Reward Management and Employee Performance of Selected Food and Beverages Manufacturing Companies in Lagos State, Nigeria

Abstract

This study evaluates the effect of reward management on employee performance of selected food and beverages manufacturing companies in Lagos State, Nigeria. Reward management was measured using Pay, Recognition, while Employee Performance was measured using Employee Productivity, Job Satisfaction. In the manufacturing industry, the performance of the food and beverages manufacturing companies has been relatively poor. The food and beverages companies do not always follow the reward plans and programs. Therefore, prevailing issues such as poor payment plan, lack of employee recognition, resulting in low employee productivity, job dissatisfaction causing an increase in business failure.

The population of this study consist of employees of the five selected food and beverages manufacturing companies quoted on the Nigeria stock exchange market (Cadbury Plc, Unilever Plc, Dangote Sugar Refinery, PZ Cussons, Honeywell Plc) which amounts to six thousand and twenty-six employees. The study used survey research design, with the sample size of 519 which was determined with the use of Taro Yamane formula from the population of the study. A well-structured questionnaire was validated, data was analyzed using descriptive statistics and simple linear regression analysis using aid of Statistical Package for Social Sciences (SPSS) version 25.0 software to test the hypotheses. The Cronbach's alpha reliability of the scale for all the variables were greater than 0.70.

Findings revealed that there was a statistically positive significant effect of pay and employee productivity of selected food and beverages manufacturing companies in Lagos State (β = 0.105, t = 5.302, r= 0.254, r² =0.065, p<0.05); a significant effect of recognition and job satisfaction (β = 0.244, t = 7.536, r= 0.350, r² =0.123, p<0.05).

The study concluded that reward management have a positive and significant effect on employee performance of selected food and beverages manufacturing companies in Lagos State, Nigeria. The study therefore, recommends that the Nigerian food and beverages industry should employ strategies to properly implement employee reward procedure in order to ensure that employees are committed, corporate image is increased, increased employee productivity and profitability.e