This chapter summarizes,
concludes all the major findings and issues raised in this study. It goes
further to recommends ways out and proposes areas for further studies.
6.1. Summary
As stated in the earlier part of
this study, it is generally believed that effective reward will lead to
enhanced performance among employees; however, this study proves this belief
otherwise.
Some of the major findings of
this study are as follows:
§
The general view has been that participation
increases organizational harmony, but this study has a
contrary view, example,
Tynana (1990), Gainson and Levine (1984), Forsyth’s (1990), all contended that
participation increases the level of conflict in an organization.
§
It was also discovered that in Nigeria, money is
a motivator, which is contrary to Herzberg’s theory which classifies money as a
hygiene factor.
§
The study also reveals to everybody’s consternation
that reward does not have any relationship with employee’s performance, many
reasons have been adduced to this.
§
The study also revealed that job design or
employees participatory practices are some of the measures that help to enhance
performance though not strongly proved empirically.
§
The study reveals in strong term that there is
no strong relationship between incentive payment and organizational
performance. A study by Bloom and
Milkovich (1998), revealed that incentive pay had negative effect on the
performance of 150,000 managers from 500 financially distressed firms.
§
It was also discovered that incentive pay
undermines intrinsic motivation
§
It was also discovered that there is a limit to
human being’s performance, a level of performance at which an individual cannot
go beyond, no matter the level of reward. This level of performance can be
referred to as “human performance limit (HPL)”.
6.2 Conclusion
Organizational or individual
performance is not only evaluated through the achievement of a set objectives,
standards, or targets, as the case with management by objectives, but covers
such competence factors as achievement of expected levels of competence as well
as objective setting and review.
The choice of what to evaluate is
one of the major decisions facing management in the process of choosing the
criteria for measurement of employees’ performance. Without wage transparency,
market pressures cannot work their true magic and ensures that reward reflect
real value (Telgan, 2001).
The major objective of reward is
to attract good applicants, retain good employees, motivate employees and
comply with the law. Any good and effective reward system must reflect about
the above criteria (Pieter, et:al; 2007).
The inequitability of wages among
occupations within and outside a particular organization is one of the major
sources of conflicts in an organization. Records have shown that there are five
important factors always considered by prospective employees before accepting
any job. These factors are job design, job degree of responsibility, job
security, the possibility for growth and cost of learning the job. All the
above factors are found to be in line with Herzberg’s motivators, which has to
do with job content.
The pay structure defines the
relationship between jobs in terms of pay. The fundamental tension underlaying
the employment relationship makes for an unstable contract between the two
parties, which in the context of global price competition and technological
change is constantly being adjusted. To increase market ‘viability’, employers
attempt to increase
performance through incentive pay
or pay cut to reduce labour costs. One of the most important question in modern
reward theory is how closely should performance and reward be linked?
Concerning piece-rate, it is
widely acclaimed that piece-rate helps to boost organization productivity,
however, it has some short falls. One of the shortcomings of piece-rate pay
system is that, it sends the wrong signal instead of encouraging partnership
between the goals of the individual and those of the organization; it implies
that the organization actually distrusts the individual. Sequel to this,
piece-rate system is likely to encourage behaviours opposite those sought.
In order to attract and retain
suitable employees, some organizations introduce some kinds of loyalty bonuses
otherwise known as “golden handcuffs”.
It was discovered from the goal
theory, that motivation and performance will be higher when individuals set a
specific and achievable goals which are difficult but accepted and there is a
feedback on performance, which may be by way of correction, praise, and or
financial reward.
Distilled from the equity theory,
is the fact that employees satisfaction with pay is related to perception about
the ratio between what one receives from the job (outcome in form of pay), to
what one puts into it (inputs in form of effort and skill), compared with the
ratio obtained by others.
Conclusively, the study proved
that there is no significant relationship between reward and performance. Other
findings are that, there is a significant relationship between reward and
labour turn-over. Finally, the study also revealed that, there is a
relationship between reward and job design (participation practices) and
organizational performance.
Basically, organizations that
treasure their employees and manifest it through her reward system, have always
proved to be highly performing organizations.
6.3. Recommendations
Based on the findings of this
study, the following recommendations are made:
§
Employers are advised to grant workers at least
one week off each month to rest and come back refreshed after the days off.
This has been found to enhance employees performance in all the Oil Servicing
Companies studied.
§
Employers should treat their employees as human
being not as machines, by providing them with the necessary tools and equipment
they need to work, including favourable work environment.
§
Organizations that really want to excel should
pay its employees good salaries beyond the going rate.
§
Organizational management should involve
workers’ representatives in decision making especially on issues relating their
salaries and other welfare packages.
§
Employees should be paid according to their
performance (productivity), the best way to achieve this is by introducing
incentive payment, which may take any of the following forms: Piece-rate, Pay
for skill and knowledge, Pay for experience utilized, Pay for improved quality
of product or service.
§
Organization’s management should design the job
in such a way that employees would be given free hand to make use of their
initiatives, such job design can be seen in: Quality Circles (QC), Team Working
(TW), Self-Managed Team (SMT), Quality of Work Life (QWL), Total Quality Management
(TQM).
§
Employers are expected to incorporate their
workers in the goal setting process, since people are said to be favourably
disposed in decisions they are part of.
§
Employers are advised to make equity the rule of
the game, in doing this, employees would be compelled to be loyal and committed
to the goals of the organization.
§
Organizations should find out what other firms
within the industry offers as reward to their employees, so as to adopt same as
competitive strategy.
§
Employers are also advised to adopt the type of
reward they are capable of sustaining, as not to bring discontent among
employees, when they (the employers) are not able to sustain a reward package
they have instituted.
§
Organizations that desire to have 3600
degree of high productivity should adopt a practice known as organizational
reward and performance model (ORPM), and enhanced organizational practice which
combines effective leadership, job security, goal
§
Consistency, equitable reward system etc, as the
best enroute to effective organizational
performance.
6.4. Recommendation for
Further Study
The researcher hereby suggests
the following for further study.
§
Research on the reasons why there are hardly
been any equitable improvement in the performance of many organizations, even
when there is improvement in employees reward.
§
Research on the reasons why Private Enterprises
or Cooperation are performing better than public cooperation.
§
Research on factors hindering effective
implementation of favourable government policies, especially when it concerns
welfare of workers.
§
Research on the reasons why Nigerian Employers
relegates employees welfare to the background.
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