EFFECT OF REWARD MANAGEMENT ON EMPLOYEE MOTIVATION IN COMMERCIAL BANK OF ETHIOPIA HEAD OFFICE

Abstract

Effect of Reward Management on Employee Motivation in Commercial Bank of Ethiopia Head office The purpose of this study is to examine the effect of reward on employee motivation in Commercial Bank of Ethiopia head office. There is a gap between what employees perceive as most significant rewards and the reward practices which managers consider to be the most motivating. The reward scheme is not tailored with employee need. The target population of this study includes commercial bank of Ethiopia head office employee in Addis Ababa. This office has 3240 employee and management staffs and from this office the population of clerical employee size is 2630. Total sample population taken was 340 from the population size of 2630. In this study simple random sampling was used to select respondents from commercial bank of Ethiopia head office. Simple random sampling method was used because employees are available and this sampling technique gives equal chance for all respondents to be included in the sample. To address research objectives and test the hypotheses the study adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The study finds that with the exception of job security and indirect benefit the other eight independent variables which are basic salary, bonus, retirement, interesting and challenging job, career advancement, job related training, recognition and feedback, participation in decision making are significantly affect the employee motivation in Commercial Bank of Ethiopia head office. They can design effective compensation package to motivate their competent employees. Based on the findings CBE is required to revise the current reward scheme and procedure of the bank in accordance with employees need and a number of recommendations and direction for future research are provided