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REWARD SYSTEMS AND WORK ATTITUDE AMONG EMPLOYEES OF AIRLINE COMPANIES IN PORT HARCOURT

REWARD SYSTEMS AND WORK ATTITUDE AMONG EMPLOYEES OF AIRLINE COMPANIES IN PORT HARCOURT

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REWARD SYSTEMS AND WORK ATTITUDE AMONG EMPLOYEES OF AIRLINE COMPANIES IN PORT HARCOURT

ABSTRACT: Over the years, rewards and work attitudes have been issues of concern to employees and employers in various organizations globally. This also applies to airline companies in Port Harcourt, Rivers State. In this view, an effectively administered system of rewards can provide an incentive for quality workmanship and performance. A Reward system is one important Human Resource Management strategy for attracting and retaining high-quality employees as well as facilitating them to improve their performance and attitude. In light of this, this research sought to examine the relationship between reward systems and employees’ work attitudes of airline companies in Port Harcourt. This study adopted a survey research design. The target population comprised of 269 staff of five airline companies in Port Harcourt, Rivers State. Krejcie-Morgan’s formula was used to determine the sample size of 158 respondents. A structured questionnaire was used to generate data. The questionnaire was adapted with Cronbach’s Alpha test for the constructs of the variables ranging from 0.741-0.956 respectively. Data were analyzed using descriptive statistics such as frequencies, percentages, and inferential statistics (regression). The findings revealed that there was a significant positive relationship between intrinsic reward and employee work attitude (R=0.815, R²=0.665, p=<0.05). The extrinsic reward has a significant positive effect on employee work attitude (R=0.747, p=<0.05). Job involvement has a significant positive effect on employee work attitude (R=0.747, R²=0.558,p=<0.05). Job satisfaction has a significant positive effect on employee work attitude (R=0.826, R²=0.683, p=<0.05). It was concluded that reward system variables had a positive effect on the employee work attitude of airline companies in Port Harcourt. It was recommended that the management of these airline companies improve on the rewards that have a direct and significant effect on employee’s work attitude in order to reduce the level of dissatisfaction among the employees which could lead to low performance and productivity.

Keywords: Reward systems, Work Attitude, Airline Companies, Job Satisfaction, Job Involvement, Intrinsic Reward, Extrinsic Reward.

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

The aviation industry in Nigeria has been experiencing explosive growth in recent years. However, it faces many problems, amongst which are issues relating to the employees’ work attitude in relation to the reward systems in the aviation industry. The rationale behind the use of rewards to employees is that motivated employees become satisfied in terms of fulfillment in their wants, both financial and non-financial.  Failure to do so would lead to employee turnover (Asazu, 2009). On one hand, employees prefer receiving intrinsic rewards such as praise and recognition for certain work accomplishments, while on the other hand, employees would rather have extrinsic rewards in terms of salaries and bonuses offered to them (Lawler, 2008; Sajuyigbe, Bosede & Adeyemi, 2003).

Employee reward is one of the highly demanded factors in influencing the work attitude among the employees of an organization. One of the most important variables under the organizational reward system is the organizational morale (Avwokeni, 2006). This is an employee’s feeling of being accepted by, and belonging to a group through common goals, confidence in the desirability of these goals and the desire to progress towards the goals (Azolukwaum and Perkins, 2014).

According to Anku-Tsede & Kutin (2013), reward systems can be seen as a means of actively engaging and renewing the employee’s sense of commitment and mission of an organization. In lieu of this, an effectively administered system of rewards can provide an incentive for quality work attitude. A poorly administered reward system, however, can lead to low job satisfaction, poor organizational commitment, and in extreme cases, a high percentage of employee turnover.

The growth and success of every organization are highly dependent on its staff (Ali, 2013; Markova & Ford, 2011). Therefore, maximizing the overall work attitude of employees requires an understanding of those factors that encourage the employees to put in extra effort at work (Hafiza, Shah, Jamseheed & Zaman, 2011). Reward system is one important human resource management strategy for attracting and retaining high-quality employees as well as facilitating them to improve their work attitude (Dewhurst, Gutridge & Mohr, 2010; Ibrar & Khan, 2015).

A Reward system can be seen as a means of actively engaging and renewing the employee’s sense of belonging and recognition by the organization (Anku-Tsede & Kutin, 2013). Rewards are provided by the organization to employees in the form of fringe benefits, salaries and wages, job security, promotions, and other benefits. These rewards are put in place to motivate the behavior that will contribute to the achievement of the goals of the organization. The questions that readily come to mind are “What sort of behavioral attitude do organizations want?”, “How can the rewarding process promote the desired behavior?”, “What motivates an organization to design reward packages for the employees?” According to the equity theory, the adequacy of such rewards will, to a large extent, depend on the value the employee’s place on the inputs they bring to the job in the form of training and development, time, effort, etc., with the outcomes (rewards) such as pay, promotion, and recognition they receive as a result of performing the job (Fajana, 2002).

A Reward system includes all organizational components which include people, processes, rules, and decision-making activities involved in the allocation of compensation and benefits to employees in exchange for their contribution to the organization. Rewards are tangible benefits one can receive from engaging in a specific task. This opinion is reiterated by Torrington, Hall, Taylor, and Atkinson (2011) who argue that although there are few people that claim to enjoy work for the sake of it, most people work because it provides a means of sustaining a livelihood. This implies that people are generally concerned with the number of benefits, both financial and non-financial, attached to their work.

Non-financial rewards are also important facilitators of work attitude with the argument that financial performance on its own is not capable of effectively motivating employees towards optimum performance and work attitude (Babakus, Yavas, Karatape & Avci, 2003; Bason, 2003; Dewhurst et al., 2009). Three major non-financial rewards reported to have a significant effect on employees’ work attitude are (i) recognition from top-level managers (ii) responsibility of leading task forces (iii) personal and professional growth. In addition, Neckermann and Kosfeld (2008) identify significant non-financial rewards to include a sense of accomplishment, autonomy, acknowledgment, etc.

According to Armstrong (2007), the conceptual basis of reward is the bringing together of the different reward processes that are interrelated, complementary and mutually reinforcing, with the focus of stimulating a deeper and long-lasting impact on the motivation and work attitude of employees. Similarly, Nazir, Shah, and Zaman (2012) describe rewards as an enclosing of aspects of work benefits that employees attach value to, whether it concerns the provision of a healthy work environment, better opportunities for learning and development, or the benefits linked to the pay. An effective reward system, therefore, incorporates both financial incentives (fringe benefits and pay) and non-financial incentives (recognition and autonomy) in driving employee motivation for improved work attitudes. Dewhurst et al. (2009) argue that the present economic situation has pushed successful companies around the world to adjust their reward systems, moving from financial to non-financial incentive systems. Some organizations, however, still stick to the traditional method of rewards that lay emphasis on bonuses and pay compensation. Nevertheless, rewarding employees can be a tricky task as there is no general model towards its implementation, arguing that a successful reward system in one organization can be a failure in another organization.

This study contributes by stating the relationship between reward systems and work attitude among employees of airline companies in Port Harcourt, Rivers State, given the study variables within this socioeconomic and national context.

1.2 Statement of the Problem 

In spite of the increasing interest of organizations to provide effective reward programs that can motivate employees to work harder and increase their job satisfaction, most employees in Nigeria appear to be dissatisfied with their rewards. Thus, the intention of any reward system is to attract, retain, and maintain a satisfied workforce that will always stay focused on producing quality products or services in an efficient manner. So many companies find it difficult to establish an effective reward system that suits both the demands of the organization and the organization’s profitability (Dewhurst, 2009). Most employees, on the other hand, appear to be dissatisfied with their rewards regardless of the increasing interest of organizations to provide effective reward systems that can motivate them to work harder and develop their attitude towards work. The unsteadiness in the aviation sector can throw those who work in it into all manners of psychological conditions such as feelings of job insecurity, occupational stress, and loss of sense of accomplishment, leading to a reduction in their job performance and general attitude towards work (Iwu & Ukpere, 2012).

Given the importance of reward systems and work attitude among employees of airline companies, it is disheartening to note that the salaries and wages in the aviation sector are largely disconnected from the demands of fairness and moderation (Ejumudo, 2014). The failure in designing appropriate reward systems has continued to have a negative effect on employees’ work attitude and overall effectiveness of the airline companies. This has led to counter-productive behaviors which consequently lead to a reduction in employees’ work attitude.

Amah, Nwuche, and Chukwuigwe (2013) confirmed in their separate researches that low employees’ job satisfaction and attitude in the workplace are attributed to low pay. A percentage of the employees in airline companies have been culprits of being unfriendly and rude to potential travelers, absenteeism from their work posts, amongst others. The poor attitude of employees towards work arises from poorly structured and, in some cases, unavailable reward systems, through lack of fringe benefits to workers, recognition, and appreciation offered from the airline companies to the employees (Obikeze, 2012).

The needs of employees are diverse and as such, these require a comprehensive reward system to meet them. Airline companies have been posed with the challenge of implementing and offering competitive rewards to the employees for the purpose of enhancing their work attitudes. Special recognition to acknowledge an outstanding individual or team achievements with financial rewards have been neglected by the management of several airline companies (Kawara, 2014). This has caused the zeal of the employees towards work to decline as they feel less motivated to be their best at their various jobs (Hafiza, Shah & Zamam, 2011). The lack of promotion and mundane work has significantly contributed to employees’ lack of satisfaction and negative consequences such as lower commitment, high employee turnover, and absenteeism. Similarly, employees who remain in one position with no opportunities for moving to higher positions have been said to exhibit a negative attitude towards work.

There is a general lack of positive work attitude among employees as a result of low wages and salaries, few fringe benefits, lack of recognition, and job security. Akinbowale and Lourens (2013) assert that most companies in Nigeria consider the employees as a liability and as such do not remunerate them appropriately. This is a social concern and as such, this study is aimed at examining the effects of reward systems and work attitude among employees of airline companies in Port Harcourt, Rivers State.

1.3 Operational Framework

1.4 Objective of the Study

The main objective of the study is to examine the effects of reward systems and work attitude among employees of airline companies in Port Harcourt, Nigeria.

The specific objectives are to:

  1. Evaluate the effect of the intrinsic reward system on employees’ work attitude of airline companies in Port Harcourt.
  2. Examine the effect of an extrinsic reward system on employees’ work attitude of airline companies in Port Harcourt.
  3. Ascertain the effect of job involvement on employees’ work attitude of airline companies in Port Harcourt.
  4. Determine the effect of job satisfaction on employees’ work attitudes of airline companies in Port Harcourt.

1.5 Research Questions

In line with the stated objectives, the study will answer the following questions:

  1. What is the effect of the intrinsic reward system on employees’ work attitude of airline companies in Port Harcourt?
  2. How does an extrinsic reward system affect employees’ work attitude of airline companies in Port Harcourt?
  3. What is the relationship between job involvement and employees’ work attitude of airline companies in Port Harcourt?
  4. How does job satisfaction affect employees’ work attitudes of airline companies in Port Harcourt?

1.6 Research Hypothesis

The following hypotheses were derived from research questions and are written in the null format:

HO1: Intrinsic reward systems have no significant effect on employees’ work attitudes of airline companies in Port Harcourt.

HO2: Extrinsic reward systems have no significant effect on employees’ work attitude of airline companies in Port Harcourt.

HO3: Job involvement has no significant relationship with employees’ work attitude of airline companies in Port Harcourt.

HO4: Job satisfaction has no significant relationship with employees’ work attitude of airline companies in Port Harcourt.

1.7 Significance of the Study

The findings of this research would help the management deal with the challenges of rewards and how it affects employees’ work attitude; and also how to design an effective reward system that would attract, retain and maintain competent and satisfied workers in different departments in the airline companies. The result obtained from the study would give the management a better understanding of the numerous reward packages that would motivate and enhance the workers’ attitudes.

1.8 Scope of the Study

This study focuses on the reward systems and works attitude among employees of airline companies in Port Harcourt. The research would be limited to five (5) airline companies namely: Air Peace, Arik Air Nigeria Limited, Dana Airlines Ltd, Fly Aero Nigeria Limited, and Azman Air. These airline companies were selected because the reward system is very crucial to them and to also ensure an in-depth examination of the research focus in each organization such that the results will provide useful information. The research design that was adopted for this study is the research method. The target population of the study consisted of all employees of the five selected airline companies in July 2019.

1.9 Limitations of the Study

Nonetheless, these results must be interpreted with caution and a number of limitations should be borne in mind. There are two major limitations in this study that could be addressed in future research. The first is a methodological limitation which lies with the issues with sample and selection. This occurs when there is a limited ability to gain access to the appropriate type or geographical scope of participants. In this case, the people who respond to the survey may not truly be part of the random sample. The second limitation is theoretical. There may be a problem with limited access to respondents. Due to this, the research design may be restructured.

1.10 Operational definition of terms

Reward: Reward refers to what an employee receives from his employer as payment or compensation for performing a job.

Reward system: Reward system refers to the different types of rewards available and provided to employees by their organizations.

Intrinsic reward: Intrinsic reward refers to the reward one derives from the content of the work itself.

Extrinsic reward: Extrinsic reward refers to the reward attained that is external to the job itself.

Work attitude: Work attitude is a set of evaluations of one’s job that constitutes one’s feelings towards, beliefs about, and attachment to one’s job.

Salaries and wages: Salaries and wages are the remunerations paid to employees for work done.

Fringe benefits: Fringe benefits refer to the extra benefits supplementing employees’ wages and salaries.

Job security: Job security is the assurance that an employee has about the continuity of gainful employment.

Promotion: Promotion refers to the advancement of an employee’s rank or position in a hierarchical structure.

Sense of accomplishment: Sense of accomplishment refers to the feeling an employee has for achieving something great.

Motivation: Motivation is the reason for employees’ actions, willingness, and goals.

1.11 Organization of the Study

This research work shall be organized into five chapters.

Chapter one is the introductory chapter that includes the background of the study, statement of the problem, objectives of the study, significance of the study, research questions, hypothesis that would be tested, and scope of the research work as well as limitation and definition of terms.

Chapter two concerns the review of literature which focuses on different scholarly views and previous research findings of various scholars beginning with the theoretical framework.

Chapter three analyzes the research methodology. The method used in carrying out the research and the population size are also inclusive.

Chapter four consists of data analysis results and discussion of findings. It focuses on the presentation and analysis of data collected through the research instruments.

Chapter five comprises of summary, conclusions, and recommendations. This is the last chapter of the research work and it includes a discussion of result conclusions and recommendations for future purpose.

Category: Tag:

REWARD SYSTEMS AND WORK ATTITUDE AMONG EMPLOYEES OF AIRLINE COMPANIES IN PORT HARCOURT

ABSTRACT: Over the years, rewards and work attitudes have been issues of concern to employees and employers in various organizations globally. This also applies to airline companies in Port Harcourt, Rivers State. In this view, an effectively administered system of rewards can provide an incentive for quality workmanship and performance. A Reward system is one important Human Resource Management strategy for attracting and retaining high-quality employees as well as facilitating them to improve their performance and attitude. In light of this, this research sought to examine the relationship between reward systems and employees’ work attitudes of airline companies in Port Harcourt. This study adopted a survey research design. The target population comprised of 269 staff of five airline companies in Port Harcourt, Rivers State. Krejcie-Morgan’s formula was used to determine the sample size of 158 respondents. A structured questionnaire was used to generate data. The questionnaire was adapted with Cronbach’s Alpha test for the constructs of the variables ranging from 0.741-0.956 respectively. Data were analyzed using descriptive statistics such as frequencies, percentages, and inferential statistics (regression). The findings revealed that there was a significant positive relationship between intrinsic reward and employee work attitude (R=0.815, R²=0.665, p=<0.05). The extrinsic reward has a significant positive effect on employee work attitude (R=0.747, p=<0.05). Job involvement has a significant positive effect on employee work attitude (R=0.747, R²=0.558,p=<0.05). Job satisfaction has a significant positive effect on employee work attitude (R=0.826, R²=0.683, p=<0.05). It was concluded that reward system variables had a positive effect on the employee work attitude of airline companies in Port Harcourt. It was recommended that the management of these airline companies improve on the rewards that have a direct and significant effect on employee’s work attitude in order to reduce the level of dissatisfaction among the employees which could lead to low performance and productivity.

Keywords: Reward systems, Work Attitude, Airline Companies, Job Satisfaction, Job Involvement, Intrinsic Reward, Extrinsic Reward.

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

The aviation industry in Nigeria has been experiencing explosive growth in recent years. However, it faces many problems, amongst which are issues relating to the employees’ work attitude in relation to the reward systems in the aviation industry. The rationale behind the use of rewards to employees is that motivated employees become satisfied in terms of fulfillment in their wants, both financial and non-financial.  Failure to do so would lead to employee turnover (Asazu, 2009). On one hand, employees prefer receiving intrinsic rewards such as praise and recognition for certain work accomplishments, while on the other hand, employees would rather have extrinsic rewards in terms of salaries and bonuses offered to them (Lawler, 2008; Sajuyigbe, Bosede & Adeyemi, 2003).

Employee reward is one of the highly demanded factors in influencing the work attitude among the employees of an organization. One of the most important variables under the organizational reward system is the organizational morale (Avwokeni, 2006). This is an employee’s feeling of being accepted by, and belonging to a group through common goals, confidence in the desirability of these goals and the desire to progress towards the goals (Azolukwaum and Perkins, 2014).

According to Anku-Tsede & Kutin (2013), reward systems can be seen as a means of actively engaging and renewing the employee’s sense of commitment and mission of an organization. In lieu of this, an effectively administered system of rewards can provide an incentive for quality work attitude. A poorly administered reward system, however, can lead to low job satisfaction, poor organizational commitment, and in extreme cases, a high percentage of employee turnover.

The growth and success of every organization are highly dependent on its staff (Ali, 2013; Markova & Ford, 2011). Therefore, maximizing the overall work attitude of employees requires an understanding of those factors that encourage the employees to put in extra effort at work (Hafiza, Shah, Jamseheed & Zaman, 2011). Reward system is one important human resource management strategy for attracting and retaining high-quality employees as well as facilitating them to improve their work attitude (Dewhurst, Gutridge & Mohr, 2010; Ibrar & Khan, 2015).

A Reward system can be seen as a means of actively engaging and renewing the employee’s sense of belonging and recognition by the organization (Anku-Tsede & Kutin, 2013). Rewards are provided by the organization to employees in the form of fringe benefits, salaries and wages, job security, promotions, and other benefits. These rewards are put in place to motivate the behavior that will contribute to the achievement of the goals of the organization. The questions that readily come to mind are “What sort of behavioral attitude do organizations want?”, “How can the rewarding process promote the desired behavior?”, “What motivates an organization to design reward packages for the employees?” According to the equity theory, the adequacy of such rewards will, to a large extent, depend on the value the employee’s place on the inputs they bring to the job in the form of training and development, time, effort, etc., with the outcomes (rewards) such as pay, promotion, and recognition they receive as a result of performing the job (Fajana, 2002).

A Reward system includes all organizational components which include people, processes, rules, and decision-making activities involved in the allocation of compensation and benefits to employees in exchange for their contribution to the organization. Rewards are tangible benefits one can receive from engaging in a specific task. This opinion is reiterated by Torrington, Hall, Taylor, and Atkinson (2011) who argue that although there are few people that claim to enjoy work for the sake of it, most people work because it provides a means of sustaining a livelihood. This implies that people are generally concerned with the number of benefits, both financial and non-financial, attached to their work.

Non-financial rewards are also important facilitators of work attitude with the argument that financial performance on its own is not capable of effectively motivating employees towards optimum performance and work attitude (Babakus, Yavas, Karatape & Avci, 2003; Bason, 2003; Dewhurst et al., 2009). Three major non-financial rewards reported to have a significant effect on employees’ work attitude are (i) recognition from top-level managers (ii) responsibility of leading task forces (iii) personal and professional growth. In addition, Neckermann and Kosfeld (2008) identify significant non-financial rewards to include a sense of accomplishment, autonomy, acknowledgment, etc.

According to Armstrong (2007), the conceptual basis of reward is the bringing together of the different reward processes that are interrelated, complementary and mutually reinforcing, with the focus of stimulating a deeper and long-lasting impact on the motivation and work attitude of employees. Similarly, Nazir, Shah, and Zaman (2012) describe rewards as an enclosing of aspects of work benefits that employees attach value to, whether it concerns the provision of a healthy work environment, better opportunities for learning and development, or the benefits linked to the pay. An effective reward system, therefore, incorporates both financial incentives (fringe benefits and pay) and non-financial incentives (recognition and autonomy) in driving employee motivation for improved work attitudes. Dewhurst et al. (2009) argue that the present economic situation has pushed successful companies around the world to adjust their reward systems, moving from financial to non-financial incentive systems. Some organizations, however, still stick to the traditional method of rewards that lay emphasis on bonuses and pay compensation. Nevertheless, rewarding employees can be a tricky task as there is no general model towards its implementation, arguing that a successful reward system in one organization can be a failure in another organization.

This study contributes by stating the relationship between reward systems and work attitude among employees of airline companies in Port Harcourt, Rivers State, given the study variables within this socioeconomic and national context.

1.2 Statement of the Problem 

In spite of the increasing interest of organizations to provide effective reward programs that can motivate employees to work harder and increase their job satisfaction, most employees in Nigeria appear to be dissatisfied with their rewards. Thus, the intention of any reward system is to attract, retain, and maintain a satisfied workforce that will always stay focused on producing quality products or services in an efficient manner. So many companies find it difficult to establish an effective reward system that suits both the demands of the organization and the organization’s profitability (Dewhurst, 2009). Most employees, on the other hand, appear to be dissatisfied with their rewards regardless of the increasing interest of organizations to provide effective reward systems that can motivate them to work harder and develop their attitude towards work. The unsteadiness in the aviation sector can throw those who work in it into all manners of psychological conditions such as feelings of job insecurity, occupational stress, and loss of sense of accomplishment, leading to a reduction in their job performance and general attitude towards work (Iwu & Ukpere, 2012).

Given the importance of reward systems and work attitude among employees of airline companies, it is disheartening to note that the salaries and wages in the aviation sector are largely disconnected from the demands of fairness and moderation (Ejumudo, 2014). The failure in designing appropriate reward systems has continued to have a negative effect on employees’ work attitude and overall effectiveness of the airline companies. This has led to counter-productive behaviors which consequently lead to a reduction in employees’ work attitude.

Amah, Nwuche, and Chukwuigwe (2013) confirmed in their separate researches that low employees’ job satisfaction and attitude in the workplace are attributed to low pay. A percentage of the employees in airline companies have been culprits of being unfriendly and rude to potential travelers, absenteeism from their work posts, amongst others. The poor attitude of employees towards work arises from poorly structured and, in some cases, unavailable reward systems, through lack of fringe benefits to workers, recognition, and appreciation offered from the airline companies to the employees (Obikeze, 2012).

The needs of employees are diverse and as such, these require a comprehensive reward system to meet them. Airline companies have been posed with the challenge of implementing and offering competitive rewards to the employees for the purpose of enhancing their work attitudes. Special recognition to acknowledge an outstanding individual or team achievements with financial rewards have been neglected by the management of several airline companies (Kawara, 2014). This has caused the zeal of the employees towards work to decline as they feel less motivated to be their best at their various jobs (Hafiza, Shah & Zamam, 2011). The lack of promotion and mundane work has significantly contributed to employees’ lack of satisfaction and negative consequences such as lower commitment, high employee turnover, and absenteeism. Similarly, employees who remain in one position with no opportunities for moving to higher positions have been said to exhibit a negative attitude towards work.

There is a general lack of positive work attitude among employees as a result of low wages and salaries, few fringe benefits, lack of recognition, and job security. Akinbowale and Lourens (2013) assert that most companies in Nigeria consider the employees as a liability and as such do not remunerate them appropriately. This is a social concern and as such, this study is aimed at examining the effects of reward systems and work attitude among employees of airline companies in Port Harcourt, Rivers State.

1.3 Operational Framework

1.4 Objective of the Study

The main objective of the study is to examine the effects of reward systems and work attitude among employees of airline companies in Port Harcourt, Nigeria.

The specific objectives are to:

  1. Evaluate the effect of the intrinsic reward system on employees’ work attitude of airline companies in Port Harcourt.
  2. Examine the effect of an extrinsic reward system on employees’ work attitude of airline companies in Port Harcourt.
  3. Ascertain the effect of job involvement on employees’ work attitude of airline companies in Port Harcourt.
  4. Determine the effect of job satisfaction on employees’ work attitudes of airline companies in Port Harcourt.

1.5 Research Questions

In line with the stated objectives, the study will answer the following questions:

  1. What is the effect of the intrinsic reward system on employees’ work attitude of airline companies in Port Harcourt?
  2. How does an extrinsic reward system affect employees’ work attitude of airline companies in Port Harcourt?
  3. What is the relationship between job involvement and employees’ work attitude of airline companies in Port Harcourt?
  4. How does job satisfaction affect employees’ work attitudes of airline companies in Port Harcourt?

1.6 Research Hypothesis

The following hypotheses were derived from research questions and are written in the null format:

HO1: Intrinsic reward systems have no significant effect on employees’ work attitudes of airline companies in Port Harcourt.

HO2: Extrinsic reward systems have no significant effect on employees’ work attitude of airline companies in Port Harcourt.

HO3: Job involvement has no significant relationship with employees’ work attitude of airline companies in Port Harcourt.

HO4: Job satisfaction has no significant relationship with employees’ work attitude of airline companies in Port Harcourt.

1.7 Significance of the Study

The findings of this research would help the management deal with the challenges of rewards and how it affects employees’ work attitude; and also how to design an effective reward system that would attract, retain and maintain competent and satisfied workers in different departments in the airline companies. The result obtained from the study would give the management a better understanding of the numerous reward packages that would motivate and enhance the workers’ attitudes.

1.8 Scope of the Study

This study focuses on the reward systems and works attitude among employees of airline companies in Port Harcourt. The research would be limited to five (5) airline companies namely: Air Peace, Arik Air Nigeria Limited, Dana Airlines Ltd, Fly Aero Nigeria Limited, and Azman Air. These airline companies were selected because the reward system is very crucial to them and to also ensure an in-depth examination of the research focus in each organization such that the results will provide useful information. The research design that was adopted for this study is the research method. The target population of the study consisted of all employees of the five selected airline companies in July 2019.

1.9 Limitations of the Study

Nonetheless, these results must be interpreted with caution and a number of limitations should be borne in mind. There are two major limitations in this study that could be addressed in future research. The first is a methodological limitation which lies with the issues with sample and selection. This occurs when there is a limited ability to gain access to the appropriate type or geographical scope of participants. In this case, the people who respond to the survey may not truly be part of the random sample. The second limitation is theoretical. There may be a problem with limited access to respondents. Due to this, the research design may be restructured.

1.10 Operational definition of terms

Reward: Reward refers to what an employee receives from his employer as payment or compensation for performing a job.

Reward system: Reward system refers to the different types of rewards available and provided to employees by their organizations.

Intrinsic reward: Intrinsic reward refers to the reward one derives from the content of the work itself.

Extrinsic reward: Extrinsic reward refers to the reward attained that is external to the job itself.

Work attitude: Work attitude is a set of evaluations of one’s job that constitutes one’s feelings towards, beliefs about, and attachment to one’s job.

Salaries and wages: Salaries and wages are the remunerations paid to employees for work done.

Fringe benefits: Fringe benefits refer to the extra benefits supplementing employees’ wages and salaries.

Job security: Job security is the assurance that an employee has about the continuity of gainful employment.

Promotion: Promotion refers to the advancement of an employee’s rank or position in a hierarchical structure.

Sense of accomplishment: Sense of accomplishment refers to the feeling an employee has for achieving something great.

Motivation: Motivation is the reason for employees’ actions, willingness, and goals.

1.11 Organization of the Study

This research work shall be organized into five chapters.

Chapter one is the introductory chapter that includes the background of the study, statement of the problem, objectives of the study, significance of the study, research questions, hypothesis that would be tested, and scope of the research work as well as limitation and definition of terms.

Chapter two concerns the review of literature which focuses on different scholarly views and previous research findings of various scholars beginning with the theoretical framework.

Chapter three analyzes the research methodology. The method used in carrying out the research and the population size are also inclusive.

Chapter four consists of data analysis results and discussion of findings. It focuses on the presentation and analysis of data collected through the research instruments.

Chapter five comprises of summary, conclusions, and recommendations. This is the last chapter of the research work and it includes a discussion of result conclusions and recommendations for future purpose.

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