Assessment of Impact of Reward Systems on Employee Motivation: The Case of Ethio Telecom, Addis Ababa, Ethiopia
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Date
2022-10
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Addis Ababa University
Abstract
The study aimed to assess the impact of reward systems on employee motivation in Ethio Telecom. The specific objectives were to: determine which types of rewarding methods employees perceive as the most motivating; determine if there is a relationship between reward and employee motivation; examine the perceptions of employees towards rewarding systems; and determine the impact of rewards on employee motivation. The researcher used primary and secondary sources of data. The study used a quantitative research approach and a descriptive and explanatory research design. The study was conducted on the non-managerial employees of the company working in Addis Ababa at the head office and six zonal offices. The study samples were selected from a target population of 8617 using a stratified simple random sampling method. Survey questionnaires were distributed to 383 respondents, and 327 questionnaires were completed and collected. Data analysis was done with descriptive statistics and inferential statistics. Based on the result of Pearson Correlation Coefficient, there exists positive significant at moderate and Small but definite strength of association between reward system (benefits, promotion, recognition, training and development, and working environment) and employee motivation. According to the results of the regression analysis, the working environment, training and development, promotion, recognition, and benefits all have a positive effect on employee motivation, whereas payment has a negative effect. The result of the study also shows that employees were more motivated by working environment, and training and development. The researcher based on the results of the study recommends the company to review currently practiced reward systems, and develop effective rewarding strategy to motivate its employees better.
Key words: Reward Systems, employee motivation, intrinsic reward and extrinsic reward.