REWARD SYSTEMS AND EMPLOYEE PERFORMANCE OF SELECTED MANUFACTURING COMPANIES

This study examines the relationship between reward systems and employee performance in selected manufacturing companies. Reward systems—comprising financial incentives, bonuses, promotions, recognition, welfare packages, and non-monetary rewards—play a critical role in motivating employees and enhancing workplace productivity. The main objective of the study was to determine how different reward components influence employee performance indicators such as work efficiency, commitment, job satisfaction, and overall output. A descriptive research design was adopted, and data were collected through structured questionnaires administered to employees across selected manufacturing firms. The analysis revealed that well-structured reward systems have a significant positive effect on employee performance. Financial rewards were found to motivate employees to meet and exceed performance targets, while non-financial rewards such as recognition, career growth opportunities, and conducive work conditions contributed to employee morale and long-term commitment. The findings also highlighted challenges such as unequal reward distribution, lack of transparency, and inadequate communication, which may weaken the effectiveness of reward systems. The study concludes that effective reward systems are essential tools for improving employee performance in manufacturing companies. It recommends that organizations adopt fair, transparent, and comprehensive reward strategies that combine both monetary and non-monetary elements, ensure regular performance evaluation, and align rewards with employee needs to promote sustained productivity and organizational growth.