The Effect of Reward Management Practices on Organizational Performance the case of Tnela Construction PLC
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Date
2022-06
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Addis Ababa University
Abstract
This study was conducted to examine the effect of reward management practice on Organizational performance the case of Tnela Construction PLC. Explanatory research design was used to gather data from 9 project sites namely weyra, Megenagna, Lancha head office, Betel, Cherqos, Torhayloch, Kera, Tero new site, Alem Bank and Lebu Muaz located in Addis Ababa. Census data was used and Primary data was collected through interview and questionnaires. SPSS version 20 Statistical Software was then used for data analysis. The independent variables were intrinsic rewards and extrinsic rewards whereas the dependent variable was organizational performance. Mean, standard deviation and correlation analysis were used to analyze the data. The correlation result indicated that there was a positive and statically significant relationship between all of independent variables (intrinsic and extrinsic rewards) and dependent variable (organizational performance). The regression analysis results shows that 75.1% of the variation in organizational performance is explained by intrinsic and extrinsic rewards factors considered for the present study. This implies that, an increase or decrease in both intrinsic and extrinsic rewards will bring corresponding change in organizational performance. Hence, both should be used together to complement each other in enhancing long-term organizational performance, building and strengthening appropriate reward system to have a holistic effect.
Keywords: Intrinsic Rewards, Extrinsic Rewards, organizational Performance