Effects of Reward Practice on Employee Job Satisfaction At Abay Bank S .Co

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Addis Ababa University


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.



Job satisfaction, Reward, Pay