The Interaction between Reward and Commitment in the Case of Ethio-telecom
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Date
2015-06
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Addis Ababa University
Abstract
The main purpose of the research is to understand the interaction between different types of reward and commitment in Ethiotelecom context.Ther is few research conducted on the relationship between reward and three component of commitment in Ethiopia.The study tried to use Standardized and close ended questionnaire designed from previous literature which was distributed to 384 sample employees and then the collected data has been analyzed by using different statistics such as descriptive statistics, correlation, and MANOVA.Random stratified sampling was used to select the sampling unit from a toal population of eleven thousand employees. The major components of reward was financial rewards such as salary and benefit, and non-financial reward such as performance management, training, developmental opportunity ,Recognitions .With regards to commitment model , Allen & Meyer (1990) three component of commitment i.e. affective commitment, continuance commitment, and normative commitment was used. The result has showed that non financial reward has strong correlated with affective commitment and moderate correlation with normative commitment, both financial and non-financial rewards does not have correlation with continuance commitment. In addition, financial reward has strong impact on affective & normative commitment than financial reward does have. The results also give an insight to ethiotelecom should design appropriate non financial reward system to boost positive perception of nonfinancial reward
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Keywords
reward and commitment, financial rewards, salary