Assessment Of The Effect Of Reward On Employee Motivation A Study Of Two Higher Education Institutions In Addis Ababa

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Addis Ababa University


The study aims at assessment of the effect of reward on employee motivation in selected higher education institutions. Descriptive research design and survey data collection were used to describe the effect of intrinsic and extrinsic rewards on employee motivation. Besides explanatory research design was used to test the relationship among reward and motivation related variables. Out of a total target population of 869 administrative employees,274 samples were taken in probability sampling more specifically, stratified sampling ,technique from the two higher education institutions/ECSU & TVETI/. Questionnaire was developed and distributed to the administrative employees. The finding of the study indicated that administrative employees of the institutions have moderate satisfaction with the total reward practices. However; employees are motivated better by intrinsic rewards than extrinsic rewards. When each extrinsic reward items were computed, employees showed dissatisfaction from benefits, specifically medical allowances. Similarly, when variables of each intrinsic reward were examined employees have moderate satisfaction in involvement in decision making process .Moreover findings showed that, work motivation had a statically significant and positive correlation with other reward variables (benefit, supervision, recognition, promotion, work content & work condition). There was also a statistically significant and positive correlation between reward practice and the total work motivation=0.77, p≤0.001.This implies that total reward practice and work motivation are highly correlated. Therefore, it is recommended that the management of higher education institutions, should review different reward mechanisms/both intrinsic & extrinsic/to administrative employees so as to retain and attract talent employees in the organization



promotion, recognition, supervision