REWARD SYSTEM WITHIN ORGANISATIONS A CASE STUDY OF MAKERERE UNIVERSITY

TABLE OF CONTENTS

DECLARATION .B

APPROVAL

DEDICATION

ACKNOWLEDGMENT

LIST OF TABLES viii

ABSTRACT ix

1.1 Introduction 1

1.2 Background 1

1.3 Statement of the problem 3

1.4 Purpose of the Study 3

1.5 Research Objectives 3

1.6 Research Questions 4

1.7 Scope of the Study 4

1.7.1 Content Scope 4

1.7.2 Geographical Scope 4

1.8 Significance of the study 4

2.1 Introduction 6

2.2 Forms of rewards 6

2.3 Challenges for implementing reward systems 9

2.4 Recommendations for improving reward systems 13

2.5 Conclusion

3.1 Introduction 16

3.2 Research Design 16

3.3 Study Population 16

3.4 Sample size and sampling techniques 16

Table 1: Sample size 16

3.5 Data Source 17

3.6 Data collection methods and Instruments 17

3.7 Measurement of variables .17

3.8 Validity and Reliability 18

3.8.1 Validity 18

3.8.2 Reliability 18

3.9 Data processing, analysis and presentation ig

3.10 Ethical considerations 19

CHAPTER FOUR 20

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 20

4.1 Introduction 20

4,2 Response rate 20

4.3 Demographic characteristics 20

4.3 Recommendations for implementing an effective reward system 26

5.1 Introduction 28

5.2 Discussion of Findings 28

5.2.1 Formsof rewards 28

5.2.2 Challenges associated with reward system implementation 30

5.2.3 Recommendations for implementing reward systems 35

5.3 Conclusion 35

5.5 Limitation of the Study 36

5.6 AreasforfurtherStudy 36

References 37

Appendix i: questionnaire FoIm 4C

ABSTRACT 

The study aimed at identifying the different reward forms, the challenges and the possible strategies for improving reward systems. The study was guided by the objectives: To assess the forms of rewards for academic staffs; establish the challenges associated with the implementation of an effective reward system; and to investigate the strategies for implementing an effective reward system in Makerere University. The study applied a cross sectional research design along with a quantitative research approach. A sample size of 341 staff was selected using simple random sampling from a total of 3,209. The study used a structured questionnaire, and its validity was determined using expert judgment while reliability, using Cronbach Alpha Coefficient. SPSS (Version 25) was used to analyze data and the results were presented using descriptive statistics. The study found that reward systems amalgamate both financial and nonfinancial rewards. Moreover, the study found that the most of the rewards are not being adhered to. Further, the study found that most human resource practitioners are offering more nonfinancial as compared to financial forms of rewards. The study observed numerous challenges associated with reward systems implementation and the most pressing were; some rewards to staff are not paid on time and the reward system is not consistently implemented. The study also found that the most perceived recommendations for reward systems implementation were; the university should offer both financial and non-financial rewards and the reward system should become transparent. This study concluded that rewards are important in all businesses and should be regarded as a sensitive affair in any organizational setting. The study further concluded for a complete reward system, both financial and nonfinancial rewards are necessary. Moreover, organizations should be aware that formulating a reward system is not a simple task. The study recommended benchmarking of rewards; paying all rewards in arrears and to consistently ensure that future rewards are paid in time; providing clarity on the different reward; introduction of performance based rewards and conducting internal surveys whenever they seek to improve employee rewards in order to improve reward systems.