Performance Management and Reward Systems as Strategic Tools for Driving Employees’ Commitment

Performance management and reward programmes are two human resource management activities that are crucial to an organisation’s performance. This study sought to determine how employee commitment in an organisation was affected by pay and performance management strategies. A structured questionnaire and a descriptive sample analysis approach were employed in the study to gather data from 371 production employees at the Dangote Cement Plant in Ibese, Ogun State Nigeria. Multiple regression analysis was utilised to test the hypotheses and descriptive statistics were used to analyse the data obtained through SPSS version 21. The study’s conclusions showed that employees’ continuance commitment is jointly influenced by performance reviews, training, monetary rewards, and non-monetary rewards (F= 382.451; p<0.05); the independent variables also significantly affect employees’ affective commitment (F=63.528; p<0.05) and have a joint significant effect on normative commitment (F= 60.228; p<0.05). Thus, the study concluded that rewards programmes and performance management significantly and favourably affect workers’ commitment. Based on the results, the study suggested that to foster employee commitment, organisations should have an effective system of performance management together with a fair compensation structure.