ISSN: 2222-6990
Open access
The purpose of this study was to examine the influence of rewards and incentives on employee performance in public institutions in Rwanda. The study was anchored on human capital theory and supported by agency theory. The study adopted a descriptive research design to establish the problem that is under investigation. It was appropriate because it explored and described the relationship between variables in their natural setting without manipulating them. The target population of the study was 4 Public Institutions located in Kigali Rwanda. Purposive sampling technique was adopted to select the sample of the study. Structured questionnaires were instruments of data collection due to their effectiveness of capturing respondent information in a structured manner and the opportunity of respondents giving their views freely without interference from the researchers. Primary data was collected using questionnaires and interviews while secondary data was collected through review of relevant literature. The questionnaires were coded and edited for completeness and consistency and entered into Statistical Package for Social Sciences (SPSS version 21). Analysis involved descriptive statistics and inferential analysis. Descriptive analysis technique gave simple summaries about the sample data in quantitative descriptions and included, mean, standard deviation, frequencies and percentages. Inferential statistics were used to determine the relationships and significance between independent and dependent variable. Correlation and linear regression were used to analyze the data with F-test being applied to the test hypothesis at 5% level of significance. Content analysis was used for the qualitative data. The data was presented using tables, graphs and charts. The study found that incentives and rewards had a positive significant influence on employee performance in Selected Public Institutions in Rwanda. In addition, positive significant relationship was found between recognition schemes on employee performance in Selected Public Institutions in Rwanda. All the sub variables had factor values more than 0.5 and therefore they were accepted and thus no sub variable was dropped. Specifically, the respondent agreed that every employee in their organization regardless of performance are all praised of performance (M=3.961, SD=1.476) and that their organization gives them incentives that motivates them to work hard (M=3.948, SD=1.263). The findings also showed that the respondents agreed that top management in their organization thanks employees whenever they perform well (M=3.915, SD=1.343); when their organization makes profit at the end of the year, they share it and this motivates them to work (M=3.863, SD=1.326); and that every year best performers in their organization get certificates of achievement (M=3.836, SD=1.22). The coefficient of determination R Square is 0.248 and R is 0.498 at 0.01 significance level. The model shows that Incentives and Rewards explain 24.8% of the variation in employee performance. This implied that there exists a positive significant relationship between Incentives and Rewards and employee performance. Based on the findings, the study concluded that when it comes to incentives and rewards, employees feel valued by their organization and thus work extra hard to enhance their performance, in order to be rewarded more. When employees are rewarded according to their qualifications and performance, they get satisfied with their job. This can be exhibited through low labor turnout and less absenteeism amongst employees. The study recommended the policy makers to formulate policies than embrace reward systems that could be implemented by existing banks to give them a competitive advantage and for the new banks in setting structures that support employee performance. Rewarded employees are strongly enthusiastic about their work and function as a critical source of inspiration for others. Rewards systems are critical for and important elements in the success of organizations.
Abdullah, A. (2014). The impact of affective human resources management practices on
the financial performance of the Saudi Banks. Review of Integrative Business & Economics Research, 3(1), 327-336.
Afzal, T. (2013). Effect of human resource planning on organizational performance of
Telecom Institutions. Journal of Information and Knowledge Management, 3(34- 65).
Aktar, S., Sachu, M. K., and Ali, E. (2012). The Impact of Rewards on Employee Performance in Commercial Banks of Bangladesh: An Empirical Study. Journal of Business and Management, 6(2), 9-15.
Aktar, S., Sachu, M. K., and Emran, A. (2012). The Impact of Rewards on Employee Performance in Commercial Banks of Bangladesh: An Empirical Study. Journal of Business and Management, 6(2), 9-15.
Marwan, Al-N. (2012). Relationship between incentives and organizational performance for employees in the Jordanian Universities. International Journal of Business and Management, 7(1), 78-89.
Amaoka, T. (2013). Staff Training Programs as Key ingredients to improving skill base at workplace, Research Journal of Applied Sciences and Innovation, 5(17), 26- 80.
Apiah, G. (2013). Strategic influence of job performance on Industry performance in the pharmaceutical industry. An international journal of Management, 11(3), 110-159.
Armstrong, M. (2012). Handbook of Human Resource Management practice, (12th edns.). UK: Ashford Color Press.
Bal, Y., Bozkurt, S., & Ertemsir, E. (2012). The importance of using human resources information systems (HRIS) and a research on determining the success of HRIS. A paper presented at Management, Knowledge and Learning International Conference
Baloch, F. (2014). The Impact of Compensation, Training and Performance Evaluation on Employee Performance. International Journal of Social Sciences Management and Entrepreneurship, 2(2), 49-77.
Bernadian, H. (2008). Human Resource management. An experimental Approach, (Chapter 13). New York: McGraw Hill.
Bryman, A. (2011). Social Research Methods. New York: Oxford Publishers
Bryman, A., & Bell, E. (2009). Business Research Methods. Oxford: Oxford University Press.
Burns, J. M. (2008). Leadership. New York, NY: Harper & Row.
Burns, R. A., & Burns, R. (2012). Business Research Methods and Statistics using SPSS. London: Sage Publications Ltd
Caligiuri, P., Lepak, D., and Bonache, J. (2010). Global Dimensions of Human Resources Management: Managing the Global Workforce, Hoboken, NJ: John Wiley & Sons, Inc
Caragan, T. (2009). Professional HRM practices in family owned- managed enterprises. Rotterdam: EIM and Erasmus University
Chebet, J. (2015). Determinants of employees’ performance in the County Governments of Kenya; a case of Bungoma County. Unpublished MBA Project. Nairobi: University of Nairobi.
Cheruiyot, P. K., & Kwasira, J. (2013). Challenges of devolving Human Resource Function in Kenya: A case study of Nakuru County; Proceedings of JKUAT SHRD Research Conference.
Cole, G. A. (2008). Personnel and Human Resource Management, (5th ed). United Kingdom: Thomas Rennie Press.
Cooper, D., & Schindler, P. (2011). Business Research Methods. New York: McGraw Hill.
Cronbach, L. J. (1990). Essentials of Psychological Testing, 5th Ed. New York.
Cummings, T. G., &Worley, C. G. (2009). Organizational Development and change, (9thedns). Ohio: South Western College, Publishing.
Danish, R. Q., & Usman, A. (2010). Impact of Reward and Recognition on Job Satisfaction and Motivation. An empirical study from Pakistan. International Journal of Business and Management, 5, 159-167
Dauda, Y. A., Akingbade, W. A., & Akinlabi, H. B. (2010). Strategic human resource management practice and corporate performance of Small Business Enterprises in Lagos Metropolis International Journal of Business Management, 5(11), 97-105
Deb, T. (2008). Performance Appraisal and Management. New Delhi: Excel Books.
Dessler, G. (2011). Human Resource Management. (11th Ed). Essex: Pearson Education Limited
Dessler, G. (2013). Human resource management. (13th Ed.). Essex: Pearson Education Limited.
Domfeh, R. O. (2012). An Examination of the Effects of Employee Retention Strategies on the Performance of Selected Rural Banks in Ashanti Region. Unpublished Master Thesis, Ghana: Kwame Nkrumah University of Science and Technology.
Dutta, K., & Dutta, A. (2009). Customer Expectations and Perceptions across the Indian Banking Industry and the Resultant Financial Implications. Journal of Services Research, 9(1) 31-49.
Emmanuel, C. R., Kominis , G., and Slapnicar, S. (2014). The effect of intrinsic and extrinsic rewards on the perceptions of middle level managers. Research executive summaries series, 4(4), 1-7.
Flamholtz, E., and Randle, Y. (2011). Corporate culture: The Ultimate Strategic asset. Palo Alto, CA: Stanford Business Book.
Forson, J. E. (2012). Impact of motivation on the productivity of employees at g-Gtbank
Ghana
Ghansah, E. (2011). The role of employee retention on job performance. Unpublished PhD
Thesis, Ghana: Kwame Nkrumah University of Science and Technology.
Ghazala, I., & Habib, J. (2012). Business and Management. Journal of Business and
Management, 3(6), 06-13.
Grant, R. M. (2012). The Resource Based Competitive Advantage, Implications for Strategy
Formulation. MN: West.
Guest, D .E. (2011). Human resource management and performance: still searching for
some answers. Human Resource Management Journal, 21(1), 3-13.
Habbash, M. (2010). The effectiveness of corporate governance and external audit on
constraining earnings management practice in the UK. Unpublished PhD thesis, Durham: Durham University.
Haile, G. (2009). Workplace Job Satisfaction in Britain: Evidence from Linked Employer-
Employee Data, Discussion Paper Series, For schungsinstitut zur Zukunft der Arbei Institute for the Study of Labor.
Hall, M., & Purcell, J. (2013). Promoting effective consultation? Assessing the impact of
the ICE Regulations. British Journal of Industrial Relations, 51(2), 355-381.
Hartman, D. (2011), Types of finance, rewards and incentives ehow money.www. e How
money,com
Hassan, J. K. (2013). Human resource planning practice in management human resources.
International Journal of Human Resource Studies, 3(34-47).
Helfat, C., & Prahalad, G. (2009), ‘Know-how and asset complementarity and dynamic
capability accumulation: the case of R&D’, Strategic Management Journal, 18, 339-360.
Herzberg, F. (1959), the Motivation to Work, New York, John Wiley and Sons, 195
International (p) limited publishers
Hewitt, A. (2009). Managing Performance with incentive compensation. Journal of
Personnel Management,7(1); 20-31
Huselid, M., & Becker, A. (2011). Human Resource Management Practices and Employee
Performance. Journal of Business Management, 36(3), 345- 445.
Ismail, I., & Jordan, J. (2015). Relationship between Compensation and performance. An
empirical Study on Employee performance in the context of Nigeria workers. Journal of Management and Business, 4(1), 34-49
Jassel, J. S. (2012). Strategic Human Resource Management in Malaysian Hotels:
Foundation and Implementation challenges. Unpublished PhD Thesis. Newcastle: Newcastle Business School.
Kavoo-Linge, T., & Kiruri, J. (2013). The effect of placement practices on employee
performance in small service firms in the information technology Institutions in Kenya. International Journal of Business and Social Science, 4(15), 213- 219.
Khalid, M. M., Rehman, C. A., & Ilyas, M. (2014). HRM Practices and Employee
Performance in Public Institutions Organizations in Pakistan: An Empirical study. International Journal of Management Sciences and Business Research, 3(2), 69.
Khan, I., Shahid, M., and Nawab, S. (2013). Influence of Intrinsic and Extrinsic Rewards on Employee Performance: The Banking Instituions of Pakistan. Academic Research International, 4(1), 281-291.
Khan, S., Zari, T., and Khan, B. (2011). Effects of Recognition-based Rewards on Employees' Efficiency and Effectiveness. Journal of Management and Social Sciences, 7(2), 01-07.
Kieselbach, T., Armgarth, E., Bagnara, S., Elo, A-L., Jefferys, S., Joling, C., &
Widerszal-Bazyl, M. (2009). Health in Restructuring: Innovative Approaches and
Policy Recommendations. München, Mering: Rainer Hamper Verlag.
Kombo, D. K., & Tromp, D. L. (2011). Proposal and Thesis Writing; An Introduction.
Nairobi: Pauline’s Publications Africa.
Kothari, C. R. (2011). Research Methodology; Methods and Techniques. New Delhi: New
Age International Publishers.
Kothari, C. R. (2004). Research Methodology: Methods and Techniques, New Delhi: New
age International, Pp.31-52
Lamba, S., & Choudhary, N. (2013). Impact of HRM practices on organizational
commitment of employees. International Journal of Advancements in Research and Technology, 2(4), 407-423.
Lee and Chuang. (2009). The Impact of Leadership Styles on Job Stress and Turnover Intention: Taiwan Insurance Industry as an Example.
Ligare, H. (2010). Strategic human resource management practices by the state
corporations in Kenya. Unpublished MBA Project, Nairobi: University of Nairobi.
Maina, S. K. (2009). The Effects of Compensation Factors on Performance of Employees
in Tertiary Training Institutions in Nyeri districts. Published Paper. Nairobi: Kenyatta University.
Maroko, V. M., & Maundu, J. F. (2015). Influence of compensations on Performance
Nongovernmental Organizations in Kenya. Unpublished MBA Thesis, Juja: Jomo Kenyatta University of Agriculture and Technology.
MoragwaI, O. (2013). Determinants of Compensation Systems among Commercial Banks
in Kenya. Published Journal Article, (13), 33-24.
Mugenda, O. M., & Mugenda, A. G. (2008). Research methods: Quantitative and
qualitative approaches. Nairobi-Kenya: Acts Press.
Mugenda, O. M., & Mugenda, A. G. (2013). Research methods. Nairobi: McMillan
Publishers.
Muogbo, U. S. (2013). The impact of employee motivation on organizational performance
(a study of some selected firms in anambra state nigeria). The international journal of engineering and science, 2(7), 70-80.
Murphy, B. (2015). The impact of reward systems on employee performance . Unpublished Master Thesis, Baez, Barbara Irene Palleros: Dublin Business School.
Namusonge, G. S., Kabare, K., & Kagwiria, R. (2014). Effect of talent retention on
organization performance in companies listed in Nairobi securities exchange in Kenya. European Journal of Business and Social Sciences, 3(1), 47-58
Ndumbaro, F. (2013). Contribution of product differentiation strategy on sales performance in banking industry in Tanzania; International Journal of Industrial Organization, 13: 593-611.
Nelson, B. (2012). 1501 Ways to Reward Employees. New York: Workman Pub.
Octavian, C., Gheorghe, N., Adriana, V., & Raluca, C. (2012). Concept of Performance in
Business Organizations – Case study on the employee performance in Romanian Business Organizations. Published International Paper. Romania University
Omotayo, F. O. (2015). Talent Retention and Organizational Performance: A Competitive
Positioning in Nigerian Banking Instituions . International Journal Article, 4(12-24)
Osibanjo, A. O., Abiodun, A. J., & Fadugba, A. O. (2012). Executive Perception of the
Impact of Flexitime on Organisational Performamce: Evidence from the Nigerai Private Instituions , International Journal of Applied Behavioural Economics (IJABE). Vol.1(3)
Oso, W., & Onen, D. (2011). A General Guide to Writing Research Proposal and Report;
Handbook for Beginning Researchers. Nairobi: Jomo Kenyatta Foundation.
Pate, J., Martin, G., & Staines, H. (2010). Exploring the relationship between psychological
contracts and organizational change: a process model and case study evidence. Strategic Change, 8, 481-93.
Pearce, L. (2010). Managerial Compensation Based on Organizational Performance.
Journal of Industrial Relation, 52; 3-28
Priya, U., and Eshwar, S. (2015). Rewards, Motivation and Job Satisfaction of Employees in Commercial Banks- An Investigative Analysis. International Journal of Academic Research in Business and Social Sciences, 4(4), 70-78.
Proper, K. I., Deeg, D. J., & Van der Beek, A. J. (2009). Challenges at Work and Financial
Rewards to stimulate longer workforce participation. Human Resources for Health Journal7,13pages
Resick, G. (2007). The Measurement of Antecedents of affective, Continuance and
normative commitment to the organization. Journal of Occupational Psychology, 63-68
Rizwan, Q. D., and Ali, U. (2010). Impact of reward and recognition on job satisfaction and
motivation. An empirical study from Pakistan. International journal of business and management.
Rehman, F., and Nawaz, T. (2016). Determining the Influence of Organizational Culture on Employee Performance: The Moderating Role of Self-Efficacy. European Journal of Business and Management, 8(4), 136-143.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students.
(5th Ed.). London: Prentice Hall.
Shikha, N. K., & Karishma, G. (2012). Human resource planning practices. Journal of
Business and Management, 3(6), 06-13.
Snelgar, R. J., Michell, R., & Danie, V. (2013). An empirical Study of Preferences of South
African Employees. A South African Journal of Human Resource Management, 11(1), 14-29.
Spanos, S., & Lioukas, E. (2011). The new human resource management: creating the
strategic business partnership, in Schuler, R., Jackson, S. (Eds), Strategic Human Resource Management, Oxford: Blackwell Publishers.
Stuart, M. (2011). The National Skills Development Handbook 2010/11. South Africa:
Rainbow.
Tessema, M. T., Ready, K., and Embaye, A. (2013). The Effects of Employee Recognition, Compensation, and Benefits on Job Satisfaction: Cross Country Evidence. Journal of Business and Economics, 4(1), 1-12.
Thuku, R. W., Abiero, I. O., and Juma, D. (2013). Influence of Organisational Culture on Employee Performance: A Case Study of East African Breweries Limited. International Journal of Science and Research, 14(6), 1500-1506.
Tumwine, J. (2014). Foundations of personnel/ Human Resources Management. Salaries
and piece rates. Journal of Business, 45-59.
Uddin, M. N., & Hamiduzzan, M. (2009). The philosophy of Science in Social Research.
The Journal of International Social Research, 2(6).
Uddin, M. J., and Luva, R. H. (2013). Impact of Organizational Culture on Employee Performance and Productivity: A Case Study of Telecommunication Instituions in Bangladesh. International Journal of Business and Management, 8(2), 66-73.
Uzman, J., & Daish, J. (2010). Empirical study on Impact of Reward and Recognition on
Job Satisfaction and Motivation. Karachi Based Service Organization. International Journal of Management Science, 2(1).
Wambui, Y. M. (2015). Relationship between strategic human resource practices and of
Government Parastatals in Kenya. Unpublished MBA Thesis. Juja: Jomo Kenyatta University of Agriculture and Technology.
Wanjala, M. W. (2015). Influence of Performance Appraisal on Employee Performance in Commercial Banks in Trans Nzoia County – Kenya. International Journal of Academic Research in Business and Social Sciences, 5(8), 332-342.
In-Text Citation: (Chrissy et al., 2022)
To Cite this Article: Chrissy, R., Namusonge, G., & Iravo, M. A. (2022). Influence of Incentives and Rewards on Employee Performance in Selected Public Institutions in Rwanda. International Journal of Academic Research in Business and Social Sciences. 12(7), 1964 – 1977.
Copyright: © 2022 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode