Impact of Reward Systems on the Organizations Performance in Tanzanian Banking Industry: A Case of Commercial Banks in Mwanza City

Reward system is an important tool that management uses to channel employee’s motivation in desired ways such as better functionality and further improve company performance. The purpose of this study was to examine the impact of reward systems on organisational performance in commercial banks in Mwanza city, Tanzania. The study was guided by the following specific objectives:(i) to determine the reward systems currently used in commercial banks in Mwanza city, (ii) to determine employees’ view of reward system used by commercial banks in Mwanza city, (ii) to assess the effect of extrinsic rewards (remuneration, bonus, salary and promotion) in organization performance and (iv) to assess the effect of intrinsic rewards (praise and recognition) on organization performance in commercial banks of Mwanza city. The study used descriptive research design which incorporated both quantitative and qualitative approaches. The study surveyed 65 employees from three commercial banks (CRDB, NBC and NMB) in Mwanza City, using self administered questionnaire. It also interviewed selected employees. The data was analyzed with use of descriptive statistics (SPSS and excel) and data presented as frequency distribution tables and histograms. The findings of this study showed that the three commercial banks in Mwanza city offer both extrinsic (salary, bonus and promotion) and intrinsic (praise, recognition and genuine appreciation) rewards to their employees. However, the results found that employees were not satisfied with the current reward packages and salary level was viewed to be too low and did not reflect cost of living in Mwanza city. The study further indicated the intrinsic (non financial) rewards were not satisfactory to employees.

Level dc:type.qualificationlevel

masters

Grantor dc:publisher.institution

The Open University of Tanzania

Year dc:date.issued

2014

Author dc:creator

• Kikoito, Jesca N.

• 658 Gerneral management

Language dc:language

en