EMPLOYEE REWARDS AND ORGANIZATIONAL PERFORMANCE: A REVIEW OF LITERATURE

Haruna, T. Mohammed; Mustapha N. Mustapha& Musa Ibrahim

Department of Business Administration

Federal Polytechnic, P. M. B. 55, Bida, Niger State

Email: harunatm73@gmail.com

ABSTRACT

Different individuals have different understanding of employee reward packages. Some employees consider being recognized by their superior officers is more rewarding than financial rewards. Others feel that the combination of increase in internal happiness (intrinsic rewards) and increase in external happiness (extrinsic rewards) are the best reward packages that can bring about increase in organizational performance. In this paper, we explored some thoughts and learning from previous research literatures on employee rewards and organizational performance. Information was collected from secondary source, specifically, from recent journals and textbooks. However, in most of the literatures we found that employees are positive about the combination of intrinsic and extrinsic rewards as a way of achieving high organizational performance. Nevertheless, limitations and further research were also discussed and it was recommended among other things that organizations should invest in reward packages that can improve on employee commitment because employees who are not committed in their work cannot offer their maximum efforts for higher organizational performance to be realized.

Keywords: Reward, Intrinsic, Extrinsic, Employee, Organization, Performance, Agency, Stewardship