RELATIONSHIP BETWEEN REWARD SYSTEM AND CLERICAL EMPLOYEES’ PERFORMANCE: THE CASE OF DASHEN BANK S.C

Abstract

The idea of paying or rewarding an individual for his/her labor is not new. It is as old as with the development of modern human being. Any company, whether it is engaged in manufacturing or provision of service, needs human resource in order to achieve its objectives. Among other things, people usually consider attractiveness of the reward package that an organization offers at the time of employment. The objective of this study was to investigate relationship between reward system and clerical employee’s performance in Dashen bank S.C, A questionnaire survey was administered to randomly selected, samples of respondents who are working in Addis Ababa. The data were analyzed using descriptive statistics, and regression analysis. The findings of the study showed that the company has incorporated both financial and non-financial rewards in its system. However, majority of them agree that the financial reward type is greater than the non-financial reward types. Also respondents agree the company’s reward package system is not capable to retain best performers. On the other hand, the reward system differentiates between high performers and low performers. Contrary to this, majority of the respondents neither agree nor disagree on the existence of clear procedure how to implement the reward policy. Majority of the respondents have reported inequality and inconsistency in the application of the total reward system to all employees. The hypotheses which are used multiple linear regressions (beta coefficients) analysis revealed that, reward immediacy is the first most significant variable employee’s performance decision followed by proper recognition of high performers, provision of attractive housing and medical loan policy will help to retain high performers , bonus given to high performer will initiate for better performance, proper implementation of career development will increase employees performance so as to step up to the next position, salary increment made for high performers will motivate others to perform more, rewarding appropriate mix of both financial and non- financial when I perform better, fair and equitable reward system. On the other hand creation of conducive work environment will encourage high performers to increase their performance and supportive organizational culture has no significant effect on employees’ performance.