REWARD SYSTEM AND EMPLOYEE PERFORMANCE(A STUDY OF EKO SUPREME RESOURCE LTD)

Abstract

The study examines the relationship between reward systems and employee performance, emphasizing the critical role of both financial and non-financial rewards in enhancing organizational productivity. In today’s competitive business environment, organizations must design effective reward systems that not only attract and retain talent but also motivate employees to achieve superior performance. The study adopts a qualitative approach, relying on secondary data from books, academic journals, and scholarly articles to analyze the concepts of reward systems, their types, theoretical underpinnings, and challenges in implementation. Findings reveal that reward systems are strongly linked to motivation, job satisfaction, and commitment, which ultimately influence employee performance. Theories such as Maslow ’ s Hierarchy of Needs, Herzberg ’ s Two-Factor Theory, Expectancy Theory, and Equity Theory provide valuable insights into how rewards stimulate employee behavior and performance. The study also highlights that a poorly designed reward system may lead to dissatisfaction, high employee turnover, and reduced productivity. The paper concludes that an effective reward system must strike a balance between financial incentives such as salaries, bonuses, and allowances, and non-financial rewards such as recognition, career development, and work-life balance. It recommends that organizations ensure fairness, transparency, and alignment of rewards with organizational goals to maximize performance outcomes. It is further recommended that the organization place emphasis on training and developing its supervisors to enable them to provide effective support to their respective teams.