* *

School of Postgraduate Studies

Department of Business Administration

The Effect of Reward Management Practices on Employees’ Performance

in the case of ENAT Bank at Addis Ababa
A Thesis Submitted to the School of Graduate Studies of CPU
College in Partial Fulfillment of the Requirements for the Award of the
Degree of Masters of Business Administration (MBA)

By: Mekbeb Gebretsadik

Advisor: Bahran Asrat (PhD)

May, 2023
ADDIS ABABA, ETHIOPIA
 Table of Contents
CHAPTER ONE ............................................................................................................................. 5
INTRODUCTION ...........................................................................................................................5
1.1 Background of the Study ...........................................................................................................5
1.2. Statement of the problem ......................................................................................................... 7
1.3. Research questions ................................................................................................................... 9
1.4. Objectives of the study .............................................................................................................9
1.4.1 General objective ....................................................................................................................9
1.4.2.Specific Objective .................................................................................................................. 9
1.5 Research Hypothesis ................................................................................................................. 9
1.6 Significance of the Study .......................................................................................................... 9
1.7. Scope of the study .................................................................................................................. 10
1.8. Limitation of the Study .......................................................................................................... 10
1.9. Definition of Terms ................................................................................................................11
1.10. Organization of the Study .................................................................................................... 12
CHAPTER TWO ...........................................................................................................................13
REVIEW OF RELATED LITERATURE .................................................................................... 13
2.1. Introduction ............................................................................................................................ 13
2.2 Related Theories ......................................................................................................................13
2.2.1. Maslow’s Hierarchy of Needs .............................................................................................13
2.2. 2. Herzberg Two-Factor Theory .............................................................................................14
2.2.3. Goal-Setting Theory ............................................................................................................15
2.2.4. Equity Theory ......................................................................................................................15
2.3. Theoretical Literature Review ................................................................................................16
2.3.1 Concepts of Reward ............................................................................................................. 16
2.4. The Effects of Reward Management Practices ...................................................................... 19
2.4. 1. Recognition ........................................................................................................................ 19
2.4.2. Benefits ................................................................................................................................19
2.4.3 Promotion ............................................................................................................................. 20

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2.4.4. Working conditions ............................................................................................................. 20
2.4.5 Payment ................................................................................................................................21
2.4.6. Career Development ............................................................................................................21
2.5. Performance ........................................................................................................................... 22
2.6. Reward and Employee Performance ...................................................................................... 24
2.7. Empirical studies .................................................................................................................... 25
2.8. Conceptual Framework .......................................................................................................... 26
CHAPTER THREE .......................................................................................................................28
RESEARCH DESING AND METHODS .................................................................................... 28
3.1 Introduction ............................................................................................................................. 28
3.3. Research Design .....................................................................................................................29
3.4. Research Approach ................................................................................................................ 30
3.5. Data Type and Sources ...........................................................................................................30
3.6. Target Population and Sampling Design Techniques ............................................................ 31
3.7. Data Collection Instruments ...................................................................................................31
3.8. Validity and Reliability of Research Instruments .................................................................. 32
3.9. Data processing and analysis techniques ............................................................................... 33
3.11. Ethical Consideration of the Research ................................................................................. 36
CHAPTER FOUR ......................................................................................................................... 37
DATA PRESENTATION, ANALYSIS AND INTERPRITATION ............................................37
4.1. Introduction ............................................................................................................................ 37
4.2. Reliability and Validity of Instruments ..................................................................................37
4.3. The Percentage and Frequency Distribution of Personal Profile of the Respondents ........... 39
4.4. Descriptive Statistics of Scaled Type Questionnaires ............................................................40
4.5. Employees Perception about reward and Performance ..........................................................41
4.6. Perception of respondents towards Recognition .................................................................... 42
4.7. Perception of respondents towards Recognition .................................................................... 43
4.8. Perception of respondents towards Benefits .......................................................................... 44
4.9. Perception of respondents towards Promotion .......................................................................45
4.10. Perception of respondents towards Working Condition ...................................................... 46
4.11. Perception of respondents towards Career Development .................................................... 47

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4.12. Perception of respondents towards Employees performance ...............................................48
4.13. Correlation Analysis .............................................................................................................49
4.14 Linearity test ..........................................................................................................................52
4.15. Homoscedasticity ................................................................................................................. 53
4.16. Heteroskedasticity Test ........................................................................................................ 53
4.17 Test of Linearity .................................................................................................................... 54
4.18: Linear Regression Analysis ..................................................................................................55
REFERENCES ..............................................................................................................................59

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 CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Human resource provides basis for an organization to achieve sustainable competitive advantage.
Since organizations are operating in a dynamic and competitive business environment, they need
to develop strategies to acquire and retain the competent workforce. Ibrar (2015), state that
Performance is an important for the organization succession and achieving the goals. Rewards
are considered an important tool to check the employees’ performance in every organization.
Management use rewards for employees motivations. Effective reward systems attract new
employees for organization and motivate existing employees to perform high levels. Employees’
good work is necessary to achieve the specific goals. Employees give their good efforts for
achieving goals and good effort depends on rewards. In other words we can say that good
rewards are most important way to engage the employees with their work and with their
organization Danish (2010).
Armstrong (2010), point out that, People can be motivated to achieve certain goals and will be
satisfied if they achieve these goals through improved performance. They may be even more
satisfied if they are then rewarded by extrinsic recognition or an intrinsic sense of achievement.
This suggests that performance improvements can be achieved by giving people the opportunity
to perform through job and work-system design and leadership, ensuring that they have the
knowledge and skill required to perform, and rewarding them by financial or non-financial
means when they do perform. This is means that organization use reward management system in
order to fulfils and satisfy the needs of their employees as well as to ensure that they work for
the change of the organization and the achievement of good performances in the organization.
According to Ibrar (2015), the lack of rewards in an organization that will create an unpleasant
environment, thus diminishing employees‟ work efforts and may cause them to with draw from
their jobs. For these reasons, rewards are increasingly important. The main objectives of
rewards are to attract and retain employees, to motivate employees to achieve high levels of
performance, and to elicit and reinforce desired behavior of the employees.
Alshammari (2016), rewards are crucial components of any effective performance management
system. They are for attracting and retaining suitable employees as well as making them to
improve on their performance through motivation. People are usually motivated when they know

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their hard work will be rewarded adequately. It is therefore, necessary that when employees meet
or surpass their targets, managers should reward them immediately as a show of appreciation.
Reward programs should be properly designed in the organization so as to reinforce positive
behavior which leads to performance. Armstrong (2010), define that a reward system consists of
the interrelated processes and practices that combine to ensure that reward management is
carried out effectively to the benefit of the organization and the people who work there. Ibrar
(2015), reward Systems is a vital aspect of any organization. They can actively engage and
renew the overall sense of community and mission of an organization. A properly administered
system of rewards can provide incentive for quality workmanship and staff performance.
Likewise; a poorly administered reward system can lead to low morale, unproductive
performance, and even lead to a high percentage of staff turnover. A reward system is successful
when the staff interprets its policies as even handed, consistent, and relevant. Rewarding and
recognizing employees is a ticklish activity in an organization. It can motivate people to explore
more effective ways to do their jobs or it can utterly discourage such efforts.
Reward management is one of the strategies used by Human Resource Managers for attracting
and retaining suitable employees as well as facilitating them to improve their performance
through motivation and to comply with employment legislation and regulation. In the real world,
it is very important to reward high performance levels because this motivates and controls the
performance. When employees are rewarded, they get work done. Employers get more of the
behavior they reward, not what they assume they will automatically get from employees. Thus
when employees surpass their target or exceed their standard they should be rewarded
immediately as a way of motivating them. By doing this, employees directly connect the reward
with behavior and higher performance they have attained. (Njanja, Maina, Kibet, & Njagi, 2013)
Employees should be aware of the relationship between how they perform and the rewards they
get. Organizations should apply performance management programs which assist in planning
employee performance, monitor performance by effecting proper measuring tools Rewards
should be used as a way of strengthening good behavior among employees as well as
productivity (David & Stephen, 2005).
A good reward system that focuses on rewarding employees and their teams will serve as a
driving force for employees to have higher performance hence end up accomplishing the
organizational goals and objectives. (Njanja, Maina, Kibet, & Njagi, 2013) The major purpose of

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the study is to look at the domain of reward management practices in the banking industry and
see its effect on the performance of employees by considering the privet bank in Enat Bank of
Ethiopia, and to see whether the reward programs are properly designed to influence the
performance of employees in the banking industry, specifically the commercial Bank of Ethiopia.
1.2. Statement of the problem
Many organizations are experiencing increasing poor performance from their employees thereby
leading to low productivity and output (Habtamu N; 2021). The situation has been blamed on
low motivational factors by some while others feel that management of some organizations have
not paid adequate attention to the needs of the employees (labor).While some researchers see the
poor employee motivation as a deliberate act, some came out with the finding that many
organizations do not know how to motivate their employees to arouse their inner abilities for
effective performance (Casey.R.J.Hilton and Robbinson, 2012)There have also been arguments
as to which of the rewards, extrinsic or intrinsic is more effective in driving employees to
optimal performance in the organization (Munir,Lodhi,Sabir and Khan, 2016). There is therefore
the need to explore how both extrinsic and intrinsic rewards can be utilized to raise the
motivational level of employees in the organization to achieve enhanced performance from them.
Studies Ayesha, Aslam, Amna Ghaffar, Tahleel Talha and Hina Mushtaq (2015), have shown
that the reward process is a major control or influence mechanism available to organizations.
Reward is one of the most important elements which motivate employees to contribute their best
effort, to generate innovative ideas that lead to better business functionality and further improve
company performance both financially and non-financially. Phillip’s (2014) fining concludes
that reward systems in any organization are a vital tool and play an important role as far as
employee performance was concerned.
(Derara, 2014), Shown that when employees receive rewards and recognition from their
organization, they will feel obliged to respond with higher levels of engagement. And also the
study discovered that when employees believe that their organization is concerned about them
and cares about their well-being, they are likely to respond by attempting to full fill their
obligations to the organization by becoming more engaged. ((Maslach, C, Schaufeli, and Leiter,
M P., 2001) have also suggested that while a lack of rewards and recognition can lead to burnout,
appropriate recognition and reward is important for engagement.

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A research by Begashaw Tsegaye more focuses on payment/compensation (financial reward)
rather than the total reward (Begashaw, 2017). There are problems in reward management like
Attention not given for nonfinancial rewards, Inconsistency in implementing financial Rewards
and the performance measurement tools are subject to baseness and subjectivity.
Few researches were conducted on the impact of Reward management practice on employee
performance (Scott, 2006); (Aktar, 2012); (Adeyemi, 2013). Most findings show that, the design
and implementation of reward management practice influences employee performance
significantly. Thus, in order to achieve high level of employee performance, organizations
should participate individual employees on designing reward management practice and the
system should be transparent, clear, and easy to understand. From researcher’s preliminary study,
even though there are different financial and non-financial rewards including fuel allowance,
medical coverage, representation allowance, hardship allowance, annual bonus, insurance benefit,
emergency loan, subsidized cafeteria) in Enat bank, there is no any empirical evidence how this
reward practices affect employee performance in particular and bank performance in general.
All reward practice is said to be not enough with the increase in cost of living. In addition, they
reveal that design of different financial and nonfinancial reward systems are not fitting with their
personal goal or interest. This may affect their performance adversely. Because Philip (2014)
found out that employees performance is dependent on the way they are treated in the
organization and the extent to which organizational strategy fits with employers’ interest. In
explaining the situation, at an informal interview, some employees of the bank, who are HR
officers of the bank and planning officers, said that “From the exit interview, majority of
employees leave in search of better pay and they join other banks in similar position”. Contrary
to this, the inflow of employees from other banks is very rare, except for managerial levels, the
institution because of its rewards from other banks. Existing employees also complain that the
current reward system is not comparable with other similar banks and is not enough to resist the
current inflationary situation.
Even if it is difficult for the management to motivate and satisfy all employees and enhance their
performance, it is important to look towards implementing effective reward practices that could
encourage the ones that could be rewarded. Because in today’s competitive and challenging
business environment the management must try to acquire or retain a well educated, motivated
and experienced workers so as to be competitive in that market and to make the organization

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profitable. Therefore, in this study the researcher tired to identify the effect reward could have on
the performance of employees in Enat Bank by quantitatively testing the effect of variables such
as pay/salary, benefit, promotion, recognition, and working condition.
1.3. Research questions
1. What is the current provision of reward practices for employee in Enat Bank?
2. What is the effect of the reward practices on the employee’s performance?
3. How do employees perceive the existing reward practices of the Enat Bank?
4. What is the level of employee’s performance in Enat Bank?
1.4. Objectives of the study
1.4.1 General objective
The general objective of the study is to investigate the effect of reward management practices on
employees’ performance in the case of Enat bank t Addis Ababa.
1.4.2. Specific Objective
1. To explain the current provision of reward practices for employee in Enat Bank.
2. To investigate whether there is relationship between reward management practices and
employee Performance.
3. To assess employees perception on the existing reward practice.
4. To examine the level of employee’s performance in Enat Bank.
1.5 Research Hypothesis
H12: There is positive significant relationship between Pay/Payment employees’ performance.
H12: There is positive significant relationship between Benefits and employees’ performance
H13: There is positive significant relationship between Recognitions and employees’
performance.
H14: There is positive significant relationship between Working condition and employees’
performance.
H15: There is positive significant relationship between Promotion and employees’ performance.
1.6 Significance of the Study
The study will examined the various aspects of rewards given to employees both financial and
non financial. The subsets in each of the rewards management practices has a particular effect of
employee performance in the organization at both individual and organizational level. Brings
awareness to other financial institutions in the banking sector how the performance of employees

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will be affected by the level of rewards provided to their employees. Give a way or serve as a
source for other researchers who want to make further investigations in the area and to conduct
detailed research on the issues. The study intends to contribute or serve as an additional source
of reference that will add to some existing literature. It suggests solutions to problems that will
be helpful to both the employees as well as the management and Helps the management of the
organizations to understand the importance of reward and how it could be effectively delivered
to the employees to improve their performance.
1.7. Scope of the study
The scope of this study is the effect of Reward Management Practices on Employees’
Performance in the case of Enat bank Addis Ababa. This study was considers all clerical
employees and management bodies in Head office and Grade A branches (Abebech Gobena,
Catrin Hamlin, Derartu tulu, Etege Taitu, Muluembet Emiru and Nigeste Saba Branches) of
Enat Bank in Addis Ababa to selected for samples because. It was difficult and unmanageable
because of time constraints to distributed questionnaires to samples that are outside Addis Ababa.
Furthermore, in terms of respondents all employees those who have serving more than one year
considered this study. But, others like, employees who are serving for less than one year and
customers of the bank not included in this study. Because, it is perceived that they might not
have sufficient banking experiences to interpret and respond to all the questions in the survey
questionnaire, in particular, market performance of bank.
In terms of the constructs showing in the research framework (figure 2.1), only five ways of
Reward Management Practices (pay/salary, benefit, promotion, recognition, and working
condition) and their influence on employees’ performance examined. Other elements or
underpinnings measurements of Reward Management Practices excluded, from this study; such
as, motivation, trust, commitment, and etc. Methodologically of This study focused on,
descriptive and explanatory research designs with mixed approaches (quantitative and
qualitative), and as the sampling technique, the scope of study was proportionate stratified and
random sampling techniques to conduct primary data. In order to collect the data, self-
administrated questionnaire employed. At the end, both descriptive and inferential statistics were
used for the data analysis purpose.
1.8. Limitation of the Study

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Certain restrictions such as the availability of time to conduct research for obtaining the required
data, were there regarding to the duration of the research. With this regard time was one of the
limitations it have faced which hampered me to add more information about the importance of
this topic. The other challenge the main obstacle for this research work to gather information
from the interviewee including different management bodies. Another limitation was the access
to data that was to be collected from various branches.
1.9. Definition of Terms
Reward; deal with the strategy, policies and process required to ensure that the contribution of
people to the organization is recognized by both financial and non-financial means Armstrong,
(2007).
Intrinsic Rewards; Intrinsic rewards are the non-physical rewards. They cannot be seen or
touched but are emotionally connected with the employees. In other words, intrinsic rewards can
be defined as the feeling of contentment one finds in the completion of any task.
Extrinsic Rewards; An extrinsic reward is a tangible and visible reward given to an individual
or an employee for achieving something. They usually have monetary value such as a salary hike,
bonus, award, or public recognition.
Salary; salary is the regular payment by an employer to an employee for employment that is
expressed either monthly or annually, but is paid most commonly on a monthly basis
Bonus; A bonus is a financial compensation that is above and beyond the normal payment
expectations of its recipient.
Training; Training refers to the teaching and learning activities carried on for the primary
purpose of helping members of an organization acquire and apply the knowledge, skills, abilities,
and attitudes needed by a particular job and organization.
Promotion; promotion refers to the advancement of an employee's rank or position in a
hierarchical structure.
Working Environment; surrounding conditions in which an employee operates
Recognition; is the acknowledgment of a company's staff for exemplary performance.
Responsibility; Responsibility is the state or fact of being accountable or to blame for something;
a duty or task that you are required or expected to perform; something you should do because it
is morally right, legally required, etc; reliability, dependability.

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Employees’ performance; means employee productivity and output as a result of employee
development (Oroh, Lapian, &Pandowo, 2014).
1.10. Organization of the Study
This paper consists five chapters.
Chapter one consist introduction/background of the study, background of the Organization,
statement of the problem, research question, objective of the study, significance of the study and
scope of the study included in a separate section. Chapter two present the related literature to the
subject under study. The research methodology and design were discussed in the third chapter.
Chapter four is dealt with data analysis, results and discussion and finally summaries of major
findings, conclusions, and recommendation discussed under chapter five. Survey questionnaire
that used for data collection is attached to this document as an appendix.

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Introduction
This section reviews the literature written by different authors and researches conducted by
different scholars in relation to the study and present a summary of motivation practices and
employees’ performance literature such as definitions, assumptions, major concepts regarding
motivation practices and employees’ performance and review of empirical works. Finally,
conceptual framework of the study is included by summarizing literature results.
2.2 Related Theories
2.2.1. Maslow’s Hierarchy of Needs
One of the earliest works in employee motivation and job satisfaction was presented by Maslow
(1954). This work is considered pioneer in motivation theories and has served as a basis for
many other theories. Maslow’s work provided valuable notions, concepts, and ideas related to
behavior and job satisfaction. According to the theory of Maslow's there some most basic level
of needs of a human that must be met before a person develops a strong desire or get motivated
for higher level needs. He presented the five tier hierarchy of needs in 1942 to a psychoanalytic
society and identified that the most basic need emerges first and the most sophisticated need last.
The most powerful employee motivator is the need which has not been satisfied.
According to Maslow, physiological needs are the things we require for survival, like food,
clothing, shelter, and sleep. In corporate world, adequate wages represent such type of needs.
Next level is of safety needs, which are necessary for physical and emotional security. Through
job security, health insurance, retirement benefits, and safe working environments, these needs
are satisfied. Moving up to the third level is the social need, where people seek for love, affection
and belonging. Relationships in the work environment and in the informal organization, as well
as in social networks with family and friends outside the organization are good examples of
social needs. Next level is the esteem need, where we urge for respect, recognition,
accomplishment and worth. The management can fulfill such needs by matching the skill and
ability of the employee to the job, by showing workers that their work is appreciated. Finally, the
self -actualization needs which are the desires to grow and develop up to ones fullest, He
suggested that people start on the bottom and put efforts to go up to needs hierarchy. When one

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need is fulfilled, it loses its strength and the next level of needs is activated. A satisfied need is
longer a motivator.
Figure 1.1: Maslow’s hierarchy of needs, Figure 1

Source: Maslow, (1946)

2.2. 2. Herzberg Two-Factor Theory
Fredrick Herzberg based his theory on the works of Maslow and Porter and concluded that it is
not possible to keep employee satisfied by meeting their low level needs. In fact, the basic
benefits such as salaries and other facilities for example an adequate working space, do not
necessarily ensure that employees are happy and motivated. Thus based on Herzberg’s theory,
managers should seek to meet the higher needs of the employees, particularly psychological
needs such as appreciation and recognition. (Herzberg, 1966). Herzberg in his two-factor theory
identified motivation and hygiene factors that tend to maximize the performance of employees.
Motivation factors motivate employees to excel at their jobs and tasks and hygiene factors
typically ensure that the staff remains happy and satisfied. Thus the author developed the
motivation-hygiene theory explain the effect of these factors.
The factors that increase satisfaction are called the satisfier factors or the motivators, and the
factors that lead to dissatisfaction, are called the dissatisfied or the hygiene factors (Herzberg,
Mausner, and Snyderman, 2011). Herzberg also theorized that people have different
requirements that must be fulfilled to keep them satisfied. People firstly have physiological
requirements that are typically met by financial gains out of the job such as the salary. Secondly,
there are also some psychological requirements that must be met so that they feel driven to
improve and grow.

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2.2.3. Goal-Setting Theory
Latham and Locke (1979) argue that setting goals are a fundamental aspect in achieving
motivational effectiveness. In addition, the authors emphasize that those goals, which are
unrealistic and arbitrary, could become a de-motivating aspect for the Organization’s employees.
According to their analysis, goals that are designed to a slightly difficult approach are the ones
that to a greater extent are motivating the employees to greater productivity. On the other hand,
goals that are too hard to achieve or too easy to reach is resulting in a less productive action by
the employees.
According to Locke and Latham (2002) goals are mainly serving four different mechanisms.
Firstly, the goals serves as a distinct directive function, which allows the employee to, at a
greater extent, focus on goal - oriented activities, instead of focusing on activities that is beyond
the goals. The second aspect that Locke and Latham points out is that goals allow employees to
take on greater effort and is functioned as a stimulating function. Thirdly, goals are providing
persistence affection to the employees, which imply that employees that control their own time
to reach the goal increase their effort in the task. Finally, the authors describe that goals are
encouraging employees to use their overall knowledge and expertise to solve the task.
To reach goals, commitment is essential in the sense that the employees are dedicated to reach
the goals. The motivational effect is underpinning that the goals need to be achieved, and a
potential threat can occur when employees is taking shortcuts to achieve the goals, which results
in performance that is less qualitative (Hein, 2012).
2.2.4. Equity Theory
Equity theory (Adams, 1965) is concerned with the perceptions people have about how they are
being treated as compared with others. To be dealt with equitably is to be treated fairly in
comparison with another group of people (a reference group) or a relevant other person. Equity
involves feelings and perceptions and it is always a comparative process. It is not synonymous
with equality, which means treating everyone the same, since this would be inequitable if they
deserve to be treated differently. Equity theory states, in effect, that people will be better
motivated if they are treated equitably and de-motivated if they are treated inequitably. It
explains only one aspect of the processes of motivation and job satisfaction, although it may be
significant in terms of morale.

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There are two forms of equity: distributive equity, which is concerned with the fairness with
which people feel they are rewarded in accordance with their contribution and in comparison
with others; and procedural equity, which is concerned with the perceptions employees have
about the fairness with which company procedures in such areas as performance appraisal.
2.3. Theoretical Literature Review
2.3.1 Concepts of Reward
The idea of managing reward in organizations is crucial to all employers, and consequently,
many definitions have been proposed, which are now introduced. Armstrong and Helen (2005)
Stated that reward management is concerned with the formulation and implementation of
Strategies and policies that aim to reward people fairly, equitably and consistently in Accordance
with their value to the organization. Reward is the compensation which an employee receives
from an organization for his or her Service. It is not simply contains direct currencies and other
forms which can convert to Currencies, but also a comfortable office, favorable interpersonal
relationship inside the Organization, having access to decision-making involvement, the
challenge and sense of Achievement, preferable growth opportunities and so forth these kinds of
forms which is difficult To measure in various currencies but they are also rewards. Reward is
the compensation which an employee receives from an organization (mainly refer to Enterprises)
for his or her service. It not simply contains direct currencies and other forms which can convert
to currencies, but also a comfortable office, favorable interpersonal relationship Inside the
organization, having access to decision-making involvement, the challenge and sense of
achievement, preferable growth opportunities and so forth these kinds of forms which is Difficult
to measure in various currencies Zhou Jiang, (2009).
A reward can be anything that attracts an employee‘s attention and stimulates him to work. It is
the benefit that workers receive by performing a task and discharging a responsibility. Rewards
is also defined as one of the important elements to motivate employees for contributing their best
Effort to generate innovation ideas that lead to better business functionality and further
improvise company performance both financial and non-financially Aktar, et.al (2012). Reward
system is an important tool that management can use to channel employee motivation in desired
ways. In other words, reward systems seek to attract people to join the organization to keep them
coming to work, and motivate them to perform to high levels. The reward system consists of all
organization components – including people processes rules and decision making activities

16
involved in the allocation of compensation and benefits to employees in exchange for their
contribution to the organization. Reward may be broke up in to two categories; intrinsic and
extrinsic Mottaz et.al (2012). Intrinsic rewards are derived from ‗‘the content of the task itself
and include such factors as interesting and challenging work, self-direction and responsibility,
variety, creativity, opportunities to use one‘s skills and abilities and sufficient feedback regarding
the effectiveness of one‘s efforts. Extrinsic rewards on the other hand comprise promotions,
Private office space and the social climate. Other examples include competitive salaries, pay
raises, merit bonuses and time-off‘‘Hatice, (2012).
2.3.2 Reward Management
Reward Management is the development, implementation, maintenances, communication and
evaluation of reward process. These process deals with the assessment of relative job values, he
design, and management of pay structures, performance management, paying for performance,
competency or skill (contingent pay), the provision of employee benefits and pension, and the
management of reward procedure Armstrong and Helen( 2005).Reward management Armstrong,
(2010), Reward management is concerned with the strategies, Policies and processes required to
ensure that the value of people and the contribution they make to achieving organizational,
departmental and team goals is recognized and rewarded. It is about the design, Implementation
and maintenance of reward systems (interrelated reward processes, practices and procedures) that
aim to satisfy the needs of both the organization and its stakeholders and to operate fairly,
equitably and consistently. These systems will include arrangements for assessing the value of
jobs through job evaluation and market pricing, the design and management of grade and pay
structures, performance management processes, schemes for rewarding and recognizing people
according to their individual performance or contribution and/or team or organizational
performance, and the provision of employee benefits.
Armstrong, (2010), Reward management is fundamentally about people. It is stakeholder
orientated, integrated, Strategic and evidence based. Reward management is concerned with
people – especially the employees who are rewarded for their efforts, skills and contribution but
also the directors, managers and reward specialists who plan, manage and administrate rewards.
People are assessed according to the contribution they make to achieving organizational goals
and rewarded accordingly. Having defined expectations, reward management can provide for
people to be rewarded in line with the degree to which people meet them. Managers should be

17
aware of the results expected from people and the behavior needed to achieve these results and to
support the organization‘s values. The reward system should ensure that the results and behavior
are valued and recognized.
Aims of Reward Management; the aims of reward management according to (Armstrong, 2010)
are to:
A). Reward people according to the value they create;
B). align reward practices with business goals and with employee values and needs; C). reward
the right things to convey the right message about what is important in terms of behaviors and
outcomes;
D). Help to attract and retain the high-quality people the organization needs;
E). motivate people and obtain their engagement and commitment;
F). Develop a high-performance culture.
G). support the achievement of business goals through high performance;
H). Develop and support the organization‘s culture;
I). define what is important in terms of behaviors and outcomes;
J). reward people according to what the organization values;
k). Win the engagement of people.
The aims of reward management are achieved by developing and implementing strategies,
policies, processes and practices that are founded on a philosophy, operate in accordance with
the principles of distributive and natural justice, function fairly, equitably, consistently and
transparently, are aligned to the business strategy, fit the context and culture of the organization,
are fit for purpose and help to develop a high performance culture. Importance of Reward
management; Reward management supports the achievement of business goals by helping to
ensure that the organization has the talented and engaged people it needs. It contributes to the
achievement of high performance by ensuring that the reward system recognizes and encourages
it. Reward management can define expectations through performance management and
contingent pay schemes. Armstrong, (2010) Reward management policies in association with
HR policies can help to create a working environment that provides for the just, fair and ethical
treatment of employees. These are policies about treating people properly and avoiding the
creation of unacceptable reward practices that reflect badly on the organization.

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 2.3.3. Reward Policies
According to Armstrong and Helen (2005), reward policies provide guidelines for the
implementation of reward strategies and the design and management of reward process. They
will be influenced by the reward philosophy of the organization. The reward policies will
concern with;
 The level of reward
 The relative importance attached to market rate and equity
 The relationship of rewards to business performance
 The scope for the use of contingent rewards related to performance, competency or skill.
 The degree of flexibility required in the system
 The need to involve employees in the design of reward system.
 The need to communicate reward policies to employees.
 Transparency; the publication of information on reward values, structure and process to
employees.
2.4. The Effects of Reward Management Practices
2.4. 1. Recognition
The type of reward practices used by an organization plays an important role in motivating
employees to perform (Beer & Walton, 2014). Employee recognition is not just a nice thing to do
for people. Employee recognition is a communication tool that reinforces and rewards the most
important outcomes that people create for your business (Heathfield, 2017). Based on decades of
research on operant conditioning and behavior modification, it is commonly believed that if
rewards are used effectively, they can motivate individuals to perform at higher levels, and the
use of proper rewards culminates in firm performance at the organizational level.
Reward and recognition is an essential part of any human resource programmed. It is also
important that the rewards offered are significant. Cash benefits alone are not special enough.
Nobody would say that an extra boost to the monthly pay packet is not welcome, but when it’s
likely to be swallowed up by day to day expenses it stops being ‘special’. Paying off the
mortgage is all very well, but it is hardly likely to linger in the memory when compared to the
excitement of taking the whole family for a fun day out (Stead, 2017).
2.4.2. Benefits

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Allowances are considered being a very crucial factor to employee motivation. Many forms of
allowances such cash allowance, travel allowance, overtime allowance, and generally individual
bonuses are all considered to be an important and significant factor to motivate and retain
employees (Aamir, Raheed& Malik 2012). Armstrong (2012) recommended that the distinction
amongst recompense and pay is that remittance can be a compensation for extra minutes or
possibly change towards expanded average cost for basic items, while the compensation is the
rate that could be hourly, month to month, or yearly. Allowances are a significant element of
financial rewards for employee motivation as it boosts the employee’s morale and also a feeling
of belongingness as employees will live their lives with stability and dignity (Yousaf, Latif,
Aslam&Saddiqui 2014).
Attractive Salaries or pays are also a Valuable tool and play an important role to increase
employee’s performance and also increase the productivity of an organization (Muogbo, 2013).
Pay can be arranged into two sections, a fixed pay, and performance linked pay. A fixed pay can
be depicted for the most part as the measure of cash given to an employee irrespective of the
execution and is relied upon to accomplish the absolute minimum necessity and regardless of
whether the business is a super achiever no extra rewards will be given (Sefrin,2016).
Organizations can likewise offer increases in salary for achieving certain production levels,
finishing preparing programs or for remaining with the organization for a specific timeframe.
These raises can help inspire workers to enhance their execution levels and aptitudes.
2.4.3 Promotion
A study by Garcı´a et al. (2012) identified that perceptions of promotion systems affect
organizational justice and job satisfaction. Likewise, Koch and Nafziger (2012) specified that
promotions are desirable for most employees, only because they work harder to compensate for
their ‘‘incompetence.’’ As a result, promotion at regular interval of time has an optimistic
approach behind and they are generally given to satisfy the psychological requirements of
employees in the organization.
2.4.4. Working conditions
In (2012), Jung and Kim stated that good work environment and good work conditions can
increase employee job satisfaction and an employee organizational commitment. So the
employees will try to give their best which can increase the employee work performance.
Similarly, Cheng et al. (2013) concluded that there were evidences of moderating effects of age

20
on the associations between psychosocial work conditions and health. Now the importance and
the need of working condition is so describing or defining the physical environment by
identifying those elements or dimensions of the physical environment. Employees having poor
working conditions will only provoke negative performance, since their jobs are mentally and
physically demanding, they need good working conditions.
2.4.5 Payment
As summarized by Park (2010), monetary incentive acts as a stimulus for greater action and
inculcates zeal and enthusiasm toward work; it helps an employee in recognition of achievement.
Likewise, Beretti et al. (2013) discussed that monetary incentives used to build a positive
environment and maintain a job interest, which is consistent among the
Employee and offer a spur or zeal in the employees for better performance. For reason,
monetary incentive motivate employees and enhance commitment in work performance, and
psychologically satisfy a person and leads to job satisfaction, and shape the behavior or outlook
of subordinate toward work in the organization.

2.4.6. Career Development

Career development is the ongoing acquisition or refinement of skills and knowledge, including
job mastery and professional development, coupled with career planning activities (Peterson and
Tracey 2009). Career development practices are key strategic considerations for all organizations
regardless of size, sector, market or profile. The development of the capacity and capability of
the organization’s managers has a fundamental impact on efficiency, effectiveness, morale and
profitability of an organization (Irene and Hazel 2016). Career development covers an
employee’s working life. It starts with, for example staff orientation, on-job training, experience,
short courses, professional courses, post graduate degrees or diploma. According to the National
Strategy for the Development of the social service workforce in Scotland (2005), employee
development is the foundation on which the confidence and competence of individual staff is
built, (Robbins, 2010).
Career development benefits not only the individual employee, but also the organization. The
development of employees for future positions, an organization is assured of a supply of
qualified, committed employees to replace the higher-level employ. Career development helps to
retain and motivate employees through the career development process; employees are assisted
in setting realistic goals and to develop the required skills and abilities for target positions (Xu

21
&Thomas, 2011). In most firms, it is becoming increasingly evident that career management
programmed are cost justified in the same terms as staffing programmed; that is each approval
contributes to improved utilization of employees and overall organizational effectiveness (Leach,
2000). Thus, the purpose of career development is to match an employee’s career aspirations
with opportunities and challenges available within the organization (Aplin & Gerster, 2008).
There are many models of career development. The life-cycle model advocates that employees
face definite development tasks over through their career and moving through career stages. The
organization based model also advocates that career continues through a series of stages but both
of these models suggest that career development includes employees’ learning to perform certain
activities. Each stage has different activities and relationships with co-workers and managers.
The directional pattern model defines the shape and form of careers (Super, 2003).
Career development is not a new issue, in the recent past, individuals engage in personal career
development (Hall, 2002) by getting involved in personal educational advancement and
professional training; which may or may not align with their present organizational goals. On the
other hand, organizations may choose to training or develop their employees in alignment to
their present needs and also prepare them for future organizational needs (Humphries and Dyer,
2001 in Osibanjo, Oyewunmi and Ojo, 2014) (Kirk, Downey, Duckett, and Woody, 2000).
Adeniji and Osibanjo (2012) argue that career development can “help reduce cost expended on
recruiting and training new employees in organizations.” In similar direction, Byars& Rue (2004)
identify the following major objectives of career development: to meet the immediate and future
human resource needs of the organization on a timely basis; to better inform the organization and
the individual about potential career paths within the organization; and to utilize existing human
resource programs to the fullest by integrating the activities that select, assign, develop, and
manage individual careers with the organizations’ plans. The study explores the effect of career
development on employee performance.
2.5. Performance
According to Aguinis (2009), performance is about behavior or what employees do, and not
what employees produce or the outcomes of their work. Performance is an effort along with the
ability to put efforts supported with the organizational policies in order to achieve certain
objectives. Campbell (1990) also defines performance as behavior. It is something done by the
employee. This concept differentiates performance from outcomes. Outcomes are an individual's

22
performance, but they are also the result of other influences. Several variables determine
performance. These variables could be classified as general determinants of performance. For
instance, one’s qualification can go a long way to enhance his performance. When one goes
through education, development and training to acquire a certain level of qualification, it will
enhance his working ability all other things being equal. In addition, experience is a great asset
that can improve an employee’s performance. The longer the number of years‟ experience, the
higher the level of performance all other things being equal. Again, quality and style of
supervision is a key factor. The use of democratic and autocratic styles of supervision will have
varying degree of results given different behaviors of employees; the working environment is
another determinant that could pose serious threat to performance. For example, if the working
environment is hazardous, it could endanger the lives of employees.
The use of protective gadgets and clean working environment could reduce the hazards
employees are exposed to at the workplace; the single most important determinant of
performance is compensation package. In the absence of compensation, performance levels
would be very low compensation could be financial or non-financial may have different levels of
motivation and consequently its influence on performance; factors such as tools and equipment
can enhance one’s performance. Imagine the use of computers, combine harvesters, irrigation
system and teaching aids in the production system. Technology has made it possible to have
certain tools and equipment that enhance productive activities; and other determinants of
performance include support from other colleagues, production materials, health condition of
employees, job security, and retirement and other benefits, age, loyalty or commitment (Aguinis,
2009). Campbell (1990) and Aguinis (2009) have provided their version of performance
determinants to complement the general determinants. They suggested that individual differences
on performance are a function of three main determinants: declarative knowledge, procedural
knowledge, and motivation. Declarative knowledge refers to knowledge about facts, principles,
and objects among others. It represents the knowledge of a given task's requirements. Procedural
Knowledge is having certain skills in knowing what to do and how to do it. That is, the employee
requires certain technical skills to be able to accomplish a task. Procedural knowledge also
relates to one’s intelligence level and physical ability. The third predictor of performance is
motivation, the driving force behind every human activity.

23
2.6. Reward and Employee Performance
Reward is the most important factors influential organizational performance. Employee
motivation is one of the policies of managers to increase effectual job management amongst
employees in organizations (Shadare et al., 2009). A motivated employee is responsive of the
definite goals and objectives individuals must achieve, therefore individuals direct its efforts in
that direction. Organizational facilities will go waste if it lacks motivated people to utilize these
facilities efficiently. Employee motivation and performance are key factors in moving a business
forward. Owners, managers and supervisors know positive motivation leads to better
performance and higher productivity but may rely on the wrong tools that will create
dissatisfaction among employees and leads to poor performance. Motivation increases the
willingness of the workers to work, thus increasing effectiveness of the organization.
Therefore, the goal is to develop motivated employees and support their morale regarding their
respective works for better performance (Shadare et al., 2009). Motivation is fundamentally
meant to facilitate behavioral alteration. It is a force that enable individual to act in a direction of
a particular objectives (Shahzadi et al 2014).
According to the study of (Grant 2008 as cited in Shahzadi 2014) held on employee motivation,
motivation forced such result as productivity, performance and persistence. Motivation is a
general term applying to the entire class of drive, desires, needs, wishes, and similar forces. To
say that manager motivate their subordinates is to say that they do things which they hope will
satisfy these derives and desires and induce the subordinates to act in a desired manner.
Employee performance is originally what an employee does or does not do. Performance of
employees could include quantity of output, quality of output, timeliness of output, presence at
work, cooperativeness (Güngör, 2011). Macky and Johnson pointed that improved individual
employee performance could improve organizational performance as well. From Deadrick and
Gardner’s (1997) points, employee performance could be defined as the record of outcomes
achieved, for each job function, during a specified period of time. If viewed in this way,
performance is represented as a distribution of outcomes achieved, and performance could be
measured by using a variety of parameters which describe an employee's paten of performance
over time. On the other hand, Darden and Babin (1994) said employee's performance is a rating
system used in many corporations to decide the abilities and output of an employee. Good
employee performance has been linked with increased consumer perception of service quality,

24
while poor employee performance has been linked with increased customer complaints and
brand switching. To conclude, employee performance could be simply understood as the related
activities expected of a worker and how well those activities were executed. Then, many
business personnel directors assess the employee performance of each staff member on an annual
or quarterly basis in order to help employees identify suggested areas for improvement. There
are competitive environments among the various businesses and organizations. Therefore, all
employers of labor try to manage their overhead costs in order to retain their key employees
through motivation. The relationship between motivation and employee performance is that
employees tend to perform much better when they are positively and consistently motivated.
However, the employees perform less when they are poorly motivated. Therefore, motivation is
directly proportional to the performance of employees.
2.7. Empirical studies
Titled as “Effect of motivation on employee performance of commercial banks in Ethiopia: A
case study in CBE north Addis Ababa district city branches by Muluken, Feleke(2019). The
finding of the study are as follows, all the independent variables such as enhanced salary,
benefits, promotion, recognition and working condition had positive relation and a significant
effect on employee performance. Entitled as “Effect of motivation on employee performance of
commercial banks in Kenya: A case study of Kenya Commercial Bank in Migori County a thesis
by Pamela AkinyiOmollo (2015). This study sought to assess the effect that motivation had on
the job of workers of the Kenya Commercial Bank in Migori County. The study also focused on
the de-motivating factors like delay of promotion, no clear career progression, unreasonable load,
long working hours and lack of appreciation from the managers. Based on these the study
indicates that monetary rewards significantly affect the performance of the employee in the
organization.
According to Muogbo (2013), in his study the impact of employee motivation on organizational
performance of selected firms in Nigeria ‘showed that the existence of relationships between
employee motivation and organizational performance. His study reveals that extrinsic motivators
given significant influence on the worker’s performance. Based on his findings, the researcher
recommends that all the firms should consider adopting extrinsic rewards scheme in their various
firms to increase the productivity.

25
A study by Aarabi, Subramanian and Akeel (2013) that deals with the relationship between
motivational factors and job performance of employees in Malaysian Service Industry indicate
that job performance as dependent performance while payment, job security, promotion, freedom,
friendly environment and training were considered as independent variables of motivational
factors. The results showed that both training and promotion variable were found significant
contributors to job performance (40.4% and 43%) respectively, in addition, the research findings
show that intrinsic motivators were considered more important than extrinsic motivational
factors (Payment, Job Security, Friendly environment). But freedom an intrinsic variable was not
found significantly related to job performance.
Samson Yimka, (April 2015) entitled as “motivation and employees performance in the Nigerian
banking industry a survey of selected banks. The main purpose of the study was to depict
assessment of motivation practice on employees’ performance in the Nigerian banking industry.
The study raised the following research questions: - to what extent are the employees’ motivated
in the Nigerian Banking Industry, what is the status of employees‟ performance in the Nigerian
Banking industry and if there is any significant relationship between motivation and employees‟
performance in the Nigerian banking industry. The main finding of the study clearly evidenced
that motivation has an effect on employees’ performance. Similarly, this study tries to assess the
stated objectives based on theoretical knowledge and give more emphasis on motivation and
Employee performance.
2.8. Conceptual Framework
Conceptual framework is related to some abstract ideas or theory. It is generally used by
researchers and thinkers to develop new concepts or to reinterpret existing variables. The figure
bellow show that the independent variable and dependent variable. The independent variable is
considered as motivation factors, which include extrinsic, intrinsic factors, extrinsic factors
include payment, benefits, transport service etc., intrinsic factors include promotion, recognition,
career development opportunity, and working condition (Hertzberg 1960) .and also Dependent
variable is employee performance, which includes efficiency, punctuality, responsibility
accomplishment etc. (Mustafa 2013).The dependent and independent variables as well as the
mediating factor that are going to be used in this study are shown as a conceptual framework in
Fig1. Conceptual Framework

26
 Reward practices
 Payment Employee Performance
 Benefits  Efficiency & Effectively
 Recognitions  Employee Satisfaction
Working condition  Employee Loyalty
 Promotion
 Career Development

Independent Variables Dependent Variable

Source: Own construction base on (Hertzberg 1960) and Mustafa 2013)

27
 CHAPTER THREE
RESEARCH DESING AND METHODS
3.1 Introduction
This chapter provides the research methods will be employed to conduct the study. Accordingly,
this chapter will presents research design and technique, data type and source, total population,
sampling design technique, method of data collection, data processing & analysis, Validity &
Reliability and Ethical consideration. Zikmund, Babin, Carr and Griffin (2010) describe a
research methodology as a part that must explain technical procedures in a manner appropriate
for the audience. It achieves this by addressing the research and sample designs that used for the
study, the data collection and fieldwork conducted for the study and the analysis done to the
collected data. Dawson (2009) states that research methodology are the philosophy or general
principle which guides the research. Kombo and Tromp, (2009) concur with Zikmund et al.
(2010) that research methodology deals with the description of the methods applied in carrying
out the research study.
3.2. Description of the study
Enat Bank was the last private commercial Bank to enter the market as the entry barrier (required
minimum capital to establish a private Bank) was raised from Birr 75 million to Birr 500 million.
Enat Bank joined the Ethiopia Banking industry by commencing operation in March, 2013 as the
latest entrant of the sixteen currently operational private commercial banks. The establishment
objectives of the Bank revolve around the two pillars that are conventional commercial banking
services and leveraging women economic capabilities. Besides, the bank holds branding as a
strategic and distinctive innovative means in the banking sector.
The story of Enat Bank is one of conquest over difficulty. Enat Bank was initiated by a diverse
group of 11 powerful Ethiopian women, and this tight team of founders has shepherded Enat
from an idea to a reality. Enat is a unique success story that should make all Ethiopians proud.
The founders of Enat had a vision to create a new bank that was open to everyone, with a special
focus on women. Such a focus was necessary to help women access credit, among other products.
While the team found many supporters, raising the funds constituted a major hurdle. But the
more difficulties the team faced, the more unified and determined they became to make Enat a
reality. Each founder contributed their own time and resources. The establishment of Enat marks
a unique point in Ethiopian and African banking history. Women own 64 percent of the bank,

28
and compose many major leadership positions from the senior bank management to the Board of
Directors. The founders succeeded in their vision through commitment and hard work, and are
prepared to continue to nurture the bank as it establishes itself. The founders believe after Enat
succeeds in Ethiopia, it can be expanded across Africa (www.enatbanksc.com). Enat Bank
registered impressive operational results during its first fiscal year 2013/14 [EFY 2006]. Among
these remarkable achievements was that Enat Bank managed to reach and surpass the Billion
Birr mark in deposits mobilization and registered a gross profit of Birr 38.9 million as at June 30,
2014. It looks other private banks three or more years to reach that threshold. The bank has
registered yearly gross profit 289 million at fiscal year 2020-21 (Annual Report, 2021). And the
bank earned annual net profit 230,192 million at fiscal year 2020-21(annual report, 2021).
Enat Bank has not chosen the “Business as Usual” growth and development path and to maintain
the almost two decade’s early entry head start advantage of the older operators have over it. The
Bank’s unique establishment objectives and the equally unique opportunities available to it have
already manifested themselves in the Bank’s remarkable performance during its first Fiscal Year
operational results. This does not mean that operational life hereafter shall be a bed of roses. Enat
Bank’s takeoff shall remain sustainable and even more upgradeable, if and only if it can
formulate and successfully implement unique and innovative growth and development strategies.
(www.enatbanksc.com).
3.3. Research Design
A research design is the program that guides the researchers in the process of collecting,
analyzing and interpreting the data. The primary aim of this study is the Effects of Reward
Practices on Employees’ performance. Orodho (2003) and Kothari (2004), describe a descriptive
survey design as a design that seeks to portray accurately the characteristics of a particular
individual, situation or a group. The descriptive studies will used in order to describe and
interpret the trend of events that exists (Creswell, 2003). Lavrakas (2008) describes a descriptive
survey research design as a systematic research method for collecting data from a representative
sample of individuals using instruments composed of closed-ended questionnaires, So that, in
this study the descriptive survey research survey design will be employed to process the data to
effectiveness of motivation practices. Also, based on the purpose, this study is a descriptive
survey method in nature because, this type of method conducted to provide detail description

29
about the existing phenomena and to justify current condition with the intent of employing data
and whenever possible to draw conclusion from the fact discovered Kothari, (2004).
in order to show the cause and effect of Reward Practices on Employees’ performance the
researcher also will be used the explanatory research design because , it explain the relationship
between variables and how these variables affect employee performance. The emphasis here is
on studying a situation or a problem in order to explain the relationship between variables. The
objective with this kind of research is to analyze cause-effect relationship, explaining what cause
produces what effect.. The reason behind was used explanatory type of research design to
explain, understand and predict the relationship between variables through statistical tests such
as correlation and regressions
3.4. Research Approach
This study used deduction approach because; the empirical framework is built based on the
previous studies and testing the proposed hypotheses. The deductive approach also it helpful for
identifying the causal relationships among factors by collecting data using a quantitative method
testing the hypothesis. Quantitative aspect of the study is intent to find data needed to generalize
the result to the population as stated (Marczyk, DeMatteo and Festinger, 2005). And Quantitative
research used positivist knowledge claims (such as cause and effect thinking, reduction to
specific variables and hypothesis, use of measurement and observation, and test of theories)
employs strategies of inquiry such as experiments and surveys and collect data on predetermined
to instrument that yields statistical data (Creswell, 2009).
3.5. Data Type and Sources
The necessary data for the study was collected from both primary and secondary sources.
According to Kothari (2004), Primary data are fresh data gathered for the first time and thus
happened to be original in character. The study was employed mixed approach as, both
qualitative and quantitative data. The primary source collected through closed- ended
questionnaires with the in the bank employees. Ember and Ember (2009) describe secondary
data as data collected by others and found by the case researcher in ethnographies, censuses and
histories. Therefore, the secondary data collected from different sources such as, websites, books,
and Journals, periodicals released by the banks and articles national and international and
magazines.

30
3.6. Target Population and Sampling Design Techniques
The target population of the study consisted of employees of ENAT bank in Grade A branches at
Addis Ababa. Considering the fact that head office and Grade A branches have large number of
employees and different level of positions in which many other branches were not provided,
these selected benches due to their experience, level of attention to customers and having reward
management practices in their serve here. Furthermore, these selected branches have more
branches operation, information banking, loan associations, and high number of depositors than
other branches. Currently, head office and ENAT bank Grade A in Addis Ababa has six branches
and under these branches there are 159 employees. The sample unit for this study considered the
total numbers of head office and grade A branches employees in ENAT bank encompasses
exactly 159 employees, i.e. (N=159).Considering this reality, the researcher took all population
are sample size (n=159) by using census method for this study.
Table 3.1. List of branches, their populations
No List of Head Office and Grade A Number of Employees and Sample Size
Branches
1 Head office (Kazanches) 70
2 Abebech Gobena (Megenagna) 15
3 Catherine Hamlin (Meskel Flower) 12
4 Derartu tul (Mexico) 15
5 Etege Taitu( Kazanches) 25
6 Muluembet Emiru (22 branch) 10
7 Nigeste Saba (Bole) 12
Total 159
Source: Own construction based on census taken from selected branches
3.7. Data Collection Instruments
Methods of data collection relatively dependence on standard questionnaires prepared by
Swaminathan (2004), So that, these questionnaire developing based on the statement of the
problem, research hypothesis, reviewed literatures and previous studies from various references,
and which deal with the research topic. This prepared in the form of Likert’s five scales. This
scale helps to assure employees’ response, which kept confidential by the researcher. However,
to measure Reward management Practices on Employees’ performance the researcher modifies

31
in relation to the study for that matter the researcher tested the reliability and check the
dependability.
Kothari (2004) define a questionnaire as a document that consists of a number of questions
printed or typed in a definite order on a form or set of forms. For the purpose of data collection,
the closed-ended questionnaires prepared on the basis of Reward Management Practices on
Employees’ performance of bank. Thus, close-ended questionnaires help to avoid pressure up on
the respondents in any direction and better able to obtain the required data in the study area.
The questionnaire divided into two sections. The first section contained the demographic
characteristics of the respondents requested to provide information about their gender, age, year
of service or experience and education level and others. The second section of the questionnaire
designed to enable the researcher to gather information about effects of Reward Practices on
Employees’ performance. For all questionnaire included in section two, the respondents
requested to indicate their feeling on a five point Likert scale type to measure weighted as
follows: 1=strongly disagree, 2=disagree, 3=neutral, 4=agree, and 5= strongly agree. But, while
making interpretation of the results of frequency, tables, mean and standard deviation the scales
are reassigned as follows to make the interpretation easy and clear. 1 - 1.8= Strongly Disagree,
1.81 – 2.6 = Disagree, 2.61 – 3.4= Neutral, 3.41 – 4.20= Agree and 4.21 – 5 = Strongly Agree
(Best, 1977, as cited by Yonas, 2013).
3.8. Validity and Reliability of Research Instruments
Validity is the extent to which differences found with a measuring tool reflect true differences
among respondents being tested. The purpose of validity in the study has been to seek relevant
evidence that confirms the answers found with the measurement device which is the nature of the
problem. The items are revised and improved according to the employee’s, expertise and
advisors.
Reliability test is an important instrument to measure the degree of consistency of an attribute
which is supposed to measure. As stated by Mahon and Yarcheski (2002) the less variation of the
instruments produces in repeated measurements of an attribute the higher its reliability.
Reliability can be equated with the stability, consistency, or dependability of a measuring tool.
Cronbach's alpha is one of the most commonly accepted measures of reliability. It measures the
internal consistency of the items in a scale. It indicates that the extent to which the items in a
questionnaire are related to each other. It also indicates that whether a scale is one dimensional

32
or multidimensional. The normal range of Cronbach’s coefficient alpha value ranges between 0-
1 and the higher values reflects a higher degree of internal consistency. Different authors accept
different values of this test in order to achieve internal reliability, but the most commonly
accepted value is 0.70 as it should be equal to or higher than to reach internal reliability (Hair et
al., 2003).
3.9. Data processing and analysis techniques
The data collected analyzed using qualitative and quantitative data analysis techniques. The
qualitative data analyzed using content analysis; this content analysis is a procedure for the
categorization of verbal or behavioral data, for purposes of identified, classification,
summarization and tabulation. Also, based on the higher level of analysis is interpretative:
However, the numerical data were analyzed using SPSS (statistical packages for social science)
software program (26 Version). Analysis of data in this research done by using descriptive
statistical methods like: frequency, tables, mean, and inferential statistical methods such as:
simple correlation and multiple regressions.
The correlation analysis conducted to test the proposed hypothesis whether there is a positive
significant relationship between the reward management variables, and employees’ performance.
The multiple regression analyses conducted to determine by how much percent contribution in
the independent variables i.e. reward management explains the dependent variable which is
employees’ performance. Also, this analysis method, the independent variables entered into the
equation in the order specified by the researcher based on theoretical grounds. Therefore, it
conducted to investigate the influence of independent variable on the dependent variable and
identify the relative significant influence.
3.10. Model Description
Base pay
The base rate is the amount of pay (the fixed salary or wage) that constitutes the rate for the job.
It may be varied according to the grade of the job or the level of skill required. (Armstrong, 2010)
Employee Benefits
Employee benefits refer to compensation other than hourly wage or salary. Three fundamental
roles characterize benefits: protection programs (income and health, respectively), paid time-off,
and accommodation and enhancement benefits.

33
Protection programs provide family benefits, promote health, and guard against income loss
caused by catastrophic factors like unemployment, disability, or serious illnesses. Paid time-off
policies compensate employees when they are not performing their primary work duties, such as
during vacation, holidays, and bereavement. Accommodation and enhancement benefits promote
opportunities for employees and their families. There is a wide variety of programs, including
stress management classes, flexible work schedules, and tuition reimbursement. (Stone & Stone-
Romero, 2008) The employee benefits include: - a) Fringe Benefits - this can include a variety of
options. Sick leave, paid vacation time, health club memberships, daycare services. (Ingham,
2007).b) Health Benefits - most organizations provide health and dental care benefits for
employees. In addition, disability and life insurance benefits are offered. (Ingham, 2007) c)
Flexible benefit - this benefit schemes allow employees to decide on the make-up of their
benefits package within certain limits (Armstrong, 2010).
Recognition
Recognition is to acknowledge someone before their peers for desired behavior or even for
accomplishments achieved, actions taken or having a positive attitude. Appreciation on the other
hand centers on showing gratitude to an employee for his or her action. Such rewards help
employees to gauge their performance and know whether they are doing good or bad. (Njanja,
Maina, Kibet, & Njagi, 2013). Recognition is one of the most powerful methods of rewarding
people. They need to know not only how well they have achieved their objectives or carried out
their work but also that their achievements are appreciated. (Stredwick, 2005).The recognition
should be meaningful, but also stay within established program boundaries: For example,
recognition should be given only for performance considered over and above established
standards. Recognition rewards usually are relatively small and are given at the time of
achievement (Ruddy, 2007). The most common strategies of recognition programs according to
(Ruddy, 2007) are: i. Rewarding employees for making exceptional contributions above and
beyond their daily job functions.
Promotion
Promotion is an important feature of employee’s life style and occupation, affecting other job
experience levels and can have an obvious impact on other job aspects like job attachment and
responsibilities. Additionally, promotion can influence the instrument of exerting better attempts,
if employees put an important value on it. If not, the companies would focus on pay increase to

34
reward high effort and productivity. Indeed, the employees may be worth the promotions since
they make an increase in job services (Gohari, Ahmadloo, Boroujeni, & Hosseinipour, 2013).
Working Conditions
The physical environment in which the work is performed is described here. Adverse
environmental conditions such as noise, heat, and fumes are detailed along with the frequency of
exposure. Most professional and executive job descriptions do not include this section because
work is assumed to be performed under normal office conditions. If it is not, the section should
be included. (Ruddy, 2007) Working conditions is defined by criteria such as: a. Physical effort b.
working environment c. Sensory attention d. Physical risks.
Employees’ performance
Employee performance means a performance comprises an event in which normally one group
of people the performer or performers act in a particular way for another group of people
(Chaundary & Sharma, 2012). It refers to employees’ efficiency at work, How well employees
perform on the job and assignments assigned to them measured against the generally accepted
measure of performance standards set by their companies (Torrington, 2008).
In addition, the following multiple linear regression equation was used to determine the effects
of Reward Practices on Employees’ performance in Enat Bank
Y= β0+ β1X1+ β2X2+β3X3+β4X4 + β5 X5 + β6 X6 +E….
Where:
Y= Dependent variable (Employees’ performance)
X1, X2, X3, X4, X5 and X6 are the explanatory (independent) variables
X1= Payment X2= Job Satisfaction
X3= Reward and Recognition X4= Promotion
X5 = Working condition
β0 is the intercept term- it gives the mean on effect Y of all the variables excluded from the
equation, although its mechanical interpretation is the average value of Y when the stated
independent variables are set equal to zero.
β1, β2, β3, β4 β5 and β6, refers to the coefficient to their respective independent
Ε is the error term

35
3.11. Ethical Consideration of the Research
The researcher gave due consideration to ethical issues throughout the research process. All
participants for their willingness and for those who may not be willing to participate, the
researcher tried best to explain the goal of the researcher in detail until they were convinced to
participate in the study. In instance where the potential participants were not swayed, the
researcher thanked them and passed to the next respondent. The data collected was used
confidentially only for the sole purpose of academic study. Moreover, regarding written source,
the researcher has acknowledged and cited sources appropriately to the best of the ability. As a
result, any mistakes in terms of acknowledgment of sources is unintentional rather ignorance.

36
 CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRITATION
4.1. Introduction
The primary focus of the study was to The Effect of Reward Management Practices on
Employees’ Performance in the case of Enat Bank at Addis Ababa. Therefore, this chapter
presents the analysis of responses that were received via questionnaires distributed to employees
of the bank on the relationship between reward practices and employees performance. The
researcher was able to get back one hundred fifty- six (156) out of the 159 questionnaires
administered which gives 98 % response rate. This was done in order to obtain a larger response
rate. In this chapter, the data collected from respondents were analyzed and interpreted using
quantitative and qualitative analysis which involves analysis of the demographical information of
respondents and the descriptive and inferential statistics employed to test the hypothesis and to
investigate the influence of independent variables on dependent variable. The results are
presented and discussed to answer the pre-established research objectives and address the
hypothesized relationship between relationships between Reward Management Practices on
Employees’ Performance.
4.2. Reliability and Validity of Instruments
Validity: Refers to the extent to which the concept one wishes to measure is being measured by
a particular scale or index. According to Kothari (2004), validity aims at establishing the results
which are linked with the condition. It is concerned with the extent to which the scale accurately
represents the construct of interest. To assure the validity of the measurement instrument, the
study was conducted based on the accepted conceptual framework that indicates that the
theoretical construct was associated with the measurements that are valid to evaluate the
(independent variables) Reward Management Practices on (dependent variable) employees’
performance. So employees performance where possible this should be supported and
consideration given to practical things. So, pre-questionnaires were distributed to check the
validity of questions to further the data collection process. As per the comments and the
discussion with the bank employees the questions prepared for primary data collection for the
research objectives were found valid by the researcher.
Reliability: Aimed at the point that even if the research was repeated they would end up with
similar results, showing the consistency or dependability of the measurement technique. It is

37
concerned with the consistency or stability of the score obtained from a measure or assessment
overtime and across settings or conditions. If the measurement is reliable, then there is less
chance that the obtained scores are due to random factors and measurement error (Marczyh et al.,
2005).
Cronbach's alpha is one of the most commonly accepted measures of reliability. It measures the
internal consistency of the items in a scale. It indicates that the extent to which the items in a
questionnaire are related to each other. It also indicates that whether a scale is one dimensional
or multidimensional. The normal range of Cronbach’s coefficient alpha value ranges between 0-
1 and the higher values reflects a higher degree of internal consistency. Different authors accept
different values of this test in order to achieve internal reliability, but the most commonly
accepted value is 0.70 as it should be equal to or higher than to reach internal reliability (Hair et
al., 2003).The Cronbach’s coefficient alpha was calculated for each field of the questionnaire.
The table 4.1 shows the values of Cronbach’s Alpha for each field of the questionnaire and the
entire questionnaire. For the fields, values of Cronbach's Alpha ranged from 0.572 and 0.834.
This range is considered high as the result ensures the reliability of each field of the
questionnaire and except from benefits. Cronbach's Alpha equals was the entire questionnaire
which indicates very good reliability of the entire questionnaire. Therefore, based on the test, the
results for the items are reliable and acceptable.
Table 4.1: Cranach’s Alpha for each field of the Questionnaire
No Dimensions Number of Items Cronbach’s Alpha
1 Recognition 5 0.862
2 Payment 5 0.820
3 Benefits 5 0.572
4 Promotion 5 0.762
5 Working condition 5 0.807
6 Career development 5 0.834
7 Employees performance 6 0.72
Total 36 0.951
Source: Own Survey result, May (2023)

38
4.3. The Percentage and Frequency Distribution of Personal Profile of the Respondents
This descriptive analysis is used to look at the data collected and to describe data captured
through the questionnaire. It was used to describe the demographic factors for more clarification.
It is mainly important to make some general observations about the data gathered for general or
demographic questions. The demographic factors used in this research were gender, age,
educational qualification, and work experience of respondents in the ENAT bank
Table 4.2 Demographic Characteristics of Respondents

Demographic Categories Frequency Valid Percent

Gender Male 80 51.3
Female 76 48.7
Total 156 100.0
Age 18-27 years 33 21.2
28- 37 years 48 31
38- 47 years 63 40
48- 57 years 11 7
Total 156 100.0
Working Experience 1-4 years 40 26
5-8 years 60 39
9-12 years 51 31
Above 12 years 7 3.0
Total 153 100.0
Education Level Diploma 6 3.8
Degree 109 69.9
Masters 39 25.0
PHD 2 .06
Total 156 100.0
Source: Own Survey result, May. (2023) n=156
This descriptive analysis used to look at the data collected and to describe data captured through
the questionnaires. It was used to describe the demographic factors for more clarification. It is
mainly important to make some general observations about the data gathered for general or

39
demographic questions. The demographic factors used in this research were gender, age,
educational qualification, and work experience of respondents in the ENAT bank .
As table 4.1 below shows, 51.3 percent of the respondents of ENAT bank employees were male
while the remaining 48.7 percent of the respondents were female. This indicates that the almost
of the employees of the bank were relatively. From this we can infer that female participation in
ENAT bank was equal relative to male.
Another description observed in the above table 4.2, is the age interval of the respondents. 21.2
percent of the respondents of ENAT bank employees were found in the age interval of 20 to 25
years. The high value was 40 percent were found in the age interval of 30 to 35 years. And the
remaining 31 percent were found in the age interval 25-30 years. This indicates that the majority
of the employees of ENAT bank were young and middle aged. Therefore, from this data, the
researcher concluded that the age status of the given individual has a great value to do with the
efficiency and effectiveness of what he/she performs to the bank services and the customers
As far as work experience of the respondents is concerned (table 4.2), 26 percent of the
respondents of the bank have 1 to 4 years of working experience, 39 percent of the respondents
have 5 to 8 of years working experience and the remaining 31 percent have 9 to 12 years of
working experience. This implies that all departments in bank are in a good track on
establishing, maintaining and enhancing long-lasting relationships with reward and employees’
performance, managers and employees in order to improve the bank employees’ performance. In
general, the results of demographic characteristics of the respondent’s entail that, they can
clearly understand and respond to the questions provided to gather primary data.
As far as the educational qualification of employees is concerned table 4.1, 42 percent of the
respondents in the bank were BA degree holders, 35 percent were Master’s holders, and the
remaining 17 & 0.6 percent were Diploma and PhD holders respectively. So from this data the
researcher infer that the educational status of the given individual has a great value to do with the
efficiency and effectiveness of the bank services.
4.4. Descriptive Statistics of Scaled Type Questionnaires
In this part, descriptive statistics, in the form of mean and standard deviation, were presented to
illustrate the level of agreement of the respondents with their implications in bank. The responses
of the respondents for the variables indicated below were measured on five point Likert scale
with: 1= strongly disagree, 2= disagree, 3 = neutral, 4= agree and 5= strongly agree. But, while

40
making interpretation of the results of mean and standard deviation the scales were reassigned as
follows to make the interpretation easy and clear. 1-1.8= Strongly Disagree, 1.81–2.6 = Disagree,
2.6 –3.4= Neutral, 3.4–4.20= Agree and 4.2 –5 = Strongly Agree (Best, 1977, as cited by Yonas,
2013).
4.5. Employees Perception about reward and Performance
Table 4.3.Rate your level of satisfaction with the working culture of the bank ?

Measurement Frequency Percent Valid Percent

Valid Highly Satisfied 23 13.3 14.7
Satisfied 50 28.9 32.1
average Satisfied 59 34.1 37.8
Dissatisfied 24 13.9 15.4
Total 156 90.2 100.0
Source: Own Survey result
This frequency table shows around half of the respondent which is 46. 8% shows that they were
Highly Satisfied and satisfied on the working culture of the bank, average in 38% and
dissatisfied are around 15.4 % of the respondent. These shows there are some uncomfortable
organizational cultures that the management team should consider.
Table 4.4.Type of incentives motivates you more

Measurement Frequency Percent Valid Percent

Valid Incentive Awards 50 28.9 32.1
Promotion 99 57.2 63.5
Recognition 7 4.0 4.5
Source: Own Survey result
As the above table 4.4 shows that, 64% of the respondents prefer promotion and 32% opt for
Incentive awards whereas Recognition are rated 6% among the respondents.
Table 4.5.Satisfied with the incentives provided by the bank
Measurement Frequency Percent Valid Percent
Valid Highly Satisfied 40 23.1 25.6
Satisfied 76 43.9 48.7
Dissatisfied 32 18.5 20.5

41
 Highly Dissatisfied 8 4.6 5.1
Total 156 90.2 100.0
Source: Own Survey result
The table above 4.5 shown that the employees’ level of Satisfied with the incentives provided is
most in Satisfied in 49 %, Highly Satisfied in 26 % whereas dissatisfied in 26%, respectively.
This frequency table shows around half of the respondent were satisfied on the working culture
of the bank and highly dissatisfied and dissatisfied are around 26 % of the respondent this
shows there are some uncomfortable organizational cultures should the management team should
consider.
4.6. Perception of respondents towards Recognition
It is a useful positive tool where usually people get recognized by their work and job done and
based on that they receive recognition. Pinar, (2011) stated that employees work harder when
they are recognized and appreciated for their effort toward the work and tasks have been given
and this is a simple, easy and powerful strengthen system. When employees get recognized and
appreciated, they do their best to prove the skill, talents and abilities they have. Furthermore,
recognizing employees is also considered a way of communication that strengths and rewards the
outcomes people create for your business. For that, leaders should develop recognition system
which is powerful for both employees and organization (Hsiu-Fen, 2007).
Table 4.6: Descriptive statistics of Recognition
items N Mean SD
Recognizing employees whose efforts make a difference 152 3.86 1.064
Recognizing individual team members equally for their efforts 156 4.13 .962
Demonstrating that their work is valued and respected 154 3.80 1.196
Recognizing years of service to the organization 156 3.60 1.258
It is important to me to be formally recognized by 156 3.42 1.373
management/supervisor for a job well done
Source: Own Survey result,
As it can be seen in table 4.6 the concern of employee in ENAT bank motivated and/or
individual contributor to working in recognizing employees whose efforts make a difference has
scored mean of 3.86 with standard deviation of 1.064, recognizing individual team members
equally for their efforts have scored 4.13 with standard deviation0.962, demonstrating that their

42
work is valued and respected in the bank has scored a means of 3.8 with standard deviation
of 1.196, recognizing years of service to the organization has scored mean of 3.6 with standard
deviation of 1.3 and it is important to me to be formally recognized by management/supervisor
for a job well done has scored mean of 3.42with standard deviation of 1.373 respectively.
Therefore, the majority of the respondents in bank (3.4–4.20) agreed with the recognizing
employees whose efforts, recognizing individual team members equally for their efforts and
work is valued and respected, but it is important to me to be formally recognized by
management/supervisor for a job were mean scored 3.42 of the respondents near to neutral with
the idea. Therefore, from this data, the researcher concluded that employees who feel appreciated
and recognized are more positive about themselves and their abilities to contribute. It also
guarantees positive, productive and innovative organization environment.
4.7. Perception of respondents towards Recognition
Salary /wages/ increments- all these are temporary approaches used to motivate employees. Most
of the researches and studies have proved that money and payments are important to employees
relative to other motivators as earning a lot of money is an advantage for pushing toward reward.
It clarifies that when employees are satisfied financially, they motivate at work and work hard.
Financial aspects like payments, allowances, salaries and bounces increase and affect employee’s
productivity positively as a result of a study which has been done by Locke, Feren, McCaleb,
Shaw and Denny (1980), they have concluded that introducing of 32 individual pay, increase
productivity rate from 9% to 17%. So, it is obvious that when employees are motivated and
satisfied, their productivity increases which adds value to the whole business.
Table 4.7: Descriptive statistics of Salary/ salary Increment
Items N Mean SD
The salary scale of the bank is rational 156 3.70 1.302
My current salary enables me to cover my basic needs so I can fully 156 3.42 1.391
concentrate on my job.
There is periodical increase in salary. 156 3.60 1.174
The periodical increase in salary is considering to the real world 156 3.86 1.140
The periodical salary enhancement makes my customer service very 156 3.90 1.065
delighted.
Source: Own Survey result

43
The above table 4.7 shows weight average value of the variables related to Salary/ salary
Increment in the ENAT bank. As the entire respondents reply, the intended variables: “The
salary scale of the bank is rational” has a weight mean of 3.70, within standard deviation1.302
of the respondents agreed, currently salary enables me to cover my basic needs so I can fully
concentrate on the job has a weight mean of 3.42, within standard deviation 0.83 of the
respondents agreed, There is periodical increase in salary have a weight mean of 3.60, within
standard deviation 1.3 of the respondents agreed, The periodical increase in salary is considering
to the real world has a weight mean of 3.86, within standard deviation 1.114 of the respondents
agreed, and The periodical salary enhancement makes my customer service very delighted in the
bank has a weight mean of 3.90, within standard deviation 0.1 of the respondents agreed.
Therefore from the above we can see that relevant need satisfaction leads to high reward ,
Monetary incentive is enough to motivate employee and motivated employees are assess motive
and efficient in their functioning contain very high mean score value and good salaries are more
important. On the other hand, when employees get high performance rate and a very good
appraisal, they appear to be sensitive to whether their performance rewarded by money and pay
increase. So, money concerns are always there and it is important for employees to work and
give.
4.8. Perception of respondents towards Benefits
Benefits as know bonus pay is the sum of money employers give to employees beyond their
existing wages (Mike Kappel, 2018).Bonuses come in various forms and there have be
arguments as to the reasons why most organizations prefer to use bonuses to motivate their
workforce. The reason why most organizations prefer the usage of bonuses is that they are the
easy way to thank the workers. Bonus can also increase employee morale and motivate workers
to reach goals. When employees are happy, the organization is primed to perform better than
ever (Mike Kappel 2018).
Table 4.8: Descriptive statistics of Benefit
Items N Mean SD
There is adequate level of allowances 156 3.68 1.119
The different allowances and yearly bonuses of the bank is rational 156 3.80 1.161
The various allowances of the bank is considerable to the real world 156 3.65 1.268
There is a fair allowance between all staffs of the bank 154 3.77 1.16

44
 The various allowances of the bank enhances the staffs life standard 156 3.83 1.36
and motivate to stay longer at the bank
Source: Own Survey result
As shown in table 4.8, the respondents agreed that the bank has adequate level of allowances
(mean 3.68 and standard deviation1.11), The respondents also agreed that the allowances and
yearly bonuses of the bank is rational (mean 3.8 standard deviation 1.16), the respondents
mentioned that various allowances of the bank is considerable to the real world (mean 3.65
standard deviation 1.3), The respondents said that there is a fair allowance between all staffs of
the bank (mean 3.77standard deviation 1.16),and the respondents also neutrals that the various
allowances of the bank enhances the staffs life standard and motivate to stay longer at the
bank (mean 3.83 standard deviation 1.36). On the other hand, most respondents most especially
the staff is of the opinion that bonuses and allowances are adequate in bank.
4.9. Perception of respondents towards Promotion
Promotion usually satisfied employees who are given higher roles and responsibilities work as
motivators toward unsatisfied employees. In order for employees to successfully take the new
role, they should be given specific directions and expectations. They also are more open to the
new responsibilities when they feel supported and have all the resources to perform the job
(Jurgensen, 1978).
Table 4.9: Descriptive statistics of Promotion
Items N Mean SD
There is adequate opportunity to promotion 156 3.57 1.114
The promotion is through effective performance appraisal 154 3.56 1.149
system
Working hard in bank awards promotion 155 3.86 1.119
The bank benefits its staffs in various form in relation to 156 3.69 1.302
promotion that improves their life standard
The bank promotes me rationally so that I have no intention of 156 3.416 1.391
resigning.
Source: Own Survey result
As shown in table 4.8, those respondents that agreed the bank has adequate opportunity to
promotion account (mean 3.6 and standard deviation1.11); the promotion is through effective

45
performance appraisal system accounts (mean 3.56 and standard deviation 1.14), working hard in
bank awards promotion (mean 3.84 standard deviation 1.19), the bank benefits its staffs in
various form in relation to promotion that improves their life standard(mean 3.3.69 standard
deviation 1.3),and the bank promotes me rationally so that I have no intention of resigning has
shown (mean 3.4standard deviation 1.4). In the above result supported by (David, Louis, Micheal,
2004),Employees who are given new role and high responsibilities are motivated to work harder
because they see that all their effort in work will accomplish positive results and based on that
they were receive recognition.
4.10. Perception of respondents towards Working Condition
Working environment: whether working environment is plainly a satisfier or an active motivator
is still to be decided. What is sure, though, is that there is no use trying to motivate high
performance, while employees are frustrated by not having the right quality and amounts of
equipment they need for their work (Bowey, 2005). Thus, managers should make sure their staff
has the adequate space, tools, information technology systems, and materials they need for the
job. Managers are then urged to prepare in advance all the equipment a new employee’s needs
(e.g. a desktop and a chair). Managers should also hold a healthy (physically and mentally)
working environment.
Table 4.10: Descriptive statistics of Working Condition
Items N Mean SD
I feel as I am safe in my work place 154 3.60 1.1738
I have the necessary tools and equipment adequately to perform 154 3.85 1.14
my tasks efficiently and effectively
The overall working environment of the bank is good 154 3.88 1.07
I am more motivated to perform my work tasks when I feel there 156 3.67 1.118
is fairness of treatment at the workplace
The training practice increase work related knowledge 156 3.80 1.16
Source: Own Survey result, July, (2022)
As shown in table 4.9, those respondents that agreed to the choices that the I feel as I am safe in
my work place accounts (mean 3.6 and standard deviation1.2), the necessary tools and
equipment adequately to perform my tasks efficiently and effectively (mean 3.585standard
deviation 1.14), those that the working environment of the bank is good in bank accounted

46
for (mean 3.88 standard deviation 1.07), more motivated to perform my work tasks when I feel
there is fairness of treatment at the workplace has shown(a mean of 3.67and standard deviation
1.11),and finally, the training practice increase work related knowledge accounted (mean 3.80
standard deviation 1.16) respectively.
4.11. Perception of respondents towards Career Development
Employees’ are to be given the necessary technical and interactive skills training on a constant
basis to ensure that they render efficient and quality service to their customers whilst improving
on their competencies. Technical skills training refer to the familiarization and training of
employees with equipment and standard routines. Interactive skill training is more complex and
tends to focus on teaching employees’ problem solving, communications and interpersonal skills.
Technical and interactive skills training programmers should not only be limited to employees,
but should as well be conducted for managers. Training should be an ongoing process throughout
the whole organization. To grow and maintain a workforce that is customer-oriented and focused
on delivering quality service requires the organization to develop and invest in the right
employee through having constant training if possible the entire workforce. (Valaries et al 1996,
314)
Table 4.11: Descriptive statistics of Career Development
N Career Development Mean SD
1 I am satisfied with supervisors in my bank . 3.65 1.26
2 The supervision is sensitive and supportive of the bank work 3.698 1.3
schedule.
3 The supervisors encourage junior health professionals‟ path and 3.42 1.39
growth.
4 My immediate manager provides feedback on employee's evaluation 3.6 1.17
and performance.
5 Management respects each employee’s ability & knowledge of the job. 3.85 1.13
Source: Own Survey result
As shown in table 4.11, those respondents that are satisfied with their supervisors account(mean
3.6 5 and standard deviation1.26), those who showed that the supervision is sensitive and
supportive of the bank work schedule have shown (mean 3.7 and standard deviation 1.3),
those respondents that agreed that the supervisors encourage junior health professionals‟ path

47
and growth “(mean 3.42 standard deviation 1.17), those that support immediate manager
provides feedback on employee's evaluation and performance (mean 3.6, standard deviation 1.1),
and the bank management respects each employee’s ability & knowledge of the job given(a
mean of 3.85and standard deviation 1.1). In relation to the above question, it has been stated that
the bank uses non-monetary rewards like recognition, inclusive decision-making and flexible
working hours to motivate employees. The finding has shown that almost above ninety percent
of the employees strongly agreed with those non-monetary rewards. Therefore, in the bank
there is a good encouragement to employees’ towards achieving organizational goals and
satisfaction in the bank .
4.12. Perception of respondents towards Employees performance
Performance in organizations can be divided in organizational performance and job performance.
The scope of this thesis lies at job performance, and is known as the result of an employee its
work. A good employee performance is necessary for the organization, since an organization’s
success is dependent on employee’s creativity, innovation and commitment (Ramlall, 2008). It is
generally accepted that an employee’s performance is based on individual factors, namely:
personality, skills, knowledge, experience and abilities (Vroom, 1964). Job performance also has
its implications; the measurement of job performance is mostly not objective. In most
organizations employee’s performances are measured by supervisory ratings.
Table 4.12: Descriptive statistics of Employees performance
items N Mean SD
The reward practice of the bank helped me to perform my work 156 3.85 1.08
quickly and efficiently.
I always perform my best to delight the customer. 156 3.67 1.118
I always perform my job by respecting my colleagues 156 3.80 1.16
As reward is fundamental to an employee performance to be 156 3.65 1.26
high/low organization should asses the level of employee reward
periodically.
The level of empowerment and employee autonomy at my 154 3.76 1.16
organization has an impact on my reward level at work.
The reward practice increase work related knowledge 156 4.00 3.44
I am highly engaged in the bank 155 3.56 1.26

48
Source: Own Survey result
As can be seen from the above table, the research questionnaire explores how do employees
perceive the reward al practice (financial and non-financial incentives) on employee performance,
employee responses to the above questions. Based on the response of the respondent for that
dependent variable of employee performance questionnaires is average score mean. This implies
that the employees of the company are highly (substantially) and above moderately perceived the
employee performance. When the aggregate mean result is 3.85 (high) seen the assessment of
reward al practice on employee performance of the company. This is consistent with the findings
of Kohn, (1993), Powell, (1998) who stated that not all writers agree that incentive plans or
programs will always lead to positive outcome. This implies that different reward al practice
indeed work in boosting employee performance and their presence or absence can make a
significance difference in organizational performance. From descriptive analysis of mean and
standard deviation we can understand that there is high level of both financial and non-financial
benefits of bank.
As shown in the above table, the descriptive statistics of employee performance looks the
following. A mean of 3.85 and Standard deviation of 1.11 goes to the choice that says the reward
practice of the bank helped me to perform my work quickly and efficiently. On the other hand,
always perform my best to delight the customer accounts for a mean of 3.77 and a SD of 1.13. I
always perform my job by respecting my colleagues has accounted a mean of 3.8 and A SD of
1.27. Apart from this, the organization should asses the level of employee reward periodically
was accounted for a mean of 3.67 and a standard deviation of 1.19. The remaining a mean of 4.0
and a SD of 1.23 and a mean of 3.5 with a SD of 1.28 were given for the level of empowerment
and employee autonomy at my organization has an impact on my reward level at work and the
reward practice increase work related knowledge respectively.
4.13. Correlation Analysis
Correlation measures the strength of the linear relationship between two variables. Thus,
Pearson’s correlation is used to identify whether there are relationships between the variables
and to describe the strength and the direction of the relationship between two variables.
According to Berndt etal (2005), the level of association as measured by Pearson’s coefficient
falls between -1.0 and +1.0, which indicates the strength and direction of association between the
two variables. The interpretation of the result is as follows; a correlation result between 0 to 1

49
implies positive relationship, 0 (zero) for no relationship, 1 for perfect positive relationship, -1
for perfect negative relationship and between +1 to 0 indicate the existence of negative
relationship. Though it indicates the existence of a positive or negative relationship, the strength
of such a relationship is not high when the results fall below ±0.61 (Oogarah-Hanuman et. al,
2011). It is also supported by Berndt et al (2005), the rules of thumb proposed by Burns & Bush
(in van Heerden, 2001) suggests that “moderate” ends at ±0.60, and “strong” starts at ±
0.61.Since all variables are interval, the relationship between reward practice and employees
performance was investigated using Pearson correlation coefficient. The results of correlation
analysis in the table 4.8 shows that, all the independent variables were positively and
significantly correlated with the dependent variable i.e. employees performance at 95 percent
confidence level (P<0.05)
Like the descriptive statistical methods, i.e. demographic factors, and the scale typed
questionnaire entered to the SPSS software version 26.0 to process inferential statistics methods
such as Pearson correlation test to know the degree of relationship between reward practice and
employees’ performance. Based on the questionnaires filled by the employees of ENAT bank
in Addis Ababa, the results of the correlation analysis are shown in table 4.13 below
Table 4.13: Correlation Analysis

Correlations
RR SS BB PP WC CD EE
RR Pearson 1 .801** .513** .788** .679** .816** .595**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
SS Pearson .801** 1 .584** .835** .895** .964** .701**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
BB Pearson .513** .584** 1 .586** .707** .630** .702**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000

50
 N 156 156 156 156 156 156 156
PP Pearson .788** .835** .586** 1 .758** .831** .594**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
WC Pearson .679** .895** .707** .758** 1 .863** .813**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
CD Pearson .816** .964** .630** .831** .863** 1 .736**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
EE Pearson .595** .701** .702** .594** .813** .736** 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 156 156 156 156 156 156 156
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Own Survey result,
Where
Recognitions=RR Payment= SS
Benefits= BB Promotion =PP
Working condition=WC Career development=CD
Employees’ performance = EE
Correlation analysis was conducted to determine the relationship reward practices (recognition,
payment, benefits, promotion, working condition, career development), and the dependent
variable i.e. employees’ performance which revealed that recognition has significant positive
relation with the Employees’ performance as r1 = 0.595, p < 0.05, also for, payment relationship
has both significant and positive relation with the Employees’ performance that is r2=0.701 at
p<0.05, benefit shave significant positive relation with the Employees’ performance that,
r3=0.702 p< 0.05, Promotion, have significant positive relation with the Employees’

51
performance r4=0.594** p< 0.05, working condition have significant positive relation with the
Employees’ performance r5=0.813**, p< 0.05, and career development have significant positive
relation with the Employees’ performance as r6=0.736** p< 0.05 respectively. In summary, all
independent variables of reward practices have strong positive and significance relationship
between Employees’ performances in bank .
4.14 Linearity test
Linearity refers to the degree to which the change in the dependent variable is related to the
change in the independent variables. To determine whether the relationship between dependent
variable employees ‘performance and the independent variable incentives scheme is linear; plots
of the regression residual through SPSS software had been used.

The scatter plot of residuals shows no larger difference in the spread of the residual as you look
from left to right on figure 4.3. This result suggests the relationship we are trying to predict is
linear. Similarly, the above figure shows the normal distribution of residuals around its mean of
zero. Hence the normality assumption is fulfilled as required based on the above figure, it is
possible to conclude that the inference that the researcher was made about the population is
somewhat valid.

52
4.15. Homoscedasticity
Homoscedasticity refers to “the assumption that dependent variable(s) exhibit equal levels of
variance across the range of predictor variable(s)” (Hair, 2010). It is one of the most important
statistical assumptions that researchers should assess before performing multivariate analysis
(Hair, 2010). Homoscedasticity is desirable because the variance of dependent variable being
explained in the dependence relationship should not be concentrated in only a limited range of
independent values (Tabachnick and Fidell, 2007). Homoscedasticity can be measured by
graphical and statistical methods (Field, 2009; Hair, 2010).As shown in Table 4.14. The VIF
values were less than 10, which revealed the absence of multicollinearity with independent
variables, whilst the tolerance showed values of above 0.1 which indicated the absence of
multicollinearity. In addition, if there are no circles or asterisks on either end of the box plot, this
is an indication that no outliers are present. So, the results of multi-co linearity for the variables
under this study are listed in Table 4.14. Therefore, the values of tolerance for each independent
variable are within the threshold of .10 with VIF of 1 < VIF and VIF < 10 showing that there was
no multi-co linearity problem in the study. But Payment and Career development show that
VIF>10 showing that there was multi-co linearity problem in the study.
Table 4.14: Multicollinearity statistics
S/N Dimensions Tolerance VIF
1 Recognitions .286 3.499
2 Payment .044 22.869
3 Benefits .410 2.439
4 Promotion .252 3.967
5 Working condition .137 7.285
6 Career development .058 17.146
Source: Own Survey result of SPSS
4.16. Heteroskedasticity Test
Heteroscedasticity test is part of the classical assumption test in the regression model. To detect
the presence or absence of heteroskedastisitas in the data, can be done in several ways, one of
them is by looking at the scatter plot graph on SPSS output. The working principle of
heteroscedasticity test with this method is to see the scatter plot graph between the predictive
values of the independent variable that is ZPRED with the residue of SRESID. If there is a

53
particular pattern in the SPSS scatter plot graph, such as the points that form a regular pattern, it
can be concluded that there has been a problem of heteroscedasticity. Conversely, if there is no
clear pattern, and spreading dots, then the indication is no heteroscedasticity problem. Based on
the scatter plot output below, it appears that the spots are diffused and do not form a clear
specific pattern.

4.17 Test of Linearity

The statistics in table 4.14 below indicated that the reward practices and employees’ performance
have linear relationship. In regression as a rule of thumb, an indicator of possible nonlinearity is
when the standard deviations of the residual exceed the standard deviations of the dependent.
Therefore, as residual statistics in descriptive statistics Table showed that the ANOVA output
table, value sig. deviation from linearity of p< 0.05, it can be concluded that there is a linear
relationship between the variables of reward al practices and employees’ performance. This
conclusion is in agreement with decision making process in the linearity test, the study tried to
see the existence of reward al practices and employees’ performance. ANOVA analysis, below
table 4.15 .Indicated that there is statistically significant difference independent variables and
dependent variable because of the (P< 0.05).
Table 4.15: Test of Linearity
ANOVAa
Model Sum of df Mean F Sig.
Squares Square

54
 1 Regression 124.765 6 20.794 68.539 .000b
Residual 45.205 149 .303
Total 169.970 155
a. Dependent Variable: EE
b. Predictors: (Constant), RR , SS, BB, PP, WC, CD
Source: Own Survey result of SPSS,
4.18: Linear Regression Analysis
Regression model was applied to test how far the effects of reward practices and employees’
performance. Coefficient of determination R is the measure of proportion of the variance of
dependent variables about its mean that is explained by the independent or predictor variables. It
is conducted to investigate the factors of independent variables on the dependent variable and
identify the relative significant influence; i.e. independent variables (Reward and recognitions,
payment, benefits, promotion, working condition and career development) and the dependent
variable; employees’ performance in ENAT bank. Higher value of R represents greater
explanatory power of the regression equation. The proposed hypotheses were tested using
multiple regression analysis
Table 4.16 the Results of the Regression Analysis
Model Summaryb
Model R R Adjusted R Square Std. Error of the Estimate
Square
1 .857a .734 .723 .55081
a. Predictors: (Constant), RR , SS, BB, PP, WC, CD
b. Dependent Variable: EE
Source: Own Survey result of SPSS
Table 4.16, depicts the results of multiple regressions of the effects of reward al practices and
employees’ performance in bank. The result shows that the model tested is significant level
(p<0.01). As far as the above table is concerned, in bank, the R square value is 0.734, this
indicates that 73.4 percent of the variance in employees’ performance and dependent variable is
attributed to the six independent variables entered into the regression and the remaining 26.6
percent of the variance in employees’ performance may be explained by other factors which are

55
not studied, because they are beyond the scope of study. The coefficients below illustrate the
effects of reward practices in bank.
Table 4.17: Coefficients of Employees’ Performance

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) .036 .220 .164 .870
RR .144 .088 .130 1.640 .103
SS -.849 .230 -.747 -3.696 .000
BB .151 .062 .161 2.435 .016
PP -.190 .101 -.159 -1.886 .061
WC 1.010 .141 .819 7.184 .000
CD .726 .189 .674 3.850 .000
a. Dependent Variable: EE
Source: Own Survey result of SPSS
As per the SPSS results generated, the regression equation that can be formulated based on the
information obtained is as follows:
Y = β0+ β1X1+ β2X2+β3X3 +β4X4 + β5X5+ β6X6+E
Where
Y= Employees’ Performance
X1 = Recognitions
X2 = Payment
X3 = Benefits
X4= Promotion
X5=Working Condition
X6=Career Development
E = Error term
Y =0.36 + 0.13X1+ (-747X2) + 0.16X3+ (-0.159X4 + 0.819X5+ 0.674X6 +E. This regression
equation indicates that taking five the effects of Reward practices (Recognitions, payment,

56
benefits, promotion, working condition, and career development) on employees’ performance
respectively.
Hypothesis One
H11: Recognitions has positive and significant effect on employees’ performance
The result of multiple regression analysis of the table 4.17 above clearly indicates that in ENAT
ban , Reward and Recognitions have a slight positive and insignificant influence on employees’
performance (p >0.01). Besides, the value of Beta (β= 0.13 or 13%) respectively, with a value of
the beta value was 13%. shows that the model tested is insignificant (p>0.01). this implies, that
the Reward and Recognitions has slight positive effect son employees’ performance and Reward
and Recognitions in the bank implementation is lower than other factors. Therefore, the above
proposed hypothesis is rejected.
Hypothesis Two
H12: payment has positive and significant effect on employees’ performance
The result of multiple regression analysis of the table 4.17 above clearly indicates that in bank
payment has negative significant influence on employees’ performance (p<0.01). Besides, the
value of Beta (β= -0.747 or -74.7 %) respectively, shows that payment has negative affecting of
payment on employees’ performance. This implies that a one percent decrease in payment results
in-74.7% percent increases in employees’ performance. Therefore, the above proposed
hypothesis is rejected.
Hypothesis Three
H13: Promotion has positive and significant effect on employees’ performance.
The result of multiple regression analysis of the table 4.17 above clearly indicates that in bank
Promotion have a negative and insignificant influence on employees’ performance (p >0.01).
Besides, the value of Beta (β= -0.159 or -15.9%) respectively, with a value of the beta value was
-15.9%. shows that the model tested is insignificant (p>0.01). this implies, that the Promotion
has a negative affecting on employees’ performance in the bank implementation is lower than
other factors. Therefore, the above proposed hypothesis is rejected.
Hypothesis four
H14: Benefits has positive and significant effect on employees’ performance.
The result of multiple regression analysis of the table 4.17 above clearly indicates that in bank ,
Benefits have positive and significant influence on employees’ performance (p<0.01). Besides,

57
the value of Beta (β= 0.16 or 16 %) respectively, with a value of the beta value was 16 %),
Shows that the model tested is significant (p<0.01). This implies that the benefits have positive
affecting on employees’ performance and promotion in the bank implementation is lower than
other factors. Therefore, the above proposed hypothesis is accepted.
Hypothesis Five
H15: Working Condition has positive and significant effect on employees’ performance.
The result of multiple regression analysis of the table 4.17 above clearly indicates that in bank
Working Condition have perfect positive and significant influence on employees’ performance
(p <0.01). Besides, the value of Beta (β= 0.819 or 81.9%) respectively, with a value of the beta
value was 81.9%. shows that the model tested was significant (p<0.01). This implies that a one
percent increase in working condition results in 82 percent increase in employees’ performance
of bank respectively. Therefore, the above proposed hypothesis is accepted.
Hypothesis Six
H16: Career Development has positive and significant effect on employees’ performance.
The result of multiple regression analysis of the table 4.17 above clearly indicates that in bank
Career Development has significant influence on employees’ performance (p<0.01). Besides, the
value of Beta (β= 0. 674 or 76.4 %) respectively, shows that the positive affecting of Career
Development has significant influence on employees’ performance. This implies that a one
percent increase in Career Development results in 76.4 percent increase in employees’
performance of bank respectively. Therefore, the above proposed hypothesis is accepted.

58
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 CPU College
School of postgraduate
Department of Business Administration
Questionnaire to be filled by ENAT Bank Employees
Dear Respondent,
I would like to express my deep appreciation for your generous time, honest and prompt
responses. This questionnaire is designed to collect data about the “The Effect of Reward
Management Practices on Employees’ Performance in the case of ENAT Bank at Addis
Ababa”. The information that you offer me with this questionnaire used as a primary data in my
case study, I am conducting as a partial fulfillment of the requirements for the degree of Masters
of Business Administration (MBA) at CPU College. Therefore, this research is to be evaluated in
terms of the contribution to Reward Management Practices on Employees’ Performance and to
improvements in the area.
I want to assure you that this research is only for academic purpose authorized by the CPU
College. No other person could access the collected data in any sort of report, but, I can not
include any information that will make it possible to identify any respondent.
Thank you in advance for your cooperation!
General Instructions
1. No need of writing your name.
2. Please fill the answer by putting “√” mark.
3. Please return the completed questionnaire as much as possible.
4. If you need further explanation, you can contact me through the address mentioned above.
PART I: Demographic Information
1. Sex: Male Female
2. Age:
20-25 Years 25-30 Years 30-35 Years 35-40 Years 40 and above
3. Working experience:
1-4 year 4-8 year 8- 12 year 12& above year
4. Education level:

62
 Diploma Degree Masters PhD and above
PART II: Employees Perception about Reward and Performance
5. Rate your level of satisfaction with the working culture of the bank
A. Highly Satisfied C. Satisfied
B. Average D. Dissatisfied E. Highly Dissatisfied
6. Which type of incentives motivates you more?
A. Incentive Awards C Appreciation letters
B. Promotion D. Recognition
7. How far you are satisfied with the incentives provided by the bank?
A. Highly Satisfied C. Dissatisfied
B. Satisfied D. Highly Dissatisfied
PARTIII: Employees’ perception about Reward and Performance
Please state your level of agreement for each given statement using the following scales:
5 = Strongly Agree4 = Agree, 3 = Neutral, 2 = Disagree 1= Strongly Disagree

Perceptions Of Respondents Towards The Employees Reward And Agreement

Performance Scale

No Recognition 5 4 3 2 1
1. Recognizing employees whose efforts make a difference
2. Recognizing individual team members equally for their efforts
3. Demonstrating that their work is valued and respected
4. Recognizing years of service to the organization
5. It is important to me to be formally recognized by
management/supervisor for a job well done
Benefits 5 4 3 2 1
6. The salary scale of the bank is rational
7. My current salary enables me to cover my basic needs so I can
fully concentrate on my job.
8. There is periodical increase in salary.
9. The periodical increase in salary is considering to the real world
10 The periodical salary enhancement makes my customer service

63
 very delighted.
Benefits 5 4 3 2 1
11 There is adequate level of allowances
12 The different allowances and yearly bonuses of the Bank is
rational
13 The various allowances of the Bank is considerable to the real
world
14 There is a fair allowance between all staffs of the Bank
15 The various allowances of the Bank enhances the staffs life
standard and motivate to stay longer at the Bank
Promotion 5 4 3 2 1
16 There is adequate opportunity to promotion
17 The promotion is through effective performance appraisal system
18 Working hard in bank awards promotion
19 The Bank benefits its staffs in various form in relation to
promotion that improves their life standard
20 The Bank promotes me rationally so that I have no intention of
resigning.
Working Condition
21 I feel as I am safe in my work place
22 I have the necessary tools and equipment adequately to perform
my tasks efficiently and effectively
23 The overall working environment of the bank is good
24 I am more motivated to perform my work tasks when I feel there is
fairness of treatment at the workplace
25 The training practice increase work related knowledge
Career Development
26 I am satisfied with supervisors in my bank.
27 The supervision is sensitive and supportive of the bank work
schedule.

64
28 The supervisors encourage junior health professional’s path and
growth.
29 My immediate manager provides feedback on employee's
evaluation and performance.
30 Management respects each employee’s ability and knowledge of
the job.
Employees performance 5 4 3 2 1
31 The reward practices of the bank helped me to perform my work
quickly and efficiently.
32 I always perform my best to delight the customer.
33 I always perform my job by respecting my colleagues
34 As reward is fundamental to an employee performance to be
high/low organization should asses the level of employee reward
periodically.
35 The level of empowerment and employee autonomy at my
organization has an impact on my motivation level at work.
36 The reward practices increase work related knowledge
37 I am highly engaged in the bank

65