This research assessed the effect of reward management system on employee productivity in the public sector with special reference to a state-owned tertiary institution - Lagos State University. The research examined the role of reward management in enhancing the productivity of employees in the University. This is not to unconnected with the general belief that a just and efficient reward management system enhances workers’ morale and improves their effectiveness and performance at the workplace. To achieve the above research objective, three research hypotheses were put forward. The first hypothesis determined the relationship between reward management system and employees’ morale. The second hypothesis determined if there was any significant difference between financial and non-financial reward management and workers’ effectiveness. And the third hypothesis determined if reward incentive positively affected employee performance. The study used the descriptive survey research method. And the population of the study constituted the academic, non-academic and senior academic staff of the school. The findings of the study include that; there is a significant relationship between monetary rewards and employees’ performance among it’s Staff. Also, the findings of the research showed that there was a significant difference between financial and non-financial reward management and workers’ effectiveness, and that reward incentive positively affected employee performance. Based on these findings, it’s concluded that both monetary and non-monetary rewards have significant effects to the staff performance in this public institution. Furthermore, that there is a significant relationship between reward system and employee effectiveness. It was recommended that a well-articulated blue-print on employees reward and motivation be designed whereby the management would identify the types of incentive scheme, provision of basic infrastructure and improve funding of the institution.