The Effect of Rewards on Job Satisfaction:The Case of Lion International Bank S .Co(LIB)
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Date
2015-07
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Addis Ababa University
Abstract
In the current competitive business environment, banking industry is facing a lot of challenges
particularly getting the right employees and retaining them. Rewards always play an important role
in organization’s growth and performance. This study examines the effects of Intrinsic and
Extrinsic Rewards towards job satisfaction at Lion International Bank employees. This is because
reward and job satisfaction is core factor in which managers should be keen in order to meet the
targets of the organization
A Descriptive research design with survey method is applied in this study. Using stratified random
sampling technique 148 participants (employees) of the target institution-LIB were selected from
the total population of 937. The primary data was collected using standard questionnaires were
subject to subsequent statistical analysis using SPSS-16 version software. Accordingly, Pay and
Benefits (r=.548**, p<0.01), Recognition (r=.510**, p<0.01), Promotion and Career Advancement
(r=.507**, p<0.01) and Working Conditions (r=.500**, p<0.01) have high degree of positive
relationship with job satisfaction of employees. Whereas, Working relation (r=.407**, p<0.01),
Accomplishment (r=.392**, p<0.01), and Task Autonomy (.374) have moderate Correlation with
Job Satisfaction.
The expected outcome is aimed at unearthing the need to motivate employees in the Banking
Industry so as to improve their job satisfaction. The findings of the research generally reveal that
reward has a great deal of impact on job satisfaction of employees and the current trend of reward
management is not that of satisfying the expectations of employees. These results imply that the
employees in LIB generally did not perceive the reward practices in the institution as fair.
Similarly, their overall satisfaction on the reward practices of the bank is moderate. Therefore, in
order to be effective in achieving its targeted goals and objectives, LIB is required to reevaluate its
reward practices
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Keywords
Job satisfaction, Rewards, Pay