Relationship between reward systems and employees performance. The case of Kenya Revenue Authority
Munga, Penninah Kabura
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Increasingly, organizations are realizing that they have to establish an equitable balance between the employee's contribution to the organization and the organization's contribution to the employee. Establishing this balance is one of the main reasons to reward and recognize employees. Organizations that follow a strategic approach to creating this balance focus on the three main components of a reward system, which includes, compensation, benefits and recognition (Deeprose, 1994). Research has proven that employees who get rewarded and recognized tend to have higher self-esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative (Mason, 2001). However, like any other public organization, Kenya Revenue Authority (KRA) despite establishing reward systems to improve its employees, its employees have been criticised of being lazy, corrupt and that they lack professionalism in their work (Abuga, 2007). The Authority is thus under constant pressure to revise its benefit offering to staff, which includes a reward and recognition programme that staff buy-in too, is satisfied with and which is linked with the organisation's strategy. Therefore, the aim of this study is to investigate the role that reward systems play in motivating employees and ensuring their job satisfaction, and thus uncovering the existing relationship between reward systems and employee performance at KRA. Both descriptive and inferential statistics were adopted with a focus on both qualitative and quantitative characteristics and status of reward systems and employee performance at KRA. The population of interest is all 2800 employees at KRA. A sample size of 280 employees was sampled using multistage technique for the purpose of this study. Primary data collected using questionnaire was used for the analysis. The result revealed that there is a significant relationship between all eight of the subdimensions of work motivation and satisfaction, that include, work content, payment, promotion, recognition, working conditions, benefits, personal, leadership (level of satisfaction with the organization). Hence, the results indicate that there is a significant statistical relationship between all of the eight dimensions of the work motivation and satisfaction and that all the dimensions, have a positive influence on motivation and satisfaction. The results revealed that there is a statistically significant relationship between reward systems, and motivation and satisfaction. The study revealed that if rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. The results of this study also indicated that employees were less motivated by rewards than some of the other dimensions of the work satisfaction and motivation. By implication, this means that if more focus is placed on rewards it could have a resultant positive impact on motivation and thus result in higher levels of job performance.