Abstract

In every organization, the productivity and performance of the employees are important to increase the effectiveness of the organization in the environment it is operating. However, the rewards and other incentives given to the employees can increase the productivity, commitment and effectiveness in their performance. The purpose of the study was to explore the impact of reward systems on employee performance at Simplex Engineering Ltd; Assess the effectiveness of existing reward system and whether there was a correlation between reward system in the organization and an increase in the performance of the employees. This was an empirical study. The non-probability and probability sampling technique were used i.e. random and purposive sampling were the criteria involved to ensure sample representativeness and therefore validity, reliability and generalizability of findings. The sample size used was 30 out of a population of 50 employees. In this study the inductive approach was used due to the fact that the data was collected and analysed before drawing to conclusions and recommendations. Using both the primary and secondary methods of data collection as analysed using SPSS, the findings revealed that the existing reward system of Brentwood suppliers was ineffective and must be revised; there was a relationship between rewards systems and employee performance. Study recommended that Management should harmonize the reward system in the company, Reward packages should be modified periodically as a response to the changing environmental needs of the workers as well as the world as a whole in an employer-employee participatory manner

Description