Challenges of Reward Management : A Case of Upper Awash Agro Industry Enterprise/UAAIE/
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Date
2008-06
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A.A.U
Abstract
The main objective of this study was to find out what really matters when companies try to
reward employees for the contribution they made. To select the sample respondents, random
sampling method was used. This was done to give equal and non-zero chance for all and every
elements of the target population. Questionnaire and interview were used as a major data
collection tools. Fourteen employees, ten from each farm units were sampled. For interview
purpose, a couple of managers from the different levels of the enterprise were also considered.
Generally speaking, the finding shows that majority of employees are not happy with the reward
management practices and process of the enterprise. There is no written and formal reward
philosophy and strategy and most decisions are made without the involvement of employees.
The pay structure is not coherent and logical with the entire organizational structure. Majority of
employees are not happy with the amount of all types of rewards. Finally, the company is
exercising severe discriminations in distributing and deciding on the type and size of financial
rewards.
In deciding the variable payments, non-discriminatory system is used. The system gives credit for
the annual performance of the enterprise not individual employees. This method becomes a
reason for the conception of increasing number of free riders. However, the simple fact of the
matter is, most best performed employees are become dissatisfied and they are not ready to exert
their best.
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Keywords
Challenges, Reward Management