THE EFFECT OF COMPENSATION AND REWARD ON EMPLOYEE PERFORMANCE: THE CASE OF MANAGEMENT SCIENCES FOR HEALTH - ETHIOPIA

Abstract

Objective: The main objective of the study is to examine the effect of compensation/reward system on the performance of employees in MSH Ethiopia. Methods: Facility based cross-sectional study was conducted among 100 randomly selected workers from different projects of MSH-Ethiopia and the major approach in the design of the questioner was the use of likert scale -tested for reliability at Cronbach's alpha of ≥0.7. Data were collected by self-administered structured questionnaires for the employees and interviewer administered questionnaires for the senior management staffs; and was analyzed with SPSS software. Several statistical techniques like samples, correlation, regression, mean, and percentages analysis were used for this research study at 95% CI at P ≤ 0.05 was used to assess associated factors to job satisfaction. Result: This study shows that the overall compensation system/package in MSH-Ethiopia is satisfactory and beyond. 95% of employees at MSH-Ethiopia are generally satisfied and have average satisfaction with the current compensation/reward system of the organization. By saying so we are not meant to say all the staff has equal satisfaction in the system. Some staff has low level of satisfaction with the current compensation system in the organization. Some of the major factors that led to such low level of satisfaction, though not limited to this, are related with lack of transparency from the supervisors in rationally evaluating the subordinates, employee’s salary history, supervisor’s powerlessness regarding negotiation of salary for their staff, and reduced attention from the HR in implementing MSH's HR policies are frequently mentioned by the respondents.