Department of Management

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45800

Department of Management

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Subject: search.filters.subject., Effectiveness,

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    A COMPARATIVE STUDY ON THE EFFECT OF INCENTIVE PACKAGES ON EMPLOYEE PERFORMANCE: INCASE OF SELECTED BRANCHES OF MICRO-FINANCE INSTITUTIONS IN WOLAITA ZONE
    (WOLKITE UNIVERSITY, 2020-05) ALEMAYEHU GALCHA
    Incentive packages are essential factor towards institutions’ achievements in terms of employee’s performance. The main purpose of this study was to examine and compare the effect of incentive package on the employee performance in selected branches of micro-finance institutions. The study employed descriptive and explanatory research design were gathering data from selected branches of micro finance institutions (MFIs) in Wolaita zone. The primary data were collected through questionnaire with likert 5 scales. Samples of 154 respondents were drawn from the population through proportional stratified random sampling technique. Descriptive statistics, Correlation of coefficients andmultipl eregression models were used to analyze the collected data by using SPSS version 20. The findings show that, Vision Fund MFI financial incentive packages have strong (r=.776; p<0.01) relationship with employee’s performance and non-financial incentive packages have moderate (r=.413; p<0.01) relationship with employee’s performance. Whereas, OmoMFI financial incentive packages have weak (r=.385; p>0.01) relationship with employee performance and non-financial incentive packages have moderate (r=.465; p<0.01)relationship with employee performance. Findings showed amongst others that there is strong positive correlation between incentive and employee performance, majority of selected branches of OMFI employees are largely dissatisfied with the incentives offered by the institution and that incentive package is not the most important determinants of employee performance in selected branches of Omo MFI. Therefore to improve employee’s performance and satisfaction, the researcher recommended that the top management of MFIs especiallyOmo MFI should adopt both financial and non-financial incentive packages seek and obtain feedback on how employees perceive incentives and develop a sound retention and satisfaction mechanisms