The Effect Of Intrinsic And Extrinsic Rewards Management On Employee Performance At Tsehay Insurance S.C.

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Date

2018-12-20

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Addis Ababa University

Abstract

This study was conducted to examine the effect of intrinsic and extrinsic rewards on employee performance at Tsehay Insurance Share Company (S.C). Data was gathered from Head Office and branches located in Addis Ababa. The survey research design method and, stratified sampling technique have been used. Primary data was collected through questionnaires. SPSS version 20 Statistical Software was used for data analysis. The independent variables were intrinsic rewards and extrinsic rewards whereas the dependent variable was employee performance. Mean, standard deviation, correlation and regression statistics were used to analyze the data. The correlation result indicated that there was a positive relationship between all of independent variables (intrinsic and extrinsic rewards) and dependent variable (employee performance). This implies that the data supports the argument, increase or decrease in both intrinsic and extrinsic rewards will bring corresponding change in employee performance. Moreover, extrinsic rewards have a positive relationship with employee performance. This is further supported by the regression analysis, which confirms that employee performance improves as extrinsic rewards increase. Whereas, intrinsic reward has a positive impact on employee performance with a modest impact compared with the extrinsic rewards. Hence, both should be used together to complement each other in enhancing long-term employee performance, strengthening appropriate reward system to have a holistic effect.

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Keywords

Intrinsic Rewards, Extrinsic Rewards, Employee Performance

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