ASSESSMENT OF THE EFFECTS OF REWARD SYSTEMS ON

ORGANIZATION PERFORMANCE: THE CASE OF NAMPORT

BY

HILMA

(name of student)

STUDENT NUMBER: ………….

A MINI THESIS RESEARCH PROPOSAL SUBMITTED IN PARTIAL

FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF
HUMAN RESOURCES IN THE FACULTY OF MANAGEMENT SCIENCES

NAMIBIA UNIVERSITY OF SCIENCE AND TECHNOLOGY

SUPERVISOR: ........................

May, 2022

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Table of Contents
CHAPTER 1.............................................................................................................................................1
INRODUCTION AND BACKGROUND 0F THE STUDY................................................................................1
1.1 Introduction.....................................................................................................................................1
1.2 Background of the study..................................................................................................................1
1.3 Statement of the Problem...............................................................................................................3
1.4 Purpose of the Study.......................................................................................................................4
1.5 Research Objectives.........................................................................................................................4
1.6 Research Questions.........................................................................................................................4
1.6 Significance of the Study..................................................................................................................4
1.7 Limitations of the Study...................................................................................................................4
1.8 Delimitations of the Study...............................................................................................................5
CHAPTER TWO.......................................................................................................................................6
LITERATURE REVIEW..............................................................................................................................6
2.0 Introduction.....................................................................................................................................6
2.1 Empirical Studies in the World.........................................................................................................6
CHAPTER 3.............................................................................................................................................8
RESEARCH METHODOLOY.....................................................................................................................8
3.0 Introduction.....................................................................................................................................8
3.1 Research Design..............................................................................................................................8
3.2 Population.......................................................................................................................................8
3.3 Sample.............................................................................................................................................8
3.4 Research Instruments......................................................................................................................9
3.4 Data Collection Procedure...............................................................................................................9
3.5 Data Analysis...................................................................................................................................9
3.6 Validity.............................................................................................................................................9
3.7 Reliability.........................................................................................................................................9
3.8 Research Ethics................................................................................................................................9
REFERENCES........................................................................................................................................10

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 CHAPTER 1

INRODUCTION AND BACKGROUND 0F THE STUDY

1.1 Introduction
The present global financial crisis has made the reward system, with its emphasis on bonuses
and viable remuneration, a hotly contested topic in the media. Every business has a reward
system in place. Reward systems are frequently used as a management tool to help people
achieve their goals. One of the most prevalent goals is to encourage employees to improve
their performance (Guest, 2011). Rewards, recognition, and a pleasurable workplace have
become highly important in today's business culture for a variety of reasons. The key to
getting people to do what they do is motivation.

1.2 Background of the study

With a clear understanding of what matters most, innovative solutions and adequate financial
resources may be allocated to addressing the critical issue. Without this information, a lot of
well-intentioned work could be wasted trying to address problems that aren't that significant
to employees (Guest, 2011). In light of this, employee-related issues are seen as the driving
force of every organization and must be given the attention they need, as they will have an
impact on their performance and the organization as a whole. One of the most important
issues that every employee in a business is the incentive or recompense for their efforts (Al
Salem, 2010).

All forms of salary and awards earned by employees for the execution of their job are
referred to as employee rewards. Wages and salaries, as well as incentives, bonuses, and
commissions, are all part of employee compensation. The reward systems differ from one
organization to the next and are subject to modification. As a result, inspiring people is
undoubtedly the most difficult of all management tasks (Dessler, 2013). An essential
component of any compensation system, however, is that it must motivate employees to give
their all to the company. According to Shadare & Hammed (2009), a well-organized and
structured compensation system benefits both the company and its personnel.

Rewards should be based on the different demands of employees. Cash rewards can meet the
demands of certain employees, but other incentives, such as a house, car, paid vacations, and
so on, are more appealing to others. In order to meet the demands and expectations of

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employees toward management and the reward system, a reward system should contain an
effective blend of both monetary and non-monetary rewards and incentives. Only if the
reward system satisfies the requirements and expectations of employees can it have a positive
impact on employee productivity (Guest, 2011).

A rewards system is typically built on the concept of 'pay for performance,' which can take
the form of promotions, commissions, bonuses, and awards, among other things. Performance
acknowledgment, social recognition, improved working circumstances, job diversification,
increased responsibility, and other non-monetary incentives are common (Dessler, 2013).
Fening & Amaria (2011) coined the phrase "non-material rewards" to describe non-monetary
or non-financial incentives, concluding that they improve employees' overall job satisfaction.

People are the lifeblood of any company. It is critical for a company to be well-managed in
order to achieve true success. Employees that execute to the best of their abilities are required
for a firm to prosper in today's competitive global market. Only when they are motivated by a
desire to do good work can they achieve this level of excellence. As a result, it is an
irrefutable fact that every business's human resource remains its most valuable asset, and
every effort should be taken to ensure their performance, as the organization cannot run
without them (Fening & Amaria, 2011).

When employees are recognized for their efforts, they are more likely to complete tasks.
Employers are more likely to acquire the behavior they reward, rather than the behavior they
expect they will get naturally from their staff. As a result, when staff meet or exceed their
goals, they should be recognized right once as a means of motivating them (Al Salem, 2010).
Employees will be able to link their incentive to their behavior and improved performance as
a result of this. Positive reinforcement should always be the focus of effective reward
systems. In companies, positive reinforcement fosters desirable behavior. Employees are
more likely to take beneficial actions as a result of this. In order to promote positive behavior
that leads to success, reward systems in the workplace should be well-designed (Zairi, 2000).

In order to enhance performance, an organization must quickly improve employee

motivation. Managers emphasized 'recognition' as a means of improving staff morale. Every
employee was given the opportunity to suggest someone they thought deserved to be
recognized. Employees that performed well were given certificates, and they felt really
valued. Being formally recognized provided me an added boost in my experience as a
'recognized' employee. Organizations are looking for strategies to outperform their

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competitors while remaining profitable. Human energy, a strategic strategy to energizing the
entire organization, is crucial to achieving this goal (Al Salem, 2010).

Organizational performance has been described in a variety of ways by a variety of experts

and authorities, but it is inextricably tied to employee and corporate efficiency. Shadare &
Hammed (2009), define corporate performance as an organization's capacity to achieve its
objectives through efficient and effective resource management. According to Armstrong
(2003), performance is a multi-dimensional entity whose measurement depends on a range of
criteria. Reward systems have the potential to be the most important components of a
management control system for both government and non-governmental organizations.
Employees who have defined goals and are rewarded in accordance with their expectations
are frequently highly happy at work (Shadare & Hammed, 2009).

1.3 Statement of the Problem

Organizations, both governmental and non-governmental, are formed to achieve specific
goals. Organizations that want to achieve their goals need a competitive and perhaps
comprehensive overall compensation system that is connected with their business strategy
and reflects the labor market's competitive realities (Fening & Amaria, 2011). In a society
where people are becoming increasingly demanding about their lives and environments, the
incentive system could be utilized to inspire employees by meeting these demands.

Zairi (2000), most firms' reward systems aren't based on performance. As a result, they have
no bearing on organizational structure, employee recruitment, retention, motivation,
performance, feedback, or satisfaction. Furthermore, in most firms, the receivers of these
benefits are not involved in the planning or execution of reward schemes. Furthermore, the
administration of the many techniques of rewarding employees in firms has a number of
flaws.

However, most incentive systems are under-optimized due to a lack of understanding on how
to motivate all of those high-demanding individuals. We need a better understanding of what
motivates people and what doesn't in order to design an effective reward system. It is
impossible to overestimate the impact of reward systems on an organization's performance or
efficiency. However, there are a number of issues with how businesses operate their reward
systems. Again, most firms perceive reward as simply monetary remuneration given to
employees in exchange for their performance, when rewards should encompass everything
that motivates an individual employee to give his or her all. Thus, by focusing on

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NAMPORT, the study assessed the role of incentive systems in overall organization
performance and determined whether their current reward systems contribute to the
organization's success.

1.4 Purpose of the Study

The purpose of this study is to asses of the effects of reward systems on organization
performance at NAMPORT.

1.5 Research Objectives

i. To assess the effects of reward systems on organisation performance at NAMPORT;
ii. To investigate the effects of intrinsic reward system on organization performance at
NAMPORT;
iii. To determine the relationship between reward system and organisational at
NAMPORT.

1.6 Research Questions

i. What are the effects of reward systems on organisation performance at NAMPORT?
ii. What are the effects of intrinsic reward on organisational performance at
NAMPORT?
iii. What is the relationship between system and organisational at NAMPORT?

1.6 Significance of the Study

The study's findings will be valuable resources for other academics working in the same or
adjacent fields. The findings will aid in the creation of empirical literature reviews. The study
will also contribute to the provision of useful information for resolving employee concerns
and issues with the organization's performance. Furthermore, the research will aid
policymakers in developing good compensation programs and motivating employees to
produce good and quality services, resulting in improved organizational performance.

Academically, the research adds to the body of knowledge, particularly in the areas of staff
motivation and customer service. It aids in the prevention of low employee motivation by
many organizations, both government and non-government. This research will be valuable to
non-profit organizations in determining how to reward their employees. The research assists
employees who are significant players in the organization's performance, as indicated by the
NAMPORT, in realizing themselves as an integral element of employee happiness.

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1.7 Limitations of the Study
The most significant constraint that a researcher will experience in completing this study is a
lack of time. The amount of time allotted for this research is quite limited, and the costs of
preparation are extremely costly. The costs of preparing this study, which include stationery,
transportation, internet, and consulting fees, are so exorbitant that one must quit working and
organize finances in order to get the project started. It will also be difficult to contact certain
possible sources of data for this investigation. For example, it anticipates a lengthy procedure
in obtaining an appointment, and even once an appointment is set, the researcher may be
unable to meet with some of those individuals. In terms of costs, I have financial support
from my husband, who will assist me in completing my degree, as well as personal funds.
Friends at NAMPORT will assist in obtaining reliable data on a timely basis, hence reducing
follow-up costs.

1.8 Delimitations of the Study

The study will be delimitated to assessment of the effects of reward systems on organization
performance. The study will also be delimitated NAMPORT head office Windhoek Khomas
Region.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
Theoretical and empirical reviews connected to this subject are briefly discussed in this
chapter. This isn't meant to be a comprehensive review of the research. Nonetheless, it seeks
to familiarize the reader with the underlying idea that employee rewards have a role in
organizational performance.

2.1 Empirical Studies in the World

Van Dick (2012), found that the most essential variables encouraging employees, are a fair
income and promotion, extended health benefits, and a pleasant working environment.
Furthermore, when compared to a similar survey conducted in Finland, it is discovered that
wage is the most important motivator for employees in both nations. A research study
focused on the banking industry in Tanzania, a developing country, while the study was done
in a developed country.

Al Salem (2010), found that Employees in Slovakia came to the conclusion that people are a
common and vital aspect of any organization, constituting its human resources, who use their
creative talents and job skills to generate new values, resulting in the organization's
profitability and competitiveness. As a result, the organization's performance is mostly
determined by employee satisfaction. This research focused on employee motivation, which
is a part of our research, thus the researcher included it in the study.

Chuang, Jackson, & Jiang (2013) found that the banking business is characterized by severe
rivalry, and that employees must be driven and pleased in order to thrive in the market
environment. As a result, banks should build their rules, regulations, and banking structures
in a way that encourages employees to work well and rewards them for completing and
completing tasks. This study was carried out in a different country with a different working
environment than Tanzania, necessitating the necessity to undertake studies in the Tanzanian
setting. Furthermore, the focus of this research was on employees.

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Shih & Chiang (2005) found that the organisation met its corporate goals and improved staff
performance simply by implementing an extrinsic motivator package that included increased
salary, fringe benefits, and promotions on a regular basis. The researcher discovered a
convergence of thinking on the topic of motivation in this study, but he also detected
differences in motivation terms. As a result, research is required to uncover these
discrepancies in the banking industry.

A study by Smith, & Meso (2000), established that service expectations in Africa are not
static. Service expectations shift throughout time, and this shift is noticeable in a short
amount of time.

Shaukat, Ashraf, & Ghafoor (2015), discovered the critical function of employees in service
quality delivery and established a hypothesis that may be applied in different situations. In a
research paper titled Motivation and Work Performance, Zairi (2000), observed that in order
to motivate people and organizations, they must first have the baseline, which is the hygiene
factors in place, and then the motivators will be used to motivate, and that motivation is
impossible to achieve without the baseline. This type of research is too narrow in terms of
motivation and performance to be applicable to our research.

Shadare, & Hammed (2009), found that many personnel at all levels were dissatisfied with
their jobs for a variety of reasons, including salary. As a result, a performance-based reward
system was implemented, as was enhanced communication at all levels and the
implementation of steps to demonstrate concern for the wellbeing of employees. Health-
related issues are unrelated to our investigation, hence they will not be addressed in our
study.

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 CHAPTER 3

RESEARCH METHODOLOY

3.0 Introduction
All of the procedures utilized by the researcher during the process of investigating his
research problem are referred to as research methods, and is the method of conducting
research (Enon, 1998).This includes research methodologies, procedures, and/or a strategy
for conducting research. Design is a method or strategy for conducting research. Experiment,
surveys, case study grounded theory, ethnography, and action research are examples of
research designs (Kothari, 1990). This chapter describes the steps and logic used by
researchers to investigate their research problem, as well as the logic that behind them.

3.1 Research Design

Research design, according to Kombo & Trompo (2006), is a rational and methodical
approach for directing a research investigation. It outlines the study's objectives and the
methods used to achieve them. The descriptive method will be employed in this study, which
includes both qualitative and quantitative techniques. A case study will be performed to make
this study more effective. The researcher will be able to publish not only the findings, but
also the analysis, comparison, and interpretation of the data, thanks to this research
methodology.

3.2 Population
The population of this study will consists of 80 NAMPORT Senior Management officials and
regular employees (Staff) for the purpose of gathering data.

3.3 Sample
In order to achieve maximal representation of all levels of employees from various
departments and minimize any possible biases, a sample of 60 respondents shall be chosen in
this study. Human Resource Manager and General Manager Operations will be among the
major informants.

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Kothari (2004) defines sampling as the selection of components of an aggregate or totality on
the basis of which a judgment about the aggregate or totality is made. In selecting
respondents from the NAMPORT population, the researcher utilized both basic random
selection and a purposive technique.

3.4 Research Instruments

The questionnaire approach allows for the collection of data and the conduct of social
research using a set of questions. According to Kothari (2004), a questionnaire is made up of
a group of questions printed or typed in a specific order on a form or set of forms.

3.4 Data Collection Procedure

The researcher will start by seeking approval from the university of Namibia research
committee. After this approval from the university, the researcher will seek approval from the
relevant office at NAMPORT and then will approach the sample to give their consent in
taking part in this study. After all approvals and consent are granted the researcher will
proceed to distribute the research instruments among the participants.

3.5 Data Analysis

Statistical software for social science will be used to examine the data (SPSS). The results
will then be presented in tables, charts, and graphs using words, numbers, and percentages.
The researcher will be able to gain a clear knowledge of the research findings through data
analysis and interpretation, and then use those findings to reach a conclusion and provide
suggestions.

3.6 Validity
A pilot research shall be undertaken to determine the validity of the data acquired throughout
the study by sending questionnaires to a few respondents in order to identify questions that
were unclear or ambiguous to the respondents. This will enable for the necessary adjustments
to be made before the questionnaires will be sent to the larger group.

3.7 Reliability
The degree to which outcomes are constant throughout time is defined as reliability (Enon,
1998). The term "reliability" refers to the accuracy and precision with which measurement

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operations are carried out. A pilot study will be conducted to see if the instruments are
measuring what they claim to be measuring (Kothari 2004).

3.8 Research Ethics

Before beginning data collecting, the researcher will obtain authorization from the university,
as well as the school principal, teachers, and parents of the learners. Throughout data
collecting, the researcher will maintain the respondent's confidentiality by utilising their
information to ensure the study's success.

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Armstrong, M. (2003). Performance Management: Key Strategies and Practical Guidelines.

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