IMPACT OF REWARD MANAGEMENT ON EMPLOYEE PERFORMANCE IN THE HOSPITALITY INDUSTRY
(A STUDY OF PROTEA, NIKE LAKE HOTEL ENUGU)
ABSTRACT
This research work examined the impact of reward management on employee performance in the hospitality industry. A study of Protea, Nike Lake Hotel Enugu. The objectives of the study include to: find out the extent reward management has impacted on employee motivation, ascertain the various ways of managing reward and determine the challenges militating against effective reward management. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 98 while the sample size of 79 was determined using the Taro Yamane’s formula. The data collected was presented in tables of frequencies, and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that reward management has a significant impact on employee motivation in Protea, Nike Lake Hotel Enugu, there are effective ways of managing reward in Protea, Nike Lake Hotel Enugu and there are challenges militating against effective reward management. The research concluded that reward management has a huge impact on employee motivation in the hospitality industry and it was recommended that Organizations should always know how to reward their employees as reward management significantly impacts on employee motivation, Organizations should know how to manage reward because what motivates one employee may not motivate another and management of organizations should try to find out ways of overcoming the challenges militating against effective reward management.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.1.1 Concept of Reward and Reward Management        
2.1.2 Purpose of Rewards                            
2.1.3 Classification of Reward                        
2.1.4 Concept of Reward Management                
2.1.5 The Aims of Reward Management                
2.1.6 The Reward System                            
2.1.7 Ways of Managing Reward in Organizations          
2.1.8     Challenges Militating Against Effective Reward Management                              
2.1.9     Concept of Employee Motivation                
2.1.10 Types of Motivation Culture                          
2.1.11 Reward as a Motivational Factor                 
2.2     Theoretical Framework of the Study                
2.2.1 Equity Theory on reward and Job Motivation        
2.2.2 Expectancy Theory by Porter and Lawler            
2.2.3 Instrumentality Theory by Berridge                
2.2.4 Mission Theory                                
2.3     Empirical Review                             
2.3.1 Impact of Reward Management on Employee
Motivation                                
2.3.2 The Various Ways of Managing Reward             
2.3.3 The Challenges Militating Against Effective
Reward Management                         
2.4 Summary of Review of Related Literature            
2.5 Gap in the Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                            
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix    A                                
Appendix B                                
Appendix C                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
Human capital remains at the heart of any organization and it remains be their most important asset (Beer, 2012). Reward constitutes an important element in human resource management. It is largely seen as managing expectations, which is what employees expect from their employers in return for their contribution and what employers expect from their employees in return for their pay and opportunity to work and develop their skills.
In the words of Akpa (2014), reward management deals with the strategies, policies and processes required to ensure that the contribution of people to the organization is recognized by both financial and non financial means. It is about the design, implementation and maintenance of reward systems (reward processes, practices and procedures), which aim to meet the needs of both the organization and its stakeholders. The overall objective is to reward people fairly, equitably and consistently in accordance with their value to the organization in order to further the achievement of the organizations strategic goals.
    Furthermore, Owoyemi (2015), posits that reward management is not just about pay and employee benefits, it is equally concerned with non-financial rewards, such as recognition, learning, and development opportunities and increased job responsibility. There appears to be a close relationship between employees overall satisfaction with their jobs and their organization and their intention to stay or leave. Organizations could benefit from implementing a total reward programme that focuses on both rewards and informal recognition. The minimum an employee looks for when entering into the organization is fair pay, sufficient working condition and fair treatment. But employees are always going to expect more just in the same way that management would expect more. Armstrong (2014), asserts that management expects that employees have the ability to work in relation to the business objectives. Employees on the other hand vary in expectations often relating to their needs in security and challenge. This is where, for the employees, management need to be able to address these expectations by having a great understanding of what motivates them.
    Reward management is based on a well-articulated philosophy. The philosophy recognizes that if human resource management is about investing in human capital from which a reasonable return is required, then it is proper to reward people differentially, according to their contribution (Berridge, 2013). Reward management adopts a “total reward” approach which emphasizes the importance of considering all aspects if reward as a coherent whole, which is integrated with other human resource initiatives designed to achieve the motivation, commitment, engagement and development of employees.
    According to Luthans (2011), motivation is the driving force that stimulates an individual to action to achieve and accomplish desired goals and it is argued that reward management is an important tool that management can use to channel employee motivation in desired ways. In other words, reward system seeks to attract people to join the organization and keep them coming to work and motivate them to perform at high levels. Example, the employees in the oil ad gas industry are adequately rewarded. Hence, many job seekers want to work in such industry. People can be motivated by rewards which will provide them with goals to attain. But the needs of individuals and the goals associated with them vary so widely, that it is difficult, if not impossible, to predict precisely how a particular reward will affect individual behavior. It is based on this backdrop that the research work examined the impact of reward management on employee performance in the hospitality industry with Protea, Nike Lake Hotel Enugu as a case study.
1.2    Statement of the Problem
    Not all organizations have the resources to carry out effective reward management. For example, an organization may have the enthusiasm to reward workers accordingly, but when the organization, does not have the financial where withal, it may not come to reality.
Management experts, believe that it is difficult to predict how a person’s behaviour could be influenced by reward. This is because, reward can turn out to have a negative influence, if it does not meet the expectation of the employees. The effects of not managing reward in an organization, can lead to increase in employee turnover. This is because when the reward offered by the management of the organization, does not match with the expectations of the employee, it can create tension and conflict in the organization, making the employees to seek employment in other organizations.
    Furthermore, when an organization does not have effective reward management system, it can lead to employees feeling that they are not justly treated in accordance with what is due to them and this can demoralize them.
    Moreover, another effect of not managing reward effectively on an organization, is that it can lead to decrease in the net profit of the organization as the employees will not be committed to work.
1.3    Objectives of the Study
    The broad objective of the study examined the impact of reward management on employee motivation in the hospitality industry. However, the specific objectives include:
1.    Find out the extent reward management has impacted on employee performance in Protea, Nike Lake Hotel Enugu.
2.    Ascertain the various ways of managing reward in Protea, Nike Lake Hotel Enugu.
3.    Determine the challenges militating against effective reward management in Protea, Nike Lake Hotel Enugu.
1.4    Research Questions
    The following research questions are raised based on the objectives of the study.
1.    To what extent has reward management impacted on employee performance in Protea, Nike Lake Hotel Enugu?
2.    What are the various ways of managing reward in Protea, Nike Lake Hotel Enugu?
3.    What are the challenges militating against effective reward management in Protea, Nike Lake Hotel Enugu.
1.5 Statement of Hypotheses
    Based on the research questions, the researcher formulates the following hypotheses.
Hypothesis One
H0:    Reward management does not have any significant impact on employee performance in Protea, Nike Lake Hotel Enugu.
H1:    Reward management has a significant impact on employee motivation in Protea, Nike Lake Hotel Enugu
Hypothesis Two
H0:    There are no effective ways of managing reward in Protea, Nike Lake Hotel Enugu.
H1:    There are effective ways of managing reward in Protea, Nike Lake Hotel Enugu.
Hypothesis Three
H0:    There are no challenges militating against effective reward management in Protea, Nike Lake Hotel Enugu.
H1:    There are challenges militating against effective reward management in Protea, Nike Lake Hotel Enugu.
1.6    Significance of the Study
This study shall be of great benefit to business organisations in the hospitality industry. Managers of business organisations in the hospitality industry will appreciate the various ways of managing reward in their organization and how they can be used to motivate employees. The university will benefit as the research work increases its data bank. The study shall also be of great benefit to the academia as it shall be a reference material to scholars and students who may wish to research on similar topics.
1.7    Scope of the Study
This study covered the extent reward management has impacted on employee motivation, the various ways of managing reward, the challenges militating against effective reward management. The organization that covered by this research was Protea, Nike Lake Hotel Enugu.
1.8    Limitation of the Study
    The researcher encountered some impediments in the course of carrying out this research work, among them was the uncooperative attitude of the respondents
Uncooperative Attitude of the Respondents: The respondents of Protea, Nike Lake Hotel Enugu were economical with information but when they found out that the research work was for academic purpose, they gave out useful information relevant for the research work.