INVESTIGATING THE EFFECT OF PERFORMANCE REWARD SYSTEM ON PRODUCTIVITY OF EMPLOYEES IN MANUFACTURING ORGANIZATIONS IN BAYELSA STATE NIGERIA

Abstract

The study investigate the appraisal-based reward system affects the performance of employees and consequently impacts the productivity of the organization. Against this backdrop, this study investigates the effects of performance appraisal system on the productivity of the workers in selected organizations in Bayelsa state, Nigeria by providing answers to these questions; to what level does performance appraisal-based reward system improves the motivation of employees of selected organizations in Bayelsa State Nigeria? To what level does performance appraisal-based reward system improves the efficiency of employees of selected organizations in Bayelsa State Nigeria? To what level does performance appraisal based reward system increase employees’  rate of making quality decisions in selected organizations in Bayelsa State Nigeria? To answer these questions, structured questionnaire was designed and used for data collection. Hence, data was sought from the three case study manufacturing companies based in Yenagoa local Government of Bayelsa state which include: Dan Furniture, Boritoni Blocks and Top Nylon Company by means of questionnaire. The questionnaire was optimally structured, effectively designed and meticulously administered based on Census approach to the entire 54 employees made up of 8 mangers and 44 normal employees from the three case study manufacturing organizations in Yenagoa Local Government of Bayelsa state. The analysis of the survey and the overall result obtained showed that that performance appraisal-based reward system improves employees’ productivity by improving the three elements of productivity (motivation, efficiency and quality decision making) in selected organizations. Given this, it is therefore recommended that Organizations, especially manufacturing companies should adopt the performance appraisal based reward system for their employees.