Organizational Reward System And Employee Satisfaction In Insurance Firms In Nigeria

Authors

  • Dr Omoankhanlen Joseph Akhigbe Department of Management Faculty of Management Sciences University of Port Harcourt Rivers State – Nigeria
  • Osawe Becon Kehinde Department of Management Faculty of Management Sciences University of Port Harcourt Rivers State – Nigeria

DOI:

https://doi.org/10.15520/sslej.v3i3.2082

Keywords:

Reward System, Promotion, Fringe Benefit, Incentives, Salary, Employee Satisfaction

Abstract

This work strive to empirically test the correlation between organizational reward system as it relate to salary, promotion, fridge benefit and incentives on employee satisfaction of insurance companies in Port Harcourt Nigeria. The accessible population was 223 employees of ten (10) firms which was selected through systematic sampling techniques from the insurance industry in Rivers state. The study adopted the cross section research design. The Taro Yamene’s formula was applied to determine the sample size; aggregate of 147 employees was derived. Using the Spearman Rank Order Correlation Coefficient, we discovered that significant-relationship exists between organizational reward system and employee satisfaction. From the findings, it was recommended that Management of insurance firms should ensure that their salaries are encouraging in comparison with what is obtainable in the industry so as to achieve employee satisfaction. Thereafter, contribution to knowledge and suggestion for further study was provided.

References

1. Ali, A.A; Edwin, O., &Tirimba, O.I, (2005). Analysis of extrinsic rewards and employee satisfaction; case of Somtel Company in Somaliland. International Journal of Business management and Economic research. 6(6), 417-435. 2. Ali, R., & Ahmed, M. S. (2009). The impact of reward and recognition programs on employee’s motivation and satisfaction, a correlational study, department of management sciences, Attock Campus, Pakistan. 3. Armstrong, (2007). Employee reward management and practice. London; Kogan page. 4. Armstrong, M. (2006). A Handbook of Human Resources Management Practice (10th ed). London: Kogan page ltd 5. Armstrong, M. (2009). A handbook of human resources management practice (8th edition). London: Koyan Page ltd. 6. Arnold, A. (2013). The best employee incentives, demand media, texas, Houston Chronicles 7. Artz, B. (2008). The role of firm size and performacne pay in determining Employee Job Satisfaction. Labour: Review of Labour Economics and Industrial Relations, (22) 2, 36-43. 8. Artz, B. (2010). Fringe benefits and job satisfaction. Department of Economics, University of Wisconsin-Whitewater, working paper 08 – 03. 9. Barbara, R., Bucklin, H. M. & Alyce, M. D. (2003). The effect of individual monetary incentives with and without feedback. Journal of organisational behaviour management 23(2/3), 64 – 94. 10. Barton, G.M. (2012). Recognition at work. Scotts-dale; World at work. 11. Bowen, D.,& Ostroff, C. (2004). Understanding HRM-firm performance linkages: The role of the strength of the HRM system. Academy of management review, 29, 203 – 221. 12. Campbell, D. J., Campbell, K. M. & Chia, H. (1998). Merit pay, performance appraisal and individual motivation: an analysis and alternative, department of organisational behaviour, National University of Singapore. 13. Clark, A., (2001). What really matters in a job? Hedonic measurement using quick data, Labour economics 8, 22-42 14. Cole, G. A. (2002). Personal management, London, Aldine palace. 15. Condly, S. J., Clark, R. E. & Stolovitch, H. D. (2003). The effects of incentives on workplace performance: a meta-analytic review of research studies. Performance improvement quarterly, 16(3), 46 – 63. 16. Coon, D., & Mitterer, J. O. (2010). Introduction to psychology: gateway to mind and behaviour with concept maps. Belmont, CA: Wadsworth. 17. Danish, R.Q, & Usman, A., (2010). Impact of reward and recognition and motivation; An Emperical study from Pakistan. International Journal of Business and Management, 5(2), 159-167. 18. Deeprose, D. (1994). How to Recongnize and Reward Employees. AMACOM: New York, USA. 19. Erasmus, B., Van Wyk, M., & Schenk, H. (2001). South African Human Resource Management (2nd edition) cape town Juta is company ltd. 20. Fajana, S. (2002). Human resource management: An introduction. Lagos: Labofin and Company. 21. Herzberg, F., Mausner, B. &Snyderman, B. B. (1959). The motivation to work. New York; Wiley. 22. Heskett, J. L., Jones, T.O., Loveman, G. W., Sasser, W. E & Schlesinger, L. A. (1994). Putting the service-profit chain to work. Harvard business review, 72(2); 76-84. 23. Heywood, J.S., & Wei, X., (2006). Performance pay and job satisfaction. Journal of Industrial relations 48, 523-540. 24. Hulin, C. L., & Judge, T. A. (2003). Job attitudes in W. C: Borman, D. R. Ligen, & R. J. Klimoski (Eds), handbook of psychology: Industrial and organisational psychology, 255 – 276. 25. Hunter, W., & Tietyen, D. (1997). Business to business marketing. Creating a community of customers. Lincolnwood-Illinois; McGraw-hill professional. 26. Iqbal, M. S. Malik, M. I. & Zahid, M. A. (2011). Employee work satisfaction and work-life balance: A Pakistani perspective. Interdisciplinary journal of contemporary research business, 3(5), 606 – 616. 27. Kosteas, V.D., (2012). Job Satisfaction and Promotion. Cleveland State University, Cheveland 28. Lawler, E. (2003). Treat people right. San Francisco; Jossey-based inc. 29. Lazear, E. P. (2000). Performance pay and productivity. American Economic review, 90; 1346 – 1361. 30. Locke, E.A., (1969). The Nature and Causes of Job Satisfaction. In M.D. Dunnette (Ed.), Handbook of Industrial and Organisational Psychology, 1297-1343. Chicage: Rand McNally. 31. Luthan, F. (1998). Organisational behaviour (8th ed.) Boston, McGraw-Hill/Irwin. 32. hospital effectiveness and efficiency”, Research in Medical Sciences, 8(3), 85-89. 33. Malik, M.E., Danish, R.Q, & Munir, U, (2012). The Impact of Pay and Promotion on job Satisfaction; Evidence from higher education Institutes of Pakistan. American journal of economics 10, 6-9. 34. McCausland, W., Pouliakas, K. & Theodossiou, I. (2005). Some are punished and some are rewarded: a study of the impact of performance pay on job satisfaction. International journal of manpower, 26; 636 – 659. 35. Misener, T.R., Haddock, K.S., Gleaton, J.U. and Ajamieh, A.R. (1996). Toward an international measure of job satisfaction. Nursing Research, 45, 87-91. 36. Mosadeghrad, A.M. (2003), The role of participative management (suggestion system) in hospital effectiveness and efficiency”, Research in Medical Sciences, 8(3), 85-89. 37. Mitchel, T. R., & Lason, J. R. (1987). People in organisation (3rd edition). New York; McGraw-Hill. 38. Munap, R., Badrillah, M. I. M., & Rahman, B. A. (2013). Organisational rewards system and employees’ satisfaction at Telekom Malaysia Barhad. Journal of educational and social research. 3(3), 281 – 288. 39. Nancy, C. M. (1977). Satisfactions in the white – collar job. New York. Ayer Publishing. 40. Nelson, B. (2003). Money is not the root of all motivation; health care registration, 12(10), 7 – 9. 41. Olubusayo, F. H., Stephen, I. A. & Maxwell, O. (2014). Incentives packages and employees’ attitude to work; A study of selected government parastatals in Ogun State. South-West, Nigeria. International journal of research in business and social science, 3(1), 63 – 74. 42. Parker, O. and Liz W. (2001). Pay and Employee Commitment: The Missing Link.Ivey Business Journal. 3(7), 89-97. 43. Rajah, S., (2014). Job Satisfaction and Motivation; What are the differences among these two? European Journal of Business and Social Sciences. 3(2), 94-102. 44. Rao, V. S. P. (2005). Human resource management – text and cases, (2nd edition). New Delhi, excel books. 45. Robbins, S. P. (2005). Organisational behaviour: New jersey: prentice hall. 46. Robbins, S. P., Judge, T. A. & Sanghi, S. (2008). Organisational behaviour, Pearson, Delhi, practice hall. 47. Rynes, S. L., Colbert, A., & Brown, K. G. (2002). HR professionals’ beliefs about effective human resource practices: Correspondence between research and practice. Human Resource Management, 41(2), 149–174. 48. Rynes, S., & Gerhart, B. (2000). Compensation in organizations: Current research and practice, San Francisco, CA: Jossey-Bass. 49. Sager, A., Rafat, S., & Agarwal, P. (2012). Identification of variables affecting employee satisfaction and their impact on the organisation. IOSR journal of business and management, 5(1), 32 – 39. 50. Uppal, S. (2005). Workplace characteristics and job satisfaction. International journal of manpower, 26(4), 336 – 349. 51. Vroom, V. H. (1964). Work and motivation, San Francisco; Jossey-bass. 52. Wan, H., Sulaiman, M., & Omar, A (2012). Procedural Justice in Promotion Decision of Managerial Staff in Malaysia. Asia pacific business review, 18(1), 99-121 53. Weathington, B. L. & Tetrick, L. E. (2000). Compensation or right: an analysis of employee fringe benefit perception. Employee responsibilities and rights journal, 12(3), 141 – 162. 54. Workd at work (2007). The Worldatwork handbook of compensation, benefits & total rewards. New Jersey: John Wiley and sons. 55. Yeseen, A., (2013). Effect of Compensation Factors on Employee Satisfaction – a study of doctor’s dissatisfication in Punjah. International journal of human resources studies. 4(7), 102-111. 56. Yoon, M. H., Suh, J. (2003). Organisational citizenship behaviour and service quality as external effectiveness of contact employees. Journal of business research, 56(8), 597 – 611.

References

1. Ali, A.A; Edwin, O., &Tirimba, O.I, (2005). Analysis of extrinsic rewards and employee satisfaction; case of Somtel Company in Somaliland. International Journal of Business management and Economic research. 6(6), 417-435.
2. Ali, R., & Ahmed, M. S. (2009). The impact of reward and recognition programs on employee’s motivation and satisfaction, a correlational study, department of management sciences, Attock Campus, Pakistan.
3. Armstrong, (2007). Employee reward management and practice. London; Kogan page.
4. Armstrong, M. (2006). A Handbook of Human Resources Management Practice (10th ed). London: Kogan page ltd
5. Armstrong, M. (2009). A handbook of human resources management practice (8th edition). London: Koyan Page ltd.
6. Arnold, A. (2013). The best employee incentives, demand media, texas, Houston Chronicles
7. Artz, B. (2008). The role of firm size and performacne pay in determining Employee Job Satisfaction. Labour: Review of Labour Economics and Industrial Relations, (22) 2, 36-43.
8. Artz, B. (2010). Fringe benefits and job satisfaction. Department of Economics, University of Wisconsin-Whitewater, working paper 08 – 03.
9. Barbara, R., Bucklin, H. M. & Alyce, M. D. (2003). The effect of individual monetary incentives with and without feedback. Journal of organisational behaviour management 23(2/3), 64 – 94.
10. Barton, G.M. (2012). Recognition at work. Scotts-dale; World at work.
11. Bowen, D.,& Ostroff, C. (2004). Understanding HRM-firm performance linkages: The role of the strength of the HRM system. Academy of management review, 29, 203 – 221.
12. Campbell, D. J., Campbell, K. M. & Chia, H. (1998). Merit pay, performance appraisal and individual motivation: an analysis and alternative, department of organisational behaviour, National University of Singapore.
13. Clark, A., (2001). What really matters in a job? Hedonic measurement using quick data, Labour economics 8, 22-42
14. Cole, G. A. (2002). Personal management, London, Aldine palace.
15. Condly, S. J., Clark, R. E. & Stolovitch, H. D. (2003). The effects of incentives on workplace performance: a meta-analytic review of research studies. Performance improvement quarterly, 16(3), 46 – 63.
16. Coon, D., & Mitterer, J. O. (2010). Introduction to psychology: gateway to mind and behaviour with concept maps. Belmont, CA: Wadsworth.
17. Danish, R.Q, & Usman, A., (2010). Impact of reward and recognition and motivation; An Emperical study from Pakistan. International Journal of Business and Management, 5(2), 159-167.
18. Deeprose, D. (1994). How to Recongnize and Reward Employees. AMACOM: New York, USA.
19. Erasmus, B., Van Wyk, M., & Schenk, H. (2001). South African Human Resource Management (2nd edition) cape town Juta is company ltd.
20. Fajana, S. (2002). Human resource management: An introduction. Lagos: Labofin and Company.
21. Herzberg, F., Mausner, B. &Snyderman, B. B. (1959). The motivation to work. New York; Wiley.
22. Heskett, J. L., Jones, T.O., Loveman, G. W., Sasser, W. E & Schlesinger, L. A. (1994). Putting the service-profit chain to work. Harvard business review, 72(2); 76-84.
23. Heywood, J.S., & Wei, X., (2006). Performance pay and job satisfaction. Journal of Industrial relations 48, 523-540.
24. Hulin, C. L., & Judge, T. A. (2003). Job attitudes in W. C: Borman, D. R. Ligen, & R. J. Klimoski (Eds), handbook of psychology: Industrial and organisational psychology, 255 – 276.
25. Hunter, W., & Tietyen, D. (1997). Business to business marketing. Creating a community of customers. Lincolnwood-Illinois; McGraw-hill professional.
26. Iqbal, M. S. Malik, M. I. & Zahid, M. A. (2011). Employee work satisfaction and work-life balance: A Pakistani perspective. Interdisciplinary journal of contemporary research business, 3(5), 606 – 616.
27. Kosteas, V.D., (2012). Job Satisfaction and Promotion. Cleveland State University, Cheveland
28. Lawler, E. (2003). Treat people right. San Francisco; Jossey-based inc.
29. Lazear, E. P. (2000). Performance pay and productivity. American Economic review, 90; 1346 – 1361.
30. Locke, E.A., (1969). The Nature and Causes of Job Satisfaction. In M.D. Dunnette (Ed.), Handbook of Industrial and Organisational Psychology, 1297-1343. Chicage: Rand McNally.
31. Luthan, F. (1998). Organisational behaviour (8th ed.) Boston, McGraw-Hill/Irwin.
32. hospital effectiveness and efficiency”, Research in Medical Sciences, 8(3), 85-89.
33. Malik, M.E., Danish, R.Q, & Munir, U, (2012). The Impact of Pay and Promotion on job Satisfaction; Evidence from higher education Institutes of Pakistan. American journal of economics 10, 6-9.
34. McCausland, W., Pouliakas, K. & Theodossiou, I. (2005). Some are punished and some are rewarded: a study of the impact of performance pay on job satisfaction. International journal of manpower, 26; 636 – 659.
35. Misener, T.R., Haddock, K.S., Gleaton, J.U. and Ajamieh, A.R. (1996). Toward an international measure of job satisfaction. Nursing Research, 45, 87-91.
36. Mosadeghrad, A.M. (2003), The role of participative management (suggestion system) in hospital effectiveness and efficiency”, Research in Medical Sciences, 8(3), 85-89.
37. Mitchel, T. R., & Lason, J. R. (1987). People in organisation (3rd edition). New York; McGraw-Hill.
38. Munap, R., Badrillah, M. I. M., & Rahman, B. A. (2013). Organisational rewards system and employees’ satisfaction at Telekom Malaysia Barhad. Journal of educational and social research. 3(3), 281 – 288.
39. Nancy, C. M. (1977). Satisfactions in the white – collar job. New York. Ayer Publishing.
40. Nelson, B. (2003). Money is not the root of all motivation; health care registration, 12(10), 7 – 9.
41. Olubusayo, F. H., Stephen, I. A. & Maxwell, O. (2014). Incentives packages and employees’ attitude to work; A study of selected government parastatals in Ogun State. South-West, Nigeria. International journal of research in business and social science, 3(1), 63 – 74.
42. Parker, O. and Liz W. (2001). Pay and Employee Commitment: The Missing Link.Ivey Business Journal. 3(7), 89-97.
43. Rajah, S., (2014). Job Satisfaction and Motivation; What are the differences among these two? European Journal of Business and Social Sciences. 3(2), 94-102.
44. Rao, V. S. P. (2005). Human resource management – text and cases, (2nd edition). New Delhi, excel books.
45. Robbins, S. P. (2005). Organisational behaviour: New jersey: prentice hall.
46. Robbins, S. P., Judge, T. A. & Sanghi, S. (2008). Organisational behaviour, Pearson, Delhi, practice hall.
47. Rynes, S. L., Colbert, A., & Brown, K. G. (2002). HR professionals’ beliefs about effective human resource practices: Correspondence between research and practice. Human Resource Management, 41(2), 149–174.
48. Rynes, S., & Gerhart, B. (2000). Compensation in organizations: Current research and practice, San Francisco, CA: Jossey-Bass.
49. Sager, A., Rafat, S., & Agarwal, P. (2012). Identification of variables affecting employee satisfaction and their impact on the organisation. IOSR journal of business and management, 5(1), 32 – 39.
50. Uppal, S. (2005). Workplace characteristics and job satisfaction. International journal of manpower, 26(4), 336 – 349.
51. Vroom, V. H. (1964). Work and motivation, San Francisco; Jossey-bass.
52. Wan, H., Sulaiman, M., & Omar, A (2012). Procedural Justice in Promotion Decision of Managerial Staff in Malaysia. Asia pacific business review, 18(1), 99-121
53. Weathington, B. L. & Tetrick, L. E. (2000). Compensation or right: an analysis of employee fringe benefit perception. Employee responsibilities and rights journal, 12(3), 141 – 162.
54. Workd at work (2007). The Worldatwork handbook of compensation, benefits & total rewards. New Jersey: John Wiley and sons.
55. Yeseen, A., (2013). Effect of Compensation Factors on Employee Satisfaction – a study of doctor’s dissatisfication in Punjah. International journal of human resources studies. 4(7), 102-111.
56. Yoon, M. H., Suh, J. (2003). Organisational citizenship behaviour and service quality as external effectiveness of contact employees. Journal of business research, 56(8), 597 – 611.

Downloads

Published

2018-03-20

How to Cite

(1)
Joseph Akhigbe, D. O.; Kehinde, O. B. Organizational Reward System And Employee Satisfaction In Insurance Firms In Nigeria. sslej 2018, 3, 25-30.

Issue

Section

Articles