Relationship Between Reward Systems and Employees’ Motivation.

Sospeter, Winfrida (2021) Relationship Between Reward Systems and Employees’ Motivation. Masters thesis, The Open University of Tanzania.

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Abstract

The study focused on examination of the relationship between reward systems and employees’ motivation at Tanzania Revenue Authority (TRA). A survey research design was adopted and involved 96 employees from six Tanzania Revenue Authority offices who were selected using simple random sampling, purposive and convenience sampling methods. The required data was collected by circulating self-administered questionnaires to all respondents whereby the obtained was analysed quantitatively using descriptive statistics and regression analysis with the aid of SPSS software. Overall findings showed; reward systems have positive and significant relationship with employees’ performance. In specific, extrinsic rewards were found to have weak positive but statistically significant relationship with employees’ motivation while, intrinsic rewards were found to have strong positive and statistically significant relationship with employees’ motivation. It was also revealed that employees were satisfied with the salaries and wages, recognition and relationships. Based on this study, about 74% of variability of employees’ motivation was accounted for by reward systems whereby intrinsic rewards contribute considerable high percent into employees’ motivation compared to extrinsic rewards. From these findings, the study suggests that in order TRA to improve employees’ motivation in tax administration and tax collection, the intrinsic rewards such as offering interesting jobs, job enjoyment, relationship with co-workers, challenging job, job meaningfulness and job autonomy must be improved much higher than extrinsic rewards. Keywords: Motivation, reward system, intrinsic reward, extrinsic reward

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