Reward Management and Employee Commitment in Commercial banks in Uganda: A case of Stanbic bank Uganda (SBU)

Abstract

This study investigated the effects of reward management on employee commitment in commercial banks specifically at Stanbic Bank Uganda Limited. Specifically the study instigated effects of extrinsic rewards and intrinsic rewards on employee commitment in commercial banks in Uganda, a case of Stanbic Bank Uganda Limited. The study was based on Adams Equity Theory of (1963) where it was noted that employees are always seeking for equity and fairness between what they bring into the organization and what they get out in terms of rewards against the perceived inputs and rewards given to other employees. The research design was crosssectional and was analyzed both qualitatively and quantitatively. Collection of data was done using the interview guide and Questionnaires. The study population was 220 employees of which a sample of 136 elements was selected using both simple random sampling and purposive random sampling selected out of which 118 respondents attended to the research which accounted for 86.8% response rate. I used a Statistical package for social sciences (SPSS) version 19 to analyse collected data. The Pearson Product Moment Correlation technique was used to assess relationship between the two variables and the regression analysis technique was employed to assess the magnitude of the relationship. The findings of the study revealed that both Extrinsic and Intrinsic rewards have got a significant effect on employee commitment. The study recommended that policy makers need to increase on the salaries offered to staff and to broaden on the Extrinsic rewards offered to staff especially the other benefits offered for example housing allowance, transport and that staff are given option to choose their medical insurance service provider instead of offering them one option . Management should also ensure that Bonus payment is equitably distributed among staff and that this reward policy is communicated to all staff within the organization. Future studies can be carried out on the effectiveness of the process of designing and implementation of these rewards.( to add findings)