Student of MBA

1. ASSESSING THE IMPACT OF REWARD TOWARDS EMPLOYEES
MOTIVATION AND JOB SATISFACTION IN CASE OF HARARI
PUBIC PROCUREMENT AND PROPERTY DISPOSAL SERVICE
MBA MINI RESEARCH REPORT
By: - ILIYAS SUFIYAN ABDELLA
ID/No: - RVU 0259/14
RIFT VALLEY UNIVERSITY
HARAR CAMPUS
DEPARTMENT OF MBA
ADVISOR: - Dr. DEBELE TEZERA
OCTOBER, 2022
HARAR, ETHIOPIA

2. DECLARATION
I declare that this thesis report is my unique work and has never been submitted to any
establishment for any honor at all without the writer'' Rift Valley University
Students Name: - IliyasSufiyanAbdella
Id No. : - RVU 0259/14
Signature …………………… Date ………………………..

3. APROVEL
I confirm that Iliyas Sufiyan Abdela carried out this thesis report under my supervision and
guidance in partial fulfillment of the requirements for the award of master's degree in Business
Administration of Rift Valley University
Supervisor: Mr. Ziyad Argaw Directorate of HRM
Signature …………………… Date ……………………….

4. DEDICATION
I dedicated this thesis report to the almighty ALLAH who gave me the strength and patience I
have completed the report. Also I devote it to my parents for their moral and material support
through my life.

5. ACKNOWLEDGEMENT
First, I thank to Allah who deserves to be thanked at any time and every condition in life. During
my research report, I enjoyed considerable support from so many groups who are very important
in my life, and they were really cooperative, knowledgeable, creative, and constant
encouragement.
Secondly, I would like to extend my sincere thanks to my honorable supervisor,
Dr.DebeleTezera for his guidance and kind support. I wish to express my gratitude to Faculty
Dean MBA & MSC. Merga Hirko, for his contribution and advice was instrumental in fruitfully
finalizing this report.
I would like to express my gratitude to lecturers of Rift Valley University whose names can't be
listed in here; but they will forever remain at our heart &our mind. Sincere thanks is due to my
family, my mother and father, brothers and Sisters for their constant financial and moral support
during my study for more than sixteen years, surely without them I wouldn't be able to reach this
stage.
It is my pleasure to wholehearted thank to my friends who were really the wings &the pillars to
completing my report. Finally, I offer my regards and blessing to all of those who supported me
during the completion of this report.

6. TABLE OF CONTENT
Pages
Approval sheet …………………………………………..…………………………………..….10
Acknowledgments…………..…………………………..…………………………………..…. 10
Table of Contents ……………………………………………………………………………….10
List of tables (if any) ……………………………………………………………………………1 0
List of Figures (if any) ………………………………………………………………………… 1 0
Chapter One
1. Introduction …………………………………………………………………………….. 10
1.1. Background …………………………………………………………………….. 10
1.2. Statement of the Problem ………………………………………………………. 10
Chapter Two
2. Literature Review ………………………………………………………………………. 10
2.1. Job Satisfaction ………………………………………………………………… 10
2.2. Job Satisfaction and Related Variables ………………………………………... 10
2.3. Motivational Factors and Reward Systems ……………….…………………….10
2.4. Working Environment and Competition ………………………………………..10
Chapter Three
3. Method …………………………………………………………………………………. 10
3.1. Research Design ………………………………………………………………... 10
3.2. Sample Technic ………………………………………………………………… 10
3.3. Sample Size Determination …………………………………………………….. 10
3.4. Methods of Data Collection ………………………………….………………… 10
3.4.1. Primary Data ……………………………………………………………….. 10
3.4.2. Secondary Data ……………………………………………………………..10
3.5. Instruments of Data Collection …………………………………………………10
3.6. Validity and Reliability ………………………………………………………… 10
3.6.1. Validity ………………………….…………………………………………. 10
Chapter Four
4. Results and Discussion ………………………………………………………………… 10
Chapter Five
5. Conclusion ……………………………………………………………………………... 10
5.1. Recommendation ……………………………………………………………… 10

7. Acronyms
Term Description
HPPPDSO Harari people regional state Public Procurement Service Office
Property Disposal
DC Data Center
DRC Data Recovery Center
PP Procurement Process
QCBS Quality Cost Based Selection
SFS&RD System Functional Specifications and Requirements
Document
PMS Process Management System
PDPMS Property Disposal Process Management System
PPMS Procurement Process Management System
EDMS Electronic Document Management System
PPDDMS Procurement and Property Disposal Database Management
System
WDMS Website Database Management System
IT Information Technology
PR Public Relation
PAN Personal Area Network
LAN Local Area Network
MAN Metropolitan Area Network
WAN Wide Area Network
IS Information System
ETB Ethiopian Birr

8. Abstract
Human resources are the most important among all the resources an organization owns. To retain
efficient and experienced workforce in an organization is very crucial in overall performance of
an organization. Motivated employees can help make an organization competitively more value
added and profitable. The present research report is an attempt to find out the major factors that
motivate employees and it tells what is the relationship among reward, recognition and
motivation while working within an organization. The data were collected from employees of
diverse type of organizations to gain wide representation of sectoral composition. In all, 25 self-
administered questionnaires were distributed among the employees of different sectors and they
returned 20 completed useable questionnaires for response rate of 95%. The participation in
survey was voluntary and confidentiality of responses was ensured. The statistical analysis
showed that different dimensions of work motivation and satisfaction are significantly correlated
and reward and recognition have great impact on motivation of the employees. Implications of
the study for managers and policy makers in the context of human resource practices have been
discussed. Limitations and guidelines for future research are also provided.
Keywords: Work motivation, Job satisfaction, Reward, Recognition

9. Chapter One
1. Introduction
Motivation is the drive of an individual to act and achieve. Psychology gives us different
rationales regarding the nature of motivation. In other words motivation is such a factor that
exerts a driving force on our actions and work that is an inner wish to make an effort. According
to Baron (1983, p. 123), motivation is an accumulation of different processes which influence
and direct our behavior to achieve some specific goal. It is such a dynamic in today’s
environment that explicitly creates and encompasses a positive impact on job. Within an
organization, the best performance is feasible with most committed employees that can only be
achieved through employee motivation. Kreitner and Kinicki (2004) assume that motivation
contains “those psychological processes that cause the arousal, direction and persistence of
voluntary actions that are goal directed.” Motivation depends on certain intrinsic, as well as,
extrinsic factors which in collaboration results in fully committed employees.
According to Broad (2007), tangible incentives are effective in increasing performance for task
not done before, to encourage “thinking smarter” and to support both quality and quantity to
achieve goals. Incentives, rewards and recognitions are the prime factors that impact on
employee motivation. As the employees engage in their working activities purposely for owns
sake then they will feel intrinsic motivation in their behaviors as their activities will essentially
be enjoyable and satisfactory (Vansteenkiste, 2005, p. 22). The factors like incentives and
rewards are the most preferred factors for employee motivation programs.
Job satisfaction describes how content an individual is with his or her job. The term defined as
circumstances combination of psychological, physical and environmental that cause an
employee to state his feeling on any tasks or events associated with. Locke (1976) and it can
also be defined as acceptance of goals, willingness to work hard and intention to stay with the
organization. Work has an economic aspect as well as mechanical aspect; it has also a
psychological aspect. The happier people are within their job, the more satisfied they are said
to be.
Job satisfaction is not the same as motivation, although it is clearly linked.
1

10. Job design aims to enhance job satisfaction and performance; methods include job rotation, job
enlargement and job enrichment. Other influences on satisfaction include the management style
and culture, employee involvement, empowerment and autonomous work groups. Job
satisfaction is a very important attribute which is frequently measured by organizations.
This paper is an attempt that focuses on how incentives, rewards and recognitions impact
employee motivation and their Job satisfactions of HPPPDS with a total population of more
than 45 Professional staffs.
1.1. Background
The Harari Peoples Regional State Public Procurement and Property Disposal Service office
is a service providers established by the Council of Ministers Regulation No. 184/2002 to
carry out Procurement of goods and services which are commonly used by public bodies as
well as those goods and services of similar nature and having national and regional strategic
significance in the desired quality and at fair prices attributable to the economies of scale
resulting from bulk purchase. In addition, to carry out the disposal of properties belonging to
public bodies, whose price is more than the estimated initial price of the goods to be decided
pursuant to the directive of the Bureau of Finance and Economic Development and the
disposal of which decided upon through sale, in an integrated and expeditious manner
against reasonable price. In fulfilling its mandate, PPPDSO is required to deliver high-
quality services to its internal and external clients. Its ability to do so depends on how well
relevant information and records which are needed to make decisions in pursuit of its
business objectives can be created, stored, retrieved, used and managed.
Well-managed and well-maintained archives and records allow the Public Procurement and
Property Disposal Service office to apply lessons learned, provide evidence of what has
been done and why certain decisions are made, ensure accountability and transparency of
actions and decisions taken over time, identify and manage records containing
administrative, legal and fiscal values, and provide a basis for research. Vital records are
also retained to ensure that, in the event of disaster.
2

11. The Office of the Public Procurement and Property Disposal Service seeks a firm or a
consultant with competent skills and expertise to Study ,Design, Development, Test and
Deployment Of The Electronic Document Management System (EDMS), website,
Procurement and Property Disposal Database Management System (PPDDMS) and
Procurement Process Management System (PPMS) & Property Disposal Process
Management System (PDPMS) Software that allows information to be captured, organized,
and stored, so that the information can be analyzed, reorganized, and reported in many
ways. DBMS Stores organizes and manages a large amount of information within a single
software application & manages data efficiently and allows users to access and perform
multiple tasks (searches data, updates, etc.) with ease. A DBMS includes facilities to define
data structures and their data elements, and a programming language to manipulate and
display the information.
1.2. Statement of the Problem
Harari Public Procurement and Property Disposal Service is the newest and the biggest
office in the region, having a wide procurement and disposing activities, which of more than
35 public sectors , with a greater transparency and accountability, to improve the
organizational performance effectively and efficiently in line with a better risk management
system adoption. In addition, the HPPPDSO also faces threats from a lack of encouragement
and motivation for employees. In fact, ever year 2005 EC - 2015 EC, over half million ETB
has been budgeted on training as part of commitment towards human resources
optimization. Multiple factors were found to be closely associated with the rapidly evolving
organizational management environment and demanding working environment which
significantly influence the level of need and job satisfaction of organizational employees.
Among others include motivational inspirations, supervision or leadership, working
environment, and competition. These developments are very important towards assisting
HPPPDSO towards catering better human recourse management strategies and thus helping
HPPPDSO retaining competence employees and therefore is able to achieve its vision to be
a best PPPDS Organization to the year 2020 EC.
3

12. In terms of outer motivation the Organization done a wonderful job by implementing BPR
the Job design has been satisfactory but in terms of its management and board members,
Financial & social Factor the HPPPDSO has poor Performance. Every fiscal year, budget &
salary step increment is not made for every permanent employees of HPPPDSO regardless
of their work performance. This leads to dissatisfaction to employee’s motivation to work
harder as well as the same kind of reward every year failed to motivate employees. Luck of
intrinsic reward directly linked to jobs cause dissatisfaction on jobs.
4

13. Chapter Two
2. Literature Review
2.1. Job Satisfaction
Over the year, some research has shown that job satisfaction causes job performance.
(Goodman, 2007). Job satisfaction is an integral part in human resources management.
By identifying factors influencing job satisfaction, the management especially human
resource department is able to provide necessary and meaningful information to make
intelligent decision for promoting employee’s job satisfaction level (Lambert et. al,
2001).
Job satisfaction has been defined as a set of favorable or unfavorable feeling with which
employees view their work. The feeling is very much associated with elements such as
attitude and behavioral intentions which can help managers to understand employee
relations to their jobs and to predict the effect on future behavior (Garman et. al., 2003).
Other theories assume that the interaction of variables such as task characteristics,
organizational characteristics and individual characteristics that influences job
satisfaction (Hoy and Miskel,1996) which will ultimately affect the quality of service
rendered (Fitzgerald et.al. 1994) Job satisfaction theories are categorized into content and
process theories (Gruenberg, 1979). Factors influencing job satisfaction were examined
by the content theory such as the Maslow Hierarchical of Needs (1954), Herzberg’s Two
Factors Theory (1959), and the Existence, Relatedness and Growth theory by Alderfer
(1969). The Herzberg Theory is concerned with two separate sets of condition which are
satisfier or motivator, and Dis-satisfier or hygiene factors which are incapable of
providing motivation or satisfaction. Satisfier includes the work itself, responsibility
achievement, recognition, advancement and growth while dis-satisfier includes working
position, interpersonal relationship, salary, status, job security, supervision, company
policy and personal life (Herzberg et. al, 1959).
5

14. The process theory examines the interaction process which job satisfaction derived
between variables such as expectations, needs and values. These include equity theory by
Adams (1963) which examines the individual beliefs on the fair treatment received by
them against their peers; Vroom’s (1964) theory that suggested alternative behaviors
were chosen by people based on their expectation that a particular behavior will lead to
one or more desired result; and Locke (1976) which believed that job satisfaction was
influenced by employee’s values such as achievement and sense of success from the job
as well as increase in salary, promotion opportunities and recognition which are non-job
related factors. A study by Schermerhornet. al (2011) listed four categories of factors
affecting job satisfaction including challenging jobs, equitable reward system including
salary and promotional opportunities, good colleagues’ relationships and conducive
working environments.Studies on employee’s job satisfactions are extensively
administered especially in the developed countries.
2.2. Job Satisfaction and Related Variables
According to Crossman and AbouZaki, (2003), the individual evaluates the situational
characteristics before commencement of employment, whereas situational occurrences
are evaluated afterwards. Overall satisfaction is a function of a combination of situational
characteristics and situational occurrences. The situational characteristics commonly
proposed as key factors in job satisfaction are: the work itself, pay, promotion,
supervision and co-workers, although other variables such as employee involvement and
organizational commitment may also have impact. Situational theories assume that job
satisfaction is influenced by the interaction of variables such as task characteristic,
organization characteristic and individual characteristic (Hoy and Miskel, 1996). Adam
and King (1996) stated that there are several aspects or factors of job satisfaction that
influence perception of overall job satisfaction such as career advancement opportunities,
communication ,management, reward and other. On the other hand, dissatisfaction will
bring negative effect to organization.
Organization with higher turnover and low compensation was the most common reason
given for dissatisfaction.
6

15. 2.3. Motivational Factors and Reward System
O’Reilly et. al (1980) have linked that both tasks and organizational reward contributed
to job satisfaction. Intrinsic reward directly linked to jobs such as interesting and
challenging work, variety and ability to use one’s skills are task rewards. Tangible
rewards which are visible to others such as salary, promotion and comfortable working
condition are organizational rewards. Thus job satisfaction is a function of a combination
of situational characteristics and situational occurrences. The situational characteristics
commonly proposed as key factors in job satisfaction are: the work itself, pay, promotion,
supervision and co-workers, although other variables such as employee involvement and
organization commitment (Crossman &AbouZaki 2003). Thus, the ability to achieve and
maintain high levels of motivation become a real challenge that can provide employees
with the strength to combat doubt, anxiety, and uncertainty (Quick and Nelson, 2009;
Stajkovic, 2006). The role of colleagues in addition further support the process of
enhancing motivation of employees at workplace. (WinnieMujah, et. al., 2011)
Compensation and benefits are important factors influencing employee retention.
The major reason people working is to have income in order to fulfill basic survival
needs such as food, clothing and shelter. Satisfaction through income earned further leads
to employee retention. Appelbaum (1991) states that many companies today identify
innovation strategies that are directly linked to improving organizational performance.
There are many approaches to incentive compensation such as cash, bonuses, stock
purchase and profit sharing. These can affect the worker performance as well as job
satisfaction which contribute to the worker productivity.
Money, benefits, and many different forms of compensation have been used to attract,
retain, and motivate employees and achieve organizational goals in the USA and around
the world (Barber and Bretz, 2000; Chiu et.
al., 2001; Tang et. al, 1998). The remuneration policy of a company may be used
specifically to retain top workers as well as win out over competitors who have high
executive turnover rates. Salary though might not inspire loyalty to an organization, is
usually the single most important factors for a person’s decision to join, stay or leave.
Ronan and Organt (1973) listed salary as main factors influencing job satisfaction.
7

16. 2.4. Working Environment and Competition
In this research report, working environment refers to facilities, interior design and
exterior design provided by company. Facilities are building, equipment and machinery
that are provided by company for business purpose. Beside that working environment
includes indoor and outdoor workplace. It is through the engagement of conducive work
environment that will influence service climate and eventually influence job satisfaction.
(Ram et. al, 2011).The creation of a good human relation activities is very much related
to the management of employment relationship (Lin et., 2008). With this establishment it
will further enhance the spirit of healthy competition within the firm (Andonova and
Zuleta, 2007).
8

17. CHAPTER THREE

18. 3. METHODS
This chapter of the study deals with the research design and methods. It includes the
research design, the approach, and source of data, instrument of data collection, population
and sampling procedures, validity and reliability, methods of data analysis and ethical
considerations.
3.1. The Research Design
The main objective of this research report is to examine and analyze the effect of reward on
the employee job satisfaction. The researcher used descriptive and explanatory research
method. The major advantage of using descriptive research design is that it provides a
relatively complete picture of what is occurring at a given time, based on this the study result
summarized by frequencies, percentages, means and standard deviations (Blumberg, 2005).
Explanatory design (correlation and regression analysis) concerned with test of the
relationship between independent and dependent variables, (Kothari, 2004).
3.2. Sampling Technique
In this research report the researcher employed simple random sampling for
questionnaires and purposive sampling for interview to select respondents. The
researcher used this sampling method because employees are available and this sampling
technique gives equal chance for all respondents to be included in the sample. A total of
45 employees were randomly selected from organization. The researcher randomly
selected managerial and other staffs working at HPPPDSO and distributed the
questionnaire for those staffs and purposive for interview respondents. The survey was
done on every employee from lower level employees to senior managerial level.
3.3. Sample Size Determination
The sample size 41 was determined on the base of sample size determination formula for
descriptive research report among 45 total employees of HPPPDSO. Here, in the
Research report, the information used in the formula by assuming 95% confidence level
and a sampling error of 0.05 and sampling size calculated by formula (Yamane, 1967)
9

19. n= N 1+Ne2 n= 41, 1+ 45 *(0.05)2
Where; N-Total number of population e2 -the desired level of precision
n=sample size
3.4. Method of Data Collection
In this mini research report, the researcher used both primary and secondary data as an input
of this research report. Primary sources include questionnaires and interview and secondary
sources include related articles, book reviews and/or scholarly journals, and academic
writings. For the sake of clarity and simplicity this research study was analyzed using both
qualitative and quantitative method of data analysis.
3.5.1 Primary Data
Primary data was obtained from employee of HPPPDSO through structured
Questionnaire and Interview which includes questions in retrieving data and current
status of reward affecting employee job satisfaction. These instruments were
preferred because it enables to secure information at a time.
3.5.2. Secondary Data
Secondary sources of data was obtained from review of published journals, related
articles, organization website, internal records, the internet and relevant documents
(documents related to the study) was extensively reviewed as references. Secondary data
was used because it increases understandings and importance of reward in employee‘s
job satisfaction. Secondary data benefited researchers in cost effeteness, the breadth and
depth in understanding of independent and dependent variables.
3.5. Instruments of Data Collection
Interview
The researcher was conducted an interview with semi-structured questions with director
general and HRM department head of the organization to seek insight on case
organization‘s reward practice and to support the data collected through questionnaire.
10

20. Questionnaire
Closed Structured Questionnaire was used in order to reach wide range of respondents so
that, acquire information to examine and explain the relationships between variables. A
different reward theory that has been presented on the literature review was used to
develop the questionnaire. The questions were framed using Likert‘s scale of
measurement ranging from strongly agree to strongly disagree (Strongly agree 1, Agree
2, neither agree nor disagree 3, Disagree 4 and Strongly Disagree 5.
3.6. Validity and Reliability
3.6.1.Validity
Validity was concerned with the degree to which the designed questionnaire and interview
items fairly and accurately represented the main variables (dependent and independent)
discussed in literature review. As stated earlier, the questionnaire was developed with due
care containing 37 items, out of which seven (7) were demographic items and 10 interview
question. Items in the questionnaire were prepared using a five point-Likert scale except
the demographic items. Experts in the field were consulted about the content of the
instruments, ambiguity of question items and their relevancy.
Table 3.1. Reliability Test
Reliability Statistics
Variables No. of Items in the Scale Cronbach's Alpha Result(a)
Pay 4 .709
Promotion 5 .709
Bonus 2 .906
Working condition 4 .710
Recognition 3 .922
Work freedom 3 .795
Sense of achievement 4 .773
Job satisfaction 5 .885
Total
scales
30 .924
11

21. CHAPTER FOUR
4. Results and Discussions
The objective of this study was to examine the effect of reward on employee job
satisfaction at Ethiopian wildlife conservation authority. In order to achieve the purpose of
the study, some basic questions regarding reward systems procedures and practices and its
implementation in the organization was assessed. The view of HPPPDSO employees
towards the present reward systems and its contribution towards effective performance, the
factors, associated to reward systems implementation, effect of HPPPDSO performance
and measures to be taken to address the problem of reward system in the organization.
When we came to study, the result of the descriptive statistics tells that above average of
respondents are dissatisfied by the current practice of pay and benefits, promotion,
recognition, sense of achievement, bonus, work freedom and working condition needs
improvement.
The Pearson‘s Product Moment Correlation Coefficient was computed for the purposes of
determining the relationships: the relationship between the different dimensions of the
reward variables and employee‘s job satisfaction and the relationship between rewards and
job satisfaction. Regarding the relationship of the identified dependent variable (sense of
achievement, recognition and work freedom) and the independent (pay, promotion, bonus,
working condition) variable job satisfaction their relationship using the coefficient of value,
it was found high degree of positive and statistically significant relationship between
independent and dependent variable. Both intrinsic reward variables and extrinsic variable
have high degree of positive relationship with job satisfaction of employees.
Most employees believe that the reward does not compensate or equitable to employees
‘performance result. Finally, the major findings of this research show that reward is
considered important factor for job satisfaction of HPPPDS employees.
The survey result shows that HPPPDS does not established strong reward system and
respondents stated reasons such as the organization reward system is not appropriate, in-
competitive pay package as compared to similar industries exist in the country.
12

22. According to the survey result obtained from HPPPDSO the majority of the respondents
are dissatisfied with the extrinsic and intrinsic reward provided by the organization to its
employees that there is inadequate and inappropriate provision of rewards to employees.
The main reason for this is lack of employee‘s participation, lack of accessing opportunity
for advancement, lack of management recognition etc.
According to the study result the relationship of the independent variables (working
condition and pay, bonus, recognition, work freedom sense of achievement) and
employees' job satisfaction (dependent variable), it was found positive and statistically
significant strong relationship between these independent and dependent variables.
In general, the study finding indicates that both extrinsic and intrinsic reward variables
have effect on the employee job satisfaction. The existence of best reward practice the
more employee job satisfaction and the higher the improvement of the organizations
performance.
13
CHAPTER FIVE
5. Conclusion
Based on the findings the following conclusions are made;
When it was started the study, the objective was to examine the effect of reward on
employee job satisfaction. The findings of the study showed that there were positive and
strong relationship between the independent and dependent variables. From the result of
the study, it is possible to conclude that both Intrinsic and Extrinsic rewards are important
factors for the satisfaction of employees of HPPPDSO. According to finding, most of the
respondents answered that they were not satisfied with the current reward in the
organization and it may lead them to look for a new job with better reward.
According to finding HPPPDSO has to reexamine its reward system and to modify it in
order to fulfill the needs of the employees for better satisfaction and output of them. In
spite of the reward scheme employed by the organization the survey result shows that

23. employees ‘high dissatisfaction in the organization.
According to finding, employees are not motivated with reward administration carried out
in the organization. The main reason for this is lack of employee‘s participation, lack of
accessing opportunity for advancement, lack of management recognition etc. from this one
can deduce that employees can have minimum sense of ownership over the organization
and can stay working until they can get other alternative job. Most employees believe that
the reward does not compensate or equitable to employees ‘performance result. Finally, the
major findings of this research show that reward is considered important factor for job
satisfaction of HPPPDS employees.
14

24. 5.1. Recommendation
The findings of the report helped the researcher to put an important recommendation. It
is clear that employment relationship has a mutual benefit for both employees and
employers, that is, reward and output, here is where reward comes on practice. Since the
outcome of this research proved that extrinsic and intrinsic reward is most motivating
factors of this specific organization employee, the case organization suggested giving
much emphasis to this reward scheme.
If the offered rewards are not competitive, it will be difficult to recruit and retain staffs
since potential employees can shift where the better reward exists and existing
employees tends to leave the organization seeking where the better reward is available.
Therefore, based on the findings the following recommendations have been forwarded:
Employees of the organization believe that the reward provided is insufficient, not fair
and equitable. To mitigate this problem, HPPPDSO has to set clear reward policy and
strategy, able to design a system of accountability for the employees who do not include
within planned activities, enable to implement the planned activities and report to top
level management positions.
HPPPDSO should create job satisfaction in the workplace by offering a positive work
environment. A positive working environment shows that the organization‘s willingness
to go the extra mile to provide employees ‘needs.
HPPPDSO was recommended to conduct constant satisfaction survey on semiannually
and annually basis on the satisfaction level of employees about the reward that they are
gained from the organization. Because the output enables the HPPPDSO to adjust it to
create best reward practices and works on it for those who need improvement.
15

25. Reference
 Armstrong, M (2012). Armstrong‘s Handbook of Human Resource Management Practice,
New York, NY: Koran Page Publishers.
 Armstrong, M (2010). Reward management: a handbook of remuneration strategy and
practice Third Edition London: Kogan
 Aziri B. (2011) Job Satisfaction: Literature review, Journal of Management research and
Practice, Vol. 3, issue 4, pp. 77-86
 Chepkwony. C.C (2014) The Relationship between rewards systems and job satisfaction: A
caseStudy at teacher‘s service commission-Kenya, European Journal of Business and
SocialSciences, Vol. 3, No.1, pp. 59-70
 Dalvi, M., &Ibrahim, H. (2013) Investigating the Effects of Reward on the Cooperation in
the Sale and Marketing Department from Managers‘ Perspective (Isfahan Food industries
Case Study) International Journal of Academic Research in Business and
SocialSciencesDon, H., John, W., Slocum. (2011) Organizational Behavior, 13th
editionUnited States of America: South-Western Cengage Learning.
 Derek, T. Laura, H., Stephen, T. 2008. Human Resource Management7th Edition England:
Prentice.
 Decenzo. A. D &Robbins. S.P. (2010), Fundamentals of Human Resource Management,
(10th
ed) U.S.A: Prentice Hall.
 Farah. L.B Size. S, Fakhrul. Z. (2014), Reward management and job satisfaction among
frontline Employees in hotel industry in Malaysia, Journal of Social and Behavioral
Sciences, Vol.144- pp 392 - 402

26. Appendix 1: QUESTIONNAIRE
Rift Valley University
Department of (MBA)
Questionnaire for Research entitled “The Effect of Reward on Employee Job satisfaction and
motivation in the case of HPPPDSO in partial fulfillment of the requirements for the award of Degree
in Master of Business Administration. The purpose of this min research report is purely academic and
respondents are assured that whatever information is provided it will be confidential.
Instruction
 Please put right mark (/) in front of your choice boxes that express your real opinion.
 There is no need to write your name.
I do appreciate your kind cooperation to fill this questionnaire in advance.
Iliyas Sufiyan Abdella
E-mail:iliyassufiyan@gmail.com
Tele: 0911403077
PART I. Demographic Information
1) Gender: Male 口Female [——[
2) Age: Below 25 Years 口25 to 35 Years口36 to 45 Years 口above 45 Years 口
3) Marital Status: Single □ Married O Divorced 口
Level of Education: Diploma I I First Degree I IMasters Degree |
Above Masters Degree 口Other, specify _______________
1) Work Experience in HPPPDSO: 1- 5 year □ 5-10 years 口above 10 years =
2) Your current position: Junior Expert 口senior Expert 口Director 口Other, specify ____________
3) Your Current salary earnings below Birr 3,000 □ from Birr 3,001-5000 口Birr 5,001 to
10,000 □ Above Birr 10,000 □
Part II: Question related to rewards

27. Please indicate whether you satisfied or dissatisfied with each statement on the spaces that
specify your choice from the options that range from 'strongly agree" to「'strongly disagree".
Each choice was identified by numbers ranged from 1 to 5.Note: 1- Strongly agree, 2- Agree 3-
Neither agree nor disagree, 4- Disagreed and 5- Strongly disagree
Item
No. Description
Level of satisfaction
Strongly
agree
(1)
Agree
(2)
Neither
agree
nor
disagree
(3)
Strongly
disagree
(5)
Pay
1 My pay is based on the amount of work I do
2 Higher salary and pay increase performance
3 My annual salary raise (increment) is satisfactory
4 The amount of pay that I receive is competitive with
similar jobs in the industry
Promotion
5 The Way promotion is given at HPPPDSO is job
performance based
6
HPPPDSO is giving priority for merit in promotion
decision
7 The opportunity for advancement on this job is
interesting
8 The HPPPDSO has a written promotion policy
9 All employees get a fair chance of being promoted

28. 1 2 3 4 5
Bonus
10
I receive bonus with respect to my effort
11
I am satisfied with the bonus that the HPPPDSO
provides
Working condition
12
The Physical surroundings where I work are secured
13 I am happy because I‘m working in a well-furnished
clean office
14 The HPPPDSO has guaranteed job security to its
employee
15 I receive Adequate resource on my work place
Recognition
16 I get credit for my work that I do
17 I receive adequate recognition for doing my job well
18 Employee gets feedback and recognition from their
supervisors
Work freedom
19 I have the chance to work alone on my job
20 I have freedom to use my own judgment
21 HPPPDSO let Employee participating on decision
making that concern them

29. Item
No. Description
Level of satisfaction
Strongly
agree
(1)
Agree
(2)
Neither
agree
nor
disagree
(3)
Disagree
(4)
Strongly
disagree
(5)
Jo b satisfaction
26 The organization reward policies and procedures are
put in to practice
27
My organization treat its employee in equitable
manner
28 I‘m working according to my qualification and skill
29 My organization value good performance than
seniority, status, loyalty
30 Overall I‘m satisfied with my current job
Appendix 2: Interview
1. Have you considered employee participation during the design of reward practice?
2. Have you conducted a survey with your organization employee about their feeling or attitude
toward reward practice and how significant for them, If you do how often?
3. Kindly list all extrinsic and intrinsic rewards your organization currently made available for
the employee?
4. Is the above mentioned rewards practices available for each employee in your organization?
5. How does your organization determine salary, bonus, pay raise?
6. Does the employee aware about reward packages?
7. Can you say that the reward assignment is fair and equitable?
8. How does the reward in your organization affecting your employee motivation level?
9. What form of intrinsic reward systems do you use in HPPPDSO?
10. What form of extrinsic reward systems do you use in HPPPDSO?