2.

5 Critique of Literature

A study conducted by Ryan (2013) investigating reward schemes for employees in organization
revealed that firms had designed reward systems that motivate employees who contribute most.
A limitation of this study was that it did not investigate which kind of rewards provide
motivation for employeee performance. The study also never analysed how each reward
influenced employee performance. The current study aims at investigating how different rewards
influence employee performance.

Murphy (2015) conducted a study on impact of reward systems on employee performance. The
findings showed that performance and motivation are closely linked, but the rewards that drive
both of these may be very different and there is no universal system that can adequately be
applied across board. A limitation of this study was that it was not subjected to empirical testing,
but relied on theories. The author also failed to investigate which type of reward system had
more influence on employee performance, which this study strived to uncover.

A study conducted by Apeyusi (2012) found out that, there was a positive relationship between
reward and corporate performance. It was also revealed from the study that there were enormous
reward packages in the organization but some of the staff members were not aware. The
limitation of this study is that it did not identify any reward that organizations used to motivate
their employees. Moreover, the study relied more on secondary data rather than empirical
evidence. The current study identified reward system currently used by Commercial Banks in
Kenya and identify the one that motivates employees more to increase their performance.

Habte (2016) conducted a study to compare impact of intrinsic and extrinsic rewards on
employee motivation that further enhances employees performance between public and private
commercial banks in Ethiopia. The major findings of the study revealed that public commercial
banks employees in Ethiopia were motivated by intrinsic rewards more than the private
commercial banks employees. While, private sector commercial banks employees in Ethiopia
were motivated by the extrinsic rewards more than the public sector commercial banks
employees. The limitation of this study is that it never identified which specific intrinsic or
extrinsic reward motivated employees. The current study shed light on the specific reward that
influences employee most to put extra effort in their work.

Wanjala (2015) conducted a similar study to investigate influence of performance appraisal on

employee performance in a commercial banks. The findings revealed that there was a significant
relationship between performance appraisal and worker’s performance. A limitation of this study
was that it was limited to only one kind of commercial bank. It did not cut across the different
Commercial Banks in Kenya. Therefore, the result can not be generalized.

2.6 Summary of Literature

The chapter commences with the review of the five motivation theories which focus on ways that
motivate people to perform a particular task. These theories include, Operant conditioning
theory, Expectant theory, Cognitive evaluation theory, Self-efficacy theory and Cognitive
Contistency theory. This is followed by conceptual framework that links independent variables
with dependent variable. Review of rewards that motivate employees to put extra effort in their
work has shown that financial reward, career progression, recognition schemes, employees
benefits and organization culture have positive and significant association with employee
perormance. In other words, the five reward systems motivate workers to put extra effort than
normal to do their designated tasks in an organization.