IMPACT OF REWARD SYSTEM ON EMPLOYEE JOB SATISFACTION THE CASE OF HIDASE TELECOM SHARE COMPANY ADDIS ABABA , ETHIOPIA

Abstract

The research study achieved its aims of defining and investigating the Impact of reward system on employee job satisfaction in Hidase Telecom Share Company Addis Ababa-Ethiopia. The purpose is to examine the Impact of reward systems on the dimensions of employees’ job satisfaction. This study also attempted to investigate what types of reward system financial or non-financial contribute to the employee job satisfaction. Both qualitative and quantitative research methods were applied. In order to select the respondents from the total population of 267 stratified sampling method were applied and the sample size determination come with 80. Sample to be taken in to the study. Spector (1997) Employee Job satisfaction survey(JSS) which measure employees’ job satisfaction dimensions and Cammann, Fichman, Jenkins Klesh (1979) and The Michigan Organizational Assessment Questionnaire were applied. Survey data collected from respondents analyzed using descriptive, correlation and regression analysis. The findings of the study indicated that there was a significant relationship between financial and non-financial rewards with employees’ job satisfaction. The financial reward component payment positively and significantly influenced job satisfaction of employees’ working in the case organization. The findings of the study revealed that nature of the job and working condition has strong effect on employees’ job satisfaction as a result. Finally, it is the recommendations of the research study that reward systems have an impact on employees’ job satisfaction and observed that there was a significant difference with payment and nature of the job. The overall result of reward systems shows financial rewards has a great impact on the job satisfaction of employees.