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