PERCEIVED EFFECT OF INCENTIVE PACKAGE ON EMPLOYEE PERFORMANCE IN SELECTED MANUFACTURING COMPANY IN GURAGE ZONE

Abstract

In the current competitive business environment, Manufacturing Company is facing a lot of challenges particularly getting the qualified employees and retaining them. The objective of this study was to investigate the perceived Effect of Incentive Package on employee performance in the Selected Manufacturing Company in Gurage Zone. Therefore, the study was intended to identify the perceived Effect of Incentive Package on employee performance in the Selected Manufacturing Company based on their importance, assess the role of Incentive Package, socio-demographics variables on employee performance. The study used mixed method approaches. A total of 300 employees selected and analyzed working in those companies, employees out of 309 respondents were participated in the study. Three Human resource managers and Three Supervisors were included as a sample through purposive sampling and others included through stratified random sampling technique. Questionnaire and interview were the main instruments of data collection. The analysis of the quantitative data was executed through descriptive and inferential statistical methods. Explanatory research is computed of variables to explain (31 items) and to interpret the results as well as to identify the underlying relationships between measured variables. A structure Likert Scale format questionnaire has been used for data collection. The data obtained were analyzed using (SPSS) version 23 program, descriptive analysis, normality test, reliability test, Multicollinearity test, Person’s Correlation and Multiple Liner Regression were conducted in order to interpret the data. As the regression analysis results revalue independent variables for Profit Sharing, Recognition, Working Conditions, and Training Opportunity exerted the greatest positive influence on level of achievement, that Salary and Insurance exerted a positive and statistically insignificant influence on level of achievement on employee performance. The results of this study conclude that higher the level of incentives package; better employees’ performance, commitment and loyalty towards their company Based on the finding the study recommends that the management of the company that improve more.