ASSESSMENT ON THE REWARD PRACTICES IN THE CASE COMMERCIAL BANK OF ETHIOPIA

Abstract

Employees today are more concerning on the rewarding approaches in which they seek for the ground elements that should be demonstrated in accordance to ensure that one’s organizational reward practice will be effective as possible. Reward system refers to all the financial, non-financial payments that an organization provides for its employees in exchange for the work they perform. This study was designed to assess the reward practice of Commercial Bank of Ethiopia with the objective to give a relevant recommendation and applicable solution to the problem. The study used descriptive research design. In order to get relevant data from the target population questionnaire and interviews were used. Data collected through questionnaire were prepared based on various scholars work and interview is undertaken with the HR personnel’s. The reliability of the instrument was measured using Cronbach Alpha and the result was 83.9%, the result refers there is high consistency on the measuring instruments. The target population of the study was the employees of Commercial Bank of Ethiopia (CBE). A purposive sampling method was used, and 232 questionnaires were distributed to the employees of the bank and out of these questionnaires, 198 were filled properly. As a result, the overall response rate was 85 percent. Descriptive statistics and frequencies were utilized to analyze the data. Interpretation is made on the frequency and percentage of the data and qualitative data were analyzed using textual explanations. Furthermore, the qualitative data (data from interview) were analyzed together with the quantitative one to triangulate the results found from the questionnaire. The findings generally indicate that employees of the bank are not motivated by the bank’s current reward system. The bank’s reward system mainly consists of financial rewards. Besides, results have shown that respondents have felt unfair and injustice the bank’s reward system. Employees like to be consulted what they need most when they perform better. Finally, the researcher suggests that the commercial bank of Ethiopia human resource management body must revise the reward system properly to retain best performer.