Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Extrinsic reward and employee performance in cement manufacturing firms in South-South, Nigeria

Author(s): Eneh, S.I., Augustine, E.A., Anyadighibe, J.A., Okongo, J.N., Enuoh, R.O., & Jamie, P.G.

This study made an assessment of the influence extrinsic reward has on employee performance in cement manufacturing firms, south-South, Nigeria. Two variables extrinsic reward and employee performance were respectively decomposed into salary increase, bonus payment, overtime allowance and hazard allowance, as independent variables (X), for extrinsic reward, while employee productivity, output, regularity and work attitude were the dependent variables (Y), for employee performance. Four specific research objectives were developed by crossed-matching the decomposed variables, from which four research hypotheses were also formulated. A survey design was used and this allowed for the use of structured questionnaire. Taro Yamane formula was adopted and a sample size of three hundred and ten respondents (310) was obtained and used for the study. The questionnaire was administered, analysed and Pearson Product Moment Correlation Coefficients were calculated and hypotheses tested using SPSS version 21. The results of the study revealed that only salary increase has a positive correlation with employee productivity. Bonus, overtime and hazard allowances showed negative correlation with employee output, regularity and work attitude. Further findings revealed that salary increase, overtime allowance and hazard allowance have significant relationship with employee productivity, regularity and work attitude, respectively, while bonus has no significant relationship with employee output. Based on these findings, the study concluded that salary increase is an important factor that could enhance employee productivity in the cement manufacturing firms in South-South, Nigeria. Overtime, bonus payments and hazard allowances are not necessarily significant factors that could enhance employee performance in the studied firms. In line with these conclusions, the study recommended among others, that workers’ salary should always be increased as at when due, effective bonus scheme put in place, and overtime and hazard allowances given serious consideration in order to enhance employee performance in cement manufacturing firms in South-South, Nigeria.

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