ABSTRACT This study investigated the relationship between the impacts of reward system on employee performance at work. The objectives of the study were to establish the different systems of reward in Smart Telecom, to find factors responsible for employee performance at work and to assess the effects resulting from the systems used by the company when rewarding employees. The study used a quantitative and research design for the purpose of making valid conclusion. Quantitative design which is classified in two broad categories, that is; experimental and general survey design examined the impact of reward system on employee performance at workplace as interlinked variable whereas qualitative design involved the use of questions to obtained from the respondents. The sample comprised of 50 respondents and the study population ranged from the committee clerks, head of departments, especially from the Human Resource section and the entire workers within company both in different departments, then other authorized persons. Data was collected from both primary and secondary sources. Secondary data was got by extracting information regarding the effects of reward system on employee performance at workplace, by reading news papers, journals and text books. The study revealed that the reward systems used when it comes to company performance. Most of the respondents expressed that if Smart Telecom had a good working condition and employee performance spirit amongst the workers, there would be improved company performance. It was also noted that reward system affected company performance. One of the recommendations Nas that Smart Telecom should encourage employee performance as system which will Jut into consideration about the type of work an employee is doing, level of education, :he skills needed to execute such tasks among many. This will improve on the company performance.

TABLE OF CONTENTS

DECLARATION .....................................................................................................•.•.. ii

APPROVAL ............................................................................................................... iii

DEDICATION ........................................................................................................... iv

ACKNOWLEGEMENT ................................................................................................. v

TABLE OF CONTENTS .............................................................................................. vi

UST OF TABLES ..................................................................................................... viii

UST OF FIGURES .................................................................................................... ix

ABSTRACT ............................................................................................................... x

CHAPTER ONE .......................................................................................................... 1

INTRODUCTION ....................................................................................................... 1

1.0 Background to the study ..................................................................................... 1

1.3 Statement of the problem .................................................................................... 3

1.4 Purpose of the study ........................................................................................... 4

1.5 Objectives of the study ........................................................................................ 4

1.6 Research Questions ............................................................................................. 4

1.7 Scope of the study ...... : ...................................................................................... .4

1.7.1 Geographical scope .......................................................................................... 4

1.7.2 Content scope .................................................................................................. 4

1.7.3 Time Scope ...................................................................................................... 4

1.8 Significance of the study ...................................................................................... 5

1.8 Conceptual framework ......................................................................................... 6

CHAPTER TWO ......................................................................................................... 7

UTERATURE REVIEW ............................................................................................... 7

2.0 Introduction ........................................................................................................ 7

2.1 Theoretical frame work ........................................................................................ 7

2.2 Reward systems at work ...................................................................................... 9

2.3 Factors responsible for employee performance at work ....................................... 11

2.4 Impacts of using reward systems on employees .................................................. 13

CHAPTER THREE .................................................................................................... 15

METHODOLOGY ..................................................................................................... 15

3.0 Introduction ...................................................................................................... 15

3.1 Research design ................................................................................................ 15

3.2 Study population ............................................................................................... 15

3.3 Sample size ...................................................................................................... 15

3.4 Data collection methods .................................................................................... 16

3.4.1 Interviews ..................................................................................................... 16

3.4.2 Questionnaire ................................................................................................ 16

3.4.3 Observation ................................................................................................... 17

3.5 Reliability and validity ........................................................................................ 17

3.6 Procedure for data collection ............................................................................. 17

vi

3.7 Data analysis .................................................................................................... 17

3.7.1 Editing and spot checking ............................................................................... 17

3.7.2 Coding ........................................................................................................... 18

3.7.3 Frequency tabulation ...................................................................................... 18

3.8 Data analysis and presentation .......................................................................... 18

3. 9 Ethical considerations ........................................................................................ 18

3.10 Limitations of the study ................................................................................... 19

CHAPTER FOUR ...................................................................................................... 20

PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS ........................ 20

4.0 Introduction ...................................................................................................... 20

4.1 Background information .................................................................................... 20

4.1.1 Classification of respondents by age ................................................................ 20

4.1.2 Classification of respondents by sex ................................................................ 21

4.1.3 Education level of the respondents .................................................................. 21

4.1.4 Respondent's marital status ............................................................................ 22

4.2 Awareness of reward system in the company ...................................................... 22

4.2.1 Effects of reward system in relation to employee performance .......................... 23

4.2.2 Responses on the effects felt in the entire company or on individual basis ......... 24

4.3 Employee performance in the company .............................................................. 24

4.4 Relationship between reward system and employee performance ........................ 25

4.4.1 Company's objectives have been achieved as a result of employee performance 25

4.4.2 Positive attitude towards increased productivity is a result of employee

performance ........................................................................................................... 26

4.4.3 Standards of living among employees have improved as a result of employee

performance ........................................................................................................... 27

4.4.4 Reward systems used by Smart Telecom while paying employees ..................... 28

4.4.5 Reward systems used by Smart Telecom has saves time as reduced time wastage

on decision making ................................................................................................. 29

CHAPTER FIVE ....................................................................................................... 30

SUMMARY OF KEY FINDINGS, CONCLUSION AND RECOMMENDATIONS .................... 30

5.0 Introduction ...................................................................................................... 30

5.1 Summary of the key findings ............................................................................. 30

5.2 Conclusions ...................................................................................................... 31

5.3 Recommendations ............................................................................................. 31

5.4 Further Research Areas ..................................................................................... 32

REFERENCES .......................................................................................................... 33

APPENDIX I: QUESTIONAIRE .................................................................................. 36