The Role of Compensation Systems on Employees Job Satisfaction in East Africa Bottling Share Company

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Addis Ababa University


This project was designed to study the role of compensation system on employees’ job satisfaction on critical employees of East Africa Bottling Share Company.Data were collected through questionnaire prepared based on various scholars work. Thevalidity of the instrument was checked using Cronbach Alpha and the result was 85.8%. 191 questionnaires were distributed to the sample respondents who are located in AddisAbaba in sixcompetencies (departments). Of the total distributedquestionnaires all were usable questionnaires at100% response rate.Descriptive statistics and frequencies were utilized to analyze the data. Interpretation is madeon frequency and percentage of the data. The relationship between demographic factors and job satisfaction was tested using Mann-Whitney test and Kruskal Wallis test. Hypothesis was testedusing Logistic Regression.The study’s result has implied that compensation system has a positive role on employees’ job satisfaction in East Africa Bottling S.C. The company’s compensation system consists of financial and non-financial rewards. Three hypotheses were supported and only one of them was rejected. To boost the job satisfaction of its employees, the company can work on its overall compensation system specifically on financial rewards with intensive work on procedural and distributive justices.



Human Resource