Assessing the Role of Reward and Incentive in Enhancing Employee’s Performance in the case of Bunna International Bank S.c

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Addis Ababa University


The aim of this study was to examine the Role of incentive and reward system with respect to overall levels of employee’s performance in Bunna International Bank. The research was descriptive in nature. Qualitative as well as quantitative research design has been adopted in this paper to achieve the objectives of this in which study. Role of incentive and reward system were taken as independent variables and performance as dependent variable for this study. Structured questionnaire was used to gauge the responses on a five level scale. Questionnaire was distributed to 219 sample respondents who work at different branch of Bunna International Bank in Addis Ababa. Non-probability sampling was employed to select area banks and in order to select sample respondents, simple random sampling was used. Data were analyzed by using different statistical techniques like descriptive statistics techniques, and regression analysis by using SPSS. The study confirmed that the role of incentive & reward system was important for employee performance in the case company but the importance of mixed reward system cannot be discriminated. It is also found out that basic salary was the most motivating factor in enhancing employees performance, Job security and career advancement were also found to be highly motivating factor in enhancing employees performance. This research can be helpful for the banking sector specifically to Bunna International Bank. They can design effective compensation package to motivate employees to perform better to make the bank highly competitive in banking industry



Incentive, Reward and performance