Impact of Fair Reward System on Employees Job Performance in Nigerian Agip Oil Company Limited Port-Harcourt
M. O. Agwu *
Department of Business Administration, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The purpose of this research is to ascertain the impact of fair reward system on employees’ job performance in Nigerian Agip Oil Company limited Port-Harcourt. The research question addressed the extent at which improved employees job performance/reduced rate of industrial action is influenced by the implementation of fair reward system in Nigerian Agip oil company limited Port-Harcourt. The core aspect of the study is the use of cross-sectional survey research design in generating the required primary data. The place of study is the Nigerian Agip Oil Company limited Port Harcourt while the duration of study is between October 2011 and September 2012. A sample of 396(34 managers, 97 supervisors and 259 workmen) respondents determined at 5% level of significance for sample error, using Yamane’s formula, was selected from a population of 40,568 employees using stratified random sampling method for the purpose of questionnaire administration. The results indicated that implementation of fair reward system in Nigerian Agip oil company limited Port-Harcourt to a large extent influenced improved employees’ job performance(82.05%response rate) and reduced rate of industrial action (80.77% response rate). It therefore recommends among others: regular review of organizational reward system to ensure fairness, maintenance of competitive rates of pay, flexibility in reward administration and rewarding people for the value they create.
Keywords: Fair reward system, improved performance, Nigerian Agip oil company, equity theory.