The Effect Of Incentive Schemes On Employee Performance: The Case Of Nyala Motors S.C

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Date

2018-06-14

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Addis Ababa University

Abstract

In the current competitive business environment, automotive industry is facing a lot of challenges particularly getting the qualified employees and retaining them. This study provides an overview of evidence of the effect of incentive schemes on employee performance in Nyala Motors S.C, The objective of this research was to assess and examine the relationship between incentive schemes and employee performance. The theoretical part of the study introduces different theories of incentives, motivation and performance. The quantitative research approach used through primary data collected from 96 respondents.Probability sampling has been chosen because the respondents were selected using stratified sampling technique. A structure Likert Scale format questionnaire has been used for data collection. The questionnaire consist of two parts; the first part of questionnaire comprises demographic respondent data while second part comprises three variables questions. The data obtained were analyzed using Statistical Packages for Social Science (SPSS) program, descriptive analysis, normality test, reliability test, multicollinearity test, Person’s Correlation and Multiple Liner Regression were conducted in order to interpret the data. Statistical analysis were performed with the data in order to test the three main research hypotheses. The main findings indicate that there is high and moderate relationship between financial and non-financial incentives on employee performance and has a high positive significant effect incentive schemes on employee performance within the company. To improve employees work performance, the researcher recommended that adopting different kind of incentive schemes, seek and obtain feedback on how employees perceive incentives and develop a sound retention and attraction mechanisms. This study will help the company management to an implementation of incentive schemes system

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Keywords

Incentive Schemes, Financial Incentive, Non-Financial Incentive

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