Effect of Reward Systems on Organizational Performance: The Case of Dashen Bank S.C.

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Date

2018-12

Journal Title

Journal ISSN

Volume Title

Publisher

Addis Ababa University

Abstract

This research considers the effect of reward system on organizational performance. Reward programs helps organizations to motivate its employees in order to attain the organization identified goals and objectives. Many organizations face the dilemma around what the ideal reward strategy should be in place in order to increase the motivation of employees and as well as the organizational performance. The purpose of this research was to investigate the effect of reward system on organizational performance. A questionnaire was developed us ing reward categories from the Worldat Work Total Reward Model. This was distributed to recruit professional to accountant level of employees found at Addis Ababa branch using simple random sampling of Carlvalho’s sample determination method. Data was gathered to comprehend the satisfaction level of employees on financial and non-financial reward provided by the bank and effect of reward system on organizational performance. A sample of 67 respondents participated in the survey and their opinion was analyzed using SPSS version23. The result of the survey indicated that the Majority of respondents were not satisfied with both the financial and non financial reward proved by the bank. However, the majority of the respondents agreed that financial and nonfinancial reward have a direct effect on employee motivation as well as organizational performance. Accordingly, the necessary conclusion was drawn and recommendation suggested for corrective action to be taken in the future by the Bank.

Description

A Research Proposal in Partial Fulfillment of the Requirements for the Degree of Executive Master of Business Administration

Keywords

Dashen Bank, Financial, Non-financial, Organizational Performance

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