ASSESSMENT OF REWARD MANAGEMENT PRACTICE AND ITS EFFECTS ON

THE EMPLOYEES’ SATISFACTION AND JOB PERFORMANCE.THE CASE

OFADMINISTRATIVE STAFF OF ARBAMINCH UNIVERSITY

RESEARCH THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT IN

PARTIAL FULFILLMENT OF THE MBA DEGREE

BY-AMARE CHELE CHETO

OCTOBER, 2016
ARBA MINCH, ETHIOPIA
 Declaration
I hereby declare that this MA thesis is my original work and has not been presented for a degree in any
other university, and all sources of material used for this thesis have been duly acknowledged.

Name: _______________________________________________
Signature: ________________________________________
Date: __________________________________________
 SCHOOL OF GRADUATE STUDIES

ARBA MINCH UNIVERSITY

EXAMINERS’ THESIS APPROVAL SHEET

We, the undersigned, members of the Board of Examiners of the final open defense by Amare Chele
Cheto have read and evaluated his/her thesis entitled “Assessment of Reward Management
practice, Employees’ Satisfaction and job Performance. The case of administrative staff of
Arba Minch University”, and examined the candidate’s oral presentation. This is, therefore, to certify
that the thesis has been accepted in partial fulfillment of the requirements for the degree with minor
corrections.

_______________. ___________
Name of the Chairperson Signature Date
_______________. ___________
Name of Principal Advisor Signature Date
_______________. ___________
Name of Co-Advisor Signature Date
_______________. ___________
Name of External examiner Signature Date
_______________. ___________
SGS Approval Signature Date
 ACKNOWLEDGEMENT
Above all, I thank the living, almighty, ever-loving God for all what He has done and for giving
me this opportunity and strength to do this program successfully. For with God nothing shall be
impossible (Luke 1:37)

My deepest gratitude goes to my advisor Dr. Gemechu Numera for his kind support and
encouragement gave me strength right from the inception of the topic to the last minute of the
research. I appreciate his encouragement and without him, this thesis would not have been
completed to this standard. I could not forget his well-planned leadership and invaluable
scientific inputs on this thesis.

Next, I would like to express my sincere gratitude to my beloved wife Misrak Wogase, to her shouldering
the whole burden of my home and my children for their patience, especially my elder son Abenezer
Amare for his encouragement to overcome challenges when I was studying the program by self
sponsoring .

Finally, I owe thanks to all my heartily friends and relatives: Dr. Digafe Darza, Bereket Belete
and Tamirat Kassaye for the help and moral support you delivered.

Thank you all!

 LIST OF TABLES

TABLE PAGE

Table 1- Total Reward system and its benefits----------------------------------------------------15

Table 2:- 2008 E.C. Annual Budget of AMU, Sept. 2016---------------------------------------17

Table 3- Respondent’s characteristics by Sex, Age, Years of service, Academic

qualification and Working campus in Arba Minch University Sept 2016-----------43

Table 4- Existence of regulation to govern reward system in Arba Minch University,

Sept 2016------------------------------------------------------------------------------------44

Table 5 - Provision of advice about reward management by top or immediate

managers in Arba Minch University, Sept 2016---------------------------------------45

Table 6- Pre and Post reward discussion in Arba Minch University , Sept 2016--------------46

Table 7- Managers’ general perception about reward management in Arba

Minch University, Sept 2016-------------------------------------------------------------47

Table 8- Managers’ authority to reward employees under him/her in

Arba Minch University, Sept 2016------------------------------------------------------48
Table 9- Frequency of employee Reward in Arba Minch University,

Sept 2016------------------------------------------------------------------------------------49

Table 10- Accuracy of employee Reward in Arba Minch University, Sept 2016-------------50

Table 11- Fairness of the reward system in Arba Minch University, Sept 2016---------------51

Table 12- Rate of reward system in Arba Minch University Sept 2016-------------------------52

Table 13:- Mean scores and coefficient of Rewards (Motivation) in AMU, sept.2016---53

Table 14- Feeling of organizational pay and level of motivation in Arba Minch

University, Sept 2016-------------------------------------------------------------------------53

Table 15- Responses on impact of reward practice of AMU on employees’ satisfaction

in Arba Minch University August 2016----------------------------------------------------------------54

Table 16:- Mean scores and coefficient of employees satisfaction in AMU, sept.2016-----54

Table17- Ability to perform their functions of respondents in Arba Minch University,

Sept 2016 ---------------------------------------------------------------------------------55

Table 18- Degree of Validity and Reliability of criteria for employee reward in

Arba Minch University, Sept 2016---------------------------------------------------------55

Table 19- Responses on the Relation of Performance evaluation criteria with job
descriptions of employees in Arba Minch University August 2016----------------56
Table 20- Frequency of employee performance evaluation in
Arba Minch University, Sept 2016-------------------------------------------------------56

Table 21- Impact of reward system of AMU on the organizations’ performance in

Arba Minch University, Sept 2016------------------------------------------------------56

Table 22:- Mean scores and coefficient of employees’ Performance in

AMU, sept.2016-----------------------------------------------------------------------------57

Table 23- Correlation between reward (motivation) and satisfaction of employees ----- 57

Table 24:- Correlation between reward (motivation) and performance of employees---58

 TABLE OF CONTENT

Contents Page
Certification---------------------------------------------------------------------------------------------------i

Declaration----------------------------------------------------------------------------------------------------ii

Acknowledgment---------------------------------------------------------------------------------------------iii

List of tables----------------------------------------------------------------------------------------------------iv

List of figures---------------------------------------------------------------------------------------------------vi

Abbreviations and acronyms---------------------------------------------------------------------------------vii

Abstract---------------------------------------------------------------------------------------------------------viii

CHAPTER ONE
1. INTRODUCTION-------------------------------------------------------------------------1
1.1.Background of the study------------------------------------------------------------------1
1.2.Statement of the problem -----------------------------------------------------------------3
1.3.Objectives of the study--------------------------------------------------------------------5
1.4.Scope of the study -------------------------------------------------------------------------5
1.5.Significance of the study------------------------------------------------------------------6
1.6.Limitation of the Study--------------------------------------------------------------------6

CHAPTER TWO
2. RELATED LITERATURS-------------------------------------------------------------------8

2.1 Introduction----------------------------------------------------------------------------------8

2.2 What is Reward Management? ------------------------------------------------------------8

2.3 Objectives of reward management---------------------------------------------------------9

2.4 Developing a High-Performance Culture------------------------------------------------10

2.5 Types of Reward management------------------------------------------------------------13

2.6 Effects of Reward Management on job performance of employees-----------------15

2.7 Challenges of Implementing Reward Management System (PMS) -----------------16

2.8 The Relationship between Rewarding and Performance------------------------------17

 CHAPTER THREE
3. STUDY AREA AND METHODOLOGY ----------------------------------------------21

3.1 Introduction ---------------------------------------------------------------------------------21

3.2. Description of the study area-------------------------------------------------------------21

3.3 Socio-economic Characteristics---------------------------------------------------------22

3.4 Research Design------------------------------------------------------------------------23

3.5 Sources of Data------------------------------------------------------------------------23

3.6 Data Collection Methods and Instruments ---------------------------------------24

3.7 Data Processing and Management--------------------------------------------------25

CHAPTER FOUR
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION--------------------27

4.1 Data Analysis and Interpretation-----------------------------------------------------------27

4.2 Effect of Reward system on Employee satisfaction and job performance-----------27

4.3 Relationship between Reward Management system and Performance ---------------28

4.4 Discussions-----------------------------------------------------------------------29
CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATIONS-------------------------56

5.1 Summary----------------------------------------------------------------------------------------56

5.2 Conclusions------------------------------------------------------------------------------------58

5.3 Recommendations----------------------------------------------------------------------------60

APPENDICES ------------------------------------------------------------------------------------62
 LIST OF FIGURES AND IllUSTRATIONS
FIGURES PAGE

Figure 1- The Conceptual Framework illustrating how Rewards affect the

satisfaction and Performance of employees------------------------------------21

Figure 2- Political map of the study area---------------------------------------------------34

Figure 3- Total Annual Rainfall and Temperature distribution--------------------------35
ABBREVIATION AND ACRONYMS

AMIT Arba Minch Inistitute of Technology

AMU Arba Minch University

AWTI Arba Minch Water Technology Institute

CSA Central Statics Authority

FCSM Federal Civil Service Minister

HR Human Resource

HRM Human Resource Management

SNNPR South Nations, Nationalities and Peoples

Abstract

This study recovers the reward management practice and its impact on the satisfaction of
administrative staff and performance of the university using administered questionnaire filled by
95 employees working in different campuses of the university, namely Main campus, Abaya,
Chamo, Nechsar, Kulfo campuses and central offices. An interview has been done with deans of
the mentioned campuses in order to crosscheck responses forwarded by the rest employees. An
analysis of these questionnaire responses was done with great attention. The final result of the
research indicates that there was no a remarkable practice of reward management system in the
university lead by officially recognized guide line than the current draft which is not
implemented. The administrative staff is highly dissatisfied following the poor treatment practice
and in case many eligible people leave the university continually. The performance of the
university has become decreasing in quality though the number of the employees and enrolling
students increases from time to time. Thus, the university has to give great attention to the
administrative staff in order to attract and retain competitive employees holding the required
knowledge and skill in order to attain to its envisioned goals and contribute to the development
of the country as well.

Key Words:-reward management, practice, AMU, satisfaction, performance

 CHAPTER ONE
1. Introduction
1.1 Background of the problem

Today’s reality in the global world is that people influence (put pressure on) important aspects of
organizational performance in a multitude of ways. People conceive and implement the
organizational strategy, while the mix of people and systems mostly determine an organization’s
capabilities. Competencies are required to execute the strategy, and these competencies are
primarily a function of the skills and knowledge of an organization’s human capital. Therefore, if
an organization is to treat its employees as its most important asset, it has to be knowledgeable
about what it is that motivates people to reach their full potential (Lawler, 2003). Baron (1983)
argues that there is a close relationship between rewards and job performance. He notes that if
successful performance does in fact lead to organizational rewards, such performance could be a
motivational factor for employees. Under such conditions, they can see that their efforts result in
rewards. Consequently, they may be motivated to exert higher levels of effort on the job.

The notion of rewarding employees for a job well done has been emerged since the 19th century
when piece work systems were first implemented (Schillre, 1996). As the intensity of the
industrial development become wider and wider, the demography of work force has become
heterogeneous and various types of organizational culture have developed. Employers began to
differentiate their employees using various types of evaluation techniques. According to Herriet
Kawesa Kirunda ,( 2004), merit based reward system has been used to motivate employees on
their work place. Employees are supported and evaluated according to pre determined merits of
performance evaluation. This technique has been implemented for long period. Through time, by
recognizing the subjectivity of the merit based evaluation system, organizations began to use
performance based evaluation technique to identify and reward their employees.

Theories like Victor Vroom’s expectancy theory, Herzberg’s two factor theory and the Lawler-
porter model declare about the power of reward and its consequences on the physiological
satisfaction and job performance. According to Victor Vroom’s, (1964), expectancy theory,
employees expect something from their immediate bosses or their organization in expense of
their better job performance. From the very beginning of his nature, human being is an emotional
creature requiring additional effort rather than its normal condition. According to Herzberg’s two
factor theory, motivation factors are the aspects of a job situation that can, when present, they
fulfill employee’s needs for physiological growth (Szilagy, 1981). The positive presence of
motivation factors lead to feeling of satisfaction of the employee. The trend of reward
management has shown growth from time to time following the complex nature of industries.
Most organizations recognized that reward can result positive outcome for the development of
their economical and social integration.
Zigon (1998) defines rewards as something that increases the frequency of an employee action.
This definition points to an obvious desired outcome of rewards and recognition: to improve
performance. Organizations comprise number of employees within their divisions who are
engaged on various kinds of jobs. Each employee performs and strives to accomplish selected
jobs on which he/she was engaged that support the achievement of the organization’s goals
depending on the resource capacity and favorability of the working environment of the
organization. Workers become more energetic when they are initiated positively according to
their performance. Organizations reward their employees for several purposes .The first purpose
is to increase the initiation of employees on their jobs they engaged. The second main purpose is
to increase the employee retention. The retention of key workers, especially top performing
workers make organizations to be more stable and consistent in their goal achievement.
According to Mobley, 1982, satisfaction and turnover have a strong relationship. Motivated
employees exert their effort to overcome challenges and become committed to their
organizational goal achievement rather than searching options out of their organization. The
Kind and type of reward provided for employees should be more consistent and fair with the
kind of job done .According to Allen and Helms (2002), reward systems have to be closely
aligned to organizational strategies. Patricia Zingheim and Jay Schuster (2012), in their volume
called ‘Breakthrough reward strategies to create great companies’ argue that pay is a powerful
communicator of values and directions. Employee reward(s) may, however, be differentiated
between: Extrinsic reward – in the form of salary, incentive pay and benefits serves the purpose
of directly recognizing the comparative value of organizational roles and the contribution
individuals may make in performing them, and intrinsic reward derived from work and
employment.

Most organizations drive standard measures upon which employees are rewarded. Such standard
measures enable these organizations to provide rewards on sustainable grounds fairly.
Employees differ in their choice of particular rewards and challenge their employers differently.
In order to overcome such challenges, organizations can use several techniques. According to
Szilagyi (1981), from reinforcement theory, managers can use techniques like:- Informing
employees what they can do to get a reward, administer rewards as close to the occurrence of the
behavior as possible, don’t reward all employees the same, failure to reward or punish can be a
reward.

Developed countries like USA, Germany, Japan, and others have better practice on HRM.
According to Nicholas Bloom, Christos Genakos, Raffaella Sadun, and John Van Reenen,
(2011), these countries implemented management theories properly by recognizing the
contribution of motivation on employee satisfaction and job performance improvement. As these
scholars described in their working Paper, in most developed countries, effective monitoring,
targets and incentives are associated with better performance. They set individual and
organizational goals with mutual discussion employees and employers and each employee
become aware of what is expected from to be rewarded.
In developing countries like Malaysia, India and Singapore a remarkable practices have been
recorded. According to Teh Boon Heng, (2012), Malaysia’s public and some private
organizations offer attractive rewards for their employees to motivate them. The type and method
of offering rewards vary from organization to organization, but the whole practice is being
governed by the HRM rule and regulations of the countries .In India, there is legally organized
and structured body that governs the implementation of HRM rules of the country. African
countries like Uganda, Kenya, other sub Saharan countries have made several attempt to practice
theories of reward management, their practice shows that there was a problem of changing
generally accepted HRM theories in to action. In Uganda for example, according to Harriet
Kawesa Kirunda (2004), there is a rule and regulation to guide employees of public
organizations in a way of encouraging them by using different techniques. But, there is problem
of applying reward management guidelines effectively. These problems are associated with lack
of experience, skill and knowledge of applying modern HRM rules.

In case of Ethiopia, organizations like Ethiopia Telecommunication Corporation, National Bank

of Ethiopia and Ethiopian Electric Power Corporation have better experience of implementing
reward management system. These organizations implement the system differently depending on
the labor law of the country. Ethiopia Telecommunication Corporation for example, motivates its
employees based on results of performance appraisal system (Yoseph Mulineh, 2015). The
organization appraises its employees by informing them at the beginning of the budget year and
uses various rewarding techniques. It provides financial incentives, living status improvement,
and other intrinsic and extrinsic motivators. Ethiopian National Bank and its branch Commercial
Bank operational, in its risk management program, implements appraises and reward strategy to
improve its organizational performance and sustain the retention of employees in the
organization. To do this, the organization provides financial incentives, house, living status
improvement, and other incentives (Bank Supervision Directorate Report, December 2009). The
Ethiopian Electric power corporation also provides a special short time and long time training
and employee development opportunities for its employees based on results of performance
appraisal. In order to achieve this goal, the corporation organized a structure that support and
supervise the overall performance of its employees throughout the year (Desalegn Amlaku,
2010).

1.2 Statement of the problem

Reward management is simply defined as the combined actions an employer may take to specify
at what levels employee reward will be offered, based on what criteria and data, how the offer
will be regulated over time, and how both the intended links between organizational goals and
values should be understood and acted on by the parties to the employment relationship
(Pfeiffer’s, 1998).

Job satisfaction is “how people feel about their jobs and different aspects of their jobs. It is the
extent to which people like or dislike their jobs” (Spector, 1997). It is pleasurable or positive
emotional state resulting from the appraisal of one’s job or job experiences (Locke, 1976). It is
typically measured in degrees and can be examined from multiple viewpoints using multiple
constructs or categories. For instance, one can be satisfied with certain elements of a job, feel
neutral about some, and be dissatisfied with others.

Employee performance is critical for the success of organizations and the quality of
services provided by organizations to their clients. Employee performance has become one of the
significant indicators in determining organizational performance and success (Wall, Michie
Patterson, 2004).

Many Ethiopians are working in public sectors starting from the lower to higher hierarchies of
governmental structures .Each sector governs its employees according to its internal rule of the
organization and country wide policies. But, it is obvious that workers leave their former
organization and move to others to search change on their benefit, better working environment,
and others. Education sector is one of the main sectors that comprise thousands of employees
working in various professional and technical positions. So many employees leave the sector due
to different cases and others come in.

Human resources are very important elements in achieving organizational goals and objectives.
Therefore, proper utilization of human resources needs to be the focus of any organization. To
achieve this, HR plans, polices, and procedures should be developed and implemented based on
organizational culture and contexts. It is also required to have a continuous assessment and
evaluation of actions so that corrective actions are made as per the approved plan.

Arba Minch University is one of the first generation universities found in Ethiopia established in
1979 E.C. The university has passed about three decades from its establishment as Institute of
water technology to know as university. The university has two divisions of job category, called
academic staff and administrative staff. As the university is an academic institute, the academic
staff is being treated effectively in provision of several facilities like houses with full furniture,
better allocation of recurrent budget for departments and part time payments, service facilitation
and the like compared to the administrative staff. When we see the treatment of the
administrative staff, there is no provision of the above listed facilities. More over the researcher
observed that numbers (at least ten a month) of notice letters are being boarded on the notice
boards to search employees who have left their jobs. This action implies that over the years, the
university has lost a large number of talented employees to other organizations due to several
problems. The university’s HR administrative and development directorate office has its own
annual plan which indicates the overall direction of universities HR plan. But the plan has the
following limitations.

-The methodology to prepare HR plan is not scientific, i.e.it is not based on practical research
and tangible evidences. Because, it doesn’t followed a human resource management forecasting
(projection) technique to predict the total HR. Rather it mainly uses managerial judgment
technique.

-The practice of HRM system indicates that there is no control and evaluation of HR program.

-As the 2008 E.C. HR administrative and development directorate office annual plan shows there
is no HR succession plan at all in the university. Moreover, it doesn’t show the mechanism how
to attract the required HR and how to retain.

The university has been implementing different change initiatives in the various aspects
of HRM functions. If we take performance evaluation as an example, its schemes are available in
the university. Since the University uses performance evaluation results as one of change
initiatives, it has not been implemented properly, because;

-The approaches applied in the university are mainly behavioral/ qualitative. It is for individual
employee’s performance evaluation. But, it doesn’t show the level of work unit and
organizational performances. Since it doesn’t show how much the individual employee
performed out of his/her duties which enable managers to identify better performer to reward.

-Attributes of the performance appraisal applied in the university do not indicate directly the
responsibilities of employees. All employees, middle and supervisory level managers are being
evaluated by the same type of criteria. This nature of performance evaluation hidden to not
outshine the performance of several employees and level of responsibility of some managers.

-None of these elements indicate how much they can lead to get reward from the university and
nobody administer them properly.

The aim of this research is therefore, to assess the practice of reward management,
employees satisfaction and job performance of AMU.

Research Questions

The study was guided by the following research questions:

1. Is there a continuous practice of reward management system in the university?

2. Is there satisfaction of employees in the university?

3. How is the performance of Employees?

1.3 Objectives of the study
1.3.1 General Objective: - Is to assess the reward management practices, satisfaction and
performance of administrative staff of AMU.

1.3.2 Specific Objectives

-To examine the practice of reward management practice, satisfaction and performance of AMU.

-To assess level of satisfaction and performance of administrative Employees

-To provide supportive recommendations regarding reward management practice, employees’

satisfaction and job performance of administrative staff.

1.4 Scope of the study

Geographically, this study covered all campuses of Arba Minch University where administrative
employees working in. Conceptually, though the case of reward management concerns the whole
employees of the university, this research has been concentrated on those employees who are
diploma and above holders. This group is selected because they are expected to have academic
excellence and sufficient information to express about the problem under study within
conceptual view of the researcher. According to 2008 E.C. second quarter statistical report of
AMU, there are 382 administrative staffs who have diploma and above certificates in the
university. Since, this number is too large to conduct on this research; the sample size has been
100(26.17 %) of respondents who participate in the study. It included campus deans, line
/supervisory/managers, office directors and other workers.

1.5 Significance of the study

Organizationally, the study will serve as a reference material for line managers and individuals
who are interested to carry out a comprehensive farther research on the topic around the university. It can
also be used by other organizations to design future staff reward system strategies. Conceptually, this
study will empirically verify the influence of the reward management systems on the performance of
administrative staffs. This will form a basis for subsequent research to explore other factors that could
affect administrative staff’s performance. The study would also help employers draw up proper reward
systems or mechanisms to increase on the employee’s performance. It would also help policy makers of
the university to come up with informed policies/decisions on how rewards should be awarded.

1.7 Limitation of the Study

1. As our university comprises many campuses and schools, my study was restricted only in campuses
and schools found in Arba Minch city, and employees found out of Arba Minch city were not included
due to time limitation.
 2. Sampling restriction are also another serious problem that underweight the researcher’s conclusions.
There are many employees to be included in this study. But, due to limitations of financial capacity of the
researcher, the research was covered only17% of the study group under scope.

CHAPTER TWO
2. RELATED LITERTURES
2.1 Introduction
This chapter reviews different literature of different scholars, about what they say on reward
management. The literature reviews reward systems and gives a brief discussion on the
theoretical framework of performance. This chapter also, highlights on the importance of
rewards on staff satisfaction and organizational performance to give the readers the study focus.

2.2 What is Reward Management?

Reward management deals with the strategies, policies and processes required to ensure that the
contribution of people to the organization is recognized by both financial and non-
financial means. It is about the design, implementation and maintenance of reward
systems (reward processes, practices and procedures), which aim to meet the needs of both the
organization and its stakeholders. The overall objective is to reward people fairly,
equitably and consistently in accordance with their value to the organization in order to
further the achievement of the organization’s strategic goals (Armstrong &Stephens, 2005).

Reward management is not just about pay and employee benefits. It is equally concerned with
non-financial rewards such as recognition, learning and development opportunities and increased
job responsibility. In educational organization, the administrative staff is considered as a
supportive wing that plays a crucial role for the achievement of academic goals. Basically, the
existence of well trained, qualified and knowledgeable administrative staff in a given educational
institute enables the institution to be more eligible for its customers and become stable center of
excellence. Most organizations use various types of techniques to attract and retain skillful and
well performing employees in their organizations.

2.3 Objectives of reward management

Different researchers suggest different kinds of reward management objectives. Edward

E.Lawler III (1993) suggests six types of reward management objectives. These include

Attraction and Retention- Refers to an ability of organizations to receive the required job
applicants and influence to continue. Research on job choice, career choice and turnover clearly
shows that the kind and level of rewards an organization offers influences who is attracted to
work for an organization and who will continue to work for it(Lawler, 1973). According to
Gerhart and Milkovich (1992), those organizations which give the most rewards tend to attract
and retain the most people and high reward levels lead to high satisfaction, which in turn leads to
lower turnover.

Motivation of Performance- According to Gerhart and Milkovich,( 1992), whenever a special

conditions exist in a given work place, there will be likely motivation of performance.. People
have their own needs and views to lead their lives. They use these views to choose those
behaviors that lead to satisfy their needs.

Skills and Knowledge-rewards can be provided in the form of training and development. Man
power is one of the main resources of any organization. Their ability and power must be
increased from time to time. This technique contributes dual advantages. On one side it creates a
computational power for the employee, and on the other hand it increases the performance of the
organization.

Culture- Organizations have their own working cultures. Some cultures have power to promote
the organizational performance by enhancing creativity, innovation, competence, participatory
approach, depending on the management styles of the organization. On the other hand some
organizational cultures cannot reflect such changing instruments. Reward systems have an ability
to shape such cultures because of their important influence on communication, motivation,
satisfaction, and membership.

Cost-Reward systems have positive implication on reducing cost of an organization. Since, if

absent seem and turnover of employees increased, the cost of power, time, and money to hire or
fire new employees increases proportionally.

Reinforce and Define Structure- Structure redefinition promotes organizational performance

with due attention and purposeful treatment.

According to Armstrong & Stephens,(2005) said that the aims of reward management are
to: reward people according to the value they create, align reward practices with business goals
and with employee values and needs, reward the right things to convey the right message about
what is important in terms of behaviors and outcomes, help to attract and retain the
high-quality people the organization needs, motivate people and obtain their engagement
and commitment and develop a high-performance culture. From my personal observation from
the above aim of reward most of them are not applicable on the company.

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. The
philosophy of reward management recognizes that it must be strategic in the sense that it
addresses longer time issues relating to how people should be valued for what they do and what
they achieve (Armstrong,2007) .Literatures refer that poor job performance has been linked to
poor motivation practices of employers. In order to improve and maximize products and
productivity of their employees, organizations have to revise their Human Resource Management
techniques continually.

2.3.1 Distributive Justice

As defined by Leventhal, (1980) distributive justice refers to how rewards are provided
to people. They will feel that they have been treated justly if they believe that the
rewards have been distributed in accordance with the value of their contribution, that they
receive what was promised to them and that they get what they need. According to Armstrong,
(2007), the aims of reward management include ‘rewarding people according to the value they
create; align reward practices with business goals and with employee values and needs;
rewarding the right things to convey the right message about what is important in terms of
behaviors and outcomes; help to attract and retain the high-quality people the organization needs;
motivate people and obtain their engagement and commitment; develop a high-performance
culture. Distributive justice perceptions are those related to the felt-fairness of locative decision-
making outcomes (as opposed to decisional processes). Clearly, reward outcomes are especially
pertinent to distributive felt-fairness and, in particular, to feelings of reward injustice and
dissatisfaction.

2.3.2 Procedural Justice

Procedural justice refers to the ways in which managerial decisions are made and reward policies
are put into practice. There is nothing to indicate that either assessors or assesses have received
prior training in system content, nor that system purpose has been communicated to stakeholders
in advance. The type and amount of reward provided in any system should keep the procedural
framework of the organization to bring the intended outcome. In every organization procedural
justice can be affected by several factors. According Tyler and Bies, (1998) the five factors
that affect perceptions of procedural justice are:

1. The viewpoint of employees is given proper consideration.

2. Personal bias towards employees is suppressed.

3. The criteria for decisions are applied consistently to all employees.

4. Employees are provided with early feedback about the outcome of decisions.

5. Employees are provided with adequate explanations of why decisions have been made.
2.3.3 Fairness

A fair reward system is one that operates in accordance with the principles of distributive and
procedural justice. It also conforms to the ‘felt-fair’ principle formulated by Eliot, J. (1998). this
assumption states that, there should be fair payment for any level of work, and pay must match
the level of work and the capacity of the individual to do it and People should not receive less
pay than they deserve by comparison with their fellow workers.

2.3.4 Equity

John Stacey Adams,(1963), a workplace and behavioral psychologist, was developed the first equity
theory which asserts that employees seek to maintain equity between the inputs that they bring to a job
and the outcomes that they receive from it against the perceived inputs and outcomes of others. Equity
is a theory that attempts to explain relational satisfaction in terms of perceptions of fair/unfair
distributions of resources within interpersonal relationships.

2.3.5 Consistency

A consistent approach to reward management means that decisions on pay do not vary arbitrarily
without due cause between different people or at different times. Managers can use different
techniques to assert the consistency of reward management. According Armstrong .M and
Stephens .T, (2005), the approaches that can be adapted to achieving consistency are
forced distribution, ranking systems, training, calibration (peer reviews) and monitoring.

2.3.6 Transparency

Transparency can be defined as the perceived quality of intentionally shared information from a
sender or source of the information. It requires being clear and free from any ambiguity. The
reward management systems of any organization need to be open for its customers and
beneficiary.

2.4 Developing a High-Performance Culture

According to Armstrong & Stephens, (2005) Lloyds TSB has produced the following definition
of what they mean by a high-performance organization:

-People know what’s expected of them – they are clear about their goals and
accountabilities.

-They have the skills and competencies to achieve their goals.

- High performance is recognized and rewarded accordingly.

-People feel that their job is worth doing, and that there’s a strong fit between the job and
their capabilities.
2.5 Types of Reward management
Different organizations use different types of reward management systems. Total reward is one
type of reward management systems widely used. It is a term that describes a reward strategy
bringing together all the investments an organization makes in its workforce (e.g. pay, pensions
and learning and development), with everything employees value in working for an organization,
such as flexible working and career opportunities ( Arran Caza, 2015-HRM Journal). Total
reward approach, emphasizes the importance of considering all aspects of reward as a
coherent whole that is linked to other HR initiatives designed to achieve the motivation,
commitment, engagement and development of employees. This requires the integration of
reward strategies with other HRM strategies, including talent management and human
resource development. The aim of total reward management system is to give all employees a
voice and choice on the total reward offerings, and enhance the psychological contract between
employer and employee.

Table 1- Total Reward system and its benefits

•Values
•Learning and Development
•Quality of work
•Growth opportunity
Engagement •Contribution •Work‐life balance Total Reward
•Recognition •Career breaks
•Job Sharing scheme •Long service awards
•Holidays •Loans
•Professional subs •Pension
•Cycle to work scheme
Benefits •Childcare vouchers Engagement
•Health Care •Maternity leave Total remuneration

Base Pay Basic salary Total cash

Source:- LGE Local Governments Employers Foxit reader (Total reward – How to get started)

The total reward management system describes a range of monetary and non monetary reward
which can help the management body how to promote and reward their employees by putting
total packages of information about the employee which can be applied for a long time. In order
to benefit from this technique, employees have to draw corporate objectives with their
organization and try to achieve these goals.

The second type of reward management technique is the provision of intrinsic or/and extrinsic
rewards to motivate employees. According to Herzberg (1968‘s) two factor theory (motivation
factors and hygiene factors), motivation factors are considered as intrinsic motivators that
employees need for their psychological growth. (Silver, 1983).As the theory describes, the
positive presence of intrinsic motivators leads to feelings of satisfaction of the employees. On the
other hand, when they are absent, inadequate, or negative, they don’t generally bring about
feelings of dissatisfaction. This factor includes achievement, recognition, work itself,
responsibility, advancement, and possibility of growth.

On the other hand extrinsic motivation which was considered as hygiene factor, where the
absence, insufficient or negative in work condition, these elements bring about feeling of
dissatisfaction, but when present, they don’t usually bring about feeling of
satisfaction(silver,1983). These factors include organizational policy and administration,
technical supervision, salary, interpersonal relationship with supervisors, peers, working
conditions status, job security, and effects on personal life.

The other type of reward management technique which can be used by employers is job
enrichment technique. It refers to provision of additional autonomy, responsibility, achievement
and challenges to the employee (Szilagyi, 1981). According to Littlfield et. al.(1978), goals of
job enrichment include:- increasing overall performance, employee motivation, commitment, and
job satisfaction, reducing employee turnover, absenteeism, and complaints, and facilitating the
introduction of new equipment or methods. According to Herzberg (1968), principles of job
enrichment includes: - Increasing job demands, accountability, providing work scheduling
freedom, providing feedback, and new learning experience. Managers of a given organization,
have to identify the type of reward management technique which can motivate their employees.

The type of motivational reward that an organization uses should fulfill several requirements to
bring the required satisfaction around employees during implementation. Szilagyi, (1981)
provides tips which organizations should to apply before/during reward management sessions.
These tips include:- Informing employees what they can do to get rewards, administering
rewards as close to the occurrence of the behavior as possible, ignoring to reward all employees
the same, punishing unwanted behaviors, informing employees when they don’t get it right, and
administering punishments intelligently.

2.6 Effects of Reward Management on job performance of employees

Reward management practices can result positive or negative effects both on the employee
satisfaction and goal achievement of a given organization (Wim Van der Stade, 2009). The
strength, type and horizon of incentives can be taken as main factors for this idea. Strong
incentives which are matching with the action performed by the employee would be fine if we
measure and reward the performance of employees perfectly. On the other hand weak incentives
couldn’t have power to bring the required satisfaction. The type of reward on the other hand can
result the same effect on the moral of the employees. According to the Technical articles in
student Account foxite Reader, rewards have to support the goals of the organization by aligning
the goals of employees with these, to ensure that the organization is able to recruit and retain
sufficient number of employees with the right skills, to align the risk preferences of managers
and employees with those of the organization, to comply with legal regulations, to be ethical, to
be affordable and easy to administer.

According to Tyler and Bies (2009), before rewarding employees, the following points have be
considered: The viewpoint of employees have to be given proper consideration, Personal bias
towards employees should be suppressed, the criteria for decisions have to be applied
consistently to all employees, employees have to provided with early feedback about the outcome of
decisions, employees have to be provided with adequate explanations of why decisions have been made.

Unsatisfied employees can’t be effective in their performance. Poor job performance, absenteeism, and
turnover can be implication of dissatisfaction in work place. Research has shown that absenteeism and
satisfaction are related, although the relationship is not as strong as the one between satisfaction and
turnover (Mobley, 1982). When the workplace is pleasant and satisfying, individuals come to work
regularly; when it isn't, they don't. According to Michael Armstrong, 2007 the effectiveness of reward
management depends upon the following fundamental points.

2.6.1 Equity:- is achieved when people are rewarded appropriately in relation to others within the
organization. Equitable reward processes ensure that relativities between jobs are measured as objectively
as possible and that equal pay is provided for work of equal value.

2.6.2 Consistency: - A consistent approach to reward management means that decisions on pay do not
vary arbitrarily – without due cause – between different people or at different times. They do not deviate
irrationally from what would generally be regarded as fair and equitable.

2.6.3 Transparency:- exists when people understand how reward processes function and how they
are affected by them. The reasons for pay decisions are explained at the time they are made. Employees
have a voice in the development of reward policies and practices.

2.6.4 Strategic alignment:- The strategic alignment of reward practices ensures that reward initiatives
are planned by reference to the requirements of the business strategy and are designed to support the
achievement of business goals.

2.6.5 Contextual and culture fit:- The design of reward processes should be governed by the
context (the characteristics of the organization, its business strategy and the type of employees) and the
organization’s culture (its values and behavioral norms). Account should be taken of good practice
elsewhere, but this should not be regarded as best practice, ie universally applicable. Best fit is more
important than best practice.

2.6.6 Fit for purpose:- The formulation of reward strategy and the design of the reward system should be
based on an understanding of the objectives of reward management and should be developed to achieve
that purpose.

2.7 Challenges of Implementing Reward Management System (PMS)

Implementation of the reward management system is challenges which developing countries are facing
due to the fact that key stakeholders are not fully consulted, leading to resistance towards the system
caused by fear of the unknown and mistrust towards it. Phiri (1998) has warned that an effective system
of reward management is not easy to implement, and that it often impacts negatively on motivational
levels of educators, especially in the developing countries context. The perception in these cases is
that reward management is first and foremost a management tool aimed at stricter supervision.
Different authors have raised various causes of reward management implementation failure as De Waal
(2007) highlights lack of rewards for good performance, low political commitment by top
officials, absence of training, cultural issues, international weaknesses, highly bureaucratic management
systems; organization interference, and lack of expertise to design sophisticated reward
management systems (Mandonca & Kanongo, 1996). Walwy (2008) argues that performance
management of higher education institutions (HEIs) is a controversial and complex undertaking
for a number of reasons, including the difficult environment within which these institutions operate, the
long time periods over which their impact must be measured and the multiplicity of their objectives.

2.8 The Relationship between Rewarding and Performance

Rewarding is essential as an incentive and an unbreakable motivator to realize the organizational

performance. Grant (2008) established a study where motivation enforced the employee outcomes such as
persistence, productivity and performance. Besides, motivated employees are found to be more self driven
and more autonomy-oriented than those who are less motivated (e.g. Ryan and Deci, 2000; Thomas,
2002, as cited in Grant, 2008), which suggests that they will take more responsibility when offered
developmental opportunities. Motivated employees are also more engaged and involved with their jobs
(e.g. Guay et al., 2000; Vansteenkiste et al., 2007), they may be more involved in the work of their
colleagues, when compared with employees with low motivation.

Reward management system is a core function of human resource discipline and is a strategic partner with
company managements. Besides, it has an important role on employee performance.

Barber and Bretz (2000) mentioned that reward management systems have major impact on organizations
capability to catch, retain and motivate high potential employees and as a result getting the high levels of
performance. On the other hand, it is crucial to invest in employee development for enhancing the skills
and abilities of employees and organization. Furthermore, social exchange theory shows that employees
behave in positive ways when the organizations invest to them. Organizational inducements are the
factors for the motivation of the employees and pro socially motivated employees make a great effort to
benefit the organization.

According to Steers and Porter (1987), work motivation is a factor that sustains and manages employee
behavior. In another study, Porter and Miles (1974), put some theories about motivation and they gathered
into three categories which are job (e.g., degree of autonomy), individual (e.g., need for achievement) and
work environment characteristics (e.g., rewards). Bishop (1987), on the other hand has studied about
employee performance and found that recognition and reward of employee performance leads to
differentiation between the productivity of the employees.

Rewards can be extrinsic or intrinsic, extrinsic rewards are tangible rewards and these rewards are
external to the job or task performed by the employee. External rewards can be in terms of salary/pay,
incentives, bonuses, promotions, job security, etc. Intrinsic rewards are intangible rewards or
psychological rewards like appreciation, meeting the new challenges, positive and caring attitude from
employer, and job rotation after attaining the goal. Frey (1997) argues that once pay exceeds a subsistence
level, intrinsic factors are stronger motivators, and staff motivation requires intrinsic rewards such as
satisfaction at doing a good job and a sense of doing something worthwhile.

According to Payam Gohari, Akram Ahmadloo, Majid Bakhtiari Boroujeni and, Seyed Jafar Hosseinipour
(2013), insight into the reward practice clarity depends on two factors: complexity and communication.
In other words, the requirement for a clear reward system includes having an obvious communication of
the offer and concentration on the rewards as well as the concerns about comprehending the
methodologies, targets, and measures applied while introducing rewards. In this case, the employees need
to know the relationship between the firm’s goals, their supply, and the way they are rewarded; and
ambiguity in this regard will decrease the motivation rewarding value (Gibbons, 1998).

2.9 The Conceptual Framework

Independent Variable Dependent Variables

SATISFACTION

-Work content -
Payment

-Promotion -
Recognition

-Working condition

-Benefit

REWARD

Salary
Medical

Bonus

Accommodation

Extrinsic
 PERFORMANCE

• Punctuality

• Commitment

• Employee turnover

Motivation

Responsibilities

Team planning

Development
program

Achievement

Intrinsic

Figure 1- The Conceptual Framework illustrating how Rewards affect the satisfaction and
Performance of employees

Figure 1 illustrates that how much the Independent Variable, i.e. reward influences Dependent
Variables which are employees’ satisfaction and performance. Independent variable (reward) is
classified as extrinsic (external) and Intrinsic (Internal). It indicates that when Extrinsic( Salary
medical, Bonus, accommodation )and Intrinsic (responsibility, team planning, development
program, achievement) types of rewards which are considered as motivators are offered, there
will be increased level of satisfaction. Satisfaction by itself has its own influence on performance
of employees. When employees become satisfied on the contents of satisfaction (work content,
payment, promotion, recognition, working condition, benefits),the become to scarify their
commitment, punctual in their work time and employee turnover becomes decreased.

CHAPTER THREE
3. STUDY AREA AND METHODOLOGY
3.1 Introduction
This chapter described the frame work within which the research has been conducted. The
chapter presented general description about the study area, the research design, study population,
sample size and sampling techniques, data collection instruments, validity and reliability of
research instruments, procedure and data analysis.

3.2. Description of the study area

3.2.1. Location:
Arba Minch University is located in the central part of Arba Minch town, the capital of Gamo
Gofa zone. It is one of the greatest public institutions found in the town. Arba Minch received its
name for the abundant local fourteen springs found at the southern part of the town which
produce a ground water forest from the base of natural bridge, locally called “YeEgzer Dildiy”
that separates the two rift valley lakes, Abya and Chamo. Arba Minch (Amharic: አርባ ምንጭ,
"forty springs") is a city and separate town administration in southern Ethiopia; the first common
name for this city was Ganta Garo. Arbaminch is located in the Gamo Gofa Zone of
the Southern Nations, Nationalities, and Peoples Region about 500 kilometers south of Addis
Ababa (the capital city of Ethiopia) and 275 km south west of Awassa, the capital of SNNPR.
Geographically, the town is located between Latitude: 6°01′59″ N and Longitude: 37°32′59″
E .at an elevation of 1285 meters above sea level. It is the largest town in Gamo Gofa Zone and
is surrounded by Arba Minch Zuria woreda. Arba Minch was founded in the early 1960s by then
Fitawrari Aemeroselasie Abebe and the city succeeded Chencha as the provincial capital
of Gamu-Gofa. The oral tradition has it that Fitawrari Aemiro Selassie Abebe had to fight with
prominent figures of Chencha (Aba Gaga) to move the capital from Chencha to Arba Minch.
One of the reasons for Aemiroselassie Abebe to move the provincial centre from Chencha to
Arba Minch was for travelers from Gidole to Chencha to take a break after a long, hot crossing
of the arid Rift Valley. Roads were built linking the new town to Soddo and making Arba Minch
only a day's journey by road to the capital, Addis Ababa.
Arba Minch consists of the uptown administrative centre of Shecha and 4 kilometers away the
downtown commercial and residential areas of Sikela, which are connected by a paved road. On
the eastern side of Sikela is the gate to Nechisar National Park, which covers the isthmus
between Lake Abaya to the north and Lake Chamo to the south. Buses and taxis connect the
uptown and downtown parts; both parts have schools. Kulfo River flows through the town, and
drains into Lake Chamo. Arba Minch is known as a source for fruit, including mango, banana,
orange, and is also known for its fish farms.

Fig.2 Political map of the study area

 Political map of Ethiopia

Political map of SNNPR Political map of Gamo Gofa Zone (Arba Minch)

3.2.2 Climate

Arba Minch has one agro-ecological zone namely lowland (kola). The Climate condition of Arba
Minch is tropical and characterized by bi-modal rainfall pattern. The first occurs from March to
April while the second occurs from June to August. The highest monthly rainfall occurs in April
(65 mm). The average annual rainfall and temperature distribution for the study area is depicted
on the graphs below (Fig. 3.4). As can be seen from the graph, rainfall significantly increases in
the month march, while temperature remains the same. Rainfall was also significantly reduced
for the months June, July and August. But it was highly increased in September and October
while the temperature hasn’t shown significant difference. The maximum annual average
temperature of the area is 21.8 oc. Precipitation here averages 818 mm.
Figure 3 Total Annual Rainfall and Temperature distribution

Source:-Website

3.3 Socio-economic Characteristics

3.3.1. Population of the Area

Based on the 2007 Census conducted by the CSA, Arba Minch town has a total population of
74,879, of whom 39,208 are men and 35,671 women. The majority of the inhabitants
practiced Ethiopian Orthodox Christianity, with 56.04% of the population reporting that belief,
38.47% were Protestants, and 4.16% were Muslim. In the same year, around the town of Arba
Minch, in the Arba Minch District, there were 164,529 people, of whom 82,199 were male and
82,330 were female. In this district, 53.9% practiced Protestantism, 29.3% practiced Ethiopian
Orthodox Christianity, 12.6% practiced Traditional beliefs, and all other religious practices made
up 4.1%.
3.3.2 Basic Evidences of the Arbaminch University
3.3.2.1 Historical back Ground of the university
Arba Minch University is located at the foot of the Gamo Gofa mountain ranges facing the
Abaya Lake, forming part of the East African Rift Valley It was founded in the late 1980s.

With an objective to address water-related issues, the then Arba Minch Water Technology
Institute (AWTI) was established in September 1979 EC (1986). AWTI offered short and long-
term training; conducting research, and consultancy services in the water sector. Until 1993, the
institute was under the Water Resource Commission and was then transferred to the Ministry of
Education. In the wake of the nation’s development plan to produce qualified manpower, the
institute was scaled up to the level of university as Arba Minch University in 2004.
Arba Minch Water Technology Institute started its academic function in September 1986 by
accepting 181 students in two degree, two advanced diploma and two diploma programs.

The objectives were to provide theoretical and practical education designed to produce
manpower, to conduct basic and applied research to ensure the effective utilization of water
resources for the development of the country, and to conduct refresher courses for organizations
working in the field of water.

3.3.3 The current status of the university

3.3.3.1 Structure:-Arba Minch University is one of the first generation universities found in the
country. It was established as Water Technology Institute in1979 E. C. and grown to University
in1996 E.C. Currently, the University is structured in one Technology Institute, six colleges, four
schools, one newer campus(unidentified in department) and one academy.
Currently, the university provides its service focused on three main perspectives called teaching
learning, Research, Social service and Administrative staff as supportive part. Currently, there
are 43 departments providing 54 undergraduate programs and 42 postgraduate programs.
3.3.3.2. Population- According to 2008 E.C. the second quarter report of the university, There
are about 26,130 undergraduate and 1,795 post graduate totally 27,925 students and 1256
teachers in the university. Out of these, 114 are foreigners and the rest are Ethiopian teachers.
Regarding to the administrative staff, there are 1495 males and 1963 females totally 3458
employees working in various departments of the university.

3.3.3.3 Budget

Since the university is on the way of developing and empowering its internal and external
capacity year to year. It expands its faculties and opens different programs of first, second and
third degree continuously. Depending on its expansion, the amount of Yearly budget has being
growing time to time. By 2008 E.C. the University has got 513,749,600.00 birr recurrent and
710,809,700.00 birr capital totally, 1,224,559,300.00 birr budget. The total budget was divided
for the main program perspectives (Teaching learning, Research, Social service and
Administration) as follows.

Table 2; - 2008 E.C. Annual Budget of AMU

Budget allocated
R.N. Program Recurrent Budget Capital Budget
Birr Cents Birr cents
1 Teaching-Learning 10,431,100 00 538,867,300 00
2 Research 10,148,200 00 20,400,000 00

3 Social Service 363,945,300 00 35,042,400 00

4 Administration 129,225,100 00 116,500,000 00
Total 513,749,600 00 710,809,700 00
 Grand Total 1,224,559,300.00
Source: - AMU 2008 E. C. Second Quarter Report

3.4 Research Design

The study used a cross-sectional survey design adopting mixed approaches (qualitative
methodology and quantitative) methods. According to Creswell et al. (2003), qualitative research
helps in getting an in-depth analysis of the problem under investigation and quantitative research
has been applied in order to describe current conditions or to investigate relationships, including
effects relationships. In addition, it helped in answering questions concerning the current state of
the subject under study.

3.5 Sources of Data

The study has been conducted by gathering data from both primary and secondary sources.
Secondary data sources, especially statically data about reward management practice has been
exhaustively used in order to cross check the reality of responses forwarded by self administered
questionnaires.

3.5.1 Study Population

The study population constituted mainly deans of all campuses, line managers, directors and
professional workers. This population was chosen because it has been assumed to have adequate
knowledge of the subject under investigation and the research variables under investigation.

3.5.2 Sampling Technique

Sampling technique is a technique used to select the required number of sample from the general
population. Data is gathered on a small part of the whole parent population or sampling frame
and used to inform what the whole picture is like. For that matter, a random sampling technique
has been used.

3.5.3 Sample Size and Sample Selection

As this study examines the effect reward management practices on work motivation and
performance in AMU, the administrative employees have been taken as sample population.
According to the university’s 2008 E.C. second quarter report, Arba Minch University has 3458
administrative staff employees who are working in all campuses and central bureaus. Out of
these total populations, this research was focused on those employees who are diploma holders
and above. This group is selected because they are expected to have academic excellence and
sufficient information to express about the problem under study. There are about 382
administrative employees in the university who have diploma and above certificates. Since, this
number is too large to conduct on this research; the sample size will be 100 respondents of which
5 college deans, 95 office directors, line managers and other employees. There are five main
colleges (campuses) in Arba Minch University. The census sampling technique has been used to
interview college deans in order to get in depth information and crosscheck the information
which has been getting from the administered questionnaire about the problem under study. A
random sampling technique has been used to select the other category which comprises a big
number. The amount of respondents was selected by using lottery sampling method. According
to Screw 2009, when total population between 100 to 1000, the sample size could be,

n=10%N+30. Based on this figure,

n=10 %( 582) +30 equal 100.

3.6 Data Collection Methods and Instruments

The research has used primary data which was collected using self-administered questionnaires
to get information from office directors and other employees because, this category includes
large number of respondents and guiding questions (interview guide) has been designed for
college deans because this group includes top executives of the university in each college and
helped to crosscheck the information gotten from the wider respondents.

3.6.1 Self- administered Questionnaire

This researcher used self- administered questionnaires for the respondents. These have been
distributed among the office directors and other employees. The justification for using this
instrument is that questionnaires are easy to quantify and analyze. In addition, the questionnaire
has been used because the study focused on opinions, attitudes, feelings and perceptions of
respondents. To avoid problem of low response rate the researcher went to all campuses
personally handed out the questionnaire by their superiors to the largest respondents. Out of 95
questionnaires handed, 95 were returned and the feedback rate is 100 percent.

The questionnaire used for this study is based on the Herzberg’s two-factor theory. Based on the
nature of questionnaires, variables were identified. The independent variable (reward) is divided
into two categories, extrinsic rewards external to the job and intrinsic rewards that are rewards
stem from the job itself. Meanwhile the dependent variables are satisfaction and performance as
shown below:

Independent Variable

(Reward)

Dependent Variables
 Satisfaction

Performance

The questionnaire had two sections. The first section is the demographic information about the
employees it includes gender, age, qualification, service and working campus in AMU and the
second section focuses on the dimensions of practices of reward management of Amu,
satisfaction and performance of administrative employees..

3.6.2 Interviews

An interview guide consisting of structured questions has been designed and administered to the
deans of colleges (campuses) to get qualitative data. Information obtained by this instrument was
helped the researcher to enhance responses from the self- administered questionnaires and make
it possible for the researcher to cross examine some key issues in the research. The choice of this
instrument was made because it is considered a good method for producing data which dealt with
the topic in depth. Interviewing is also a good method for producing data based on informants’
priorities, opinions and ideas. The informants may have the opportunities to expand their ideas,
explain their views and identify what they regard as the crucial factors.

3.7 Data Processing and Management

3.7.1 Qualitative Data

All the qualitative data collected from key informants has been edited on a continuous basis to
ensure completeness. Data collected with the use of questionnaire schedules has been put into
meaningful and clearly understandable categories. Content analysis has been the main method of
analyzing the data collected. Data collected has been categorized according to emerging
variables from each question in the interview guide and has been used as a supportive source of
information gained from self-administered questionnaires.

3.7.2 Quantitative Data

Data has been collected at the end of each day of distribution and checked to ensure regularity
and accuracy This has been useful in ensuring that the objectives of the study is being addressed.
Analysis has been done according to the objectives of the study; data generated by questionnaires
has been cleaned, edited and coded before analysis has been done. Summary statistics in form of
qualitative that measure feeling, attitudes, etc and quantitative measures, frequencies and
percentages has been run and interpretations have been made. Finally, conclusions and
recommendations have been derived.
 CHAPTER FOUR
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter presents findings, interpretation and analysis of information collected from
college deans, office directors and employees of Arba Minch university administrative staffs.
Ninety five (95) questionnaires were distributed to these respondents and all of them were
collected back and 5 college deans were interviewed to cross check the consistency of
information obtained from self administered questionnaires. In the study, 5 college deans and 95
employees were participated. In order to achieve the objective of the study and tackle the key
research questions the researcher has tried to conduct a detailed and technical investigations
related to the study matter.

4.1 Data Analysis and Interpretation

The analysis results in association with the interpretations are presented as follows.

• The response was obtained from the sample designed and distributed
purposely for 95 administrative employee respondents, all of them i.e. 95
(100%) appropriately filled and returned the questionnaire given to them. As a
result, a discussion is held on the responses. In addition, the information collected
from interview of five (5) college deans is also discussed. Secondary data sources
have been searched for discussion and recommendations.

Based on the response obtained, the characteristics of the respondents were examined in terms of
sex, age, years of experience, academic qualification and campus where they work.

Table 3- Respondent’s characteristics by Sex, Age, Years of service, Academic qualification and
Working campus in Arba Minch University April 2016

Item/Descriptions Frequency of Response and Percentage

No %

A. Sex:
a) Male 58 58
b) Female 42 42
Total 100 100
 B. Age:
a) 20 years and below - -
b) 21 - 30 years 11 11
c) 31 – 40 years 59 59
d) above 40 years 30 30
Total 100 100
C. Years of service :
a) 1 years and below - -
b) 1 – 5 years 13 13
c) 6 – 10 years 29 29
d) 11-15 years 36 36
e) More than 16 years 22 22
Total 100 100
D. Academic qualification
a) College Diploma 57 57
d) Degree 34 34
e) Second Degree and above 9 9
Total 100 100
E. Campus
a) Main campus 47 47
b) Abaya Campus 22 22
c) Chamo Campus 16 16
d) Nech sare Campus 10 10
e) Kulfo campus 5 5
Total 100 100

Source: - Survey Questionnaire and Researcher`s own computation

Based on the response obtained, as shown in Table 4, the characteristics of the respondents were
examined in terms of sex, age, years of experience , academic qualification and campus
where they work. Table 3, item A and B reveals sex and age distribution of the sample
population of respondents, respectively.

Respondents who accounted for 58 % were male respondents and the remaining 42% are female.
Regarding age, one can easily understand that the workforce population is largely dominated by
the age group below 40 years that is more than 70% comprising of the total. On the other hand
those above 41 years accounted for only 28.5%. This implies the university has youth
employees, if these employees get properly HR handling, it could be good asset for the
university. As indicated under item C of Table 3, the majority of the respondents 78
(78%) of employees have been working for over 1 years to 15 years ,while,22% of the
total of respondents have served for over 16 years. This high experience enables the researcher
to find out the right information about the reward management systems being functional within
the university. On the hand it indicates that how much the university possesses an accumulated
skill and knowledge which requires to changing it to real action. It is also possible to
generalize that such a relatively longer of service might have helped respondents to possess
rich experience and a better understanding about the various issues and problems of reward
management in Arba Minch university. Item D of the above table reveals that 57% employees
are diploma holders while the rest 43% are BA, MA degree and above. This implies the
academic qualification of most employees is high, so the company must work on how to utilize
the accumulated knowledge of employees. The above Table also reveales that the distribution of
respondents working campuse. The distribution was taken by computing the number of
employees working in each campuse including the center(directorate offices under president and
vice presidents). As it can be seen in the above table, highest number of employees found in
central offices followed by Main camus(AMIT) and Abaya campuses. The lowest number of
employees found in Kulfo campuse.

4.1.1 Analysis of Variables

i) Reward Management Practice (Motivation)

Table 4፡- Responses on the Existence of regulation to govern reward system in

Arba Minch University, sept. 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent

strongly
37 38.9 38.9 38.9
disagree

There is a 35 36.8 36.8 75.8

Disagree
regulation to
govern 12 12.6 12.6 88.4
Neutral
Motivational
Valid Agree 6 6.3 6.3 94.7
activities in the
strongly
university. 5 5.3 5.3 100.0
agree

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
95 2.02 1.120 .115
 Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-8.518 94 .000 -.979 -1.21 -.75
Source: - Survey Questionnaire and Researcher`s own computation

Table 4 reveals that perception of respondents regarding the existence of regulations (guidelines)
to govern reward management system of the university. As it can be observed, the current reward
management system of the university was felt negatively. Shown above are, therefore, the
number of responses and the total percentages computed as per the report given by the study
group. As shown in the Table, 72(75.7%) of respondents argue that there is no regulation to
govern the reward management system in the university. Since this research was aimed to assess
how much the university governs its reward management system based on rules and regulations,
the researcher tried to refer secondary sources to assert the responses forwarded by the
respondents. No tangible evidence has been found which assert the existence of governing rule to
manage the reward system of the university before 2007 E.C. But the university has formulated a
guiding manual at the end of 2007 E.C. which was still not implemented and that is why several
respondents have been confused to respond confidentially about the existence of regulation to
govern motivational activities in the university. As the data in the above table shows the
verification test also asserts the result. The sample mean (2.02) which is tested against the
standard value (3) and to verify the deviation statistically, there is significant difference between
the mean of the group and the standard (t= -8.518) which is less than the significance value
(0.05). That means the group has no understanding about the existence of regulation to manage
the reward system in the university (t= -8.518; p-value= 0.000).

Table 5- Responses on the Provision of advice about reward management by top or immediate

managers in Arba Minch University, Sept. 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
Management strongly
33 34.7 34.7 34.7
bodies often advise disagree
employees about
Disagree 40 42.1 42.1 76.8
their rewards.
Valid Neutral 7 7.4 7.4 84.2
Agree 3 3.2 3.2 87.4
 strongly
12 12.6 12.6 100.0
agree

95 100.0 100.0
Total

N Mean Std. Std. Error Mean

Deviation
95 2.17 1.294 .133

Test Value = 3
t df Sig. (1-tailed) Mean 95% Confidence Interval of the
Difference Difference
Lower Upper
-6.266 94 .000 -.832 -1.10 -.57
Source: - Survey questionnaire and Researcher`s own computation

Most result oriented organizations design their organizational goals, objectives and other critical
issues with due participation of workers and share those ideas to the whole member of their
organization. These activities lead them to achieve their common goals easily. In fact, employee
participation is regarded as essential for employee reward management as we can understand
from the table above. It has been when managers and employees would have common
understanding about what to achieve through evaluation that employees, cooperative
participation in the evaluation process can be encouraged. As shown in Table 5 above,
75.4% of respondents reported that there is no way for employees to participate in the
reward management process. As the researcher is a member of the university, he is on line with
the responses of the client respondents forwarded. Even the current guideline was formulated by
the higher management body of the university and the employees were not oriented about the
manual. As the data in the above table shows the sample mean (2.17) is tested against the
standard value (3) and to verify the deviation statistically, there is significant difference between
the mean of the group and the standard. This result shows that managers of AMU found in each
administrative hierarchy do not advice administrative employees about reward system of the
university (t=-6.266; p-value= 0.000).

Table 6- Responses on the Pre and Post reward discussion in Arba Minch University, August
2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
Do management of strongly
40 42.1 42.1 42.1
the University and disagree
employees hold pre
Disagree 30 31.6 31.6 73.7
and post-reward
meetings to discuss Neutral 8 8.4 8.4 82.1
employee’s reward Valid Agree 16 16.8 16.8 98.9
and its results? strongly
1 1.1 1.1 100.0
agree

95 100.0 100.0
Total

N Mean Std. Std. Error Mean

Deviation
95 2.03 1.134 .116

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-8.323 94 .000 -.968 -1.20 -.74
Source: - Survey questionnaire and Researcher`s own computation

With regard to the existence of pre and post reward meetings with the whole employees of the
university, as forwarded by 70(73.7%) respondents, they haven’t seen practical session of
meeting concerning reward system in the university rather than rewards provided for top students
at the end of the year during their graduations. As the data in the above table shows the sample
mean (2.03) is tested against the standard value (3) and to verify statistically, as it can be seen
there is statistically significant difference between the mean of the group and the standard. From
this result it is possible to conclude that there is no active participation of employees in the
formulation of reward criterion ((T=8.323; p-value= 0.000). This idea was supported by collage
deans during the interview session that the university had no practical concern on this program..

Table 7- Responses on the Managers’ general perception about reward management in Arba
Minch University August 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
strongly
17 17.9 17.9 17.9
disagree
Your
disagree 28 29.5 29.5 47.4
manager(Director)
Valid neutral 6 6.3 6.3 53.7
has clear
agree 28 29.5 29.5 83.2
understanding
strongly
about employee 16 16.8 16.8 100.0
agree
motivation
95 100.0 100.0
Total

N Mean Std. Deviation Std. Error Mean

95 2.98 1.414 .145

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of
tailed) Difference the Difference
Lower Upper
-.145 94 .885 -.021 -.31 .27
Source: - Survey questionnaire and Researcher`s own computation

Table 7 revels that how much managers of the university found in each hierarchy have an
understanding on the importance and its impact of reward management practice on both employee
satisfaction and organizational performance .

As shown on the above Table, the respondents forwarded that half of their managers 45(47.4%)
do not think about rewards to motivate their employees and the other half 44(46.3%) respondents
shown that their managers know the importance of reward, though they do not change these
knowledge in to action. The data in the above table shows the computation of the sample mean
(2.98) against the standard value (3) and the verification of its deviation from the mean. The t-
test indicates that there is no significant evidence to conclude that the managers have clear
understanding about employee motivation (t= -0.145; p-value= 0.885).

Table 8- Responses on the Managers’ authority to reward employees under him/her in Arba
Minch University August 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
strongly
41 43.2 43.2 43.2
disagree

24 25.3 25.3 68.4

Disagree
Your manager
Valid
(Director) has 12 12.6 12.6 81.1
Neutral
full authority to
motivate 15 15.8 15.8 96.8
Agree
employees
strongly
3 3.2 3.2 100.0
agree

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
95 2.11 1.216 .125

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of
tailed) Difference the Difference
Lower Upper
-7.173 94 .000 -.895 -1.14 -.65
Source: - Survey questionnaire and Researcher`s own computation
With regard to the authority of each manager to motivate employees under his/her work process,
as it can be seen from the above Table, 65(68.5%) of respondents supposed that their managers
do not have any authority to motivate employees under their hierarchy without the good will of
higher officials. As the data in table 16 shows the computation of sample mean (2.11) against the
standard value, and to verify the deviation statistically, as it can be seen, there is statistically
significant difference between the mean of the group and the standard. The t-test indicates that
the university hasn’t decentralized this authority to the lower hierarchies. On other words, it is
possible to say that lower hierarchies of the university do not regulate full authority according to
the concept of decentralized management system ((t= -7.173; p-value= 0.000).

Table 9- Response on the frequency of employee Reward in Arba Minch University August
2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent

My organization strongly
47 49.5 49.5 49.5
motivates its disagree
employees
regularly. 34 35.8 35.8 85.3
Disagree
Valid
7 7.4 7.4 92.6
Agree

7 7.4 7.4 100.0

strongly agree

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
95 1.87 1.205 .124

Test Value = 3
 t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-9.111 94 .000 -1.126 -1.37 -.88
Source: - Survey Questionnaire and Researcher`s own computation

The objectivity of employee performance data would be significantly influenced by the

frequency of employee reward management system. The theoretical background regarding
employee reward management confirms that the frequency of employee reward system
determines, among other things, the purpose underlying evaluation scheme. Moreover, it
has been indicated that employee reward and compensation is designed either for developmental
or administrative purpose. In light of this, employees asked to identify issues regarding
frequency of employee reward and compensation and it would be entertained next.
As indicated in the above Table, the majority of respondents 81 (85.3%) reported that
employees’ reward within the university take place irregularly and even some respondents who
have served more than 5 years in the university have responded that they haven’t seen any
reward sessions practically. The computation data also shows the sample mean ( 1.87 ) is tested
against the standard value ( 3 ) to verify the deviation statistically, as it can be seen , there is
significant difference between the mean of the group and the standard That means there is no
regular reward practice in the university (t= -9.111; p-value= 0.000). But a remarkable
motivation which is being provided for employees as indicated by the study group is the
provision of developmental option (chance to learn). Though, it takes place quota system with
decisions from the top management and there is no guide line to manage the motivation system
in the university, this chance is taken as positive implication by respondents.

Table 10:- Response on the accuracy of employee Reward in Arba Minch University August
2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
The motivation strongly
63 66.3 66.3 66.3
is provided on disagree
time Valid 32 33.7 33.7 100.0
 Disagree

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
95 1.34 .475 .049

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-34.117 94 .000 -1.663 -1.76 -1.57
Source: - Survey Questionnaire and Researcher`s own computation

Respondents also asked to express the provision of motivational rewards on time. As it can be
observed from the above table, almost all respondents responded that there was no provision of
rewards on time, because there is no rule and practice of rewarding employees regularly. As it is
mentioned in the literature, reward management systems should be consistent and decisions on
pay do not vary arbitrarily without due cause between different people or at different times. The
tested data also shows the sample mean (1.34) which is tested against the standard value verifies
the deviation statistically that there is significant difference between the mean of the group and
the standard) which is much more less than the significant value (0.05). The t= test indicates that
there is no timely provision of reward in the university (t=-34.117; p-value= 0.000).

Table 11- Responses on Fairness of the reward practice in Arba Minch University August 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
strongly
39 41.1 41.1 41.1
The reward disagree
provided Disagree 36 37.9 37.9 78.9
fairly. Neutral 6 6.3 6.3 85.3
Valid Agree 7 7.4 7.4 92.6
 strongly
7 7.4 7.4 100.0
agree
Total 95 100.0 100.0

N Mean Std. Std. Error

Deviation Mean
95 2.02 1.203 .123

Test Value = 3
t df Sig. (t- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-7.934 94 .000 -.979 -1.22 -.73
Source: - Survey Questionnaire and Researcher`s own computation

Table 11 revels that how much the reward practice of the university is fairly done based on
reasonable evidences among employees. As it can be simply observed from the table, 75 (79%)
respondents strongly argued the fairness of reward management practice of the university though
there was no consistent and a remarkable practice of reward system in the university. As it is
mentioned in the literature, a fair reward system is one that operates in accordance with the
principles of distributive and procedural justice. It also conforms to the ‘felt-fair’ assumption that
states, there should be fair payment for any level of work, and pay must match the level of work
and the capacity of the individual to do it and People should not receive less pay than they
deserve by comparison with their fellow workers. The tested result also assures the evidence
when the sample mean (2.02) was tested against the standard value and to verify the deviation
statistically, it can be seen that there is significant difference between the mean of the group and
the standard.) and is less than the significant value (0.05). The t- test indicates that there was lake
of fair distribution of rewards in the university, though there was no remarkable reward provision
(t=7.934; p-value= 0.000).

Table 12- Responses on rate of reward practice in Arba Minch University August 2016

Item/Descriptions Frequency Percent Valid Cumulative

Percent Percent
In general, how do
4 4.2 4.2 4.2
you rate the reward High
management practice Valid
13 13.7 13.7 17.9
of your organization? Moderate

78 82.1 82.1 100.0

Low

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
95 2.79 .503 .052

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval
tailed) Difference of the Difference
Lower Upper
-4.079 94 .000 -.211 -.31 -.11
Source: - Survey Questionnaire and Researcher`s own computation

This section of analysis considers the opinion or perceptions of respondents about the
overall system of employee reward management operating in AMU. It also involves the
recommendations that respondents would give on issues of “what should be done with
the current system of employee reward management” . In Table 12, 82.1% respondents shown
that the rate of current reward management practice of the university has become lower and
lower from time to time. As the data in the table 19 shows the sample mean (2.79) is tested
against the standard value and is to verify the deviation statistically, there is significant
difference between the mean of the group and the standard. That means the rate of reward
management practice of the university is becoming lower and lower (t= -4.079; p-value= 0.000).

Table 13:- Mean scores and coefficient of Rewards (Motivation) in AMU, sept.2016

One-Sample Statistics
N Mean Std. Deviation Std. Error
Mean
Reward(motivation) 95 19.3263 3.27610 .33612
One-Sample Test
Test Value = 3
t df Sig. (2- Mean 95% Confidence Interval of
tailed) Difference the Difference
Lower Upper
Reward
48.573 94 .000 16.32632 15.6589 16.9937
(motivation)
Source:- Survey Questionnaire and Researcher`s own computation

As it can be seen in the above table, the total mean score of Reward management practice
(motivation) is much higher than the midpoint (3). It indicates that employees of the university
are disagreeing regarding to the reward management practice of the university.

ii) Satisfaction
Table 14- Responses on the feeling of organizational pay and level of motivation in Arba Minch
University August 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent

I am happy in all strongly disagree 40 42.1 42.1 42.1

benefits I get Disagree 29 30.5 30.5 72.6
from the
university Valid Neutral 13 13.7 13.7 86.3
Agree 5 5.3 5.3 91.6
Strongly agree 8 8.4 8.4 100.0
Total 95 100.0 100.0

N Mean Std. Std. Error

Deviation Mean
95 2.07 1.240 .127

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of
 tailed) Difference the Difference
Lower Upper
-7.282 94 .000 -.926 -1.18 -.67
Source: - Survey Questionnaire and Researcher`s own computation

Table 14 shows the feeling of employees on their incomes they get from the university. For
them, five possible options of choices about their feeling were presented in the list. Thus, the
table shows the number of respondents and their percentage by comparing with provided options.

Reward management is about the design, implementation and maintenance of reward systems
(reward processes, practices and procedures), which aims to meet the needs of both the organization and
its stakeholders. Especially, employees have to be more motivated and satisfied to attain to the
organizational goals. As indicated in Table 15 above, most of the respondents were not interested on their
benefits they get from the university. 40(42.1%) were strongly disagree and 29(30.5) disagree on the
proposed question. The rest respondents (20) or 21.05 % were not identified their feelings and few
respondents were responded positively as they are happy in their benefits they get from the university. In
the above table, the T-test result also shows that the sample mean(2.07) is tested against the standard
value (3) and to the deviation statistically, there is a significant difference between the mean of the group
and the standard(t=-7.282, sig˂0.05). From this finding, it is possible to conclude that most employees
working in the university are not happy in their benefits they get currently (t= -7.282; p- value= 0.000)
and the university needs to design some mechanisms to maintain feelings of employees to become happy.

Table 15- Responses on impact of reward practice of AMU on employees’ satisfaction in Arba
Minch University August 2016

Item/Descriptions Frequency Percent Valid Cumulative

Percent Percent

10 10.5 10.5 10.5

Increasing
How is your
Valid
satisfaction in all of 78 82.1 82.1 92.6
Decreasing
organizational
No
circumstances of the 7 7.4 7.4 100.0
change
university?
95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
 95 1.97 .472 .048

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-21.914 94 .000 -1.011 -1.10 -.92
Source: - Survey Questionnaire and Researcher`s own computation

Table 15 shows the analysis considering the opinion or perceptions of respondents about
their satisfaction on the current reward management system operating in AMU. As it can be
seen from the table, majority of respondents 78(82.1%) responded that their satisfaction is being
decreasing with the current reward management system operating in AMU. As the data in the
table indicates the sample mean is tested against the standard value and to verify the deviation
statistically, as it can be seen, there is significant difference between the mean of the group and
the standard. The t=test indicates that the satisfaction of employees becoming lower and lower in
case of decreasing reward management practice of the university. (t= -21.914; p-value= 0.000).

Table 16:- Mean scores and coefficient of employees satisfaction in AMU, sept.2016

One-Sample Statistics
N Mean Std. Std. Error
Deviation Mean
satisfaction of
95 4.0632 1.32738 .13619
employees

One-Sample Test
Test Value = 3
t df Sig. (2- Mean 95% Confidence Interval of
tailed) Difference the Difference
Lower Upper
satisfaction of
7.807 94 .000 1.06316 .7928 1.3336
employees
Source:- Survey Questionnaire and Researcher`s own computation
As the evidence in the above table shows, the total mean score of satisfaction is higher than the
midpoint (3). It indicates that employees of the university are disagreeing on their satisfaction
regarding to the reward management practice of the university.

iii) Performance

Table 17:- Responses on the Ability to perform their functions of respondents in Arba Minch
University August 2016

Statements (items) Frequency Percent Valid Cumulative

Percent Percent
Neutral 8 8.4 8.4 8.4
I am performing my
Valid Agree 57 60.0 60.0 68.4
responsibilities
strongly agree 30 31.6 31.6 100.0
perfectly.
Total 95 100.0 100.0

N Mean Std. Deviation Std. Error

Mean
95 4.23 .592 .061

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the Difference
tailed) Difference Lower Upper
20.289 94 000 1.232 1.11 1.35
Source: - Survey Questionnaire and Researcher`s own computation

Respondents were asked to indicate how much they are performing their responsibilities
perfectly with their knowledge, almost all, 88(92.63%) respondents shown that they are
performing their jobs perfectly as they are assigned to do so. It would be, therefore, concluded
that, most of the university’s employees know the purpose of their organization and working
hardly as much as possible to achieve these goals. As the data in the one-sample statistics table
shows the sample mean (4.23) is tested against the standard value (3) and to verify the deviation
statistically, as it can be seen, the mean is also much greater than the test value. Inference using t-
test shows that the employees of the university believe that they perform their responsibilities perfectly
(t=20.289; p- value= 0.000).That means employees of the university are at the right stand to
perform their functions and the university has to encourage them to make it long lasting.

Table 18 - Responses on the Degree of Validity and Reliability of criteria for employee reward
in Arba Minch University August 2016

Validity of performance Evaluation criteria of employees

Item Frequency Percent Valid Cumulative
Percent Percent
strongly
There is 22 23.2 23.2 23.2
disagree
standardized
disagree 46 48.4 48.4 71.6
(valued) criterion
Valid neutral 10 10.5 10.5 82.1
(merit) to evaluate
agree 10 10.5 10.5 92.6
and identify the
strongly
performance of 7 7.4 7.4 100.0
agree
employees.
Total 95 100.0 100.0

N Mean Std. Std. Error Mean

Deviation
95 2.29 1.166 .120

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the Difference
tailed) Difference Lower Upper
-5.897 94 .000 -.705 -.94 -.47
Source: - Survey Questionnaire and Researcher`s own computation

Respondents were asked to indicate whether the performance evaluation manual contains
standardized (valued) criterion (merit) to evaluate and identify employees to be rewarded. As it
was shown in Table 18 most respondents were expressed their disagreements. 22(23.2%)
respondents strongly disagree with the validity of the criterion and the rest respondents,
46(48.4%) were disagree of the validity of the criterion. It is invalid for measuring an attributes
of employees and make variations in the attribute causally produce variation in the measurement
outcomes. Of course, the researcher has tried to evaluate the validity of employees performance
evaluation criteria (appendix-3) and has got it to be more subjective, i.e., more of its attributes are
dependable on the good will of the immediate boss of the employee and the performance evaluation
results is given by that boss. When more subjective criteria are used for employee, reward becomes less
valid for decision making and career guidance. Moreover the criteria are more concentrated on
functions of line managers and do not understand functions of the low level employees. Respondents are
more effective if measure of an employee’s reward in terms of how well specified job standards are met.
As the data in table 8 shows whenever the sample mean is tested against the standard value and to verify
the deviation statistically, as it can be seen, there is statistically significant difference between the mean of
the group and the standard and the performance evaluation criteria of the university lacks validity (t= -
5.897; p- value= 0.000) .

Table 19- Responses on the Relation of Performance evaluation criteria with job descriptions of
employees in Arba Minch University August 2016

Statements Frequency Percent Valid Cumulative

(items) Percent Percent
The performance strongly disagree 22 23.2 23.2 23.2
evaluation Disagree 49 51.6 51.6 74.7
criteria have Neutral 8 8.4 8.4 83.2
direct relation Valid Agree 11 11.6 11.6 94.7
with
strongly agree 5 5.3 5.3 100.0
responsibilities of
each employee. Total 95 100.0 100.0

N Mean Std. Std. Error Mean

Deviation
95 2.24 1.099 .113

Test Value = 3
t df Sig. (1-tailed) Mean 95% Confidence Interval of the
Difference Difference
Lower Upper
 -6.725 94 .000 -.758 -.98 -.53
Source: - Survey Questionnaire and Researcher`s own computation

Are Evaluation criteria used in AMU are job related? is one of evaluation questions provided for
these identified respondents. As revealed in Table 19, 71(74.8%) of the respondents reported
that the criteria being used are not job related. The criterion of the performance evaluation
as examined by the researcher, are more of circulating around the functions of line (Supervisory)
managers like planning, organizing and do not considered routine functions done at lower job
positions. If so, employees working at lower job positions do not have any chance to compete
and to get any reward from the university.

According to the interview conducted with HRM head of the university, the performance appraisal of the
organization employees is need to be conducted twice a year, at the end of December and June using
similar form of criteria for all administrative employees found in the university including managers of all
levels. Since the university is on the way of implementing the principle of “Result Oriented working
System”, the university has to prepare appropriate performance appraisal criteria for each employee
concerning his/her job performance. It could, therefore, be suggested that there are items in the
criteria, which are not directly related with jobs of each employee. As the data of the above figure
tested statistically by comparing the sample mean (2.24) against the standard value (3), statistically, the
deviation has shown that there is significant difference between the mean of the group and the standard.
That means the evaluation criteria of administrative employees of AMU lacks direct relation with jobs of
all employees (t= -6.725; p-value= 0.000) .

Table 20 - Response on the frequency of employee performance evaluation in Arba Minch

University August 2016

Statements (items) Frequency Percent Valid Cumulative

Percent Percent

Managers(Directors ) strongly disagree 30 31.6 31.6 31.6

evaluate each
employee’s Disagree 35 36.8 36.8 68.4
performance Neutral 10 10.5 10.5 78.9
regularly Valid Agree 10 10.5 10.5 89.5
strongly agree 10 10.5 10.5 100.0

95 100.0 100.0
Total

N Mean Std. Std. Error

Deviation Mean
 95 2.32 1.307 .134

Test Value = 3
t df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-5.103 94 .000 -.684 -.95 -.42
Source: - Survey Questionnaire and Researcher`s own computation

Table 21 shows how frequent managers evaluate job performances of employees regularly as decided by
the Federal Civil Service Minister (FCSM). The Federal Human Resource Management manual shows
that the performance of each employee should be evaluated twice a year regularly. Performance
evaluation is one of the main tools used in many organizations to identify hard working employees from
others, though it is more subjective and not valued. As it can be observed from the above table, 65(68.4%)
respondents opposed the idea, and the rest few agreed. As the researcher tried to assess the practical
implementation of the performance evaluation frequency of the university, he found that employees force
their managers when ever their performance evaluation results are required by the university’s HR
department for several purposes like up grading or whenever the employee leaves the university. As the
data in the above table shows when the sample mean (2.32) is computed against the standard value (3)
and verified the deviation, statistically there is significant difference between the mean of the group and
the standard .That means managers leading different hierarchies of the university do not evaluate the
performance of employees regularly (t= -5.103; p-value= 0.000).

Table 21- Responses on impact of reward management practice of AMU on the employees’
performance in Arba Minch University August 2016

Item/Descriptions Frequency Percent Valid Cumulative

Percent Percent

12 12.6 12.6 12.6

Increasing
In general, how do Valid
74 77.9 77.9 90.5
you evaluate the Decreasing
performance eof No
employees in the 9 9.5 9.5 100.0
change
university?

95 100.0 100.0
Total
 N Mean Std. Std. Error Mean
Deviation
95 1.97 .472 .048

Test Value = 3
t Df Sig. (1- Mean 95% Confidence Interval of the
tailed) Difference Difference
Lower Upper
-21.321 94 .000 -1.032 -1.13 -.94
Source: - Survey Questionnaire and Researcher`s own computation

The general purpose of any reward system that takes place in every organization is improving the
organization’s performance by motivating the work force of the organization. Human resource is
the main and unsubstitutable resource in the organization to improve and achieving goals by
performing the intended activity. As it was forwarded by client respondents in table 22 above, 74
(79%) respondents shown their belief that their current performance is being decreasing, though
the number of employees becomes increasing from time to time following the widening of
different departments and campuses. Especially, the respondents argue that the number of
graduate students is being increasing but, the quality of service provision and their quality are
being declining. The test result of the above data also shows as the sample mean (1.97) is tested
against the standard value (3), and to verify the deviation statistically, as it can be seen, there is
statistically significant difference between the mean of the group and the standard. The t= test
indicates that the current reward management system of the university has low contribution to
improve employees’ performance. (t= -21.321; p-value= 0.000).

Table 22:- Mean scores and coefficient of employees’ Performance in AMU, sept.2016

One-Sample Statistics
N Mean Std. Deviation Std. Error
Mean
performance 95 13.05 2.204 .226

One-Sample Test
Test Value = 3
T df Sig. (2-tailed) Mean 95% Confidence Interval of the
Difference Difference
 Lower Upper
Performance 44.450 94 .000 10.053 9.60 10.50
Source: - Survey Questionnaire and Researcher`s own computation

The total mean score of performance is much higher than the midpoint (3). It indicates that
employees of the university are strongly disagreeing on the perfectness of the university’s
performance.

4.3 Effect of Reward management practice, Employee satisfaction and job performance on
organizational goal achievement

The general purpose of any organization is improving organizational performance by

coordinating various resources like human, material and financial resources within the intended
period of time. Of the above mentioned, human resource is the soul of the organization that
utilizes the rest resources to achieve the planed goals. In order to achieve these goals, people
have to be treated with special mechanisms. Reward (motivation) is one of popularly used
mechanism to attract and retain the required labor force.

Several worldwide researches show that reward management systems have impact on
satisfaction and performance of employees. The presence or lack of motivational practices result
positive or negative consequences on the performance of the organization. Motivated employees
have more satisfaction on their jobs and perform well.

Reward systems are a human resource management function that deals with every type of
reward individuals receive in exchange for performing organizational tasks (Sims, 2002).
There appears to be a close relationship between employees’ overall satisfaction with their
jobs and their organization and their intention to stay or leave.

Job satisfaction can be defined as “how people feel about their jobs and different aspects of their
jobs. It is the extent to which people like or dislike their jobs” (Spector,1997,). It is any
combination of psychological, physiological and environmental circumstances that cause a
person truthfully to say I am satisfied with my job (Hoppock, 1935). It can be defined also as the
extent to which a worker is content with the rewards he or she gets out of his or her job,
particularly in terms of intrinsic motivation (Statt, 2004). Job satisfaction represents a
combination of positive or negative feelings that workers have towards their work.

Employees who experience job satisfaction are more likely to be productive, effective
performers and committed to the organization. Literatures has shown that increased job
satisfaction improves employees' organizational commitment, performance and creativeness,
and reduces absenteeism and turnover (Oshagbemi, 2010).

Satisfaction with reward system is one of the drivers of organizational commitment. For an
employee to be satisfied with his/her pay, a few basic elements need to be present. People have
to believe that the pay they earn is fair in relation to the work they do. They also must feel
that their compensation, including salary, incentives and benefits, compares favorably with the
realities of the market, especially in comparison to people doing the same work in similar
circumstances (Parker & Wright, 2001).Increasingly, organizations are realizing that in order to
build on employee’s job satisfaction, they have to establish an equitable balance between
the employee’s contribution to the organization and the organization’s contribution to the
employee. Establishing this balance is one of the main reasons to reward employees. This means
that employees cannot be satisfied with their jobs unless they are motivated by effective
reward systems (Pratheep kanth, 2011).

Many experts in management believe that there is a strong relationship between employee
performance and organizational goal achievement (Lawler, 2003). Employee performance is
critical for the success of organizations and the quality of services provided by organizations
to their clients. Employee performance has become one of the significant indicators in
determining organizational performance and success (Wall, Michie, Patterson, 2004). Employee
performance is influenced by a number of factors and these include reward systems, job
satisfaction and organizational commitment (Sims 2002).

4.4 Discussions

This study assessed the practice of reward management system, satisfaction and performance of
administrative employees of Arba Minch University. The findings of this research indicate that
the university does not reward its employees and has no remarkable practice of reward
management. For that matter, it has no regulation to govern reward management system in the
university and the concerning managers do not discuss about the importance of reward and how
they can get it. Moreover, though managers understand the importance of reward in the
organization, they don’t have authority to reward their employees serving under their position.
Rather, the university gives concern to reward students at the end of academic year during their
graduation time. With regard to satisfaction, employees’ do not satisfied with earnings they get
from the university. Though satisfaction of an individual depend on various attributes,
respondents shown that their satisfaction is becoming decrease and decrease from time to time.
This unexpected result may be caused by either ignoring issues rising by administrative
employees intentionally or lack of understanding. A remarkable number of turnovers of
administrative staff were recorded in the past years. For Example, in 2008E.C 91 full time
employees were left the university within nine months (averagely 10 people per month).(
appendix-4) This number includes only those employees who were cleared from the university
following the legal procedure, but evidences show that so many people leave the university with
in short time after hired in the university. But, There is no a recorded evidence in the university
whether those people left the university in case of lack of motivation or not. A reward
management system of an organization enables the organization to attract the right people for job
positions and to retain the required people by recognizing and rewarding for their contribution
and to motivate employees to contribute to the best of their capability (Ronald J. &Cary L.,
2005) in Gebremedhin Bahita.

Job satisfaction is related with many factors like personal and environmental (organizational)
political and others. But organizations have to assess the dominating factor of their management
systems to bring to the edges of their goals. Maslow, 1954 in his Need hierarchy developed the
relationship between human need and satisfaction. He suggested that the fulfillment of need in
one hierarchy dominates the satisfaction of human being. Another school of thought was
developed based on the two factor theory of job satisfaction (Herzberg, 1959) and suggested that
both satisfaction and dissatisfaction are two separate constructs. Intrinsic factors named
‘motivators’ (i.e factors which were inherent to the nature and experience of the job) were found
to be satisfactory and include recognition, achievement, the work nature and level of
responsibility. On the other hand, extrinsic factors named ‘hygiene factors’ were found to be job
dissatisfactory and include company rules, regulations, policies, hierarchy, supervision, salary,
work place environment and interpersonal relations. Herzberg and Mausemer’s motivation-
hygiene theory has been job satisfaction and has been predominant in the development of
measures for job satisfaction.

According to Michael Armstrong, 2005, the main aims of reward management are to align
reward practices with employee values and needs b0 motivate people and obtain their
engagement and commitment, and to develop a high- performance culture. The finding of this
research shows that the quality of performance of administration employees is being decreasing
though the number of employees becomes higher and higher time to time.

CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATIONS
This final chapter of the paper deals with the summary of the major findings of the study. Drown
from these major findings of the study, conclusions are presented, and recommendations which
the investigator assumes to be operational are also forwarded.

5.1 Summary
-Almost half 72(75.7%) respondents confirmed that there is no regulation to govern the
reward management system of the university. Others were become confused by hearing
the adoption of new reward management guideline which was still not implemented;

-No regular pre and post-reward conference was held in AMU according to the
responses of most respondents 73(76.8% );

-Client respondents forwarded that half of their managers 45(47.4%) do not think about
reward system to motivate their employees and the other half 44(46.3%) respondents
shown that their managers know the importance of reward, though they do not change
these knowledge in to action;

-Majority of respondents 81 (85.3%) reported that there is no regular employees’ reward

trend in the university, and even some respondents who have served more than 5 years in
the university have responded that they haven’t seen any reward sessions practically;

-As reported by a considerable many of respondents, 75(79%) respondents argued the

fairness of reward management system of the university though there was no consistent
and a remarkable practice of reward system in the university. And almost all respondents
reported that the is no decided time for reward provision;

-Responses from 69(72.5% respondents shown that they are not happy on their benefits
they get from the university;

-Majority respondents 78 (82.1%) rated their level of satisfaction in case of the general
conditions of the university was decreasing. Nevertheless, all of respondents perceived
the potential value of the system. But for it to function effectively, they recommended
necessary revisions to be made on it;

-Almost more than half of respondents 56(58.9%) perceived that the current performance
evaluation criteria of AMU are not valid and reliable as well as not job related as
70(73.7%) respondents forwarded;
 -Though, Performance evaluation is one of the main tools used in many organizations to
identify hard working employees from others, however it is much more subjective and
not valued, as 65(68.4%) respondents shown, there is no regular performance evaluation
trend in the university. It takes place whenever the performance evaluation results are
required by the university’s HR department for several purposes like up grading or
whenever the employee leaves the university. In this case most respondents replayed that
they do not have feeling of trust and confidence in the evaluation tasks of their
managers’ practice of bias and favoritism.

-According to the 74(77.9%) of the respondents, the organizational performance of the

university is being decreasing due to employees reward system the current poor reward
management system.

5.2 Conclusions
Respondents reported that there is no mutually recognized regulation to govern the reward
management system in the university, though the AMU management body endorsed a guiding
manual in 2007 E.C which is not implemented yet. In this regard, AMU would have to clarify the
newly adopted manual for the whole staff members and change it into action;

Pre- and post reward discussions were reported to be non-existent and employee reward is
inconsistent in the University. It would be, therefore, evident that the employees would have
been reluctant, or possibly resistant to cooperatively participate in subsequent processes of
appraisal scheme, and ultimately, would have been encouraged undervaluing the system
employee reward management. It was found out that there is no continuous practice and applying
different types of reward management system in the university. Six or seven years ago, the
university had began to recognize the contribution of several employees by certifying and
encouraging female employees to come to leading positions by organizing formal ceremonies.
But it was ignored for several years and began to rise by now. Even then, the university had no
formally recognized guide line which comprises principles of total management system and only
done by selection of several managers’ and decision of top management;

The perception of managers about reward management system to motivate employees under their
work process was reported half positive and half negative. Half of managers lack managerial
skills and even some of them are simply appointed by the top management body and have no
experience of management and academic specialization in management fields. In addition to that
they do not have right to reward or encourage employees without the goodwill of the top
management;

Awareness about vision, mission, and goal of the universities has reported positively that most
employees know the organization’s goals and perform their responsibilities perfectly. The
existence of goal oriented working force in the university shall create greater potential for the
university to achieve its goals and create a competitive citizen for the country. But most of these
respondents reported that they are not happy by benefits they get from the university. This case
may force employees to leave the university. According to the evidence found from the HRM
department of the university, 91 administration staff workers were left the university within 9
months. Thus, the university has to examine its payment strategy to retain its potential workforce

Most respondents have been to a great extent dissatisfied with the current general system
of the university. This system would have been, therefore regarded by employees as
having little contribution to improvement of employee competence. As a result, the
system would have failed to win acceptance and commitment of administrative employees,
which ultimately might have caused the malfunction of system. However, in spite of their
dissatisfaction with the current management system of the university, respondents
recommended the continuity of system’s operation but with necessary revisions to be
undertaken in which employees would meaningfully participate. Hence it would be possible
to conclude that employees would be cooperative and committed to the successful
operation of the management of the university if the purposes and criteria of the system, skill
and competence of managers, and the reward and compensation system were systematically
designed and operated in a way acceptable to them;

The university uses the performance evaluation results as a base for several functions like
competing for better job positions. But the criteria against which employees’ reward has
been measured were regarded to be considerably not adequate to generate accurate and
objective performance evidence. As a result, most respondents are not satisfied with
performance evaluation criteria under use. In this case, it would possible to conclude that
the criteria were perceived to be considerably not competent to generate objective performance
data. It is not job related and it should not be forgotten that employees should meaningfully
participate in the process of establishing criteria to win their acceptance. Moreover, most
employees do not have trust and confidence in their managers when they come to Performance
evaluation that leads to reward. This would probably be lack of the required knowledge and
skills in performance evaluation, data collection and analysis, and conferencing on the side
of managers. They might have heavily relied on their personnel impression in judging employee
performance, and this in turn, would have encouraged managers to maintain basis and favoritism
in employees. Above all, managers had no exposure to training and retraining programs. The
ultimate consequence would, therefore, have been employees’ mistrust and loss of
confidence in the competence of their managers and performance ratings for reward they
might have produced;

5.3 Recommendation
Though, the university has formulated a reward management guideline in 2007 E.C, most
of the administration staff members do not know its existence and have no any awareness
about its contents. The university has to aware each employee about the requirements of
reward system and what he/she has to do to become rewarded. This technique may
support the university to create a committed employee who is ready to align his
individual goal with the organizational goal. Moreover, the university has to participate
all its employees on goal setting sessions to bring the employee to the feeling of
ownership.

The current employee reward system should be conceived as an integral part of

organizational programs of AMU. Hence, managers must endeavor to make current
employee reward system schemes more systematic and carefully planned. The
systematization and planning of current employee reward system schemes begin at the
initial or preparatory steps in the evaluation process (pre-reward discussions). Since pre-
reward meetings help to bring employees and managers to gather to discuss the
purpose and criteria of the system of employee reward, and to decide on the
techniques, procedures, and approaches to be employed in the subsequent states of the
evaluation process they form the outset develop in the mutual understanding, and a
feeling of trust and confidence. Thus, managers should call for pre-reward
meetings periodically and consistently if employee reward systems were to succeed
through cooperation and commitment of employees and managers;

Some of managers found in several levels have no managerial skill and knowhow about
the essentiality of reward and its contribution for employee satisfaction and improvement
of organizational performance because; they have no management academic background
or experience. Thus, the university has to assess the performance of each level or work
process and causes for achievements and weaknesses and take corrective measures. The
Federal Civil Service merits were designed because employees assigned or hired in each
job positions have to match with the requirements of the position in order to perform the
job designed to do. However that the introduction of these methods in a scheme of reward
management need to be discussed and again acceptable from employees; Most important
and worth of recommendation to make scheme of reward management effective is
the need for providing designated managers with adequate training. Short and long-
term training and retraining programs need to be arranged for managers to acquire
adequate knowledge and skill in a various areas like data collection for reward
and analysis, conferencing and other relevant technique of reward management;
The university must formulate a strategy to utilize the potential of visionary employees
and support them using various techniques in order to achieve its goals. Since, employees
are not satisfied with the benefits they get from the university and it has to examine its
structure and the payment system of benefits;

Lack of commitment, dissatisfaction and turnover could result un required effect on the
overall performance of the university. Thus, the university has to design an alternative
mechanism to sustain high potential employees and increase the level of satisfaction and
commitment of the existing employees.

To contribute to the successful operation of scheme of reward management and to

secure valid and reliable data on employees’ performance, it must be ensured that the
evaluation scheme be undertaken as frequently as possible and to make reward
management scheme more objective acceptable to employees, and hence, helpful in
improving employees’ competence, multiple management approach in collecting
comprehensive employee performance data needs to be introduced. For instance,
peer, self-evaluation, and subordinate evaluation methods may provide additional
performance data. These methods would help to avoid evaluation by personnel
impression, and hence reduce to a greater extent personnel bias and favoritism in
evaluation;

Finally, the university has to value the contribution of administration staff for the
achievement of the academic goals, because this group plays a valuable role by carrying a
huge burden around them. Thus, it has to use a scientific method to increase the
satisfaction and performance of administrative employees. The university has to provide
wider opportunity of education and training, attractive payment, transfer and promotion
opportunities, housing and transport facilities for the administration staff.
 REFERENCES
-Alderfer, C.P.1969, an Empirical Test of a New Theory of Human Needs, USA

-Amin Karami, 2013, Analyzing the Effectiveness of Reward Management System on Employee
Performance through the Mediating Role of Employee Motivation Case Study: Isfahan Regional
Electric Company, Najafabad, Iran

-A UNDP capacity development resource, 2006, Incentive systems, incentives, motivation, and,
development performance, London

- Bahaudin G. Mujtaba, 2010, An Equitable Total Rewards Approach to Pay for Performance
Management, Nova Southeastern University, Pakistan

- Banathy, B.H.1968, Instructional Systems, California, USA

- Buckley, W.B.1967, Sociology and Modern Systems Theory , Harvard Business School,USA

- Cambell, R.F.1962, Introduction to Educational Administration, California, USA

- CIPD, Annual Survey Report 2007, Reward Management, UK

- Douglass, H.R.1963, Modern administration of Secondary School, Organizations and

Administration of Junior and Senior Schools , USA

- Edward e. lawler III 1993, Effective Reward Systems, Strategy, Diagnosis, Design, and
Change, Center for Effective Organizations Marshall School of Business, University of
Southern California

-Edward L. Deci, Richard Koestner, Richard M. Ryan 2001, Extrinsic Rewards and Intrinsic
Motivation in Education: Reconsidered Once Again, University, of Rochester, USA

- Fayol, H.1949, General and Industrial Management, USA

-Gebremedhin Bahita, June 2014, Assessment of Reward and Compensation Management

Practices at Ethiopian Electric Power Corporation Training, Institution and Head Quarter, Addis
Ababa, Ethiopia

-Herzberg, F. 1986, One more Time How Do you Motivate Employees?, London

- John Isaac Mwita, August 2002, The Role of Motivation in Performance Management, The
University of Birmingham, UK
- Lisa Coffey, 2013, The Relationship Between Reward Management and Recognition in the
Workplace, School of Business, Ireland

- Michael Armstrong, 2005, A Hand Book on Employee Reward Management and Practice,
London and Philadelphia

- Michael Poole and Glenville Jenkins, 1998, Human Resource Management and, the Theory of
Rewards: Evidence from, a National Survey, UK

- Nicholas Bloom, Christos Genakos ,Raffaella Sadun ,John Van Reenen 2011, Management
Practices Across Firms and Countries ,Harvard Business school, USA

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University Putra Malaysia, Malaysia

-Philip Stiles and Jonathan Trevor, 24 November 2006, Best practice and key Themes in Global
Human Resource Management, Cambridge University, UK

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Bass Publishers, Pakistan
 Appendix 1
ARBAMINCH UNIVERSITY

COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

A questionnaire to be filled in by Administrative staff of Arbaminch University

Dear respondent, this questionnaire is designed to obtain reliable information on the reward
management practice, employees’ satisfaction and the job performance of administrative staff of
Arbaminch University. The information obtained will be used only for academic purposes and
for the successfulness of the study. Since the success of this study depends up on your genuine
and frank responses, you are kindly requested to give genuine information. Please read the
instruction of each part and provide your responses accordingly.

General Instructions

1. You are not required to write your name.

2. All questions are equally important for the completion of the study.

PART ONE
Instruction 1:-Indicate for the general information and personal data by using a thick
mark (√) in the box.

1.1 sex A. male B. female

1.2. Age A. less than 20 B. 21-30

 C. 31-40 D. above 40

1.3. Education status

A. college diploma

B. degree C. second degree and above

1.4. Campus

A. Main campus B. Abaya Campus C. Chamo Campus

D. Nech sare Campus E. Kulfo campus

1.5. Service year in the University

A. under 1 year B. 1-5 years C. 6-10 years

D. 11-15 years E. 16 years and above

• . Department (Directorate) -----------------------------------

PART TWO

2.1. Questionnaires assessing the reward management system of the university

Instruction 1:- below are some statements about the reward management practice, employees’
satisfaction and the job performance of administrative staff of Arbaminch University. Read each
item and give your answer by putting a thick mark (√) in the box.

Description

1 = strongly disagree

2 = Disagree

3 = Neutral

4 = Agree

5 = strongly agree

R. Questions 1 2 3 4 5
no
2 I am performing my responsibilities perfectly.
3 I am happy in all benefits I get from the university.
4 Management bodies often advise employees about their job
 performance.
5 There is a regulation to govern motivational activities in the
university.
6 There is a standardized criterion (merit) to evaluate and identify
employees.
7 The criteria have direct relation with responsibilities of each
employee.
8 Do management of the university and employees hold pre and post-
reward meetings to discuss employee’s reward and results?
9 Managers(Directors ) evaluate each employee’s performance
regularly
10 My organizations motivates its employees regularly
11 The reward is provided fairly.
12 The motivation is provided on time
13 Your manager(Director) has clear understanding about employee
motivation
14 He /She/ has full authority to motivate employees

Instructions 2:- Read each item and give your response by choosing the correct answer
from the given alternatives.

15. In general how do you rate the reward management system of your organization?

A. High B. Moderate C. Low

16. Due to the reward management system of your organization, how was your satisfaction?

A. Increased B. Decreased C. No change

17. Depending on the response of the above question, how was the performance of your
organization?

A. Increasing B. Decreasing C. No change

18. Please mention practical influences that the reward management system had on

A. Employees’ satisfaction
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

B. Organizations performance
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_________________________________________________________________

19. What is your suggestion about the reward management system of your organization?

___________________________________________________________________

Appendix 2

Interview Questions for appraiser

Dear Respondents:-This questionnaire is for evaluation of reward management and its
impact of Arbaminch university and your response will not be used other than research
purpose. So, you are kindly requested to give response honestly.

Thank you in advance.

1. Does your organization have its own reward management system?

2. How far the reward system of your organization enables to maintain and promote its
employees?

3. Do you think that the current reward system in your organizations appreciative or abortive?

A. If appreciative why? And

B. If abortive why? And do you recommend some ways how it will be redesigned?

4. What are the main purposes of reward and compensation in your organization?

5. In what range do performance ratings of the majority of workers in your organization often
fall? (High, medium, low)

6. What kind of evaluation criteria (form) do you use in your organization to reward your
employees? And do you recommend some additional statement that included in the form?

7. Which reward and compensate technique do you use in the organization?

8. What was the impact of reward management system on the motivation of employees and
performance of the organization?

Appendix 3

በኢትዮጵያ ፌዴራላዊ ዲሞክራሲያዊ ሪፑብሊክ የፌዴራል ሲቪል ሰርቢስ ኮሚሽን የቋሚ ሰራተኛ የሥራ አፈፃፀም መመዘኛ ቅፅ

• ማስገንዘቢያ

1. ይህ የሥራ አፈፃፀም ቅፅ በመንስት ሰታተኞጭ ደንብ ቁጥር 1/1955 በአንቀፅ 57፣58፣61፣62 እንዲሁም በመንግስት ሰራተኞች የሥራ
መረደባና የደመወዝ ደረጃ ደንብ ቁጥር 21/1964 በአንቀፅ 26፣41፣ እና 49/2 መሰረት ለቋሚ የመንግስት አስተዳደር ሰራተኞች የወጣ
ነው፡፡

2. ይህ ቅፅ የሰራተኛውን የሥራ ጥራትና ለመመዘንና የሥራ ውጤትን ገምግሞ ተገቢውን እርምጃ ለመውሰድ የሚያችል ነው፡፤

3. ይህ ቅፅ የሚሞላው ሰው ጭምር በሀላፊነት ሊያስጠይቅ ስለሚችል ሞይው የቅፁን ዓላማና የአሞላል መመሪያ በትክከል ከተረዳ
በኋላ በጥንቃቄና በሐቀኝነት መሙላት አለበት፡፡

4. ቅፁ በግብታዊነት በአንድ ጊዜ የሚሞላ ሳይሆን ለሰራተኛው በየጊዜው በተያዘ የሥራ ውጤት መከታተያ ማስታወሻ ላይ መመስረት
አለበት፡፡

5. ቅፁ በሥራው ሀላፊና ተጠያቂ በሆነው በቅርብ ሀላፊ ይሞላል፡፡ የተሞላውም ቅፅ ቀጥሎ ባለው የሥራ ሀላፊ ቀርቦ ይመረመርና
ዝርዝር አስተያየት ይሰጥበታል፡፡

6. ይህ ቅፅ በአንድ የበጀት ዓመት በጥር እና ሐማሌ ወር ይሞላል፡፡

7. ቅፁ ሲሞላ ሰራተኛው የያዘው የሥራ መደብ ደረጃ፡

ሀ) በደመወዝ ስኬሉ ከደረጃ ከፍታ 1 እስከ 16 ጭምር በተመለከተው ውስጥ ሲሆን በአንድ ቅፅ ይሞላል፡፡ መ/ቤቱ ቅርንጫፍ
በ/ቤት ያለው ካለው በበቂ ቅፅ ተሞልቶ አንዱ ለዋናው መ/ቤት ይላካል፡፡

ለ) በደመወዝ ስኬል ከደረጃ ከፍታ 17 እስከ 19 ጭምር በተመለከተው ውስጥ ሲሆን ከዚህ በላይ በፍዴል (ሀ)የተመለከተው
እንደተጠበቀ ሆኖ በተጨማሪ አንድ ቅፅ ተሞልቶ ለመንስት ሰራተኞችና ነ/ቤቶች አስተጋገር ኮሚሽን መላክ አለበት፡፡

8. በመመዘኛው አርዕስት ከተራ ቁጥር 10 እስከ 12 የተመለከቱት መመዘኛዎች በአመራርና በመቆጣጠር ሥራ ላይ ለተመደበ ሰራተኛ
ብቻ በተጨማሪ የሚሞሉ ናቸው፡፡
9. በእያንዳንዱ የመመዘኛ ርዕስ ለግምገማ እንዲረዱ በተለያዩ ገላጭ ሐረጎች የተመለከቱ ቢሆንም ነጥብ የሚሰጠው በዋናው ርዕስ
አቅጣጫ በሚገኙ የመመዘኛ ነጥቦች ሥር በአንዱ ላይ ብቻ የ( x ) ምልክት በማድረግ ነው፡፡

10. የ( x ) ምክት የተደረገባቸውን የመመዘኛ ነጥቦች አማካይ ውጤት(አብሬጅ) ለማግኘት የነጥቦች ድምር

ሀ) በአመራር ሥራ ላይ ላሉት ለ 12 ለ) ለሌሎች ሰራተኞች ለ9 በማካፈል ይሞላል፡፤

11. የሰራተኛው የመመዘኛ ነጥቦች አማካይ ውጤት

ሀ) ከ1.00 እስከ 1.44 ጭምር ከሆነ ዝቅተኛ ለ) ከ1.45 እስከ 2.44 ጭምር ከሆነ መጠነኛ

ሐ) ከ2.45 እስከ 3.44 ጭምር ከሆነ መካከለኛ መ) ከ3.45 እስከ 4.44 ጭር ከሆነ ከፍተኛ

ሠ) ከ4.45 እስከ 5.00 ጭር ከሆነ በጣም ከፍተኛ ተብሎ ይሞላል፡፤ አማካይ ውጤቱም በሚመለከተው በበዘኛ
ነጥብ ግርጌ ባለው ቦታ ላይ መጻፍ አለበት፡፡

• የሥራ አፈፃፀም መመዘኛ

የሰራተኛው ስም-----------------------------የአባት ስም-------------------የወንድ አያት ስም-------------------------

መሥሪያ ቤት----------------------------------------------ቅርንጫፍ መ/ቤት-----------------------------

የሥራ መደቡ መጠሪያ------------------------------------ደረጃ----------------------መታወቂያ ቁጥር--------------------

ቅፁ የተሞላው ከ--------------------------------እስከ-------------------------ላለው ጊዜ ነው፡፡

ተ.ቁ የመመዘኛ አርዕስት ዝቅተኛ መጠነኛ መካከለኛ ከፍተኛ በጣም

ከፍተኛ
1 2 3 4 5
1 ዕወቀትን በተግባር የማዋል ችሎታ
በጠቅላላ ትምህርትና ወይም በሥራ ልምድ እና በልዩ ሙያ
የተገኙት ዕውቀት በሥራ ላይ ለማዋል የሚያሳየው ጥረት፣
2 ሥራ ላይ የመገኘት ልምዱ
• አዘውትሮ በሥራ ላይ የመገነትና መደበኛ የሥራ ሰዓትን
የማክበር ዝንባለው
• የሥራ ሰዓትን በመ/ቤቱ ብቻ የማዋል ልምድ
3 በሥራ ላይ የሚያሳየው ትብብር
• ከሀላፊዎችና ከሥራ ጓደኞቹ ጋር ያለው ትብርና በግባባት
• በቡድን ሥራ ላይ የሚያሳየው ትብብር
• ባለ ጉዳዮችን ለመርዳት ያለው ቅን አመለካከት
4 የሥራ ጥራቱና ቅልጥፍናው
• ሥራን በትክክልና በጥራት ለማከናወን ያለው ችሎታ
• በሚፈለገው ወቅትና ቅደም ተከተል ሥራውን
ለማጠናቀቅ የሚያሳየው ትጋት
 • ምክርና ገንቢ ሂስን ለመቀበል ያለው ፈቃደኝነት
5 ያከናወነው የሥራ መጠን
• በተወሰነው ጊዜ ውስጥ ያከናወነው የሥራ ውጤት
• ያበረከተው የሥራ ውጤት ሌሎች የሥራ ባልደረቦች
ካከናወኑት ጋር ሲመዛዘን የሚያሳየው መጠን
6 የንብረት አያያዙና አጠቃቀሙ
• የሚገለገልባቸውን መሣሪያዎችና ንብረት በጥንቃቄ
በመያዝና በቁጠባ ለመጠቀም ያለው ዝንባሌ
7 የሚያሳው ስነምግባር
• መ/ቤቱን መረጃዎችና ምስጥር ለመተበቅ ያለው
ታማኝነት
• ለሥራውና ለመ/ቤቱ የሚያሳየው ተቆርቋርነት
• በመ/ቤቱ ውስጥ አስነዋሪ ጠባይ ላለማሳየትና የግል
ንፅህናውን ለመጠብ የሚያደርገው ጥንቃቄ
8 አዳድስ የአሰራር ዘደዎችን የማፍለቅ ፣ የመቀበልና ሥራ ላይ
የማዋል ችሎታው
• በራሱ ተነሳሽነት አዳድስ ሀሳቦችንና የአሰራር ዘዴዎችን
ለማመንጨት ያለው ችሎታ
• አዳድስ የአሰራር ዘሄዎችን ፣መርሆዎችንና እርምትን
የመቀበልና በሥራ ላይ የማዋል ዝንባሌው
• በየጊዜው ችሎታውን ለማሻሻል የሚያደርገው ጥረት

9 ኃላፊነት የመቀበል ችሎታው

• በችሎታው የመተማመን ዝንባሌ
• የሀላፊነቱን መጠን ራሱን በራሱ በመቆጣጠር የመስረት
ችሎታው
• ለዲሞክራሲያዊ ማዕከላዊነት አሰርር ተገዢነት
10 ሥራን የማቀድናየማደራጀት
• የክፍሎች ሥራ በተቀላጠፈ ሁኔታ ለማከናወን
የሚያስችሉ ዘዴዎችንና ዕቅዶችን የማውጣት ችሎታው
• ለሥራው የሚያስፈልጉትን ቁሳቁሶች ፣መሳሪያዎችንና
የሰው ሀይል በወቅቱ ለማሟላት የሚያሳየው ጥረት
11 መምራትና የመቆጣጠር ችሎታው
• በሰራተኞች ዘንድ ያለው ተደማጭነት
• ሀሳብ የመቀበልና የማስረዳት ዝንባሌው
• የሥራ መመሪያ የመስጠት ፣ሀላፊነት የማከፋፈልና
የመቆጣጠር ችሎታው
• ሰራተኛን የማትጋት፣ የማስተባበር፣ የማበረታታት
ዝንባሌው
• ሥራና ሰራተኛን የማገናኘትና ባለው የሰው ሀይል
የመጠቀም ችሎታው
12 የውሳኔ አሰጣጥ ችሎታው
• ውሳኔዎች የሚያሰከትሉትን ውቴትና ሀላፊነት በቅድሚ
የመረዳት ችሎታው
• ለውሳኔ አሰጣጥ የሚረዱ መረጃዎች በመሰብሰብ
፣በመተንተንና ከተለያዩ አቅጣጫዎች ለመገምገም
የሚያደርገው ጥረት

• አስተያየት
በሚመለከተው ሣጥን ውስጥ የ( x ) ምልክት አድርግ

• የሰራተኛው የሥራ አፈፃፀም ሪፖርት በመንግስት ሰራተኞች ደንብ ቁጥር 1/1955 አንቀፅ 51 መሰረት ከማዕከላዊ ስለሆነ
በቅድሚያ ከሰራተኛው ጋር ተነጋግረንበታል፡፤

• ስለተነገው ድክመት ሰራተኛው ሀ) በፅሁፍ አስተያየት ሰጥቷል ለ) አስተያየቱን በፅሁፍ ስላልሰጠ ከዚህ በታች
ምልክት አድርጓል

• ከዚህ በላይ በተራ ቁትር 1 የተመለከተው ሁኔታ የተደጋገመ ስለሆነና ባለፉት -----ዓመታት እንዲያሻሽል በመንግስት
ሰራተኞች ደንብ ቁጥር 1/1955 አንቀፅ 68መሰረት በችሎታ ማነስ እርምጃ ይወሰድ፡፡

• ማረጋገጫ

• ከላይ የተሰጠው የሥራ አፈፃፀም ሪፖርት ያለአድልዎና ተጽዕኖ ከሥራው አንጻር ብቻ በማገናዘብ የተደረገ ግምገማ
መሆኑን አረጋግጣለሁ፡፤

------------------------- ,------------------------------ ------------------- ------------------

የቅርብ ሀላፊ ሥም የሥራ ማዕረግ ፍርማ ወር/ቀን/ዓ.ም

• ሪፖርቱን የመረመረው ሀላፊ አስተያየት

• የተሰጠው መመዘኛ ነጥብ ከማዕከላዊ በታች ስለሆንኩበት ምክንያት በቃል የተነገረኝ መሆኑን አረጋግጣለሁ፡፡

• ቅፁን ከላይ በተመለከተው መመሪያ መሰረት በትክክል ተሞልቶና በወቅቱ መቅረቡን በሰራተኛ አስተዳደር ስም
አረጋግጣለሁ

ስም የሥራ ማዕረግ ፍርማ ወር/ቀን/ዓ.ም