ORGANIZATIONAL REWARD AND PERFORMANCE MODEL

The model above reveals that when an organization has a favourable reward policy which is clearly reflected through good salary, good welfare package, training and development, Job security, employees participation and employees ownership scheme, it will induce the employees to be committed to the goals of the organization. On the other hand, when employees are dedicated to their duties as a result of favourable organizational policy, it will lead to enhanced employees performance, which in turn leads to improved organizational performance and stability.

In contrast with Herzberg’s Two-Factors Theory (1957), while this study agrees with Herzberg, that company policy, administration, technical supervision, working conditions etc, all are hygiene factors, it (the study) vehemently oppose the postulation by Herzberg, that money is a hygiene factor, but rather posits that in developing countries especially in West Africa, Nigeria in focus, money could be said to be the prime motivator to over 90% of the average workers.

§  If organization’s reward policy is favourable, it will help to attract and retain competent workers who have the necessary ability, experience, skills, commitment and the zeal to succeed, when these occurred, it will lead to enhanced employees cum organizational performance and stability.

§  Poor reward a policy by many organizations has led to the employment of low quality employees by many organizations and this has led to both low employees and organizational performance and conflicts.

§  The perennial low performance among organizations all over the world has led to the global issue of downsizing or rightsizing by organization as a way of repositioning and re-engineering organizations.