CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

It is a common know1edge that organization be it business concerns, mutual benefit associates, required their employees or workers to perform well and achieve its aims. The various forms of behavior and attitudina1 disposition which organizations require of their employees in order to actualize set goals depend on the kind of reward and incentive existing in the organization.

Organization reward 'system refers to the ways and modalities by which workers in an organization can be motivated or individual to put more efforts that will lead to the attainment of the organizational goals. It is also seen as those motivational tools which an organization adopts to reward their workers for high or improve productivity.

These rewards or incentives vary from one organization to another and they include the following: advancement opportunity in the company, job security, good salary/wages, adequate medical facilities, canteen services, pension scheme, credit for the job one does (recognition) vacation and holiday practice, housing, transport, company altitude towards employees physical working condition such as office accon1modation etc.

Management involves motivating people and any human productivity inevitably leads to the question of incentives and rewards. To most people an incentive implies money or any reward but this is not necessarily so. Incentives and reward may be financial and non-financial. It has to be mentioned here that incentive and reward are used for four main purposes: to persuade people to come to work, to encourage people to work harder while they are at work, to help people to identify themselves with the objectives of the organization, and to show management appreciation of the employee's contribution to the survival of the organization.

It is however a common problem that the refusal of employee's or management to meet the needs of the employee's has always caused discontent. According to Daris (2010), the surest signs of deteriorating condition in an organization is job dissatisfaction, the result of which are grievances. low productivity, disciplinary problems and other organization difficulties. In essence, various studies have shown that there is relationship between reward and productivity in an organization. A well package incentive system coupled with appreciation reward has a tendency of influencing employees in the organization. In fact, with increased productivity through incentives and reward system, workers will be more satisfied with the job and, hence put in their utmost best into achieving organization goals and effectiveness. However several writers have come to associate personal productivity with the type of reward and incentives available in the organization as well as the satisfaction of the needs of the employees. The most need of the employees are met within the organization through appropriate reward and incentives, the more the like hood that they would be motivated to work and thus satisfy the needs of the organization.