THE EFFECTS OF REWARD SYSTEM ON EMPLOYEE PERFORMANCE: A CASE STUDY OF ATWIMA MPONUA RURAL BANK

Abstract

Reward systems can be vital aspect of any organization. They can actively engage and renew the overall sense of community and mission of an organization. A properly administered system of reward can provide incentive for equality, workshop and staff performance The purpose of the study was to examine and establish the effect of reward system on employee performance. This study was also to contribute to ways in which proper reward system will be instituted in an organization. From the analysis of our findings it came to light that, reward system has a correlation with performance. The data used in this study were collected from 54 respondents. The sample gathered was from 9 employees each from 6 branches of the bank. Questionnaires were the instrument used in obtaining information. The study was guided by the following questions: Have you ever been rewarded before? How equitable or fair are rewards distributed in the organization? Are your efforts recognized and appreciated by managers after a difficult task has been performed? The findings reveal that; employees were rewarded mostly with promotion and are based on performance. Efficient implementations of reward system would help the organization to attract and retain qualified employees. It was also evidenced that all stakeholders play an important role in improving reward system in an organization. Based on the above findings, the following recommendations have been made:  Rewarding the employees should be done across board in the Organization and should be non-discriminating. People should be rewarded based on the value of their contribution to the Organization. With this every performance would improve if employees believe that efforts intended on task would be rewarded accordingly.  The Organization must introduce new rewards types like accommodation, holiday trip scholarship for education and increase in workers’ salaries among others.