REWARD SYSTEM AND EMPLOYEES’ COMMITMENT (A STUDY OF NESTLE NIGERIA PLC)

ABSTRACT

This research work examined Reward System and Employees’ commitment (a study of Nestle Nigeria Plc). The specific objectives were to establish the relationship between extrinsic reward and employees’ affective commitment, to establish the relationship between extrinsic reward and employees’ continuance commitment, to examine if intrinsic reward influences employees’ affective commitment and lastly to investigate if intrinsic reward enhance employees’ continuance commitment. In order to achieve these objectives, the study adopted quantitative research design while the population was employees’ of Nestle Nigeria Plc. The sample size was 120 employees of Nestle Nigeria Plc obtained using convenience sampling technique. Chi-square was used as the statistical tool for testing the postulated hypotheses. Findings showed that there is extrinsic reward has significant influence on em2loyees’ affective commitment. Also, there is extrinsic reward has impact on employees’ continuance commitment. Finally, there is significant relationship exists between intrinsic reward and employees’ affective commitment. There is significant relationship between intrinsic reward and employees’ continuance commitment. It was therefore recommended that there is Organizations should plan proper extrinsic and intrinsic rewards to their employees in Nestle Nigeria Plc. Organizations must have to emphases on employee’s satisfaction and commitment level. Excess of intrinsic or extrinsic rewards could also be harmful for the organization because these rewards can increase the fake needs of employees. Organizations should identify the most important motivational factors, as perceived and preferred by employees, and design appropriate reward systems to meet employee needs. Organizations should include employees in the process of reward system development. Employees should have frequent opportunities to provide feedback on the company reward systems.