mekonen, Worku (PhD)Berhan, Ermias2018-07-232023-11-042018-07-232023-11-042017-07http://etd.aau.edu.et/handle/123456789/9687The research study achieved its aims of defining and assessing the effect of reward system on perceived employee performance in national bank of Ethiopia, Addis Ababa-Ethiopia. The purpose is to examine the effect of reward systems on the dimensions of employees’ perceived performance. This study also attempted to investigate what types of reward system financial or non-financial contribute to the employee better performance. Both qualitative and quantitative research methods were applied. In order to select the respondents from the total population of 950, stratified sampling method was applied. The sample size determination comes with 258 samples to be taken in to the study. . Survey data collected from respondents analyzed using descriptive, correlation and regression analysis. The findings of the study indicated that there was a significant relationship between reward system and employee performance in general and financial and non-financial rewards in particular. The financial reward component base pay positively and significantly influenced employees’ working performance (r=0.264, p<0.01) While from non-financial dimension, career development highly correlated (r=0.559, p< 0.01). In addition, the findings of the study revealed that financial rewards (r=0.333, p<0.01) strongly affect employees’ perceived performance than non-financial rewards (r=0.253, P<0.01).Finally, it is the recommendations of the research study that reward systems have an impact on employees’ performance (r=0.516, .p<0.01) and the researcher observed that there was a significant difference in its effect due to demographic factors. Key words: Financial rewards, Non-financial rewards, base pay, performance based bonus benefit, recognition, career development, working condition and employees’ perceived performanceenFinancial rewardsNon-financial rewardsbase payperformance based bonus benefitrecognitioncareer developmentworking conditionperceived performanceThesis