REWARD AND PUNISHMENT OF EMPLOYEES AS A DETERMINANT IN A BEVERAGE COMPANY (CASE STUDY OF COCA-COLA)

ABSTRACT

This project works looks at the “Reward and punishment of employees as a determinant in a beverage company (a case study of coca-cola)”. The empirical part of the thesis was conducted using a quantitative research method. The data was gathered with the help of a questionnaire, some of the respondents express dissatisfaction with the organization’s reward system, and some also pointed out the margin between the organization’s reward system and other similar organizations.

The research supports the assumption that a well-developed and functional reward system can increase employee motivation and satisfaction.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 BACKGROUND OF STUDY

Employee performance is invariably one major component determining the organization’s total growth and productivity, making employee productivity an essential problem for any business (Khan, Karim & Jan 2014). Employees may accomplish more in a shorter amount of time thanks to productivity (Oyedokun, Oduguwa, Adeolu-Akande & Oyedokun, 2021). It is possible for employees to feel comfortable and contribute to improved morale, higher productivity, and good spirits when there is a balance between their needs and the impacts that this has on the economy, society, and psychology (Jha & DikShit, 2015). Given a reinforced base for enhancing real income and economic well-being by increasing the amount and quality of output, more industries must enhance productivity, raise quality, and cut costs to perform at a world-class level (Dilanthi, 2013).

Reward system and management is one important Human Resource Management strategy for attracting and retaining high-quality employees as well as facilitating them to improve performance (Dewhurst, Gutridge& Mohr, 2010; Ibrar& Khan, 2015). On one hand, employees prefer receiving intrinsic rewards in terms of praise and recognition for certain work accomplishments, while other employees are happy with extrinsic rewards in terms of salaries, bonuses, and incentives offered to employees (Sajuyigbe, Bosede & Adeyemi, 2013).

According to Anku-Tsede&Kutin(2013), a reward system can be seen as a means of actively engaging and renewing the employee’s sense of community and the mission of an organization. In this view, an effectively administered system of rewards can provide incentives for quality workmanship and performance. Likewise, a poorly administered reward system can lead to low morale, unproductive performance, and in extreme cases a high percentage of employee turnovers. Pratheepkanth (2011) describes the reward system to include all organization components which may include people, processes, rules, and decision-making activities involved in the allocation of compensation and benefits to employees in exchange for their contribution to the organization. From both definitions, rewards can be described as tangible benefits one can receive from engaging in a specific task. This opinion is reiterated by Torrington, Hall, Taylor, and Atkinson (2011) who argue that although few people claim to enjoy work for the sake of it, most people work in large part because it provides a means of sustaining livelihood. This implies that people generally are concerned with the number of benefits (whether financial or non-financial) attached to their work. The positive relationship between reward systems (especially financial rewards) on employee performance has been established in past studies (Osa,2014; Metha,2014; Saleem, 2011.). Similarly, Nazir, Shah, and Zaman (2012) describe total rewards as an enclosing of aspects of work benefits that employees attach value to; whether it concerns the provision of a healthy work environment, better opportunities for learning and development, or the benefits package linked to the pay. Hence, an effective reward system incorporates both financial incentives (such as pay, fringe benefits, and other money-related plans) and non-financial incentives (such as vacations/holidays, recognition, and appreciation) in driving employee motivation for improved performance.

Organizations provide rewards to members in the form of wages and salaries, promotions, long service awards and certificates, end-of-the-year bonuses, and other fringe benefits. These rewards are to motivate behavior that will contribute to the achievement of the goals of organizations. The questions that readily come to mind are, what sort of behavior does an organization want? How can the rewarding process promote that behavior? What motivates an organization to design reward packages for employees? Nearly all organizations invest in the provision of rewards to motivate their employees to get the desired results.

Employee motivation is one of the most essential parts of a company’s development and success. To maximize the overall performance of the company an employer needs to understand what motivates the employees and how to increase their job satisfaction. It might however be challenging for a company to find out what motivates its employees, especially because different people are motivated by different things.

A well-designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed by the company’s reward philosophy, strategies, and policy. However, it might be challenging to find the right way to combine the company’s integrated policies and practices with the employee’s contribution, skill, and competence.

Nigeria is a nation that is blessed with abundant human and material resources, despite these; it is surprising to observe that Nigeria is still rated among the less developed countries in the world. This may be attributed to the fact that human and material resources are poorly harnessed and utilized. One of the poor utilization of human and material resources in Nigeria is Nigeria’s Attitude to work which is highly attributed to motivation.

1.2 STATEMENT OF THE PROBLEM

In any organization tasks are performed with the help of resources;  material,  machine, money, and most importantly men. All other resources except for human beings as employees are non-living. Employees make use of these resources to generate output without them other resources will be useless, dormant, and will not produce anything. Therefore, human resource is the greatest asset any organization can have and should be given the highest priority. (Ojeleye & Okoro, 2016). A similar view is supported by Zaman (2011), who argued that human resource provides the basis for an organization to achieve sustainable competitive advantage. Since organizations are operating in a dynamic and competitive business environment, they need to develop strategies to acquire and retain a competent workforce. He also emphasizes, nowadays human assets are considered to be the most important asset of any organization, and to get efficient and effective results from human resources motivation is necessary.

How employees are valued and rewarded can make a considerable impact on the effectiveness of the organization and is at the heart of the employment relationship. Failure to adopt an appropriate reward framework can have a significant negative effect on the motivation, commitment, and morale of employees, hence a decline in organizational performance. Many organizations are suffering from high turnover rates and downfalls because they do not apply non-monetary rewards that may only need a little effort. Additionally, though organizations are channeling more resources into boosting organizational performance, there is widespread ignorance on how employee performance could be improved through the use of non-monetary rewards on employees, the relationship existing between the kind of rewards and performance, and how effectively they can be utilized in an organization. Osa (2014) reveals that several organizations are still finding it difficult to establish an effective reward system that fairly suits the organizational demands regarding employee performance and organizational profitability.

1.3 OBJECTIVE OF THE STUDY

The main objective is to identify the Reward and punishment of employees as a determinant in a beverage company (a case study of coca-cola).

1. To investigate the different reward incentives that exist in the public sector most especially in Nigeria.
2. To assess the effect or impact of these reward incentives on employees’ performance.
3. To identify the reward incentives that motivate employees to the highest degree of performance.
4. The study seeks to determine the perceptions of employees concerning their various reward incentives.
5. To offer suggestions on how organizations can provide an effective reward system.

1.4 RESEARCH QUESTIONS

The research questions were directed specifically to address the following issues;

1. What are the various reward incentives available to employees at Coca-Cola?
2. Does the reward system affect employee performance?
3. How often is the reward system at the company being reviewed?
4. Are there any other factors by which employee performance can be improved through reward incentives?
5. What are the factors being considered in carrying out reward policy exercises in the company?

1.5 RESEARCH HYPOTHESES

The following hypothesis will be tested

1. HO: A satisfactory reward system will have no impact on workers’ productivity.

Hi: A satisfactory reward system will have some impact on workers’ productivity

1. Ho: An organization’s reward system has no significant impact on the cost of production

Hi: An organization’s reward system has a significant impact on the cost of production

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study is that it will be needed to improve employees’ productivity at the workplace, to retain employees, and to help an organization establish good coverage, if an organization’s employees do not acquire this motivation then the organization could lose large amounts of money customers or even go out to a business on the other hand if such organizations employees are well trained and motivated by their employers, it could have great income potential, keep loyal customers and gain a lot of market share.

This research would help many managers and leaders in our society to identify the things that they need to do to successfully motivate their employees to perform at their best. Also, help managers to understand new strategies that could be implemented to motivate employees to achieve optimal business result. There is a need for this study because of the many organization that is constantly spending money on various ways to increase employees’ motivation.

However, the justification of this research is that it will go a long way to assisting the management of most organizations in finding not only immediate but permanent remedies to the incidence of low productivity and also an industrial disputes between management and their employees who would have been satisfied from the motivational techniques employed by the organization to address their needs and desires and thus improving the level of productivity and increasing organizational goals and objectives.

Finally, it will serve as a literature for students in the tertiary institutions

1.7 SCOPE AND LIMITATION OF THE STUDY

The scope of this study shall be the impact of motivation on employee productivity in an organization. The research conducted focuses only on the employees of Coca-Cola, which means that the sample size is limited and the focus shall be on both the junior and senior staff categories to sample their various opinions, to make a comparison in the area of inquiry. Indeed, there is no doubt a study of this nature will not have its inadequacies, some of the limitations to the study shall be time constraints, inadequate resources, lack of accessibility to information, and fear of the unknown by the employees among others.

Furthermore, limitations were set on the theories used to analyze the level of motivation and satisfaction with the reward system. The author used Maslow’s hierarchy of needs, the goal-setting theory, and the total reward system to analyze the results.

The questionnaire was filled in anonymously and was therefore limited to being analyzed on general and not individual bases.

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