EFFECT OF REWARD PRACTICES ON EMPLOYEES’ PERFORMANCE: A CASE STUDY ON ZEMEN BANK S.C

Abstract

Rewarding employees is critical in organizations in this era of competition to ensure, growth, survival and development. Consequentially, reward has become an issue of strategic importance. The purpose of this research was to examine the effect of reward practices on employees’ job performance in the case of Zemen Bank S.C. Data was gathered from Head Office and selected Addis Ababa city branches. The research is quantitative research approach using Cross sectional survey method and the researcher have used sample size determination table and random sampling method was employed to make the sample more representative of the population. Descriptive and inferential statistics of correlation and regression analysis were used to analyze the empirical data. Questionnaire were used for the primary data collection and document evaluation as of secondary data. Primary data were collected using five Point LikertScale questionnaires 161 responses were properly filled and returned. SPSS was used to analyze empirical data collected through the close ended questionnaire. Hypotheses were developed to see the effect of the independent variables (salary, bonus, training, Promotion, working environment, responsibility and recognition) on the dependent variable employees’ job performance. Descriptive statistics was used to summarize the data. 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.