Article Sidebar

Download
Download Article

Main Article Content

Abstract

An inadequate employee reward system is one of the key reasons many employees approach their tasks with diminished enthusiasm, reduced focus, and inefficiency, which eventually hinders their productivity and undermines the overall success of the organization. To address the above problem, this study examined the effect of staff reward on the output of employees in Nigerian manufacturing firms thereby testing Henri Fayol's 7th Principle of Management. Specifically, the extent to which employee remuneration affects the value added of listed manufacturing firms in Nigeria was assessed, based on an ex-post facto research design. Purposive sampling was used in selecting a sample size of fifty-five out of the sixty-four listed manufacturing firms in Nigeria. Secondary data were collected from the annual reports of the firms between 2015 – 2023 accounting periods. Hypothesis was tested using panel estimated generalised least square with cross-section weights that addressed both heteroskedasticity and cross-sectional dependence. It was found that: staff reward significantly enhances employee output among listed manufacturing firms in Nigeria (β = 3.954302; p-value = 0.0000), aligning with the theoretical framework provided by Henri Fayol's 7th principle. In conclusion, an optimized reward system enhances organizational productivity by boosting employee engagement, as investing in staff rewards is a strategic move that improves performance and supports growth. Premised on this conclusion, we recommend that manufacturing firms should focus on designing compensation packages that are competitive within the industry, incorporate performance-based bonuses, and provide non-monetary incentives such as career development opportunities and recognition programs.

Keywords

Staff Reward Employee Output Henri Fayol's 7th Principle of Management

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Ikwuo, A. K., Nwite, I. M., & Ogechukwu Nworie, G. (2025). Reflecting Staff Reward in Employee Output: A Validation of Henri Fayol’s 7th Principle of Management Using Nigerian Manufacturing Sector. Golden Ratio of Human Resource Management, 5(2), 488–500. https://doi.org/10.52970/grhrm.v5i2.957
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abiri, O. C., Adedapo, A. A., & Adenagbe, O. A. (2024). Remuneration and Retirement Benefit as Correlates of Non-Academic Staff Productivity in Nigerian Universities. British Journal of Education, 12(2), 32–44.
  2. Adegbayibi, A. T., Akinyemi, O. M., & Adepiti, W. A. (2024). Human Resource Cost and Earnings Per Share Of Listed Manufacturing Firms In Nigeria. African Banking and Finance Review Journal, 11(11), 1–15.
  3. Adetunji, A., & Anthony, I. O. (2024). Effect of Remuneration on Business Growth in the 21st Century: A Case Study of Manufacturing Firms in Nigeria. Nigerian Journal of Banking and Financial Issues (NJBFI), 10(1).
  4. Agrawal, V. (2024, December 18). Henri Fayol's 14 principles of management: Complete overview. Simplilearn. https://www.simplilearn.com/principles-of-management-by-henri-fayol-article
  5. Anaike, C. L., Nworie, G. O., & Ochuka, C. E. (2024). Corporate citizenship and wealth maximisation: A re-evaluation of stakeholder theory using evidence from listed industrial goods firms in Nigeria. Asian Journal of Economics, Business and Accounting, 24(8), 262–273. https://doi.org/10.9734/ajeba/2024/v24i81455
  6. Bolatito, A. O. S., & Mohamoud, Y. A. (2024). Reward Management and Employee Performance: A Review of Job Satisfaction in Somalia. TWIST, 19(1), 128–137.
  7. Bosire, R. K., Muya, J., & Matula, D. (2021). Workers’ union activities moderate employee recognition programs and employee output: Evidence from Kenyatta National Hospital (KNH), Kenya. Saudi Journal of Business and Management Studies, 6(3), 61-70.
  8. Chikaire-Ofoego, L. C., & Egolum, P. U. (2024). Employee cost and financial performance of listed manufacturing firms in Nigeria. Journal of Global Accounting, 10(1), 263–290.
  9. Chizoba, O. S., Daniel, C. O., & George, S. (2024). Effect of compensation administration on employees’ performance in private universities in North Central Nigeria. WSEAS Transactions on Business and Economics, 21, 988–1000.
  10. Fayol, H. (1970). Administration. Dunod, Paris.
  11. Ilodilibe, L. L., Simeon, N. A., & Nworie, G. O. (2024). Organizational ergonomics: A stimulus for improved employee performance in manufacturing firms in Enugu Metropolis. International Journal of Academic Multidisciplinary Research (IJAMR), 8(11), 111–120. Retrieved from http://ijeais.org/wp-content/uploads/2024/11/IJAMR241116.pdf
  12. Iseh, G. N., & Ifegbu, L. I. (2024). Effect of reward management on performance of hotels in Anambra and Delta States of Nigeria. Nigerian Journal of African Studies (NJAS), 6(1).
  13. Karan, R. (2024, December 10). Henri Fayol’s 14 principles of management with examples. Shiksha. https://www.shiksha.com/online-courses/articles/principles-of-management-every-manager-should-know/
  14. Korolo, A. S., & Korolo, E. O. (2024). Human Resource Costs and Corporate Financial Performance of Listed Deposit Money Banks in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 2(2), 56–70.
  15. Miftari, F. (2024). The Impact of Modern Management Theories. UTMS Journal of Economics, 15(1).
  16. Nwajei, F. L., & Ikeogwu, S. N. (2024). Reward Management and Employee Performance in Manufacturing Firms in Southeast Nigeria. European Journal of Marketing and Management Sciences, 7(3), 1–16.
  17. Nworie, G. O., & Orji-Okafor, T. G. (2024). Quadruple bottom line disclosure among listed manufacturing firms in Nigeria: A paradigm for cost savings. International Journal of Management, Accounting and Economics, 11(10), 1416-1437. https://doi.org/10.5281/zenodo.13910231
  18. Nworie, G. O., Odah, U., & Nworie, F. N. (2024). Managing the challenges of digitisation and a contemporary business issue at Coca-Cola. International Journal of Academic Accounting, Finance & Management Research (IJAAFMR), 8(11), 129-133. Retrieved from http://ijeais.org/wp-content/uploads/2024/11/IJAAFMR241112.pdf
  19. Nworie, G.O., Okafor, T.G. & John-Akamelu, C.R. (2022). Firm-level traits and adopting computerised accounting information systems among listed manufacturing firms in Nigeria. Journal of Global Accounting, 8(3), 128-148. Retrieved from https://journals.unizik.edu.ng/index.php/joga/article/view/1858
  20. Nwosu, N. L., & Okundamiya, F. J. (2024). Effect of financial and non-financial incentives on staff productivity of First Bank Plc in Umuahia, Abia State, Nigeria. IIARD International Journal of Economics and Business Management, 10(5), 134-153.
  21. Okolie, U. C., & Egbon, T. N. (2024). Reward System and Employee Commitment: Evidence From the Delta State Civil Service Commission, Asaba. PERSPEKTIF, 13(1), 273-284.
  22. Okurume, C. N. (2024). Navigating reward system: Impact on employee involvement of service delivery firms in South South Nigeria. International Academy Journal of Management Annals, 9(1), 43-57. https://doi.org/272142-56218914
  23. Omirigwe, A. I., & Samuel, N. I. (2024). Influence of Motivations on Job Output of Journalists in Public Radio Stations in Benue State, Nigeria. International Journal of Sub-Saharan African Research, 2(1), 49-58.
  24. Pagulong, A. (2024). Reward System and Teachers' Commitment in Secondary Schools in Babak District, Island Garden City of Samal. Nexus International Journal of Science and Education, 1(2).
  25. Rana, M. M. (2024). Industry 4.0 and Fayol’s 14 Principles of Functional Management: Relevance, Emerging Practices, and Consequences. Asian Journal of Economics, Business and Accounting, 24(7), 82–96.
  26. Ryan, R.M. & Deci, E.L. (2020). Intrinsic and extrinsic motivation from a self-determination theory perspective: Definitions, theory, practices, and future directions. Contemporary educational psychology, 61, 101860.
  27. Ucherwuhe, S. I., & Akorga, M. C. (2024). Effect of compensation on employees’ productivity in MIKAP Nigeria PLC, Makurdi, Benue State. International Academy Journal of Business Administration Annals, 9(6), 149–165.