Extrinsic Rewards and Employee Performance Case Study: Crown Beverages Limited

Abstract

The study focused on the effect of extrinsic rewards on employee performance. The study established how fringe benefits affects employee performance, the effect of physical working conditions on employee and the effect of bonuses on employee performance. Effective extrinsic rewarding is a major concern for businesses and clearly impacts on the performance in terms of productivity levels. In an organization where extrinsic rewards given to employees do not match their inputs,employee performance has been found lacking in aspects of timeliness, productivity levels and their quality of customer services and this negatively impacts on profit levels of the organization. The study is a case study design that focused on Crown beverages Uganda. The population of the study was 542, respondents and the sample size was 226 though actual participants were 182. The study used both qualitative and quantitative research approaches for data collection and revealed a positive moderate weak relationship between fringe benefits and employee performance of 0.418. The study also revealed a positive moderate weak low relationship between physical working conditions and employee performance of 0.315 and a positive moderate relationship between bonus and employee performance of 0.572. The findings conclude that extrinsic rewards play a very considerable role in boosting employees’ performance. Extrinsic rewards like fringe benefits, bonuses, and physical working conditions help employees to work life balance and employees feel that they are treated fairly in the organization and their feeling of fairness increases and these key factors increase employees’ performance. Employees are moderately rewarded with salaries as payment on the job but still they are required to furnish them with more extrinsic rewards like bonuses, fringe benefits and better physical working conditions to increase their performance levels. On that note, the study recommends that organization should continue providing security benefits to all employees, as it positively influences employee performance and raise overall performance in all departments.Organizations should make attractive extrinsic rewards procedures and policies which help employees in work life balance and also increase in their feeling of fairness.Thishelps them create a sense of loyalty and encourage their good performance.

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