Effects of Reward Policy on the Performance of Employees of Humanitarian organization: The Case of Hope International Ethiopia, Addis Ababa

Abstract

The human resource of any given organization is a determinant of its success or failure. The success of an organization comes in with the performance of its workforce and with sustained financial status. Humanitarian organizations play a significant role in society. A proper human resource (HR) policy in the humanitarian organizations helps it in achieving organizational goals in terms of recruiting the right people, training and developing them, rewarding employees based on performance and making sure there is equal opportunity in the organization. The policy also facilitates a fair reward system that motivates employees to help the organizations meet its goal thereby addressing the societal needs. Most Humanitarian organizations have the policy to guide them achieve their goal but there has been a challenge in terms of following through and implementing HR Policies. The study, sought to determine the effects of reward policy on the performance of employees of Hope International Ethiopia, Addis Ababa. The scope of the study was the head-quarter of Hope Ethiopia, which is located in the capital city Addis Ababa. The study adopted a descriptive research design using a target population of 50 employees. Data was collected by use of a questionnaire and analyzed through regression analysis and ANOVA. The results showed significant relationship between reward policy and employee performance at 0.01 percent level of significance. The employees affirmed that the reward policy is fair and transparent. The study recommended a broader review of reward policy for it to be more effective in motivating employees at Hope International for the purpose of attaining a positive employee performance. The study further recommended clear communication of salary scales and grades so that employees in each job grade knew what is expected of them to move to the higher level.