THE EFFECT OF REWARD AND INCENTIVE SYSTEM ON EMPLOYEE’S JOB PERFORMANCE: THE CASE OF WEGAGEN BANK S.C. WESTERN ADDIS ABABA DISTRICT.

Abstract

The study is conducted on The effect of Reward and Incentive System on Employees Job Performance The Case of Wegagen Bank S.C. the main objective to examine the relationship between reward, incentive and employees performance and satisfaction with the aim of increasing the productivity of employees to increase the profitability of the bank to gain its old place and name In order to achieve the desired outcome descriptive as well as explanatory research designs have been applied and mixed research approach was adopted . The populations for the study were employees of and the study sample comprised of a total of 224 employees which was selected by random sampling and 195 responses were collected. Descriptive and inferential statics were used. The positive direction indicating that, when the independent variables increase dependent variable also increases and vice versa. The relationships have also statistically significant since the p value Pearson Correlation Coefficient was used to assess the relationship between Distribution of reward and employee Performance The relative importance independent variable contributing to the variance of the employees’ job performance (dependent variable) was explained by the standardized Beta coefficient. The beta values of the independent variables are .336 for reward and .653 for incentive. The results obtained based on the finding from the regression analysis showed that incentive organization is more significant and statistically meaningful. The study was able to find out that reward and incentives have direct relationship with employees job performance and satisfaction. The study discovered that employees of the company’s are not pleased with current reward and incentives systems and it is not appropriately structured well selected, implemented and checked reward to meet up its goal. Recommendations for improvement at the coming up with attractive, well-structured and monitored reward and incentive system .The bank should narrow the pay scale gap between those on the top of management and on the low hierarchy of the job.