Effects of Reward Practice on Employee Job Satisfaction At Abay Bank S .Co
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Date
2017-06-06
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Addis Ababa University
Abstract
In the current competitive business environment, banking industry is facing a lot of challenges
particularly getting the right employees and retaining them. Rewards always play an important
role in organization’s growth and performance. This study examines the effects of Intrinsic and
Extrinsic Rewards towards job satisfaction at Abay Bank S.C. Employees. This is because
reward and job satisfaction is core factor in which managers should be keen in order to meet the
targets of the organization A Descriptive research design with inferential method is applied in
this study. Using stratified random sampling technique 150 participants (employees) of the
target institution Abay Bank S.C were selected from the total population of 600. The primary
data was collected using standard questionnaires were subject to subsequent statistical analysis
using SPSS-20 version software. Accordingly, Recognition(r=.685**, p<0.01),), Pay system
(r=.591**, p<0.01), Benefit (r=.566**, p<0.01), and Working Conditions (r=.519**, p<0.01)
have high degree of positive relationship with job satisfaction of employees. Whereas, Working
relation (r=.475**, p<0.01), have moderate Correlation with Job Satisfaction and also
Promotion (r=-.530**, p<0.01) and Task Autonomy (r=-.648**, p<0.01) have a negative
correlation with job satisfaction. The expected outcome is aimed at unearthing the need to
motivate employees in the Banking Industry so as to improve their job satisfaction. The findings
of the research generally reveal that reward has a great deal of impact on job satisfaction of
employees and the current trend of reward management is not that of satisfying the expectations
of employees. These results imply that the employees in Abay Bank S.C generally did not
perceive the reward practices in the institution as fair. Similarly, their overall satisfaction on the
reward practices of the bank is moderate. Therefore, in order to be effective in achieving its
targeted goals and objectives, Abay Bank S.C is required to reevaluate its reward practices.
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Keywords
Job satisfaction, Reward, Pay