Practices and Challenges of Reward Management at Etete Milk Processing Share Company
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Date
2018-04-13
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Addis Ababa University
Abstract
This study is about the practices and challenges of reward management in Etete Milk Processing Share Company. Reward and compensation is a crucial instrument in achieving organizational efficiency and effectiveness. It’s also an important tool in motivating employees to work towards the organizational goals and objectives. The purpose of this study is therefore to identify how this company practices reward management and asses the challenges confronted in practicing it.
Within the work realm of this company It was observed that there is a perception of lack of improvement in the reward management system parallel to the ever changing competition and economic environment, and other compensation and benefit issues that hinder the achievement of organizational objectives.
The student researcher has therefore aimed in identifying the practices and challenges of reward management that exist in Etete Milk Processing share company reward management system. In doing so the research has assessed the practices and challenges of reward management of the company, Analyzed the extent to which employees are satisfied by the existing reward management system in the company, determining the level of transparency the company has in equitability of reward schemes decision making process.
The researcher has also examined the mechanisms used to update the reward management system of the company and also the extent to which existing employees reward scheme is equitable or not.
To undertake this study the student researcher has applied a descriptive research method. Based on this a combination of data collection methods have been used to find answers for the research questions. The research questions have therefore been addressed through questionnaires, interview and other methods of data collection including observation and secondary sources of information. For the purpose of this study a census on all 147 employees of the company has been used to take part on the process.
Finally the researcher has found out that the company has a system of rewarding and motivating its employees towards achieving organizational objectives however the rewarding systems are not based mainly on performance and is not in line with the continuously changing competition and business environment. Besides the annual bonuses and salary increments are given to all employees once annually based on the salary scale, which is not advisable according to the theoretical frameworks the researcher used and in the meantime the performance of the employees are overlooked.
The conclusion is, therefore, the rewarding systems which Etete Milk Processing share company uses do not motivate its employees to be competitive and work to the best interest of the company given that the rewarding systems do not take competitiveness and performance into account
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Keywords
reward management, economic environment