The Effect of Reward Practices on Employees’ Motivation in Banking Industry: A Comparative Study of Selected Public and Private Commercial Banks in South Gondar Zone, Ethiopia

Tilahun Lakew


Safe working environment is very important for any organization to create competitive employee in the world. The main objectives  of this research was to assess the effect of reward practices on employees’ motivation in selected Public and Private Banks /Commercial Bank of Ethiopia, Bank of Abyssinia and Abay Bank/ in South Gondar Zone. After intensive review of prior literature, we have selected payment, benefit, promotion working condition, recognition, and training opportunities as dimensions of reward. The study was done based on primary and secondary data sources. A self-administered questionnaire was designed to collect relevant information from the selected 203 respondents. Among this 200 questionnaire were returned and analyzed. Multistage sampling method was used and employees are selected from each stratum with a systematic sampling technique. The collected data was analyzed by SPSS version 20 using descriptive statistics and multiple regressions. Quantitative research approach and Explanatory research design was employed to show the cause and effect of independent and dependent variables. Based on the result of multiple linear regression variables like recognition and training have positive and significance effect on employee’s motivation in Commercial bank of Ethiopia, and also payment and training variables have positive and significance effect on employee’s motivation in private banks. On the other side promotion and recognition have been found insignificant in CBE and in Private Banks respectively than other variables in the model. Since the relation between rewards and motivation exist, the management of commercial bank of Ethiopia and Private Banks shall be follow better rewarding techniques to increase the performance of employees as well as achieving organizational objectives.

Keywords: Reward  Practices, employee’s motivation, Commercial Banks, South Gondar Zone.

DOI: 10.7176/RJFA/11-1-05

Publication date: January 31st 2020


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