The Effect of Reward Management System on Employee Performance: The Case of IE Network Solutions Plc.
No Thumbnail Available
Date
2020-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
In current highly competitive business environment, having well performing and inspired employees are the main success factor for any organization. In realizing that, in one hand researchers argue well-designed reward strategy plays the major role through enhancing the performance of employees. In the other hand, other scholars claim that rewards have nothing to do with employees’ performance. The aim of this study was to examine the effect of reward management system on employee performance in the case of IE Network Solution PLC. in Addis Ababa. This study was conducted through a mixed research approach with in both a descriptive and explanatory research design. A total of 80 self-administered questionnaires were distributed to the all staff members of the company. 77 questionnaires were returned which gave response rate 96.25%. It was valid to run the data analysis. Therefore the descriptive, correlation and multiple regression analysis were computed through SPSS version 23. The correlation analysis result shows that promotion and employee recognition positively and moderately associated with performance of employees. However work condition salary have a positive but weak relation with employee performance. The multiple regression analysis revealed promotion (β=0.313), employee recognition (β=0.319), work condition (β=0.256), and salary (β=0.189) has a significant effect on employee performance. However benefit packages have no significant effect on performance of employees. Additionally the regression analysis shows,(𝑅2=0.579, p<0.05) which indicates 57.9% variations in employee performance is explained through a change in the reward system variables. Generally this study indicated that there is a positive and significant relationship between total reward management system and performance of employees in IE Network Solution PLC. The study recommended that company should evaluate and redesign its reward system to be integrated with overall strategies of the company for enhanced performance of employees and productivity of the organization.
Description
A Thesis Submitted To Addis Ababa University College of Business and Economics Department of Management in Partial Fulfillment of the Requirements for
Master of Business Administration
Keywords
financial reward and non- financial reward, Performance of employees