Employee and Organisational Performance: Employees Perception of Intrinsic and Extrinsic Rewards System.

Abstract

The study aimed to evaluate the perception of employees on both intrinsic and extrinsic reward system and whether reward system impact their performance and the organization performance at large. To achieve the objective, the study employed Structural Equation Modelling (PLS-SEM) approach to test six hypothesis. The study sampled 400 employee of Zenith Bank Plc using questionnaire send to the respondent emails. PLS-SEM result revealed that both extrinsic and intrinsic rewards have positive and significant impact on employee performance, although, extrinsic appear more potent than intrinsic rewards. It was further revealed that three of the four measure of employee performance; quality job, effective service delivery, customer rating has positive significant with organization performance while time management was unable to explain organization performance. We discovered also that gender does not play any significant role on employee performance, but age does. The study therefore concluded that rewards play an important role in both employee performance and organization performance.