The Impact of Reward Systems on Corporate Performance: A Case Study of Ghana Commercial Bank Limited
AbstractEmployees remain the greatest asset of any organization – whilst they provide performance, organizations offer rewards. A well designed system for rewarding labour greatly has a bearing on the output of employees and therefore impact on the performance of the organization as a whole. The study aimed at providing an objective view of organizations reward systems and its impact on corporate performance. It evaluated the reward systems of Ghana Commercial Bank Ltd. (GCB) and established whether their current reward systems have any bearing on corporate performance. The research gathered data from two main sources namely secondary and primary sources. The two main techniques employed in gathering the primary data were questionnaire survey and interviews. It was found out from the study that, there was a positive relationship between reward and corporate performance. Majority of respondents indicated that reward stimulates them to work harder and they are prepared to work harder if they are given more incentives or paid more. It was also revealed from the study that there were enormous reward packages in the organization but some of the respondents (staff members) were not aware. It was recommended that compensation packages should be linked to employee satisfaction. The rewards should provide value for money. In other words, more should be derived from the reward in terms of productivity and profitability than the cost of rewarding. Again, it was imperative on organizations to create extrinsic as well as intrinsic reward systems for the motivation and retention of the best calibre of staff. Employees should also be made aware of the reward components in their employment contract.
A thesis submitted to the Institute of Distance Learning Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTER OF BUSINESS ADMINISTRATION, 2012