ABSTRACT

The aim of this empirical study is to understand the impact of reward system on employees’ effective performance in the Nigerian Automobile Service Industry. The purpose of the study is to identify result-oriented reward strategies that will enhance, retain and develop competence and capability of workers in the industry in outweighing prevalence rate of economic recession and competitive rate in the industry. Hence, the primary objective of the study is to critically investigate the relationship between reward system and employees’ effective performance in the automobile service industry; using the pay structure and motivation as independent variables and performance, the dependent variable of the study.

In quest of investigating relationship existing between reward system and employees’ effective performance, triangulation method of data collection was used, while data were collected from 87 respondents to administered questionnaire and 4 interviewees to semi - structured open-ended questions from four automobile service firms in Lagos, Nigeria. Data collected through these sources were analysed using frequency distribution for quantitative analysis of the 87 respondents, and manual content analysis for collated data from interviewees. The research finding revealed that there is a strong and positive relationship between reward system and employees’ performance. Similarly, the result further showed that pay structure and motivation has a direct impact on the performance of workers in the industry. However, generated result cannot be generalised to the entire industry due to the concentration of appraised firms in one state (Lagos) amongst 36 other states in Nigeria. Therefore, further research in incorporating other automobiles service firms across the six geo-political zones should be conducted focusing more on the quantitative approach.

It was recommended that firms in the industry should consider rewarding overtime financially in boosting effort and commitments of workers. Secondly, the issue of training and recognition should be highly emphasised in the industry in sustaining effective performance and continuous development of skills, knowledge and behavioural attitude towards work.