Reward System and its Effect on Employees Work Motivation in One and Two Star Rated Hotels in Amhara Region, Ethiopia

Star rated hotels are business organizations supported by human resources to deliver the qualified service and realize the dreamed objectives. To provide quality service, understanding motivation is required. Star rated hotels need to rethink their reward strategies to better align them with the new realities in order to improve their employees motivation and retention. This study examined reward system and its effect on employees work motivation particularly employees of one and two star rated hotels. It aimed to investigate whether rewards have an impact on hotel employees work motivation. The finding of the study indicated that there is a positive and significance relationship between reward systems with employee work motivation. Promotion, recognition, benefit, work content, and work condition have a significant effect on employees work motivation but payment has insignificant effect on employees work motivation. Key words : Motivation, Reward, Reward system, star rated hotel DOI : 10.7176/JTHS/40-04