The Effect of Reward Practices on Employee Motivation: a case of Heineken Brewery Company
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Date
2019-06
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Addis Ababa University
Abstract
The purpose of this research was to investigate; the effect of reward practices on employee
motivation in Heineken Brewery S.C. Heineken has financial and nonfinancial reward system in
place as a means of motivating and retaining employee. But the problem is the company has not
conducted a study to measure which type of reward scheme is appropriate and which is not. In
time, these might highly impact organizational effectiveness and excellence. In addition, the
staffs have a number of problems associated with financial and non-financial rewards provided
by the company. Meanwhile, subsequent problems have been observed in the company,
according to human resource annual report issue related with reward practices de-motivated
employee turnover have been recorded. The study used both primary and secondary sources of
data. A quantitative research approach of data collection was used and 183 questionnaires were
distributed out of which 153 of them were returned. Probability sampling (stratified) method was
used and employees were selected from each stratum with a random sampling technique. Among
the major findings, the overall perception of respondents over current reward practices were not
happy, not enough, not competitive and not attractive. on other side the ranking orders as
respondents choice of the most motivator factors from the list, payment is the highest influential
factor for employee motivation followed by promotion, benefits, recognition working condition
and job security respectively, The result of correlation shows that; there exist positive and
significant relation between payment, promotion, benefit, recognition, job security & working
condition and employee motivation. On other side, the result of regression analysis shows that;
payment and promotion have high explanatory of employee motivation. On top of that, a
significant portion of employees considered the reward practices in Heineken Brewery S.C. as
less motivating, unfair, not competitive and attractive and hence employees seemed to be less
responsibility, less loyalty and belongingness and less committed to the organization. It is
recommended to review the company current reward practice that are factor that affect
employees motivation
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Keywords
Employee Motivation, Reward Practices