AN EVALUATION OF THE IMPACT OF MONETARY AND NON - MONETARY REWARDS ON EMPLOYEES’ MOTIVATION: RESPONSES OF THE MANAGEMENT AND EMPLOYEES AT HORIZON ADDIS TYRE SHARE COMPANY

Abstract

The study investigated an Evaluation of the impact of Monetary and Non –Monetary rewards on employees’ the motivation response of the management and employees at Horizon Addis tyre Share Company. The theoretical underpinnings of this study were premised on Herzberg’s two-factor theory of motivation which states that management must not only provide hygiene factors to avoid dissatisfaction but also must provide motivators for the job itself and Victor Vroom’s theory which states that individuals make choices based on their perceived expectancy that certain rewards will follow. The study was conducted using descriptive design. A sample of 258 respondents was drawn from the population through proportionate stratified sampling technique to ensure fair representation. The study was based mainly on primary data in form of questionnaires and interview. The study employed both qualitative and quantitative techniques of the data collection and data was analyzed using descriptive and relational statistics with Pearson product correlation, regression analysis and Chi-square. The findings revealed that, monetary and non-monetary rewards should be provided in Horizon Addis tyre Share Company to motivate an employee. In addition compensation, promotional opportunities, work itself, operating procedures, achievement, recognition and satisfaction with supervision positively related to employee motivation in HATSC. This study recommends that the company will establish the new reward system based on performance result. The researcher recommended for another researcher will investigates the main cause of stresses and job challenges in HATSC.