The Contribution of Reward System on Employees Performance in Three Selected Private Universities in Mogadishu

Abstract 

In this study, the researcher studied reward system and employee performance in three selected private universities in Mogadishu. The study was guided by the following objectives; to examine the method of rewarding system in three selected private universities in Mogadishu, to determine the level of employees’ performance in three selected private universities in Mogadishu, to establish the relationship between the methods of rewarding system and employee’s performance The research design used was cross sectional survey design. Data was collected from both primary and secondary sources using questionnaires to collect primary data from a sample size of 120 respondents, from the target population of 400. Frequency, percentages, weighted mean was used to analyze the data. The study indicated the majority of the respondents said that the three selected private Universities in Mogadishu have no effective reward system that intended to the employee in the University. This study revealed that the level of performance in the three selected universities’ employees is not the highest level but is increasing slowly. And also the study reveals that there is no relationship between reward system and employee’s performance in these private universities since the reward is not effective. The findings of our study shows that the r-value is equal 0.189 and according to tables of critical values is equal 0.195. So the critical value is greater than r-value 3 and therefore the null hypothesis is rejected. This interprets that there is no significant relationship between reward system and employee performance in selected private universities in Mogadishu —Somalia. In our findings indicates that the universities give their employee financial and also non financial reward while the non financial reward is the gifts, holidays, healthy and safety and other non financial reward, although these universities pay monetary and non monetary financial reward the universities reward is not effective with relation to the performance so these universities must make a system to their rewarding of employees.

TABLE OF CONTENTS

DECLARATION A I

DECLARATION B ii

APPROVAL WORKSHEET III

DEDICATION IV

ACKNOWLEDGMENT v

TABLE OF CONTENTS VI

LISTofTABLES 1

CHAPTERONE s

Background of the study 5

Statement of the problem 7

Purpose of the study 8

General objectives 9

Specific objectives 9

Research questions 9

Scope of the study 10

Conceptual frameworks 12

CHAPTERTWO 14

REVIEW OF RELATED LITERATURE 14

Introduction 14

Concept of related literature 14

Employee motivation 15

Employee job satisfaction and self actualization 16

Attracting and retaining talent 16

Product quality improvement .17

Increasing productivity 18

Reward and employee performance 18

Importance of reward 19

Effective reward system 20

Must apply to everyone 20

Must have a personal touch to it 20

Must have a clear relationship between rewards and job performance 21

Must be immediate 21

Performance, Equity, and reward 21

CHAPTER THREE 24

METHODOLOGY 24

Research design 24

Sampling procedure 24

Target population and sample size 25

Sources of data collection 25

Data collection instruments 25

Research procedure 26

Data analysis 26

Ethical consideration 26

CHAPTER FOUR 27

PRESENTATION, ANALYSES AND INTERPRETATION OF DATA 27

Introduction 27

Personal information of the respondents 27

Gender profile of the respondents 27

Table 4.2 Age distribution of the respondents 28

4.1.3 Level of education of the respondents 28

Table: 4.4 Reward is paying money only to employee 29

Table 4.6 Non financial reward of housing 31

Table 4.7 Monthly wage bonus 31

Table 4.8 Employees incentive benefit 32

Table 4.9 Financial reward of the staff 33

Table: 4.10 Relationship between reward and performance 34

Table: 4.11 Effective reward system 35

Table 4.12 Poor reward system 36

Table 4.13 Reward system and motivation of employees 37

Table 4.14 an affective reward and performance 38

Table 4.15 Performance of the staff related to reward 39

Table 4.16 the performance of staff is increasing 40

Table 4.17 Performance of the staff and effectiveness of reward 41

Table 4.18 Employees’ contribution at work 42

Table 4.19 Poor reward system and employee’s performance 43

Table 4.20 Poor reward system and employee satisfaction 44

Table 4.21: Reward questions 45

Table 4.22: Performance questions 47

Table 4.23 Pearson’s correlations 49

CHAPTER FIVE 50

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 50

Introduction 50

Summary of findings 50

The methods of rewarding system .50

Level of employees’ performance 51

Conclusion 52

The methods of rewarding system 52

Performance of employees 52

Recommendations 53

REFERENCES 56

APPENDIX A 58

APPENDIX B 59

Questionnaire for managers 59