REWARDSYSTEMSANDEMPLOYEEPERFORMANCE CASE STUDY OF NATIONAL INSURANCE CORPORATION (LTD) OF TANZANIA

ABSTRACT

The study was undertaken to establish reward systems and employee performance in the

organization with the objectives of establish different types of reward systems used in an

organization, to examine determinants used to formulate reward systems and to establish

relationship between reward systems and employee performance.

The methods used to collect data were through questionnaires, interview and also the

researcher collected relevant data from other scholars in different text books, journals and

internet.

The findings revealed that, NIC use financial and non-financial rewards like salaries,

wages, incentives, employee benefits and non- financial rewards such as promotion, job security,

job enrichment, job enlargement and recognition.

Further more, the findings revealed that, different organizations establish rewards basing

on ability to pay, cost of living, labour markets and levels of productivity in an organization. It

has identified that, employee performance is determined by personal factors, organizational

factors and other related factors like remunerations, ability of an individual employee, cost of

living, bargaining power, experience, performance appraisals, training and development as well

as skills and competent of the employee.

The effective and efficient performance of the employee increases organizational

productivity behaviors while lack of effective and efficient encounter unproductive behaviors

like low productivity, failure to achieve employee needs and objectives of the organization as a

whole.

Therefore, from the findings, it has revealed that, there is positive and closely relationship

between reward systems and employee performance, the researcher recommended that, the

organizations should design and redesigns reward systems, consistent determinants of rewards

and distributing equally and fairly to all employees in respect with their contributions, worth of

jobs in order to motivate and retain highly qualified and competent employees in an

organization.