Assessment Of The Effect Of Reward On Employee Motivation A Study Of Two Higher Education Institutions In Addis Ababa
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Date
2017-06-21
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Addis Ababa University
Abstract
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
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Keywords
promotion, recognition, supervision