Effect of Reward System on Employee Performance among Selected Manufacturing Firms in the Litoral Region of Cameroon

Abstract

This study investigates the effect of reward system on employee performance in selected manufacturing firms in the Littoral Region of Cameroon. Specifically, the study assesses the degree to which profit sharing affects employee commitment in manufacturing firm; ascertains the effect of flat-rate systems on employee work values in manufacturing firms; and appraises the influence of collective bargaining reward systems on employee cohesiveness in manufacturing firms. This research work is a survey which makes use of a sample of 538 employees drawn from a population of 5146 employees of ten selected manufacturing firms within the Cameroon Littoral Region. The sample was selected by the use of the Cochran’s formula for finite population sample at a 95% confidence level. The major source of data used for the study was primary data and the instrument used for data collection was questionnaire. The findings revealed that, profit sharing had a significantly positive effect on employee commitment in manufacturing firms; flat rate systems had a significantly negative effect on employee work values in manufacturing firms; and collective bargaining reward systems had a significantly positive impact on employee cohesiveness in manufacturing firms. The study concluded that there is a positive link between reward systems and employee performance. This link creates an opportunity for employers to use reward system as a motivating factor to fine-tune employee behaviour towards efficiency and effectiveness. Based on the findings, it was recommended amongst others that reward systems for manufacturing firms should be designed such that employees are entitled to percentages of profit earned by the firm as a means of promoting productivity and group cohesiveness amongst employees. The study further advised that employees in manufacturing firms should not be paid fixed salaries as it could result in a high rate of tardiness and reluctance of employees within a group to put in anything more than the performance of an average performer in the group.

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