The Relationship Between Rewards In Practice And Motivation Of Employees In The Moderating Effect Of Reward Management In Ethiopian Airlines

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


Nowadays, organizations are striving to establish an equitable balance between the employee’s contribution to the organization and the organization’s contribution to the employee. Among other things, establishing balanced provision of rewards and reward management systems in an organization is one of the basic factors that optimizes employees’ motivation. Research has proven that employees who achieve balanced rewarding categories, that is, extrinsic versus intrinsic rewards, individual versus group rewarding…etc. with fair procedures of reward distribution tend to be more motivated and perform optimally. The purpose of the current study is to assess the relationship among rewards in practice, reward management systems and motivation in Ethiopian Airlines and investigate the effect of rewards in practice and motivation of employees in the presence of reward management system as a moderating factor. A two-stage mixed data collection method paired with convenience technique of sampling using Semi-Standardized Interview and Self-Administered Questionnaires produced data of 152 respondents. Results of the qualitative analysis showed that extrinsic, intrinsic, and individual based rewarding systems are available in the organization. The quantitative data outcomes on the relationships between rewards in practice and motivation of employees in the existence of reward management systems as moderating factor indicated that rewards in practice and reward management systems have strong relationship with motivation contributing around 50% of employees’ motivation. In addition, the hierarchical regression analysis indicated that reward management has an enhancing power on rewards in practice and motivation of employees with R2-change rate of 1.9% with statistical significance of F (1, 148) = 4.8127 of p= 0.03.Nonetheless, the insights derived from the current research, results need to be interpreted with caution since a convenience sample was used and insufficient sample size acquired the generalizability is only restricted to the current population.



reward management