Reward Systems and Employee Performance in Local Governments of Uganda. Case Study Masaka Municipal Council

Abstract

The purpose of this study was to establish the relationship between reward systems and Employee Performance in Local governments of Uganda with particular reference to Masaka Municipal Council. Reward Systems was taken as the independent variable and employee performance was taken as the dependent variable for the study. The study specifically examined the relationship between salary and employee performance; the relationship between job security and employee performance and; investigated the relationship between job enrichment and employee performance at Masaka Municipal Council (MMC).

The study adopted a case study design to collect quantitative data using a closed questionnaire from a total of 97 employees of Masaka Municipal Council selected from a total population of 130. The collected data was analyzed using a software statistical package for Social Research (SPSS). Pearson correlation and regression analyses were employed to measure the degree of strength of between reward systems and employee performance and findings revealed a positive relationship between salary and employee performance as exhibited by correlation coefficient of 0.369 significant but weak relationship at 0.01. Job security had a positive but weak relationship with employee performance with Pearson correlation coefficient of 0.251 significant at 0.05 implying that job security has less influence on performance. The study further revealed that there is a high positive relationship between job enrichment and employee performance Pearson correlation coefficient of 0.410 significant at 0.01 implying that the variable of job enrichment has a higher influence on employee performance. Findings further revealed that job enrichment contributed heavily to Employee performance with a beta value of 0.289 followed by Salary at 0.217 while Job security contributed negatively to employee performance with a beta value of -0.029.

The study recommended that in order to attain high levels of performance, management should continuously prioritize job enrichment matched with a reasonable salary. On the other hand, management should disregard job security of employees and instead concentrate on short term contracts with emphasis on renewal on satisfactory performance if it is to get results from staff as a way of improving service delivery in local governments.

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