ASSESSMENT OF REWARD MANAGEMENT PRACTICE IN ETHIO TELECOM

Abstract

Various organizations in this competitive business period are struggling to create an equitable balance between the employee’s contribution to the organization and the organization’s contribution to their employees. In order to establish this balance between their needs and retain their competent employees, organizations are supposed to design a reward system which is competent and favored by employees. The major aim of this study is to assess the reward management practices of Ethio Telecom. In this regard, the pay, promotion, and benefit practices of the company are assessed from varied reward management dimensions. In doing this, transparency, equity, fairness, compliance, contextual fitness and some other aspects of the existing reward practices are valued based on employees’ opinion. . In this study, descriptive research design was employed as it focused on identifying present conditions and finding facts. For this purpose, from the total 1325 population a sample of 265 employees were selected through 10 departments by using stratified quota sampling techniques. Self-administrative questionnaires, interview and document analysis were used to gather data. Data obtained through questionnaire were analyzed with descriptive statics (mean, percentage and frequency). The result of the research work revealed that many aspects of the reward management practices of Ethio Telecom are exercised poorly except some aspects in relation to benefit administration and promotion. Due to this, so many of the respondents testify that, the existing practices of Ethio Telecom fail to satisfy the needs of the employees. This makes them less motivated and a cause of employee turnover in the Ethio Telecom