Assessment of Reward Management Practice: The case of Lion International Bank

Abstract

The key objective of this research paper was to assess the reward management practice in the case of Lion International Bank at head office. The best reward management practice is the one that helps an organization to be competent in the industry by reducing employees’ turn over and increase employees motivation to perform their tasks effectively and efficiently. Reward management practice in this study is assessed by considering intrinsic and extrinsic reward practice, internal and external equity, transparency and consistency among staffs. This study was done using descriptive research design and a primary data collected from 173 professional employees of with more than one year experience at Lion International Bank which have 96.5% response rate. The five likert questionnaire had a Cronbach alpha coefficient of greater than 0.7 for all indicators of reward management practice suggesting that the instrument was reliable. The descriptive analysis was done by using SPSS version 20. The finding of this paper shows that the evaluation of performance appraisal is done half yearly and it is based on basically individual performance, seniority and supervisors recommendation. The empirical finding also shows that employees of Lion International Bank (LIB) agree there are good intrinsic reward, internal equity, consistency and transparency in reward management practice. When compared to the banking industry respondents disagree about external equity. When we see in terms of extrinsic reward practice that most of respondents are neutral to say there exist good extrinsic reward practice in LIB. Since LIB reward management practice compared to the industry is low employees attracted by the benefit packages of other banks. Currently the bank benefit packages are the same for same grades and it doesn’t vary with individual performance except the promotion package. Most of the employees in the bank believe there is proper composition of benefit packages. Since the employees of LIB feels the existing extrinsic reward and external equity is not good top management of the bank should reconsider those issues to increase its performance and holding competent employees. The study also recommends that the management should regularly provide incentives and bonuses to employees to improve their morale as it is not competitive and attractive in the industry these times by this dimension. Moreover, the bank should undertake market intelligence to discover the other banks’ practice and review its reward management system in a better way to sustain experienced and highly motivated employees with it.