An assessment of the effectiveness of performance based reward systems on employee performance at the Motor Vehicle Accident Fund in Namibia
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
University of Namibia
Abstract
Employees are rightly regarded as the most valuable assets in an organisation. In
businesses, compensation is a critical issue that administrators, particularly human
resource managers, must properly manage. The MVA Fund introduced the rewards and
recognition policy and Performance Management Policy in 2015 and 2016 respectively.
A mixed methods approach consisting of both interpretivist, and positivist approaches
was imperative for this study as it also allowed the researcher to gain a deeper
understating of the research problem. During the quantitative phase of this study, a
survey in this research included a sample selected from managerial and non-managerial
employees at the MVA Fund Headquarters in Windhoek by use of questionnaires in
order to determine their perceptions on the effectiveness of performance-based reward
systems on their performance. The qualitative made use of a case study by means of
interviews. Descriptive data analysis was performed, to analyse the demographics of
respondents who showed a youthful population, with 71 percent females and 79 percent
being general employees. 51 percent worked for 6 to years and 32 percent possessed
master’s degrees. Analysis of quantitative and qualitative results under literature control
indicate that extrinsic rewards comprising of Salary increase, Bonuses, Commission,
Supervision, Employee motivation, Employee commitment and Employee satisfaction
have a positive effect on employee performance. The correlation coefficient is at r=
0.329, indicating a positive but weak correlation between Employee performance and
Supervision of employees. Correlation between Employee performance and intrinsic
rewards are all significant with P values less than 0.05, for all the seven variables the
two tailed Significant value is p= 0.0000, meaning that we reject H0, concluding that
there is a significant relationship between intrinsic rewards and employee performance.
Results from focus group interviews also confirmed that there is a positive and strong
relationship between performance-based rewards and employee performance. The study
recommends that employee participatory decision making should be encouraged, also
ii
that there should be an improvement in leadership behavior and the work environment to
keep career development
Description
A thesis submitted in partial fulfilment of the requirements for the degree of master in business administration management strategy
Keywords
Employee performance, Performance based reward systems, Motor Vehicle Accident Fund, Namibia