Abstract
An organisation’s reward system is arguably one of the most critical elements of organisational culture with an enormous bearing on employee motivation. The resolve of this study was to debunk the nexus between the reward system and employee motivation in a selected organisation. A discussion of extant literature on the nexus between reward as a critical component of organisational culture and employee motivation was conducted. An empirical investigation of the relationship between the dependent and the independent variables was pursued using a positivist research paradigm whence a quantitative methodology was used to gather data through a structured self-administered questionnaire hence a survey research design. The results of the study confirmed the hypothesised relationship between the selected firm’s reward system and employee motivation. The inadequacies of the organisation’s reward structure against the requirements of effective employee motivation were exposed. For instance, the rewards offered by the organisation did not meet employee needs and expectations and were not proportionate to the quality of employee output. There was a preference for monetary compensation in place of non-monetary rewards thus promoting extrinsic rather than intrinsic motivation. This study unravelled the positive and negative effects of an organisation’s reward system on employee motivation. An organisational culture that is premised on an effective reward system is the panacea to effective human resources management. To enhance employee motivation through the reward system, management of the selected firm should facilitate the development of a well-articulated psycho-social contract that is agreed upon between top management and employees which should explicitly spell-out the expectations of both parties that must be fulfilled at all times.
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