Assessment of Reward and Compensation Management Practices at Ethiopian Electric Power Corporation Training Institution and Head Quarter
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Date
2014-06
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Addis Ababa University
Abstract
In the general terms, this study was about reward and compensation systems within the EEPCO
Headquarter and its training institution located in Kotebe Yeka district. As reward and
compensation is a steering instrument in maintaining the organizational efficiency and
productivity as well as takes the lion’s share in motivating the employees to act in the best
interest of the organization, the purpose of this study was to identify how the selected company
(EEPCO) works on the issue. It is also aimed at finding out the extent to which the institution
gives focus on rewarding and compensating its employees in order to encourage them and thus
assist it to reach its goals and visions as one national organization working on huge and giant
projects. An attempt of identifying the procedures and basis of bonuses and related benefits
within the selected institution is also made by this researcher. This attempt includes pointing out
whether the rewarding systems available in the institution- bonuses and salary increments-
offered to the employees are based on performances or just in a collective basis regardless of
performances. As a result, the research question, which is based on the purpose of the study, is
‘What kind of ways and systems does EEPCO use to reward its employees so as to motivate them
to work in its best interest?’
To address the research question, the researcher has conducted interviews with the employees of
the institution both at the head quarter and the training institution. In addition, the researcher
has distributed 50 questionnaires to the employees in both offices. Not only that but also, the
researcher has tried his level best to analyze documents that are related to reward and
compensation. All in all, the researcher has found out that though the selected company
(EEPCO) has a habit of rewarding and motivating its employees to let them work to its best
interest, the rewarding systems are not based on performance. They are instead bonuses and
salary increments which are given to all employees once annually. The performances of the
employees are not considered in these processes. It is just based on the salary scale, which is not
advisable according to the theoretical frameworks this researcher used. This is also something
that the respondents witnessed. The conclusion is, therefore, the rewarding systems which
EEPCO uses do not motivate its employees to be competitive and work to the best interest of the
company given that the rewarding systems do not take competitiveness and performance into
account
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Keywords
Ethiopian Electric Power Corporation Training