THE EFFECTS OF REWRAD ON EMPLOYEE PERFORMNACE THE CASE OF LION INTERNATIONAL BANK

Abstract

In the current business environment, banking industry is facing a lot of challenges particularly getting the right employees and retaining them. This is because reward and employee performance is core factor in which mangers should keen in order to meet the targets of the organization. Reward exists in order to motivate employees to work towards achieving employee performance. This study examines the effects reward towards employee performance.223 questionnaires were distributed to the sample respondents who are located in Addis Ababa. Of the total distributed questionnaires 210 usable questionnaires were returned. Hypotheses were developed to see the effect of all the independent variables (pay/salary, benefit, promotion, training, recognition, and working condition) on the dependent variable (Employee Performance).It is a quantitative study. Descriptive statistics and frequencies were utilized to analyze the data. Interpretation is made on mean, frequency, and percentage. The result are investigated in terms descriptive followed by, inter correlation using Pearson’s product correlation to test the interdependency and also multiple regression analysis were used to show the magnitude and direction each independent variables influence the dependent variables with the aid of statistical package(SPSS)version 20. The finding obtained indicated that rewards dimensions have positive influence in employee performance. Furthermore, it provided suggestions to overcome the problems to improve employee performance.LIB must clearly communicate its rewards policy and procedure to its employee. Even though the company rewards system mainly consist of financial reward, adjustment must be done on the rewards system since the majority of the respondents were not satisfied. Finally LIB should include both financial and non-financial reward with appropriate mix.