ASSESSMENT OF INCENTIVE PACKAGE ON EMPLOYEE

JOB PERFORMANCE: THE CASE OF ETHIO- TELECOM-

DEBERE MARKOS BRANCH

A RESEARCH PAPER SUBMMITED TO DEPARTMENT OF

MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIRMENTOF BA DEGREE IN MANAGEMENT

PREPARED BY: YILIKAL BELAY

ID NO: RU 0563/10

ADVISOR: MOHAMMED Y (MBA)

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

DECEMBER, 2020

JIMMA, EHTIOPIA

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 Acknowledgments
First and for most thanks and gratitude goes to God who created the heaven and the earth, and
also the sustainer of the whole universe. Without his will nothing could happen.

Next, my gratitude goes to my beloved senior essay advisor, Mohammed Y. (MBA) for his
tireless intellectual assistance in preparing this proposal.

Last but not least, my deepest gratitude goes to thank my family for their unlimited moral and
financial support.

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 Abstract

This study was aimed to analyze the assessment of incentive package on employee
job performance in jimma town, Ethio telecom- debre mrkosbranch. The
researcher used a descriptive type of research design. The data were collected
from primary source through questionnaires. The method of sampling this study
was census sampling technique and then the researcher takes all employees of the
organization. The data were collected through close-ended questions in the
questionnaire. And it was analyze and presented using quantitative data analyzing
technique. In addition it used qualitative technique. Based on the provided data the
study was summarized the finding and understood that the employee job
performance was affected by incentive packages. This is related with financial and
non-financial incentive packages. The organization has good performance in
financial incentive package and has a weak performance in non-financial incentive
package.Finally, the study was forwarded recommendation and suggestion based
on data collected and analyzed data that help it Ethio-Telecom debre markos
Branch to give Incentive and improve employee job performance.Generally, the
organization should increase its effort in both packages so as to improve the
performance of the employee and to achieve the goals of the organization.

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 Table of Contents
Content Page

Acknowledgments.......................................................................................................................................2
Abstract.......................................................................................................................................................3
Table of Contents……………………………………………………………………………………………………………………………………..

List of Tables…………………………………………………………………………………………………………………………………………….

CHAPTER ONE..............................................................................................................................................6
1. INTRODUCTION.......................................................................................................................................6
1.1 Background of the Study...................................................................................................................6
1.2. Statement of the problem................................................................................................................8
1.3. Basic Research Questions.................................................................................................................9
1.4. Objective of the study.......................................................................................................................9
1.4.1. General objective.......................................................................................................................9
1.4.2. Specific objectives......................................................................................................................9
1.5. Significance of the study...................................................................................................................9
1.6. Scope of the study..........................................................................................................................10
1.7. Limitation of the study....................................................................................................................10
1.8. Organization of the paper.............................................................................................................10
CHAPTER TWO...........................................................................................................................................11
2. LITERATURE REVIEW..............................................................................................................................11
2.1. THEORETICAL LITERATURE REVIEW................................................................................................11
2.1.1. Definition of incentive.............................................................................................................11
2.1.2. Types of incentive....................................................................................................................11
2.1.3. The Effective of Incentive in the Organizational Productivity..................................................13
2.1.4. Incentive Plan Administration..................................................................................................14
2.1.5. Benefits of Employee Performance.........................................................................................15
2.1.6. Guidelines of Creating an Effective Incentive Plan...................................................................16
2.2. Employee Performance..................................................................................................................17
2.2.1. Measures of Employee Performance.......................................................................................18

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 2.2.2. The Relationship of Incentive and Employee Performance.....................................................19
2.2.4. Empirical Review Related to the Study....................................................................................20
2.2.5. Conceptual Framework of Incentives......................................................................................22
CHAPTER THREE........................................................................................................................................25
3. RESEARCH DESIGN AND METHODOLOGY..............................................................................................25
3.1. Population and area of the study...................................................................................................25
3.2 Research design...............................................................................................................................25
3.3. Data Type and Source.....................................................................................................................26
3.4. sample size and sampling technique..............................................................................................26
3.5. Methods of Data Collection............................................................................................................26
3.6. Method of data analysis.................................................................................................................26
CHAPTER FOUR..........................................................................................................................................27
4. DATA ANALYSIS AND INTERPREATATION...............................................................................................27
4.1. INTRODUCTION..............................................................................................................................27
4.2. Personal Profile of the Respondents...............................................................................................27
4.2. Employees Attitude towards Salary of the Organization................................................................29
4.3. Incentive Benefits and Performance...............................................................................................30
4.5. Incentive or Benefits Implementation and Job...............................................................................33
4.6. The Impact of Incentive on Organization Performance..................................................................35
4.7. Employees Attitude towards Incentive Package of the Organization.............................................36
CHAPTER FIVE............................................................................................................................................38
CONCLUSION AND RECOMMENDATION...................................................................................................38
5. INTRODCUTION.....................................................................................................................................38
5.1. Conclusion......................................................................................................................................38
5.2. Recommendation...........................................................................................................................40
Appendix...................................................................................................................................................45

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x

List table

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 CHAPTER ONE

1. INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Incentive package is specifically designed to energize, direct or control employee’s behaviors.
This is influential because the amount paid is linked to certain pre-defined behaviors outcomes.
This package is based on units provides the clothes connection between individual effort or
performance and individual pay (Collins, et. al. 2008).

Effective incentive package designs significantly influence organization development by

revealing external competitiveness. Besides, internal and external competitiveness attract talents
by ensuring the employees and colleagues making some contribution obtain incentives.
Individual incentive allows employees to feel that their potential is fully rewarded thus
employees are properly motivate and satisfied that their will use their efforts, skill and ability to
ensure best results, so established equitable incentive package is important in order to make
employees satisfied to achieve organizational goals (Desanzo, 2008, P. 340).

Incentive pay is based on units produced and provides the clothes connection between individual
effort or performance and individual pay. There are two types of individual incentive system
based on non- rated output. These are price rate system and standard hourly rate (Bernardin,
2008).

Incentive is the total of all rewards provided to employees in turn for their services. The rewards
employees receive may be based on several factors including membership in the organization,
seniority or other elements to remain competitive organization, seniority, or other elements. To
remain competitive organizations are increasingly are rewarding performance outcomes that are
required to achieve its key goals. In determining effective rewards, the uniqueness of employee
must be considered. People have different reasons for working and the most appropriate
incentive package depends in large measure on those reasons. When individuals are being
stretched finically to provide food, shelter and clothing for their families, money may well be the
most important reward (Hollenbeck, et.al, 2004).

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Every organization needs resources to exist and to achieve its long run and short run objectives,
form the resources human resource is the greatest influence on the organizations every day
activity. So, to make the organization achieve its objectives making the employees to do their job
up to their maximum ability is essential. To make the employees doing their work until their
maximum ability the organization must motivate them. One factor of motivation that the
organizations use to motivate their employees for increasing their willingness to do their work
and for good organizations performance is incentive.

1.2. STATEMENT OF THE PROBLEM

Incentive package is one of the policies that are essential in quest for the achievement of defined
goals in organization special performance goals. Incentive is particularly designed to initiate
motivate, direct, or control employee’s job performance. Employee incentives here refer to an
element of payment linked to the working performance of an individual or working group as a
result of prior arrangement (Lawer and Lathm, 2007).

Incentive is the external forces and encouraging factors that lead the individual to work hard,
they are given due to the individual’s excellent performance since he/she will work hard and
produce more effectively when feels satisfied in the institution. The decision that are made in
the role of incentive on employee performance the organization is must pay incentive based on
performance because incentive and reward system direct workers capability in to more
efficiently in their work to attempt to achieve the organization goals. In addition, to these,
incentive can also be defined as the consideration excellent performance, assuming that the
salary is to make the worker appreciate the value of job that also satisfies his basic needs
(Palmer, 2012).

If incentive package is designed to generate employee’s motivation satisfaction and initiative,

these leads to greater employee job performance. Providing poor incentive and benefits leads
less employee’s job performance.

Currently, most employees of the company are discussing informally about the incentive
schemes at hand and the researcher conducted a survey on the company’s incentives and found
that the respondents were not satisfied with the absence of commission and they are also
concerned about their opportunity for career development (promotion) and training, because the

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promotion and the training strategy of the company is not fair, clear and justifiable. Even if the
company promises to maximize the development and upgrading of its employee’s skill and
knowledge, it seems that it is not applicable as promised. These employee poor performances are
bad for the performance of the company. Therefore, the core issue of the study and the reason
why it’s interested in the area of the research is, analyzing the impact of incentive package on
employee job performance on this Ethio -telecom debre- markos branch.

1.3. BASIC RESEARCH QUESTIONS

The research conducted this study based on the following questions have been answered:

 What are factors that affect employee job performance in the organization?
 To what extent does the organization work in order to increase employee job
performance?
 What is the level of incentivepackage in the organization?

1.4. OBJECTIVE OF THE STUDY

1.4.1. General objective
The general objective of the study is to analyze the impact of incentive package on employee job
performance in Ethio- telecom-debre markos Branch.

1.4.2. Specific objectives

The specific objective of the study includes:

 To identify the factors that affect employee job performance.

 To know the effort of organization to increase employees’ job performance.

 To determine the level of incentivepackage in the organization.

1.5. SIGNIFICANCE OF THE STUDY

The outcome of this study would provide the following benefits to the organization and also to
the researchers. This study would provide useful information for the management of organization
to improve employee job performance through identifying incentive and related problems to take

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corrective action. This also provides for employees to increase their bargaining power in order to
increase their incentives; in turn improve their performance. This study would also provide for
the researcher to get experience so as to do other researchers for the future in a better way and
also it used for the other researchers to get information about incentive package and employee
job performance and they use it as a reference.

1.6. SCOPE OF THE STUDY

This study have the geographical; the conceptual and methodological
delimitation.Geographically thisstudyconducted on Ethio Telecom debre-markos because of time
and resource constraints even if the study being also the issue of other branches. Conceptually
With specific title of the impact of incentive package on employee job performance.This study
hasbeen investigated employee job performance in Ethio telecom Debre Markos Branch. To
achieve this study its scope focused only on employee of the organization.

1.7. LIMITATION OF THE STUDY

This study focused on incentive package to measure employee job performance by excluding
employee commitment about the employee’s performance. In addition to incentive package there
are several variables affecting employee job performance like technology and educational levels,
which didn’t cover. And also the researcher collected information only form employees of the
organization by ignoring customers of the organization, but customers can be a source of
information about employee’s performance of the organization. In addition to this the researcher
faced carelessness of respondents to fill the questionnaire.

1.8. ORGANIZATION OF THE PAPER

This paper is organized in to five chapters: -

 The first chapter was deal with the introduction part consisting of background of the
study, background of the organization, statement of the problem, objective of the study,
significance of the study, scope of the study and limitation of the study.
 The second chapter consisted of literatures reviews related to the study. In this chapter
various theoretical concept that relates with the impact of incentive package on the
employee job performance will discuss.

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 The third chapter would be deals with the research methodology including the overall
strategies and methodologies.
 The Fourth chapter included the analysis of collected data and interpretation of the
analyzed data.
 Finally, the fifth chapter would present summarization of major findings, conclusion and
puts the possible recommendation.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1. THEORETICAL LITERATURE REVIEW

2.1.1. Definition of incentive
Incentive is the external forces and encouraging factors that lead the individual to work hard,
they are given due to the individual’s excellent performance since he will work hard and produce
more effectively when he feels satisfied in the institution. In addition to these, incentive can also
be defined as the consideration excellent performance assuming that the salary is to make the
worker appreciate the value of job that also satisfies his basic needs in life. (pelizari, 2011).

Incentive is tangible or intangible reward used to motivate a person or group of people to

behavior in a certain way, (Collins, et al, 2008).

Generally incentive is variable payment which are made to employee or a group of employees on
the bases of some amount of output or based on the achieved result, (Banioko, 2006).

2.1.2. Types of incentive

According to (Buchan, et.al, 2000), There are different types of incentive. These are:-

1. Monetary or financial incentive

2. Non-monetary or non-financial incentive

1. Financial Incentive
Financial incentive is designed to as means of payment to increase productivity and improve
employee work performance. Therefore, the more employees produce the more they can get
whereas, a decrease in quality of work might deprive employees from earning part or all of their
incentive, (Judah, 1997).

Financial incentive are designed to give the employees some control over their income as the
employee’s income will be based on performance, to create a greater sense of responsibility of
the job the part of the employee and to stimulate employee to work harder than he/she usually
does, (Merchant and Venderstede, 2007) one features of financial incentives are often called
variable pay, (Gana, 2011).

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It also refers to pay that is contingent based on actual performance of employee, as different
entitlement. Another study of financial incentive shows that some employees are motivated by
rewards and that money is strong motivator for them (freeman, 2010).

In addition, financial incentive do not always deal with direct benefit like pay or wage, bonus
pension, allowances etc……. sometimes it could be developed as direct financial benefits such
as subsidized food, accommodation, transportation, educational fees. Child core and so on
(Buchan and Thompson, 2000).

2. Non-financial incentive

Although incentive are the key for improving employees motivation, Job satisfaction and better
performance, there are a number of non- financial incentives that may represent more effective
means of improving quality of work performance as well as motivational level, (France, et.al
2004).Non-financial incentive as any means of incentive that do not involve directly with money,
transfer of monetary values equivalent, (Shild, 2002).

Non-financial incentive can be tangible or intangible and usually do not involve direct payment
of cash. The authors also argued that in the organization, a non-financial incentive could be in
the form of employee participation in decision making staff recognition such as issuing a
certificate of thanks and appreciation, providing extra training courses as a part of capacity
development programmers, or organizing parties for distinguished staff, ( Buanchan, 2000).

Some important aspects of non-financial incentive such as promotion, Job recognition,

meaningful job and opportunities for self-development, advancement are successful developed in
an attempt to improve the working environment, enhance performance and increase productivity.

In addition, non-financial incentive can also promote staff loyalty, enhance more interaction and
cooperation among subordinates and superiors, enable more opportunities for staff participation
on involvement and so on (Lawzi, 1995).

Non-financial incentive are sometimes known as moral incentive, which is concerned variables
aspects of psychological need and the increased concentration of these aspects are come after the
emergence of human related theories (Akaili, 1996).

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Moral incentive mostly based on the respect of a human being who has emotional feeling, hopes
and aspiration, (Johnson, 2005).

2.1.3. The Effective of Incentive in the Organizational Productivity

Incentive is generally developed to generate employee motivation, satisfaction and greater
performance. The link between three variables has been widely discussed, and debated among
the researchers, scholars and practitioners, (Lawyer and Latham, 2007).

They argue that the effectiveness of increase for reaching higher behavior outcomes of employee
is based on the degree to which those incentives are perceived to fulfill or satisfy their needs. For
example, if the employee over whelmingley desires job autonomy and perceive the amount of
many or benefits are likely motivate them to perform the job.

Since employees satisfaction could be both the cause and outcome of overall performance in
order to motivate employees. (Latham, 2007).

Latham also suggest that if there is no link between employee performance and satisfaction or
there is a negative one, the organization clearly has an effective system of incentive.

In addition with an effective incentive, employee could gain several social and psychological
benefits as a result of improving their purchasing power to satisfy his/ her needs of goods and
divorces (Akali, 1996).

A The Positive Effects of Incentive in Organizational Productivity

According to Merchant and Vendrstede(2007),incentive has many positive effects within the
organization. First they have been used as a guidance to show employees what the organization
want to achieve and what they value and prioritize as importanttowards their jobs. Second,
incentive can be used as an effective tool to attract the desired, competent people into the
organization because people that value this form of attraction will be drawn to work there rather
than people that are only seeking steady benefit a third reason is the general belief that incentive
can be used to motivate employees to work hard, to make an extra effort in order to achieve the
organization goal. Even when individuals have acquired a strong capacity skills, and knowledge,
this do not always transform in to enhanced quality of work performance. The problem lies not
in the lack of skills, but the lack of strong incentive to use skills optimally (Kamoche, 1997).

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Even though some studies may argue that extrinsic and intrinsic motivation, lead employee to
different motivation, which is gained form an externally influenced environment. While intrinsic
indicates that under certain circumference those who work for an organization are prepared to
undertake a task for their own benefits and those tasks will be performed without financial
rewards payments (Calder and Staw, 1975).

B. The Negative Effects of Incentive in Organization Performance

In spite arguments supporting the positive effects of incentive on employee motivation, there are
some views regarding the possibility of failure or some negative effects concerning the
implementation of employee incentives. Some negative impact or effects of incentive especially
financial incentives still exist. According to many study financial incentive cloud push the
employees to work hard, often affecting the employee’s physical or psychological condition in
the long run and affecting their social and other circumstance, (Angari, 1999).\

2.1.4. Incentive Plan Administration

According to Brayson, 2010 compensation a mangers frequently discuss a number of points that
will be relates to the effective administration of incentive plan.

Incentive system are some important only when manger are willing to reward and accept or
reinforce exceptional or to grant incentive based on different individual performance (Brayson,
2010).

Although, salary budget must be large enough to reward, and accepted or reinforce exception
performance So that, incentive system must be based up on clearly defined, and accepted
performance standard efficiently communication to employees.

Therefore, the cost associated with plan administration must be determined (Banjoko, 2006).

2.1.5. Benefits of Employee Performance

According to, Collins, 2012 employee incentive program are often used in industries where
performance is measurable. Such as sales incentive program provide rewards like cash. Gift
cards or extra time to employee for reaching agreed up on goals. Typically incentives program
have several benefits.

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1. Job Performance: it is no secretthatjob performance has a great success of any business.
When employee are performing their jobs well productivity increase and company profitable
implementing an employee incentive program helps to keep everyone engaged in their work and
motivation program helps to keep everyone engaged in their work and motivation to do well. If
the program is planned, and laid out to incentive can last for quite some time (Dora, 2012),

2. Job satisfaction: anyone who works in any industry likes to feel appreciated and values in
their job. If employees go to work each day feeling through their employer really values their
contribution, they will be motivated to work hard and will never look elsewhere. Incentive
program are one way to improve job satisfaction and create a crappies work environment for
both employers and employees, (Nora, 2012).

3. Team Work: there are many businesses that excel with the employee working together as a
team. When a group of employee is working toward a common goal, It helps everyone a side
their own issues for the goal of the team. Basing incentive programs on team goals rather than
individual goals will encourage employees to work to gather and to pull their own weight
individually. It wise to make the incentive reachable with a said effort, so all members of the
team stay focused and believes that they can reach the goal (Palemer. 2012).

4. Company saving: incentive program doesn’t only benefit the employees. The company can
also realize saving that are greater than the rewards they are greater than the rewards they are
fewer sick days taken, fewer recruitment costs and less employees turn over, (,Nora, 2012).

2.1.6. Guidelines of Creating an Effective Incentive Plan

According to season, Baum and Tom, 2013 there are four guidelines for creating effective plan.
These are:-

1. Develop strategy plan

2. Develop best practice

3. Determine shareholders required return on investment and

4. Create implement and communication the incentive compensation plan.

1. Develop a strategic plan:

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Developing and communicating a formal strategic plan creates a unified direction for the
company that provides a platform for performance expectation, decision making and personnel
development without a formal strategy, it is impossible to design an incentive plan that promotes
behaviors constitute with overall corporate goals and strategy.

2. Develop best practice

The second step is to develop and implement standard best practices within the business.
Developing best practices establishes expectation for all position in the company and enables
management to hold employee accountable for their performance. These best performance
practices vary depending on the type of work, size of company and structure of the organization.
The key is to identify the critical process that affect business and then standardize and
communicate them finally employees must be held accountable for complying with and using the
company’s best practice.

3. Determine Shareholders Required Return on Investment

Company performance standard must be met before any individual bonuses are paid employee
works for a company are paid a salary to carry out their job responsibility the expectation is if
everyone performs up to certain standards, the company will be profitable, an owner should
expect to be compensated for the risk that he/she tasks beyond their salary. This means there is a
very is a certain level of financial performance the company must meet before any type of bonus
pool is created. This financial performance is individual and determined by the owner’s
expectation. One the owner feels he/she has been compensated for risk taken, bonus pool is
established employee must understand that is the company doesn’t perform to expected
standards, no individuals bonus are paid out.

4. Create, Implement And Communicate the Incentive Compensation Plan

The starting point for creating an incentive plan is to compare the current base compensation and
employee bonuses paid in similar companies salary survival is available from a variety of
sources including personal administrative services and the bureau of labor statistics one it is

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determine how to the company compared to other business, target bonus can be set for each
person in the plan, according to their position and responsibilities (Johnson, 2005).

2.2. EMPLOYEE PERFORMANCE

According to Freeman, 2010 Employee performance is rating system used in most corporations
to determine the abilities and output of an employee. Performance is divided in to five
components. These are:

Planning, monitoring, developing, rating rewarding in the planning phase/ stage/ goals are set
help measure the employee work time so see if they are able to maintain the goals set or each
new goals.

Monitoring is the phase in which the goals are looked at to see how will one is doing to meet
them. This is can also be a feedback stage in which employers determine if progress is being
seen or not (Rebecca, 2013).

During developing stage an employee is supposed to improve any poor the performance that has
been seen during the time frame one has been working at the company. The rating is to
summarize the performance based on number system to determine where the scale of persons.

At the end of cycle is rewarding stage. This stage is designed to reward to and recognize
outstanding behavior such as that which is better than expected. Most see employee performance
as a way to appraise the employee for their effectiveness in the company. It is a system designed
on individual performance rather than group performance meaning you are looked at for strength
and weakness to determine where you might improve (Freeman, 2010).

2.2.1. Measures of Employee Performance

According to Ruth, 1985, employee performance measurement and determine and employee’s
status or opportunity for advancement for this reason performance management program must
consist of methods that enable fair and accurate assessment of employee performance. To assist
with measuring employee performance, employers first establish performance standards.

Generally Ruth suggests that there are three types of performances measurement techniques
these are:

1. Graphic rating scale

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2. Management by objective

3. Forced ranking

1. Graphic Rating Scale: graphic rating scales are ideal for production oriented work
environments as well as other work places that more at a fast place, Such as those found in the
food and beverage industry. A rating scale consists of a list job duty, performance standards and
scale usually from 1-5 for employee performance. This method for measuring employee
performance requires just like other method, however if can be complemented relatively quickly,
which is a plus for supervision who manage large department or competing assignment in an
environment that leaves little for work force management duties, (Ruth, 1985).

2. Management by objective: are useful for measuring the performance of employees in

supervision or managerial position. Management by objective starts with identity employee
goals and from that point the employee and her manger lisle the section of management by
objective consists of the timelines for achieving each goal. The employee performance is
measured by how many of her goals accomplished with the designated time frame, (Ruth, 1985).

3. Forced ranking:- the top performance comprise roughly 20% of the workforce, average
performances 70% and the lowest performing employees make up about 10% of the work force.
Forced ranking measures employees’ achievement against those of their peers, instead of
comparing the employees current evaluation period against the employee own past performance.
For these reason Forced ranking leads itself to creating a very competitive work environment
(Banjoko, 2006).

2.2.2. The Relationship of Incentive and Employee Performance

According to Gana(2011), incentive is a mechanisms aimed at achieving a specific change in
behavior, whereas performance refers to an inducement for a desired action.

Organizations have resorted into the adoption of relevant and appropriate incentive in order to
encourage employees to elicit their best while increasing effort, (Shild, 2002).

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In addition to Yap, Manjuna and Rajesh 2012 also suggest that incentive is used by organization
in order to reach certain goals, encourage a certain behavior and team spirit for collective
awards. Incentive systems are not universally applicable but are likely to play a role in enhancing
individual effort or performance where the conditions the schemes designed are right.

A balanced incentive program introduced in an organization is likely to motivate employees and

as a result lead to improve performance (Bernardin, 2008).

2.2.4.Empirical Review Related to the Study

A number of studies were conducted to improve understanding of incentive system and the
extent to which its relation on commitment, motivation and performance efficiency.

Miller and Whitford (2006) argued that the role of incentives has expanded considerably in view
of the fact that it has been studied rigorously in principal agency theory. There is a strong
relationship between management incentive and risk-taking which would subsequently lead to
better firm performance.

Incentives come in the form of financial rewards or other types of incentive- basedremuneration
such as stock option, share ownership, rewards, and bonuses. Employees’ performance is
substantially better under incentive plans which are substantiated by supportive innovative work
practices.

Palmer (2012) defines incentives as the external temptations and encouraging factors that lead
the individual to work harder; they are given due to the individual's excellent performance since
he will work harder and produce more effectively when he feels satisfied in the institution. In
addition to this, incentives can also be defined as the consideration of the excellent performance,
assuming that the salary is enough to make the worker appreciate the value of the job that also
satisfies his basic needs in life (Palmer, 2012).George (2002) says that incentives work best
alongside a good pay scheme, good working conditions and other good management practices,
such as performance management, appraisals and appropriate communication and training
programmes.

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According to Milkovich & Newman (2005), bonus pay is a financial reward given to employees
in addition to their fixed compensation. Bonus pay is the most common form of cash incentive.
Bonuses can be accrued and paid out at different intervals, such as monthly, quarterly, or
annually. Bonus sizes vary between 10% and 50% of the total pay. This pay plan is also
apparently based on individual performance, but bonuses do not increase employees’ base pay
and therefore are not permanent.

In most cases, staff incentive schemes are employed to enhance productivity. To analyze the
present staff productivity and thus to appraise the potential for improvement, we could compare
our staff in terms of productivity (e.g. in the number of transactions of counter sales staff or in
the number of stock spare parts of parts sales supervisor, or in the capacity of branch managers to
develop their branch and staff). If there were high disparities, which can at least partly be
explained by disparities in staff motivation, we could further ask how staff incentives would
contribute to a higher overall performance of staff (Carolina, 2010).

Jeffrey and Shaffer (2007), state that non-financial tangible incentives are effective because they
are very visible. Because of visibility, the symbolic value of non-financial tangible incentives is
higher than other incentives. Another reason for the effectiveness of non- financial tangible
incentives can be that these incentives are usually distributed right after performance. Instead in
financial incentives’ case it can take months before incentives are distributed to employees. In
this case reward-compensation relation is not so tight than in situation where reward is given
right after performance. This can have effect on motivation and performance. Jeffrey and Shaffer
(2007), also state that financial incentives are easily perceived as part of a basic pay. In this case
financial incentive scan lose their motivating impact. Instead non-financial tangible incentives
are really noted and employees perceived them as extra reward. Because of that in some cases
Non-financial tangible incentives can be more effective than financial incentives. One problem
in non-financial tangible incentives is that people like different things (Jeffrey& Shaffer 2007).

Non-monetary incentives are non-cash benefits given by company to employees to retain, reward
and motivate them for their excellent job performance (Woodruffe, 2006). Non- monetary
incentives are deemed more valuable than monetary incentives as it shows respect and
appreciation on employees’ accomplishment (Gale, 2002). In the research of Nelson (2001)

21
which is conducted in United States showed that there is a strong bond of relationship between
non-monetary incentives and employees’ job engagement.

Gomes et al (2003) said that Incentive systems are an important part of organizational motivation
and are central to helping diagnosticians understand the forces that drive the organization.
Organizational incentives refer to both the reason for staff to join an organization, and the way
an organization rewards and punishes its staff. Incentive systems can encourage or discourage
employee and work group behavior. Organizations must continually seek ways to keep their
employees and work groups engaged in their work, motivated, efficient and productive. An
organization’s success can depend on its ability to create the conditions and systems (formal and
informal) that entice the best people to work there. Also, a good incentive system encourages
employees to be productive and creative, fosters loyalty among those who are most productive,
and stimulates innovation.

According to Perry (2006), financial incentives improve task performance significantly, but
effectiveness dependent on organizational condition. Meta-analysis of 72 field studies indicated
that an organizational behavior using monetary incentives improved task performance by 23%
whereas social recognition did so by 17% and feedback by 10%. However, after combining all
the three motivational reinforces, performance improved by 45%. This is a stronger effect on
performance than when each was applied separately. Feedback combined with money and social
recognition produced the strongest effect on performance.

To summarize, the key practical messages of the effect of incentive schemes on employee’s
performance as Armstrong (2009) described that, financial incentives provided by employers in
the form of pay will help to attract and retain employees and for limited periods, may increase
effort and minimize dissatisfaction. Non-financial incentives related to responsibility,
achievement and the work itself may have a longer-term and deeper impact on motivation.
Incentive schemes should therefore include a mix of financial and non-financial rewards.

2.2.5. Conceptual Framework of Incentives.

The term “incentives”, “Rewards”, and “Recognition” are used interchangeably in the
organization setting and there is no broader difference among them. However, the main category
is the incentives. Meridith (2015) defines incentives as any source or medium that encourages an

22
employee or group of employee’s to perform better and to exert more effort beyond expectations.
Basically incentives are divided into two main groups: Financial incentives and non-financial.
Financial incentives include direct payment of cash while NON-financial incentives may be in
the form of promotion of employee’s, flexible time, autonomy and involvement in decision
making. Hartman, Kurtzand and Moser (1994) state that incentives are one technique by which
employee’s‟ carry out their end of the employment contract, that is, compensating employee’s
for their efforts. In general, an incentive scheme (payment or programme) is any compensation
that has been designed to recognize some specific accomplishment on the part of an employee. It
is expected that the prospect of the incentive payment will „trigger‟ the desired employee’s
productivity behaviour in the employee. Incentives are either individual or group (organization
wide). In this study, financial incentives are designed to motivate employee’s to improve their
employee’s productivity – to increase effort and output and by producing better results expressed
in such terms as objectives for profit, productivity, sales turnover, cost reduction, quality
customer service and on time delivery. This financial compensation provides extra money for
achievement in terms of contribution or output. The emphasis in financial compensation is on
equity, in the sense of paying people according to their just „deserts‟. Incentive schemes relate
compensation to productivity. A primary purpose of an incentive scheme is to encourage greater
productivity from individuals and work groups. The assumption usually made by management is
that money or cash alone may not motivate employees. In designing incentive schemes, output
standards should be established. The standard is a measure of work that an average, well-trained
employee, working at a normal pace, should be able to accomplish in a given period of time. In
addition to motivating employee’s to increase their level of productivity, incentive schemes may
reduce turnover among good performers or productive workers. Incentive schemes are also cost
effective because of savings that often resulted from productivity improvements. Conceptual
framework of this study explains relationship between independent variables and dependent
variable. Independent variables in this study are recognition and reward programs, job
enrichment and training. Dependent variable of this study is employee performance.

23
 DEPENDENT VARABLE

INDEPENDENT VARABLE

INCENTIVE

PAY/SALERY

EMPOYEE,S PERFORMANCE

RECOGNITION

BENEFIT

BONUS
24
 CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

3.1. POPULATIONAND AREA OF THE STUDY

The target population of this study waspermanent employees of Ethio telecom debre-mrkos main
branch. They are 45 in number. The study was conduct in Amhara region in debre –markos
which far 661 kilo meter from Jimma. The study was conduct on the impact on incentive
package on employee’s job performance in Ethio- telecom debre- markos brach.

3.2 RESEARCH DESIGN

The research methodology used in the study wasdescriptive research design because the
researchers describe the characteristics of individual’s situation in order to get adequate and
accurate information. The researcher used both qualitative and quantitative approach. Qualitative
approaches were focused on believes, attitudes or behaviors of the respondents whereas
quantitative approach was measurable and manageable approach that can calculate or assigned in
frequency and percentage value which make the data reliable and valid. Under this study, the
researcher focused on the issue related with incentive package of Ethio-telecom- Debre markos
Branch.

25
3.3. DATA TYPE AND SOURCE
To accomplish this study, this researchused both primary and secondary types of data. This study
collected the primary data from the employee of the organization through questionnaires and
secondary data from annual report book of the organization

3.4. THE POPULATION OF THE STUDY

The employees of Ethio- telecom of debre- markos branch are 45.Under this study the researcher
used census sampling technique. Since the populations is 45 and this is very small and
manageable to conduct this study by using census sampling techniques.

3.5. METHODS OF DATA COLLECTION

The researcher collected the data about the impact the incentive package on employee job
performance from primary and secondary sources. The data were collected from employee by
using close ended questionnaires and by reading annual report and manual of the
organization.3.6. METHOD OF DATA ANALYSIS

This study used quantitative method of analysis; the collected data was analyzed by using
percentage, frequency. After analysis, the student researcher tried to present the data in tables
and statement form and finally tried to draw important conclusion based on the analysis
information and give some useful recommendations that might use for the organization.

26
 CHAPTER FOUR

4. DATA ANALYSIS AND INTERPREATATION

4.1. INTRODUCTION
This chapter focuses on presentation analysis, and interpretation of the impact of incentive
package on employee job performance. The analysis part tried to assess profile of the
respondents. To this end 45(forty five) questionnaires’ were distributed to the respondents and
finally 100% of questionnaires were filled and returned to the researcher. The data obtained from
the respondents were presented and analyzed by using tables and percentage frequency
respectively.

4.2. PERSONAL PROFILE OF THE RESPONDENTS

Table 4.1 Respondents Demographic Characteristics

Respondents
Frequency Percentage
No. Item
1. Sex of the respondents
a. Male 25 55.56
b. Female 20 44.44
Total 45 100
2. Age of the respondents
a. 18-25 7 15.56
b. 26-35 20 44.44
c. 36-45 9 20
d. 46-55 4 8.89
e. 55 and above 5 11.11
Total 45 100
Source: survey, April, 2017

27
According to item 1 of the above table 4.1, from the total number of respondents regarding sex
characteristics, majority 25(55.56%) of them were males whereas 20 (44.44%) of them were
female.

Item 2 of the table 4.1, regarding the age characteristics 20(44.44%) of them were found between
26-35 age level, 9(20%) of them were found between 36-45 ages level, 7(15.56%) of them were
found between 18-25 age level,5(11.11%) of them were found at the age of 55 and above and
4(8.89%) of them were found between 46-55 age level.

Table 4.1.2. Respondents’ educational level

respondents
frequency percentage
No item
`1 The educational level of the respondents
a. certificate -
-
b. diploma
c. first degree 33 73.4
d. master degree
10 22.2

2 4.4
e. PHD

TOTAL 45 100

Source: survey, April, 2017

As indicated on table 4.1.3. Regarding educational status of respondents replied as follows:

33(73.4%) have first degree 10(22.2%) have master’s degree, 2(4.4%) replied that have a PHD

28
Table 4.1.4. Respondents experience or service

No. Profile Category Frequency Percentage

1. Experience or Less than 1 5 11.11
service year
1-3 year 13 28.89
4-7 year 19 42.22
Above 7 year 8 17.78
Total 45 100

item respondents
frequency percentage
No
Respondents experience and service
a. Less than one year 5 11.11
13 28.88
b. 1-3
c. 4-7 19

d. Above7 8

total

Source: survey, April, 2017

29
 As it can see from above table 4.1.4. From the total number of respondents 5(11.11%)
experience or serve less than one year, 13(28.89%) of respondents replied that 1-3year,
19(42.22%) of respondents replied that 4-7 years and 8(17.78%) of employees experience above
7year.

4.2. EMPLOYEES ATTITUDE TOWARDS SALARY OF THE ORGANIZATION

The first thing for which people engage in different business activities is that to satisfy their basic
needs. To fulfill these needs employees want sufficient enough salary. The researcher asked the
employees about their salary and they collect the following responses.

Table 4.2. Employees Attitude towards Salary

No Item Response Frequency Percentage

.
1 Are you happy with your Yes 19 42.22
No 10 22.22
salary?
To some extent 16 35.56
Total 45 100
Source: survey, April, 2017

According to table 4.2., respondents give the response about happiness of salary 19(42.22%) of
the respondents replied yes, 10(22.22%) of the respondent replied that no, and 16(35.56) of the
respondent replied that satisfy to some extent. This implies that Ethio telecom, Debre Markos
Branch employee’s relatively good attitude about this salary.

4.3. INCENTIVE BENEFITS AND PERFORMANCE

Incentive is generally developed to generate employee motivation, satisfaction, and greater

performance. It is incentive and benefits are higher performer than non- motivated or employee
who did not get incentive and benefits.

Table 4.3. Incentive Benefits and Performance

No Item Response Number of Percent

. responden age
ts

30
1 Is there any benefit you get from the Yes 28 62.22
No 5 11.11
organization which motivates you better
To some extent 12 26.67
performance? Total 45 100
2. If your answer for the above question is yes Financial 9 20
what kind of incentive did you offer? Both 29 64.44
Non- financial 7 15.56
Total 45 100
3. How do you rate level of contribution of High contribution 9 20
Medium contribution 15 33.33
incentive plans and benefit package to
Neutral 8 17.78
increase employee performance Low contribution 8 17.78
No contribution 5 11.11
Total 45 100
Source: survey, April, 2017

According to table 4.2, 28(62.22%) of respondents replied that they get benefits from the
organization to better performance, 5(11.11%) of respondents replied that they do not get benefit,
and 12(26.67%) of respondents replied that they get incentive in some extent for better
performance. This implies that employees of Ethio telecom, Debre Markos branch gets benefits
to motivate better performance.

As presented on table 4.3, from the total number of respondents 9(20%) replied that they get
financial kind of incentive, 29(64.44%) of respondents reply getting both financial and non-
financial benefits, and 7(15.56%) replied getting both financial and of incentive. This implies
that the organization provide both types (financial and non- financial incentive) to employee.

As it can see from table 4.3, 9(20%) of respondents rate as high contribution, 15(33.33%) of
respondents replied as medium contribution, 8(17.78%) were replied neutral, 8(17.78%) were
replied low contribution, 5(11.11%) were respond no contribution. Form this researcher conclude
that the organization incentive and benefit package relatively medium contribution. This implies
that Ethio telecom, Debre Markos Branch incentive plan and benefit package plays a better role
for better performance.

As it is shown in the above table, there is a good performance. Working environment is

surrounding of the organization which includes location, size, building facilities, recreational

31
service etc. This working environment affects employee’s performance either positively or
negatively.

Table 4.4. Working Environment And Performance

No. Item Response Number of Percentage

response
1. How much you are satisfied High level 31 68.89
Medium level 10 22.22
with your work environment.
Not satisfy 4 8.89
Total 45 100
2. Do you have good relationship Yes 17 37.78
To some extent 22 48.89
with the management team of
Never 6 13.33
the organization
Total 45 100
3. If your answer is yes for the Yes completely 17 37.78
above question does
the Rarely 20 44.44
relationship help to increase Neutral 8 17.78

performance Total 45 100

Source: survey April-2017

According to table 4.4. form the total respondents 31(68.89%) replied that high level of
satisfaction with their working environment, 10(22.22%) of replied at medium level of
satisfaction with their working area, and 4(8.89%) of respondents also replied that not satisfy
with the working environment of Ethio telecom, Debre Markos branch. This implies that
satisfied with their working environment. This implies the employee that majority of Ethio
telecom, Debre Markos branch employees of Ethio telecom, Debre Markos branches are more
interested in their performance due to the environment, is highly satisfied.

As it is shown in the above table; the researcher asked the respondents to know whether
employees have relationship with the management team or not. From this 17(37.78%) were has a
relationship, 22(48.89%) were relative relationship with a management team, and 6(13.33%)
were never relationship. This implies that employer have a good relationship with a management
team. This implies it helps employees are stand for better performance.

32
In addition on table 4.4., the respondents give the following information about their relationship
with a management team to increase their performance. Form this 17(37.78%) replied yes,
20(44.44%) replied rarely, and 8(17.78%) replied neutral. This implies employees of Ethio
telecom Debre Markos Branch have poor relationship with the management team. This implies
the management team of the branch should renew and review their relationship with employee’s
for a great performance.

4.5. INCENTIVE OR BENEFITS IMPLEMENTATION AND JOB

Incentive either financial ornon-financial incentive is very important to increase employee
performance. In this section the researcher analyzed types of incentive pay in the organization
and implementation.

Table4.5.1. incentive implementation and job

No. Item Response Frequency Percentage (%)

1. Is the benefit of the organization Strongly agree 5 11.11
Agree 31 68.89
made you stay in your job?
Neutral 4 8.89
Strongly 1 2.22
disagree
Disagree 4 8.89
Total 45 100
2 What type of incentive you Financial 12 26.67
Non-financial 26 57.78
received in the organization
Both 7 15.55
Total 45 100
3. The organization provides over Very high 5 11.11
High 25 55.55
time payment to employee after
Neutral - -
working hours. Low 12 26.67
Very low 3 6.67
Total 45 100
4. Does the organization provide Yes 35 77.78
incentive for employees with their No 2 4.44
To some extent 8 17.78
performance?
Total 45 100
Source: survey, April -2017

33
According to table 4.5, the respondents of the study area give the following data about whether
the benefit of the organization made stay or not. Form this 5(11.11%) were strongly agree,
31(68.89%) were agree, 4(8.89%) were neutral, 4(8.89%) were disagree, 1(2.22%) were strongly
disagree. This implies that incentive implementation in the organization is at good position. This
implies that employees in the organization is made stay at their job.

As depicted form table 4.5, the respondents percent the following information of the researcher.
Form this 12(26.67%) were get financial incentive, 7(15.55%) were get both financial and non-
financial incentive in the organization should also balance the incentive in both or financial and
non-financial as much as possible.

As it is shown on table 4.5.1, respondents give the following information about over time
payment. Form this 5(11.11%) were very high, 3(6.67%) were very low, 12(26.67%) were low,
25(55.55%) were high. This indicates that the organization relatively offers over time payment to
employee. This show that employees work over time in their job.

In addition to table 4.5; the respondents give the following response in relation with payment of
incentive with their performance. From this 35(77.78%) were get incentive with tier
performance. Form this 8(17.78%) were replied as getting incentives based on their performance
in some extent and 2(4.44) were replied not payment based on their performance. This implies
that the organization provides incentive based on their performance.

4.6. THE IMPACT OF INCENTIVE ON ORGANIZATION PERFORMANCE

Table 4.6. Respondents’ response on the impact of incentive package on the organization
performance, as follows:

No Item Response frequency Percentage (%)

.
1. What do you think the impact Very good 5 11.11
Good 10 22.22
of your current payment on
Neutral 3 6.67
your performance Bad 19 42.22

34
 Very bad 8 17.78
Total 45 100
2. Do you think that companies High 35 77.8
performance increase when it Average 8 17.8
improves its incentive package Low 2 4.4
Total 45 100

3. Do you think that the number Yes 5 11.11

you serve in a day increase To some extent 18 40
because of your current No 22 48.89
payment Total 45 100

As depicted on table 4.6 the respondents give the following information about the impact of
current payment on job performance. Form this 5(11.11%) were very good, 8(17.78%) were very
bad, 10(22.22%), were good, 3(6.67%) were neutral, and 19(42.22%) were bad. This implies that
the current payment is bad. This implies that organizations performance is low because of bad
payment.

As it is seen form table 4.6. Respondents give the following information whether companies
performance increase when it improves its incentive package. From this 35(77.78%) were high,
7(15.55%) were average, and 3(6.67%) were low. This indicates companies performances
increase if the companies’ payments improve its incentive package.

In addition on table 4.6, respondents give the following information to the researcher. Form this
5(11.11%) were replied yes, 18(40%) were replied to some extent, and 22(48.89%) were replied
that implies that the current payment not increase current performance. This indicates the
company is disadvantageous to serving the customer by employee because of bad current
payment.

4.7. EMPLOYEES ATTITUDE TOWARDS INCENTIVE PACKAGE OF THE ORGANIZATION

Table 4.7.Employee Opinion about Incentive Package

No Item Response Frequency (%) percentage

35
 .
1. How do you see your organization Very good 19 42.22
incentive package system Moderate 23 51.11
implementation with compared to Bad 3 6.67
Total 45 100
other organization

2. What is your overall evaluation about Very good 15 33.33

the organization incentive package Moderate 27 48.89
Bad 8 17.78
Total 45 100

According to table 4.7, respondents give the following information to the

researcher about incentive package compared with other organization. Form this
19(42.22%) were bad. This indicates that organizations incentive package is good
related with others.

In addition to table 4.7, respondents view the organization as follows. Form this
15(33.33%) were very good, 22(48.89%) wee moderate, and 8(17.78%) wee bad.
This implies that the organization over all incentive packages is better.

36
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

The objective of the paper is to analyze the impact of incentive package on employee job
performance in Ethio telecom, Debre Markos branch. It also suggests possible solutions to the
problem of incentive package to conduct the research, primary and secondary data which were
significance for the study to came up with better results. In general this chapter concludes the
main findings of the study and forward possible recommendations.

5.1. CONCLUSIONS
Based on the analysis of the data the researcher forwarded the following conclusion,

 The researcher concluded that the organization employees are belong to in more
productive age group i.e the organization able to produce something good and achieved
the goals in a good manner. Due to this the organization can be competitive in today’s
technological and rapid environment.
 According to the finding the organization female employees are dominated by male
employees. This situation creates a complain on the mind of females and decrease the
effort of them to increase the performance of the organization.
 Form the finding the organization have more knowledgeable, skill full and experienced
employees. Due to this reason the organization can exploit the opportunities which are
found in their environment like that can increase sales volume.
 As the finding reveals that the organization employees pays above 3000Birr is more than
those who pay below 3000Birr.This suggests that employees of the organization
relatively can satisfy their basic needs in the current market.
 As findings suggests that employees of the organization are interested in their salary.
Based on this fact employees of the organization do not cease their jobs since they are
satisfied by their payment.

37
 Based on the analysis employees of the organization has gotten benefit to motivate for
better performance. Due to this employees of the organization are very motivated and
initiated for their better performance.
 The researcher understand that the organization offer both financial and non-financial
incentive package. This imply the organization not only focus on single type of
incentives
 The analyze suggests that the employees rates levels of the incentive plan is good
position. This suggests employees are not forced to cease their jobs due to incentive
shortages
 With regarding working environment, employees of the organization feels that
conducive for their working. This leads employees are satisfied in their environment.
 In the organization there is a good relationship between management and employee. This
relationship
 Researcher analyze that the relationship between employee and management has impacts
on job performance
 The benefits provided by the organization feels the employee influence to stay in their
job
 The financial incentives offered by the organization dominate the organization than non-
financial incentives.
 The organization provides overtime payment to employee
 As researcher understands, the organization incentives offer to employee based on their
performance
 The researcher concludes that current payments negatively affect their performance
 As analyze reveals when the companies improve its payment the organization
performance also increase
 The findings suggests that current payments would not improve customer services in a
day
 Based on finding the organization incentive package is better than others

38
5.2. RECOMMENDATIONS
Depending on the finding of this study the following recommendations were forwarded.

 On the employees attitude towards salary

Most of employees of the organization are not satisfied with their salary. Then the organization
should:

 Provides different incentives to employee as much as possible.

 Being wise incentive packages feel happy in the organization.

 On incentive benefits and performance

Most employees benefited from the organization. However, some feels dissatisfied then the
organization should:

 Reward employees for their good performance and this feels satisfied by incentive
benefits
 Increase incentive packages so as to create the sense benefited for the organization
 Improve overtime payment to increase benefits of the employee

 On the working environment

Almost, all employee of the organization are satisfied with their working environment. But some
of them are dissatisfied them the organization should:

 Increase facilities to entertain and recreate employees in the organization

 Establish a good relationship with the management also increase good feeling in their
working environment
 Focus on individual to determine their interesting areas.

 On the incentive implementation and job

Approximately all of employees are interested with the implementation of incentive but some are
not then the organizations should:

39
  Improve incentive implantation to stay employee at their job
 Provides miscellaneous utility in order to satisfy employee.
 Increase the financial and non – financial aspects of incentive package
 Establish performance pay system to improve the job and also employees are becomes
beneficially.
 On the impact of incentives on performance

Almost all of employees increase their job performance when incentives increase but the
organization does not do. Thus the organization should.

 Increase substantially to increase the employees job performance positively

 Improve current payment to use the maximum potential of current employees to increase
their performance.
 Generally, the organization should increase its effort in all area of incentive packages to
increase the performance of the employee and the organization so as to achieve the goal.

40
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Appendix
Jimma University

College of business and economics

Department of management

Questionnaire to be filled by employees of Ethio telecom at Debre Markos branch

Dear respondents; the main objective of this questionnaire is that focus on the assessment of
Incentive package on employee Job performance in case of Ethio telecom Debre Markos Branch.
The researcher selected the topic as a requirement of BA degree in Management jimma
University. The questionnaire that you fill has two parts. The first part requires you to give
personal background information. The second part attempts to assess incentive package related
with your organization since your information has a great value for the following open and close
questionnaire.

Direction:

 No need of writing your name

 Read the question carefully
 Put ( ) mark for close ended question in the box

44
  Write your view or opinion on the provided space for open ended questions

Part I

1. Age: 18-25 26-35 36-45 46-55 55 and above

2. Sex: Male Female

3. Educational level: Certificate Diploma First degree

Master degree PhD and above

4. Experience or service year: Less than 1 year 1-3 year

4-7 yearabove 7 year

Part II:

Questions related to your organization about incentive package

1. Are you happy with your salary?YesNoTo some extent

2. Is there any benefit you get from the organization which motivates you better performance?

Yes No To some extent

3. If your answer for the above question is yes what kind of incentive did you offer?
Financial Non- financial Both

4. How do you rate level of contribution of incentive plans and benefit package to increase
employee performance?
High contributionMedium contributionNeutralLow contribution
5. How much you are satisfied with your work environment.
High levelMedium levelNot satisfy
6. Do you have good relationship with the management team of the organization?
Yes To some extent Never
7. If your answer is yes for the above question does the relationship help to increase performance?

45
 Yes completely Rarely
8. Is the benefit of the organization made you stay in your job?
Strongly Agree Agree Neutral
Dis agree Strongly Dis agree
9. What type of incentive you received in the organization?
Financial Both Non – financial
10. The organization provides over time payment to employee after working hour?
Very high High Neutral Very low Low
11. The organization provides incentive for employees use their performance?
Yes To some Extent No
12. What do you think the impact of your current payment on your performance?
Very Good Good Neutral Very bad Bad

13. Do you think that companies performance increase when it improves its incentive packages
High Average Low
14. Do you think that the number of customers you serve in a day increase because of your current
Payment?
Yes To some extent No
15. How do you see the organization incentive package system implementation with related to
Other organization?
Very Good Bad Moderate
16. What is your overall evaluation about the organization incentive package?
Very Good Bad Moderate

46
47