THE EFFECT OF REWARD MANAGEMENT PRACTICE ON EMPLOYEE MOTIVATION: THE CASE OF GIZ OFFICE ETHIOPIA

Abstract

Organizations are seeking to develop, motivate and increase the performance of their employees in a variety of human resources applications. Therefore, the reward management system has been considered to be the most considerable practices of the human resource management system. Hence, the main objective of conducting this research study is to determine the relationship between reward and employee motivation. The result of the study may significantly contribute to the knowledge with regard to reward and employee motivation since it is a contemporary issue of the organization. Census research is implemented for the study. Mixed research method and Explanatory research design is used. Qualitative data collected through interviewing 6 staff. Quantitative data analyzed through descriptive statistics, correlation and regression analysis. 59 data collected out of the whole 71 employees of GIZ found at head office using questionnaires. The data collected was analyzed using SPSS version 20 software. As a result, the result of this study support that reward management practices have significant positive relationship with employee motivation. The findings of this study also propose that integrated reward management approach (total reward) has more positive significant approach on motivation. The study also investigate which components of reward management has largest contribution on employee motivation and as the result shows non-financial reward has largest contribution on employee motivation relative to financial one. Therefore, its sound to recommend that the organization should implement a total reward approach instead of standalone one.