THE EFFECT OF REWARD MANAGEMENT ON EMPLOYEES’ JOB PERFRMANCE: RASA GUBA FLOUR AND BISCUIT FACTORY IN FOCUS

Abstract

This study was conducted to investigate the effect of reward management on employees’ performance in Rasa guba flour and biscuits factory in Wollo, Kombolcha. Descriptive and explanatory research designs were adopted. The study employed a mixed approach. The questionnaires were distributed to 200 employees, and 182 were returned. Data analysis was done with the help of Stata 13 statistical software. Descriptive statistics were employed to determine the type of rewards and level of employees’ job performance. Both Pearson’s correlation and multiple linear regression analyses were used to examine the relationship between rewards and employee performance. Results of the descriptive statistics in terms of mean and standard deviation show that the reward of the employee in benefits and personal development and career opportunities in the samples are relatively good. Mean value for employee performance is (M=2.32, SD= 0.73) which shows the overall performance of Rasa guba flour and biscuits factory employees. Regards to Pearson correlation, the result revealed significant positive linear relationships between each variables and employee performance (p < 0.01). Based on the result of multiple linear regression variables like compensation, benefit, performance management and recognition and personal development and career opportunities have positive and significance effect on employee’s job performance. Meanwhile, the relation between rewards and employee job performance exist positively and significantly, the management and owner of the company should clearly state up-to-date reward policy by involving some employees in the process of developing it in order to increase the employee’s performance and to achieve its own goal.