Effect of Reward Systems on Organizational Performance: The Case of Dashen Bank S.C.
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Date
2018-12
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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