The aim of this study was to examine the effect of reward management system on employee performance in the case of IE Network Solution PLC. in Addis Ababa.
In a current highly competitive business environment, having well performing and inspired employees are the main success factor for any organization. In realizing that, in one hand researchers argue well-designed reward strategy plays the major role through enhancing the performance of employees. On the other hand, other scholars claim that rewards have nothing to do with employees’ performance. This study was conducted through a mixed research approach with in both a descriptive and explanatory research design. A total of 80 self-administered questionnaires were distributed to the all staff members of the company. 77 questionnaires were returned. It was valid to run the data analysis. Therefore, the descriptive, correlation and multiple regression analysis were computed through SPSS version 23.
The correlation analysis result shows that promotion and employee recognition positively and moderately associated with performance of employees. However, work condition salary have a positive but weak relation with employee performance. The multiple regression analysis revealed promotion (β=0.313), employee recognition (β=0.319), work condition (β=0.256), and salary (β=0.189) has a significant effect on employee performance. However, benefit packages have no significant effect on performance of employees. Additionally, the regression analysis shows, (R^2=0.579, p<0.05) which indicates 57.9% variations in employee performance is explained through a change in the reward system variables. Generally this study indicated that there is a positive and significant relationship between total reward management system and performance of employees in IE Network Solution PLC. The study recommended that the company should evaluate and redesign its reward system to be integrated with overall strategies of the company for enhanced performance of employees and productivity of the organization.
Table of Contents
1. Introduction
1.1. Background of the study
1.2. Statement of the problem
1.3. Research Questions
1.4. The Objective of the study
1.4.1. General Objective
1.4.2. Specific objectives
1.5. Significant of the Study
1.6. Scope of the Study
1.7. Limitation of the study
1.8. Definitions of Terms
1.9. Organization of the Study
2. Review of theoretical and empirical Literatures
2.1. Introduction
2.2. The Concept of Reward Management
2.2.1. Aim of Reward Management
2.2.2. Importance of reward management
2.2.3. Reward Philosophy
2.3. Theories of Work Motivation
2.3.1. Process theories of motivation
2.4. Reward and Employee performance
2.5. The effect of Reward on performance
2.6. Reward Management process
2.7. Types of Reward System
2.7.1. Financial reward Variables
2.7.2. Non-financial Reward Variables
2.8. Empirical Literature Review
2.9. Research hypothesis
2.10. Conceptual Framework
3. Research Methodology
3.1. Research Approach
3.2. Research Design
3.3. Research Strategy
3.4. Time Horizon
3.5. Population and data collecting Procedure
3.5.1. The Nature of target population
3.5.2. Data collecting Procedure
3.6. Methods of data collections
3.7. Validity and Reliability
3.7.1. Validity
3.7.2. Reliability of the measurement
3.8. Methods of Data Analysis
3.9. Research Model
4. Result of the study, Interpretation and Discussion
4.1. Introduction
4.3. Descriptive Analysis of Measurement items
4.3. Correlation Analysis of the data
4.4. Regression analysis
4.4.1. Assumptions underlying regression analysis
4.4.2. Multiple regression
4.4.3. Hypothesis Testing
4.5. Discussion of result of the study
5. Conclusion and Recommendation
5.1. Conclusion
5.2. Recommendations
5.3. Suggestion for Further Studies
Objectives and Research Themes
The primary objective of this study is to examine the effect of the reward management system on employee performance within IE Network Solutions PLC. By analyzing both financial and non-financial reward variables, the research seeks to determine how these systems influence workforce productivity, motivation, and organizational commitment.
- The impact of financial reward components (salary and benefit packages) on employee performance.
- The influence of non-financial reward elements (promotion, recognition, and work conditions) on employee performance.
- The establishment of a link between integrated reward strategies and organizational goals.
- An evaluation of current reward management practices within the Ethiopian IT sector.
Excerpt from the Book
1.1. Background of the study
In the current globalized World, Companies are operating in dynamic and challenging business environment. Resources are scares, competition is so strong and the customer preference is changing. That is why; firms are using the combination of different resources effectively in order to achieve their strategic organizational goals.
Human capital is the core element and the most responsible actor to achieve organization goals even under challenging conditions. It is not only the individuals in the company, it also what those employees bring and contribute to the institutional success. That is the reason Robert, Jackson and Mathis (2010) explained human resource as synergy of the most valuable capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce. Jackson et al. (2010) argued human capital as multi-dimensional unique institutional resource that include problem solving thinking, creative idea, knowledge and decision making ability that employees contribute to the company.
Whatever it is, employees should have to be motivated in order to exert all possible effort through combining their skills and experience to perform well. Managers use several mechanism to motivate employees and to increase their performance. But from all, reward is one of the fundamental method to motivate employees to perform well in their work activity in the company and enhancing their effort to be creative and productive that lead to better business functionality (Aktar, Ali, Serena and Sachu, 2012).
Reward management is a system that consists all financial and non-financial compensation packages of the organization. It is a way designed to retain employees, attract new talent and most importantly to increases employees’ performance.
Summary of Chapters
1. Introduction: This chapter introduces the study, its background, problem statement, research questions, and objectives regarding reward management at IE Network Solutions PLC.
2. Review of theoretical and empirical Literatures: This chapter covers relevant theoretical frameworks on motivation and reward management, along with empirical studies examining the link between rewards and performance.
3. Research Methodology: This chapter outlines the mixed research approach, design, strategy, and data collection procedures used to conduct the study.
4. Result of the study, Interpretation and Discussion: This chapter presents the quantitative and qualitative data analysis, findings from the regression model, and a discussion of the results.
5. Conclusion and Recommendation: This chapter summarizes the research findings, offers recommendations for the company to improve its reward system, and suggests areas for future research.
Keywords
Reward, Performance of employees, Financial reward, Non-financial reward, Human Resource Management, Employee motivation, Promotion, Recognition, Work condition, Salary, Benefit packages, Regression analysis, Organizational productivity, Retention, IE Network Solutions PLC.
Frequently Asked Questions
What is the primary focus of this research?
The research investigates the influence of various reward management systems (both financial and non-financial) on the performance of employees within the specific context of IE Network Solutions PLC.
What are the core research themes?
The study centers on how salary, benefit packages, work conditions, promotion, and recognition act as motivators for employees to enhance their work performance.
What is the main research question?
The research asks how these specific reward variables affect employee performance and whether there is a statistically significant relationship between them in the case of the mentioned company.
Which methodology was utilized?
The researcher employed a mixed research approach, combining a descriptive and explanatory research design using both quantitative survey data and qualitative interviews.
What does the main body of the work cover?
The main body examines theoretical literature on motivation, details the research methodology, performs descriptive and regression analyses on the collected survey data, and discusses the findings relative to existing literature.
Which keywords define this study?
Key terms include reward management, employee performance, financial vs. non-financial rewards, work motivation, and retention, among others.
How were the independent variables categorized?
The study categorizes rewards into financial variables (salary and benefit packages) and non-financial variables (work conditions, promotion, and recognition).
Was the hypothesis regarding benefit packages supported?
No, the study concluded that benefit packages did not show a statistically significant effect on employee performance at the studied company.
What was the key finding regarding non-financial rewards?
The study found that non-financial rewards, particularly recognition and promotion, have a significant positive impact on employee performance and are highly valued by the staff.
- Citation du texte
- Esubalew Ginbar (Auteur), 2020, The Effect of Reward Management System on Employee Performance. The Case of IE Network Solutions Plc, Munich, GRIN Verlag, https://www.grin.com/document/986244
