THE EFFECT OF REWARD ON EMPLOYEES’ MOTIVATION: THE CASE OF META ABO BREWERY S.C (DIAGEO)

Abstract

This research is aimed at analyzing the effect of reward on employees’ motivation in Meta Abo Brewery S.C. The study adopts quantitative research approach using survey research method by applying work satisfaction and motivation questionnaires developed by Debeer1987. The study was done based on primary and secondary data sources. A self-administered questionnaire was designed to collect relevant information from the selected 186 respondents. Among this, 144 questionnaires papers were returned and analyzed. The collected data were analyzed by SPSS version 20 using descriptive statics and multiple regressions. Similarly, correlation analysis was also used in this study to show the relation between dependent and independent variables. The result shows that there is a positive relationship between rewards and work motivation. All variables chosen (payment, benefits, promotion, recognition, working condition, empowerment, challenging and work content) have positive and significant effects on the motivation of the employees working in the Company. The findings show that motivation is related to all intrinsic and extrinsic rewards which imply change in reward offered brings about a change in the level of motivation of the employees. The overall implication of the study result is that, the employees of Meta Abo Brewery were motivated moderately by both rewards (financial and non-financial) beside the result of correlation between employee’s motivation and reward is strong and significant correlation with employee motivation. To keep this employee motivation the company management should give attention for all total reward in order to meet the overall goals of the company.