The Effect of Reward Management Practice on Employees’ Motivation in: The Case of Ethiopian Commodity Exchange
No Thumbnail Available
Date
2024-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Motivation is one of the most critical elements in the area of Human Resources Management. Companies design motivation systems not only to encourage employees to perform their best most efficiently but also to attract future candidates to apply for specific posts. To this end, the main objective of this study is to examine the effect of reward management practice on employees’ motivation in Ethiopian commodity exchange. Data was gathered from both primary and secondary sources. The primary data for the study was collected from 261 permanent employees of Ethiopian Commodity Exchange by using a questionnaire with both open-ended and close-ended questionnaires. Secondary data collection tools included assessing the institution’s annual report, and articles. In the study, the descriptive and explanatory research designs, and qualitative and quantitative research approaches were used to fulfill the objectives of the research. The data obtained was analyzed using the Statistical Packages for Social Science (SPSS) program, descriptive analysis, normality test, reliability test; multicollinearity test Person’s Correlation, and multiple-liner regression was employed to analyze the data. The finding of the study revealed that both extrinsic and intrinsic reward variables have effect on the employee motivation, and it has shown significantly positive relationship between all dimensions of reward variables and employee motivation and it is also supported by the results of regression analysis. The study concludes that the relationship between reward management practices and employee motivation was statistically significant. Based on the findings; the researcher recommended that monetary compensation alone is insufficient to motivate employees. Other factors such as giving greater recognition, promotion, performance appraisal, benefit, payment, promotion, and creating conducive work environment have the greatest impact on employee motivation. In addition to that, the reward should be given to employees when they meet large goals as well as smaller.
Keywords: Reward Management practices, Employee motivation, Intrinsic Rewards, Extrinsic Rewards