Rewards and Employee Motivation in Manufacturing Companies in Uganda at Parambot Brewaries Limited in Uganda

Abstract

The study was to assess the effect of rewards on employee motivation in manufacturing companies in Uganda, taking a case of Parambot Breweries Ltd. The specific objectives of the study were to examine the effect monetary rewards on employee motivation at Parambot Breweries Ltd (PBL) and to determine the effect of non-monetary rewards on employee motivation at Parambot Breweries Ltd. The study adopted case study design, using questionnaires, interviews and document reviews and studied a sample size of 80. Purposive and simple random sampling techniques were used to select the respondents. Qualitative data was analyzed using content analysis and quantitative analysis was analyzed using Pearson correlation and regression analysis. The study established that monetary rewards had a significant positive relationship (r = .692, p = .000) with employee motivation in manufacturing companies in Uganda. In addition, non-monetary rewards had a significant positive relationship (r = .685, p = .000) with employee motivation in manufacturing companies in Uganda. The study concluded that bonus was the only monetary reward that had strong positive relationship with employee motivation while praise was the only non-monetary reward that had strong positive relationship with employee motivation in manufacturing companies in Uganda. The study recommended that PBL management should adopt a policy of bonus to all employees offering in form of a 13th cheque every December, as incentive and ministry of labor should use the findings of this study to lobby parliament to enact bonus as a statutory monetary reward. Finally, PBL should use “Public Praise” as an integral part of performance management strategy to increase employee motivation.