CHAPTER ONE

                                      INTRODUCTION

1.1    BACKGROUND OF THE STUDY

          Employees are the most valuable asset to an organization and they play an important role in preserving the successful image of organization. Employee performance is the main factor in ensuring that the organization is run smoothly and successfully. Good employee performance will improve the organization performance. To maintain a good employee performance, a suitable performance management is needed. According to Hermann (2007:42), a performance management is defined as a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.

          Performance management requires all managers to ensure that all of their employee activities and outputs are congruent with the organization’s goal and therefore help the organization to gain a competitive advantage (Aguinis,

2009:22). Organization that have a good performance management will have many advantages such as increased self-esteem, clear mind regarding their organizational goals, increased motivational and others (Allen and Kilmann, 2001:110).

          Managing employees’ reward appropriately is an important factor as a return for their contributions or performance to organization. According to Adam Equity Theory (1963), less reward may result to the decreasing of employees’ performance such as high number of absenteeism, as well as lack of interest in doing task that is not included in their job description. In other word calculative in whatever task given to them, not focus on their job which is also the decreasing resulted in job quality. The theory also propagate that the reduction in employees’ performance could happen whenever they felt that their contributions were not fairly rewarded. In other words, rewards can influence employees’ performance.

          Employer or organization should reward the positive performance. Reward will motivate the employees and

when the employee motivation increased, it’s also will increase the employee performance. In addition, employee performance also can be enhanced through a continuous and interactive process to help departments and teams achieve business goals and to help employees to improve their performance. Increased in employees performances will increase the organization performance.

          This research work deals extensively with the role of reward management on organizational performance with specific reference to University of Nigeria, Nsukka, Enugu State.

          The former Nigerian college of Arts, Science and Technology, Enugu, was incorporated into the University in 1961, and its buildings now form the Enugu Campus (200 hectares) of the University located in the heart of Enugu, the administrative capital of Enugu State of Nigeria. Enugu is a modern city,  accessible by air, rail and road. The faculties of Business Administration, Environmental Studies, Law and Medical Sciences are located at the Enugu Campus.

          The Teaching Hospital (UNTH) attached to the University is presently sited at Ituku – Ozalla (25 kilometres) South of Enugu on a 500 hectare site. It also hosts the Faculty of Dentistry and Health Sciences and Technology.

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