ASSESMENT ON REWARD SYSTEM PRACTICE IN THE CASE OF BANK OF ABYSSINIA- HEAD OFFICE AND DISTRICT LEVEL STUDY

Abstract

Employees today are more concerning on the rewarding approaches in which they seek for the ground elements that should be demonstrated in accordance to ensure that one’s organizational reward practice will be effective as possible. Reward system refers to all the financial, nonfinancial payments that an organization provides for its employees in exchange for the work they perform. This paper assesses the reward system practices in BOA using both qualitative and quantitative analysis methodologies. The descriptive analysis of the demographic characteristics shows that most of the employees are young, male, single, have a Bachelor’s degree, work in clerical positions, and have less than five years of experience. The situational analysis reveals that the reward system aligns rewards with performance, provides a variety of rewards, and sets clear and fair criteria for rewarding performance, but also has some drawbacks such as relying solely on performance appraisal results, excluding employees who score below expectation or unsatisfactory ratings, and not specifying how the rewards are determined or distributed. The mean agreement level analysis indicates that most of the employees agree on the payment reward system, are neutral on benefits and working conditions, and neutral on the work itself and management style. Finally, the researcher suggests that the Bank of Abyssinia human resource management body must revise the reward system properly to retain best performer.