Abstract Reward and compensation on team performance By Baguma Stephen Bachelor of business Administration: (Accounting option) The purpose of the study was to determine the relationship between the effects of reward and compensation on team performance in organizations especially BUDICO. In chapter one the researcher covered the background the study, stated the problem statement, the scope of the study and finally the signification of the study. In chapter two, the researcher initially started by defining reward and compensation and team performance as defined by different authors. She went ahead to explain the reward and compensation systems, effects and characteristics of teams and strategies of reward and compensation 'on team performance in BUDICO. In chapter three, the researcher provided information on the instruments used in collecting data. She showed the study population and sample size, and sampling design and procedure, mentioned both primary and secondary collection methods used and how data was analyzed, processed and presented including the limitations of the study. In chapter four, the researcher presented the findings of BUDICO where she showed how the questionnaire were administered' and analyzed. Discussions of these findings were presented accordingly following researcher objectives. The researcher used tables, frequencies and percentages. The last chapter, the researcher summarized the findings and drew the conclusions from these findings and also provided recommendations to organizations under the study and other related organizations.