Contribution of managerial rewards to employee performance in financial institutions. Case study: Stanbic bank, Entebbe branch

Abstract

Managerial rewards are one of the ways organizations use to attract and retain suitable employees as well as facilitate them to improve their performance. The study seeks to examine the contribution of managerial rewards on performance of employees in financial institutions and Stanbic bank was the case study. Specifically the study aims at examining the relationship between managerial rewards and employee performance and also examining the effect of both intrinsic and extrinsic rewards on the performance of employees. The study was carried out using the case study research design that has both the qualitative and quantitative approach. A study population of 20 employees with a sample size of 19 respondents was considered in the data collection process. Data was collected using administered questionnaires and analyzed with the help of Statistical Package for Social Sciences (SPSS) computer program which outputs frequency tables with percentages and pie charts among others. The findings of the study from both managers and employees showed that managerial rewards have a strong relationship with employee performance. Managerial rewards were seen to be interdependent and vital to employee performance. Both extrinsic and intrinsic rewards had a positive effect on employee performance. The conclusions of the study were that managerial rewards were an effective method of improving employee performance. For a managerial reward system to be balanced there has to be both intrinsic and extrinsic rewards. Intrinsic rewards in employees were evidenced by competence, improved knowledge and skills, attainment of a supportive organizational culture, among others. Extrinsic rewards were noted to basically motivate employees to increase their output levels. The recommendations of the study were to involve employees in reward determination, formulate rewards while considering cost effective methods. Employees should be trained to improve their skills and they should also be given meaningful work. Good leadership from the managers and teamwork should be emphasized by the bank. Allowances should be added to employees especially housing, transport and lunch and the organization should motivate employees mainly individually before considering a big group.