| Abstract: | The purpose of this paper is to examine the effect of reward practices on employee performance
in the case of Dashen Bank SC. The study considered six construct variables of reward practices
such as, Payment, Benefit, Promotion, Recognition, Working condition and Supervision, to
measure the employee performance of Dashen Bank SC. The researcher used quantitative
research design. Among the various quantitative methods, the researcher used explanatory
study, where emphasis is given on studying a situation or a problem in order to explain the
relationship between variables. In this research 250 employees were selected based on statistical
formula developed by Daniel (1999). The data collection instruments were adopted from
Roberts, R.L. (2005) and Muchiri H. (2016), which consists of 32 (Thirty Two) items. Validity
and Reliability test was conducted to check the consistency and dependability of the instruments
and accordingly, all the components of reward practices considered under the present study
were proven to be reliable, scoring an Alpha value greater than 0.70. The Pearson correlation
analysis was conducted to determine the relationship between employee performance and
Reward practice components. The finding shows that there is a significant positive association
between reward practice and employee performance. The regressions result confirmed that, the
linear combination of all the components of reward practices considered under the present study
significantly contribute to the variance in employee performance. The ANOVA test result also
confirmed that, the prediction powers of the reward practice components are found to be
statistically significant. From the Beta coefficient result, the researcher obtained that, working
condition is found to be the most important variable in predicting the dependent variable
employee performance, followed by promotion, recognition, payment, benefit and supervision.
Finally, the researcher concluded that in the case of Dashen Bank SC, components of reward
practices, financial and non – financial rewards have a significant positive effect on employee
performance. On top of that, a significant portion of employees considered the reward practices
in Dashen Bank S.C. as less motivating, unfair, not competitive and attractive and hence
employees seemed to be less responsibility, les loyalty and belongingness and less committed to
the organization. It is recommended to review the banks current reward practice that are factor
that affect employee performance. |
