of the employee, his poor training or improper training, and lack of rights for the employee to perform the task. Expectations regarding the rewards of the results are the expectations of certain rewards or incentives in response of the current level of results achieved.

According to Lawler (1971), reward systems administration are one of the most widely researched and written subjects in the field of management and organizational behavior, yet it remains one of the less understood topics. However, in present days and among managers’ tasks is to create an environment which motivates people to perform satisfactorily and to be a profitable asset, so that they can foster the organization’s growth. For this reason, increased emphasis is given to intrinsic and extrinsic rewards systems from both managers and academics.

TABLE OF CONTENTS

Chapter 1: Introduction
1.1 Background of the Study 1
1.2 Statement of the Problem 5
1.3 Purpose and Objective of the Study 6
1.4 Research Questions 7
1.5 Research Hypotheses 7
1.6 Significance of the Study 8
1.7 Scope of the Study 9
1.8 Limitation of the Study 9
1.9 Definition of Terms 9

Chapter 2: Review of Related Literature
2.1 Theoretical Foundation 11
2.2 Concept of Reward Systems Administration  11
2.2.1 Features of a Good Reward System 13
2.2.2 Theories of Reward Systems Administration 13
2.3 Concept of Employee Job Satisfaction 15
2.3.1 Theories of Job Satisfaction  16
2.4 Reward Systems and Job Satisfaction  17
2.5 Dimensions of Reward System Administration 20
2.5.1 Extrinsic Rewards 20
2.5.2 Intellectual Reward 21
2.6 Measures of Job Satisfaction 22
2.6.1 Performance 22
2.6.2 Employee Commitment 24
2.7 Relationship between Extrinsic Reward System and Employee Commitment  25
2.8 Relationship between Intrinsic Reward System and Employee Commitment 31
2.9 Relationship between Intrinsic/Extrinsic Reward System and Employee
Performance 32
2.10 Relationship between Extrinsic/Intrinsic Reward Systems and Employee
Commitment 33
2.11 The Concept of Organizational Culture 39

Chapter 3: Methodology 
3.1 Research Design 42
3.2 Population of the Study 42
3.3 Sample Technique and Sample Size Determination 42
3.4 Data Collection Method 43
3.5 Operational Measures of the Variables 43
3.6 Test of Validity and Reliability 44
3.7 Data Analyses Techniques 45

Chapter 4: Data Presentation, Analysis and Discussion of Findings
4.1 Data Presentation 46
4.2 Response Rate Analysis 46
4.3 Analysis of Demographic Characteristics of Respondents 47
4.4 Univariate Data Analyses 57
4.5 Bivariate Data Analyses 62
4.5.1 Test of Research Hypothesis One 62
4.5.2 Test of Research Hypothesis Two 63
4.5.3 Test of Research Hypothesis Three 64
4.5.4 Test of Research Hypothesis Four 65
4.6 Multivariate Data Analyses 65
4.6.1 Test of Research Hypothesis Five 65
4.7 Discussion of Findings 67

Chapter 5: Summary, Conclusion and Recommendations
5.1 Summary of Findings 70
5.2 Conclusion 71
5.3 Recommendations 71
5.4 Contribution to Knowledge72

Reference code: MG011
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Reference code: MG011

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