Assessment of Reward Management Practices in Commercial Bank of Ethiopia In Selected Dire Dawa Branches

Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits (financial rewards). It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility. This study focused on assessment of reward management practices in commercial bank of Ethiopia and tried to assess the current reward management practices that the company is using to attract and retain employees focusing on employee’s perception. Data was collected through questionnaire. To undertake the research stratified sampling technique was applied and 134 questionnaires out of the distributed 134 questionnaires with a response rate of 100% were used. Respondent’s response based on equity, transparency, consistency and alignments as well as overall rating of reward management practices of the bank was used. The data was analyzed by using descriptive statistics including mean, frequency and standard deviation. Total reward system of the CBE is showed week as compare to other banks. Also the financial and non-financial reward of CBE seems to be poor. The bank has clear procedure on how to implement the reward policy the overall ratings of the respondents’ response regarding the general reward management practice of the bank showed disagreement. This paper recommended that the Bank should adopt clear reward procedure, knowledge building should be implemented continuously and the bank should work hard in order to reverse the existing adverse feelings of employees.