REWARD SYSTEM AND EMPLOYEE PERFORMNCE IN THE ORGANIZATION A CASE STUDY OF NATIONAL WATER AND SEWERAGE CORPORATION, GGABA WATER WORKS

TABLE OF CONTENTS

DECLARATION .................................................................................................................. x

APPROVAL ........................................................................................................................ xi

DEDICATION ................................................................................................................... xii

ACKNOWLEDGEMENTS ............................................................................................... xiii

ABSTRACT ...................................................................................................................... xiv

TABLE OF CONTENTS .................................................................................................... xv

LIST OF TABLES ............................................................................................................ xviii

LIST OF FIGURES ........................................................................................................... xix

CHAPTER ONE .................................................................................................................. 1

INTRODUCTION ................................................................................................................ 1

1.0 Background of the Study ........................................................................................................... 1

I.I Statement of the Problem .......................................................................................................... 2

1.2 The PU1pose of the Study ........................................................................................................... 3

1.3 Specific Objectives .................................................................................................................... 3

1.4 Research Questions .................................................................................................................... 3

1.5 Scope of the Study ..................................................................................................................... 3

1.5.1 Geographical Scope ................................................................................................................ 3

1.5.2 Content Scope ........................................................................................................................ .4

1.6 Significance of the Study ........................................................................................................... 4

CHAPTER TWO ................................................................................................................. 6

LITERATURE REVIEW ..................................................................................................... 6

2.0 Introduction ............................................................................................................................... 6

2.1 Theoretical Framework of the Study ......................................................................................... 6

2.2 Conceptual Framework of the Study ......................................................................................... 7

2.3 Related literature ........................................................................................................................ 8

2.3.1 Forms of Reward Systems used byNWSC ............................................................................ 8

2.3.2 Reward Systems that can boost Employee Performance ...................................................... 10

2.3.3 Performance of Employees in NWSC in regard to the Reward Systems in Place ............... 11

CHAPTER THREE ............................................................................................................ 14

RESEARCH METHODOLOGY ...................................................................................... 14

3.0 Introduction ............................................................................................................................. 14

3.1 Research Design ...................................................................................................................... 14

3.2 Area ofStudy ........................................................................................................................... 14

3.3 Population of the Study ........................................................................................................... 15

3.4 Sample Design ......................................................................................................................... 15

3.4.1 Sampling Technique ............................................................................................................. 15

3.4.2 Sample Selection and Size .................................................................................................... 15

3.5 Sources ofData ........................................................................................................................ 16

3.7 Research Instruments ............................................................................................................... 16

3.7.1 Interview Design ................................................................................................................... 16

3.7.2 Questionnaires ...................................................................................................................... 16

3.8 Data Analysis ........................................................................................................................... 16

3.9 Validity of Data ....................................................................................................................... 17

3.10 Research Procedure ............................................................................................................... 17

CHAPTER FOUR .............................................................................................................. 18

FINDINGS .................................................................................................................................... 18

4.0 Introduction ............................................................................................................................. 18

4.1 Forms ofreward systems used byNWSC ............................................................................... 18

4.2 Reward systems that can boost employee performance .......................................................... 20

4.3 Performance of employees in NWSC in regard to the reward systems in place ..................... 22

CHAPTER FIVE ................................................................................................................ 24

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS .................................... 24

5.0 Introduction ............................................................................................................................. 24

5.1 Discussions .............................................................................................................................. 24

5.1.1 Forms of reward systems used byNWSC ............................................................................. 24

5.1.2 Reward systems that can boost employee performance ....................................................... 27

5.1.3 Performance of employees in NWSC in regard to the reward systems in place .................. 28

5.2 Conclusion ............................................................................................................................... 29

5.3 Recommendations ................................................................................................................... 30

REFERENCES ................................................................................................................... 32

APPENDICES .................................................................................................................... 35

APPENDIX I: QUESTIONNAIRES FOR RESPONDENTS .............................................. 35

APPENDIX 11: INTERVIEW FOR EMPLOYEES ............................................................ 38

ABSTRACT 

This study examined the relationship between reward systems and employee performance in NWSC Ggaba Water Works. These study objectives included; establishing the general understanding of reward system, establishing the reward systems that can boost employee performance and assessing the performance of employees in NWSC in regard to the reward systems in place. A descriptive and analytical study was done with a cross sectional survey of respondents. A total of 60 sample respondents were used to answer the question to the study. About the forms of reward systems used by NWSC; most of the respondents (65%) reported effective performance where 52% reported Pay-for-performance and 13% reported competence based compensation. Twenty six percent reported compensation benefits while 9% reported season rewards. About the reward systems that boosted employee performance, respondents reported Pay for performance, competency-based compensation, compensation benefits and seasonal rewards. There was self motivation, high commitment and retaining of high performing employees, participative decision making, good behavior, self disclosure, flexible time working and good coordination between departments was evident among well paid employees. Pay for performance was the major reward system considered in rewarding employees at 65%. Pay for performance reward system that most boosted employee performance. The perfom1ance of employees in NWSC in regard to the reward systems in place was more evident in self motivation through high commitment to work and such employees were retained in most cases. The study therefore concludes the reward systems greatly influenced employee performance in NWSC Ggaba Water Works. The researcher therefore suggests that; employees should be given pay for performance rewards so that they work will all their abilities to achieve organizational goals, reward decision taken by managers should aim to fulfill the interests of the organization. Operative employees should given the salary ranges according to their skills, knowledge and experience within the field of work.