THE EFFECT OF REWARD PRACTICES ON EMPLOYEES PERFORMANCE IN COMMERCIAL BANK OF ETHIOPIA

Abstract

This research work examined the effect of selected reward practices on Employees Performance in Commercial bank of Ethiopia in Addis Ababa city-branches. A questionnaire was used as an instrument to collect the primary data. A total of 366 copies of the questionnaire were distributed to the employees in Commercial Bank of Ethiopia and a total of 333 employees completed the questionnaires properly. Then the researcher performed the analysis process for the collected valid data using Statistical Package for Social Science (SPSS) version 20. Descriptive statistics based on a frequency tables were used to provide information on the variables. The results are investigated in terms of descriptive statistics followed by inferential statistics on the variables. Hypotheses were developed to see the effect of all the independent variables (pay/salary, benefit, promotion, recognition and working condition) on the dependent variable (Employee Performance). The findings obtained indicated that reward practices have a positive influence on employee performance. Furthermore, it provided suggestions to overcome the problems to improve employees’ performance. The management must clearly communicate its reward policy and procedure to its employees and the bank should include both financial and non-financial rewards with appropriate mix.