Abstract
Safe working environment is very important for any organization to create competitive employee in the world. The main objectives of this research was to assess the effect of reward practices on employees’ motivation in selected Public and Private Banks /Commercial Bank of Ethiopia, Bank of Abyssinia and Abay Bank/ in South Gondar Zone. After intensive review of prior literature, we have selected payment, benefit, promotion working condition, recognition, and training opportunities as dimensions of reward. The study was done based on primary and secondary data sources. A self-administered questionnaire was designed to collect relevant information from the selected 203 respondents. Among this 200 questionnaire were returned and analyzed. Multistage sampling method was used and employees are selected from each stratum with a systematic sampling technique. The collected data was analyzed by SPSS version 20 using descriptive statistics and multiple regressions. Quantitative research approach and Explanatory research design was employed to show the cause and effect of independent and dependent variables. Based on the result of multiple linear regression variables like recognition and training have positive and significance effect on employee’s motivation in Commercial bank of Ethiopia, and also payment and training variables have positive and significance effect on employee’s motivation in private banks. On the other side promotion and recognition have been found insignificant in CBE and in Private Banks respectively than other variables in the model. Since the relation between rewards and motivation exist, the management of commercial bank of Ethiopia and Private Banks shall be follow better rewarding techniques to increase the performance of employees as well as achieving organizational objectives. Keywords: Reward Practices, employee’s motivation, Commercial Banks, South Gondar Zone. DOI : 10.7176/RJFA/11-1-05 Publication date: January 31 st 2020
Highlights
According to Malik et al, (2011) reward system is a very important tool that all banks can use to sound employee’s motivation in different ways
As we can see in the above regression coefficient table payment has a beta value .108, p value .062 in Commercial bank of Ethiopia (CBE) and in Private Banks beta value .186, p value .005, according to the result we found that payment is significant for Private Banks, it is insignificant for CBE this may be due to the problem of payment system in CBE
In addition to this mean value of motivation shows that the level of motivation in CBE is high
Summary
According to Malik et al, (2011) reward system is a very important tool that all banks can use to sound employee’s motivation in different ways. Of which can be in terms of monetary or non-monetary, is the key factor to attract or retain talents and to motivate employees to become good performers. Commercial Bank of Ethiopia, Bank of Abyssinia and Abay Bank are among those Banks which have a better number of branches in South Gondar Zone than others These Banks like other financial institutions are struggling to earn as large market share as possible, by attracting and retaining motivated employees for providing excellent banking service to its customers (Mohamedi, 2013). This study was tried to show the effect of rewards on employee’s motivation in selected public and private commercial banks. Objective of the study General Objective The Main Objective of the Study was to assess the Effect of Rewards on Employees Motivation in CBE and selected Private Banks (BoA & Abay Bank). To examine similarity & difference between CBE and private banks based on motivational factors
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