Measuring the Employees’ Satisfaction on Reward System - in Case of Development Bank of Ethiopia
Downloads
The purpose of this paper is to Measure Employee Satisfaction on Reward System Development Bank of Ethiopia. The objective of the research is to investigate the relationship between reward system practice (independent variable) and the employees’ satisfaction (dependent variables) and also the effect of reward system practice on the employees’ satisfaction in development bank of Ethiopia. The study used a quantitative correlation and regression type of research. From 753 employees at development bank of Ethiopia at head office level 255 select a sample that represents the whole population by using sample size determination formula. Stratified probability sampling technique used to select samples for the targeted employees. From each stratum respondents selected through simple random sampling method. The correlation results of this finding suggested that transparency, equity, fair distribution and consistency of reward system have positive effect on the employees’ satisfaction in Development Bank of Ethiopia. The promotional practice in the bank gives low value for experience and performance (40%) and it give high value for test (60%). In the performance appraisal, the individual performance is not considered because affected by process, branch and region performance. And also reward system usually not adjusted with environmental change like inflation and profitability of the bank. Development bank of Ethiopia has problems of recognition and appreciation good workers as well as performance appraisal system of the bank did not satisfied majority of employees. Hence transparency, equity, fair distribution and consistency of reward system have highly affected the employees’ satisfaction. So, the Bank have to improve and carry out effective reward system to increase employees’ satisfaction.
Adams J., 1965. Injustice in social exchange’, in L. Berkowitz.3thed. Advances in Experimental Psychology. New York: Academic Press.
Alderfer, C., 1972. Existence, Relatedness and Growth, Free Press, New York.
Ali, R., and Ahmed, M. S., 2009. The impact of reward and recognition programs on employee’s motivation and satisfaction: an empirical study. International Review of Business Research Papers, 5(4), 270-279.
Amabile, T. M., Hill, K. G., Hennessey, B. A., and Tighe, E. M. (1994). The Work Preference Inventory: Assessing intrinsic and extrinsic motivational orientations. Journal of Personality and Social Psychology, 66(8): 950 –967.
Amin Karami et al, 2013. Analyzing the Effectiveness of Reward Management System on Employee Performance through the Mediating Role of Employee Motivation. Case Study: Isfahan Regional Electric Company: International Journal of Academic Research in Business and Social Sciences, Vol. 3, No. 9.
Andualem T., 2013. Reward and employee satisfaction: A case study of Admas University College. Master’s Degree Thesis, Addis Ababa University School of Commerce.
Armstrong M. & Murlis H., 2007. Rewards Management: A Handbook of Remuneration Strategy and Practice. 4th ed. Kogan Page.
Ivana N., Lovorka G., & Nevenka C., 2009. Corporate Culture and Innovation: Implications for Reward Systems. World Academy of Science, Engineering and Technology, pp. 397-402
Kaplan, S. L., 2007. Business Strategy, People Strategy and Total Rewards. Benefits & Compensation Digest, Vol. 44 (9).
Khan, K, U, Syed Umar Farooq, Zilakat Khan., 2010. A Comparative Analysis of the Factors Determining Motivational Level of Employees Working in Commercial Banks in Kohat, Khyber Pukhtunkhwa. International Journal of Business and Management, Vol.5 (12).
Khawaja Jehanzeb et al, 2012. Impact of Rewards and Motivation on Job Satisfaction in Banking Sector of Saudi Arabia: International Journal of Business and Social Science Vol. 3(21)
Mahlet A. (2012): Reward and employee satisfaction: A comparative study Tigur ambessa and Alert hospital reward system. Master’s Degree Thesis. Addis Ababa University School of Commerce.
Marczyk, J. Dematteo, D. &Festtinger, D. (2005). Essential of research design and methodology, John Wiley & sons, Inc.
Matthew Guthridge, Martin Dewhurst and Elizabeth Mohr., 2009. ‘Motivating people: Getting beyond money', McKinsey Quarterly.
Melese Abebe, 2013. Factors affecting teacher job satisfaction Ethiopia Government University. Unpurplished
Michael A. and Helen M., 2007. Reward Management: a Handbook of Remuneration Strategy and Practice.5th revised .ed. London: Kogan.
Michael A., 2006. A hand book of human resource management practice. 10th Edition. Kogon Page, London & Philadelphia.
Micheal. A. and Helen M., 2004. Reward management: A handbook of remuneration strategy and practice. 5th Ed. United kingdom and the United States: Kogan page.
Navid Niki., 2012. Designing Distribution system of rewards and influence on Employees Satisfaction Case Study, Hamgamkhodro Asia factory: International Journal of Business and Social Science Vol. 3( 12 ).
Schuler, R.S., and Jackson, S.E.,1996. Human Resource Management: Positioning for the 21st Century. 6th edition. New York: West Publishing Company.
Welman, J., Kruger, S. (2004). Research methodology for the business and administrative sciences. Pretoria. Oxford University Press Southern Africa.
