Impact of Rewards Management System on Employees’ Satisfaction in Case of DebreBirhan University Administrative Staffs

Abstract

Reward management is concerned with the processes of developing, implementing, operating and evaluating reward policies and practices that recognize and value people according to the efforts and contributions they make towards achieving organizational, departmental and team goals. Employee satisfaction is the degree to which an employee has positive emotions towards the work and organization. The objective of the study is to determine the impact of reward management system on employees’ satisfaction in Debire Birhan University administrative staffs in Ethiopia. The sample size of the study contained 280 administrative staffs in the different departments’’ of University. Data was collected using structured questionnaire technique. The data obtained was processed using the statistical package for social science (SPSS) and was analyzed using both descriptive and inferential statistics. The result discussion indicate that there was a moderate significant positive relationship between transparency of reward system and Employees satisfaction (r =0.582, p< 0.00), Fair distribution reward system and Employees satisfaction (r =0.562, p< 0.00). Low significant positive relationship between Equity reward system and employees satisfaction (r = 0.336, p< 0.00); Consistency and continuity of reward system and Employees satisfaction (r =0.388, p< 0.00). The study found that reward management system collectively have significant effect on employees satisfaction. The study recommends that the university reward management system should be transparency, equity, fair distribution and consistency among administrative staffs in the university. The university should be developing channels of communication for making transparency and clarity of reward management system to administrative staffs.