Role of employee perceptions of equity in reward distribution in moderating the influence of reward management systems on employee performance at the University of Abuja

Abstract

This study examined the influence of employee perceptions of equity in reward distribution on the relationship between reward management systems and employee performance at the University of Abuja. The study utilized a structured questionnaire to collect primary data. A total of three hundred questionnaires were returned from a sample of 337 respondents, selected through a stratified random sampling technique from a population of 2,145 academic and non-academic employees. For analysis, the researchers employed partial least squares structural equation modeling, along with exploratory and confirmatory factor analyses, as well as descriptive statistics. The results indicated that employee performance at the University of Abuja was positively and significantly affected by reward management systems. Additionally, the mediation analysis revealed that the relationship between employee performance and reward management systems is partially moderated by employees' perceptions of equity in reward distribution. These findings underscore the importance of implementing an effective compensation system at the University of Abuja to enhance staff capacity through equitable reward distribution.