IMPACT OF REWARD SYSTEM

ON EMPLOYEES PERFORMANCE
(A Study of Tuyil Pharmaceutical Industry)

BY

AJAYI FATHIA OPEYEMI

ND/22/BAM/FT/002
BEING A RESEARCH PROJECT SUBMITTED TO THE
DEPARTMENT OF BUSINESS ADMINISTRATION AND
MANAGEMENT, INSTITUTE OF FINANCE AND MANAGEMENT
STUDIES KWARA STATE POLYTECHNIC, ILORIN

IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF

THE AWARD OF NATIONAL DIPLOMA (ND) IN BUSINESS
ADMINISTRATION AND MANAGEMENT

JUNE, 2024

[1]
 CERTIFICATION

This project work has been read and approved as meeting Part of the requirement

for the award of National Diploma (ND) in Business Administration and

Management .Institute of Finance and Management Studies, Kwara State Polytechnic

Ilorin.

______________________ ____________________
DR. POPOOLA T.A DATE
(PROJECT SUPERVISOR)

______________________ ____________________
MR. KUDABO M.I DATE
(PROJECT COORDINATOR)

____________________ ___________________
DR. ABDULSALAM F.A DATE
(HEAD OF DEPARTMENT)

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 DEDICATION

This project is dedicated to my parents, MR. and MRS. AJAYI, whose

unwavering support, encouragement, and love have been the foundation of all my
endeavors. Your guidance and sacrifices have shaped my path, and this work stands as a
testament to your enduring influence in my life. Thank you for always believing in me.

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 ACKNOWLEDGEMENT

First and foremost, I would like to thank God for providing me with the
strength, wisdom, and perseverance to complete this project. Without His grace and
guidance, this achievement would not have been possible.

I am deeply grateful to my supervisor, DR. POPOOLA, for their invaluable

support, guidance, and insights throughout the course of this project. Your expertise
and encouragement have been instrumental in shaping the direction and quality of my
work.

I would also like to express my heartfelt gratitude to my parents, MR. and

MRS. AJAYI. Your unwavering support, love, and belief in me have been my
constant source of inspiration. Thank you for your sacrifices and for always being
there for me.

Finally, I extend my sincere appreciation to all those who have supported me

throughout this journey. Your encouragement, feedback, and assistance have been
crucial in helping me achieve this milestone. Thank you for being a part of this
endeavor.

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 TABLE OF CONTENT

Title page i

Certification ii

Dedication iii

Acknowledgement iv

Table of content vi

CHAPTER ONE: BACKGROUND OF THE STUDY

1.1 Background of the study 1

1.2 Statement of the problems 4

1.3 Research questions 5

1.4 Objective of the study 6

1.5 Research Hypothesis 7

1.6 Significance of the study 8

1.7 Scope of the study 9

1.8 Definition of terms 9

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction 10

2.1 Conceptual Review 11

2.2 Theoretical Review 13

2.3 Empirical Review 17

CHAPTER THREE

3.0 Research methodology 18

3.1 Research design 18

3.2 Population of the study 18

3.3 Sample size and sampling techniques 18

3.5 Method of data collection 19

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3.6 Instrument of data collection 19

3.7 Method of data analysis 19

CHAPTER FOUR: PRESENTATION OF THE RESULT

4.0 Data analysis, presentation and interpretation 20

4.1 Introduction 20

4.2 Data Presentation and Analysis 21

4.3 Test of Hypothesis 27

4.3 Discussion of findings 28

CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION

5.1 Summary of findings 32

5.2 Conclusion 32

5.3 Recommendation 33

Reference

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 CHAPTER ONE
Introduction
1.1 Background to the Study
According to Armstrong (2018), a reward system is regarded as a program
developed to provide appreciation for high performers and provide incentives for low
performers to increase their productivity. Moreover, reward systems have been identified
as one some of the most effective factors to maximise employee job satisfaction and
industriousness.
From the managers’ point of view, a reward system is aimed to shape the
behaviours of employees towards their jobs and a company in general (Griffin &
Moorhead, 2019). Rewards are given to those employees who meet or more often exceed
expectations of the management, thus, being a tool of motivation, attraction and retention
of qualified workforce.
Retaining a talented and high-quality employee has been considered as one of the
long term sustainable competitive advantages but in the modern business environment, it
has become a challenge for companies (Armstrong, 2019).
In the globalised world of developed technology and internet, consumers have
become educated about products, services, business practices and personal rights as never
before, hence, requiring more skilful and efficiently trained workforce from companies
(Torrington et al, 2020).
Contemporary organisations face various challenges to remain competitive in the
operating industries and gain sustainable competitive advantage. Nowadays, most
companies manage employees of different nationalities, cultures and social backgrounds
which make the phenomenon of employee retention even more challenging.
According to Sheilds and associates (2021), rewards should be based on differing
needs of employees as some employees prefer cash rewards while others are more
interested in other incentives such as house, car, paid holidays. From the statement above,
it is obvious that an efficient reward system should combine both monetary and non-
monetary rewards and incentives to satisfy the needs and expectations of employees
towards management and reward system.

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 Torrington and associates (2020), expressed the idea that positive impact on
employee productivity can only be achieved if the reward system meets the needs and
expectations of employees. Most commonly rewards are categorised as intrinsic and
extrinsic where extrinsic rewards stand for promotions, commission, bonus, awards,
while intrinsic rewards are performance appreciation, social recognition, improved
working conditions, diversification in job description, increasing responsibilities.
In contrast, extrinsic motivation is generated by some actions being done for
people to motivate them. This motivation occurs from the external sources such as
money, grades, criticism or punishments. Extrinsically motivated employees can work on
a task even without being interested in it, knowing that the reward will provide them with
satisfaction and pleasure after the task being completed. Unfortunately, extrinsic
motivation has a short effect on the employees and with the new task to be done new
rewards should be offered (Armstrong, 2018).
A good balance of extrinsic and intrinsic rewards enables the organisation to
maximise employee’s commitment, motivation, and job satisfaction which in turn
maximises the performance of employees particularly in terms of productivity (Khan, et
al. 2018).
Additionally, Wang (2017) points out the fact that reward system is an efficient
method of increasing employee commitment towards organisation maximising employee
loyalty and job satisfaction.
Furthermore, Torrington, Hall, Taylor and Atkinson (2019) investigated rewards
systems and their impacts on organisations and concluded that adequate reward system
maximises the job satisfaction leading to increase in efficiency and effectiveness of
employee productivity.
Another researcher, Pratheepkanth (2020), found that both intrinsic and extrinsic
rewards have string positive correlation with employees’ motivation. As other HR
investigators he agrees that positive relationship between motivation and rewards leads to
increase in the job satisfaction of employees. Following up, job satisfaction has a positive
effect on the perception of job success and achievement of an employee. Pratheepkanth
also associates job satisfaction with employee productivity, commitment and loyalty to an
organisation.

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 Latham (2020), has concluded that a company should have a developed rewards
system which meets the needs and wants of employees, otherwise there would be no any
benefit from the system. While Boehm and Lyubomirsky (2019) look upon reward
system as a tool of job promotion, as rewards might motivate employees to develop and
improve their skills and competencies faster, therefore achieving career growth.
1.2 Statement of the Problem
There is increasingly a need for organization to be in a position of understanding
appropriate rewarding system that motivates their employees for higher organization
performance (Vance 2012). What appropriate rewards that should form the employment
package is currently challenging commercial banking performance (Ajila & Abiola,
2004: Aktar, Sachu & Ali, 2012).
In Nigeria various reward packages are used and these involve monetary
(extrinsic) and non-monetary (intrinsic) rewards. For example, in the context of monetary
reward salary increase is sought to be highly essential for employees’ satisfaction (URT,
2020). However, little is known in Nigeria about the effects of other reward tools on
employee and organisational performance These studies indicated in today’s
environment, employees including bank employees are motivated by both intrinsic
(internal) and extrinsic (external) rewards for greater work/ organisation performance and
that none of the two sets of reward systems should be overlooked by managers when
motivating employees for higher performance. That is, in most of these studies, each
tool /factor within both extrinsic and intrinsic reward was a highly significant factor
which affects employees’ performance.
However, most of these studies were conducted outside Nigeria. Furthermore, the
only Nigerian study by Bana and Kessy (2017) examined the relationship between staff
management and organizational performance and rewards was one of the factors but did
not examine in detail the impact of different extrinsic and intrinsic rewards on
organization performance. This research was intended to fill this gap. Therefore, this
study was examining the impact of reward systems on Employee Performance,
particularly in organization using Tuyil Pharmaceutical Industry Nigeria Limited.
1.3 Research Questions
The research questions of the study are the following:

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1. What is the most appropriate reward system to motivate staff in an organization?
2. Are there any problems militating against reward system on employee performance?
3. Are there any possible solutions to the problems militating against reward system on
employee performance?
1.4 Objectives of the Study
The objective of the study is to investigate the impact of reward system on the
employee performance using tuyil pharmaceutical Industry as the Case study. However,
in the course of this research the following objectives will be looked into:
1. to examine the most appropriate reward system to motivate staffs in an organization;
2. to investigate the problems militating against reward system on employee
performance; and
3. to proffer possible solutions to the problems militating against reward system on
employee performance
.5 Research Hypothesis
The null and the alternate hypothesis for this research work which will later be
tested in the coming chapter (Chapter Four) are as follows:
HYPOTHESIS ONE
H0: there is no appropriate reward system to motivate staffs in an organization
H1: there is appropriate reward system to motivate staffs in an organization
HYPOTHESIS TWO
H0: There are no problems militating against reward system on employee performance
H1: There are problems militating against reward system on employee performance
HYPOTHESIS THREE
H0: There are no possible solutions to be proffer to the problems militating against
reward system on employee performance
H1: There are possible solutions to be proffer to the problems militating against reward
system on employee performance
1.6 Significance of the Study
This study is based on the research made by Panagiotakopoulos (2019) whose
main objective of the research was to examined major motivational factors which
influence employees’ motivation. Panagiotakopoulos (2019), concluded that the creation

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of a reward system depends a lot on the external environment which influences
employees need and that is of vital importance to integrate employees into the process of
development and improvement of reward policies in an organisation.
Moreover, the findings of this study may be used as a foundation for other
possible researches in the sphere of rewarding such as complexity, fairness, frequency
and their impact on employee performance, motivation and job satisfaction.
1.7 Scope of the Study
The study focuses on the way reward system are being used in organization using
the Tuyil Pharmaceutical Industry, Ilorin as a case study. It also tries to find out if the
organization as ever used any motivational techniques with its employees and to know
how the employees responded to such act.
1.8 Definition of Terms
REWARD SYSTEM: employee’s compensation, usually referred to as tangible returns,
includes cash compensation (i.e., base pay, cost of living and merit pay, short-term
incentives, and long-term incentives) and benefits (i.e., income protection, work/life
focus, tuition reimbursement and allowances).
EMPLOYEE PERFORMANCE: refers to how your workers behave in the
workplace and how well they perform the job duties you've obligated to them. Your
company typically sets performance targets for individual employees and the company
as a whole in hopes that your business offers good value to customers, minimizes
waste and operates efficiently.
SALARY: A salary is a form of periodic payment from an employer to an employee,
which may be specified in an employment contract. It is contrasted with piece wages,
where each job, hour or other unit is paid separately, rather than on a periodic basis.
BONUSES: A bonus payment is usually made to employees in addition to their base
salary as part of their wages or salary.
EMPLOYEE APPREDCIATION: the act of recognizing and acknowledging an
employee's efforts, hard work, and contributions to an organization

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 CHAPTER TWO
2.0 Literature Review
2.1 Introduction
In this literature review chapter, there are incorporation of the findings of key
research studies made in the sphere of employee motivation, job satisfaction, employee
performance and reward systems structures and peculiarities.
Information used in the research was gathered from different scholarly articles,
research papers, journals, electronic libraries and reference books that bring knowledge
and clarification on the various rewarding methods that can be used to improve the
performance of the employees working in an organization.
This research paper contains not only the key variables studied in depth, but also
such sub variables, like job satisfaction and employee motivation which are necessary for
the sustenance of employee performance and productivity of the company.
2.1 Conceptual Review
2.1.1 Employee Performance
Employee performance means what an individual does and what he or she does
not do, it involves the effort they put in and the weight of their result, presence at work,
accommodative and supportive nature and timeliness of result. Giving the outcomes of
the study by, Yang (2019) on individual’s performance it shows that the way an
individual act or perform cannot be verified. Employee performance is influenced by
motivation because when employees are propelled they put in their best and at such there
will be an increase in their performance and this will lead to high productivity (Azar &
Shafighi, 2019).
Although there are different forms of intrinsic motivation, this study focuses on the well-
being of an employee, the relationship between employees and co-workers as well as
their managers as factors that can influence the productivity levels of an employee in an
organization. Intrinsic motivation, derived from an individual or from the nature of the
work itself, influences behavior, well-being, and productivity positively. These factors
will be discussed below:

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Employee well-being
In most organizations, the concept of well-being of employees has become a
matter of great interest in recent years. In today's world, the growing reliance on overall
market forces places a significant burden on wage earners and those of working age in
the delivery of goods and services. This has therefore adversely affected the workforce's
health, safety and general well-being. Hence it is not possible to underestimate a
workforce's well-being as workers also have similar needs, whether physical or
emotional. These may vary from welfare, safety, health, and a sense of being able to cope
with life. Employees are now looking for assistance from their organizations in achieving
this because a significant amount of their time and lives are expended at work. Most
business establishments around the globe understand the necessity for a healthy
workforce as they are crucial in enhancing an organization’s productivity levels and fiscal
performance. As such, most organizations take giant strides in a bid to improve the
welfare of their workforces by implementing several health and productivity programs
that is aimed at promoting the well-being of their workforce.
Well-being is defined as a concept that encompasses physical, financial and
psychological health, as well as a personal connection and a sense of belonging and not
just the absence of an ailment or injury. It is a broad ideology that takes the individual as
a whole to know about a person's physical and mental state.
Finally, in order to be successful in health and well-being programs, an organization must
be able to relate effectively to its workforce and ensure that matters of great concern that
can be described as personal to staff and their relationships are addressed. Some of these
matters may include their welfare packages, health-related behaviors, present and
eventual monetary state of affairs as well as their experiences in the place of works. It is
imperative to note that the attitude of a workforce provides several clues on how to obtain
the best health returns and investment in productivity.
Relationship with co-workers
The relationship between an employee and co-workers describes the associations
that exist on the hierarchy in an organization between equal-level workers without any
form of authority over each other. Workers who enjoy great support from their colleagues
are extremely hard-working and find their workplace friendly. Cummins (2019) stated

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that employees with a decent affiliation to their fellow employees are usually prosperous
and highly productive in the workplace even when their jobs are very stressful. This
means supporting a coworker is very important to minimize stress. Mayo et al. (2020)
also agreed that support for co-workers is vital to support workplace productivity.
Although the relationship between co-workers and managers in terms of support has
rarely been considered, the kind of relationships that a worker has in terms of support
from his co-workers have a very strong influence on his level of performance and
productivity (Schaubroeck et al. 2017).
A rational explanation of relationships between workers, whether friendly or
strictly professional, has an impression on a worker's level of efficiency and effectiveness
that are elements of productivity between members of the workforce. Existence of
effective relationships between employees and colleagues also ensures job satisfaction
(Altinoz et al., 2020).
Relationship with managers
A worker's relationship with his/her manager describes the level of relationships
that exist between employees and their superiors, i.e. managers, supervisors or bosses at
the different levels of an organization's hierarchical structure, even when managers have
the capacity or a certain level of power over them. Workers who enjoy their managers'
great support are diligent and find their workplace friendly. For example, workers who
enjoy the support of fellow workers also have personal relationships outside the
workplace and more ties with their coworkers tend to appreciate the workplace and
therefore perform extremely well and are highly productive in their work compared to
those with less support. Employees have a sense of belonging when they can comfortably
request help from colleagues to complete certain jobs that promote unity (Mitchell &
Ambrose, 2007).
Good relationships with employees are very effective in minimizing work stress
and fostering harmony among the employees of an organization. This can be
accomplished by organizing social functions to promote the trust and mutual respect-
based bond relationship with their workers if they are to attain high levels of productivity.
Managers should therefore ensure that their organizations use deliberate and well-

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structured initiatives to build foundations for strong relationships with their workforce
(Spector, 2019).
Businesses and managers have a duty to meet the needs of their workforce, and
this can be achieved by ensuring that employees are involved in decision-making
processes, receive critical feedback and credit for their conduct and performance, and
enjoy personal or friendly relationships with their managers rather than strictly
professional relationships (Sinha & Bajaj, 2019). Maintaining decent relationships with
the workforce of an organization is paramount and an effective way of closely
monitoring, evaluating and controlling the workforce's productivity gaps. It also boosts
the worker's individual efficiency, efficiency and productivity levels because when
managers take the time to build and improve relationships as well as guide workers in
their different roles, they will produce more quality work in turn.
2.1.2 Salary
Salary refers to all the monetary, non-monetary and psychological payments that
an organisation provides for its employees in exchange for the work they perform. Salary
may include extrinsic and intrinsic rewards. Extrinsic rewards are items such as financial
payments and working conditions that the employee receives as part of the job. Intrinsic
rewards relate to satisfaction that is derived from actually performing the job such as
personal fulfilment, and a sense of contributing something to society. Many people who
work for charities, for example, work for much lower salaries than they might achieve if
they worked for commercial organisations. In doing so, they are exchanging extrinsic
rewards for the intrinsic reward of doing something that they believe is good for society.
Objectives of Salary
What do organisations hope to achieve from a salary? The following are among
the most important objectives:
 To support the goals of the organisation by aligning the goals of employees with
these.
 To ensure that the organisation is able to recruit and retain sufficient number of
employees with the right skills.
 To motivate employees.

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  To align the risk preferences of managers and employees with those of the
organisation.
 To comply with legal regulations.
 To be ethical.
 To be affordable and easy to administer.
Aligning the goals of the organisation and employees
The salary should support the organisation’s goals. At the strategic level, the salary
must be consistent with the strategy of the organisation. If a strategy of differentiation is
chosen, for example, staff may receive more generous benefits, and these may be linked
to achieving certain skills or achieving pre determined targets. In an organisation that has
a strategy of cost leadership, a simple salary offering fairly low wages may be
appropriate as less skilled staff are required, new staff are easy to recruit and need little
training, so there is less incentive to offer generous rewards. The US supermarket group
Walmart competes on low cost. It recruits employees with low skills, and pays low
wages. It discourages staff from working overtime, as it wishes to avoid paying overtime
rates.
 To recruit and retain sufficient employees with the right skills
If rewards offered are not competitive, it will be difficult to recruit staff since potential
employees can obtain better rewards from competitors. Existing staff may also be
tempted to leave the organisation if they are aware that their salary system is
uncompetitive.
High staff turnover can lead to higher costs of recruitment and training of new staff.
Losing existing employees may also mean that some of the organisation’s accumulated
knowledge is lost forever. For many knowledge-based organisations, the human capital
may be one of the most valuable assets they have. High technology companies such as
Microsoft are companies that trade on knowledge, so offer competitive remuneration to
key staff.
 To motivate employees
Motivation of employees is clearly an important factor in the overall performance of
an organisation. Organisations would like their employees to work harder, and be

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flexible. The link between salarys and motivation is a complex issue that is hotly debated
in both accounting and human resource-related literature.
A well-known theory relating to motivation is Maslow’s hierarchy of needs. Maslow
stated that people’s wants and needs follow a hierarchy. Once the needs of one level of
the hierarchy are met, the individual will then focus on achieving the needs of the next
level in the hierarchy. The lower levels of the hierarchy are physiological, relating to the
need to survive (eg eating and being housed); once these have been met, humans then
desire safety, followed by love, followed by esteem, and finally at the top of the
hierarchy, self actualisation, or self fulfilment.
2.1.3 Bonus
A bonus payment is usually made to employees in addition to their base salary as part
of their wages or salary. While the base salary usually is a fixed amount per month, bonus
payments more often than not vary depending on known criteria, such as the annual
turnover, or the net number of additional customers acquired, or the current value of the
stock of a public company. Thus bonus payments can act as incentives for managers
attracting their attention and their personal interest towards what is seen as gainful for
their companies' economic success.
There are widely‐used elements of pay for performance and working well in many
instances, including when a fair share of an employees participation in the success of a
company is desired. There are, however, problematic instances, most notably when bonus
payments are high. When they are tied to possibly short-lived figures such as an increase
in monthly turnover, or cash flow generated from an isolated marketing action, such
figures often do not reflect a solid reliable win for a company, and they certainly do not
reflect a manager's lasting efforts to the company's best. Australian retail entrepreneur
Gerry Harvey, while supporting bonuses for long term company performance has said
that too many bonuses are focused on the short term. "(To say) 'just because you had a
good year this year I'll give you a 5000, 10,000 bonus', I think that's stupid,"(Robertson,
2017)
Bonuses are prone to being adjusted or even manipulated to the benefit of those
employees who are responsible for reporting them, while they are already planning their

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leave with a golden handshake. Setting up good employment contracts may be a means to
avoid that – at least to some extent – but this is rare in reality.
2.1.4 Employee Appreciation
Employee appreciation also can be defined as the act of recognizing and
acknowledging an employee's efforts, hard work, and contributions to an organization.
2.1.1.4 Types of Employee Appreciation
 Peer to peer appreciation
A team member may appreciate the work of another team member or a different
division which is good for peer appraisal. For instance, a product manager might thank
the marketing team after the successful launch and promotion of a new offering.
 Manager Appreciation
Manager appreciation is typically mandated by policies, where managers appreciate
their team members for their efforts in the organization. This can also be a type of
appreciation where senior leaders recognize an achievement.
 Event based appreciation
Positive appreciation for employees might be set off by a particular occasion, for
example, a work anniversary, the gathering of an meeting targets, or a remarkable
achievement at work.‍
 Regular appreciation
Employees can also be appreciated for simply doing their day to day job efficiently
and consistently. This is particularly relevant for support functions and domain such as
IT, admin, payroll management, etc.
 ‍Formal appreciation
This is the most common form of appreciation for employees. Employees are
recognized in email newsletters, award ceremonies, or similar formal events. There may
also be a financial component involved in these type of appreciation.‍
 Informal appreciation
Informal appreciation can be a quick pat on the back, or a shout-out on the company
chat app among other team members. This is very necessary to keep employees
motivated on a day-to-day basis.

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2.1.5 Relationship between Salary and Employee Performance
Overall organisation performance consists of the sum of performances of every
individual in a company (Kim, 2020). The salary system of a firm is used as a tool to
monitor performance of employees as well as a method to motivate employees.
Therefore, an organisation such as Normet uses salary system to stimulate the
performance of its employees. The goals and objectives of organisation are accomplished
by designing tasks and duties of employees. The efficiency and effectiveness of the
whole organisation depends upon individual effectiveness and efficiency in achieving
individual tasks and duties. From the above literature it is possible to make a hypothesis
that there is a positive relationship between salarys and employee performance.
Various studies such as Dewhurst, Guthridge, and Mohr, (2020) conclude that an
adequate salary system is critical for employee motivation both for high achievers and
low achievers. This is because salarys increase the job satisfaction among high
performers and act as an incentive for low performers. The systems may vary in different
organisations because of workforce personalities, backgrounds and preferences, hence, all
salary systems have the same objective to motivate employees for continuous
improvement, personal development and professional growth.
Another research, conducted by Shields and associates (2021), stands for the fact
that any salary system should be created based on the needs and preferences of
employees as someone’s needs may be fulfilled by monetary salary while others are
searching for promotion, appreciation, increase of responsibilities, trainings and other
types of non-monetary salarys. An efficient salary system should be flexible and contain
both monetary and non-monetary salarys to meet the expectations of all employees.
2.1.6 Salary and Employee Performance
Several studies have been conducted in Africa on the issues on salary as it affects
employee’s performance. Danso et al. (2019) carried out research work on effects of
salary on employees performance in Ghana Commercial Bank and found out that salary
systems misuses is one of the problem confronting many banks in west African region.
Similarly, Nyandema et al. (2014) examined the effect of intrinsic salary on motivation
among employees as well as the effect of extrinsic salary on motivation among
employees and concluded that both intrinsic and extrinsic salary systems affect career

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development and motivation among employees of Kenyan firms. Further, studies such as
(Bello & Adebajo, 2014; Jesca, 2014; Murphy, 2021) come into the same submissions.
Salarys can be used to improve performance by setting targets in relation to the
work given e.g. surpassing some sales targets. When the employee surpasses their target,
he or she can be given an additional amount to their salary; this will make them strive to
achieve more (Perry et al., 2021). Research has proven that when human being are
appreciated and praised they tend to improve their performance. Sometimes portion of
the retained earnings or the end of year profit can be shared to stimulate stellar
performance. This is another way an organization can apply as a salary so as to improve
performance. Praise could be shown in the organization newsletter or in meetings. When
managers take time to meet and recognize employees who have performed well, it plays a
big role in enhancing employee’s performance (Torrington & Hall, 2021). Organizations
should salary employees more often. This greatly improves performance compared to
having the salarys maybe only once a year. This is because frequent salarys are easily
linked to the performance (Thomson & Rampton, 2003). Another way through which
organizations can use salary systems to increase output is by personalizing the salary.
When salary tend to be so general, employees do not value them. Organizations can use
salary to improve employee performance by incorporating joint discussion or collective
bargaining with employees especially if there seems to be a potential conflict. Managers
should be on the lookout for employees who perform well.
2.1.7 Organizational Performance
Employee performance as proposed by scholars, it is based on the type of reward
system in place within organizations (Bari, Arif & Shoaib, 2013). A study by Anitha
(2013) suggested that employee performance is an indicator of financial or other
outcomes of the employee that has a direct connection with the performance of the
organization as well as its achievement. Hence, people in management such as top,
middle, and lower management contributes significantly in performance (Xanthopoulou
et al, 2019a). Employers found that it is difficult to understand the behavior of employees
and how to attract, retain and motivate them for a longer period in the organization as
their behavior keeps on changing.

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 In an organizational context of performance, employee performance is defined as
the degree to which an organizational member contributes to achieving the goals of the
organization. Employee performance is vital to an organization as they play as an
imperative mechanism that contributed to the success of an organization. Most
organizations can measure employee performance through the quantity of output, quality
of output, timeliness of output and labor productivity (George, 2015). What employee
does or does not do will affect the reputation of the organization. The successful of
supervising, create and empower the employees is an important basis of organization
performance (Christensen, 2021). Therefore, outcomes achieved by the employee can be
measured by using indicators that can describe an employee's pattern of performance
over time (Ying, 2014).
Organizational performance comprises the actual output or results of an
organization as measured against its intended outputs (or goals and objectives). (Richard
et al, 2019). Organizational performance encompasses three specific areas of firm’s
outcomes: (a) Financial performance (profits, return on assets, return on investment etc).
(b) Product market performance (sales, market shares, etc). (c) Shareholder return (total
shareholder return, economic value added. Specialists in many fields are concerned with
organizational performance which include strategic planners, operations, and finance,
legal and organizational development. Organizational performance is the ultimate
dependent variable of interest for researchers concerned with any area of management
(Devinney et al, 2020). This broad contrast is vital in allowing managers to evaluate
firms’ overtime and compare them with rivals. Organizational performance is the most
important criterion in evaluating organizations, their actions and environments. Yang
(2018) explains that performance of individuals in the workplace cannot be verified. He
asserts that organizations can use direct bonuses and rewards based on individual
performance, if employee performance is noticeable. Gavrea et al (2019) emphasize that
organizations have important roles in our daily lives and therefore successful
organizations represent a key ingredient for developing nations. Continuous performance
is the focus of any organization because it is only through performance that organizations
are able to grow and progress. Organizational performance is one of the most important
variables in the management research and arguably the most important indicator of

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performance. According to Njanja, Maina, Kibet, and Njagi (2013), many writers in
human resource management suggest the following indicators for measuring employee
performance and they include: quality that can be measured by percentage of work output
that must be redone or is rejected; Customer satisfaction that can be measured by the
number of loyal customers and customer feedback. Also, timeliness, measured in terms
of how fast work is performed by the employee when given a certain task;
absenteeism/tardiness observed when employees absent themselves from work; and
achievement of objectives measured when an employee has surpassed his/her set targets,
he/she is then considered to have performed well to achieve objectives Hakala, 2018;
Armstrong, 2021). This buttresses the need to measure individual performance of
employees as a way of weighing the effect the reward system has on the workforce and
by extension, the organization. In addition, It is increasingly being recognized that
planning and an enabling environment have a critical effect on individual performance,
with performance goals and standards, appropriate resources, guidance and support from
the managers all being central (Torrington, Hall & Stephen, 2018).
2.2 Theoretical Review
2.2.1 Theory of Hierarchy of Needs
One of the earliest works which explain employee motivation was conducted by
Maslow (1954). According to Armstrong (2019), Maslow’s theory of hierarchy of needs
served as a basis for other theories appeared further in history. The main idea expressed
in the theory was that there is some most basic level of needs of a human that must be
met before a person develops a strong desire or get motivated for higher level needs. In
the research context, an employee is not going to be motivated and improve performance
until the basic level of needs is fully satisfied.
Maslow also created the term "metamotivation" to describe the level of
motivation of a person who attempts to go beyond the basic needs and strives for
improvement constantly. He explained that due to the human complexity, it is not an easy
task to motivate employees, and organisations must have an efficient well-thought reward
system to be able to influence workforce job satisfaction level, commitment to an
organisation, performance and personal development (Latham, 2020).

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 Maslow theory is of vital importance for this research paper as it provides the
knowledge of an individual’s needs at different levels showing that meeting the basic
needs of a person does not guarantee motivation. Instead motivation occurs when a
person is willing to aim for improvement, thus management should target high level
needs to motivate employees for constant improvement.
2.2.2 Herzberg Two-Factor Theory
As it was already mentioned, many theories were based on the Maslow’s study of
motivation, and Herzberg’s two-factor theory is one of the most prominent ones. This
theory describes relationship between employee performance and motivation. Fredrick
Herzrberg agreed with Maslow that it is not possible to keep employees satisfied by
meeting low level needs, therefore, managers should seek to meet the higher needs of the
employees, particularly psychological needs such as appreciation and recognition. This
theory argues that managers should seek job improvements by planning personal and
professional development of employees in order for them to be satisfied that they have
significant personal and professional growth in future in their current employment
(Herzberg, 1966).
The study conducted by Herzberg, Mausner, and Snyderman (2020), identified
two types of factors of employee motivation: motivation factors which aim to motivate
employees to excel at their jobs and tasks, and hygiene factors which typically ensure that
the staff remains happy and satisfied. As a result, Herzberg created the motivation-
hygiene theory where he explained the effect of these factors. The factors that increase
satisfaction, are called the satisfier factors or the motivators, and the factors that lead to
dissatisfaction, are called the dissatisfiers or the hygiene factors.
Herzberg’s theory also considers that threat, punishment, or similar kind of
stimuli applied be managers may improve job performance, however, these methods have
a short time effect on employees and in the long run produce negative impact on
employee satisfaction and lead to decrease in performance (Stringer, Didham, &
Theivananthampillai, 2020).
Furthermore, the Two-Factor theory studies both intrinsic and extrinsic rewards
explaining that only by usage of both methods it is possible to create a balanced reward

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system which would help organisations to motivate employees and improve their
performance (Herzberg, Mausner, & Snyderman, 2020).
2.2.3 Theory of Reinforcement
The Skinner reinforcement theory is one of the oldest but the most widely used
theory of motivation. It is considered a motivation theory as well as a learning theory.
Reinforcement theory posits that motivated behavior occurs as a result of reinforces,
which outcomes are resulting from the behavior that makes it more likely the behavior
will occur again. This theory suggests that it is not necessary to study needs or cognitive
processes to understand motivation, but that it is only necessary to examine the
consequences of behavior. Behavior that is reinforced is likely to continue, but behavior
that is not rewarded or behavior that is punished is not likely to be repeated.
According to this theory employees in the organization would be inspired and
motivated through well designed reward strategies and work conditions in the
organization and backed through compensation for best performance and denying reward
for low result (Scott, 2018).Generally this theory reflect that the management of the
company can enhance and increase the performance of employees through the response
they provide to employees activity in the organization. The mechanism is providing
financial and non-financial rewards to behavior which achieved the specified goals of the
organization and punishing the undesired behavior and weak performance.
This theory is good through providing clues to motivation. Because reinforcement
theory is based on external conditions. Within the workplace, organizational management
theorists look to the environment to explain and control people's behavior. Because of
this, it may be easier to motivate a group of workers through external factors such as pay
raise, promotion, etc. Additionally reinforcement theory has an advantage over other
work motivation theories through keeping employees involved in the organization, it can
be easily applied in organization and has Impressive research support. However this
theory has its own limitation. For instance it disregards internal motivation, difficult to
identify rewards/punishments and hard to apply to complicated forms of behavior.
2.2.4 Carrot and Stick Approach Theory
This approach comes from an old story that the best way to make a donkey move
is to put a carrot out in front of him or jab him with a stick from behind. The carrot is the

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reward for moving, the stick is the punishment for not moving. For motivating people to
work more some kinds of rewards can be offered. Often this is money in the form of pay
or bonuses. There can be non-monetary reward too. The punishment can also be used to
push a desirable behaviour of employees. These can be in the form of reduction of bonus,
demotion, fear of loss of job, loss of income etc.
Though there is no reference to carrot and stick in motivation theories but still
these form basis of motivation. The control of interest environment in an organization
requires a desired behaviour of various employees. Management uses rewards as well as
punishments for enforcing a particular behaviour. The carrot, rewards, are recognized in
various theories of motivation. The performance of employees is behind certain rewards.
The employees would be motivated to improve their performance and they get financial
and non-financial incentives in return.
The stick, punishment, also pushes employees raise their performance. In order to
make the stick to work effectively, some factors may have to be kept in mind. It is
important to decide the proper time using the stick. The negative motivation can also
bring retaliation from employees. Punishment only temporarily suppresses the behaviour.
It should also be taken into consideration that stick should not become a reward for
undesirable behaviour.
Both carrot and stick should be used judiciously otherwise they will not help in
achieving the desired results.
2.2.5 Mcgregor’s Theory X and Theory Y
Douglas Mcgregor introduced these two theories i.e., Theory X and Theory Y,
based on two distinct views of human beings. He proposed, at opposite extremes, two
pairs of assumptions about human beings which he thought were implied by the actions
of the managers. Theory X deals with one extreme, based on one set of assumptions and
Theory Y, deals with another extreme based on another set of assumptions. These
theories are not based on any research, but according to McGregor, these are intuitive
deductions.
2.3 Empirical Framework
Many studies have conducted one the relation between reward management
system and employee performance in the work place. According to most of the research

[25]
result, it is possible to anticipate, explain and examine the performance of the employees
in the organization. One of the influencer or predictor of performance is the reward
system of the organization (Betelehem, 2021).
Ermias (2017) did his study to investigation whether reward system has an impact
on performance of employees at national bank of Ethiopia. His multiple regression
analysis showed there is a positive relationship between monetary and non-monetary
rewards with the perceive employee performance in the bank. But the study lacked
qualitatively analyzed result though he argued his study is triangulated based on mixed
research approach. These indicate he did not keep his research approach to be integrated
with his data analysis methods. In line with Ermias (2017) finding, Nigatu (2021)
recommended the mix of financial and non-financial reward methods is more important
to increase the employee’s performance based on his study in public financial institution.
Significant relationship between performance of employees and salary have been well
established in studies by Heneman, Kochan & Locke (1995).They indicated that financial
reward is one of the most significant variables in determining better employee
performance. Ibrar et al. (2021) explained how employee performance is influenced
through reward in private school with special reference of Malakand private school. His
study indicated that there are significant relationship between compensation and
employee’s job performance.
This study proved that there is significant relation between salary payment and
employee performance. Additionally, this study indicated from the non-financial reward
variables recognition has the highest correlation coefficient with performance. The two
authors recommended appreciation of staffs and employees are an important element of
reward to enhance employee’s performance.
This work anchored on the efficiency wage model which states that the productivity of
employees in an organization is positively correlated with the wages rates they receive.
The model has different explanations as to why this is the case. These explanations, in
turn, can be looked upon as sub-models to the efficiency wage theory (Campbell &
Kamlani, 2007; Milkovich et al., 2020).

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1. Shirking Model: If workers receive a higher pay package, the cost of losing their job
becomes equally higher and this acts as an incentive for the workers not to shirk
and risk being fired.
2. Gift-Exchange Model: A higher wage is seen by workers as a gift from the
organization and employees will want to return this gift in the form of a higher
effort.
3. Fair Wage-effort Model: If workers are paid a wage below what they perceived as fair,
they would not apply as much effort as they would have if they got a fair wage.
4. Adverse Selection Model: A wage which is above the labour-market equilibrium wage
will draw more workers to the firm, thus giving the firm an opportunity to choose
better workers from a bigger pool.
5. Turnover Model: If workers are paid a higher wage than they would get at other firms,
they are less prone to quit their jobs, thus decreasing the firm’s labour turnover rate.
The firm thus saves itself the costs of hiring and training new workers.

[27]
 CHAPTER THREE
Methodology
3.1 Research Design
Asika (2017) research design means the struggling of investigation aimed of
identifying variables and their relationship to one another. Thus it describe how the
investigation has been structured to enable the researcher generate relevant information to
reduce the identified research problem.
This chapter aims at investigating method that will be used to determine the
appropriate measurement. it also concentrate more on the source of data collected, the
research population, sampling procedure employed and sample size, the instrument used
as well as the tools for data analysis and techniques were discussed fully.
3.2 Source Of Data
According to Okeke (2020), the researcher employed two types of data in the
course of this research work, these are:
 The primary data
 Secondary data
PRIMARY DATA: These are data that contain the full research report including all
details necessary to duplicate the study. The primary data are made up of information
generated specifically for this study.
SECONDARY DATA: These are data from sources other than primary source. It is also
a data cited someone other than the user. The secondary data were obtain through
researching from Nigeria Bottling company lagos State. The secondary data were relived
upon for the literature reviewed which much reliance was out of primary sources for
demographic and psychographic questions pertaining to the study.
3.3 Population Of The Study
The term population in this research refers to the entire properties to be studied.
According to Nldeny (1994) population is sometimes referred to as the universe. It is
defined as the entire group whose characteristics are to be estimated. The population
considered in this study consists of all companies engaged in the production of goods and
services in Nigeria. Obviously, the population size is large and is practically impossible
to conduct research on the companies.
The targeted population for this research work is 100(Hundred) respondents.

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3.4 Sample Size And Sampling Techniques
The aim of the sampling techniques is to determine the number of people to be
reached. Thus, sample selection is therefore restricted to Tuyil Pharmaceutical Industry,
Ilorin plc Ilorin in Nigeria. The sampling procedure used was stratified random sampling
technique.
Sampling as it was used by Harold (2002) is an attempt to access some properties
of a large number of items by a study of a similar properties of a similar number.
The sample size of this research consist of low staff both junior, managerial and non-staff
Tuyil Pharmaceutical Industry, Ilorin, TAROYAMINE (1964) formula is used to
determine the sample size for research TARO (1964) method.
N= N1 (1+N(e)
Where n = sample Size
N = total population
E = Error Limit (0.05 on the basis of 95% confident level
I = Constant
1+N2N
Ce
1 + 100
100
(0.05) 2
100

1 + (0.0025)2 (100)
100
1.25
N = 100
3.5 Research Instruments
The instrument used in data collection in this study is questionnaire which
involves the list of questions structured using open-ended and close-ended question.
These questionnaires were structured in a manner that suggested for immediate and easy
response.
The researcher personally administered his questionnaire to the staff of Tuyil
Pharmaceutical Industry, Ilorin, Ilorin of which questionnaire was delivered and returned
to the researcher.

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3.6 Method Of Data Analysis
Descriptive statistic tools such as tables and percentages as well as interracial
statistical tool such as chi-square test were used in taking decision on effect of accounting
information system on public corporation performance in Nigeria.
3.7 Model Specification
The model of this study shall be based on the conclusion of the theoretical
framework, in an effort to establish a link between accounting information system on
Tuyil Pharmaceutical Industry, Ilorin ilorin in Nigeria. With special reference is made to
the work done by Starker and Amor (2020). Which is modified for the purpose of the
study.
This is further stated in econometric from below.
With:
Y= Economic growth.
EXCR= Exchange rate.
EXPT= Volume of export
INT= Inflation
IMP= Volume of Import
FDI= Foreign direct invstment
3.8 Historical Background of the Case Study
Tuyil Pharmaceutical Industries ltd is a small scale industry owned by one. It
manufactures Pharmaceutical product like drugs of all kinds, sterilized Water etc. The
Industry was established in 2019 with the production of six drugs (product) and was
incorporated with the RC: 278995. The industry moved to its parament site in 2015
which was commissioned by the formal governor of Kwara State and Former Director
general of NAFDAC in person of Dr. Bukola Saraki and Prof. Dora Akunyili
respectively. It is situated at No 22 New Yidi Road Ilorin, Kwara State.
Presently, the industry has branches (depot) almost all over the country. Its
products cut across the country and beyond. The number of its product is over a hundred
(100) products and employed over six hundred (600) staff both skilled and unskilled. All
the resources, that is raw material used in the industry and Nigeria made except the
chemicals but in the industry are Nigeria made except the chemicals but interims of
manpower, they are all indigene of this country. Seventy percent (70%) are Kwara
indigene While thirty percent (30%) are non-indigene. With this, poverty level in Kw,ara
State has been reducing drastically.
Tuyil Pharmaceutical industries Limited has been dedicated to the production of
top quality product for Nigerians toward sickness and diseases reduction over 15 years
and the super brain remains.

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 CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
This chapter thoroughly examined and analyzed the data on the sampled
respondents on the impact of reward system on employee’s performance in Tuyil
Pharmaceutical Industry, Ilorin. The findings of this research study and the subsequent
evaluation carried out on the responses reflect the key areas of training and development
it’s challenges on employee performance. The reward is more important of any nature of
business, organization, institution, schools, very beneficial for the employee’s job
performance. It is natural process that human performance is based on motivation and
motivation can be concerned in reward on this increased with rewards as better
performance is compared to absent of reward.
4.2 Data Presentation, Analysis & Interpretation
Table 4.1: Distribution of the respondents by sex
SEX RESPONDENTS PERCENTAGE
Male 60 60%
Female 40 40%
Total 100 100%
Source: Research Question (2024)
The above table shows the sex distribution of the respondents at Tuyil
Pharmaceutical Industry, Ilorin. Obviously 65% of the respondents were males, while the
remaining 35% of the respondents were females.
Table 4.2: Distribution of respondents by age
AGE RESPONDENTS PERCENTAGE
20-30 years 10 10%
31-40 years 60 60%
41-50 years 20 20%
51 years and above 10 10%
Total 100 100%
Source: Research Question (2024)

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 The above table shows below the 10 or 10% of the respondents agreed between
31-40 years, 20 or 20% of the correspondent also agreed between 51 years and above.
Table 4.3: Distribution of respondents by marital status
MARITAL STATUS RESPONDENTS PERCENTAGE
Single 30 30%
Married 50 50%
Divorce 20 20%
Total 100 100%
Source: Research Question (2024)
Table 3 shows that 30 or 30% of the respondents were single, 50 pr 50% were
married, while 20 or 20% were divorced. The table also shows that majority of the
respondents were married
Table 4.4: Distribution of respondents by educational qualification
OPTION RESPONDENTS PERCENTAGE
O’level 20 20%
ND/NCE 40 40%
HND/B.SC 34 34%
M.SC and above 6 6%
Total 100 100%
Source: Research Question (2024).
Table 4 shows that 20 or 20% of the respondents WAEC, 40 nor 40% of the
respondents had ND/NCE, 34 or 34% of the respondents have HND/B.sc, while 6 or 6%
of the respondents are MSC. This shows that those having HND/NCE were more
qualified than others.
Table 4.5: Distribution of respondents by working experience
OPTION RESPONDENTS PERCENTAGE
5-10 years 40 40%
10-20 years 50 50%
30-40 years 10 10%
Total 100 100%
Source: Research Question (2024)

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 Table 5 shows that 40 or 40% of the respondents were years between 5-10 years,
50or 50% of the respondents were years between 10-20 years which shows that 10-20
years were more qualified than others.
SECTION B
Table 4.6: Has reward system bought success in your organization?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above table, all the respondents believe that reward system brought
success into their organization.
Table 4.7: Does the adoption of rewards system automatically increase workers
performance?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above table, all the respondents believe that there is a relationship
between workers motivation and their performance, while none of the respondents say
No to the statement.
Table 4.8: Do you think you perform well on your job if you are well rewards?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above table, it shows that all the respondents think that can perform
well their job if they are well motivated.

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Table 4.9: Are there any different in the way staffs are treated in your organization?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above table, it shows that the respondents believe that there is a
different between the way staffs are treated in the organization.
Table 4.10: Does the effective reward system increase worker performance?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024)
From the above table, it shows that 100% of the respondents believed that the
effective of motivation increase employees performance.
Table 4.11: If yes how effective is ?
OPTION RESPONDENTS PERCENTAGE
Very effective 100 100%
Not effective - -
Total 100 100%
Source: Research Question (2024)
Table 11 shows that 100% of the respondents believed that is very effective,
while none of them disagreed with the statement.
Table 12: Is there any changes in the performance of the workers as a result of
reward system?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).

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 Table shows that 100% of the respondents believed that there is changes in
performance of the workers as a result of reward system, while none of the respondents
disbelieve with the statement.
Table 13: Does your organization clearly define trade union position of its
employee?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above , it shows that 100% of the respondent agreed that the
organization clearly define trade union, while none disagreed.
Table 14: Does rewards of workers is relevance and indispensable to your
organizational higher productivity?
OPTION RESPONDENTS PERCENTAGE
Yes 100 100%
No - -
Total 100 100%
Source: Research Question (2024).
From the above table, it shows that all respondents agreed with the statement and
none of them disagreed.
4.3 DISCUSSION OF FINDINGS
Danish and Usman (2020) investigated reward system as a method of creating
pleasant and favourable working conditions for employees, thus motivating workforce to
maximise productivity and deepen loyalty to an organisation. Moreover, they point out
that performance recognition leads to the creation of high working moral among
employees which contributes to companies’ successful operation on the market.
A well-thought-out reward system may prevent employee burnout which is
experienced by almost all types of employees at all levels. Burnouts strongly influence
employees in a negative way reducing their job satisfaction as well as affects motivation
and the whole working process (Schaufeli and associates, 2002).

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4.4 HYPOTHESES TESTING
Hypothesis is a set of ideas, principles and opinions that is based on tentative
statement which can be subjected to further investigation and verification. The
significance of hypothesis is to statistically test and discuss the reliability and validity of
the hypotheses. However, hypotheses testing is a vital aspect of social and educational
fields as it suggests explanation for certain facts and relationship between an independent
variable and a dependent variable. For this research, Pearson’s Chi Square is employed to
determine if the null hypotheses are to be accepted or rejected.
The quantity X2 describes the magnitude of the discrepancy between theory and
observations. This is a test of statistical significance which is used to test the
significance of difference between observed and expected frequencies or ratios. The
Chi-square test is one of the most important and useful of all the tests of significance
used in statistical methods including bio statistics. The general formula of X 2 is as
follows:
X2 = ∑ (0-E)2/E. where,
∑ = summation,
0 = observed frequencies
E = expected frequencies
The four null hypotheses to be tested are:
i. There is no significance relationship reward system and employee
performance in Tuyil Pharmaceutical Industry, Ilorin
ii. Reward system is not the main problem facing employee performance in
Tuyil Pharmaceutical Industry, Ilorin
iii. Reward system has no positive effect on employee performance in Tuyil
Pharmaceutical Industry, Ilorin.
Hypothesis I
H0: There is no significance relationship reward system and employee performance
in Tuyil Pharmaceutical Industry, Ilorin

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 i. Table 1:table showing the manually computed value of Chi-square, degree of
freedom, observed value, expected value and p0.05 value.
Statistical variables Observed Expected X2-value P0.05
Reward System
Employee’s performance 179 140 10.86 9.488

P-value (sig) = 9.488 at 95% alpha level and degree of freedom of 4

Decision Rule: From the result above, the P-value at 95% (0.05) level of confidence is
9.488at 4 degree of freedom. This means that the P-value is less than the calculated chi-
square, and this will result in rejecting the null hypothesis and accepting the alternative
hypothesis.
Hypothesis II
H0: Reward system is not the main problem facing employee performance in
Tuyil Pharmaceutical Industry, Ilorin
Table 2: Table showing the manually computed value of Chi-square, degree of freedom,
observed value, expected value and p0.05 value.
Statistical variables Observed Expected X2-value P0.05
Reward System 170 140 6.428
9.488
Employee’s Performance Index
P-value (sig) = 9.488 at 95% alpha level and degree of freedom of 4
Decision Rule: From the result above, the P-value at 95% (0.05) level of confidence is
6.428 at 4 degree of freedom. This means that the P-value is greater than the calculated
chi-square, and this will result in rejecting the alternative hypothesis and accepting the
null hypothesis.
Hypothesis III
H0: Reward system has no positive effect on employee performance in Tuyil
Pharmaceutical Industry, Ilorin.
Table 3: table showing the manually computed value of Chi-square, degree of freedom,
observed value, expected value and p0.05 value.
Statistical variables Observed Expected X2-value P0.05

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Reward system 163 140 1.20 9.488
Employee Performance
P-value (sig) = 9.488 at 95% alpha level and degree of freedom of 4
Decision Rule: From the result above, the P-value at 95% (0.05) level of confidence is
1.207 at 4 degree of freedom. This means that the P-value is greater than the calculated
chi-square, and this will result in rejecting the alternative hypothesis and accepting the
null hypothesis.

[38]
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OFFINDINGS
This chapter gives a summary of the study with conclusions based upon the
results of the study and recommendations for the way forward.
This research examined the impact of reward system on employees performance,
a case of Tuyil Pharmaceutical Industry, Ilorin. The research had the objectives to find
out how reward system and performance of employees contribute to the achievement of
the goals of the Company. Again it found out whether there were organizational issues
that constrain training and development in the Company. Furthermore it investigated how
training and development needs of employees were determined.
To achieve these objectives a sample of 50 senior staff members were selected
and questionnaire were administered. This was further supported with an interview of the
rector, registrar and finance officer of the Company. The study revealed the following
interesting findings:
Firstly total respondents representing 100% indicated that performance and
reward system contributed to achieving effectiveness and efficiency of A – Poly goals.
Additionally this same percentage mentioned that performance and reward system has
traditionally been used to ensure that, the right person is in the right job at the right time.
Again the total respondents representing 100% said that there were organizational issues
constraining training and development at Tuyil Pharmaceutical Industry, Ilorin.
Furthermore, 60% of the sampled employees admitted that, the impact of reward
system on their work performance was excellent. They indicated also that, employees
performance content was relevant to achieving their personal needs, goals and self
development. Below are the summary of findings itemised:
A large number (60%) of the sampled employees admitted that impact of reward
system on employees performance their work performance was excellent.
The study also revealed the performance content was relevant to achieving their
personal needs, goals and self development.

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 Total respondents representing 100% all indicated that reward system and
employees performance contributed to achieving effectiveness and efficiency of Tuyil
Pharmaceutical Industry, Ilorin goals.
Regarding analysis on the organizational issues constraining reward system at
Tuyil Pharmaceutical Industry, Ilorin, total respondents representing 100% indicated that
there were organizational issues constraining with the employees performance.
5.2 CONCLUSIONS
Based on the results of the study, it became clear that reward system on
employees performance strategy was a haphazardly carried out activity at Tuyil
Pharmaceutical Industry, Ilorin. Although the respondents were aware of the various
aspect, there was no strategic framework in place as the basis for an operational plan for
the strategy even though all respondents indicated that reward system and employees
performance was part of the strategic business plan process of Tuyil Pharmaceutical
Industry, Ilorin.
Furthermore, it can be concluded that clear human resource management in
general, and employees performance in particular at Tuyil Pharmaceutical Industry,
Ilorin, should become more closely tied to the needs and strategies of Tuyil
Pharmaceutical Industry, Ilorin. As this occurs, reward system at Tuyil Pharmaceutical
Industry, Ilorin will be the thread that ties together all other activities and integrates these
with the rest of the departments.
It became clear from respondents that the major organizational issue constraining reward
system on employees performance at Tuyil Pharmaceutical Industry, Ilorin was lack of
top management support for the programs. Therefore Tuyil Pharmaceutical Industry,
Ilorin in its attempt to enhance the performance of the employees and the reward system
which must endeavour to ensure effective reward system strategies across all
departments.
5.3 RECOMMENDATIONS
Based on the findings and conclusions, the following recommendations are
outlined for addressing challenges identified as well as ways of improving reward system
on employees at Tuyil Pharmaceutical Industry, Ilorin:

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 Reward system and employees performance should be seen not only as the thread
that ties together all human resource practices, but also as the instrument for establishing
and signalling when and how work practices should change. In other words, employees
of Tuyil Pharmaceutical Industry, Ilorin should take on the role of organizational change
agents (Beer & Walton, 1987). To be effective in this role, the HR manager will need to
create a framework for making HR decisions based on Tuyil Pharmaceutical Industry,
Ilorin vision and strategicplan.
In order to position Tuyil Pharmaceutical Industry, Ilorin for success,
management must empower departments in the various branches to be engaged in
performance of employees on reward system. Corporately, three key directions have been
identified to assist management in managing the workforce changes. They include:
Building Our Potential
Strengthening Our Competitiveness
Renewing Our Workplace.
The purpose of this is to ensure that Tuyil Pharmaceutical Industry, Ilorin
workforce and strategic objectives are aligned to guarantee the delivery of quality
programme and services to the public, and that the training would assist in positioning
Tuyil Pharmaceutical Industry, Ilorin for the future. Through a collaborative process,
each departments hould develop its own employees of the performance and reward
system plan, which outlines its critical strategic issues for the next 3 – 5 years as well as
proposed strategies to address those issues.
Some key examples of how departments can plan for the future reward system
must be outlined in a document and should be used to help mitigate any negative impacts
as a result of demographics, Tuyil Pharmaceutical Industry, Ilorin priorities and
competency requirements. The documents can also help ensure that Tuyil Pharmaceutical
Industry, Ilorin departments have what they need to get the job done, and that there is
efficient matching of skills and competencies to departmental tasks, requirements and
outcomes.
To better compete in the global market, Tuyil Pharmaceutical Industry, Ilorin will
need to create and implement corporate strategies to promote itself as a “preferred
employer” – investing in progressive HR policies and programs with the goal of building
a high-performing organization of engaged people, and fostering and creating a work
environment where people want to work, not where they have to work.

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employee’s motivation and satisfaction: an empirical study.”
International Review of Business Research Papers, 5 (4), 270-279.
Armstrong, Reilly, P, & Brown D, (2020),”increasing the effectiveness of reward
management,” Employee Relations, Emerald Group, (33), 2, 106-120.
Bishop, J. (1987). “The recognition & Reward of Employee Performance.” Journal of
Labor Economics”, 5 (4), 36-56.
Bourne,M, (2017), “ managing through measures a study of impact on performance,”
Journal of Manufacturing Technology Management, (16) 4, 373- 395.
Fareed E,abidan (2019), “The Impact of Rewards on Employee’s Job Performance and
Job Satisfaction,” management and administrative science, (2), 5 ,431-442.
Farooqui, S, & Nagendra, A, (2014). “The Impact of Person organization Fit on Job
Satisfaction and Performance of the Employees,” Procedia Economics and
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Grooy, W, brink, D, V, M, H, (1999), “job satisfaction of older worker,” International
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performance implication for marketing education, Marketing Intelligence &
Plannin, (27) 1, 25-47.
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Group Publishing Limited, (8),3, 179-185

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 APPENDIX
Kwara State Polytechnic, Ilorin.
Department of Business Administration and Management,
P.M.B 1375,
Ilorin,
Kwara State.

The Manager,
Tuyil Pharmaceutical Industry
Ilorin.
Dear Sir/Ma,
LETTER OF INTRODUCTION
I am AJAYI FATHIA OPEYEMI a final year student in the department of
Business Administration and Management in Kwara State Polytechnic, Ilorin.
As a part of the conditioner for the award of National Diploma (ND). I am conducting
research on: IMPACT OF REWARD SYSTEM ON EMPLOYEES PERFORMANCE (A
CASE STUDY OF TUYIL PHARMACEUTICAL INDUSTRY).
I shall be very grateful if you will kindly provide answers to the attached
questionnaires as objectively as possible.
The information you provide will be treated as highly confidential and will not be
described to any person.
Thanks for your anticipated co-operation

Yours faithfully,

AJAYI FATHIA OPEYEMI

ND/22/BAM/FT/002

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SECTION A: BIO DATA OF RESPONDENTS
1. Distribution of the respondents by sex: male ( ), Female ( )
2. Distribution of respondents by age: 20 – 30 Years ( ), 31 – 40 Years ( ),
41 -50 Years ( ), 51 Years and Above ( )
3. Distribution of respondents by marital status: Single ( ), Married ( ), Divorce (
)
4. Distribution of respondents by educational qualification: O’Level ( ), ND/NCE
( ), HND/.B.SC (), M.SC and Above ( )
5. Distribution of respondents by working experience: 5 – 10 Years ( ), 10- 20
Years ( ), 30 -40 Years ( )
SECTION B: RESEARCHED BASED QUESTIONS
6. Has reward system bought success in your organization? Yes ( ), No ( )
7. Does the adoption of rewards system automatically increase workers
performance? Yes ( ), No ( )
8. Do you think you perform well on your job if you are well rewards? Yes ( ),
No ( )
9. Are there any different in the way staffs are treated in your organization? Yes (
), No ( )
10. Does the effective reward system increase worker performance? Yes ( ), No ( )
11. If yes how effective is ? Very Effective ( ), Not Effective ( )
12. Is there any changes in the performance of the workers as a result of reward
system? Yes ( ), No ( )
13. Does your organization clearly define trade union position of its employee? Yes (
), No ( )
14. Does rewards of workers is relevance and indispensable to your organizational
higher productivity? Yes ( ), No ( )

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