The Effect of Extrinsic Reward Systems on Organizational Performance a Case Study of Centenary Bank

Abstract

The study focused on the effect of extrinsic rewards systems on Organizational performance and the major objective of this study was to establish the effect of extrinsic reward systems on organizational performance in Centenary Bank Namirembe Road branch. Specific objectives included: examining the contribution of promotions on organizational performance, assessing the role of bonuses on organizational performance and examining the relationship between pay rise as reward systems and organizational performance with dimensions such as productivity, profitability, quality. A case study was used to conduct the study with a sample size of 52 respondents, other various data collection instruments were also used in the study and these included; questionnaires and interview guides.

The findings revealed that there is a correlation between extrinsic reward systems with dimensions that include; promotion, bonuses and pay rise and the performance of the organizational. Basing on this study it was concluded that extrinsic reward systems strongly affect the organizational performance. The researcher therefore recommended that banks should emphasize the use of extrinsic reward schemes for the betterment of the organization.

Keywords: Extrinsic reward systems, organizational performance, promotions, bonuses, pay rise, productivity, profitability, quality.

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