ASSESSMENT OF REWARD MANAGEMENT PRACTICES: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits (financial rewards). It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility. This study focused on assessment of reward management practices in Commercial Bank of Ethiopia and tried to assess the current reward management practices that the company is using to attract and retain employees focusing on employee’s perception. To this end, descriptive research method was used. Questionnaires, unstructured interview and review of documents were designed based on the objectives. Up on analysis the research was used cluster sampling to distribute 99 questionnaires to employees of CBE where all were filled and returned. This completed questionnaire were processed and analyzed by using table, graph, pie chart and textual write ups. The findings of the study illustrated the reward management system practice. Respondent’s response based on equity, transparency, consistency and alignments as well as overall rating of reward management practices of the bank was used. The data was analyzed using Statistical Package for Social Sciences (SPSS). The company’s reward system mainly consists of financial rewards. Besides results have shown that respondents have felt unfair and injustice in the company’s reward system. Employees like to be consulted what they need most when they perform better. The company’s organizational culture resembles restrictive organizational culture. Finally, lack of prior experience in conducting systematized research and also lack of awareness among our society to fill out questionnaires with due care and return on time and absence of prior works on the subject matter in Ethiopian context would have some impact on the results of the study that will call up for other researchers to prove the reliability of this study.