An assessment of the effectiveness of performance based reward systems on employee performance at the Motor Vehicle Accident Fund in Namibia
Employees are rightly regarded as the most valuable assets in an organisation. In businesses, compensation is a critical issue that administrators, particularly human resource managers, must properly manage. The MVA Fund introduced the rewards and recognition policy and Performance Management Policy in 2015 and 2016 respectively. A mixed methods approach consisting of both interpretivist, and positivist approaches was imperative for this study as it also allowed the researcher to gain a deeper understating of the research problem. During the quantitative phase of this study, a survey in this research included a sample selected from managerial and non-managerial employees at the MVA Fund Headquarters in Windhoek by use of questionnaires in order to determine their perceptions on the effectiveness of performance-based reward systems on their performance. The qualitative made use of a case study by means of interviews. Descriptive data analysis was performed, to analyse the demographics of respondents who showed a youthful population, with 71 percent females and 79 percent being general employees. 51 percent worked for 6 to years and 32 percent possessed master’s degrees. Analysis of quantitative and qualitative results under literature control indicate that extrinsic rewards comprising of Salary increase, Bonuses, Commission, Supervision, Employee motivation, Employee commitment and Employee satisfaction have a positive effect on employee performance. The correlation coefficient is at r= 0.329, indicating a positive but weak correlation between Employee performance and Supervision of employees. Correlation between Employee performance and intrinsic rewards are all significant with P values less than 0.05, for all the seven variables the two tailed Significant value is p= 0.0000, meaning that we reject H0, concluding that there is a significant relationship between intrinsic rewards and employee performance. Results from focus group interviews also confirmed that there is a positive and strong relationship between performance-based rewards and employee performance. The study recommends that employee participatory decision making should be encouraged, also ii that there should be an improvement in leadership behavior and the work environment to keep career development
Employee performance, Performance based reward systems, Motor Vehicle Accident Fund, Namibia
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