Influence of Incentives and Rewards on Employee Performance in Selected Public Institutions in Rwanda

Abstract

The purpose of this study was to examine the influence of rewards and incentives on employee performance in public institutions in Rwanda.The study was anchored on human capital theory and supported by agency theory.The study adopted a descriptive research design to establish the problem that is under investigation.It was appropriate because it explored and described the relationship between variables in their natural setting without manipulating them.The target population of the study was 4 Public Institutions located in Kigali Rwanda.Purposive sampling technique was adopted to select the sample of the study.Structured questionnaires were instruments of data collection due to their effectiveness of capturing respondent information in a structured manner and the opportunity of respondents giving their views freely without interference from the researchers.Primary data was collected using questionnaires and interviews while secondary data was collected through review of relevant literature.The questionnaires were coded and edited for completeness and consistency and entered into Statistical Package for Social Sciences (SPSS version 21).Analysis involved descriptive statistics and inferential analysis.Descriptive analysis technique gave simple summaries about the sample data in quantitative descriptions and included, mean, standard deviation, frequencies and percentages.Inferential statistics were used to determine the relationships and significance between independent and dependent variable.Correlation and linear regression were used to analyze the data with F-test being applied to the test hypothesis at 5% level of significance.Content analysis was used for the qualitative data.The data was presented using tables, graphs and charts.The study found that incentives and rewards had a positive significant influence on employee performance in Selected Public Institutions in Rwanda.In addition, positive significant relationship was found between recognition schemes on employee performance in Selected Public Institutions in Rwanda.All the sub variables had factor values more than 0.5 and therefore they were accepted and thus recommended the policy makers to formulate policies than embrace reward systems that could be implemented by existing banks to give them a competitive advantage and for the new banks in setting structures that support employee performance.Rewarded employees are strongly enthusiastic about their work and function as a critical source of inspiration for others.Rewards systems are critical for and important elements in the success of organizations.

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