The impact of rewards on employee performance in organisations : a case study of Kampala Capital City Authority

Abstract

The study focused on examining “The impact of rewards on employee performance in organizations: A case study of Kampala Capital City Authority” The objectives of the study were to: identify the reward systems currently used at Kampala Capital City Authority, establish the effect of extrinsic rewards on performance of employees at Kampala Capital City Authority, and assess the effect of intrinsic rewards on performance of employees at Kampala Capital City Authority. The study reviewed related literature which was later compared to findings in chapter four. The research used a survey design involving both qualitative and quantitative methods to collect data from respondents. The data collection tools used included interview for management and the questionnaires for employees. The data was presented, analyzed and interpreted using tables and percentages. Findings in chapter four revealed that the main reward system used at KCCA is performance Related Pay (PRP) reward and sometimes Team Based Reward systems on rare occasion when there is group or team assignment. Extrinsic rewards have a significant effect on the performance of employees at Kampala Capital City Authority and some are salary motivates employees and leads to job satisfaction and employees put all their effort in doing the work, Bonuses motivate employees to put in all activities and efforts during the year to achieve more, Tangible Gifts boost employees’ self-esteem and performance, good working conditions eliminate stress and negativity which boost the productivity of employees, promotion encourages employees to contribute all their efforts in order to gain the management’s trust and salary raise motivates employees in developing their skills and competence. The major effects of intrinsic reward on the employees’ performance are the well treated employees are more engaged with the work, involving the employees in decision making increases organizational commitment and goal achievement and recognition boosts employees’ selfesteem and happiness which will result into additional contributing efforts. Basing on the findings in chapter five, it is therefore recommended that Kampala Capital City Authority should put in place both intrinsic and extrinsic rewards in order to motivate their employees and enhance higher performances and more research about different rewards and initiate more rewards especially intrinsic rewards in order to get their employees committed to the organization such that great performances are achieved.