Extrinsic rewards and employee performance: Case study Red Cross Society- Kampala

Abstract

The study was undertaken to examine the importance of extrinsic rewards on employee performance in Red Cross Society organization. The research objectives as to why the research was carried out were; to identify the effects of payment on the employee performance, to analyze the effect of promotion towards the employee performance, to determine the relationship between allowances and employee performance in the organization. Data was collected from respondents by use of the case study design .Questionnaires and interviews were based on as the data collection instruments by the researcher when collecting the necessary information for the study. A sample of 68respondents was utilized by the researcher. The sampling methods that were based on when selecting the sample include; simple random sampling and purposive sampling. Data was analyzed using SPSS and descriptive statistics were formulated and qualitatively and quantitatively analyzed using frequency tables and graphs were used in the study . The results showed that there is a significant positive relationship between extrinsic rewards and employee performance; therefore extrinsic rewards have positive importance on employee performance as reflected by the findings of the study obtained by the researcher. The researcher makes the following recommendations to Red Cross Society; to also consider intrinsic rewards for better performance of the employees, extrinsic rewards should be looked at as a way of attracting capable employees into the organization but only motivating the already existing employees, Red Cross Organization should also take into account the non monetary rewards such as recognition for better employee performance.