The Impact of Reward Management on Employee Performance.

ABSTRACT Management of rewards in organizations is of great important in running the organization efficiently on its daily operations. If those rewards are not managed properly then there is a I ikely chance that employees will perform poorer. The performance of employees depends largely on how their resources are allocated and their ability to adapt to a changing condition and therefore there is a great need of how to manage and maintain rewards, The study was based on looking what were the mam factors causing the poor management of rewards which in turn has a great impact on the performance and growth of employees with reference of Hormuud Telecom. The study involved both qualitative and quantitative methods. The sample size was thirty employees. In which ten employees from Finance department, four employees from Store depatiment, nine employees from operation department and seven employees from receiving department; Interviews, observations, documentary review and questionnaires were the bases for data collection and its findings has been represented in this research report During the study the researcher views that the procedures are worth undertaking, although there are some few loopholes here and there. lf such loopholes are not addressed in the near future they could make the organization to lose many of employees. Following the study findings, the following recommendations are very vital for management. in order to improve the efficient use of rewards. The management should conduct periodical inspection of its rewards in financial on monthly basis it may help in assurances of present of concerned employees and also these may help to avoid fraud about present of concerned workers.

TABLE OF CONTENTS

DECLARATION ......................................................................................................... i

APPROVAL ................................................................................................................ ii

DEDICATION ........................................................................................................... iii

ACKNOWLEDGEMENT ......................................................................................... iv

TABLE OF CONTENTS ............................................................................................. v

LIST OF TABLES ................................................................................................... viii

LIST OF ABBREVIATIONS ................................................................................. x

ABSTRACT ............................................................................................................... xi

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

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

1.0 Introduction ............................................................................................................ 1

1.1 Background of the study .......................................................................................... 1

1.2 Background of the Case study ................................................................................ 2

I .3Statement of the problem ........................................................................................ 3

I .4Purpose of the study ................................................................................................ 4

1.5 Research objectives ............................................................................................... .4

1.6 Research Question ................................................................................................. .4

1.7 Scope of the study ................................................................................................. .4

1.8 Significance of the study ........................................................................................ 5

1. 9 Conceptual framework .......................................................................................... 5

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

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

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

2.1 Definition of the concept of reward system ........................................................... 6

2.2 Purposes and Aims of Reward Management ......................................................... 9

2.3 Types ol'rewards .................................................................................................. 11

2.3.1 Financial Rewards ............................................................................................ .11

2.3.2 Non-Financial Rewards ..................................................................................... 12

V

2.4 Criteria for Pay Structures .................................................................................... 14

2.5 Key Reward Management Trends ........................................................................ 15

2.6 Relationships between reward and employees performance ................................ 16

2.7 The Effect of Reward on Employee Performance ................................................ 17

2.7.1 Bad Reward System .......................................................................................... 17

2.7.2 Good Reward System ........................................................................................ 18

CHAPTER THREE ......................................................................................................... 19

RESEARCH METHODOLOGY ....................................................................................... 19

3.0 Introduction .......................................................................................................... 19

3.1 Research design .................................................................................................... 19

.3.2 Sampling techniques ........................................................................................... 19

3 .3 Sample size ........................................................................................................... 19

3.4 Scope of the study ................................................................................................ 20

3.4.1 Geographical area .............................................................................................. 20

3.4.2 Subject matter .................................................................................................... 20

3.5 Sources of data ..................................................................................................... 20

3 .6 Methods used for data collection ......................................................................... .20

3.6.1 lntcrviews ........................................................................................................... 20

3.6.2Observations ....................................................................................................... 2 l

3.6.4Qucstionnaires .................................................................................................... 21

3.7 Data analysis and presentation ............................................................................. 21

3.8 Limitations of the study ....................................................................................... 22

CHAPTER FOUR ........................................................................................................... 23

DATA PRESENTATION, ANALYSIS AND DISCUSION ........................................ 23

4:0 Introduction .......................................................................................................... 23

4: I :0 Presentations of findings ................................................................................... 24

4.1: I Types of rewards at Hormuud Telecom ............................................................ 24

4.1 :2 Are there problems of reward management at Hormuud Telecom ................... 25

4.1 :3 The Main causes of reward management problems .......................................... 27

vi

4.1 :4 The relationship between reward management and employee performance at

Hormuud Telecom ...................................................................................................... 28

4.1 :5 Reward policies and strategies in Hormuud Telecom ....................................... 29

4.1 :6 Solution for reward management problems at Hormuud Telecom ................... 30

CIIAPTER FIVE ............................................................................................................. 32

CONCLUSION AND RECOMMENDATIONS ........................................................... 32

5 :0 lntroductions ......................................................................................................... 32

5: I Discussion offindings .......................................................................................... 32

5.1.1 Types of Rewards at Hormuud Telecom ........................................................... 33

5.1.2 The Main causes of poor reward management. ................................................ .33

5.1.3 Ways of solving the problems of reward management .................................... .33

5.2 Conclusion ........................................................................................................... .34

5.3 RECOMMENDATION ....................................................................................... .34

REFERENCES ........................................................................................................... 35

APPENDICES .................................................................................................................. 38

Appendix l ................................................................................................................. .38

TIME TABLE ........................................................................................................... .38

Appendix I l ................................................................................................................ 39

RESEARCHER'S BUDGET ................................................................................. .39

Appendix Ill .............................................................................................................. .40

RESEARCH QUESTIONNAIRES ............................................................................ 40